Question 1

Which of the following is the objective of purchasing?

Accepted Answer

A)   routinely replenish the stock
B)   ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost
C)   select suppliers
D)   determine the facility's level of output
E)   control inventory and product qualityF) D) and E)
G) A) and B)

Question 2

An industrial company contacts Caterpillar to design a specific type of equipment for use in its manufacturing facility.If Caterpillar accepts this offer, the two companies will have to create a set of specifications from which the product can be made.This process is called

Accepted Answer

A)   a product line.
B)   development and implementation.
C)   design planning.
D)   product design.
E)   capacity planning.F) C) and D)
G) A) and D)

Question 3

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

Accepted Answer

A)   Six Sigma
B)   Quality Magic
C)   The National Quality Program
D)   The Total Management Program
E)   Employee Participation Now ProgramF) B) and E)
G) A) and B)

Question 4

What are the two types of costs associated with inventory?

Accepted Answer

A)   holding costs and selling costs
B)   stock-out costs and holding costs
C)   shipping and handling costs and holding costs
D)   overstock costs and stock-out costs
E)   holding costs and tracking costsF) A) and B)
G) A) and C)

Question 5

To determine the proper size for its new restaurant in Nashville, Tennessee, operations managers and marketing managers for Hard Rock Cafe worked together to determine the restaurant's ____.

Accepted Answer

A)   capacity
B)   product line
C)   required annual sales
D)   lead time
E)   production flowF) B) and C)
G) A) and B)

Question 6

Chase is excited because he has just signed an agreement to purchase steel frames from a company at an excellent price and of very high quality.Once the contract begins, Chase eagerly awaits the first shipment, but it arrives a month behind the agreed-upon schedule, which slows down production at Chase's plant.Chase is furious because he realizes too late that this supplier

Accepted Answer

A)   produces poor quality.
B)   has bad credit terms.
C)   is unreliable.
D)   is not as inexpensive as he thought.
E)   is unscheduled.F) D) and E)
G) B) and D)

Question 7

During the period after World War II, the United States was the most productive country in the world for approximately ____ years.

Accepted Answer

A)   five
B)   ten
C)   twenty
D)   thirty
E)   fiftyF) A) and D)
G) C) and D)

Question 8

The ____ is an award given by the president of the United States to organizations that apply and are judged to be outstanding in specific managerial tasks that lead to improved quality for both products and services.

Accepted Answer

A)   Total Quality Management Award
B)   Malcolm Baldrige National Quality Award
C)   Boeing Productivity Award
D)   National Quality Circle Award
E)   Horatio Alger AwardF) A) and B)
G) A) and C)

Question 9

Abbot Laboratory is embarking on a sophisticated technology that requires special skills.To address this issue, the company has decided to recruit employees with the appropriate skills rather than train the existing employees.This decision affects the work of the ____ manager.

Accepted Answer

A)   financial
B)   human resources
C)   personnel
D)   operations
E)   marketingF) B) and C)
G) B) and E)

Question 10

A government-funded group of scientists is assigned to discover new knowledge and scientific advances.These scientists are not required to consider the potential use of this knowledge.This group is conducting

Accepted Answer

A)   development and implementation.
B)   research for product life cycles.
C)   applied research.
D)   academic research and development.
E)   basic research.F) B) and E)
G) D) and E)

Question 11

The term magnitude is used to describe the number of production processes that are used to produce products or services.

Accepted Answer

A) True 
 B)False

Question 12

____ is the arrangement of machinery, equipment, and personnel within a production facility.

Accepted Answer

A)   Process layout
B)   Product layout
C)   Resource design
D)   Plant layout
E)   Design planningF) B) and D)
G) A) and B)

Question 13

Which of the following is not one of the steps in operational planning?

Accepted Answer

A)   adjusting products or services to meet demand
B)   designing new products or services
C)   selecting a planning horizon
D)   comparing market demand with capacity
E)   estimating market demandF) A) and E)
G) B) and D)

Question 14

A situation in which machines and equipment do most of the work is known as _____.

Accepted Answer

A)   high technology
B)   quality control
C)   a labor-intensive technology
D)   an industrial installation
E)   a capital-intensive technologyF) B) and D)
G) C) and E)

Question 15

A group of design engineers for Ford Motor Company spends two months in the summer in the Arizona desert researching fuel performance at extreme temperatures.Ford uses the results of these tests to improve the quality of its automobiles.The group of engineers is engaging in _____.

Accepted Answer

A)   applied research
B)   product design
C)   basic research
D)   design planning
E)   horizon planningF) All of the above
G) A) and B)

Question 16

IBM satisfies consumers' needs for powerful, easy-to-use laptop computers by converting assorted software routines, hardware devices, and miscellaneous parts into personal computers.By doing this, IBM is creating _____.

Accepted Answer

A)   consumer demand
B)   market control
C)   technological dependence
D)   form utility
E)   production efficiencyF) B) and E)
G) A) and B)

Question 17

Which of the following products is most likely to require a fixed-position layout?

Accepted Answer

A)   automobile
B)   canoe
C)   clothing
D)   yacht
E)   computerF) B) and E)
G) A) and B)

Question 18

A process layout is used when all products undergo the same operations in the same sequence.

