Test Bank For Foundations of Business 5th by Pride Download

Test Bank for Foundations of Business 5th by Pride
To download the complete and accurate content document, go to:

https://testbankbell.com/download/test-bank-for-foundations-of-business-5th-by-pride/
Visit TestBankBell.com to get complete for all chapters

Name: Class: Date:
Chapter 08: Producing Quality Goods and Services

True / False
1. All the activities managers engage in to produce goods and services are called operations management.
a. True
b. False
ANSWER: True
2. When manufacturing a product like a computer or an automobile, planning takes place both before anything is
produced and during the production process.
a. True
b. False
ANSWER: True
3. After World War II, the United States became the most productive country in the world.
a. True
b. False
ANSWER: True
4. In order to compete in the global economy, U.S. firms have focused on increasing prices and improving the bottom-line
profit amount.
a. True
b. False
ANSWER: False
5. To regain market share, many American firms have lowered quality standards.
a. True
b. False
ANSWER: False
6. An analytical process breaks raw materials into different component parts.

a. True
b. False
ANSWER: True
7. Oil companies use a synthetic process when they refine crude oil.
a. True
b. False
ANSWER: False
8. A synthetic process combines raw materials or components to create a finished product.

a. True
b. False
ANSWER: True
9. Form utility is created by converting raw materials, people, finances, and information into finished products.
Copyright Cengage Learning. Powered by Cognero. Page 1
Name: Class: Date:

a. True
b. False
ANSWER: True
10. The major resource or resources that comprise the major input for a conversion process is often referred to as the
focus.
a. True
b. False
ANSWER: True
11. The term magnitude is used to describe the number of production processes that are used to produce products or
services.
a. True
b. False
ANSWER: False
12. A service economy is one in which more effort is devoted to the production of goods than to the production of
services.
a. True
b. False
ANSWER: False
13. The goal of applied research is scientific advancement, without regard for its potential uses in the development of
goods and services.
a. True
b. False
ANSWER: False
14. Development and implementation are research activities undertaken to put new or existing knowledge to use in
producing goods and services.
a. True
b. False
ANSWER: True
15. Product extension and refinement are expected results of a firm's development and implementation effort.
a. True
b. False
ANSWER: True
16. Operations managers refer to the development of a plan for converting a product idea into an actual product as design
planning.
a. True
b. False
ANSWER: True

Name: Class: Date:

17. Deciding on the product line involves balancing customer preferences and production requirements.
a. True
b. False
ANSWER: True
18. The amount of products or services an organization can produce in a given time is known as its capacity.
a. True
b. False
ANSWER: True
19. Capacity to a service business means something completely different from capacity to a production business.
a. True
b. False
ANSWER: False
20. A labor-intensive technology is one in which people must do most of the work.
a. True
b. False
ANSWER: True
21. Automation is characterized by low initial costs and high operating costs.
a. True
b. False
ANSWER: False
22. When machines and equipment do most of the work in a manufacturing plant, it is referred to as a mechanical-
intensive process.
a. True
b. False
ANSWER: False
23. An auto repair shop is an example of a fixed-position layout.

a. True
b. False
ANSWER: False
24. A process layout is used when all products undergo the same operations in the same sequence.
a. True
b. False
ANSWER: False
25. An assembly line at a Rubbermaid production facility is an example of a product layout.

a. True
b. False
ANSWER: True
Name: Class: Date:
26. A common planning horizon for operational plans is one year.

a. True
b. False
ANSWER: True
27. The objective of purchasing is to ensure that required materials are available when they are needed, in the proper
amounts, and at minimum cost.
a. True
b. False
ANSWER: True
28. In supplier selection, the main idea is to find the highest-quality materials available.
a. True
b. False
ANSWER: False
29. Purchasing personnel need not worry about a tiny difference in price when a large quantity is being bought.
a. True
b. False
ANSWER: False
30. Purchasing personnel should check the reliability of potential suppliers as well as suppliers' ability to meet delivery
schedules.
a. True
b. False
ANSWER: True
31. Materials that will become part of a product during the conversion process are called raw materials.
a. True
b. False
ANSWER: True
32. The process of managing inventories to minimize both holding costs and potential stock-out costs is called inventory
control.
a. True
b. False
ANSWER: True
33. The cost of running out of inventory is referred to as a holding cost.

a. True
b. False
ANSWER: False
34. Since computers have been invented, materials requirements planning (MRP) is an outdated method of controlling

Name: Class: Date:

inventory.
a. True
b. False
ANSWER: False
35. When a company successfully applies the just-in-time system, it minimizes its inventory storage costs.
a. True
b. False
ANSWER: True
36. The responsibility for monitoring schedules to ensure that the work flows according to schedule is called follow-up.
a. True
b. False
ANSWER: True
37. Quality control is the process of ensuring that materials are at the right place at the right time.
a. True
b. False
ANSWER: False
38. The major objective of quality control is to see that the organization produces no imperfect products.
a. True
b. False
ANSWER: False
39. When firms use inspection to monitor quality, only the finished product is examined for defects or potential problems.
a. True
b. False
ANSWER: False
40. Quality circles have been used successfully to solve product defect problems in U.S. firms.
a. True
b. False
ANSWER: True
41. When compared to total quality management, Six Sigma often has more top-level support, more training for
employees, and more teamwork.
a. True
b. False
ANSWER: True
42. Since ISO 9000 quality standards were developed in Switzerland and affect only European firms, they don't apply to
firms in the United States doing business in Europe.
a. True
b. False
Name: Class: Date:

ANSWER: False
43. Productivity is a measure of output per unit of time per worker.

a. True
b. False
ANSWER: True
44. According to management experts, increased government regulations have increased productivity among American
workers.
a. True
b. False
ANSWER: False
45. Increased business investment in facilities and equipment usually results in lower employee productivity.
a. True
b. False
ANSWER: False
46. Robots are especially effective in carrying out creative tasks and assignments.
a. True
b. False
ANSWER: False
47. CAD stands for "computer-assisted development programs."

a. True
b. False
ANSWER: False
48. FMS (an abbreviation from this chapter) stands for Ford Motor Systems.
a. True
b. False
ANSWER: False
Multiple Choice
Jasper Electronics, Inc. (JEI)

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

a. fixed position layout.
b. process layout.
c. product layout.
d. circular layout.
e. capacity layout.
ANSWER: c
50. Refer to Jasper Electronics, Inc. Which of the following objectives would you advise Ross to focus on?
a. Increasing the use of technology
b. Increasing production costs to gain competitive position
c. Improving the inspection process
d. Eliminating expenses by reducing control procedures
e. Obtaining new equipment to minimize technological expenses
ANSWER: c
51. Refer to Jasper Electronics, Inc. As an operating manager, Ross must do all of the following to be successful except
a. motivate and lead people.
b. understand how technology can make a manufacturer more productive and efficient.
c. appreciate the control processes that help lower production costs and improve product quality.
d. understand the relationship among the customer, the marketing of a product, and the production of a product.
e. understand how to successfully finance production to gain the larger market share.
ANSWER: e
52. Refer to Jasper Electronics, Inc. If JEI management were to explore the possibility of using its products in different
ways, what types of research and development activities could they engage in?
a. Quality control
b. Applied
c. Flexible
d. PERT
e. Core
ANSWER: b
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.
53. Refer to ABC Company. Given that ABC is dedicated to operations control, the management must have incorporated
all of these aspects of operations control except
Name: Class: Date:

a. purchasing.
b. selling.
c. inventory control.
d. scheduling.
e. quality control.
ANSWER: b
54. Refer to ABC Company. The supplier must have ____ in order to be the best possible option and do business with
ABC.
a. marketing operations
b. productivity growth
c. technological displacement
d. reliability
e. R&D
ANSWER: d
55. Refer to ABC Company. For ABC, using the Baldrige award criteria could result in all of the following except
a. form utility.
b. better employee relations.
c. increased market share.
d. improved profitability.
e. higher productivity.
ANSWER: a
56. Refer to ABC Company. Based on the information provided, what type of computer system is ABC Company using?
a. PERT
b. Continuous
c. CAD
d. CID
e. CPM
ANSWER: c
57. All of the managerial activities in which managers engage for the purpose of creating goods and services are known as
____ management.
a. personnel
b. operations
c. production
d. site
e. plant
ANSWER: b
58. Greg is in charge of making sure the raw steel brought into his company's factory is turned into high-quality bearings
for sale to customers. Greg is a(n) ____ manager.
a. marketing
Name: Class: Date:

b. operations
c. productivity
d. middle
e. finance
ANSWER: b
59. To produce a BMW sport-utility vehicle, an operations manager must engage in all of the following activities except
a. recruitment of human resources.
b. control of product quality.
c. effective use of planning.
d. inventory management.
e. control of production costs.
ANSWER: a
60. During the period after World War II, the United States was the most productive country in the world for
approximately ____ years.
a. five
b. ten
c. twenty
d. thirty
e. fifty
ANSWER: d
61. In an attempt to regain a competitive edge, U.S. firms have

a. reduced production costs by selecting suppliers that offer high-quality raw materials and components at
reasonable prices.
b. used green manufacturing to conserve natural resources and sustain the planet.
c. used computer-aided and flexible manufacturing systems that allow a higher degree of customization.
d. improved control procedures to help ensure lower manufacturing costs.
e. done all of the above.
ANSWER: e
62. When a lumber company takes timber and converts it into lumber, cardboard, and other paper products, the company
is using
a. an analytical process.
b. extraction manufacturing.
c. a synthetic process.
d. an operations process.
e. raw processing.
ANSWER: a
63. When a manufacturer like ExxonMobil refines crude oil, that corporation is using a(n) ____ process.
a. analytical
b. extraction
Name: Class: Date:

c. manufacturing
d. refining
e. synthetic
ANSWER: a
64. When Black & Decker manufactures its wide array of tools, it is using a(n) ____ process.
a. analytical
b. qualitative
c. synthetic
d. assembly
e. conversion
ANSWER: c
65. Kraft combines elbow macaroni, cheese, and cardboard to make packages of Kraft Macaroni and Cheese. This most
closely resembles a(n) ____ process.
a. analytical
b. assembly
c. combined
d. synthetic
e. quantitative
ANSWER: d
66. Successful operations managers must be able to do all of the following except
a. lead and motivate people.
b. use technology to make a manufacturer more productive.
c. advertise and sell the firm's product.
d. control production costs.
e. improve product quality.
ANSWER: c
67. If a good or service satisfies a human need, it has

a. value.
b. focus.
c. magnitude.
d. form.
e. utility.
ANSWER: e
68. When 3M satisfies consumers' needs for notepads that will not get lost easily by converting paper and glue into Post-It
Notes, it is creating
a. reminders for employees.
b. technological advancement.
c. productive output.
d. form utility.
Name: Class: Date:

e. possession utility.
ANSWER: d
69. The type of utility on which production and operations management focuses is ____ utility.
a. place
b. time
c. form
d. possession
e. need
ANSWER: c
70. 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
a. consumer demand.
b. market control.
c. technological dependence.
d. form utility.
e. production efficiency.
ANSWER: d
71. 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
ANSWER: e
72. When considering the conversion process, human resources in the form of hair stylists and cosmetologists are the
____ for a beauty salon.
a. magnitude
b. utility
c. focus
d. production process width
e. analytic process
ANSWER: c
73. The degree to which input resources are physically changed by the conversion is referred to as the
a. width of the conversion process.
b. magnitude of change.
c. depth of a conversion.
d. number of technologies.
e. focus of the conversion process.
Name: Class: Date:

ANSWER: b
74. 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.
a. catalyst
b. focus
c. impetus
d. magnitude
e. capacity
ANSWER: d
75. In a service industry such as a package carrier, the ____ of the conversion process is usually small or none at all.
a. focus
b. magnitude
c. width of processes
d. utility
e. result
ANSWER: b
76. Ford produces a wide variety of vehicles for individuals, businesses, manufacturers, and even schools. It also operates
its own financing division, Ford Motor Acceptance Corp. It seems as if Ford
a. focuses on financial resources.
b. has a small magnitude.
c. has few production processes.
d. has many production processes.
e. is a service business.
ANSWER: d
77. Cisco Systems manufactures computer hardware, uses software programs, and provides networking services to
customers. As a result, Cisco uses
a. research implementation.
b. more than one production process.
c. a complex magnitude of change.
d. basic research applications.
e. multiple outputs.
ANSWER: b
78. An Illinois-based firm crushes materials to make gravel, its only product. The gravel company has
a. few production processes.
b. a focus on human resources.
c. very little utility.
d. many production processes.
e. a focus on financial resources.
ANSWER: a
Name: Class: Date:
79. The American economy is now characterized as a(n) ____ economy.

