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Operations management becomes a(n) ________ when companies work closely together to design, produce, and ship products to customers.


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

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

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At Stevens Manufacturing, workers are organized in teams that combine their efforts to produce complex units of a final product. Stevens is using a facility layout known as a(n) :


A) consolidated process layout.
B) continuous flow layout.
C) modular layout.
D) assembly team layout.

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

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The International Organization for Standardization continually updates acceptable international requirements in the areas of process control, product testing, storage, and delivery.

A) True
B) False

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Expensive software that enables computer-aided design machines to communicate with computer-aided manufacturing machines is called


A) a flexible system.
B) a computer-based feedback control system.
C) computer-integrated manufacturing.
D) heuristic manufacturing integration.

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

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A key element of the statistical quality control (SQC) process is the reliance on quality control experts to inspect at the end of the production line to make sure that no defective products are shipped to final customers.

A) True
B) False

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Areas with higher than average labor costs are almost always at a major disadvantage when trying to attract new businesses.

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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For many firms, operations management has become an interfirm process.

A) True
B) False

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The selection of a proper site for a business facility is important in the production and operations management processes. Identify and discuss three factors that influence the selection of a site.

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In today's quality control programs, emphasis is placed on


A) producing goods at the lowest possible cost.
B) keeping labor costs as low as possible.
C) achieving customer satisfaction.
D) detecting errors at the end of the production process before the goods are shipped to customers.

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

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Companies that achieve lean manufacturing use less of everything (raw materials, labor, etc.) to produce the same amount of products.

A) True
B) False

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Superior Supplies' largest customer recently implemented a just-in-time inventory system. As a supplier of materials to this customer, Superior Supplies will:


A) realize significant freedom in scheduling deliveries.
B) likely increase its effort and likely experience higher transportation costs.
C) place less emphasis on quality and greater emphasis on quantity.
D) need to deliver large quantities at regularly scheduled intervals.

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

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Firms that specialize in accounting, finance, and management consulting are all part of the service sector.

A) True
B) False

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Operations management transforms resources into goods and services. Green Grass Landscaping utilizes equipment, labor, and materials to develop a top notch landscape for its customers. Managing this operation may also involve maintenance services.

A) True
B) False

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CAD/CAM makes it possible to custom-design products to meet the needs of ________ with ________.


A) small markets; a decrease in cost
B) very large markets; no increase in cost
C) small markets; very little increase in cost
D) international markets; products that are complex

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

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A firm would be most likely to employ statistical process control (SPC) if it wanted to


A) simplify the quality control process by taking samples at the end of the production process rather than examining every unit of output produced.
B) eliminate the expenses incurred by the Deming Cycle.
C) redefine quality control on the basis of customer needs.
D) make sure products meet quality standards all along the production process.

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

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The production of a bridge, ship, or large airplane usually involves a variable-position facility layout.

A) True
B) False

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Skyway Aeronautics was recently awarded a contract to build a large lab module that will be attached to a new space station. The module is approximately 48 feet long, 17 feet in diameter, and weighs over 60 tons. Skyway should use an assembly-line plant layout to produce this module.

A) True
B) False

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In a just-in-time inventory system, suppliers


A) deliver materials and parts in large quantities only a few times a year.
B) enjoy much lower delivery costs.
C) have a great deal of flexibility in determining when to make deliveries.
D) are usually connected electronically so they know what will be needed and when.

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

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The main difference between process manufacturing and an assembly process is that process manufacturing uses sophisticated robots and automated machinery to produce a good or service, while an assembly process uses labor and simple tools to make a product.

A) True
B) False

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