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Today,rather than purchase goods and services from a large number of firms,manufacturers often try to develop a close relationship with one or two key suppliers.

A) True
B) False

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For service intensive businesses,facility layout is usually designed to centralize the decision-making process.

A) True
B) False

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Operations management in service industries is about creating a good experience for the customer.

A) True
B) False

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Operations management becomes an) ____________ when companies outsource several processes and create a network of firms that cooperatively produce products and services.


A) open operation
B) closed operation
C) interfirm process
D) conjoined process

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

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The significance of the critical path on a PERT chart is that it identifies the least costly method of producing a given product.

A) True
B) False

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Antoine's Creamery,an eastern seaboard ice cream producer wants to license firms in Europe to produce and sell its products.We can conclude that this is good strategy if it wants to save the money it would cost to be ISO 9000 certified because the EU European Union),unlike U.S.firms has not yet adopted these standards.

A) True
B) False

Correct Answer

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Telecommuting has diminished in popularity as a strategy for linking employees with work.

A) True
B) False

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The Deming Cycle is designed to catch errors before they happen.

A) True
B) False

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Brian is a construction manager who wants to determine how long a new project will take to complete and which tasks in the project have the greatest potential for delaying the project.The PERT Network model will help Brian answer these questions.

A) True
B) False

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The resurgence of U.S.manufacturing firms in recent years can be credited to:


A) the government's willingness to implement policies designed to protect U.S.firms from low-cost foreign competition.
B) a decision by many U.S.manufacturers to drastically reduce costs by making more extensive use of mass production techniques.
C) a number of significant changes in both the production techniques and management styles used by U.S.firms.
D) a relaxation of government laws that has allowed manufacturing firms to merge more easily,thus achieving stronger market positions.

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

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Operations management planning does not include decisions about:


A) where to locate a business facility and how it will be configured.
B) materials requirement planning.
C) quality control.
D) the acquisition of financing for projects.

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

Correct Answer

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Which of the following statements about the impact of CAD/CAM on manufacturing is most accurate? CAD/CAM:


A) is most useful to firms producing durable goods such as automobiles.
B) has replaced ERP as the most sophisticated resource planning technique.
C) allows firms to save money by replacing skilled labor with computers to perform all of the high-skill tasks.
D) has made it possible to produce custom-designed products with little increase in costs.

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

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Despite its early promise,computer-aided design has not met with much success in increasing productivity.

A) True
B) False

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The primary characteristic of a just-in-time inventory system is that suppliers deliver parts and materials right at the time that the buyer is going to use them in the production process.

A) True
B) False

Correct Answer

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Although lean manufacturing attempts to reduce the amount of labor used in the manufacturing process,it typically does so by increasing the amount of most of the other resources used in the production process.

A) True
B) False

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One drawback of intermittent production processes is that they tend to be much slower than continuous processes.

A) True
B) False

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The operations planning practice of inputting sales forecasts into computer software that accurately predicts the amount and timing of materials needed to complete products and projects is ________________.


A) Enterprise Resource Planning
B) Materials Requirement Planning
C) Virtual Accuracy Tool
D) Computer Based Materials Model

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

Correct Answer

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__________ is the creation of goods and services using land,labor,capital,entrepreneurship,and knowledge.


A) Resource recombination
B) Supply chain management
C) Production
D) Purchasing

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

Correct Answer

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SitRite Furniture Company uses labor and machinery to transform wood,plastic,metal and cloth into comfortable chairs,sofas,and love seats.This process creates:


A) form utility.
B) place utility.
C) use facility.
D) intangible productivity.

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

Correct Answer

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You can now put your own photo on a credit card.You can design your own jeans online and have them sent to you in a few days.Dr.Scholl'sā„¢ now features kiosks where you can create your own orthotics to fit inside your shoes.These are examples of the trend toward ________.


A) continuous processes
B) intermittent processes
C) mass customization
D) lean manufacturing

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

Correct Answer

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