business chapter 10 quiz
A CAD/CAM system:
controls flow of material, improves quality, shortens design time, and reduces costs
The goal of cellular manufacturing is to:
create a team environment
Which of the following statements about reverse auctions is true?
in a reverse auction, potential suppliers bid against each other
A company that reupholsters furniture in fabric and style selected by the owner of the piece of furniture is more than likely an example of a:
job shop
The physical arrangement of a production facility is called its:
layout
The Malcolm Baldrige National Quality Award is given to:
U.S. companies that offer goods and services of world-class quality
A process layout is best for a company that has:
a wide variety of products
Which of the following is a disadvantages associated with the flexible manufacturing system (FMS)?
an FMS is initially expensive
The product layout is sometimes called the _____ layout.
assembly-line
The _____ is a list of components and number of each needed for file cabinets that a manufacturing company will produce.
bill of materials
The letters CAD stand for:
computer-aided design
_____ combines computerized manufacturing processes with other computerized systems used before and after manufacturing.
computer-integrated manufacturing
Cherokee Spring Mill produces four varieties of corn meal based on how finely the corn is ground. The mill makes long production runs of high volume. Cherokee Spring Mill uses a(n) _____ process.
continuous
Hans Guten makes furniture according to the specifications of the customer who ordered it. Each piece of furniture he makes is unique. He only makes one piece of furniture at a time. Guten is engaged in:
customization
Computer-aided design (CAD) can be used to:
draw products, make changes in products, analyze products, and test prototypes
When an operations manager engages in _____, he or she has purchased raw material or component parts on the Internet.
e-procurement
_____ is a computerized resource planning system that includes information about the firm's suppliers and customers as well as data generated internally.
enterprise resource planning (ERP)
Cellular manufacturing combines aspects of both:
fixed position and assembly-line layouts
The goal of inventory management is to:
hold down costs and maintain accurate levels of inventory
Business process management (BPM):
involves breaking a complex product, service, or process into smaller pieces that can be created independently and then combined quickly to make a whole
A manufacturer that uses the intermittent process to produce special customer orders is called a:
job shop
A few years ago, when Coca-Cola introduced Fruitopia beverage, it spent $30 million and set what it thought was achievable sales goals. Since its introduction, Fruitopia has not been able to achieve its sales goals and has lost money for Coke. According to the concept of _____, Coke should delete the product.
lean manufacturing
DaimlerChrysler decided not to build a $750 million plant in southeast Georgia in spite of the state spending $24 million to purchase the property and an additional $36 million to prepare the site specifically for DaimlerChrysler. The _____ offered was not enough to convince DaimlerChrysler that the Georgia site was a good location for its factory.
local incentives
A continuous production process has all of the following characteristics EXCEPT:
low volume
After product specifications are set, a company must decide whether to purchase or manufacture the parts that it needs. This is called a(n) _____ decision.
make-or-buy
_____ uses a master computerized system to ensure that materials, labor, and equipment are available for production.
materials requirement planning
_____ is the management of the production conversion process for both goods and services.
operations management
In a typical set-up, American companies will employ Chinese firms to enter handwritten cards into electronic databases, but the English skills of the Chinese can only take them so far with sloppy American handwriting. Then the Chinese (or sometimes the American companies) hire Lakota Express, a company that uses Native Americans who live on a reservation in South Dakota to pick up the slack and to vet the often imperfect work. What kind of work does Lakota Express do?
outsourcing
Taco Bell fast-food restaurant does not chop the lettuce and tomatoes and grate the cheese used to make its menu items, but hires someone outside the restaurant to perform these tasks. By _____ these tasks, Taco Bell can keep its overhead low and concentrate its resources on taking customer orders and assembling food.
outsourcing
The three main types of facility layouts are:
product, process, and fixed-position
_____ is the combining of natural resources, human resources, and capital to produce goods and services.
production
_____ is the process that converts inputs into outputs that can be sold as goods and services.
production
Production and operations management involves three main types of decisions that are made at three different stages. The first type of decision to be made deals with:
production control
There is a laboratory at the North Carolina Krispy Kreme doughnut plant where the mixture for the doughnut batter is produced and packaged in 50-pound bags. Researchers in the laboratory randomly procure bags of mix and check the mix for consistency, composition, texture, and taste. The laboratory's function is _____ control.
