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____ consist(s) of goods that are awaiting shipment to customers.


A) Raw-materials inventory
B) Work-in-process inventory
C) Finished-goods inventory
D) Supplies
E) Controlled inventory

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

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Which of the following is not one of the steps in operational planning?


A) Adjusting products or services to meet demand
B) Designing new products or services
C) Selecting a planning horizon
D) Comparing market demand with capacity
E) Estimating market demand

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

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Statistical process control is a system that plots data on control charts and graphs to identify and pinpoint problem areas.

A) True
B) False

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During the design planning stage for its new appliances, Torr, Inc. needs to determine how many different product variations there will be. This is the same as determining the product


A) features.
B) life cycles.
C) line.
D) prices.
E) availability.

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

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To regain market share, many American firms have lowered quality standards.

A) True
B) False

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Nancy Malone works for a California-based 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) B) and E)
G) A) and E)

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Technology that is characterized by low initial costs and high operating costs is termed


A) a quality circle.
B) capital-intensive.
C) an industrial installation.
D) labor-intensive.
E) a process layout.

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

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Capacity to a service business means something completely different from capacity to a production business.

A) True
B) False

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An assembly line at a Rubbermaid production facility is an example of a product layout.

A) True
B) False

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American major appliance manufacturers have recently adopted a strategy that calls for better quality in their products. One method of implementing this strategy at the operations level is through


A) innovation circles.
B) a Gantt chart.
C) PERT.
D) quality circles.
E) another layer of resourceful managers.

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

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The television has undergone numerous changes since its introduction. For example, Sony produces basic color televisions and also such innovative electronics as televisions with Blue-Ray players and Internet streaming. This sort of product evolution is referred to as product


A) extension.
B) design planning.
C) differentiation.
D) integration.
E) expansion.

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

Correct Answer

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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) D) and E)
G) A) and B)

Correct Answer

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When different sequences of operations are required for creating small batches of different products, the type of design or layout used is the


A) product design.
B) product layout.
C) process layout.
D) quota layout.
E) output layout.

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

Correct Answer

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Liz Claiborne, Inc. has a system that combines the use of computers to aid in the development of products and the use of computers to plan and control manufacturing processes. What is this combined system called?


A) Computer-aided design
B) Computer-integrated manufacturing
C) Flexible marketing
D) Computer-aided manufacturing
E) Computer robotics

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

Correct Answer

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Phil Johnson is the owner of a small firm that manufactures customized oil-drilling equipment. The company's manufacturing facility is organized into a fabrication section, a heat treatment section, a welding section, and a quality control section. This type of plant layout is referred to as a(n) ____ layout.


A) product
B) pooled manufacturing
C) assembly-line
D) group manufacturing
E) process

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

Correct Answer

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All of the activities involved in obtaining required materials, supplies, and parts from other firms are called


A) inventory scheduling.
B) purchasing.
C) operational planning.
D) scheduling.
E) product design.

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

Correct Answer

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Automation is characterized by low initial costs and high operating costs.

A) True
B) False

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A set of activities intended to identify new ideas and technical advances that may result in new goods and services is called


A) research and development.
B) operations management.
C) design planning.
D) product design.
E) horizon planning.

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

Correct Answer

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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. For ABC, using the Baldrige award criteria could result in all of the following except


A) form utility.
B) better employee relations.
C) increased market share.
D) improved profitability.
E) higher productivity.

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

Correct Answer

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FMS allows a company to combine ____ into a single system.


A) people and robotics
B) robots and digital personal computers
C) robotics and computer-integrated manufacturing
D) people and materials
E) robots and materials

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

Correct Answer

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