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Amalia is an operations manager at a medium sized service firm.Amalia is recommending that her firm use the Internet to make its services more readily available to its customers.Amalia's recommendation reflects a growing trend in service sector firms.

A) True
B) False

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The higher productivity of U.S.plants makes it possible to pay higher wages.

A) True
B) False

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CAD systems allow designers to work in three dimensions.

A) True
B) False

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Firms often use an) _____________ when working on a major project involving the production of a large item such as an airplane,ship,or bridge.


A) assembly line layout
B) continuous production process
C) fixed-position layout
D) process manufacturing technique

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

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One limitation of materials requirement planning MRP)is that it is not a computer-based approach.

A) True
B) False

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The quality standard for service industries such as luxury hotels is meeting the customers' requests.

A) True
B) False

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The International Organization for Standardization continually updates acceptable international requirements in the areas of process control,product testing,storage,and delivery.

A) True
B) False

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Millennium,Inc,a leading producer of environmentally friendly cleaning agents is looking for a site for a new production facility.The company is mainly focusing on sites that are close to major highways and rail hubs and are not too far from some major population centers.This suggests that an important location consideration for Millennium is:


A) quality of life.
B) access to cheap land.
C) reducing time to market.
D) access to low cost labor.

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

Correct Answer

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A PERT network consists of activities linked by arrows.Suppose two of the activities on the network are labeled "A" and "B".An arrow from "A" to "B" indicates that:


A) the same resources used to complete "A" are also used to complete "B".
B) "A" and "B" can be completed at the same time.
C) "A" takes longer to complete than "B".
D) "A" must be completed before "B" can begin.

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

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A benefit of CAD Computer Aided Design) and CAM Computer Assisted Manufacturing) is:


A) it basically eliminates the need for human intervention.
B) it saves on materials costs.
C) it permits customization without a significant increase in price.
D) it produces a higher quality product which allows the manufacturer to charge more.

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

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The process layout simplifies production by using the same sequence of processes regardless of the design of the item being produced.

A) True
B) False

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According to the Making Ethical Decisions box,titled,"Stay or Leave?",a firm must give its employees _______________ before closing and/or moving to another location.


A) bonuses equal to 1½ times their regular monthly pay
B) 2 weeks notice
C) a golden handshake
D) 60 days notice

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

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Intermittent production processes are characterized by short production runs and frequent changes of machinery in order to produce different products like customized furniture.

A) True
B) False

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The purpose of a PERT network is:


A) to monitor the quality of a product for compliance with ISO 9000 standards.
B) to monitor the progress of a multi-step project during its development.
C) to connect all firms that are ISO 9000 certified so that they can partner with each other on future projects.
D) to be used as a decision making tool when evaluating the best facility locations and layouts.

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

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In a just-in-time inventory system,the producer holds large quantities of the materials and components used in the production process in its inventory to ensure that it always has enough on hand.

A) True
B) False

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A key element of the statistical quality control SQC)process is the reliance on quality control experts to inspect at the end of the production line to make sure that no defective products are shipped to final customers.

A) True
B) False

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A just-in-time inventory system usually reduces costs for:


A) both the producer and its suppliers.
B) suppliers,but not the producer.
C) the producer,but not its suppliers.
D) neither the supplier nor the producer,though it does lead to more flexibility for both.

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

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Service businesses know that in order to delight customers they must be able to anticipate their needs.

A) True
B) False

Correct Answer

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A small hospital in a suburb of a large metropolitan area wants to further develop its operations and services in order to compete with other hospitals in the region.In analyzing the criteria for making this happen,location is a primary concern.If it constructs additional floors,it could increase the quality of a few services in its present location,but city regulations would require more parking.As it looks for new property,which of the following criteria would not be an important consideration for this facility?


A) Access to good roads and interstate system
B) Tax benefits
C) Skilled labor
D) Time to market

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

Correct Answer

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Education and training are less important to workers in the service sector than to workers who have jobs in the manufacturing sector.

A) True
B) False

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