Accepted Answer

A) True 
 B)False

Question 19

When considering the nature of the conversion, the resources that comprise the major input are called the

Accepted Answer

A)   width of the conversion process.
B)   magnitude of a conversion.
C)   depth of a conversion.
D)   number of technologies.
E)   focus of the conversion process.F) A) and E)
G) A) and B)

Question 20

The just-in-time inventory system focuses on minimizing

Accepted Answer

A)   scheduling.
B)   materials resource planning.
C)   stock-out costs.
D)   customer complaints.
E)   storage and holding costs.F) B) and C)
G) C) and D)

Exam 8: Producing Quality Goods and Services

Which of the following products is most likely to require a fixed-position layout?

Correct Answer
verified

Abbot Laboratory is embarking on a sophisticated technology that requires special skills.To address this issue, the company has decided to recruit employees with the appropriate skills rather than train the existing employees.This decision affects the work of the ____ manager.

Correct Answer
verified

A group of design engineers for Ford Motor Company spends two months in the summer in the Arizona desert researching fuel performance at extreme temperatures.Ford uses the results of these tests to improve the quality of its automobiles.The group of engineers is engaging in _____.

Correct Answer
verified

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

Correct Answer
verified

The just-in-time inventory system focuses on minimizing

Correct Answer
verified

When considering the nature of the conversion, the resources that comprise the major input are called the

Correct Answer
verified

A process layout is used when all products undergo the same operations in the same sequence.

Correct Answer
verified

The term magnitude is used to describe the number of production processes that are used to produce products or services.

Correct Answer
verified

IBM satisfies consumers' needs for powerful, easy-to-use laptop computers by converting assorted software routines, hardware devices, and miscellaneous parts into personal computers.By doing this, IBM is creating _____.

Correct Answer
verified

During the period after World War II, the United States was the most productive country in the world for approximately ____ years.

Correct Answer
verified

A situation in which machines and equipment do most of the work is known as _____.

Correct Answer
verified

Correct Answer
verified

Which of the following is not one of the steps in operational planning?

Correct Answer
verified

An industrial company contacts Caterpillar to design a specific type of equipment for use in its manufacturing facility.If Caterpillar accepts this offer, the two companies will have to create a set of specifications from which the product can be made.This process is called

Correct Answer
verified

____ is the arrangement of machinery, equipment, and personnel within a production facility.

Correct Answer
verified

To determine the proper size for its new restaurant in Nashville, Tennessee, operations managers and marketing managers for Hard Rock Cafe worked together to determine the restaurant's ____.

Correct Answer
verified

What are the two types of costs associated with inventory?

Correct Answer
verified

The ____ is an award given by the president of the United States to organizations that apply and are judged to be outstanding in specific managerial tasks that lead to improved quality for both products and services.

Correct Answer
verified

A government-funded group of scientists is assigned to discover new knowledge and scientific advances.These scientists are not required to consider the potential use of this knowledge.This group is conducting

Correct Answer
verified

Which of the following is the objective of purchasing?

Correct Answer
verified

Exam 8: Producing Quality Goods and Services

Which of the following products is most likely to require a fixed-position layout?

Correct AnswerverifiedShow Answer

Abbot Laboratory is embarking on a sophisticated technology that requires special skills.To address this issue, the company has decided to recruit employees with the appropriate skills rather than train the existing employees.This decision affects the work of the ____ manager.

Correct AnswerverifiedShow Answer

A group of design engineers for Ford Motor Company spends two months in the summer in the Arizona desert researching fuel performance at extreme temperatures.Ford uses the results of these tests to improve the quality of its automobiles.The group of engineers is engaging in _____.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The just-in-time inventory system focuses on minimizing

Correct AnswerverifiedShow Answer

When considering the nature of the conversion, the resources that comprise the major input are called the

Correct AnswerverifiedShow Answer

A process layout is used when all products undergo the same operations in the same sequence.

Correct AnswerverifiedShow Answer

The term magnitude is used to describe the number of production processes that are used to produce products or services.

Correct AnswerverifiedShow Answer

IBM satisfies consumers' needs for powerful, easy-to-use laptop computers by converting assorted software routines, hardware devices, and miscellaneous parts into personal computers.By doing this, IBM is creating _____.

Correct AnswerverifiedShow Answer

During the period after World War II, the United States was the most productive country in the world for approximately ____ years.

Correct AnswerverifiedShow Answer

A situation in which machines and equipment do most of the work is known as _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not one of the steps in operational planning?

Correct AnswerverifiedShow Answer

An industrial company contacts Caterpillar to design a specific type of equipment for use in its manufacturing facility.If Caterpillar accepts this offer, the two companies will have to create a set of specifications from which the product can be made.This process is called

Correct AnswerverifiedShow Answer

____ is the arrangement of machinery, equipment, and personnel within a production facility.

Correct AnswerverifiedShow Answer

To determine the proper size for its new restaurant in Nashville, Tennessee, operations managers and marketing managers for Hard Rock Cafe worked together to determine the restaurant's ____.

Correct AnswerverifiedShow Answer

What are the two types of costs associated with inventory?

Correct AnswerverifiedShow Answer

The ____ is an award given by the president of the United States to organizations that apply and are judged to be outstanding in specific managerial tasks that lead to improved quality for both products and services.

Correct AnswerverifiedShow Answer

A government-funded group of scientists is assigned to discover new knowledge and scientific advances.These scientists are not required to consider the potential use of this knowledge.This group is conducting

Correct AnswerverifiedShow Answer

Which of the following is the objective of purchasing?

Correct AnswerverifiedShow Answer

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