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ISO 9000 refers to a set of international standards for quality management and assurance.

A) True
B) False

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For services,the facility layout is usually designed to:


A) enable the firm to maintain a continuous production run.
B) help customers find and buy things.
C) allow mass production techniques to be utilized efficiently.
D) facilitate a centralized decision-making process.

E) A) and D)
F) A) and C)

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

A) True
B) False

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A firm that has been certified as meeting both ISO 9000 and ISO 14000 standards has demonstrated:


A) world-class management of both quality and environmental standards.
B) sound financial and marketing practices.
C) ethical treatment of both customers and employees.
D) that its recruitment and training programs for employees protect and promote basic human rights.

E) C) and D)
F) A) and D)

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Facility location is one of the functions of operations management planning.

A) True
B) False

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

A) True
B) False

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A basic characteristic of flexible manufacturing is that it:


A) relies heavily on labour,since humans are more adaptable than machines.
B) uses machines designed to perform multiple tasks so they can be used to produce a variety of products.
C) achieves its flexibility at the cost of much slower rates of production than mass production techniques.
D) is only possible when using mass production processes.

E) None of the above
F) C) and D)

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MRP was a technique that helped managers:


A) develop a reliable sales forecast.
B) schedule the sequence of tasks workers must perform in order to complete a project.
C) determine how many workers were needed to staff various departments.
D) make sure that the right parts and materials were available at the right time.

E) B) and C)
F) A) and B)

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R&D refers to what?


A) all government spending.
B) the spending by private industry,Canadian universities,and hospitals.
C) work directed towards innovation and improvement.
D) materials requirement planning.

E) A) and D)
F) B) and D)

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Operations management refers to activities managers perform to help their firms convert resources into:


A) services,rather than goods.
B) goods,rather than services.
C) both goods and services.
D) financial data.

E) A) and D)
F) B) and C)

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__________ involves computers directly in the production process.


A) CAD
B) CAM
C) AMDA
D) AMCAP

E) C) and D)
F) B) and D)

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Which of the following statements about the impact of CAD/CAM on manufacturing is most accurate? CAD/CAM:


A) is most useful to firms producing durable goods such as automobiles.
B) has replaced ERP as the most sophisticated resource planning technique.
C) allows firms to save money by replacing skilled labour with computers to perform all of the high-skill tasks.
D) has made it possible to produce custom-designed products with little increase in costs.

E) A) and B)
F) A) and C)

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The assembly line layout remains the most popular layout for most processes.

A) True
B) False

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Carol Preston is the plant manager for a firm that makes coats and jackets.She would like to use CAD/CAM techniques to be able to custom-make these items.Unfortunately,CAD/CAM is much better suited for producing industrial goods like machinery and equipment than it is at producing consumer goods like coats and jackets.

A) True
B) False

Correct Answer

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Millwell Manufacturing has just redesigned its facility layout to group similar equipment and functions together,and to allow flexibility in the sequence in which products are produced using these functions.Millwood's new layout is an example of the fixed position approach.

A) True
B) False

Correct Answer

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The main objective of lean manufacturing is to:


A) keep labour costs as low as possible by expanding the use of other resources.
B) produce products that have fewer frills and options in order to simplify the production process and keep costs as low as possible.
C) produce goods using less of all types of resources compared to mass production techniques.
D) get state and local governments to handle many of the tasks currently performed by the firm.

E) B) and D)
F) B) and C)

Correct Answer

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The fastest growing manufacturing firms in Canada are those that:


A) receive large government subsidies enabling them to invest in new technologies.
B) face little or no foreign competition.
C) have emphasized a strategy of mass production to achieve economies of scale.
D) have expanded their operations by providing services as well as goods.

E) B) and C)
F) A) and C)

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Statistical quality control and statistical process control is designed to find errors before they happen.

A) True
B) False

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A limitation of current CAD/CAM technology is the complexity of such systems,which means that computers used in design are unable to communicate directly with the computer-aided machines used to manufacture goods.

A) True
B) False

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Due to the growth of the Internet,the cost of labour is no longer an important consideration in location decisions of business firms.

A) True
B) False

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