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Exam 9: Production and Operations Management

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Question 101

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

A) True
B) False

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Question 102

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

A) True
B) False

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Question 103

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

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. Millwell's new layout is an example of the fixed-position layout.

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.

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.

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

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.

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.

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

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.

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

__________ is the process of selecting a geographic location for a company's operations.

Operations management converts resources into goods and services.

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.

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

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

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

____________ standards are concerned with the best practices for managing an organization's environmental impacts.

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