Deck 1: Introduction: Why Operations Management

Question 1

The present and future manager must have functional expertise and does not need an enterprise perspective.

Answer 1

False

Question 2

Scientific Management embraces the idea that there is a "best way" to perform a task.

Answer 2

True

Question 3

In the not-too-distant future many traditional manufacturing firms and other consumer product manufacturers will not manufacture at all anymore.

Answer 3

True

Question 4

Craft production depends on unskilled laborers to produce products

Question 5

Manufacturers are outsourcing less of their needs and at the same time becoming more directly linked to the customer through service.

Question 6

In a knowledge-based economy, innovations substitute knowledge for other capital.

Question 7

Profitability differs from profit in that profitability measures productivity.

Question 8

Like cost, quality, and timeliness; processes and capabilities are also viewed by customers as a component of value.

Question 9

The following are typical resources managed by businesses: inventory, capacity, facilities and patents.

Question 10

Which of the following are saleable outputs of a business?

A) Products and Services
B) Quality and Speed
C) Capacity and Facilities
D) Value and Quality

Question 11

Processes are made up of

A) Activities
B) Capabilities
C) Value
D) Value components
E) None of the above

Question 12

According to the resource/profit model, the overriding objective of the business is:

A) Profit
B) Value
C) Strategy
D) Profitability
E) None of the above

Question 13

Timeliness refers to whether a product or service

A) Is not obsolete
B) Is produced without taking too much labor
C) Uses exactly the correct amount of capacity
D) Created, delivered, and available when it is supposed to be
E) None of the above

Question 14

The difference between something's market value and the cost of creating it creates a potential for:

A) Net worth
B) Profitability
C) Reduced costs
D) Sales
E) None of the above

Question 15

The two critical roles played by processes in defining the value of a product or service are:

A) Processes contribute value and also contribute costs
B) Processes contribute value as well as differentiation.
C) Processes reduce costs and enhance benefits to consumers
D) Processes enhance perceived value and reduce perceived costs.
E) None of the above

Question 16

The components of value included in the resource profit model are:

A) Benefits, timeliness, and processes
B) Strategy, capabilities, and processes
C) Strategy, Profitability, and market share
D) Cost, quality, timeliness
E) None of the above

Question 17

Integrative management frameworks:

A) Eliminate the need for managerial accounting
B) Replace profitability measures for measuring performance
C) Help managers make day-to-day decisions that are consistent with goals
D) Eliminate guesswork in decision-making
E) Rarely become part of good management practice

Question 18

A technology that displaces an existing technology is often referred to as:

A) A progressive technology
B) A life cycle
C) A disruptive technology
D) A competitive advantage

Question 19

A critical ramification of the intangible nature of services is:

A) Service quality is easier to measure than product quality
B) Consumers do not care about service processes as much as they care about service outcomes
C) Waiting lines are a frequent quality concern for service managers
D) Services cannot be stored for future use.

Question 20

B2C refers to:

A) A business selling to a business
B) A business shifting its capacity
C) A cost reduction effort
D) A business selling to a consumer

Question 21

Which of the following is often more important for business customers than consumer customers?

A) Cost
B) Timeliness
C) Product quality
D) Value
E) Service quality

Question 22

Mass customization:

A) Will probably never exist
B) Is an objective of many U.S. manufacturers
C) Occurred as a result of the just-in-time revolution of the 1980's
D) Has already been achieved in the service sector.

Question 23

A strategy is

A) A plan for maximizing profitability
B) A plan for designing effective processes
C) A plan for how the business will continue to be profitable in the future
D) A plan for beating competitors
E) None of the above

Question 24

Which of the following is not an integrative management framework in the resource/profit model?

A) Lean systems
B) Constraint management
C) Customer relationship management
D) Supply chain management

Question 25

The most influential environmental force that product- and service- oriented firms must deal with is:

A) Globalization
B) The Internet
C) Regulatory forces
D) The natural environment
E) None of the above

Question 26

Constraint management focuses on:

A) Controlling employee behavior by establishing constraints
B) Cost reduction
C) How a limiting resource can determine system productivity
D) Reducing costs through elimination of process tasks
E) None of the above

Question 27

Lean systems refers to

A) Systems with very little waste and low inventory
B) Systems that add very little value
C) Systems that outsource all processing steps
D) Systems that depend on external suppliers for capacity
E) None of the above

Question 28

In a knowledge-based economy, _______ substitute _______ for other capital.

Question 29

If profitability is the answer to the ___ question of a business's existence, then value answers the ____ question.

Question 30

Inventory is a (n) _______ on the balance sheet, but has characteristics of a (n) _______ as well.

Question 31

_______ ________ ________ provide a set of principles that eliminate the need to evaluate day-to-day decisions on the basis of profitability.

Question 32

A close match between the _____ rate and the _____ rate is critical for services because services can't be stored for future use.

Question 33

Match these items.

-Integrative Management Framework

A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Question 34

Match these items.

-Lean systems

A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Question 35

Match these items.

-Inventory

A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Question 36

Match these items.

-Capacity

A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Question 37

Match these items.

-Craft Production

A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Question 38

Match these items.

-Profitability

A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Question 39

Match these items.

-Capability

A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Question 40

Match these items.

-Strategy

A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Question 41

Match these items.

-Timeliness

A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Question 42

Match these items.

-Constraint Management

A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Question 43

Explain the key differences between products and services.

Question 44

Define the relationship among resources, processes, capabilities, and value.

Question 45

Why might value be defined differently by consumer customers than business customers?

Question 46

Explain why operations management is an important subject for all business students.

Question 47

List all the activities involved in registering for courses at your university or obtaining a mortgage for your home. Which of these activities do you think add value? Which do not? If you could improve the process by eliminating non-value activities, how would you go about doing it? How would the value (from your perspective) resulting from the process be improved if the non-value adding activities were eliminated?

Question 48

You are in need of two computers: one for personal use and the other for work use. When making your decision, what value attributes would you consider most important when purchasing the computer for personal use? What value attributes do you consider most important when purchasing the computer for work use? Which components of value would be the most critical for each situation?