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

Correct Answer

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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.

A) True
B) False

Correct Answer

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In __________, machines are designed to do multiple tasks so that they can produce a variety of products.


A) systems engineering
B) microdesign
C) modular construction
D) flexible manufacturing

E) None of the above
F) All of the above

Correct Answer

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

A) True
B) False

Correct Answer

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Which of the following is an important part of operations management?


A) Determining the best means of financing the firm's operations
B) Developing the best advertising strategy to promote a firm's products
C) Deciding whether to pay a dividend to the firm's stockholders
D) Choosing the best location for a firm's facilities

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

Correct Answer

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Review 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." Review 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.

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

Correct Answer

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Some companies will locate their production facilities near their suppliers.

A) True
B) False

Correct Answer

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

A) True
B) False

Correct Answer

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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 aid.
B) try to avoid competition with other areas, because such competition usually backfires and creates ill will.
C) no longer pursue new businesses, because they have found that attempts to attract businesses are usually too expensive to justify the results.
D) work primarily through the federal government and the Small Business Administration to obtain financial assistance for firms seeking to locate in their area.

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

Correct Answer

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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.

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

Correct Answer

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One of the reasons mass production techniques lost favor is that, despite their ability to keep costs relatively low, mass production lacks flexibility.

A) True
B) False

Correct Answer

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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.

A) True
B) False

Correct Answer

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When firms successfully produce products, they create form utility.

A) True
B) False

Correct Answer

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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.

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

Correct Answer

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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.

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

Correct Answer

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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

Correct Answer

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Telecommuting has diminished in popularity as a strategy for linking employees with work.

A) True
B) False

Correct Answer

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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.

A) True
B) False

Correct Answer

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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.

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

Correct Answer

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ERP software enables multiple firms to manage all of their operations on the basis of a single, integrated set of corporate data.

A) True
B) False

Correct Answer

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