a. industrial
b. centralized
c. service
d. stagnant
e. bureaucratic
ANSWER: c
80. Today approximately ____ percent of American workers are employed in service industries.
a. 28
b. 47
c. 87
d. 90
e. 94
ANSWER: c
81. Services differ from manufactured goods in all of the following ways except
a. services are consumed immediately.
b. when compared to manufactured goods, customers will not travel as far to purchase services.
c. the creation of services is usually labor-intensive.
d. services can be stored, and manufactured goods cannot be stored.
e. services are intangible, and it is therefore more difficult to measure customer satisfaction.
ANSWER: d
82. One primary difference between services and the production of goods is that services are consumed ____ whereas
goods can be ____.
a. one at a time; consumed more than one at a time
b. immediately; stored
c. intangibly; tangible or intangible
d. later; consumed now
e. as they are produced; special ordered
ANSWER: b
83. In many cases, customers will travel farther to purchase a(n) ____ than they would travel to purchase a(n) ____.
a. service; good
b. inexpensive good; expensive good
c. product; good
d. good; service
e. inexpensive service; expensive good
ANSWER: d
84. Most of the goods and services that we enjoy today can be traced back to an invention or idea that was the result of
a. customer service representatives.
Name: Class: Date:

b. research and development.
c. a whim.
d. financial management.
e. a hunch.
ANSWER: b
85. A set of activities intended to identify new ideas and technical advances that may result in new goods and services is
called
a. research and development.
b. operations management.
c. design planning.
d. product design.
e. horizon planning.
ANSWER: a
86. R&D activities aimed at disclosing new knowledge that has some potential use are known as
a. development and implementation.
b. applied research.
c. basic research.
d. product design.
e. design planning.
ANSWER: b
87. Scientists at R&E Labs worked for two years on a project to eventually add more knowledge to the science of
photography. But in a meeting with the board of directors last week, they had nothing new to report. This is always a risk
with
a. basic research.
c. development and implementation.
d. a lack of research.
e. underfunded research projects.
ANSWER: a
88. A group of design engineers for Ford Motor Company spends two months of 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
a. applied research.
b. product design.
c. basic research.
d. design planning.
e. horizon planning.
ANSWER: a
89. A government-funded group of scientists is assigned to discover new knowledge and scientific advances. These
Name: Class: Date:

scientists are not required to consider the potential use of this knowledge. This group is conducting
b. research for product life cycles.
c. applied research.
d. academic research and development.
e. basic research.
ANSWER: e
90. A team of engineers at General Motors is in charge of discovering new knowledge that can be used to make
automobiles safer and more economical. These engineers are conducting
a. basic research.
d. product development.
e. research and implementation.
ANSWER: c
91. Research activities undertaken to put new or existing knowledge to use in producing goods and services are called
c. basic research.
d. design planning.
e. product design.
ANSWER: a
92. Needles, Inc. has five of its ten products at the end of the product life cycle. To maintain its market share, the firm
must at least find ways to
a. reduce the cost of marketing its products.
b. cut manufacturing costs.
c. extend or refine the want-satisfying capability of its products.
d. reduce the number of employees.
e. increase the price of the product.
ANSWER: c
93. The television has undergone a large number of changes since its introduction. For example, Sony now produces not
only color televisions but also such innovative products as televisions that include video equipment. This sort of product
evolution is referred to as product
a. extension.
b. design planning.
c. differentiation.
d. integration.
e. expansion.
ANSWER: a

Name: Class: Date:

94. Kraft Foods began producing Jell-O over sixty years ago, and the product continues to be profitable. All of the
following are methods Kraft Foods has probably used to lengthen Jell-O's product life cycle except
a. product refinement.
b. advertising and promotion.
c. product integration.
d. research and development.
e. product extension.
ANSWER: c
95. Product extension and refinement

a. shorten the product life cycle.
b. extend the product life cycle.
c. are too costly for most firms.
d. take place during basic research.
e. end the product life cycle.
ANSWER: b
96. When Panasonic improves the sound, clarity, and ease of operation offered by its DVD player, it is
a. shortening its product life cycle.
b. extending its basic research.
c. redistributing its product.
d. refining its existing product.
e. reducing the DVD player's functionality.
ANSWER: d
97. When Nabisco introduces Oreos with half chocolate and half peanut butter cream in the middle, it is ____ its Oreos
line.
a. refining
b. implementing
c. extending
d. heavily advertising
e. applying
ANSWER: c
98. What portion of the ideas for new products, refinements, and extensions ever gets to the production stage?
a. About one-third
b. At least half
c. The majority
d. Only a few
e. About two-thirds
ANSWER: d
99. Purina has a new product idea to create a cat food that will give cats more energy and allow them to live longer.
Management appoints a team to convert this cat food idea into an actual product. This process is called
Name: Class: Date:

a. design planning.
b. process engineering.
c. operational planning.
d. product lining.
e. product refining.
ANSWER: a
100. The development of a plan for converting a product idea into an actual product is called
a. design planning.
c. product design.
d. operational planning.
e. planning horizon.
ANSWER: a
101. When Dell decided to produce and market an affordable personal computer, it had to consider a number of issues:
what the computer would look like, where and how it would be produced, what options it would include, and so on.
Supplying answers to these questions is part of
a. operational planning.
b. basic research.
d. design planning.
e. scheduling.
ANSWER: d
102. A group of similar products that differ only in relatively minor characteristics is called
a. inventory.
b. a product line.
c. product design.
d. design planning.
e. inventory control.
ANSWER: b
103. In deciding on a product line, managers should balance ____ and product requirements.
a. convenience goods
b. specialty goods
c. customer preferences
d. demographics
e. last year's sales
ANSWER: c
104. During the design planning stage for its new appliances, Torr, Inc. needs to determine how many different product
variations there will be. This is the same as determining the product
a. features.
Name: Class: Date:

b. life cycles.
c. line.
d. prices.
e. availability.
ANSWER: c
105. Because customer preferences must be considered, ____ play an important role in product-line decisions.
a. marketing managers
b. production managers
c. human resources managers
d. financial managers
e. first-line supervisors
ANSWER: a
106. When Taco Bell determines what different food items it will offer on its menu and how many it will offer, it is
deciding its
a. capacity.
b. design planning.
c. product design.
d. product life cycle.
e. product line.
ANSWER: e
107. The process of creating a set of specifications from which the product can be produced is called
a. technology.
c. design planning.
d. product design.
e. a product line.
ANSWER: d
108. 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
a. a product line.
b. development and implementation.
c. design planning.
d. product design.
e. capacity planning.
ANSWER: d
109. The amount of products or services an organization can produce in a given time is known as
a. a product line.
b. design planning.
Name: Class: Date:

c. production.
d. lead time.
e. capacity.
ANSWER: e
110. 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 ____.
a. capacity.
b. product line.
c. required annual sales.
d. lead time.
e. production flow.
ANSWER: a
111. The number of customers that an Outback Steakhouse can serve at one time is the restaurant's
a. capacity.
b. product line.
c. scope.
d. size.
e. service refinement.
ANSWER: a
112. A doctor's office allows thirty minutes for each appointment. After taking a one-hour lunch break, the doctor's office
has a(n) ____ of sixteen patients a day if it is open from 8:00 a.m. to 5:00 p.m.
a. operating maximum
b. service line
c. capacity
d. labor availability
e. service plan
ANSWER: c
113. Technology that is characterized by low initial costs and high operating costs is termed
a. a quality circle.
b. capital-intensive.
c. an industrial installation.
d. labor-intensive.
e. a process layout.
ANSWER: d
114. A situation in which people do most of the work is called

b. quality control.
c. design planning.
d. a labor-intensive technology.
Name: Class: Date:

e. a capital-intensive technology.
ANSWER: d
115. 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
a. labor-intensive technology.
b. highly automated.
c. capital-intensive technology.
d. high capacity.
e. refined product design.
ANSWER: a
116. Technology that is characterized by high initial costs and low operating costs is termed
b. capital-intensive.
c. an industrial installation.
d. labor-intensive.
e. a process layout.
ANSWER: b
117. A situation in which machines and equipment do most of the work is known as
a. high technology.
b. quality control.
c. a labor-intensive technology.
d. an industrial installation.
e. a capital-intensive technology.
ANSWER: e
118. The choice of a particular location for production facilities

a. depends solely on the transportation costs from suppliers.
b. depends entirely on the availability of skilled and unskilled workers.
c. is based entirely on the geographic locations of suppliers of parts.
d. depends mainly on the arrangement of machinery, equipment, and personnel.
e. often involves balancing the variables.
ANSWER: e
119. When Company Tech decides to produce a new product line and determines the desired capacity and use of
technology, the next step is to
a. decide how big to build the new factory.
b. hire new workers for the facility.
c. decide whether to build a new plant or refurbish an existing plant.
d. determine which of the company's existing plants is best suited to produce the new product.
e. determine what the magnitude of the conversion process will be.
Name: Class: Date:

ANSWER: c
120. A business will usually choose to produce a new product in an existing facility if the cost is less than the cost of
building a new one and the
a. type of technology needed for the new product is the same as the technology used by the existing products.
b. new product is an extension of an existing product line already produced in the factory.
c. human resources requirement for the new product and existing products can be satisfied with the facility's
current employees.
d. product design is already completed.
e. existing factory has enough capacity to handle demand for the new product as well as the existing products.
ANSWER: e
121. Abbot Laboratory is embarking on a sophisticated technology that requires special skills. To address this problem,
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.
a. financial
b. human resources
c. personnel
d. operations
e. marketing
ANSWER: b
122. A software manufacturer may seriously consider locating its facility in Silicon Valley because
a. the great amounts of electricity that it will need will be readily available.
b. the costs of construction and buildings are low in California.
c. a highly skilled labor force with technology experience will be available.
d. labor rates are likely to be lower in this part of the world than in any other.
e. California is renowned for the exceptional tax benefits packages that it offers.
ANSWER: c
123. ____ is the arrangement of machinery, equipment, and personnel within a production facility.
a. Process layout
b. Product layout
c. Resource design
d. Plant layout
e. Design planning
ANSWER: d
124. When different sequences of operations are required for creating small batches of different products, the type of
design or layout used is the
a. product design.
b. product layout.
c. process layout.
d. quota layout.

Name: Class: Date:

e. output layout.
ANSWER: c
125. Phil Johnson is the owner of a small firm that manufactures customized oil-drilling equipment. The company's
manufacturing facility is organized into a fabrication section, a heat treatment section, a welding section, and a quality
control section. This type of plant layout is referred to as a(n) ____ layout.
a. product
b. pooled manufacturing
c. assembly-line
d. group manufacturing
e. process
ANSWER: e
126. A product layout is often referred to as a(n)

a. fixed-position layout.
b. output layout.
c. fixed capacity.
d. work-cell formation.
e. assembly line.
ANSWER: e
127. When all products undergo the same operations in the same sequence, a(n) ____ is used.
a. product design
b. product layout
c. process layout
d. output layout
e. fixed layout
ANSWER: b
128. In a shoe manufacturing plant, all shoes undergo the same operations in the same sequence. The shoes flow from one
workstation to the next. This is a(n) ____ layout.
a. output
b. fixed-position
c. product
d. process
e. work-cell
ANSWER: c
129. When a very large product that is hard to move is produced, a(n) ____ is used.
a. product design
b. product layout
c. process layout
d. output layout
e. fixed-position layout
Name: Class: Date:

ANSWER: e
130. A Boeing factory in Everett, Washington, manufactures 787 Dreamliner jet aircrafts. What type of layout is most
likely in this factory?
a. Output
b. Fixed-position
c. Product
d. Process
e. Cell-rotation
ANSWER: b
131. Which of the following products is most likely to require a fixed-position layout?
a. Automobile
b. Canoe
c. Clothing
d. Ship
e. Computer
ANSWER: d
132. The objective of ____ is to decide on the amount of products or services each facility will produce during a specified
period of time.
a. design planning
b. strategic planning
c. operational planning
d. capacity planning
e. output specification
ANSWER: c
133. The period of time over which an operational plan will be in effect is known as a
a. planning horizon.
b. fiscal period.
c. quality circle.
d. process layout.
e. research period.
ANSWER: a
134. Generally, a planning horizon lasts for one

a. week.
b. month.
c. quarter.
d. year.
e. decade.
ANSWER: d

Name: Class: Date:

