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With the __________ inventory control system,producers hold only the amount of materials and parts that they need for a short period of time - sometimes just a few hours.


A) ABC
B) first-in,first-out
C) just-in-time JIT)
D) maximum

E) C) and D)
F) B) and D)

Correct Answer

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In an effort to improve the quality control process at the Southern Peanut Corporation,management is introducing the importance of the Deming Cycle to employees.This suggests that managers are aware of the need to find potential problems before they occur.

A) True
B) False

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One key to the resurgence of U.S.firms as world-class competitors has been the implementation of a focus on quality.

A) True
B) False

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The Baldrige standards measure a firm's quality in several key areas including planning,leadership,and customer and market focus.

A) True
B) False

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Overall,American firms that have tried to use just-in-time inventory systems generally report disappointment with the results.

A) True
B) False

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Frolichstein Fabrics promotes itself as a specialty manufacturer that will produce according to customer specifications.This firm will probably be best served by using an intermittent process in production.

A) True
B) False

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In order to be more competitive globally,production techniques such as enterprise resource planning and lean manufacturing are being used by American manufacturers.

A) True
B) False

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Modern companies tend to deal with many different suppliers in order to avoid problems that can arise when one supplier is unable to provide needed parts or materials.

A) True
B) False

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Only firms in the manufacturing sector can create true form utility.

A) True
B) False

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The Cooldaze Ice Company compresses carbon dioxide and cools it to a very low temperature to make dry ice.The method used by Cooldaze is an example of process manufacturing.

A) True
B) False

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One strategy U.S.manufacturers have employed in order to become more competitive is:


A) focusing on providing the lowest priced products.
B) relying on advanced technology and the Internet to unite companies.
C) maintaining a distance relationship with suppliers in an effort to guard trade secrets.
D) increasing advertising budgets.

E) A) and D)
F) A) and C)

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Materials requirement planning MRP)enables a firm to make sure that the right amount of each material or component is available at the right time to satisfy its production needs.

A) True
B) False

Correct Answer

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Alice's Cookie Company makes a variety of cookies for corporate accounts and restaurants.On a good day,the orders can range from 600 - 800 cookies,with a variety of uniqueness,although the company is known for delicate shortbread and butter cookies.Some cookies have round shapes,but others are elongated rectangles,and yet others are triangles.The bakers can quickly change the cookie cutting machine to reflect the orders for the day,while computers program the ovens to make those cookies the light golden color they are known for across town.Refrigeration is also computer controlled.Alice's Cookie Company embraces flexible manufacturing and mass customization.

A) True
B) False

Correct Answer

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In the process of operations management,a firm transforms resources such as raw materials,supplies,and even human resources into goods and services.

A) True
B) False

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Millwell Manufacturing redesigned its facility layout to group similar equipment and functions together,and to allow flexibility in the sequence in which products are produced using these functions.Millwell's new layout is an example of the fixed-position layout.

A) True
B) False

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Northern States Electric is in the process of trying to achieve ISO 14000 certification.Although the criteria for certification involve several milestones,we can be assured they will be evaluated on the regularity and thoroughness of their environmental audits,and how well top management reviews the firm's adherence to policies that are environmentally friendly.

A) True
B) False

Correct Answer

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A major purpose of the program evaluation and review technique PERT)is to identify the minimum time needed to complete a project.

A) True
B) False

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Internet-focused strategies don't affect operations managers since it is not progressive for operations managers to negotiate in an interfirm environment.

A) True
B) False

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Manufacturing output in the U.S.continues to increase.The high unemployment of skilled workers who previously worked in the manufacturing sector _________________________.


A) Is the result of untrained laborers.
B) Is strictly a factor of U.S.manufacturing companies outsourcing the majority of their work.
C) Can be reconciled by the fact that manufacturing is very efficient and requires fewer workers to produce the same amount,or even more output.
D) Can be attributed to manufacturing going "green."

E) All of the above
F) A) and D)

Correct Answer

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Which of the following statements best describes the distinction between production management and operations management? Production management involves:


A) activities managers perform to help create services while operations management involves the activities managers perform to produce goods.
B) activities managers perform to obtain physical resources while operations management involves the activities managers perform to obtain the financial resources.
C) activities managers perform to help create goods while operations management is a broader term that involves the activities involved in producing services as well as goods.
D) activities managers perform to help create intangible products while operations management involves the activities managers perform to produce tangible products.

E) A) and B)
F) All of the above

Correct Answer

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