Name: __________________________ Date: _____________


1.
__________ include(s) stocks of completed goods, work in process, and raw materials.
A.
Supplies
B.
Holding goods
C.
Inventories
D.
Processed goods
E.
Stock


2.
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.


3.
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.


4.
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.


5.
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.


6.
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.


7.
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.
C.
operational planning.
D.
scheduling.
E.
design planning.


8.
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.
E.
possession utility.


9.
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


10.
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.


11.
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.


12.
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.


13.
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


14.
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.


15.
When different sequences of operations are required for creating small batches of different products, the type of design or layout used is
A.
product design.
B.
product layout.
C.
process layout.
D.
quota layout.
E.
output layout.


16.
When VHS VCRs were first introduced, sales were zero. As the VCRs started to catch on, sales began to increase more and more rapidly until they peaked. Since the peak, sales have fallen, and in time DVD players or something beyond will make VCRs an unprofitable item to manufacture. This pattern is
A.
the research and development cycle.
B.
development and implementation.
C.
the product line planning and exiting cycle.
D.
the introduction to decline cycle.
E.
the product life cycle.


17.
When a lumber company takes timber and converts it into lumber, cardboard, and other paper products, the company is using
A.
an analytic process.
B.
extraction manufacturing.
C.
a synthetic process.
D.
an operations process.
E.
raw processing.


18.
A government-funded group of scientists is assigned to discover new knowledge and scientific advances. These scientists are not required to consider the potential use of this knowledge. This group is conducting
A.
development and implementation.
B.
research for product life cycles.
C.
applied research.
D.
academic research and development.
E.
basic research.


19.
A situation in which people do most of the work is called
A.
a quality circle.
B.
quality control.
C.
design planning.
D.
a labor-intensive technology.
E.
a capital-intensive technology.


20.
__________ 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


21.
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.


22.
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 products as well as the existing products.


23.
The examination of work in process for the purpose of controlling quality is called
A.
quality control.
B.
inspection.
C.
inventory control.
D.
quality circle.
E.
product design.


24.
The primary difference between MRP and MRP II is that MRP II involves
A.
just production personnel.
B.
just inventory personnel.
C.
just upper management.
D.
just lower management.
E.
all managers in the entire organization.


25.
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