Question 1

Green practices include designing facilities to be more energy efficient; using renewable energy sources such as wind, solar, or geothermal power when possible; making use of recyclable materials; switching to paints that are less harmful to the environment.

Accepted Answer

This statement accurately describes various green practices that can be implemented to promote sustainability and reduce negative environmental impacts.

Question 2

Most manufacturing firms are concerned about the availability of reliable electricity and water supplies when making location decisions. Which of the following do these considerations deal with?
A) availability of human capital
B) adequacy of land enhancements
C) adequacy of utilities
D) quality of life

Accepted Answer

The considerations about the availability of reliable electricity and water supplies deal with the adequacy of utilities. Choices A, B, and D are not related to the availability of utilities.

Question 3

Which of the following is concerned with all of the activities involved in creating goods and services and the distribution of those goods and services to customers?
A) operations management
B) information management
C) marketing
D) management science

Accepted Answer

Operations management is concerned with all of the activities involved in creating goods and services and the distribution of those goods and services to customers. It involves planning, organizing, coordinating, and controlling the resources needed to produce a company's products or services. Information management deals with the processing and storage of information, marketing focuses on promoting and selling products or services, and management science involves the use of quantitative methods to make business decisions.

Question 4

Which of the following are consumed when and where they are produced, and often require the customer to be actively involved in their production?
A) goods
B) processes
C) products
D) services

Accepted Answer

Services are consumed when and where they are produced, and often require the customer to be actively involved in their production. Examples of services include haircuts, dental cleanings, and personal training sessions. Goods, processes, and products can be produced in one location and consumed in another, and may not require customer involvement in production.

Question 5

In operations management, which of the following refers to completing a task or producing a product at the lowest cost?
A) competence
B) processing
C) efficiency
D) effectiveness

Accepted Answer

Efficiency in operations management refers to completing a task or producing a product at the lowest cost. Competence refers to having the necessary skill and ability to perform a task. Processing refers to the steps involved in transforming inputs into outputs. Effectiveness refers to achieving the desired outcome or goal.

Question 6

How is efficiency different from effectiveness?
A) Efficiency means producing a product or service at the lowest cost and effectiveness means to market those products or services so as to increase sales.
B) Efficiency and effectiveness are just two terms for the same basic concept.
C) Efficiency is about low cost production while effectiveness is about finding ways to give customers more for their money
D) Efficiency can be measured and effectiveness cannot.

Accepted Answer

Efficiency focuses on minimizing costs and resources, while effectiveness is about achieving desired outcomes and customer satisfaction.

Question 7

Which of the following is a set of activities or steps that combine inputs to create a good or service?
A) a network
B) a forecast
C) Q process
D) an ERP

Accepted Answer

Q process refers to a set of activities or steps that combine inputs (which could be raw materials, labor, tools, equipment, etc.) to create a good or service. It includes steps such as design, planning, production, quality control, and delivery. A network refers to a system of interconnected entities, while a forecast is an estimation of future trends or events. ERP (Enterprise Resource Planning) is a software system designed to manage and integrate various business processes within an organization.

Question 8

Which of the following are tangible and usually can be shipped and stored?
A) goods
B) products
C) real assets
D) processes

Accepted Answer

Goods refer to physical items that can be touched, seen, and stored. They can be shipped from one location to another and stored in a warehouse or inventory.

Question 9

Micromax sells personal computers that include a two-year warranty as well as free Web-based tech services for the software installed on the computer. Which of the following describes the product offered by Micromax?
A) a pure good
B) a pseudo-good
C) a mix of both goods and services
D) an intangible good

Accepted Answer

Micromax sells personal computers that include both physical goods (the computer hardware) and services (the two-year warranty and free tech services). Therefore, this is a mix of both goods and services.

Question 10

MicroMaster advertises that its computers are backed by 24/7 toll-free technical support. However, in order to meet its goal of keeping costs as low as possible, MicroMaster located its support function in a foreign country and staffed it with a small number of poorly trained employees who had (to Canadian ears) heavy foreign accents. Thus, when customers call the support line, they often must wait on hold. Then they find themselves speaking to someone who often can't answer their questions even if the customer could understand what the tech support person was trying to say in the first place. Which of the following appears to be the case with MicroMaster?
A) It realizes that the quality of technical support does not matter to customers.
B) It is focused on efficiency at the expense of effectiveness.
C) It is utilizing an approach known as lean production, which maintains that it is more important to produce low-cost goods than to spend a lot of money on expensive services.
D) It is concerned primarily with effectiveness and has completely ignored efficiency.

Accepted Answer

MicroMaster appears to be prioritizing efficiency (keeping costs as low as possible) over effectiveness (providing quality technical support). This is evidenced by their decision to locate the support function in a foreign country and staff it with a small number of poorly trained employees. This approach may save costs in the short term, but it may also harm the company's reputation and customer loyalty in the long run.

Question 11

Which facility layout would work best for manufacturing airplanes?
A) cellular layout
B) product layout
C) process layout
D) fixed position layout

Accepted Answer

A fixed position layout would work best for manufacturing airplanes as it allows for large, complex products to be built in one location. The airplane stays in one place while workers and equipment move around it to complete the manufacturing process. This layout is commonly used in shipyards and aircraft factories.

Question 12

Selya and Reece are business partners in a small manufacturing firm that makes customized and ergonomically sound office furniture. Selya feels it is important to work directly with customers to design high-quality desks and chairs that precisely meet their needs. Reece is more concerned with finding ways to keep the company's costs as low as possible. In this partnership what is Selya most concerned with?
A) operations management
B) separability
C) effectiveness
D) economics

Accepted Answer

Selya's focus on working directly with customers to design high-quality customized furniture that meets their needs suggests that her primary concern is effectiveness, or the ability of the company to achieve its goals and satisfy customers' demands. This differs from operations management, which focuses on overseeing production processes, and economics, which involves understanding the financial aspects of the business. While minimizing costs is important for any business, it is not the main priority for Selya in this case. Separability, which refers to the degree to which a firm's services or products can be differentiated from those of its competitors, is not directly relevant to Selya's concerns.

