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Nickels Chapter 9. Operations Management study questions with answers following (76 pages)
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9Student: _______________________________________________________________________________________
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1. Currently, manufacturing accounts for only around 70% of U.S. GDP.
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.
3. The Green Movement has had a large affect on the service industry, but only a negligible affect on manufacturing.
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.
5. One key to the resurgence of U.S. firms as world-class competitors has been the implementation of a focus on quality.
6. Evidence suggests that U.S. manufacturing firms can no longer compete against the best firms in the rest of the world.
7. American manufacturers have emphasized continuous improvement as one strategy for regaining a competitive advantage in the manufacturing sector.
8. In order to be more competitive globally, production techniques such as enterprise resource planning and lean manufacturing are being used by American manufacturers.
9. To strengthen its manufacturing base, the U.S. will need to continue to innovate.
10. The U.S. is still manufacturing intensive. Only 25% of U.S. jobs come from the service sector.
11. Companies such as IBM prefer to stay the course and continue to compete by selling products instead of services.
12. Since U.S. manufacturing competes on price throughout the world, innovation plays a very small part in the U.S. economy.
13. U.S. businesses are known for their creativity and their ability to implement change.
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.
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.
16. U.S. manufacturers are focusing on quality as a way to become more competitive globally, assuming that cost is not an issue.
17. Although important, the Green Economy will do little to add value to the U.S. economy.
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.
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19. In the past, production management was about using the factors of production to create finished goods.
20. Operations management converts resources into goods and services.
21. In the process of operations management, a firm transforms resources such as raw materials, supplies, and even human resources into goods and services.
22. The service sector of the U.S. economy offers many jobs, but very few of them are considered high wage occupations.
23. Firms that specialize in accounting, finance, and management consulting are all part of the service sector.
24. Operations management involves inventory management, quality control, and production scheduling.
25. Manufacturing firms focus exclusively on the production of goods and allow other firms to provide services.
26. In recent years, operations management has become more focused on providing services, because that is where the growth and profit potential is greatest.
27. Operations management in service industries is about creating a good experience for the customer.
28. Operations management moves from knowing the needs of consumers to actually satisfying those needs.
29. In service industries such as hotels, quality management training is important to ensure that all employees are "certified" in their positions.
30. Education and training are less important to workers in the service sector than to workers who have jobs in the manufacturing sector.
31. The quality standard for service industries such as luxury hotels is meeting the customers' requests.
32. Service businesses know that in order to delight customers they must be able to anticipate their needs.
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.
34. Manufacturing companies are concerned with production management, while service companies are concerned with operations management.
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.
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.
37. Jason recently graduated with a degree in operations management from a respected university. The knowledge he gained and skills he
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developed while obtaining this degree could make him an attractive employee for either a manufacturing firm or a service firm.
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.
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.
40. 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.
41. When firms successfully produce products, they create form utility.
42. Only firms in the manufacturing sector can create true form utility.
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.
44. The value added by the creation of finished goods and services from inputs is called ownership utility.
45. Process manufacturing refers to combining components and raw materials to make a product.
46. Process manufacturing physically or chemically alters materials to create finished goods.
47. An assembly process involves physically or chemically manipulating raw materials to create a product.
48. A continuous production process is characterized by long production runs that turn out finished goods over time.
49. Intermittent production processes are characterized by short production runs and frequent changes of machinery in order to produce different products like customized furniture.
50. Contemporary manufacturers in the U.S. lack the flexibility to use intermittent production processes.
51. One drawback of intermittent production processes is that they tend to be much slower than continuous processes.
52. The production process requires inputs, controls, and outputs.
53. Mass production techniques allowed firms to respond quickly to the individual needs of consumers.
54. One of the reasons mass production techniques lost favor is that, despite their ability to keep costs relatively low, mass production lacks flexibility.
55. The ability to integrate computers into the design and manufacture of products has had the greatest impact on production techniques in recent years.
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56. CAD/CAM has made it possible to custom-design products to meet the tastes of small markets with very little increase in costs.
57. CAD systems allow designers to work in three dimensions.
58. Despite its early promise, computer-aided design has not met with much success in increasing productivity.
59. The purpose of computer-integrated manufacturing (CIM) is to unite computer-aided design with computer-aided manufacturing.
60. The advantage of computer integrated manufacturing software is that it allows computer aided design machines to communicate directly with computer aided manufacturing machines.
61. So far, the high cost of CAD/CAM techniques has limited their use to large, expensive manufactured goods such as automobiles.
62. Flexible manufacturing systems use machines that are designed to do a multitude of tasks so that they can produce a variety of goods.
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.
64. One way to compete with cheap labor is to use robots.
65. Lean manufacturing is a strategy of producing standardized products that have no frills or extra features in order to keep prices low.
66. Companies that achieve lean manufacturing use less of everything (raw materials, labor, etc.) to produce the same amount of products.
67. Technological improvements are largely responsible for the increase in productivity and efficiency of U.S. plants.
68. The higher productivity of U.S. plants makes it possible to pay higher wages.
69. Mass customization is tailoring products to meet the needs of individual customers.
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.
71. While mass customization works well for producers it is not used in the service sector.
72. Actually, it is much easier to custom-design service programs than it is to custom-make goods.
73. Speeding up the process of responding to consumer wants and needs is a key to global competitiveness.
74. A fast-changing plant needs a fast-moving employee base to achieve maximum productivity.
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75. Companies that employ lean manufacturing and flexible manufacturing produce better quality products, but have costlier production lines.
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.
77. Improvements in technology have significantly increased the quality of products, as well as helped reduce costs.
78. Manufacturers use CAM (computer aided manufacturing) to create three-dimensional designs of products before they are built.
79. Mass customization is not exclusive to product intensive businesses. Service businesses have learned how to use mass customization to serve their customers.
80. Businesses that provide services typically cannot use mass customization because services are not tangible products that can be customized.
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.
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.
83. Land, labor, capital, and knowledge are inputs into the production process.
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.
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.
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.
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.
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.
89. Computers and robots are only useful in continuous production processes where the same type of product is produced many times.
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.
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.
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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.
93. Facility location is the process of selecting a geographic location for a company's operations.
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.
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.
96. When it comes to location decisions, labor costs are no longer an important consideration for most manufacturing firms.
97. The Internet is a very popular place to locate your business today.
98. Due to the growth of the Internet, the cost of labor is no longer an important consideration in location decisions of business firms.
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.
100. Some companies will locate their production facilities near their suppliers.
101. Many state and local governments offer tax incentives and government services to attract businesses.
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.
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.
104. Internet-focused strategies don't affect operations managers since it is not progressive for operations managers to negotiate in an interfirm environment.
105. Operations managers are adjusting from a relatively stable environment to one that is constantly changing and evolving.
106. For many firms, operations management has become an interfirm process.
107. Facility layout is the function of operations management that considers the physical arrangement of resources (including people) in the production process.
108. For service intensive businesses, facility layout is usually designed to centralize the decision-making process.
109. Telecommuting has diminished in popularity as a strategy for linking employees with work.
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110. The production of a bridge, ship, or large airplane usually involves a variable-position facility layout.
111. The process layout simplifies production by using the same sequence of processes regardless of the design of the item being produced.
112. In an assembly line manufacturing layout workers do only a few tasks at a time.
113. In a modular manufacturing layout teams of workers combine to produce more complex units.
114. A product manufacturing layout is used to produce large quantities of a few types of products.
115. A process manufacturing layout is frequently used in operations that serve different customers' different needs.
116. Facilities layout will depend upon the processes that are to be accomplished in the firm's operation.
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.
118. Materials requirement planning relies on the firm's balance sheet to make sure that the right quantities of finished goods are produced.
119. One limitation of materials requirement planning (MRP) is that it is not a computer-based approach.
120. Enterprise resource planning (ERP) is simpler and less sophisticated than manufacturing resource planning (MRP).
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.
122. ERP software enables multiple firms to manage all of their operations on the basis of a single, integrated set of corporate data.
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.
124. Over the past few years, Internet-based companies have emerged to help businesses find the best supplies at the best prices.
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.
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.
127. The purchasing function of operations management seldom uses the Internet to make purchasing decisions.
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.
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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.
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.
131. Overall, American firms that have tried to use just-in-time inventory systems generally report disappointment with the results.
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.
133. Quality control is a continual process of checking to make certain that there is consistency in the quality of products being produced.
134. Six Sigma is a benchmark of quality standards that many product and service industries try to achieve.
135. Under the six sigma quality standard the idea is to detect potential problems, in order to prevent their occurrence.
136. Six sigma is a quality measure that allows only 3.4 defects per million opportunities.
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.
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.
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.
140. The Deming Cycle is designed to catch errors before they happen.
141. The Deming Cycle approach to quality control consists of: Plan, Do, Check, Act.
142. Service organizations find it difficult to provide outstanding service every time because the process is so labor intensive.
143. If a company achieves Six Sigma quality standards, they automatically win the Malcolm Baldrige award.
144. The Baldrige standards measure a firm's quality in several key areas including planning, leadership, and customer and market focus.
