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Businesses that provide services typically cannot use mass customization because services are not tangible products that can be customized.

A) True
B) False

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Operations management involves inventory management,quality control,and production scheduling.

A) True
B) False

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To create their Deluxe Beef Sandwiches,Robbie's Roast Beef finely slices prime roast beef,stacks it on a sesame bun,adds special seasonings,cheese,onions,and mushrooms.The value added by Robbie's when it combines these ingredients to make a sandwich is known as:


A) consumer surplus.
B) the analytic function.
C) marginal utility.
D) form utility.

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

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__________ is the operations management planning function that searches for quality material resources,finds the best suppliers,and negotiates the best price.


A) Marketing
B) Collective bargaining
C) Bartering
D) Purchasing

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

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Recent developments in information technology will discourage companies from allowing employees to telecommute.

A) True
B) False

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

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Production manager Marvin McNealy wants to link all the divisions and subsidiaries of his firm's computerized functions into a single,integrated software program that uses a single database.In order to achieve this goal,Marvin could make use of:


A) enterprise resource planning.
B) manufacturing resource planning.
C) program evaluation and review techniques.
D) Gantt Charts.

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

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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.

A) True
B) False

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Manufacturing firms focus exclusively on the production of goods and allow other firms to provide services.

A) True
B) False

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

A) True
B) False

Correct Answer

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While Minimotors has focused on improving production efficiencies,global customers are inquiring about its environmental policies.In light of its strategy to serve European customers,Sparky has requested two of its lead engineers to investigate what it would take to meet the environmental standards of its socially responsible customers.The engineers should investigate ___________ as best practices for managing a firm's impact on its environment.


A) the EPA's minimum pollution standards
B) ISO 14000
C) RG3 Regulations
D) WTO environmental policy

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

Correct Answer

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A process manufacturing layout is frequently used in operations that serve different customers' different needs.

A) True
B) False

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

A) True
B) False

Correct Answer

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____________ uses computers to help design products.


A) PERT
B) QPC
C) DPA
D) CAD

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

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A basic characteristic of flexible manufacturing is that it:


A) relies heavily on labor,since humans are more adaptable than machines.
B) uses machines designed to perform multiple tasks so they can be used to produce a variety of products.
C) achieves its flexibility at the cost of much slower rates of production than mass production techniques.
D) is only possible when using mass production processes.

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

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The basic reason the term production management has been replaced by the term operations management is that:


A) the U.S.economy has moved toward a more socialist approach with government controlling a greater share of the production process.
B) a much larger share of total output is being produced by nonprofit organizations.
C) the United States is now a service economy.
D) the United States now exports more than it imports.

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

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

A) True
B) False

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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.

A) True
B) False

Correct Answer

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In manufacturing,one way to compete with cheap labor is to:


A) use robots.
B) hire experienced people.
C) make the production line longer.
D) increase inputs to the system.

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

Correct Answer

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

A) True
B) False

Correct Answer

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