158. To regain market share, many American firms have lowered quality standards.
a. True
b. False
159. An analytical process breaks raw materials into different component parts.
a. True
b. False
160. Texaco uses a synthetic process when it refines crude oil.
a. True
b. False
161. A synthetic process combines raw materials or components to create a finished product.
a. True
b. False
162. Form utility is created by converting raw materials, people, finances, and information into finished products.
a. True
b. False
163. The major resource or resources that comprise the major input for a conversion process is often referred to as the
focus.
a. True
b. False
164. The term magnitude is used to describe the number of production processes that are used to produce products or
services.
a. True
b. False
165. A service economy is one in which more effort is devoted to the production of goods than to the production of
services.
a. True
b. False
166. The goal of applied research is scientific advancement, without regard for its potential uses in the development of
goods and services.
a. True
b. False
167. Development and implementation are research activities undertaken to put new or existing knowledge to use in
producing goods and services.
a. True
b. False
168. Product extension and refinement are expected results of a firm‘s development and implementation effort.
a. True
b. False
169. Operations managers refer to the development of a plan for converting a product idea into an actual product as
design planning.
a. True
b. False
170. Deciding on the product line involves balancing customer preferences and production requirements.
a. True
b. False
171. The amount of products or services an organization can produce in a given time is known as its capacity.
a. True
b. False
172. Capacity to a service business means something completely different from capacity to a production business.
a. True
b. False
173. A labor-intensive technology is one in which people must do most of the work.
a. True
b. False
174. Automation is characterized by low initial costs and high operating costs.
a. True
b. False
175. When machines and equipment do most of the work in a manufacturing plant, it is referred to as a mechanical-
intensive process.
a. True
b. False
176. An auto repair shop is an example of a fixed-position layout.
a. True
b. False
177. A process layout is used when all products undergo the same operations in the same sequence.
a. True
b. False
178. An assembly line at a Rubbermaid production facility is an example of a product layout.
a. True
b. False
179. A common planning horizon for operational plans is one year.
a. True
b. False
180. The objective of purchasing is to ensure that required materials are available when they are needed, in the proper
amounts, and at minimum cost.
a. True
b. False
181. In supplier selection, the main idea is to find the highest-quality materials available.
a. True
b. False
182. Purchasing personnel need not worry about a tiny difference in price when a large quantity is being bought.
a. True
b. False
183. Purchasing personnel should check the reliability of potential suppliers as well as suppliers’ ability to meet delivery
schedules.
a. True
b. False
184. Materials that will become part of a product during the conversion process are called raw materials.
a. True
b. False
185. The process of managing inventories to minimize both holding costs and potential stock–out costs is called inventory
control.
a. True
b. False
186. The cost of running out of inventory is referred to as a holding cost.
a. True
b. False
187. Since computers have been invented, materials requirements planning (MRP) is an outdated method of controlling
inventory.
a. True
b. False
188. When a company successfully applies the just-in–time system, it minimizes its inventory storage costs.
a. True
b. False
189. The responsibility for monitoring schedules to ensure that the work flows according to schedule is called follow–up.
a. True
b. False
190. Quality control is the process of ensuring that materials are at the right place at the right time.
a. True
b. False
191. The major objective of quality control is to see that the organization produces no imperfect products.
a. True
b. False
192. When firms use inspection to monitor quality, only the finished product is examined for defects or potential
problems.
a. True
b. False
193. Quality circles have been used successfully to solve product defect problems in U.S. firms.
a. True
b. False
194. When compared to total quality management, Six Sigma often has more top–level support, more training for
employees, and more teamwork.
a. True
b. False
195. Since ISO 9000 quality standards were developed in Switzerland and affect only European firms, they don’t apply to
firms in the United States doing business in Europe.
a. True
b. False
196. Productivity is a measure of output per unit of time per worker.
a. True
b. False
197. According to management experts, increased government regulations have increased productivity among American
workers.
a. True
b. False
198. Increased business investment in facilities and equipment usually results in lower employee productivity.
a. True
b. False
199. Robots are especially effective in carrying out creative tasks and assignments.
a. True
b. False
200. CAD stands for “computer-assisted development programs.”
a. True
b. False
201. FMS (an abbreviation from this chapter) stands for Ford Motor Systems.
a. True
b. False