Chapter 7 Operations Management and Quality
1) When a company produces products when consumers want them, it creates which type of utility?
A) Ownership
B) Time
C) Form
D) Place
E) Value
Answer: B
Explanation: B) Time utility is created when products are made available when customers want them, such as Halloween costumes or movie theater showings.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy.
2) Which term refers to all the activities involved in making products—goods and services—for customers?
A) Operations
B) Processes
C) Planning
D) Scheduling
E) Performance
Answer: A
Explanation: A) Operations and production refer to the same activities.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy.
3) In a business, whose job is it to draw up plans to transform resources into products and bring together basic resources, such as knowledge, physical materials, equipment, and labor?
A) CEO
B) Operations manager
C) Quality manager
D) Floor foreman
E) Supply manager
Answer: B
Explanation: B) Operations managers are responsible for ensuring that operations processes create value and provide benefits to customers.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy.
4) Which term describes services that cannot be produced ahead of time?
A) Transformed
B) Low-contact
C) Unstorable
D) Intangible
E) Consistent
Answer: C
Explanation: C) Unstorable services cannot be used at a later time.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy.
5) Which of the following is critical to the success or failure of service operations?
A) Provider-customer contact
B) Internet exposure
C) Supply chain
D) Tangible services products
E) Supplier-manufacture contact
Answer: A
Explanation: A) As a rule, managers in the service sector give more consideration to the human element in operations (as opposed to the equipment or technology involved), because success or failure depends often on provider-customer contact.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy.
6) In a low-contact system, the customer must be a part of the system to receive the service.
Answer: FALSE
Explanation: An example of a low-contact system is mail delivery, where the customer need not be present to receive the service.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy.
7) By turning raw materials into finished goods, production creates form utility.
Answer: TRUE
Explanation: Form utility is created when raw materials and human skills are converted into finished goods and services.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy.
8) Services are more tangible, more customized, and more storable than most products.
Answer: FALSE
Explanation: Services are less tangible and less storable than goods.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy.
9) Differentiate between high- and low-contact processes. Give an example of each.
Answer: Processes may be classified according to the extent of customer contact as either high- or low-contact processes. In a high-contact process, the customer must be a part of the system. Examples of high-contact processes include public transportation, medical services, and most legal services. With a low-contact process, customers need not be a part of the system to receive the service. Examples include check-processing operations at the bank and lawn-care services.
The manager of a high-contact process must be more concerned with the customer experience.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy.
10) Explain what is meant by the term utility. What type of utility is created when a pharmacy changes its evening schedule to remain open for an extra hour in response to customer needs?
Answer: Utility is a product's ability to satisfy a human want or need. The pharmacy creates time utility by being open at a convenient time for customers.
Difficulty: Difficult
AACSB: Analytical thinking
Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy.
11) Explain time, place, and form utility.
Answer: Time utility is created when a company makes products available when consumers want them. Examples may include seasonal items such as Christmas ornaments, bathing suits, and mosquito repellent. Place utility is created when a company makes a product's location convenient for consumers. An example is the placement of routinely purchased items in convenience stores or conveniently located discount stores. Form utility is created when a company combines materials to create products. A business adds customer value by providing utility.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy.
12) Which type of utility is created when a company makes products available where consumers want them?
A) Time
B) Place
C) Possession
D) Form
E) Operations
Answer: B
Explanation: B) An example of place utility is a theater showing a wide selection of movies in a popular shopping mall, when consumers wish to see the movies.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.2: Identify the three kinds of utility created by operations and the characteristics that distinguish service operations from goods production.
13) Which of the following refers to a set of methods and technologies used to produce a good or service?
A) Quality ownership
B) Production
C) Utility
D) Value added analysis
E) Operations process
Answer: E
Explanation: E) Operations process is a set of methods and technologies used to produce a good or a service. Banks use document shredding and data encryption to protect confidential information. Both are examples of operations processes.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.2: Identify the three kinds of utility created by operations and the characteristics that distinguish service operations from goods production.
14) In which of the following is the customer part of the system during service delivery?
A) A high-contact system
B) A low-contact system
C) A customer system
D) A quality system
E) A utility system
Answer: A
Explanation: A) A manicure is an example of a high-contact system.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.2: Identify the three kinds of utility created by operations and the characteristics that distinguish service operations from goods production.
