Deck 10: Operations Management, Productivity, and Quality

Question 1

When your favourite restaurant prepares your favourite meal, they are creating

A) form utility.
B) price utility.
C) time utility.
D) place utility.
E) ownership utility.

Answer 1

A

Question 2

One of the key differences between service and manufacturing operations is

A) manufacturing products are characterized by intangibility and customization.
B) manufacturing operations feature a unique link between process and outcome.
C) manufacturing operations are less storable.
D) services are performed, but goods are produced.
E) services focus on the outcome of the production process.

Answer 2

D

Question 3

When a company uses an intensive distribution strategy, it is facilitating ________ utility.

A) ownership
B) form
C) place
D) interval
E) time

Answer 3

C

Question 4

Suppose that you have no clean clothes, but you have a job interview tomorrow. You normally never use any other type of laundry detergent other than your regular brand. You find that it is currently sold out at your local convenience store, so you decide to buy the store brand because it best satisfies your need for

A) possession utility.
B) place utility.
C) time utility.
D) interval utility.
E) ownership utility.

Question 5

The term service operations refers to

A) production activities that yield tangible products.
B) production activities that yield tangible and intangible service products.
C) firms that make tangible products.
D) service activities that yield intangible products.
E) service activities that yield tangible products.

Question 6

Which of the following is not a form of utility?

A) Form utility
B) Price utility
C) Place utility
D) Time utility
E) Ownership utility

Question 7

The quality of a product that satisfies a human need during its consumption is known as

A) ownership utility.
B) place utility.
C) need utility.
D) form utility.
E) time utility.

Question 8

By making a product available for consumers to use, ________ is created.

A) price utility
B) place utility
C) ownership utility
D) time utility
E) form utility

Question 9

In many parts of the world, public washrooms are available on a pay per use basis. What form of utility does this service maximize most to its users?

A) Place utility
B) Form utility
C) Interval utility
D) Time utility
E) Ownership utility

Question 10

By making a product that customers can take pride in having, production creates

A) resale value utility.
B) form utility.
C) time utility.
D) operational utility.
E) ownership utility.

Question 11

By accepting major credit cards, a retail outlet has created

A) price utility.
B) time utility.
C) ownership utility.
D) form utility.
E) place utility.

Question 12

If an Air Canada flight from Toronto to Calgary has 20 empty seats, this illustrates the unique service characteristic of

A) intangibility.
B) unstorability.
C) demand.
D) customization.
E) oversupply.

Question 13

Which of the following statements regarding production operations is accurate?

A) The first industrial revolution occurred in England in the 1800s and the second in China during the 1990s.
B) The factory is no longer the centrepiece for manufacturing.
C) The development of 3-D printing illustrates the third industrial revolution.
D) Production operations remain environmentally unfriendly.
E) All of these statements are true.

Question 14

The clerk at the 7-Eleven store and the morning radio announcer are examples of people who work in ________, while companies that make things like radios and automobiles are engaged in ________.

A) minimum wage operations; maximum wage operations
B) goods production; service operations
C) service operations; goods production
D) high-contact operations; low-contact operations
E) none of these

Question 15

The so-called third industrial revolution emphasizes

A) greater productivity in services operations than in manufacturing operations.
B) a decreasing emphasis on manufacturing in North America and an increasing emphasis on manufacturing in China.
C) trade deficits in the advanced industrial countries and trade surpluses in developing countries.
D) new technologies, software, robots, and miniaturization.
E) movement of industrial facilities away from downtown areas and toward suburban areas.

Question 16

A soft drink manufacturer who has many outlets for its product is providing

A) place utility.
B) ownership utility.
C) form utility.
D) price utility.
E) time utility.

Question 17

Which of the following are unique aspects that separate services from goods?

A) Intangibility and warranties
B) High-contact and low-contact
C) Time and place utility
D) Intangibility and unstorability
E) Form and time utility

Question 18

When comparing manufacturing and service operations, it is correct to say that

A) only manufacturing operations transform raw materials into finished products.
B) most service operations are pure service.
C) service operations are more complex than goods production.
D) quality considerations are defined and managed in a similar way in both the service sector and in manufacturing operations.
E) all of these statements are correct.

Question 19

When steel is turned into a finished good like a car, ________ utility has been created.

A) place
B) time
C) interval
D) ownership
E) form

Question 20

________ utility deals with when a product is provided, whereas ________ utility deals with where a product is provided.

A) Time; possession
B) Place; time
C) Time; place
D) Form; time
E) Ownership; form

Question 21

When you have your hair cut and styled the way you like it, it illustrates the unique service characteristic of

A) unstorability.
B) customization.
C) past experience.
D) intangibility.
E) warranties.

