Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 11—Producing Goods and Services
80. In which of the following layouts are people and equipment set up to produce only one type of
good and are rearranged according to its production requirements?
a. Product
b. Cellular
c. Customer
d. Process
e. Fixed-position
Difficulty: 2 Page-Reference: 354
Question ID: 11-1-80 Skill: Knowledge
Objective: 11.4
81. A production system that allows a single factory to produce a wide variety of products is called
a(n)
a. assembly line.
b. cellular system.
c. flexible manufacturing system.
d. methods improvement system.
e. soft manufacturing.
Difficulty: 1 Page-Reference: 356
Question ID: 11-1-81 Skill: Knowledge
Objective: 11.4
82. Nissan, Toyota, and Honda now build several different models of cars using the same basic
“platform.” This is an example of
a. process layout.
b. soft manufacturing.
c. flexible manufacturing systems.
d. the movable factory.
e. quality control.
Difficulty: 2 Page-Reference: 356
Question ID: 11-1-82 Skill: Comprehension
Objective: 11.4
83. The step-by-step examination of procedures in order to reduce waste and inefficiency is called
a. assembly line improvement.
b. process improvement.
c. methods improvement.
d. quality improvement.
e. procedures improvement.
Difficulty: 1 Page-Reference: 358
Question ID: 11-1-83 Skill: Knowledge
Objective: 11.4
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 11—Producing Goods and Services
84. Which of the following is a reason for conducting a service flow analysis?
a. A good service flow analysis reduces the perishability of the service.
b. A good service flow analysis permits the manager to plan for peak capacity.
c. Each process is a potential contributor of good or bad service; therefore, all processes must be
known.
d. A good service flow analysis identifies only wasteful activities.
e. A good service flow analysis attracts customers to the facility.
Difficulty: 2 Page-Reference: 359
Question ID: 11-1-84 Skill: Comprehension
Objective: 11.4
85. By showing the flow of processes that make up a given service, ________ helps managers
decide whether every process is needed.
a. service flow analysis
b. process analysis
c. a PERT chart
d. operations control
e. a Gantt chart
Difficulty: 2 Page-Reference: 359
Question ID: 11-1-85 Skill: Knowledge
Objective: 11.4
86. Service flow analysis is
a. a spatial arrangement of production facilities designed to move families of products through
similar flow paths.
b. a spatial arrangement of production activities designed to make one type of product in a fixed
sequence.
c. a production system in which a single factory uses automation to produce a wide variety of
products.
d. a spatial arrangement of production activities that groups equipment and people according to
function.
e. a method for analyzing a service by showing the flow of processes that constitutes it.
Difficulty: 2 Page-Reference: 359
Question ID: 11-1-86 Skill: Knowledge
Objective: 11.4
87. Once plans identify needed resources and how they will be used to reach a firm’s goals,
managers must develop timetables for acquiring resources for production. This aspect of operations is
called
a. resourcing.
b. planning.
c. timing.
d. controlling.
e. scheduling.
Difficulty: 1 Page-Reference: 360
Question ID: 11-1-87 Skill: Knowledge
Objective: 11.5
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 11—Producing Goods and Services
88. The schedule that shows which products will be produced, when production will occur, and what
resources will be used during specified time frames is called a(n)
a. inventory control schedule.
b. master production schedule.
c. control chart.
d. short-term detailed production schedule.
e. material requirements plan.
Difficulty: 2 Page-Reference: 361
Question ID: 11-1-88 Skill: Knowledge
Objective: 11.5
89. Which of the following would not be shown on the master production schedule?
a. Identification of resources to be used
b. Dates of production
c. Shipping dates
d. Identification of products to be produced
e. How many of each product will be produced
Difficulty: 2 Page-Reference: 361
Question ID: 11-1-89 Skill: Comprehension
Objective: 11.5
90. A(n) ________ chart is a production schedule diagramming the steps in a project and specifying
the time required for each.
a. MRP II
b. lead time
c. Gantt
d. Simon
e. PERT
Difficulty: 1 Page-Reference: 362
Question ID: 11-1-90 Skill: Knowledge
Objective: 11.5
91. Using a ________ chart, managers list all the activities needed to complete a job, estimate the
time required for each step, and check the progress of the project against the chart.
a. lead time
b. PERT
c. Simon
d. MRP II
e. Gantt
Difficulty: 2 Page-Reference: 362
Question ID: 11-1-91 Skill: Knowledge
Objective: 11.5
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 11—Producing Goods and Services
92. A ________ chart is a production schedule specifying the sequence and critical path for
performing the steps in a project.
