Understanding business Test bank solution Chap 9 Production and operations management

Chapter 09 - Production and Operations Management

TEST PLANNING TABLE FOR CHAPTER 9

Learning Objective

LL:1
Knows Basic
Terms and Facts

LL:2
Understands
Concepts and
Principles

LL:3
Applies Principles

1. Describe the current
state of U.S.
manufacturing and what
manufacturers have done
to become more
competitive.

1,2,3,4,5,6,7,8,9,
185,186

10~,11,12,13,14,15,16,
187,188,189

17

2. Describe the
evolution from production
to operations
management.

18,19,20,21,22,23,24,25,
26,27,28,29,30,
190,191,192,193,194,195,
196
39,40,41,42,43,44,45,46,
47,48,49,50,51,52,53,54,
55,56,57,58,59,60,61,62,
63,64,65,66,67,68,69,70,
71,72,
205,206,207,208,209,210,
211,212,213,214,215,216,
217,218,219,220,221

31,32,33,
197,198,199,200

34,35, 36,37,38,
201,202,203,204

73,74,75,76,77,78,79,
80,81,82,83,
222,223,224,225,226,
227,228,229

84,85,86,87,88,89,90,
91,
230,231,232,233,234,
235,236, 237,238,239,
240,241,242,243,244,
245,
322*

92,93,94,95,96,97,98,99,
100,101~,102,103,104,105,
106,107,108,109,110,111,
112,113,114,115,116,117,
118,119,120,121,122,123,
124,125,126,127,128,129,
130,131,132,133,134,135,
136,137,138,139,140,141,
142,143,144,145,146,147,
246,247,248,249,250,251~,
252,253,254,255,256,257,
258,259,260,261,262,263,
264,265,266,267,268,269,
270,271,272,273,274,275,
276,277,278
169,170,171,172,173,174,
175,176,177,178,
301,302,303,304

148,149,150,151,152,
153,154,155,

279,280,281,282,283,
284,285,286~,287,288,
289,290,291

156,157,158,159,160,
160,161,162,163,164,
165,166, 167,168,
292,293,294,295,296,
297,298, 299,300,
315,316,317,319,
320*,321*,323*,324*,
326*

179,180,
305,306,307,308

181,182,183,184,
309,310,311,312,313,
314,
318,
325*

3.

Identify various
production processes
and describe techniques
that improve productivity,
including computer-aided
design and

manufacturing, flexible
manufacturing, lean
manufacturing, mass
customization, and
robotics.
4. Describe operations
management planning
issues including facility
location, facility layout,
materials requirement
planning, purchasing,
just-in-time inventory
control, and quality
control.

5. Explain the use of
PERT and Gantt charts
to control manufacturing
processes.

Total number of test items: 326
True/false questions are in plain text.
Multiple choice questions are in bold text.
Questions on boxed material are in bold text with a tilde~.
Essay questions are in bold underlined text.
Minicase questions are in bold with an asterisk*.

9-1

Chapter 09 - Production and Operations Management

Chapter 09
Production and Operations Management Answer Key

True / False Questions

1.

Currently, manufacturing accounts for only around 70% of U.S. GDP.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 1 Easy
Topic: The State of U.S. Manufacturing Today

2.

The recent recession greatly affected the state of manufacturing in the U.S., resulting
in a slowdown in production and the loss of jobs.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 1 Easy
Topic: The State of U.S. Manufacturing Today

3.

Today, manufacturers in the U.S. have become so efficient, they require fewer
workers to produce the same amount of output.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 1 Easy
Topic: The State of U.S. Manufacturing Today

4.

One key to the resurgence of U.S. firms as world-class competitors has been the
implementation of a focus on quality.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 1 Easy
Topic: The State of U.S. Manufacturing Today

5.

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

Answer: False

9-2


Chapter 09 - Production and Operations Management
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 1 Easy
Topic: The State of U.S. Manufacturing Today

6.

American manufacturers have emphasized continuous improvement as one strategy
for regaining a competitive advantage in the manufacturing sector.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 1 Easy
Topic: The State of U.S. Manufacturing Today

7.

In order to be more competitive globally, production techniques such as enterprise
resource planning and lean manufacturing are being used by American manufacturers.

