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

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

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A production process characterized by a short production run and frequent adjustments to machines so that different products can be produced is known as a(n) :


A) just-in-time process.
B) lean manufacturing system.
C) analytic process.
D) intermittent process.

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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.

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Many state and local governments offer tax incentives and government services to attract businesses.

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Production management is the traditional term used to describe all the activities managers do to help their firms create:


A) resources.
B) goods.
C) services.
D) equities.

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One limitation of materials requirement planning (MRP) is that it is not a computer-based approach.

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Manufacturing firms that want to minimize time-to-market are likely to choose facility sites that give them easy access to their preferred modes of transportation.

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A benefit of CAD is:


A) it basically eliminates the need for human intervention.
B) it saves on materials costs.
C) it permits customization without a significant increase in price.
D) it produces a higher quality product which allows the manufacturer to charge more.

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MRP is the acronym for:


A) minimum resource payments.
B) maximized revenue potential.
C) managed resource priorities.
D) materials requirement planning.

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

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

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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.

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A Gantt chart is a bar graph showing production managers what projects are being worked on and the stage of development at any given time.

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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.

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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.

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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.

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The Deming Cycle is:


A) a checklist that enables managers to evaluate employee performance more systematically.
B) a systematic method of evaluating potential facility locations.
C) a process for finding potential quality errors before they occur.
D) a process for using identical production steps in the creation of different types of products.

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A PERT network consists of activities linked by arrows. Suppose two of the activities on the network are labeled "A" and "B." An arrow from "A" to "B" indicates that:


A) the same resources used to complete "A" are also used to complete "B."
B) "A" and "B" can be completed at the same time.
C) "A" takes longer to complete than "B."
D) "A" must be completed before "B" can begin.

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Which of the following statements about facility location is most accurate?


A) Very few firms are still influenced by labor costs when making decisions about where to locate.
B) Recent changes in information technology have led firms to favor locations near major urban areas.
C) Manufacturers often seek to reduce time-to-market by locating facilities in areas with access to key modes of transportation.
D) No matter how large they become, most companies ultimately choose to locate major facilities within a few miles of the area in which they started business.

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