Question 1

Firms that pay attention to operating details are stronger than those that empower their customers for quality improvement.

Accepted Answer

A) True 
 B)False

Question 2

Match the term with its definition. Some terms may not be used.
-A form of manufacturing with output that more closely resembles a product stream than individual products

Accepted Answer

A) Continuous manufacturing 
B) Coop 
C) Flexible manufacturing systems 
D) Job shops 
E) Lean production
F)Make-or-buy decisions
G)Operations
H)Outsourcing
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing 
A) Continuous manufacturing 
B) Coop 
C) Flexible manufacturing systems 
D) Job shops 
E) Lean production
F)Make-or-buy decisions
G)Operations
H)Outsourcing
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing

Question 3

A category "C" item in the ABC method of inventory management for a college bookstore would be

Accepted Answer

A)  pens. 
B)  magazines. 
C)  shirts. 
D)  textbooks. 
A)  pens. 
B)  magazines. 
C)  shirts. 
D)  textbooks.

Question 4

Match the term with its definition. Some terms may not be used.
-A proactive approach to quality management that seeks to mistake-proof a firm's operations

Accepted Answer

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 
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

Question 5

Operations refers to the processes used to create and deliver a product or service.

Accepted Answer

A) True 
 B)False

Question 6

Shoichiro Toyoda, former president of Toyota Motors, built on Ford's concepts and focused on the need to eliminate waste from the production system. He followed a(n) _____ approach.

Accepted Answer

A)  assembly line 
B)  distribution 
C)  lean production 
D)  synchronous production 
A)  assembly line 
B)  distribution 
C)  lean production 
D)  synchronous production

Question 7

Poka-yoke is a proactive approach that seeks to mistake-proof a firm's operations.

Accepted Answer

A) True 
 B)False

Question 8

ISO 9000

Accepted Answer

A)  is more important for large global firms than small firms with domestic markets. 
B)  measures how companies have improved their environmental footprint. 
C)  is challenging to earn but is rewarding from a marketing viewpoint. 
D)  reflects international excellence in quality management standards. 
A)  is more important for large global firms than small firms with domestic markets. 
B)  measures how companies have improved their environmental footprint. 
C)  is challenging to earn but is rewarding from a marketing viewpoint. 
D)  reflects international excellence in quality management standards.

Question 9

Buying components is preferable to making them when it is necessary to protect a secret design for a seasonal item.

Accepted Answer

A) True 
 B)False

Question 10

Adoption of the just-in-time inventory system requires

Accepted Answer

A)  the elimination of raw materials wherever possible. 
B)  an emphasis on work in progress. 
C)  a reduction in the firm's finished goods. 
D)  close cooperation with suppliers. 
A)  the elimination of raw materials wherever possible. 
B)  an emphasis on work in progress. 
C)  a reduction in the firm's finished goods. 
D)  close cooperation with suppliers.

Question 11

A small business owner decides that her firm has a good customer focus and adequate tools and techniques needed for a TQM program. To be assured of a strong quality program, she must also have the proper

Accepted Answer

A)  benchmarking. 
B)  marketing research. 
C)  organizational culture. 
D)  statistical quality control. 
A)  benchmarking. 
B)  marketing research. 
C)  organizational culture. 
D)  statistical quality control.

Question 12

Quality is best defined as the totality of features and characteristics of a product or service that impacts the firm's ability to satisfy stated or implied needs.

Accepted Answer

A) True 
 B)False

Question 13

An example of associative forecasting is when a concert promoter predicts attendance based on the trend of attendance of the same event in the same location in previous years.

Accepted Answer

A) True 
 B)False

Question 14

With acceptance sampling, having a smaller sample to work with reduces sampling error.

Accepted Answer

A) True 
 B)False

Question 15

The cost of getting quality right is often more than a small business can bear.

Accepted Answer

A) True 
 B)False

Question 16

Measuring quality in a service business is easier than measuring quality in a production business. All you have to do is ask the customer.

Accepted Answer

A) True 
 B)False

Question 17

Match the term with its definition. Some terms may not be used.
-A method of controlling inventory that uses a targeted service level, allowing statistical determination of the appropriate amount of inventory to carry

Accepted Answer

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) 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

Question 18

Match the term with its definition. Some terms may not be used.
-An index that determines the quantity to purchase in order to minimize total inventory costs

Accepted Answer

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) 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

Question 19

Match the term with its definition. Some terms may not be used.
-Manufacturing operations designed for short production runs of small quantities of items

Accepted Answer

A) Continuous manufacturing 
B) Coop 
C) Flexible manufacturing systems 
D) Job shops 
E) Lean production
F)Make-or-buy decisions
G)Operations
H)Outsourcing
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing 
A) Continuous manufacturing 
B) Coop 
C) Flexible manufacturing systems 
D) Job shops 
E) Lean production
F)Make-or-buy decisions
G)Operations
H)Outsourcing
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing

Question 20

Unless a firm is planning to market products in Europe or supply components to U.S. automakers, getting ISO 9000 certification is not recommended.

Accepted Answer

A) True 
 B)False

Exam 21: Managing Small Business Operations

Firms that pay attention to operating details are stronger than those that empower their customers for quality improvement.

Match the term with its definition. Some terms may not be used. -A form of manufacturing with output that more closely resembles a product stream than individual products

A category "C" item in the ABC method of inventory management for a college bookstore would be

Match the term with its definition. Some terms may not be used. -A proactive approach to quality management that seeks to mistake-proof a firm's operations

Operations refers to the processes used to create and deliver a product or service.

Shoichiro Toyoda, former president of Toyota Motors, built on Ford's concepts and focused on the need to eliminate waste from the production system. He followed a(n) _____ approach.

Poka-yoke is a proactive approach that seeks to mistake-proof a firm's operations.

ISO 9000

Buying components is preferable to making them when it is necessary to protect a secret design for a seasonal item.

Adoption of the just-in-time inventory system requires

A small business owner decides that her firm has a good customer focus and adequate tools and techniques needed for a TQM program. To be assured of a strong quality program, she must also have the proper

Quality is best defined as the totality of features and characteristics of a product or service that impacts the firm's ability to satisfy stated or implied needs.

An example of associative forecasting is when a concert promoter predicts attendance based on the trend of attendance of the same event in the same location in previous years.

With acceptance sampling, having a smaller sample to work with reduces sampling error.

The cost of getting quality right is often more than a small business can bear.

Measuring quality in a service business is easier than measuring quality in a production business. All you have to do is ask the customer.

Match the term with its definition. Some terms may not be used. -A method of controlling inventory that uses a targeted service level, allowing statistical determination of the appropriate amount of inventory to carry

Match the term with its definition. Some terms may not be used. -An index that determines the quantity to purchase in order to minimize total inventory costs

Match the term with its definition. Some terms may not be used. -Manufacturing operations designed for short production runs of small quantities of items

Unless a firm is planning to market products in Europe or supply components to U.S. automakers, getting ISO 9000 certification is not recommended.

The Entrepreneurial Lifethe Entrepreneurial Life

Integrity, Ethics, and Social Entrepreneurship

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Businesses

Professional Management and the Small Business

Managing Human Resources

Managing the Firms Assets

Managing Risk

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