145. ISO is a world-wide, non-governmental federation that sets global measures of quality.
146. The International Organization for Standardization continually updates acceptable international requirements in the areas of process control, product testing, storage, and delivery.
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147. ISO 9000 refers to a set of international standards for quality management and assurance.
148. ISO 14000 is a new set of product quality standards that has replaced the old ISO 9000 standards.
149. The European Union demands that all firms that want to do business with its member nations must satisfy ISO 9000 standards.
150. ISO 14000 is a collection of the best practices for managing an organization's impact on the environment.
151. Firms that satisfy the ISO 9000 and ISO 14000 standards have demonstrated a world-class management system in both quality and environmental standards.
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.
153. Recent developments in information technology will discourage companies from allowing employees to telecommute.
154. Areas with higher than average labor costs are almost always at a major disadvantage when trying to attract new businesses.
155. Retailing is one area where technology is unlikely to make a big difference in how services are provided.
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.
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.
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.
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.
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.
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.
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.
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.
164. Millwell Manufacturing redesigned its facility layout to group similar equipment and functions together, and to allow flexibility in the
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sequence in which products are produced using these functions. Millwood's new layout is an example of the fixed-position layout.
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.
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.
167. Mypartz, Inc. is a major supplier of components used by Idle Time Gaming Systems. Idle Time Gaming wants to implement a just-in-time inventory system. Mypartz should benefit from this approach, since JIT systems greatly simplify the task of suppliers.
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.
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.
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.
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.
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.
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.
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.
175. A major purpose of the program evaluation and review technique (PERT) is to identify the minimum time needed to complete a project.
176. The end result of PERT analysis is an estimate of the total cost of completing a project.
177. The critical path identified by PERT analysis is the sequence of tasks that can be completed in the shortest amount of time.
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.
179. An advantage of PERT diagrams is that they are usually so simple to draw that a computer is not needed.
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180. In a PERT network, a critical path is the sequence of tasks that takes the longest time to complete.
181. Compared to PERT networks, Gantt charts provide a more basic way to track progress on a given project.
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.
183. The significance of the critical path on a PERT chart is that it identifies the least costly method of producing a given product.
184. The first step in the PERT method is to assign a cost to each activity.
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.
186. Gantt charts will show the production manager if certain activities in the production process are lagging behind their acceptable time of completion.
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.
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.
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.
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.
191. U.S. companies that participate in the manufacturing sector:
A. depend on government imposed tariffs on foreign goods to remain competitive.B. are growing much more rapidly than firms in the service sector.C. have focused on innovative operations management techniques in order to regain their competitive edge.D. 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. grown much more rapidly than the manufacturing sector.B. become the low-wage sector of the U.S. economy.C. achieved extremely high productivity gains according to government reports.D. focused less on quality and more on reducing costs of production.
193. During the deep recession of 2008-2009,
A. the service industry was hardest hit.B. job loss was severe in the manufacturing and housing industries.C. education and healthcare were hardest hit.D. 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. the Green Movement is determined as the only external circumstance that will bring the U.S. out of the recession.B. green products are selling well, but not green services.C. the Green Movement is producing upwards of $200 billion worth of products and services.D. 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. fade in importance as foreign manufacturers continue to gain control of important markets.B. continue to be an important issue in the near future.C. focus on government efforts to foster performance in a few key industries.D. 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. focussing on providing the lowest priced products.B. relying on advanced technology and the Internet to unite companies.C. maintaining a distance relationship with suppliers in an effort to guard trade secrets.D. increasing advertising budgets.
197. To strengthen its manufacturing base in the future, U.S. will have to:
A. uncover lower wage workers in the U.S. to compete with China.B. continue to innovate.C. support students in high school and college interested in studying the arts.D. cut the amount of benefits offered to workers.
198. The resurgence of U.S. manufacturing firms in recent years can be credited to:
A. the government's willingness to implement policies designed to protect U.S. firms from low-cost foreign competition.B. a decision by many U.S. manufacturers to drastically reduce costs by making more extensive use of mass production techniques.C. a number of significant changes in both the production techniques and management styles used by U.S. firms.D. 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. resources.B. goods.C. services.D. equities.
201. Operations management is a specialized area in management that converts resources into:
A. services, rather than goods.B. goods, rather than services.C. both goods and services.D. financial data.
202. __________ is the specialized area of management that converts or transforms resources into goods and services.
A. Logistics managementB. Resource engineeringC. IntrapreneuringD. Operations management
203. __________ is the creation of goods and services using land, labor, capital, entrepreneurship, and knowledge.
A. Resource recombinationB. Supply chain managementC. ProductionD. Purchasing
204. The U.S. economy is now dominated by the _________ sector.
A. farmB. serviceC. manufacturingD. trade
205. Operations management in the service sector is focused on creating:
A. good experiences for those who use the service.B. jobs for the local community.C. additional customer expectations.D. inexpensive ways to get things done.
206. Experts in operations management for service industry type businesses stress:
A. using records from accounting to determine what business to go after.B. relying on one's individual operation as opposed to developing partnerships.C. training employees on quality management.D. training employees to always adhere to only one way of doing things.
207. Operations management is the __________ phase of management.
A. planningB. implementationC. controlD. building
208. The basic reason the term production management has been replaced by the term operations management is that:
A. the U.S. economy has moved toward a more socialist approach with government controlling a greater share of the production process.B. a much larger share of total output is being produced by nonprofit organizations.C. the United States is now a service economy.D. 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. have limited job opportunities because operations management positions are only available in the slowly growing manufacturing sector.B. acquire skills and knowledge that are valuable to firms in both the manufacturing and service sectors.C. have plenty of job offers, but they will mainly be in low wage positions in the service sector.D. 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. is all about providing the service at the lowest cost.B. should focus on providing customers with a good experience.C. has less flexibility than operations management in the manufacturing sector, because services are not technology driven.D. 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. providing prompt and predictable service.B. providing a competitive level of service at the lowest cost.C. delighting customers by anticipating their needs.D. 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. Human resources managementB. The management staffC. Operations managementD. 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. operations managementB. promotions managementC. distributive managementD. marketing management
215. Production creates:
A. time utility.B. possession utility.C. form utility.D. marginal utility.
216. ___________ utility is the value added by the creation of finished goods and services using raw materials, components, and other inputs.
A. ManufacturingB. MarginalC. ConsumptionD. Form
217. In ____________, materials are physically or chemically changed to produce a product.
A. process manufacturingB. assembly processesC. utilitarian productionD. diffusive manufacturing
218. A(n) __________ puts together components to make a product.
A. modular processB. compression processC. assembly processD. econometric process
219. A production process characterized by long production runs to turn out finished goods over time is known as a(n):
A. assembly process.B. continuous process.C. extended process.D. 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. just-in-time process.B. lean manufacturing system.C. analytic process.D. intermittent process.
221. Most new manufacturing facilities use:
A. continuous processes.B. intermittent processes.C. traditional processes.D. synthetic processes.
222. In the past, the idea behind mass production was to:
A. produce goods of the highest possible quality.B. give producers the maximum flexibility to respond to customer preferences.C. make large quantities of a limited variety of products at very low cost.D. give workers more control over their work environment.
223. ____________ uses computers to help design products.
A. PERTB. QPCC. DPAD. CAD
224. __________ involves computers directly in the production process.
A. CADB. CAMC. AMDAD. AMCAP
225. CAD/CAM makes it possible to custom-design products to meet the needs of __________ with __________.
A. small markets; a decrease in costB. very large markets; no increase in costC. small markets; very little increase in costD. international markets; products that are complex
226. CAD has __________ productivity in many firms.
A. unfortunately had no effect onB. actually decreasedC. increasedD. splintered
227. Sophisticated software that enables computer-aided design machines to communicate with computer-aided manufacturing machines is called:
A. a flexible system.B. a computer-based feedback control system.C. computer-integrated manufacturing.D. heuristic manufacturing integration.
228. In __________, machines are designed to do multiple tasks so that they can produce a variety of products.
A. systems engineeringB. microdesignC. modular constructionD. flexible manufacturing
229. In manufacturing, one way to compete with cheap labor is to:
A. use robots.B. hire experienced people.C. make the production line longer.D. increase inputs to the system.
230. The goal of lean manufacturing is to:
A. keep inventories of finished goods as high as possible.B. produce goods and services with less of everything that goes into the process.C. produce a very limited variety of goods.D. 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. Mass customizationB. Mass productionC. Competing in timeD. 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. Companies tended to produce a large quantity of the same product at a very low costB. Companies required their suppliers to only deliver the amount of good needed for a short-term production runC. Companies changed their equipment too often, which created lost time on the jobD. 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. is most useful to firms producing durable goods such as automobiles.B. has replaced ERP as the most sophisticated resource planning technique.C. allows firms to save money by replacing skilled labor with computers to perform all of the high-skill tasks.D. 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. makes it possible to custom-design products to meet the needs of small markets with very little increase in cost.B. replaces "dumb" robots with "smart" computers.C. allows personal computers to communicate directly with the firm's server.D. controls all of the actions of the assembly line from a central location.
