BUS101 - Chapter 7 Test Bank
Stardust 'n' Clay is a manufacturer and mass marketer of personal care products and nutritional supplements. The company plans to launch a line of organic beauty products that are made entirely from mineral pigments and organic plant extracts. These products, though expensive to process, offer much higher margins than the company's current lines of beauty products. The market for organic beauty products is relatively untapped, with just a handful of players. Which of the following, if true, would strengthen the case for Stardust 'n' Clay to begin developing organic beauty products?
A growing number of women 18-34 consider the health impact of chemicals found in a beauty product when making a cosmetics purchase decision.
Toys for Pops is a small business that focuses on indoor and outdoor games intended for an adult male clientele. It stocks a range of fantasy action figures and models, low-impact athletic accessories such as Frisbees and croquet sets, and a wide range of video games. The business has grown to the point that a larger location is needed. Recently, a location has come up for rent at a nearby strip mall at a favorable rate. The facility would provide the business with much needed shelf space and more room for employees behind the counter. However, the strip mall is in an area that has also seen a rapid increase in petty crime. The CEO feels that the advantages of the new location support the decision to relocate. Which of the following, if true, might justify the relocation as a prudent move from the human resource point of view?
Anonymous notes in the firm's suggestion box repeatedly cited cramped conditions and lack of privacy as the most annoying factors in working conditions at the present site.
A software development company is designing an evaluation plan for its software programmers. The company feels that changes are necessary because it lacks the facts it needs to distinguish outstanding software programmers from those that are only average, or worse. Previously, the company paid software programmers a flat salary and based evaluations on supervisors' opinions. Now, however, the company is considering the following measures for its software programmers: Measurement Strategy Alpha: Software programmers will be evaluated based on the total number of lines of code that they produce. Measurement Strategy Beta: Software programmers will be evaluated based on their ability to produce computer code that is free of errors. Measurement Strategy Gamma: Software programmers will be evaluated based on the market success of the products they produce. Which of the following, if true, would weaken the argument that the company should use Measurement Strategy Alpha?
Any software programmer can choose to increase the number of lines of code it takes to perform any function.
Clean Sweep Corporation is a consumer goods company manufacturing home-care cleaning products. Sales of Sparkle, its flagship disinfectant, and some of its other cleaning products have been sluggish during the last two quarters. Of late, retailers have also shown a lack of confidence in these product lines. The management is looking at different ways to improve the efficiency of its entire supply chain. Some senior executives believe that the company should shift to a just-in-time logistics system. However, this opinion does not have unanimous support. Which of the following, if true, would strengthen the argument for the shift to a just-in-time inventory system?
Clean Sweep's storage and handling costs are significant.
Stardust 'n' Clay is a manufacturer and mass marketer of personal care products and nutritional supplements. The company plans to launch a line of organic beauty products that are made entirely from mineral pigments and organic plant extracts. These products, though expensive to process, offer much higher margins than the company's current lines of beauty products. The market for organic beauty products is relatively untapped, with just a handful of players. Which of the following, if true, would weaken the argument for developing organic beauty products?
Competitors in this segment are quick to copy any new product innovation and mimic product design.
Clean Sweep Corporation is a consumer goods company manufacturing home-care cleaning products. Sales of Sparkle, its flagship disinfectant, and some of its other cleaning products have been sluggish during the last two quarters. Of late, retailers have also shown a lack of confidence in these product lines. The management is looking at different ways to improve the efficiency of its entire supply chain. Some senior executives believe that the company should shift to a just-in-time logistics system. However, this opinion does not have unanimous support. Which of the following questions is LEAST relevant to the issue of whether the company should switch to a just-in-time logistics system?
Do end users currently favor making the transition?
A company typically selects the kind of production used by most of its competitors.
FALSE A company picks the one that best achieves its larger business strategy.
A detailed schedule will indicate how many employees will be working on a given shift.
FALSE A detailed schedule shows day-to-day activities that will occur in production. A staff schedule identifies how many employees will be working.
