Question 1

Most services businesses, such as accountants and plumbers, utilize an intermittent production system.

Accepted Answer

A) True 
 B)False  True

Question 2

Computer-integrated manufacturing combines the use of robots, CAD/CAM, and flexible manufacturing systems.

Accepted Answer

A) True 
 B)False  True

Question 3

Just-in-time inventory systems shift much of the responsibility for carrying inventory to vendors.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following statements is NOT true of standardization?

Accepted Answer

A)   Standardization is used as the basis for custom-made machinery.
B)   The availability of standardized parts makes possible the replacement of defective and worn-out components.
C)   Standardized parts can reduce the cost of repairs.
D)   Standardized parts can be produced in quantity and assembled later.

Question 5

Raw materials are often purchased on a long-term contractual basis.

Accepted Answer

A) True 
 B)False

Question 6

The phase of production control in which the manager instructs each department on the work to be done and the time allowed for its completion is called dispatching.

Accepted Answer

A) True 
 B)False

Question 7

A Gantt chart is associated with which step in production control?

Accepted Answer

A)   Routing
B)   Scheduling
C)   Dispatching
D)   Follow-up

Question 8

MRP is a computer-based production planning system that lets a firm ensure that it has all the parts and materials it needs to produce its output at the right time and place and in the right amounts.

Accepted Answer

A) True 
 B)False

Question 9

MATCHING
Complete the following using the terms listed.
-A(n) _____ transforms raw materials into finished products.

Accepted Answer

A)  process layout
B)  LEED certification
C)  Gantt chart
D)  PERT chart
E)  Inventory controlF) ISOG) critical pathH) Computer-integrated manufacturingI) UtilityJ) perpetual inventoryK) Materials requirement planningL) standardizationM) RoutingN) assembly lineO) robotP) just-in-timeQ) benchmarkingR) synthetic production systemS) make, buy, or lease decision

Question 10

Production and manufacturing refer to the same process.

Accepted Answer

A) True 
 B)False

Question 11

A process layout groups machinery and other equipment according to their functions.

Accepted Answer

A) True 
 B)False

Question 12

A production system that reduces a raw material to its component parts in order to extract one or more marketable products is a(n) _____ production system.

Accepted Answer

A)   analytic
B)   flexible
C)   intermittent
D)   synthetic

Question 13

The need for confidentiality sometimes affects the decision to purchase or lease.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not a primary task of production managers?

Accepted Answer

A)   Determining what products to produce
B)   Controlling the production process
C)   Selecting the most appropriate layout
D)   Planning the production process

Question 15

Although firms don't generally decide to completely replace mass production with flexible production or customer-driven production, the addition of these alternative forms of production can lead to job satisfaction.

Accepted Answer

A) True 
 B)False

Question 16

The critical path in a PERT diagram illustrates the sequence of operations that requires the longest time for completion.

Accepted Answer

A) True 
 B)False

Question 17

Banks most likely utilize a _____ layout.

Accepted Answer

A)   product
B)   fixed-position
C)   process
D)   customer-oriented

Question 18

A firm that produces a variety of nonstandard products in relatively small quantities would probably use a _____ layout.

Accepted Answer

A)   customer-oriented
B)   process
C)   product
D)   fixed-position

Question 19

Mass production is highly efficient for producing small quantities of unique items.

Accepted Answer

A) True 
 B)False

Question 20

Warehousing costs, taxes, insurance, and maintenance are expenses involved in storing inventory.

Accepted Answer

A) True 
 B)False

Exam 10: Production and Operations Management

Most services businesses, such as accountants and plumbers, utilize an intermittent production system.

Computer-integrated manufacturing combines the use of robots, CAD/CAM, and flexible manufacturing systems.

Just-in-time inventory systems shift much of the responsibility for carrying inventory to vendors.

Which of the following statements is NOT true of standardization?

Raw materials are often purchased on a long-term contractual basis.

The phase of production control in which the manager instructs each department on the work to be done and the time allowed for its completion is called dispatching.

A Gantt chart is associated with which step in production control?

MRP is a computer-based production planning system that lets a firm ensure that it has all the parts and materials it needs to produce its output at the right time and place and in the right amounts.

MATCHING Complete the following using the terms listed. -A(n) _____ transforms raw materials into finished products.

Production and manufacturing refer to the same process.

A process layout groups machinery and other equipment according to their functions.

A production system that reduces a raw material to its component parts in order to extract one or more marketable products is a(n) _____ production system.

The need for confidentiality sometimes affects the decision to purchase or lease.

Which of the following is not a primary task of production managers?

Although firms don't generally decide to completely replace mass production with flexible production or customer-driven production, the addition of these alternative forms of production can lead to job satisfaction.

The critical path in a PERT diagram illustrates the sequence of operations that requires the longest time for completion.

Banks most likely utilize a _____ layout.

A firm that produces a variety of nonstandard products in relatively small quantities would probably use a _____ layout.

Mass production is highly efficient for producing small quantities of unique items.

Warehousing costs, taxes, insurance, and maintenance are expenses involved in storing inventory.