235. A basic characteristic of flexible manufacturing is that it:
A. relies heavily on labor, since humans are more adaptable than machines.B. uses machines designed to perform multiple tasks so they can be used to produce a variety of products.C. achieves its flexibility at the cost of much slower rates of production than mass production techniques.D. 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. investigating; planningB. increasing; decreasingC. decreasing; increasingD. planning; investigating
237. Lean manufacturing ___________ productivity.
A. increasesB. decreasesC. has no effect onD. 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. it basically eliminates the need for human intervention.B. it saves on materials costs.C. it permits customization without a significant increase in price.D. 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. form utility.B. place utility.C. use facility.D. 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. analytic system.B. just-in-time system.C. intermittent process.D. 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. lean manufacturing.B. flexible production.C. mass customization.D. 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. excellent human resources managementB. the InternetC. mass customizationD. 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. consumer surplus.B. the analytic function.C. marginal utility.D. 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. intermittentB. assemblyC. continuousD. 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. an analytic production system.B. process manufacturing.C. an assembly process.D. 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. an assembly process.B. process manufacturing.C. synthetic production.D. continuous production.
248. 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. micro-engineering.B. flexible manufacturing.C. continuous production.D. 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 itB. He wants the product to achieve the quality level expected by the customerC. 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 customerD. 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. mass production.B. marginal cost management.C. lean manufacturing.D. 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. just-in-time manufacturing.B. analytic production.C. mass customization.D. 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. flexible manufacturing for its customers.B. lean services because it only needs to keep a certain amount of cash in each machine.C. technology similar to CAD.D. 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. mass production.B. just-in-time production systems.C. the PERT method.D. 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. linear programming software.B. holistic internalization of operations.C. computer integrated manufacturing.D. 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. CAD.B. CAM.C. CIM.D. SCM.
256. __________ is the process of selecting a geographic location for a company's operations.
A. Facility locationB. Facility layoutC. FRPD. 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 laborB. Higher quotas on competing goods
C. Access to various modes of transportationD. Availability of a retired workforce
258. Operations management planning does not include decisions about:
A. where to locate a business facility and how it will be configured.B. materials requirement planning.C. quality control.D. 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. reducing time to marketB. using ERP techniquesC. replacing labor with machineryD. switching to a more service-oriented product mix
260. Contemporary producers and their suppliers,
A. locate in areas where they can share the same labor.B. know that it is not necessary to locate close to international customers due to technology such as the Internet.C. locate close together to decrease the cost of distribution.D. 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. bonuses equal to 1 ½ times their regular monthly payB. 2 weeks notice.C. a golden handshakeD. 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. outsourcingB. rivetingC. outboundingD. 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. open operationB. closed operationC. interfirm processD. conjoined process
264. __________ is the physical arrangement of resources in the production process.
A. Facility locationB. Facility layoutC. ERPD. RRL
265. Moduar facilities layouts consist of:
A. teams of workers who work together on a complex assembly.B. lines of workers who do a small series of tasks and then pass along the product through the line to the next worker.C. virtual companies and their supplier relationships.D. 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. assembly line layoutB. continuous production processC. fixed-position layoutD. 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. modularB. spoke and wheelC. networkD. cluster
268. In manufacturing, a __________ is used to produce large quantities of a few types of products.
A. product layoutB. process layoutC. modular layout
D. fixed-position layout
269. In manufacturing, a __________ is frequently used in operations that serve different customers' different needs.
A. product layoutB. process layoutC. modular layoutD. fixed-position layout
270. An example of a __________ is building a new home on a lot.
A. product layoutB. process layoutC. modular layoutD. 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. Enterprise Resource PlanningB. Materials Requirement PlanningC. Virtual Accuracy ToolD. Computer Based Materials Model
272. MRP is a technique that helps managers:
A. develop a reliable sales forecast.B. schedule the sequence of tasks workers must perform in order to complete a project.C. determine how many workers are needed to staff various departments.D. make sure that the right parts and materials are available at the right time.
273. MRP is the acronym for:
A. minimum resource payments.B. maximized revenue potential.C. managed resource priorities.D. materials requirement planning.
274. ERP is the acronym for:
A. Educated Rights Planning.B. Extensive Research Planning.C. Enterprise Resource Planning.D. 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. Materials requirement planning (MRP)B. PERT analysisC. Manufacturing resource planning (MRP II)D. 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. MarketingB. Collective bargainingC. BarteringD. Purchasing
277. __________ has transformed the purchasing function in recent years by helping firms find the best suppliers and the best prices.
A. PERTB. The InternetC. CAD/CAMD. QFD
278. Today manufacturers are relying more heavily on:
A. one or two suppliers because firms share so much information.B. the bidding process to obtain the lowest price.C. many suppliers to keep its leverage.D. 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. ABCB. first-in, first-outC. just-in-time (JIT)D. maximum
280. To reduce the cost of holding too much inventory, many companies have implemented:
A. ABC inventory management.B. first-in, last-out inventory control.C. just-in-time inventory control.D. maximum inventory management.
281. Maintaining ___________ involves producing what the customer wants while reducing errors before and after delivery to the customer.
A. manufacturing controlB. allocative efficiencyC. CAD/CAMD. quality
282. In today's quality control programs, emphasis is placed on:
A. producing goods at the lowest possible cost.B. keeping labor costs as low as possible.C. achieving customer satisfaction.D. detecting errors at the end of the production process before the goods are shipped to customers.
283. The six sigma approach to quality control:
A. relies on a special team of experts to examine every unit of output at the end of the production process.B. detects potential problems early to prevent their occurrence.C. views quality control as a function of the marketing department.D. 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. CAD/CAMB. EconometricsC. Analysis of varianceD. Statistical process control
285. The Deming Cycle is:
A. a checklist that enables managers to evaluate employee performance more systematically.B. a systematic method of evaluating potential facility locations.C. a process for finding potential quality errors before they occur.D. 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. Association of Operations ManagersB. Excellence in Production CommitteeC. National Association of ManufacturersD. Malcolm Baldrige
287. ___________ are a set of international standards for quality management and quality assurance.
A. EPA 2000B. ISO 14000C. ISO 9000D. TQM 2003/2004
288. ____________ standards are concerned with the best practices for managing an organization's environmental impacts.
A. EPA 2000B. ISO 14000C. Eurogreen 700D. Enviro 2001
289. Which of the following is an important part of operations management?
A. Determining the best means of financing the firm's operationsB. Developing the best advertising strategy to promote a firm's productsC. Deciding whether to pay a dividend to the firm's stockholdersD. 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 decisionsD. 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. Very few firms are still influenced by labor costs when making decisions about where to locateB. Recent changes in information technology have led firms to favor locations near major urban areasC. Manufacturers often seek to reduce time-to-market by locating facilities in areas with access to key modes of transportationD. 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 aidB. try to avoid competition with other areas, because such competition usually backfires and creates ill-willC. no longer pursue new businesses, because they have found that attempts to attract businesses are usually too expensive to justify the
resultsD. 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. Most manufacturing firms are turning to an assembly line layout to produce output as efficiently as possibleB. For service firms, the main objective in facility layout usually is to centralize the control of operationsC. Facility layout is important for manufacturing plants because facilities layout decisions can have a huge impact on the firm's costsD. 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. had little effect on business location decisions.B. given firms even greater flexibility in their location decisions.C. caused a movement of firms back to urban areas where access to this technology is greatest.D. reduced the impact government policies have on location decisions.
295. Contemporary operations management planning is an interfirm process. This means:
A. the process must integrate all of the functional units of a firm's operation, including production, marketing, finance, and logistics.B. the process is a confidential plan that is not shared with suppliers or customers. It stays within the firm.C. it is a process where several firms work closely together to produce goods and services, and anticipate a changing environment.D. 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. gives much more precise cost estimates.B. finds the critical path and compute its length.C. monitors the computerized functions of all the divisions and subsidiaries of the firm in a single software program.D. handles research data about more than one product at the same time.
298. A just-in-time inventory system usually reduces costs for:
A. both the producer and its suppliers.B. suppliers, but not the producer.C. the producer, but not its suppliers.D. 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. deliver materials and parts in large quantities only a few times a year.B. enjoy much lower delivery costs.C. have a great deal of flexibility in determining when to make deliveries.D. 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. world-class management of both quality and environmental standards.B. sound financial and marketing practices.C. ethical treatment of both customers and employees.D. 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. Access to good roads and interstate systemB. Tax benefitsC. Skilled laborD. 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 basisB. The business strategically moves manufacturing facilities to low cost areas and allocates more funds toward the sales professionals to meet
face to face with managementC. The operation is maintained with an advanced MRP systemD. 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. quality of life.B. access to cheap land.C. reducing time to market.D. 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. become certified in ISO 9000 standards.B. convert its financial assets into Euros.C. avoid reliance on the Deming cycle.D. 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. consolidated process layout.B. continuous flow layout.C. modular layout.D. 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. enterprise resource planning.B. manufacturing resource planning.C. program evaluation and review techniques.D. 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. realize significant freedom in scheduling deliveries.B. likely increase its effort and likely experience higher transportation costs.C. place less emphasis on quality and greater emphasis on quantity.D. 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. an acceptable level of quality standards of the products and services it provides.B. a level of quality in its products and services that exceeds its competitors.C. a world-class management system in information technology and lean manufacturing.D. 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. PERTB. ECONC. LIFOD. 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. to monitor the quality of a product for compliance with ISO 9000 standards.B. to monitor the progress of a multi-step project during its development.C. to connect all firms that are ISO 9000 certified so that they can partner with each other on future projects.D. to be used as a decision making tool when evaluating the best facility locations and layouts.
