Deck 15: Operations Management

Question 1

In a transformation process, people are considered to be inputs because they ________.

A)are material beings
B)are costly
C)perform tasks that are needed to create outputs
D)have knowledge and information

Answer 1

C

Question 2

You would expect a highly developed country like ________ to have a predominantly ________ economy.

A)France; manufacturing
B)France; service
C)Vietnam; service
D)the United Kingdom; manufacturing

Answer 2

B

Question 3

Service organizations ________.

A)produce physical and nonphysical outputs
B)produce physical outputs
C)require nonphysical inputs
D)produce nonphysical outputs

Answer 3

D

Question 4

Value is created during the process of ________.

A)inputs being converted into outputs
B)inputs being stored
C)outputs being measured
D)operations being controlled

Question 5

You would expect an undeveloped country like ________ to have a predominately ________ economy.

A)Laos; nonservice
B)Laos; service
C)Great Britian; manufacturing
D)Belgium; nonservice

Question 6

In the ever more difficult struggle to survive in a competitive world, Evans Findings Company has a work shift with ________.

A)extra employees to increase productivity
B)no employees to allow workers to rest
C)no employees to punish unproductive workers
D)no employees to increase productivity

Question 7

The transformation process transforms ________.

A)goods and services into products
B)inputs into services only
C)materials into goods only
D)inputs into goods and services

Question 8

Most countries in today's global business climate see ________ as the key to success.

A)maintaining productivity
B)increasing productivity
C)higher wages
D)shorter working hours

Question 9

The purpose of operations management is to manage ________.

A)inputs
B)outputs
C)the transformation process
D)the manufacturing process

Question 10

As a product, piano lessons are ________.

A)a good because you can purchase them
B)a service because they are nonmaterial
C)a good because they can be divided into discrete lessons
D)a service because someone needs to give them

Question 11

A laptop computer company is a ________ organization because its product is ________.

A)service; electronic
B)manufacturing; electronic
C)service; a computer
D)manufacturing; a computer

Question 12

It is estimated that in the United States, about ________ of all economic output is toward making tangible, physical objects.

A)10 percent
B)20 percent
C)40 percent
D)80 percent

Question 13

Manufacturing organizations ________.

A)produce physical outputs
B)produce nonphysical outputs
C)require nonphysical inputs
D)require physical inputs

Question 14

________ management oversees the transformation process that converts resources such as labor and raw materials into finished goods and services.

A)Control
B)Operations
C)Systems
D)Planning

Question 15

Which of the following is NOT an example of a service organization?

A)a military force
B)a university
C)a lens maker
D)a hospital

Question 16

Inputs in the transformation process include ________.

A)physical, material substances only
B)both material and nonmaterial items
C)nonmaterial items only
D)equipment and materials only

Question 17

A bus company is a ________ organization because its product is ________.

A)service; buses
B)manufacturing; transportation
C)service; transportation
D)manufacturing; buses

Question 18

It is easier to see the transformation process at work in manufacturing organizations than in service organizations because manufacturing organizations ________.

A)produce goods and services
B)turn inputs into outputs
C)turn inputs into physical and nonphysical products
D)produce physical goods

Question 19

All organizations produce goods or services through the ________ process.

A)transformation
B)service
C)manufacturing
D)operations

Question 20

McDonald's recently made productivity gains by cutting the ________.

A)wages of workers
B)weight of an order of French fries
C)time workers were trained
D)time it takes to make French fries

Question 21

Deming felt that doing quality work was this.

A)a job requirement
B)a goal
C)a standard to strive toward
D)optional for most jobs

Question 22

After World War II, U.S.managers made the mistake of thinking that ________.

A)production problems were solved
B)marketing problems were solved
C)finance problems were solved
D)marketing problems were not solved

Question 23

Where did the modern era of manufacturing primarily begin?

A)the coal industry
B)Detroit automobile factories
C)southern cotton plantations
D)northeastern textile mills

Question 24

Which of the following is NOT a way to increase productivity?

A)increase inputs
B)decrease costs
C)increase outputs
D)increase efficiency

Question 25

Deming was a strong believer in keeping accurate statistics and advocated ________ goals.

A)strictly nonnumerical
B)strictly numerical
C)both numerical and nonnumerical
D)both numerical and statistical

Question 26

With respect to product quality, Deming believed that a company should never ________.

A)pay more attention to quality than to price
B)be satisfied with its current level of quality
C)try to fix a product if it "ain't broke"
D)put quality ahead of profits

Question 27

With respect to planning, Deming believed that ________ was most important for productivity.

A)short-term planning
B)long-term planning
C)medium-term planning
D)flexible planning

Question 28

Managers in the United States today see this as the path to establishing and maintaining global leadership.

A)reducing costs
B)increasing production
C)operations management
D)scientific management

Question 29

When inputs are turned into goods and services, value is created.

Question 30

Operations management includes service industries but not manufacturing firms.

Question 31

W.Edwards Deming thought that ________ the key to productivity.

A)workers were
B)controlling costs was
C)managers were
D)both managers and workers were

Question 32

The goal of operations management is to manage the process of turning labor and raw materials into goods and services of some type.

Question 33

Deming felt that ________ with statistics.

A)employees should be capable of dealing
B)employees should not be asked to deal
C)managers only should deal
D)employees only should deal

Question 34

Employees are considered an input in transformation process.

Question 35

Manufacturing and service organizations produce both physical and nonphysical outputs.

Question 36

Operations management is a subsystem of the transformation process.

Question 37

In the 1970s, many U.S.manufacturers fell behind because they ignored production issues and focused on ________.

A)quality and efficiency
B)marketing and finance
C)efficiency and customers
D)finance and quality

Question 38

Deming felt that any new skills that employees needed should be acquired ________.

