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Manufacturing output in the U.S. continues to increase. The high unemployment of skilled workers who previously worked in the manufacturing sector _________________________.


A) is the result of untrained laborers.
B) is strictly a factor of U.S. manufacturing companies outsourcing the majority of their work.
C) can be reconciled by the fact that manufacturing is very efficient and requires fewer workers to produce the same amount, or even more output.
D) can be attributed to manufacturing going green.

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

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C

Lean manufacturing ___________ productivity.


A) increases
B) decreases
C) has no effect on
D) removes the need for added

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

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PERT is a popular technique for analyzing the tasks involved to complete a given project, estimating the time required to complete each task, and identifying the minimum time needed to complete the project.

A) True
B) False

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Courtney was planning a new product launch. She knew that the art department was ready to work on the promotional pieces now, but they couldn't start until the strategy group established the price point and the purchasing group obtained the paper needed to make the promotional piece. Establishing price points would take about a week and was dependent on manufacturing getting the costs to the strategy group. This was expected a week from today. The purchasing group indicated the paper could be obtained locally the same day it was requested. Assuming things go as planned and based on this information, when will the art department be able to begin work on the promotional pieces?


A) Immediately
B) 1 week
C) 2 weeks
D) 1 month

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

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Megatronics, Inc., obtains computer components from a variety of suppliers and puts them together according to customer specifications to create custom-made computers. This process is an example of:


A) an assembly process.
B) process manufacturing.
C) synthetic production.
D) continuous production.

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

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Casper is in charge of a complex project. He wants to see how all the different activities involved in completing the project are related to each other. One way to illustrate these relationships would be to construct a PERT chart.

A) True
B) False

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___________ is a computer application that enables a firm to combine computerized functions of all divisions and subsidiaries of the firm into a single, integrated software program that uses a single database.


A) Materials requirement planning (MRP)
B) PERT analysis
C) Manufacturing resource planning (MRP II)
D) Enterprise resource planning (ERP)

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

Correct Answer

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Modern companies tend to deal with many different suppliers in order to avoid problems that can arise when one supplier is unable to provide needed parts or materials.

A) True
B) False

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To strengthen its manufacturing base, the U.S. will need to continue to innovate.

A) True
B) False

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Actually, it is much easier to custom-design service programs than it is to custom-make goods.

A) True
B) False

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A process manufacturing layout is frequently used in operations that serve different customers' different needs.

A) True
B) False

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In a PERT network, a critical path is the sequence of tasks that takes the longest time to complete.

A) True
B) False

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According to the Making Ethical Decisions box titled "Do We Stay or Do We Go?" by law a firm must give employees 60 days' notice of a facility or plant closing.

A) True
B) False

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Andre is an outdoorsman whose love of hunting and fishing led him to start an e-tail company specializing in hunting and fishing gear. He decided to locate his business near the Ozarks in southwestern Missouri, partly because of low labor costs, but mainly because the area offered excellent fishing and hunting opportunities, a low crime rate, and a pleasant climate. Ken's location decision was strongly influenced by quality of life considerations.

A) True
B) False

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New developments in information technology have:


A) had little effect on business location decisions.
B) given firms even greater flexibility in their location decisions.
C) caused a movement of firms back to urban areas where access to this technology is greatest.
D) reduced the impact government policies have on location decisions.

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

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Frolichstein Fabrics promotes itself as a specialty manufacturer that will produce according to customer specifications. This firm will probably be best served by using an intermittent process in production.

A) True
B) False

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__________ has transformed the purchasing function in recent years by helping firms find the best suppliers and the best prices.


A) PERT
B) The Internet
C) CAD/CAM
D) QFD

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

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In a modular manufacturing layout teams of workers combine to produce more complex units.

A) True
B) False

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True

______________ means tailoring products to meet the needs of a large number of individual customers.


A) Mass customization
B) Mass production
C) Competing in time
D) Feedback response production

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

Correct Answer

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If a company achieves Six Sigma quality standards, they automatically win the Malcolm Baldrige award.

A) True
B) False

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False

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