A value chain includes an entire network of firms, beginning with suppliers and ending when production is complete.
FALSE A value chain, also known as a supply chain, includes the flow of information, materials, and services that starts with raw-materials suppliers and continues adding value through other stages in the operations process until the product reaches the end customer.
An assembly line is an example of a custom-products layout.
FALSE An assembly line is a same-steps layout.
In a low-contact system, the customer must be a part of the system to receive the service.
FALSE An example of a low-contact system is mail delivery, where the customer need not be present to receive the service.
Successful companies, such as 3M and FedEx, use the same operations strategy.
FALSE Companies adopt the kind of production that achieves their larger business strategy.
Managers of a restaurant eat at a competing restaurant in order to identify desirable improvements in their own operations; this illustrates quality control.
FALSE Competitive product analysis is a process by which a company analyzes a competitor's products to identify desirable improvements.
Even excellent firms focus on one competence at a time.
FALSE Excellent firms learn, over time, how to achieve more than just one competence.
Getting a haircut and having your lawn mowed are both examples of low-contact services.
FALSE Getting a haircut is a high-contact service.
Just-in-time (JIT) production systems normally require large amounts of "safety stock" to be maintained in a firm's warehouse.
FALSE JIT production reduces inventory levels by bringing needed materials together only at the precise time they are needed for production and/or shipment to the customer.
Materials management involves the flow of materials inside of the production facility, while distribution management involves the flow of finished goods.
FALSE Materials management is the process by which managers plan, organize, and control the flow of materials from design through distribution of finished goods.
Japanese companies adapted the concept of quality circles from quality improvement teams used by U.S. companies.
FALSE Quality improvement teams are patterned after the Japanese concept of quality circles.
Services are more tangible, more customized, and more storable than most products.
FALSE Services are less tangible and less storable than goods.
Staff schedules identify which products will be produced and when.
FALSE Staff schedules, in general, specify assigned working times in upcoming days—perhaps for as many as 30 days or more—for each employee on each work shift.
Because supply chain strategy is based on the collective effort of a number of firms, no one firm in the chain gains a competitive advantage.
FALSE Supply chain strategy is based on the idea that members of the chain will gain competitive advantage by working as a coordinated unit.
ISO 9000 is a certification program attesting to the fact that a factory, laboratory, or office has improved its environmental performance.
FALSE This is a description of ISO 14000.
Which of the following is a scheduling tool that breaks down large projects into steps to be performed and specifies the time required to perform each one?
Gantt chart A project manager uses a Gantt chart to keep the project moving on schedule.
Performance refers to which of the following?
How well the product does what it is supposed to do. Planning for quality begins when products are being designed. Early in the process, goals are established for both performance and consistency.
Which program certifies improvements in environmental performance?
ISO 14000 Extending the ISO approach into the arena of environmental protection and hazardous waste management, ISO 14000 requires a firm to develop an environmental management system.
Clean Sweep Corporation is a consumer goods company manufacturing home-care cleaning products. Sales of Sparkle, its flagship disinfectant, and some of its other cleaning products have been sluggish during the last two quarters. Of late, retailers have also shown a lack of confidence in these product lines. The management is looking at different ways to improve the efficiency of its entire supply chain. Some senior executives believe that the company should shift to a just-in-time logistics system. However, this opinion does not have unanimous support. Which of the following, if true, would weaken the argument for the shift to a just-in-time logistics system?
Implementing the system would require an extensive overhaul of the existing supply chain.
Clean Sweep Corporation is a consumer goods company manufacturing home-care cleaning products. Sales of Sparkle, its flagship disinfectant, and some of its other cleaning products have been sluggish during the last two quarters. Of late, retailers have also shown a lack of confidence in these product lines. The management is looking at different ways to improve the efficiency of its entire supply chain. Some senior executives believe that the company should shift to a just-in-time logistics system. However, this opinion does not have unanimous support. A senior executive claims that a move to a "just-in-time" logistics system would be a mistake because even if the system is effective at reducing inventory and handling costs, the change would not be noticed by customers. The executive claims that the change should be rejected as it runs counter to Clean Sweep's goal of being "customer-focused." Which of the following is the best criticism of the senior executive's position?
