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Exam 9: Production and Operations Management

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Question 101

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

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B) False

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Question 102

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The first step in the PERT method is to assign a cost to each activity.

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Question 103

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Over the past few years,Internet-based companies have emerged to help businesses find the best supplies at the best prices.

Rysler Motors currently uses an ERP system to manage all of its production operations and coordinate them with the other operations of the company.The company also wants to implement a just-in-time (JIT)inventory system.Unfortunately for Rysler,ERP is incompatible with JIT,so if it adopts the new inventory system it will have to abandon ERP.

The end result of PERT analysis is an estimate of the total cost of completing a project.

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.

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

The six sigma approach to quality control:

In the past,production management was about using the factors of production to create finished goods.

A disadvantage of flexible manufacturing systems is that they usually require a great deal of labor because machines are rarely capable of handling a wide variety of tasks.

American manufacturers have emphasized continuous improvement as one strategy for regaining a competitive advantage in the manufacturing sector.

To reduce the cost of holding too much inventory,many companies have implemented:

The main difference between process manufacturing and an assembly process is: 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.

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

__________ is the physical arrangement of resources in the production process.

In the process of operations management,a firm transforms resources such as raw materials,supplies,and even human resources into goods and services.

Mini-Case "These are exciting times for our company.We've made a lot of changes over the past two years that have really improved our operations and lowered our costs.Now we are ready to expand into new markets.Minimotors is on its way to becoming a global player." The speaker was Sparky Weyer,president and CEO of Minimotors,Inc. ,a growing manufacturer of small (some of them downright tiny) electric motors used in a variety of power tools and appliances.Sparky was meeting with potential financial backers in an effort to obtain funding for some expensive new machinery he wanted to purchase."You may have heard about some of the ways we've cut costs," Sparky continued."We've developed a new arrangement with several of our biggest suppliers.They've agreed to make more frequent deliveries tied directly to our production schedules.This will help us reduce our inventory costs dramatically.We've also greatly reduced the number of defective motors we produce by carefully keeping tabs on all of our manufacturing processes.In fact,we have set a goal of reducing our defects to 3.4 parts per million.The main purpose of my meeting with you today is because we want to install some sophisticated new machinery and software that will allow us to quickly design and produce motors to the exact specifications of our customers.The machinery is computer-controlled and can produce custom-designed products at very little increase in cost compared to our mass produced motors.We feel this flexibility and quick response time will give us a tremendous competitive advantage and help us attract new customers.Installing the new equipment and training our workers to use it properly will be a complex project,but I'm confident that once we get everything up and running we'll be able to strengthen our position as the leading maker of high-quality electric motors." -The arrangements Minimotors has worked out with its suppliers to reduce the amount of inventory the company holds at any one time shows that it is committed to a(n) ____________.

Six Sigma is a benchmark of quality standards that many product and service industries try to achieve.

ERP is the acronym for:

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