15) When a company makes products available conveniently for consumers, based on where they are, which type of utility is created?
A) Time
B) Form
C) Place
D) Possession
E) Leisure
Answer: C
Explanation: C) Production adds customer value by making products available where they are convenient for customers. A fast-food restaurant located in a college union is an example of place utility.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.2: Identify the three kinds of utility created by operations and the characteristics that distinguish service operations from goods production.
16) Which of the following is the ability of a product to satisfy a human want or need?
A) Utility
B) Relative advantage
C) Content
D) Satisfaction
E) Quality ownership
Answer: A
Explanation: A) Production adds customer value by providing utility.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.2: Identify the three kinds of utility created by operations and the characteristics that distinguish service operations from goods production.
17) In which type of system must the customer be actively involved in order to receive the good or service?
A) Make-to-stock
B) High-contact
C) Intangible
D) Low contact
E) Operations process
Answer: B
Explanation: B) In a high-contact system, to receive the service, the customer must be part of the system. For example, a passenger on a train must have purchased a ticket and boarded the train before receiving the service.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.2: Identify the three kinds of utility created by operations and the characteristics that distinguish service operations from goods production.
18) What goods-producing operations method is designed around specific customer specifications?
A) High-contact systems
B) Make-to-order
C) Layout planning
D) Low-contact systems
E) Make-to-stock
Answer: B
Explanation: B) Goods production can be classified as make-to-order or make-to-stock. Make-to-order operations respond to specific customer specifications and make-to-stock operations produce standardized goods for mass consumption.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 7.2: Identify the three kinds of utility created by operations and the characteristics that distinguish service operations from goods production.
19) When a firm produces goods for mass consumption, what type of goods production method is generally used?
A) High-contact systems
B) Make-to-order
C) Layout planning
D) Low-contact systems
E) Make-to-stock
Answer: E
Explanation: E) Make-to-order operations respond to specific customer specifications, and make-to-stock operations produce standardized goods for mass consumption.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 7.2: Identify the three kinds of utility created by operations and the characteristics that distinguish service operations from goods production.
20) Firms that make only tangible products are engaged in goods production.
Answer: TRUE
Explanation: Goods are tangible products, while services may be either tangible or intangible.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.2: Identify the three kinds of utility created by operations and the characteristics that distinguish service operations from goods production.
21) Differentiate between goods production and service operations.
Answer: Goods production involves tangible products, such as radios, newspapers, buses, and textbooks. Through service operations, firms produce tangible and intangible service products such as entertainment, transportation, and education. General Electric is a company that produces goods and provides services.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 7.2: Identify the three kinds of utility created by operations and the characteristics that distinguish service operations from goods production.
22) Describe the difference between the make-to-order and make-to-stock production processes.
Answer: We can classify goods production into broad groupings by asking whether its operations process has a make-to-order or a make-to-stock emphasis. We can classify services according to the extent of customer contact required. Clothing, such as evening gowns, is available either off-the-shelf in department stores or custom-made at a designer or tailor shop. The designer or tailor's make-to-order operations respond to one-of-a-kind gown requirements including unique patterns, materials, sizes, and shapes, depending on customers' characteristics. Make-to-stock operations, in contrast, produce standard gowns in large quantities to be stocked on store shelves or in displays for mass consumption. The production processes are quite different for the two settings, including procedures for designing gowns; planning for materials purchases; equipment and work methods for cutting, sewing, and assembling gowns; and employee skills for production.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.2: Identify the three kinds of utility created by operations and the characteristics that distinguish service operations from goods production.
23) What term describes a special ability that production does especially well to outperform the competition?
A) Supply chain management
B) Total quality management
C) Process engineering
D) Operations capability
E) Value-added analysis
Answer: D
Explanation: D) A company chooses an operations capability that is compatible with its overall business strategy.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.3: Explain how companies with different business strategies are best served by having different operations capabilities.
24) What type of service is being given when a product performs reliably, has an appealing fit and consistently meets or exceeds customer expectations?
A) Quality
B) Low cost
C) Flexibility
D) Dependability
E) Exclusivity
Answer: A
Explanation: A) Toyota has focused on creating reliable cars with an appealing fit and finish, and assuring that customer expectations are met or exceeded in order to build the company's quality competence.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.3: Explain how companies with different business strategies are best served by having different operations capabilities.