Answer: True
AACSB: Reflective Thinking

Bloom’s: Remember
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 1 Easy
Topic: The State of U.S. Manufacturing Today

8.

To strengthen its manufacturing base, the U.S. will need to continue to innovate.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 1 Easy
Topic: The State of U.S. Manufacturing Today

9.

The U.S. is still manufacturing intensive. Only 25% of U.S. jobs come from the
service sector.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 1 Easy
Topic: The State of U.S. Manufacturing Today

9-3

Chapter 09 - Production and Operations Management

10.

The Seeking Sustainability box states that there is no way to redesign the global food
system for locally grown food to be available year-round.

Feedback: Dissatisfied with greenhouses, entrepreneurs have started turning old shipping
containers into small, stackable farms. This allows people around the world to have locally
grown food at all times, even in the dead of winter.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 2 Medium
Topic: The State of U.S. Manufacturing Today

11.

The Reaching Across Our Borders box asserts that Germany is the most powerful and
respected economy in the European Union.

Feedback: Many financial crises have hit the European Union in recent years. However,
Germany’s economy has continued to succeed due to its powerful industrial sector.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 2 Medium

Topic: The State of U.S. Manufacturing Today

12.

Since U.S. manufacturing competes on price throughout the world, innovation plays a
very small part in the U.S. economy.

Feedback: The U.S. continues to be a world leader in innovation, including innovations in
nanotechnology and biotechnology.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 2 Medium
Topic: The State of U.S. Manufacturing Today

13.

U.S. businesses are known for their creativity and their ability to implement change.

Feedback: U.S. businesses are combining services with state-of-the-art production techniques,
in order to remain competitive.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 2 Medium
Topic: The State of U.S. Manufacturing Today

9-4

Chapter 09 - Production and Operations Management

14.

The main reason for the recent resurgence of American manufacturing firms has been
the quotas and tariffs imposed by the U.S. government in an attempt to protect domestic
firms from cheap imports.

Feedback: American manufacturers have regained their competitive edge by implementing a
variety of strategies, such as a consumer focus, continuous improvement, adoption of new
manufacturing techniques such as ERP and CAD/CAM, and a reliance on the Internet to unite
firms.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 2 Medium
Topic: The State of U.S. Manufacturing Today

15.

As the service industries became a larger part of U.S. GDP, companies have become
more concerned about measuring productivity in the service sector.

Feedback: The services industries, together, comprise about 70% of U.S. Gross Domestic
Product. Increasing productivity in these industries will make U.S. business more competitive
abroad.
Answer: True

AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 2 Medium
Topic: The State of U.S. Manufacturing Today

16.

U.S. manufacturers are focusing on quality as a way to become more competitive
globally, assuming that cost is not an issue.

Feedback: U.S. manufacturers are focusing on quality and cost, as they adopt strategies for
competing better globally. From a quality perspective, they focus on continuous improvement;
from a cost perspective, they focus on lean manufacturing, reducing costs by prudent site
selections, and relying on the use of the Internet and other software technologies that improve
efficiency in their operations.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 2 Medium
Topic: The State of U.S. Manufacturing Today

9-5


Chapter 09 - Production and Operations Management

17.

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

Feedback: IBM is an example of a company that transitioned from a product-based firm to a
service-based firm. It has successfully found business in services and software, and become a
cutting-edge information technology company domestically and in foreign markets.
Answer: False
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 09-01 Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive
Level of Difficulty: 3 Hard
Topic: The State of U.S. Manufacturing Today

18.

In the past, production management was about using the factors of production to
create finished goods.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 1 Easy
Topic: Operations Management

19.

Operations management converts resources into goods and services.

Answer: True

AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 1 Easy
Topic: Operations Management

20.

In the process of operations management, a firm transforms resources such as raw
materials, supplies, and even human resources into goods and services.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 1 Easy
Topic: Operations Management

21.

Firms that specialize in accounting, finance, and management consulting are all part of
the service sector.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 1 Easy
Topic: Operations Management

9-6


Chapter 09 - Production and Operations Management

22.

Operations management involves inventory management, quality control, and
production scheduling.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 1 Easy
Topic: Operations Management

23.

Manufacturing firms focus exclusively on the production of goods and allow other
firms to provide services.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 1 Easy
Topic: Operations Management

24.

