Deck 8: Managing Service and Manufacturing Operations

Question 1

Outputs include labor,materials,energy,and money.

Answer 1

False
Explanation: Outputs refer to the goods,services,and ideas that result from the conversion of inputs.

Question 2

To ensure quality and efficiency,operations managers take ________ at various points in the transformation process and compare them to established standards.

A) breaks
B) adjustments
C) calculations
D) marketing research
E) feedback

Answer 2

E
Explanation: Operations managers control the transformation process by taking measurements (feedback)at various points in and comparing them to previously established standards.

Question 3

For most organizations,the ultimate goal of the transformation process is to produce outputs that are worth more than the combined costs of inputs.

Answer 3

True
Explanation: For most organizations,the ultimate goal of the transformation process is to produce outputs that are worth more than the combined costs of inputs.

Question 4

The transformation process is at the heart of operations management.

Question 5

Viewed from the perspective of operations,the money used to purchase a carpenter's tools and the electricity used to run his power saw are

A) processes.
B) outputs.
C) inventory.
D) inputs.
E) maintenance costs.

Question 6

Operations management has the primary responsibility for

A) determining customer wants and needs.
B) conducting research on goods/service feasibility.
C) creating products that satisfy customers.
D) developing an appropriate distribution system.
E) deciding what promotional activities will be best.

Question 7

The transformation process is

A) the development and administration of activities that transform resources into goods,services,and ideas.
B) the conversion of human,financial,and physical resources into goods,services,and ideas.
C) labor,materials,energy,and money.
D) goods and services.
E) the development,promotion,pricing,and distribution of products.

Question 8

If an employee is involved with transforming resources into goods and services,then he is in

A) marketing.
B) financing.
C) human resources.
D) operations management.
E) budgeting.

Question 9

The transformation process occurs in

A) service companies.
B) all organizations,regardless of product.
C) manufacturing companies.
D) idea consultants.
E) government agencies.

Question 10

Different kinds of transformation processes take place in organizations that provide services.

Question 11

What is operations management?

Question 12

Describe the transformation process,from inputs to outputs,for a good or service of your choosing.

Question 13

Operations management includes responsibility for

A) customer service.
B) inputs and outputs.
C) product development.
D) pricing.
E) promotion.

Question 14

From an operations perspective,food sold at a restaurant and services provided by a plumbing company are

A) processes.
B) inputs.
C) outputs.
D) inventory.
E) costs.

Question 15

The number of steps in the transformation process is always the same,no matter what the good or service.

Question 16

The transformation process occurs only in companies that manufacture tangible goods.

Question 17

Transformation processes occur

A) only in manufacturing organizations.
B) only in marketing departments.
C) in all organizations.
D) only in service providers.
E) only in industrial plants.

Question 18

Operations management refers to those processes used in making both tangible and intangible products.

Question 19

Production refers to all the activities involved in producing products,while operations refers to the physical process of transforming resources into goods and services.

Question 20

If an employee is associated with producing goods,services,and ideas that satisfy the needs of customers,then she works most closely with

A) financing.
B) budgeting.
C) production.
D) human resources.
E) operations.

Question 21

Variations in demand,service requirements,and the intangibility of the product make measuring productivity more difficult for manufacturers.

Question 22

Why do the products of service providers tend to be more customized than those of manufacturers?

A) Differing customers have differing needs
B) Because all customers are the same
C) Technological innovations have reduced variability
D) There is more capital required in service provision
E) It is easy to measure productivity

Question 23

Actual performance of the service provider's product typically occurs

A) several days after purchase.
B) outside the service provider's facility.
C) at the point of consumption.
D) in the buyer's home.
E) before the point of consumption.

Question 24

Which of the following is not a point of difference between service providers and manufacturers?

A) Services are more labor-intensive
B) Manufacturing has more uniform outputs
C) Services do not undergo a transformation process
D) It is straightforward to measure manufacturing productivity
E) Services have less control over the variability of their inputs

Question 25

How do operations for manufacturers and service providers differ?

