Question 1

In the just-in-time approach,almost no inventories are maintained.

Accepted Answer

In the just-in-time approach, inventory levels are minimized and in some cases reduced to zero, therefore almost no inventories are maintained.

Question 2

Value creation means that the effort and resources invested to accomplish a task or activity or work process is worth more than its end result.

Accepted Answer

Value creation means that the end result or output of a task or activity is worth more than the effort and resources invested in it.

Question 3

Remanufacturing takes used items apart and rebuilds them as products to be used again.

Accepted Answer

Remanufacturing is a process of dismantling used products, cleaning, repairing or replacing worn-out parts, and reassembling them into products that are as good as new, or even better. This process helps to save resources, reduce waste, and provide affordable products to consumers.

Question 4

To leverage buying power,more organizations are centralizing purchasing to allow buying in volume.

Accepted Answer

Centralizing purchasing allows organizations to consolidate their purchasing power, which can lead to buying in larger volumes and, ultimately, achieving cost savings through economies of scale.

Question 5

Productivity is a qualitative measure of the efficiency with which inputs are transformed into outputs.

Accepted Answer

Productivity is a quantitative measure, not qualitative, as it involves the calculation of the ratio of outputs to inputs.

Question 6

Though the equipment used may not be elaborate,a high level of worker skill is often needed in small-batch production.

Accepted Answer

Small-batch production typically requires more attention to detail and customization, which often necessitates a higher level of worker skill even if the equipment used is not particularly advanced or complex.

Question 7

Long-linked technology can function like mass production,where a client is passed from point to point for various aspects of service delivery.

Accepted Answer

Long-linked technology involves passing a client from point to point for various aspects of service delivery, similar to how mass production operates.

Question 8

Internal customers are the individuals and groups who are found within the organization.

Accepted Answer

Internal customers refer to employees, departments, teams, and managers within an organization who rely on each other to perform their jobs effectively.

Question 9

An economic order quantity approach to inventory control allows for inventory to be purchased only when suppliers grant quantity discounts.

Accepted Answer

The economic order quantity (EOQ) model is used to determine the optimal order quantity that minimizes total inventory costs, including ordering and holding costs, regardless of supplier discounts.

Question 10

ISO certification uses a process that makes quality principles part of the organization's strategic objectives,applying them to all aspects of operations and striving to meet customers' needs by doing things right the first time.

Accepted Answer

The answer of ISO certification uses a process that makes...

Question 11

The break-even point is achieved when assets equal liabilities.

Accepted Answer

The break-even point is the point at which total revenue equals total costs, not when assets equal liabilities.

Question 12

Customer relationship management applies only to external customers.

Accepted Answer

Customer relationship management can include managing relationships with internal customers such as employees or contractors who contribute to the overall customer experience.

Question 13

RyanAir transforming resource inputs into low-cost,dependable air travel is an example of a manufacturing organization.

Accepted Answer

RyanAir is not a manufacturing organization, as it is primarily engaged in the provision of air travel services, which is a service-oriented industry.

Question 14

The value chain includes support activities,such as procurement,human resource management,technology development and support,and financial and infrastructure maintenance.

Accepted Answer

The answer of The value chain includes support activities,such as...

Question 15

Cellular layouts place machines doing similar work together,so that the movement of materials from one to the other is as efficient as possible.

Accepted Answer

Cellular layouts group different machines needed to produce a family of parts, minimizing movement and handling, unlike grouping similar machines together.

Question 16

Potential drivers of competitive advantage include the ability to outperform based on speed to market.

Accepted Answer

Speed to market can be a potential driver of competitive advantage as it allows a company to get their product or service to market faster than their competitors, potentially capturing more market share and increasing profits.

Question 17

The span of operations management does not cover the full input-throughput-output cycle.

Accepted Answer

The span of operations management covers the full input-throughput-output cycle, which includes designing, planning, executing, controlling, and improving the process of converting inputs into desired outputs. Therefore, the statement is false.

Question 18

Continuous-process production is equipment-intensive,but it can often be operated by a relatively small labor force.

Accepted Answer

Continuous-process production involves automated machinery and requires minimal human labor for continuous operation.

Question 19

The service-profit chain consists of all activities involved in the direct link between an organization's service providers and their employees.

Accepted Answer

The service-profit chain links employee satisfaction, service quality, and customer satisfaction to profitability, but it involves the relationship between employees, customers, and the organization's profitability, not just service providers and employees.

Question 20

Workers are highly independent in mass production.

Accepted Answer

In mass production, workers are typically not independent but instead follow strict guidelines and procedures to ensure consistent output and quality control.

Quiz 19: Operations and Services Management