Deck 1: Operations and Productivity

Question 1

Competition in the 21st century is no longer between companies;it is between supply chains.

Answer 1

True

Question 2

The finance function is concerned with:

A)producing goods or providing services.
B)procuring materials,supplies,and equipment.
C)building and maintaining a positive image.
D)generating the demand for the organization's products or services.
E)securing monetary resources.

Answer 2

E

Question 3

Identify three or more operations-related tasks carried out by Hard Rock Café.

Answer 3

Providing custom meals;designing,testing,and costing meals;acquiring,receiving,and storing supplies;recruiting and training employees;preparing employee schedules;designing efficient restaurant layouts.

Question 4

At Hard Rock Café,tasks that reflect operations or operations management include:

A)designing efficient layouts.
B)providing meals.
C)receiving ingredients.
D)preparing effective employee schedules.
E)all of the above.

Question 5

Which of the following tasks within an airline company are related to operations?

A)crew scheduling
B)international monetary exchange
C)sales
D)advertising
E)accounts payable

Question 6

Which of the following pioneers was NOT making a professional impact during the Scientific Management Era?

A)Frank Gilbreth
B)W.Edwards Deming
C)Henry L.Gantt
D)Lillian Gilbreth
E)Frederick W.Taylor

Question 7

Which of the following would NOT be an operations function in a commercial bank?

A)auditing
B)teller scheduling
C)maintenance
D)collection
E)check clearing

Question 8

Marketing,production/operations,and ________ are the three functions that all organizations must perform to create goods and services.

Question 9

Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.

Question 10

________ is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.

Question 11

The purchasing function is concerned with:

A)producing goods or providing services.
B)procuring materials,supplies,and equipment.
C)building and maintaining a positive image.
D)generating the demand for the organization's products or services.
E)securing monetary resources.

Question 12

Define operations management.Will your definition accommodate both manufacturing and service operations?

Question 13

Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements.

Question 14

Which of the following are the primary functions of all organizations?

A)production/operations,marketing,and human resources
B)marketing,human resources,and finance/accounting
C)sales,quality control,and production/operations
D)marketing,production/operations,and finance/accounting
E)research and development,finance/accounting,and purchasing

Question 15

All organizations,including service firms such as banks and hospitals,have a production function.

Question 16

An example of a "hidden" production function is the transfer of funds between accounts at a bank.

Question 17

An operations task performed at Hard Rock Café is:

A)borrowing funds to build a new restaurant.
B)advertising changes in the restaurant menu.
C)calculating restaurant profit and loss.
D)preparing employee schedules.
E)all of the above.

Question 18

Because Hard Rock Cafés are themed restaurants,operations managers focus their layout design efforts on attractiveness while paying little attention to efficiency.

Question 19

The marketing function is concerned with:

A)producing goods or providing services.
B)procuring materials,supplies,and equipment.
C)building and maintaining a positive image.
D)generating the demand for the organization's products or services.
E)securing monetary resources.

Question 20

Operations management is applicable:

A)mostly to the service sector.
B)to services exclusively.
C)mostly to the manufacturing sector.
D)to all firms,whether manufacturing or service.
E)to the manufacturing sector exclusively.

Question 21

An accounting firm that provides tax services for a company would be considered to be part of that company's supply chain.

Question 22

Reasons to study operations management include learning about:

A)how people organize themselves for productive enterprise.
B)how goods and services are produced.
C)what operations managers do.
D)a costly part of the enterprise.
E)all of the above.

Question 23

A(n)________ is a global network of organizations and activities that supply a firm with goods and services.

Question 24

Which of the following fosters specialization and worldwide supply chains?

A)more expensive transportation
B)instant communication
C)economies of scope
D)managers with a broad knowledge of many things
E)high trade tariffs

Question 25

Identify up to four phenomena that foster specialization and worldwide supply chains.

Question 26

Competition in the 21st century is no longer between companies;it is between ________.

Question 27

The operations manager performs the management activities of planning,organizing,staffing,leading,and controlling of the OM function.

Question 28

Which of the following is one of the 10 strategic operations management decisions?

A)depreciation policy for tax returns
B)advertising
C)process and capacity design
D)pricing
E)debt/equity ratio

Question 29

An operations manager is NOT likely to be involved in:

A)the design of goods and services to satisfy customers' wants and needs.
B)the quality of goods and services to satisfy customers' wants and needs.
C)the identification of customers' wants and needs.
D)work scheduling to meet the due dates promised to customers.
E)maintenance schedules.

Question 30

In order to have a career in operations management,one must have a degree in statistics or quantitative methods.