25) What type of strategy to attract customers should a firm that promotes quick and on time delivery utilize?
A) Quality
B) Low cost
C) Flexibility
D) Dependability
E) Accessibility
Answer: D
Explanation: D) FedEx wants to assure that every delivery is fast and on time, as promised.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 7.3: Explain how companies with different business strategies are best served by having different operations capabilities.
26) Which of the following helps to determine operations capabilities?
A) Flexibility of activity
B) High-context system
C) Business strategy
D) Extent of customer contact
E) Production capability
Answer: C
Explanation: C) Successful firms design their operations to support the company's business strategy. In other words, managers adjust production operations to support the firms' target markets.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.3: Explain how companies with different business strategies are best served by having different operations capabilities.
27) Which type of strategy emphasizes low overhead and inventory, and a limited assortment of products to attract customers?
A) Flexibility
B) Quality
C) Low-cost
D) Dependability
E) Consistency
Answer: C
Explanation: C) Save-A-Lot offers items at savings up to 40 percent less than conventional food chains, making them a low-cost leader.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.3: Explain how companies with different business strategies are best served by having different operations capabilities.
28) A company should select the same kind of production used by most of its competitors.
Answer: FALSE
Explanation: A company should pick the kind of production that best achieves its larger business strategy.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.3: Explain how companies with different business strategies are best served by having different operations capabilities.
29) Operations capability is a special ability that production does especially well to outperform the competition.
Answer: TRUE
Explanation: The chosen operations capability should be compatible with the overall business strategy.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.3: Explain how companies with different business strategies are best served by having different operations capabilities.
30) What is an operations capability?
Answer: Operations capability refers to the activity or process that production does especially well. Each company's operations capability matches up with its business strategy so that the firm's activities, from top to bottom, are focused in a particular direction. For example, the operations capability of FedEx is dependability.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.3: Explain how companies with different business strategies are best served by having different operations capabilities.
31) Why does each company's operations capability match up with its business strategy?
Answer: Each company's operations capability matches up with its business strategy so that the firm's activities, from top to bottom, are focused in a particular direction. Aligning operations capability with business strategy helps to improve profitability. For example, FedEx focuses on dependability, which has made it a leader with business customers.
Difficulty: Difficult
AACSB: Analytical thinking
Objective: 7.3: Explain how companies with different business strategies are best served by having different operations capabilities.
32) Examining step-by-step procedures to reduce inefficiency most centrally involves which approach?
A) Operations scheduling
B) Performance analysis
C) Value-added analysis
D) Methods improvement
E) Quality ownership
Answer: D
Explanation: D) Methods improvement has been used to streamline the traditional checkout method at hotels.
Difficulty: Difficult
AACSB: Analytical thinking
Objective: 7.4: Identify the major factors that are considered in operations planning.
33) Machine, woodworking, and dry cleaning shops typically use which type of layout?
A) Product
B) Custom-products
C) Same-steps
D) Hybrid
E) Make-to-stock
Answer: B
Explanation: B) In a custom-products layout, machines and people are grouped by function in the production facility. Custom-products layouts allow for greater flexibility and are well suited to make-to-order shops.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 7.4: Identify the major factors that are considered in operations planning.
34) Which type of layout is designed to move resources through a smooth, fixed sequence of steps?
A) Same-steps
B) Location
C) Custom-products
D) Quality
E) Make-to-order
Answer: A
Explanation: A) A same-steps layout is set up to make one type of product in a fixed sequence and is arranged according to its production requirements.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 7.4: Identify the major factors that are considered in operations planning.
35) Which of the following is an advantage of using a product layout plan?
A) They do not require specialized equipment.
B) They can be easily rearranged for new applications.
C) They can only be used for custom products.
D) They are inflexible in nature.
E) Unskilled labor can be utilized.
Answer: E
Explanation: E) Same-steps layouts are efficient because the work skill is built into the equipment, allowing unskilled labor to perform simple tasks. But they are often inflexible, especially where they use specialized equipment that's hard to rearrange for new applications.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
36) Which term is defined as the combination of "characteristics of a product or service that bear on its ability to satisfy stated or implied needs"?