Question 26

The nature of the service provider's product requires

A) less employee input.
B) a higher degree of customer contact.
C) a lesser degree of customer contact.
D) more expensive inputs.
E) more standardization.

Question 27

Manufacturers and service providers differ in the nature and consumption of their output.

Question 28

The fact that a hairdresser gives each customer a different haircut relates to which of the following points of difference between service providers and manufacturers?

A) Nature and consumption of output.
B) Uniformity of inputs.
C) Labor required.
D) Measurement of productivity.
E) Uniformity of output.

Question 29

Money,employees,time,and equipment represent an airline's ________ to the transformation process.

A) outputs
B) inputs
C) products
D) services
E) intangibles

Question 30

A company that uses a fixed-position layout is often called a project organization because it is involved in large,complex projects.

Question 31

Why do services tend to be more labor-intensive than manufacturing?

Question 32

Service providers are generally less labor-intensive because of the high degree of customization.

Question 33

Consumer needs and wants often dictate a production process.

Question 34

Modular design allows products to be repaired quickly,but the components are often expensive.

Question 35

To receive a haircut,you generally have to go to a barbershop or salon.To which of the following characteristics does this pertain?

A) Uniformity of inputs
B) Uniformity of outputs
C) Labor required
D) Measurement of productivity
E) Nature and consumption of output

Question 36

For most organizations,the ultimate objective is for produced outputs to be

A) easy to develop.
B) tangible,hard goods.
C) inexpensive.
D) worth more than the costs of input.
E) equal to the costs of input.

Question 37

Compared to service providers,manufacturers generally

A) are more labor intensive.
B) are more capital intensive.
C) customize their outputs.
D) have difficulty measuring productivity.
E) produce intangible outputs.

Question 38

Manufacturers' products are typically

A) more labor intensive than service providers'.
B) less uniform than service providers'.
C) more difficult to inventory than service providers'.
D) more standardized than service providers'.
E) cheaper than service providers'.

Question 39

In a nonprofit organization like Habitat for Humanity,inputs such as money,materials,information,and volunteer time and labor are used to transform raw materials into homes for needy families.

Question 40

It is not necessary for a product to satisfy a need or a want.

Question 41

If ABC Computer Company is determining demand for its future products and how much consumers are willing to pay,the company will likely rely on

A) the economy.
B) marketing research.
C) the competition.
D) the past.
E) intuition.

Question 42

How have computers and robots influenced the operations of business?

Question 43

A company performing large,complex tasks such as construction or exploration is called a(n)

A) continuous manufacturing organization.
B) intermittent organization.
C) project organization.
D) construction company.
E) oil company.

Question 44

An organization that creates many products with similar characteristics,such as automobiles,television sets,or vacuum cleaners,would most likely be which of the following types of organizations?

A) Continuous manufacturing
B) Intermittent manufacturing
C) Project manufacturing
D) Assembly line
E) Fixed-position

Question 45

Building a computer so that components can be installed in different configurations to meet customers' needs is a result of

A) flexible manufacturing.
B) modular design.
C) customization.
D) specialization.
E) varied engineering.

Question 46

Managing finished products and packaging them are activities most closely associated with marketing.

Question 47

Operations managers have little concern for supply-chain management activities.

Question 48

A hospital having an x-ray,obstetrics,emergency room,and other units probably would best be classified as a(n)

A) intermittent organization.
B) project organization.
C) continuous manufacturing organization.
D) fixed organization.
E) HMO.

Question 49

The term standardization means

A) ensuring that every product has the same quality.
B) that similar products,manufactured by different companies,all operate in the same manner.
C) making identical,interchangeable components or products.
D) making the exact product a particular customer needs or wants.
E) making an item in self-contained units that can be interchanged to create different products.

Question 50

A planning system that schedules the precise quantity of materials needed for production is called a just-in-time system.

Question 51

Intermittent organizations typically use the fixed-position layout.

Question 52

Purchasing is the buying of all materials needed by the organization.

