Ch10 Production And Operations Management Verified Test Bank - Contemporary Business 18e | Test Bank by Louis E. Boone by Louis E. Boone. DOCX document preview.
Package Title: Chapter 10, Testbank
Course Title: Boone, 18e
Chapter Number: 10
Question type: Multiple Choice
1) A(n) _____ groups machinery and equipment according to their functions.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
2) The third component of mass production, _____, involves producing uniform, interchangeable goods and parts.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
3) ______ is the function requiring production and operations managers to balance the need to keep stock on hand to meet demand against the costs of carrying inventory.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
4) Many companies maintain _____ systems to continually monitor the amounts and locations of their merchandise.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
5) A(n) _____, one of the oldest analytical methods for help with scheduling, tracks projected and actual work progress over time.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
6) ______ is a voluntary program administered by the U.S. Green Building Council aimed at promoting sustainable construction processes.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
7) The organization whose mission is to develop and promote international standards for business, government, and society to facilitate global trade is _____.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.7
Section Reference 1: Determine the importance of quality.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
8) _____ is a production system in which computers help workers design products, control machines, and handle materials.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
9) The sequence of operations that require the longest time for completion is known as the _____.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
10) An inventory system that seeks to eliminate anything that does not add value in operations activities by providing the right part at the right place at just the right time is called a(n) _____ system.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
11) A complex project might require a(n) _____, which seeks to minimize delays by coordinating all aspects of the production process.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
12) Companies create _____, or want-satisfying power, by converting raw materials and other inputs into finished goods and services.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.1
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
13) A(n) _____ is a programmable machine capable of performing a variety of jobs that require manipulation of materials and tools.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
14) The _____ is a fundamental step in a company’s production plan.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
15) A(n) _____ transforms raw materials into finished products.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.2
Section Reference 1: Identify and describe the production processes.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
16) _____ is a software-based production planning system that ensures a company has all the parts and materials it needs to produce its output at the right time and place, and in the right amounts.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
17) _____ determines the sequence of work throughout the facility and specifies who will perform each aspect of work at what location.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
18) The process of determining how well other companies perform business functions or tasks is called _____.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.7
Section Reference 1: Determine the importance of quality.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
19) The logical extension of specialization, mechanization, and standardization led to the development of the _____.
a) process layout
b) LEED certification
c) Gantt chart
d) PERT chart
e) Inventory control
f) ISO
g) critical path
h) Computer-integrated manufacturing
i) Utility
j) perpetual inventory
k) Materials requirement planning
l) standardization
m) Routing
n) assembly line
o) robot
p) just-in-time
q) benchmarking
r) synthetic production system
s) make, buy, or lease decision
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
Question Type: Essay
20) Differentiate between mass production, flexible production, and customer-driven production.
Solution: Mass production is a system for manufacturing products in large amounts through effective combinations of employees with specialized skills, mechanization, and standardization. Mass production makes outputs available in large quantities at lower prices than individually crafted items would cost. While mass production efficiently creates large batches of similar items, flexible production can cost-effectively produce smaller batches. Flexible production generally involves using information technology to share the details of customer orders, technology to fulfill the orders, as well as skilled people to carry out whatever tasks are needed. Customer-driven production systems evaluate customer demands in order to link what a manufacturer makes with what customers want to buy. One method is to establish computer links between factories and retailers' systems, using data about sales as the basis for creating short-term forecasts and designing production schedules to meet those forecasts. Another is to make products specifically to order.
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
21) Compare analytic production systems to synthetic production systems and provide an example of each.
Solution: An analytic production system reduces a raw material to its component parts in order to extract one or more marketable products. Petroleum refining breaks down crude oil into several marketable products, including gasoline, heating oil, and aviation fuel. When corn is processed, the resulting marketable food products include animal feed and corn sweetener.
A synthetic production system is the reverse of an analytic system. It combines a number of raw materials or parts or transforms raw materials to produce finished products. Canon’s assembly line produces a camera by assembling various parts such as a shutter or a lens cap.
Difficulty: Medium
Learning Objective 1: 10.2
Section Reference 1: Identify and describe the production processes.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
22) Outline continuous production processes and intermittent production processes and provide an example of each.
Solution: A continuous production process generates finished products over a lengthy period of time. The steel industry provides a classic example. Its blast furnaces never completely shut down except for malfunctions. Petroleum refineries, chemical plants, and nuclear power facilities also practice continuous production. A shutdown can damage sensitive equipment, with extremely costly results. An intermittent production process generates products in short production runs, shutting down machines frequently or changing their configurations to produce different products. Most services result from intermittent production systems. For instance, accountants, plumbers, and dentists traditionally have not attempted to standardize their services because each service provider confronts different problems that require individual approaches.
Difficulty: Medium
Learning Objective 1: 10.2
Section Reference 1: Identify and describe the production processes.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
23) Offer two examples of uses for robots.
Solution: Answers will vary but may include the use of robots in dangerous situations such as police using robots to remotely dispose of suspected bombs. They are also added to production lines where robots pick up something and place it in another location.
