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311. Courtney was planning a new product launch. She knew that the art department was
ready to work on the promotional pieces now, but they couldn't start until the strategy group
established the price point and the purchasing group obtained the paper needed to make the
promotional piece. Establishing price points would take about a week and was dependent on
manufacturing getting the costs to the strategy group. This was expected a week from today. The
purchasing group indicated the paper could be obtained locally the same day it was requested.
Assuming things go as planned and based on this information, when will the art department be
able to begin work on the promotional pieces?
312. Joel was planning a new product launch. He knew that the art department was ready to
work on the promotional pieces now, but they couldn't start until the marketing strategy group
established the price point and the purchasing department obtained the paper needed to design
the promotional piece. Establishing price points would take about a week and was dependent on
manufacturing getting the costs to the marketing strategy group. This was expected a week from
today. The purchasing group indicated the paper could be obtained locally the same day it was
requested. Assuming things go as planned and based on this information, which of the following
tasks could be as much as a week late without jeopardizing the deadline for the entire project?
313. Review the PERT Network below: If it takes 1, 2, or 3 weeks for each activity (represented
by a box) to be completed, the
critical path
is represented by:
314. Manny is a production and operations manager who likes to keep track of how various
projects are progressing. One of Manny's favorite tools is a bar graph that shows how much work
has been completed on the projects that are currently under way and which processes are behind
schedule. Manny likes to use a(n):
Mini-Case
"These are exciting times for our company. We've made a lot of changes over the past two years
that have really improved our operations and lowered our costs. Now we are ready to expand into
new markets. Minimotors is on its way to becoming a global player." The speaker was Sparky
Weyer, president and CEO of Minimotors, Inc., a growing manufacturer of small (some of them
downright tiny) electric motors used in a variety of power tools and appliances. Sparky was
meeting with potential financial backers in an effort to obtain funding for some expensive new
machinery he wanted to purchase. "You may have heard about some of the ways we've cut
costs," Sparky continued. "We've developed a new arrangement with several of our biggest
suppliers. They've agreed to make more frequent deliveries tied directly to our production
schedules. This will help us reduce our inventory costs dramatically. We've also greatly reduced
the number of defective motors we produce by carefully keeping tabs on all of our manufacturing
processes. In fact, we have set a goal of reducing our defects to 3.4 parts per million. The main
purpose of my meeting with you today is because we want to install some sophisticated new
machinery and software that will allow us to quickly design and produce motors to the exact
specifications of our customers. The machinery is computer-controlled and can produce custom-
designed products at very little increase in cost compared to our mass-produced motors. We feel
this flexibility and quick response time will give us a tremendous competitive advantage and help
us attract new customers. Installing the new equipment and training our workers to use it
properly will be a complex project, but I'm confident that once we get everything up and running
we'll be able to strengthen our position as the leading maker of high-quality electric motors."
315. One of Sparky's goals is to expand globally. He is most interested in doing business with
the nations of the European Union. In order to do business with the European Union, Sparky's
company should:
316. The arrangements Minimotors has worked out with its suppliers to reduce the amount of
inventory the company holds at any one time shows that it is committed to a(n) ___________.
317. The equipment and software Sparky wants to acquire will allow the computers used to
design motors to be linked directly to the computer-aided equipment on the factory floor. Sparky
is proposing to set up a(n):
318. In order to schedule deliveries, Minimotors's suppliers need detailed information about
when parts are needed. Minimotors will purchase a sophisticated computer application that will
link its operation to sales forecasts to make sure needed parts and supplies are available at the
right time to meet customer demands. This planning system is known as:
319. Sparky sees quality control in terms of detecting potential problems to prevent their
occurrence and thus save Minimotors money. The quality control process that is most closely
linked to Sparky's goal is known as:
320. Sparky knows that installing the new equipment and training workers to use it efficiently
will be a long and complex process consisting of many different tasks. Which of the following
methods would help him determine how long this project is likely to take?
321. While Minimotors has focused on improving production efficiencies, global customers are
inquiring about its environmental policies. In light of its strategy to serve European customers,
Sparky has requested two of its lead engineers to investigate what it would take to meet the
environmental standards of its socially responsible customers. The engineers should investigate
___________ as best practices for managing a firm's impact on its environment.
322. The selection of a proper site for a business facility is important in the production and
operations management processes. Identify and discuss three factors that influence the selection
of a site.
Students can select from the following:
323. How are MRP and ERP similar? How do they differ?
324. How has the emphasis of quality control changed in recent years? Describe some of the
modern quality control techniques that illustrate this change in emphasis.
325. PERT is a popular control method used by organizations. Explain the purpose of PERT
analysis, and describe the steps involved in constructing a PERT network. Your explanation
should include a discussion of the significance of the critical path in a PERT network.
326. What are the ISO 9000 and ISO 14000 standards? Why are they important?