Question 13

How does a company decide where to locate a business facility?
A) The decision is almost always based on the availability of skilled labour.
B) The decision usually requires the analysis of several different factors, but the importance of each factor tends to vary according to the specific type of industry.
C) The decision is made based on the expense of purchasing the land.
D) The decision usually boils down to where the top manager wants to live.

Accepted Answer

Choosing a location for a business facility involves analyzing several factors such as availability of skilled labor, transportation, infrastructure, local regulations, taxes, and cost of living. The relative importance of each factor varies according to the specific industry and the company's priorities. Therefore, it is likely that a company considers a combination of factors and performs a detailed analysis before deciding on a location. The other choices (A, C, D) are not accurate as they oversimplify the process or ignore some critical factors.

Question 14

Lean&Green Manufacturing has adopted a lean production strategy. Lean&Green is likely to hold large inventories of parts, materials, and finished goods in order to prevent shortages and smooth out the production process.

Accepted Answer

Lean production strategy aims to minimize waste and avoid holding excessive inventory. Instead, it focuses on producing only what is needed, when it is needed, and in the amount that is needed. Therefore, Lean&Green Manufacturing is unlikely to hold large inventories of parts, materials, and finished goods.

Question 15

Which of the following can be produced independently of the consumer and then stored and shipped?
A) processes
B) goods
C) any type of product
D) services

Accepted Answer

Goods can be produced in bulk and stored, whereas services cannot be stored and are produced at the time of consumption. Processes can also be produced independently, but they are not a final product that can be shipped to the consumer. Finally, not all types of products can be easily stored and shipped, such as perishable goods.

Question 16

An example of lean production systems is WestJet's self-serve kiosks and paperless boarding passes that keep customers moving through the airport.

Accepted Answer

WestJet's self-serve kiosks and paperless boarding passes are a classic example of lean production systems as they improve efficiency and reduce waste by allowing customers to complete the check-in process without the need for a human agent. This results in faster processing times and reduced costs for the airline.

Question 17

In operations management, which of the following means completing tasks or producing products that create the greatest value?
A) efficiency
B) excellence
C) expertise
D) effectiveness

Accepted Answer

Effectiveness means completing tasks or producing products that create the greatest value, whereas efficiency refers to completing tasks with the least amount of resources. Excellence and expertise may contribute to effectiveness, but they are not the same as effectiveness itself.

Question 18

An example of lean production is WestJet's decision to use many types of aircrafts but fly them each only once per week.

Accepted Answer

Lean production aims to reduce waste and increase efficiency, typically involving using fewer resources and simplifying operations. WestJet's decision to use many types of aircraft but fly them each only once per week would likely increase complexity and costs, contrary to lean principles.

Question 19

Jaclyn, the local toy store manager, has over-ordered skateboards for the holiday season. What is most likely her reasoning for this tactic?
A) She wants to create jobs for skateboard manufacturers.
B) She wants to build more storage space.
C) She wants to tie up money in inventory.
D) She is preparing for a large sale and does not want to run out.

Accepted Answer

Jaclyn is most likely preparing for a large sale and does not want to run out of stock. Over-ordering ensures that there will be enough inventory to meet the demand and increase sales during the holiday season.

Question 20

In order to receive ISO 14001 certification, a firm must do many things, one of which is to demonstrate the ability to identify and control the environmental impact of their activities.

Accepted Answer

This is correct as one of the requirements for ISO 14001 certification is the ability to identify and control the environmental impact of the firm's activities.

Quiz 16: Operations Management: Putting It All Together

Green practices include designing facilities to be more energy efficient; using renewable energy sources such as wind, solar, or geothermal power when possible; making use of recyclable materials; switching to paints that are less harmful to the environment.

Most manufacturing firms are concerned about the availability of reliable electricity and water supplies when making location decisions. Which of the following do these considerations deal with?

Which of the following is concerned with all of the activities involved in creating goods and services and the distribution of those goods and services to customers?

Which of the following are consumed when and where they are produced, and often require the customer to be actively involved in their production?

In operations management, which of the following refers to completing a task or producing a product at the lowest cost?

How is efficiency different from effectiveness?

Which of the following is a set of activities or steps that combine inputs to create a good or service?

Which of the following are tangible and usually can be shipped and stored?

Micromax sells personal computers that include a two-year warranty as well as free Web-based tech services for the software installed on the computer. Which of the following describes the product offered by Micromax?

Which facility layout would work best for manufacturing airplanes?

How does a company decide where to locate a business facility?

Lean&Green Manufacturing has adopted a lean production strategy. Lean&Green is likely to hold large inventories of parts, materials, and finished goods in order to prevent shortages and smooth out the production process.

Which of the following can be produced independently of the consumer and then stored and shipped?

An example of lean production systems is WestJet's self-serve kiosks and paperless boarding passes that keep customers moving through the airport.

In operations management, which of the following means completing tasks or producing products that create the greatest value?

An example of lean production is WestJet's decision to use many types of aircrafts but fly them each only once per week.

Jaclyn, the local toy store manager, has over-ordered skateboards for the holiday season. What is most likely her reasoning for this tactic?

In order to receive ISO 14001 certification, a firm must do many things, one of which is to demonstrate the ability to identify and control the environmental impact of their activities.