Chapter 10: Connect Master Intro to Business

Tanisha is creating a time schedule for a project that she is working on that will help her monitor her progress on specific tasks. Which scheduling technique would be the most appropriate for this project?

A Gantt chart

What type of scheduling tool makes managers more efficient by offering sophisticated management planning tools for large, complex projects?

A PERT chart

You are working on a complex project that has multiple activities taking place in parallel while certain details, such as tasks and milestones, are updated on an ongoing basis. Which scheduling technique would be the most appropriate for this project?

A PERT chart

What is total quality management?

A comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction

Materials requirement planning (MRP) Enterprise resource planning (ERP)

A computer-based method of delivering the right amounts of supplies, Uses a bill of materials to deliver the materials A computer-based system that collects and provides information about a company's entire enterprise, Provides access to applications to software vendors via the Internet

Which business is most likely to use a process layout for manufacturing its product?

A magazine publisher

Select all of the examples of analytic transformation.

A new building is divided into offices, retail shops, and apartments. Gold ore is crushed, separated, and smelted into pure gold.

ISO 9000 series Six Sigma Statistical process control

A set of quality-assurance procedures that companies must install that can be audited by independent experts A rigorous statistical analysis process that reduces defects in manufacturing and service-related processes A statistical technique that uses periodic random samples from production runs to see if quality is being maintained

Select all of the benefits firms gain from using many suppliers.

Access to constant resources Access to the best prices

When a company utilizes benchmarking to compare its performance to that of other high-performing organizations, it is engaging in which component of TQM?

Accurate standards are used to identify and eliminate problems.

What is the definition of a production schedule?

An outline of the time periods for each task in the production process

The process in which resources are broken down to create finished products is known as ___ transformation.

Analytic

What is the process in which resources are broken down to create finished products?

Analytic transformation

Analytic Synthetic

Breaking down materials, Using chemical or mechanical means to break apart inputs Combining materials, Using assembly processes to create finished goods

From the following list, select all of the examples of resources needed to produce finished products.

Capital Entrepreneurship Knowledge

What two items form the column and row headings of a Gantt chart?

Dates and tasks

Select all of the benefits of locating production facilities near suppliers.

Decreased supply shipping costs Better communication with the supplier

Product Process Fixed-position

Equipment and tasks are arranged in an assembly line. Similar work is grouped by function. Materials, equipment, and labor are transported to one location.

"Workers must be empowered and trained to find and solve problems." To which component of total quality management (TQM) does this statement refer?

Every employee needs to be involved.

Which statement best describes purchasing?

Finding the best resources for the best price from the best suppliers to produce the best goods and services

Select all of the drawbacks of using only a few suppliers.

Firms may pay a higher price for supplies. Supplies may not always be available.

Which production system always uses machines to perform multiple tasks?

Flexible manufacturing

What is the term for the value that people add when converting resources, such as natural resources, capital, human resources, entrepreneurship, and knowledge, into finished products?

Form utility

What type of scheduling tool makes managers more efficient by showing a simple relationship between the kind of work tasks planned and their scheduled completion dates?

Gantt chart

Which quality control technique requires independent experts in order to implement?

ISO 9000 series

Materials requirement planning (MRP) systems Enterprise resource planning (ERP) systems

Inventory tracking, Demand forecasting, General accounting Supply chain management, Material management, Project management

How does a Gantt chart help boost managers' efficiency? More than one answer may be correct.

It compares planned time to complete a task with actual time taken to complete it. It helps managers make adjustments so as to hold the final target date. It is easy to create and show the relationship between the kind of work tasks planned and their scheduled completion dates.

Select all of the statements that are true about computer-aided design (CAD)?

It enables drawing in three dimensions and rotation on the computer screen of the product, so the designer can see all sides. It is used to design products, structures, civil engineering drawings, and maps.

From the following list, select all of the reasons why total quality management is important.

It helps ensure that companies provide what customers want. It improves employee performance on the job. It reduces defects and errors before and after product or service delivery.