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
24) Briefly describe a flexible manufacturing system.
Solution: A flexible manufacturing system is a production facility that workers can quickly modify to manufacture different products. The typical system consists of computer-controlled machining centers to produce metal parts, robots to handle the parts, and remote-controlled carts to deliver materials. All components are linked by electronic controls that dictate activities at each stage of the manufacturing sequence, even automatically replacing broken or worn-out drill bits and other implements.Flexible manufacturing systems have been enhanced by powerful new software that allows machine tools to be reprogrammed while they are running.
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
25) Describe how IKEA is "forest positive."
Solution: IKEA is committed to sustainable forestry techniques, which translates to not taking anything from the world’s precious rainforests. IKEA’s “forest positive” commitment promotes the adoption of more sustainable forestry methods across an entire industry—and not just in the forests used to make its products. IKEA is also working to end deforestation and illegal logging practices around the world.
In a partnership with the World Wildlife Federation, IKEA has set a goal of 100% recycled wood in its supply chain or wood that has been certified by the Forest Stewardship Council (FSC) within five years. So far about 50% of the wood it uses meets either criterion. FSC is a nonprofit group that promotes responsible forestry. IKEA currently works with 21 foresters to increase the amount of certified wood in its supply chain and to ensure that all wood purchased is in compliance with its own forestry standards. In total, through its partnership projects, IKEA will contribute to the FSC certification of 4.5 billion acres of forest.
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
26) Explain why flexible manufacturing is ideal for pharmaceutical companies.
Solution: Pharmaceutical companies are using flexible manufacturing for multi-product manufacturing because of the need for rapid deployment of products worldwide (for example, threats of serious disease outbreaks). In addition, an increasing number of products and formulations dictates the need for manufacturing flexibility. Overall, the need to reduce costs, increase capacity, and reduce the time needed to develop pharmaceuticals has increased the industry’s attention toward a flexible manufacturing process.
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
27) How has the economic downturn caused the revitalization of the auto industry in Detroit?
Solution: Truehe U.S. auto industry has enjoyed six straight years of increased sales. Michigan has recovered 40% of the jobs it lost during the recent recession, and today the Big Three, along with a host of foreign competitors, have built factories in or nearby Detroit. While the auto industry dominates the Motor City as a whole, Detroit now employs more people than it did since 2008; and a variety of other manufacturing companies like FANUC America, an industrial robot maker, and Shinola, a high-end watch company, have contributed to the city’s resurgence.
A few other factors have also contributed to Detroit’s revitalization, which include rising wages in China, an ample supply of energy, and the need to respond to customer demand by producing goods locally. In addition, Detroit boasts the second largest number of engineers in the country, second only to Silicon Valley in California. In less than a decade, Detroit has seen a rebound of more than 30% in industrial jobs, and in a recent year, close to a 10% expansion. Improved job prospects and lower unemployment levels have provided additional torque to the ever-important automobile industry.
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
28) Identify the factors involved in the facility location decision.
Solution: No matter what type of industry a company is in, a production and operations manager’s facility location decision must consider the following factors:
1. proximity to suppliers, warehouses, and service operations
2. insurance and taxes
3. availability of such employee needs as housing, schools, hospitals, mass transportation, day care, shopping, and recreational facilities
4. size, skills, and costs of the labor force
5. ample space for current and future growth needs of the company
6. distance to market for goods
7. receptiveness of the community
8. economical transportation for materials and supplies, as well as for finished goods
9. climate and environment that matches the industry’s needs and employees’ lifestyle
10. amount and cost of energy services
11. government incentives
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
29) Define physical variables that affect facility locations and provide an example.
Solution: Physical variables involve such issues as weather, water supplies, available energy, and options for disposing of hazardous waste. A company that wants to locate near a community must prepare an environmental impact study that analyzes how a proposed plant would affect the quality of life in the surrounding area. Regulatory agencies typically require these studies to cover topics such as the impact on transportation facilities; energy requirements; water and sewage treatment needs; natural plant life and wildlife; and water, air, and noise pollution. Volvo prepared an environmental impact study that estimates an initial number of 2,000 direct jobs, and long term, more than 8,000 new jobs.
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
30) What are the major tasks of production and operations managers? Explain.
Solution: Production and operations managers oversee the work of people and technology to convert inputs — raw materials and other resources— into finished goods and services. They perform four major tasks. First, they plan the overall production process. Next, they determine the best layout for the company’s production facilities and implement the production plan. Finally, they control the production process to maintain the highest possible quality. Part of the control process involves continuous evaluation of results. If problems occur, managers return to the first step and adjust the process.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
31) Describe the customer-oriented layout and provide an example.
Solution: Service organizations also must decide on appropriate layouts for their production processes. A service company should arrange its facilities to enhance the interactions between customers and its services—also called customer-oriented layout. If you think of patients as inputs, a hospital implements a form of the process layout. Banks, libraries, dental offices, and hair salons also use process layouts. Sometimes the circumstances surrounding a service require a fixed-position layout. For instance, doctors, nurses, and medical devices are brought to patients in a hospital emergency room.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
32) Describe the factors a company should consider when deciding whether to make, buy, or lease components.