Question 53

Facility location decisions are complex because

A) all customers want plants nearby.
B) transportation costs are prohibitively high.
C) delivery speed is not very important.
D) proximity to market is not very important.
E) they involve the evaluation of a number of important factors and the costs are high.

Question 54

What is sustainability and how does it pertain to manufacturing?

Question 55

Taxes are an important consideration when deciding where to locate a production facility.

Question 56

A company that manufactures large products,such as houses or bridges,may require that all resources be brought to a central location during production.This type of facility layout is called

A) fixed-position.
B) product.
C) line.
D) central control.
E) assembly line.

Question 57

A metal fabrication plant with a cutting department,a drilling department,and a polishing department would likely use which of the following layouts?

A) Fixed position
B) Horizontal position
C) Process
D) Geographical
E) Customer based

Question 58

A primary reason for using standardization is to

A) reduce production costs.
B) increase consumer options.
C) reduce product quality.
D) increase variations.
E) foster creativity.

Question 59

The majority of companies purchase all materials needed to make their finished products.

Question 60

A just-in-time inventory management system saves money and requires less storage space by using smaller amounts of materials that arrive just when they are needed.

Question 61

What considerations must managers make after materials have been procured and their use has been determined?

Question 62

The degree to which a good or service meets the demands and requirements of customers is called customer satisfaction.

Question 63

Determining quality can be difficult.

Question 64

Materials that have been purchased to be used in making other products are included in

A) finished inventory.
B) partial inventory.
C) raw materials inventory.
D) supplier inventory.
E) components parts inventory.

Question 65

Within organizations,purchasing is also referred to as

A) consumption.
B) disposition.
C) acquisitions.
D) procurement.
E) budgeting.

Question 66

It is especially difficult to measure quality characteristics when

A) a firm uses ISO 9000.
B) a firm has a total quality management program.
C) the product is a good.
D) the product is a service.
E) a firm uses statistical process control.

Question 67

All activities involved in obtaining and managing raw materials and component parts,managing finished products,packaging them,and getting them to customers are part of

A) resource management.
B) supply chain management.
C) engineering.
D) finance.
E) strategic planning.

Question 68

The ISO 9000 is a series of international quality management standards for organizations.

Question 69

The buying of all materials needed by the organization is called

A) consumer behavior.
B) capital expenditures.
C) purchasing.
D) buyer behavior.
E) acquisitions.

Question 70

A model that identifies the optimum number of items to minimize the costs of managing them is called

A) just-in-time management.
B) flexible scheduling.
C) material requirements planning.
D) the economic order quantity model.
E) logistics.

Question 71

Which of the following activities is not included in supply chain management?

A) Getting products to customers
B) Obtaining and managing raw materials
C) Managing finished products
D) Packaging finished products
E) Researching and developing products

Question 72

The term used to refer to the raw materials,components,completed or partially completed products,and pieces of equipment a firm uses is

A) inventory.
B) order quantities.
C) production.
D) tangibles.
E) intangibles.

Question 73

A planning system that schedules the precise quantity of materials needed for production is called

A) just-in-time management.
B) material-requirements planning.
C) economic order quantities.
D) flexible scheduling.
E) cycle time management.

Question 74

Quality is a critical element of operations management.

Question 75

Inspection reveals whether a product meets quality standards.

Question 76

When managing quality in manufacturing,when is sampling likely to be used?

A) When inspection tests are destructive
B) When every product absolutely must be tested because of human life and safety
C) To assess the quality of services
D) To assess the quality of work-in-process goods
E) Sampling is generally used in conjunction with inspection tests

Question 77

Minimizing inventory by providing an almost continuous flow of items from suppliers to the production facility is referred to as

A) just-in-time management.
B) economic ordering.
C) material requirements planning.
D) logistics.
E) operations management.

Question 78

The process of determining how many supplies and goods are needed,keeping track of quantities on hand,each item's location,and who is responsible for it is called

A) the economic order quantity model.
B) just-in-time inventory management.
C) material-requirements planning.
D) inventory control.
E) procurement.

Question 79

What is the economic order quantity model?

Question 80

Service businesses cannot incorporate quality standards.