It fails to recognize that having a more efficient supply chain will allow Clean Sweep to offer more value to its customers.
A software development company is designing an evaluation plan for its software programmers. The company feels that changes are necessary because it lacks the facts it needs to distinguish outstanding software programmers from those that are only average, or worse. Previously, the company paid software programmers a flat salary and based evaluations on supervisors' opinions. Now, however, the company is considering the following measures for its software programmers: Measurement Strategy Alpha: Software programmers will be evaluated based on the total number of lines of code that they produce. Measurement Strategy Beta: Software programmers will be evaluated based on their ability to produce computer code that is free of errors. Measurement Strategy Gamma: Software programmers will be evaluated based on the market success of the products they produce. The choice to use only Measurement Strategy Gamma would be vulnerable to criticism in what way?
Many factors other than software programming are required for market success.
Which term refers to all the activities involved in making products—goods and services—for customers?
Operations "Operations" and "production" refer to the same activities.
Which scheduling tool shows the necessary sequence of activities in a project and identifies the critical path?
PERT chart The critical path is the most time-consuming set of activities in a project.
A software development company is designing an evaluation plan for its software programmers. The company feels that changes are necessary because it lacks the facts it needs to distinguish outstanding software programmers from those that are only average, or worse. Previously, the company paid software programmers a flat salary and based evaluations on supervisors' opinions. Now, however, the company is considering the following measures for its software programmers: Measurement Strategy Alpha: Software programmers will be evaluated based on the total number of lines of code that they produce. Measurement Strategy Beta: Software programmers will be evaluated based on their ability to produce computer code that is free of errors. Measurement Strategy Gamma: Software programmers will be evaluated based on the market success of the products they produce. Which of the following would be most similar to a decision to use Measurement Strategy Alpha and Measurement Strategy Beta together?
Stardust 'n' Clay rewards production line workers based on meeting production quotas and avoiding product defects.
A process flowchart identifies the sequence of production activities, movements of materials, and work performed at each stage of the process.
TRUE A process flowchart can be analyzed to isolate wasteful activities, sources of delay, and other inefficiencies.
In a same-steps layout, equipment and people are set up to produce one type of good in a fixed sequence of steps and are arranged according to its production requirements.
TRUE A same-steps layout allows for the efficient use of an assembly line, where production operations are set up along a product-flow line.
The goal of supply chain management is better overall flow in the system.
TRUE After several companies work to improve the flow of materials through the system, the ultimate reward is better value for customers.
According to the text, to ensure that truckloads of merchandise flow quickly to stores, Wal-Mart distribution centers are located near the hundreds of stores that they supply, not near the companies that supply them.
TRUE At Wal-Mart, managers of the company's huge distribution centers regard Wal-Mart outlets as their customers.
Operations control includes materials management and quality control.
TRUE Both activities are a part of operations control and ensure that schedules are met and products delivered, both in quantity and in quality.
A firm's capacity depends on both how many people it employs and the number and size of its facilities.
TRUE Capacity is the amount of a product that a company can produce under normal conditions.
The sales department relies on the engineering department to send samples and quotes to prospective customers on a timely basis; the sales department may be considered the engineering department's internal customer.
TRUE Customers are both internal and external.
If parts A, B, and C must be produced this week, a detailed schedule will indicate the sequence of work.
TRUE Detailed schedules show day-to-day activities that will occur in production.
By turning raw materials into finished goods, production creates form utility.
TRUE Form utility is created when raw materials and human skills are converted into finished goods and services.
Firms that make only tangible products are engaged in goods production.
TRUE Goods are tangible products, while services may be either tangible or intangible.
ISO 14000 may result in a recycling program at a company.
