Chapter 6 & 7 Deck

Question 1

High-volume goods are produced efficiently by people, equipment, or departments arranged in a(n) ( ).

Answer 1

assembly line

Question 2

All of the following are true about industrial robots except they:

Answer 2

can replace about 80% of faculty workers

Question 3

( ) refers to “the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.”

Answer 3

Quality

Question 4

Making decisions on how to hold down the costs of materials and labor is the job of ( ).

Answer 4

the operations manager

Question 5

In order to draw up a(n) ( ), managers need to know where materials are located and headed at every step in the production process.

Answer 5

master production schedule

Question 6

In many companies, employees who perform similar jobs work in ( ) to identify efficiency and to propose solutions.

Answer 6

quality circles

Question 7

Companies decide to outsource for the following reasons with the exception of:

Answer 7

reduce product design costs.

Question 8

A computer-integrated manufacturing system is a common element in ( ) systems, in which computer-controlled equipment can easily be adapted to produce a variety of goods.

Answer 8

flexible manufacturing

Question 9

( ) is a manufacturing strategy whereby a firm produces products outside of its own plant.

Answer 9

Outsourcing

Question 10

McDonald’s, Burger King, Pizza Hut, and KFC restaurants, all of which operate in many different countries, are best characterized as ( ) corporations.

Answer 10

multinational

Question 11

Usually driven by the size and attractiveness of the foreign market, ( ) is generally the most expensive commitment that a company can make in an overseas market.

Answer 11

foreign direct investment

Question 12

Among other things, many MNCs (multinational corporations) have increased their sensitivity to local market conditions by ( ).

Answer 12

decentralizing decision making

Question 13

( ) is a common method of protecting domestic goods and trade.

Answer 13

Adding taxes to imported goods

Question 14

In ( ) cultures, personal and work relationships tend to be compartmentalized.

Answer 14

low-context

Question 15

If a foreign currency ( ) relative to the U.S. dollar, Americans will pay less for goods and services bought from sellers in the country that issues the currency.

Answer 15

goes down

Question 16

The formal establishment of business operations on foreign soil, such as factories, sales offices, or branch stores, is called ( ).

Answer 16

foreign direct investment

Question 17

By their very nature, products were customized to meet the needs of the buyers who ordered them. This process, which is called a ( ).

Answer 17

make-to-order strategy

Question 18

is the practice of producing high volumes of identical goods at a cost low enough to price them for large numbers of customers.

Answer 18

mass production (or make-to-stock strategy)

Question 19

High volumes of customized goods are made.

Answer 19

mass customization

Question 20

Managers estimate the quantity of products to be produced by ( ) for their product and then calculating the capacity requirements of the production facility.

Answer 20

forecasting demand

Question 21

The ( ) layout groups together workers or departments that perform similar tasks. At each position, workers use specialized equipment to perform a particular step in the production process.

Answer 21

process

Question 22

In a ( ) layout, high-volume goods are produced in assembly-line fashion—that is, a series of workstations at which already-made parts are assembled.

Answer 22

product

Question 23

In a ( ) layout, small teams of workers handle all aspects of building a component, a “family of components,” or even a finished product.

Answer 23

cellular

Question 24

A ( ) layout is used to make large items (such as ships or buildings) that stay in one place while workers and equipment go to the product.

Answer 24

fixed-position

Question 25

( ) encompasses the following activities: purchasing, inventory control, and work scheduling.

Answer 25

materials management

Question 26

A ( ) is an easy-to-use graphical tool that helps operations managers determine the status of projects.

Answer 26

Gantt chart

Question 27

( ) are used to diagram the activities required to produce a good, specify the time required to perform each activity in the process, and organize activities in the most efficient sequence.

Answer 27

PERT charts

Question 28

What are the three things that differentiate manufacturers from service providers?

Answer 28

1. Intangibility
2. Customization
3. Customer contact

Question 29

( ) or quality assurance includes all the steps that a company takes to ensure that its goods or services are of sufficiently high quality to meet customers’ needs.

Answer 29

Total quality management (TQM)

Question 30

This technique monitors production quality by testing a sample of output to see whether goods in process are being made according to predetermined specifications.

Answer 30

statistical process control

Question 31

Companies routinely use ( ) to compare their performance on a number of dimensions with the performance of other companies that excel in particular areas.

Answer 31

benchmarking

Question 32

The International Organization for Standardization (ISO) has established the ( ) family of international standards for quality management.

Answer 32

ISO 9000

Question 33

The International Organization for Standardization (ISO) has established the ( ) family of international standards for environmental management.

Answer 33

ISO 14000

Question 34

A nation has an ( ) advantage if (1) it’s the only source of a particular product or (2) it can make more of a product using the same amount of or fewer resources than other countries.

Answer 34

absolute

Question 35

The concept of ( ) advantage exists when a country can produce a product at a lower opportunity cost compared to another nation.

Answer 35

comparative

Question 36

( ) are the products that a country must decline to make in order to produce something else.

Answer 36

Opportunity costs

Question 37

We determine a country’s ( ) by subtracting the value of its imports from the value of its exports.

Answer 37

balance of trade

Question 38

A ( ) is an agreement between two companies (or a company and a nation) to pool resources in order to achieve business goals that benefit both partners.

Answer 38

strategic alliance

Question 39

Alliances range in scope from informal cooperative agreements to ( ). Alliances in which the partners fund a separate entity (perhaps a partnership or a corporation) to manage their joint operation.

Answer 39

joint ventures

Question 40

( ) occurs when a company sets up facilities in a foreign country that replaces U.S. manufacturing facilities to produce goods that will be sent back to the United States for sale. Shifting production to low-wage countries is often criticized as it results in the loss of jobs for U.S. workers.

Answer 40

offshoring

Question 41

A common form of FDI is the ( ), an independent company owned by a foreign firm.

Answer 41

foreign subsidiary

Question 42

In ( ), the numerous interlocking (and often unstated) personal and family connections that hold people together have an effect on almost all interactions.

Answer 42

high-context cultures

Question 43

If a foreign currency ( ) relative to the U.S. dollar, Americans must pay more for goods and services purchased from sellers in the country issuing the currency (foreign products are more expensive).

Answer 43

goes up

Question 44

Because they protect domestic industries by reducing foreign competition, the use of controls to restrict free trade is often called ( ).

Answer 44

protectionism

Question 45

( ) are taxes on imports. Because they raise the price of the foreign-made goods, they make them less competitive.

Answer 45

tariffs

Question 46

( ) are restrictions on imports that impose a limit on the quantity of a good that can be imported over a period of time. They’re used to protect specific industries, usually new industries or those facing strong competitive pressure from foreign firms.

Answer 46

quotas

Question 47

An ( ) is a quota that, for economic or political reasons, bans the import or export of certain goods to or from a specific country.

Answer 47

embargo

Question 48

A common rationale for tariffs and quotas is the need to combat ( )—the practice of selling exported goods below the price that producers would normally charge in their home markets (and often below the costs of producing the goods).

Answer 48

dumping

Question 49

Groups of countries that have joined together to allow goods and services to flow without restrictions across their mutual borders.

Answer 49

trading blocs