Question 1

Enterprise resource planning (ERP) goes beyond the capabilities of materials requirement planning (MRP) because it

Accepted Answer

A)  gives much more precise cost estimates. 
B)  finds the critical path and computes its length. 
C)  monitors the computerized functions of all the divisions and subsidiaries of the firm in a single software program. 
D)  handles research data about more than one product at the same time. 
A)  gives much more precise cost estimates. 
B)  finds the critical path and computes its length. 
C)  monitors the computerized functions of all the divisions and subsidiaries of the firm in a single software program. 
D)  handles research data about more than one product at the same time.

Question 2

Mass customization is not exclusive to product-intensive businesses. Service businesses have learned how to use mass customization to serve their customers.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

________ has transformed the purchasing function in recent years by helping firms find the best suppliers and the best prices.

Accepted Answer

A)  PERT 
B)  The Internet 
C)  CAD/CAM 
D)  QFD 
A)  PERT 
B)  The Internet 
C)  CAD/CAM 
D)  QFD

Question 5

The box, "Creating Skilled Workers with German-Style Apprenticeships," asserts that Germany is working to combat the growing skills gap by providing on-the-job education for young workers.

Accepted Answer

A) True 
 B)False

Question 6

Mini-Case
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 told potential investors, "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."
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."
-One of Sparky's goals is to expand globally. He is most interested in doing business with the nations of the EU. In order to do business with the European Union, Sparky's company should

Accepted Answer

A)  gain ISO 9001 certification. 
B)  make sure his production workers all belong to an international union. 
C)  put more emphasis on low cost rather than product quality. 
D)  buy at least 50 percent of its supplies from countries belonging to the European Union. 
A)  gain ISO 9001 certification. 
B)  make sure his production workers all belong to an international union. 
C)  put more emphasis on low cost rather than product quality. 
D)  buy at least 50 percent of its supplies from countries belonging to the European Union.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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. 
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.

Question 9

Operations management is a specialized area in management that converts resources into

Accepted Answer

A)  services, rather than goods. 
B)  goods, rather than services. 
C)  both goods and services. 
D)  financial data. 
A)  services, rather than goods. 
B)  goods, rather than services. 
C)  both goods and services. 
D)  financial data.

Question 10

Today, due to technological advancements, manufacturers in the U.S. have become so efficient, they require fewer workers to produce the same amount of output.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Arturo is a production and operations manager and he loves details. He likes to keep track of how his projects are moving along. One of Arturo's favorite tools is a bar graph that shows how much work has been completed on the projects that are currently under way and which processes are behind schedule. Arturo likes to use a(n)

Accepted Answer

A)  CAD/CAM diagram. 
B)  input-output graph. 
C)  Gantt chart. 
D)  Targeted Completion Date (TC
D)  graph. 
A)  CAD/CAM diagram. 
B)  input-output graph. 
C)  Gantt chart. 
D)  Targeted Completion Date (TC
D)  graph.

Question 13

Which of the following statements is most accurate?

Accepted Answer

A)  Most manufacturing firms are turning to an assembly line layout to produce output as efficiently as possible. 
B)  For service firms, the main objective in facility layout usually is to centralize the control of operations. 
C)  Facility layout is important for manufacturing plants because facilities layout decisions can have a huge impact on the firm's costs. 
D)  In a modular layout, workers are assigned a specific station along an assembly line and specialize in performing a specific task. 
A)  Most manufacturing firms are turning to an assembly line layout to produce output as efficiently as possible. 
B)  For service firms, the main objective in facility layout usually is to centralize the control of operations. 
C)  Facility layout is important for manufacturing plants because facilities layout decisions can have a huge impact on the firm's costs. 
D)  In a modular layout, workers are assigned a specific station along an assembly line and specialize in performing a specific task.

Question 14

Ahmed, an operations manager for a smartphone manufacturer, just accepted a new operations position with a service company. Ahmed will find that operations management at the new job will differ significantly from operations management at the manufacturer.

Accepted Answer

A) True 
 B)False

Question 15

The goal of lean manufacturing is to

Accepted Answer

A)  keep inventories of finished goods as high as possible. 
B)  produce goods and services with less of everything that goes into the process. 
C)  produce a very limited variety of goods. 
D)  become more self-sufficient by producing major components rather than buying them. 
A)  keep inventories of finished goods as high as possible. 
B)  produce goods and services with less of everything that goes into the process. 
C)  produce a very limited variety of goods. 
D)  become more self-sufficient by producing major components rather than buying them.

Question 16

Mini-Case
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 told potential investors, "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."
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."
-Sparky knows that installing the new equipment and training workers to use it efficiently will be a long and complex process consisting of many different tasks. Which of the following methods would help him determine how long this project is likely to take?

Accepted Answer

A)  TPSM (task priority scheduling method) 
B)  DA (dependency analysis) 
C)  TRSS (task and resource scheduling system) 
D)  PERT (program evaluation and review technique) 
A)  TPSM (task priority scheduling method) 
B)  DA (dependency analysis) 
C)  TRSS (task and resource scheduling system) 
D)  PERT (program evaluation and review technique)

Question 17

U.S. manufacturers are focusing on quality as a way to become more competitive globally.

Accepted Answer

A) True 
 B)False

Question 18

ERP software enables multiple firms to manage all of their operations on the basis of a single, integrated set of corporate data.

Accepted Answer

A) True 
 B)False

Question 19

According to the Reaching Beyond Our Borders box, one way Germany is remaining competitive in industrial jobs is

Accepted Answer

A)  they implement apprenticeships to provide on-the-job education for young workers. 
B)  they encourage students to leave school to take manufacturing jobs. 
C)  they rely solely on robotic technology and no longer use a human workforce. 
D)  they send all of their manufacturing work to China. 
A)  they implement apprenticeships to provide on-the-job education for young workers. 
B)  they encourage students to leave school to take manufacturing jobs. 
C)  they rely solely on robotic technology and no longer use a human workforce. 
D)  they send all of their manufacturing work to China.

Question 20

In a PERT network, a critical path is the sequence of tasks that takes the longest time to complete.

Accepted Answer

A) True 
 B)False

Exam 9: Production and Operations Management

Enterprise resource planning (ERP) goes beyond the capabilities of materials requirement planning (MRP) because it

Mass customization is not exclusive to product-intensive businesses. Service businesses have learned how to use mass customization to serve their customers.

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

________ has transformed the purchasing function in recent years by helping firms find the best suppliers and the best prices.

The box, "Creating Skilled Workers with German-Style Apprenticeships," asserts that Germany is working to combat the growing skills gap by providing on-the-job education for young workers.

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

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

Operations management is a specialized area in management that converts resources into

Today, due to technological advancements, manufacturers in the U.S. have become so efficient, they require fewer workers to produce the same amount of output.

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

Which of the following statements is most accurate?

Ahmed, an operations manager for a smartphone manufacturer, just accepted a new operations position with a service company. Ahmed will find that operations management at the new job will differ significantly from operations management at the manufacturer.

The goal of lean manufacturing is to

U.S. manufacturers are focusing on quality as a way to become more competitive globally.

ERP software enables multiple firms to manage all of their operations on the basis of a single, integrated set of corporate data.

According to the Reaching Beyond Our Borders box, one way Germany is remaining competitive in industrial jobs is

In a PERT network, a critical path is the sequence of tasks that takes the longest time to complete.

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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