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Exam 9: Production and Operations Management

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Question 71

Multiple Choice

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CAD/CAM makes it possible to custom-design products to meet the needs of with .

A) small markets; a decrease in cost
B) very large markets; no increase in cost
C) small markets; very little increase in cost
D) international markets; products that are complex

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

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Question 72

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Some companies will locate their production facilities near their suppliers.

A) True
B) False

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Question 73

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Due to the growth of the Internet, the cost of labor is no longer an important consideration in location decisions of business firms.

Millwell Manufacturing redesigned its facility layout to group similar equipment and functions together, and to allow flexibility in the sequence in which products are produced using these functions. Millwood's new layout is an example of the fixed-position layout.

One strategy U.S. manufacturers have employed in order to become more competitive is:

A major advantage of a just-in-time inventory system is that it reduces costs and the effort for both the producer and its suppliers.

The EZee Office Furniture Company makes high quality desks and chairs for executive offices. The company is about to make a radical change in its production process. It will take measurements from customers, have them select from a variety of fabric patterns and answer some basic questions about the furniture styles they like, then design a chair and desk that is ergonomically designed for maximum comfort for its users. The new method EZee Office will use is an example of:

One key to the resurgence of U.S. firms as world-class competitors has been the implementation of a focus on quality.

Operations management moves from knowing the needs of consumers to actually satisfying those needs.

New developments in information technology have:

Materials requirement planning (MRP) enables a firm to make sure that the right amount of each material or component is available at the right time to satisfy its production needs.

In machines are designed to do multiple tasks so that they can produce a variety of products.

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

In the past, production management was about using the factors of production to create finished goods.

When it comes to location decisions, labor costs are no longer an important consideration for most manufacturing firms.

Over the past few years, Internet-based companies have emerged to help businesses find the best supplies at the best prices.

Maintaining involves producing what the customer wants while reducing errors before and after delivery to the customer.

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

A firm that is certified as meeting both ISO 9000 and ISO 14000 standards has demonstrated:

In the process of operations management, a firm transforms resources such as raw materials, supplies, and even human resources into goods and services.