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"In purchasing, the idea is for buyers to always obtain the finest-quality items available for their plant to use in making the product." Is this statement true or false? Support your answer with examples.

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ABC Company ABC Company is dedicated to operations control. It holds its suppliers to the highest standards, believing there is one best way to complete their tasks. ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business. Following these criteria has allowed the company to grow from a small business to a large corporation. ABC plans on going international in the next couple of years to broaden its scope. ABC has kept up with new technologies. In fact, it has incorporated a new computer system that helps with the development of the company's products. This system has improved ABC's production dramatically. Now, ABC will be able to sell its products at a lower cost. The ABC management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future. -Refer to ABC Company. The supplier must have ____ in order to be the best possible option and do business with ABC.


A) marketing operations
B) productivity growth
C) technological displacement
D) reliability
E) R&D

F) C) and D)
G) B) and D)

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Development and implementation are research activities undertaken to put new or existing knowledge to use in producing goods and services.

A) True
B) False

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A labor-intensive technology is one in which people must do most of the work.

A) True
B) False

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R&D activities aimed at disclosing new knowledge that has some potential use are known as


A) development and implementation.
B) applied research.
C) basic research.
D) product design.
E) design planning.

F) B) and D)
G) B) and E)

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When manufacturing a product like a computer or an automobile, planning takes place both before anything is produced and during the production process.

A) True
B) False

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Quality control is the process of ensuring that materials are at the right place at the right time.

A) True
B) False

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Arbach's responsibility is to ensure that materials used in production are at the right place at the right time. His job involves


A) quality control.
B) lead time planning.
C) operational planning.
D) scheduling.
E) design planning.

F) None of the above
G) A) and C)

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What portion of the ideas for new products, refinements, and extensions ever gets to the production stage?


A) About one-third
B) At least half
C) The majority
D) Only a few
E) About two-thirds

F) A) and D)
G) A) and C)

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____ is the arrangement of machinery, equipment, and personnel within a production facility.


A) Process layout
B) Product layout
C) Resource design
D) Plant layout
E) Design planning

F) A) and D)
G) A) and C)

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Needles, Inc., has five of its ten products at the end of the product life cycle. To maintain its market share, the firm must at least find ways to


A) reduce the cost of marketing its products.
B) cut manufacturing costs.
C) extend or refine the want-satisfying capability of its products.
D) reduce the number of employees.
E) increase the price of the product.

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

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Jasper Electronics, Inc. Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company―and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI. -Refer to Jasper Electronics, Inc. If JEI management were to explore the possibility of using its products in different ways, what types of research and development activities could they engage in?


A) Quality control
B) Applied
C) Flexible
D) PERT
E) Core

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

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Which of the following products is most likely to require a fixed-position layout?


A) Automobile
B) Canoe
C) Clothing
D) Yacht
E) Computer

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

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A doctor's office allows thirty minutes for each appointment. After taking a one- hour lunch break, the doctor's office has a(n) ____ of sixteen patients a day if it is open from 8:00 a.m. to 5:00 p.m.


A) operating maximum
B) service line
C) capacity
D) labor availability
E) service plan

F) C) and D)
G) A) and B)

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The goal of applied research is scientific advancement, without regard for its potential uses in the development of goods and services.

A) True
B) False

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Increased business investment in facilities and equipment usually results in lower employee productivity.

A) True
B) False

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A situation in which machines and equipment do most of the work is known as


A) high technology.
B) quality control.
C) a labor-intensive technology.
D) an industrial installation.
E) a capital-intensive technology.

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

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Since ISO 9000 quality standards were developed in Switzerland and affect only European firms, they don't apply to firms in the United States doing business in Europe.

A) True
B) False

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Jasper Electronics, Inc. Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company―and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI. -Refer to Jasper Electronics, Inc. In his effort to improve the quality control of products manufactured at JEI, Ross might employ


A) the critical path.
B) statistical quality control.
C) improved scheduling.
D) a PERT diagram.
E) a Gantt chart.

F) A) and D)
G) None of the above

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When Panasonic improves the sound, clarity, and ease of operation offered by its Blu-Ray players, it is


A) shortening its product life cycle.
B) extending its basic research.
C) redistributing its product.
D) refining its existing product.
E) reducing the DVD player's functionality.

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

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