Solution: One of the fundamental issues facing every producer is the make, buy, or lease decision — choosing whether to manufacture a needed product or component in-house, purchase it from an outside supplier, or lease it. Some of the factors to consider include the costs of leasing or purchasing parts from vendors compared with the costs of producing them in-house. The decision sometimes hinges on the availability of outside suppliers that can dependably meet a company’s standards for quality and quantity. The need for confidentiality sometimes affects the decision, as does the short- or long-term duration of the company’s needs for supplies.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
33) Once a company decides what raw materials and component parts to purchase, what factors do production managers use for comparison in choosing the best supplier?
Solution: Production managers compare the quality, prices, dependability of delivery and services offered by competing suppliers. Different vendors may offer virtually identical quality levels and prices, so choices often depend on factors such as the company’s previous experience with each supplier, speed of delivery, warranties on purchases, and other services. Long-term contracts may also be a factor.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
34) Describe perpetual inventory control systems.
Solution: Many companies maintain perpetual inventory systems to continuously monitor the amounts and locations of their stock. Such inventory control systems typically rely on computers, and many automatically generate orders at the appropriate times. Many companies link their scanning devices to perpetual inventory systems that reorder needed merchandise. As the system records a shopper’s purchase, it reduces the inventory count. Once inventory on hand drops to a predetermined level, the system automatically reorders the merchandise.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
35) Explain just-in-time (JIT) inventory systems.
Solution: A just-in-time (JIT) system implements a broad management philosophy that reaches beyond the narrow activity of inventory control to influence the entire system of production and operations management. A JIT system seeks to eliminate anything that does not add value in operations activities by providing the right part at the right place at just the right time—right before it is needed in production. Production using JIT shifts much of the responsibility for carrying inventory to vendors, which operate on forecasts and keep stock on hand to respond to manufacturers’ needs.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
36) Describe how 3D printing has changed how aircraft manufacturers produce their airplanes.
Solution: 3D printing is the use of ultraviolet lights to etch plastic layers into different shapes by laying down successive layers of material to form a 3-dimensional solid object. Aerospace giant Boeing is using 3D-printed, non-metallic parts in the production of its airplanes. With 300 different parts on 10 different aircraft production programs, over 20,000 additive manufactured components are parts of planes that have been delivered to customers. Boeing officials are excited about the huge potential of the lightweight 3D printed microlattice material to be used for wall and floor panels and other non-mechanical parts. In addition to efficiencies realized with producing parts in house, Boeing retains greater control with quicker turnaround times, less stockpiling, and less time waiting for parts from outside suppliers.
Competitor Airbus has used over 1,000 aircraft parts—also 3D-printed from plastic—which allows for reduced production time and improved on-schedule delivery of its planes. Rather than milling from metal, the parts are forged from resin certified to an Airbus specification. Both companies have turned to Stratasys, a company in Minneapolis, which manufactures orthodontic appliances, human prosthetics, automobile parts, and film props out of resin. In addition to better on-time parts delivery and streamlined supply chains, the 3D printing technology helps reduce weight, which is a big issue when it comes to fuel efficiency and reduced CO2 emissions.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
37) Briefly describe PERT and how it can be used.
Solution: A complex project might require a PERT (program evaluation and review technique) chart, which seeks to minimize delays by coordinating all aspects of the production process. First developed for the military, PERT has been modified for industry. In practice, a PERT network may consist of thousands of events and cover months of time. Complex computer programs help production managers develop such a network and find the critical path among the maze of events and activities. The construction of a huge office building requires complex production planning of this nature.
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
38) Summarize the responsibilities of a production manager.
Solution: Industrial production managers typically hire, train, and evaluate workers and also decide the best utilization of workers to meet production goals and schedules. Production managers focus on staying on schedule and being within budget. They often write reports and analyze data from previous production activities. Production managers streamline the production process, fix existing bottlenecks, and learn from past production slowdowns and challenges. With growth in mind, they are also charged with evaluating and analyzing the need for additional capital and equipment.
Performance and safety are top priorities in many manufacturing settings, and production managers are responsible for making sure that employees adhere to safety requirements. In addition, to meet expected quality levels and metrics, production managers monitor quality control closely, while working with and training workers in quality control strategies. Quality control training programs help ensure that product defects can be identified and fixed quickly. Production managers also interface with managers from other departments, including sales, warehousing, research and development, purchasing, and scheduling.
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
39) Provide an example of another college with whom your college might benchmark itself.
Solution: Answers will vary. Ask students to identify what factors they considered when determining their benchmarking selection(s).
Difficulty: Medium
Learning Objective 1: 10.7
Section Reference 1: Determine the importance of quality.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
40) Explain quality control and provide an example.
Solution: Quality control involves measuring output against established quality standards. Companies need such checks to spot defective products and to avoid delivering inferior shipments to customers. Standards should be set high enough to meet customer expectations. A 90 or 95 percent success rate might seem to be a good number, but consider what your phone service or ATM network would be like if it worked only 90 percent of the time. You would feel frustrated and inconvenienced, and would probably switch to another bank or service provider.
