Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
19
a. economic order quantity
b. enterprise resource planning
c. materials requirement planning
d. just-in-time inventory
57. Tyree is concerned about minimizing ordering and holding costs without
running out of stock. Tyree is primarily interested in calculating ______.
a. materials requirement planning
b. economic order quantity
c. enterprise resource planning
d. supply chain management
58. Pablo knows that the more often he places orders, the ______ the order cost,
but if he orders less often but in larger quantities, his holding costs go ______.
a. lower; down
b. lower; up
c. higher; up
d. higher; down
59. Inventory control is the process of managing ______, work in process,
finished goods, and in-transit goods.
a. raw materials
b. inventory
c. resources
d. services
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
60. Inventory is a resource needed to transform ______ into ______.
a. products; services
b. outputs; inputs
c. inputs; outputs
d. goods; products
61. A statistical test that aids in determining whether quality is within an
acceptable standard range is ______.
a. statistical manufacturing control
b. customer quality control
c. statistical product control
d. statistical process control
62. The Pareto principle states that ______ of the reasons for out–of-control
performance cause ______ of the quality problems.
a. 30%; 70%
b. 20%; 80%
c. 15%; 85%
d. 50%; 50%
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
21
63. ______ developed 14 points to improve quality, which are still implemented
worldwide today.
a. Philip B. Crosby
b. Armand V. Feigenbaum
c. Genichi Taguchi
d. W. Edwards Deming
64. Deming directed managers’ attention to the fact that most quality problems
are not the fault of employees, rather, the ______ is to blame.
a. customer
b. strategy
c. system
d. manager
65. Cyril is currently checking all of his inventory to make sure it meets
standards. Cyril is engaged in ______.
a. total quality management
b. quality control
c. quality assurance
d. statistical quality control
66. ______ requires that you “build in” quality; you cannot “inspect it in.”
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
a. Quality control
b. Quality assurance
c. Statistical quality control
d. Total quality management
67. ______ is the process that involves everyone in an organization focusing on
the customer to continually improve product value.
a. Quality assurance
b. Quality control
c. Total quality management
d. Statistical quality control
68. Which of the following is NOT a TQM principle?
a. Focus on managing people rather than processes.
b. Use teams to continually improve.
c. Continually improve systems and processes.
d. Focus on delivering customer value.
69. ______ is a management science technique that uses a variety of statistical
tests based on probability to improve the quality of decision making.
a. Quality assurance
b. Statistical quality control
c. Quality control
d. Total quality management
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
70. ______ certifies firms that meet set quality standards.
a. SAI
b. ASQ
c. ISO
d. ANSI
71. JIT and TQM are part of ______ certification.
a. ISO9000
b. ANSI9000
c. SAI9000
d. ASQ9000
72. ______ certifies people as quality professionals.
a. ISO
b. ASQ
c. ANSI
d. SAI
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
73. Six Sigma shoots for only ______ defects or mistakes per million operations.
a. 0.034
b. 0.34
c. 3.4
d. 34
74. What is the only real way to increase wages and standard of living?
a. increase quality
b. increase competition
c. increase trade
d. increase productivity
75. Productivity is calculated as ______.
a. output divided by input
b. input divided by output
c. output times input
d. input plus output
76. ______ is a performance measure relating outputs to inputs.
a. Quality
b. Productivity
c. Value
d. Labor cost
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
77. Which of the following is NOT an example of an input?
a. labor hours
b. market demand
c. machine hours
d. number of workers
78. A(n) ______ measures financial, customer service, and internal business
performance as well as learning and growth performance.
a. labor analysis
b. balanced scorecard
c. financial report
d. internal business report
79. Blue Cab needs to determine if it is continually developing its employees as
well as how effective its operations and processes are. Which two elements of
the balanced scorecard must be referenced?
a. learning and growth performance; customer service performance
b. internal business performance; financial performance
c. learning and growth performance; financial performance
d. learning and growth performance; internal business performance
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
80. All of the following are ways of increasing productivity, EXCEPT ______.
a. increasing the value of the outputs but maintaining the value of the inputs
b. increasing the value of the outputs but decreasing the value of the inputs
c. maintaining the value of the outputs but decreasing the value of the inputs
d. maintaining the value of the outputs but increasing the value of the inputs
81. The balanced scorecard is both a ______ and a(n) ______ method.
a. planning; controlling
b. leading; organizing
c. planning; organizing
d. leading; controlling
82. Faraji owns a company that manufactures propane and charcoal grills.
Throughout the day, he visits a website to keep tabs on how efficiently the many
internal processes in his company are running. He is also able to clearly see the
progress on reaching objectives for various departments. The website Faraji is
using to do this is an example of a ______.
a. digital console
b. digital dashboard
c. digital scorecard
d. digital leaderboard
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
True/False
1. The move by many companies toward replacing workers with technology is
driven solely by the decrease in the cost of technology.
2. Customers can be served by people, machines, or both.
3. Time-based competition refers to the use of strategies to increase the speed
with which an organization goes from creativity to delivery.
4. Rushing through the product design process can lead to operations problems
that cannot be easily fixed.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
5. “Quality is a virtue of design” means that if products are well designed, there
will be fewer operations problems, the product will be easier to sell, and servicing
the product will be less costly.
6. Capacity is the number of products an organization can produce.
7. Facilities are the physical resources used in the operations process.
8. Internal operations systems should be designed to align with the external
environments.
9. While visual project management scheduling tools are important, we tend to
better remember what we hear, rather than what we see.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
29
10. The key components of PERT are activities, events, times, and the
production schedule.
11. A planning sheet is a scheduling tool that uses bars to graphically illustrate a
schedule and progress toward the objective over a period.
12. It is difficult to balance product demand with manufacturing capacity.
13. Quality control and inventory control overlap.
14. There are three major total quality management principles.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
15. Inventory is the stock of materials held for future use.
16. Six Sigma is only applicable to manufacturing.
17. The bureaucratic hierarchy of large companies serves to speed up decision–
making, hiring, and the time it takes to make a sale.
18. It is possible to increase production but decrease productivity.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
19. A productivity rate can be set as the standard, and one can compare the
department’s productivity to the standard on an ongoing basis.
20. In general, the increased use of technology has had the net effect of taking
away jobs.
21. Innovation and creativity tend to create jobs.
22. Research suggests that free trade means more job winners than losers,
which means there is net creation of jobs that exceeds those jobs that are lost.
23. Jobs requiring creativity and complex human exchanges are decreasing,
while those that can be computerized are increasing.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
Essay
1. Define the terms operations and product and explain why operations is
important to organizations.
2. Explain the differences between make-to-stock and make-to-order operations.
3. Explain the differences between continuous process operations and repetitive
process operations.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
4. What is meant by the phrase, “Quality is a virtue of design”?
5. How are facility locations determined?
6. List and describe the three project scheduling tools.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
7. Describe how MRP systems assist operations management.
8. Describe how ERP differs from MRP.
9. What is supply chain management?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
10. Define and explain RFID technology and its role in supply chain
management.
11. Explain what Six Sigma refers to and discuss the possible benefits to
organizations of using Six Sigma practices.
12. What is a balanced scorecard and how can it be used to measure
organizational performance?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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