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Process manufacturing involves taking raw materials and physically or chemically changing them into another form, while the assembly process takes the newly changed form and turns it back into the original form.

A) True
B) False

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The process layout simplifies production by using the same sequence of processes regardless of the design of the item being produced.

A) True
B) False

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Service businesses know that in order to delight customers they must be able to anticipate their needs.

A) True
B) False

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Production creates:


A) time utility.
B) possession utility.
C) form utility.
D) marginal utility.

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

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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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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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Which of the following statements best describes the impact of recent advances in information technology on business location decisions?


A) Advances in information technology give firms a greater incentive to locate near big cities, because that is where they can take full advantage of these advances
B) Western states tend to benefit the most from improvements in information technology, because most states in this region have invested heavily in Internet technology
C) Advances in information technology will have no real effect on location decisions
D) Advances in information technology will give firms more flexibility in their location decisions by reducing the need to locate close to sources of labor

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

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While mass customization works well for producers it is not used in the service sector.

A) True
B) False

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Production manager Marvin McNealy wants to link all the divisions and subsidiaries of his firm's computerized functions into a single, integrated software program that uses a single database. In order to achieve this goal, Marvin could make use of:


A) enterprise resource planning.
B) manufacturing resource planning.
C) program evaluation and review techniques.
D) Gantt Charts.

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

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

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Materials requirement planning relies on the firm's balance sheet to make sure that the right quantities of finished goods are produced.

A) True
B) False

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Enterprise resource planning (ERP) is simpler and less sophisticated than manufacturing resource planning (MRP).

A) True
B) False

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To strengthen its manufacturing base in the future, U.S. will have to:


A) uncover lower wage workers in the U.S. to compete with China.
B) continue to innovate.
C) support students in high school and college interested in studying the arts.
D) cut the amount of benefits offered to workers.

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

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Reviewing the PERT Network below: If it takes 2 weeks for each activity (represented by a box) to be completed, It can be determined that the boxes labeled with No. 1 create the critical path because this path of activities takes the shortest time to complete. Reviewing the PERT Network below: If it takes 2 weeks for each activity (represented by a box) to be completed, It can be determined that the boxes labeled with No. 1 create the critical path because this path of activities takes the shortest time to complete.

A) True
B) False

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Enterprise resource planning (ERP) software combines all functional units of a firm, into the production of goods and services, and may even include subsidiaries and other firms.

A) True
B) False

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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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The Deming Cycle is:


A) a checklist that enables managers to evaluate employee performance more systematically.
B) a systematic method of evaluating potential facility locations.
C) a process for finding potential quality errors before they occur.
D) a process for using identical production steps in the creation of different types of products.

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

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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 data.

A) True
B) False

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IMPUZZLED! Corporation produces jigsaw puzzles. The quality of its materials and the calibration of machines that cut and fit pieces of a puzzle are extremely important if it is to eliminate defects and meet customer specifications. If the company meets or exceed Six Sigma criteria, it will have no more than 60 defects per million puzzles.

A) True
B) False

Correct Answer

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Sergio inherited his father's heating and air conditioning business. In order to continue to remain robust through the 2008-2009 recession, he has decided to retrain in the installation of LEED certified equipment. Sergio is:


A) probably investing time and money into a situation with very little long-term payoff.
B) according to the Thinking Green box in Chapter 9, there are too many firms already competing in the green business. It's already time to find a new competitive advantage.
C) according to the Thinking Green box in Chapter 9, new construction business is suitable to green technology, however old buildings cannot be renovated.
D) according to the Thinking Green box in Chapter 9, green marketing has contributed significantly to the U.S. economy, even through the recession.

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

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