135. The executives and operations specialists for Hyster, an industrial equipment manufacturer, meet and determine the
operational plan for the next two years. Two years is Hyster's
a. planning time frame.
b. goal outlook.
c. operational time plan.
d. span of operational management.
e. planning horizon.
ANSWER: e
136. Which of the following is not one of the steps in operational planning?
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 demand
ANSWER: b
137. The quantity that customers will purchase at the going price is called the
a. economic demand.
b. market demand.
c. capacity.
d. consumer need.
e. inventory.
ANSWER: b
138. Marketing managers at Hasbro estimate that they will be able to sell 250,000 units of their Trivial Pursuit board
game in the upcoming year if the price is kept the same. In this situation, 250,000 is the ____ for Trivial Pursuit games.
a. capacity
b. consumer demand
c. market demand
d. required supply
e. level of production
ANSWER: c
139. During the process of operational planning, management must compare market demand with
a. market supply.
b. consumer demand.
c. planned supply.
d. available human resources.
e. capacity.
ANSWER: e
140. All of the following options are available to a firm when capacity exceeds demand except to
a. lay off workers and shut down a portion of the facility.
Name: Class: Date:

b. operate on a shorter work week.
c. produce other goods or services.
d. sell unused facilities.
e. give away some of the products to selected customers.
ANSWER: e
141. When demand exceeds capacity, all of the following are reasonable options for the firm except
a. operating overtime hours to meet the demand.
b. starting a second or third shift.
c. subcontracting part of the work to other producers.
d. turning away some long-time customers.
e. expanding the capacity of the current facility.
ANSWER: d
142. When New Coke was introduced, it failed miserably in the market. After removing it from its product line, what did
Coca-Cola most likely do with the capacity devoted to producing this product?
a. Shift the excess capacity to the production of other soft-drink products
b. Eliminate the excess capacity by selling all New Coke facilities
c. Fire all the employees involved with the production of New Coke
d. Subcontract the production of New Coke to another producer
e. Decrease the work week of its production line employees
ANSWER: a
143. Like many firms in the electronics industry, Godin Manufacturing experiences ups and downs in the demand for its
high-tech products. To increase capacity during high-demand periods, management would do all of the following except
a. change from one shift to two shifts a day.
b. lower the prices that customers pay.
c. open a new plant.
d. approve overtime for existing employees.
e. subcontract a portion of the work to other producers.
ANSWER: b
144. Operations control includes all of the following except

a. scheduling.
b. inventory control.
c. basic research.
d. purchasing.
e. quality control.
ANSWER: c
145. All of the activities involved in obtaining required materials, supplies, and parts from other firms are called
a. inventory scheduling.
b. purchasing.
Name: Class: Date:

d. scheduling.
e. product design.
ANSWER: b
146. Billy is in charge of obtaining the flour, sugar, and other ingredients needed for her employer, Baker's Café. Billy is
in charge of
a. procurement.
b. corporate buying.
c. purchasing.
d. inventory control.
e. shopping.
ANSWER: c
147. Which of the following is the objective of purchasing?

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 quality.
ANSWER: b
148. Carol was recently fired from her job as a purchaser for a grocery store. She was told the reason for her dismissal was
the almost continuous rotting of large amounts of produce and meat while in the stockroom awaiting sale in the store.
Which objective of purchasing did Carol fail to accomplish?
a. She failed to make sure the materials needed were in the proper amounts.
b. She failed to secure the needed materials at minimum cost.
c. She failed to obtain the materials needed before they were needed.
d. She ordered the wrong materials for her company.
e. She failed to purchase the best quality of materials available.
ANSWER: a
149. 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
a. produces poor quality.
b. has bad credit terms.
c. is unreliable.
d. is not as inexpensive as he thought.
e. is unscheduled.
ANSWER: c
150. 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.
Name: Class: Date:

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 consider the quality of life for employees and management in the proposed location.
e. Purchasers should focus on having only one supplier for each material needed.
ANSWER: e
151. ____ include(s) stocks of completed goods, work in process, and raw materials.
a. Supplies
b. Holding goods
c. Inventories
d. Processed goods
e. Stock
ANSWER: c
152. Steinway, a company that produces concert quality grand pianos, has ivory in storage waiting to be made into piano
keys. This ivory is classified as
a. finished-goods inventory.
b. materials requirements planning.
c. raw-materials inventory.
d. work-in-process inventory.
e. raw supplies.
ANSWER: c
153. Products that have been partially completed but require further processing are known as ____ inventory.
a. raw-materials
b. work-in-process
c. finished-goods
d. component-parts
e. processed-goods
ANSWER: b
154. A group of athletic shoes in a shoe factory are partially completed but still lack their innersoles and shoestrings.
These shoes are classified as
a. work-in-process inventory.
b. materials inventory.
c. partially-controlled inventory.
d. finished-goods inventory.
e. ready for sale.
ANSWER: a
155. ____ consist(s) of goods that are awaiting shipment to customers.

a. Raw-materials inventory
b. Work-in-process inventory
c. Finished-goods inventory
Name: Class: Date:

d. Supplies
e. Controlled inventory
ANSWER: c
156. Ford cars and trucks are completed and ready for delivery to customers. Because of this, they are classified as
a. raw materials.
b. finished goods.
c. goods in waiting.
d. production inventory.
e. delivered goods.
ANSWER: b
157. What are the two types of costs associated with inventory?
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 costs
ANSWER: b
158. The Acme Toy Company introduced a new electric train, the Silver Bullet, in its Christmas catalog last year. Within
four days of the catalog's mailing date, Acme had received phone orders for its entire inventory of trains. Jeff Murrah, the
sales manager responsible for the Silver Bullet, was delighted with the product's success. However, his excitement was
overshadowed by the ____ cost resulting from lost sales that his division would suffer.
a. variable
b. stock-out
c. opportunity
d. fixed
e. holding
ANSWER: b
159. A computerized system that integrates production planning and inventory control is called
a. computerized inventory management.
b. just-in-time record keeping.
c. materials requirements planning.
d. support inventory control.
e. inventory control management.
ANSWER: c
160. The just-in-time inventory system focuses on minimizing

