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Exam 9: Production and Operations Management

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Question 1

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

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B) False

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Question 2

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When firms successfully produce products,they create form utility.

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

__________ is the physical arrangement of resources in the production process.

In a PERT network,the sequence of tasks that takes the longest to complete is called the:

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

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.

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

For the past two years,Mountain High Bike Company used suppliers from India,Japan,and Malaysia to provide them with precision parts for its custom bikes.There was only one problem: The quality of the parts from all locations lacked precision and consistency.Skilled technicians complained that as many as three out of five parts had to be discarded due to imperfections.The quality control manager convinced the owners to partner with a slightly higher priced company in Omaha,Nebraska,who utilized _________________ to test samples of product components for deviations in quality and precision,prior to sending them to Mountain High Bike Company.The bike company realized savings in both time and money.

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.

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

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

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.

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:

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

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

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.

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.

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.

Operations management converts resources into goods and services.