Manufacturing companies can monitor quality levels through visual inspections, electronic sensors, robots, and X-rays.
Difficulty: Medium
Learning Objective 1: 10.7
Section Reference 1: Determine the importance of quality.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
Question type: Multiple Choice
41) Which of the following refers to the want-satisfying power of a good or service?
a) Inputs
b) Conversion process
c) JIT System
d) Utility
Difficulty: Easy
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
42) Which of the following describes use of resources, such as workers and machinery, to convert materials into finished goods and services?
a) Inputs
b) Production
c) JIT System
d) Utility
Difficulty: Easy
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
43) Which of the following oversee the production process by managing people and machinery in converting materials and resources into finished goods and services?
a) Inputs
b) Production and operations management
c) JIT System
d) Utility
Difficulty: Easy
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
44) Bake-All, a bakery customizes cakes for clients as well as accepts budgets within which they should be made. This is an example of a _____ production system.
a) mass
b) flexible
c) customer-driven
d) process-oriented
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Application
45) Which of the following are combined to result in mass production?
a) Mechanization, specialized labor, and robots
b) Standardization, job-order production, and specialized labor
c) Analytic systems, synthetic systems, and continuous processes
d) Mechanization, specialized skills, and standardization
Difficulty: Easy
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
46) Sandra, the production manager at ABC Manufacturing, divides employee work into simple components so each employee can concentrate on performing one task. Sandra is involved in _____.
a) mechanization
b) specialization
c) quality management
d) standardization
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
47) Which of the following statements is NOT true of standardization?
a) Standardization is used as the basis for custom-made machinery.
b) The availability of standardized parts makes possible the replacement of defective and worn-out components.
c) Standardized parts can reduce the cost of repairs.
d) Standardized parts can be produced in quantity and assembled later.
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
48) Which of the following is a disadvantage of mass production?
a) Workers perform specialized tasks.
b) Managers are seldom able to create conditions for high productivity.
c) It is inefficient for producing small batches of different items.
d) It moves the product along a conveyor belt past a number of workstations.
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
49) Kroeger use scanners not only for faster check-out times, but as a tool to obtain merchandise sales data and create short-term forecasts. This system is known as _____ production.
a) product-focused
b) quality control
c) data marketing
d) customer-driven
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Application
50) A luxury car manufacturer produces cars in large numbers but allows clients to pick their choice of materials for the upholstery and paneling and the exterior paint work. Which of the following best describes this process?
a) Flexible production
b) Mass production
c) Customer-driven production
d) Computer-aided manufacturing (CAM)
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Application
51) Which of these describes a production system that reduces a raw material to its component parts in order to extract one or more marketable products?
a) Analytic
b) Flexible
c) Intermittent
d) Synthetic
Difficulty: Easy
Learning Objective 1: 10.2
Section Reference 1: Identify and describe the production processes.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
52) A production system that combines a number of raw materials or parts into a finished product is known as a(n) _____ production system.
a) extractive
b) intermittent
c) unified
d) synthetic
Difficulty: Easy
Learning Objective 1: 10.2
Section Reference 1: Identify and describe the production processes.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
53) Which production system is Smith-Kline Beecham using when it combines calcium carbonate, simethicone, corn syrup, and other ingredients to make Tums Plus?
a) Analytic
b) Synthetic
c) Extractive
d) Service
Difficulty: Medium
Learning Objective 1: 10.2
Section Reference 1: Identify and describe the production processes.
Standard 1: AACSB || Analytic
Bloomcode: Application
54) A production process in which long production runs generate finished products over a period of time is called _______ production process.
a) Continuous
b) Intermittent
c) Customized
d) Periodic
Difficulty: Easy
Learning Objective 1: 10.2
Section Reference 1: Identify and describe the production processes.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
55) A steel company whose blast furnaces never completely shut down except for malfunctions is an example of a(n) _____ production system.
a) intermittent
b) synthetic
c) just-in-time
d) continuous
Difficulty: Medium
Learning Objective 1: 10.2
Section Reference 1: Identify and describe the production processes.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
56) AAA Accountants do not standardize their service to customers because each customer has different needs. This is an example of _____ production.
a) intermittent
b) continuous
c) synthetic
d) job-order
Difficulty: Medium
Learning Objective 1: 10.2
Section Reference 1: Identify and describe the production processes.
Standard 1: AACSB || Analytic
Bloomcode: Application
57) _____ is an example of synthetic production.
a) The manufacture of formula for infants
b) The preparation of a herbal extract
c) The extraction of copper from its ore
d) The distillation of wood to produce turpentine
Difficulty: Medium
Learning Objective 1: 10.2
Section Reference 1: Identify and describe the production processes.