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. Grid chart.B. Gantt chart.C. Priority chart.D. 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. TQMB. CAD/CAMC. ERPD. PERT
315. The first step in the development of a PERT chart is:
A. assigning an estimated cost to each task.B. analyzing the tasks and determining the sequence in which they must be performed.C. estimating the time needed to complete each task.D. 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. identify the sequence of tasks that takes the longest to complete.B. estimate a payment schedule so that a budget can be established.C. find the sequence of events that is the most expensive to complete.D. establish a delivery schedule for a just-in-time inventory control program.
317. Both PERT diagrams and Gantt charts are useful to managers concerned with:
A. calculating the rate of profit earned in a particular market.B. making sure that projects are completed on time.C. estimating the cost of completing a project.D. 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. most costly to complete.B. on the priority bar of the PERT chart.C. near the end of the PERT network.D. 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. the same resources used to complete "A" are also used to complete "B".B. "A" and "B" can be completed at the same time.C. "A" takes longer to complete than "B".D. "A" must be completed before "B" can begin.
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. ImmediatelyB. 1 weekC. 2 weeksD. 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 costsC. Purchasing obtaining the paperD. 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. CAD/CAM diagram.B. input-output graph.C. Gantt chart.D. 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. gain ISO 9000 certification.B. make sure his production workers all belong to an international union.C. put more emphasis on low cost rather than product quality.D. buy at least 50 percent of its supplies from countries belonging to the European Union.
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. priority inventory scheduling system.B. first in, first out inventory processing system.C. just-in-time inventory control system.D. 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. modular manufacturing system.B. computer-integrated manufacturing system.C. E-hub that relies on network software to control the production process.D. 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. Materials requirement planning (MRP).B. Program evaluation and review technique (PERT).C. Minimum daily requirements scheduling (MDRS).D. 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. Six Sigma.B. Quality function deployment.C. ERP.D. 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. TPSM (task priority scheduling method)B. Dependency AnalysisC. TRSS (task and resource scheduling system)D. 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. the EPA's minimum pollution standardsB. ISO 14000C. RG3 RegulationsD. WTO environmental policy
9 KEY
FALSE
TRUE
FALSE
TRUE
TRUE
FALSE
TRUE
TRUE
TRUE
1. (p. 231) Currently, manufacturing accounts for only around 70% of U.S. GDP.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #9
Topic: Manufacturers and Service Organizations Become More Competitive
FALSE
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.
FALSE
The U.S. continues to be a world leader in innovation, including innovations in nanotechnology and biotechnology.
TRUE
U.S. businesses are combining services with state-of-the-art production techniques, in order to remain competitive.
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.
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.
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.
10. (p. 231) The U.S. is still manufacturing intensive. Only 25% of U.S. jobs come from the service sector.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-1Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #11Topic: 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-1Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #12Topic: Manufacturers and Service Organizations Become More Competitive
13. (p. 232) U.S. businesses are known for their creativity and their ability to implement change.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-1Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #13Topic: 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-1Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #14Topic: 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-1Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #15Topic: 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-1Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #16Topic: Manufacturers and Service Organizations Become More Competitive
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.
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.
FALSE
TRUE
TRUE
FALSE
TRUE
TRUE
FALSE
17. (p. 231) Although important, the Green Economy will do little to add value to the U.S. economy.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-1Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #17Topic: 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-1
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #19
Topic: From Production to Operations Management
20. (p. 233) Operations management converts resources into goods and services.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #23
Topic: From Production to Operations Management
24. (p. 233) Operations management involves inventory management, quality control, and production scheduling.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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.
TRUE
TRUE
TRUE
TRUE
FALSE
FALSE
TRUE
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 ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #32
Topic: Operations Management in the Service Sector
33. (p. 233-234)
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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-2Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #33Topic: Operations Management in the Service Sector
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.
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.
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.
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.
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.
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.
34. (p. 233) Manufacturing companies are concerned with production management, while service companies are concerned with operations management.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-2Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #34Topic: From Production to Operations Management
35. (p. 233-234)
An important strategy in operations management is using technology to anticipate customer needs. In the hotel industry, this is known as guest-recognition services.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-2Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #35Topic: 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-2
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-2
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-2
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-2
Level of Learning 3: Application of principlesNickels - Chapter 09 #39
Topic: Operations Management in the Service Sector
40. (p. 232-233)
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.
TRUE
FALSE
FALSE
FALSE
FALSE
TRUE
FALSE
TRUE
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-2
Level of Learning 3: Application of principlesNickels - Chapter 09 #40
Topic: From Production to Operations Management
41. (p. 234) When firms successfully produce products, they create form utility.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #41
Topic: Production Processes
42. (p. 234) Only firms in the manufacturing sector can create true form utility.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #44
Topic: Production Processes
45. (p. 234) Process manufacturing refers to combining components and raw materials to make a product.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #45
Topic: Production Processes
46. (p. 234) Process manufacturing physically or chemically alters materials to create finished goods.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #46
Topic: Production Processes
47. (p. 234) An assembly process involves physically or chemically manipulating raw materials to create a product.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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
FALSE
FALSE
TRUE
FALSE
TRUE
TRUE
TRUE
TRUE
FALSE
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #49
Topic: Production Processes
50. (p. 235) Contemporary manufacturers in the U.S. lack the flexibility to use intermittent production processes.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #51
Topic: Production Processes
52. (p. 234) The production process requires inputs, controls, and outputs.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #56
Topic: Computer-Aided Design and Manufacturing
57. (p. 236) CAD systems allow designers to work in three dimensions.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective Thinking
TRUE
TRUE
FALSE
TRUE
FALSE
TRUE
FALSE
TRUE
TRUE
Blooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #63
Topic: Computer-Aided Design and Manufacturing
64. (p. 237) One way to compete with cheap labor is to use robots.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: Knowledge
TRUE
TRUE
FALSE
FALSE
TRUE
TRUE
TRUE
FALSE
The purpose in lean manufacturing and flexible manufacturing is to produce products and services more efficiently and for less cost.
FALSE
Using half the floor space and half the labor are characteristic of lean manufacturing. Flexible manufacturing refers to the ability to designing
Learning Goal: 09-3Level of Learning 1: Knowledge of key terms
Nickels - Chapter 09 #67Topic: Lean Manufacturing
68. (p. 237) The higher productivity of U.S. plants makes it possible to pay higher wages.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #68
Topic: Lean Manufacturing
69. (p. 237) Mass customization is tailoring products to meet the needs of individual customers.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #70
Topic: Mass Customization
71. (p. 237) While mass customization works well for producers it is not used in the service sector.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #73
Topic: Mass Customization
74. (p. 237) A fast-changing plant needs a fast-moving employee base to achieve maximum productivity.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #75Topic: 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.
machines with interchangeable parts so that the same machine can perform multiple tasks and/or produce a variety of products.
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.
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.
TRUE
Service businesses use sophisticated software programs to tailor insurance plans, travel plans, nutrition programs, and healthcare plans to individual customers.
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.
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.
FALSE
Process manufacturing involves physically or chemically changing materials. An assembly process combines components to make a product.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #76Topic: Lean Manufacturing; Flexible Manufacturing
77. (p. 236) Improvements in technology have significantly increased the quality of products, as well as helped reduce costs.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #77Topic: 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #78Topic: 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #79Topic: 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #80Topic: 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #81Topic: 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #82Topic: 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.
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.
TRUE
Process manufacturing physically or chemically changes materials. This is what Cooldaze does when it makes dry ice.
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.
TRUE
A continuous process is used to produce large batches of a particular product in a long production run.
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.
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 ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #83Topic: 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #84Topic: 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - Chapter 09 #89
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.
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.
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.
TRUE
FALSE
FALSE
FALSE
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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #95Topic: Facility Location
96. (p. 239) When it comes to location decisions, labor costs are no longer an important consideration for most manufacturing firms.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #96
Topic: Operations Management Planning
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97. (p. 239) The Internet is a very popular place to locate your business today.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #97Topic: 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #99
Topic: Operations Management Planning
100. (p. 239) Some companies will locate their production facilities near their suppliers.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #105
Topic: Operations Management Planning
106. (p. 240) For many firms, operations management has become an interfirm process.
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AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #111
Topic: Facilities Layout
112. (p. 243) In an assembly line manufacturing layout workers do only a few tasks at a time.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #112
Topic: Facilities Layout
113. (p. 243) In a modular manufacturing layout teams of workers combine to produce more complex units.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #114
Topic: Facilities Layout
115. (p. 243) A process manufacturing layout is frequently used in operations that serve different customers' different needs.
