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Exam 9: Production and Operations Management

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Question 41

Multiple Choice

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In recent years, the service sector of the U.S. economy has

A) grown much more rapidly than the manufacturing sector.
B) become the low-wage sector of the U.S. economy.
C) achieved extremely high productivity gains according to government reports.
D) focused less on quality and more on reducing costs of production.

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

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Question 42

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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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Question 43

Multiple Choice

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The equipment and software Sparky wants to purchase will allow the computers used to design motors to be linked directly to the computer-aided equipment on the factory floor. Sparky is proposing to set up a(n)

While Minimotors has focused on improving production efficiencies, global customers are inquiring about its environmental policies. In light of its strategy to serve customers in the EU, Sparky has requested two of its lead engineers to investigate what it would take to meet the environmental standards of its socially responsible customers. The engineers should investigate ________ as best practices for managing a firm's impact on its environment.

Lacey is a production manager and often refers to a bar graph that shows what activities are being worked on, and how much of each task has been completed on a daily basis. Lacey is using a Gantt chart.

The quality standard for service industries such as luxury hotels is meeting the customers' requests.

Many state and local governments offer tax incentives and government services to attract businesses.

In a just-in-time inventory system, suppliers

The Deming Cycle is designed to catch errors before they happen.

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

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

The Corporate Comfort Furniture Company mass manufactures first-rate desks and chairs for executive offices. But now, the company is about to make a radical change in its production process. Customers will be able to provide specific measurements, 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 Corporate Comfort will use is an example of

According to the box titled "Should We Stay or Should We Go?," federal law states, a firm must give employees 60 days' notice of a facility or plant closing.

The production of a bridge, ship, or large airplane usually involves a variable-position facility layout.

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?

New developments in information technology have

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

Firms that specialize in accounting, finance, and management consulting are all part of the service sector.

Apollo just graduated with a degree in operations management. While earning his degree, the knowledge he gained and skills he developed could make him an attractive employee for both a manufacturing firm and a service firm.

One valid criticism of modern production planning methods such as ERP and MRP is that there is no way to use recent advances in information technology (IT) with these systems.