Standard 1: AACSB || Analytic
Bloomcode: Application
58) In which of the following functions would a field robot be useful?
a) Packaging milk cartons into boxes
b) Tightening screws on electric appliances
c) Transporting packaged goods from the assembly line to the storage area
d) Handling radioactive material in a nuclear power plant
Difficulty: Medium
Learning Objective: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Application
59) ______ is a voluntary certification program administered by the U.S. Green Building Council, aimed at promoting the most sustainable construction processes available.
a) JIT
b) LEED
c) ISO
d) CIM
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
60) A company that manufactures home appliances would like its customers to know that it uses sustainable processes. Which of the following would ensure that?
a) Announcing that it follows Six Sigma methodology
b) A LEED (Leadership in Energy and Environmental Design) certification
c) An ISO (International Organization for Standardization) certification
d) Announcing that it follows industry benchmarks
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Application
61) Which of these is a reprogrammable machine that can repeat the same tasks numerous times without varying its movement?
a) Server
b) Robot
c) Tablet
d) Router
Difficulty: Easy
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
62) Which of the following statements is FALSE about robots?
a) The use of robots is only beneficial in manufacturing settings.
b) A variety of industries are now using robot technology.
c) Robots have freed people from boring, dangerous assignments.
d) Robots can move finished goods from one place to another.
Difficulty: Easy
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
63) Engineers at General Motor Company use computers to build new car models in the virtual world before they are ever built in automobile plants. These engineers are using _____.
a) flexible manufacturing systems
b) computer-aided manufacturing
c) computer-integrated manufacturing
d) computer-aided design
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Application
64) The process that enables manufacturers to use computers to analyze the steps a machine must take to produce a product or part is _____.
a) computer-aided manufacturing
b) program evaluation and review technique
c) computer-aided design
d) computer-integrated manufacturing
Difficulty: Easy
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
65) Akito’s company uses a computer to control its production process. The computer transmits signals to machines for performing the appropriate steps in the correct order. This is an example of _____.
a) computer-aided design
b) computer-aided manufacturing
c) flexible manufacturing
d) computer-integrated manufacturing
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Application
66) Better Bearing Company (BBC) produces 30 basic types of ball bearings. Its manufacturing system uses computer-controlled machining centers, robots, and remote-controlled carts to deliver materials. In addition, the system can be modified quickly to produce the different ball bearings. The manufacturing system that is described is a _____ system.
a) flexible manufacturing
b) synthetic manufacturing
c) static manufacturing
d) computer-aided design
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Application
67) Flexible Fixtures uses a computer system that controls the entire production function from designing products to handling raw materials. What kind of production system is Flexible Fixtures using?
a) Flexible manufacturing system
b) Computer-aided design
c) Computer-integrated manufacturing
d) Computer-aided manufacturing
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Application
68) Which of the following is an example of a human factor to be considered when choosing a location for a production facility?
a) Availability of transport alternatives
b) Community living conditions
c) Hazardous wastes
d) Water supply
Difficulty: Easy
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
69) Which of the following would probably be the most important consideration in determining where to locate a mill for Perfect Paper Company (PPC)?
a) Labor supply
b) Location of customers
c) Physical characteristics
d) Proximity to raw materials
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Application
70) In selecting a production facility location, labor supply would be most important to which of the following?
a) Steel manufacturer
b) Jewelry manufacturer
c) Paper mill
d) Software developer
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
71) Which type of company would be most interested in locating in an area close to its market?
a) Dry cleaners
b) Pharmaceutical companies
c) Automobile manufacturers
d) Shipbuilding companies
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
72) Abbey is the owner of Baker’s Dozen, a bakery with all perishable products. What will be her primary consideration regarding location?
a) Proximity to raw materials
b) Proximity to her market
c) Availability of transportation alternatives
d) Proximity to labor supply
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Application
73) In the context of location factors, computer chip manufacturers, such as AMD and Intel, must be primarily concerned with _____.
a) availability to energy
b) proximity to markets
c) community living conditions
d) available water supply
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Application
74) State and local governments may offer _____ to encourage businesses to locate in their area.
a) proximity to suppliers
b) tax incentives
c) proximity to raw materials
d) physical factors such as energy
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
75) What is the main reason some companies have set up offshore assembly plants?
a) Available marketing opportunities
b) Nearness to raw materials
c) In search of low wages
d) Inexpensive energy
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
76) Advanced Disposal wants to build a landfill outside Dallas. The company must conduct a(n) _____ study, which includes analyzing the effect the landfill might have on the water supply, air conditions, and wildlife.
a) market impact
b) consumer behavior
c) location feasibility
d) environmental impact
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Application
77) Yoshiko is planning to open a hotel. Which of the following factors should she consider while deciding a location for the hotel?
a) Proximity to raw materials
b) Labor supply
c) Proximity to markets
d) Availability of transportation alternatives
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Application
78) A manufacturer requires fragile raw material that takes time to be delivered by the supplier. Which of the following should the production manager of this facility ensure?
a) He or she has access to multiple suppliers.
b) The supplier maintains confidentiality.
c) The facility has a product layout.
d) The facility uses more people to handle the raw material.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Application
79) AJS catering services receives food orders for several events taking place within a week. Which of the following types of inventory system should it use to manage food”?
