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ProCar Inc.is a reputed automobile company,and Coral Holidays Inc.is an established chain of travel agencies.How will the two businesses differ from each other?


A) While Coral Holidays Inc.will be able to incorporate quality standards in its business,ProCar Inc.will not.
B) Measuring productivity will be fairly straightforward for ProCar Inc.when compared to Coral Holidays Inc.
C) Standardizing output will be easier for Coral Holidays Inc.when compared to ProCar Inc.
D) ProCar Inc.will face a higher degree of variation of inputs and outputs when compared to Coral Holidays Inc.
E) ProCar Inc.will make more customer contact than Coral Holidays Inc.

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

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The first step in quality control for any organization is:


A) undertaking quality inspections.
B) establishing quality standards.
C) sampling products.
D) measuring productivity levels.
E) initiating corrections.

F) B) and C)
G) A) and E)

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Material-requirements planning can be,and often is,used in conjunction with just-in-time inventory management.

A) True
B) False

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Sampling as a method to determine whether a product meets quality standards is most likely to be used when:


A) inspection tests are destructive.
B) every product must be tested because of human life and safety.
C) each product is highly customized.
D) an elaborate testing technique is required.
E) a firm has allotted a significant amount of time and money for testing.

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

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Quality control refers to the:


A) processes an organization uses to maintain its established quality standards.
B) efforts of an organization to replace quality with productivity.
C) efforts of an organization to reduce the quality standards set by the best-performing companies.
D) inspections conducted by the government when a product's quality is above the required standard.
E) techniques an organization uses to minimize the quality of its products and services.

F) A) and B)
G) A) and C)

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Money,employees,time,and equipment are examples of an airline's _____ in the transformation process.


A) outputs
B) stocks
C) products
D) services
E) inputs

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

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From the perspective of manufacturers,the term standardization means:


A) ensuring that each product is sold at the same price.
B) ensuring that one's product has the exact same features as that of a competitor.
C) making identical,interchangeable components or complete products.
D) making the exact product a particular customer needs or wants.
E) meeting the benchmark set by a market leader.

F) B) and C)
G) A) and E)

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C

Which of the following is true of the transformation process in operations management?


A) It is a process of replacing quality with productivity when manufacturing products.
B) It is the conversion of resources such as labor,money,materials,and energy into goods,services,and ideas.
C) It is efficient only when inputs are used in large quantities to produce small quantities of output.
D) It is associated with the marketing and selling of both inputs and outputs to customers.
E) It is a process of initiating corrective action when the actual output is more than the desired output.

F) None of the above
G) A) and E)

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A manufacturing unit of a commercial brewery can produce a maximum of 20,000 cans of beer per day.This refers to the _____ of the manufacturing unit.


A) agility
B) variability
C) utility
D) perishability
E) capacity

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

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E

How do operations managers ensure quality and efficiency during the transformation process of inputs into outputs?


A) They ensure that their products never use the modular design of transforming because this process increases the cost of labor.
B) They always employ computer-assisted manufacturing (CAM) technologies to guide and control the transformation processes.
C) They shift from material-requirements planning (MRP) to just-in-time (JIT) inventory management.
D) They keep the work cycling between two different batches of labor in order to track any loopholes.
E) They take feedback at various points in the transformation process and compare them to established standards.

F) A) and E)
G) D) and E)

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_____ employs specialized computer systems to actually guide and control the transformation process of inputs into outputs.


A) Computer-assisted design (CAD)
B) A transaction processing system
C) Computer-assisted manufacturing (CAM)
D) The in-basket technique
E) A turnkey project

F) C) and D)
G) B) and D)

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Which of the following is a basic component of material-requirements planning (MRP) ?


A) An executive summary
B) A master production schedule
C) A promissory bill
D) A balance sheet
E) A balanced scorecard

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

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Which of the following is true of modular design as an operations process?


A) The failure of any portion of a modular component does not require replacing the entire component.
B) Automobile manufacturers avoid the use modular design in the production process.
C) It increases the time take to repair products,thus raising the cost of labor.
D) It allows for customers to mix and match components for customized design.
E) It is the highest form of customization that can be provided to customers.

F) A) and D)
G) D) and E)

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D

Tree Moon Hospitality Inc.has a chain of reputed hotels and resorts across the globe.First Care Inc.is a pharmaceutical company known for its breakthrough life-saving drugs.How will the two businesses differ from each other?


A) Tree Moon Hospitality Inc.will be more capable of customizing its products when compared to First Care Inc.
B) Tree Moon Hospitality Inc.will be able to keep its output standardized,whereas First Care Inc.will not.
C) Tree Moon Hospitality Inc.will have lesser contact with its customers when compared to First Care Inc.
D) Tree Moon Hospitality Inc.will be able to incorporate quality standards,whereas First Care Inc.will not.
E) Tree Moon Hospitality Inc.,unlike First Care Inc.,will not produce its output at the point of consumption.

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

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The capacity of a restaurant would be the:


A) average number of customers that visit the restaurant on weekends.
B) total number of customers who have visited the restaurant since its establishment.
C) average number of employees who work in the restaurant on a normal day.
D) maximum number of customers who can be effectively served at any one particular time.
E) minimum operating cost of the restaurant during a workweek

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

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Actual performance of a service provider's product typically occurs:


A) several days after the purchase.
B) outside the service provider's facility.
C) at the point of consumption.
D) in the buyer's home.
E) before the point of consumption.

F) None of the above
G) A) and B)

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Which of the following is a popular method of scheduling materials that identifies all the major activities or events required to complete a project,arranges them in a sequence or path,determines the critical path,and estimates the time required for each event?


A) The Ansoff matrix
B) The Program Evaluation and Review Technique (PERT)
C) The continuous manufacturing system
D) The economic order quantity (EOQ) model
E) The in-basket technique

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

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The buying of all materials needed by an organization is called:


A) benchmarking.
B) capital expenditure.
C) purchasing.
D) a leveraged buyout.
E) a hostile takeover.

F) All of the above
G) A) and C)

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Which of the following does total quality management (TQM) involve?


A) Coordinating efforts in all areas of a company to improve customer satisfaction
B) Limiting employee participation in the continuous improvement process
C) Isolating suppliers and vendors from the continuous improvement process
D) Treating quality simply as a function of the operations process
E) Reworking on defective products to ensure better quality

F) C) and D)
G) C) and E)

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Dera Diamonds Inc.is a premium jeweler.Its clientele includes movie stars,politicians,businessmen,and popular socialites.It has a team of jewelry experts that designs jewelry for each of its client from scratch.Everything is made to meet the specific requirements of the clients,and no two jewelry pieces produced by this company has ever been identical.This is an example of _____.


A) customization
B) standardization
C) mass production
D) crowdsourcing
E) benchmarking

F) A) and B)
G) A) and E)

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