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Student: _______________________________________________________________________________________

1. Currently, manufacturing accounts for only around 70% of U.S. GDP. True False

2. The 2008 recession greatly affected the state of manufacturing in the U.S., resulting in a slow down in production and the loss of jobs. True False

3. The Green Movement has had a large affect on the service industry, but only a negligible affect on manufacturing. True False

4. Prior to the recession of 2008-2009, foreign investment bought steel plants in the U.S. and planned to run them at capacity. These and other manufacturing sites were keeping the growth in manufactured products at about 4% per year. True False

5. One key to the resurgence of U.S. firms as world-class competitors has been the implementation of a focus on quality. True False

6. Evidence suggests that U.S. manufacturing firms can no longer compete against the best firms in the rest of the world. True False

7. American manufacturers have emphasized continuous improvement as one strategy for regaining a competitive advantage in the manufacturing sector. True False

8. In order to be more competitive globally, production techniques such as enterprise resource planning and lean manufacturing are being used by American manufacturers. True False

9. To strengthen its manufacturing base, the U.S. will need to continue to innovate. True False

10. The U.S. is still manufacturing intensive. Only 25% of U.S. jobs come from the service sector. True False

11. Companies such as IBM prefer to stay the course and continue to compete by selling products instead of services. True False

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

13. U.S. businesses are known for their creativity and their ability to implement change. True False

14. The main reason for the recent resurgence of American manufacturing firms has been the quotas and tariffs imposed by the U.S. government in an attempt to protect domestic firms from cheap imports. True False

15. As the service industries became a larger part of U.S. GDP, companies have become more concerned about measuring productivity in the service sector. True False

16. U.S. manufacturers are focusing on quality as a way to become more competitive globally, assuming that cost is not an issue. True False

17. Although important, the Green Economy will do little to add value to the U.S. economy. True False

18. Casey and Kevin are scanning the "All Things Green" magazine trying to get some green ideas they can incorporate into their business. The problem with going green, however, is that quality tends to decrease, and it is difficult to incorporate contemporary operations management techniques with "green" ideas.

True

False

19. In the past, production management was about using the factors of production to create finished goods. True False

20. Operations management converts resources into goods and services. True False

21. In the process of operations management, a firm transforms resources such as raw materials, supplies, and even human resources into goods and services. True False

22. The service sector of the U.S. economy offers many jobs, but very few of them are considered high wage occupations. True False

23. Firms that specialize in accounting, finance, and management consulting are all part of the service sector. True False

24. Operations management involves inventory management, quality control, and production scheduling. True False

25. Manufacturing firms focus exclusively on the production of goods and allow other firms to provide services. True False

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

27. Operations management in service industries is about creating a good experience for the customer. True False

28. Operations management moves from knowing the needs of consumers to actually satisfying those needs. True False

29. In service industries such as hotels, quality management training is important to ensure that all employees are "certified" in their positions. True False

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

31. The quality standard for service industries such as luxury hotels is meeting the customers' requests. True False

32. Service businesses know that in order to delight customers they must be able to anticipate their needs. True False

33. One important issue with respect to managing the operation of a business is to make certain that customers leave feeling as though they had a good experience with your service and with your company in general. True False

34. Manufacturing companies are concerned with production management, while service companies are concerned with operations management. True False

35. An important strategy in operations management is using technology to anticipate customer needs. In the hotel industry, this is known as guest-recognition services. True False

36. Operations management transforms resources into goods and services, such as a landscape company that utilizes equipment, labor, and materials to develop a landscape. Managing this operation may also involve maintenance services. True False

37. Jason recently graduated with a degree in operations management from a respected university. The knowledge he gained and skills he

developed while obtaining this degree could make him an attractive employee for either a manufacturing firm or a service firm. True False

38. Justin Tyme is a manager at Elastic Plastic, Inc. His duties include production scheduling and keeping tabs on the company's inventory. These activities suggest that Justin is involved in promotions management. True False

39. While going through the line at the local grocery store, the clerk asks you if you found everything you needed, as she continues to scan the goods you are planning to purchase. At the end of the scan, a coupon emerges that you can use on future purchases of a product you have just purchased. In reviewing the key concepts from Chapter 9, you would consider this action, the store's management of its labor. True False

40. Marci Costas is majoring in operations management at Brunau University. Unfortunately, the evolution of the U.S. from a manufacturingoriented to a service-oriented economy means that Marci will probably find few job openings in her field of study. True False

41. When firms successfully produce products, they create form utility. True False

42. Only firms in the manufacturing sector can create true form utility. True False

43. 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. True False

44. The value added by the creation of finished goods and services from inputs is called ownership utility. True False

45. Process manufacturing refers to combining components and raw materials to make a product. True False

46. Process manufacturing physically or chemically alters materials to create finished goods. True False

47. An assembly process involves physically or chemically manipulating raw materials to create a product. True False

48. A continuous production process is characterized by long production runs that turn out finished goods over time. True False

49. Intermittent production processes are characterized by short production runs and frequent changes of machinery in order to produce different products like customized furniture. True False

50. Contemporary manufacturers in the U.S. lack the flexibility to use intermittent production processes. True False

51. One drawback of intermittent production processes is that they tend to be much slower than continuous processes. True False

52. The production process requires inputs, controls, and outputs. True False

53. Mass production techniques allowed firms to respond quickly to the individual needs of consumers. True False

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

55. The ability to integrate computers into the design and manufacture of products has had the greatest impact on production techniques in recent years.

True

False

56. CAD/CAM has made it possible to custom-design products to meet the tastes of small markets with very little increase in costs. True False

57. CAD systems allow designers to work in three dimensions. True False

58. Despite its early promise, computer-aided design has not met with much success in increasing productivity. True False

59. The purpose of computer-integrated manufacturing (CIM) is to unite computer-aided design with computer-aided manufacturing. True False

60. The advantage of computer integrated manufacturing software is that it allows computer aided design machines to communicate directly with computer aided manufacturing machines. True False

61. So far, the high cost of CAD/CAM techniques has limited their use to large, expensive manufactured goods such as automobiles. True False

62. Flexible manufacturing systems use machines that are designed to do a multitude of tasks so that they can produce a variety of goods. True False

63. 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. True False

64. One way to compete with cheap labor is to use robots. True False

65. Lean manufacturing is a strategy of producing standardized products that have no frills or extra features in order to keep prices low. True False

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

67. Technological improvements are largely responsible for the increase in productivity and efficiency of U.S. plants. True False

68. The higher productivity of U.S. plants makes it possible to pay higher wages. True False

69. Mass customization is tailoring products to meet the needs of individual customers. True False

70. Mass customization is a strategy of convincing customers to choose from a relatively small number of alternatives in order to achieve the efficiencies of mass production. True False

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

72. Actually, it is much easier to custom-design service programs than it is to custom-make goods. True False

73. Speeding up the process of responding to consumer wants and needs is a key to global competitiveness. True False

74. A fast-changing plant needs a fast-moving employee base to achieve maximum productivity. True False

75. Companies that employ lean manufacturing and flexible manufacturing produce better quality products, but have costlier production lines. True False

76. When a company has the ability to produce the same amount of goods with only half the floor space and half the labor that it used in the past, the firm is practicing flexible manufacturing. True False

77. Improvements in technology have significantly increased the quality of products, as well as helped reduce costs. True False

78. Manufacturers use CAM (computer aided manufacturing) to create three-dimensional designs of products before they are built. True False

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

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

81. Process manufacturing involves taking raw materials and physically or chemically changing them into another form, while the assembly process takes the newly changed form and turns it back into the original form. True False

82. The main difference between process manufacturing and an assembly process is: Process manufacturing uses sophisticated robots and automated machinery to produce a good or service, while an assembly process uses labor and simple tools to make a product. True False

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

84. Although lean manufacturing attempts to reduce the amount of labor used in the manufacturing process, it typically does so by increasing the amount of most of the other resources used in the production process. True False

85. The Cooldaze Ice Company compresses carbon dioxide and cools it to a very low temperature to make dry ice. The method used by Cooldaze is an example of process manufacturing. True False

86. Featured Furnishings is a company that specializes in producing custom-made furniture. A continuous production process would be the most efficient way for Featured Furnishings to produce its products. True False

87. J & R Industries typically produces very 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 J & R. True False

88. Frolichstein Fabrics promotes itself as a specialty manufacturer that will produce according to customer specifications. This firm will probably be best served by using an intermittent process in production. True False

89. Computers and robots are only useful in continuous production processes where the same type of product is produced many times. True False

90. Trace and Tim own a company that rehabs old houses. Prior to buying a house, they use software to create and design the renovation of each room. The program provides them with an estimation of how much of each kind of material is needed, and the orderly progression of tasks that need to be completed. Trace and Tim use computer-aided design. True False

91. Seat-belts Unlimited, Inc. is located about 8 miles from two major auto assembly plants. The firm delivers seat-belts about every two hours to each of the plants. The assembly plants only accept the number of seat-belts that they will assemble into cars, during the next two hours after delivery. The auto plants embrace lean manufacturing. True False

92. Alice's Cookie Company makes a variety of cookies for corporate accounts and restaurants. On a good day, the orders can range from 600 - 800 cookies, with a variety of uniqueness, although the company is known for delicate shortbread and butter cookies. Some cookies have round shapes, but other are elongated rectangles, and yet others are triangles. The bakers can quickly change the cookie cutting machine to reflect the orders for the day, while computers program the ovens to make those cookies the light golden color they are known for across town. Refrigeration is also computer controlled. Alice's Cookie Company embraces flexible manufacturing and mass customization. True False

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

94. When considering the issue of facility location, it is important to find an isolated location so that work can get done without interruption from customers. True False

95. Operations management planning is concerned with finding the ideal location for a business and also with materials requirement planning. It leaves decisions about purchasing and inventory control to marketing. True False

96. When it comes to location decisions, labor costs are no longer an important consideration for most manufacturing firms. True False

97. The Internet is a very popular place to locate your business today. True False

98. Due to the growth of the Internet, the cost of labor is no longer an important consideration in location decisions of business firms. True False

99. Manufacturing firms that want to minimize time-to-market are likely to choose facility sites that give them easy access to their preferred modes of transportation. True False

100. Some companies will locate their production facilities near their suppliers. True False

101. Many state and local governments offer tax incentives and government services to attract businesses. True False

102. In making a location decision, businesses seldom consider "quality of life" in various locations, because factors that influence quality of life have little or no impact on profits. True False

103. According to the Making Ethical Decisions box, titled, "Stay or Leave", by law a firm must give employees 60 days notice of a facility or plant closing. True False

104. Internet-focused strategies don't affect operations managers since it is not progressive for operations managers to negotiate in an interfirm environment. True False

105. Operations managers are adjusting from a relatively stable environment to one that is constantly changing and evolving. True False

106. For many firms, operations management has become an interfirm process. True False

107. Facility layout is the function of operations management that considers the physical arrangement of resources (including people) in the production process. True False

108. For service intensive businesses, facility layout is usually designed to centralize the decision-making process. True False

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

True

False

110. The production of a bridge, ship, or large airplane usually involves a variable-position facility layout. True False

111. The process layout simplifies production by using the same sequence of processes regardless of the design of the item being produced. True False

112. In an assembly line manufacturing layout workers do only a few tasks at a time. True False

113. In a modular manufacturing layout teams of workers combine to produce more complex units. True False

114. A product manufacturing layout is used to produce large quantities of a few types of products. True False

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

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

117. Materials requirement planning (MRP) enables a firm to make sure that the right amount of each material or component is available at the right time to satisfy its production needs. True False

118. Materials requirement planning relies on the firm's balance sheet to make sure that the right quantities of finished goods are produced. True False

119. One limitation of materials requirement planning (MRP) is that it is not a computer-based approach. True False

120. Enterprise resource planning (ERP) is simpler and less sophisticated than manufacturing resource planning (MRP). True False

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

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

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

124. Over the past few years, Internet-based companies have emerged to help businesses find the best supplies at the best prices. True False

125. Modern companies tend to deal with many different suppliers in order to avoid problems that can arise when one supplier is unable to provide needed parts or materials. True False

126. Today, rather than purchase goods and services from a large number of firms, manufacturers often try to develop a close relationship with one or two key suppliers. True False

127. The purchasing function of operations management seldom uses the Internet to make purchasing decisions. True False

128. 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.

True

False

129. The concept: "Just-In-Time" (JIT) works well if a company works with lots of suppliers. It also helps avoid the break downs that occur when operating with an enterprise resource planning system. True False

130. In a just-in-time inventory system, the producer holds large quantities of the materials and components used in the production process in its inventory to ensure that it always has enough on hand. True False

131. Overall, American firms that have tried to use just-in-time inventory systems generally report disappointment with the results. True False

132. In JIT inventory systems a manufacturer normally communicates its production plans to suppliers so that they can deliver needed parts and materials just in time for the manufacturer to use them. True False

133. Quality control is a continual process of checking to make certain that there is consistency in the quality of products being produced. True False

134. Six Sigma is a benchmark of quality standards that many product and service industries try to achieve. True False

135. Under the six sigma quality standard the idea is to detect potential problems, in order to prevent their occurrence. True False

136. Six sigma is a quality measure that allows only 3.4 defects per million opportunities. True False

137. A key element of the statistical quality control [SQC] process is the reliance on quality control experts to inspect at the end of the production line to make sure that no defective products are shipped to final customers. True False

138. 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. True False

139. Statistical process control (SPC) is the process of taking statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards. True False

140. The Deming Cycle is designed to catch errors before they happen. True False

141. The Deming Cycle approach to quality control consists of: Plan, Do, Check, Act. True False

142. Service organizations find it difficult to provide outstanding service every time because the process is so labor intensive. True False

143. If a company achieves Six Sigma quality standards, they automatically win the Malcolm Baldrige award. True False

144. The Baldrige standards measure a firm's quality in several key areas including planning, leadership, and customer and market focus. True False

145. ISO is a world-wide, non-governmental federation that sets global measures of quality. True False

146. The International Organization for Standardization continually updates acceptable international requirements in the areas of process control, product testing, storage, and delivery. True False

147. ISO 9000 refers to a set of international standards for quality management and assurance. True False

148. ISO 14000 is a new set of product quality standards that has replaced the old ISO 9000 standards. True False

149. The European Union demands that all firms that want to do business with its member nations must satisfy ISO 9000 standards. True False

150. ISO 14000 is a collection of the best practices for managing an organization's impact on the environment. True False

151. Firms that satisfy the ISO 9000 and ISO 14000 standards have demonstrated a world-class management system in both quality and environmental standards. True False

152. 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. True False

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

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

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

156. 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. True False

157. A major advantage of a just-in-time inventory system is that it reduces costs and the effort for both the producer and its suppliers. True False

158. Recent research suggests that the best way to maintain consistently high quality in the production process is to give a group of specialists in a separate quality control department the authority to inspect each product at the end of the production process. True False

159. Operations Managers have learned that quality control is not a never- ending process. Just before you add packaging to the finished product, official company inspectors do a random spot-check. All inspections have to occur at the end of a production run because, only then can the inspector see the total finished product in order to determine if quality is jeopardized. True False

160. Jamal, an operations manager for a product manufacturer accepted an operations position with a company that produces a service. Jamal will find that operations management at the new job is significantly different from operations management at the old firm. True False

161. Andre is an outdoorsman whose love of hunting and fishing led him to start a mail order company specializing in hunting and fishing gear. He decided to locate his business near the Ozarks in southwestern Missouri, partly because of low labor costs, but mainly because the area offered excellent fishing and hunting opportunities, a low crime rate, and a pleasant climate. Ken's location decision was strongly influenced by quality of life considerations. True False

162. Amalia is an operations manager at a medium sized service firm. Amalia is recommending that her firm use the Internet to make its services more readily available to its customers. Amalia's recommendation reflects a growing trend in service sector firms. True False

163. Solarsys Aeronautics was awarded a contract to build a large lab module that will be attached to a new space station. The module is approximately 48 feet long, 17 feet in diameter, and weighs over sixty tons. Solarsys should use an assembly line plant layout to produce this module. True False

164. Millwell Manufacturing redesigned its facility layout to group similar equipment and functions together, and to allow flexibility in the

sequence in which products are produced using these functions. Millwood's new layout is an example of the fixed-position layout. True False

165. Impact Computers wants to set up a planning system that enables it to 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. True False

166. Rysler Motors currently uses an ERP system to manage all of its production operations and coordinate them with the other operations of the company. The company also wants to implement a just-in-time (JIT) inventory system. Unfortunately for Rysler, ERP is incompatible with JIT, so if it adopts the new inventory system it will have to abandon ERP. True False

167. Mypartz, Inc. is a major supplier of components used by Idle Time Gaming Systems. Idle Time Gaming wants to implement a just-intime inventory system. Mypartz should benefit from this approach, since JIT systems greatly simplify the task of suppliers. True False

168. In an effort to improve the quality control process at the Southern Peanut Corporation, management is introducing the importance of the Deming Cycle to employees. This suggests that managers are aware of the need to find potential problems before they occur. True False

169. Northern States Electric is in the process of trying to achieve ISO 14000 certification. Although the criteria for certification involve several milestones, we can be assured they will be evaluated on the regularity and thoroughness of their environmental audits, and how well top management reviews the firm's adherence to policies that are environmentally friendly. True False

170. Star Performance, Inc. a sporting good company and Fairview Community College are interested in following the lead of other companies and implement 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. True False

171. Antoine's Creamery, an eastern seaboard ice cream producer 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 9000 certified because the EU (European Union), unlike U.S. firms has not yet adopted these standards. True False

172. Perry manages an X-ray imaging services clinic housed adjacent to a large hospital in a major metropolitan area. Although customers are regularly surveyed to determine the level of service they perceive to be receiving, Perry finds it difficult to determine if the clinic is providing the level of service which would qualify it as an ISO 9000 firm. He explains that the volume of patients requiring urgent care on some days is more acute than on other days. He is confident that the staff is providing the same level of quality on busy days, but surveys indicate that patients do not particularly rate their clinic experience as particularly good on those days. He expects this dilemma because he understands from his recent business class that service companies find it challenging to provide the same high level of service all the time. True False

173. IMPUZZLED! Corporation produces jigsaw puzzles. The quality of its materials and the calibration of machines that cut and fit pieces of a puzzle are extremely important if it is to eliminate defects and meet customer specifications. If the company meets or exceed Six Sigma criteria, it will have no more than 60 defects per million puzzles. True False

174. SQC (Statistical Quality Control) is a popular technique for analyzing the tasks involved to complete a given project, estimating the time required to complete each task, and identifying the minimum time needed to complete the project. True False

175. A major purpose of the program evaluation and review technique (PERT) is to identify the minimum time needed to complete a project. True False

176. The end result of PERT analysis is an estimate of the total cost of completing a project. True False

177. The critical path identified by PERT analysis is the sequence of tasks that can be completed in the shortest amount of time. True False

178. PERT is a popular technique for analyzing the tasks involved to complete a given project, estimating the time required to complete each task, and identifying the minimum time needed to complete the project. True False

179. An advantage of PERT diagrams is that they are usually so simple to draw that a computer is not needed.

True

False

180. In a PERT network, a critical path is the sequence of tasks that takes the longest time to complete. True False

181. Compared to PERT networks, Gantt charts provide a more basic way to track progress on a given project. True False

182. A Gantt chart is a bar graph showing production managers what projects are being worked on and the stage of development at any given time. True False

183. The significance of the critical path on a PERT chart is that it identifies the least costly method of producing a given product. True False

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

185. The PERT network provides a project manager with a plan that puts all the activities of a project in the correct order that they must be accomplished; shows which activities can be accomplished simultaneously, and, also gives the manager a good estimate of how long each activity will take to complete. True False

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

187. Brian is a construction manager who wants to determine how long a new project will take to complete and which tasks in the project have the greatest potential for delaying the project. The PERT Network model will help Brian answer these questions. True False

188. Casper is in charge of a complex project. He wants to see how all the different activities involved in completing the project are related to each other. One way to illustrate these relationships would be to construct a PERT chart. True False

189. In order to determine overall progress on her current project, production manager Michelle Hudson often refers to a bar graph that shows what activities are being worked on, and how much of each task has been completed on a daily basis. Michelle is using a Gantt chart. True False

190. Reviewing the PERT Network below: If it takes 2 weeks for each activity (represented by a box) to be completed, It can be determined that the boxes labeled with No. 1 create the critical path because this path of activities takes the shortest time to complete.

True

False

191. U.S. companies that participate in the manufacturing sector: A. B. C. D. depend on government imposed tariffs on foreign goods to remain competitive. are growing much more rapidly than firms in the service sector. have focused on innovative operations management techniques in order to regain their competitive edge. have become increasingly reliant on mass production techniques as they put more emphasis on keeping costs as low as possible.

192. In recent years, the service sector of the U.S. economy has: A. B. C. D. grown much more rapidly than the manufacturing sector. become the low-wage sector of the U.S. economy. achieved extremely high productivity gains according to government reports. focused less on quality and more on reducing costs of production.

