BUSA CHAPTER 8 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026
make-to-order strategy - Answers Production method in which products are made to customer
specification.
mass customization - Answers Production method in which fairly high volumes of customized
products are made at fairly low prices.
capacity - Answers Maximum number of products that a facility can produce over a given period
under normal working conditions.
operations management (OM) - Answers Management of the process that transforms resources into
products.
mass production (or make-to-stock strategy) - Answers Production method in which high volumes of
products are made at low cost and held in inventory in anticipation of future demand.
Operations managers manage the process that transforms inputs into outputs. Those working in a
manufacturing firm are responsible for transforming resources into finished goods. To perform this
function in today's environment, operations managers do all of the following: - Answers - Fine tune
the production process to focus on quality
- Improve operational efficiency
- Eliminate all costs that add no value to the finished product
- Hold down the costs of materials and labor
Many customers are dissatisfied with standardized products. They want goods that can be bought at
reasonable prices, but they want their goods personalized to meet their individual tastes or needs
rather than accept standardized products as they come off assembly lines. To meet the demand of
these customers, many companies have turned to an approach called ______________________. -
Answers mass customization
What would be factors you would consider in picking the location of a new software development
company? - Answers - A community in which employees and their families would enjoy living
- Ample workers with backgrounds in computer software design
- Low property tax rates
- Favorable business climate: one which offers tax incentives to entice new businesses
The three main responsibilities of an operations manager are: - Answers Production planning
Production control
Quality control
Production planning - Answers - Decide how goods will be produced (production process)
- Determine where production will take place (site selection)
- Decide how facilities will be laid out (layout planning)
Production control - Answers - Schedule and monitor the production process
- Seek and respond to feedback
- Manage materials
Quality control - Answers - Ensure goods are made to specifications
- Oversee quality standards
Transformation Process for Operations managers - Answers Inputs -> Transformation processes ->
Outputs
In selecting the appropriate production process, managers compare three basic methods: - Answers
make-to-order strategy, mass production/make-to-stock strategy, mass customization
process layout - Answers Layout that groups together workers or departments that perform similar
tasks.
product layout - Answers Layout in which products are produced by people, equipment, or
departments arranged in an assembly line.
layout - Answers Arrangement in a facility of equipment, machinery, and people to make a
production process as efficient as possible.
fixed-position layout - Answers Layout in which workers are moved to the product, which stays in one
place.
cellular layout - Answers Layout in which teams of workers perform all the tasks involved in building a
component, group of related components, or finished product.
At Vermont Teddy Bear Company, bears being made move from one workstation to another. At each
station, workers use specialized equipment to perform a particular step in the production process.
make-to-order strategy - Answers Production method in which products are made to customer
specification.
mass customization - Answers Production method in which fairly high volumes of customized
products are made at fairly low prices.
capacity - Answers Maximum number of products that a facility can produce over a given period
under normal working conditions.
operations management (OM) - Answers Management of the process that transforms resources into
products.
mass production (or make-to-stock strategy) - Answers Production method in which high volumes of
products are made at low cost and held in inventory in anticipation of future demand.
Operations managers manage the process that transforms inputs into outputs. Those working in a
manufacturing firm are responsible for transforming resources into finished goods. To perform this
function in today's environment, operations managers do all of the following: - Answers - Fine tune
the production process to focus on quality
- Improve operational efficiency
- Eliminate all costs that add no value to the finished product
- Hold down the costs of materials and labor
Many customers are dissatisfied with standardized products. They want goods that can be bought at
reasonable prices, but they want their goods personalized to meet their individual tastes or needs
rather than accept standardized products as they come off assembly lines. To meet the demand of
these customers, many companies have turned to an approach called ______________________. -
Answers mass customization
What would be factors you would consider in picking the location of a new software development
company? - Answers - A community in which employees and their families would enjoy living
- Ample workers with backgrounds in computer software design
- Low property tax rates
- Favorable business climate: one which offers tax incentives to entice new businesses
The three main responsibilities of an operations manager are: - Answers Production planning
Production control
Quality control
Production planning - Answers - Decide how goods will be produced (production process)
- Determine where production will take place (site selection)
- Decide how facilities will be laid out (layout planning)
Production control - Answers - Schedule and monitor the production process
- Seek and respond to feedback
- Manage materials
Quality control - Answers - Ensure goods are made to specifications
- Oversee quality standards
Transformation Process for Operations managers - Answers Inputs -> Transformation processes ->
Outputs
In selecting the appropriate production process, managers compare three basic methods: - Answers
make-to-order strategy, mass production/make-to-stock strategy, mass customization
process layout - Answers Layout that groups together workers or departments that perform similar
tasks.
product layout - Answers Layout in which products are produced by people, equipment, or
departments arranged in an assembly line.
layout - Answers Arrangement in a facility of equipment, machinery, and people to make a
production process as efficient as possible.
fixed-position layout - Answers Layout in which workers are moved to the product, which stays in one
place.
cellular layout - Answers Layout in which teams of workers perform all the tasks involved in building a
component, group of related components, or finished product.
At Vermont Teddy Bear Company, bears being made move from one workstation to another. At each
station, workers use specialized equipment to perform a particular step in the production process.
