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MachineX, Inc. manufactures machinery and robots that can assemble an assortment of cars and trucks including heavy duty pickup trucks, sports cars, luxury sedans, minivans, and multiple sizes of SUVs. MachineX sells products to companies that require


A) micro-engineering.
B) flexible manufacturing.
C) continuous production.
D) multiple output processing.

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The value added by the creation of finished goods and services from inputs is called ownership utility.

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An assembly production process is characterized by long production runs that turn out finished goods over time.

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Materials requirement planning relies on the firm's balance sheet to make sure that the right quantities of finished goods are produced.

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Tops and Lids Hat Company produces its hats and caps according to customers' requests. What process does Tops and Lids most likely use?


A) analytic
B) just-in-time
C) intermittent
D) continuous

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For most service businesses the quality standard has become


A) providing prompt and predictable service.
B) providing a competitive level of service at the lowest cost.
C) pleasing customers by anticipating their needs.
D) less important than it is for manufacturing businesses.

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The U.S. economy is now driven by


A) farming.
B) manufacturing.
C) services.
D) trade.

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The production process requires inputs, controls, and outputs.

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According to the Reaching Beyond Our Borders box, one way Germany is remaining competitive in industrial jobs is


A) they implement apprenticeships to provide on-the-job education for young workers.
B) they encourage students to leave school to take manufacturing jobs.
C) they rely solely on robotic technology and no longer use a human workforce.
D) they send all of their manufacturing work to China.

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Contemporary operations management planning is an interfirm process. An interfirm process is


A) a process that must integrate all of the functional units of a firm's operation, including production, marketing, finance, and logistics.
B) a process that uses a confidential plan, not shared with suppliers or customers, which stays within the firm.
C) a process where several firms work closely together to design, produce, and ship products to customers.
D) a process that seeks stability by adhering to top-down management.

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The main difference between process manufacturing and an assembly process is that process manufacturing uses sophisticated robots and automated machinery to produce a good or service, while an assembly process uses labor and simple tools to make a product.

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In making a location decision, businesses seldom consider "quality of life" in various locations, because factors that influence quality of life have little or no impact on profits.

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Actually, it is much easier to custom-design service programs than it is to custom-make goods.

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Although lean manufacturing attempts to reduce the amount of labor used in the manufacturing process, it typically does so by increasing the amount of most of the other resources used in the production process.

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Operations management transforms resources into goods and services. Green Grass Landscaping utilizes equipment, labor, and materials to develop a top notch landscape for its customers. Managing this operation may also involve maintenance services.

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Which of the following statements about facility location is most accurate?


A) No firms are influenced by labor costs when making decisions about where to locate.
B) Recent changes in information technology have led firms to favor locations near major urban areas.
C) Manufacturers often seek to reduce time-to-market by locating facilities in areas with access to key modes of transportation.
D) No matter how large they become, most companies ultimately choose to locate major facilities within a few miles of the area in which they started business.

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Operations management moves from knowing the needs of consumers to actually satisfying those needs.

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One drawback of intermittent production processes is that they tend to be much slower than continuous processes.

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A just-in-time inventory system usually reduces costs for


A) both the producer and its suppliers.
B) suppliers.
C) the producer.
D) neither the supplier nor the producer, though it does lead to more flexibility for both.

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Review the PERT Network below: If it takes 2 weeks for each activity (represented by a box) to be completed, it can be determined that the boxes labeled with No. 1 create the critical path because this path of activities takes the shortest time to complete. Review the PERT Network below: If it takes 2 weeks for each activity (represented by a box) to be completed, it can be determined that the boxes labeled with No. 1 create the critical path because this path of activities takes the shortest time to complete.

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