a. scheduling.
b. materials resource planning.
c. stock-out costs.
d. customer complaints.
Name: Class: Date:

e. storage and holding costs.
ANSWER: e
161. Harley-Davidson employs a method of inventory control demanding that suppliers deliver parts and raw materials to
Harley's production facility just as they are needed and in exactly the right amounts. This type of inventory control is
known as
a. purchase planning.
b. flexible manufacturing.
c. just-in-time inventory control.
d. PERT.
e. supplier-based inventory control.
ANSWER: c
162. Arbach's responsibility is to ensure that materials used in production are at the right place at the right time. His job
involves
a. quality control.
b. lead time planning.
d. scheduling.
e. design planning.
ANSWER: d
163. As a scheduler, Wanda is concerned with the sequence of workstations that the materials will follow. This
sequencing is called
a. product flow.
b. critical path.
d. routing.
e. timing.
ANSWER: d
164. The ____ function specifies when the materials will arrive at each station and how long they will remain there.
a. routing
b. timing
c. efficient manufacturing
d. tactical
e. analysis
ANSWER: b
165. To ensure that work flows according to schedules, operations managers use a procedure called
a. cycle control.
b. equilibrium control.
c. inspection.
d. monitoring and evaluation.
Name: Class: Date:

e. follow-up.
ANSWER: e
166. 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.
a. Total Quality Management Award
b. Malcolm Baldrige National Quality Award
c. Boeing Productivity Award
d. National Quality Circle Award
e. Horatio Alger Award
ANSWER: b
167. The process of checking and testing products to ensure that they meet specifications is called
a. inventory control.
b. quality control.
c. quality inspection.
d. assurance.
e. check pointing.
ANSWER: b
168. Sarah regularly spends an entire working day ensuring that goods and services are produced in accordance with
design specifications. Obviously ____ is important in her company.
a. product design
b. design planning
c. quality control
d. inventory control
e. operations control
ANSWER: c
169. The examination of work in process for the purpose of controlling quality is called
a. quality control.
b. inspection.
d. quality circle.
e. product design.
ANSWER: b
170. Thad is in charge of examining the quality of work in process at a furniture factory. Thad's duty is referred to as
a. inventory control.
b. process control.
c. critical review.
d. designing.
e. inspection.
ANSWER: e
Name: Class: Date:
171. Companies that emphasize the importance of output inspection and quality circles are making an effort to improve
a. production standards.
b. operations control.
d. preventive maintenance.
e. quality control.
ANSWER: e
172. A hardware manufacturer uses total quality management and quality circles to ensure that all employees are involved
with and are responsible for quality. By doing this, the hardware manufacturer can eliminate the need for
a. quality control.
b. inspection.
c. scheduling.
d. supervisors.
e. materials requirement planning.
ANSWER: b
173. ____ is a disciplined approach that relies on statistical data and improved methods to eliminate defects from a firm's
products and services.
a. Six Sigma
b. Quality Magic
c. The National Quality Program
d. The Total Management Program
e. Employee Participation Now Program
ANSWER: a
174. Deborah works for Northrop Grumman Corporation. She is assigned to a group of employees who work on solving
quality issues the company is facing. Deborah participates in a(n)
a. quality circle.
b. employee group.
c. total quality management program.
d. inspection control group.
e. quality review committee.
ANSWER: a
175. American major appliance manufacturers have recently adopted a strategy that calls for better quality in their
products. One method of implementing this strategy at the operations level is through
a. innovation circles.
b. a Gantt chart.
c. PERT.
d. quality circles.
e. another layer of resourceful managers.
ANSWER: d
Name: Class: Date:
176. Which of the following statements is false?

a. Quality and productivity have often been viewed as conflicting goals.
b. Over the years, a number of managers have realized that quality is an essential ingredient of the good or
service being manufactured.
c. Quality has become an overall approach to doing business.
d. For most businesses, quality costs too much money.
e. Making products right the first time reduces many of the rejects and much of the rework.
ANSWER: d
177. Which of the following statements is true?

a. ISO is Greek for "unacceptable."
b. ISO 9000 sets guidelines for quality management procedures.
c. ISO 9000 is accepted more in Japan than in the United States or Europe.
d. ISO 14000 is a system used to notify customers who have purchased unsafe products from manufacturers in
foreign nations.
e. Although ISO 9000 was popular in the early 1990s, it has been replaced with ISO 20000.
ANSWER: b
178. What is the primary difference between ISO 9000 and ISO 14000?
a. More organizations have adopted ISO 14000.
b. ISO 9000 is more focused on employee compensation.
c. ISO 14000 involves environmental concerns.
d. ISO 9000 is used only in Europe; ISO 14000 is used worldwide.
e. ISO 14000 is used for service businesses instead of manufacturers.
ANSWER: c
179. Productivity is the

a. highest level of output for the best worker.
b. average level of output per worker.
c. lowest level of output for all hourly workers.
d. average level of output for workers with at least five years of experience.
e. average level of output for a randomly selected group of employees.
ANSWER: b
180. Which of the following is not a possible cause of only a small increase in America's recent productivity growth rate?
a. The economic crisis in banking and finance
b. A downturn in home construction and automobile industries
c. Increased investment in new equipment
d. Increased government regulation
e. The tremendous growth in the service industry
ANSWER: c
181. The American petroleum refining industry has experienced serious productivity declines in the past several years. If
Name: Class: Date:

the industry is to reverse this trend, companies such as Chevron and ExxonMobil, in addition to the government, must
take an active role in stimulating productivity. All of the following represent ways to improve productivity except
a. change in government policies that hinder productivity.
b. participative management.
c. changing work incentives.
d. increased government regulation.
e. improved relations between union and management.
ANSWER: d
182. The Motorola Corporation has begun a program that promises to improve employee motivation. This is an example
of a way to ____ productivity.
a. decrease
b. retard
c. increase
d. eliminate
e. stifle
ANSWER: c
183. Robotics is the use of programmable machines to perform a variety of tasks by manipulating
a. people and machines.
b. machines and tools.
c. materials and people.
d. materials and tools.
e. tools and financing.
ANSWER: d
184. Jennifer is a manager in a circuit manufacturing plant. A portion of the production process is extremely tedious and
repetitive, and employees tend to become bored and careless when performing this task. What alternative could make this
repetitive task quicker and less susceptible to error?
a. Quality circles
b. Computer-aided design
c. Flexible rotation
d. Robotics
e. Automated process control
ANSWER: d
185. Nancy Malone works for a California-based computer manufacturer. According to Nancy, the time required to
develop a new product has decreased because of the increased use of ____ software.
a. CAB
b. CAD
c. CAP
d. CAM
e. FMS
ANSWER: b
Name: Class: Date:
186. Liz Claiborne, Inc. has a system that combines the use of computers to aid in the development of products and the
use of computers to plan and control manufacturing processes. What is this combined system called?
a. Computer-aided design
b. Computer-integrated manufacturing
c. Flexible marketing
d. Computer-aided manufacturing
e. Computer robotics
ANSWER: b
187. FMS allows a company to combine ____ into a single system.

