Question 1

As you're loading your groceries on the conveyor belt, the clerk asks you if you found everything you needed. As she continues to scan your purchases, coupons for future purchases print near the cashier's terminal. In reviewing the key concepts from this chapter, you would consider this action to be the store's management of its labor.

Accepted Answer

This is part of the management of the operation-the operation of serving you. The store is rewarding (delighting) you with a coupon that has value on your next purchase. The grocer is anticipating that if you purchased it once, you may purchase it again, particularly if it is a name brand.

Question 2

A continuous production process involves physically or chemically manipulating raw materials to create a product.

Accepted Answer

The answer of A continuous production process involves physically or chemically...

Question 3

Education and training are less important to workers in the service sector than to workers who have jobs in the manufacturing sector.

Accepted Answer

This statement is false. Education and training are important to workers in all sectors, including the service sector. As the types of jobs in the service sector continue to evolve and require more technical skills, education and training are becoming increasingly important for workers in this sector as well.

Question 4

Kimber Cross is majoring in operations management at a local university. Unfortunately, the evolution of the U.S. from a manufacturing-oriented to a service-oriented economy means that Kimber will not likely find job openings in her field of study.

Accepted Answer

The U.S. economy is becoming more service oriented. However, this is not bad news for students who major in operations management, because the tasks involved in operations management are just as relevant to the production of services as they are to the production of goods.

Question 5

Process manufacturing physically or chemically alters materials to create finished goods.

Accepted Answer

Process manufacturing involves transforming raw materials or ingredients through physical or chemical processes to create finished products. This can include processes such as mixing, heating, cooling, and chemical reactions. Examples of process manufacturing industries include food and beverage, pharmaceuticals, and chemicals.

Question 6

Only firms in the manufacturing sector can create true form utility.

Accepted Answer

Form utility can be created in any sector, not just manufacturing. Form utility is the added value that a firm creates by transforming raw materials into finished goods or incorporating different components to create a final product. Service industries also create form utility, for example, a hair salon creating a new hairstyle for a customer.

Question 7

Trey is a manager at Plastics Plus, a manufacturing firm in Arkansas. His responsibilities include production scheduling as well as keeping tabs on the company's inventory. These duties suggest that Trey is involved in promotions management.

Accepted Answer

Trey's responsibilities suggest he is involved in operations management. Operations management is a specialized area of management that converts resources into goods and services. It includes inventory management and production scheduling, as well as several other functions.

Question 8

One important issue with respect to managing the operation of a business is to make certain that customers leave feeling as though they had a good experience with your service and with your company in general.

Accepted Answer

Operations management transforms resources of all kinds into finished products and services. Due to the fact that services dominate the U.S. landscape, it is vital to a firm's survival that customers perceive that they had a good experience. The quality at every step of the service must be measured and evaluated.

Question 9

Process manufacturing refers to combining components and raw materials to make a product.

Accepted Answer

The answer of Process manufacturing refers to combining components and...

Question 10

Firms that specialize in accounting, finance, and management consulting are all part of the service sector.

Accepted Answer

Organizations like, hospitals, schools, universities, and government agencies produce services; while some, such as factories and farms, produce goods. Financial consulting would be a service organization.

Question 11

Operations management moves from knowing the needs of consumers to actually satisfying those needs.

Accepted Answer

This statement is true. Operations management involves the planning, organizing, and controlling of resources to meet the needs of customers efficiently and effectively. Its ultimate goal is to satisfy customer demands and create value for the organization.

Question 12

The value added by the creation of finished goods and services from inputs is called ownership utility.

Accepted Answer

The value added by the creation of finished goods and services from inputs is called economic value added or simply value added, not ownership utility. Ownership utility refers to the value added by transferring the product's ownership from one party to another, enhancing its worth by making it readily available to be owned.

Question 13

An important strategy in operations management is using technology to anticipate customer needs.

Accepted Answer

Hilton, for example, is using IBM's Watson technology to power a robot named Connie. Hilton's hope for the future is for Connie to learn new information and tasks to ultimately become the center of operations at every Hilton hotel.

Question 14

Manufacturing companies are concerned with production management, while service companies are concerned with operations management.

Accepted Answer

Manufacturing companies are as concerned with operations management as are service-based companies. In reality, most companies today blend a component of product and service.

Question 15

When firms successfully produce products, they create form utility.

Accepted Answer

Form utility is the value that is added to goods and services by processing, assembling, or refining them during the production process. Therefore, when firms successfully produce products, they do create form utility.

Question 16

The quality standard for service industries such as luxury hotels is meeting the customers' requests.

Accepted Answer

The answer of The quality standard for service industries such...

Question 17

Operations management transforms resources into goods and services. Green Grass Landscaping utilizes equipment, labor, and materials to develop a top notch landscape for its customers. Managing this operation may also involve maintenance services.

Accepted Answer

Operations management transforms resources of all kinds into finished products and services. They utilize raw materials, equipment, and labor, but they are also concerned with anticipating customer needs and managing the entire operation including the customer's needs beyond the point of sale.

Question 18

The three basic requirements of production are: (1) creating a finished good, (2) making sure you created it at the lowest cost possible, and (3) selling it.

Accepted Answer

The three basic requirements of production are land, labor, and capital, not the process steps mentioned.

Question 19

Service businesses know that in order to delight customers they must be able to anticipate their needs.

Accepted Answer

Anticipating customer needs is crucial for service businesses to provide exceptional customer service and satisfaction.

Question 20

Apollo just graduated with a degree in operations management. While earning his degree, the knowledge he gained and skills he developed could make him an attractive employee for both a manufacturing firm and a service firm.

Accepted Answer

Operations management is a broad term that encompasses the tasks involved in creating both intangible products (services) and tangible goods. Thus, firms in both the service sector and the manufacturing sector may be interested in hiring Apollo.

Quiz 9: Production and Operations Management

A continuous production process involves physically or chemically manipulating raw materials to create a product.