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Contemporary producers and their suppliers,


A) locate in areas where they can share the same labor.
B) know that it is not necessary to locate close to international customers due to technology such as the Internet.
C) locate close together to decrease the cost of distribution.
D) have advanced beyond ERP to more sophisticated systems.

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In an assembly line manufacturing layout workers do only a few tasks at a time.

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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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Reviewing the PERT Network below: If it takes 2 weeks for each activity (represented by a box)to be completed,it can be determined that the boxes labeled with No.1 create the critical path because this path of activities takes the shortest time to complete.

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According to the Making Ethical Decisions box,titled,"Stay or Leave?",a firm must give its employees _______________ before closing and/or moving to another location.


A) bonuses equal to 1½ times their regular monthly pay
B) 2 weeks notice
C) a golden handshake
D) 60 days notice

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At Stevens Manufacturing workers are organized in teams that combine their efforts to produce complex units of a final product.Stevens is using a facility layout known as a(n) :


A) consolidated process layout.
B) continuous flow layout.
C) modular layout.
D) assembly team layout.

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Which of the following statements about operations management in the service sector is most accurate? Operations management in the service sector:


A) is all about providing the service at the lowest cost.
B) should focus on providing customers with a good experience.
C) has less flexibility than operations management in the manufacturing sector,because services are not technology driven.
D) has done a good job of increasing output,but a poor job of improving quality.

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

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Telecommuting has diminished in popularity as a strategy for linking employees with work.

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The main idea in the Making Ethical Decisions box,"Stay or Leave?" indicates:


A) a need for firms to place a higher level of importance on time to market when choosing facilities locations.
B) that the goal of finding the lowest cost location should never be overshadowed by other concerns if the firm is to remain loyal to its stockholders.
C) that many locations do not meet ISO 14000 standards.
D) a need for firms to consider the economic impact of its existence and/or departure from a particular location.

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Experts in operations management for service industry type businesses stress:


A) using records from accounting to determine what business to go after.
B) relying on one's individual operation as opposed to developing partnerships.
C) training employees on quality management.
D) training employees to always adhere to only one way of doing things.

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In recent years,operations management has become more focused on providing services,because that is where the growth and profit potential is greatest.

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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 break downs that occur when operating with an enterprise resource planning system.

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Retailing is one area where technology is unlikely to make a big difference in how services are provided.

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

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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

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

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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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Marilyn's Travel Inc.is a medium-sized travel agency that specializes in vacation packages.It has packages available around the globe-everything from cruises,to beach resort vacations,to historical tours.The customer chooses the amount they would like to pay,the area of the world they would like to visit and what they would like to do.Based on this information Marilyn's Travel uses __________ to delight the customers.


A) excellent human resources management
B) the Internet
C) mass customization
D) lean manufacturing

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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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