a. MRP II
b. lead time
c. Gantt
d. Simon
e. PERT
Difficulty: 1 Page-Reference: 362
Question ID: 11-1-92 Skill: Knowledge
Objective: 11.5
93. What is the meaning of “operations control”?
a. Planning and organizing the flow of materials
b. Purchasing the right raw materials, in the right quantity, at the right price, and at the right time
c. Checking to ensure that production decisions are being implemented
d. Stocking items needed for production that are themselves produced within the firm
e. Monitoring production performance by comparing results with plans and schedules
Difficulty: 2 Page-Reference: 362
Question ID: 11-1-93 Skill: Knowledge
Objective: 11.5
94. Betty is a production supervisor in a leather goods factory. Her main responsibility is operations
control. Betty would probably be most concerned with
a. determining what products to produce.
b. deciding how to produce products.
c. deciding on product pricing.
d. ensuring that production plans or schedules are met.
e. deciding where to produce the products.
Difficulty: 2 Page-Reference: 363
Question ID: 11-1-94 Skill: Comprehension
Objective: 11.5
95. What are the two primary sub-areas of operations control?
a. Purchasing and inventory control
b. Materials management and purchasing
c. Just-in-time inventory systems and PERT charts
d. Material management and production process control
e. Inventory control and materials inventory
Difficulty: 1 Page-Reference: 363
Question ID: 11-1-95 Skill: Knowledge
Objective: 11.5
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 11—Producing Goods and Services
96. Planning, organizing, and controlling the flow of materials from design through distribution of
finished goods is
a. quality control.
b. material requirements planning.
c. statistical process control.
d. materials management.
e. inventory planning and control.
Difficulty: 1 Page-Reference: 363
Question ID: 11-1-96 Skill: Knowledge
Objective: 11.5
97. The use, where possible, of uniform components in the production process is
a. uniform component control.
b. optimized inventory control.
c. component management.
d. standardization.
e. component optimization.
Difficulty: 1 Page-Reference: 363
Question ID: 11-1-97 Skill: Knowledge
Objective: 11.5
98. Tom is concerned with the storage of both incoming materials for production and finished goods
for distribution to customers. Tom’s job is most likely in the ________ area.
a. inventory control
b. purchasing
c. transportation
d. warehousing
e. quality control
Difficulty: 2 Page-Reference: 363
Question ID: 11-1-98 Skill: Knowledge
Objective: 11.5
99. Ed’s job responsibilities include the receiving, storing, handling, and counting of all raw materials.
He is probably in the ________ function.
a. inventory control
b. transportation
c. quality control
d. warehousing
e. purchasing
Difficulty: 2 Page-Reference: 364
Question ID: 11-1-99 Skill: Knowledge
Objective: 11.5
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 11—Producing Goods and Services
100. John’s job responsibilities include the acquisition of all the raw materials and services that the
company needs to produce its products. He is most likely in the ________ function.
a. warehousing
b. transportation
c. quality control
d. inventory control
e. purchasing
Difficulty: 2 Page-Reference: 364
Question ID: 11-1-100 Skill: Knowledge
Objective: 11.5
101. Laine’s job responsibilities include evaluating potential suppliers, negotiating terms of service,
and maintaining positive buyer-seller relationships. He is most likely in the ________ function.
a. inventory control
b. warehousing
c. supplier selection
d. transportation
e. quality control
Difficulty: 1 Page-Reference: 364
Question ID: 11-1-101 Skill: Knowledge
Objective: 11.5
102. What does a just-in-time production system attempt to accomplish?
a. Materials and parts needed at each production step are brought together at the right time
b. Attempts to control the overall production process
c. Shows when production must be completed to satisfy consumer demand just-in-time
d. Shows the critical path where production problems will be the most damaging to the schedule
e. Breaks down the production process into steps necessary for completion
Difficulty: 2 Page-Reference: 365
Question ID: 11-1-102 Skill: Comprehension
Objective: 11.5
103. What advantages are obtained from the use of a just–in-time inventory system?
a. Suppliers can be less quality conscious and thus will have lower costs
b. The production system becomes an intermittent process
c. The warehousing function increases in importance
d. The number of goods in process is drastically reduced
e. Quality of finished products increases
Difficulty: 2 Page-Reference: 365
Question ID: 11-1-103 Skill: Comprehension
Objective: 11.5
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 11—Producing Goods and Services
104. Top managers at Keep It Clean Inc., which produces and sells home-care cleaning products,
are looking for ways to improve the supply chain. One idea that has been mentioned by several
managers is a just–in-time logistics system. If the following facts were known, which one would weaken
the argument for the shift to a just–in-time logistics system?
a. When companies carry too much inventory, they incur higher-than-necessary inventory-carrying
costs.
b. Under a system of just-in-time logistics, the company would only have inventory only a few days of
operations.
c. The company’s most important suppliers prefer a flexible supply schedule.
d. Implementing just-in-time logistics would require an extensive overhaul of the existing supply chain.
e. Demand for Keep It Clean’s products is stable and predictable.
