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Exam 9: Production and Operations Management

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Question 71

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How has the emphasis of quality control changed in recent years? Describe some of the modern quality control techniques that illustrate this change in emphasis.

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In the past,quality control was done by ...

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Question 72

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In a just-in-time inventory system,suppliers:

A) deliver materials and parts in large quantities only a few times a year.
B) enjoy much lower delivery costs.
C) have a great deal of flexibility in determining when to make deliveries.
D) become more like a department in the producing firm rather than a separate business.

E) All of the above
F) C) and D)

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Question 73

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Which of the following statements about the impact of CAD/CAM on manufacturing is most accurate? CAD/CAM:

Quality control is a continual process of checking to make certain that there is consistency in the quality of products being produced.

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

Lean manufacturing is a strategy of producing standardized products that have no frills or extra features in order to keep prices low.

The critical path identified by PERT analysis is the sequence of tasks that can be completed in the shortest amount of time.

When firms successfully produce products,they create form utility.

Which of the following statements best reflects the approach state and local governments take to influence the location decisions of businesses? State and local governments:

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.

In analyzing the importance of a PERT network,it is reasonable to claim:

Antoine's Creamery,an eastern seaboard ice cream producer wants to license firms in Europe to produce and sell its products.We can conclude that this is good strategy if it wants to save the money it would cost to be ISO 9000 certified because the EU (European Union),unlike U.S.firms has not yet adopted these standards.

Retailing is one area where technology is unlikely to make a big difference in how services are provided.

Each day the general manager at the New Life Grocery Store reviews employee work schedules,including the late night stock crew,the checkers,the baggers,the deli,produce,and meat department crews,and the office personnel.He coordinates work schedules with shipments,as well as the information he collects from registers that indicates the busiest hours at the store,and then he communicates any exceptions to his department managers.These daily tasks are part of _____________.

Megatronics,Inc.obtains computer components from a variety of suppliers and puts them together according to customer specifications to create custom-made computers.This process is an example of:

The goal of lean manufacturing is to:

Operations management transforms resources into goods and services,such as a landscape company that utilizes equipment,labor,and materials to develop a landscape.Managing this operation may also involve maintenance services.

Operations management in the service sector is focused on creating:

Reviewing the PERT Network below: If it takes 1,2,or 3 weeks for each activity (represented by a box) to be completed,the critical path is represented by:

In the past,the idea behind mass production was to: