Exam 10: Production and Operations Management

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Production managers must continually evaluate results of the production process and make adjustments along the way.

(True/False)
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In selecting a production facility location, labour supply would be most important to which of the following?

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To receive an ISO family certification, a company must undergo an on-site audit.

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Custom machine shops are typically organized in a product layout.

(True/False)
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The first step of production control is production planning.

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Once a company decides what raw materials and component parts to purchase, what factors do production managers use for comparison in choosing the best supplier?

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A product layout can efficiently produce a large number of similar products but is relatively inflexible.

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Hospitals often use a customer-oriented layout.

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List the benefits of computer-aided manufacturing.

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Companies may use many different benchmarks, depending on their objectives.

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Just-in-time inventory systems shift much of the responsibility for carrying inventory to vendors.

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Airplane manufacturers have traditionally used a fixed-position layout.

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Boca Bearing Company produces 30 basic types of ball bearings. Its manufacturing system uses computer-controlled machining centres, robots, and remote-controlled carts to deliver materials. In addition, the system can be modified quickly to produce the different ball bearings. The manufacturing system that is described is a ______ system.

(Multiple Choice)
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Computer-aided design systems allow engineers to design components and products on computer screens faster and with fewer mistakes than they could working with traditional drafting systems. They pick up where computer-aided manufacturing systems leave off.

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Explain the difference between production and manufacturing.

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A Gantt chart shows sequence and the critical path for performing the steps in a project.

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Perpetual inventory systems typically use computers to continuously monitor the amounts and locations of their stocks.

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Which of the following would least likely be purchased on a long-term contractual basis?

(Multiple Choice)
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Complete the following using the terms listed below. -The third component of mass production, ______, involves producing uniform, interchangeable goods and parts.

(Multiple Choice)
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The suppler for Omega Corporation has offered the company a 5 percent discount if it will order more units less frequently. If Omega accepts the supplier's offer, the cost of carrying inventory will ______ and the cost of running out of inventory will ______.

(Multiple Choice)
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