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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.

A) True
B) False

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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.

A) True
B) False

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Online companies have helped businesses find the best supplies at the best prices.

A) True
B) False

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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.

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

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A

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

A) True
B) False

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

A) True
B) False

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Spokes Bikes has 18 different bicycle models that can be created in over 2 million combinations. Each combination is designed to fit the needs of a specific customer. Therefore, the customer chooses the model, size, color, and design they want. An analysis of this company's operation would indicate that it uses


A) lean manufacturing.
B) flexible production.
C) mass customization.
D) continuous production.

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

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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.

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

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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 Managers
B) Excellence in Production Committee
C) National Association of Manufacturers
D) Malcolm Baldrige

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

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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) A) and B)
F) A) and C)

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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.

A) True
B) False

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False

The production process requires inputs, controls, and outputs.

A) True
B) False

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

A) True
B) False

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As you're loading your groceries on the conveyor belt, the clerk asks you if you found everything you needed. As she continues to scan your purchases, coupons for future purchases print near the cashier's terminal. In reviewing the key concepts from this chapter, you would consider this action to be the store's management of its labor.

A) True
B) False

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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.

A) True
B) False

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Operations management converts resources into goods and services.

A) True
B) False

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Bolt's Electric is in the process of trying to achieve ISO 14001 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.

A) True
B) False

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An example of a(n) ________ is building a new home on a lot.


A) product layout
B) process layout
C) modular layout
D) fixed-position layout

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

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D

A bar graph that shows what projects or tasks are in process and how much of each is completed is called a


A) grid chart.
B) Gantt chart.
C) priority chart.
D) stem chart.

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

Correct Answer

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One way to compete with cheap labor is to use robots.

A) True
B) False

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