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

A) True
B) False

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

A) True
B) False

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

A) True
B) False

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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.

E) None of the above
F) A) and C)

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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.

A) True
B) False

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

A) True
B) False

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


A) Marketing strategy's determination of the price point
B) Manufacturing's determination of the costs
C) Purchasing obtaining the paper
D) The art department taking a month-long vacation

E) B) and C)
F) A) and D)

Correct Answer

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

A) True
B) False

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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.

E) A) and D)
F) B) and C)

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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.

E) A) and B)
F) All of the above

Correct Answer

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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.

A) True
B) False

Correct Answer

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

A) True
B) False

Correct Answer

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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.

A) True
B) False

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

A) True
B) False

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

A) True
B) False

Correct Answer

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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.

A) True
B) False

Correct Answer

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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.

E) All of the above
F) B) and C)

Correct Answer

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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.

E) C) and D)
F) B) and C)

Correct Answer

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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.

A) True
B) False

Correct Answer

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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.

A) True
B) False

Correct Answer

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