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Exam 9: Production and Operations Management

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Question 31

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Operations management becomes a(n) ____________ when companies outsource several processes and create a network of firms that cooperatively produce products and services.

A) open operation
B) closed operation
C) interfirm process
D) conjoined process

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

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Question 32

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

A) True
B) False

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Question 33

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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?

Which of the following is a likely reason that a company would move its facility from one location to another?

The National Bicycle Company of Japan makes 18 bicycle models in more than 2 million combinations, with each combination designed to fit the needs of a specific customer. The customer chooses the model, size, color, and design. An analysis of this company's operation would indicate that it uses:

Operations management moves from knowing the needs of consumers to actually satisfying those needs.

Speeding up the process of responding to consumer wants and needs is a key to global competitiveness.

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." -While Minimotors has focused on improving production efficiencies, global customers are inquiring about its environmental policies. In light of its strategy to serve European customers, 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.

The EZee Office Furniture Company makes high-quality desks and chairs for executive offices. The company is about to make a radical change in its production process. It will take measurements from customers, have them 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 EZee Office will use is an example of:

Superior Supplies' largest customer recently implemented a just-in-time inventory system. As a supplier of materials to this customer, Superior Supplies will:

CAD systems allow designers to work in three dimensions.

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

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

A major trend in business is ___________, where employees work at least part time at home using a computer and modem.

Today, manufacturers in the U.S. have become so efficient, they require fewer workers to produce the same amount of output.

American manufacturers have emphasized continuous improvement as one strategy for regaining a competitive advantage in the manufacturing sector.

Sarah works for an architectural firm. The partners in the firm have always drawn the plans for projects by hand. While Sarah learned how to draw by hand in college, she also became skilled on computer programs that permitted her to create designs in three dimensions. She plans to demonstrate the effectiveness of such programs to the firm's partners. The computer program she will recommend to the partners is:

Firms that have a goal of ____________ tend to locate facilities near major highways, ports, rail lines and airports.

ISO 14000 is a collection of the best practices for managing an organization's impact on the environment.

Mass customization is a strategy of convincing customers to choose from a relatively small number of alternatives in order to achieve the efficiencies of mass production.