Question 31

Which of the following is NOT an element of the management process?

A)controlling
B)leading
C)planning
D)pricing
E)staffing

Question 32

One reason to study operations management is to learn how people organize themselves for productive enterprise.

Question 33

The 10 strategic operations management decisions include:

A)layout strategy.
B)maintenance.
C)process and capacity design.
D)managing quality.
E)all of the above.

Question 34

What are the five elements in the management process?

A)plan,direct,update,lead,and supervise
B)accounting,finance,marketing,operations,and management
C)organize,plan,control,staff,and manage
D)plan,organize,staff,lead,and control
E)plan,lead,organize,manage,and control

Question 35

All of the following decisions fall within the scope of operations management EXCEPT for:

A)creating the company income statement.
B)design of goods and services.
C)location strategy.
D)managing quality.
E)human resources and job design.

Question 36

Which of the following is NOT one of the 10 strategic operations management decisions?

A)layout strategy
B)maintenance
C)process and capacity design
D)mass customization
E)supply chain management

Question 37

Reasons to study operations management include:

A)studying how people organize themselves for productive enterprise.
B)knowing how goods and services are consumed.
C)understanding what human resource managers do.
D)learning about a costly part of the enterprise.
E)A and D

Question 38

What is a global network of organizations and activities that supply a firm with goods and services?

A)supply tree
B)provider network
C)supply chain
D)vendor network
E)vendor tree

Question 39

"Considers inventory ordering and holding decisions" is within the strategic operations management decision area of managing quality.

Question 40

Brandon Production is a small firm focused on the assembly and sale of custom computers.The firm is facing stiff competition from low-priced alternatives,and is looking at various solutions to remain competitive and profitable.Current financials for the firm are shown in the table below.In the first option,marketing will increase sales by 50%.The next option is Vendor (Supplier)changes,which would result in a decrease of 10% in the cost of inputs.Finally,there is an OM option,which would reduce production costs by 25%.Which of the options would you recommend to the firm if it can only pursue one option? In addition,comment on the feasibility of each option.
Business Function Current Value
Cost of Inputs $50,000
Production Costs $25,000
Revenue $80,000

Question 41

The "Father of Scientific Management" is:

A)Henry Ford.
B)Frederick W.Taylor.
C)W.Edwards Deming.
D)Frank Gilbreth.
E)just a figure of speech,not a reference to a person.

Question 42

Walter Shewhart is listed among the important people of operations management because of his contributions to:

A)assembly line production.
B)measuring productivity in the service sector.
C)just-in-time inventory methods.
D)statistical quality control.
E)information technology.

Question 43

Identify two operations-related tasks carried out by Hard Rock Café.Match each to its related area of the 10 strategic operations management decisions.

Question 44

Identify the 10 strategic OM decisions.

Question 45

Identify the items that Fredrick W.Taylor believed management should be more responsible for.

Question 46

Who was the person most responsible for popularizing interchangeable parts in manufacturing?

A)Frederick Winslow Taylor
B)Henry Ford
C)Eli Whitney
D)Whitney Houston
E)Lillian Gilbreth

Question 47

Eli Whitney,in the ________,provided the foundations for ________ in operations management.

A)1920s;statistical sampling
B)United Kingdom;mass production
C)U.S.Army;logistics
D)nineteenth century;interchangeable parts
E)1890s;queuing theory

Question 48

Which of the following are among the 10 strategic operations management decisions? I.design of goods and services
II.managing quality
III.layout strategy
IV.marketing
V.pricing of goods and services

A)I,II,V
B)I,II,IV
C)II,III,V
D)I,II,III
E)I,II,III,IV,V

Question 49

Which of the following statements is TRUE?

A)The person most responsible for initiating the use of interchangeable parts in manufacturing was Eli Whitney.
B)The origins of management by exception are generally credited to Frederick W.Taylor.
C)The person most responsible for initiating the use of interchangeable parts in manufacturing was Walter Shewhart.
D)The origins of the scientific management movement are generally credited to Henry Ford.
E)The person most responsible for initiating the use of interchangeable parts in manufacturing was Henry Ford.

Question 50

Who among the following is associated with contributions to quality control in operations management?

A)Charles Babbage
B)Henry Ford
C)Frank Gilbreth
D)W.Edwards Deming
E)Henri Fayol

Question 51

Henry Ford and ________ are credited with the development of the moving assembly line.

Question 52

Henry Ford is noted for his contributions to:

A)material requirements planning.
B)statistical quality control.
C)assembly line operations.
D)scientific management.
E)time and motion studies.