TRUE ISO 14000 certifies improvements in environmental performance, extending the ISO approach into the arena of environmental protection and hazardous waste management.
For manufacturing firms, typical materials costs make up 50 to 75 percent of total product costs.
TRUE Materials stakes are high for service firms as well.
ISO 9000 is a certification program attesting that a factory, laboratory, or office has met the rigorous requirements set by the International Organization for Standardization.
TRUE More than 160 countries have adopted ISO 9000 as a national standard.
Quality improvement teams are groups of employees from various work areas who define, analyze, and solve common production problems.
TRUE Quality improvement teams seek to improve both their own work methods and the products they make.
The biggest challenge of TQM is motivating employees throughout the company to achieve quality goals.
TRUE The backbone of TQM is motivating employees throughout the company to achieve quality goals. Leaders of the quality movement use various methods and resources to foster a quality focus; when those efforts succeed, employees will ultimately accept quality
Operations capability is a special ability that production does especially well to outperform the competition.
TRUE The chosen operations capability should be compatible with the overall business strategy.
Each stage in the supply chain adds value for the final customer.
TRUE The supply chain starts with raw-materials suppliers and continues until the product reaches the end customer.
When a company turns out ornaments in time for Christmas, it creates time utility.
TRUE Time utility is created when products are made available for consumers when they want them.
Value-added analysis might focus on both the elimination of waste and cost minimization.
TRUE Value-added analysis refers to the evaluation of all work activities, material flows, and paperwork to determine the value that they add for customers; it often reveals wasteful or unnecessary activities that can be eliminated without jeopardizing customer service.
A software development company is designing an evaluation plan for its software programmers. The company feels that changes are necessary because it lacks the facts it needs to distinguish outstanding software programmers from those that are only average, or worse. Previously, the company paid software programmers a flat salary and based evaluations on supervisors' opinions. Now, however, the company is considering the following measures for its software programmers: Measurement Strategy Alpha: Software programmers will be evaluated based on the total number of lines of code that they produce. Measurement Strategy Beta: Software programmers will be evaluated based on their ability to produce computer code that is free of errors. Measurement Strategy Gamma: Software programmers will be evaluated based on the market success of the products they produce. Management has decided to combine all three Measurement Strategies in order to give the software programmers incentives that match the company's goals. If the products meet their Gamma goals, software programmers who have met either their Alpha goals or their Beta goals will be rewarded, but if the products fail to meet their Gamma goals, software programmers will not be rewarded unless they have met both their Alpha goals and their Beta goals. Under this system, which of the following CANNOT be true?
The company meets its Gamma goals, and a software programmer who meets his or her Alpha goals is not rewarded.
Toys for Pops is a small business that focuses on indoor and outdoor games intended for an adult male clientele. It stocks a range of fantasy action figures and models, low-impact athletic accessories such as Frisbees and croquet sets, and a wide range of video games. The business has grown to the point that a larger location is needed. Recently, a location has come up for rent at a nearby strip mall at a favorable rate. The facility would provide the business with much needed shelf space and more room for employees behind the counter. However, the strip mall is in an area that has also seen a rapid increase in petty crime. The CEO feels that the advantages of the new location support the decision to relocate. Which of the following, if true, would weaken the CEO's position?
The iffy reputation of the area in which the strip mall is located would make the business's current employees uneasy about their safety at work, which would lead to increased turnover in staff.
EZTrade is a retail organization that owns specialty stores for a diverse range of product categories, ranging from home furnishings and sporting goods to books and gourmet foods. With more than 50 stores, the firm is now considering entering the very lucrative low-cost market by launching Clothe-a chain of retail stores that offers affordable fashion for men, women, and children. Which of the following, if true, would strengthen the argument for being a low-cost player?
The retailer's logistics operations are more efficient than the industry norm.