a) A perpetual inventory system
b) A vendor-managed inventory system
c) Production planning
d) A just-in-time (JIT) system
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Application
80) The manager of A-1 Thai, an upcoming restaurant, is looking for vendors that sell the tools required for the new kitchen. He has located suppliers that offer commercial-grade equipment at the same prices. Which of the following vendors is the restaurant’s manager most likely to select?
a) Freshology Restaurant Equipment, which is located overseas
b) Edison’s Equipment, which maintains a computerized inventory
c) O’Bree Restaurant Supplies, which has supplied the manager with equipment several times in the past
d) Grilledge Equipment, which is a new supplier in the market
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Application
81) Which of the following is not a primary task of production managers?
a) Determining what products to produce
b) Controlling the production process
c) Selecting the most appropriate layout
d) Planning the production process
Difficulty: Easy
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
82) Markell is a production manager. Which of the following tasks would Markell complete first?
a) Selecting the appropriate layout
b) Determining what products to produce
c) Planning the production process
d) Implementing the production process
Difficulty: Easy
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Application
83) Cassandra is a production manager and has decided that grouping machinery and equipment according to their functions works best at her company. What layout would be her company be using?
a) Fixed
b) Process
c) Customer oriented
d) Product
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Application
84) Hospital rooms are typically set up with a _____ layout.
a) product
b) process
c) fixed-position
d) customer-oriented
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
85) The production facility for a space shuttle would probably be organized according to a _____ layout.
a) fixed-position
b) product
c) process
d) customer-oriented
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
86) A company that produces a variety of nonstandard products in relatively small quantities would probably use a _____ layout.
a) customer-oriented
b) process
c) product
d) fixed-position
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
87) _______ would be appropriate for manufacturers of bulky, heavy, or fragile products.
a) Product layout
b) Customer-oriented layout
c) Fixed-position layout
d) Process layout
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
88) _______ would be appropriate for a manufacturer who needs to produce large numbers of a single product.
a) Product layout
b) Process layout
c) Fixed-position layout
d) Customer-oriented layout
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
89) A plant where plastic 2-liter bottles are manufactured probably uses a _____ layout.
a) customer-oriented
b) product
c) process
d) fixed-position
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Application
90) Banks most likely utilize a _____ layout.
a) product
b) fixed-position
c) process
d) customer-oriented
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
91) Implementing a production plan involves all of the following steps EXCEPT _____.
a) creating a feasible budget
b) controlling inventory
c) selecting the best suppliers for materials
d) deciding whether to make, buy or lease components
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
92) How can a company best protect itself against an interruption in the supply of parts?
a) Select suppliers through a competitive bidding process.
b) Use suppliers from the city where the company is located.
c) Maintain more than one supply source.
d) Transport the parts in its own transportation vehicles.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
93) Which of the following is LEAST likely be purchased on a long-term contractual basis?
a) Component parts for mass production
b) Office supplies purchased for a small office
c) Continuous supply products
d) Raw materials
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Application
94) When choosing an appropriate vendor, production managers consider all of the following EXCEPT _____.
a) services from competing companies
b) delivery dependability
c) warranties on purchases
d) dispatching
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
95) The supplier for Alpha Corporation has offered the company a 5 percent discount if it will order more units less frequently. If Alpha accepts the supplier’s offer, the cost of carrying inventory will _____ and the cost of running out of inventory will _____.
a) rise, stay the same
b) fall, decrease
c) rise, decrease
d) fall, stay the same
Difficulty: Easy
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Application
96) All of the following are expenses involved in storing inventory EXCEPT _____.
a) maintenance
b) acquisition
c) insurance
d) warehouse rent
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
97) For a just-in-time (JIT) investment system, which of the following situations would present a challenge?
a) Increase in the number of suppliers
b) Long-term relationships with suppliers
c) Vendor managed inventory
d) Sudden increase in demand
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
98) Marion uses a computer-based production planning system by which a company can ensure that it has needed parts and materials available at the right time and place and in the correct amounts. Marion uses
a) materials requirement planning.
b) just-in-time inventory system.
c) computer-aided manufacturing.
d) vendor-managed inventory.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Application
99) When Walmart vendors ship merchandise directly to stores instead of distribution centers, the company is utilizing _____.
a) perpetual inventory
b) inventory control
c) production control
d) vendor-managed inventory
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Application
100) Radcliff is planning to manufacture an energy drink, “Hobz drink.” Which of the following facility layout should he use?
a) Process
b) Product
c) Fixed-position
d) Customer-oriented
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Application
101) Rainer runs a company that creates centerpieces and decorative sculptures for events. After deciding on the materials and tools required to make each piece, what should Rainer’s next step be?
a) He should recruit workers and train them in the techniques required to produce the pieces.
b) He should make a timetable to specify how long work on each piece should last.
c) He should decide on a sequence of tasks and assign each of his workers a different aspect of the work.
d) He must predict problems in the production process and have contingency plans ready.
