Module 7

Which of the following is an example of outsourcing?

A senior assisted-living facility has started sending its linens out to a commercial laundry firm because the laundry firm can do it cheaper.

Which of the following is the BEST description of a master operations schedule?

A top-level schedule showing which products will be produced, and when, in upcoming time periods

Which of the following best describes make-to-stock operations?

Activities for producing standardized products for mass consumption

A firm that mass produces stereos for automobiles needs to test its equipment. Karen pulls a CD player from the conveyor belt and inserts a CD. She then presses the play button and sets the equipment back on the conveyor belt. The employee next to her listens to the music for three seconds to verify the equipment works properly. The next employee then affixes a quality seal. Referring to the scenario above, which of the following BEST describes the layout in place at this firm?

Assembly line layout

Which of the following defines just-in-time production?

Bringing together all materials at the precise time they are required at each production stage

LG wants to improve the quality of its machines. To find out what it could be doing better, it has taken apart and analyzed a Whirlpool washing machine for durability, efficiency, and ease of use. Referring to the scenario above, what has LG used to improve its own products?

Competitive product analysis

In which of the following scenarios would the manager need to use a Gantt chart?

Edith is in charge of building a professional theatre production set and needs to determine which tasks must be done, by when, and which tasks can be overlapped.

Which of the following describes supply chain management?

Evaluating and improving the overall stream of goods and processes among multiple companies that contribute to a finished product

At Super Sneakers' manufacturing facility, Wyatt compares the schedule he receives with the number of shoes that come off of each line for every shift that day. What is Wyatt in charge of?

Follow-up

Globally, U.S. manufacturing faces intense competition from other nations. A recent international survey of industrial executives ranks China as the most competitive manufacturing country, followed by .

Germany

Awareness of its impact on the local environment has led Coal Kickers Mining Company to pursue , which certifies improvements the business makes to reduce and manage the pollution it creates.

ISO 14000

What is the name for the certification program indicating that a factory, laboratory, or office has met the quality management standards set by the International Organization for Standardization?

ISO 9000

Which of the following is a TRUE statement about a lean production system?

It avoids inefficiencies, eliminates excess inventory, and facilitates continuous improvement.

Which of following describes materials management?

Keeping track of thousands of moving parts—planning, organizing, and controlling the flow of these parts

Which of the following illustrates a fixed-position layout?

Liam runs a carpet cleaning business where he goes from one location to the next cleaning carpets with the equipment he keeps in his van.

Which of the following best describes activities for producing standardized products for mass consumption?

Make-to-stock

is the systematic direction and control of the activities that transform resources into finished services and goods that create value for and provide benefits to customers.

Operations management

Which of the following describes a product layout?

Organizing production steps for a single product created in a fixed sequence and according to production requirements

For a large project, managers should use a to identify the sequence of activities, the time needed to perform the various activities, and the most time-consuming set of activities within the sequence.

PERT chart

Which of the following layouts is defined as the physical arrangement of production activities that groups equipment and people according to function?

Process layout

is the comparison of the output quantity of goods and services to the input quantity of resources.

Productivity

Which of the following best describes ISO 9000?

Program certifying that a factory, laboratory, or office has met the quality management standards of the International Organization for Standardization.

is the step in materials management where managers acquire the raw materials they need to produce goods, such as leather for sofas.

Purchasing

Which of the following terms in inventory control is the process of finding and choosing suppliers of services and materials?

Supplier selection

Which of the following is the BEST description of a low-contact system?

The level of customer contact in which the customer need not be part of the system to receive the service

Which of the following BEST describes process layout?

The physical arrangement of production activities that groups equipment and people according to function

What is the definition of supplier selection?

The process of finding and choosing suppliers of services and materials

Which of the following best describes the materials management activity of inventory control?

The process of receiving, storing, handling, and counting of all raw materials, partly finished goods, and finished goods

What is the purpose of a staff schedule?

To show upcoming work shifts for a firm's employees

Walmart first ships goods from a firm it has chosen in China to the United States. It then moves those goods in the United States from the port in San Francisco to its various distribution centers. Finally, it moves the goods from these distribution centers until it is needed by the various store locations.

Transportation

Which of the following is an example of a service operations activity?

Tutoring

Which of the following is an example of transportation?

Walmart moves goods from the port in San Francisco to its various distribution centers.

