Question 1

Which of the following statements describes past processes that existed in manufacturing that negatively affected a firm's competitive advantage?

Accepted Answer

A)  Companies tended to produce a large quantity of the same product at a very low cost. 
B)  Companies required their suppliers to only deliver the amount of good needed for a short-term production run. 
C)  Companies changed their equipment too often, which created lost time on the job. 
D)  Companies refused to train employees in technology and on machinery. 
A)  Companies tended to produce a large quantity of the same product at a very low cost. 
B)  Companies required their suppliers to only deliver the amount of good needed for a short-term production run. 
C)  Companies changed their equipment too often, which created lost time on the job. 
D)  Companies refused to train employees in technology and on machinery.

Question 2

Enterprise resource planning (ERP) combines all functional units of a firm into the production of goods and services, and may even include subsidiaries and other firms.

Accepted Answer

A) True 
 B)False

Question 3

Under the Six Sigma quality standard the idea is to detect potential problems, in order to prevent their occurrence.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements best reflects the approach state and local governments take to influence the location decisions of businesses?

Accepted Answer

A)  State and local governments often engage in fierce competition to attract businesses, including the offer of tax breaks, zoning changes, and financial aid. 
B)  State and local governments try to avoid competition with other areas, because such competition usually backfires and creates ill will. 
C)  State and local governments no longer pursue new businesses, because they have found that attempts to attract businesses are usually too expensive to justify the results. 
D)  State and local governments work primarily through the federal government and the Small Business Administration to obtain financial assistance for firms seeking to locate in their area. 
A)  State and local governments often engage in fierce competition to attract businesses, including the offer of tax breaks, zoning changes, and financial aid. 
B)  State and local governments try to avoid competition with other areas, because such competition usually backfires and creates ill will. 
C)  State and local governments no longer pursue new businesses, because they have found that attempts to attract businesses are usually too expensive to justify the results. 
D)  State and local governments work primarily through the federal government and the Small Business Administration to obtain financial assistance for firms seeking to locate in their area.

Question 5

Firms often use a(n) ________ when working on a major project involving the production of a large item such as an airplane, ship, or bridge.

Accepted Answer

A)  assembly line layout 
B)  continuous production process 
C)  fixed-position layout 
D)  process manufacturing technique 
A)  assembly line layout 
B)  continuous production process 
C)  fixed-position layout 
D)  process manufacturing technique

Question 6

Land, labor, capital, and knowledge are inputs into the production process.

Accepted Answer

A) True 
 B)False

Question 7

A firm would be most likely to employ statistical process control (SPC) if it wanted to

Accepted Answer

A)  simplify the quality control process by taking samples at the end of the production process rather than examining every unit of output produced. 
B)  eliminate the expenses incurred by the Deming Cycle. 
C)  redefine quality control on the basis of customer needs. 
D)  make sure products meet quality standards all along the production process. 
A)  simplify the quality control process by taking samples at the end of the production process rather than examining every unit of output produced. 
B)  eliminate the expenses incurred by the Deming Cycle. 
C)  redefine quality control on the basis of customer needs. 
D)  make sure products meet quality standards all along the production process.

Question 8

The purpose of a PERT network is

Accepted Answer

A)  to monitor the quality of a product for compliance with ISO 9001 standards. 
B)  to monitor the progress of a multi-step project during its development. 
C)  to connect all firms that are ISO 9001 certified so that they can partner with each other on future projects. 
D)  to be used as a decision-making tool when evaluating the best facility locations and layouts. 
A)  to monitor the quality of a product for compliance with ISO 9001 standards. 
B)  to monitor the progress of a multi-step project during its development. 
C)  to connect all firms that are ISO 9001 certified so that they can partner with each other on future projects. 
D)  to be used as a decision-making tool when evaluating the best facility locations and layouts.

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

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 11

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 12

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.

Accepted Answer

A) True 
 B)False

Question 13

Areas with higher than average labor costs are almost always at a major disadvantage when trying to attract new businesses.

Accepted Answer

A) True 
 B)False

Question 14

Extel, Inc., acquires components to create its computers from an assortment of suppliers. The company then puts them together according to customer specifications to create custom-made computers. This is an example of

Accepted Answer

A)  the assembly process. 
B)  process manufacturing. 
C)  synthetic production. 
D)  continuous production. 
A)  the assembly process. 
B)  process manufacturing. 
C)  synthetic production. 
D)  continuous production.

Question 15

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 16

Recent developments in information technology will discourage companies from allowing employees to telecommute.

Accepted Answer

A) True 
 B)False

Question 17

The decreased use of enterprise resource planning (ERP) reflects the fact that firms are not interested in combining the computerized functions of all divisions and subsidiaries of a firm.

Accepted Answer

A) True 
 B)False

Question 18

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 19

What are the ISO 9001 and ISO 14001 standards? Why are they important?

Accepted Answer

The International Organization for Stand

Question 20

Facilities layout will depend upon the processes that are to be accomplished in the firm's operation.

Accepted Answer

A) True 
 B)False

Exam 9: Production and Operations Management

Which of the following statements describes past processes that existed in manufacturing that negatively affected a firm's competitive advantage?

Enterprise resource planning (ERP) combines all functional units of a firm into the production of goods and services, and may even include subsidiaries and other firms.

Under the Six Sigma quality standard the idea is to detect potential problems, in order to prevent their occurrence.

Which of the following statements best reflects the approach state and local governments take to influence the location decisions of businesses?

Firms often use a(n) ________ when working on a major project involving the production of a large item such as an airplane, ship, or bridge.

Land, labor, capital, and knowledge are inputs into the production process.

A firm would be most likely to employ statistical process control (SPC) if it wanted to

The purpose of a PERT network is

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

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.

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 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.

Areas with higher than average labor costs are almost always at a major disadvantage when trying to attract new businesses.

Extel, Inc., acquires components to create its computers from an assortment of suppliers. The company then puts them together according to customer specifications to create custom-made computers. This is an example of

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

Recent developments in information technology will discourage companies from allowing employees to telecommute.

The decreased use of enterprise resource planning (ERP) reflects the fact that firms are not interested in combining the computerized functions of all divisions and subsidiaries of a firm.

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.

What are the ISO 9001 and ISO 14001 standards? Why are they important?

Facilities layout will depend upon the processes that are to be accomplished in the firm's operation.

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

Appendix: Working Within the Legal Environment

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

Appendix: Managing Personal Finances

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