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Exam 9: Production and Operations Management

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Question 81

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A major trend in business is , where employees work at least part time at home using a computer and modem.

A) outsourcing
B) riveting
C) outbounding
D) telecommuting

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

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Question 82

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Only firms in the manufacturing sector can create true form utility.

A) True
B) False

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Question 83

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The ability to integrate computers into the design and manufacture of products has had the greatest impact on production techniques in recent years.

Mass production techniques allowed firms to respond quickly to the individual needs of consumers.

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.

MRP is a technique that helps managers:

To reduce the cost of holding too much inventory, many companies have implemented:

Jamal, an operations manager for a product manufacturer accepted an operations position with a company that produces a service. Jamal will find that operations management at the new job is significantly different from operations management at the old firm.

Perry manages an X-ray imaging services clinic housed adjacent to a large hospital in a major metropolitan area. Although customers are regularly surveyed to determine the level of service they perceive to be receiving, Perry finds it difficult to determine if the clinic is providing the level of service which would qualify it as an ISO 9000 firm. He explains that the volume of patients requiring urgent care on some days is more acute than on other days. He is confident that the staff is providing the same level of quality on busy days, but surveys indicate that patients do not particularly rate their clinic experience as particularly good on those days. He expects this dilemma because he understands from his recent business class that service companies find it challenging to provide the same high level of service all the time.

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.

One drawback of intermittent production processes is that they tend to be much slower than continuous processes.

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

Operations management in service industries is about creating a good experience for the customer.

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:

The purchasing function involves searching for quality resources and finding the best suppliers as well as negotiating the best price for the needed items.

A bar graph that shows what projects or tasks are in process and how much of each is completed is called a(n) :

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:

MRP is the acronym for:

Manufacturing companies are concerned with production management, while service companies are concerned with operations management.

involves computers directly in the production process.