Ch. 8 Concept Checks

e. analytical process; synthetic process

A process in operations management in which raw materials are broken into different component parts is known as _______; while, a process in which raw materials or components are combined to create a finished product is known as _______. a. synthetic process; remanufacturing process b. remanufacturing process; manufacturing process c. analytical process; manufacturing process d. synthetic process; analytic process e. analytical process; synthetic process

d. operations management.

A specialized area of management involving all the activities needed to convert or transform resources into goods and services is: a. shipping and receiving. b. inventory management. c. marketing management. d. operations management. e. financial management.

d. flexible manufacturing system

A(n) ______________ combines electronic machines and computer-integrated manufacturing in a single production system. a. technological displacement b. continuous process c. robotics system d. flexible manufacturing system e. intermittent process

e. developing a plan to convert the idea into a new good or service.

All of the following are steps in the operational planning process, except: a. estimating market demand. b. selecting a planning horizon. c. comparing market demand with capacity. d. adjusting products or services to meet demand. e. developing a plan to convert the idea into a new good or service.

b. Basic research just wants to uncover new knowledge; while, applied research wants to discover new knowledge with some potential use.

How are basic research and applied research different? a. Applied research just wants to uncover new knowledge; while, basic research wants to discover new knowledge with some potential use. b. Basic research just wants to uncover new knowledge; while, applied research wants to discover new knowledge with some potential use. c. Applied research just wants to uncover new knowledge; while, basic research involves research activities undertaken specifically to put new or existing knowledge to use producing goods and services. d. Basic research involves research activities undertaken specifically to put new or existing knowledge to use producing goods and services; while, applied research wants to discover new knowledge with some potential use. e. Basic research wants to discover new knowledge with some potential use; while, applied research involves research activities undertaken specifically to put new or existing knowledge to use producing goods and services.

c. Both types of businesses must plan, design, execute, evaluate, improve, and redesign their products to satisfy customers.

How is the production of services similar to the production of manufactured goods? a. The level of involvement of the customer is the same for both manufactured goods and services. b. Both manufactured goods and services are labor-intensive. c. Both types of businesses must plan, design, execute, evaluate, improve, and redesign their products to satisfy customers. d. The durability is the same for both manufactured goods and services. e. Since both manufactured goods and services are intangible, it is difficult to evaluate customer satisfaction.

c. research and development (R&D)

Most companies use _____ to determine which goods and services to provide and the features they need to possess. a. accounting departments b. networking c. research and development (R&D) d. competitors e. technology

b. capacity.

The amount of products or services that an organization can produce in a given time is known as: a. mass production. b. capacity. c. analytical process. d. product line. e. design process.

d. product line, required capacity, and use of technology.

The major decisions involved in design planning deal with: a. type of business ownership, financial planning, and human resources. b. human resources, community development, and use of technology. c. required capacity, financial planning, and physical location. d. product line, required capacity, and use of technology. e. financial planning, product line, and supply-chain management.

e. inventory control.

The process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs is referred to as: a. just-in-time inventory. b. economic order quantity model. c. materials requirements planning. d. raw materials inventory. e. inventory control.

e. When compared to services, customers are much more involved in obtaining the manufactured good they want or need.

The production of services is different from the production of manufactured goods in all of the following ways, except: a. Services are intangible, and it is therefore more difficult to evaluate customer satisfaction. b. Services are usually labor-intensive. c. Services are provided when and where the customer desires the service; in many cases, customers will not travel as far to obtain a service. d. Services are consumed immediately and, unlike manufactured goods, cannot be stored. e. When compared to services, customers are much more involved in obtaining the manufactured good they want or need.

a. Lean manufacturing

What is the concept's name that is built on an idea of eliminating waste from all of the activities required to produce a product or service? a. Lean manufacturing b. Indirect manufacturing c. Direct manufacturing d. Continuous process e. Flexible manufacturing

b. Form utility

What utility is created by people converting raw materials, finances, and information into finished products? a. Time utility b. Form utility c. Place utility d. Possession utility e. Operations utility

c. focus; magnitude

When a local pizza parlor takes raw ingredients such as tomatoes, cheese, and flour to make a pizza for a customer, the raw ingredients are known as the _______ of the conversion process and the degree to which the resources are physically changed is known as the _______ of the conversion process. a. utility; focus b. magnitude; focus c. focus; magnitude d. focus; utility e. magnitude; utility

e. After materials have been purchased and their use determined

When does routing take place for operations managers? a. Prior to even considering which parts to purchase and where b. After materials have been purchased, but before their use is determined c. Prior to all material procurement d. As the final stage of the manufacturing process e. After materials have been purchased and their use determined

e. Marketing of products

Which of the following is least likely to be a role of operations management? a. Managing logistics b. Manufacturing productivity c. Quality control d. Oversee the transformation process e. Marketing of products

a. Magnitude

Which of the following is not one of the four types of utilities? a. Magnitude b. Time c. Form d. Possession e. Place

d. Six Sigma

Which technique do businesses use to improve quality of products and services, as well as overall performance? a. Total quality management (TQM) b. Statistical process control (SPC) c. Continuous improvement d. Six Sigma

b. Purchasing

Which term describes the act of buying of all materials needed by the organization? a. Just-in-time b. Purchasing c. Quality control d. Selling e. Materials requirement planning

e. Facility location

_____ is a significant question because, once the decision has been made and implemented, the firm must live with it due to the high costs involved. a. Continuous manufacturing organization b. Fixed-position layout c. Process layout d. Use of technology e. Facility location

e. Quality control

_____ refers to the processes an organization uses to maintain its own established quality standards within the organization. a. Malcolm Baldrige National Quality Award b. Just-in-time inventory c. Materials requirements planning d. Scheduling e. Quality control