193. During the deep recession of 2008-2009, A. B. C. D. the service industry was hardest hit. job loss was severe in the manufacturing and housing industries. education and healthcare were hardest hit. the U.S. saw productivity rise in manufacturing due to increased layoffs.

194. According to the Thinking Green box, titled, "The Green Movement Improves the Economy", A. B. C. D. the Green Movement is determined as the only external circumstance that will bring the U.S. out of the recession. green products are selling well, but not green services. the Green Movement is producing upwards of $200 billion worth of products and services. wealthy people can still afford to buy things, and it is the wealthy that are interested in going green.

195. Efforts to redesign and rebuild America's manufacturing base are likely to: A. B. C. D. fade in importance as foreign manufacturers continue to gain control of important markets. continue to be an important issue in the near future. focus on government efforts to foster performance in a few key industries. give way to an intense effort to convert the U.S. to an entirely service-based economy.

196. One strategy U.S. manufacturers have employed in order to become more competitive is: A. B. C. D. focussing on providing the lowest priced products. relying on advanced technology and the Internet to unite companies. maintaining a distance relationship with suppliers in an effort to guard trade secrets. increasing advertising budgets.

197. To strengthen its manufacturing base in the future, U.S. will have to: A. B. C. D. uncover lower wage workers in the U.S. to compete with China. continue to innovate. support students in high school and college interested in studying the arts. cut the amount of benefits offered to workers.

198. The resurgence of U.S. manufacturing firms in recent years can be credited to: A. B. C. D. the government's willingness to implement policies designed to protect U.S. firms from low-cost foreign competition. a decision by many U.S. manufacturers to drastically reduce costs by making more extensive use of mass production techniques. a number of significant changes in both the production techniques and management styles used by U.S. firms. a relaxation of government laws that has allowed manufacturing firms to merge more easily, thus achieving stronger market positions.

199. Sergio inherited his father's heating and air conditioning business. In order to continue to remain robust through the 2008-2009 recession, he has decided to retrain in the installation of LEED certified equipment. Sergio is: A. probably investing time and money into a situation with very little long-term payoff. B. according to the Thinking Green box in Chapter 9, there are too many firms already competing in the green business. It's already time to find a new competitive advantage. C. according to the Thinking Green box in Chapter 9, new construction business is suitable to green technology, however old buildings cannot be renovated. D. according to the Thinking Green box in Chapter 9, green marketing has contributed significantly to the U.S. economy, even through the recession. 200. Production management is the traditional term used to describe all the activities managers do to help their firms create: A. B. C. D. resources. goods. services. equities.

201. Operations management is a specialized area in management that converts resources into: A. B. C. D. services, rather than goods. goods, rather than services. both goods and services. financial data.

202. __________ is the specialized area of management that converts or transforms resources into goods and services. A. B. C. D. Logistics management Resource engineering Intrapreneuring Operations management

203. __________ is the creation of goods and services using land, labor, capital, entrepreneurship, and knowledge. A. B. C. D. Resource recombination Supply chain management Production Purchasing

204. The U.S. economy is now dominated by the _________ sector. A. B. C. D. farm service manufacturing trade

205. Operations management in the service sector is focused on creating:

A. B. C. D.

good experiences for those who use the service. jobs for the local community. additional customer expectations. inexpensive ways to get things done.

206. Experts in operations management for service industry type businesses stress: A. B. C. D. using records from accounting to determine what business to go after. relying on one's individual operation as opposed to developing partnerships. training employees on quality management. training employees to always adhere to only one way of doing things.

207. Operations management is the __________ phase of management. A. B. C. D. planning implementation control building

208. The basic reason the term production management has been replaced by the term operations management is that: A. B. C. D. the U.S. economy has moved toward a more socialist approach with government controlling a greater share of the production process. a much larger share of total output is being produced by nonprofit organizations. the United States is now a service economy. the United States now exports more than it imports.

209. Aaron is a freshman in college who has not yet decided on his major. He is thinking about majoring in operations management and is 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, Aaron will: A. B. C. D. have limited job opportunities because operations management positions are only available in the slowly growing manufacturing sector. acquire skills and knowledge that are valuable to firms in both the manufacturing and service sectors. have plenty of job offers, but they will mainly be in low wage positions in the service sector. find plenty of employment opportunities in the government and education, but not very many in the private sector.

210. Which of the following statements best describes the distinction between production management and operations management? Production management involves: A. activities managers perform to help create services while operations management involves the activities managers perform to produce goods. B. activities managers perform to obtain physical resources while operations management involves the activities managers perform to obtain the financial resources. C. activities managers perform to help create goods while operations management is a broader term that involves the activities involved in producing services as well as goods. D. activities managers perform to help create intangible products while operations management involves the activities managers perform to produce tangible products. 211. Which of the following statements about operations management in the service sector is most accurate? Operations management in the service sector: A. B. C. D. is all about providing the service at the lowest cost. should focus on providing customers with a good experience. has less flexibility than operations management in the manufacturing sector, because services are not technology driven. has done a good job of increasing output, but a poor job of improving quality.

212. For most service businesses the quality standard has become: A. B. C. D. providing prompt and predictable service. providing a competitive level of service at the lowest cost. delighting customers by anticipating their needs. less important than it is for manufacturing businesses.

213. The Ritz-Carlton hotel offers restaurants with the finest service, elevators that run smoothly, and a front desk that processes people quickly. Many times fresh-cut flowers are in the lobbies and dishes of fruit are in each room. __________ is responsible for implementing these customer benefits. A. B. C. D. Human resources management The management staff Operations management Production management

214. Each day the general manager at the New Life Grocery Store reviews employee work schedules, including the late night stock crew, the checkers, the baggers, the deli, produce, and meat department crews, and the office personnel. He coordinates work schedules with shipments, as well as the information he collects from registers that indicates the busiest hours at the store, and then he communicates any exceptions to his department managers. These daily tasks are part of ______________. A. B. C. D. operations management promotions management distributive management marketing management

215. Production creates:

A. B. C. D.

time utility. possession utility. form utility. marginal utility.

216. ___________ utility is the value added by the creation of finished goods and services using raw materials, components, and other inputs. A. B. C. D. Manufacturing Marginal Consumption Form

217. In ____________, materials are physically or chemically changed to produce a product. A. B. C. D. process manufacturing assembly processes utilitarian production diffusive manufacturing

218. A(n) __________ puts together components to make a product. A. B. C. D. modular process compression process assembly process econometric process

219. A production process characterized by long production runs to turn out finished goods over time is known as a(n): A. B. C. D. assembly process. continuous process. extended process. unrestricted process.

220. A production process characterized by a short production run and frequent adjustments to machines so that different products can be produced is known as a(n): A. B. C. D. just-in-time process. lean manufacturing system. analytic process. intermittent process.

221. Most new manufacturing facilities use: A. B. C. D. continuous processes. intermittent processes. traditional processes. synthetic processes.

222. In the past, the idea behind mass production was to: A. B. C. D. produce goods of the highest possible quality. give producers the maximum flexibility to respond to customer preferences. make large quantities of a limited variety of products at very low cost. give workers more control over their work environment.

223. ____________ uses computers to help design products. A. B. C. D. PERT QPC DPA CAD

224. __________ involves computers directly in the production process. A. B. C. D. CAD CAM AMDA AMCAP

225. CAD/CAM makes it possible to custom-design products to meet the needs of __________ with __________. A. B. C. D. small markets; a decrease in cost very large markets; no increase in cost small markets; very little increase in cost international markets; products that are complex

226. CAD has __________ productivity in many firms. A. B. C. D. unfortunately had no effect on actually decreased increased splintered

227. Sophisticated software that enables computer-aided design machines to communicate with computer-aided manufacturing machines is called: A. B. C. D. a flexible system. a computer-based feedback control system. computer-integrated manufacturing. heuristic manufacturing integration.

228. In __________, machines are designed to do multiple tasks so that they can produce a variety of products. A. B. C. D. systems engineering microdesign modular construction flexible manufacturing

229. In manufacturing, one way to compete with cheap labor is to: A. B. C. D. use robots. hire experienced people. make the production line longer. increase inputs to the system.

230. The goal of lean manufacturing is to: A. B. C. D. keep inventories of finished goods as high as possible. produce goods and services with less of everything that goes into the process. produce a very limited variety of goods. become more self sufficient by producing major components rather than buying them.

231. ______________ means tailoring products to meet the needs of a large number of individual customers. A. B. C. D. Mass customization Mass production Competing in time Feedback response production

232. Which of the following statements describes past processes that existed in manufacturing that negatively affected a firm's competitive advantage? A. B. C. D. Companies tended to produce a large quantity of the same product at a very low cost Companies required their suppliers to only deliver the amount of good needed for a short-term production run Companies changed their equipment too often, which created lost time on the job Companies refused to train employees in technology and on machinery

233. Which of the following statements about the impact of CAD/CAM on manufacturing is most accurate? CAD/CAM: A. B. C. D. is most useful to firms producing durable goods such as automobiles. has replaced ERP as the most sophisticated resource planning technique. allows firms to save money by replacing skilled labor with computers to perform all of the high-skill tasks. has made it possible to produce custom-designed products with little increase in costs.

234. A big advantage of computer integrated manufacturing software is that it: A. B. C. D. makes it possible to custom-design products to meet the needs of small markets with very little increase in cost. replaces "dumb" robots with "smart" computers. allows personal computers to communicate directly with the firm's server. controls all of the actions of the assembly line from a central location.

235. A basic characteristic of flexible manufacturing is that it: A. B. C. D. relies heavily on labor, since humans are more adaptable than machines. uses machines designed to perform multiple tasks so they can be used to produce a variety of products. achieves its flexibility at the cost of much slower rates of production than mass production techniques. is only possible when using mass production processes.

236. A company becomes lean by _________ its capacity to produce high-quality goods, while ___________ its need for resources. A. B. C. D. investigating; planning increasing; decreasing decreasing; increasing planning; investigating

237. Lean manufacturing ___________ productivity. A. B. C. D. increases decreases has no effect on removes the need for added

238. The main objective of lean manufacturing is to: A. keep labor costs as low as possible by expanding the use of other resources.

B. produce products that have fewer frills and options in order to simplify the production process and keep costs as low as possible. C. produce goods using less of all types of resources. D. get state and local governments to handle many of the tasks currently performed by the firm. 239. A benefit of CAD (Computer Aided Design) and CAM (Computer Assisted Manufacturing) is: A. B. C. D. it basically eliminates the need for human intervention. it saves on materials costs. it permits customization without a significant increase in price. it produces a higher quality product which allows the manufacturer to charge more.

240. SitRite Furniture Company uses labor and machinery to transform wood, plastic, metal and cloth into comfortable chairs, sofas, and love seats. This process creates: A. B. C. D. form utility. place utility. use facility. intangible productivity.

241. Wild Bill's Cap Emporium offers to produce hats and caps according to customers' requests. Wild Bill's utilizes a(n): A. B. C. D. analytic system. just-in-time system. intermittent process. continuous process.

242. The National Bicycle Company of Japan makes 18 bicycle models in more than 2 million combinations, with each combination designed to fit the needs of a specific customer. The customer chooses the model, size, color, and design. An analysis of this company's operation would indicate that it uses: A. B. C. D. lean manufacturing. flexible production. mass customization. continuous production.

243. Marilyn's Travel Inc. is a medium-sized travel agency that specializes in vacation packages. It has packages available around the globe everything from cruises, to beach resort vacations, to historical tours. The customer chooses the amount they would like to pay, the area of the world they would like to visit and what they would like to do. Based on this information Marilyn's Travel uses __________ to delight the customers. A. B. C. D. excellent human resources management the Internet mass customization lean manufacturing

244. To create their Deluxe Beef Sandwiches, Robbie's Roast Beef finely slices prime roast beef, stacks it on a sesame bun, adds special seasonings, cheese, onions, and mushrooms. The value added by Robbie's when it combines these ingredients to make a sandwich is known as: A. B. C. D. consumer surplus. the analytic function. marginal utility. form utility.

245. Operations managers at Alumax Corporation have found that they can achieve efficient production only by producing very large quantities of aluminum without shutting down the production process. This indicates that Alumax should use a(n) ___________ production process. A. B. C. D. intermittent assembly continuous systematic

246. Cooltreet, Inc., combines sugar, cream, eggs, and flavorings, then churns and cools the resulting mixture to a very low temperature until it freezes, creating ice cream. The method Cooltreet uses is an example of: A. B. C. D. an analytic production system. process manufacturing. an assembly process. a symbiotic process.

247. Megatronics, Inc. obtains computer components from a variety of suppliers and puts them together according to customer specifications to create custom-made computers. This process is an example of: A. B. C. D. an assembly process. process manufacturing. synthetic production. continuous production.

248. Transformation, Inc. builds machinery and robots that can assemble a variety of autos and trucks - including light pick-up trucks, twoseater sports cars, luxury sedans, full-size vans, and SUVs. Transformation sells products to companies that require ___________.

A. B. C. D.

micro-engineering. flexible manufacturing. continuous production. multiple output processing.

249. Justin is a project manager for a large defense systems company. Each contract for sophisticated weaponry requires the cooperation of several firms. Each time Justin begins a new project, he reviews what it takes to successfully complete a project. Which of the following would not constitute one of his goals? A. He wants to meet the demands of the customer's contract with respect to the kind of product the customer wants and how soon they need it B. He wants the product to achieve the quality level expected by the customer C. He wants his company to be the lead company and maintain a leadership position in all aspects of the project to project a strong image to the customer D. He wants to work within the costs budgeted for this project 250. Alex is a production manager who believes his firm uses more of all types of resources than is necessary to produce its products. He would like to find a way to cut back on labor, and reduce the firm's investment in tools and space as well. It seems that Edwin would like to adopt: A. B. C. D. mass production. marginal cost management. lean manufacturing. the maximum production method.

251. The EZee Office Furniture Company makes high quality desks and chairs for executive offices. The company is about to make a radical change in its production process. It will take measurements from customers, have them select from a variety of fabric patterns and answer some basic questions about the furniture styles they like, then design a chair and desk that is ergonomically designed for maximum comfort for its users. The new method EZee Office will use is an example of: A. B. C. D. just-in-time manufacturing. analytic production. mass customization. individualized production.

252. Initially, ATM's (automated teller machines) were introduced so that customers could make withdrawals from their bank accounts, day or night. As the technology improved, the machines offered a variety of services including the acceptance of deposits, the ability to get credit card advances, check your bank account balances, and even purchase prepaid cell phone credit. ATMs now offer: A. B. C. D. flexible manufacturing for its customers. lean services because it only needs to keep a certain amount of cash in each machine. technology similar to CAD. faster service and mass customization.

253. Dewey Dare is a production and operations manager with a clothing manufacturer. He has been looking into a system that will enable his company to take measurements from a customer and program machines to design and produce custom-cut clothes at little additional cost. This type of system is an example of the benefits of: A. B. C. D. mass production. just-in-time production systems. the PERT method. CAD/CAM.

254. HandZone, a manufacturer of high quality gloves and a variety of fashion accessories, already has both computer-aided design and computer-aided manufacturing. Unfortunately, the two systems cannot communicate with each other. David Warmdigit, a production manager at HandZone, has heard about some software that allows CAD and CAM to work together, and wants to learn more about it. David is interested in: A. B. C. D. linear programming software. holistic internalization of operations. computer integrated manufacturing. complex systems integration.

255. Sarah works for an architectural firm. The partners in the firm have always drawn the plans for projects by hand. While Sarah learned how to draw by hand in college, she also became skilled on computer programs that permitted her to create designs in three dimensions. She plans to demonstrate the effectiveness of such programs to the firm's partners. The computer program she will recommend to the partners is: A. B. C. D. CAD. CAM. CIM. SCM.

256. __________ is the process of selecting a geographic location for a company's operations. A. B. C. D. Facility location Facility layout FRP Geographic requirements planning

257. Which of the following is a likely reason that a company would move its facility from one location to another? A. Availability of expensive labor B. Higher quotas on competing goods

C. Access to various modes of transportation D. Availability of a retired workforce 258. Operations management planning does not include decisions about: A. B. C. D. where to locate a business facility and how it will be configured. materials requirement planning. quality control. the acquisition of financing for projects.

259. Firms that have a goal of ____________ tend to locate facilities near major highways, ports, rail lines and airports. A. B. C. D. reducing time to market using ERP techniques replacing labor with machinery switching to a more service-oriented product mix

260. Contemporary producers and their suppliers, A. B. C. D. locate in areas where they can share the same labor. know that it is not necessary to locate close to international customers due to technology such as the Internet. locate close together to decrease the cost of distribution. have advanced beyond ERP to more sophisticated systems.

261. According to the Making Ethical Decisions box, titled, "Stay or Leave?", a firm must give its employees _______________ before closing and/or moving to another location. A. B. C. D. bonuses equal to 1 times their regular monthly pay 2 weeks notice. a golden handshake 60 days notice

262. A major trend in business is ___________, where employees work at least part time at home using a computer and modem. A. B. C. D. outsourcing riveting outbounding telecommuting

263. Operations management becomes a(n) ____________ when companies outsource several processes and create a network of firms that cooperatively produce products and services. A. B. C. D. open operation closed operation interfirm process conjoined process

264. __________ is the physical arrangement of resources in the production process. A. B. C. D. Facility location Facility layout ERP RRL

265. Moduar facilities layouts consist of: A. B. C. D. teams of workers who work together on a complex assembly. lines of workers who do a small series of tasks and then pass along the product through the line to the next worker. virtual companies and their supplier relationships. workers who have a model in front of them that they try to replicate several times.

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

267. Unlike an assembly line where workers perform only a few tasks, in a _________ layout, teams of workers combine to perform a variety of tasks needed to produce more complex units of a final product. A. B. C. D. modular spoke and wheel network cluster

268. In manufacturing, a __________ is used to produce large quantities of a few types of products. A. product layout B. process layout C. modular layout

D. fixed-position layout 269. In manufacturing, a __________ is frequently used in operations that serve different customers' different needs. A. B. C. D. product layout process layout modular layout fixed-position layout

270. An example of a __________ is building a new home on a lot. A. B. C. D. product layout process layout modular layout fixed-position layout

271. The operations planning practice of inputting sales forecasts into computer software that accurately predicts the amount and timing of materials needed to complete products and projects is ________________. A. B. C. D. Enterprise Resource Planning Materials Requirement Planning Virtual Accuracy Tool Computer Based Materials Model

272. MRP is a technique that helps managers: A. B. C. D. develop a reliable sales forecast. schedule the sequence of tasks workers must perform in order to complete a project. determine how many workers are needed to staff various departments. make sure that the right parts and materials are available at the right time.

273. MRP is the acronym for: A. B. C. D. minimum resource payments. maximized revenue potential. managed resource priorities. materials requirement planning.

274. ERP is the acronym for: A. B. C. D. Educated Rights Planning. Extensive Research Planning. Enterprise Resource Planning. Emphatic Requirements Planning.

275. ___________ is a computer application that enables a firm to combine computerized functions of all divisions and subsidiaries of the firm into a single, integrated software program that uses a single database. A. B. C. D. Materials requirement planning (MRP) PERT analysis Manufacturing resource planning (MRP II) Enterprise resource planning (ERP)

276. __________ is the operations management planning function that searches for quality material resources, finds the best suppliers, and negotiates the best price. A. B. C. D. Marketing Collective bargaining Bartering Purchasing

277. __________ has transformed the purchasing function in recent years by helping firms find the best suppliers and the best prices. A. B. C. D. PERT The Internet CAD/CAM QFD

278. Today manufacturers are relying more heavily on: A. B. C. D. one or two suppliers because firms share so much information. the bidding process to obtain the lowest price. many suppliers to keep its leverage. developing an MRP system for purchasing.

279. With the __________ inventory control system, producers hold only the amount of materials and parts that they need for a short period of time - sometimes just a few hours. A. B. C. D. ABC first-in, first-out just-in-time (JIT) maximum

280. To reduce the cost of holding too much inventory, many companies have implemented: A. B. C. D. ABC inventory management. first-in, last-out inventory control. just-in-time inventory control. maximum inventory management.

281. Maintaining ___________ involves producing what the customer wants while reducing errors before and after delivery to the customer. A. B. C. D. manufacturing control allocative efficiency CAD/CAM quality

282. In today's quality control programs, emphasis is placed on: A. B. C. D. producing goods at the lowest possible cost. keeping labor costs as low as possible. achieving customer satisfaction. detecting errors at the end of the production process before the goods are shipped to customers.

283. The six sigma approach to quality control: A. B. C. D. relies on a special team of experts to examine every unit of output at the end of the production process. detects potential problems early to prevent their occurrence. views quality control as a function of the marketing department. allows only 600 defective units per one thousand units produced.

284. ____________ examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and correct any variances from desired quality levels. A. B. C. D. CAD/CAM Econometrics Analysis of variance Statistical process control

285. The Deming Cycle is: A. B. C. D. a checklist that enables managers to evaluate employee performance more systematically. a systematic method of evaluating potential facility locations. a process for finding potential quality errors before they occur. a process for using identical production steps in the creation of different types of products.