a. people and robotics
b. robots and digital personal computers
c. robotics and computer-integrated manufacturing
d. people and materials
e. robots and materials
ANSWER: c
188. Deere and Company, the maker of John Deere tractors, was one of the first firms to combine robotics and computer-
integrated manufacturing. By doing this, it achieved more efficiently utilized facilities and greater flexibility in
production. The method of production that has given Deere these tremendous improvements in operations is known as
a. just-in-time inventory management.
b. flexible manufacturing.
c. PERT.
d. short cycle manufacturing.
e. Theory Z.
ANSWER: b
189. Meadowlark Medical Offices noticed that appointments taken by receptionists resulted in a lag between patients
arriving, checking-in, being directed to an open treatment room, and the doctor being notified that they were in the
treatment room waiting. To eliminate this lag, an electronic check-in system was installed. Patients now enter their
information in the computer in the waiting room and all of the other functions are handled electronically with the
receptionist only required to open the door, greet the patient, and walk them to the treatment room. When the treatment
room door closes, a light above the door notifies the staff that the room is occupied. This is an example of a way to _____
productivity.
a. increase
b. eliminate
c. decrease
d. stifle
ANSWER: a
190. Harrison Home Builders is evaluating the way certain parts of homes are manufactured as drop-in components. It
would like to eliminate waste from the process to increase profits. Harrison Home Builders is seeking to apply _____ to
the home building process.
a. lean manufacturing

Name: Class: Date:

b. productivity trends
c. automation
d. invention
ANSWER: a
191. Machines are used for almost all of the computer chip manufacturing process. These companies are said to be _____
companies.
a. automated
b. lean manufacturing
c. productive
d. anti-human
ANSWER: a
192. _____ are used to assemble machinery, weld joints, and a variety of other tasks by manipulating materials and tools.
a. robots
b. tools
c. droids
d. computer-aided design machines
ANSWER: a
193. _____ programs are used to develop products.

a. Computer-aided design (CAD)
b. Computer-aided manufacturing (CAM)
c. Computer-integrated manufacturing (CIM)
d. Computer-generated mistakes (CGM)
ANSWER: a
194. Ray’s ATV Parts used _____ to design customized products and control the machinery needed to produce the
finished product.
a. computer-aided manufacturing (CAM)
b. computer-aided design (CAD)
c. computer-integrated manufacturing (CIM)
d. computer generated mistakes (CGM)
ANSWER: a
195. Large shoe manufacturing companies such as Nike and Adidas most likely use ____ to help design shoes and to
control the machinery needed to produce the finished product.
a. computer-integrated manufacturing (CIM)
b. computer-aided design (CAD)
c. computer-generated mistakes (CGM)
d. computer-aided manufacturing (CAM)
ANSWER: a
196. A nut and bolt manufacturer makes the same products over a long period of time. These companies can use _____
Name: Class: Date:

manufacturing.
a. continuous process
b. flexible manufacturing system (FMS)
c. intermittent process
d. continuous customer-driven production
ANSWER: a
197. Starbucks strives to make its cups from recyclable materials, to give back to the communities where it has stores, to
aid the communities where the coffee beans are harvested, and to reduce its environmental impact. Starbucks promotes
a. sustainability.
b. productivity.
c. displacement.
d. flexibility.
ANSWER: a
198. Hallmark has a line of cards that is made of recyclable materials and has flower seeds pressed into the paper so once
a person has read the card, they can plant it. With this new product line, Hallmark is attempting to achieve _____.
a. sustainability
b. productivity
c. displacement
d. flexibility
ANSWER: a
Essay
199. What activities does operations management involve?

ANSWER: Operations management consists of all activities required to produce goods and services. Research and
development, planning production, controlling operations, managing product quality, purchasing and
monitoring inventory, managing production costs, and using technology to improve productivity are all
activities of operations.
200. Briefly assess the good and bad news of the current U.S. manufacturing environment.
ANSWER: The bad news is that many manufacturing jobs have been outsourced to low-wage workers in overseas
countries, the cost of U.S. manufacturing is approximately 20 percent higher, and the number of unemployed
factory workers increased during the recent economic crisis.
The good news is that U.S. manufacturers produce approximately 18 percent of total global manufacturing
output and contribute approximately $2 trillion to the U.S. economy each year. Also, manufacturing exports
are nearly 60 percent of all U.S. exports, and it is anticipated that there will be 2 million job openings in
manufacturing through 2018. Finally, for every manufacturing job created, there are another three jobs
created in the supply chain, the trucking industry, and other related areas of the economy.
201. What is meant by the magnitude of a conversion process?

