BUS-115 Introduction to BusinessChapter 9 - Producing Quality Goods and ServicesQuestionsPick the ONE best answer for the following 25-questions.Mark your answers on a Scantron answer sheet (erase all stray marks)For True/False, A=True and B=False1. True or False? Reducing production costs by selecting suppliers that offer higher-quality raw materials and components at reasonable prices is one way U.S. firms are trying to become more competitive in the global marketplace.2. True or False? The degree to which resources are physically changed is referred to as the focus of a production process.3. True or False? A typical planning horizon for many firms is one year.4. True or False? Scheduling involves both routing and timing of production activities.5. A manufacturing process that combines raw materials or components to create a finished product is referred to as a(n)a. synthetic process.b. technological process.c. analytical process.d. manufacturing utility.e. productivity measure.6. A(n) __________ line is a group of similar products that differ only in relatively minor characteristics.a. operation b. process c. product d. fixed e. capital intensive Page 1 of 57. Inventory control is concerned abouta. holding costs and manufacturing units.b. holding costs and storage costs.c. statistical quality control and storage costs.d. timing and routing.e. routing and manufacturing costs.8. A(n) __________ system combines robotics and computer-integrated manufacturing in a single production process.a. computer-aided designb. computer-aided manufacturingc. SQPd. automatede. flexible manufacturing 9. The goal of basic research is:a. To disclose new knowledge that has some potential use.b. To identify new ideas and technical advances that have the potential to result in new goods and services.c. To put new or existing knowledge to use in producing goods and services.d. Primarily to develop a new product to meet a consumer need at a profit.e. Scientific advancement, without regard for its potential use I the development of goods and services.10. The productivity growth rate in the United States isa. the highest in the world.b. currently a negative number.c. lagging behind the productivity growth rates of such countries as Korea, Taiwan, and China.d. the lowest in the world.11. True or False? An analytical process combines raw materials or components to create a finished product.12. True or False? Today the American economy is now characterized as a service economy.13. True or False? The objective of purchasing is to ensure that required materials are available when they are needed in the proper amounts and at minimum cost.Page 2 of 514. The conversion of resources into products or services can be described in terms of a. the focus or major resources used in the the conversion process, its magnitude of change, and the number of production processes employed.b. the tallness or flatness of the organization.c. purchasing.d. the economic concept of market demand for the product under consideration.e. quality circles.15. The objective of operational planning is to a. Select a planning horizon.b. Adjust output to match demand.c. Compare demand with capacity.d. Decide on a level of output for the facility.e. None of the above.16. Operations managers often refer to the resource or resources that comprise the major or most important input as thea. analytical process.b. synthetic process.c. magnitude of change.d. focus of the production.e. SQP process.17. __________ consists of activities aimed at uncovering new knowledge and scientific advancement.a. Basic researchb. Applied researchc. Developmental researchd. Implementatione. Product research18. Product __________ is the development of a plan for converting a productidea into an actual product.a. lineb. automationc. capacityd. designe. specificationPage 3 of 519. Groups of employees who meet on company time to solve problems area. quality squares.b. quality circles.c. performance committees.d. productivity rounds.e. inspection terms.20. Planning for production involves three major phases, which a. together are called the product life cycle.b. are capital intensive, monetary intensive, and labor intensive.c. are design planning, facilities planning and site selection, and operational planning.d. are design planning, product layout, and product design.e. together are called the product line.Web-reading Questions21. Which of the following statements from the Just In Time Inventory Management Strategy article is FALSE?a. JIT’s goal is to have the supplies a firm needs arrive at the exact moment they are needed.b. One of the key components of JIT is to reduce waste and add value.c. Communication both up and down the supply chain is critical when reducing inventory to the lowest possible working levels.d. A firm cannot implement a JIT system by itself; it must have the complete cooperation of its entire supply chain.e. Many modern firms are using JIT because it requires little buy-in fromtheir increasingly unmotivated workforce.22. Which of the following statements from the Just In Time Inventory Management Strategy article is FALSE?a. JIT makes production operations more efficient, cost effective and customer responsive.b. JIT relieves manufacturers of the cost and burden of housing and managing idle parts.c. JIT manufacturing results in lower total system costs but also lower product quality.d. JIT helps prevent manufacturers from being stuck with inventory thaymay become obsolete.e. Companies using JIT are more responsive to their customers.Page 4 of 523. Which of the following statements from the Just In Time Inventory Management Strategy article is FALSE?a. A weakness in the supply chain caused by a JIT weakness can be very costly to all linked in the chain.b. Labor strikes, stock outs, and ort lockouts can quickly disrupt an entire supply chain while JIT processes are in place.c. Custom made products work well in a JIT production system.d. JIT companies should always have backup systems in place to help thwart the possibility of technology or communication breakdown.e. Dell is used as an example of a computer company that uses JIT.24. Which of the following statements from the Making Sure Employees Work Hard article is FALSE?a. The standard measure of productivity – taking revenue and dividing by the number of employees – isn’t helpful to managers trying to make operational improvements .b. Employee metrics – taking the time to figure