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Exam 9: Production and Operations Management

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Question 21

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ISO 14001 is a new set of product quality standards that has replaced the old ISO 9001 standards.

A) True
B) False

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Question 22

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If a company achieves Six Sigma quality standards, they automatically win the Malcolm Baldrige award.

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Question 23

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Lean manufacturing is a strategy of producing standardized products that have no frills or extra features in order to keep prices low.

Evidence suggests that U.S. manufacturing firms can no longer compete against the best firms in the rest of the world.

Unlike an assembly line where workers perform only a few tasks, in a ________ layout, teams of workers combine to perform a variety of tasks needed to produce more complex units of a final product.

Currently, manufacturing accounts for only around 70% of U.S. GDP.

Process manufacturing refers to combining components and raw materials to make a product.

________ is the process of selecting a geographic location for a company's operations.

Technological improvements are largely responsible for the increase in productivity and efficiency of U.S. plants.

In ________, materials are physically or chemically changed to produce a product.

One key to the resurgence of U.S. firms as world-class competitors has been the implementation of a focus on quality.

In manufacturing, one way to compete with cheap labor is to

Improvements in technology have significantly increased the quality of products, as well as helped reduce costs.

To strengthen its manufacturing base, the U.S. will need to continue to innovate.

American companies, like IBM, prefer to stay the course and continue to compete by selling products instead of services.

Quality control is a continual process of checking to make certain that there is consistency in the quality of products being produced.

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

________ is a computer application that enables a firm to combine computerized functions of all divisions and subsidiaries of the firm into a single, integrated software program that uses a single database.

CAD/CAM has made it possible to custom-design products to meet the tastes of small markets with very little increase in costs.

An advantage of PERT diagrams is that they are usually so simple to draw that a computer is not needed.