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____ is the arrangement of machinery, equipment, and personnel within a production facility.


A) Process layout
B) Product layout
C) Resource design
D) Plant layout
E) Design planning

F) B) and C)
G) A) and C)

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Development and implementation are research activities undertaken to put new or existing knowledge to use in producing goods and services.

A) True
B) False

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Billy is in charge of obtaining the flour, sugar, and other ingredients needed for her employer, Baker's Café. Billy is in charge of


A) procurement.
B) corporate buying.
C) purchasing.
D) inventory control.
E) shopping.

F) All of the above
G) A) and B)

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A situation in which machines and equipment do most of the work is known as


A) high technology.
B) quality control.
C) a labor-intensive technology.
D) an industrial installation.
E) a capital-intensive technology.

F) C) and D)
G) All of the above

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Generally, a planning horizon lasts for one


A) week.
B) month.
C) quarter.
D) year.
E) decade.

F) All of the above
G) C) and D)

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A process layout is used when all products undergo the same operations in the same sequence.

A) True
B) False

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The amount of products or services an organization can produce in a given time is known as its capacity.

A) True
B) False

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When New Coke was introduced, it failed miserably in the market. After removing it from its product line, what did Coca-Cola most likely do with the capacity devoted to producing this product?


A) Shift the excess capacity to the production of other soft-drink products
B) Eliminate the excess capacity by selling all New Coke facilities
C) Fire all the employees involved with the production of New Coke
D) Subcontract the production of New Coke to another producer
E) Decrease the work week of its production line employees

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

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Scientists at R&E Labs worked for two years on a project to eventually add more knowledge to the science of photography. But in a meeting with the board of directors last week, they had nothing new to report. This is always a risk with


A) basic research.
B) applied research.
C) development and implementation.
D) a lack of research.
E) underfunded research projects.

F) B) and C)
G) A) and B)

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An Illinois-based firm crushes materials to make gravel, its only product. The gravel company has


A) few production processes.
B) a focus on human resources.
C) very little utility.
D) many production processes.
E) a focus on financial resources.

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

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The term magnitude is used to describe the number of production processes that are used to produce products or services.

A) True
B) False

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A common planning horizon for operational plans is one year.

A) True
B) False

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Phil Johnson is the owner of a small firm that manufactures customized oil-drilling equipment. The company's manufacturing facility is organized into a fabrication section, a heat treatment section, a welding section, and a quality control section. This type of plant layout is referred to as a(n) ____ layout.


A) product
B) pooled manufacturing
C) assembly-line
D) group manufacturing
E) process

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

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When Nabisco introduces Oreos with half chocolate and half peanut butter cream in the middle, it is ____ its Oreos line.


A) refining
B) implementing
C) extending
D) heavily advertising
E) applying

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

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A set of activities intended to identify new ideas and technical advances that may result in new goods and services is called


A) research and development.
B) operations management.
C) design planning.
D) product design.
E) horizon planning.

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

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Steinway, a company that produces concert quality grand pianos, has ivory in storage waiting to be made into piano keys. This ivory is classified as


A) finished-goods inventory.
B) materials requirements planning.
C) raw-materials inventory.
D) work-in-process inventory.
E) raw supplies.

F) B) and D)
G) C) and D)

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A software manufacturer may seriously consider locating its facility in Silicon Valley because


A) the great amounts of electricity that it will need will be readily available.
B) the costs of construction and buildings are low in California.
C) a highly skilled labor force with technology experience will be available.
D) labor rates are likely to be lower in this part of the world than in any other.
E) California is renowned for the exceptional tax benefits packages that it offers.

F) D) and E)
G) B) and E)

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In deciding on a product line, managers should balance ____ and product requirements.


A) convenience goods
B) specialty goods
C) customer preferences
D) demographics
E) last year's sales

F) C) and D)
G) B) and C)

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Describe the operations of a flexible manufacturing system (FMS).

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A flexible manufacturing system (FMS) co...

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When different sequences of operations are required for creating small batches of different products, the type of design or layout used is the


A) product design.
B) product layout.
C) process layout.
D) quota layout.
E) output layout.

F) A) and D)
G) B) and D)

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