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Application
102) Emmanuel’s job involves setting up well-designed procedures for coordinating people, materials, and machinery for the production of mesh filters. Emmanuel is involved in _____.
a) inventory control
b) facility design
c) production control
d) manufacturing resource planning (MRP II)
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Application
103) Which phase of production control determines the amount of all resources needed to produce a certain amount of goods and services?
a) Production planning
b) Routing
c) Dispatching
d) Scheduling
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
104) Which of these is the phase of production control that determines the sequence of work and specifies where and by whom each aspect of production will be performed?
a) Follow-up
b) Routing
c) Scheduling
d) Dispatching
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
105) A Gantt chart is associated with which step in production control?
a) Routing
b) Scheduling
c) Dispatching
d) Follow-up
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
106) Garrett is a warehouse production manager and has been assigned a complex project that might result in lengthy delays. In order to coordinate all aspects of the production process, Garrett has created a(n) _____ chart.
a) ISO
b) FMS
c) Gantt
d) PERT
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Application
107) The critical path in a PERT chart represents the _____.
a) sequence of operations that involves outside suppliers
b) sequence of operations that requires the longest time for completion
c) areas of operations that require the least amount of technical support
d) areas of operations that have abundant and extra time
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
108) Part of Dabney’s job as a production supervisor is to instruct each department on what work to do and the time in which they have to complete their work assignments. This part of her job is known as _____.
a) routing
b) dispatching
c) scheduling
d) planning
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Application
109) The last step in production control is to spot problems in the production process and inform management of needed adjustments. This phase is called _____.
a) evaluation
b) dispatching
c) follow-up
d) process control
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
110) A company can monitor quality level output in all of the following ways EXCEPT _____.
a) customer surveys
b) electronic sensors
c) visual inspections
d) share of marketplace
Difficulty: Medium
Learning Objective 1: 10.7
Section Reference 1: Determine the importance of quality.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
111) Stephanie, a production manager, is developing timetables that specify how long each operation in the production process takes and when workers should perform it. Stephanie is engaged in the _____ step of production control.
a) planning
b) routing
c) scheduling
d) dispatching
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Application
112) When a company looks to an established, superlative product as a guide for its new product, it is _____.
a) implementing quality control
b) forecasting
c) implementing quality standards
d) benchmarking
Difficulty: Medium
Learning Objective 1: 10.7
Section Reference 1: Determine the importance of quality.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
113) The goal of _____ is for companies to eliminate virtually all defects in output, processes, and transactions.
a) European Economic Community
b) Six Sigma
c) WTO
d) NATO Business Alliance
Difficulty: Medium
Learning Objective 1: 10.7
Section Reference 1: Determine the importance of quality.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
114) Magnus is a factory manager for Clearfield Computers and is conducting a visual inspection of component hardware and comparing against established quality standards. Magnus is measuring _____.
a) production planning
b) critical path
c) quality control
d) benchmarking
Difficulty: Medium
Learning Objective 1: 10.7
Section Reference 1: Determine the importance of quality.
Standard 1: AACSB || Analytic
Bloomcode: Application
Question Type: True/False
115) Production creates form utility by converting raw materials and other inputs into finished products.
Difficulty: Easy
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
116) Production and manufacturing are the same so the terms are and can be used interchangeably.
Difficulty: Easy
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
117) Effective production and operations management can lower a company’s costs of production, boost the quality of its goods and services, allow it to respond dependably to customer demands, and enable it to grow while creating new value for customers by providing new products.
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
118) Mass production helps make large quantities of goods at lower prices.
Difficulty: Easy
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
119) An example of a standardized part, which simplifies the replacement process is a light bulb.
Difficulty: Easy
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
120) Mass production is highly efficient for producing small quantities of unique items.
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
121) Flexible production systems typically involve using information technology to share the details of customer orders, programmable equipment to fulfill orders, and skilled people to carry out whatever tasks are necessary to fill an order. They are less complicated and require less cooperation than do mass production systems.
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
122) Although companies don’t generally decide to completely replace mass production with flexible production or customer-driven production, the addition of these alternative forms of production can lead to job satisfaction.
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
123) Amanda owns a line of hand-made purses. She is paid in advance and creates items that are custom made according to her clients’ specifications. Amanda uses a system of customer-driven production.
Difficulty: Medium
Learning Objective 1: 10.1
Section Reference 1: Explain the strategic importance of production.
Standard 1: AACSB || Analytic
Bloomcode: Application
124) An analytic production system combines a number of raw materials or parts or transforms raw materials to produce finished products.
Difficulty: Easy
Learning Objective 1: 10.2
Section Reference 1: Identify and describe the production processes.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
125) An example of analytic production is corn processing.
Difficulty: Medium
Learning Objective 1: 10.2
Section Reference 1: Identify and describe the production processes.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
126) Most services businesses, such as accountants and plumbers, utilize an intermittent production system.
Difficulty: Medium
Learning Objective 1: 10.2
Section Reference 1: Identify and describe the production processes.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
127) A “lights out” factory, which is completely automated demonstrates a company’s lack of ability to meet customer needs.
