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Exam 9: Production and Operations Management

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Question 131

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The International Organization for Standardization continually updates acceptable international requirements in the areas of process control,product testing,storage,and delivery.

A) True
B) False

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Question 132

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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.

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B) False

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Question 133

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U.S.businesses are known for their creativity and their ability to implement change.

A big advantage of computer integrated manufacturing software is that it:

Mini-Case "These are exciting times for our company.We've made a lot of changes over the past two years that have really improved our operations and lowered our costs.Now we are ready to expand into new markets.Minimotors is on its way to becoming a global player." The speaker was Sparky Weyer,president and CEO of Minimotors,Inc. ,a growing manufacturer of small (some of them downright tiny) electric motors used in a variety of power tools and appliances.Sparky was meeting with potential financial backers in an effort to obtain funding for some expensive new machinery he wanted to purchase."You may have heard about some of the ways we've cut costs," Sparky continued."We've developed a new arrangement with several of our biggest suppliers.They've agreed to make more frequent deliveries tied directly to our production schedules.This will help us reduce our inventory costs dramatically.We've also greatly reduced the number of defective motors we produce by carefully keeping tabs on all of our manufacturing processes.In fact,we have set a goal of reducing our defects to 3.4 parts per million.The main purpose of my meeting with you today is because we want to install some sophisticated new machinery and software that will allow us to quickly design and produce motors to the exact specifications of our customers.The machinery is computer-controlled and can produce custom-designed products at very little increase in cost compared to our mass produced motors.We feel this flexibility and quick response time will give us a tremendous competitive advantage and help us attract new customers.Installing the new equipment and training our workers to use it properly will be a complex project,but I'm confident that once we get everything up and running we'll be able to strengthen our position as the leading maker of high-quality electric motors." -The equipment and software Sparky wants to acquire 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) :

Unlike an assembly line where workers perform only a few tasks,in a _________ layout,teams of workers combine to perform a variety of tasks needed to produce more complex units of a final product.

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.

With the __________ inventory control system,producers hold only the amount of materials and parts that they need for a short period of time - sometimes just a few hours.

Manufacturers use CAM (computer aided manufacturing)to create three-dimensional designs of products before they are built.

____________ standards are concerned with the best practices for managing an organization's environmental impacts.

Marci Costas is majoring in operations management at Brunau University.Unfortunately,the evolution of the U.S.from a manufacturing-oriented to a service-oriented economy means that Marci will probably find few job openings in her field of study.

U.S.companies that participate in the manufacturing sector:

The ___________ National Quality Award is given to firms that achieve an outstanding level of overall quality based on performance in seven key areas.

Modular facilities layouts consist of:

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

Cooltreet,Inc. ,combines sugar,cream,eggs,and flavorings,then churns and cools the resulting mixture to a very low temperature until it freezes,creating ice cream.The method Cooltreet uses is an example of:

Becca works as a new product development engineer for a company that makes solar panels for residential and commercial purposes.Her company uses PERT network software for all development projects.As she nears the final month of her timeline for completing a new panel,Becca will focus on those activities that are:

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

The selection of a proper site for a business facility is important in the production and operations management processes.Identify and discuss three factors that influence the selection of a site.

Facility location is the process of selecting a geographic location for a company's operations.