Module 6

Question 1

Firms often use a(n) \_\_\_\_\_\_\_\_\_\_\_\_\_ when working on production of a large item such as an airplane.
A) 	fixed-position layout
B) 	modular layout
C) 	assembly line layout
D) 	continuous production process

Answer 1

A

Question 2

Facility location is about:
A) choosing the location for retailers who will sell the products of the business.
B) selecting the most cost-effective outsourcing country.
C) deciding on the most efficient setup of equipment in a business.
D) choosing a geographic location for the operation of a business.

Answer 2

D

Question 3

The goal of lean manufacturing is to:
A) keep inventories of finished goods as low as possible.
B) produce goods and services with less of everything compared to mass production.
C) design machines to do multiple tasks so that they can produce a variety of products.
D) produce a limited variety of goods.

Answer 3

B

Question 4

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is the specialized area of management that converts or transforms resources into goods and services.
A) 	Operations management
B) 	Logistics management
C) 	Production management
D) 	Supply chain management

Answer 4

A

Question 5

\_\_\_\_\_\_\_\_\_ is the function in the firm that searches for quality material resources, finds the best suppliers, and negotiates the best price.
A) 	Purchasing
B) 	Marketing
C) 	Operations
D) 	Quality control

Answer 5

A

Question 6

Westside Manufacturing has just installed some new machines that are designed to do many different tasks and can be used to produce a variety of products. This indicates that Westside is moving toward:
A) 	mass production.
B) 	flexible manufacturing.
C) 	lean manufacturing.
D) 	process manufacturing.

Answer 6

B

Question 7

A major reason Japanese automakers have located in Canada has been the desire to:
A) take advantage of just-in-time inventory methods.
B) get closer to their international customers.
C) locate in an area where labour is more productive.
D) switch to less labour-intensive production methods.

Answer 7

B

Question 8

Why are many companies demanding that their suppliers obtain ISO certification?
A) Consumers are demanding it.
B) It is now required by law.
C) Companies with ISO certification can only work with suppliers with the same level of certification.
D) Companies can reduce the amount of time they used to spend inspecting goods from certified suppliers.

Answer 8

D

Question 9

Which of the following statements about the impact of CAD/CAM on manufacturing is most accurate?
A) CAD/CAM is most useful to firms producing durable goods such as automobiles.
B) CAD/CAM has replaced ERP as the most sophisticated resource planning technique.
C) CAD/CAM has made it possible to produce custom-designed products with little increase in costs.
D) CAD/CAM allows firms to save money by replacing skilled labour with computers to perform all of the high-skill tasks.

Answer 9

C

Question 10

Which statement is accurate in terms of Canadian manufacturers being able to compete against Chinese manufacturers?
A) Investing in technology will allow Canadian manufacturers to be more productive and realize cost savings even with higher labour costs.
B) They will have to lobby the Canadian government to impose large tariffs on Chinese manufactured goods to remain competitive.
C) Canadian manufacturers will have to contract out their manufacturing since they cannot compete with the wage rates paid to Chinese labour.
D) They will have to lower their labour costs to the same level as Chinese manufacturers to remain competitive

Answer 10

A

Question 11

Which control procedure focuses on the relationships between tasks?
A)	PERT
B)	CIM
C)	Balanced score card
D)	Gantt chart

Answer 11

A

Question 12

Which is the most complex chart?
A)	Gantt
B)	Control
C)	Flow
D)	PERT

Answer 12

D

Question 13

Cooltreet Inc. combines sugar, cream, eggs, and flavourings, then churns and cools the resulting mixture until it freezes, creating ice cream. This is an example of:
A)	An intermittent process
B)	An assembly process
C)	A symbiotic process
D)	Process manufacturing

Answer 13

D

Question 14

MegaMachines obtains computer components from a variety of suppliers and puts them together to make computers. This process is an example of:
A)	An intermittent process
B)	An assembly process
C)	Process manufacturing
D)	A continuous process

Answer 14

B

Question 15

SitRite Furniture Company uses labour and machinery to transform wood, metal, and cloth into comfortable chairs. This process creates:
A)	Ownership utility
B)	Place utility
C)	Form utility
D)	Time utility

Answer 15

C

Question 16

A production process characterized by long production runs to turn out finished goods over time is known as a(n):	
A) unrestricted process
B) continuous process
C) extended process
D) assembly process

Answer 16

B

Question 17

. A firm that has been certified in meeting both ISO 9000 and ISO 14000 standards has demonstrated:
A) that its recruitment and training programs for employees protect and promote basic human rights
B) world-class management of both quality and environmental standards
C) sound financial and marketing practices
D) ethical treatment of both customers and employees

Answer 17

B

Question 18

R&D refers to:
A) work directed towards innovation and improvement
B) the spending by private industry, universities, and hospitals
C) materials requirement planning
D) all government spending

Answer 18

A

Question 19

A business would use the following approaches to improve productivity, EXCEPT:
A) improving the quality of outputs so that there are fewer defects
B) using more factors of production to maintain the same level of outputs
C) producing more with the same amount of inputs
D) finding ways to reduce the cost of inputs

Answer 19

B

Question 20

. In today’s quality control programs, emphasis is placed on:
A) detecting errors at the end of the production process before goods are shipped to customers.
B) achieving customer satisfaction.
C) keeping labour costs as low as possible.
D) producing goods at the lowest possible cost.

Answer 20

B

Question 21

A basic characteristic of flexible manufacturing is that it:
A) uses machines designed to perform multiple tasks so they can be used to produce a variety of products
B) relies heavily on labour, since humans are more adaptable than machines
C) is only possible when using mass production processes
D) achieves its flexibility at the cost of much slower rates of production than mass production techniques

Answer 21

A

Question 22

The sequence of firms that perform activities required to create and deliver a good/service to consumers or industrial users is known as what?

Answer 22

Supply Chain