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Exam 21: Operations Management

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Question 31

True/False

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Measuring the weight of boxes of candy during a production process is an example of attribute inspection.

A) True
B) False

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Question 32

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The simplest method of inventory record-keeping is called the perpetual inventory system.

A) True
B) False

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Question 33

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A firm can obtain international recognition of its quality management program by meeting a series of standards known as

The following are among the attributes listed in the Supply Chain Operations Reference (SCOR) model for assessing a supplier's performance except

A "C" class item in a system that uses the ABC method of inventory management is

A control chart is used as part of a

You Make the Call-Situation 3 The owner of a small food products company was confronted with an inventory control problem involving differences of opinion among his subordinates. His accountant, with the concurrence of his general manager, had decided to "put some teeth" into the inventory control system by deducting inventory shortages from the pay of route drivers who distributed the firm's products to stores in their respective territories. Each driver was considered responsible for the inventory on his or her truck. When the first "short" paychecks arrived, drivers were angry. Sharing their concern, their immediate supervisor, the regional manager, first went to the general manager and then, getting no satisfaction there, appealed to the owner. The regional manager argued that there was no question about the honesty of the drivers. He said that he personally had created the inventory control system the company was using, and he admitted that the system was complicated and susceptible to clerical mistakes by the driver and by the office. He pointed out that the system had never been studied by the general manager or the accountant, and he maintained that it was ethically wrong to make deductions from the small salaries of honest drivers for simple record-keeping errors.

Service businesses such as accounting firms are more concerned with _____ costs than with the cost of supplies.

A forklift is an example of a

Reasons for making component parts rather than buying them include the following reasons except

An inspection plan that judges products as acceptable or unacceptable, good or bad, is known as

Please list the objectives of inventory management described in the text.

A business buying products or services from other business firms is known as

The type of manufacturing that is used to create unique but similar products is

Kaoru Ishikawa contends that 95% of the typical company's quality problems can be solved by using tools he calls the basic six.

One of the essential elements of successful quality management is

The terms repetetive manufacturing and mass production are synonymous.

Service establishments are exempt from setting quality standards, since their product is intangible and thus cannot be measured.

Total quality management refers specifically to management of the process of manufacturing.

Briefly describe the difference between inspection vs. poka-yoke as a quality assurance method.