Chapter 13 Review

True or False

• Standards are steps to be followed for performing a particular work activity.

• False

MC

• An information manager is MOST likely to • (a) provide safety training for employees• (b) control a company’s energy costs • (c) develop inventory procedures for a company’s• finished products • (d) maintain a company’s voice mail system.

• D

True or False

• A business that offers products that meet customer needs at competitive prices cannot fail.

• False

MC

• Raw materials supplied by nature are called • (a) natural resources • (b) processed goods• (c) human resources • (d) agricultural products.

• A

True or False

• Businesses must develop new products to keep up with competition and changing customer needs.

• True

MC

• Matt is trying to determine if the building his company currently uses is large enough or if an expansion is necessary. Which business operation is Matt involved in? • (a) facilities management • (b) logistics • (c) scheduling • (d) safety and security.

• A

True or False

• The economy begins with retailing.

• False

True or False

• An operational plan identifies how work will be done, who will do it, and what will occur.

• True

MC

• The forms of production are extraction, processing, manufacturing, and • (a) retailing• (b) wholesaling • (c) cultivation • (d) distribution.

• C

True or False

• Mass production usually requires a smaller work area than custom production.

• False

MC

• Inventory is a detailed account of all of the following EXCEPT a company’s • (a) employees• (b) materials • (c) supplies • (d) finished products.

• A

True or False

• Manufacturing involves changing and improving the form of another product.

• False

MC

• The just-in-time process is which type of business operation? • (a) facilities management• (b) logistics • (c) scheduling • (d) safety and security.

• B

True or False

• The best practices among all competitors are called benchmarks.

• True

MC

• This type of operations software monitors and often controls machines, checks for errors and defects, and reports on production levels. • (a) scheduling • (b) groupware • (c) supply chain• management • (d) manufacturing automation.

• D

True or False

• Custom manufacturers work closely with individual customers.

• True

MC

• The activities, equipment, and resources needed to manufacture a product are part of the• (a) pure research • (b) product design • (c) production process • (d) applied research.

• C

True or False

• Logistics personnel are responsible for locating and purchasing supplies.

• True

MC

• Which of the following is MOST likely to be manufactured by an intermittent processing procedure? • (a) a bridge • (b) a set of wedding invitations • (c) an automobile • (d) gasoline.

• B

MC

• After a manufacturer establishes quality performance standards, the next step in the CPI process is to • (a) identify process activities • (b) monitor performance • (c) shut down production until the standards are implemented • (d) select measurement tools.

• D

Part 4 – Short Answer• Provide two examples for each of the three categories of products.

For each example, identify one consumer use and one business us of the product.

1.Natural resources – coal, iron, water• Consumer use – heating• Business use – light

2.Agricultural – corn, wheat• Personal use – food • Business use – create processed goods

3.Processed goods - flour, cars, paper, appliances• Dishwasher• Packaging

Part 4 – Short Answer

• What are the major differences between a processing business and a manufacturing business?• Processing – changes and improves an existing product• Manufacturing – combines and uses raw materials to make or create

a product

Part 4 Short Answer

• Why should business partners and customers be involved in a continuous improvement process?• To help identify problems and make the quality of a product better.

DEFINE:• producers • manufacturers• applied research • scheduling• facilities management • farmers• extractors • logistics• safety and security • pure research