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According to the Making Ethical Decisions box,titled,"Stay or Leave",by law a firm must give employees 60 days notice of a facility or plant closing.

A) True
B) False

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Solarsys Aeronautics was awarded a contract to build a large lab module that will be attached to a new space station.The module is approximately 48 feet long,17 feet in diameter,and weighs over sixty tons.Solarsys should use an assembly line plant layout to produce this module.

A) True
B) False

Correct Answer

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Dewey Dare is a production and operations manager with a clothing manufacturer.He has been looking into a system that will enable his company to take measurements from a customer and program machines to design and produce custom-cut clothes at little additional cost.This type of system is an example of the benefits of:


A) mass production.
B) just-in-time production systems.
C) the PERT method.
D) CAD/CAM.

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

Correct Answer

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Casey and Kevin are scanning the "All Things Green" magazine trying to get some green ideas they can incorporate into their business.The problem with going green,however,is that quality tends to decrease,and it is difficult to incorporate contemporary operations management techniques with "green" ideas.

A) True
B) False

Correct Answer

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A benefit of CAD (Computer Aided Design) and CAM (Computer Assisted Manufacturing) is:


A) it basically eliminates the need for human intervention.
B) it saves on materials costs.
C) it permits customization without a significant increase in price.
D) it produces a higher quality product which allows the manufacturer to charge more.

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

Correct Answer

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A fast-changing plant needs a fast-moving employee base to achieve maximum productivity.

A) True
B) False

Correct Answer

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Northern States Electric is in the process of trying to achieve ISO 14000 certification.Although the criteria for certification involve several milestones,we can be assured they will be evaluated on the regularity and thoroughness of their environmental audits,and how well top management reviews the firm's adherence to policies that are environmentally friendly.

A) True
B) False

Correct Answer

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For many firms,operations management has become an interfirm process.

A) True
B) False

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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__________ is the physical arrangement of resources in the production process.


A) Facility location
B) Facility layout
C) ERP
D) RRL

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

Correct Answer

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Evidence suggests that U.S.manufacturing firms can no longer compete against the best firms in the rest of the world.

A) True
B) False

Correct Answer

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Andre is an outdoorsman whose love of hunting and fishing led him to start a mail order company specializing in hunting and fishing gear.He decided to locate his business near the Ozarks in southwestern Missouri,partly because of low labor costs,but mainly because the area offered excellent fishing and hunting opportunities,a low crime rate,and a pleasant climate.Ken's location decision was strongly influenced by quality of life considerations.

A) True
B) False

Correct Answer

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The Deming Cycle is:


A) a checklist that enables managers to evaluate employee performance more systematically.
B) a systematic method of evaluating potential facility locations.
C) a process for finding potential quality errors before they occur.
D) a process for using identical production steps in the creation of different types of products.

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

Correct Answer

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Speeding up the process of responding to consumer wants and needs is a key to global competitiveness.

A) True
B) False

Correct Answer

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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

Correct Answer

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Only firms in the manufacturing sector can create true form utility.

A) True
B) False

Correct Answer

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Operations management in service industries is about creating a good experience for the customer.

A) True
B) False

Correct Answer

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Each day the general manager at the New Life Grocery Store reviews employee work schedules,including the late night stock crew,the checkers,the baggers,the deli,produce,and meat department crews,and the office personnel.He coordinates work schedules with shipments,as well as the information he collects from registers that indicates the busiest hours at the store,and then he communicates any exceptions to his department managers.These daily tasks are part of _____________.


A) operations management
B) promotions management
C) distributive management
D) marketing management

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

Correct Answer

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The purpose of computer-integrated manufacturing (CIM)is to unite computer-aided design with computer-aided manufacturing.

A) True
B) False

Correct Answer

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Although important,the Green Economy will do little to add value to the U.S.economy.

A) True
B) False

Correct Answer

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