Which of the following is an example of warehousing?

Walmart stores products in its distribution center before sending them to local stores.

Walmart first ships goods from a firm it has chosen in China to the United States. It then moves those goods in the United States from the port in San Francisco to its various distribution centers. Finally, it moves the goods from these distribution centers when it is needed by the various store locations. Referring to the scenario above, which area of materials management involves the storage of goods in Walmart's distribution centers?

Warehousing

Which of the following describes operations capability?

When a company beats its competition through optimizing its flexibility in production capacity

Employees who come together from different areas of a firm to solve production problems as a way to increase the performance and consistency of products are part of .

a quality improvement team

Large companies such as Adidas bring parts and processes from multiple companies together to create a finished product for end consumers. Each step in this network adds value for the final customer, in what's known as .

a supply chain

Historically, was the dominant sector in the very early years of the United States.

agriculture

A major health insurance company finds that the biggest delay in paying claims comes from customers failing to submit receipts. After looking at the entire process, they've decided to overhaul the way claims are filed. Now customers snap a photo of receipts with their smartphones and send them directly to the insurance company. Referring to the scenario above, the insurance company has used to improve its service.

business process reengineering

The amount of product that a company can produce under normal conditions is its .

capacity

No matter where you go in the world, you can nearly always buy a Coke. It will have the same ingredients, same taste, and basically the same packaging. This quality of is one of the reasons it is such a popular product.

consistency

Two key dimensions of quality are performance and _______.

consistency

In the hospital's kitchen, each employee has certain tasks to be completed at specific times each day. Kitchen managers use a _______ to map out what each employee needs to do and when to do it.

detailed schedule

Hector runs a pool maintenance company, going from one house to the next, adding chemicals, cleaning the pools, and making small repairs. Hector relies on a(n) as part of his business model.

fixed-position layout

Burt's Bees makes natural, often organic, health and beauty products. Because these are tangible products, Burt's Bees is in the business of .

goods production

A(n) is an example of a high-contact system.

hair salon

Charity owns a hair salon that specializes in unusual cuts and color. Her business is considered a _______ because customers need to be present during the entire point of service.

high-contact system

In the automotive industry, parts are brought together from all over the world to create a final product. To reduce storage time, lessen warehouse space, and save money, many car manufacturers engage in .

just-in-time (JIT) production

Clothing, such as evening gowns, is available either off-the-shelf in department stores or custom-made at a designer or tailor shop. The designer's operations respond to one-of-a-kind gown requirements, including unique patterns, materials, sizes, and shapes, depending on the customers' characteristics.

make-to-order

Managers evaluate performance by comparing plans and projections with actual outcomes and results in a process known as _______.

operations control

Making shoelaces is a specific process that Nike needs as part of its shoes, but it can be done cheaper in Bangladesh where the cost of labor is significantly less than America. The action of moving shoelace production is known as .

outsourcing

A computer chip manufacturer will design its processors for , which refers to how well the processors do what they are expected to do, like achieve a certain number of operations per second without overheating.

performance

Operations, which is also known as , encompasses all the processes involved in making a good or service available for consumption.

production

Successful firms design their operations to support the company's business strategy. In other words, managers adjust to support the firms' target markets.

production operations

Performance and consistency are two key dimensions of .

quality

Employees who sort out any bad apples to ensure those of a small size or with too many bruises are sent off to make applesauce—instead of being sent to stores as fresh produce—are a key part of .

quality control

When everyone in a firm internalizes responsibility for their own job performance as a key contribution to the purpose of the larger organization, is present.

quality ownership

A supply chain is the flow of information, materials, and services that starts with and continues adding value through other stages in the network of firms until the product reaches the end customer.

raw-materials suppliers

The methods and technologies a company uses in the production of goods or services are called and can be divided into two categories: make-to-order and made-to-stock.

the operations process

When a theater offers midday, afternoon, and evening shows seven days a week, it creates utility; it adds customer value by making products available when consumers want them.

time

With , managers first look at the cost of poor quality and then begin to make changes along the entire operation to improve the final product or process for consumers.

total quality management

The purchase of a gaming system that satisfies a consumer's desire demonstrates .

utility

Bruce's Barbeque is looking at ways to reduce waste, both literally and figuratively, in their restaurant business. They're evaluating everything from customer receipts to how much electricity they use in a process called .

value-added analysis