In recent years, operations management has become more focused on providing
services, because that is where the growth and profit potential is greatest.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 1 Easy
Topic: Operations Management

25.

Operations management in service industries is about creating a good experience for
the customer.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 1 Easy
Topic: Operations Management

26.

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

Answer: True
AACSB: Reflective Thinking

Bloom’s: Remember
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 1 Easy
Topic: Operations Management

9-7


Chapter 09 - Production and Operations Management

27.

In service industries such as hotels, quality management training is important to
ensure that all employees are certified in their positions.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 1 Easy
Topic: Operations Management

28.

Education and training are less important to workers in the service sector than to
workers who have jobs in the manufacturing sector.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember

Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 1 Easy
Topic: Operations Management

29.

The quality standard for service industries such as luxury hotels is meeting the
customers' requests.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 1 Easy
Topic: Operations Management

30.

Service businesses know that in order to delight customers they must be able to
anticipate their needs.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 1 Easy
Topic: Operations Management

31.

One important issue with respect to managing the operation of a business is to make
certain that customers leave feeling as though they had a good experience with your
service and with your company in general.

Feedback: Operations management transforms resources of all kinds into finished products
and services. Due to the fact that services dominate the U.S. landscape, it is vital to a firm's
survival that customers perceive that they had a good experience. The quality at every step of
the service must be measured and evaluated.
Answer: True

9-8


Chapter 09 - Production and Operations Management
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 2 Medium
Topic: Operations Management

32.

Manufacturing companies are concerned with production management, while service
companies are concerned with operations management.

Feedback: Manufacturing companies are as concerned with operations management as are
service-based companies. In reality, most companies today blend a component of product and
service.
Answer: False
AACSB: Reflective Thinking

Bloom’s: Understand
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 2 Medium
Topic: Operations Management

33.

An important strategy in operations management is using technology to anticipate
customer needs. In the hotel industry, this is known as guest-recognition services.

Feedback: Guest-recognition service is one way that hotels can delight customers. Part of
your business's operational plan might include using technology to collect intelligence
information on customers in order to serve them better.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 2 Medium
Topic: Operations Management

34.

Operations management transforms resources into goods and services, such as a
landscape company that utilizes equipment, labor, and materials to develop a landscape.
Managing this operation may also involve maintenance services.

Feedback: Operations management transforms resources of all kinds into finished products
and services. They utilize raw materials, equipment, and labor, but they are also concerned
with anticipating customer needs and managing the entire operation including the customer's
needs beyond the point of sale.

Answer: True
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 3 Hard
Topic: Operations Management

9-9


Chapter 09 - Production and Operations Management

35.

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.

Feedback: Operations management is a broad term that encompasses the tasks involved in
creating both intangible products (services) and tangible goods. Thus, firms in both the
service sector and the manufacturing sector may be interested in hiring Jason.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 3 Hard
Topic: Operations Management

36.

Justin Tyme is a manager at Elastic Plastic, Inc. His duties include production
scheduling and keeping tabs on the company's inventory. These activities suggest that
Justin is involved in promotions management.

Feedback: Justin's responsibilities suggest he is involved in operations management.
Operations management is a specialized area of management that converts resources into
goods and services. It includes inventory management and production scheduling, as well as
several other functions.
Answer: False
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 3 Hard
Topic: Operations Management

37.

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 to be the store's management of its labor.

Feedback: This is part of the management of the operation—the operation of serving you. The
store is rewarding (delighting) you with a coupon that has value on your next purchase. The
grocer is anticipating that if you purchased it once, you may purchase it again, particularly if
it is a name brand.
Answer: False
AACSB: Analytical Thinking
Bloom’s: Analyze

Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 3 Hard
Topic: Operations Management

9-10


Chapter 09 - Production and Operations Management

38.

Marci Costas is majoring in operations management at Brunau University.
Unfortunately, the evolution of the U.S. from a manufacturing-oriented to a serviceoriented economy means that Marci will probably find few job openings in her field of
study.

Feedback: The U.S. economy is becoming more service oriented. However, this is not bad
news for students who major in operations management, because the tasks involved in
operations management are just as relevant to the production of services as they are to the
production of goods.
Answer: False
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 09-02 Describe the evolution from production to operations management
Level of Difficulty: 3 Hard
Topic: Operations Management

39.

