Chapter 11 3 Airlines do not want any empty seats on their flights

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 11—Producing Goods and Services

21. The three characteristics of services that distinguish them from goods production are intangibility,

customization, and unstorability.

a. True

b. False

Difficulty: 1 Page-Reference: 349

Question ID: 11-2-133 Skill: Knowledge

Objective: 10.3

22. Airlines do not want any empty seats on their flights. This illustrates the importance of the

unstorability feature of service operations.

a. True

b. False

Difficulty: 1 Page-Reference: 350

Question ID: 11-2-134 Skill: Comprehension

Objective: 11.3

23. All services have some degree of intangibility, but some services provide tangible elements as

well.

a. True

b. False

Difficulty: 2 Page-Reference: 350

Question ID: 11-2-135 Skill: Knowledge

Objective: 11.3

24. The growth of ecommerce has introduced a “virtual presence,” as opposed to a physical

presence, of customers in the service system.

a. True

b. False

Difficulty: 2 Page-Reference: 350

Question ID: 11-2-136 Skill: Knowledge

Objective: 11.3

25. The long-range operations plan should address both capacity and facilities.

a. True

b. False

Difficulty: 2 Page-Reference: 351

Question ID: 11-2-137 Skill: Knowledge

Objective: 11.4

26. Capacity planning means ensuring that a firm’s capacity exactly meets the normal demand for its

product.

a. True

b. False

Difficulty: 1 Page-Reference: 352

Question ID: 11-2-138 Skill: Knowledge

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 11—Producing Goods and Services

Objective: 11.4

27. Capacity planning for goods production means ensuring that capacity meets peak demand; by

contrast, in high-contact processes, managers must have capacity to meet normal demand.

a. True

b. False

Difficulty: 3 Page-Reference: 352

Question ID: 11-2-139 Skill: Knowledge

Objective: 11.4

28. A supermarket has far more cash registers than it needs on an average day. This illustrates the

need for a high-contact service to have capacity that meets peak demand.

a. True

b. False

Difficulty: 3 Page-Reference: 352

Question ID: 11-2-140 Skill: Comprehension

Objective: 11.4

29. Suppose that a catalogue sales warehouse hires enough order fillers to handle 1000 orders per

day. When daily orders exceed this average, some orders are placed in a “to–be-done” file to be

processed on a day when fewer than 1000 orders are received. This strategy illustrates the need for a

high-contact service to have capacity that meets average demand.

a. True

b. False

Difficulty: 3 Page-Reference: 352

Question ID: 11-2-141 Skill: Comprehension

Objective: 11.4

30. Location planning for low-contact services is less restricted than it is for high-contact services.

a. True

b. False

Difficulty: 3 Page-Reference: 352

Question ID: 11-2-142 Skill: Comprehension

Objective: 11.4

31. The product layout is an efficient way to manage the manufacturing of multiple product lines

because of its inherent structural simplicity.

a. True

b. False

Difficulty: 2 Page-Reference: 354

Question ID: 11-2-143 Skill: Comprehension

Objective: 11.4

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 11—Producing Goods and Services

32. Marvin works in a machine shop. It is likely that the shop uses a process layout.

a. True

b. False

Difficulty: 2 Page-Reference: 353-354

Question ID: 11-2-144 Skill: Comprehension

Objective: 11.4

33. Bell Industries is a clothing manufacturer that has established a designated area that is dedicated

to making various pockets for shirts, coats, blouses, trousers, and slacks. This strategy illustrates the

process layout.

a. True

b. False

Difficulty: 2 Page-Reference: 353-354

Question ID: 11-2-145 Skill: Comprehension

Objective: 11.4

34. Compared to process layouts, the cellular layout requires less time for machine adjustment and

less time for equipment set-up.

a. True

b. False

Difficulty: 2 Page-Reference: 354

Question ID: 11-2-146 Skill: Comprehension

Objective: 11.4

35. Industrial robots are common in manufacturing facilities, but to date there has been little success

in using robots in other situations.

a. True

b. False

Difficulty: 2 Page-Reference: 354

Question ID: 11-2-147 Skill: Comprehension

Objective: 11.4

36. Product layouts are efficient, but inflexible.

a. True

b. False

Difficulty: 2 Page-Reference: 354

Question ID: 11-2-148 Skill: Knowledge

Objective: 11.4

37. Lean manufacturing means getting rid of traditional assembly lines.

a. True

b. False

Difficulty: 2 Page-Reference: 354

Question ID: 11-2-149 Skill: Comprehension

Objective: 11.4

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 11—Producing Goods and Services

38. The goal of flexible manufacturing systems is to help produce sufficient numbers of products that

are in high demand, while avoiding overproduction of products that are not in as high demand.

a. True

b. False

Difficulty: 2 Page-Reference: 356

Question ID: 11-2-150 Skill: Comprehension

Objective: 11.4

39. Nissan, Toyota, and Honda have the ability to build several different models of cars using the

same basic “platform” (the underbody of the car). These companies are able to do this because of “soft

manufacturing.”

