Question 1

In many organizations, the design, planning, and control of the factors that enable the firm to provide high quality products is of critical importance. These factors are collectively referred to as

Accepted Answer

Operations management is the area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in terms of meeting customer requirements.

Question 2

Operations managers must make decisions to ensure that the product or service output of the firm is provided in all of the following ways except

Accepted Answer

Operations managers are primarily concerned with production, quality, quantity, and timely delivery of products or services, and ensuring operations align with organizational goals. Advertising decisions typically fall under marketing, not operations management.

Question 3

A top priority of James Williams, the CEO of Applied Plastics, is to make sure that the product and service output of his firm is provided (1) in the amount demanded, (2) at the appropriate time, (3) with the appropriate quality level, and (4) in a manner that is compatible with the goals of his firm. Mr. Williams' priorities are accomplished through effective

Accepted Answer

James Williams' priorities of ensuring product and service output in the correct amount, time, quality level, and in alignment with firm goals are achieved through operations management. Operations management focuses on efficiently producing goods and services to meet customer demands and organizational objectives.

Question 4

The decisions faced by operations managers can be separated into two broad categories:

Accepted Answer

Design decisions involve determining the overall system and process for producing products or services, while operating and control decisions focus on the day-to-day activities and adjustments needed to produce products or services efficiently and effectively.

Question 5

Before Springs Manufacturing implements a new operating system, two sets of decisions must be made. These sets of decisions pertain to (1) the design of the operating system; and (2) the operating and control decisions necessary to keep the system running in a smooth and efficient manner. At Springs Manufacturing and other firms, these decisions are made by

Accepted Answer

Operations managers are responsible for both the design of the operating system and the ongoing operating and control decisions to ensure the system runs smoothly and efficiently.

Question 6

Which of the following is not a distinctive characteristic of manufacturing organizations?

Accepted Answer

Manufacturing organizations produce physical goods that can be stored as inventory and consumed later, meaning production and consumption are not simultaneous. This characteristic is more typical of service organizations, where production and consumption often occur simultaneously.

Question 7

Which of the following characteristics are a distinctive characteristic of a manufacturing organization?

Accepted Answer

Manufacturing organizations are unique in that they can create and store inventories of finished products, unlike service organizations where the service cannot be stored for future use. This allows for production to meet demand over time.

Question 8

Which of the following is primarily a manufacturing organization?

Accepted Answer

Adidas is primarily a manufacturing organization as it designs and produces sports apparel and footwear.

Question 9

Which of the following is not a distinctive characteristic of a service organization?

Accepted Answer

Service organizations cannot stockpile their outputs as services are intangible and perishable. This means that services cannot be stored for later use or sale, distinguishing them from goods-producing organizations that can maintain inventories of physical products.

Question 10

Which of the following is a distinctive characteristic of a service organization?

Accepted Answer

Production and consumption are simultaneous in service organizations, meaning the service is produced and consumed at the same time, distinguishing it from manufacturing organizations where products can be produced, stored, and then consumed later.

Question 11

Which of the following is primarily a service organization?

Accepted Answer

Time-Warner is primarily a service organization, focusing on media and entertainment services, including cable television, publishing, and film production. The other companies listed are primarily involved in manufacturing and selling physical products.

Question 12

A barber shop is a service organization. Four barbers work from 9:00 a.m. to 5:00 p.m., and they try to stay busy seeing customers the whole day but often must sit and wait between clients. This means that

Accepted Answer

B) Service capacity, unlike physical goods, cannot be stored for future use. If a service, such as a barber's time, is not utilized when available, that opportunity to generate revenue is lost forever.

Question 13

Manufacturing and service organizations are different on all of the following dimensions except one. This exception is the

Accepted Answer

The input-to-output transformation process is a fundamental aspect of both manufacturing and service organizations, involving the conversion of inputs (materials, labor, information) into outputs (goods or services). This process is central to the operations of both types of organizations, making it the exception among the listed dimensions where manufacturing and service organizations do not differ significantly.

Question 14

__________, which measures the relationship between inputs and outputs is __________ to measure in manufacturing situations.

Accepted Answer

Productivity, which measures the relationship between inputs (such as labor, materials, and capital) and outputs (goods and services produced), is generally easier to measure in manufacturing situations because both inputs and outputs are more tangible and quantifiable compared to service environments.

Question 15

LTV, a large steel company, produces long, continuous rolls of sheet steel, utilizing a continuous-flow production system. According to the classification scheme for different operating systems shown in the textbook, LTV has a

Accepted Answer

LTV's continuous-flow production system for creating long, continuous rolls of sheet steel is indicative of a product orientation. This approach focuses on the efficient production of large volumes of a standardized product, which is characteristic of a product-oriented operating system.

Question 16

Bates Manufacturing produces hand held staplers. Bates production system is

Accepted Answer

Bates Manufacturing produces hand-held staplers, which implies a repetitive process where similar items are produced in a sequence. This is characteristic of assembly-line production, where products move from workstation to workstation at a controlled pace, and each workstation is designed for a specific set of tasks. This method is efficient for manufacturing products in large quantities, such as staplers.

Question 17

The Heineken Brewery in Amsterdam produces its beer in a continuous stream 365 days a year. This system is called a/an

Accepted Answer

The Heineken Brewery in Amsterdam producing its beer in a continuous stream 365 days a year is an example of a continuous-flow system, where production is non-stop.

Question 18

Diane Jenning's company produces a product that is made in a continuous stream, not in discrete units. This type of production system is called

Accepted Answer

Continuous-flow production is characterized by the production of goods in a continuous stream, rather than in discrete units, which matches the description of Diane Jenning's company's production method.

Question 19

When the items to be made require small to moderate amounts of resources and time, the system is called a/an

Accepted Answer

A job-shop system is designed for small to moderate quantities of products, often requiring different resources and time, allowing for customization and flexibility in production.

Question 20

Jose Martin is an experienced tool and die maker. In his work, Jose produces small quantities of a wide variety of specialized items. Jose's operation can be described as a/an

Accepted Answer

Jose's work involves producing small quantities of specialized items, which is characteristic of a job-shop production system. This type of system is flexible and capable of handling a wide variety of products, unlike continuous-flow or mass-production systems that focus on high volumes of standardized products.

Quiz 16: Productivity and Quality in Operations