A software development company is designing an evaluation plan for its software programmers. The company feels that changes are necessary because it lacks the facts it needs to distinguish outstanding software programmers from those that are only average, or worse. Previously, the company paid software programmers a flat salary and based evaluations on supervisors' opinions. Now, however, the company is considering the following measures for its software programmers: Measurement Strategy Alpha: Software programmers will be evaluated based on the total number of lines of code that they produce. Measurement Strategy Beta: Software programmers will be evaluated based on their ability to produce computer code that is free of errors. Measurement Strategy Gamma: Software programmers will be evaluated based on the market success of the products they produce. A decision to use Measurement Strategy Beta would assume which of the following?
When a software error is discovered, it is possible to determine who is responsible for it.
Which of the following best describes ISO 14000?
a certification program attesting to the fact that a factory, laboratory, or office has improved environmental performance ISO 14000 requires a firm to develop an environmental management system, documenting how the company has acted to improve its performance in using resources and in managing pollution.
In which of the following is the customer part of the system during service delivery?
a high-contact system A manicure is an example of a high-contact system.
Which of the following best describes ISO 9000?
a program certifying that a factory, laboratory, or office has met the quality management standards of the International Organization for Standardization ISO 9000 certifies that a factory, laboratory, or office has met the quality management standards of ISO; these standards are now regarded as a national standard for more than 160 countries.
Which of the following would be considered a high-contact system?
barber shop A barber's services require that the consumer be present during the service transaction.
Which term refers to the fundamental rethinking and radical redesign of a business activity to achieve dramatic improvements in performance?
business process reengineering Rethinking the production steps by starting from scratch has allowed dramatic improvements in cost, quality, service, and speed.
Which of the following is the amount of a product that a company can produce under normal working conditions?
capacity A firm's capacity depends on how many people it employs and the number and size of its facilities.
In operations control, production managers monitor production performance by which method?
comparing results with detailed plans and schedules If schedules or quality standards aren't met, managers can take corrective action.
When a worker at Toshiba takes apart a Xerox copier and tests each component, it is engaging in what activity?
competitive product analysis Competitive product analysis is the process by which a company analyzes a competitor's products to identify desirable improvements.
What name is given to the process by which a company analyzes another company's product to identify desirable improvements in its own product?
competitive product analysis Using competitive analysis, for example, Toshiba might take apart a Xerox copier and test each component.
The sameness of product quality from unit to unit is referred to by which term?
consistency High consistency at its many locations has made Courtyard by Marriott a leader in the lodging industry.
Equipment and people are grouped according to function in which type of production layout?
custom-products A custom-products layout is well suited to make-to-order shops.
Machine, woodworking, and dry cleaning shops typically use which type of layout?
custom-products In a custom-products layout, machines and people are grouped by function in the production facility; custom-products layouts allow for greater flexibility and are well suited to make-to-order shops.
Which of the following is NOT one of the areas of materials management?
customer service Materials management includes supplier selection, purchasing, transportation, warehousing, and inventory control.
Which operations competence has FedEx given greatest credit for winning orders (business) in the marketplace?
dependability FedEx wants to assure that every delivery is fast and on time, as promised
Which of the following would be considered a low-contact service?
electric power All of the other choices are considered high-contact services in which the consumer must be present during the service transaction.
3M uses which strategy for attracting customers?
flexibility The flexibility strategy at 3M emphasizes new product development.
When Ford assembles parts into a Ford Explorer, it creates which type of utility?
form Form utility is created when raw materials are converted into finished products.
Which of the following is NOT a major objective of JIT production?
increasing stop-and-go production JIT production replaces stop-and-go production with smooth movement.
Which of the following refers to the receiving, storing, handling, and counting of all raw materials, partly finished goods, and finished goods?
inventory control Inventory control ensures that enough materials inventories are available to meet production schedules, while at the same time avoiding expensive excess inventories.
What is the name for a production system in which all the needed materials and parts arrive at the precise moment they are required for each production stage?
just-in-time production JIT production brings together all needed materials at the precise moment they are required for each production stage, not before, creating efficient responses to customer orders.
