Deck 20: Operations and Services Management

Question 1

Mass customisation - efficient mass production of products meeting specific customer requirements - combines:

A) continuous-process production with mass production.
B) productivity with sustainability.
C) intensive technology with lean production.
D) flexibility with efficiency.
E) All of the options listed

Answer 1

D

Question 2

An organisation can achieve a competitive advantage through which of the following ways?

A) Service quality
B) Customer service
C) Product innovation
D) All of the options listed
E) None of the options listed

Answer 2

D

Question 3

Operating efficiencies that increase productivity can result in:

A) incompetent personnel.
B) inventory surpluses.
C) competitive advantage.
D) None of the options listed
E) All of the options listed

Answer 3

C

Question 4

__________ is the combination of knowledge, skills, equipment, computers and work methods used to transform resource inputs into organisational outputs.

A) An organisational system
B) Technology
C) A business plan
D) Strategy
E) Job design

Question 5

________ aims to design and manufacture products that not only fulfil their working life brief, but considers how their component parts will be recycled at the end of their lives.

A) Remanufacturing
B) Lean production
C) Computer integrated manufacturing
D) Design for disassembly
E) Flexible manufacturing

Question 6

Potential drivers of competitive advantage include the following EXCEPT:

A) product quality.
B) product replication.
C) manufacturing flexibility.
D) speed to market.
E) customer service.

Question 7

Some organisations gain competitive advantage through the use of __________ on their assembly lines.

A) computer software
B) probes
C) robotics
D) electronics
E) laser cutters

Question 8

Technology is the combination of __________ used to transform resource inputs into organisational outputs.

A) communication and decision-making methods.
B) tools and human resources.
C) knowledge, skills, equipment, computers and work methods.
D) strategy and environment.
E) people, strategy and culture.

Question 9

The key result of achieving a competitive advantage is an ability to:

A) dictate consumer needs and preferences.
B) establish a monopolistic market position.
C) consistently do something of high value which one's competitors cannot replicate quickly or do as well.
D) drive the competition out of business and to make extraordinarily high profits.
E) sidestep government regulations.

Question 10

Which option provides a correct match of work activity and the nature of the underlying technology?

A) Oil refineries -- continuous-process production
B) Custom furniture restoration -- mass production
C) Automobile assembly at General Motors -- small-batch production
D) Steel mills -- small-batch production
E) Bicycle manufacture-- mass production

Question 11

Technology that can function like mass production where a client is passed from point to point for various aspects of service delivery is defined as __________ technology.

A) continuous-process
B) long-linked
C) intensive
D) mediating
E) service

Question 12

An organisation that produces a few products by continuously feeding raw materials through a highly automated production system with largely computerized controls is using __________ technology.

A) long-linked
B) supplier-linked
C) mass production
D) intensive
E) continuous-process production

Question 13

Instead of putting things together, __________ takes used items apart and rebuilds them as products to be used again.

A) computer integrated manufacturing
B) design for disassembly
C) remanufacturing
D) flexible manufacturing
E) lean production

Question 14

Technology that links together parties seeking a mutually beneficial exchange of values is defined as __________ technology.

A) service
B) continuous-process
C) long-linked
D) intensive
E) mediating

Question 15

Most organisations have a __________ process that relies on employees finding better ways to do things they do every day.

A) small-batch production
B) continuing improvement
C) production
D) management development
E) competency improvement

Question 16

Typical operations management decisions address all of the following EXCEPT:

A) executive compensation.
B) workflows.
C) inventories.
D) facilities.
E) resource acquisition.

Question 17

______________ is defined as manufacturing where the exploitation of resources and use of technology is consistent with future as well as present needs.

A) Sustainable manufacturing
B) Remanufacturing
C) Flexible manufacturing
D) Mass customisation
E) Lean production

Question 18

The process of managing productive systems that transform resources into finished products is:

A) operations management.
B) entrepreneurship.
C) strategic management.
D) job design.
E) systems analysis.

Question 19

__________ continuously innovates and employs best practices to keep increasing production efficiencies.

A) Customised design
B) Computer-integrated manufacturing
C) Mass customisation
D) Lean production
E) Flexible manufacturing

Question 20

An organisation that manufactures a variety of products crafted to fit customer specifications is using __________ technology.

A) small-batch
B) craft shop
C) mediating
D) intensive
E) continuous-process production

Question 21

The goals of supply chain management are to achieve __________ in all aspects of the supply chain.

