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Exam 9: Production and Operations Management

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Question 101

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

A) is most useful to firms producing durable goods such as automobiles.
B) has replaced ERP as the most sophisticated resource planning technique.
C) allows firms to save money by replacing skilled labor with computers to perform all of the high-skill tasks.
D) has made it possible to produce custom-designed products with little increase in costs.

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

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Question 102

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In _________,machines are designed to do multiple tasks so that they can produce a variety of products.

A) systems engineering
B) microdesign
C) modular construction
D) flexible manufacturing

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

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Question 103

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Businesses that provide services typically cannot use mass customization because services are not tangible products that can be customized.

While mass customization works well for producers it is not used in the service sector.

Which of the following statements best describes the distinction between production management and operations management? Production management involves:

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.

ISO is a world-wide,non-governmental federation that sets global measures of quality.

Computers and robots are only useful in continuous production processes where the same type of product is produced many times.

Lean manufacturing ___________ productivity.

One drawback of intermittent production processes is that they tend to be much slower than continuous processes.

__________ is the operations management planning function that searches for quality material resources,finds the best suppliers,and negotiates the best price.

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

In a PERT network,the sequence of tasks that takes the longest to complete is called the:

The resurgence of U.S.manufacturing firms in recent years can be credited to:

The service sector of the U.S.economy offers many jobs,but very few of them are considered high wage occupations.

Manny is a production and operations manager who likes to keep track of how various projects are progressing.One of Manny's favorite tools is a bar graph that shows how much work has been completed on the projects that are currently underway and which processes are behind schedule.Manny likes to use a(n) :

During the deep recession of 2008-2010,

Enterprise resource planning (ERP)software combines all functional units of a firm,into the production of goods and services,and may even include subsidiaries and other firms.

A firm that is certified as meeting both ISO 9000 and ISO 14000 standards has demonstrated:

Operations management is the __________ phase of management.