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Exam 9: Production and Operations Management

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Question 21

True/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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Question 22

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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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Question 23

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Which of the following statements is most accurate?

Last week John got a call from his contact,Eric at Alpine Telecomm in Switzerland,one of his company's largest international customers.As Eric put it,"This is a heads-up! Top management is asking operations to review our vendor's for ISO 14000 compliance." John's company should prepare to demonstrate:

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." -One of Sparky's goals is to expand globally.He is most interested in doing business with the nations of the European Union.In order to do business with the European Union,Sparky's company should:

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

IMPUZZLED! Corporation produces jigsaw puzzles.The quality of its materials and the calibration of machines that cut and fit pieces of a puzzle are extremely important if it is to eliminate defects and meet customer specifications.If the company meets or exceed Six Sigma criteria,it will have no more than 60 defects per million puzzles.

In an effort to improve the quality control process at the Southern Peanut Corporation,management is introducing the importance of the Deming Cycle to employees.This suggests that managers are aware of the need to find potential problems before they occur.

Overall,American firms that have tried to use just-in-time inventory systems generally report disappointment with the results.

You can now put your own photo on a credit card.You can design your own jeans online and have them sent to you in a few days.Dr.Scholl's™ now features kiosks where you can create your own orthotics to fit inside your shoes.These are examples of the trend toward _______.

Marci Costas is majoring in operations management at Brunau University.Unfortunately,the evolution of the U.S.from a manufacturing-oriented to a service-oriented economy means that Marci will probably find few job openings in her field of study.

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.

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.

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

Mountain High Custom Bikes,Inc. ,recently streamlined processes in the assembly plant.Its new computer system sends orders directly to the assembly floor,and also delivers the right parts to the same location within five minutes of the time the order reaches the assembler.There is no paper used in this process.All documentation and confirmation of completion and testing is documented through the computer system.The elimination of wasteful time and paper waste is the company's effort to develop its commitment to _______________.

The production process requires inputs,controls,and outputs.

So far,the high cost of CAD/CAM techniques has limited their use to large,expensive manufactured goods such as automobiles.

Trace and Tim own a company that rehabs old houses.Prior to buying a house,they use software to create and design the renovation of each room.The program provides them with an estimation of how much of each kind of material is needed,and the orderly progression of tasks that need to be completed.Trace and Tim use computer-aided design.

Today manufacturers are relying more heavily on:

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?