A) Quality
B) Production
C) Quantity
D) Clarification
E) Capacity
Answer: A
Explanation: A) Such characteristics can include a reasonable price.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
37) Performance refers to which of the following?
A) The principle that quality belongs to each person who creates it while performing a job
B) The consistency of product quality from unit to unit
C) How well the product does what it is supposed to do
D) The process by which a company analyzes a competitor's products to identify desirable improvement
E) Providing value by making products available when customers want them
Answer: C
Explanation: C) Planning for quality begins when products are being designed. Early in the process, goals are established for both performance and consistency.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
38) Consistency refers to which of the following?
A) The principle that quality belongs to each person who creates it while performing a job
B) The sameness of product quality from unit to unit
C) The sum of all activities involved in getting high-quality products into the marketplace
D) The process by which a company analyzes a competitor's products to identify desirable improvements
E) Providing value by making products available where customers want them
Answer: B
Explanation: B) This consistency is achieved by controlling for consistent raw materials, encouraging conscientious work, and maintaining equipment.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
39) Managers can work to reduce waste, inefficiency, and poor performance by examining procedures on a step-by-step basis. Which term describes this process?
A) Advance planning
B) Materials management
C) Methods improvement
D) Quality planning
E) Quality ownership
Answer: C
Explanation: C) A process flowchart is sometimes used to assist in methods improvement.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 7.4: Identify the major factors that are considered in operations planning.
40) Which of the following is the amount of a product that a company can produce under normal working conditions?
A) Capacity
B) Output
C) Efficiency
D) Burden
E) Performance
Answer: A
Explanation: A) A firm's capacity depends on how many people it employs and the number and size of its facilities.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
41) Equipment and people are grouped according to function in which type of production layout?
A) Fixed position
B) Same-steps
C) Custom-products
D) Supply-chain
E) Service
Answer: C
Explanation: C) A custom-products layout is well suited to make-to-order shops.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
42) Which term refers to how well a product does what it is supposed to do?
A) Capacity
B) Consistency
C) Reliability
D) Performance
E) Quality control
Answer: D
Explanation: D) The performance of a fast-food meal might be judged by whether it tastes good and is reasonably filling.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
43) The sameness of product quality from unit to unit is referred to by which term?
A) Utility
B) Reliability
C) Performance
D) Consistency
E) Quality control
Answer: D
Explanation: D) High consistency at its many locations has made Courtyard by Marriott a leader in the lodging industry.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
44) What type of planning has the greatest effect on production costs and flexibility?
A) Capacity
B) Layout
C) Quality
D) Location
E) Process
Answer: D
Explanation: D) Because location affects production costs and flexibility, sound location planning is crucial for factories, offices, and stores. Depending on its site, a company may be able to produce low-cost products or it may find itself at a cost disadvantage relative to its competitors.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
45) Which of the following affects how efficiently a company can respond to demand for more or different products and their ability to match competitors speed and convenience?
A) Location planning
B) Quality planning
C) Technology planning
D) Long-range capacity planning
E) Layout planning
Answer: E
Explanation: E) Layout is the physical location or floor plan for service centers, machinery, equipment, customers, and supplies. It determines whether a company can respond efficiently to demand for more and different products or whether it finds itself unable to match competitors' speed and convenience.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
46) What is the main advantage of effective process layouts?
A) Flexibility
B) Cost
C) Speed
D) Quality
E) Performance
Answer: A
Explanation: A) The main advantage of process layouts is flexibility—at any time, the shop can process individual customer orders, even if each one requires different kinds of work.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
47) When planning for quality, two key elements are
A) speed and dependability.
B) consistency and accuracy.
C) flexibility and accuracy.
D) dependability and flexibility.
E) performance and consistency.
Answer: E
Explanation: E) In addition to performance, quality also includes consistency, the sameness of product quality from unit to unit.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
48) What can be used to identify the sequence of activities, movements of materials and work performed?
A) Operations schedules
B) Process flowcharts
C) Gantt charts
D) PERT charts
E) Project schedules
Answer: B
Explanation: B) The flowchart identifies the sequence of production activities, movements of materials, and work performed at each stage of the process. It can then be analyzed to isolate wasteful activities, sources of delay, and other inefficiencies in both goods and services operations.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
49) Which of the following would be best used when producing make-to-stock operations or mass production of a product?