Question 22

Service products are characterized by three key qualities

A) intangibility, uncustomized, and unstorability.
B) intangibility, customization, and unstorability.
C) intangibility, customization, and storability.
D) tangibility, customization, and storability.
E) tangibility, uncustomized, and storability.

Question 23

Carolyn's car needs a tune-up so she has taken it to her favourite mechanic for repair. This type of service system is a ________ system.

A) low-interaction
B) passive
C) high-interaction
D) low-contact
E) high-contact

Question 24

This transformation process puts together various components and is common in the electronics, appliance, and automotive industries. It is the

A) clerical process.
B) transport process.
C) chemical process.
D) fabrication process.
E) assembly process.

Question 25

Which of the following would be considered a high-contact system?

A) Gas company
B) Electric company
C) Lawn care company
D) Barber shop
E) Postal delivery

Question 26

Of the following products/services, which is the most tangible?

A) Child care
B) A restaurant meal
C) Car repair
D) Clothing
E) Dental work

Question 27

In a ________ system, the customer is an active participant, but in a ________ system, the customer is not an active participant.

A) low-contact; high-contact
B) active; inactive
C) high-contact; low-contact
D) high-interaction; low-interaction
E) low-interaction; high-interaction

Question 28

How does an analytic production process work?

A) It breaks down the basic resources into components.
B) A cost analysis is made to determine the best way to ship the product to another location.
C) It combines a number of raw materials into a finished product.
D) It puts together several components.
E) Raw materials are chemically altered.

Question 29

Which of the following transformation techniques mechanically alters the basic shape or form of the product?

A) Chemical process
B) Quality process
C) Fabrication process
D) Assembly process
E) Transport process

Question 30

Lumber companies convert raw lumber into dimensional lumber and paper products through a(n) ________ process.

A) synthetic
B) fabrication
C) assembly
D) analytic
E) chemical

Question 31

This transformation process involves goods being sent from manufacturing sites to consumers through warehouses to retail locations. It is the

A) fabrication process.
B) chemical process.
C) clerical process.
D) assembly process.
E) transport process.

Question 32

This transformation process combines data on such items as employee absences, machine breakdowns, and inventory reports. It is the

A) assembly process.
B) fabrication process.
C) chemical process.
D) transport process.
E) clerical process.

Question 33

What kind of transformation occurs in an assembly process?

A) Various components are transported from one location to another.
B) Data are combined into useable information for a management report.
C) Various components are put together to create a new product.
D) Finished products are taken apart for inspection.
E) Raw materials are mechanically altered.

Question 34

A public transit system is an example of a ________ process, while a cheque processing operation at a bank is a ________ process.

A) fabrication; chemical
B) transport; fabrication
C) high-contact; low-contact
D) low-contact; high-contact
E) goods producing; service producing

Question 35

This transformation process alters the basic composition of raw materials and is used in industries like aluminum, steel, fertilizer, petroleum, and paint. It is the

A) chemical process.
B) fabrication process.
C) transport process.
D) clerical process.
E) assembly process.

Question 36

Which of the following would be considered a low-contact service?

A) Surgery
B) Haircut
C) Massage
D) Electric power
E) Piano lesson

Question 37

Tyson reduces whole chickens into packaged parts through a(n) ________ process.

A) chemical
B) fabrication
C) synthetic
D) analytic
E) assembly

Question 38

Car repair is classified as a low-contact system because

A) the customer has to wait for the repair work to be done.
B) the work that is done is highly technical and requires skilled technicians.
C) the customer does not have to be present in order for the service to be performed.
D) customer satisfaction is an important consideration in the provision of the service.
E) the statement is in error; car repair is not a low-contact system.

Question 39

You have gone to the doctor to check out some recent pains. The quality of her expertise to find and diagnose the problem is an illustration of the unique service characteristic of

A) intangibility.
B) warrantees.
C) customization.
D) perishability.
E) past experience.

Question 40

The production process which combines a number of raw materials into a new finished product (e.g., paint) is known as

A) creating place utility.
B) an analytic process.
C) a transformation process.
D) a synthetic process.
E) creating time utility.

Question 41

Most firms plan to be able to produce ________ product than is normally demanded.

A) substantially more
B) slightly less
C) slightly more
D) the same amount of
E) substantially less

Question 42

3M uses which strategy for attracting customers?

A) Quality
B) Low-cost
C) Dependability
D) Flexibility
E) Consistency

Question 43

What is an option for companies that want to have a capacity to meet peak demand?

A) Plan for peak demand by having, for example, all cash registers open three days before Christmas
B) Use a qualitative forecast to determine average demand
C) Attempt to meet most, but not all, peak demands
D) Plan for normal demand
E) Lower prices of the products that are being produced

Question 44

Mega Computers services and upgrades the computers that it sells. In sizing its service operations it should use

A) peak demand.
B) average demand.
C) low demand.
D) high demand.
E) normal demand.

