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Firms that specialize in accounting,finance,and management consulting are all part of the service sector.

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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In a modular manufacturing layout teams of workers combine to produce more complex units.

A) True
B) False

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Sarah works for an architectural firm.The partners in the firm have always drawn the plans for projects by hand.While Sarah learned how to draw by hand in college,she also became skilled on computer programs that permitted her to create designs in three dimensions.She plans to demonstrate the effectiveness of such programs to the firm's partners.The computer program she will recommend to the partners is:


A) CAD.
B) CAM.
C) CIM.
D) SCM.

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

Correct Answer

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Cooltreet,Inc. ,combines sugar,cream,eggs,and flavorings,then churns and cools the resulting mixture to a very low temperature until it freezes,creating ice cream.The method Cooltreet uses is an example of:


A) an analytic production system.
B) a process manufacturing.
C) an assembly process.
D) a symbiotic process.

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

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Courtney was planning a new product launch.She knew that the art department was ready to work on the promotional pieces now,but they couldn't start until the strategy group established the price point and the purchasing group obtained the paper needed to make the promotional piece.Establishing price points would take about a week and was dependent on manufacturing getting the costs to the 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,when will the art department be able to begin work on the promotional pieces?


A) Immediately
B) 1 week
C) 2 weeks
D) 1 month

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

Correct Answer

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Which of the following statements describes past processes that existed in manufacturing that negatively affected a firm's competitive advantage?


A) Companies tended to produce a large quantity of the same product at a very low cost.
B) Companies required their suppliers to only deliver the amount of good needed for a short-term production run.
C) Companies changed their equipment too often,which created lost time on the job.
D) Companies refused to train employees in technology and on machinery.

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

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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.


A) ABC
B) first-in,first-out
C) just-in-time (JIT)
D) maximum

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

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Justin Tyme is a manager at Elastic Plastic,Inc.His duties include production scheduling and keeping tabs on the company's inventory.These activities suggest that Justin is involved in promotions management.

A) True
B) False

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A key element of the statistical quality control (SQC)process is the reliance on quality control experts to inspect at the end of the production line to make sure that no defective products are shipped to final customers.

A) True
B) False

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Enterprise resource planning (ERP)is simpler and less sophisticated than manufacturing resource planning (MRP).

A) True
B) False

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Firms that satisfy the ISO 9000 and ISO 14000 standards have demonstrated a world-class management system in both quality and environmental standards.

A) True
B) False

Correct Answer

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Operations management is a specialized area in management that converts resources into:


A) services,rather than goods.
B) goods,rather than services.
C) both goods and services.
D) financial data.

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

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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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Technological improvements are largely responsible for the increase in productivity and efficiency of U.S.plants.

A) True
B) False

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An important strategy in operations management is using technology to anticipate customer needs.In the hotel industry,this is known as guest-recognition services.

A) True
B) False

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In ___________,materials are physically or chemically changed to produce a product.


A) process manufacturing
B) assembly processes
C) utilitarian production
D) diffusive manufacturing

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

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Aaron is a freshman in college who has not yet decided on his major.He is thinking about majoring in operations management and is exploring job opportunities in this field.Which of the following statements about jobs for operations management majors is most accurate? If he majors in operations management,Aaron will:


A) have limited job opportunities because operations management positions are only available in the slowly growing manufacturing sector.
B) acquire skills and knowledge that are valuable to firms in both the manufacturing and service sectors.
C) have plenty of job offers,but they will mainly be in low wage positions in the service sector.
D) find plenty of employment opportunities in the government and education,but not very many in the private sector.

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

Correct Answer

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HandZone,a manufacturer of high quality gloves and a variety of fashion accessories,already has both computer-aided design and computer-aided manufacturing.Unfortunately,the two systems cannot communicate with each other.David Warmdigit,a production manager at HandZone,has heard about some software that allows CAD and CAM to work together,and wants to learn more about it.David is interested in:


A) linear programming software.
B) holistic internalization of operations.
C) computer integrated manufacturing.
D) complex systems integration.

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

Correct Answer

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MRP is the acronym for:


A) minimum resource payments.
B) maximized revenue potential.
C) managed resource priorities.
D) materials requirement planning.

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

Correct Answer

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