Deck 18: Managing Service and Manufacturing Operations

Question 1

The two types of productivity are:

A) partial productivity and complete productivity
B) multifactor productivity and partial productivity
C) individual productivity and departmental productivity
D) departmental productivity and organizational productivity
E) organizational productivity and industry productivity

Answer 1

B

Question 2

A product's quality is determined by its:

A) reliability, homogeneity, and durability
B) reliability, validity, and effectiveness
C) serviceability, tangibility, and homogeneity
D) durability, reliability, and serviceability
E) consistency, tangibility, and durability

Answer 2

D

Question 3

When a manufacturer makes a product continuously, it is using:

A) project manufacturing
B) continuous-flow production
C) line-flow production
D) batch production
E) job shops

Answer 3

B

Question 4

The three principles that characterize TQM are continuous improvement, teamwork, and:

A) third party certification
B) delegation
C) participative management
D) customer focus and satisfaction
E) distinctive competence

Question 5

Which of the following is NOT a criterion on which companies are judged when applying for the Baldrige National Quality Award?

A) leadership
B) business results
C) customer and market focus
D) competitive advantage
E) process management

Question 6

Inventory is defined as the number of finished products that a company has in its possession either in the factory, in warehouses, or on delivery vehicles.

Question 7

Which of the following is the most flexible manufacturing operation?

A) project manufacturing
B) continuous-flow production
C) line-flow production
D) batch production
E) job shops

Question 8

The three principles that characterize TQM are continuous improvement, teamwork, and:

A) third party certification
B) delegation
C) participative management
D) customer focus and satisfaction
E) distinctive competence

Question 9

Which of the following types of operations are most dependent on the accuracy of sales forecasts?

A) project manufacturing
B) assemble-to-order operations
C) make-to-order operations
D) buy-to-sell operations
E) make-to-stock operations

Question 10

Downtime and lost efficiency are both examples of:

A) ordering costs
B) setup costs
C) holding costs
D) stockout costs
E) depreciation costs

Question 11

refers to a manufacturing operation that divides manufacturing processes into separate parts or modules that are combined to create semi-customized products.

A) Assemble-to-stock
B) Assemble-to-order
C) Make-to-order
D) Make-to-stock
E) Batch processing

Question 12

Which of the following shows the correct relationship for productivity, outputs, and inputs?

A) productivity = (inputs/outputs)
B) productivity = [(inputs
C) outputs = (productivity/inputs)
D) productivity = (outputs/inputs)
E) inputs = (productivity/outputs)

Question 13

Which of the following shows the correct relationship for productivity, outputs, and inputs?

A) productivity = (inputs/outputs)
B) productivity = [(inputs
C) outputs = (productivity/inputs)
D) productivity = (outputs/inputs)
E) inputs = (productivity/outputs)

Question 14

It costs ten times as much to find a new customer as it does to keep an existing customer.

Question 15

The term refers to restoring customer satisfaction to strongly dissatisfied customers.

A) service recovery
B) service enhancement
C) customer focus
D) customer reengineering
E) relationship marketing

Question 16

The term refers to restoring customer satisfaction to strongly dissatisfied customers.

A) service recovery
B) service enhancement
C) customer focus
D) customer reengineering
E) relationship marketing

Question 17

The three basic measures of inventory are inventory turnover, average aggregate inventory, and:

A) inventory depreciation
B) inventory amortization
C) weeks of supply
D) multifactor inventory
E) speed of obsolescence

Question 18

The first step in the service-profit chain is external service quality or the quality of treatment that employees
receive from a company's internal service providers.

Question 19

Two common measures of productivity are extrinsic productivity and intrinsic productivity.

Question 20

Which of the following types of operations are most dependent on the accuracy of sales forecasts?

A) project manufacturing
B) assemble-to-order operations
C) make-to-order operations
D) buy-to-sell operations
E) make-to-stock operations

Question 21

Total quality management (TQM) is an integrated organization-wide strategy for improving product and service quality.