Question 45

In a process layout

A) a single factory uses automation to produce a wide variety of products.
B) equipment and people are grouped according to function.
C) a service is analyzed by showing the flow of processes that constitute it.
D) production activities are designed to make one type of product in a fixed sequence.
E) production facilities are designed to move families of products through similar flow paths.

Question 46

In a(n) ________ layout, equipment and people are grouped together according to their function.

A) assembly line
B) process
C) product
D) customer-oriented
E) flexible

Question 47

In terms of business strategy as a driver of operations, 3M uses the ________ strategy, while FedEx uses the ________ strategy.

A) quality; dependability
B) flexibility; dependability
C) quality; flexibility
D) lower price; quality
E) lower price; flexibility

Question 48

The number of customers that Bob's Barbecue serves varies considerably from hour to hour. In determining the number of cash registers to install, they should use

A) average demand.
B) peak demand.
C) low demand.
D) high demand.
E) normal demand.

Question 49

Because Toyota emphasizes ________, its operations capabilities emphasize ________.

A) quality; automated equipment for consistent product buildup
B) dependability; wireless information system to track packages
C) quality; production capacity
D) flexibility; excess production capacity
E) dependability; quality control procedures

Question 50

In businesses like restaurants or supermarkets, the business is sized to meet a level of

A) normal demand.
B) low demand.
C) peak demand.
D) average demand.
E) high demand.

Question 51

Because FedEx emphasizes ________, its operations capabilities emphasize ________.

A) quality; quality control procedures
B) dependability; wireless information system to track packages
C) low prices; cost control
D) flexibility; excess production capacity
E) dependability; quality control procedures

Question 52

What is the most logical sequence of steps in a production planning and control system?

A) Business plan, long-range operations plan, operations control, operations schedules, output to customers
B) Operations control, operations schedules, output to customers, long-range operations plan, business plan
C) Business plan, operations control, operations schedules, long-range operations plan, output to customers
D) Business plan, long-range operations plan, operations schedules, operations control, output to customers
E) Business plan, operations control, operations schedules, output to customers, long-range operations plan

Question 53

In terms of business strategy as a driver of operations, Toyota uses the ________ strategy, while 3M uses the ________ strategy.

A) quality; dependability
B) flexibility; dependability
C) quality; flexibility
D) lower price; quality
E) lower price; flexibility

Question 54

In low-contact systems, capacity should be set ________ the average level of demand, while in high-contact systems managers must plan to meet ________ demand.

A) less than; peak
B) more than; peak
C) equal to; average
D) equal to; peak
E) less than; average

Question 55

Meredith is creating an operations planning and control system for a manufacturer. What should she do first?

A) Conduct production control
B) Develop a long-range production plan
C) Send output to customers
D) Develop production schedules
E) Review the company's business plan

Question 56

In ________ systems, capacity should be set at the level of ________, while in ________ systems, capacity should be set at the level of ________.

A) high-contact; peak demand; low-contact; average demand
B) low-contact; peak demand; high-contact; average demand
C) low-contact; peak demand; low-contact; average demand
D) high-contact; average demand; high-contact; peak demand
E) none of these

Question 57

The amount of a product that a company can produce under normal working conditions is its

A) capability.
B) scheduled capacity.
C) scheduled capability.
D) capacity.
E) normal capacity.

Question 58

Thousands of empty jugs move down a conveyor belt at a factory before stopping to be filled and moving on to be labeled. What type of layout is utilized?

A) Supply chain
B) Custom products
C) Hybrid
D) Fixed position
E) Same steps

Question 59

What is one reason why it is a bad idea for a company to have excess capacity?

A) Wastes raw materials
B) Increases customer dissatisfaction
C) Ties up money in extra machines
D) Decreases form utility
E) Slows delivery of product

Question 60

The most important factor in location planning for high-contact businesses is ________, but for low-contact business the most important factor in location planning is ________.

A) availability of labour; proximity to customers
B) proximity to customers; community living conditions
C) community living conditions; transportation costs
D) transportation costs; proximity to resource supplies
E) proximity to customers; proximity to resource supplies

Question 61

A ________ diagrams steps to be performed and specifies the time required to complete each step.

A) master production schedule
B) Gantt chart
C) PERT chart
D) materials requirement planning document
E) methods improvement system

Question 62

Ed's job responsibilities include the receiving, storing, handling, and counting of all raw materials. He is probably in the ________ function.

A) inventory control
B) transportation
C) quality control
D) warehousing
E) purchasing

Question 63

What is the meaning of "operations control"?

