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Exam 9: Production and Operations Management

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Question 141

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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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Question 142

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While mass customization works well for producers it is not used in the service sector.

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B) False

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Question 143

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Jamal,an operations manager for a product manufacturer accepted an operations position with a company that produces a service.Jamal will find that operations management at the new job is significantly different from operations management at the old firm.

Some companies will locate their production facilities near their suppliers.

For the past two years,Mountain High Bike Company used suppliers from India,Japan,and Malaysia to provide them with precision parts for its custom bikes.There was only one problem: The quality of the parts from all locations lacked precision and consistency.Skilled technicians complained that as many as three out of five parts had to be discarded due to imperfections.The quality control manager convinced the owners to partner with a slightly higher priced company in Omaha,Nebraska,who utilized _________________ to test samples of product components for deviations in quality and precision,prior to sending them to Mountain High Bike Company.The bike company realized savings in both time and money.

In manufacturing,a __________ is frequently used in operations that serve different customers' different needs.

The significance of the critical path on a PERT chart is that it identifies the least costly method of producing a given product.

As businesses strive for market expansion,companies add to their sales force,but opt to eliminate sales offices across the nation and internationally.How are these firms able to remotely operate a sales force that contributes toward increasing the bottom line?

Compared to PERT networks,Gantt charts provide a more basic way to track progress on a given project.

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

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

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.

The higher productivity of U.S.plants makes it possible to pay higher wages.

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

The main reason for the recent resurgence of American manufacturing firms has been the quotas and tariffs imposed by the U.S.government in an attempt to protect domestic firms from cheap imports.

For most service businesses the quality standard has become:

A(n) __________ puts together components to make a product.

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

In JIT inventory systems a manufacturer normally communicates its production plans to suppliers so that they can deliver needed parts and materials just in time for the manufacturer to use them.

PERT is a popular technique for analyzing the tasks involved to complete a given project,estimating the time required to complete each task,and identifying the minimum time needed to complete the project.