Question 22

In TQM, customer focus and satisfaction, continuous improvement, and teamwork mutually reinforce each other to improve quality throughout a company.

Question 23

The five characteristics that typically distinguish a quality service are reliability, tangibles, responsiveness, assurance, and empathy.

Question 24

Since the Baldrige Award is directly based on ISO 9000 standards, it is essentially a U.S. version of recognition for excellence in meeting the ISO 9000 standards.

Question 25

Labor productivity is a frequently used example of extrinsic productivity.

Question 26

Durability is a quality characteristic that applies to products that are can't be repaired, only replaced.

Question 27

The first step in the service-profit chain is external service quality or the quality of treatment that employees
receive from a company's internal service providers.

Question 28

The purpose of the Baldrige National Quality Award is to recognize U.S. companies for their achievements in quality and business performance and to raise awareness about the importance of quality and performance excellence as a competitive edge.

Question 29

Generally speaking, it costs ten times as much to find a new customer as it does to keep an existing customer.

Question 30

At their core, companies are production systems that combine inputs such as labor, raw materials, capital, and knowledge to produce outputs such as finished goods or services.

Question 31

Extrinsic productivity indicates how much labor, capital, materials, and energy it takes to produce an output.

Question 32

ISO 9000 is a series of five international standards for achieving consistency in quality management and quality assurance because they ensure that companies carefully document the steps they take to create and improve product quality.

Question 33

Two common measures of productivity are extrinsic productivity and intrinsic productivity.

Question 34

Higher productivity is good not only for individual companies that achieve it but also for the countries in which they do business.

Question 35

Manufacturing operations are classified according to the depth of their inventory stock.

Question 36

The easier it is to maintain a working product or fix a broken product, the more reliable that product is.

Question 37

The purpose of service recovery is to restore customer satisfaction to strongly dissatisfied customers

Question 38

The companies that have won the Baldrige Award have achieved superior financial returns.

Question 39

All manufacturing operations produce physical goods.

Question 40

The three basic measures of inventory are inventory turnover, average aggregate inventory, and:

A) inventory depreciation
B) inventory amortization
C) weeks of supply
D) multifactor inventory
E) speed of obsolescence

Question 41

_{34. The CEO of a company that manufactures maple wooden cutting boards has determined that it takes wood, labor,} and electricity to make one maple cutting board. The CEO has determined the he can compare its operation with that of its competition.

A) integrated
B) multifactor
C) segregated
D) functional _{e. breakdown}
Productivity of his company so

Question 42

is a measure of performance that indicates how many inputs it takes to produce or create an output.

A) Reliability
B) Performance accountability
C) Productivity
D) TQM
E) Effectiveness

Question 43

If the manager of a company that manufactures signs was interested in how much glass tubing was needed to produce a Las Vegas casino neon sign, the manager would be interested in productivity.

A) composite
B) multifactor
C) partial
D) breakdown
E) fractional

Question 44

The four kinds of costs incurred with inventory maintenance are ordering costs, setup costs, transaction costs, and stockout costs.

Question 45

In general, the lower the number of inventory turns, the more efficiently the marketing department is operating.

Question 46

The three basic measures of inventory are average aggregate inventory, weeks of supply, and inventory turnover.

Question 47

Which of the following shows the correct relationship for productivity, outputs, and inputs?

A) productivity = (inputs/outputs)
B) productivity = [(inputs × outputs)/100]
C) outputs = (productivity/inputs)
D) productivity = (outputs/inputs)
E) inputs = (productivity/outputs)

Question 48

_{37. In general, managers should use to directly compare their overall level of productivity to that of their
competitors, and
to analyze the contributions of individual components to that overall productivity.}

A) efficiency measures; a productivity analysis
B) partial productivity; multifactor productivity
C) integrated productivity; segregated productivity
D) fragmented productivity; complete productivity
E) multifactor productivity; partial productivity

Question 49

Stockout costs are incurred when a company runs out of finished products.

