Title: Managing Processes
Course: Demo 1

Q: ________ means managing the operations of a business such as planning, scheduling and logistics.
- Accounting management
- Inventory management
- Operations management
A: Operations management

Q: When planning for production, the operations manager must select a process that supports the good being manufactured. Two options for process planning are:
- mass production
- mass customization
- TQM quality control
A: mass production; mass customization

Q: The job of operations management consists of all of the activities involved in:
- transforming an idea into a finished product
- planning and controlling the systems that produce goods and services
- marketing to end customers
A: transforming an idea into a finished product; planning and controlling the systems that produce goods and services

Q: In manufacturing operations, manufacturers set out to:
- improve operational efficiency
- transform resources into finished goods
- create effective advertising campaigns
A: improve operational efficiency; transform resources into finished goods

Q: The main areas of responsibility for a manufacturing operations manager include:
- production planning
- quality control
- production control
A: production planning; quality control; production control

Q: During the planning phase of production, managers determine:
- how manufacturing facilities will be laid out
- how goods will be produced
- where production will take place
A: how manufacturing facilities will be laid out; how goods will be produced; where production will take place

Q: A candy manufacturer gets a special order to manufacture 5,000 candies with a company logo on the wrapper. The manufacturer’s best strategy is a:
- make-to-order strategy
- mass production strategy
- mass customization strategy
A: mass customization strategy

Q: A sign manufacturer gets a customer order for fifty custom signs to be manufactured. The manufacturer’s best strategy is a:
- mass customization strategy
- mass production strategy
- make-to-order strategy
A: make-to-order strategy

Q: In order to expand its operations, a shipping company, is looking for a location to build another distribution center. What are some of the factors the operations manager should consider in choosing the site?
- a location with an ample supply of skilled workers
- a location that minimizes operational costs
- a location with a large supply of water
A: a location with an ample supply of skilled workers; a location that minimizes operational costs

Q: Managers conduct capacity planning by:
- forecasting demand for their product
- calculating the production requirements of their production facility
- estimating shipping costs
A: forecasting demand for their product; calculating the production requirements of their production facility

Q: Over a given period of time under normal working conditions, the maximum quantity of goods that a manufacturing facility can produce is called its:
- warranty
- durability
- capacity
A: capacity

Q: After planning the production process at a manufacturing plant, the next step is to determine the:
- labor requirements
- technological infrastructure
- plant layout
A: plant layout

Q: A high volume of goods is produced efficiently by people, equipment or departments arranged in an assembly line when using which layout?
- cellular layout
- process layout
- product layout
A: product layout

Q: The operations manager at a printing company has grouped together a work crew to assemble an order of 500 copies of an annual report for a toy manufacturing company. This is an example of:
- product layout
- process layout
- cellular layout
A: cellular layout

Q: ________ means goods that are not yet finished.
- Goods done with processes
- Goods as raw materials
- Goods in process
A: Goods in process

Q: The bubble gum manufacturing process begins when ingredients are mixed and then passed to the next workstation. There, the bubble gum “batter” is poured into molds and pressed into spheres. The filled molds are then moved to the next workstation where they are opened, their contents removed, and placed on a belt. At the next station, the molds are sprayed with a candy coating. This is an example of a(n):
- handmade line
- customized line
- assembly line
A: assembly line

Q: In a ________, a small team of workers handle all aspects of building a component, a “family” of components, or a finished product.
- mass assembly line
- product layout
- cellular layout
A: cellular layout

Q: Besides improved quality, the benefits of using a cellular layout include:
- faster completion time
- better employee morale
- smaller facility requirements
A: faster completion time; better employee morale

Q: An airplane manufacture assembles a plane in one location and the workers and equipment go to the airplane when they need to work on it. This is an example of a ________.
- cellular layout
- product layout
- fixed-position layout
A: fixed-position layout

Q: Using computer-aided design allows:
- testing of a product concept digitally before prototyping
- designers to view the product from all angles
- different materials to be used to manufacture prototypes
A: testing of a product concept digitally before prototyping; designers to view the product from all angles

Q: Because many companies have automated and integrated all aspects of their operations, ________ systems are revolutionizing the production process.
- customer integration
- computer-monitored
- computer-integrated manufacturing (CIM)
A: computer-integrated manufacturing (CIM)

Q: The software used to design models of potential products is called ________.
- computer-aided manufacturing (CAM)
- computer-created design (CCD)
- computer-aided design (CAD)
A: computer-aided design (CAD)

Q: The software system that determines the steps needed to produce a component and instructs the machines that do the work is called ________.
- computer-aided design (CAD)
- computer-created manufacturing (CCM)
- computer-aided manufacturing (CAM)
A: computer-aided manufacturing (CAM)