AACSB: Reflective Thinking
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Blooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #118
Topic: MRP
119. (p. 242) One limitation of materials requirement planning (MRP) is that it is not a computer-based approach.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #119
Topic: MRP
120. (p. 242) Enterprise resource planning (ERP) is simpler and less sophisticated than manufacturing resource planning (MRP).
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: Knowledge
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Learning Goal: 09-4Level of Learning 1: Knowledge of key terms
Nickels - Chapter 09 #124Topic: 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #126
Topic: Purchasing
127. (p. 244) The purchasing function of operations management seldom uses the Internet to make purchasing decisions.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
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AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #135
Topic: Quality Control
136. (p. 244) Six sigma is a quality measure that allows only 3.4 defects per million opportunities.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #139
Topic: Quality Control
140. (p. 245) The Deming Cycle is designed to catch errors before they happen.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #140
Topic: Quality Control
141. (p. 245) The Deming Cycle approach to quality control consists of: Plan, Do, Check, Act.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective Thinking
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Blooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #142
Topic: Quality Control
143. (p. 245) If a company achieves Six Sigma quality standards, they automatically win the Malcolm Baldrige award.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #144
Topic: The Baldrige Awards
145. (p. 245) ISO is a world-wide, non-governmental federation that sets global measures of quality.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key terms
FALSE
Both ERP and MRP are involved with computer advances that have occurred in information technology that are used in production planning methods.
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.
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.
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.
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.
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.
FALSE
Nickels - Chapter 09 #151Topic: 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #152Topic: MRP and ERP
153. (p. 239-242)
Recent developments in information technology will discourage companies from allowing employees to telecommute.
AACSB: Reflective ThinkingBlooms: Analysis
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #153Topic: 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.
AACSB: Reflective ThinkingBlooms: Analysis
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #154Topic: Operations Management Planning
155. (p. 242) Retailing is one area where technology is unlikely to make a big difference in how services are provided.
AACSB: Reflective ThinkingBlooms: Analysis
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #155Topic: 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.
AACSB: Reflective ThinkingBlooms: Analysis
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #156Topic: 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.
AACSB: Reflective ThinkingBlooms: Analysis
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #157Topic: 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.
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.
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.
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.
TRUE
Quality of life includes weather and climate, crime rates, and recreational opportunities.
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.
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.
FALSE
AACSB: Reflective ThinkingBlooms: Analysis
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #158Topic: 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.
AACSB: Reflective ThinkingBlooms: Analysis
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #159Topic: Quality Control
160. (p. 239-242)
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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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.
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.
FALSE
MRP is a computer application that is used within a single company, not multiple firms.
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.
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.
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 beforethey occur.
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.
TRUE
To qualify for the Baldrige Award, firms must show exceptional quality in seven key areas: strategic planning, customer and market focus,
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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 just-in-time inventory system. Mypartz should benefit from this approach, since JIT systems greatly simplify the task of suppliers.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: Analysis
Learning Goal: 09-4Level of Learning 3: Application of principles
Nickels - Chapter 09 #168Topic: 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.
AACSB: Reflective ThinkingBlooms: Analysis
Learning Goal: 09-4Level of Learning 3: Application of principles
Nickels - Chapter 09 #169Topic: 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.
leadership, information and analysis, human resources focus, process management, and business results.
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.
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.
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.
FALSE
TRUE
FALSE
AACSB: Reflective ThinkingBlooms: Analysis
Learning Goal: 09-4Level of Learning 3: Application of principles
Nickels - Chapter 09 #170Topic: 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-5
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-5
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-5
Level of Learning 1: Knowledge of key termsNickels - 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
TRUE
FALSE
TRUE
TRUE
TRUE
FALSE
The critical path on a PERT chart identifies the sequence of events in a project that takes the longest time to complete.
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.
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
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-5
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-5
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-5
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-5
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-5
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-5
Level of Learning 1: Knowledge of key termsNickels - 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-5Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #183Topic: Control Procedures: PERT and GANTT Charts
184. (p. 247) The first step in the PERT method is to assign a cost to each activity.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-5Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #184Topic: 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.
of the time it will take to accomplish each activity.
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.
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.
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.
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.
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 ThinkingBlooms: Comprehension
Learning Goal: 09-5Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #185Topic: 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-5Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #186Topic: 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-5
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-5
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-5
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-5
Level of Learning 3: Application of principlesNickels - Chapter 09 #190
Topic: Control Procedures: PERT and GANTT Charts
191. (p. 230) U.S. companies that participate in the manufacturing sector:
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.
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.
According to many analysts the U.S. will have to innovate to be able to strengthen its manufacturing base.
A. depend on government imposed tariffs on foreign goods to remain competitive.B. are growing much more rapidly than firms in the service sector.C. have focused on innovative operations management techniques in order to regain their competitive edge.D. have become increasingly reliant on mass production techniques as they put more emphasis on keeping costs as low as possible.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - 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. grown much more rapidly than the manufacturing sector.B. become the low-wage sector of the U.S. economy.C. achieved extremely high productivity gains according to government reports.D. focused less on quality and more on reducing costs of production.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #192
Topic: Manufacturing and Services in Perspective
193. (p. 232) During the deep recession of 2008-2009,
A. the service industry was hardest hit.B. job loss was severe in the manufacturing and housing industries.C. education and healthcare were hardest hit.D. the U.S. saw productivity rise in manufacturing due to increased layoffs.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - 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. the Green Movement is determined as the only external circumstance that will bring the U.S. out of the recession.B. green products are selling well, but not green services.C. the Green Movement is producing upwards of $200 billion worth of products and services.D. wealthy people can still afford to buy things, and it is the wealthy that are interested in going green.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-1
Level of Learning 1: Knowledge of key termsNickels - 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. fade in importance as foreign manufacturers continue to gain control of important markets.B. continue to be an important issue in the near future.C. focus on government efforts to foster performance in a few key industries.D. give way to an intense effort to convert the U.S. to an entirely service-based economy.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-1Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #195Topic: 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. focussing on providing the lowest priced products.B. relying on advanced technology and the Internet to unite companies.C. maintaining a distance relationship with suppliers in an effort to guard trade secrets.D. increasing advertising budgets.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-1Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #196Topic: Manufacturers and Service Organizations Become More Competitive
197. (p. 232) To strengthen its manufacturing base in the future, U.S. will have to:
A. uncover lower wage workers in the U.S. to compete with China.B. continue to innovate.C. support students in high school and college interested in studying the arts.D. cut the amount of benefits offered to workers.
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.
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 ThinkingBlooms: Comprehension
Learning Goal: 09-1Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #197Topic: 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. the government's willingness to implement policies designed to protect U.S. firms from low-cost foreign competition.B. a decision by many U.S. manufacturers to drastically reduce costs by making more extensive use of mass production techniques.C. a number of significant changes in both the production techniques and management styles used by U.S. firms.D. a relaxation of government laws that has allowed manufacturing firms to merge more easily, thus achieving stronger market positions.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-1Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #198Topic: 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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-1
Level of Learning 3: Application of principlesNickels - 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. resources.B. goods.C. services.D. equities.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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. services, rather than goods.B. goods, rather than services.C. both goods and services.D. financial data.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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. Logistics managementB. Resource engineeringC. IntrapreneuringD. Operations management
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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. Resource recombinationB. Supply chain managementC. ProductionD. Purchasing
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.
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 ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #203
Topic: From Production to Operations Management
204. (p. 233) The U.S. economy is now dominated by the _________ sector.
A. farmB. serviceC. manufacturingD. trade
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #204
Topic: From Production to Operations Management
205. (p. 233) Operations management in the service sector is focused on creating:
A. good experiences for those who use the service.B. jobs for the local community.C. additional customer expectations.D. inexpensive ways to get things done.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #205
Topic: From Production to Operations Management
206. (p. 233) Experts in operations management for service industry type businesses stress:
A. using records from accounting to determine what business to go after.B. relying on one's individual operation as opposed to developing partnerships.C. training employees on quality management.D. training employees to always adhere to only one way of doing things.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #206
Topic: From Production to Operations Management
207. (p. 233) Operations management is the __________ phase of management.
A. planningB. implementationC. controlD. building
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-2
Level of Learning 1: Knowledge of key termsNickels - 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. the U.S. economy has moved toward a more socialist approach with government controlling a greater share of the production process.B. a much larger share of total output is being produced by nonprofit organizations.C. the United States is now a service economy.D. the United States now exports more than it imports.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-2Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #208Topic: 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. have limited job opportunities because operations management positions are only available in the slowly growing manufacturing sector.B. acquire skills and knowledge that are valuable to firms in both the manufacturing and service sectors.C. have plenty of job offers, but they will mainly be in low wage positions in the service sector.D. find plenty of employment opportunities in the government and education, but not very many in the private sector.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-2Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #209Topic: From Production to Operations Management
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.
The text discussion of operations management in the hotel industry shows how service companies succeed by providing a good experience for their customers.
Delighting customers by anticipating their needs has become the quality standard for most service businesses.
Operations management is the implementation phase of management.
Operations management is the process of converting resources, including human resources into valuable products and services.
