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Last week John got a call from his contact,Eric at Alpine Telecomm in Switzerland,one of his company's largest international customers.As Eric put it,"This is a heads-up! Top management is asking operations to review our vendor's for ISO 14000 compliance." John's company should prepare to demonstrate:


A) an acceptable level of quality standards of the products and services it provides.
B) a level of quality in its products and services that exceeds its competitors.
C) a world-class management system in information technology and lean manufacturing.
D) best practices for managing its impact on the environment.

E) B) and D)
F) A) and B)

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Some companies will locate their production facilities near their suppliers.

A) True
B) False

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The Ritz-Carlton hotel offers restaurants with the finest service,elevators that run smoothly,and a front desk that processes people quickly.Many times fresh-cut flowers are in the lobbies and dishes of fruit are in each room.__________ is responsible for implementing these customer benefits.


A) Human resources management
B) The management staff
C) Operations management
D) Production management

E) A) and B)
F) A) and C)

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ERP software enables multiple firms to manage all of their operations on the basis of a single,integrated set of corporate dat A.

A) True
B) False

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U.S.companies that participate in the manufacturing sector:


A) depend on government imposed tariffs on foreign goods to remain competitive.
B) are growing much more rapidly than firms in the service sector.
C) have focused on innovative operations management techniques in order to regain their competitive edge.
D) have become increasingly reliant on mass production techniques as they put more emphasis on keeping costs as low as possible.

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

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Which of the following statements about facility location is most accurate?


A) Very few firms are still influenced by labor costs when making decisions about where to locate
B) Recent changes in information technology have led firms to favor locations near major urban areas
C) Manufacturers often seek to reduce time-to-market by locating facilities in areas with access to key modes of transportation
D) No matter how large they become,most companies ultimately choose to locate major facilities within a few miles of the area in which they started business

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

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Firms that satisfy the ISO 9000 and ISO 14000 standards have demonstrated a world-class management system in both quality and environmental standards.

A) True
B) False

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The advantage of computer integrated manufacturing software is that it allows computer aided design machines to communicate directly with computer aided manufacturing machines.

A) True
B) False

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While going through the line at the local grocery store,the clerk asks you if you found everything you needed,as she continues to scan the goods you are planning to purchase.At the end of the scan,a coupon emerges that you can use on future purchases of a product you have just purchased.In reviewing the key concepts from Chapter 9,you would consider this action,the store's management of its labor.

A) True
B) False

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Actually,it is much easier to custom-design service programs than it is to custom-make goods.

A) True
B) False

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______________ means tailoring products to meet the needs of a large number of individual customers.


A) Mass customization
B) Mass production
C) Competing in time
D) Feedback response production

E) A) and B)
F) B) and D)

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Mass customization is not exclusive to product intensive businesses.Service businesses have learned how to use mass customization to serve their customers.

A) True
B) False

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Statistical process control SPC)is the process of taking statistical samples of product components at each stage of the production process and plotting those results on a graph.Any variances from quality standards are recognized and can be corrected if beyond the set standards.

A) True
B) False

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Speeding up the process of responding to consumer wants and needs is a key to global competitiveness.

A) True
B) False

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Perry manages an X-ray imaging services clinic housed adjacent to a large hospital in a major metropolitan are A.Although customers are regularly surveyed to determine the level of service they perceive to be receiving,Perry finds it difficult to determine if the clinic is providing the level of service,which would qualify it as an ISO 9000 firm.He explains that the volume of patients requiring urgent care on some days is more acute than on other days.He is confident that the staff is providing the same level of quality on busy days,but surveys indicate that patients do not particularly rate their clinic experience as particularly good on those days.He expects this dilemma because he understands from his recent business class that service companies find it challenging to provide the same high level of service all the time.

A) True
B) False

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An example of a __________ is building a new home on a lot.


A) product layout
B) process layout
C) modular layout
D) fixed-position layout

E) None of the above
F) All of the above

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A major advantage of a just-in-time inventory system is that it reduces costs and the effort for both the producer and its suppliers.

A) True
B) False

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The first step in the development of a PERT chart is:


A) assigning an estimated cost to each task.
B) analyzing the tasks and determining the sequence in which they must be performed.
C) estimating the time needed to complete each task.
D) identifying the probabilities that each step in the project can be successfully completed without exceeding the estimated cost.

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

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In recent years,the service sector of the U.S.economy has:


A) grown much more rapidly than the manufacturing sector.
B) become the low-wage sector of the U.S.economy.
C) achieved extremely high productivity gains according to government reports.
D) focused less on quality and more on reducing costs of production.

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

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The Internet is a very popular place to locate your business today.

A) True
B) False

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