Q: When companies link CAD to CAM systems, companies are able to design and manufacture goods faster and more efficiently. The integration of CAD/CAM also provides companies with an opportunity to:
- monitor and improve quality
- manufacture at a lower cost
- reduce their marketing expenses
A: monitor and improve quality; manufacture at a lower cost

Q: A CIM system is a common element in ________, whereby computer-controlled equipment can easily be adapted to produce a variety of goods.
- outsourcing systems
- static manufacturing systems
- flexible manufacturing systems
A: flexible manufacturing systems

Q: A company that manufactures automobiles has decided to also manufacture motorcycles. Because they use an FMS (flexible manufacturing system), they are able to:
- save time because they do not need to modify production equipment
- save money because they do not need to purchase new specialized equipment
- save time because they build only one type of product
A: save time because they do not need to modify production equipment; save money because they do not need to purchase new specialized equipment

Q: ________ is a form of computer-aided production that builds a three-dimensional object by adding layers of material, one upon the other until an object is created.
- 2D printing
- 3 flexible manufacturing
- 3D printing
A: 3D printing

Q: The primary function of both manufacturers and service providers is to:
- produce products
- upgrade services
- satisfy customer needs
A: satisfy customer needs

Q: An important difference between manufacturers and service providers is ________.
- standardization
- mass production
- intangibility
A: intangibility

Q: Operations managers in manufacturing focus on scheduling the activities needed to produce goods. However, when Operations Managers in service organizations focus on scheduling workers, they do so to ensure enough people are available to handle:
- product assembly
- inventory stocking
- fluctuating customer demand
A: fluctuating customer demand

Q: Manufacturers produce tangible, generally standardized products. On the other hand, service firms:
- provide services that are highly customized based on customer preference
- provide intangible products that are often customized to satisfy specific needs
- produce tangible products designed to meet target customers’ needs
A: provide services that are highly customized based on customer preference; provide intangible products that are often customized to satisfy specific needs

Q: You have an appointment at a car audio shop. You describe the sound you are looking for and the service provider recommends adding an extra bass speaker in your car. This is an example of:
- customization
- customer contact
- standardization
A: customization; customer contact

Q: ________ is just as important in service industries as it is in manufacturing.
- Mass production
- Durability
- Operational efficiency
A: Operational efficiency

Q: When starting or expanding operations, businesses in the service sector must decide:
- what services or goods they should offer
- how they will forecast demand for their services
- where they will locate their business
A: what services or goods they should offer; how they will forecast demand for their services; where they will locate their business

Q: Much like manufactures, a service provider that produces goods can decide to choose a:
- make-to-stock approach to manufacturing their goods
- make-to-order approach to manufacturing their goods
- make-to-disassemble approach to manufacturing their goods
A: make-to-stock approach to manufacturing their goods; make-to-order approach to manufacturing their goods

Q: Service providers can’t store their products for later use like manufacturers. This makes ________ more difficult than for manufacturers.
- forecasting demand
- capacity planning
- historical referencing
A: forecasting demand; capacity planning

Q: Judy is the manager of a large local hotel. Her days consist of staff meetings, hiring and firing, interacting with convention visitors, food providers, cleaning staff, desk staff, bell boys, customers who are dissatisfied, and customers who are satisfied. She routinely handles conflicts in scheduling and fills in gaps in service that might arise while going out of her way to make returning customers feel special. This is an example of how the service industry:
- is a set-it and forget-it industry
- is similar to the manufacturing industry
- puts special demands on managers
A: puts special demands on managers

Q: A ________ chart is useful when the production process is fairly simple and the activities aren’t interrelated.
- PERT
- PIE
- Gantt
A: Gantt

Q: Schedules are necessary because managers must:
- control the timing of all operations
- assign tasks to work groups
- make sure resources will be available when and where they are needed
A: control the timing of all operations; assign tasks to work groups; make sure resources will be available when and where they are needed

Q: A ________ chart is a scheduling tool that is used to make operations more efficient and is popular with operations managers to diagram activities involved in producing goods.
- comparison
- CAD
- Gantt
A: Gantt

Q: PERT is useful when the production process is fairly complex, and it stands for:
- Process Evaluation and Review Target
- Program Efficiency and Relational Technique
- Program Evaluation and Review Technique
A: Program Evaluation and Review Technique

Q: A PERT chart is designed to:
- organize activities in the most efficient sequence
- specify the time required to perform each activity in the process
- diagram the activities required to produce a good
A: organize activities in the most efficient sequence; specify the time required to perform each activity in the process; diagram the activities required to produce a good

Q: A PERT chart identifies the ________, which is the sequence of activities that will entail the greatest amount of time.
- outcome of the process
- price of goods
- critical path
A: critical path

Q: ________ is the management of the network of interconnected steps involved in the provision of product and service packages.
- Surplus management
- Operations management
- Supply chain management (SCM)
A: Supply chain management (SCM)