A) continuous flow
B) input-output
C) effective flow
D) efficiency
E) innovation

Question 22

An example of a productivity obstacle might be:

A) poor communication.
B) clear objectives.
C) new technology.
D) well-defined priorities.
E) None of the options listed

Question 23

Management of the value chain requires:

A) no analysis of the system.
B) efficient systems.
C) periodic analysis of the system.
D) flexible manufacturing systems.
E) six sigma qualification.

Question 24

An organisation that produces large numbers of uniform products with an assembly-line system is using __________ technology.

A) industrial linkage
B) mass production
C) intensive
D) continuous-process production
E) long-linked

Question 25

Which one of the following trends does NOT play a role in the quality aspects of operations?

A) Mass customisation
B) Boutique engineering
C) Flexible manufacturing
D) Robotics manufacturing
E) Lean production

Question 26

______________ is a trend in manufacturing technology today.

A) Increased focus lean production
B) Increased use of flexible manufacturing
C) Increased emphasis on sustainable manufacturing
D) Increased value in remanufacturing
E) All of the options listed

Question 27

Value chain analysis identifies each step in the value chain to ensure it is:

A) effective.
B) manageable.
C) efficient.
D) consistent.
E) directive.

Question 28

According to the text, which of the following is NOT an element in a value chain?

A) Resources and materials flow in
B) Finished products distributed
C) People and technology create products
D) Materials received and organised for use
E) Productivity increased

Question 29

Sustainable supply chain management is the management of _______________ flows while taking ________________ sustainable development goals into account.

A) inventory, human resource and capital; economic, technological and information
B) quality, inventory and product; economic, technological and information
C) material, information and capital; economic, environmental and social
D) value chain, customer and quality; economic, quality and resource
E) None of the options listed

Question 30

The __________ is calculated by dividing total fixed costs by price minus variable costs.

A) inventory turnover ratio
B) net margin
C) break-even point
D) economic order quantity
E) current ratio

Question 31

Ordering a fixed number of items every time an inventory level falls to a predetermined point is called the:

A) fixed quantity inventory.
B) break-even quantity.
C) quality control paradox.
D) economic order quantity.
E) inventory control number.

Question 32

Consistently doing something of high value that one's competitors cannot replicate quickly or do as well is:

A) a key result of achieving competitive advantage.
B) not possible in today's world.
C) a key result of establishing a union shop.
D) All of the options listed
E) None of the options listed

Question 33

__________ involves strategic management of all operations involving the suppliers of an organisation's resources.

A) Supply chain management
B) Internal customer management
C) Customer relationship management
D) Value chain management
E) Total quality management

Question 34

Productivity is defined as:

A) profit - costs.
B) output/input.
C) current assets/current inputs.
D) input/output.
E) None of the options listed

Question 35

Productivity measures the efficiency with which inputs:

A) are utilised into workflows.
B) provide yield ratios.
C) are captured as measurements.
D) are efficiently streamlined.
E) are transformed into outputs.

Question 36

A quantitative measure of the efficiency with which inputs are transformed into outputs is referred to as:

A) sustainability.
B) operations management.
C) productivity.
D) competitive advantage.
E) None of the options listed

Question 37

Technology that focuses the efforts of many people with special expertise on the needs of clients is defined as __________ technology.

A) continuous-process
B) long-linked
C) intensive
D) mediating
E) service

Question 38

__________ allows automated operations to quickly shift from one task or product type to another.

A) Customised design
B) Agile manufacturing
C) Mass customisation
D) Lean production
E) Flexible manufacturing

Question 39

__________ refers to the quantity and quality of work performance, with resource utilisation taken into account.

A) Efficiency
B) Productivity
C) Profitability
D) Effectiveness
E) Asset management

Question 40

A(n) __________ is a specific sequence of activities that transforms raw materials into a finished good or service.

A) distribution plan
B) materials requirement plan
C) value chain
D) activities system
E) transformational chain

Question 41

Organisations that want to compete in the world marketplace as 'world-class companies' can gain a competitive advantage by having their operations achieve:

A) ISO certification.
B) international Q certification.
C) consumer protection certification.
D) manufacturing supply certification.
E) AAA certification.

Question 42

One of the primary activities of a value chain is:

A) technology development.
B) infrastructure management.
C) procurement.
D) human resource management.
E) marketing and sales.