How does a PERT chart help boost managers' efficiency? More than one answer may be correct.

It helps managers estimate the minimum time needed to complete each task. It allows managers to organize large, complex projects.

You started a small business, and your business partner is skeptical about implementing a just-in-time (JIT) system for inventory control, saying the inventory is too small for it to be helpful. Select all of the considerations you should point out about implementing JIT.

JIT will help you use working capital efficiently. Holding a storeroom or warehouse full of inventory will be expensive.

What type of inventory control involves keeping only minimal supplies on the organization's premises and having others delivered by suppliers on an as-needed basis?

Just-in-time

Jamal is a purveyor of gourmet organic juices. Select all the examples of finished products he can sell (also called outputs).

Kale-ginger juice Orange juice

Which modern production technology involves using the fewest resources?

Lean manufacturing

Select all of the benefits of using only a few suppliers.

Lower chances that proprietary secrets will be revealed Increased supplier reliability

What is a type of computer-based planning that focuses on delivering the right amounts of supplies to the right place at the right time for the production of goods?

Materials requirement planning

What was the first technology change to production that improved efficiency?

Mechanization

Ibrahim is building a deck. Select all of the resources (or inputs) he is likely to use.

Nails Measuring tape Lumber

Where should firms locate production facilities if their main priority is to reduce time to market?

Near customers

Calista's company makes snowboards. In general, the company sells a much larger number of snowboards during the winter than during the summer. Should Calista's company use just-in-time (JIT) inventory control?

No, because JIT is not effective if demand varies throughout the year

From the following list, select all the steps that are part of the process of creating and using a Gantt chart.

Note which tasks are done and which are to be done. Write the time line across the top of the chart. List the tasks along the left side of the chart.

What is another word for the entire process of production?

Operations

From the following list, select all of the examples of transformation processes.

Pan-frying potatoes Roasting coffee beans

Carlos owns a shop that builds custom motorcycles. He has set up the shop so that there are four separate areas: one for building the frame; one for adding the engine, brakes, and other mechanical elements; one for painting; and one for final assembly and touch-ups. The motorcycles and parts move between these areas as necessary. What type of facility layout has Carlos implemented in his shop?

Process

Which type of layout groups similar work by function?

Process

Operations management Production management

Produces goods and services, Involves managing the entire transformation process Produces only goods, Focuses solely on transforming materials, labor, and other resources into goods

In what type of layout are equipment and tasks arranged into the sequence of steps necessary for producing a single product?

Product

From the following list, select all of the merits of the ISO 9000 series as a quality control technique.

Promotes trust and further business Creates a more efficient and effective operation Reduces flaws in manufacturing

Select all of the reasons why it is important for firms to consider resources when choosing a facility location.

Qualified workers may be more willing to move to certain locations. Some locations may be closer to the necessary resources, making them more convenient and less expensive to access.

Total quality management (TQM) is important because it addresses which three aspects of a business?

Quality improvement, training, and customer satisfaction

Select all of the potential drawbacks to using many suppliers.

Reduced supplier reliability Increased chances of proprietary secrets being revealed

What is one major benefit of locating production facilities near suppliers?

Reduced supply shipping costs

What is the major benefit of locating a production facility near customers?

Reduced time to market

From the following list, select all of the elements required to produce goods and services.

Resources Transformation

Product Process Fixed-position

Sewing stations, Appliance assembly Body shop, Hospital Nuclear power plant, Airport

Gantt PERT

Shows the relationship between the tasks planned and their completion dates, Indicates deadlines in a graphical manner Determines the best sequencing of tasks, Estimates the minimum time to complete tasks as well as total project time

From the following list, select all of the examples of transformation processing.

Smelting Distillation

What is one reason why firms should consider taxes when choosing a facility location?

Some states offer more favorable tax treatment of companies.

The process in which resources are combined to create finished products is called ___ transformation.