ANSWER: The magnitude of a conversion process is the degree to which the resources are physically changed. There is a
wide range of magnitude. At one extreme is taking raw materials and changing them into something
completely unrecognizable when turned into a final product. At the other extreme is a service such as airline
service that produces no physical change.
Name: Class: Date:
202. Explain how the production of services is different from the production of manufactured goods.
ANSWER: Customers are more involved in obtaining the services they want when compared to manufactured products.
Services are consumed immediately unlike products. Most often, services are provided when and where
customers desire them; products are not. Services are usually labor-intensive. Services are intangible and,
therefore, it is more difficult to evaluate customer satisfaction.
203. Provide an example of a product that has refined the want-satisfying capability of its product and a second product
that has extended the capability of its product.
ANSWER: Answers will vary. Television sets have been continually refined so that they provide a clearer, sharper picture
with less dial adjusting. Computers could also be an example of a product that has been refined. Television
sets have also been extended in that there are now TVs with DVDs, Blu-Ray players, and Internet streaming.
Computers also come with a wide variety of attached and integrated devices.
204. Define design planning. How does it differ from operational planning?
ANSWER: Design planning is the development of a plan for converting an idea into an actual product or service. Design
planning is a bigger, overall plan of converting an idea into a reality whereas operational planning is a smaller
plan that provides finer details at a more specific level of deciding on the amount of products or services each
production facility will produce during a specific time period.
205. Compare and contrast the ideas of labor-intensive and capital-intensive technology.
ANSWER: Labor-intensive technology is a process in which people must do most of the work and capital-intensive
technology is a process in which machines and equipment do most of the work. The contrast is between
human resources or equipment and technology. Student answers may also include information about the cost
of labor and capital intensive technology. Typically, capital-intensive technology has high initial costs and
lower operating costs. On the other hand, labor-intensive technology has low initial costs and higher operating
costs.
206. When does a firm incur holding costs? When does it incur stock-out costs?
ANSWER: Holding costs, or storage costs, are incurred when a purchased item arrives and must be stored as inventory.
Stock-out costs are the cost a business experiences when it runs out of inventory. That cost occurs when an
item is not physically in stock in inventory.
207. How do routing and timing affect the scheduling process for a furniture manufacturer like Drexel-Heritage?
ANSWER: Routing of materials is the sequence of workstations that raw materials and work in process will follow.
Operations managers route needed wood for a Drexel-Heritage chair through workstations along an assembly
line, with the table finally ending up at finished goods inventory. Timing specifies when the wood, for
example, will arrive at each workstation and how long it will remain there.
208. What is the purpose of quality control? Why is it important to a firm?

ANSWER: The purpose of quality control is to ensure that goods and services are produced in accordance with design
specifications. The primary objective is to see that the organization lives up to the standards it has set for itself
on quality. For many firms, their reputation is one of quality, so strict quality control is essential. Other firms
adopt a strategy of emphasizing lower prices along with reasonable (but not particularly high) quality.
209. What does improving productivity mean? How can a manufacturing or service business improve productivity?
Name: Class: Date:

ANSWER: Improving productivity refers to improving the average level of output per worker per hour. Lean
manufacturing, a concept built on the idea of eliminating waste from all production activities, is one way to
improve productivity. Benefits include a reduction in resource usage, more efficient use of employee time,
improved quality, and increased profits.
210. What advantages do robots have over human workers? What advantages do human workers have over robots?
ANSWER: Robots work quickly, accurately, and steadily. Robots are well designed for tedious, repetitive tasks and robots
can easily handle hazardous materials. Robots work at a much lower cost than do human workers. Robots can
also be used to check the quality of products as they are being processed on an assembly line. Human workers
tire, are not as consistent, and cost more over a long period of time.
211. Describe the operations of a flexible manufacturing system (FMS).

ANSWER: A flexible manufacturing system (FMS) combines electronic machines and computer-integrated
manufacturing in a single production system. A factory with an FMS does not have to be retooled for each
new product; instead, the FMS factory can be rearranged by reprogramming electronic machines to
accommodate new products. Smaller batches of product can also be produced with less production cost than a
traditional factory.
Visit TestBankBell.com to get complete for all chapters

Test Bank For Foundations of Business 5th by Pride Download

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Test Bank For Foundations of Business 5th by Pride Download

Uploaded by

Copyright:

Available Formats

Test Bank for Foundations of Business 5th by Pride

Test Bank for Foundations of Business 5th by Pride

To download the complete and accurate content document, go to:

Visit TestBankBell.com to get complete for all chapters

Chapter 08: Producing Quality Goods and Services

6. An analytical process breaks raw materials into different component parts.

8. A synthetic process combines raw materials or components to create a finished product.

Chapter 08: Producing Quality Goods and Services

Copyright Cengage Learning. Powered by Cognero. Page 2

Chapter 08: Producing Quality Goods and Services

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

25. An assembly line at a Rubbermaid production facility is an example of a product layout.

Chapter 08: Producing Quality Goods and Services

26. A common planning horizon for operational plans is one year.

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

Copyright Cengage Learning. Powered by Cognero. Page 4

Chapter 08: Producing Quality Goods and Services

Chapter 08: Producing Quality Goods and Services

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

47. CAD stands for "computer-assisted development programs."

Jasper Electronics, Inc. (JEI)

Chapter 08: Producing Quality Goods and Services

Chapter 08: Producing Quality Goods and Services

Chapter 08: Producing Quality Goods and Services

61. In an attempt to regain a competitive edge, U.S. firms have

Chapter 08: Producing Quality Goods and Services

67. If a good or service satisfies a human need, it has

Chapter 08: Producing Quality Goods and Services

Chapter 08: Producing Quality Goods and Services

Chapter 08: Producing Quality Goods and Services

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

Chapter 08: Producing Quality Goods and Services

Chapter 08: Producing Quality Goods and Services

Copyright Cengage Learning. Powered by Cognero. Page 15

Chapter 08: Producing Quality Goods and Services

95. Product extension and refinement

Chapter 08: Producing Quality Goods and Services

Chapter 08: Producing Quality Goods and Services

Chapter 08: Producing Quality Goods and Services

114. A situation in which people do most of the work is called

Chapter 08: Producing Quality Goods and Services

118. The choice of a particular location for production facilities

Chapter 08: Producing Quality Goods and Services

Copyright Cengage Learning. Powered by Cognero. Page 21

Chapter 08: Producing Quality Goods and Services

126. A product layout is often referred to as a(n)

Chapter 08: Producing Quality Goods and Services

134. Generally, a planning horizon lasts for one

Copyright Cengage Learning. Powered by Cognero. Page 23

Chapter 08: Producing Quality Goods and Services

Chapter 08: Producing Quality Goods and Services

144. Operations control includes all of the following except

Chapter 08: Producing Quality Goods and Services

147. Which of the following is the objective of purchasing?

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

Chapter 08: Producing Quality Goods and Services

155. ____ consist(s) of goods that are awaiting shipment to customers.

Chapter 08: Producing Quality Goods and Services

160. The just-in-time inventory system focuses on minimizing

Chapter 08: Producing Quality Goods and Services

Chapter 08: Producing Quality Goods and Services

Chapter 08: Producing Quality Goods and Services

Chapter 08: Producing Quality Goods and Services