Question 53

Which of the following is NOT a strategic operations management decision?

A)maintenance
B)price
C)layout design
D)quality
E)inventory

Question 54

Walter Shewhart,in the ________,provided the foundations for ________ in operations management.

A)1920s;statistical sampling
B)United Kingdom;mass production
C)U.S.Army;logistics
D)nineteenth century;interchangeable parts
E)1900s;queuing theory

Question 55

The field of operations management is shaped by advances in which of the following fields?

A)chemistry and physics
B)industrial engineering and management science
C)biology and anatomy
D)information technology
E)all of the above

Question 56

Shewhart's contributions to operations management came during the Scientific Management Era.

Question 57

Customer interaction is often high for manufacturing processes,but low for services.

Question 58

Operations managers should be well versed in what disciplines in order to make good decisions?

Question 59

Henry Ford is known as the Father of Scientific Management.

Question 60

Which of the following influences layout design?

A)inventory requirements
B)capacity needs
C)personnel levels
D)technology
E)All of the above influence layout decisions.

Question 61

The service sector makes up approximately what percentage of all jobs in the United States?

A)12%
B)40%
C)66%
D)85%
E)94%

Question 62

Which of the following attributes is most typical of a service?

A)production and consumption occur simultaneously
B)tangible
C)mass production
D)consistency
E)easy to automate

Question 63

Which of the following is a similarity between goods and services?

A)mass production
B)consistency
C)automation
D)Both have quality standards.
E)Both can usually be kept in inventory.

Question 64

How do services differ from goods? Identify five ways.

Question 65

A foundry produces circular utility access hatches (manhole covers).If 120 covers are produced in a 10-hour shift,the productivity of the line is:

A)1.2 covers/hr.
B)2 covers/hr.
C)12 covers/hr.
D)1200 covers/hr.
E)120 covers/hr.

Question 66

Illiteracy and poor diets have been known to cost countries up to what percent of their productivity?

A)2%
B)5%
C)10%
D)20%
E)50%

Question 67

Manufacturing now constitutes the largest economic sector in postindustrial societies.

Question 68

Gibson Valves produces cast bronze valves on an assembly line.If 1600 valves are produced in an 8-hour shift,the productivity of the line is:

A)2 valves/hr.
B)40 valves/hr.
C)80 valves/hr.
D)200 valves/hr.
E)1600 valves/hr.

Question 69

Gibson Valves produces cast bronze valves on an assembly line,currently producing 1600 valves each 8-hour shift.If the productivity is increased by 10%,it would then be:

A)180 valves/hr.
B)200 valves/hr.
C)220 valves/hr.
D)880 valves/hr.
E)1760 valves/hr.

Question 70

A foundry produces circular utility access hatches (manhole covers).Currently,120 covers are produced in a 10-hour shift.If labor productivity can be increased by 20%,it would then be:

A)14.4 covers/hr.
B)24 covers/hr.
C)240 covers/hr.
D)1200 covers/hr.
E)10 covers/hr.

Question 71

Although the number of people employed in manufacturing in the United States has decreased since 1950,each person is now producing almost 20 times more than in 1950.

Question 72

When a tangible component is not included in a service,such as with counseling,it is called a(n)________.

Question 73

Which of the following is the best example of a pure service?

A)counseling
B)oil change
C)heart transplant
D)electric Co-Op
E)restaurant

Question 74

Which is NOT true regarding differences between goods and services?

A)Tangible goods are generally produced and consumed simultaneously;services are not.
B)Most goods are common to many customers;services are often unique to the final customer.
C)Services tend to have a more inconsistent product definition than goods.
D)Services tend to have higher customer interaction than goods.
E)None,i.e. ,all of the above are true.

Question 75

A knowledge society is one that has migrated from work based on knowledge to one based on manual work.

Question 76

Which of the following services is LEAST likely to be unique,i.e. ,customized to a particular individual's needs?

A)dental care
B)hairdressing
C)legal services
D)elementary education
E)computer consulting

Question 77

Which of the following is NOT a typical service attribute?

A)intangible product
B)easy to store
C)customer interaction is high
D)simultaneous production and consumption
E)difficult to resell

Question 78

Which is NOT true regarding differences between goods and services?

A)Services are generally produced and consumed simultaneously;tangible goods are not.
B)Services tend to be more knowledge-based than goods.
C)Services tend to have a more inconsistent product definition than goods.
D)Goods tend to have higher customer interaction than services.
E)Reselling is unusual in services;goods often have some residual value.

Question 79

Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced.

Question 80

Productivity is generally more difficult to improve in the service sector than in the manufacturing sector.