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Quality circles have been used successfully to solve product defect problems in firms.

A) True
B) False

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Statistical quality control (SQC) is concerned with only the quality of a firm's finished products.

A) True
B) False

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Increased business investment in facilities and equipment usually results in lower employee productivity.

A) True
B) False

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An industrial company contacts Caterpillar to design a specific type of equipment for use in its manufacturing facility.If Caterpillar accepts this offer, the two companies will have to create a set of specifications from which the product can be made.This process is called


A) a product line.
B) development and implementation.
C) design planning.
D) product design.
E) capacity planning.

F) A) and B)
G) B) and E)

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All of the following are steps in PERT except


A) assigning the proper personnel to workstations.
B) identifying all of the major activities.
C) arranging events in a sequence.
D) identifying the critical path.
E) estimating the time required for each activity.

F) A) and B)
G) All of the above

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When manufacturing a product like a computer or an automobile, planning takes place both before anything is produced and during the production process.

A) True
B) False

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Nancy Malone works for a computer manufacturer.According to Nancy, the time required to develop a new product has decreased because of the increased use of ____ software.


A) CAB
B) CAD
C) CAP
D) CAM
E) FMS

F) C) and D)
G) A) and B)

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A group of design engineers for Ford Motor Company spend two months in the summer in the Arizona desert researching fuel performance at extreme temperatures.Ford uses the results of these tests to improve the quality of its automobiles.The group of engineers is engaging in


A) applied research.
B) product design.
C) basic research.
D) design planning.
E) horizon planning.

F) A) and B)
G) A) and C)

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Robotics is the use of programmable machines to perform a variety of tasks by manipulating


A) people and machines.
B) machines and tools.
C) materials and people.
D) materials and tools.
E) tools and financing.

F) A) and E)
G) B) and E)

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ABC Company ABC Company is dedicated to operations control.It holds its suppliers to the highest standards, believing there is one best way to complete their tasks.ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business.Following these criteria has allowed the company to grow from a small business to a large corporation.ABC plans on going international in the next couple of years to broaden its scope. ABC has kept up with new technologies.In fact, it has incorporated a new computer system that helps with the development of the company's products.This system has improved ABC's production dramatically.Now, ABC will be able to sell its products at a lower cost.The ABC management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future. -Refer to ABC Company.The supplier must have ____ in order to be the best possible option and do business with ABC.


A) marketing operations
B) productivity growth
C) technological displacement
D) Reliability
E) R&D

F) A) and E)
G) B) and E)

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After World War II, the United States became the most productive country in the world.

A) True
B) False

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A hardware manufacturer uses total quality management and quality circles to ensure that all employees are involved with and are responsible for quality.By doing this, the hardware manufacturer can eliminate the need for


A) quality control.
B) inspection.
C) scheduling.
D) supervisors.
E) materials requirement planning.

F) None of the above
G) A) and B)

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A product layout is often referred to as a(n)


A) fixed-position layout.
B) output layout.
C) fixed capacity.
D) work-cell formation.
E) assembly line.

F) B) and C)
G) A) and E)

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Abram is excited because he has just signed an agreement to purchase steel frames from a company at an excellent price and of very high quality.Once the contract begins, Abram eagerly awaits the first shipment, but it arrives a month behind the agreed-upon schedule, which slows down production at the plant.Abram is furious because he realises too late that this supplier


A) produces poor quality.
B) has bad credit terms.
C) is unreliable.
D) is not as inexpensive as he thought.
E) is unscheduled.

F) C) and D)
G) D) and E)

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The number of customers that an Outback Steakhouse can serve at one time is the restaurant's


A) capacity.
B) product line.
C) scope.
D) size.
E) service refinement.

F) B) and D)
G) B) and E)

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The Acme Toy Company introduced a new electric train, the Silver Bullet, in its Christmas catalogue last year.Within four days of the catalog's mailing date, Acme had received phone orders for its entire inventory of trains.Edmundo Murrah, the sales manager responsible for the Silver Bullet, was delighted with the product's success.However, his excitement was overshadowed by the ____ cost resulting from lost sales that his division would suffer.


A) variable
B) stock-out
C) opportunity
D) fixed
E) holding

F) A) and E)
G) All of the above

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ABC Company ABC Company is dedicated to operations control.It holds its suppliers to the highest standards, believing there is one best way to complete their tasks.ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business.Following these criteria has allowed the company to grow from a small business to a large corporation.ABC plans on going international in the next couple of years to broaden its scope. ABC has kept up with new technologies.In fact, it has incorporated a new computer system that helps with the development of the company's products.This system has improved ABC's production dramatically.Now, ABC will be able to sell its products at a lower cost.The ABC management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future. -Refer to ABC Company.Given that ABC is dedicated to operations control, the management must have incorporated all of these aspects of operations control except


A) purchasing.
B) selling.
C) inventory control.
D) scheduling.
E) quality control.

F) C) and E)
G) A) and C)

Correct Answer

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A team of engineers at General Motors is in charge of discovering new knowledge that can be used to make automobiles safer and more economical.These engineers are conducting


A) basic research.
B) research and development.
C) applied research.
D) product development.
E) research and implementation.

F) A) and D)
G) D) and E)

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Jasper Electronics, Inc. Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products.Currently, the company has eight locations.It prides itself on its fast production process.Ross is the newly appointed head operations manager of the company-and he is hoping to contribute to the company in a meaningful way.Ross has decided that there are several aspects of the production process that need to be changed or improved.One such aspect is quality control.He also wants to do some research to decide whether the company is moving in the right direction.In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI. -Refer to Jasper Electronics, Inc.As an operations manager, Ross must do all of the following to be successful except


A) motivate and lead people.
B) understand how technology can make a manufacturer more productive and efficient.
C) appreciate the control processes that help lower production costs and improve product quality.
D) understand the relationship among the customer, the marketing of a product, and the production of a product.
E) understand how to successfully finance production to gain the larger market share.

F) A) and C)
G) A) and B)

Correct Answer

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A process layout is used when all products undergo the same operations in the same sequence.

A) True
B) False

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