a.
Materials requirement planning (MRP)
b.
Economic order quantity (EOQ)
c.
Enterprise resource planning (ERP)
d.
Supply chain management (SCM)
50. 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
51. 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
52. Inventory is a resource needed to transform __________ into __________.
a.
products; services
b.
outputs; inputs
c.
inputs; outputs
d.
goods; products
53. 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
54. According to one theory, __% 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
55. _______________ 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
56. 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
57. 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
58. __________ requires that you “build in” quality; you cannot “inspect it in.”
a.
Quality control
b.
Quality assurance
c.
Statistical quality control
d.
Total quality management
59. Which of the following is not one of the five rules of customer human relations?
a.
Take your time with people.
b.
Don’t discriminate with your service (treat everyone well).
c.
Always be nice—no matter how busy you are.
d.
The customer is always right.
60. __________ 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
61. 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.
62. __________ 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
63. __________ certifies firms that meet set quality standards.
a.
SAI
b.
ASQ
c.
ISO
d.
ANSI
64. JIT and TQM are part of __________ 9000 certification.
a.
ISO
b.
ANSI
c.
SAI
d.
ASQ
65. __________ certifies people as quality professionals.
a.
ISO
b.
ASQ
c.
ANSI
d.
SAI
66. Six Sigma shoots for only __________ defects or mistakes per million operations.
a.
0.034
b.
0.34
c.
3.4
d.
34
67. 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.
68. Productivity is calculated by __________.
a.
output divided by input
b.
input divided by output
c.
output times input
d.
input plus output
69. _________ is a performance measure relating outputs to inputs.
a.
Quality
b.
Productivity
c.
Value
d.
Labor cost
70. Which of the following is not an example of an input?
a.
Labor hours
b.
Market demand
c.
Machine hours
d.
Number of workers
71. 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
72. 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
73. 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
74. The balanced scorecard is both a __________ and a(n) __________ method.
a.
planning; controlling
b.
leading; organizing
c.
planning; organizing
d.
leading; controlling
75. Mobile technology __________ apps are slowly boosting restaurant efficiency and sales for
several companies.
a.
rating
b.
order-ahead
c.
seat-reservation
d.
review
TRUE/FALSE
76. Customers can be served by people, machines, or both.
77. Classifying operations systems include tangibility of products, level of investment, task
structure, and resources and technology management.
78. Time-based competition refers to the use of strategies to increase the speed with which an
organization goes from creativity to delivery.
79. The four throughput stages are design, operations, distribution, and service.
80. Capacity is the number of products an organization can produce.
81. Facilities are the physical resources used in the operations process.
82. The key components of PERT are activities, events, times, and the production schedule.
83. A planning sheet is a scheduling tool that uses bars to graphically illustrate a schedule and
progress toward the objective over a period.
84. Quality control and inventory control overlap.
85. There are three major total quality management principles.
86. Inventory is the stock of materials held for future use.
87. It is possible to increase production but decrease productivity.
88. A productivity rate can be set as the standard, and one can compare the department’s
productivity to the standard on an ongoing basis.
89. Robotics have created lots of technology jobs while replacing repetitive manual jobs with
higher levels of quality and increasing productivity.
90. Jobs requiring creativity and complex human exchanges are decreasing, while those that can be
computerized are increasing.
ESSAY
91. Define the terms operations and product and explain why operations is important to
organizations.
92. Explain the differences between make-to-stock and make-to-order operations.
93. What is meant by the phrase, “Quality is a virtue of design”?
ANS:
94. How are facility locations determined?
95. List and describe the three project scheduling tools.
96. Describe how MRP systems assist operations management.
97. Describe how ERP differs from MRP.
98. What is supply chain management?
99. Define and explain RFID technology and its role in supply chain management.
ANS:
100. What is a balanced scorecard and how can it be used to measure organizational performance?