A)when they are hired and trained
B)by the employees on their own
C)when the need arises
D)years ahead of time

Question 39

Since Deming first proposed his 14 points for improving productivity, his prescriptions have ________.

A)been largely discredited
B)fallen into disuse
C)been confirmed repeatedly
D)been confirmed for U.S. workers only

Question 40

Of all the emotions that affect a workplace, Deming felt that ________ was most important for increasing productivity.

A)making workers fear failure
B)eliminating fear
C)making employees happy
D)eliminating anger

Question 41

Operations management is likely to play a key role in American firms regaining their preeminence among world companies.

Question 42

According to W.Edwards Deming, managers should emphasize short-term rather than long-term planning.

Question 43

Deming advocated an approach in which managers never get complacent about the quality of their product.

Question 44

For most U.S.companies, high productivity is a matter of survival.

Question 45

In a short essay, define and describe operations management.

Question 46

Value is any aspect of a product that customers ________ in the product.

A)like or admire
B)want to see
C)will pay for
D)notice

Question 47

Deming's 14 points were useful in their time but are now largely considered to be obsolete.

Question 48

The durability an expensive pair of shoes provides has value since ________ are willing to ________ it.

A)suppliers; provide
B)customers; pay for
C)manufacturers; make
D)managers; plan for

Question 49

After World War II, managers in the U.S.firms began to focus on manufacturing rather than finance and marketing.

Question 50

The majority of U.S.companies still produce goods rather than services.

Question 51

On eBay, brand-new red espresso machines routinely sell for $50 more than identical white machines.What can you conclude?

A)The color white has no value.
B)The color red has value.
C)Color has no value since it does not add to the function of the machine.
D)There is something different about the red machines.

Question 52

In its entirety, the value chain includes which of the following participants?

A)internal customers, external customers, and stakeholders
B)design, production, and customers
C)research and development, production, and distribution
D)suppliers, manufacturers, and customers

Question 53

________ focuses on providing an efficient flow of resources to an organization.

A)Supply chain management
B)Value chain management
C)Value
D)Supply

Question 54

The ________ is the series of work actions that add value to a product as it is being transformed from inputs to finished product.

A)supply chain
B)value chain
C)output chain
D)input chain

Question 55

________ is the process of managing the sequence of activities and information along the entire value chain for a product.

A)Supply chain management
B)Value chain management
C)Supply management
D)Customer management

Question 56

In the 1960s and 1970s, companies in Japan and Germany began to catch up with U.S.firms by focusing on quality.

Question 57

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

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

Question 58

Productivity goals, according to Deming, should be strictly numerical to avoid ambiguity.

Question 59

Value chain management is ________ oriented.

A)supplier
B)internally
C)manager
D)externally

Question 60

When the New York Times experimented with charging money for its online news source, its popularity on the Internet plummeted.This shows that online news, at least as it is defined in this market, has ________.

A)enormous value
B)no value
C)no appeal
D)little value

Question 61

When value is created by a participant in a value chain ________ benefits.

A)everyone downstream from that step in the chain
B)only the party that initiated the step
C)everyone in the chain
D)only the customers

Question 62

In a short essay, define value and explain how it is obtained.

Question 63

The requirement for value chain management that involves being flexible and sharing information is ________.

A)employees/human resources
B)technology investment
C)coordination and collaboration
D)organizational processes

Question 64

Since all partners in a value chain benefit when value is added, partners ideally should ________.

A)collaborate closely
B)work independently of one another
C)be dependent only on their narrow local part of the chain
D)collaborate with every other part of the chain

Question 65

Value chain management is externally oriented.

Question 66

In a short essay, explain what a value chain is.

Question 67

The requirement for value chain management that is most closely associated with learning on the job is ________.

A)employees/human resources
B)technology investment
C)coordination and collaboration
D)organizational processes

Question 68

Value chain management is efficiency oriented.

Question 69

Productivity is not important to value chain management.

Question 70

Value in a value chain management system is determined by managers.

Question 71

A new cell phone battery doubles battery life but also increases the cost of the phone.This battery adds ________.

A)no value to the phone since it increases the cost
B)value to the phone only if the cost can be cut
C)value to the phone if more customers buy the phone
D)no value to the phone if more customers buy the phone

Question 72

An especially difficult part of the coordination and collaboration requirement for successful value chain management is identifying things that ________.

A)you value but customers may not value
B)customers value but you may not value
C)both you and customers value
D)you value but do not add value to the value chain

Question 73

The requirement for value chain management that is most closely associated with trust is ________.

A)organizational culture and attitudes
B)technology investment
C)organizational processes
D)employees/human resources

Question 74

The requirement for value chain management that involves better product demand forecasting information is ________.

A)leadership
B)organizational culture and attitudes
C)coordination and collaboration
D)organizational processes

Question 75

The requirement for value chain management that is most closely associated with defining and communicating expectations is ________.

A)coordination and collaboration
B)technology investment
C)organizational culture and attitudes
D)leadership

Question 76

A business model is ________.

A)a competitor that a company seeks to emulate
B)a strategic design for how a company intends to make profit
C)a theoretical ideal that a company seeks to emulate
D)an unrelated organization whose practices a company seeks to emulate

Question 77

The requirement for value chain management that includes an enterprise resource planning (ERP)system to link all of an organization's activities is ________.

A)employees/human resources
B)technology investment
C)coordination and collaboration
D)leadership

Question 78

In a short essay, explain what value chain management is.

Question 79

In value chain management, ultimately the ________ have power to make changes.

A)suppliers
B)customers
C)employees
D)managers

Question 80

The manufacturer is the most powerful part of the value chain because it adds more value than the other parts.