Question 1

Experts in operations management for service industry businesses stress

Accepted Answer

A)  using records from accounting to determine what business to go after. 
B)  relying on one's individual operation as opposed to developing partnerships. 
C)  training employees to please customers by anticipating their needs. 
D)  training employees to always adhere to only one way of doing things. 
A)  using records from accounting to determine what business to go after. 
B)  relying on one's individual operation as opposed to developing partnerships. 
C)  training employees to please customers by anticipating their needs. 
D)  training employees to always adhere to only one way of doing things.

Question 2

Operations management involves inventory management, quality control, and production scheduling.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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 5

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 6

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

Accepted Answer

A)  form utility. 
B)  place utility. 
C)  use facility. 
D)  intangible productivity. 
A)  form utility. 
B)  place utility. 
C)  use facility. 
D)  intangible productivity.

Question 7

B&B Brothers Manufacturing typically creates large batches of standardized products used by plumbers, such as pipefittings and valves that must be produced in standard sizes. A continuous production process would work well for B&B.

Accepted Answer

A) True 
 B)False

Question 8

Some companies will locate their production facilities near their suppliers.

Accepted Answer

A) True 
 B)False

Question 9

Education and training are less important to workers in the service sector than to workers who have jobs in the manufacturing sector.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Since U.S. manufacturing competes on price throughout the world, innovation plays a very small part in the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 12

A disadvantage of flexible manufacturing systems is that they usually require a great deal of labor because machines are rarely capable of handling a wide variety of tasks.

Accepted Answer

A) True 
 B)False

Question 13

A PERT network consists of activities linked by arrows. Suppose two of the activities on the network are labeled "A" and "B." An arrow from "A" to "B" indicates that

Accepted Answer

A)  the same resources used to complete "A" are also used to complete "B." 
B)  "A" and "B" can be completed at the same time. 
C)  "A" takes longer to complete than "B." 
D)  "A" must be completed before "B" can begin. 
A)  the same resources used to complete "A" are also used to complete "B." 
B)  "A" and "B" can be completed at the same time. 
C)  "A" takes longer to complete than "B." 
D)  "A" must be completed before "B" can begin.

Question 14

One way to compete with cheap labor is to use robots.

Accepted Answer

A) True 
 B)False

Question 15

________ utility is the value added by the creation of finished goods and services using raw materials, components, and other inputs.

Accepted Answer

A)  Manufacturing 
B)  Marginal 
C)  Consumption 
D)  Form 
A)  Manufacturing 
B)  Marginal 
C)  Consumption 
D)  Form

Question 16

While planning a new product launch, Cassandra knew that the art department was ready to work on the promotional pieces right away. But they are not able to start until the strategy group established the price point and the purchasing group obtained the paper needed to make the promotional piece. Establishing price points would take about a week and was dependent on manufacturing getting the costs to the strategy group. This was expected a week from today. The purchasing group indicated the paper could be obtained locally the same day it was requested. Based on this information and assuming things go according to plan, when will the art department be able to begin work on the promotional pieces?

Accepted Answer

A)  1 day 
B)  1 week 
C)  2 weeks 
D)  1 month 
A)  1 day 
B)  1 week 
C)  2 weeks 
D)  1 month

Question 17

MRP is the acronym for

Accepted Answer

A)  minimum resource payments. 
B)  maximized revenue potential. 
C)  managed resource priorities. 
D)  materials requirement planning. 
A)  minimum resource payments. 
B)  maximized revenue potential. 
C)  managed resource priorities. 
D)  materials requirement planning.

Question 18

The arrangements Minimotors has worked out with its suppliers to reduce the amount of inventory the company holds at any one time show that it is committed to a(n)

Accepted Answer

A)  priority inventory scheduling system. 
B)  first in, first out inventory processing system. 
C)  just-in-time inventory control system. 
D)  ABC inventory system. 
A)  priority inventory scheduling system. 
B)  first in, first out inventory processing system. 
C)  just-in-time inventory control system. 
D)  ABC inventory system.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Companies that achieve lean manufacturing use less of everything (raw materials, labor, etc.) to produce the same amount of products.

Accepted Answer

A) True 
 B)False

Exam 9: Production and Operations Management

Experts in operations management for service industry businesses stress

Operations management involves inventory management, quality control, and production scheduling.

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.

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

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

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

B&B Brothers Manufacturing typically creates large batches of standardized products used by plumbers, such as pipefittings and valves that must be produced in standard sizes. A continuous production process would work well for B&B.

Some companies will locate their production facilities near their suppliers.

Education and training are less important to workers in the service sector than to workers who have jobs in the manufacturing sector.

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

Since U.S. manufacturing competes on price throughout the world, innovation plays a very small part in the U.S. economy.

A disadvantage of flexible manufacturing systems is that they usually require a great deal of labor because machines are rarely capable of handling a wide variety of tasks.

A PERT network consists of activities linked by arrows. Suppose two of the activities on the network are labeled "A" and "B." An arrow from "A" to "B" indicates that

One way to compete with cheap labor is to use robots.

________ utility is the value added by the creation of finished goods and services using raw materials, components, and other inputs.

MRP is the acronym for

The arrangements Minimotors has worked out with its suppliers to reduce the amount of inventory the company holds at any one time show that it is committed to a(n)

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

Companies that achieve lean manufacturing use less of everything (raw materials, labor, etc.) to produce the same amount of products.

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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