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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-2Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #210Topic: 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. is all about providing the service at the lowest cost.B. should focus on providing customers with a good experience.C. has less flexibility than operations management in the manufacturing sector, because services are not technology driven.D. has done a good job of increasing output, but a poor job of improving quality.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-2Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #211Topic: Operations Management in the Service Sector
212. (p. 234) For most service businesses the quality standard has become:
A. providing prompt and predictable service.B. providing a competitive level of service at the lowest cost.C. delighting customers by anticipating their needs.D. less important than it is for manufacturing businesses.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-2Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #212Topic: 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. Human resources managementB. The management staffC. Operations managementD. Production management
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-2
Level of Learning 3: Application of principlesNickels - 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. operations managementB. promotions managementC. distributive managementD. marketing management
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-2
Level of Learning 3: Application of principlesNickels - Chapter 09 #214
Topic: From Production to Operations Management
215. (p. 234) Production creates:
A. time utility.B. possession utility.C. form utility.D. marginal utility.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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. ManufacturingB. MarginalC. ConsumptionD. Form
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #216
Topic: Production Processes
217. (p. 235) In ____________, materials are physically or chemically changed to produce a product.
A. process manufacturingB. assembly processesC. utilitarian productionD. diffusive manufacturing
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #217
Topic: Production Processes
218. (p. 235) A(n) __________ puts together components to make a product.
A. modular processB. compression processC. assembly processD. econometric process
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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. assembly process.B. continuous process.C. extended process.D. unrestricted process.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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. just-in-time process.B. lean manufacturing system.C. analytic process.D. intermittent process.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #220
Topic: Production Processes
221. (p. 235) Most new manufacturing facilities use:
A. continuous processes.B. intermittent processes.C. traditional processes.D. synthetic processes.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 09 #221Topic: Production Processes
222. (p. 235) In the past, the idea behind mass production was to:
A. produce goods of the highest possible quality.B. give producers the maximum flexibility to respond to customer preferences.C. make large quantities of a limited variety of products at very low cost.D. give workers more control over their work environment.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #222
Topic: Computer-Aided Design and Manufacturing
223. (p. 236) ____________ uses computers to help design products.
A. PERTB. QPCC. DPAD. CAD
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #223
Topic: Computer-Aided Design and Manufacturing
224. (p. 236) __________ involves computers directly in the production process.
A. CADB. CAMC. AMDAD. AMCAP
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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. small markets; a decrease in costB. very large markets; no increase in costC. small markets; very little increase in costD. international markets; products that are complex
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #225
Topic: Computer-Aided Design and Manufacturing
226. (p. 236) CAD has __________ productivity in many firms.
A. unfortunately had no effect onB. actually decreasedC. increasedD. splintered
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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. a flexible system.B. a computer-based feedback control system.C. computer-integrated manufacturing.D. heuristic manufacturing integration.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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. systems engineeringB. microdesignC. modular constructionD. flexible manufacturing
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key terms
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.
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.
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.
Nickels - Chapter 09 #228Topic: Flexible Manufacturing
229. (p. 237) In manufacturing, one way to compete with cheap labor is to:
A. use robots.B. hire experienced people.C. make the production line longer.D. increase inputs to the system.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #229
Topic: Flexible Manufacturing
230. (p. 237) The goal of lean manufacturing is to:
A. keep inventories of finished goods as high as possible.B. produce goods and services with less of everything that goes into the process.C. produce a very limited variety of goods.D. become more self sufficient by producing major components rather than buying them.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #230
Topic: Lean Manufacturing
231. (p. 237) ______________ means tailoring products to meet the needs of a large number of individual customers.
A. Mass customizationB. Mass productionC. Competing in timeD. Feedback response production
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-3
Level of Learning 1: Knowledge of key termsNickels - 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. Companies tended to produce a large quantity of the same product at a very low costB. Companies required their suppliers to only deliver the amount of good needed for a short-term production runC. Companies changed their equipment too often, which created lost time on the jobD. Companies refused to train employees in technology and on machinery
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #232Topic: Production Processes
233. (p. 236) Which of the following statements about the impact of CAD/CAM on manufacturing is most accurate? CAD/CAM:
A. is most useful to firms producing durable goods such as automobiles.B. has replaced ERP as the most sophisticated resource planning technique.C. allows firms to save money by replacing skilled labor with computers to perform all of the high-skill tasks.D. has made it possible to produce custom-designed products with little increase in costs.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #233Topic: Computer-Aided Design and Manufacturing
234. (p. 236) A big advantage of computer integrated manufacturing software is that it:
A. makes it possible to custom-design products to meet the needs of small markets with very little increase in cost.B. replaces "dumb" robots with "smart" computers.C. allows personal computers to communicate directly with the firm's server.D. controls all of the actions of the assembly line from a central location.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #234Topic: Computer-Aided Design and Manufacturing
Flexible manufacturing uses machines designed to perform multiple tasks so that they can produce a variety of products.
A company becomes lean by continuously increasing its capacity to produce high-quality goods while decreasing its need for resources.
A company becomes lean by continuously increasing its capacity to produce high-quality goods while decreasing its need for resources.
Lean manufacturing refers to efforts to produce goods by using less of everything, including materials, labor, and production.
Computer Aided Design permits customization due to the ease of changing a design to satisfy individual tastes.
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.
235. (p. 237) A basic characteristic of flexible manufacturing is that it:
A. relies heavily on labor, since humans are more adaptable than machines.B. uses machines designed to perform multiple tasks so they can be used to produce a variety of products.C. achieves its flexibility at the cost of much slower rates of production than mass production techniques.D. is only possible when using mass production processes.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #235Topic: Flexible Manufacturing
236. (p. 237) A company becomes lean by _________ its capacity to produce high-quality goods, while ___________ its need for resources.
A. investigating; planningB. increasing; decreasingC. decreasing; increasingD. planning; investigating
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #236Topic: Flexible Manufacturing
237. (p. 237) Lean manufacturing ___________ productivity.
A. increasesB. decreasesC. has no effect onD. removes the need for added
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #237Topic: Lean Manufacturing
238. (p. 237) 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #238Topic: Lean Manufacturing
239. (p. 237) A benefit of CAD (Computer Aided Design) and CAM (Computer Assisted Manufacturing) is:
A. it basically eliminates the need for human intervention.B. it saves on materials costs.C. it permits customization without a significant increase in price.D. it produces a higher quality product which allows the manufacturer to charge more.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-3Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #239Topic: 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. form utility.B. place utility.C. use facility.D. intangible productivity.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - Chapter 09 #240
Custom made items produced in small quantities would require an intermittent process rather than a continuous process.
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.
Mass customization means tailoring products and services to meet and exceed the needs of a large number of individual customers.
Form utility is the value added by the creation of finished goods and services.
A continuous production process is characterized by long production runs over a period of time.
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. analytic system.B. just-in-time system.C. intermittent process.D. continuous process.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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. lean manufacturing.B. flexible production.C. mass customization.D. continuous production.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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 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. excellent human resources managementB. the InternetC. mass customizationD. lean manufacturing
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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. consumer surplus.B. the analytic function.C. marginal utility.D. form utility.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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. intermittentB. assemblyC. continuousD. systematic
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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:
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.
The assembly process puts together components to create a finished product.
Flexible manufacturing is the design of machines to do multiple tasks so that they can produce a variety of products.
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.
Lean manufacturing is the production of goods using less of everything compared to mass production.
A. an analytic production system.B. process manufacturing.C. an assembly process.D. a symbiotic process.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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. an assembly process.B. process manufacturing.C. synthetic production.D. continuous production.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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. micro-engineering.B. flexible manufacturing.C. continuous production.D. multiple output processing.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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 itB. He wants the product to achieve the quality level expected by the customerC. 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 customerD. He wants to work within the costs budgeted for this project
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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. mass production.B. marginal cost management.C. lean manufacturing.D. the maximum production method.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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.
Mass customization means tailoring products and services to meet the needs of individual customers.
Mass customization means tailoring products and services to meet the needs of individual customers.
CAD/CAM has made it possible to custom design products to meet the tastes of small markets with very little increase in cost.
Computer integrated manufacturing uses sophisticated software to unite CAD with CAM.
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.
B. analytic production.C. mass customization.D. individualized production.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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. flexible manufacturing for its customers.B. lean services because it only needs to keep a certain amount of cash in each machine.C. technology similar to CAD.D. faster service and mass customization.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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. mass production.B. just-in-time production systems.C. the PERT method.D. CAD/CAM.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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. linear programming software.B. holistic internalization of operations.C. computer integrated manufacturing.D. complex systems integration.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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. CAD.B. CAM.C. CIM.D. SCM.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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 locationB. Facility layoutC. FRP
D. Geographic requirements planning
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. Availability of expensive laborB. Higher quotas on competing goodsC. Access to various modes of transportationD. Availability of a retired workforce
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #257
Topic: Operations Management Planning
258. (p. 238) Operations management planning does not include decisions about:
A. where to locate a business facility and how it will be configured.B. materials requirement planning.C. quality control.D. the acquisition of financing for projects.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. reducing time to marketB. using ERP techniquesC. replacing labor with machineryD. switching to a more service-oriented product mix
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #259
Topic: Operations Management Planning
260. (p. 239) Contemporary producers and their suppliers,
A. locate in areas where they can share the same labor.B. know that it is not necessary to locate close to international customers due to technology such as the Internet.C. locate close together to decrease the cost of distribution.D. have advanced beyond ERP to more sophisticated systems.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. bonuses equal to 1 ½ times their regular monthly payB. 2 weeks notice.C. a golden handshakeD. 60 days notice
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. outsourcingB. rivetingC. outboundingD. telecommuting
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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 operationB. closed operation
C. interfirm processD. conjoined process
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #263
Topic: Taking Operations Management to the Internet
264. (p. 241) __________ is the physical arrangement of resources in the production process.