When firms successfully produce products, they create form utility.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

40.

Only firms in the manufacturing sector can create true form utility.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

41.

The three basic requirements of production are: (1) creating a finished good, (2)
making sure you created it at the lowest cost possible, and (3) selling it.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

42.

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

Answer: False

9-11


Chapter 09 - Production and Operations Management
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

43.

Process manufacturing refers to combining components and raw materials to make a
product.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

44.

Process manufacturing physically or chemically alters materials to create finished
goods.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

45.

An assembly process involves physically or chemically manipulating raw materials to
create a product.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

46.

A continuous production process is characterized by long production runs that turn out
finished goods over time.

Answer: True
AACSB: Reflective Thinking

Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

9-12


Chapter 09 - Production and Operations Management

47.

Intermittent production processes are characterized by short production runs and
frequent changes of machinery in order to produce different products like customized
furniture.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

48.

Contemporary manufacturers in the U.S. lack the flexibility to use intermittent
production processes.

Answer: False
AACSB: Reflective Thinking

Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

49.

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

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

50.

The production process requires inputs, controls, and outputs.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

51.

Mass production techniques allowed firms to respond quickly to the individual needs
of consumers.

Answer: False

9-13


Chapter 09 - Production and Operations Management
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

52.

One of the reasons mass production techniques lost favor is that, despite their ability
to keep costs relatively low, mass production lacks flexibility.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: The Need to Improve Production Techniques and Cut Costs

53.

The ability to integrate computers into the design and manufacture of products has

had the greatest impact on production techniques in recent years.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Technology in the Production Process

54.

CAD/CAM has made it possible to custom-design products to meet the tastes of small
markets with very little increase in costs.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Technology in the Production Process

55.

CAD systems allow designers to work in three dimensions.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy

Topic: Technology in the Production Process

9-14


Chapter 09 - Production and Operations Management

56.

Despite its early promise, computer-aided design has not met with much success in
increasing productivity.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Technology in the Production Process

57.

The purpose of computer-integrated manufacturing (CIM) is to unite computer-aided
design with computer-aided manufacturing.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Technology in the Production Process

58.

The advantage of computer-integrated manufacturing software is that it allows
computer-aided design machines to communicate directly with computer-aided
manufacturing machines.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Technology in the Production Process

59.

So far, the high cost of CAD/CAM techniques has limited their use to large,
expensive manufactured goods such as automobiles.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Technology in the Production Process

60.

Flexible manufacturing systems use machines that are designed to do a multitude of
tasks so that they can produce a variety of goods.

Answer: True

9-15


Chapter 09 - Production and Operations Management
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Technology in the Production Process

61.

A disadvantage of flexible manufacturing systems is that they usually require a great
deal of labor because machines are rarely capable of handling a wide variety of tasks.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Technology in the Production Process

62.

One way to compete with cheap labor is to use robots.

Answer: True

AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Technology in the Production Process

63.

Lean manufacturing is a strategy of producing standardized products that have no
frills or extra features in order to keep prices low.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

64.

Companies that achieve lean manufacturing use less of everything (raw materials,
labor, etc.) to produce the same amount of products.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

9-16


Chapter 09 - Production and Operations Management

65.

Technological improvements are largely responsible for the increase in productivity
and efficiency of U.S. plants.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Technology in the Production Process

66.

The higher productivity of U.S. plants makes it possible to pay higher wages.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: The State of U.S. Manufacturing Today

67.

Mass customization is tailoring products to meet the needs of individual customers.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

68.

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.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

69.

While mass customization works well for producers it is not used in the service
sector.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics

Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

9-17


Chapter 09 - Production and Operations Management

70.

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

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Production Processes and Techniques

71.

Speeding up the process of responding to consumer wants and needs is a key to global
competitiveness.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: The State of U.S. Manufacturing Today

72.

Nanomanufacturing is when materials can be manipulated on a molecular or even
atomic level.

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 1 Easy
Topic: Technology in the Production Process

73.

Companies that employ lean manufacturing and flexible manufacturing produce better
quality products, but have costlier production lines.