286. The ___________ National Quality Award is given to firms that achieve an outstanding level of overall quality based on performance in seven key areas. A. B. C. D. Association of Operations Managers Excellence in Production Committee National Association of Manufacturers Malcolm Baldrige

287. ___________ are a set of international standards for quality management and quality assurance. A. B. C. D. EPA 2000 ISO 14000 ISO 9000 TQM 2003/2004

288. ____________ standards are concerned with the best practices for managing an organization's environmental impacts. A. B. C. D. EPA 2000 ISO 14000 Eurogreen 700 Enviro 2001

289. Which of the following is an important part of operations management? A. B. C. D. Determining the best means of financing the firm's operations Developing the best advertising strategy to promote a firm's products Deciding whether to pay a dividend to the firm's stockholders Choosing the best location for a firm's facilities

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

291. Which of the following statements about facility location is most accurate? A. B. C. D. Very few firms are still influenced by labor costs when making decisions about where to locate Recent changes in information technology have led firms to favor locations near major urban areas Manufacturers often seek to reduce time-to-market by locating facilities in areas with access to key modes of transportation No matter how large they become, most companies ultimately choose to locate major facilities within a few miles of the area in which they started business

292. Which of the following statements best reflects the approach state and local governments take to influence the location decisions of businesses? State and local governments: A. often engage in fierce competition to attract businesses, including the offer of tax breaks, zoning changes, and financial aid B. try to avoid competition with other areas, because such competition usually backfires and creates ill-will C. no longer pursue new businesses, because they have found that attempts to attract businesses are usually too expensive to justify the results D. work primarily through the federal government and the Small Business Administration to obtain financial assistance for firms seeking to locate in their area 293. Which of the following statements is most accurate? A. B. C. D. Most manufacturing firms are turning to an assembly line layout to produce output as efficiently as possible For service firms, the main objective in facility layout usually is to centralize the control of operations Facility layout is important for manufacturing plants because facilities layout decisions can have a huge impact on the firm's costs In a modular layout, workers are assigned a specific station along an assembly line and specialize in performing a specific task

294. New developments in information technology have: A. B. C. D. had little effect on business location decisions. given firms even greater flexibility in their location decisions. caused a movement of firms back to urban areas where access to this technology is greatest. reduced the impact government policies have on location decisions.

295. Contemporary operations management planning is an interfirm process. This means: A. B. C. D. the process must integrate all of the functional units of a firm's operation, including production, marketing, finance, and logistics. the process is a confidential plan that is not shared with suppliers or customers. It stays within the firm. it is a process where several firms work closely together to produce goods and services, and anticipate a changing environment. it is a process that seeks stability by adhering to top down management.

296. The main idea in the Making Ethical Decisions box, "Stay or Leave?" indicates: A. a need for firms to place a higher level of importance on time to market when choosing facilities locations. B. that the goal of finding the lowest cost location should never be overshadowed by other concerns if the firm is to remain loyal to its stockholders. C. that many locations do not meet ISO 14000 standards. D. a need for firms to consider the economic impact of its existence and/or departure from a particular location. 297. Enterprise resource planning (ERP) goes beyond the capabilities of MRP because it: A. B. C. D. gives much more precise cost estimates. finds the critical path and compute its length. monitors the computerized functions of all the divisions and subsidiaries of the firm in a single software program. handles research data about more than one product at the same time.

298. A just-in-time inventory system usually reduces costs for: A. B. C. D. both the producer and its suppliers. suppliers, but not the producer. the producer, but not its suppliers. neither the supplier nor the producer, though it does lead to more flexibility for both.

299. In a just-in-time inventory system, suppliers: A. B. C. D. deliver materials and parts in large quantities only a few times a year. enjoy much lower delivery costs. have a great deal of flexibility in determining when to make deliveries. become more like a department in the producing firm rather than a separate business.

300. A firm would be most likely to employ statistical process control (SPC) if it wanted to: 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. 301. A firm that is certified as meeting both ISO 9000 and ISO 14000 standards has demonstrated: A. B. C. D. world-class management of both quality and environmental standards. sound financial and marketing practices. ethical treatment of both customers and employees. that its recruitment and training programs for employees protect and promote basic human rights.

302. A small hospital in a suburb of a large metropolitan area wants to further develop its operations and services in order to compete with other hospitals in the region. In analyzing the criteria for making this happen, location is a primary concern. If it constructs additional floors, it could increase the quality of a few services in its present location, but city regulations would require more parking. As it looks for new property, which of the following criteria would not be an important consideration for this facility? A. B. C. D. Access to good roads and interstate system Tax benefits Skilled labor Time to market

303. As businesses strive for market expansion, companies add to their sales force, but opt to eliminate sales offices across the nation and internationally. How are these firms able to remotely operate a sales force that contributes toward increasing the bottom line? A. A sensible strategy is to transport sales professionals to the world headquarters on a bi-weekly basis B. The business strategically moves manufacturing facilities to low cost areas and allocates more funds toward the sales professionals to meet face to face with management C. The operation is maintained with an advanced MRP system D. The operation is managed with teleconferencing information technology, and telecommuting 304. Millennium, Inc, a leading producer of environmentally friendly cleaning agents is looking for a site for a new production facility. The company is mainly focusing on sites that are close to major highways and rail hubs and are not too far from some major population centers. This suggests that an important location consideration for Millennium is: A. B. C. D. quality of life. access to cheap land. reducing time to market. access to low cost labor.

305. X-Sport Industries is a U.S.-based manufacturer of sporting goods. Recently, it has decided to make a major push to sell its products in the European Union. In order to succeed in this new market X-Sport will need to: A. B. C. D. become certified in ISO 9000 standards. convert its financial assets into Euros. avoid reliance on the Deming cycle. reduce the wages of its production workers.

306. At Stevens Manufacturing workers are organized in teams that combine their efforts to produce complex units of a final product. Stevens is using a facility layout known as a (n): A. B. C. D. consolidated process layout. continuous flow layout. modular layout. assembly team layout.

307. Production manager Marvin McNealy wants to link all the divisions and subsidiaries of his firm's computerized functions into a single, integrated software program that uses a single database. In order to achieve this goal, Marvin could make use of: A. B. C. D. enterprise resource planning. manufacturing resource planning. program evaluation and review techniques. Gantt Charts.

308. Superior Supplies' largest customer recently implemented a just-in-time inventory system. As a supplier of materials to this customer, Superior will: A. B. C. D. realize significant freedom in scheduling deliveries. likely increase its effort and likely experience higher transportation costs. place less emphasis on quality and greater emphasis on quantity. need to deliver large quantities at regularly scheduled intervals.

309. Last week John got a call from his contact, Eric at Alpine Telecomm in Switzerland, one of his company's largest international customers. As Eric put it, "This is a heads-up! Top management is asking operations to review our vendor's for ISO 14000 compliance." John's company should prepare to demonstrate: A. B. C. D. an acceptable level of quality standards of the products and services it provides. a level of quality in its products and services that exceeds its competitors. a world-class management system in information technology and lean manufacturing. best practices for managing its impact on the environment.

310. ___________ is a technique to analyze and sequence tasks involved in completing a project, to estimate the time needed to complete each task, and to determine the minimum amount of time needed to complete each project. A. B. C. D. PERT ECON LIFO GANTT

311. In a PERT network, the sequence of tasks that takes the longest to complete is called the: A. optimal path. B. maximum path. C. straight path.

D. critical path. 312. The purpose of a PERT network is: A. B. C. D. to monitor the quality of a product for compliance with ISO 9000 standards. to monitor the progress of a multi-step project during its development. to connect all firms that are ISO 9000 certified so that they can partner with each other on future projects. to be used as a decision making tool when evaluating the best facility locations and layouts.

313. A bar graph that shows what projects or tasks are in process and how much of each is completed is called a(n): A. B. C. D. Grid chart. Gantt chart. Priority chart. Stem chart.

314. Which of the following would be most helpful to a production manager who wanted to determine the minimum time required to complete a proposed project? A. B. C. D. TQM CAD/CAM ERP PERT

315. The first step in the development of a PERT chart is: A. B. C. D. assigning an estimated cost to each task. analyzing the tasks and determining the sequence in which they must be performed. estimating the time needed to complete each task. identifying the probabilities that each step in the project can be successfully completed without exceeding the estimated cost.

316. The purpose of determining the critical path on a PERT network is to: A. B. C. D. identify the sequence of tasks that takes the longest to complete. estimate a payment schedule so that a budget can be established. find the sequence of events that is the most expensive to complete. establish a delivery schedule for a just-in-time inventory control program.

317. Both PERT diagrams and Gantt charts are useful to managers concerned with: A. B. C. D. calculating the rate of profit earned in a particular market. making sure that projects are completed on time. estimating the cost of completing a project. establishing formal lines of authority and responsibility within an organization.

318. Becca works as a new product development engineer for a company that makes solar panels for residential and commercial purposes. Her company uses PERT network software for all development projects. As she nears the final month of her timeline for completing a new panel, Becca will focus on those activities that are: A. B. C. D. most costly to complete. on the priority bar of the PERT chart. near the end of the PERT network. on the critical path of the PERT network.

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

320. Courtney was planning a new product launch. She knew that the art department was ready to work on the promotional pieces now, but they couldn't 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. Assuming things go as planned and based on this information, when will the art department be able to begin work on the promotional pieces? A. B. C. D. Immediately 1 week 2 weeks 1 month

321. Joel was planning a new product launch. He knew that the art department was ready to work on the promotional pieces now, but they couldn't start until the marketing strategy group established the price point and the purchasing department obtained the paper needed to design the promotional piece. Establishing price points would take about a week and was dependent on manufacturing getting the costs to the marketing 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. Assuming things go as planned and based on this information, which of the following tasks could be as much as a week late without jeopardizing the deadline for the entire project? A. Marketing strategy's determination of the price point

B. Manufacturing's determination of the costs C. Purchasing obtaining the paper D. The art department taking a month-long vacation 322. Reviewing the PERT Network below: If it takes 1, 2, or 3 weeks for each activity (represented by a box) to be completed, the critical path is represented by: A. the path that begins with "Start" and continues with all boxes labeled with No. 1. B. the path that begins with "Start", continues with all boxes labeled with No. 2, and concludes with "Finish". C. the path that begins with "Start" continues with one box labeled with No. 2, proceeds with all boxes labeled with No. 3, and concludes with "Finish". D. the path that begins with "Start" continues with all boxes labeled with No. 1, and concludes with "Finish".

323. In analyzing the importance of a PERT network, it is reasonable to claim: A. PERT networks assist management in keeping tabs of employees who are not carrying their weight of production. B. it is almost impossible to do enterprise resource planning without PERT due to the number of firms that must be coordinated in the network. C. time overruns are costly. D. PERT, similar to the self-service lanes at the grocery store enhance customer convenience. 324. Manny is a production and operations manager who likes to keep track of how various projects are progressing. One of Manny's favorite tools is a bar graph that shows how much work has been completed on the projects that are currently underway and which processes are behind schedule. Manny likes to use a(n): A. B. C. D. CAD/CAM diagram. input-output graph. Gantt chart. Targeted Completion Date Graph.

325. The selection of a proper site for a business facility is important in the production and operations management processes. Identify and discuss three factors that influence the selection of a site.

326. How are MRP and ERP similar? How do they differ?

327. How has the emphasis of quality control changed in recent years? Describe some of the modern quality control techniques that illustrate this change in emphasis.

328. PERT is a popular control method used by organizations. Explain the purpose of PERT analysis, and describe the steps involved in constructing a PERT network. Your explanation should include a discussion of the significance of the critical path in a PERT network.

329. What are the ISO 9000 and ISO 14000 standards? Why are they important?

Mini-Case "These are exciting times for our company. We've made a lot of changes over the past two years that have really improved our operations and lowered our costs. Now we are ready to expand into new markets. Minimotors is on its way to becoming a global player." The speaker was Sparky Weyer, president and CEO of Minimotors, Inc., a growing manufacturer of small (some of them downright tiny)

electric motors used in a variety of power tools and appliances. Sparky was meeting with potential financial backers in an effort to obtain funding for some expensive new machinery he wanted to purchase. "You may have heard about some of the ways we've cut costs," Sparky continued. "We've developed a new arrangement with several of our biggest suppliers. They've agreed to make more frequent deliveries tied directly to our production schedules. This will help us reduce our inventory costs dramatically. We've also greatly reduced the number of defective motors we produce by carefully keeping tabs on all of our manufacturing processes. In fact, we have set a goal of reducing our defects to 3.4 parts per million. The main purpose of my meeting with you today is because we want to install some sophisticated new machinery and software that will allow us to quickly design and produce motors to the exact specifications of our customers. The machinery is computer-controlled and can produce custom-designed products at very little increase in cost compared to our mass produced motors. We feel this flexibility and quick response time will give us a tremendous competitive advantage and help us attract new customers. Installing the new equipment and training our workers to use it properly will be a complex project, but I'm confident that once we get everything up and running we'll be able to strengthen our position as the leading maker of high-quality electric motors." 330. One of Sparky's goals is to expand globally. He is most interested in doing business with the nations of the European Union. In order to do business with the European Union, Sparky's company should: A. B. C. D. gain ISO 9000 certification. make sure his production workers all belong to an international union. put more emphasis on low cost rather than product quality. buy at least 50 percent of its supplies from countries belonging to the European Union.

331. The arrangements Minimotors has worked out with its suppliers to reduce the amount of inventory the company holds at any one time shows that it is committed to a(n) _____________. A. B. C. D. priority inventory scheduling system. first in, first out inventory processing system. just-in-time inventory control system. ABC inventory system.

332. The equipment and software Sparky wants to acquire will allow the computers used to design motors to be linked directly to the computer-aided equipment on the factory floor. Sparky is proposing to set up a(n): A. B. C. D. modular manufacturing system. computer-integrated manufacturing system. E-hub that relies on network software to control the production process. first-in, first-out production system.

333. In order to schedule deliveries, Minimotors's suppliers need detailed information about when parts are needed. Minimotors will purchase a sophisticated computer application that will link its operation to sales forecasts to make sure needed parts and supplies are available at the right time to meet customer demands. This planning system is known as: A. B. C. D. Materials requirement planning (MRP). Program evaluation and review technique (PERT). Minimum daily requirements scheduling (MDRS). Sales-based requirements forecasting (SBRF).

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

335. Sparky knows that installing the new equipment and training workers to use it efficiently will be a long and complex process consisting of many different tasks. Which of the following methods would help him determine how long this project is likely to take? A. B. C. D. TPSM (task priority scheduling method) Dependency Analysis TRSS (task and resource scheduling system) PERT (program evaluation and review technique)

336. While Minimotors has focused on improving production efficiencies, global customers are inquiring about its environmental policies. In light of its strategy to serve European customers, Sparky has requested two of its lead engineers to investigate what it would take to meet the environmental standards of its socially responsible customers. The engineers should investigate ___________ as best practices for managing a firm's impact on its environment. A. B. C. D. the EPA's minimum pollution standards ISO 14000 RG3 Regulations WTO environmental policy

9 KEY
1. (p. 231) Currently, manufacturing accounts for only around 70% of U.S. GDP. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #1 Topic: Manufacturing and Services in Perspective

2. (p. 230) The 2008 recession greatly affected the state of manufacturing in the U.S., resulting in a slow down in production and the loss of jobs. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #2 Topic: Manufacturing and Services in Perspective

3. (p. 230) The Green Movement has had a large affect on the service industry, but only a negligible affect on manufacturing. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #3 Topic: Manufacturing and Services in Perspective

4. (p. 230) Prior to the recession of 2008-2009, foreign investment bought steel plants in the U.S. and planned to run them at capacity. These and other manufacturing sites were keeping the growth in manufactured products at about 4% per year. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #4 Topic: Manufacturing and Services in Perspective

5. (p. 232) One key to the resurgence of U.S. firms as world-class competitors has been the implementation of a focus on quality. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #5 Topic: Manufacturers and Service Organizations Become More Competitive

6. (p. 232) Evidence suggests that U.S. manufacturing firms can no longer compete against the best firms in the rest of the world. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #6 Topic: Manufacturers and Service Organizations Become More Competitive

7. (p. 232) American manufacturers have emphasized continuous improvement as one strategy for regaining a competitive advantage in the manufacturing sector. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #7 Topic: Manufacturers and Service Organizations Become More Competitive

8. (p. 232) In order to be more competitive globally, production techniques such as enterprise resource planning and lean manufacturing are being used by American manufacturers. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #8 Topic: Manufacturers and Service Organizations Become More Competitive

9. (p. 232) To strengthen its manufacturing base, the U.S. will need to continue to innovate. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #9 Topic: Manufacturers and Service Organizations Become More Competitive

10. (p. 231) The U.S. is still manufacturing intensive. Only 25% of U.S. jobs come from the service sector. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #10 Topic: Manufacturing and Services in Perspective

11. (p. 232) Companies such as IBM prefer to stay the course and continue to compete by selling products instead of services. FALSE As indicated in the company profile at the beginning of Chapter 9, as well as information in the text, IBM is an example of a company that transitioned from a product-based firm to a service-based firm. It has successfully found business in services and software, and became a cutting-edge information technology company domestically and in foreign markets.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-1 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #11 Topic: Manufacturers and Service Organizations Become More Competitive

12. (p. 232) Since U.S. manufacturing competes on price throughout the world, innovation plays a very small part in the U.S. economy. FALSE The U.S. continues to be a world leader in innovation, including innovations in nanotechnology and biotechnology.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-1 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #12 Topic: Manufacturers and Service Organizations Become More Competitive

13. (p. 232) U.S. businesses are known for their creativity and their ability to implement change. TRUE U.S. businesses are combining services with state-of-the-art production techniques, in order to remain competitive.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-1 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #13 Topic: Manufacturers and Service Organizations Become More Competitive

14. (p. 232) The main reason for the recent resurgence of American manufacturing firms has been the quotas and tariffs imposed by the U.S. government in an attempt to protect domestic firms from cheap imports. FALSE Instead, American manufacturers have regained their competitive edge by implementing a variety of strategies, such as a consumer focus, continuous improvement, adoption of new manufacturing techniques such as ERP and CAD/CAM, and a reliance on the Internet to unite firms.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-1 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #14 Topic: Manufacturers and Service Organizations Become More Competitive

15. (p. 231) As the service industries became a larger part of U.S. GDP, companies have become more concerned about measuring productivity in the service sector. TRUE The services industries, together, comprise about 70% of U.S. Gross Domestic Product. Increasing productivity in these industries will make U.S. business more competitive abroad.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-1 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #15 Topic: Manufacturing and Services in Perspective

16. (p. 232) U.S. manufacturers are focusing on quality as a way to become more competitive globally, assuming that cost is not an issue. FALSE U.S. manufacturers are focusing on quality and cost, as they adopt strategies for competing better globally. From a quality perspective, they focus on continuous improvement; from a cost perspective, they focus on lean manufacturing, reducing costs by prudent site selections, and relying on the use of the Internet and other software technologies that improve efficiency in their operations.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-1 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #16 Topic: Manufacturers and Service Organizations Become More Competitive

17. (p. 231) Although important, the Green Economy will do little to add value to the U.S. economy. FALSE The Green Economy produces about $209 billion worth of products and services per year. People continue to think of new ways to sell green products and services and the market for these businesses continues to grow as more persons gain an awareness and appreciation for the green movement.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-1 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #17 Topic: Thinking Green box

18. (p. 231) Casey and Kevin are scanning the "All Things Green" magazine trying to get some green ideas they can incorporate into their business. The problem with going green, however, is that quality tends to decrease, and it is difficult to incorporate contemporary operations management techniques with "green" ideas. FALSE According to the Thinking Green box, titled, "The Green Movement Improves the Economy", you can use the production and operations management techniques learned in this chapter to be successful in creating green products and services.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-1 Level of Learning 3: Application of principles Nickels - Chapter 09 #18 Topic: Thinking Green box

19. (p. 232) In the past, production management was about using the factors of production to create finished goods. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #19 Topic: From Production to Operations Management

20. (p. 233) Operations management converts resources into goods and services. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #20 Topic: From Production to Operations Management

21. (p. 233) In the process of operations management, a firm transforms resources such as raw materials, supplies, and even human resources into goods and services. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #21 Topic: From Production to Operations Management

22. (p. 233) The service sector of the U.S. economy offers many jobs, but very few of them are considered high wage occupations. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #22 Topic: From Production to Operations Management

23. (p. 233) Firms that specialize in accounting, finance, and management consulting are all part of the service sector. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #23 Topic: From Production to Operations Management

24. (p. 233) Operations management involves inventory management, quality control, and production scheduling. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #24 Topic: From Production to Operations Management

25. (p. 233) Manufacturing firms focus exclusively on the production of goods and allow other firms to provide services. FALSE

AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #25 Topic: From Production to Operations Management

26. (p. 234) In recent years, operations management has become more focused on providing services, because that is where the growth and profit potential is greatest. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #26 Topic: Operations Management in the Service Sector

27. (p. 234) Operations management in service industries is about creating a good experience for the customer. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #27 Topic: Operations Management in the Service Sector

28. (p. 233) Operations management moves from knowing the needs of consumers to actually satisfying those needs. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #28 Topic: Operations Management in the Service Sector

29. (p. 233) In service industries such as hotels, quality management training is important to ensure that all employees are "certified" in their positions. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #29 Topic: Operations Management in the Service Sector

30. (p. 233) Education and training are less important to workers in the service sector than to workers who have jobs in the manufacturing sector. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #30 Topic: Operations Management in the Service Sector

31. (p. 233) The quality standard for service industries such as luxury hotels is meeting the customers' requests. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #31 Topic: Operations Management in the Service Sector

32. (p. 234) Service businesses know that in order to delight customers they must be able to anticipate their needs. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #32 Topic: Operations Management in the Service Sector

234)

33. (p. 233 One important issue with respect to managing the operation of a business is to make certain that customers leave feeling as though they had a good experience with your service and with your company in general. TRUE Operations management transforms resources of all kinds into finished products and services. Due to the fact that services dominate the U.S. landscape, it is vital to a firm's survival that customers perceive that they had a good experience. The quality at every step of the service must be measured and evaluated.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-2 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #33 Topic: Operations Management in the Service Sector

34. (p. 233) Manufacturing companies are concerned with production management, while service companies are concerned with operations management. FALSE Manufacturing companies are as concerned with operations management as are service-based companies. In reality, most companies today blend a component of product and service.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-2 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #34 Topic: From Production to Operations Management

234)

35. (p. 233 An important strategy in operations management is using technology to anticipate customer needs. In the hotel industry, this is known as guest-recognition services. TRUE Guest-recognition services is one way that hotels can delight customers. Part of your business's operational plan might include using technology, to collect intelligence information on customers in order to serve them better.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-2 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #35 Topic: Operations Management in the Service Sector

36. (p. 233) Operations management transforms resources into goods and services, such as a landscape company that utilizes equipment, labor, and materials to develop a landscape. Managing this operation may also involve maintenance services. TRUE Operations management transforms resources of all kinds into finished products and services. They utilize raw materials, equipment, and labor, but they are also concerned with anticipating customer needs and managing the entire operation including the customer's needs beyond the point of sale.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-2 Level of Learning 3: Application of principles Nickels - Chapter 09 #36 Topic: From Production to Operations Management

37. (p. 233) Jason recently graduated with a degree in operations management from a respected university. The knowledge he gained and skills he developed while obtaining this degree could make him an attractive employee for either a manufacturing firm or a service firm. TRUE Operations management is a broad term that encompasses the tasks involved in creating both intangible products (services) and tangible goods. Thus, firms in both the service sector and the manufacturing sector may be interested in hiring Jason.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-2 Level of Learning 3: Application of principles Nickels - Chapter 09 #37 Topic: From Production to Operations Management

38. (p. 233) Justin Tyme is a manager at Elastic Plastic, Inc. His duties include production scheduling and keeping tabs on the company's inventory. These activities suggest that Justin is involved in promotions management. FALSE Justin's responsibilities suggest he is involved in operations management. Operations management is a specialized area of management that converts resources into goods and services. It includes inventory management and production scheduling, as well as several other functions.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-2 Level of Learning 3: Application of principles Nickels - Chapter 09 #38 Topic: From Production to Operations Management

39. (p. 234) While going through the line at the local grocery store, the clerk asks you if you found everything you needed, as she continues to scan the goods you are planning to purchase. At the end of the scan, a coupon emerges that you can use on future purchases of a product you have just purchased. In reviewing the key concepts from Chapter 9, you would consider this action, the store's management of its labor. FALSE This is part of the management of the operation - the operation of serving you. The store is rewarding (delighting) you with a coupon that has value on your next purchase. The grocer is anticipating if you purchased it once, you may purchase it again, particularly if it is a name brand.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-2 Level of Learning 3: Application of principles Nickels - Chapter 09 #39 Topic: Operations Management in the Service Sector

233)

40. (p. 232 Marci Costas is majoring in operations management at Brunau University. Unfortunately, the evolution of the U.S. from a manufacturing-oriented to a service-oriented economy means that Marci will probably find few job openings in her field of study.

FALSE The U.S. economy is becoming more service oriented. However, this is not bad news for students who major in operations management, because the tasks involved in operations management are just as relevant to the production of services as they are to the production of goods.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-2 Level of Learning 3: Application of principles Nickels - Chapter 09 #40 Topic: From Production to Operations Management

41. (p. 234) When firms successfully produce products, they create form utility. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #41 Topic: Production Processes

42. (p. 234) Only firms in the manufacturing sector can create true form utility. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #42 Topic: Production Processes

43. (p. 234) 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. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #43 Topic: Production Processes

44. (p. 234) The value added by the creation of finished goods and services from inputs is called ownership utility. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #44 Topic: Production Processes

45. (p. 234) Process manufacturing refers to combining components and raw materials to make a product. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #45 Topic: Production Processes

46. (p. 234) Process manufacturing physically or chemically alters materials to create finished goods. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #46 Topic: Production Processes

47. (p. 234) An assembly process involves physically or chemically manipulating raw materials to create a product. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #47 Topic: Production Processes

48. (p. 234) A continuous production process is characterized by long production runs that turn out finished goods over time. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #48 Topic: Production Processes

49. (p. 235) Intermittent production processes are characterized by short production runs and frequent changes of machinery in order to produce different products like customized furniture.

TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #49 Topic: Production Processes

50. (p. 235) Contemporary manufacturers in the U.S. lack the flexibility to use intermittent production processes. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #50 Topic: Production Processes

51. (p. 235) One drawback of intermittent production processes is that they tend to be much slower than continuous processes. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #51 Topic: Production Processes

52. (p. 234) The production process requires inputs, controls, and outputs. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #52 Topic: Production Processes; Figure 9.1

53. (p. 235) Mass production techniques allowed firms to respond quickly to the individual needs of consumers. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #53 Topic: Production Processes

54. (p. 235) One of the reasons mass production techniques lost favor is that, despite their ability to keep costs relatively low, mass production lacks flexibility. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #54 Topic: Production Processes

55. (p. 236) The ability to integrate computers into the design and manufacture of products has had the greatest impact on production techniques in recent years. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #55 Topic: Computer-Aided Design and Manufacturing

56. (p. 236) CAD/CAM has made it possible to custom-design products to meet the tastes of small markets with very little increase in costs. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #56 Topic: Computer-Aided Design and Manufacturing

57. (p. 236) CAD systems allow designers to work in three dimensions. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #57 Topic: Computer-Aided Design and Manufacturing

58. (p. 236) Despite its early promise, computer-aided design has not met with much success in increasing productivity. FALSE
AACSB: Reflective Thinking

Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #58 Topic: Computer-Aided Design and Manufacturing

59. (p. 236) The purpose of computer-integrated manufacturing (CIM) is to unite computer-aided design with computer-aided manufacturing. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #59 Topic: Computer-Aided Design and Manufacturing

60. (p. 236) The advantage of computer integrated manufacturing software is that it allows computer aided design machines to communicate directly with computer aided manufacturing machines. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #60 Topic: Computer-Aided Design and Manufacturing

61. (p. 236) So far, the high cost of CAD/CAM techniques has limited their use to large, expensive manufactured goods such as automobiles. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #61 Topic: Computer-Aided Design and Manufacturing

62. (p. 236) Flexible manufacturing systems use machines that are designed to do a multitude of tasks so that they can produce a variety of goods. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #62 Topic: Computer-Aided Design and Manufacturing

63. (p. 236) 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. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #63 Topic: Computer-Aided Design and Manufacturing

64. (p. 237) One way to compete with cheap labor is to use robots. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #64 Topic: Lean Manufacturing

65. (p. 237) Lean manufacturing is a strategy of producing standardized products that have no frills or extra features in order to keep prices low. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #65 Topic: Lean Manufacturing

66. (p. 237) Companies that achieve lean manufacturing use less of everything (raw materials, labor, etc.) to produce the same amount of products. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #66 Topic: Lean Manufacturing

67. (p. 237) Technological improvements are largely responsible for the increase in productivity and efficiency of U.S. plants. TRUE
AACSB: Reflective Thinking Blooms: Knowledge

Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #67 Topic: Lean Manufacturing

68. (p. 237) The higher productivity of U.S. plants makes it possible to pay higher wages. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #68 Topic: Lean Manufacturing

69. (p. 237) Mass customization is tailoring products to meet the needs of individual customers. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #69 Topic: Mass Customization

70. (p. 237) Mass customization is a strategy of convincing customers to choose from a relatively small number of alternatives in order to achieve the efficiencies of mass production. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #70 Topic: Mass Customization

71. (p. 237) While mass customization works well for producers it is not used in the service sector. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #71 Topic: Mass Customization

72. (p. 237) Actually, it is much easier to custom-design service programs than it is to custom-make goods. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #72 Topic: Mass Customization

73. (p. 237) Speeding up the process of responding to consumer wants and needs is a key to global competitiveness. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #73 Topic: Mass Customization

74. (p. 237) A fast-changing plant needs a fast-moving employee base to achieve maximum productivity. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #74 Topic: Mass Customization

75. (p. 237) Companies that employ lean manufacturing and flexible manufacturing produce better quality products, but have costlier production lines. FALSE The purpose in lean manufacturing and flexible manufacturing is to produce products and services more efficiently and for less cost.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #75 Topic: Flexible Manufacturing; Lean Manufacturing

76. (p. 237) When a company has the ability to produce the same amount of goods with only half the floor space and half the labor that it used in the past, the firm is practicing flexible manufacturing. FALSE Using half the floor space and half the labor are characteristic of lean manufacturing. Flexible manufacturing refers to the ability to designing

machines with interchangeable parts so that the same machine can perform multiple tasks and/or produce a variety of products.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #76 Topic: Lean Manufacturing; Flexible Manufacturing

77. (p. 236) Improvements in technology have significantly increased the quality of products, as well as helped reduce costs. TRUE The introduction of CAD (computer-aided design), CAM (computer-aided manufacturing), and CIM (computer integrated manufacturing) has increased the quality of the product (output) and the time it takes to produce custom designed products. It has reduced the cost of labor, and decreased waste in the production process.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #77 Topic: Computer-Aided Design and Manufacturing

78. (p. 236) Manufacturers use CAM (computer aided manufacturing) to create three-dimensional designs of products before they are built. FALSE CAD (computer-aided design) is used to create three-dimensional designs of products before they are built. CAM (computer-aided manufacturing) is used to build the product.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #78 Topic: Computer-Aided Design and Manufacturing

79. (p. 238) Mass customization is not exclusive to product intensive businesses. Service businesses have learned how to use mass customization to serve their customers. TRUE Service businesses use sophisticated software programs to tailor insurance plans, travel plans, nutrition programs, and healthcare plans to individual customers.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #79 Topic: Computer-Aided Design and Manufacturing

80. (p. 238) Businesses that provide services typically cannot use mass customization because services are not tangible products that can be customized. FALSE Many service firms practice mass customization. The fact that a service is intangible can actually make mass customization easier, because no tangible good has to be adapted.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #80 Topic: Computer-Aided Design and Manufacturing

81. (p. 235) Process manufacturing involves taking raw materials and physically or chemically changing them into another form, while the assembly process takes the newly changed form and turns it back into the original form. FALSE While process manufacturing involves physically or chemically changing materials into a new state, the assembly process involves putting together components, to make a finished product.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #81 Topic: Production Processes

82. (p. 238) The main difference between process manufacturing and an assembly process is: Process manufacturing uses sophisticated robots and automated machinery to produce a good or service, while an assembly process uses labor and simple tools to make a product. FALSE Process manufacturing involves physically or chemically changing materials. An assembly process combines components to make a product.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #82 Topic: Computer-Aided Design and Manufacturing

83. (p. 235) Land, labor, capital, and knowledge are inputs into the production process.

TRUE The production process requires inputs (land, labor, capital entrepreneurship, and knowledge), and production controls in order to develop outputs.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #83 Topic: Production Processes

84. (p. 238) Although lean manufacturing attempts to reduce the amount of labor used in the manufacturing process, it typically does so by increasing the amount of most of the other resources used in the production process. FALSE Lean manufacturing is the production of goods using less of everything compared to mass production: less human effort, but also less investment in tools, less manufacturing space, and even less engineering time.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #84 Topic: Computer-Aided Design and Manufacturing

85. (p. 236) The Cooldaze Ice Company compresses carbon dioxide and cools it to a very low temperature to make dry ice. The method used by Cooldaze is an example of process manufacturing. TRUE Process manufacturing physically or chemically changes materials. This is what Cooldaze does when it makes dry ice.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #85 Topic: Computer-Aided Design and Manufacturing

86. (p. 238) Featured Furnishings is a company that specializes in producing custom-made furniture. A continuous production process would be the most efficient way for Featured Furnishings to produce its products. FALSE Since its products are made to order rather than mass produced, Featured Furnishings would be more likely to use an intermittent process that would allow it to respond more flexibly to specific customer preferences.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #86 Topic: Mass Customization

87. (p. 238) J & R Industries typically produces very 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 J & R. TRUE A continuous process is used to produce large batches of a particular product in a long production run.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #87 Topic: Mass Customization

88. (p. 238) Frolichstein Fabrics promotes itself as a specialty manufacturer that will produce according to customer specifications. This firm will probably be best served by using an intermittent process in production. TRUE An intermittent process is characterized by short production runs and frequent adjustments to machinery in order to produce different products. This type of system works well for firms producing customized products in small batches.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #88 Topic: Mass Customization

89. (p. 238) Computers and robots are only useful in continuous production processes where the same type of product is produced many times. FALSE Computers and robots are very useful in intermittent production processes. In fact, combining computers and robots with flexible manufacturing processes enables intermittent processes to produce custom-made goods almost as fast as mass produced goods once were made.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #89

Topic: Mass Customization

90. (p. 236) Trace and Tim own a company that rehabs old houses. Prior to buying a house, they use software to create and design the renovation of each room. The program provides them with an estimation of how much of each kind of material is needed, and the orderly progression of tasks that need to be completed. Trace and Tim use computer-aided design. TRUE CAD/CAM techniques are revolutionizing the design and production of both industrial and consumer goods. Computer-aided design software assists with the design of finished products.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #90 Topic: Computer-Aided Design and Manufacturing

91. (p. 237) Seat-belts Unlimited, Inc. is located about 8 miles from two major auto assembly plants. The firm delivers seat-belts about every two hours to each of the plants. The assembly plants only accept the number of seat-belts that they will assemble into cars, during the next two hours after delivery. The auto plants embrace lean manufacturing. TRUE Firms that practice lean manufacturing typically carry very limited amounts of inventory. They only accept delivery and add to their inventory the amount of raw materials or parts that they can use in the immediate future.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #91 Topic: Lean Manufacturing

92. (p. 237) Alice's Cookie Company makes a variety of cookies for corporate accounts and restaurants. On a good day, the orders can range from 600 - 800 cookies, with a variety of uniqueness, although the company is known for delicate shortbread and butter cookies. Some cookies have round shapes, but other are elongated rectangles, and yet others are triangles. The bakers can quickly change the cookie cutting machine to reflect the orders for the day, while computers program the ovens to make those cookies the light golden color they are known for across town. Refrigeration is also computer controlled. Alice's Cookie Company embraces flexible manufacturing and mass customization. TRUE Flexible manufacturing means the company is using machines that can multi-task - they can be quickly retrofitted to create a variety of products. The manufacturer can design and create customized orders, by changing the shape, color, and size depending upon the customer's preference.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #92 Topic: Flexible Manufacturing; Mass Customization

93. (p. 239) Facility location is the process of selecting a geographic location for a company's operations. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #93 Topic: Operations Management Planning

94. (p. 239) When considering the issue of facility location, it is important to find an isolated location so that work can get done without interruption from customers. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #94 Topic: Operations Management Planning

95. (p. 238) Operations management planning is concerned with finding the ideal location for a business and also with materials requirement planning. It leaves decisions about purchasing and inventory control to marketing. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #95 Topic: Facility Location

96. (p. 239) When it comes to location decisions, labor costs are no longer an important consideration for most manufacturing firms. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #96 Topic: Operations Management Planning

97. (p. 239) The Internet is a very popular place to locate your business today. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #97 Topic: Facility Location

98. (p. 239) Due to the growth of the Internet, the cost of labor is no longer an important consideration in location decisions of business firms. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #98 Topic: Operations Management Planning

99. (p. 239) Manufacturing firms that want to minimize time-to-market are likely to choose facility sites that give them easy access to their preferred modes of transportation. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #99 Topic: Operations Management Planning

100. (p. 239) Some companies will locate their production facilities near their suppliers. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #100 Topic: Facility Location for Manufacturers

101. (p. 241) Many state and local governments offer tax incentives and government services to attract businesses. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #101 Topic: Operations Management Planning

102. (p. 241) In making a location decision, businesses seldom consider "quality of life" in various locations, because factors that influence quality of life have little or no impact on profits. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #102 Topic: Operations Management Planning

103. (p. 240) According to the Making Ethical Decisions box, titled, "Stay or Leave", by law a firm must give employees 60 days notice of a facility or plant closing. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #103 Topic: Making Ethical Decisions box

104. (p. 240) Internet-focused strategies don't affect operations managers since it is not progressive for operations managers to negotiate in an interfirm environment. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #104 Topic: Operations Management Planning

105. (p. 241) Operations managers are adjusting from a relatively stable environment to one that is constantly changing and evolving. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #105 Topic: Operations Management Planning

106. (p. 240) For many firms, operations management has become an interfirm process.

TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #106 Topic: Taking Operations Management to the Internet

107. (p. 240) Facility layout is the function of operations management that considers the physical arrangement of resources (including people) in the production process. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #107 Topic: Taking Operations Management to the Internet

108. (p. 240) For service intensive businesses, facility layout is usually designed to centralize the decision-making process. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #108 Topic: Taking Operations Management to the Internet

109. (p. 240) Telecommuting has diminished in popularity as a strategy for linking employees with work. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #109 Topic: Facility Location in the Future

110. (p. 241) The production of a bridge, ship, or large airplane usually involves a variable-position facility layout. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #110 Topic: Facilities Layout

111. (p. 242) The process layout simplifies production by using the same sequence of processes regardless of the design of the item being produced. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #111 Topic: Facilities Layout

112. (p. 243) In an assembly line manufacturing layout workers do only a few tasks at a time. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #112 Topic: Facilities Layout

113. (p. 243) In a modular manufacturing layout teams of workers combine to produce more complex units. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #113 Topic: Facilities Layout

114. (p. 243) A product manufacturing layout is used to produce large quantities of a few types of products. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #114 Topic: Facilities Layout

115. (p. 243) A process manufacturing layout is frequently used in operations that serve different customers' different needs. TRUE
AACSB: Reflective Thinking

Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #115 Topic: Facilities Layout

116. (p. 242) Facilities layout will depend upon the processes that are to be accomplished in the firm's operation. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #116 Topic: Facilities Layout

117. (p. 242) Materials requirement planning (MRP) enables a firm to make sure that the right amount of each material or component is available at the right time to satisfy its production needs. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #117 Topic: MRP

118. (p. 242) Materials requirement planning relies on the firm's balance sheet to make sure that the right quantities of finished goods are produced. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #118 Topic: MRP

119. (p. 242) One limitation of materials requirement planning (MRP) is that it is not a computer-based approach. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #119 Topic: MRP

120. (p. 242) Enterprise resource planning (ERP) is simpler and less sophisticated than manufacturing resource planning (MRP). FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #120 Topic: ERP

121. (p. 242) Enterprise resource planning (ERP) software combines all functional units of a firm, into the production of goods and services, and may even include subsidiaries and other firms. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #121 Topic: Materials Requirement Planning

122. (p. 242) ERP software enables multiple firms to manage all of their operations on the basis of a single, integrated set of corporate data. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #122 Topic: Materials Requirement Planning

123. (p. 244) The purchasing function involves searching for quality resources and finding the best suppliers as well as negotiating the best price for the needed items. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #123 Topic: Purchasing

124. (p. 244) Over the past few years, Internet-based companies have emerged to help businesses find the best supplies at the best prices. TRUE
AACSB: Reflective Thinking Blooms: Knowledge

Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #124 Topic: Purchasing

125. (p. 244) Modern companies tend to deal with many different suppliers in order to avoid problems that can arise when one supplier is unable to provide needed parts or materials. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #125 Topic: Purchasing

126. (p. 244) Today, rather than purchase goods and services from a large number of firms, manufacturers often try to develop a close relationship with one or two key suppliers. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #126 Topic: Purchasing

127. (p. 244) The purchasing function of operations management seldom uses the Internet to make purchasing decisions. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #127 Topic: Purchasing

