OPERATIONS MANAGEMENT

1) Betsy remodels and redecorates houses with the help of her computer. She can move walls or doors on the computer before she ever has to demolish a real wall or move a real doorway. She can try different paint colors on the walls and different styles of kitchen cabinets without having to spend a cent on the real thing. Betsy is making use of CAD-computer-aided design.

TRUE OR FALSE

2) Inventory control is the system for determining the right quantity of resources and keeping track of their location and use.

TRUE OR FALSE

3) In the product layout arrangement, similar work is grouped by function.

TRUE OR FALSE

4) Nearness to suppliers and customers is an important factor in choosing the best place to locate a business facility.

TRUE OR FALSE

5) Because restaurants have little room to store supplies long term, and because they can't store perishables long term anyway, most restaurants tend to rely on the just-in-time system of inventory control, at least for their perishable foodstuffs. 

TRUE OR FALSE

6) A Gantt chart is an ideal way to schedule a large and complex project. 

TRUE OR FALSE

7) Quality assurance is defined as the process of minimizing errors by managing each stage of production.

TRUE OR FALSE

8) Ezra's company makes cream-filled cupcakes. Because of refrigeration concerns, Ezra takes extra care during the stage in the production process when the cream is injected into the cakes. Ezra loses a fair amount of product to cakes falling apart before they are boxed, and he doesn't worry about the individual plastic wrapping that goes on each cake because he has never seen a problem with the plastic. Ezra has an adequate quality assurance program at his company.

TRUE OR FALSE

9) Fast Frank's is a take-out hot dog stand where customers can get any kind of hot dog with any toppings they want, plus French fries or onion rings and soft drinks. That's all Fast Frank's sells. Frank strives for continuous improvement. He trains his employees before they ever serve customers and then holds quarterly refresher courses on an ongoing basis. He encourages customers to share their experiences, positive and negative, with his employees, and he routinely sends his employees out to patronize other take-out food stands to see how they handle their business. Fast Frank's follows the total quality management system of continual improvement.

TRUE OR FALSE

10) Six Sigma consists of quality assurance procedures companies must install-in purchasing, manufacturing, inventory, shipping, and other areas-that can be audited by "registrars," or independent quality assurance experts.

TRUE OR FALSE

11) Six Sigma is a rigorous statistical analysis process that reduces defects in manufacturing and service-related processes.

TRUE OR FALSE

12) Benchmarking relies on statistical sampling to locate errors by testing some

TRUE OR FALSE

13) Which of the following is NOT an example of a transformation process?

A) baking

B) fermentation

C) assembly

D) room assignments

E) registration

14) Which of the following is NOT an example of a finished product (an output) in a production process?

A) bananas

B) banana cream pie

C) bananas foster

D) toasters

E) coffee pots

15) Which of the following is an example of a manufacturing business?

A) a business that repairs clocks

B) a business that makes stock kitchen cabinetry

C) a business that designs and installs custom closets

D) a business that paints custom signage

E) a business that tends plants in shopping malls

16) Which of the following is an example of a service business?

A) a dentist who makes false teeth

B) a baker who bakes chocolate chip cookies

C) a book bindery that binds books

D) a factory that makes ice skates

E) a law firm that handles divorces

17) Which of the following is an example of analytic transformation?

A) carving marble

B) making soup

C) building a tree house

D) demolishing a building

E) dyeing hair

18) Which of the following is NOT an example of analytic transformation?

A) cutting wood into floor boards

B) butchering a cow into cuts of meat

C) breaking down yard and food waste into compost

D) mixing gravel, sand, cement, and water into concrete

E) boiling maple sap into maple syrup

19) Which of the following is NOT an example of synthetic transformation?

A) removing salt from seawater in a desalination process

B) melting copper and tin together to make bronze

C) mixing wood pulp, water, and chemicals to make paper

D) stirring chocolate into milk

E) spinning sugar and dye into cotton candy

20) Which of the following is an example of synthetic transformation?

A) separating out cream to leave milk behind

B) sifting beach sand to find tiny shells

C) mixing flour, sugar, eggs, oil, and chocolate to make a cake

D) separating blood components in a centrifuge

E) burning wood