Which type of system is designed for smooth production flow to avoid inefficiencies, eliminate unnecessary inventories, and continuously improve production processes?
lean system Lean production systems were pioneered by Toyota.
The check-processing operations at your bank would be considered to be which type of system?
low-contact Check-processing operations can be completed without the consumer being present.
Save-A-Lot grocery stores use which type of strategy for attracting customers?
low-cost Save-A-Lot offers items at savings up to 40 percent less than conventional food chains.
Logan Aluminum makes coils of aluminum that it supplies to customer companies that use it to make beverage cans. Logan uses a schedule that specifies how many tons of each type of coil will be produced each week. What is this schedule called?
master production schedule The master production schedule shows which products will be produced, and when, in upcoming time periods.
Managers can work to reduce waste, inefficiency, and poor performance by examining procedures on a step-by-step basis. Which term describes this process?
methods improvement A process flowchart is sometimes used to assist in methods improvement.
Examining step-by-step procedures to reduce inefficiency most centrally involves which approach?
methods improvement Methods improvement has been used to streamline the traditional checkout method at hotels.
Which of the following is greatly reduced in a just-in-time production system?
number of goods in process As a result, JIT production minimizes inventory costs and saves money by replacing stop-and-go production with smooth movement.
What term describes a special ability that production does especially well to outperform the competition?
operations capability A company chooses an operation capability that is compatible with its overall business strategy.
In a business, whose job is it to draw up plans to transform resources into products and bring together basic resources, such as knowledge, physical materials, equipment, and labor?
operations manager Operations managers are responsible for ensuring that operations processes create value and provide benefits to customers.
Which term refers to a set of methods and technologies used to produce a good or service?
operations process Banks use document shredding and data encryption to protect confidential information. Both are examples of operations processes.
Which term refers to the strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services?
outsourcing The decision to outsource expands supply chains.
Which term refers to how well a product does what it is supposed to do?
performance The performance of a fast-food meal might be judged by whether it tastes good and is reasonably filling.
When a company makes products available where they are convenient for consumers, it creates which type of utility?
place A fast-food restaurant located in a college union is an example of place utility.
Which type of utility is created when a company makes products available where consumers want them?
place An example of place utility is a theater showing a wide selection of movies in a popular shopping mall.
Receiving and storing materials, billing patients for treatment, and filling customer orders from Internet sales are examples of which activity?
process Every business consists of processes, which are activities that are performed regularly and routinely in conducting business.
Which term refers to the acquisition of the raw materials a company needs to produce its products?
purchasing Most large firms have purchasing departments to buy proper services and materials in the amounts needed.
Which term is defined as the combination of "characteristics of a product or service that bear on its ability to satisfy stated or implied needs"?
quality Such characteristics can include a reasonable price.
Which operations competence has Toyota given greatest credit for winning orders in the marketplace?
quality Toyota has focused on creating reliable cars with an appealing fit and finish, and assuring that customer expectations are met or exceeded in order to build the company's quality competence.
Which of the following is patterned after the successful Japanese concept of quality circles?
quality improvement team Quality improvement teams organize their own work, selec2 leaders, and address problems in the workplace.
Which term refers to collaborative groups of employees from various work areas who meet regularly to define, analyze, and solve common production problems?
quality improvement teams Quality improvement teams organize their own work, select leaders, and address problems in the workplace.
Which term describes the idea that quality belongs to each person who creates it while performing a job?
quality ownership A goal of total quality management is to motivate employees to accept quality ownership.
Which type of layout is designed to move resources through a smooth, fixed sequence of steps?
same-steps A same-steps layout is set up to make one type of product in a fixed sequence and is arranged according to its production requirements.
Thousands of empty jugs move down a conveyor belt at Colgate-Palmolive before stopping to be filled and moving on to be labeled. What type of layout is utilized?
same-steps An assembly line is a same-steps layout.
Automobile, food-processing, and television assembly plants use which type of layout?
same-steps These production processes require a fixed sequence that is arranged according to production requirements.
