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Exam 9: Production and Operations Management

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Question 31

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Mass customization is a strategy of convincing customers to choose from a relatively small number of alternatives in order to achieve the efficiencies of mass production.

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B) False

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Question 32

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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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B) False

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Question 33

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The Cooldaze Ice Company compresses carbon dioxide and cools it to a very low temperature to make dry ice. The method used by Cooldaze is an example of process manufacturing.

Companies such as IBM prefer to stay the course and continue to compete by selling products instead of services.

Facility location is the process of selecting a geographic location for a company's operations.

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) :

Evidence suggests that U.S. manufacturing firms can no longer compete against the best firms in the rest of the world.

The purpose of determining the critical path on a PERT network is to:

While going through the line at the local grocery store, the clerk asks you if you found everything you needed, as she continues to scan the goods you are planning to purchase. At the end of the scan, a coupon emerges that you can use on future purchases of a product you have just purchased. In reviewing the key concepts from Chapter 9, you would consider this action, the store's management of its labor.

Jason recently graduated with a degree in operations management from a respected university. The knowledge he gained and skills he developed while obtaining this degree could make him an attractive employee for either a manufacturing firm or a service firm.

In , materials are physically or chemically changed to produce a product.

is a technique to analyze and sequence tasks involved in completing a project, to estimate the time needed to complete each task, and to determine the minimum amount of time needed to complete each project.

The U.S. economy is now dominated by the sector.

In a PERT network, a critical path is the sequence of tasks that takes the longest time to complete.

The PERT network provides a project manager with a plan that puts all the activities of a project in the correct order that they must be accomplished; shows which activities can be accomplished simultaneously, and, also gives the manager a good estimate of how long each activity will take to complete.

Casper is in charge of a complex project. He wants to see how all the different activities involved in completing the project are related to each other. One way to illustrate these relationships would be to construct a PERT chart.

Each day the general manager at the New Life Grocery Store reviews employee work schedules, including the late night stock crew, the checkers, the baggers, the deli, produce, and meat department crews, and the office personnel. He coordinates work schedules with shipments, as well as the information he collects from registers that indicates the busiest hours at the store, and then he communicates any exceptions to his department managers. These daily tasks are part of .

The Deming Cycle approach to quality control consists of: Plan, Do, Check, Act.

As businesses strive for market expansion, companies add to their sales force, but opt to eliminate sales offices across the nation and internationally. How are these firms able to remotely operate a sales force that contributes toward increasing the bottom line?

According to the Making Ethical Decisions box, titled, "Stay or Leave?", a firm must give its employees before closing and/or moving to another location.