Synthetic

What is the process in which resources are combined to create finished products?

Synthetic transformation

When a company conducts focus groups with customers to find out what their needs are, it is engaging in which component of TQM?

TQM companies learn from customers.

Why is it important for certain businesses, such as coal mines and fisheries, to consider resources when choosing a facility location?

The availability and nearness of resources impacts the feasibility of the firm.

What is the definition of quality control?

The implementation of inspections throughout the entire production process

Which best describes CIM?

The integration of CAD with CAM

What is benchmarking?

The process by which a company compares its performance with that of high-performing organizations

What is quality assurance?

The process of minimizing errors by managing each stage of production

What is mechanization?

The use of machines to do the work formerly performed by people

From the following list, select all of the processes that a production manager might oversee.

Turning lumber into a table and chairs Turning grapes into wine Turning fabric into a quilt

Which of the following best describes CAD?

Using computers to design products

Which best describes CAM?

Using computers to manufacture products

Mechanization Standardization Assembly line Automation Mass production

Using machines to replace labor Using uniform parts Using a series of specific tasks Requiring minimal human intervention Producing uniform goods for a predictable experience

Select all of the situations in which you would advise against using just-in-time inventory control?

When a firm has a diverse product line When demand for your product lines varies

When would a product layout be the best layout for a facility?

When the manufacturing of a product follows a set series of steps

Select all of the benefits that local governments provide to companies in order to create local jobs.

Zoning changes Tax benefits Financial incentives

In a product layout, equipment and tasks are ______.

arranged into an assembly line

The process of minimizing errors by managing each stage of production is known as quality ___

assurance

The process by which a company compares its performance with that of high-performing organizations is known as ___

benchmarking

Enterprise resource planning is primarily concerned with ______.

collecting and providing information about all of a firm's operations

Synthetic transformation differs from analytic transformation because it involves ______.

combining materials

In just-in-time inventory control, most of a firm's supplies are ______.

delivered to the firm on an as-needed basis

The physical arrangement of equipment, offices, rooms, people, and other resources within an organization for producing goods or services is referred to as ______ layout.

facility

Production is the process that creates ______.

finished goods

The purpose of the production process is to create ______.

finished products

A facility that can be modified quickly to manufacture different products is known as a(n) ___ manufacturing system.

flexible

The value added in the production process is known as ____ ____

form utility

The purpose of the transformation process is to add value by converting basic resources to finished ___

good and service

In the process layout, work is ______.

grouped by function

A comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction is known as total quality ___

management

A bill of materials is used to deliver the right materials on time to the right place in ___ requirement planning.

materials

In just-in-time inventory (JIT) control, ______ supplies are kept on a firm's premises.

minimal

Just-in-time inventory control means that ______.

only minimal inventory is kept on a firm's premises

Aziz works at a company that manufactures chairs. The different steps in the chair assembly process, from cutting the wood to screwing the pieces together to staining and finishing the completed chair, are set up in a line that stretches from one end of the building to the other. This is best described as an example of the ______ layout.

product

Any process that takes basic resources and converts them into finished products is known as ___

production

The activity of locating the best resources for the best price from the best suppliers so that a firm can produce the best goods and services is referred to as ______.

purchasing

The implementation of inspections throughout the entire production process is known as ___ control.

quality

The total ability of a product or service to meet customer needs is called ___

quality

Firms use a computer-based method called materials ___ planning to ensure the delivery of the right amounts of supplies to the right place at the right time.

requirement

Companies use computer-based, enterprise ___ planning systems to collect and provide information about the company's entire enterprise.

resource

An outline of the time periods for each task in the production process is known as the production ___

schedule

The process layout is most appropriate when ______.

similar work can be grouped by function

The process of supply chain management focuses on the production and movement of inputs and outputs from

suppliers to customers

Companies produce goods and services by integrating many facilities, functions, and processes in a process known as ___ ___ management.

supply chain

Standardization is best described as ______.

using uniform parts