A software development company is designing an evaluation plan for its software programmers. The company feels that changes are necessary because it lacks the facts it needs to distinguish outstanding software programmers from those that are only average, or worse. Previously, the company paid software programmers a flat salary and based evaluations on supervisors' opinions. Now, however, the company is considering the following measures for its software programmers: Measurement Strategy Alpha: Software programmers will be evaluated based on the total number of lines of code that they produce. Measurement Strategy Beta: Software programmers will be evaluated based on their ability to produce computer code that is free of errors. Measurement Strategy Gamma: Software programmers will be evaluated based on the market success of the products they produce. The choice to use only Measurement Strategy Beta would be vulnerable to criticism because it would give the software programmers an incentive to do what?
spend too much time checking their code in order to eliminate any possibility of error
Which term refers to the flow of information, materials, and services from raw-materials suppliers through stages in the operations process until the product reaches the end customer?
supply chain The term supply chain refers to the group of companies and stream of activities that work together to create a product.
When Dell Inc. shares information to improve the overall flow through a system composed of companies working together, it is engaging in which of the following?
supply chain management Michael Dell's vision involves the concept of improving performance by sharing information among supply chain members; long-term production plans and up-to-the-minute sales data are available to suppliers via the Internet.
Which of the following best describes supply chain management?
the principle of looking at the supply chain as a whole in order to improve the overall flow through the system In addition, because customers ultimately get better value, supply chain management gains competitive advantage for each supply chain member.
Which of the following best describes quality ownership?
the principle that quality belongs to each person who creates it while performing a job Quality-focused leaders use various methods to foster a quality focus among the workforce; when these efforts succeed, employees will ultimately accept quality ownership.
Which of the following best describes competitive product analysis?
the process by which a company analyzes a different company's products to identify desirable improvements This analysis helps managers decide which product features are satisfactory, which features should be upgraded, and which operations processes need improvement, for example.
Which of the following best describes value-added analysis?
the process of evaluating all work activities, materials flows, and paperwork to determine the value that they create for customers Value-added analysis often reveals wasteful or unnecessary activities that can be eliminated without jeopardizing customer service.
Which of the following best describes business process reengineering?
the redesigning of business activities to improve performance, quality, and productivity Business process reengineering focuses on improving a business process, rethinking each of its steps from start to finish.
Consistency refers to which of the following?
the sameness of product quality from unit to unit This consistency is achieved by controlling for consistent raw materials, encouraging conscientious work, and maintaining equipment.
Which of the following best describes total quality management?
the sum of all activities involved in getting high-quality products into the marketplace TQM begins with leadership and a desire for continuously improving both processes and products; it must consider all aspects of a business, including customers, suppliers, and employees.
Which of the following is another term for the supply chain?
the value chain Each stage in the value chain adds value for the final customer.
When a company turns out costumes in time for Halloween, it creates which type of utility?
time Time utility is created when products are made available when customers want them.
Which of the following terms refers to all activities involved in getting quality products into the marketplace?
total quality management TQM must consider all aspects of a business, including customers, suppliers, and employees.
Which term describes services which cannot be produced ahead of time?
unstorable Unstorable services cannot be used at a later time.
Which of the following is the ability of a product to satisfy a human want or need?
utility Production adds customer value by providing utility.
Tootsie Roll Industry's corporate principle, "We run a trim operation and continually strive to eliminate waste, minimize costs, and implement performance improvements," is an example of which of the following?
value-added analysis Tootsie Roll Industry evaluates all work activities, material flows, and paperwork to determine the value that they add for customers.
When Hewlett-Packard simplified its contracts and reduced them from 20 pages to as few as 2, it was engaging in which activity?
value-added analysis Value-added analysis refers to the evaluation of all work activities, materials flows, and paperwork to determine the value that they add for customers.
Which of the following is a component of materials management?
warehousing Materials management includes supplier selection, purchasing, transportation, warehousing, and inventory control.
