Exam 21: Managing Small Business Operations

The cost of getting quality right may be more than a small business can bear.

Aaron operates a lemonade stand in the New York City's Central Park.His business is seasonal but within those seasons several other factor influence the demand for lemonade.Aaron is most likely to use _______________ to help him predict demand on a daily basis.

Kaoru Ishikawa contends that 95 percent of the typical company's quality problems can be solved by using "The Basic Six" quality tools.

Match the term with its definition.Some terms may not be used. a.ABC method b.Associative forecasting c.Cooperative purchasing organization d.Cycle counting e.Demand management strategies f.Economic order quantity g.Just-in-time inventory system h.Perpetual inventory system i.Physical inventory system j.Poka-yoke k.Statistical inventory control l.Two-bin inventory system -Operational strategies used to stimulate customer demand when it is normally low

Match the term with its definition.Some terms may not be used. a.ABC method b.Associative forecasting c.Cooperative purchasing organization d.Cycle counting e.Demand management strategies f.Economic order quantity g.Just-in-time inventory system h.Perpetual inventory system i.Physical inventory system j.Poka-yoke k.Statistical inventory control l.Two-bin inventory system -A method for counting different segments of the physical inventory at different times during the year

Technology can adequately replace the human touch when the needs of the customer involve large amounts of data.

Outsourcing non-competitive functions can free the entrepreneur to focus on his/her greatest strengths.

The quality of a finished product depends on the quality of the raw materials used to make it.

Match the term with its definition.Some terms may not be used. a.Continuous manufacturing b.Flexible manufacturing systems c.Job shops d.Lean production e.Make-or-buy decisions f.Operations g.Outsourcing h.Poka-yoke i.Project manufacturing j.Repetitive manufacturing k.Supply Chain Operations Reference model l.Synchronous manufacturing -A list of critical factors that provides a helpful starting place when assessing a supplier's performance

An approach that emphasizes efficiency through elimination of waste independent of other aspects of the process is called

Which of the following is an example of "quality"?

Bobbi Jo pulls one part from the production line every 15 minutes and measures its dimensions against the specifications.Bobbi Jo is using:

Match the term with its definition.Some terms may not be used. a.Acceptance sampling b.Attributes c.Bottleneck d.Constraint e.Inspection f.ISO 9000 g.Operations h.Operations management i.Poka-Yoke j.Quality k.Total quality management l.Variables -An all-encompassing management approach to providing high-quality products or services

Weighing bags of mulch during a production process is an example of an variable inspection.

Match the term with its definition.Some terms may not be used. a.Continuous manufacturing b.Flexible manufacturing systems c.Job shops d.Lean production e.Make-or-buy decisions f.Operations g.Outsourcing h.Poka-yoke i.Project manufacturing j.Repetitive manufacturing k.Supply Chain Operations Reference model l.Synchronous manufacturing -Manufacturing operations designed for short production runs of small quantities of items

The ABC method of inventory management is founded on the notion that

In March,chassis prep counts its inventory.In June,the cabinet shop does the same thing.In September,appliances counts its inventory.This inventory system is known as:

Match the term with its definition.Some terms may not be used. a.Continuous manufacturing b.Flexible manufacturing systems c.Job shops d.Lean production e.Make-or-buy decisions f.Operations g.Outsourcing h.Poka-yoke i.Project manufacturing j.Repetitive manufacturing k.Supply Chain Operations Reference model l.Synchronous manufacturing -An approach that recognizes the interdependence of assets and activities and manages them to optimize the entire firm's performance

For service firms,the customer has to arrive before production begins resulting in employee scheduling issues.

Which aspect is the most descriptive of a product operations as opposed to a service operations?