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When Dell decided to produce and market an affordable personal computer, it had to consider a number of issues: what the computer would look like, where and how it would be produced, what options it would include, and so on. Supplying answers to these questions is part of


A) operational planning.
B) basic research.
C) applied research.
D) design planning.
E) scheduling.

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

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The period of time over which an operational plan will be in effect is known as a


A) planning horizon.
B) fiscal period.
C) quality circle.
D) process layout.
E) research period.

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

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Which of the following is not a possible cause of only a small increase in America's recent productivity growth rate?


A) The economic crisis in banking and finance
B) A downturn in home construction and automobile industries
C) Increased investment in new equipment
D) Increased government regulation
E) The tremendous growth in the service industry

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

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Gantt charts force a manager to plan the steps required to get a job done and to specify time requirements for each part of the task.

A) True
B) False

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The cost of running out of inventory is referred to as a holding cost.

A) True
B) False

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What are the two types of costs associated with inventory?


A) Holding costs and selling costs
B) Stock-out costs and holding costs
C) Shipping and handling costs and holding costs
D) Overstock costs and stock-out costs
E) Holding costs and tracking costs

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

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Productivity is the


A) highest level of output for the best worker.
B) average level of output per worker.
C) lowest level of output for all hourly workers.
D) average level of output for workers with at least five years of experience.
E) average level of output for a randomly selected group of employees.

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

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When demand exceeds capacity, all of the following are reasonable options for the firm except


A) operating overtime hours to meet the demand.
B) starting a second or third shift.
C) subcontracting part of the work to other producers.
D) turning away some long-time customers.
E) expanding the capacity of the current facility.

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

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Operations control includes all of the following except


A) scheduling.
B) inventory control.
C) basic research.
D) purchasing.
E) quality control.

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

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Jasper Electronics, Inc. Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company―and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI. -Refer to Jasper Electronics, Inc. As an operations manager, Ross must do all of the following to be successful except


A) motivate and lead people.
B) understand how technology can make a manufacturer more productive and efficient.
C) appreciate the control processes that help lower production costs and improve product quality.
D) understand the relationship among the customer, the marketing of a product, and the production of a product.
E) understand how to successfully finance production to gain the larger market share.

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

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Which of the following is the objective of purchasing?


A) Routinely replenish the stock.
B) Ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost.
C) Select suppliers.
D) Determine the facility's level of output.
E) Control inventory and product quality.

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

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One primary difference between services and the production of goods is that services are consumed ____ whereas goods can be ____.


A) one at a time; consumed more than one at a time
B) immediately; stored
C) intangibly; tangible or intangible
D) later; consumed now
E) as they are produced; special ordered

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

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Research activities undertaken to put new or existing knowledge to use in producing goods and services are called


A) development and implementation.
B) applied research.
C) basic research.
D) design planning.
E) product design.

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

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Statistical quality control (SQC) is concerned with only the quality of a firm's finished products.

A) True
B) False

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Today approximately ____ percent of American workers are employed in service industries.


A) 28
B) 47
C) 62
D) 87
E) 94

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

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Jasper Electronics, Inc. Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company―and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI. -Refer to Jasper Electronics, Inc. Which of the following objectives would you advise Ross to focus on?


A) Increasing the use of technology
B) Increasing production costs to gain competitive position
C) Improving the inspection process
D) Eliminating expenses by reducing control procedures
E) Obtaining new equipment to minimize technological expenses

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

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An engine production facility uses a system that involves the entire organization and utilizes a single set of facts used by all of the managers within the facility. The system is an example of


A) a just-in-time inventory system.
B) materials requirement planning.
C) manufacturing resource planning.
D) enterprise resource planning.
E) an inventory control system.

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

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After World War II, the United States became the most productive country in the world.

A) True
B) False

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Robots are especially effective in carrying out creative tasks and assignments.

A) True
B) False

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In a service industry such as a package carrier, the ____ of the conversion process is usually small or none at all.


A) focus
B) magnitude
C) width of processes
D) utility
E) result

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

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