128. (p. 244) 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. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #128 Topic: Just-In-Time Inventory Control

129. (p. 244) The concept: "Just-In-Time" (JIT) works well if a company works with lots of suppliers. It also helps avoid the break downs that occur when operating with an enterprise resource planning system. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #129 Topic: Just-In-Time Inventory Control

130. (p. 244) In a just-in-time inventory system, the producer holds large quantities of the materials and components used in the production process in its inventory to ensure that it always has enough on hand. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #130 Topic: Just-In-Time Inventory Control

131. (p. 244) Overall, American firms that have tried to use just-in-time inventory systems generally report disappointment with the results. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #131 Topic: Just-In-Time Inventory Control

132. (p. 244) In JIT inventory systems a manufacturer normally communicates its production plans to suppliers so that they can deliver needed parts and materials just in time for the manufacturer to use them. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #132 Topic: Just-In-Time Inventory Control

133. (p. 244) Quality control is a continual process of checking to make certain that there is consistency in the quality of products being produced. TRUE

AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #133 Topic: Quality Control

134. (p. 244) Six Sigma is a benchmark of quality standards that many product and service industries try to achieve. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #134 Topic: Quality Control

135. (p. 244) Under the six sigma quality standard the idea is to detect potential problems, in order to prevent their occurrence. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #135 Topic: Quality Control

136. (p. 244) Six sigma is a quality measure that allows only 3.4 defects per million opportunities. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #136 Topic: Quality Control

137. (p. 244) A key element of the statistical quality control [SQC] process is the reliance on quality control experts to inspect at the end of the production line to make sure that no defective products are shipped to final customers. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #137 Topic: Quality Control

138. (p. 244) 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. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #138 Topic: Quality Control

139. (p. 245) Statistical process control (SPC) is the process of taking statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #139 Topic: Quality Control

140. (p. 245) The Deming Cycle is designed to catch errors before they happen. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #140 Topic: Quality Control

141. (p. 245) The Deming Cycle approach to quality control consists of: Plan, Do, Check, Act. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #141 Topic: Quality Control

142. (p. 245) Service organizations find it difficult to provide outstanding service every time because the process is so labor intensive. TRUE
AACSB: Reflective Thinking

Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #142 Topic: Quality Control

143. (p. 245) If a company achieves Six Sigma quality standards, they automatically win the Malcolm Baldrige award. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #143 Topic: Baldrige Awards

144. (p. 245) The Baldrige standards measure a firm's quality in several key areas including planning, leadership, and customer and market focus. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #144 Topic: The Baldrige Awards

145. (p. 245) ISO is a world-wide, non-governmental federation that sets global measures of quality. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #145 Topic: The Baldrige Awards

146. (p. 246) The International Organization for Standardization continually updates acceptable international requirements in the areas of process control, product testing, storage, and delivery. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #146 Topic: ISO 9000 and ISO 14000 Standards

147. (p. 246) ISO 9000 refers to a set of international standards for quality management and assurance. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #147 Topic: ISO 9000 and ISO 14000 Standards

148. (p. 246) ISO 14000 is a new set of product quality standards that has replaced the old ISO 9000 standards. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #148 Topic: ISO 9000 and ISO 14000 Standards

149. (p. 246) The European Union demands that all firms that want to do business with its member nations must satisfy ISO 9000 standards. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #149 Topic: ISO 9000 and ISO 14000 Standards

150. (p. 246) ISO 14000 is a collection of the best practices for managing an organization's impact on the environment. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #150 Topic: ISO 9000 and ISO 14000 Standards

151. (p. 246) Firms that satisfy the ISO 9000 and ISO 14000 standards have demonstrated a world-class management system in both quality and environmental standards. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms

Nickels - Chapter 09 #151 Topic: ISO 9000 and ISO 14000 Standards

152. (p. 242) 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. FALSE Both ERP and MRP are involved with computer advances that have occurred in information technology that are used in production planning methods.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #152 Topic: MRP and ERP

153. (p. 239


242)

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

FALSE Recent developments in information technology are actually giving firms more flexibility in choosing locations. With increasing numbers of workers able to telecommute, for many firms the need to locate near population centers has diminished.
AACSB: Reflective Thinking Blooms: Analysis Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #153 Topic: Operations Management Planning

154. (p. 239) Areas with higher than average labor costs are almost always at a major disadvantage when trying to attract new businesses. FALSE Although the cost of labor is an important consideration in the location decision of some firms, it is far from the only factor that firms must consider. Other considerations might include the availability of cheap resources (such as water, coal, or electricity), proximity to customers or to preferred modes of transportation, low taxes or special government incentives, and quality of life considerations (such as climate, recreational opportunities, education systems, and crime rates). High wage areas that have some or all of these advantages might be attractive to many firms despite the high labor costs.
AACSB: Reflective Thinking Blooms: Analysis Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #154 Topic: Operations Management Planning

155. (p. 242) Retailing is one area where technology is unlikely to make a big difference in how services are provided. FALSE Technology has made a big difference in retailing. For brick-and-mortar businesses to beat Internet competition, they have to choose good locations and offer outstanding service to those who do come to shop.
AACSB: Reflective Thinking Blooms: Analysis Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #155 Topic: Operations Management Planning

156. (p. 242) 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. FALSE ERP (Enterprise Resource Planning system) enables firms to manage all of their operations on the basis of a single, integrated set of corporate data.
AACSB: Reflective Thinking Blooms: Analysis Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #156 Topic: Operations Management Planning

157. (p. 244) A major advantage of a just-in-time inventory system is that it reduces costs and the effort for both the producer and its suppliers. FALSE A just-in-time inventory system requires more effort from suppliers to coordinate with producers and deliver goods on a frequent basis. This extra effort may increase the cost to suppliers.
AACSB: Reflective Thinking Blooms: Analysis Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #157 Topic: Operations Management Planning

158. (p. 244) Recent research suggests that the best way to maintain consistently high quality in the production process is to give a group of specialists in a separate quality control department the authority to inspect each product at the end of the production process. FALSE

Today, quality control tries to catch errors before they happen. Standards and methods such as six sigma, statistical quality control, and statistical process control focus on what is happening at each stage of the production process. These techniques eliminate (or at least greatly reduce) the need for a quality control inspection at the end of the production process.
AACSB: Reflective Thinking Blooms: Analysis Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #158 Topic: Operations Management Planning

159. (p. 244) Operations Managers have learned that quality control is not a never- ending process. Just before you add packaging to the finished product, official company inspectors do a random spot-check. All inspections have to occur at the end of a production run because, only then can the inspector see the total finished product in order to determine if quality is jeopardized. FALSE Today, quality control tries to catch errors before they happen. Standards and methods such as six sigma, statistical quality control, and statistical process control focus on what is happening at each stage of the production process.
AACSB: Reflective Thinking Blooms: Analysis Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #159 Topic: Quality Control

160. (p. 239 Jamal, an operations manager for a product manufacturer accepted an operations position with a company that produces a service. Jamal will find that operations management at the new job is significantly different from operations management at the old firm. 242) FALSE Operations management in the service sector involves many of the same functions as in the manufacturing sector, including concerns about facility location, facility layout, quality control, and MRP and ERP.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #160 Topic: Operations Management Planning

161. (p. 240) Andre is an outdoorsman whose love of hunting and fishing led him to start a mail order company specializing in hunting and fishing gear. He decided to locate his business near the Ozarks in southwestern Missouri, partly because of low labor costs, but mainly because the area offered excellent fishing and hunting opportunities, a low crime rate, and a pleasant climate. Ken's location decision was strongly influenced by quality of life considerations. TRUE Quality of life includes weather and climate, crime rates, and recreational opportunities.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #161 Topic: Operations Management Planning

162. (p. 240) Amalia is an operations manager at a medium sized service firm. Amalia is recommending that her firm use the Internet to make its services more readily available to its customers. Amalia's recommendation reflects a growing trend in service sector firms. TRUE The ultimate in convenience is never having to leave home at all to get services. That's why there is so much interest in Internet banking, education, and other services.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #162 Topic: Operations Management Planning

163. (p. 243) Solarsys Aeronautics was awarded a contract to build a large lab module that will be attached to a new space station. The module is approximately 48 feet long, 17 feet in diameter, and weighs over sixty tons. Solarsys should use an assembly line plant layout to produce this module. FALSE Firms are moving away from assembly line layouts. Moreover, a product as large as this module would be awkward and difficult to move along an assembly line. When producing a large, bulky, one of a kind item such as a bridge or ship (or a large space station module), firms normally use a fixed-position layout.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #163 Topic: Operations Management Planning; Figure 9.2

164. (p. 243) Millwell Manufacturing redesigned its facility layout to group similar equipment and functions together, and to allow flexibility in the sequence in which products are produced using these functions. Millwood's new layout is an example of the fixed-position layout. FALSE

This is an example of a process layout. A process layout is a flexible layout in which similar equipment and functions are grouped together and the sequence in which the functions are performed depends on the design of the product.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #164 Topic: Operations Management Planning

165. (p. 242) Impact Computers wants to set up a planning system that enables it to 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. FALSE MRP is a computer application that is used within a single company, not multiple firms.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #165 Topic: Operations Management Planning

166. (p. 244) Rysler Motors currently uses an ERP system to manage all of its production operations and coordinate them with the other operations of the company. The company also wants to implement a just-in-time (JIT) inventory system. Unfortunately for Rysler, ERP is incompatible with JIT, so if it adopts the new inventory system it will have to abandon ERP. FALSE The first step in a just-in-time inventory system requires the firm to determine what parts and materials will be needed and when they will be needed. An enterprise requirement planning (ERP) system can help the firm accomplish this step efficiently. The firm then informs suppliers of its needs. Suppliers are expected to deliver the parts and materials just in time to go on the assembly line.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #166 Topic: Operations Management Planning

167. (p. 244) Mypartz, Inc. is a major supplier of components used by Idle Time Gaming Systems. Idle Time Gaming wants to implement a justin-time inventory system. Mypartz should benefit from this approach, since JIT systems greatly simplify the task of suppliers. FALSE In just-in-time systems, suppliers deliver only the amount needed to meet production requirements. Thus, Mypartz will be required to coordinate its shipments with the production needs of Idle Time Gaming. This will mean it must make smaller and much more frequent shipments, thus increasing its costs.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #167 Topic: Operations Management Planning

168. (p. 245) In an effort to improve the quality control process at the Southern Peanut Corporation, management is introducing the importance of the Deming Cycle to employees. This suggests that managers are aware of the need to find potential problems before they occur. TRUE The Deming Cycle (named after the father of the quality control movement) consists of four stages: plan, do, check, and act. Modern quality control techniques such as SQC and SPC provide ways to implement this cycle. The idea behind these approaches is to find problems before they occur.
AACSB: Reflective Thinking Blooms: Analysis Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #168 Topic: Operations Management Planning

169. (p. 246) Northern States Electric is in the process of trying to achieve ISO 14000 certification. Although the criteria for certification involve several milestones, we can be assured they will be evaluated on the regularity and thoroughness of their environmental audits, and how well top management reviews the firm's adherence to policies that are environmentally friendly. TRUE ISO 14000 is not a measure of environmental performance. Instead it is a measure how well a firm puts in place best practices for measuring its environmental impact. It does not specify the level of performance in any environmental category.
AACSB: Reflective Thinking Blooms: Analysis Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #169 Topic: ISO 9000 and ISO 14000 Standards

170. (p. 245) Star Performance, Inc. a sporting good company and Fairview Community College are interested in following the lead of other companies and implement 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. TRUE To qualify for the Baldrige Award, firms must show exceptional quality in seven key areas: strategic planning, customer and market focus,

leadership, information and analysis, human resources focus, process management, and business results.
AACSB: Reflective Thinking Blooms: Analysis Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #170 Topic: The Baldrige Awards

171. (p. 246) Antoine's Creamery, an eastern seaboard ice cream producer 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 9000 certified because the EU (European Union), unlike U.S. firms has not yet adopted these standards. FALSE ISO 9000 deals with the quality of individual products. The EU has adopted ISO 9000 quality standards and expects any company doing business with companies who do business within the European Union to adopt similar standards. Some U.S. firms are also demanding ISO 9000 certification of its business partners.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #171 Topic: ISO 9000 and ISO 14000 Standards

172. (p. 245) Perry manages an X-ray imaging services clinic housed adjacent to a large hospital in a major metropolitan area. Although customers are regularly surveyed to determine the level of service they perceive to be receiving, Perry finds it difficult to determine if the clinic is providing the level of service which would qualify it as an ISO 9000 firm. He explains that the volume of patients requiring urgent care on some days is more acute than on other days. He is confident that the staff is providing the same level of quality on busy days, but surveys indicate that patients do not particularly rate their clinic experience as particularly good on those days. He expects this dilemma because he understands from his recent business class that service companies find it challenging to provide the same high level of service all the time. TRUE Although service companies are very serious about improving the quality of service in their firms, they find it difficult to maintain the same quality level all the time.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #172 Topic: Quality Control

173. (p. 245) IMPUZZLED! Corporation produces jigsaw puzzles. The quality of its materials and the calibration of machines that cut and fit pieces of a puzzle are extremely important if it is to eliminate defects and meet customer specifications. If the company meets or exceed Six Sigma criteria, it will have no more than 60 defects per million puzzles. FALSE Six Sigma standards require that a firm have no more than 3.4 defects per 1 million opportunities. Six Sigma is a set of practices designed to eliminate defects in the production of products.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #173 Topic: Quality Control

174. (p. 247) SQC (Statistical Quality Control) is a popular technique for analyzing the tasks involved to complete a given project, estimating the time required to complete each task, and identifying the minimum time needed to complete the project. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #174 Topic: Control Procedures: PERT and GANTT Charts

175. (p. 247) A major purpose of the program evaluation and review technique (PERT) is to identify the minimum time needed to complete a project. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #175 Topic: Control Procedures: PERT and GANTT Charts

176. (p. 247) The end result of PERT analysis is an estimate of the total cost of completing a project. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #176 Topic: Control Procedures: PERT and GANTT Charts

177. (p. 247) The critical path identified by PERT analysis is the sequence of tasks that can be completed in the shortest amount of time.

FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #177 Topic: Control Procedures: PERT and GANTT Charts

178. (p. 247) PERT is a popular technique for analyzing the tasks involved to complete a given project, estimating the time required to complete each task, and identifying the minimum time needed to complete the project. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #178 Topic: Control Procedures: PERT and GANTT Charts

179. (p. 247) An advantage of PERT diagrams is that they are usually so simple to draw that a computer is not needed. FALSE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #179 Topic: Control Procedures: PERT and GANTT Charts

180. (p. 247) In a PERT network, a critical path is the sequence of tasks that takes the longest time to complete. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #180 Topic: Control Procedures: PERT and GANTT Charts

181. (p. 247) Compared to PERT networks, Gantt charts provide a more basic way to track progress on a given project. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #181 Topic: Control Procedures: PERT and GANTT Charts

182. (p. 248) A Gantt chart is a bar graph showing production managers what projects are being worked on and the stage of development at any given time. TRUE
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #182 Topic: Control Procedures: PERT and GANTT Charts

183. (p. 247) The significance of the critical path on a PERT chart is that it identifies the least costly method of producing a given product. FALSE The critical path on a PERT chart identifies the sequence of events in a project that takes the longest time to complete.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-5 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #183 Topic: Control Procedures: PERT and GANTT Charts

184. (p. 247) The first step in the PERT method is to assign a cost to each activity. FALSE The first step in a PERT network is to identify, analyze, and determine the sequence of tasks that must be completed in order to complete the overall project.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-5 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #184 Topic: Control Procedures: PERT and GANTT Charts

185. (p. 247) The PERT network provides a project manager with a plan that puts all the activities of a project in the correct order that they must be accomplished; shows which activities can be accomplished simultaneously, and, also gives the manager a good estimate of how long each activity will take to complete. FALSE A PERT (Program Evaluation and Review Technique) Chart shows the sequence of activities or events that must occur in order for a project to be successfully completed. It also provides an indication of which activities can be accomplished simultaneously and provides an estimate

of the time it will take to accomplish each activity.


AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-5 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #185 Topic: Control Procedures: PERT and GANTT Charts

186. (p. 247) Gantt charts will show the production manager if certain activities in the production process are lagging behind their acceptable time of completion. TRUE Using a Gantt Chart or a Gantt-like computer program, a manager can trace the production process minute by minute to determine which tasks are on time and which are behind, so that adjustments can be made to allow the company to stay on schedule.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-5 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #186 Topic: Control Procedures: PERT and GANTT Charts

187. (p. 247) Brian is a construction manager who wants to determine how long a new project will take to complete and which tasks in the project have the greatest potential for delaying the project. The PERT Network model will help Brian answer these questions. TRUE PERT refers to program evaluation and review technique, which is a method of determining the tasks, the sequence of tasks, the time it takes to complete each task, and minimum time required to complete a project. The PERT method also identifies the critical path, which is the sequence of tasks that takes the longest to complete. If a task on the critical path is delayed, it can delay the completion of the project as a whole.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-5 Level of Learning 3: Application of principles Nickels - Chapter 09 #187 Topic: Control Procedures: PERT and GANTT Charts

188. (p. 247) Casper is in charge of a complex project. He wants to see how all the different activities involved in completing the project are related to each other. One way to illustrate these relationships would be to construct a PERT chart. TRUE As figure 9.3 illustrates, a PERT chart identifies all of the activities that must be performed in order to complete a project and the minimum time it will take to complete each task. The arrows in a PERT chart indicate the sequence in which activities must be performed. For example, if an arrow goes from activity "A" to activity "B" this means that "A" must be completed before "B" can begin.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-5 Level of Learning 3: Application of principles Nickels - Chapter 09 #188 Topic: Control Procedures: PERT and GANTT Charts

189. (p. 247) In order to determine overall progress on her current project, production manager Michelle Hudson often refers to a bar graph that shows what activities are being worked on, and how much of each task has been completed on a daily basis. Michelle is using a Gantt chart. TRUE A Gantt chart is a bar graph that shows what projects are being worked on and how much of each project has been completed on a daily basis.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-5 Level of Learning 3: Application of principles Nickels - Chapter 09 #189 Topic: Control Procedures: PERT and GANTT Charts

190. (p. 247) Reviewing the PERT Network below: If it takes 2 weeks for each activity (represented by a box) to be completed, It can be determined that the boxes labeled with No. 1 create the critical path because this path of activities takes the shortest time to complete.

FALSE The critical path in a PERT Network is the project activity path that takes the longest time to complete. In this diagram, if each box = 2 weeks completion time, the path of boxes labeled [2, 3, 3, 3, 3, Finish] is the critical path.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-5 Level of Learning 3: Application of principles Nickels - Chapter 09 #190 Topic: Control Procedures: PERT and GANTT Charts

191. (p. 230) U.S. companies that participate in the manufacturing sector:

A. B. C. D.

depend on government imposed tariffs on foreign goods to remain competitive. are growing much more rapidly than firms in the service sector. have focused on innovative operations management techniques in order to regain their competitive edge. have become increasingly reliant on mass production techniques as they put more emphasis on keeping costs as low as possible.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #191 Topic: Manufacturing and Services in Perspective

192. (p. 231) In recent years, the service sector of the U.S. economy has: A. B. C. D. grown much more rapidly than the manufacturing sector. become the low-wage sector of the U.S. economy. achieved extremely high productivity gains according to government reports. focused less on quality and more on reducing costs of production.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #192 Topic: Manufacturing and Services in Perspective

193. (p. 232) During the deep recession of 2008-2009, A. B. C. D. the service industry was hardest hit. job loss was severe in the manufacturing and housing industries. education and healthcare were hardest hit. the U.S. saw productivity rise in manufacturing due to increased layoffs.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #193 Topic: Manufacturers and Service Organizations Become More Competitive

194. (p. 231) According to the Thinking Green box, titled, "The Green Movement Improves the Economy", A. B. C. D. the Green Movement is determined as the only external circumstance that will bring the U.S. out of the recession. green products are selling well, but not green services. the Green Movement is producing upwards of $200 billion worth of products and services. wealthy people can still afford to buy things, and it is the wealthy that are interested in going green.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #194 Topic: Manufacturers and Service Organizations Become More Competitive

195. (p. 232) Efforts to redesign and rebuild America's manufacturing base are likely to: A. B. C. D. fade in importance as foreign manufacturers continue to gain control of important markets. continue to be an important issue in the near future. focus on government efforts to foster performance in a few key industries. give way to an intense effort to convert the U.S. to an entirely service-based economy.

American manufacturing firms are now often as good as or better than competitors anywhere in the world. Still, American firms cannot become complacent. Tomorrow's college graduates are likely to face tremendous challenges and opportunities in redesigning and rebuilding America's manufacturing base.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-1 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #195 Topic: Manufacturers and Service Organizations Become More Competitive

196. (p. 232) One strategy U.S. manufacturers have employed in order to become more competitive is: A. B. C. D. focussing on providing the lowest priced products. relying on advanced technology and the Internet to unite companies. maintaining a distance relationship with suppliers in an effort to guard trade secrets. increasing advertising budgets.

U.S. manufacturers have emphasized a number of actions including relying on technology and the Internet to unite companies who have a stake in each other's success.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-1 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #196 Topic: Manufacturers and Service Organizations Become More Competitive

197. (p. 232) To strengthen its manufacturing base in the future, U.S. will have to: A. B. C. D. uncover lower wage workers in the U.S. to compete with China. continue to innovate. support students in high school and college interested in studying the arts. cut the amount of benefits offered to workers.

According to many analysts the U.S. will have to innovate to be able to strengthen its manufacturing base.

AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-1 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #197 Topic: Manufacturers and Service Organizations Become More Competitive

198. (p. 232) The resurgence of U.S. manufacturing firms in recent years can be credited to: A. B. C. D. the government's willingness to implement policies designed to protect U.S. firms from low-cost foreign competition. a decision by many U.S. manufacturers to drastically reduce costs by making more extensive use of mass production techniques. a number of significant changes in both the production techniques and management styles used by U.S. firms. a relaxation of government laws that has allowed manufacturing firms to merge more easily, thus achieving stronger market positions.

Pressures from foreign competition forced U.S. manufacturing firms to make several major changes in both production processes and management styles. The text lists seven specific changes: focusing on consumers, maintaining close relationships with suppliers and other companies, practicing continuous improvement, focusing on quality, saving on cost through site selection, relying on the Internet to unite companies, and adopting new manufacturing techniques such as ERP, computer integrated manufacturing, flexible manufacturing, and lean manufacturing.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-1 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #198 Topic: Manufacturers and Service Organizations Become More Competitive

199. (p. 231) Sergio inherited his father's heating and air conditioning business. In order to continue to remain robust through the 2008-2009 recession, he has decided to retrain in the installation of LEED certified equipment. Sergio is: A. probably investing time and money into a situation with very little long-term payoff. B. according to the Thinking Green box in Chapter 9, there are too many firms already competing in the green business. It's already time to find a new competitive advantage. C. according to the Thinking Green box in Chapter 9, new construction business is suitable to green technology, however old buildings cannot be renovated. D. according to the Thinking Green box in Chapter 9, green marketing has contributed significantly to the U.S. economy, even through the recession. According to the "Thinking Green" box the green economy is worth more than $209 billion annually and is expected to reach $1 trillion by 2020.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-1 Level of Learning 3: Application of principles Nickels - Chapter 09 #199 Topic: Thinking Green box

200. (p. 232) Production management is the traditional term used to describe all the activities managers do to help their firms create: A. B. C. D. resources. goods. services. equities.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #200 Topic: From Production to Operations Management

201. (p. 232) Operations management is a specialized area in management that converts resources into: A. B. C. D. services, rather than goods. goods, rather than services. both goods and services. financial data.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #201 Topic: From Production to Operations Management

202. (p. 233) __________ is the specialized area of management that converts or transforms resources into goods and services. A. B. C. D. Logistics management Resource engineering Intrapreneuring Operations management
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #202 Topic: From Production to Operations Management

203. (p. 233) __________ is the creation of goods and services using land, labor, capital, entrepreneurship, and knowledge. A. B. C. D. Resource recombination Supply chain management Production Purchasing

AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #203 Topic: From Production to Operations Management

204. (p. 233) The U.S. economy is now dominated by the _________ sector. A. B. C. D. farm service manufacturing trade
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #204 Topic: From Production to Operations Management

205. (p. 233) Operations management in the service sector is focused on creating: A. B. C. D. good experiences for those who use the service. jobs for the local community. additional customer expectations. inexpensive ways to get things done.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #205 Topic: From Production to Operations Management

206. (p. 233) Experts in operations management for service industry type businesses stress: A. B. C. D. using records from accounting to determine what business to go after. relying on one's individual operation as opposed to developing partnerships. training employees on quality management. training employees to always adhere to only one way of doing things.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #206 Topic: From Production to Operations Management

207. (p. 233) Operations management is the __________ phase of management. A. B. C. D. planning implementation control building
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #207 Topic: From Production to Operations Management

208. (p. 233) The basic reason the term production management has been replaced by the term operations management is that: A. B. C. D. the U.S. economy has moved toward a more socialist approach with government controlling a greater share of the production process. a much larger share of total output is being produced by nonprofit organizations. the United States is now a service economy. the United States now exports more than it imports.

Production management has been the term used to refer to the creation of goods (tangible products). In recent years, the service sector has become the dominant area of the economy. This has led to the use of the term operations management in order to reflect the production of both goods and services.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-2 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #208 Topic: From Production to Operations Management

209. (p. 233) Aaron is a freshman in college who has not yet decided on his major. He is thinking about majoring in operations management and is 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, Aaron will: A. B. C. D. have limited job opportunities because operations management positions are only available in the slowly growing manufacturing sector. acquire skills and knowledge that are valuable to firms in both the manufacturing and service sectors. have plenty of job offers, but they will mainly be in low wage positions in the service sector. find plenty of employment opportunities in the government and education, but not very many in the private sector.

Operations management is a specialized area in management that involves converting or transforming resources into goods and services. Operations managers provide knowledge and skills that can be used in either the manufacturing or services sector.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-2 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #209 Topic: From Production to Operations Management

210. (p. 233) Which of the following statements best describes the distinction between production management and operations management? Production management involves: A. activities managers perform to help create services while operations management involves the activities managers perform to produce goods. B. activities managers perform to obtain physical resources while operations management involves the activities managers perform to obtain the financial resources. C. activities managers perform to help create goods while operations management is a broader term that involves the activities involved in producing services as well as goods. D. activities managers perform to help create intangible products while operations management involves the activities managers perform to produce tangible products. In the past, the term production management was used to describe all the activities managers do to help their firms create goods (tangible products). However, now that the service sector has become dominant in the U.S. economy, a newer term, operations management, is used instead of production management to reflect the fact managers perform these activities to help firms create services (intangible products) as well as goods.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-2 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #210 Topic: From Production to Operations Management

211. (p. 234) Which of the following statements about operations management in the service sector is most accurate? Operations management in the service sector: A. B. C. D. is all about providing the service at the lowest cost. should focus on providing customers with a good experience. has less flexibility than operations management in the manufacturing sector, because services are not technology driven. has done a good job of increasing output, but a poor job of improving quality.

The text discussion of operations management in the hotel industry shows how service companies succeed by providing a good experience for their customers.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-2 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #211 Topic: Operations Management in the Service Sector

212. (p. 234) For most service businesses the quality standard has become: A. B. C. D. providing prompt and predictable service. providing a competitive level of service at the lowest cost. delighting customers by anticipating their needs. less important than it is for manufacturing businesses.

Delighting customers by anticipating their needs has become the quality standard for most service businesses.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-2 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #212 Topic: Operations Management in the Service Sector

213. (p. 233) The Ritz-Carlton hotel offers restaurants with the finest service, elevators that run smoothly, and a front desk that processes people quickly. Many times fresh-cut flowers are in the lobbies and dishes of fruit are in each room. __________ is responsible for implementing these customer benefits. A. B. C. D. Human resources management The management staff Operations management Production management

Operations management is the implementation phase of management.


AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-2 Level of Learning 3: Application of principles Nickels - Chapter 09 #213 Topic: From Production to Operations Management

214. (p. 233) Each day the general manager at the New Life Grocery Store reviews employee work schedules, including the late night stock crew, the checkers, the baggers, the deli, produce, and meat department crews, and the office personnel. He coordinates work schedules with shipments, as well as the information he collects from registers that indicates the busiest hours at the store, and then he communicates any exceptions to his department managers. These daily tasks are part of ______________. A. B. C. D. operations management promotions management distributive management marketing management

Operations management is the process of converting resources, including human resources into valuable products and services.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-2 Level of Learning 3: Application of principles Nickels - Chapter 09 #214

Topic: From Production to Operations Management

215. (p. 234) Production creates: A. B. C. D. time utility. possession utility. form utility. marginal utility.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #215 Topic: Production Processes

216. (p. 235) ___________ utility is the value added by the creation of finished goods and services using raw materials, components, and other inputs. A. B. C. D. Manufacturing Marginal Consumption Form
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #216 Topic: Production Processes

217. (p. 235) In ____________, materials are physically or chemically changed to produce a product. A. B. C. D. process manufacturing assembly processes utilitarian production diffusive manufacturing
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #217 Topic: Production Processes

218. (p. 235) A(n) __________ puts together components to make a product. A. B. C. D. modular process compression process assembly process econometric process
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #218 Topic: Production Processes

219. (p. 235) A production process characterized by long production runs to turn out finished goods over time is known as a(n): A. B. C. D. assembly process. continuous process. extended process. unrestricted process.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #219 Topic: Production Processes

220. (p. 235) A production process characterized by a short production run and frequent adjustments to machines so that different products can be produced is known as a(n): A. B. C. D. just-in-time process. lean manufacturing system. analytic process. intermittent process.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #220 Topic: Production Processes

221. (p. 235) Most new manufacturing facilities use: A. B. C. D. continuous processes. intermittent processes. traditional processes. synthetic processes.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms

Nickels - Chapter 09 #221 Topic: Production Processes

222. (p. 235) In the past, the idea behind mass production was to: A. B. C. D. produce goods of the highest possible quality. give producers the maximum flexibility to respond to customer preferences. make large quantities of a limited variety of products at very low cost. give workers more control over their work environment.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #222 Topic: Computer-Aided Design and Manufacturing

223. (p. 236) ____________ uses computers to help design products. A. B. C. D. PERT QPC DPA CAD
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #223 Topic: Computer-Aided Design and Manufacturing

224. (p. 236) __________ involves computers directly in the production process. A. B. C. D. CAD CAM AMDA AMCAP
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #224 Topic: Computer-Aided Design and Manufacturing

225. (p. 236) CAD/CAM makes it possible to custom-design products to meet the needs of __________ with __________. A. B. C. D. small markets; a decrease in cost very large markets; no increase in cost small markets; very little increase in cost international markets; products that are complex
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #225 Topic: Computer-Aided Design and Manufacturing

226. (p. 236) CAD has __________ productivity in many firms. A. B. C. D. unfortunately had no effect on actually decreased increased splintered
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #226 Topic: Computer-Aided Design and Manufacturing

227. (p. 236) Sophisticated software that enables computer-aided design machines to communicate with computer-aided manufacturing machines is called: A. B. C. D. a flexible system. a computer-based feedback control system. computer-integrated manufacturing. heuristic manufacturing integration.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #227 Topic: Computer-Aided Design and Manufacturing

228. (p. 236) In __________, machines are designed to do multiple tasks so that they can produce a variety of products. A. B. C. D. systems engineering microdesign modular construction flexible manufacturing
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms

Nickels - Chapter 09 #228 Topic: Flexible Manufacturing

229. (p. 237) In manufacturing, one way to compete with cheap labor is to: A. B. C. D. use robots. hire experienced people. make the production line longer. increase inputs to the system.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #229 Topic: Flexible Manufacturing

230. (p. 237) The goal of lean manufacturing is to: A. B. C. D. keep inventories of finished goods as high as possible. produce goods and services with less of everything that goes into the process. produce a very limited variety of goods. become more self sufficient by producing major components rather than buying them.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #230 Topic: Lean Manufacturing

231. (p. 237) ______________ means tailoring products to meet the needs of a large number of individual customers. A. B. C. D. Mass customization Mass production Competing in time Feedback response production
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-3 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #231 Topic: Mass Customization

232. (p. 235) Which of the following statements describes past processes that existed in manufacturing that negatively affected a firm's competitive advantage? A. B. C. D. Companies tended to produce a large quantity of the same product at a very low cost Companies required their suppliers to only deliver the amount of good needed for a short-term production run Companies changed their equipment too often, which created lost time on the job Companies refused to train employees in technology and on machinery

In order for manufacturing to increase its competitiveness and meet the demands of the marketplace, it needed to restructure processes to improve quality and flexibility. In the past, manufacturers relied on continuous process type systems that produced large quantities of the same good. The emphasis was on creating efficiencies and keeping costs down, as opposed to a pulse on the customer's needs.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #232 Topic: Production Processes

233. (p. 236) Which of the following statements about the impact of CAD/CAM on manufacturing is most accurate? CAD/CAM: A. B. C. D. is most useful to firms producing durable goods such as automobiles. has replaced ERP as the most sophisticated resource planning technique. allows firms to save money by replacing skilled labor with computers to perform all of the high-skill tasks. has made it possible to produce custom-designed products with little increase in costs.

CAD/CAM allows a producer to program design changes that can be incorporated right into the production line. This makes it easy to customize products with little increase in costs.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #233 Topic: Computer-Aided Design and Manufacturing

234. (p. 236) A big advantage of computer integrated manufacturing software is that it: A. B. C. D. makes it possible to custom-design products to meet the needs of small markets with very little increase in cost. replaces "dumb" robots with "smart" computers. allows personal computers to communicate directly with the firm's server. controls all of the actions of the assembly line from a central location.

Computer integrated manufacturing utilizes software that unites CAD with CAM and makes it possible to custom-design products to meet the needs of small markets with very little increase in cost.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #234 Topic: Computer-Aided Design and Manufacturing

235. (p. 237) A basic characteristic of flexible manufacturing is that it: A. B. C. D. relies heavily on labor, since humans are more adaptable than machines. uses machines designed to perform multiple tasks so they can be used to produce a variety of products. achieves its flexibility at the cost of much slower rates of production than mass production techniques. is only possible when using mass production processes.

Flexible manufacturing uses machines designed to perform multiple tasks so that they can produce a variety of products.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #235 Topic: Flexible Manufacturing

236. (p. 237) A company becomes lean by _________ its capacity to produce high-quality goods, while ___________ its need for resources. A. B. C. D. investigating; planning increasing; decreasing decreasing; increasing planning; investigating

A company becomes lean by continuously increasing its capacity to produce high-quality goods while decreasing its need for resources.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #236 Topic: Flexible Manufacturing

237. (p. 237) Lean manufacturing ___________ productivity. A. B. C. D. increases decreases has no effect on removes the need for added

A company becomes lean by continuously increasing its capacity to produce high-quality goods while decreasing its need for resources.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #237 Topic: Lean Manufacturing

238. (p. 237) The main objective of lean manufacturing is to: A. B. C. D. keep labor costs as low as possible by expanding the use of other resources. produce products that have fewer frills and options in order to simplify the production process and keep costs as low as possible. produce goods using less of all types of resources. get state and local governments to handle many of the tasks currently performed by the firm.

Lean manufacturing refers to efforts to produce goods by using less of everything, including materials, labor, and production.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #238 Topic: Lean Manufacturing

239. (p. 237) A benefit of CAD (Computer Aided Design) and CAM (Computer Assisted Manufacturing) is: A. B. C. D. it basically eliminates the need for human intervention. it saves on materials costs. it permits customization without a significant increase in price. it produces a higher quality product which allows the manufacturer to charge more.

Computer Aided Design permits customization due to the ease of changing a design to satisfy individual tastes.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-3 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #239 Topic: Computer-Aided Design and Manufacturing

240. (p. 235) SitRite Furniture Company uses labor and machinery to transform wood, plastic, metal and cloth into comfortable chairs, sofas, and love seats. This process creates: A. B. C. D. form utility. place utility. use facility. intangible productivity.

Production is the creation of finished goods and services from inputs such as land, labor, capital, entrepreneurship and knowledge. Production creates form utility, which is the value added by the creation of finished goods and services.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #240

Topic: Production Processes

241. (p. 235) Wild Bill's Cap Emporium offers to produce hats and caps according to customers' requests. Wild Bill's utilizes a(n): A. B. C. D. analytic system. just-in-time system. intermittent process. continuous process.

Custom made items produced in small quantities would require an intermittent process rather than a continuous process.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #241 Topic: Production Processes

242. (p. 237) The National Bicycle Company of Japan makes 18 bicycle models in more than 2 million combinations, with each combination designed to fit the needs of a specific customer. The customer chooses the model, size, color, and design. An analysis of this company's operation would indicate that it uses: A. B. C. D. lean manufacturing. flexible production. mass customization. continuous production.

Mass customization means tailoring products to meet the needs of a large number of individual customers. Because this firm makes bicycles in more than 2 million combinations and each customer can choose the model, size, color, and design that they want National Bicycle Industrial Company is using mass customization.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #242 Topic: Mass Customization

243. (p. 237) Marilyn's Travel Inc. is a medium-sized travel agency that specializes in vacation packages. It has packages available around the globeeverything from cruises, to beach resort vacations, to historical tours. The customer chooses the amount they would like to pay, the area of the world they would like to visit and what they would like to do. Based on this information Marilyn's Travel uses __________ to delight the customers. A. B. C. D. excellent human resources management the Internet mass customization lean manufacturing

Mass customization means tailoring products and services to meet and exceed the needs of a large number of individual customers.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #243 Topic: Mass Customization

244. (p. 232) To create their Deluxe Beef Sandwiches, Robbie's Roast Beef finely slices prime roast beef, stacks it on a sesame bun, adds special seasonings, cheese, onions, and mushrooms. The value added by Robbie's when it combines these ingredients to make a sandwich is known as: A. B. C. D. consumer surplus. the analytic function. marginal utility. form utility.

Form utility is the value added by the creation of finished goods and services.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #244 Topic: Production Processes

245. (p. 233) Operations managers at Alumax Corporation have found that they can achieve efficient production only by producing very large quantities of aluminum without shutting down the production process. This indicates that Alumax should use a(n) ___________ production process. A. B. C. D. intermittent assembly continuous systematic

A continuous production process is characterized by long production runs over a period of time.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #245 Topic: Production Processes

246. (p. 233) Cooltreet, Inc., combines sugar, cream, eggs, and flavorings, then churns and cools the resulting mixture to a very low temperature until it freezes, creating ice cream. The method Cooltreet uses is an example of:

A. B. C. D.

an analytic production system. process manufacturing. an assembly process. a symbiotic process.

Process manufacturing physically or chemically changes materials. The process of mixing, churning and cooling ingredients to create ice cream is an example of this type of production method.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #246 Topic: Production Processes

247. (p. 233) Megatronics, Inc. obtains computer components from a variety of suppliers and puts them together according to customer specifications to create custom-made computers. This process is an example of: A. B. C. D. an assembly process. process manufacturing. synthetic production. continuous production.

The assembly process puts together components to create a finished product.


AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #247 Topic: Production Processes

248. (p. 237) Transformation, Inc. builds machinery and robots that can assemble a variety of autos and trucks - including light pick-up trucks, two-seater sports cars, luxury sedans, full-size vans, and SUVs. Transformation sells products to companies that require ___________. A. B. C. D. micro-engineering. flexible manufacturing. continuous production. multiple output processing.

Flexible manufacturing is the design of machines to do multiple tasks so that they can produce a variety of products.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #248 Topic: Flexible Manufacturing

249. (p. 235) Justin is a project manager for a large defense systems company. Each contract for sophisticated weaponry requires the cooperation of several firms. Each time Justin begins a new project, he reviews what it takes to successfully complete a project. Which of the following would not constitute one of his goals? A. He wants to meet the demands of the customer's contract with respect to the kind of product the customer wants and how soon they need it B. He wants the product to achieve the quality level expected by the customer C. He wants his company to be the lead company and maintain a leadership position in all aspects of the project to project a strong image to the customer D. He wants to work within the costs budgeted for this project According to Andy Grove, the production process has three basic requirements: 1) to build and deliver products in response to the demands of the customer: 2) to provide an acceptable quality level; and, 3) to provide everything at the lowest possible cost.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #249 Topic: Production Processes

250. (p. 237) Alex is a production manager who believes his firm uses more of all types of resources than is necessary to produce its products. He would like to find a way to cut back on labor, and reduce the firm's investment in tools and space as well. It seems that Edwin would like to adopt: A. B. C. D. mass production. marginal cost management. lean manufacturing. the maximum production method.

Lean manufacturing is the production of goods using less of everything compared to mass production.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #250 Topic: Lean Manufacturing

251. (p. 237) The EZee Office Furniture Company makes high quality desks and chairs for executive offices. The company is about to make a radical change in its production process. It will take measurements from customers, have them select from a variety of fabric patterns and answer some basic questions about the furniture styles they like, then design a chair and desk that is ergonomically designed for maximum comfort for its users. The new method EZee Office will use is an example of: A. just-in-time manufacturing.

B. analytic production. C. mass customization. D. individualized production. Mass customization means tailoring products and services to meet the needs of individual customers.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #251 Topic: Mass Customization

252. (p. 237) Initially, ATM's (automated teller machines) were introduced so that customers could make withdrawals from their bank accounts, day or night. As the technology improved, the machines offered a variety of services including the acceptance of deposits, the ability to get credit card advances, check your bank account balances, and even purchase prepaid cell phone credit. ATMs now offer: A. B. C. D. flexible manufacturing for its customers. lean services because it only needs to keep a certain amount of cash in each machine. technology similar to CAD. faster service and mass customization.

