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Exam 9: Production and Operations Management

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Question 151

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

A) True
B) False

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Question 152

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Justin is a project manager for a large defense systems company. Each contract for sophisticated weaponry requires the cooperation of several firms. Each time Justin begins a new project, he reviews what it takes to successfully complete a project. Which of the following would not constitute one of his goals?

A) He wants to meet the demands of the customer's contract with respect to the kind of product the customer wants and how soon they need it
B) He wants the product to achieve the quality level expected by the customer
C) He wants his company to be the lead company and maintain a leadership position in all aspects of the project to project a strong image to the customer
D) He wants to work within the costs budgeted for this project

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

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Question 153

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

Superior Supplies' largest customer recently implemented a just-in-time inventory system. As a supplier of materials to this customer, Superior will:

Six sigma is a quality measure that allows only 3.4 defects per million opportunities.

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.

CAD systems allow designers to work in three dimensions.

Facilities layout will depend upon the processes that are to be accomplished in the firm's operation.

For service intensive businesses, facility layout is usually designed to centralize the decision-making process.

Alice's Cookie Company makes a variety of cookies for corporate accounts and restaurants. On a good day, the orders can range from 600 - 800 cookies, with a variety of uniqueness, although the company is known for delicate shortbread and butter cookies. Some cookies have round shapes, but other are elongated rectangles, and yet others are triangles. The bakers can quickly change the cookie cutting machine to reflect the orders for the day, while computers program the ovens to make those cookies the light golden color they are known for across town. Refrigeration is also computer controlled. Alice's Cookie Company embraces flexible manufacturing and mass customization.

Operations management planning is concerned with finding the ideal location for a business and also with materials requirement planning. It leaves decisions about purchasing and inventory control to marketing.

Flexible manufacturing systems use machines that are designed to do a multitude of tasks so that they can produce a variety of goods.

Both PERT diagrams and Gantt charts are useful to managers concerned with:

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." -Sparky knows that installing the new equipment and training workers to use it efficiently will be a long and complex process consisting of many different tasks. Which of the following methods would help him determine how long this project is likely to take?

Operations management is a specialized area in management that converts resources into:

Operations management becomes a(n) when companies outsource several processes and create a network of firms that cooperatively produce products and services.

Most new manufacturing facilities use:

In service industries such as hotels, quality management training is important to ensure that all employees are "certified" in their positions.

The first step in the PERT method is to assign a cost to each activity.

The 2008 recession greatly affected the state of manufacturing in the U.S., resulting in a slow down in production and the loss of jobs.