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Firms that satisfy the ISO 9000 and ISO 14000 standards have demonstrated a world-class management system in both quality and environmental standards.

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The main objective of lean manufacturing is to:


A) keep labor costs as low as possible by expanding the use of other resources.
B) produce products that have fewer frills and options in order to simplify the production process and keep costs as low as possible.
C) produce goods using less of all types of resources.
D) get state and local governments to handle many of the tasks currently performed by the firm.

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When it comes to location decisions, labor costs are no longer an important consideration for most manufacturing firms.

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Firms often use a(n) _____________ when working on a major project involving the production of a large item such as an airplane, ship, or bridge.


A) assembly line layout
B) continuous production process
C) fixed-position layout
D) process manufacturing technique

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Compared to PERT networks, Gantt charts provide a more basic way to track progress on a given project.

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In recent years, the service sector of the U.S. economy has:


A) grown much more rapidly than the manufacturing sector.
B) become the low-wage sector of the U.S. economy.
C) achieved extremely high productivity gains according to government reports.
D) focused less on quality and more on reducing costs of production.

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Process manufacturing refers to combining components and raw materials to make a product.

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The concept "Just-In-Time" (JIT) works well if a company works with lots of suppliers. It also helps avoid the breakdowns that occur when operating with an enterprise resource planning system.

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When a company has the ability to produce the same amount of goods with only half the floor space and half the labor that it used in the past, the firm is practicing flexible manufacturing.

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The Deming Cycle approach to quality control consists of: Plan, Do, Check, Act.

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In order to determine overall progress on her current project, production manager Michelle often refers to a bar graph that shows what activities are being worked on, and how much of each task has been completed on a daily basis. Michelle is using a Gantt chart.

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One way to compete with cheap labor is to use robots.

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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 60 tons. Solarsys should use an assembly-line plant layout to produce this module.

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As businesses strive for market expansion, companies add to their sales force, but opt to eliminate sales offices across the nation and internationally. How are these firms able to remotely operate a sales force that contributes toward increasing the bottom line?


A) A sensible strategy is to transport sales professionals to the world headquarters on a bi-weekly basis.
B) The business strategically moves manufacturing facilities to low-cost areas and allocates more funds toward the sales professionals to meet face-to-face with management.
C) The operation is maintained with an advanced MRP system.
D) The operation is managed with teleconferencing information technology, and telecommuting.

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____________ examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and correct any variances from desired quality levels.


A) CAD/CAM
B) Econometrics
C) Analysis of variance
D) Statistical process control

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Companies that employ lean manufacturing and flexible manufacturing produce better quality products, but have costlier production lines.

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Which of the following statements best describes the impact of recent advances in information technology on business location decisions?


A) Advances in information technology give firms a greater incentive to locate near big cities, because that is where they can take full advantage of these advances.
B) Western states tend to benefit the most from improvements in information technology, because most states in this region have invested heavily in Internet technology.
C) Advances in information technology will have no real effect on location decisions.
D) Advances in information technology will give firms more flexibility in their location decisions by reducing the need to locate close to sources of labor.

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The process layout simplifies production by using the same sequence of processes regardless of the design of the item being produced.

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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 to be the store's management of its labor.

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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.

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