Exam 9: Production and Operations Management

________ uses computers to help design products.

The purchasing function involves searching for quality resources and finding the best suppliers as well as negotiating the best price for the needed items.

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

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

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

Gantt charts will show the production manager if certain activities in the production process are lagging behind their acceptable time of completion.

The three basic requirements of production are: (1) creating a finished good, (2) making sure you created it at the lowest cost possible, and (3) selling it.

Businesses that provide services typically cannot use mass customization because services are not tangible products that can be customized.

One valid criticism of modern production planning methods such as ERP and MRP is that there is no way to use recent advances in information technology (IT) with these systems.

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

Oakley, a freshman just starting college, hasn't decided on his major. He is looking into operations management and is also exploring job opportunities in this field. Which of the following statements about jobs for operations management majors is most accurate? If he majors in operations management, Oakley will

________ means tailoring products to meet the needs of a large number of individual customers.

KTG Computers is looking to set up a planning system that will integrate its production and operations system with those of its suppliers. As its operations management consultant, you explain that it needs a material requirement planning (MRP) system.

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

Comfort Corners Home Furnishings uses labor and machinery to transform wood, plastic, metal, and cloth into comfortable chairs, sofas, and love seats for the home. This process creates

Star Performance, Inc., a sporting good company, and Fairview Community College are interested in following the lead of other companies and implementing criteria that will lead toward receiving the Baldrige Award. As their advisor, you emphasize that focusing on the measurement of customer satisfaction is one important area where both will need to excel.

Rita Marie and Lynn just returned from a scuba diving and snorkeling trip in the Caymans. Both travelers highly recommended the resort where they stayed. Guest services were extremely prompt in assisting with diving excursions. All resort employees were trained to greet every guest each time they encountered them, whether it was on a pathway to the pools and beaches, or in the restaurants. Many times, the employees even referred to each guest by name. ________ in the service industry is about creating a good experience for customers.

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

Retailing is one area where technology is unlikely to make a big difference in how services are provided.

ERP is the acronym for