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Service businesses cannot incorporate quality standards.

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A hospital can effectively handle a maximum number of 300 patients at any one particular time.This is referred to as its _____.


A) agility
B) variability
C) capacity
D) perishability
E) utility

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The output of service providers must be consumed immediately,and only a few services can be saved,stored,resold,or returned.Which characteristic feature of services does this best illustrate?


A) Low degree of customer contact
B) High degree of standardization of outputs
C) Tangibility of outputs
D) Perishability of outputs
E) Uniformity of inputs

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A company involved in large,complex tasks such as construction or exploration and which uses a fixed-position layout is called a(n) :


A) continuous manufacturing organization.
B) intermittent organization.
C) project organization.
D) contract manufacturer.
E) lean manufacturer.

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The process of determining how many supplies and goods are needed,keeping track of quantities on hand,each item's location,and who is responsible for it within an organization is called:


A) facility planning.
B) benchmarking.
C) succession planning.
D) inventory control.
E) affirmative action.

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_____ is a philosophy that uniform commitment to quality in all areas of an organization will promote a culture that meets customers' perceptions of quality.


A) The just-in-time (JIT) inventory concept
B) The service quality model
C) Economies of scale
D) The economic order quantity (EOQ) model
E) Total quality management (TQM)

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For most organizations,the ultimate objective is:


A) to replace quality with productivity in the transformation process.
B) to create intangible outputs using tangible inputs.
C) for operations to be replaced by production and manufacturing.
D) for the produced outputs to be worth more than the cost of inputs.
E) to completely eliminate the transformation process in operations management.

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True Diva Inc.,a reputed brand for women's apparel and accessories,uses contract manufacturers in different countries.The company benefits because of the lower cost of labor and minimal government regulations in other countries than its home country.This is an example of _____.


A) bartering
B) benchmarking
C) outsourcing
D) reverse engineering
E) franchising

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An inventory planning system that schedules the precise quantity of materials needed to make a product is called:


A) succession planning.
B) material-requirements planning.
C) benchmarking.
D) flexible scheduling.
E) capacity-requirements planning.

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All activities involved in obtaining and managing raw materials and component parts,managing finished products,packaging them,and getting them to customers are part of:


A) value chain management.
B) supply chain management.
C) reverse engineering.
D) crowdsourcing.
E) benchmarking.

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From the perspective of operations,the money used to purchase a carpenter's tools and the electricity used to run his power saw are:


A) processes.
B) outputs.
C) stocks.
D) inputs.
E) inventories.

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Which of the following is true of companies employing total quality management (TQM) programs?


A) They know that quality control should be incorporated only in the final stage of the transformation process.
B) They believe that TQM prohibits benchmarking quality standards as it reduces their competitive advantage.
C) They agree that reworking on defective products is the best way to ensure high standards of quality.
D) They know that TQM requires constant improvements in all areas of the company as well as employee empowerment.
E) They view quality control as a function of the operations process and not as an element of the product itself.

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Zoro Inc.,a consumer electronics company,does not store any of its materials in the warehouse.Instead,the company's procurement department orders small quantities of materials as and when they are required.The vendors supply the ordered material directly to the company's manufacturing unit a day or two before the production starts.This arrangement helps Zoro Inc.to reduce costs and boost efficiency.This scenario best illustrates _____.


A) continuous manufacturing systems
B) contract manufacturing
C) just-in-time inventory management
D) crowdsourcing
E) mass customization

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Benchmarking lets an organization:


A) replace quality with productivity.
B) know where it stands competitively in its industry.
C) protect its processes and trade secrets from rival firms.
D) eliminate quality control.
E) limit employee participation in total quality management.

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Building a computer so that the components can be installed in different configurations to meet certain needs of a customer is a result of:


A) flexible manufacturing.
B) modular design.
C) lean manufacturing.
D) standardization.
E) reverse engineering.

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Materials that have been purchased to be used as inputs in making other products are included in:


A) finished products inventory.
B) partial inventory.
C) raw materials inventory.
D) supplier inventory.
E) work-in-process inventory.

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In determining whether a product meets quality standards,inspection processes are most likely to be used when:


A) an inexpensive technique is required.
B) elaborate testing equipment is available.
C) a firm's products are highly standardized.
D) a firm has limited resources to test its products.
E) the potential cost of flawed systems is insignificant.

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A company that manufactures large products,such as houses or bridges,may require that all resources be brought to a central location during production.This type of a facility layout is called a(n) :


A) fixed-position layout.
B) product layout.
C) line layout.
D) web layout.
E) assembly line layout.

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A metal fabrication plant with a cutting department,a drilling department,and a polishing department is using a _____ to organize its facility.


A) fixed-position layout
B) project layout
C) process layout
D) geographical layout
E) customer-based layout

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Operations management has the primary responsibility of:


A) securing funds for the activities of an organization.
B) conducting research on consumer behavior.
C) creating goods and services that satisfy customers.
D) developing only intangible products.
E) replacing quality with productivity in the manufacturing of goods.

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