A) Planning and organizing the flow of materials
B) Purchasing the right raw materials, in the right quantity, at the right price, and at the right time
C) Checking to ensure that production decisions are being implemented
D) Stocking items needed for production that are themselves produced within the firm
E) Monitoring production performance by comparing results with plans and schedules

Question 64

Once plans identify needed resources and how they will be used to reach a firm's goals, managers must develop timetables for acquiring resources for production. This aspect of operations is called

A) resourcing.
B) planning.
C) timing.
D) controlling.
E) scheduling.

Question 65

Nissan, Toyota, and Honda now build several different models of cars using the same basic "platform." This is an example of

A) process layout.
B) soft manufacturing.
C) flexible manufacturing systems.
D) the movable factory.
E) quality control.

Question 66

The schedule that shows which products will be produced, when production will occur, and what resources will be used during specified time frames is called a(n)

A) inventory control schedule.
B) master production schedule.
C) control chart.
D) short-term detailed production schedule.
E) material requirements plan.

Question 67

John's job responsibilities include the acquisition of all the raw materials and services that the company needs to produce its products. He is most likely in the ________ function.

A) warehousing
B) transportation
C) quality control
D) inventory control
E) purchasing

Question 68

In a custom cake bakery, blending of ingredients is done in the mixing area, baking occurs in the oven area, and decorations are applied in the finishing area. This is an example of which layout?

A) FMS
B) Customer
C) Process
D) Fixed-position
E) Product

Question 69

Planning, organizing, and controlling the flow of materials from design through distribution of finished goods is

A) quality control.
B) material requirements planning.
C) statistical process control.
D) materials management.
E) inventory planning and control.

Question 70

The layout that simplifies work tasks and uses unskilled labour is the ________ layout.

A) customer
B) process
C) product
D) quality control
E) fixed-position

Question 71

What is the difference between soft manufacturing and flexible manufacturing?

A) Soft manufacturing emphasizes smaller groups of machines than flexible manufacturing does.
B) Flexible manufacturing has been shown to be more effective than soft manufacturing.
C) Soft manufacturing is based on the idea that machines can generally do better work than humans, while flexible manufacturing is based on the opposite assumption.
D) Flexible manufacturing emphasizes efficiency, while soft manufacturing emphasizes effectiveness.
E) There are no differences between the two concepts.

Question 72

What does a just-in-time production system attempt to accomplish?

A) Materials and parts needed at each production step are brought together at the right time
B) Attempts to control the overall production process
C) Shows when production must be completed to satisfy consumer demand just-in-time
D) Shows the critical path where production problems will be the most damaging to the schedule
E) Breaks down the production process into steps necessary for completion

Question 73

The main advantage of process layouts is

A) speed.
B) flexibility.
C) low cost.
D) high employee morale.
E) efficiency.

Question 74

Tom is concerned with the storage of both incoming materials for production and finished goods for distribution to customers. Tom's job is in the ________ area.

A) inventory control
B) purchasing
C) transportation
D) warehousing
E) quality control

Question 75

A fixed position layout

A) Is generally superior to a same-steps layout.
B) Is used when the product remains in one place and the necessary equipment is moved to that place.
C) Is used when the service must come to the customer, not the other way around.
D) can be used only in the manufacturing of physical products.
E) all of these are correct.

Question 76

The typical layout in automobile, food-processing, and computer assembly plants is the ________ layout.

A) product
B) fixed-position
C) process
D) customer
E) none of these

Question 77

What is the difference between a Gantt chart and a PERT chart?

A) Gantt charts are used for planning service activities, while PERT charts are used for planning production activities.
B) PERT charts show the critical path for meeting project goals, but Gantt charts do not.
C) Gantt charts focus more on efficiency, while PERT charts focus more on effectiveness.
D) PERT charts were formerly used more widely than Gantt charts, but the reverse is now true.
E) There actually is no difference between Gantt charts and PERT charts; they are both used to schedule activities.

Question 78

Betty is a production supervisor in a leather goods factory. Her main responsibility is operations control. Betty would probably be most concerned with

A) determining what products to produce.
B) deciding how to produce products.
C) deciding on product pricing.
D) ensuring that production plans or schedules are met.
E) deciding where to produce the products.

Question 79

A product layout is

A) a spatial arrangement of production activities designed to make one type of product in a fixed sequence.
B) a spatial arrangement of production activities that groups equipment and people according to function.
C) a method for analyzing a service by showing the flow of processes that constitutes it.
D) a spatial arrangement of production facilities designed to move families of products through similar flow paths.
E) a production system in which a single factory uses automation to produce a wide variety of products.

Question 80

All of the following are characteristics of soft manufacturing except

A) emphasis on computer software and computer networks.
B) automation is used only for highly repetitive tasks.
C) robots play a supporting role in the manufacturing process.
D) it allows for customizability of the end product.
E) focus on production machines.