a. True

b. False

Difficulty: 2 Page-Reference: 346

Question ID: 11-2-151 Skill: Comprehension

Objective: 11.4

40. A low-contact service operation like the mail-processing facility at UPS or Federal Express looks

very much like a product layout in a factory.

a. True

b. False

Difficulty: 2 Page-Reference: 356

Question ID: 11-2-152 Skill: Comprehension

Objective: 11.4

41. Soft manufacturing emphasizes computer software and computer networks instead of production

machines.

a. True

b. False

Difficulty: 1 Page-Reference: 356

Question ID: 11-2-153 Skill: Knowledge

Objective: 11.4

42. Barry is a production manager who is trying to reduce waste and inefficiency by examining factory

procedures on a step-by-step basis. Barry is using method improvement.

a. True

b. False

Difficulty: 1 Page-Reference: 358

Question ID: 11-2-154 Skill: Comprehension

Objective: 11.4

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 11—Producing Goods and Services

43. The master production schedule reflects which goods will be produced, when production will

occur, and what resources will be used in the coming months.

a. True

b. False

Difficulty: 2 Page-Reference: 361

Question ID: 11-2-155 Skill: Knowledge

Objective: 11.5

44. The key feature of a Gantt chart is that it shows the critical path for meeting project goals.

a. True

b. False

Difficulty: 1 Page-Reference: 362

Question ID: 11-2-156 Skill: Knowledge

Objective: 11.5

45. A PERT chart emphasizes operations control rather than operations scheduling.

a. True

b. False

Difficulty: 2 Page-Reference: 362

Question ID: 11-2-157 Skill: Knowledge

Objective: 11.5

46. Operations control requires production managers to monitor production performance by

comparing results with detailed plans and schedules.

a. True

b. False

Difficulty: 1 Page-Reference: 362

Question ID: 11-2-158 Skill: Knowledge

Objective: 11.5

47. The four main areas of materials management are transportation, warehousing, inventory control,

and purchasing.

a. True

b. False

Difficulty: 1 Page-Reference: 363-364

Question ID: 11-2-159 Skill: Knowledge

Objective: 11.5

48. The adoption of JIT usually means that a company has somewhat higher inventory costs than it

did before, but a better and larger selection of inventory items.

a. True

b. False

Difficulty: 2 Page-Reference: 365

Question ID: 11-2-160 Skill: Comprehension

Objective: 11.5

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 11—Producing Goods and Services

49. The use of just-in-time inventory systems has made supply systems more volatile.

a. True

b. False

Difficulty: 2 Page-Reference: 365

Question ID: 11-2-161 Skill: Comprehension

Objective: 11.5

50. Inventory control and materials management have basically the same meaning and are used

interchangeably.

a. True

b. False

Difficulty: 1 Page-Reference: 365-366

Question ID: 11-2-162 Skill: Comprehension

Objective: 11.5

51. Material requirements planning is the method that brings together all materials and parts needed

at each production stage at the precise moment they are needed.

a. True

b. False

Difficulty: 2 Page-Reference: 365

Question ID: 11-2-163 Skill: Knowledge

Objective: 11.5

1. What is the difference between production and operations?

Difficulty: 2 Page-Reference: 342

Question ID: 11-3-164 Skill: Comprehension

Objective: 11.1

2. What is utility?

Difficulty: 2 Page-Reference: 344

Question ID: 11-3-165 Skill: Knowledge

Objective: 11.2

3. Give an example of a product that is produced through an analytic process.

Difficulty: 2 Page-Reference: 346

Question ID: 11-3-166 Skill: Comprehension

Objective: 11.2

4. Give an example of a product that is produced through a synthetic process.

Difficulty: 2 Page-Reference: 346

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 11—Producing Goods and Services

Question ID: 11-3-167 Skill: Comprehension

Objective: 11.2

5. What is the difference between high-contact and low-contact services. Give an example of each.

Difficulty: 2 Page-Reference: 346-347

Question ID: 11-3-168 Skill: Comprehension

Objective: 11.2

6. Identify the three qualities that distinguish services from goods.

Difficulty: 2 Page-Reference: 349-350

Question ID: 11-3-169 Skill: Knowledge

Objective: 11.3

7. What is a forecast?

Difficulty: 2 Page-Reference: 352

Question ID: 11-3-170 Skill: Knowledge

Objective: 11.4

8. What is the first step in the operations planning and control process?

Difficulty: 2 Page-Reference: 351

Question ID: 11-3-171 Skill: Knowledge

Objective: 11.4

9. What is the last step in the operations planning and control process?

Difficulty: 2 Page-Reference: 351

Question ID: 11-3-172 Skill: Knowledge

Objective: 11.4

10. Identify the primary factor influencing the location of high-contact services.

Difficulty: 2 Page-Reference: 353

Question ID: 11-3-173 Skill: Knowledge

Objective: 11.4

11. List the three types of space in a goods-producing facility.

Difficulty: 2 Page-Reference: 353

Question ID: 11-3-174 Skill: Knowledge

Objective: 11.4

12. What is a process layout?

Difficulty: 2 Page-Reference: 353-354

Question ID: 11-3-175 Skill: Knowledge

Objective: 11.4

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 11—Producing Goods and Services