Q: Supply chain management involves:
- finished goods from point of origin to point of consumption
- all movement and storage of raw materials
- work-in-process inventory
A: finished goods from point of origin to point of consumption; all movement and storage of raw materials; work-in-process inventory

Q: Some of the issues addressed by supply chain management (SCM) include:
- customer service and customer satisfaction
- number, location, and networks of suppliers
- marketing practices
A: customer service and customer satisfaction; number, location, and networks of suppliers

Q: What are some of the parts in a distribution network configuration?
- production facilities and cross-docs
- warehouses and distribution centers
- customers
A: production facilities and cross-docs; warehouses and distribution centers; customers

Q: Supply-chain activities must be well coordinated in order to achieve the lowest total logistics cost. If only one of the activities is optimized, ________ may increase the total cost.
- cross-docs
- customers
- trade-offs
A: trade-offs

Q: Besides information and inventory management, what other trade-offs are key to developing the most efficient supply chain management?
- supply chain execution
- cash-flow
- customer relationship management
A: supply chain execution; cash-flow

Q: ________ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
- Service
- Process
- Quality
A: Quality

Q: A company follows the total quality management (TQM) principles by focusing on customer satisfaction, employee involvement, and:
- the supply chain
- board of directors involvement
- continuous improvement
A: continuous improvement

Q: Six Sigma practices:
- emphasize a clear focus on achieving quantifiable financial returns
- support continuous efforts at improvement involving everyone at the company
- determine individuals best suited for success in a given job role or function
A: emphasize a clear focus on achieving quantifiable financial returns; support continuous efforts at improvement involving everyone at the company

Q: The goals of total quality management (TQM) are to:
- deliver quality goods and services
- satisfy customers’ needs
- help the company remain competitive
A: deliver quality goods and services; satisfy customers’ needs; help the company remain competitive

Q: A life-preserver manufacturer has a dedicated phone number that collects feedback from customers and employees on how to improve their products. Each month the management staff reads through the phone feedback transcripts and employee suggestions and chooses what to implement. This is an example of:
- benchmarking
- delegation
- continuous improvement
A: continuous improvement

Q: To identify areas for improvement, companies use a technique called ________, which monitors quality by testing samples of products to determine if they meets predetermined specifications.
- SWOT analysis
- best out of three practice
- statistical process control
A: statistical process control

Q: The International Standards Organization (ISO):
- established the ISO 9000 family of international standards for quality management and the ISO 14000 family of international standards for environmental management
- has become an internationally recognized symbol of quality management. ISO certification is almost essential to be competitive in the global marketplace
- provides guidelines for reducing the costs of defective goods
A: established the ISO 9000 family of international standards for quality management and the ISO 14000 family of international standards for environmental management; has become an internationally recognized symbol of quality management. ISO certification is almost essential to be competitive in the global marketplace

Q: The Six Sigma cost of quality (COQ) determines the financial return on a quality initiative. What factors are used to calculate the COQ?
- cost of failure
- cost of prevention
- cost of research and development
A: cost of failure; cost of prevention

Q: The ________ in the Sigma Six cost-of-quality (COQ) equation includes the internal costs before the product is sold (like waste and re-work).
- cost of prevention
- cost of manufacturing
- cost of failure
A: cost of failure

Q: The cost of prevention in the Sigma Six cost-of-quality (COQ) equation includes:
- cost of public relations campaigns on quality
- cost of legal consultation
- cost to verify quality practices
A: cost to verify quality practices

Q: The Baldrige National Quality Award is given to U.S. companies and individuals for their contribution to quality. The criteria used to determine award recipients include:
- workforce focus
- process management
- strategic planning
A: workforce focus; process management; strategic planning

Q: Using outside vendors to manufacture entire products, components or provide services is called ________.
- resource alignment
- manufacturing strategy
- outsourcing
A: outsourcing

Q: Which possible situations illustrate when outsourcing may be the best option for an organization?
- an organization does not have the skills or expertise in an area, product or component
- labor wages are high in the company’s country
- the organization may not have an established relationship with suppliers or distributors
A: an organization does not have the skills or expertise in an area, product or component; labor wages are high in the company’s country; the organization may not have an established relationship with suppliers or distributors

Q: A manufacturer of children’s toys outsourced its production of a line of children’s building blocks to a Chinese factory. Upon receipt of the building blocks from the factory, they were sampled and tested against quality standards and appeared to be fine. Therefore, they were boxed and shipped to retail toy stores. A few weeks later customers were calling customer service complaining that the blocks were falling apart and making their children sick. The poor quality of this product could mean:
- lawsuits against the manufacturer
- retail stores will drop the manufacturer’s products
- an increase in revenue for the manufacturer
A: lawsuits against the manufacturer; retail stores will drop the manufacturer’s products