Question 43

Improving the paint quality on your product to make it last longer for your customer is an example of:

A) value chain management.
B) PERT.
C) value creation.
D) supply chain management.
E) None of the options listed

Question 44

Statistical quality control is the use of statistical techniques to:

A) improve profit margins.
B) determine appropriate debt levels.
C) help make good investment decisions.
D) All of the options listed
E) None of the options listed

Question 45

Break-even analysis can be used to:

A) experiment with different 'what-if' scenarios.
B) improve control.
C) examine the impact of cost control measures.
D) All of the options listed
E) None of the options listed

Question 46

The term total quality management is used to describe the process of:

A) training managers to monitor quality and then making them responsible for overall quality in their areas of responsibility.
B) designing and manufacturing quality products.
C) producing holistic work environments.
D) managing with an organisation-wide commitment to continuous improvement, product quality and customer needs.
E) reducing the need for quality inspections by training employees to be quality conscious.

Question 47

In the context of control systems, __________ involves checking processes, materials, products and services to ensure that they meet high standards.

A) progressive control
B) management process control
C) quality control
D) inventory control
E) purchasing control

Question 48

Individuals in an organisation who depend on the results of others' work in order to do their own jobs well are called:

A) dependent employees.
B) quality experts.
C) internal customers.
D) external customers.
E) jobbers.

Question 49

___________________ is managing the organisation's raw materials, work in process and finished goods. This is essential for effective supply chain management.

A) Inventory management
B) Capacity
C) Supply chain management
D) Product control
E) Product-service mix

Question 50

Scheduling materials to arrive on a timely basis at a workstation or facility in order to reduce costs and improve workflow is known as:

A) management by objectives (MBO).
B) timely inventory control (TIC).
C) efficient production planning (EPP).
D) just-in-time (JIT) scheduling.
E) economic order quantity (EOQ).

Question 51

_________ strategically links all operations dealing with resource supplies.

A) Internal customer management
B) Supply chain management
C) Customer relationship management
D) Value chain management
E) Total quality management

Question 52

Gloria assembles circuit boards in a computer manufacturing plant. She gets the chips for the boards from David, assembles the boards and then forwards them to Judy, who puts them into the finished components. This example illustrates the concept of:

A) Deming's path to quality.
B) efficient task assignments.
C) internal customers, who use the results of others' work to do their job.
D) integrated manufacturing processes.
E) total quality management and shared responsibility.

Question 53

__________ indicates conformance with a rigorous set of international quality standards.

A) Consumer protection certification
B) ISO certification
C) International customer service certification
D) International Q certification
E) AAA certification

Question 54

A well-functioning value chain should involve:

A) a series of consecutive steps that add value to inputs right up to the point that finished goods or services are delivered to the customer.
B) a series of steps done all at once and delivered as cheaply as possible.
C) a production manager to keep watch over the human resource people.
D) a computer-integrated manufacturing system.
E) many levels of management.

Question 55

The __________ occurs where losses end and the firm begins to make a profit.

A) hot stove point
B) net margin
C) break-even point
D) current ratio
E) debt ratio

Question 56

Which OTHER reasons exist for companies to pursue ISO certification?

A) Regulatory requirements
B) Meeting customer expectations
C) Risk management programs
D) All of the options listed
E) None of the options listed

Question 57

For CRM to work well, it takes:

A) money and time.
B) a reduction in the number of corporate VPs.
C) good lobbyists in Washington.
D) holistic view of each customer.
E) All of the options listed

Question 58

Deming's quality principles include:

A) make corrections.
B) tally defects.
C) analyse and trace defects to the sources.
D) All of the options listed
E) None of the options listed

Question 59

To establish a CRM program it is important to know that all customers want:

A) a discount for cash.
B) anything they can get cheap.
C) a rebate if the delivery is late.
D) high quality, low price and satisfaction.
E) a deal.

Question 60

Individuals who purchase the goods or services produced by an organisation are called:

A) external customers.
B) merchants.
C) internal customers.
D) producers.
E) satisfied customers.

Question 61

To compete in the global economy, organisations seek to meet:

A) safety standards.
B) ISO quality standards.
C) regulatory standards.
D) quality assurance standards.
E) total quality management standards.

Question 62

Continuous improvement is the attempt to:

A) look for ways to confirm current production methods.
B) continually watch quality control to detect errors.
C) monitor future production.
D) seek competitive marketing opportunities.
E) continuously improve products, services or processes.