quality
The process of creating quality standards and measuring finished goods and services against standards is called:
quality control
Which of the following is NOT a current trend in production and operations management?
quality management control
The first step in controlling production is:
routing
_____ is the aspect of production control that involves specifying and controlling the time required for each step in the production process.
scheduling
Inventory management performs all of the following tasks EXCEPT:
selling
Hershey's hot cocoa mix combines dry milk, whey, corn syrup, processed cocoa, aspartame, and artificial flavorings and colors. This conversion process is an example of:
the assembly process
_____ management emphasizes the use of quality principles in all aspects of a company's operations.
total quality
In a retail store, a point-of-sale (POS) terminal would be used to:
track inventories
Levi Strauss was strongly praised when it announced it was leaving China in 1993 because of the country's poor human rights record. However, China is also an inexpensive place to manufacture clothing, and in spite of its announcement, Levi did not stop making clothing in China. What type of facility location factor was most likely instrumental in Levi deciding to continue operating its facility in China?
availability of production inputs
There is a standard approach to butchering a steer. Once the steers are butchered according to the agreed upon method, butchers are able to provide one customer with a 2-inch thick T-bone steak and another with thin pieces of steak for making fajitas. After standardized preparation, the meat is tailored to meet individual needs and desires. This is called:
mass customization
During production planning, the operations manager must make decisions about all of the following EXCEPT:
product design
_____ is a scheduling tool that assigns three time estimates for each activity ( optimistic, most probable, and pessimistic). This technique allows managers to anticipate delays and potential problems and schedule accordingly.
the program and evaluation review technique
Which of the following factors will be important in the selection of a site for a production facility?
proximity to raw materials, nearness to customers, labor costs, and access to transportation
One useful tool for routing is _____, where production managers "map" the flow from suppliers through the factory to customers.
value-stream mapping
Operations managers:
work closely with people in marketing, finance, accounting, and human resources departments; control about three-fourths of firm's assets; face the challenge of combining people and other resources to produce high-quality products; and help to decide which products the company should produce
What is Six Sigma?
a quality control process
Which of the following businesses would be LEAST likely to use an intermittent process?
an oil refinery
Rego-Fix is a metalworking manufacturing company in Switzerland. The company primarily manufactures grinding machines in different size ranges. Rego-Fix has reduced setup time and change-over costs through the establishment of small, self-contained production units with teams who produce specific machines on small assembly lines. Rego-Fix uses:
cellular manufacturing
The _____ is an important scheduling tool for large projects. It breaks the projects into a sequence of events and smaller tasks.
critical path method
Computer-aided manufacturing (CAM) uses computers to:
develop and control production processes
Good routing procedures:
increase productivity
A(n) _____ is a manufacturing firm that produces goods in response to customized orders.
job shop
There is a facility in California that takes off-the-shelf Ford Mustangs and hones them into high-performance vehicles. The assembly line at this facility is simply a line of cars on hand-pushed carts that are moved from station to station, but many of the operations that are typically performed in an assembly plant do take place here. Using this system the company has turned out over 8,000 vehicles, more than any other American specialty vehicle manufacturer. This is an example of:
mass customization
The _____ is the entire sequence of securing inputs, producing goods, and delivering goods to a customers.
supply chain
Electronic data interchange (EDI) is an important communications tool for:
supply chain management
Because with building costs soaring out of sight, there is pent-up demand for a well-designed, green-built, contemporary home that's actually affordable. That means it has to be efficiently constructed, and the best way to do this is in a factory, where it can be put together on an assembly line, like an automobile. A company has developed the Glidehouse can be built that way in 19 days in a factory near Vancouver, British Columbia, then trucked to your property. Glidehouse is produced through:
the assembly process
Operations management is:
the management of the production conversion process
Beyond all the publicity around a recent government audit about the lack of oversight by the Federal Aviation Administration (FAA) is another problem that has not received much publicity. Quality control is not being maintained when an airline engages a contractor to work on an engine, who in turn signs up a subcontractor to work on one part of the engine. This example represents a problem with:
outsourcing
In the production of corn meal for baking, corn is ground. This conversion process is an example of:
process manufacturing
A CAD/CAM system is a(n):
production design and control system
Which of the following is a characteristic of the intermittent process?
short production runs