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Exam 9: Production and Operations Management

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Question 121

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For many firms,operations management has become an interfirm process.

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B) False

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Question 122

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ISO 14000 is a new set of product quality standards that has replaced the old ISO 9000 standards.

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Question 123

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Star Performance,Inc.a sporting good company and Fairview Community College are interested in following the lead of other companies and implement criteria that will lead toward receiving the Baldrige Award.As their advisor,you emphasize that focusing on the measurement of customer satisfaction is one important area where both will need to excel.

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

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

Materials requirement planning relies on the firm's balance sheet to make sure that the right quantities of finished goods are produced.

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." -The equipment and software Sparky wants to acquire will allow the computers used to design motors to be linked directly to the computer-aided equipment on the factory floor.Sparky is proposing to set up a(n) :

Operations management moves from knowing the needs of consumers to actually satisfying those needs.

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

PERT is a popular control method used by organizations.Explain the purpose of PERT analysis,and describe the steps involved in constructing a PERT network.Your explanation should include a discussion of the significance of the critical path in a PERT network.

The U.S.is still manufacturing intensive.Only 25% of U.S.jobs come from the service sector.

Many state and local governments offer tax incentives and government services to attract businesses.

While going through the line at the local grocery store,the clerk asks you if you found everything you needed,as she continues to scan the goods you are planning to purchase.At the end of the scan,a coupon emerges that you can use on future purchases of a product you have just purchased.In reviewing the key concepts from Chapter 9,you would consider this action,the store's management of its labor.

ERP software enables multiple firms to manage all of their operations on the basis of a single,integrated set of corporate data.

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.

The main objective of lean manufacturing is to:

CAD systems allow designers to work in three dimensions.

Solarsys Aeronautics was awarded a contract to build a large lab module that will be attached to a new space station.The module is approximately 48 feet long,17 feet in diameter,and weighs over sixty tons.Solarsys should use an assembly line plant layout to produce this module.

Wild Bill's Cap Emporium offers to produce hats and caps according to customers' requests.Wild Bill's utilizes a(n) :

One key to the resurgence of U.S.firms as world-class competitors has been the implementation of a focus on quality.