Question 50

productivity shows how much labor, capital, materials, and energy it takes to create an output.

A) Temporal
B) Multifactor
C) Functional
D) Continuous
E) Quantitative

Question 51

The easier it is to maintain a working product or fix a broken product, the more that product appears.

A) reliable
B) serviceable
C) durable
D) tangible
E) effective

Question 52

Make-to-stock operations are highly dependent on the accuracy of sales forecasts.

Question 53

The American Society for Quality defines quality as .

A) a product free of deficiencies, or the characteristics of a product or service that satisfy customers' needs
B) a product that customers perceive as free of deficiencies
C) any product made from error-free components
D) a product produced according to a sacrificing design plan
E) none of these

Question 54

Which of the following statements about productivity is true?

A) Productivity is a ratio of benefits to costs (i.e., benefits divided by costs).
B) For companies, higher productivity can lead to lower costs.
C) For countries, higher productivity produces a lower standard of living.
D) Productivity decreases make products more affordable.
E) All of the statements about productivity are true.

Question 55

The product quality characteristic of is defined as the mean time before product failure.

A) reliability
B) assurance
C) durability
D) responsiveness
E) effectiveness

Question 56

Economic order quantity is intended for use with independent demand systems.

Question 57

Inventory is defined as the number of finished products that a company has in its possession either in the factory, in warehouses, or on delivery vehicles.

Question 58

To effectively manage inventory, a manager should use EOQ formulas when inventory levels are independent, and
JIT and MRP when inventory levels are dependent on the number of products to be produced.

Question 59

Why is productivity important to countries?

A) Productivity matters because it produces a higher standard of living.
B) Greater productivity results in lower wages.
C) Productivity increases supply and reduces demand for products.
D) Productivity reduces taxation.
E) None of these statements explains why productivity is important to countries.

Question 60

Which of the following is an important characteristic of a quality product?

A) reliability
B) validity
C) responsiveness
D) homogeneity
E) tangibility

Question 61

The three principles that characterize TQM are continuous improvement, customer focus and satisfaction, and ____.

A) teamwork
B) organizational dialogue
C) the equity theory
D) autonomy
E) competitive advantage

Question 62

The ability to consistently perform a service well is referred to as service .

A) reliability
B) assurance
C) responsiveness
D) tangibility
E) durability

Question 63

Which of the following statements about ISO 9000 is true?

A) ISO 9000 is a single international standard for achieving consistency in quality management and quality assurance in companies throughout the world.
B) The ISO 9000 standard is applicable only to the manufacturing of goods and not to the delivery of services.
C) ISO 9000 certification may be suspended or canceled if companies fail a periodic audit following their initial ^{certification.}
D) Ninety-eight percent of companies that already have achieved ISO 9000 certification said they did so because it increases profitability.
E) Service providers can achieve ISO 14000 certification.

Question 64

The three principles that characterize TQM are continuous improvement, teamwork, and .

A) third party certification
B) delegation
C) participative management
D) customer focus and satisfaction
E) distinctive competence

Question 65

Which of the following statements about the Baldrige National Quality Award is true?

A) The purpose of the Baldrige Award is to recognize all companies that operate in the business-to-business market for their achievements in quality and business performance and to raise awareness about the importance of quality and performance excellence as a competitive edge.
B) The Baldrige Award is primarily concerned with improving customer satisfaction.
C) Companies that apply for the Baldrige Award are judged on a 1,000-point scale based on three criteria: leadership, customer and market focus, and business results.
D) An emphasis on results is what differentiates the Baldrige Award from the ISO 9000 standards.
E) All of these statements about the Baldrige National Quality Award are true.

Question 66

Which of the following statements about ISO 9000 is true?

