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According to the Making Ethical Decisions box,titled,"Stay or Leave?",a firm must give its employees _______________ before closing and/or moving to another location.


A) bonuses equal to 1½ times their regular monthly pay
B) 2 weeks notice
C) a golden handshake
D) 60 days notice

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

Correct Answer

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The National Bicycle Company of Japan makes 18 bicycle models in more than 2 million combinations,with each combination designed to fit the needs of a specific customer.The customer chooses the model,size,color,and design.An analysis of this company's operation would indicate that it uses:


A) lean manufacturing.
B) flexible production.
C) mass customization.
D) continuous production.

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

Correct Answer

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__________ involves computers directly in the production process.


A) CAD
B) CAM
C) AMDA
D) AMCAP

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

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The Ritz-Carlton hotel offers restaurants with the finest service,elevators that run smoothly,and a front desk that processes people quickly.Many times fresh-cut flowers are in the lobbies and dishes of fruit are in each room.__________ is responsible for implementing these customer benefits.


A) Human resources management
B) The management staff
C) Operations management
D) Production management

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

Correct Answer

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Millennium,Inc,a leading producer of environmentally friendly cleaning agents is looking for a site for a new production facility.The company is mainly focusing on sites that are close to major highways and rail hubs and are not too far from some major population centers.This suggests that an important location consideration for Millennium is:


A) quality of life.
B) access to cheap land.
C) reducing time to market.
D) access to low cost labor.

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

Correct Answer

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An assembly process involves physically or chemically manipulating raw materials to create a product.

A) True
B) False

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Which of the following statements best describes the distinction between production management and operations management? Production management involves:


A) activities managers perform to help create services while operations management involves the activities managers perform to produce goods.
B) activities managers perform to obtain physical resources while operations management involves the activities managers perform to obtain the financial resources.
C) activities managers perform to help create goods while operations management is a broader term that involves the activities involved in producing services as well as goods.
D) activities managers perform to help create intangible products while operations management involves the activities managers perform to produce tangible products.

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

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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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Manufacturing output in the U.S.continues to increase.The high unemployment of skilled workers who previously worked in the manufacturing sector ________________________.


A) is the result of untrained laborers
B) is strictly a factor of U.S.manufacturing companies outsourcing the majority of their work
C) can be reconciled by the fact that manufacturing is very efficient and requires fewer workers to produce the same amount,or even more output
D) can be attributed to manufacturing going "green"

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

Correct Answer

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A company becomes lean by _________ its capacity to produce high-quality goods,while ___________ its need for resources.


A) investigating;planning
B) increasing;decreasing
C) decreasing;increasing
D) planning;investigating

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

Correct Answer

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Production management is the traditional term used to describe all the activities managers do to help their firms create:


A) resources.
B) goods.
C) services.
D) equities.

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

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The U.S.economy is now dominated by the _________ sector.


A) farm
B) manufacturing
C) service
D) trade

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

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___________ is a technique to analyze and sequence tasks involved in completing a project,to estimate the time needed to complete each task,and to determine the minimum amount of time needed to complete each project.


A) PERT
B) ECON
C) LIFO
D) GANTT

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

Correct Answer

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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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Flexible manufacturing systems use machines that are designed to do a multitude of tasks so that they can produce a variety of goods.

A) True
B) False

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Which of the following is an important part of operations management?


A) Determining the best means of financing the firm's operations
B) Developing the best advertising strategy to promote a firm's products
C) Deciding whether to pay a dividend to the firm's stockholders
D) Choosing the best location for a firm's facilities

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

Correct Answer

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Manufacturing companies are concerned with production management,while service companies are concerned with operations management.

A) True
B) False

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The Baldrige standards measure a firm's quality in several key areas including planning,leadership,and customer and market focus.

A) True
B) False

Correct Answer

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

Correct Answer

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In recent years,operations management has become more focused on providing services,because that is where the growth and profit potential is greatest.

A) True
B) False

Correct Answer

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