A. Facility locationB. Facility layoutC. ERPD. RRL
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #264
Topic: Facilities Layout
265. (p. 241-243; Figure 9.2)
Moduar facilities layouts consist of:
A. teams of workers who work together on a complex assembly.B. lines of workers who do a small series of tasks and then pass along the product through the line to the next worker.C. virtual companies and their supplier relationships.D. workers who have a model in front of them that they try to replicate several times.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. assembly line layoutB. continuous production processC. fixed-position layoutD. process manufacturing technique
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. modularB. spoke and wheelC. networkD. cluster
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. product layoutB. process layoutC. modular layoutD. fixed-position layout
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #268
Topic: Facilities Layout
269. (p. 243) In manufacturing, a __________ is frequently used in operations that serve different customers' different needs.
A. product layoutB. process layoutC. modular layoutD. fixed-position layout
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #269
Topic: Facilities Layout
270. (p. 243) An example of a __________ is building a new home on a lot.
A. product layoutB. process layoutC. modular layoutD. fixed-position layout
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. Enterprise Resource PlanningB. Materials Requirement PlanningC. Virtual Accuracy ToolD. Computer Based Materials Model
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #271
Topic: Materials Requirement Planning
272. (p. 242) MRP is a technique that helps managers:
A. develop a reliable sales forecast.B. schedule the sequence of tasks workers must perform in order to complete a project.C. determine how many workers are needed to staff various departments.D. make sure that the right parts and materials are available at the right time.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #272
Topic: Materials Requirement Planning
273. (p. 242) MRP is the acronym for:
A. minimum resource payments.B. maximized revenue potential.C. managed resource priorities.D. materials requirement planning.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #273
Topic: Materials Requirement Planning
274. (p. 242) ERP is the acronym for:
A. Educated Rights Planning.B. Extensive Research Planning.C. Enterprise Resource Planning.D. Emphatic Requirements Planning.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. Materials requirement planning (MRP)B. PERT analysisC. Manufacturing resource planning (MRP II)D. Enterprise resource planning (ERP)
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. MarketingB. Collective bargainingC. BarteringD. Purchasing
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. PERTB. The InternetC. CAD/CAMD. QFD
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #277
Topic: Materials Requirement Planning
278. (p. 244) Today manufacturers are relying more heavily on:
A. one or two suppliers because firms share so much information.B. the bidding process to obtain the lowest price.C. many suppliers to keep its leverage.D. developing an MRP system for purchasing.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. ABCB. first-in, first-outC. just-in-time (JIT)D. maximum
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. ABC inventory management.B. first-in, last-out inventory control.C. just-in-time inventory control.D. maximum inventory management.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. manufacturing controlB. allocative efficiencyC. CAD/CAMD. quality
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #281
Topic: Just-In-Time Inventory Control
282. (p. 244) In today's quality control programs, emphasis is placed on:
A. producing goods at the lowest possible cost.B. keeping labor costs as low as possible.C. achieving customer satisfaction.D. detecting errors at the end of the production process before the goods are shipped to customers.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #282
Topic: Quality Control
283. (p. 244) The six sigma approach to quality control:
A. relies on a special team of experts to examine every unit of output at the end of the production process.B. detects potential problems early to prevent their occurrence.C. views quality control as a function of the marketing department.D. allows only 600 defective units per one thousand units produced.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #283
Topic: Quality Control
Operations management includes such responsibilities as facilities location, facilities layout, and 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. CAD/CAMB. EconometricsC. Analysis of varianceD. Statistical process control
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #284
Topic: Quality Control
285. (p. 244) The Deming Cycle is:
A. a checklist that enables managers to evaluate employee performance more systematically.B. a systematic method of evaluating potential facility locations.C. a process for finding potential quality errors before they occur.D. a process for using identical production steps in the creation of different types of products.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - 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. Association of Operations ManagersB. Excellence in Production CommitteeC. National Association of ManufacturersD. Malcolm Baldrige
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #286
Topic: Quality Control
287. (p. 244) ___________ are a set of international standards for quality management and quality assurance.
A. EPA 2000B. ISO 14000C. ISO 9000D. TQM 2003/2004
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #287
Topic: Quality Control
288. (p. 244) ____________ standards are concerned with the best practices for managing an organization's environmental impacts.
A. EPA 2000B. ISO 14000C. Eurogreen 700D. Enviro 2001
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-4
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #288
Topic: Quality Control
289. (p. 240) Which of the following is an important part of operations management?
A. Determining the best means of financing the firm's operationsB. Developing the best advertising strategy to promote a firm's productsC. Deciding whether to pay a dividend to the firm's stockholdersD. Choosing the best location for a firm's facilities
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #289Topic: 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
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.
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.
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.
For manufacturing plants, facility layout has become critical because potential cost savings are enormous.
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.
Interfirm means that several firms will work together via the Internet and through the use of other sophisticated technology to produce
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
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #290Topic: Facility Location
291. (p. 240) Which of the following statements about facility location is most accurate?
A. Very few firms are still influenced by labor costs when making decisions about where to locateB. Recent changes in information technology have led firms to favor locations near major urban areasC. Manufacturers often seek to reduce time-to-market by locating facilities in areas with access to key modes of transportationD. 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
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #291Topic: 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 aidB. try to avoid competition with other areas, because such competition usually backfires and creates ill-willC. no longer pursue new businesses, because they have found that attempts to attract businesses are usually too expensive to justify the
resultsD. work primarily through the federal government and the Small Business Administration to obtain financial assistance for firms seeking to
locate in their area
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #292Topic: Facility Location
293. (p. 241) Which of the following statements is most accurate?
A. Most manufacturing firms are turning to an assembly line layout to produce output as efficiently as possibleB. For service firms, the main objective in facility layout usually is to centralize the control of operationsC. Facility layout is important for manufacturing plants because facilities layout decisions can have a huge impact on the firm's costsD. In a modular layout, workers are assigned a specific station along an assembly line and specialize in performing a specific task
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #293Topic: Facilities Layout
294. (p. 240) New developments in information technology have:
A. had little effect on business location decisions.B. given firms even greater flexibility in their location decisions.C. caused a movement of firms back to urban areas where access to this technology is greatest.D. reduced the impact government policies have on location decisions.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #294Topic: Facility Location
295. (p. 240) Contemporary operations management planning is an interfirm process. This means:
A. the process must integrate all of the functional units of a firm's operation, including production, marketing, finance, and logistics.B. the process is a confidential plan that is not shared with suppliers or customers. It stays within the firm.C. it is a process where several firms work closely together to produce goods and services, and anticipate a changing environment.D. it is a process that seeks stability by adhering to top down management.
products and services that customers need and want. The interfirm process recognizes that today's successful businesses must operate in dynamic environments.
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.
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.
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.
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.
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: EthicsBlooms: Comprehension
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #295Topic: 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.
AACSB: EthicsBlooms: Comprehension
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #296Topic: Making Ethical Decisions box
297. (p. 242) Enterprise resource planning (ERP) goes beyond the capabilities of MRP because it:
A. gives much more precise cost estimates.B. finds the critical path and compute its length.C. monitors the computerized functions of all the divisions and subsidiaries of the firm in a single software program.D. handles research data about more than one product at the same time.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #297Topic: Materials Requirement Planning
298. (p. 244) A just-in-time inventory system usually reduces costs for:
A. both the producer and its suppliers.B. suppliers, but not the producer.C. the producer, but not its suppliers.D. neither the supplier nor the producer, though it does lead to more flexibility for both.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #298Topic: Just-In-Time Inventory Control
299. (p. 244) In a just-in-time inventory system, suppliers:
A. deliver materials and parts in large quantities only a few times a year.B. enjoy much lower delivery costs.C. have a great deal of flexibility in determining when to make deliveries.D. become more like a department in the producing firm rather than a separate business.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #299Topic: 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.
AACSB: Reflective ThinkingBlooms: Comprehension
ISO 9000 refers to quality management and assurance standards and ISO 14000 refers to standards for managing a firm's environmental impact.
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.
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.
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.
The European Union is demanding that firms doing business within their borders meet the ISO 9000 standards.
