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