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Exam 8: Producing Quality Goods and Services

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Question 41

Multiple Choice

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Which of the following statements is false in relation to choosing a supplier?

A) Purchasers should consider price, quality, and reliability when choosing a supplier.
B) Purchasers should always be on the lookout for new suppliers.
C) Purchasers should ensure that the credit terms a supplier offers are agreeable to their company.
D) Purchasers should carefully consider the geographical location of the supplier and the corresponding freight costs.
E) Purchasers should focus on having only one supplier for each material needed.

F) All of the above
G) A) and D)

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Question 42

Multiple Choice

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Chevron and other refiners emphasize material resources in the conversion process.This implies that the material resources are the ____ of the conversion process.

A) catalyst
B) technology
C) output
D) impetus
E) focus

F) A) and D)
G) A) and E)

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Question 43

Multiple Choice

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The American economy is now characterized as a(n) ____ economy.

Productivity is the

All of the following options are available to a firm when capacity exceeds demand except to

When firms use inspection to monitor quality, only the finished product is examined for defects or potential problems.

Purchasing personnel need not worry about a tiny difference in price when a large quantity is being bought.

FMS (an abbreviation from this chapter) stands for Ford Motor Systems.

ABC Company ABC Company is dedicated to operations control.It holds its suppliers to the highest standards, believing there is one best way to complete their tasks.ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business.Following these criteria has allowed the company to grow from a small business to a large corporation.ABC plans on going international in the next couple of years to broaden its scope. ABC has kept up with new technologies.In fact, it has incorporated a new computer system that helps with the development of the company's products.This system has improved ABC's production dramatically.Now, ABC will be able to sell its products at a lower cost.The ABC management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future. -Refer to ABC Company.Based on the information provided, what type of computer system is ABC Company using?

At a Schlage Lock factory, many employees are needed to use tiny screwdrivers and other tools to carefully assemble the inner workings of door knobs and locks.They must sit at a station and look through a magnifying glass to complete this work.This production process could best be described as _____.

To ensure that work flows according to a timetable, operations managers use a procedure called _____.

Automation is characterized by low initial costs and high operating costs.

The Motorola Corporation has begun a program that promises to improve employee motivation.This is an example of a way to ____ productivity.

Product extension and refinement

Robotics is the use of programmable machines to perform a variety of tasks by manipulating

Technology that is characterized by high initial costs and low operating costs is termed as _____.

The cost of running out of inventory is referred to as a holding cost.

Purchasing personnel should check the reliability of potential suppliers as well as suppliers' ability to meet delivery schedules.

Tom's Toothpicks and Don's Doghouses both use lumber as the major input in their conversion processes.Although the input is the same for each factory, the ____ of the conversion process varies greatly between the two.

To produce a BMW sport-utility vehicle, an operations manager must engage in all of the following activities except