124. A computerized system that integrates production planning and inventory control is called
a. computerized inventory management.
b. just-in–time record keeping.
c. materials requirements planning.
d. support inventory control.
e. inventory control management.
125. The just–in–time inventory system focuses on minimizing
a. scheduling.
b. materials resource planning.
c. stock-out costs.
d. customer complaints.
e. storage and holding costs.
126. Harley-Davidson employs a method of inventory control demanding that suppliers deliver parts and raw materials to
Harley’s production facility just as they are needed and in exactly the right amounts. This type of inventory control
is known as
a. purchase planning.
b. flexible manufacturing.
c. just–in-time inventory control.
d. PERT.
e. supplier-based inventory control.
127. Arbach’s responsibility is to ensure that materials used in production are at the right place at the right time. His job
involves
a. quality control.
b. lead time planning.
c. operational planning.
d. scheduling.
e. design planning.
128. As a scheduler, Wanda is concerned with the sequence of workstations that the materials will follow. This
sequencing is called
a. product flow.
b. critical path.
c. inventory control.
d. routing.
e. timing.
129. The function specifies when the materials will arrive at each station and how long they will remain there.
a. routing
b. timing
c. efficient manufacturing
d. tactical
e. analysis
130. To ensure that work flows according to schedules, operations managers use a procedure called
a. cycle control.
b. equilibrium control.
c. inspection.
d. monitoring and evaluation.
e. follow-up.
131. The is an award given by the president of the United States to organizations that apply and are judged to be
outstanding in specific managerial tasks.
a. Total Quality Management Award
b. Malcolm Baldrige National Quality Award
c. Boeing Productivity Award
d. National Quality Circle Award
e. Horatio Alger Award
132. The process of checking and testing products to ensure that they meet specifications is called
a. inventory control.
b. quality control.
c. quality inspection.
d. assurance.
e. check pointing.
133. Sarah regularly spends an entire working day ensuring that goods and services are produced in accordance with
design specifications. Obviously is important in her company.
a. product design
b. design planning
c. quality control
d. inventory control
e. operations control
134. The examination of work in process for the purpose of controlling quality is called
a. quality control.
b. inspection.
c. inventory control.
d. quality circle.
e. product design.
135. Thad is in charge of examining the quality of work in process at a furniture factory. Thad’s duty is referred to as
a. inventory control.
b. process control.
c. critical review.
d. designing.
e. inspection.
136. Companies that emphasize the importance of output inspection and quality circles are making an effort to improve
a. production standards.
b. operations control.
c. inventory control.
d. preventive maintenance.
e. quality control.
137. 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.
138. is a disciplined approach that relies on statistical data and improved methods to eliminate defects from a
firm’s products and services.
a. Six Sigma
b. Quality Magic
c. The National Quality Program
d. The Total Management Program
e. Employee Participation Now Program
139. Deborah works for Northrop Grumman Corporation. She is assigned to a group of employees who work on solving
quality issues the company is facing. Deborah participates in a(n)
a. quality circle.
b. employee group.
c. total quality management program.
d. inspection control group.
e. quality review committee.
140. 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.
141. Which of the following statements is false?
a. Quality and productivity have often been viewed as conflicting goals.
b. Over the years, a number of managers have realized that quality is an essential ingredient of the good or
service being manufactured.
c. Quality has become an overall approach to doing business.
d. For most businesses, quality costs too much money.
e. Making products right the first time reduces many of the rejects and much of the rework.
142. Which of the following statements is true?
a. ISO is Greek for “unacceptable.”
b. ISO 9000 sets guidelines for quality management procedures.
c. ISO 9000 is accepted more in Japan than in the United States or Europe.
d. ISO 14000 is a system used to notify customers who have purchased unsafe products from manufacturers in
foreign nations.
e. Although ISO 9000 was popular in the early 1990s, it has been replaced with ISO 20000.
143. What is the primary difference between ISO 9000 and ISO 14000?
a. More organizations have adopted ISO 14000.
b. ISO 9000 is more focused on employee compensation.
c. ISO 14000 involves environmental concerns.
d. ISO 9000 is used only in Europe; ISO 14000 is used worldwide.
e. ISO 14000 is used for service businesses instead of manufacturers.
144. Productivity is the
a. highest level of output for the best worker.
b. average level of output per worker.
c. lowest level of output for all hourly workers.
d. average level of output for workers with at least five years of experience.
e. average level of output for a randomly selected group of employees.
145. Which of the following is not a possible cause of only a small increase in America’s recent productivity growth
rate?
a. The economic crisis in banking and finance
b. A downturn in home construction and automobile industries
c. Increased investment in new equipment
d. Increased government regulation
e. The tremendous growth in the service industry
146. The American petroleum refining industry has experienced serious productivity declines in the past several years. If
the industry is to reverse this trend, companies such as Chevron and ExxonMobil, in addition to the government,
must take an active role in stimulating productivity. All of the following represent ways to improve productivity
except
a. change in government policies that hinder productivity.
b. participative management.
c. changing work incentives.
d. increased government regulation.
e. improved relations between union and management.
147. The Motorola Corporation has begun a program that promises to improve employee motivation. This is an example
of a way to productivity.
a. decrease
b. retard
c. increase
d. eliminate
e. stifle
148. 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.
149. Jennifer is a manager in a circuit manufacturing plant. A portion of the production process is extremely tedious and
repetitive, and employees tend to become bored and careless when performing this task. What alternative could
make this repetitive task quicker and less susceptible to error?
a. Quality circles
b. Computer-aided design
c. Flexible rotation
d. Robotics
e. Automated process control
150. 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
151. 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
152. 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
153. Deere and Company, the maker of John Deere tractors, was one of the first firms to combine robotics and
computer–integrated manufacturing. By doing this, it achieved more efficiently utilized facilities and greater
flexibility in production. The method of production that has given Deere these tremendous improvements in
operations is known as
a. just-in–time inventory management.
b. flexible manufacturing.
c. PERT.
d. short cycle manufacturing.
e. Theory Z.
154. All the activities managers engage in to produce goods and services are called operations management.
a. True
b. False
155. 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
156. After World War II, the United States became the most productive country in the world.
a. True
b. False
157. In order to compete in the global economy, U.S. firms have focused on increasing prices and improving the bottom-
line profit amount.
a. True
b. False