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Gantt charts will show the production manager if certain activities in the production process are lagging behind their acceptable time of completion.

A) True
B) False

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Statistical process control (SPC) is the process of taking statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards.

A) True
B) False

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Sunnyside Travel, Inc. is a travel agency that specializes in destination wedding vacation packages. It has packages ranging from cruises to beach resorts all around the world. The customer chooses what they would like to pay, where they would like to visit, and what they would like to do. Based on this information, Sunnyside uses ________ to please the customers.


A) excellent human resources management
B) the Internet
C) mass customization
D) lean manufacturing

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

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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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Ices Creamery combines sugar, cream, and the best natural flavorings, then churns and freezes the resulting mixture at a very low temperature, creating ice cream. The method Ices uses is an example of


A) an analytic production system.
B) process manufacturing.
C) an assembly process.
D) a symbiotic process.

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

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Today, e-commerce uses social media to make online transactions even easier.

A) True
B) False

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Which of the following statements about the impact of CAD/CAM on manufacturing is most accurate?


A) CAD/CAM is most useful to firms producing durable goods such as automobiles.
B) CAD/CAM has replaced ERP as the most sophisticated resource planning technique.
C) CAD/CAM allows firms to save money by replacing skilled labor with computers to perform all of the high-skill tasks.
D) CAD/CAM has made it possible to produce custom-designed products with little increase in costs.

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

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Operations management converts resources into goods and services.

A) True
B) False

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________ is the specialized area of management that converts or transforms resources into goods and services.


A) Logistics management
B) Resource engineering
C) Intrapreneuring
D) Operations management

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

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The main idea in the Making Ethical Decisions box "Do We Stay or Do We Go?" indicates


A) a need for firms to place a higher level of importance on time-to-market when choosing facilities locations.
B) that the goal of finding the lowest cost location should never be overshadowed by other concerns if the firm is to remain loyal to its stockholders.
C) that many locations do not meet ISO 14001 standards.
D) a need for firms to consider the economic impact of their existence and/or departure from a particular location.

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

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When firms successfully produce products, they create form utility.

A) True
B) False

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

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

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Outdoor Adventure Industries is a U.S.-based manufacturer of sporting goods. It has recently decided to make a major push to sell its products in the EU. In order to succeed in this new market Outdoor Adventure will need to


A) become certified in ISO 9001 standards.
B) convert its financial assets into euros.
C) avoid reliance on the Deming cycle.
D) reduce the wages of its production workers.

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

Correct Answer

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Both PERT diagrams and Gantt charts are useful to managers concerned with


A) calculating the rate of profit earned in a particular market.
B) making sure that projects are completed on time.
C) estimating the cost of completing a project.
D) establishing formal lines of authority and responsibility within an organization.

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

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Which of the following would be most helpful to a production manager who wanted to determine the minimum time required to complete a proposed project?


A) TQM
B) CAD/CAM
C) ERP
D) PERT

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

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In manufacturing, a(n) ________ is frequently used in operations that serve different customers' different needs.


A) product layout
B) process layout
C) modular layout
D) fixed-position layout

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

Correct Answer

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Today manufacturers are relying more heavily on


A) developing close relationships with just a few suppliers to secure affordable prices.
B) the bidding process to obtain the lowest price.
C) many suppliers to keep their leverage.
D) developing an MRP system for purchasing.

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

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The operations planning practice of using sales forecasts created by a computer to accurately predict the amount and timing of materials needed to complete products and projects is


A) enterprise resource planning.
B) materials requirement planning.
C) virtual accuracy tool.
D) computer-based materials model.

E) None of the above
F) All of the above

Correct Answer

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The PERT network provides a project manager with a plan that puts all the activities of a project in the correct order that they must be accomplished, shows which activities can be accomplished simultaneously, and, also gives the manager a good estimate of how long each activity will take to complete.

A) True
B) False

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