Difficulty: 2 Page-Reference: 365
Question ID: 11-1-104 Skill: Analysis
Objective: 11.5
105. Top managers at Keep It Clean Inc., which produces and sells home-care cleaning products,
are looking for ways to improve the supply chain. One idea that has been mentioned by several
managers is a just–in-time logistics system. If the following facts were known, which one would strengthen
the argument for the shift to a just–in-time logistics system?
a. The company’s storage and handling costs are significant.
b. The company’s suppliers have not adopted just-in-time systems.
c. Higher inventory levels are evident in the summer than they are in the winter under the current
system.
d. Demand for the company’s products varies depending on the promotional strategies of its retail
partners.
e. The company’s leading brand has many strong competitors.
Difficulty: 2 Page-Reference: 365
Question ID: 11-1-105 Skill: Analysis
Objective: 11.5
106. Top managers at Keep It Clean Inc., which produces and sells home-care cleaning products,
are looking for ways to improve the supply chain. One idea that has been mentioned by several
managers is a just–in-time logistics system. Which of the following questions is the LEAST relevant to the
issue of whether the company should switch to a just–in-time logistics system?
a. Is demand for the company’s products predictable?
b. Can suppliers guarantee fast, frequent, and flexible delivery?
c. Is the appropriate technology available to manage the just–in-time system?
d. Do users of the company’s products favour making the transition?
e. Does the company have accurate information about customer demand?
Difficulty: 2 Page-Reference: 365
Question ID: 11-1-106 Skill: Analysis
Objective: 11.5
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 11—Producing Goods and Services
107. A senior executive at Keep It Clean claims that a move to a just–in-time logistics is ill-advised
because the change would not be noticed by customers, and because the proposed system violates the
company’s goal of being “customer-focused.” What is the most accurate criticism of the executive’s
position?
a. You can’t prove that focusing on the customer helps an organization become successful.
b. No improvement to the company’s current system is suggested.
c. It doesn’t consider the possibility that having a more efficient supply chain will allow the company to
offer more value to its customers.
d. It doesn’t address the question of whether the costs of switching to the new system would outweigh
the cost-reduction benefits the new system might provide.
e. It does not take into account the logistics systems used by the company’s competitors.
Difficulty: 2 Page-Reference: 365
Question ID: 11-1-107 Skill: Analysis
Objective: 11.5
108. Mount Sinai Hospital no longer keeps any inventory. It is using
a. material requirements planning.
b. warehousing.
c. master production scheduling.
d. just-in-time inventory.
e. zero tolerance inventory control.
Difficulty: 1 Page-Reference: 365
Question ID: 11-1-108 Skill: Comprehension
Objective: 11.5
109. The major objective of JIT is to
a. minimize the number of different parts being used.
b. minimize stock-outs of raw materials.
c. minimize inventory costs.
d. ensure smooth production operations.
e. improve the quality of incoming raw materials and parts.
Difficulty: 1 Page-Reference: 365
Question ID: 11-1-109 Skill: Knowledge
Objective: 11.5
110. Joe is working with a system that reduces the number of goods in process and keeps the
production process flowing smoothly with a bare minimum of inventory. The system is most likely
a. material requirements planning.
b. warehousing.
c. inventory control.
d. just-in-time.
e. master production scheduling.
Difficulty: 2 Page-Reference: 365
Question ID: 11-1-110 Skill: Comprehension
Objective: 11.5
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 11—Producing Goods and Services
111. A very popular process among companies whose products require complicated assembly and
fabrication activities is
a. inventory control.
b. material requirements planning.
c. just-in-time.
d. master production scheduling.
e. warehousing.
Difficulty: 1 Page-Reference: 365
Question ID: 11-1-111 Skill: Knowledge
Objective: 11.5
112. Bill is working with a system that uses a bill of materials to project the number of components
and raw materials needed. It also specifies when they need to arrive. He is most likely using
a. warehousing.
b. master production scheduling.
c. material requirements planning.
d. just-in-time.
e. inventory control.