Mass customization means tailoring products and services to meet the needs of individual customers.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #252 Topic: Mass Customization

253. (p. 236) Dewey Dare is a production and operations manager with a clothing manufacturer. He has been looking into a system that will enable his company to take measurements from a customer and program machines to design and produce custom-cut clothes at little additional cost. This type of system is an example of the benefits of: A. B. C. D. mass production. just-in-time production systems. the PERT method. CAD/CAM.

CAD/CAM has made it possible to custom design products to meet the tastes of small markets with very little increase in cost.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #253 Topic: Computer-Aided Design and Manufacturing

254. (p. 236) HandZone, a manufacturer of high quality gloves and a variety of fashion accessories, already has both computer-aided design and computer-aided manufacturing. Unfortunately, the two systems cannot communicate with each other. David Warmdigit, a production manager at HandZone, has heard about some software that allows CAD and CAM to work together, and wants to learn more about it. David is interested in: A. B. C. D. linear programming software. holistic internalization of operations. computer integrated manufacturing. complex systems integration.

Computer integrated manufacturing uses sophisticated software to unite CAD with CAM.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #254 Topic: Computer-Aided Design and Manufacturing

255. (p. 236) Sarah works for an architectural firm. The partners in the firm have always drawn the plans for projects by hand. While Sarah learned how to draw by hand in college, she also became skilled on computer programs that permitted her to create designs in three dimensions. She plans to demonstrate the effectiveness of such programs to the firm's partners. The computer program she will recommend to the partners is: A. B. C. D. CAD. CAM. CIM. SCM.

Computer-aided design systems allow designers like Sarah to work in three dimensions and to make design changes quickly with very little increase in cost.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #255 Topic: Computer-Aided Design and Manufacturing

256. (p. 238) __________ is the process of selecting a geographic location for a company's operations. A. Facility location B. Facility layout C. FRP

D. Geographic requirements planning


AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #256 Topic: Operations Management Planning

257. (p. 238) Which of the following is a likely reason that a company would move its facility from one location to another? A. B. C. D. Availability of expensive labor Higher quotas on competing goods Access to various modes of transportation Availability of a retired workforce
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #257 Topic: Operations Management Planning

258. (p. 238) Operations management planning does not include decisions about: A. B. C. D. where to locate a business facility and how it will be configured. materials requirement planning. quality control. the acquisition of financing for projects.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #258 Topic: Operations Management Planning

259. (p. 238) Firms that have a goal of ____________ tend to locate facilities near major highways, ports, rail lines and airports. A. B. C. D. reducing time to market using ERP techniques replacing labor with machinery switching to a more service-oriented product mix
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #259 Topic: Operations Management Planning

260. (p. 239) Contemporary producers and their suppliers, A. B. C. D. locate in areas where they can share the same labor. know that it is not necessary to locate close to international customers due to technology such as the Internet. locate close together to decrease the cost of distribution. have advanced beyond ERP to more sophisticated systems.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #260 Topic: Operations Management Planning

261. (p. 240) According to the Making Ethical Decisions box, titled, "Stay or Leave?", a firm must give its employees _______________ before closing and/or moving to another location. A. B. C. D. bonuses equal to 1 times their regular monthly pay 2 weeks notice. a golden handshake 60 days notice
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #261 Topic: Making Ethical Decisions box

262. (p. 240) A major trend in business is ___________, where employees work at least part time at home using a computer and modem. A. B. C. D. outsourcing riveting outbounding telecommuting
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #262 Topic: Facility Location in the Future

263. (p. 240) Operations management becomes a(n) ____________ when companies outsource several processes and create a network of firms that cooperatively produce products and services. A. open operation B. closed operation

C. interfirm process D. conjoined process


AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #263 Topic: Taking Operations Management to the Internet

264. (p. 241) __________ is the physical arrangement of resources in the production process. A. B. C. D. Facility location Facility layout ERP RRL
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #264 Topic: Facilities Layout

265. (p. 241


-243; Figure 9.2)

Moduar facilities layouts consist of:

A. B. C. D.

teams of workers who work together on a complex assembly. lines of workers who do a small series of tasks and then pass along the product through the line to the next worker. virtual companies and their supplier relationships. workers who have a model in front of them that they try to replicate several times.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #265 Topic: Facilities Layout

266. (p. 243) 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. A. B. C. D. assembly line layout continuous production process fixed-position layout process manufacturing technique
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #266 Topic: Facilities Layout

267. (p. 243) Unlike an assembly line where workers perform only a few tasks, in a _________ layout, teams of workers combine to perform a variety of tasks needed to produce more complex units of a final product. A. B. C. D. modular spoke and wheel network cluster
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #267 Topic: Facilities Layout

268. (p. 243) In manufacturing, a __________ is used to produce large quantities of a few types of products. A. B. C. D. product layout process layout modular layout fixed-position layout
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #268 Topic: Facilities Layout

269. (p. 243) In manufacturing, a __________ is frequently used in operations that serve different customers' different needs. A. B. C. D. product layout process layout modular layout fixed-position layout
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #269 Topic: Facilities Layout

270. (p. 243) An example of a __________ is building a new home on a lot.

A. B. C. D.

product layout process layout modular layout fixed-position layout


AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #270 Topic: Facilities Layout

271. (p. 242) The operations planning practice of inputting sales forecasts into computer software that accurately predicts the amount and timing of materials needed to complete products and projects is ________________. A. B. C. D. Enterprise Resource Planning Materials Requirement Planning Virtual Accuracy Tool Computer Based Materials Model
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #271 Topic: Materials Requirement Planning

272. (p. 242) MRP is a technique that helps managers: A. B. C. D. develop a reliable sales forecast. schedule the sequence of tasks workers must perform in order to complete a project. determine how many workers are needed to staff various departments. make sure that the right parts and materials are available at the right time.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #272 Topic: Materials Requirement Planning

273. (p. 242) MRP is the acronym for: A. B. C. D. minimum resource payments. maximized revenue potential. managed resource priorities. materials requirement planning.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #273 Topic: Materials Requirement Planning

274. (p. 242) ERP is the acronym for: A. B. C. D. Educated Rights Planning. Extensive Research Planning. Enterprise Resource Planning. Emphatic Requirements Planning.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #274 Topic: Facility Location in the Future

275. (p. 242) ___________ is a computer application that enables a firm to combine computerized functions of all divisions and subsidiaries of the firm into a single, integrated software program that uses a single database. A. B. C. D. Materials requirement planning (MRP) PERT analysis Manufacturing resource planning (MRP II) Enterprise resource planning (ERP)
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #275 Topic: Materials Requirement Planning

276. (p. 242) __________ is the operations management planning function that searches for quality material resources, finds the best suppliers, and negotiates the best price. A. B. C. D. Marketing Collective bargaining Bartering Purchasing
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #276 Topic: Materials Requirement Planning

277. (p. 242) __________ has transformed the purchasing function in recent years by helping firms find the best suppliers and the best prices. A. B. C. D. PERT The Internet CAD/CAM QFD
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #277 Topic: Materials Requirement Planning

278. (p. 244) Today manufacturers are relying more heavily on: A. B. C. D. one or two suppliers because firms share so much information. the bidding process to obtain the lowest price. many suppliers to keep its leverage. developing an MRP system for purchasing.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #278 Topic: Purchasing

279. (p. 244) With the __________ inventory control system, producers hold only the amount of materials and parts that they need for a short period of time - sometimes just a few hours. A. B. C. D. ABC first-in, first-out just-in-time (JIT) maximum
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #279 Topic: Just-In-Time Inventory Control

280. (p. 244) To reduce the cost of holding too much inventory, many companies have implemented: A. B. C. D. ABC inventory management. first-in, last-out inventory control. just-in-time inventory control. maximum inventory management.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #280 Topic: Just-In-Time Inventory Control

281. (p. 244) Maintaining ___________ involves producing what the customer wants while reducing errors before and after delivery to the customer. A. B. C. D. manufacturing control allocative efficiency CAD/CAM quality
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #281 Topic: Just-In-Time Inventory Control

282. (p. 244) In today's quality control programs, emphasis is placed on: A. B. C. D. producing goods at the lowest possible cost. keeping labor costs as low as possible. achieving customer satisfaction. detecting errors at the end of the production process before the goods are shipped to customers.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #282 Topic: Quality Control

283. (p. 244) The six sigma approach to quality control: A. B. C. D. relies on a special team of experts to examine every unit of output at the end of the production process. detects potential problems early to prevent their occurrence. views quality control as a function of the marketing department. allows only 600 defective units per one thousand units produced.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #283 Topic: Quality Control

284. (p. 244) ____________ examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and correct any variances from desired quality levels. A. B. C. D. CAD/CAM Econometrics Analysis of variance Statistical process control
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #284 Topic: Quality Control

285. (p. 244) The Deming Cycle is: A. B. C. D. a checklist that enables managers to evaluate employee performance more systematically. a systematic method of evaluating potential facility locations. a process for finding potential quality errors before they occur. a process for using identical production steps in the creation of different types of products.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #285 Topic: Quality Control

286. (p. 244) The ___________ National Quality Award is given to firms that achieve an outstanding level of overall quality based on performance in seven key areas. A. B. C. D. Association of Operations Managers Excellence in Production Committee National Association of Manufacturers Malcolm Baldrige
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #286 Topic: Quality Control

287. (p. 244) ___________ are a set of international standards for quality management and quality assurance. A. B. C. D. EPA 2000 ISO 14000 ISO 9000 TQM 2003/2004
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #287 Topic: Quality Control

288. (p. 244) ____________ standards are concerned with the best practices for managing an organization's environmental impacts. A. B. C. D. EPA 2000 ISO 14000 Eurogreen 700 Enviro 2001
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-4 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #288 Topic: Quality Control

289. (p. 240) Which of the following is an important part of operations management? A. B. C. D. Determining the best means of financing the firm's operations Developing the best advertising strategy to promote a firm's products Deciding whether to pay a dividend to the firm's stockholders Choosing the best location for a firm's facilities

Operations management includes such responsibilities as facilities location, facilities layout, and quality control.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #289 Topic: Facility Location

290. (p. 240) Which of the following statements best describes the impact of recent advances in information technology on business location decisions? 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 Recent developments in information technology (such as modems, e-mail, voice-mail, teleconferencing, etc.) make it possible for many workers to telecommute, so a firm can locate almost anywhere and still attract good workers.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #290 Topic: Facility Location

291. (p. 240) Which of the following statements about facility location is most accurate? A. B. C. D. Very few firms are still influenced by labor costs when making decisions about where to locate Recent changes in information technology have led firms to favor locations near major urban areas Manufacturers often seek to reduce time-to-market by locating facilities in areas with access to key modes of transportation No matter how large they become, most companies ultimately choose to locate major facilities within a few miles of the area in which they started business

In order to compete globally, manufacturers need sites that allow products to pass through the system quickly and at low cost, and to be delivered rapidly and inexpensively to customers. This leads many manufacturers to locate in areas with access to major highways, rail lines, and airports.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #291 Topic: Facility Location

292. (p. 240) Which of the following statements best reflects the approach state and local governments take to influence the location decisions of businesses? State and local governments: A. often engage in fierce competition to attract businesses, including the offer of tax breaks, zoning changes, and financial aid B. try to avoid competition with other areas, because such competition usually backfires and creates ill-will C. no longer pursue new businesses, because they have found that attempts to attract businesses are usually too expensive to justify the results D. work primarily through the federal government and the Small Business Administration to obtain financial assistance for firms seeking to locate in their area Today, a big factor influencing where businesses locate is the tax situation and the degree of government support for the business. State and local governments often engage in fierce competition by offering firms tax reductions, subsidized loans, zoning changes and other incentives to induce firms to locate in their area.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #292 Topic: Facility Location

293. (p. 241) Which of the following statements is most accurate? A. B. C. D. Most manufacturing firms are turning to an assembly line layout to produce output as efficiently as possible For service firms, the main objective in facility layout usually is to centralize the control of operations Facility layout is important for manufacturing plants because facilities layout decisions can have a huge impact on the firm's costs In a modular layout, workers are assigned a specific station along an assembly line and specialize in performing a specific task

For manufacturing plants, facility layout has become critical because potential cost savings are enormous.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #293 Topic: Facilities Layout

294. (p. 240) New developments in information technology have: A. B. C. D. had little effect on business location decisions. given firms even greater flexibility in their location decisions. caused a movement of firms back to urban areas where access to this technology is greatest. reduced the impact government policies have on location decisions.

Modems, e-mail, voice-mail, and teleconferencing enable workers to telecommute. Thus, firms no longer have to locate near a large supply of labor. They can now locate in areas where land is cheaper and the quality of life is more appealing.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #294 Topic: Facility Location

295. (p. 240) Contemporary operations management planning is an interfirm process. This means: A. B. C. D. the process must integrate all of the functional units of a firm's operation, including production, marketing, finance, and logistics. the process is a confidential plan that is not shared with suppliers or customers. It stays within the firm. it is a process where several firms work closely together to produce goods and services, and anticipate a changing environment. it is a process that seeks stability by adhering to top down management.

Interfirm means that several firms will work together via the Internet and through the use of other sophisticated technology to produce

products and services that customers need and want. The interfirm process recognizes that today's successful businesses must operate in dynamic environments.
AACSB: Ethics Blooms: Comprehension Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #295 Topic: Taking Operations Management to the Internet

296. (p. 240) The main idea in the Making Ethical Decisions box, "Stay or Leave?" indicates: A. a need for firms to place a higher level of importance on time to market when choosing facilities locations. B. that the goal of finding the lowest cost location should never be overshadowed by other concerns if the firm is to remain loyal to its stockholders. C. that many locations do not meet ISO 14000 standards. D. a need for firms to consider the economic impact of its existence and/or departure from a particular location. One firm can have a significant economic impact in a location where it is a single employer of a large percentage of the population and impacts the livelihood of surrounding businesses, as well. While the departure from such a location may present a cost savings for the company, its negative impact on the stakeholders at this location is a strong ethical consideration.
AACSB: Ethics Blooms: Comprehension Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #296 Topic: Making Ethical Decisions box

297. (p. 242) Enterprise resource planning (ERP) goes beyond the capabilities of MRP because it: A. B. C. D. gives much more precise cost estimates. finds the critical path and compute its length. monitors the computerized functions of all the divisions and subsidiaries of the firm in a single software program. handles research data about more than one product at the same time.

Enterprise resource planning is a computer application that enables a firm to combine all of the computerized functions of all the divisions and subsidiaries of the firm (such as finance, human resources, and order fulfillment) into a single, integrated software program that uses a single database. MRP is used within one firm to plan production requirements.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #297 Topic: Materials Requirement Planning

298. (p. 244) A just-in-time inventory system usually reduces costs for: A. B. C. D. both the producer and its suppliers. suppliers, but not the producer. the producer, but not its suppliers. neither the supplier nor the producer, though it does lead to more flexibility for both.

Just-in-time inventory systems allow producers to reduce the amount of inventory they hold, thus keeping their inventory costs down. However, the supplier must deliver the needed materials and parts just in time to be used in the production process. This calls for more effort on the supplier's part, and more costs.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #298 Topic: Just-In-Time Inventory Control

299. (p. 244) In a just-in-time inventory system, suppliers: A. B. C. D. deliver materials and parts in large quantities only a few times a year. enjoy much lower delivery costs. have a great deal of flexibility in determining when to make deliveries. become more like a department in the producing firm rather than a separate business.

In a just-in-time system the supplier is linked by computer to the producer so that it becomes more like a department in the firm than a separate firm.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #299 Topic: Just-In-Time Inventory Control

300. (p. 244) A firm would be most likely to employ statistical process control (SPC) if it wanted to: 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. Statistical process control involves examining samples at each stage of the production process and plotting the results to identify and correct undesirable variances in quality.
AACSB: Reflective Thinking Blooms: Comprehension

Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #300 Topic: Quality Control

301. (p. 245) A firm that is certified as meeting both ISO 9000 and ISO 14000 standards has demonstrated: A. B. C. D. world-class management of both quality and environmental standards. sound financial and marketing practices. ethical treatment of both customers and employees. that its recruitment and training programs for employees protect and promote basic human rights.

ISO 9000 refers to quality management and assurance standards and ISO 14000 refers to standards for managing a firm's environmental impact.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-4 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #301 Topic: Quality Control

302. (p. 238 A small hospital in a suburb of a large metropolitan area wants to further develop its operations and services in order to compete with other hospitals in the region. In analyzing the criteria for making this happen, location is a primary concern. If it constructs 239) additional floors, it could increase the quality of a few services in its present location, but city regulations would require more parking. As it looks for new property, which of the following criteria would not be an important consideration for this facility? A. B. C. D. Access to good roads and interstate system Tax benefits Skilled labor Time to market

For service industry businesses, convenience and accessibility are extremely important considerations. Patients require convenient locations that are easy to access. Emergency vehicles also need easy access to the hospital's location. Hospitals require a variety of skilled labor. Since they are not producing a product, time to market is probably not a strong consideration in this case.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #302 Topic: Facility Location

303. (p. 240) As businesses strive for market expansion, companies add to their sales force, but opt to eliminate sales offices across the nation and internationally. How are these firms able to remotely operate a sales force that contributes toward increasing the bottom line? A. A sensible strategy is to transport sales professionals to the world headquarters on a bi-weekly basis B. The business strategically moves manufacturing facilities to low cost areas and allocates more funds toward the sales professionals to meet face to face with management C. The operation is maintained with an advanced MRP system D. The operation is managed with teleconferencing information technology, and telecommuting With advanced information technology (voicemail, email, cell phones, text messaging, and teleconferencing), businesses are able to communicate in real time with sales professionals, technicians, and other employees whose jobs take them out into the field. Telecommuting working from home via a computer and modem is a popular alternative working arrangement for sales professionals and others who do not work close to their company's office.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #303 Topic: Facility Location in the Future

304. (p. 240) Millennium, Inc, a leading producer of environmentally friendly cleaning agents is looking for a site for a new production facility. The company is mainly focusing on sites that are close to major highways and rail hubs and are not too far from some major population centers. This suggests that an important location consideration for Millennium is: A. B. C. D. quality of life. access to cheap land. reducing time to market. access to low cost labor.

Firms that want to get their goods to the market quickly want to have access to good transportation. Thus they frequently locate near highways, rail lines or airports.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #304 Topic: Facility Location in the Future

305. (p. 246) X-Sport Industries is a U.S.-based manufacturer of sporting goods. Recently, it has decided to make a major push to sell its products in the European Union. In order to succeed in this new market X-Sport will need to: A. B. C. D. become certified in ISO 9000 standards. convert its financial assets into Euros. avoid reliance on the Deming cycle. reduce the wages of its production workers.

The European Union is demanding that firms doing business within their borders meet the ISO 9000 standards.
AACSB: Reflective Thinking

Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #305 Topic: Quality Control

306. (p. 246) At Stevens Manufacturing workers are organized in teams that combine their efforts to produce complex units of a final product. Stevens is using a facility layout known as a (n): A. B. C. D. consolidated process layout. continuous flow layout. modular layout. assembly team layout.

Many manufacturing companies are moving away from an assembly line layout to a modular layout in which teams of workers combine to produce complex units of a final product.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #306 Topic: Quality Control

307. (p. 242) Production manager Marvin McNealy wants to link all the divisions and subsidiaries of his firm's computerized functions into a single, integrated software program that uses a single database. In order to achieve this goal, Marvin could make use of: A. B. C. D. enterprise resource planning. manufacturing resource planning. program evaluation and review techniques. Gantt Charts.

Enterprise resource planning is a sophisticated computer application that links all the computerized functions of divisions and subsidiaries of a firm into a single, integrated software program that uses a single database.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #307 Topic: Materials Requirement Planning

308. (p. 242) Superior Supplies' largest customer recently implemented a just-in-time inventory system. As a supplier of materials to this customer, Superior will: A. B. C. D. realize significant freedom in scheduling deliveries. likely increase its effort and likely experience higher transportation costs. place less emphasis on quality and greater emphasis on quantity. need to deliver large quantities at regularly scheduled intervals.

Just-in-time inventory systems reduce inventory costs for producers, but they mean suppliers must make smaller, more frequent deliveries. This can result in more effort and higher costs for suppliers.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #308 Topic: Materials Requirement Planning

309. (p. 246) Last week John got a call from his contact, Eric at Alpine Telecomm in Switzerland, one of his company's largest international customers. As Eric put it, "This is a heads-up! Top management is asking operations to review our vendor's for ISO 14000 compliance." John's company should prepare to demonstrate: A. B. C. D. an acceptable level of quality standards of the products and services it provides. a level of quality in its products and services that exceeds its competitors. a world-class management system in information technology and lean manufacturing. best practices for managing its impact on the environment.