Feedback: The purpose in lean manufacturing and flexible manufacturing is to produce
products and services more efficiently and for less cost.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 2 Medium
Topic: Production Processes and Techniques

9-18

Chapter 09 - Production and Operations Management

74.

When a company has the ability to produce the same amount of goods with only half
the floor space and half the labor that it used in the past, the firm is practicing flexible
manufacturing.

Feedback: Using half the floor space and half the labor are characteristic of lean
manufacturing. Flexible manufacturing refers to the ability to design machines with
interchangeable parts so that the same machine can perform multiple tasks and/or produce a
variety of products.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 2 Medium
Topic: Production Processes and Techniques

75.

Improvements in technology have significantly increased the quality of products, as
well as helped reduce costs.

Feedback: The introduction of CAD (computer-aided design), CAM (computer-aided
manufacturing), and CIM (computer integrated manufacturing) has increased the quality of
the product (output) and the time it takes to produce custom-designed products. It has reduced
the cost of labor, and decreased waste in the production process.
Answer: True
AACSB: Reflective Thinking

Bloom’s: Understand
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 2 Medium
Topic: Technology in the Production Process

76.

Manufacturers use CAM (computer-aided manufacturing) to create three-dimensional
designs of products before they are built.

Feedback: CAD (computer-aided design) is used to create three-dimensional designs of
products before they are built. CAM (computer-aided manufacturing) is used to build the
product.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 2 Medium
Topic: Technology in the Production Process

9-19


Chapter 09 - Production and Operations Management

77.

Mass customization is not exclusive to product-intensive businesses. Service
businesses have learned how to use mass customization to serve their customers.

Feedback: Service businesses use sophisticated software programs to tailor insurance plans,
travel plans, nutrition programs, and health care plans to individual customers.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 2 Medium
Topic: Production Processes and Techniques

78.

Businesses that provide services typically cannot use mass customization because
services are not tangible products that can be customized.

Feedback: Many service firms practice mass customization. The fact that a service is
intangible can actually make mass customization easier, because no tangible good has to be
adapted.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 2 Medium
Topic: Production Processes and Techniques

79.

Process manufacturing involves taking raw materials and physically or chemically
changing them into another form, while the assembly process takes the newly changed
form and turns it back into the original form.

Feedback: While process manufacturing involves physically or chemically changing materials
into a new state, the assembly process involves putting together components to make a
finished product.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 2 Medium
Topic: Production Processes and Techniques

9-20


Chapter 09 - Production and Operations Management

80.

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.

Feedback: Process manufacturing involves physically or chemically changing materials. An
assembly process combines components to make a product.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 2 Medium
Topic: Technology in the Production Process

81.

Land, labor, capital, and knowledge are inputs into the production process.

Feedback: The production process requires inputs (land, labor, capital entrepreneurship, and
knowledge), and production controls in order to develop outputs.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 2 Medium
Topic: Production Processes and Techniques

82.

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.

Feedback: Lean manufacturing is the production of goods using less of everything compared
to mass production: less human effort, but also less investment in tools, less manufacturing
space, and even less engineering time.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 2 Medium
Topic: Production Processes and Techniques

9-21


Chapter 09 - Production and Operations Management

83.

Chinese companies use so many robots in its manufacturing sector that it may soon
become the world’s largest robot market.

Feedback: Robots are making manufacturing, especially mass customization, far easier for
companies. Many people believe China is so successful due to cheap labor; but it is also
because of China’s use of robotics.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 2 Medium
Topic: Technology in the Production Process

84.

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.

Feedback: Process manufacturing physically or chemically changes materials. This is what
Cooldaze does when it makes dry ice.
Answer: True
AACSB: Reflective Thinking

Bloom’s: Apply
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 3 Hard
Topic: Production Processes

85.

Featured Furnishings is a company that specializes in producing custom-made
furniture. A continuous production process would be the most efficient way for Featured
Furnishings to produce its products.

Feedback: Since its products are made to order rather than mass produced, Featured
Furnishings would be more likely to use an intermittent process that would allow it to respond
more flexibly to specific customer preferences.
Answer: False
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 3 Hard
Topic: Production Processes and Techniques

9-22


Chapter 09 - Production and Operations Management

86.