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #300Topic: Quality Control
301. (p. 245) A firm that is certified as meeting both ISO 9000 and ISO 14000 standards has demonstrated:
A. world-class management of both quality and environmental standards.B. sound financial and marketing practices.C. ethical treatment of both customers and employees.D. that its recruitment and training programs for employees protect and promote basic human rights.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-4Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #301Topic: Quality Control
302. (p. 238-239)
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. Access to good roads and interstate systemB. Tax benefitsC. Skilled laborD. Time to market
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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 basisB. The business strategically moves manufacturing facilities to low cost areas and allocates more funds toward the sales professionals to meet
face to face with managementC. The operation is maintained with an advanced MRP systemD. The operation is managed with teleconferencing information technology, and telecommuting
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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. quality of life.B. access to cheap land.C. reducing time to market.D. access to low cost labor.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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. become certified in ISO 9000 standards.B. convert its financial assets into Euros.C. avoid reliance on the Deming cycle.D. reduce the wages of its production workers.
AACSB: Reflective Thinking
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.
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.
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.
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.
Blooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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. consolidated process layout.B. continuous flow layout.C. modular layout.D. assembly team layout.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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. enterprise resource planning.B. manufacturing resource planning.C. program evaluation and review techniques.D. Gantt Charts.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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. realize significant freedom in scheduling deliveries.B. likely increase its effort and likely experience higher transportation costs.C. place less emphasis on quality and greater emphasis on quantity.D. need to deliver large quantities at regularly scheduled intervals.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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. an acceptable level of quality standards of the products and services it provides.B. a level of quality in its products and services that exceeds its competitors.C. a world-class management system in information technology and lean manufacturing.D. best practices for managing its impact on the environment.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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. PERTB. ECONC. LIFOD. GANTT
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-5
Level of Learning 1: Knowledge of key termsNickels - 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:
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.
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.
The critical path is the sequence of tasks in a project that takes the longest to complete.
A. optimal path.B. maximum path.C. straight path.D. critical path.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-5
Level of Learning 1: Knowledge of key termsNickels - Chapter 09 #311
Topic: Control Procedures: PERT and GANTT Charts
312. (p. 247) The purpose of a PERT network is:
A. to monitor the quality of a product for compliance with ISO 9000 standards.B. to monitor the progress of a multi-step project during its development.C. to connect all firms that are ISO 9000 certified so that they can partner with each other on future projects.D. to be used as a decision making tool when evaluating the best facility locations and layouts.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-5
Level of Learning 1: Knowledge of key termsNickels - 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. Grid chart.B. Gantt chart.C. Priority chart.D. Stem chart.
AACSB: Reflective ThinkingBlooms: KnowledgeLearning Goal: 09-5
Level of Learning 1: Knowledge of key termsNickels - 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. TQMB. CAD/CAMC. ERPD. PERT
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-5Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #314Topic: Control Procedures: PERT and GANTT Charts
315. (p. 247) The first step in the development of a PERT chart is:
A. assigning an estimated cost to each task.B. analyzing the tasks and determining the sequence in which they must be performed.C. estimating the time needed to complete each task.D. identifying the probabilities that each step in the project can be successfully completed without exceeding the estimated cost.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-5Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #315Topic: Control Procedures: PERT and GANTT Charts
316. (p. 247) The purpose of determining the critical path on a PERT network is to:
A. identify the sequence of tasks that takes the longest to complete.B. estimate a payment schedule so that a budget can be established.C. find the sequence of events that is the most expensive to complete.D. establish a delivery schedule for a just-in-time inventory control program.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-5Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #316Topic: Control Procedures: PERT and GANTT Charts
317. (p. 248) Both PERT diagrams and Gantt charts are useful to managers concerned with:
A. calculating the rate of profit earned in a particular market.B. making sure that projects are completed on time.C. estimating the cost of completing a project.D. 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.
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.
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.
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.
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 ThinkingBlooms: Comprehension
Learning Goal: 09-5Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #317Topic: 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. most costly to complete.B. on the priority bar of the PERT chart.C. near the end of the PERT network.D. on the critical path of the PERT network.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-5
Level of Learning 3: Application of principlesNickels - 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. the same resources used to complete "A" are also used to complete "B".B. "A" and "B" can be completed at the same time.C. "A" takes longer to complete than "B".D. "A" must be completed before "B" can begin.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-5
Level of Learning 3: Application of principlesNickels - 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. ImmediatelyB. 1 weekC. 2 weeksD. 1 month
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-5
Level of Learning 3: Application of principlesNickels - 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. Marketing strategy's determination of the price pointB. Manufacturing's determination of the costsC. Purchasing obtaining the paperD. The art department taking a month-long vacation
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-5
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.
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.
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.
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.
Level of Learning 3: Application of principlesNickels - 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".
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-5Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 09 #322Topic: 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.
AACSB: Reflective ThinkingBlooms: Analysis
Learning Goal: 09-5Level of Learning 3: Application of principles
Nickels - Chapter 09 #323Topic: 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. CAD/CAM diagram.B. input-output graph.C. Gantt chart.D. Targeted Completion Date Graph.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-5
Level of Learning 3: Application of principlesNickels - Chapter 09 #324
Topic: Control Procedures: PERT and GANTT Charts
325. (p. 238-239)
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.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - Chapter 09 #325
Topic: Facility Location
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.
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.
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.
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.
326. (p. 237) How are MRP and ERP similar? How do they differ?
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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.
AACSB: Reflective ThinkingBlooms: Comprehension
Learning Goal: 09-4Level of Learning 3: Application of principles
Nickels - Chapter 09 #327Topic: 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.
AACSB: Reflective ThinkingBlooms: Analysis
Learning Goal: 09-5Level of Learning 3: Application of principles
Nickels - Chapter 09 #328Topic: Control Procedures: PERT and GANTT Charts
329. (p. 246) What are the ISO 9000 and ISO 14000 standards? Why are they important?
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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
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.
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.
Computer-integrated manufacturing unites CAD (computer-aided design) with CAM (computer-aided manufacturing).
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.
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. gain ISO 9000 certification.B. make sure his production workers all belong to an international union.C. put more emphasis on low cost rather than product quality.D. buy at least 50 percent of its supplies from countries belonging to the European Union.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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. priority inventory scheduling system.B. first in, first out inventory processing system.C. just-in-time inventory control system.D. ABC inventory system.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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. modular manufacturing system.B. computer-integrated manufacturing system.C. E-hub that relies on network software to control the production process.D. first-in, first-out production system.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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. Materials requirement planning (MRP).B. Program evaluation and review technique (PERT).C. Minimum daily requirements scheduling (MDRS).D. Sales-based requirements forecasting (SBRF).
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-3
Level of Learning 3: Application of principlesNickels - 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.
Quality control concepts such as Six Sigma tend to focus on detecting potential problems to prevent their occurrence.
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.
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.
C. ERP.D. PERT analysis.
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - 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. TPSM (task priority scheduling method)B. Dependency AnalysisC. TRSS (task and resource scheduling system)D. PERT (program evaluation and review technique)
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-5
Level of Learning 3: Application of principlesNickels - 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. the EPA's minimum pollution standardsB. ISO 14000C. RG3 RegulationsD. WTO environmental policy
AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 09-4
Level of Learning 3: Application of principlesNickels - Chapter 09 #336
Topic: Facility Location in the Future
9 SummaryCategory # of Questions
AACSB: Ethics 2AACSB: Reflective Thinking 334Blooms: Analysis 12Blooms: Application 71Blooms: Comprehension 61Blooms: Knowledge 192Learning Goal: 09-1 27Learning Goal: 09-2 37Learning Goal: 09-3 96Learning Goal: 09-4 142Learning Goal: 09-5 34Level of Learning 1: Knowledge of key terms 192Level of Learning 2: Understanding of concepts and principles 67Level of Learning 3: Application of principles 77Nickels - Chapter 09 337Topic: Baldrige Awards 1Topic: Computer-Aided Design and Manufacturing 30Topic: Control Procedures: PERT and GANTT Charts 32Topic: Control Procedures: PERT and GANTT Charts; Figure 9.3 1Topic: ERP 1Topic: Facilities Layout 15Topic: Facility Location 9Topic: Facility Location for Manufacturers 1Topic: Facility Location in the Future 7Topic: Figure 9.3 1Topic: Flexible Manufacturing 6Topic: Flexible Manufacturing; Lean Manufacturing 1Topic: Flexible Manufacturing; Mass Customization 1Topic: From Production to Operations Management 25Topic: ISO 9000 and ISO 14000 Standards 10Topic: Just-In-Time Inventory Control 10Topic: Lean Manufacturing 10Topic: Lean Manufacturing; Flexible Manufacturing 1Topic: Making Ethical Decisions box 3Topic: Manufacturers and Service Organizations Become More Competitive 16Topic: Manufacturing and Services in Perspective 8Topic: Mass Customization 15Topic: Materials Requirement Planning 11Topic: MRP 3Topic: MRP and ERP 1Topic: Operations Management in the Service Sector 12Topic: Operations Management Planning 28Topic: Operations Management Planning; Figure 9.2 1Topic: Production Processes 30Topic: Production Processes; Figure 9.1 1Topic: Purchasing 6Topic: Quality Control 28Topic: Taking Operations Management to the Internet 5Topic: The Baldrige Awards 3Topic: Thinking Green box 3
