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Operations managers refer to the development of a plan for converting a product idea into an actual product as design planning.

A) True
B) False

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Oil companies use a synthetic process when they refine crude oil.

A) True
B) False

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The American economy is now characterized as a(n) ____ economy.


A) industrial
B) centralized
C) service
D) stagnant
E) bureaucratic

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

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The examination of work in process for the purpose of controlling quality is called


A) quality control.
B) inspection.
C) inventory control.
D) quality circle.
E) product design.

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

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Scientists at R&E Labs worked for two years on a project to eventually add more knowledge to the science of photography.But in a meeting with the board of directors last week,they had nothing new to report.This is always a risk with


A) basic research.
B) applied research.
C) development and implementation.
D) a lack of research.
E) underfunded research projects.

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

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​_____ programs are used to develop products.


A) ​Computer-aided design (CAD)
B) ​Computer-aided manufacturing (CAM)
C) ​Computer-integrated manufacturing (CIM)
D) ​Computer-generated mistakes (CGM)

E) None of the above
F) All of the above

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The executives and operations specialists for Hyster,an industrial equipment manufacturer,meet and determine the operational plan for the next two years.Two years is Hyster's


A) planning time frame.
B) goal outlook.
C) operational time plan.
D) span of operational management.
E) planning horizon.

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

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Gia is a manager in a circuit manufacturing plant.A portion of the production process is extremely tedious and repetitive,and employees tend to become bored and careless when performing this task.What alternative could make this repetitive task quicker and less susceptible to error?


A) Quality circles
B) Computer-aided design
C) Flexible rotation
D) Robotics
E) Automated process control

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

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The ____ function specifies when the materials will arrive at each station and how long they will remain there.


A) routing
B) timing
C) efficient manufacturing
D) tactical
E) analysis

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

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A common planning horizon for operational plans is one year.

A) True
B) False

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In deciding on a product line,managers should balance ____ and product requirements.


A) convenience goods
B) specialty goods
C) customer preferences
D) demographics
E) last year's sales

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

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A business will usually choose to produce a new product in an existing facility if the cost is less than the cost of building a new one and the


A) type of technology needed for the new product is the same as the technology used by the existing products.
B) new product is an extension of an existing product line already produced in the factory.
C) human resources requirement for the new product and existing products can be satisfied with the facility's current employees.
D) product design is already completed.
E) existing factory has enough capacity to handle demand for the new product as well as the existing products.

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

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E

The process of managing inventories to minimize both holding costs and potential stock-out costs is called inventory control.

A) True
B) False

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All the activities managers engage in to produce goods and services are called operations management.

A) True
B) False

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True

The Acme Toy Company introduced a new electric train,the Silver Bullet,in its Christmas catalog last year.Within four days of the catalog's mailing date,Acme had received phone orders for its entire inventory of trains.Paul Murrah,the sales manager responsible for the Silver Bullet,was delighted with the product's success.However,his excitement was overshadowed by the ____ cost resulting from lost sales that his division would suffer.


A) variable
B) stock-out
C) opportunity
D) fixed
E) holding

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

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A situation in which people do most of the work is called


A) a quality circle.
B) quality control.
C) design planning.
D) a labor-intensive technology.
E) a capital-intensive technology.

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

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D

Product extension and refinement


A) shorten the product life cycle.
B) extend the product life cycle.
C) are too costly for most firms.
D) take place during basic research.
E) end the product life cycle.

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

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Jeremy Johnson is the owner of a small firm that manufactures customized oil-drilling equipment.The company's manufacturing facility is organized into a fabrication section,a heat treatment section,a welding section,and a quality control section.This type of plant layout is referred to as a(n) ____ layout.


A) product
B) pooled manufacturing
C) assembly-line
D) group manufacturing
E) process

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

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Capacity to a service business means something completely different from capacity to a production business.

A) True
B) False

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The process of creating a set of specifications from which the product can be produced is called


A) technology.
B) research and development.
C) design planning.
D) product design.
E) a product line.

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

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