Question 1

In ________, machines are designed to do multiple tasks so that they can produce a variety of products.

Accepted Answer

A)  systems engineering 
B)  microdesign 
C)  modular construction 
D)  flexible manufacturing 
A)  systems engineering 
B)  microdesign 
C)  modular construction 
D)  flexible manufacturing

Question 2

________ is the specialized area of management that converts or transforms resources into goods and services.

Accepted Answer

A)  Logistics management 
B)  Resource engineering 
C)  Intrapreneuring 
D)  Operations management 
A)  Logistics management 
B)  Resource engineering 
C)  Intrapreneuring 
D)  Operations management

Question 3

The PERT network provides a project manager with a plan that puts all the activities of a project in the correct order that they must be accomplished, shows which activities can be accomplished simultaneously, and, also gives the manager a good estimate of how long each activity will take to complete.

Accepted Answer

A) True 
 B)False

Question 4

________ examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and correct any variances from desired quality levels.

Accepted Answer

A)  CAD/CAM 
B)  Econometrics 
C)  Analysis of variance 
D)  Statistical process control 
A)  CAD/CAM 
B)  Econometrics 
C)  Analysis of variance 
D)  Statistical process control

Question 5

In recent years, the service sector of the U.S. economy has

Accepted Answer

A)  grown much more rapidly than the manufacturing sector. 
B)  become the low-wage sector of the U.S. economy. 
C)  achieved extremely high productivity gains according to government reports. 
D)  focused less on quality and more on reducing costs of production. 
A)  grown much more rapidly than the manufacturing sector. 
B)  become the low-wage sector of the U.S. economy. 
C)  achieved extremely high productivity gains according to government reports. 
D)  focused less on quality and more on reducing costs of production.

Question 6

Statistical quality control (SQC) is the process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning of the production process.

Accepted Answer

A) True 
 B)False

Question 7

The primary characteristic of a just-in-time inventory system is that suppliers deliver parts and materials right at the time that the buyer is going to use them in the production process.

Accepted Answer

A) True 
 B)False

Question 8

Comfort Corners Home Furnishings specializes in producing custom-made residential furniture. The most efficient process for Comfort Corners to utilize would be a continuous production process.

Accepted Answer

A) True 
 B)False

Question 9

In an assembly-line manufacturing layout workers do only a few tasks at a time.

Accepted Answer

A) True 
 B)False

Question 10

U.S. businesses are known for their technological advances and their ability to implement change.

Accepted Answer

A) True 
 B)False

Question 11

When a company has the ability to produce the same amount of goods with only half the floor space and half the labor that it used in the past, the firm is practicing flexible manufacturing.

Accepted Answer

A) True 
 B)False

Question 12

Modern companies deal with many different suppliers in order to avoid problems that can arise when one supplier is unable to provide needed parts or materials.

Accepted Answer

A) True 
 B)False

Question 13

Contemporary producers and their suppliers

Accepted Answer

A)  locate in areas where they can share the same labor. 
B)  know that it is not necessary to locate close to international customers due to technology such as the Internet. 
C)  locate close together to decrease the cost of distribution. 
D)  have advanced beyond ERP to more sophisticated systems. 
A)  locate in areas where they can share the same labor. 
B)  know that it is not necessary to locate close to international customers due to technology such as the Internet. 
C)  locate close together to decrease the cost of distribution. 
D)  have advanced beyond ERP to more sophisticated systems.

Question 14

A just-in-time inventory system usually reduces costs for

Accepted Answer

A)  both the producer and its suppliers. 
B)  suppliers. 
C)  the producer. 
D)  neither the supplier nor the producer, though it does lead to more flexibility for both. 
A)  both the producer and its suppliers. 
B)  suppliers. 
C)  the producer. 
D)  neither the supplier nor the producer, though it does lead to more flexibility for both.

Question 15

Casper is a construction manager who needs to determine how long a project will take to complete and which tasks in the project have the greatest potential for delaying his project. The PERT chart will help Casper answer these questions.

Accepted Answer

A) True 
 B)False

Question 16

Aiden wants to find a way to cut back on labor and reduce his company's investment in tools and space, because he believes his firm uses more of all types of resources than is necessary. It seems that Aiden would like to adopt

Accepted Answer

A)  mass production. 
B)  marginal cost management. 
C)  lean manufacturing. 
D)  the maximum production method. 
A)  mass production. 
B)  marginal cost management. 
C)  lean manufacturing. 
D)  the maximum production method.

Question 17

McGowan Brothers Manufacturing recently redesigned its facility layout to group similar equipment and functions together. This allows flexibility in the sequence in which products are produced using these functions. McGowan Brothers' new layout is an example of the fixed-position layout.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

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. 
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.

Question 19

The value added by the creation of finished goods and services from inputs is called ownership utility.

Accepted Answer

A) True 
 B)False

Question 20

Sunnyside Travel, Inc. is a travel agency that specializes in destination wedding vacation packages. It has packages ranging from cruises to beach resorts all around the world. The customer chooses what they would like to pay, where they would like to visit, and what they would like to do. Based on this information, Sunnyside uses ________ to please the customers.

Accepted Answer

A)  excellent human resources management 
B)  the Internet 
C)  mass customization 
D)  lean manufacturing 
A)  excellent human resources management 
B)  the Internet 
C)  mass customization 
D)  lean manufacturing

Exam 9: Production and Operations Management

In ________, machines are designed to do multiple tasks so that they can produce a variety of products.

________ is the specialized area of management that converts or transforms resources into goods and services.

________ examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and correct any variances from desired quality levels.

In recent years, the service sector of the U.S. economy has

Statistical quality control (SQC) is the process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning of the production process.

The primary characteristic of a just-in-time inventory system is that suppliers deliver parts and materials right at the time that the buyer is going to use them in the production process.

Comfort Corners Home Furnishings specializes in producing custom-made residential furniture. The most efficient process for Comfort Corners to utilize would be a continuous production process.

In an assembly-line manufacturing layout workers do only a few tasks at a time.

U.S. businesses are known for their technological advances and their ability to implement change.

When a company has the ability to produce the same amount of goods with only half the floor space and half the labor that it used in the past, the firm is practicing flexible manufacturing.

Modern companies deal with many different suppliers in order to avoid problems that can arise when one supplier is unable to provide needed parts or materials.

Contemporary producers and their suppliers

A just-in-time inventory system usually reduces costs for

Casper is a construction manager who needs to determine how long a project will take to complete and which tasks in the project have the greatest potential for delaying his project. The PERT chart will help Casper answer these questions.

Aiden wants to find a way to cut back on labor and reduce his company's investment in tools and space, because he believes his firm uses more of all types of resources than is necessary. It seems that Aiden would like to adopt

McGowan Brothers Manufacturing recently redesigned its facility layout to group similar equipment and functions together. This allows flexibility in the sequence in which products are produced using these functions. McGowan Brothers' new layout is an example of the fixed-position layout.

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

The value added by the creation of finished goods and services from inputs is called ownership utility.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Working Within the Legal Environment

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

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