Question 1

The process of managing inventories to minimize both holding costs and potential stock-out costs is called inventory control.

Accepted Answer

A) True 
 B)False

Question 2

The type of utility on which production and operations management focuses is ____ utility.

Accepted Answer

A)  place 
B)  time 
C)  form 
D)  possession 
E)  need 
A)  place 
B)  time 
C)  form 
D)  possession 
E)  need

Question 3

When Nabisco introduces Oreos with half chocolate and half peanut butter cream in the middle, it is ____ its Oreos line.

Accepted Answer

A)  refining 
B)  implementing 
C)  extending 
D)  heavily advertising 
E)  applying 
A)  refining 
B)  implementing 
C)  extending 
D)  heavily advertising 
E)  applying

Question 4

____ is a disciplined approach that relies on statistical data and improved methods to eliminate defects from a firm's products and services.

Accepted Answer

A)  Six Sigma 
B)  Quality Magic 
C)  CAM 
D)  The Total Management Program 
E)  CAD 
A)  Six Sigma 
B)  Quality Magic 
C)  CAM 
D)  The Total Management Program 
E)  CAD

Question 5

The major resource or resources that comprise the major input for a conversion process is often referred to as the focus.

Accepted Answer

A) True 
 B)False

Question 6

In deciding on a product line, managers should balance ____ and product requirements.

Accepted Answer

A)  convenience goods 
B)  specialty goods 
C)  customer preferences 
D)  demographics 
E)  last year's sales 
A)  convenience goods 
B)  specialty goods 
C)  customer preferences 
D)  demographics 
E)  last year's sales

Question 7

A common planning horizon for operational plans is one year.

Accepted Answer

A) True 
 B)False

Question 8

What are some of the primary benefits of lean manufacturing?

Accepted Answer

Lean manufacturing, also known as lean p

Question 9

Ford produces a wide variety of vehicles for individuals, businesses, manufacturers, and even schools. It also operates its own financing division, Ford Motor Acceptance Corp. It seems as if Ford

Accepted Answer

A)  focuses on financial resources. 
B)  has a small magnitude. 
C)  has few production processes. 
D)  has many production processes. 
E)  is a service business. 
A)  focuses on financial resources. 
B)  has a small magnitude. 
C)  has few production processes. 
D)  has many production processes. 
E)  is a service business.

Question 10

A set of statistical techniques used to sample both work in progress and finished products is called

Accepted Answer

A)  statistical quality control. 
B)  statistical process control. 
C)  quality circles. 
D)  inspection circles. 
E)  avoidance circles. 
A)  statistical quality control. 
B)  statistical process control. 
C)  quality circles. 
D)  inspection circles. 
E)  avoidance circles.

Question 11

Sneider, an exercise equipment manufacturer with multiple facilities, has a system that not only controls inventory but also monitors quality, sales, and the inventory of suppliers. This is a(n) ____ system.

Accepted Answer

A)  ERP 
B)  just-in-time inventory 
C)  MRP 
D)  just-in-time 
E)  CAD 
A)  ERP 
B)  just-in-time inventory 
C)  MRP 
D)  just-in-time 
E)  CAD

Question 12

The objective of purchasing is to ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost.

Accepted Answer

A) True 
 B)False

Question 13

The first step in applying PERT is to

Accepted Answer

A)  estimate the time required for each activity and mark it on the corresponding arrow. 
B)  identify all of the major activities involved in the project. 
C)  arrange the events in a sequence. 
D)  use arrows, representing activities, to connect events that must occur in sequence. 
E)  identify the critical path. 
A)  estimate the time required for each activity and mark it on the corresponding arrow. 
B)  identify all of the major activities involved in the project. 
C)  arrange the events in a sequence. 
D)  use arrows, representing activities, to connect events that must occur in sequence. 
E)  identify the critical path.

Question 14

Jasper Electronics, Inc.
Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company―and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI.
-Refer to Jasper Electronics, Inc. The plant layout at Jasper Electronics is mostly likely a

Accepted Answer

A)  fixed position layout. 
B)  process layout. 
C)  product layout. 
D)  circular layout. 
E)  capacity layout. 
A)  fixed position layout. 
B)  process layout. 
C)  product layout. 
D)  circular layout. 
E)  capacity layout.

Question 15

The number of customers that an Outback Steakhouse can serve at one time is the restaurant's

Accepted Answer

A)  capacity. 
B)  product line. 
C)  scope. 
D)  size. 
E)  service refinement. 
A)  capacity. 
B)  product line. 
C)  scope. 
D)  size. 
E)  service refinement.

Question 16

Productivity is a measure of output per unit of time per worker.

Accepted Answer

A) True 
 B)False

Question 17

How do routing and timing affect the scheduling process for a furniture manufacturer like Drexel-Heritage?

Accepted Answer

Routing and timing play a crucial role i

Question 18

An auto repair shop is an example of a fixed-position layout.

Accepted Answer

A) True 
 B)False

Question 19

What is the primary difference between ISO 9000 and ISO 14000?

Accepted Answer

A)  More organizations have adopted ISO 14000. 
B)  ISO 9000 is more focused on employee compensation. 
C)  ISO 14000 involves environmental concerns. 
D)  ISO 9000 is used only in Europe; ISO 14000 is used worldwide. 
E)  ISO 14000 is used for service businesses instead of manufacturers. 
A)  More organizations have adopted ISO 14000. 
B)  ISO 9000 is more focused on employee compensation. 
C)  ISO 14000 involves environmental concerns. 
D)  ISO 9000 is used only in Europe; ISO 14000 is used worldwide. 
E)  ISO 14000 is used for service businesses instead of manufacturers.

Question 20

An FMS combines computer-related software and hardware into the service sector organizations.

Accepted Answer

A) True 
 B)False

Exam 8: Producing Quality Goods and Services

The process of managing inventories to minimize both holding costs and potential stock-out costs is called inventory control.

The type of utility on which production and operations management focuses is ____ utility.

When Nabisco introduces Oreos with half chocolate and half peanut butter cream in the middle, it is ____ its Oreos line.

____ is a disciplined approach that relies on statistical data and improved methods to eliminate defects from a firm's products and services.

The major resource or resources that comprise the major input for a conversion process is often referred to as the focus.

In deciding on a product line, managers should balance ____ and product requirements.

A common planning horizon for operational plans is one year.

What are some of the primary benefits of lean manufacturing?

Ford produces a wide variety of vehicles for individuals, businesses, manufacturers, and even schools. It also operates its own financing division, Ford Motor Acceptance Corp. It seems as if Ford

A set of statistical techniques used to sample both work in progress and finished products is called

Sneider, an exercise equipment manufacturer with multiple facilities, has a system that not only controls inventory but also monitors quality, sales, and the inventory of suppliers. This is a(n) ____ system.

The objective of purchasing is to ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost.

The first step in applying PERT is to

The number of customers that an Outback Steakhouse can serve at one time is the restaurant's

Productivity is a measure of output per unit of time per worker.

How do routing and timing affect the scheduling process for a furniture manufacturer like Drexel-Heritage?

An auto repair shop is an example of a fixed-position layout.

What is the primary difference between ISO 9000 and ISO 14000?

An FMS combines computer-related software and hardware into the service sector organizations.

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

A: Exploring Global Business

B: Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Wholesaling, Retailing, and Physical Distribution

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

Mastering Financial Management

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

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