A) ISO 9000 is a series of five international standards for achieving consistency in quality management and quality assurance in companies throughout the world.
B) The ISO 9000 standards are applicable to the manufacturing of goods and to the delivery of services.
C) Studies show that customers prefer to buy from companies with ISO 9000 certification.
D) ISO 9000 certification may be suspended or canceled if companies fail an audit following their initial certification.
E) All of these statements about ISO 9000 are true.

Question 67

A product's quality is determined by its .

A) reliability, homogeneity, and durability
B) reliability, validity, and effectiveness
C) serviceability, tangibility, and homogeneity
D) durability, reliability, and serviceability
E) consistency, tangibility, and durability

Question 68

Most companies define product in terms of how easy or difficult it is to fix a product.

A) reliability
B) serviceability
C) responsiveness
D) consistency
E) effectiveness

Question 69

In terms of the characteristics of service quality, a major newspaper is said to be interest to its readers consistently at the same time and place daily.

A) proactive
B) responsive
C) durable
D) accessible _{e. reliable}
If it provides news of

Question 70

Which of the following statements about ISO 9000 is true?

A) ISO 9000 is a series of three standards for achieving consistency in quality management and quality assurance in U.S.-based organizations only.
B) The ISO 9000 standards are specific and require companies who seek this certification to completely reorganize.
C) To become ISO 9000 certified, companies must show that they are following their own procedures.
D) The ISO standards were created by the Industrial Service Organizations.
E) All of these statements about ISO 9000 are true.

Question 71

According to the TQM strategy, what should be a company's primary goal?

A) customer focus and satisfaction
B) continuous improvement
C) teamwork
D) participative management
E) reciprocity

Question 72

Which of the following is NOT a criterion on which companies are judged when applying for the Baldrige National Quality Award?

A) leadership
B) business results
C) customer and market focus
D) competitive advantage
E) process management

Question 73

The average time between breakdowns (for machinery) is referred to as ?

A) reliability
B) serviceability
C) responsiveness
D) consistency
E) effectiveness

Question 74

_{53. The purpose of is to recognize U.S. companies for their achievements in quality and business performance}
And to raise awareness of how quality and performance excellence can be used to create a competitive edge.

A) ISO 9000 certification
B) the Baldrige Award
C) the Herzberg Award for Excellence
D) Kanban certification
E) the Gantt Award

Question 75

An article addressed to nurses who work in intensive care emphasize practices affirming the patient's intrinsic value and individual personality One method to affirm the patient's intrinsic value is to demonstrate ____.

A) empathy
B) serviceability
C) durability
D) homogeneity
E) tangibility

Question 76

Which of the following statements about total quality management (TQM) is true?

A) TQM is an integrated organization-wide strategy for improving product and service quality.
B) TQM is a specific technique used to reposition a company's product so as to justify higher prices.
C) TQM is based on four mutually reinforcing principles: customer focus, customer satisfaction, participative management, and delegation.
D) TQM was developed and is monitored by the International Organization of Standards.
E) All of these statements about TQM are true.

Question 77

Which of the following quality characteristics can be applied to both goods and services?

A) reliability
B) serviceability
C) durability
D) homogeneity
E) tangibility

Question 78

ISO 14000 .

A) provides ISO certification for service providers
B) is a series of five international standards for achieving consistency in quality management and quality assurance in companies throughout the world
C) is a series of international standards for managing, monitoring, and minimizing an organization's harmful effect on the environment
D) is the interim ISO certification that is granted in the event that ISO 9000 certification is temporarily withdrawn
E) is only given to manufacturers who have achieved the highest possible level of product quality and assurance

Question 79

A company expressing its ongoing commitment to continuous product improvement and premium quality products is committed to .

A) a bureaucratic structure
B) total quality management
C) winning ISO 8000 certification
D) implementing an MRP program
E) autonomous work stations

Question 80

_{56. In TQM terms, is an organizational goal to provide products or deliver services that meet or exceed}
Customers' expectations.

A) market response
B) customer satisfaction
C) market focus
D) positive framing
E) added value