Question 1

While mass customization works well for producers it is not used in the service sector.

Accepted Answer

A) True 
 B)False

Question 2

Telecommuting has diminished in popularity as a strategy for linking employees with work.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  investigating; planning 
B)  increasing; decreasing 
C)  decreasing; increasing 
D)  planning; investigating

Question 4

Which of the following statements best describes the distinction between production management and operations management?

Accepted Answer

A)  Production management involves activities managers perform to help create services while operations management involves the activities managers perform to produce goods. 
B)  Production management involves activities managers perform to obtain physical resources while operations management involves the activities managers perform to obtain the financial resources. 
C)  Production management involves activities managers perform to help create goods while operations management is a term that involves the activities involved in producing services as well as goods. 
D)  Production management involves activities managers perform to help create intangible products while operations management involves the activities managers perform to produce tangible products.

Question 5

In today's quality control programs, emphasis is placed on

Accepted Answer

A)  producing goods at the lowest possible cost. 
B)  keeping labor costs as low as possible. 
C)  achieving customer satisfaction. 
D)  detecting errors at the end of the production process before the goods are shipped to customers.

Question 6

A major trend in business is ________, where employees work at least part time at home using a computer.

Accepted Answer

A)  outsourcing 
B)  riveting 
C)  outbounding 
D)  telecommuting

Question 7

A process manufacturing layout is frequently used in operations that serve different customers' different needs.

Accepted Answer

A) True 
 B)False

Question 8

One of the reasons mass production techniques lost favor is that, despite their ability to keep costs relatively low, mass production lacks flexibility.

Accepted Answer

A) True 
 B)False

Question 9

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 10

BeltIn, Inc., is a seat belt manufacturer about 8 miles from two major auto assembly plants. Every two hours, BeltIn delivers seatbelts to each of the plants. The assembly plants only accept the number of seatbelts that they will use in cars during the next two hours after delivery. The auto plants embrace lean manufacturing.

Accepted Answer

A) True 
 B)False

Question 11

ISO 14001 is a collection of the best practices for managing an organization's impact on the environment.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Lean manufacturing ________ productivity.

Accepted Answer

A)  increases 
B)  decreases 
C)  has no effect on 
D)  removes the need for added

Question 15

Six Sigma is a quality measure that allows only 3.4 defects per million opportunities.

Accepted Answer

A) True 
 B)False

Question 16

Sparky sees quality control in terms of detecting potential problems to prevent their occurrence and thus save Minimotors money. The quality control process that is most closely linked to Sparky's goal is known as

Accepted Answer

A)  Six Sigma. 
B)  Quality function deployment. 
C)  ERP. 
D)  PERT analysis.

Question 17

The purpose of determining the critical path on a PERT network is to

Accepted Answer

A)  identify the sequence of tasks that takes the longest to complete. 
B)  estimate a payment schedule so that a budget can be established. 
C)  find the sequence of events that is the most expensive to complete. 
D)  establish a delivery schedule for a just-in-time inventory control program.

Question 18

Tim and Eric recently started a company focused on rehabbing old houses. Before they buy a house, they use software to create and design the renovation of each room. The program provides them with an estimate of how much of each kind of material is needed, and the orderly progression of tasks that need to be completed. Tim and Eric use computer-aided design.

Accepted Answer

A) True 
 B)False

Question 19

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 20

Gianni's Gelato, a large ice cream producer on the east coast, wants to license firms in Europe to produce and sell its products. We can conclude that this is good strategy if it wants to save the money it would cost to be ISO 9001 certified because the EU (European Union), unlike U.S. firms, has not yet adopted these standards.

Accepted Answer

A) True 
 B)False

Exam 9: Production and Operations Management

While mass customization works well for producers it is not used in the service sector.

Telecommuting has diminished in popularity as a strategy for linking employees with work.

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

Which of the following statements best describes the distinction between production management and operations management?

In today's quality control programs, emphasis is placed on

A major trend in business is ________, where employees work at least part time at home using a computer.

A process manufacturing layout is frequently used in operations that serve different customers' different needs.

One of the reasons mass production techniques lost favor is that, despite their ability to keep costs relatively low, mass production lacks flexibility.

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

ISO 14001 is a collection of the best practices for managing an organization's impact on the environment.

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

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

Lean manufacturing ________ productivity.

Six Sigma is a quality measure that allows only 3.4 defects per million opportunities.

Sparky sees quality control in terms of detecting potential problems to prevent their occurrence and thus save Minimotors money. The quality control process that is most closely linked to Sparky's goal is known as

The purpose of determining the critical path on a PERT network is to

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