J&R Industries typically produces very large batches of standardized products used
by plumbers, such as pipefittings and valves that must be produced in standard sizes. A

continuous production process would work well for J&R.

Feedback: A continuous process is used to produce large batches of a particular product in a
long production run.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 3 Hard
Topic: Production Processes and Techniques

87.

Frolichstein Fabrics promotes itself as a specialty manufacturer that will produce
according to customer specifications. This firm will probably be best served by using an
intermittent process in production.

Feedback: An intermittent process is characterized by short production runs and frequent
adjustments to machinery in order to produce different products. This type of system works
well for firms producing customized products in small batches.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 3 Hard
Topic: Production Processes and Techniques

88.

Computers and robots are only useful in continuous production processes where the

same type of product is produced many times.

Feedback: Computers and robots are very useful in intermittent production processes. In fact,
combining computers and robots with flexible manufacturing processes enables intermittent
processes to produce custom-made goods almost as fast as mass-produced goods once were
made.
Answer: False
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 3 Hard
Topic: Technology in the Production Process

9-23


Chapter 09 - Production and Operations Management

89.

Trace and Tim own a company that rehabs old houses. Prior to buying a house, they
use software to create and design the renovation of each room. The program provides
them with an estimation of how much of each kind of material is needed, and the orderly
progression of tasks that need to be completed. Trace and Tim use computer-aided design.

Feedback: CAD/CAM techniques are revolutionizing the design and production of both
industrial and consumer goods. Computer-aided design software assists with the design of
finished products.
Answer: True
AACSB: Knowledge Application

Bloom’s: Apply
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 3 Hard
Topic: Technology in the Production Process

90.

SeatBelts Unlimited, Inc., is located about 8 miles from two major auto assembly
plants. The firm delivers seatbelts about every two hours to each of the plants. The
assembly plants only accept the number of seatbelts that they will assemble into cars
during the next two hours after delivery. The auto plants embrace lean manufacturing.

Feedback: Firms that practice lean manufacturing typically carry very limited amounts of
inventory. They only accept delivery and add to their inventory the amount of raw materials or
parts that they can use in the immediate future.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 3 Hard
Topic: Production Processes and Techniques

91.

Alice's Cookie Company makes a variety of cookies for corporate accounts and
restaurants. On a good day, the orders can range from 600 to 800 cookies, with a variety
of uniqueness, although the company is known for delicate shortbread and butter cookies.
Some cookies have round shapes, but others are elongated rectangles, and yet others are
triangles. The bakers can quickly change the cookie cutting machine to reflect the orders
for the day, while computers program the ovens to make those cookies the light golden

color they are known for across town. Refrigeration is also computer controlled. Alice's
Cookie Company embraces flexible manufacturing and mass customization.

Feedback: Flexible manufacturing means the company is using machines that can multitask.
They can be quickly retrofitted to create a variety of products. The manufacturer can design
and create customized orders, by changing the shape, color, and size depending upon the
customer's preference.
Answer: True

9-24


Chapter 09 - Production and Operations Management
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 09-03 Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, and robotics
Level of Difficulty: 3 Hard
Topic: Production Processes and Techniques

92.

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

Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-04 Describe operations management planning issues including facility location, facility layout, materials
requirement planning, purchasing, just-in-time inventory control, and quality control
Level of Difficulty: 1 Easy

Topic: Operations Management

93.

When considering the issue of facility location, it is important to find an isolated
location so that work can get done without interruption from customers.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-04 Describe operations management planning issues including facility location, facility layout, materials
requirement planning, purchasing, just-in-time inventory control, and quality control
Level of Difficulty: 1 Easy
Topic: Operations Management

94.

Operations management planning is concerned with finding the ideal location for a
business and also with materials requirement planning. It leaves decisions about
purchasing and inventory control to marketing.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-04 Describe operations management planning issues including facility location, facility layout, materials
requirement planning, purchasing, just-in-time inventory control, and quality control
Level of Difficulty: 1 Easy
Topic: Operations Management

95.

When it comes to location decisions, labor costs are no longer an important
consideration for most manufacturing firms.

Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 09-04 Describe operations management planning issues including facility location, facility layout, materials
requirement planning, purchasing, just-in-time inventory control, and quality control
Level of Difficulty: 1 Easy
Topic: Operations Management

9-25