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Operations managers at Alumax Corporation have found that they can achieve efficient production only by producing very large quantities of aluminum without shutting down the production process. This indicates that Alumax should use a(n) production process.


A) intermittent
B) assembly
C) continuous
D) systematic

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

Correct Answer

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examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and correct any variances from desired quality levels.


A) CAD/CAM
B) Econometrics
C) Analysis of variance
D) Statistical process control

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

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) B) and C)

Correct Answer

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Production management is the traditional term used to describe all the activities managers do to help their firms create:


A) resources.
B) goods.
C) services.
D) equities.

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

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The primary characteristic of a just-in-time inventory system is that suppliers deliver parts and materials right at the time that the buyer is going to use them in the production process.

A) True
B) False

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Manny is a production and operations manager who likes to keep track of how various projects are progressing. One of Manny's favorite tools is a bar graph that shows how much work has been completed on the projects that are currently underway and which processes are behind schedule. Manny likes to use a(n) :


A) CAD/CAM diagram.
B) input-output graph.
C) Gantt chart.
D) Targeted Completion Date Graph.

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

Correct Answer

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American manufacturers have emphasized continuous improvement as one strategy for regaining a competitive advantage in the manufacturing sector.

A) True
B) False

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Operations management is the phase of management.


A) planning
B) implementation
C) control
D) building

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

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Modern companies tend to deal with many different suppliers in order to avoid problems that can arise when one supplier is unable to provide needed parts or materials.

A) True
B) False

Correct Answer

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X-Sport Industries is a U.S.-based manufacturer of sporting goods. Recently, it has decided to make a major push to sell its products in the European Union. In order to succeed in this new market X-Sport will need to:


A) become certified in ISO 9000 standards.
B) convert its financial assets into Euros.
C) avoid reliance on the Deming cycle.
D) reduce the wages of its production workers.

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

Correct Answer

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ERP is the acronym for:


A) Educated Rights Planning.
B) Extensive Research Planning.
C) Enterprise Resource Planning.
D) Emphatic Requirements Planning.

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

Correct Answer

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When a company has the ability to produce the same amount of goods with only half the floor space and half the labor that it used in the past, the firm is practicing flexible manufacturing.

A) True
B) False

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The Baldrige standards measure a firm's quality in several key areas including planning, leadership, and customer and market focus.

A) True
B) False

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are a set of international standards for quality management and quality assurance.


A) EPA 2000
B) ISO 14000
C) ISO 9000
D) TQM 2003/2004

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

Correct Answer

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

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

Correct Answer

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Firms that have a goal of tend to locate facilities near major highways, ports, rail lines and airports.


A) reducing time to market
B) using ERP techniques
C) replacing labor with machinery
D) switching to a more service-oriented product mix

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

Correct Answer

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A PERT network consists of activities linked by arrows. Suppose two of the activities on the network are labeled "A" and "B". An arrow from "A" to "B" indicates that:


A) the same resources used to complete "A" are also used to complete "B".
B) "A" and "B" can be completed at the same time.
C) "A" takes longer to complete than "B".
D) "A" must be completed before "B" can begin.

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

Correct Answer

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U.S. manufacturers are focusing on quality as a way to become more competitive globally, assuming that cost is not an issue.

A) True
B) False

Correct Answer

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Mass customization is not exclusive to product intensive businesses. Service businesses have learned how to use mass customization to serve their customers.

A) True
B) False

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