A) Fixed position layout
B) Process layout
C) Customer-product layout
D) Operations scheduling layout
E) Assembly line layout
Answer: E
Explanation: E) A product layout (also called a same-steps layout or assembly line layout) is set up to provide one type of service or make one type of product in a fixed sequence of production steps. All units go through the same set of steps.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
50) Why do organizations use fixed-position layouts for some goods or services?
A) When the customer requests it
B) When it is more cost effective
C) When it increases the quality level
D) When it is difficult to move the good or service
E) When consistency in production is needed
Answer: D
Explanation: D) A fixed-position layout is often used when size, shape, or other factors make it difficult to move the service to another production facility. In fixed-position layouts, the product or client remains at one location.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
51) A firm's capacity depends on both how many people it employs and the number and size of its facilities.
Answer: TRUE
Explanation: Capacity is the amount of a product that a company can produce under normal conditions.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
52) In a same-steps layout, equipment and people are set up to produce one type of good in a fixed sequence of steps and are arranged according to its production requirements.
Answer: TRUE
Explanation: A same-steps layout allows for the efficient use of an assembly line, where production operations are set up along a product-flow line.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
53) A process flowchart identifies the sequence of production activities, movements of materials, and work performed at each stage of the process.
Answer: TRUE
Explanation: A process flowchart can also be analyzed to isolate wasteful activities, sources of delay, and other inefficiencies.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
54) A fixed-position layout is most effective when there is a large-volume make-to-stock operation in place.
Answer: FALSE
Explanation: A fixed-position layout is often used when size, shape, or other factors make it difficult to move the service to another production facility. In fixed-position layouts, the product or client remains at one location. Equipment, materials, and human skills are moved to that location, as needed, to perform the service or to build the product.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
55) Describe two alternatives for production facility layouts.
Answer: In a custom-products layout, equipment and people are grouped according to function; in a same-steps layout, equipment and people are set up to produce one type of product in a fixed sequence of steps and are arranged according to production requirements. A custom-products layout is well suited for make-to-order shops while a same-steps layout is efficient for make-to-stock operations.
Difficulty: Difficult
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
56) Describe the purpose of an assembly line layout and when a firm would choose to use this format.
Answer: A product layout (also called a same-steps layout or assembly line layout) is set up to provide one type of service or make one type of product in a fixed sequence of production steps. All units go through the same set of steps. It is efficient for large-volume make-to-stock operations that mass-produce many units of a product quickly. A partially finished product moves step by step through the plant on conveyor belts or other equipment, often in a straight line, as it passes through each stage until the product is completed.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.4: Identify the major factors that are considered in operations planning.
57) Which of the following is a scheduling tool that breaks down large projects into steps to be performed and specifies the time required to perform each one?
A) Myers graphic
B) Critical path chart
C) Gantt chart
D) Process analysis graph
E) Master schedule
Answer: C
Explanation: C) A project manager uses a Gantt chart to keep the project moving on schedule.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 7.5: Discuss the information contained in four kinds of operations schedules—the master operations schedule, detailed schedule, staff schedule, and project schedule.
58) Which of the following tracks which service or products will be produced and when?
A) Master operations schedule
B) Detailed schedule
C) Gantt chart
D) Staff schedule
E) PERT chart
Answer: A
Explanation: A) The master operations schedule shows which products will be produced and when, in upcoming time periods.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.5: Discuss the information contained in four kinds of operations schedules—the master operations schedule, detailed schedule, staff schedule, and project schedule.
59) Which scheduling tool shows the necessary sequence of activities in a project and identifies the critical path?
A) Gantt chart
B) Process flowchart
C) Detailed schedule
D) Master production schedule
E) PERT chart
Answer: E
Explanation: E) Along with times required to perform the activities, the layout of the PERT chart uses arrows to show the necessary sequence among activities, from start to finish, for completing the project. It also identifies the critical path, the most time-consuming set of activities, for completing the project.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 7.5: Discuss the information contained in four kinds of operations schedules—the master operations schedule, detailed schedule, staff schedule, and project schedule.
60) Which of the following would be used to provide coordination for completing large-scale projects?