Difficulty: 2 Page-Reference: 365
Question ID: 11-1-112 Skill: Comprehension
Objective: 11.5
1. A third industrial revolution is currently underway which is based on new technologies, software,
robots, and miniaturization.
a. True
b. False
Difficulty: 1 Page-Reference: 342-343
Question ID: 11-2-113 Skill: Knowledge
Objective: 11.1
2. Firms that make tangible products (radios, newspapers, buses, textbooks) are engaged in service
operations.
a. True
b. False
Difficulty: 1 Page-Reference: 342
Question ID: 11-2-114 Skill: Comprehension
Objective: 11.1
3. Although companies are often classified as either goods producers or service providers, the
boundary is often blurred.
a. True
b. False
Difficulty: 2 Page-Reference: 342
Question ID: 11-2-115 Skill: Comprehension
Objective: 11.1
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 11—Producing Goods and Services
4. The four kinds of utility provided by a product or service are time, place, price, and form.
a. True
b. False
Difficulty: 2 Page-Reference: 344
Question ID: 11-2-116 Skill: Knowledge
Objective: 11.2
5. Production is concerned primarily with form utility.
a. True
b. False
Difficulty: 2 Page-Reference: 344
Question ID: 11-2-117 Skill: Comprehension
Objective: 11.2
6. Place utility refers to the location where a product is made.
a. True
b. False
Difficulty: 1 Page-Reference: 344
Question ID: 11-2-118 Skill: Knowledge
Objective: 11.2
7. Operations management is the systematic direction and control of the processes that transform
resources into finished goods and services.
a. True
b. False
Difficulty: 2 Page-Reference: 342
Question ID: 11-2-119 Skill: Knowledge
Objective: 11.2
8. Production managers are relatively easy to identify because almost all of them work in factories.
a. True
b. False
Difficulty: 2 Page-Reference: 344
Question ID: 11-2-120 Skill: Comprehension
Objective: 11.2
9. All goods-manufacturing processes can be classified in two different ways: by the type of
transformation technology that transforms raw materials into finished goods, and by the nature of the
transformation process (analytic or synthetic).
a. True
b. False
Difficulty: 2 Page-Reference: 346
Question ID: 11-2-121 Skill: Knowledge
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 11—Producing Goods and Services
Objective: 11.2
10. Lee operates a metal forming machine in a small manufacturing facility. The type of
transformation technology that he is using is fabrication.
a. True
b. False
Difficulty: 2 Page-Reference: 346
Question ID: 11-2-122 Skill: Comprehension
Objective: 11.2
11. Harpreet works in a factory that produces paint. He is using a synthetic (and also assembly)
process.
a. True
b. False
Difficulty: 2 Page-Reference: 346
Question ID: 11-2-123 Skill: Comprehension
Objective: 11.2
12. Soo works on the “bacon line” in a meat-packing plant. She is involved in an analytic production
process.
a. True
b. False
Difficulty: 2 Page-Reference: 346
Question ID: 11-2-124 Skill: Comprehension
Objective: 11.2
13. Service processes are classified according to the extent of the customer contact.
a. True
b. False
Difficulty: 2 Page-Reference: 346
Question ID: 11-2-125 Skill: Knowledge
Objective: 11.2
14. Utilities and auto repair shops are good examples of low-contact service processes.
a. True
b. False
Difficulty: 1 Page-Reference: 347
Question ID: 11-2-126 Skill: Comprehension
Objective: 11.2
15. In high-contact systems capacity should be based on peak demand.
a. True
b. False
Difficulty: 2 Page-Reference: 352
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 11—Producing Goods and Services
Question ID: 11-2-127 Skill: Knowledge
Objective: 11.2
16. Each day, Carmela rides the bus to work. She is part of a low-contact system.
a. True
b. False
Difficulty: 2 Page-Reference: 346-347
Question ID: 11-2-128 Skill: Comprehension
Objective: 11.2
17. Selecting the kind of production that is best for the company is driven by the firm’s business
strategy.
a. True
b. False
Difficulty: 2 Page-Reference: 347
Question ID: 11-2-129 Skill: Knowledge
Objective: 11.2
18. Toyota’s top priority is on providing low prices to customers, so a cost-minimization strategy is
appropriate for the company.
a. True
b. False
Difficulty: 2 Page-Reference: 348
Question ID: 11-2-130 Skill: Comprehension
Objective: 11.2
19. Service businesses must locate close to their clients.
a. True
b. False
Difficulty: 2 Page-Reference: 353
Question ID: 11-2-131 Skill: Knowledge
Objective: 11.3
20. Manufacturing operations emphasize outcomes in terms of physical goods (for example, a new
jacket), but service operations are really combinations of goods and services (for example, making a
pizza and delivering it).
a. True
b. False
Difficulty: 2 Page-Reference: 349
Question ID: 11-2-132 Skill: Comprehension
Objective: 11.3