246. (p. 245) __________ is the physical arrangement of resources in the production process.
D. RRL
247. (p. 245) For services, the facility layout is usually designed to:
D. facilitate a centralized decision-making process.
248. (p. 246, figure 9.2) Firms often use a(n) _____________ when working on a major project involving the
production of a large item such as an airplane, ship, or bridge.
A. assembly line layout
249. (p. 246, figure 9.2) Unlike an assembly line where workers perform only a few tasks, in a _________ layout,
teams of workers combine to perform a variety of tasks needed to produce more complex units of a final
product.
D. cluster
250. (p. 246, figure 9.2) In manufacturing, a __________ is used to produce large quantities of a few types of
D. fixed-position layout
251. (p. 246, figure 9.2) In manufacturing, a __________ is frequently used in operations that serve different
customers’ different needs.
D. fixed-position layout
252. (p. 246, figure 9.2) An example of a __________ is building a new home on a lot.
A. product layout
253. (p. 245-246, figure 9.2) In a modular manufacturing layout:
D. workers can congregate around the product to be completed.
254. (p. 246) MRP is a technique that helps managers:
A. develop a reliable sales forecast.
255. (p. 246) MRP stands for:
256. (p. 246) MRP results are based on information provided by:
257. (p. 247) ___________ is a computer application that enables multiple firms to manage all of their operations
on the basis of a single, integrated set of corporate data.
A. Materials requirement planning (MRP)
258. (p. 247) __________ is the function in the firm that searches for quality material resources, finds the best
suppliers, and negotiates the best price.
A. Marketing
259. (p. 247) __________ has transformed the purchasing function in recent years by helping firms find the best
suppliers and the best prices.
D. QFD
260. (p. 247) Today manufacturers are relying more heavily on:
D. developing an MRP system for purchasing.
261. (p. 247) With the __________ inventory control system, producers hold a bare minimum of parts and
materials in storage.
A. ABC
262. (p. 247) To cut storage costs, many companies have implemented:
263. (p. 248) ___________ involves producing what the customer wants while reducing errors before and after
delivery to the customer.
264. (p. 248) In today’s quality control programs, emphasis is placed on:
A. producing goods at the lowest possible cost.
265. (p. 248) The six sigma approach to quality control:
D. allows only 6 defective units per one thousand units produced.
266. (p. 248) ____________ examines statistical samples of product components at each stage of the production
process and plots the results on a graph in order to spot and correct any variances from desired quality levels.
A. CAD/CAM
267. (p. 248) The idea behind the Deming Cycle is to:
A. develop a checklist that enables managers to evaluate employee performance more systematically.
268. (p. 248-249) The ___________ National Quality Award is given to firms that achieve an outstanding level of
overall quality based on performance in seven key areas.
269. (p. 250) ___________ are a set of standards for quality management and quality assurance.
A. EPA 2000
270. (p. 250) ____________ standards are concerned with the best practices for managing an organization’s
environmental impacts.
D. Enviro 2001
271. (p. 242) Which of the following is an important aspect of operations management?
A. determining the best means of financing the firm’s operations
272. (p. 243) Sylacon Industries, a leading producer of consumer goods, is looking for a site for a new production
facility. The company is mainly focusing on sites that are close to major highways and rail hubs and are not too
far from some major population centers. This suggests that a major location consideration for Sylacon is:
A. quality of life.
273. (p. 245) New developments in information technology have:
D. reduced the impact government policies have on location decisions.
274. (p. 245-246) 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):
275. (p. 246) Enterprise resource planning (ERP) is considered more complex than MRP primarily because it can:
A. give much more precise cost estimates.
276. (p. 247) A just-in-time inventory system usually reduces costs for:
A. both the producer and its suppliers.
277. (p. 247) In a just-in-time inventory system, suppliers:
A. deliver materials and parts in large quantities only a few times a year.
278. (p. 250) X-Sport Industries is a U.S.-based manufacturer of sporting goods. Until recently, all of its sales were
within the United States. However, it has decided to make a major push to sell its products in the European
Union. In order to succeed in this new market X-Sport will need to:
D. cut the wages of its production workers.
D. that its recruitment and training programs for employees protect and promote basic human rights.
280. (p. 245) Which of the following statements best describes the impact of recent advances in information
technology on business location decisions?
A. Advances in information technology give firms a greater incentive to locate near big cities, because that is
where they can take full advantage of these advances.
281. (p. 243) Which of the following statements about facility location is most accurate?
A. Very few firms are still influenced by labor costs when making decisions about where to locate.
282. (p. 245) Which of the following statements best reflects the approach state and local governments take to
influence the location decisions of businesses? State and local governments:
D. work primarily through the federal government and the Small Business Administration to obtain financial
assistance for firms seeking to locate in their area.
Nickels – Chapter 09 #282
283. (p. 245) Which of the following statements is most accurate?
A. Most manufacturing firms are turning to an assembly line layout to produce output as efficiently as possible.
284. (p. 246) Production manager Marvin McNealy wants to link his firm’s resource planning efforts with those of
other firms in order to develop an integrated system. In order to achieve this goal, Marvin could make use of:
D. Gantt charts.
285. (p. 247) Superior Supplies has just agreed to help one of its biggest customers, Amalgamated Products, by
participating in a just-in-time inventory system. From Superior’s perspective as a supplier, this system will
mean:
D. a need to deliver large quantities at regularly scheduled intervals.
286. (p. 248) A firm would be most likely to employ statistical process control (SPC) if it wanted to:
A. simplify the quality control process by taking samples at the end of the production process rather than
examining every unit of output produced.
287. (p. 249, Spotlight on Small Business box) According to the “Spotlight on Small Business” box in Chapter 9, Dolan
Industries has achieved the six sigma standard. This means that Dolan has: