Deck 11: Managing Operations

Question 1

________ takes inputs and transforms them through various processes into finished goods and services.

A)Operations management
B)The value chain
C)The operations system
D)Transformation management
E)The output system

Answer 1

C

Question 2

For organisations to improve productivity, they should focus on which of the following?

A)it depends on the industry
B)operations variables only
C)product price
D)people and operations
E)people only

Answer 2

D

Question 3

Productivity includes the overall output of goods and services that is then ________ by the inputs.

A)added
B)divided
C)subtracted
D)multiplied
E)squared

Answer 3

B

Question 4

All of the following are examples of outputs as described by an organisation's operations system EXCEPT ________.

A)sales
B)technology
C)accounting reports
D)motivated employees
E)high rates of return on capital

Question 5

Productivity includes the overall output of goods and services that is then divided by the inputs.

Question 6

If a local bakery shop and cafe bakes bread and cakes for retail and wholesale sale and runs a cafe where you can get breakfast, lunch or morning or afternoon teas it would be considered to be ________.

A)a manufacturing organisation
B)a tertiary organisation
C)both a service and manufacturing organisation
D)a service organisation
E)a primary organisation

Question 7

Indicate which one of the following is NOT mentioned in the textbook as a reason why operations management is important to organisations and managers?

A)It plays a strategic role in an organisation's competitive success.
B)It encompasses social responsibility and ethics.
C)It is important in effectively and efficiently managing productivity.
D)It encompasses both services and manufacturing.
E)both B and C

Question 8

According to your textbook, it is estimated that in Australia approximately ________ of all economic activity are in service industries.

A)68 per cent
B)74 per cent
C)58 per cent
D)70 per cent
E)80 per cent

Question 9

According to the textbook, it is easy to see the operations management process at work in service organisations.

Question 10

All of the following are examples of inputs as described by an organisation's operation system EXCEPT ________.

A)capital
B)information
C)sales
D)materials
E)technology

Question 11

Deming believed that managers were the primary source of increased productivity.

Question 12

Operations management refers to the design, operation and control of the transformation process that utilises labour and machines to produce outputs.

Question 13

________ refers to the transformation process that converts resources such as labour and raw materials into finished goods and services.

A)Control management
B)Transformation management
C)Systems management
D)Operations management
E)Planning management

Question 14

Operations management refers to the transformation process that converts resources such as labour and raw materials into finished goods and services.

Question 15

According to the textbook, it is easy to see the operations management process at work in ________.

A)consulting organisations
B)service organisations
C)financial organisations
D)manufacturing organisations
E)technological organisations

Question 16

Which of the following is NOT an example of an input as described by an organisation's operations system?

A)accounting reports
B)equipment
C)technology
D)people
E)capital

Question 17

It is estimated that in Australia, approximately 35 per cent of all private-sector jobs are in service industries.

Question 18

Which of the following is an accurate statement relevant to operations management principles?

A)Labour is part of the transformation stage and is not considered an input.
B)Operations management concerns the input stage of product development.
C)The outputs of the operations system include both goods and services.
D)Operations managers are not found in the service sector.
E)Output equals capital times materials.

Question 19

According to the textbook, in Australia in the automotive market productivity per employee for PMVs (personal motor vehicles)improved from around ________ per employee in 1991 to something over ________ per employee in 2003.

A)8; 25
B)11; 17.5
C)10; 11.5
D)6)5; 8
E)There was no improvement in those years.

Question 20

For organisations to improve productivity, they should focus on people and operations.

Question 21

According to a survey of manufacturers who have embarked on value chain management initiatives, which of the following was NOT one of the primary benefits cited in your textbook?

A)increased sales
B)improved procurement
C)improved logistics
D)improved product development
E)enhanced customer order management

Question 22

Value chain management is externally oriented and focuses on both incoming materials and outgoing products and services.

Question 23

Which of the following is NOT one of the 14 points from Deming for improving management's productivity?

A)Train your employees in new skills as the need arises.
B)Never be complacent concerning the quality of your product.
C)Raise the quality of your line supervisors.
D)Plan for a long-term future.
E)Deal with as many suppliers as possible.

Question 24

Supply chain management is internally oriented and focuses on efficient flow of incoming materials to organisations.

Question 25

Which of the following statements is true regarding manufacturing management activities from the late 1940s through the mid-1970s?

A)By the late 1970s manufacturers were in a crisis.
B)It was most companies' primary focus.
C)Germany and the United States had similar experiences in this area.
D)It was a critical factor in management career promotion.
E)The United States remained the world leader in this area.

Question 26

According to a survey of manufacturers, there were four primary benefits of value chain management: improved procurement, improved logistics, improved product development and improved customer profitability.

Question 27

In a short essay, define operations management and discuss the importance of this management process.

Question 28

Which of the following is NOT one of Deming's 14 Points for Improving Management's Productivity?

A)Deal with the best and least number of suppliers.
B)Train workers for the job that you are asking them to perform.
C)Do not be complacent concerning the quality of your product.
D)Plan for the immediate future.
E)Establish statistical control over your product processes.

Question 29

In its entirety, the ________ can encompass the supplier's suppliers to the customer's customers.

A)supply chain
B)ethical chain
C)value chain
D)financial chain
E)technology chain

Question 30

Value chain management is the process of managing the entire sequence of integrated activities and information about product flows along the entire value chain.

Question 31

Which of the following is NOT one of Deming's 14 Points for Improving Management's Productivity?

A)Encourage departments to compete.
B)Train your employees to understand statistical methods.
C)Train your employees in new skills as the need arises.
D)Make top managers responsible for implementing the 14 principles.
E)Drive out fear.

Question 32

In its entirety, the value chain can encompass the supplier's suppliers to the customer's customers.

Question 33

The supply chain is the entire series of organisational work activities that add value at each step beginning with the processing of raw materials and ending with finished product in the hands of end users.

Question 34

Deming believed which of the following about productivity?

A)High productivity comes from good people management.
B)Employees should learn movement efficiency, not statistical methods.
C)Managers are the primary source of increased productivity.
D)Training is generally wasted time.
E)Zero defects should be the ultimate quality goal.

Question 35

________ is the performance characteristics, features, attributes and any other aspects of goods and services for which customers are willing to give up resources.

A)Performance
B)Value
C)Conformance
D)Cost
E)Convenience

Question 36

Deming outlined ________ points for improving management's productivity.

A)11
B)9
C)15
D)14
E)7

Question 37

All of the following are mentioned as Deming's 14 Points for Improving Management's Productivity EXCEPT ________.

A)deal with the best and least number of customers
B)drive out fear
C)encourage departments to work closely together
D)raise the quality of your line supervisors
E)plan for the long-term future

Question 38

Managing an organisation from a value chain perspective means the managers decide what value is.

Question 39

The ________ is the entire series of organisational work activities that add value at each step, beginning with the processing of raw materials and ending with finished product in the hands of end users.

A)supply chain
B)value chain
C)financial chain
D)technology chain
E)ethical chain

Question 40

Where did the modern era of manufacturing begin?

A)Wall Street stock brokerage houses
B)automobile factories
C)the coal industry
D)fishing industry
E)US southern cotton mills

Question 41

All of the following are characteristics of value chain management EXCEPT ________.

A)it is effectiveness oriented
B)it is externally oriented
C)it is efficiency oriented
D)it focuses on both incoming materials and outgoing products and services
E)both A and B

Question 42

________ is the process of managing the entire sequence of integrated activities and information about product flows along the entire value chain.

A)Ethical chain management
B)Technological chain management
C)Financial chain management
D)Supply chain management
E)Value chain management

Question 43

In value chain management, it is ultimately ________ that are the ones with the power.

A)suppliers
B)distributors
C)customers
D)manufacturers
E)wholesalers

Question 44

The ways in which organisational work is done is described as ________.

A)policies and procedures
B)goals and objectives
C)organisational processes
D)corporate visions
E)strategy implementation

Question 45

Proprietary company information that's critical to a company's efficient and effective functioning and competitiveness is called intellectual property.

Question 46

Which of the following is NOT a characteristic of supply chain management?

A)It is efficiency oriented.
B)It is internally oriented.
C)It is effectiveness oriented.
D)It focuses on efficient flow of incoming materials to the organisation.
E)both A and B

Question 47

According to the textbook, value chain management radically changes ________.

A)mission statements
B)corporate visions
C)corporate goals and objectives
D)ethical issues
E)organisational processes

Question 48

The ways in which organisational work is done is described as organisational processes.

Question 49

Which of the following is NOT mentioned in the textbook as a question that should be asked for each and every step in the organisational process?

A)How can we better configure our product to satisfy both customers and suppliers?
B)How can we improve customer service?
C)How can the flow of material and information be improved?
D)Where can internal knowledge be leveraged to improve the flow of material and information?
E)How can we make products cheaper?

Question 50

________ management is externally oriented and focuses on both incoming materials and outgoing products and services.

A)Technological chain
B)Ethical chain
C)Financial chain
D)Supply chain
E)Value chain

Question 51

Which of the following is NOT mentioned as a main requirement for successful value chain management?

A)competition
B)technology investment
C)coordination
D)organisational attitudes
E)organisational processes

Question 52

Investment in which of the following types of information technology allows Dell Computer Corporation to meet customer's needs in a way that competitors have been unable to match?

A)the customer website
B)the supplier website
C)the corporate website
D)the company's intranet
E)an intranet site

Question 53

According to the textbook, value chain management can be successful with or without leadership's support.

Question 54

According to a survey of manufacturers who have embarked on value chain management initiatives, ________ was a benefit that companies reported.

A)increased sales
B)cost savings
C)increased market share
D)improved logistics
E)decreased competition

Question 55

According to the textbook, ________ management is internally oriented and focuses on efficient flow of incoming materials to organisations.

A)value chain
B)technological chain
C)supply chain
D)ethical chain
E)financial chain

Question 56

In a short essay, define value chain management and compare it to supply chain management.Next, discuss the goals of value chain management.

Question 57

All of the following are mentioned in the textbook as main requirements for successful value chain management EXCEPT ________.

A)leadership
B)employees
C)competition
D)organisational culture
E)collaboration

Question 58

In contrast to ________ management, which is internally oriented and focuses on the efficient flow of incoming materials to the organisation, ________ management is externally oriented and focuses on both incoming materials and outgoing products and services.

A)service chain; value chain
B)supply chain; value chain
C)value chain; supply chain
D)supply chain; productivity chain
E)value chain; productivity chain

Question 59

Which of the following is a question that should be asked for each and every organisational process?

A)Where can external knowledge be leveraged to improve the flow of material and information?
B)How can we better configure our product to satisfy manufacturers?
C)How can the cash flow be improved?
D)How can we improve customer service?
E)How can we reduce our staffing levels?

Question 60

According to the textbook, innovation is the key description of job design in a value chain organisation.

Question 61

Which of the following obstacles is mentioned in the textbook as the most difficult for managers to handle?

A)required capabilities
B)organisational barriers
C)people
D)technology
E)cultural attitudes

Question 62

Organisational barriers that are among the most difficult obstacles for managers to handle include all of the following EXCEPT ________.

A)reluctance to shake up the status quo
B)security issues
C)refusal to share information
D)incompetent employees
E)both A and B

Question 63

According to the textbook, the ability of a product or service to reliably do what it is supposed to do and to satisfy customer expectations is called quality.

Question 64

All of the following are capabilities that value chain partners must have for successful implementation of value chain management to take place EXCEPT ________.

A)intense coordination and collaboration
B)the ability to configure products to satisfy customers and suppliers
C)the ability to educate internal and external partners
D)the ability to attract additional investors
E)both A and C

Question 65

All of the following are mentioned in the textbook as obstacles in managing the value chain EXCEPT ________.

A)people
B)technology
C)cultural attitudes
D)required capabilities
E)organisational barriers

Question 66

According to the textbook, 'how a product looks and feels' is a description of the aesthetics dimension of product quality.

Question 67

ISO 9000 is a series of international quality management standards established by the International Organisation for Standardisation, which sets uniform guidelines for processes to ensure that products conform to customer requirements.

Question 68

The service quality dimension described as 'giving all customers similar experiences each time' is called consistency.

Question 69

ISO 9000 is a quality standard that establishes a goal of no more than 3.4 defects per million units or procedures.

Question 70

All of the following are mentioned in the textbook as conclusions about how organisational process must change EXCEPT ________.

A)more employees with technical backgrounds need to be hired in order for the organisational process to change effectively
B)selected functions may need to be done collaboratively with other partners in the value chain
C)new measures are needed for evaluating performance of various activities along the value chain
D)better demand forecasting is necessary and possible because of closer ties with customers and suppliers
E)both C and D

Question 71

The product quality dimension described as 'meeting operating specifications over some period of time' is called flexibility.

Question 72

Which of the following is NOT one of the three main human resource requirements for value chain management?

A)positive discipline procedures
B)flexible approaches to job design
C)an effective hiring process
D)ongoing training
E)both B and C

Question 73

The Six Sigma standards have become the internationally recognised standard for evaluating and comparing companies in the global marketplace.

Question 74

The importance of leadership to value chain management is plain and simple - successful value chain management ________.

A)must have a strong leader at the helm
B)is relatively independent of leadership style
C)is a result of leadership
D)is not possible without strong leadership
E)depends on how long the leader is in the company

Question 75

According to the textbook, the two best-known quality goals are Six Sigma and Seven Beta.

Question 76

According to the textbook, ________ is the key description of job design in a value chain organisation.

A)strategy
B)flexibility
C)structure
D)centralisation
E)innovation

Question 77

Accuracy is the service quality dimension described by 'performed correctly each time.'

Question 78

The training component as a human resource requirement for value chain management may include the following EXCEPT ________.

A)how to use information technology software
B)how to cut costs in training
C)how to improve flow of materials throughout the chain
D)how to identify new activities that add value
E)how to improve work activities

Question 79

Proprietary company information that is critical to a company's efficient and effective functioning and competitiveness is called ________.

A)intellectual property
B)management property
C)real property
D)tangible property
E)commercial in confidence

Question 80

Which of the following is NOT mentioned in the textbook as a cultural attitude that supports the successful implementation of value chain management?

A)competition
B)flexibility
C)openness
D)mutual respect
E)collaborating