13. What is a cellular layout?

Difficulty: 2 Page-Reference: 354

Question ID: 11-3-176 Skill: Knowledge

Objective: 11.4

14. What is a product layout?

Difficulty: 2 Page-Reference: 354

Question ID: 11-3-177 Skill: Knowledge

Objective: 11.4

15. What is a flexible manufacturing system?

Difficulty: 2 Page-Reference: 356

Question ID: 11-3-178 Skill: Knowledge

Objective: 11.4

16. What is a master production schedule?

Difficulty: 2 Page-Reference: 361

Question ID: 11-3-179 Skill: Knowledge

Objective: 11.5

17. What is a Gantt chart?

Difficulty: 2 Page-Reference: 362

Question ID: 11-3-180 Skill: Knowledge

Objective: 11.5

18. What is a PERT chart?

Difficulty: 2 Page-Reference: 362

Question ID: 11-3-181 Skill: Knowledge

Objective: 11.5

19. Identify the four major areas of materials management.

Difficulty: 2 Page-Reference: 363-364

Question ID: 11-3-182 Skill: Knowledge

Objective: 11.5

20. What are holding costs?

Difficulty: 2 Page-Reference: 364

Question ID: 11-3-183 Skill: Knowledge

Objective: 11.5

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 11—Producing Goods and Services

21. With respect to purchasing, what is lead time?

Difficulty: 2 Page-Reference: 364

Question ID: 11-3-184 Skill: Knowledge

Objective: 11.5

22. What are the four major tools in operations process control?

Difficulty: 2 Page-Reference: 364

Question ID: 11-3-185 Skill: Knowledge

Objective: 11.5

1. Discuss the current concept of “production” including recent trends.

Difficulty: 3 Page-Reference: 342-344

Question ID: 11-4-186 Skill: Comprehension

Objective: 11.1

2. What does it mean to say, “production managers are ultimately responsible for creating utility”?

Explain this phrase and the term “utility” in your response.

Difficulty: 3 Page-Reference: 344

Question ID: 11-4-187 Skill: Comprehension

Objective: 11.2

3. Explain what “utility” means and identify the four types of utility.

Difficulty: 1 Page-Reference: 344

Question ID: 11-4-188 Skill: Knowledge

Objective: 11.2

4. Describe the ways a business’s operation processes can be classified.

Difficulty: 2 Page-Reference: 345

Question ID: 11-4-189 Skill: Comprehension

Objective: 11.2

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 11—Producing Goods and Services

5. Identify and explain the techniques of classifying production processes by the type of transformation

technology used.

Difficulty: 2 Page-Reference: 346

Question ID: 11-4-190 Skill: Knowledge

Objective: 11.2

6. What is the difference between an analytic process and a synthetic process?

Difficulty: 2 Page-Reference: 346

Question ID: 11-4-191 Skill: Comprehension

Objective: 11.2

7. Services are classified according to the extent of customer contact. Identify and briefly discuss the

two types.

Difficulty: 2 Page-Reference: 346-347

Question ID: 11-4-192 Skill: Knowledge

Objective: 11.2

8. What is the relationship between business strategy and operations?

Difficulty: 3 Page-Reference: 347-348

Question ID: 11-4-193 Skill: Comprehension

Objective: 11.2

9. Identify and briefly discuss the three characteristics that uniquely separate services from goods.

Difficulty: 2 Page-Reference: 349-350

Question ID: 11-4-194 Skill: Knowledge

Objective: 11.3

10. What are the steps involved in operations planning and control?

Difficulty: 2 Page-Reference: 351

Question ID: 11-4-195 Skill: Knowledge

Objective: 11.4

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 11—Producing Goods and Services

11. Layout must be planned for different types of space. Identify and briefly discuss the three different

types of space.

Difficulty: 2 Page-Reference: 353

Question ID: 11-4-196 Skill: Knowledge

Objective: 11.4

12. Identify and briefly discuss the three types of layout planning.

Difficulty: 1 Page-Reference: 353-354

Question ID: 11-4-197 Skill: Knowledge

Objective: 11.4

13. How should capacity planning be done for service businesses?

Difficulty: 2 Page-Reference: 352

Question ID: 11-4-198 Skill: Comprehension

Objective: 11.4

14. Identify and describe the five major areas in materials management.

Difficulty: 2 Page-Reference: 363-364

Question ID: 11-4-199 Skill: Knowledge

Objective: 11.5

15. Describe how just-in–time (JIT) production systems help managers minimize manufacturing

inventory costs.

Difficulty: 2 Page-Reference: 365

Question ID: 11-4-200 Skill: Comprehension

Objective: 11.5

16. Explain how material requirements planning works in the production department.

Difficulty: 2 Page-Reference: 365-366

Question ID: 11-4-201 Skill: Comprehension

Objective: 11.5

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 11—Producing Goods and Services