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In a nonprofit organization like Habitat for Humanity,inputs such as money,materials,information,and volunteer time and labor are used to transform raw materials into homes for needy families.

A) True
B) False

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Variations in demand,service requirements,and the intangibility of the product make measuring productivity more difficult for manufacturers.

A) True
B) False

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Describe the transformation process,from inputs to outputs,for a product or service of your choosing.

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Students' answers will vary de...

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Quality is a critical element of operations management.

A) True
B) False

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What is operations management?

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Operations management is the development...

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A just-in-time inventory management system saves money and requires less storage space by using smaller amounts of materials that arrive just when they are needed.

A) True
B) False

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The degree to which a good or service meets the demands and requirements of customers is called customer satisfaction.

A) True
B) False

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Operations management includes responsibility for


A) customer service.
B) inputs and outputs.
C) product development.
D) pricing.
E) promotion.

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

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What is quality control?

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Quality control refers to the processes ...

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A planning system that schedules the precise quantity of materials needed for production is called


A) just-in-time management.
B) material-requirements planning.
C) economic order quantities.
D) flexible scheduling.
E) cycle time management.

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

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Taxes are an important consideration when deciding where to locate a production facility.

A) True
B) False

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What is the economic order quantity model?

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To control the number of items maintaine...

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It is desirable to test only a sample of the product in all of the following circumstances except when


A) inspection procedures are expensive.
B) elaborate testing equipment is required.
C) testing takes a significant number of hours to complete.
D) the product is destroyed by sampling.
E) sampling is the cheapest option and does not destroy the product

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

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The fact that a hairdresser gives each customer a different haircut relates to which of the following points of difference between service providers and manufacturers?


A) Nature and consumption of output.
B) Uniformity of inputs.
C) Labor required.
D) Measurement of productivity.
E) Uniformity of output.

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

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To ensure quality and efficiency,operations managers take ________ at various points in the transformation process and compare them to established standards.


A) breaks
B) samples
C) calculations
D) marketing research
E) feedback

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

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The first step in quality control for any organization is


A) inspection.
B) establishing standards.
C) sampling.
D) implementation.
E) correction.

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

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A primary reason for using standardization is to


A) reduce production costs.
B) increase consumer options.
C) reduce product quality.
D) increase variations.
E) foster creativity.

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

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How could this product introduction have been coordinated to avoid the problems that were encountered?

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Introduction of this product could have ...

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A company that uses a fixed-position layout is often called a project organization because it is involved in large,complex projects.

A) True
B) False

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Building a computer so that components can be installed in different configurations to meet customers' needs is a result of


A) flexible manufacturing.
B) modular design.
C) customization.
D) specialization.
E) varied engineering.

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

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