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Once you've forecasted the demand for a product,you can calculate the _____ requirements of your production facility.


A) budget
B) capacity
C) personnel
D) capital

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

Correct Answer

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In many companies,employees who perform similar jobs work in _____ to identify efficiency and to propose solutions.


A) quality circles
B) value groups
C) excellence circles
D) troubleshooting teams

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

Correct Answer

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Completing an activity on the critical path of a PERT chart early will delay the project.

A) True
B) False

Correct Answer

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For complex schedules,operations managers may use PERT charts to diagram the activities required to produce a good.

A) True
B) False

Correct Answer

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Welding can be dangerous and result in injuries to employees.As an alternative to having human welders,some companies use industrial robots.

A) True
B) False

Correct Answer

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Materials management includes these activities: product development,purchasing,inventory control and work scheduling.

A) True
B) False

Correct Answer

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Make-to-order production strategy is used by companies that produce similar goods in large volumes

A) True
B) False

Correct Answer

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The make-to-order process is the practice of producing high volumes of identical goods.

A) True
B) False

Correct Answer

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A(n) ______team consists of individuals from different functional areas assigned to work together throughout the product development process.


A) operations
B) project
C) product
D) functional

E) None of the above
F) A) and D)

Correct Answer

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Quality Checked Tax Service has expanded to eight offices in different parts of a major U.S. city. The owners began 30 years ago, when income tax forms and returns were processed manually and clients waited for weeks or even months for refunds to arrive. By using the latest available software and taking advantage of computerized capabilities, Quality Checked has stayed one step ahead of the national chains and other independent tax services in its market area. In fact, it’s become so successful that management has taken out a state license for selling insurance and investment products to clients, who will pay for these financial products out of their tax returns. -Much like a manufacturing firm,Quality Checked,though a service business,must constantly deal with intangibility,customized products,and frequent customer contact.

A) True
B) False

Correct Answer

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Bob Montgomery,CEO of PowerSki,uses a computer-aided design (CAD)software package to operate the industrial robots used in the production of the jetboards.

A) True
B) False

Correct Answer

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Companies that are committed to total quality management (TQM)strive to satisfy the needs of customers while generating a reasonable profit.

A) True
B) False

Correct Answer

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Which tool is best for diagramming complex schedules?


A) Gantt Chart
B) PERT chart
C) Computer-Aided Design software (CAD)
D) Project management software

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

Correct Answer

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Estimating capacity needs (goods/services to provide) for a service business is more difficult than for a manufacturer because:


A) customers arrive at service companies at staggered times.
B) customers require various levels of service.
C) service providers cannot store their services for later use.
D) weather and other factors affect the demand for services.

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

Correct Answer

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Burger King was the first fast-food restaurant to have customers fill their soda cups.This resulted in a cutback of one employee per day at every one of its restaurants.

A) True
B) False

Correct Answer

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An operations manager is a mid-level manager who directs the transformation process by which resources are converted into products.

A) True
B) False

Correct Answer

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E-procurement (or e-purchasing)involves the use of the Internet to enable senior management to interact with employees in the purchasing department.

A) True
B) False

Correct Answer

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Mass customization combines the advantages of customized products with the advantages of mass production.

A) True
B) False

Correct Answer

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Estimating capacity needs of a service business is much the same as estimating those of a manufacturer.

A) True
B) False

Correct Answer

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Quality Checked Tax Service has expanded to eight offices in different parts of a major U.S. city. The owners began 30 years ago, when income tax forms and returns were processed manually and clients waited for weeks or even months for refunds to arrive. By using the latest available software and taking advantage of computerized capabilities, Quality Checked has stayed one step ahead of the national chains and other independent tax services in its market area. In fact, it’s become so successful that management has taken out a state license for selling insurance and investment products to clients, who will pay for these financial products out of their tax returns. -Location and site selection is less important to a service provider like Quality Checked than to a goods producer or seller.

A) True
B) False

Correct Answer

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