ISO 14000 is a collection of best practices for managing a firm's impact on its environment. These include having an environmental policy; having specific improvement targets; conducting audits on the operation; and having top management review the process.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #309 Topic: ISO 9000 and ISO 14000 Standards

310. (p. 247) ___________ is a technique to analyze and sequence tasks involved in completing a project, to estimate the time needed to complete each task, and to determine the minimum amount of time needed to complete each project. A. B. C. D. PERT ECON LIFO GANTT
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #310 Topic: Control Procedures: PERT and GANTT Charts

311. (p. 247) In a PERT network, the sequence of tasks that takes the longest to complete is called the:

A. B. C. D.

optimal path. maximum path. straight path. critical path.


AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #311 Topic: Control Procedures: PERT and GANTT Charts

312. (p. 247) The purpose of a PERT network is: A. B. C. D. to monitor the quality of a product for compliance with ISO 9000 standards. to monitor the progress of a multi-step project during its development. to connect all firms that are ISO 9000 certified so that they can partner with each other on future projects. to be used as a decision making tool when evaluating the best facility locations and layouts.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #312 Topic: Control Procedures: PERT and GANTT Charts

313. (p. 247) A bar graph that shows what projects or tasks are in process and how much of each is completed is called a(n): A. B. C. D. Grid chart. Gantt chart. Priority chart. Stem chart.
AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Nickels - Chapter 09 #313 Topic: Control Procedures: PERT and GANTT Charts

314. (p. 247) Which of the following would be most helpful to a production manager who wanted to determine the minimum time required to complete a proposed project? A. B. C. D. TQM CAD/CAM ERP PERT

PERT, which stands for program evaluation and review technique, is a method of analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-5 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #314 Topic: Control Procedures: PERT and GANTT Charts

315. (p. 247) The first step in the development of a PERT chart is: A. B. C. D. assigning an estimated cost to each task. analyzing the tasks and determining the sequence in which they must be performed. estimating the time needed to complete each task. identifying the probabilities that each step in the project can be successfully completed without exceeding the estimated cost.

PERT consists of four steps: (1) analyzing and sequencing the tasks that need to be done, (2) estimating the time needed to complete each task, (3) drawing a PERT network to illustrate the information from the first 2 steps, and (4) identifying the critical path.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-5 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #315 Topic: Control Procedures: PERT and GANTT Charts

316. (p. 247) The purpose of determining the critical path on a PERT network is to: A. B. C. D. identify the sequence of tasks that takes the longest to complete. estimate a payment schedule so that a budget can be established. find the sequence of events that is the most expensive to complete. establish a delivery schedule for a just-in-time inventory control program.

The critical path is the sequence of tasks in a project that takes the longest to complete.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-5 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #316 Topic: Control Procedures: PERT and GANTT Charts

317. (p. 248) Both PERT diagrams and Gantt charts are useful to managers concerned with: A. B. C. D. calculating the rate of profit earned in a particular market. making sure that projects are completed on time. estimating the cost of completing a project. establishing formal lines of authority and responsibility within an organization.

PERT diagrams and Gantt charts are tools used by managers to help ensure that projects are carried out in a timely manner. PERT diagrams help managers sequence the various tasks needed to complete a project, and identify the critical path, which is the sequence of tasks that takes the longest to complete. This information helps the manager focus on completing the tasks that have the greatest potential for delaying the overall project. A Gantt chart is simpler, but this bar graph provides a visual way for managers to track progress on a project and identify which tasks are on time and which are behind schedule.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-5 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #317 Topic: Control Procedures: PERT and GANTT Charts

318. (p. 247) Becca works as a new product development engineer for a company that makes solar panels for residential and commercial purposes. Her company uses PERT network software for all development projects. As she nears the final month of her timeline for completing a new panel, Becca will focus on those activities that are: A. B. C. D. most costly to complete. on the priority bar of the PERT chart. near the end of the PERT network. on the critical path of the PERT network.

The critical path is the sequence of tasks that takes the longest to complete. Delays in activities on this path are likely to result in delays in the completion of the project.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-5 Level of Learning 3: Application of principles Nickels - Chapter 09 #318 Topic: Figure 9.3

319. (p. 247) 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: A. B. C. D. the same resources used to complete "A" are also used to complete "B". "A" and "B" can be completed at the same time. "A" takes longer to complete than "B". "A" must be completed before "B" can begin.

The arrows in a PERT network indicate the sequence in which activities must be performed. An arrow from "A" to "B" means "A" must be completed before "B" can begin.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-5 Level of Learning 3: Application of principles Nickels - Chapter 09 #319 Topic: Control Procedures: PERT and GANTT Charts

320. (p. 247) Courtney was planning a new product launch. She knew that the art department was ready to work on the promotional pieces now, but they couldn't 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. Assuming things go as planned and based on this information, when will the art department be able to begin work on the promotional pieces? A. B. C. D. Immediately 1 week 2 weeks 1 month

A PERT chart could be used to determine the critical path. The art department is dependent on the strategy group for information that will take 1 week to obtain. The strategy group is dependent on manufacturing for cost information that will take an additional week. The purchasing department is not part of the critical path as the paper can be obtained on the same day. The art department will be able to begin in two weeks.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-5 Level of Learning 3: Application of principles Nickels - Chapter 09 #320 Topic: Control Procedures: PERT and GANTT Charts

321. (p. 247) Joel was planning a new product launch. He knew that the art department was ready to work on the promotional pieces now, but they couldn't start until the marketing strategy group established the price point and the purchasing department obtained the paper needed to design the promotional piece. Establishing price points would take about a week and was dependent on manufacturing getting the costs to the marketing 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. Assuming things go as planned and based on this information, which of the following tasks could be as much as a week late without jeopardizing the deadline for the entire project? A. B. C. D. Marketing strategy's determination of the price point Manufacturing's determination of the costs Purchasing obtaining the paper The art department taking a month-long vacation

A PERT chart could be used to determine the critical path. The art department is dependent on the strategy group for information that will take 1 week to obtain. The strategy group is dependent on manufacturing for cost information that will take an additional week. The purchasing task is not on the critical path of the project and thus is the only one that would not jeopardize the deadline for the entire project.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-5

Level of Learning 3: Application of principles Nickels - Chapter 09 #321 Topic: Control Procedures: PERT and GANTT Charts

322. (p. 247) Reviewing the PERT Network below: If it takes 1, 2, or 3 weeks for each activity (represented by a box) to be completed, the critical path is represented by: A. the path that begins with "Start" and continues with all boxes labeled with No. 1. B. the path that begins with "Start", continues with all boxes labeled with No. 2, and concludes with "Finish". C. the path that begins with "Start" continues with one box labeled with No. 2, proceeds with all boxes labeled with No. 3, and concludes with "Finish". D. the path that begins with "Start" continues with all boxes labeled with No. 1, and concludes with "Finish".

The critical path in a PERT Network is the project activity path that takes the longest time to complete. In this diagram, the path of boxes labeled [Start, 2, 3, 3, 3, 3, Finish] make-up the critical path.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-5 Level of Learning 2: Understanding of concepts and principles Nickels - Chapter 09 #322 Topic: Control Procedures: PERT and GANTT Charts; Figure 9.3

323. (p. 247) In analyzing the importance of a PERT network, it is reasonable to claim: A. PERT networks assist management in keeping tabs of employees who are not carrying their weight of production. B. it is almost impossible to do enterprise resource planning without PERT due to the number of firms that must be coordinated in the network. C. time overruns are costly. D. PERT, similar to the self-service lanes at the grocery store enhance customer convenience. The PERT Network sequences all tasks involved in a project and demonstrates the time it will take to complete each task and subsequently, the entire project. Project managers focus on the critical path, the group of sequenced tasks that will take the longest to complete. Since time is critical to staying within budget, if the project exceeds the allotted time, it will be more costly for the company.
AACSB: Reflective Thinking Blooms: Analysis Learning Goal: 09-5 Level of Learning 3: Application of principles Nickels - Chapter 09 #323 Topic: Control Procedures: PERT and GANTT Charts

324. (p. 247) Manny is a production and operations manager who likes to keep track of how various projects are progressing. One of Manny's favorite tools is a bar graph that shows how much work has been completed on the projects that are currently underway and which processes are behind schedule. Manny likes to use a(n): A. B. C. D. CAD/CAM diagram. input-output graph. Gantt chart. Targeted Completion Date Graph.

A Gantt chart is a bar graph that shows what projects are being worked on and how much work has been completed on each project.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-5 Level of Learning 3: Application of principles Nickels - Chapter 09 #324 Topic: Control Procedures: PERT and GANTT Charts

325. (p. 238 The selection of a proper site for a business facility is important in the production and operations management processes. Identify and discuss three factors that influence the selection of a site. 239) Students can select from the following: A) Firms often choose to locate in an area because it has inexpensive labor, or labor with the right kinds of skills. Even though labor costs are a declining percentage of total costs in highly automated industries, they still account for a large share of the production costs of many firms and must be carefully considered. B) Availability of non-labor resources can also be a major reason cited for a move. Most companies need access to inputs such as water, electricity, wood, coal, and other basic resources. Some industries can cut their costs significantly by moving to areas where such resources are abundant and inexpensive. C) Companies often choose to locate near good transportation facilities, such as interstate highways, rail facilities or airports in order to reduce time-to-market. They may also remain in certain areas or locate to specific areas where their customers primarily reside for the same reason. D) Government support and tax situations can sway the decision to locate or relocate to different areas. Some states have higher taxes than others, some give tax incentives or subsidies to businesses, and others provide zoning privileges or other forms of assistance. E) Climate, educational facilities, recreational opportunities and other factors that influence the quality of life can also influence the decision to locate or relocate a particular enterprise.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #325 Topic: Facility Location

326. (p. 237) How are MRP and ERP similar? How do they differ? Materials requirement planning (MRP) and enterprise resource planning (ERP) are computer applications that help managers schedule and use the resources needed to produce goods and services. These techniques differ in the following ways: MRP is a computer application that uses sales forecasts to make sure that needed parts and materials are available at the right time and place in a specific company. ERP is a computer application that enables firms to combine the computerized functions of all the divisions and subsidiaries of the firm such as finance, human resources, order fulfillment, etc.into a single integrated software program that uses a single database. By entering customer and sales information in an ERP system, a manufacturer can generate the next period's demand forecast, which in turn generates orders for raw materials, production scheduling, and financial projections.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #326 Topic: Flexible Manufacturing

327. (p. 245) How has the emphasis of quality control changed in recent years? Describe some of the modern quality control techniques that illustrate this change in emphasis. In the past, quality control was done by a separate quality control department and primarily consisted of testing products at the end of the production line. However, this approach proved to have several drawbacks. It led to having to use more workers and other resources than necessary and to higher costs to correct problems. It sometimes also resulted in dissatisfied customers. These drawbacks led to the realization that quality control should not be viewed as an outcome, but rather as a never-ending process of continually improving what the company produces. Thus modern operations managers believe that quality control should be part of the operations management planning process rather than an inspection tacked on at the end of the production line. This new perception of quality control has resulted in a variety of new quality control standards and techniques. One of the most famous standards is Six Sigma quality, which translates into achieving a standard of only 3.4 defects per million units. Statistical quality control (SQC) and statistical process control (SPC) are two modern quality control techniques. In SPC, managers continually monitor all processes within production to ensure quality is built into the product from the very beginning. SQC is the process of examining statistical samples at each stage of the production process to identify and correct any undesirable deviations from quality standards.
AACSB: Reflective Thinking Blooms: Comprehension Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #327 Topic: Quality Control

328. (p. 247) PERT is a popular control method used by organizations. Explain the purpose of PERT analysis, and describe the steps involved in constructing a PERT network. Your explanation should include a discussion of the significance of the critical path in a PERT network. PERT (Program Evaluation and Review Technique), is a method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project. PERT network steps are: 1) Analyze and sequence the tasks that need to be done. 2) Estimate the time needed to complete each task. 3) Draw a PERT network illustrating the information from steps 1 & 2. 4) Identify the critical path, which is the sequence of tasks that takes the longest time to complete. The significance of the critical path is that, since it represents the sequence of tasks taking the longest time to complete, the length of this path represents the earliest a project can be completed. Moreover, a delay in the activities along the critical path is likely to delay the completion of the project as a whole.
AACSB: Reflective Thinking Blooms: Analysis Learning Goal: 09-5 Level of Learning 3: Application of principles Nickels - Chapter 09 #328 Topic: Control Procedures: PERT and GANTT Charts

329. (p. 246) What are the ISO 9000 and ISO 14000 standards? Why are they important? The International Organization for Standardization (ISO) is a worldwide federation of national standards bodies from more than 140 countries that set the global measures for the quality of individual products. ISO 9000 is the common name given to quality management and assurance standards. The latest standards are called ISO 9000: 2004. The standards require that a company must determine what customer needs are, including regulatory and legal requirements. The company must also make communication arrangements to handle issues such as complaints. Other standards involve process control, product testing, storage, and delivery. Improving quality is an investment that can pay off in better customer relations and higher sales. What makes ISO 9000 so important is that the nations of the European Union are demanding that firms that want to do business with them must be ISO 9000 certified. Some major U.S. companies are also demanding that suppliers meet such standards. There are several accreditation agencies in Europe and in the U.S. whose function is to certify that a company meets the standards for all phases of its operations, from product development through production and testing to installation. ISO 14000 is a collection of the best practices for managing an organization's impact on the environment. It does not prescribe a performance level. ISO 14000 is really an environmental management system that requires having an environmental policy, establishing specific improvement targets, conducting audits of environmental programs, and maintaining top management review of the processes. Certification in both ISO 9000 and ISO 14000 mean that a firm has a world-class management system for both quality and environmental standards. Today, the ISO 9000 and 14000 standards have been blended so that firms can work on both at once. ISO is now working on social responsibility guidelines to go with the other standards.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #329 Topic: ISO 9000 and ISO 14000 Standards

Mini-Case "These are exciting times for our company. We've made a lot of changes over the past two years that have really improved our operations and lowered our costs. Now we are ready to expand into new markets. Minimotors is on its way to becoming a global player." The

speaker was Sparky Weyer, president and CEO of Minimotors, Inc., a growing manufacturer of small (some of them downright tiny) electric motors used in a variety of power tools and appliances. Sparky was meeting with potential financial backers in an effort to obtain funding for some expensive new machinery he wanted to purchase. "You may have heard about some of the ways we've cut costs," Sparky continued. "We've developed a new arrangement with several of our biggest suppliers. They've agreed to make more frequent deliveries tied directly to our production schedules. This will help us reduce our inventory costs dramatically. We've also greatly reduced the number of defective motors we produce by carefully keeping tabs on all of our manufacturing processes. In fact, we have set a goal of reducing our defects to 3.4 parts per million. The main purpose of my meeting with you today is because we want to install some sophisticated new machinery and software that will allow us to quickly design and produce motors to the exact specifications of our customers. The machinery is computer-controlled and can produce custom-designed products at very little increase in cost compared to our mass produced motors. We feel this flexibility and quick response time will give us a tremendous competitive advantage and help us attract new customers. Installing the new equipment and training our workers to use it properly will be a complex project, but I'm confident that once we get everything up and running we'll be able to strengthen our position as the leading maker of high-quality electric motors."
Nickels - Chapter 09

330. (p. 245) One of Sparky's goals is to expand globally. He is most interested in doing business with the nations of the European Union. In order to do business with the European Union, Sparky's company should: A. B. C. D. gain ISO 9000 certification. make sure his production workers all belong to an international union. put more emphasis on low cost rather than product quality. buy at least 50 percent of its supplies from countries belonging to the European Union.

ISO 9000 refers to quality management and assurance standards. These standards provide a common denominator of business quality that is accepted around the world. The EU is demanding that firms wanting to do business with it must be certified as meeting the ISO 9000 standards.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #330 Topic: Quality Control

331. (p. 245) The arrangements Minimotors has worked out with its suppliers to reduce the amount of inventory the company holds at any one time shows that it is committed to a(n) _____________. A. B. C. D. priority inventory scheduling system. first in, first out inventory processing system. just-in-time inventory control system. ABC inventory system.

In a just-in-time inventory control system, suppliers deliver just enough supplies just in time for their use in a production process. While this requires frequent deliveries, it also allows the producer to greatly reduce the amount of parts and materials held in inventory.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #331 Topic: Quality Control

332. (p. 236) The equipment and software Sparky wants to acquire will allow the computers used to design motors to be linked directly to the computer-aided equipment on the factory floor. Sparky is proposing to set up a(n): A. B. C. D. modular manufacturing system. computer-integrated manufacturing system. E-hub that relies on network software to control the production process. first-in, first-out production system.

Computer-integrated manufacturing unites CAD (computer-aided design) with CAM (computer-aided manufacturing).
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #332 Topic: Computer-Aided Design and Manufacturing

333. (p. 246) In order to schedule deliveries, Minimotors's suppliers need detailed information about when parts are needed. Minimotors will purchase a sophisticated computer application that will link its operation to sales forecasts to make sure needed parts and supplies are available at the right time to meet customer demands. This planning system is known as: A. B. C. D. Materials requirement planning (MRP). Program evaluation and review technique (PERT). Minimum daily requirements scheduling (MDRS). Sales-based requirements forecasting (SBRF).

MRP is computer-based planning system that uses sales forecasts to make sure needed parts and materials are available at the right time and place.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-3 Level of Learning 3: Application of principles Nickels - Chapter 09 #333 Topic: Facility Location in the Future

334. (p. 246) 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: A. Six Sigma. B. Quality function deployment.

C. ERP. D. PERT analysis. Quality control concepts such as Six Sigma tend to focus on detecting potential problems to prevent their occurrence.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #334 Topic: Quality Control

335. (p. 247) Sparky knows that installing the new equipment and training workers to use it efficiently will be a long and complex process consisting of many different tasks. Which of the following methods would help him determine how long this project is likely to take? A. B. C. D. TPSM (task priority scheduling method) Dependency Analysis TRSS (task and resource scheduling system) PERT (program evaluation and review technique)

PERT enables managers to estimate how long it will take to complete a project by identifying the project's critical path, which is the sequence of tasks in a project that takes the longest to complete.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-5 Level of Learning 3: Application of principles Nickels - Chapter 09 #335 Topic: Control Procedures: PERT and GANTT Charts

336. (p. 246) While Minimotors has focused on improving production efficiencies, global customers are inquiring about its environmental policies. In light of its strategy to serve European customers, Sparky has requested two of its lead engineers to investigate what it would take to meet the environmental standards of its socially responsible customers. The engineers should investigate ___________ as best practices for managing a firm's impact on its environment. A. B. C. D. the EPA's minimum pollution standards ISO 14000 RG3 Regulations WTO environmental policy

ISO 14000 is a collection of best practices for managing an organization's impact on the environment. Companies that are ISO 14000 certified show that they have an environmental management system in place and are able to demonstrate that they maintain an environmental policy; they have improvement targets; they conduct regular environmental audits, and, top management reviews the process.
AACSB: Reflective Thinking Blooms: Application Learning Goal: 09-4 Level of Learning 3: Application of principles Nickels - Chapter 09 #336 Topic: Facility Location in the Future

9 Summary
Category # of Questions

AACSB: Ethics AACSB: Reflective Thinking Blooms: Analysis Blooms: Application Blooms: Comprehension Blooms: Knowledge Learning Goal: 09-1 Learning Goal: 09-2 Learning Goal: 09-3 Learning Goal: 09-4 Learning Goal: 09-5 Level of Learning 1: Knowledge of key terms Level of Learning 2: Understanding of concepts and principles Level of Learning 3: Application of principles Nickels - Chapter 09 Topic: Baldrige Awards Topic: Computer-Aided Design and Manufacturing Topic: Control Procedures: PERT and GANTT Charts Topic: Control Procedures: PERT and GANTT Charts; Figure 9.3 Topic: ERP Topic: Facilities Layout Topic: Facility Location Topic: Facility Location for Manufacturers Topic: Facility Location in the Future Topic: Figure 9.3 Topic: Flexible Manufacturing Topic: Flexible Manufacturing; Lean Manufacturing Topic: Flexible Manufacturing; Mass Customization Topic: From Production to Operations Management Topic: ISO 9000 and ISO 14000 Standards Topic: Just-In-Time Inventory Control Topic: Lean Manufacturing Topic: Lean Manufacturing; Flexible Manufacturing Topic: Making Ethical Decisions box Topic: Manufacturers and Service Organizations Become More Competitive Topic: Manufacturing and Services in Perspective Topic: Mass Customization Topic: Materials Requirement Planning Topic: MRP Topic: MRP and ERP Topic: Operations Management in the Service Sector Topic: Operations Management Planning Topic: Operations Management Planning; Figure 9.2 Topic: Production Processes Topic: Production Processes; Figure 9.1 Topic: Purchasing Topic: Quality Control Topic: Taking Operations Management to the Internet Topic: The Baldrige Awards Topic: Thinking Green box

2 334 12 71 61 192 27 37 96 142 34 192 67 77 337 1 30 32 1 1 15 9 1 7 1 6 1 1 25 10 10 10 1 3 16 8 15 11 3 1 12 28 1 30 1 6 28 5 3 3