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
128) The LEED certification process is rigorous and involves meeting standards in energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality (including air and natural light), and other categories.
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
129) Freeing humans from potentially dangerous assignments such as handling hazardous materials is an important use of robots.
Difficulty: Easy
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
130) Most modern production facilities will choose to use either CAD or CAM, but not both in tandem.
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
131) An example of green manufacturing is when Boeing engineers’ use computers to build new commercial jet models in the virtual world before they are actually built in production.
Difficulty: Easy
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Application
132) Computer-integrated manufacturing combines the use of robots, CAD/CAM, and flexible manufacturing systems.
Difficulty: Medium
Learning Objective 1: 10.3
Section Reference 1: Explain the role of technology in the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
133) Examples of physicals factors are when GM is assessing local labor costs as well as the availability of workers with necessary qualifications as it determines a location for its new plant.
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Application
134) Software manufacturers such as Dell are more concerned with physical factors than human factors.
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
135) When skilled employee technicians are required, potential plant location choices become more limited.
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
136) Creators of Humane Pets Theme Park decide upon a location in Tucson, Arizona because it is a location that generally promise sunny, warm weather year-round for visitors. This is an example of considering physical variables.
Difficulty: Medium
Learning Objective 1: 10.4
Section Reference 1: Identify the factors involved in a location decision.
Standard 1: AACSB || Analytic
Bloomcode: Application
137) Production managers must continually evaluate results of the production process and make adjustments along the way.
Difficulty: Easy
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
138) The sole purpose of a successful production planning process is to ensure customer satisfaction.
Difficulty: Easy
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
139) A product layout is one in which the product remains in a fixed position and workers, materials, and machines are transported to and from it.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
140) A process layout groups machinery and other equipment according to their functions.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
141) A typical machine shop generally has separate departments where machines are grouped by functions such as grinding, drilling, pressing, and lathing. This is an example of a process layout.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
142) A product layout can efficiently produce a large number of similar products but is relatively inflexible.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
143) Custom machine shops are typically organized in a product layout.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
144) Customer-oriented layout are typical layouts for airplane manufacturers.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
145) To make, buy, or lease decision sometimes depends on the availability of outside suppliers that can dependably meet a company’s standards for quality and quantity.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
146) Managers should maintain access to only one or two supply sources.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
147) Raw materials are often purchased on a long-term contractual basis.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
148) The decision to purchase or lease sometimes is affected by the need for confidentiality.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
149) Quality, prices, dependability of delivery, and services offered by competing companies are some of the main things companies will take into consideration when selecting a supplier.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
150) Negotiations between a purchaser and potential vendors, for a major purchase, are done as quickly as possible in order to begin the manufacturing process.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
151) Companies generally prefer short-term contracts with suppliers.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
152) To continuously monitor the amounts and locations of their stocks, perpetual inventory systems typically use computers.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
153) A just-in-time inventory system seeks to eliminate anything that does not add value in operations activities by providing the right part at the right place at just the right time right before it is needed in production.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
154) Interestingly, just-in-time inventory systems shift much of the responsibility for carrying inventory to vendors.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
155) In a just-in-time system, most of the responsibility for carrying inventory falls on the purchasers.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
156) Jessica’s company builds custom guitars based on client specifications. Her company would best utilize a just-in-time system.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Application
157) MRP is a computer-based production planning system that lets a company ensure that it has all the parts and materials it needs to produce its output at the right time and place and in the right amounts.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
158) Shane owns a small art gallery with only a few components. His company does not necessarily need an inventory system based on materials requirement planning.
Difficulty: Medium
Learning Objective 1: 10.5
Section Reference 1: Explain the job of production managers.
Standard 1: AACSB || Analytic
Bloomcode: Application
159) Kiersten is determining the sequence of work throughout a manufacturing facility and who will perform which task at which location. Kiersten is engaged in the production control step known as routing.
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Application
160) Routing choices depend on the nature of the good or service and the facility layout.
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
161) For tracking projected and actual work progress over time, Gantt charts are most effective.
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
162) PERT is a scheduling technique designed to minimize production delays.
Difficulty: Easy
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
163) The critical path in a PERT diagram illustrates the sequence of operations that requires the longest time for completion.
Difficulty: Medium
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
164) Dispatching refers to the phase of production control in which the manager instructs each department on the work to be done and the time allowed for its completion.
Difficulty: Easy
Learning Objective 1: 10.6
Section Reference 1: Discuss controlling the production process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
165) Identifying how leaders in certain fields perform and continually comparing and measuring performance against these outstanding performers is called quality control.
Difficulty: Medium
Learning Objective 1: 10.7
Section Reference 1: Determine the importance of quality.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
166) Depending on their objectives, companies may use many different benchmarks.
Difficulty: Easy
Learning Objective 1: 10.7
Section Reference 1: Determine the importance of quality.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
167) Quality control involves measuring products and services against established quality standards.
Difficulty: Easy
Learning Objective 1: 10.7
Section Reference 1: Determine the importance of quality.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
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Contemporary Business 18e | Test Bank by Louis E. Boone
By Louis E. Boone