Question 63

Which of the following characteristics does NOT accurately describe the process of total quality management?

A) Applying quality principles to all aspects of operations
B) Committing the organisation to the use of self-managing work teams
C) Developing strong customer relationship management
D) Committing the organisation to continuous quality improvement
E) Making quality principles a part of the organisation's strategic objectives

Question 64

__________ uses the latest information technology that allows organisations to maintain intense communication with customers as well as to gather and utilise data regarding the customers' needs and preferences.

A) Value chain management
B) Customer relationship management
C) Supply chain management
D) Total quality management
E) Internal customer management

Question 65

__________ helps companies improve their task flow.

A) Work delivery plan
B) Operations management
C) Workflow
D) Technical flow
E) Work process

Question 66

Which of the following is NOT a correct description of some attribute of workflow?

A) Special attention should be given to eliminating the role of technology in the work process.
B) The various steps of a work process must be completed to achieve desired results, and they typically must be completed in a given order.
C) An important starting point for re-engineering is to diagram workflows.
D) Workflow refers to the movement of work from one point to another in a system.
E) Each step in the workflow should be analysed to determine whether or not it is adding value.

Question 67

'Total quality management' is a result of the work originally done by:

A) W. Edwards Deming.
B) Peter Drucker.
C) Herman Franks.
D) Harry Truman.
E) Michael Hammer.

Question 68

Reducing costs and increasing efficiency while creating the ever-present capacity for change is one of the prime objectives of:

A) mechanistic organisation design.
B) corporate social responsibility.
C) process re-engineering.
D) cultural management.
E) bureaucracy.

Question 69

In re-engineering core processes, managers should do all of the following EXCEPT:

A) identify the organisation's key strategic objectives.
B) map the core processes with respect to workflows.
C) evaluate all tasks for the core processes.
D) identify the core processes.
E) search for ways to eliminate unnecessary tasks or work.

Question 70

__________ refer(s) to a set of coordinated tasks and activities, both manual and automated, with the purpose of accomplishing a specific business goal.

A) A task group
B) Job relationships
C) Job responsibilities
D) Work processes
E) A job description

Question 71

Through _________, an organisation's core processes are identified and carefully evaluated for their contributions to performance.

A) value chain analysis
B) systems design
C) alternative analysis control
D) process value systems
E) process value analysis

Question 72

_________ usually involves taking samples of work, measuring quality in the samples and determining the acceptability of results.

A) Break-even analysis
B) Statistical quality control
C) Work variation management
D) Work sampling acceptability analysis
E) Just-in-time scheduling

Question 73

An important goal of __________ is redesigning core processes to establish control for them with an identifiable group of people.

A) process re-engineering
B) bureaucracy
C) mechanistic organisation design
D) cultural management
E) corporate social responsibility

Question 74

__________ is/are central to Michael Hammer's approach to process re-engineering.

A) Customers
B) Efficiency
C) Teamwork
D) All of the options listed
E) None of the options listed

Question 75

The goal of process re-engineering is to focus attention on all of the following EXCEPT:

A) improving teamwork performance.
B) continuing the existing ways of doing things.
C) assign control to an identifiable group of people.
D) improving customer satisfaction.
E) eliminate duplication of work and systems bottlenecks.

Question 76

Companies need to maintain _________, especially when the economy has a slowdown to a heavy hit like the global financial crisis?

A) superior service operations
B) executive compensation packages
C) financial returns to stockholders and market share
D) productivity and profitability
E) the recruitment of quality employees

Question 77

Focusing the entire system on meeting customer needs and expectations is a major purpose of:

A) bureaucracy.
B) mechanistic organisation design.
C) corporate social responsibility.
D) process re-engineering.
E) cultural management.

Question 78

In __________, each step in the workflow is examined to determine if it is important, useful and contributing to the value added.

A) process value systems
B) alternative analysis control
C) value chain analysis
D) process value analysis
E) systems design

Question 79

An important aspect of __________ is the belief that organisation members should never be satisfied with performance.

A) continuous improvement
B) performance appraisal
C) supply chain analysis
D) performance management
E) human resources management

Question 80

In re-engineering core processes, managers should do all of the following EXCEPT:

A) search for efficiencies in how work is shared and transferred among people and departments.
B) search for ways to eliminate delays, errors and misunderstandings.
C) evaluate all tasks for the core processes.
D) search for ways to eliminate unnecessary tasks or work.
E) evaluate the validity of the organisation's mission.