Deck 20: Managing Operations, quality, and Productivity

Question 1

A Forever 21 retail store creates value and provides place and time utility by bringing together the customer and products made by others.

Answer 1

False

Question 2

The capacity decision is truly a low-risk one because of the certainties of future product demand.

Answer 2

False

Question 3

Firms with just-in-time inventory systems would be wise to have one essential supplier for inputs to their transformation systems.

Answer 3

False

Question 4

Determining the product-service mix to be offered is a marketing function that should not affect the operations function.

Question 5

Manufacturing always relies on feedback,information,sensors,and a control mechanism.

Question 6

The big move to automate factories began during the Persian Gulf War.

Question 7

Pipeline inventory controls purchasing.

Question 8

It would be appropriate to make operations accountable for profitability in an organization that stresses sales and market share over quality and productivity.

Question 9

Habitat for Humanity uses a cellular layout when building homes.

Question 10

Technology is the set of processes and systems used by organizations to convert resources into products or services.

Question 11

At some airports customers check in for their flights at kiosks.The kiosk is a robot.

Question 12

Sue just received a new assignment from her boss.She is supposed to find a way to use robots to move the work-in-process from one workstation to another.In other words,Sue is supposed to develop a computer-aided design system.

Question 13

Robots are not as useful in service industries as they are in manufacturing industries.

Question 14

Inefficient or ineffective operations management will almost inevitably lead to poor performance and low levels of both quality and productivity.

Question 15

A triathlon uses a product layout.

Question 16

Organizational strategies and operations management affect each other directly.

Question 17

Robots excel at repetitive jobs like loading and unloading as well as at detailed work such as welding.

Question 18

Managers have come to see that many of the tools,techniques,and methods that are used in a factory are also useful to a service firm.

Question 19

When you visit a financial planner you provide her with income,expense,and goal information.She then turns that information into a financial plan with a budget,investment plan,and insurance plan.She is practicing operations management.

Question 20

Computer-assisted design relies on computers to manufacture products.

Question 21

Which sector of the United States economy was responsible for 80 percent of the GNP in 2009 and almost 90% of new jobs created since the 1990s?

A) Manufacturing
B) Service
C) Government
D) Exports
E) Imports

Question 22

Which of the following organizations would provide the consumer with time and place utility through its operations management function?

A) United Technologies Corporation when it manufactures Otis elevators
B) The NYC subway
C) Sealed Air,maker of bubble wrap
D) Kincaid,furniture maker
E) Reed and Reed,building construction

Question 23

Features supplement the services basic functioning characteristics.

Question 24

The goals of operations managers are efficiency and effectiveness,which are achieved through

A) quality and profits.
B) productivity and profits.
C) profits and legal responsibility.
D) quality and productivity.
E) profits and returns to stockholders.

Question 25

Improving service-sector productivity is the next major hurdle facing U.S.business productivity.

Question 26

What is the relationship between operations management and organizational strategy?

A) Operations management drives organizational strategy decisions.
B) Organizational strategy drives operations management decisions.
C) There is a direct relationship between the two so that each affects the other.
D) There is essentially little relationship between the two areas.
E) To date,research has been unable to show a consistent relationship between the two.

Question 27

Operations management is primarily concerned with which element of systems theory?

A) Inputs
B) Outputs
C) Transformation processes
D) Feedback
E) Entropy

Question 28

A Six Sigma defect rate is six standard deviations above the mean rate.

Question 29

Quality is both an absolute and a relative concept.

Question 30

Which of the following statements about the relationship between operations management and utility is TRUE?

A) All operations management provides utility of one type or another.
B) Only operations management in the manufacturing sector can truly be said to provide utility.
C) Only operations management in the service sector provides utility because it is where product and consumer meet.
D) Operations management creates the same kind of utility regardless of the sector of the economy involved.
E) There is no demonstrable relationship between operations management and utility.

Question 31

Restaurants are in which industry?

A) Manufacturing
B) Distribution
C) Service
D) Retailing
E) Not-for-profit

Question 32

The text notes that what we now call operations management was once called production management and implies that there are several reasons for the change in nomenclature.Which of the following is NOT one of those reasons?

A) The decline in manufacturing in the United States in recent years
B) Changes in manufacturing processes such as the increased use of robots and other computer-based technology
C) The increase in the size and importance of the service sector in the U.S.economy
D) Drastic increases in foreign competition and the subsequent effects it has had on U.S.firms
E) The fact that many of the tools and techniques used in manufacturing can also be used in the service sector

Question 33

The Malcolm Baldrige Award is given to firms that achieve major quality improvements.

Question 34

The problems that operations managers face generally revolve around issues related to

A) hiring and retaining qualified employees.
B) planning and structuring the workforce.
C) marketing and distributing finished goods.
D) the acquisition and utilization of resources for conversion.
E) research and development related to new technology.

Question 35

Which of the following factors was largely responsible for the fact that the entire U.S.economy did not mirror declines in the manufacturing sector during the 1970s?

A) Automation of factories
B) Growth of the service sector
C) Improved foreign trade balances
D) Reduction of long-term interest rates
E) Low levels of unemployment

Question 36

Cross-training allows a firm to function with fewer workers.

Question 37

A ____ organization is one that transforms resources into an intangible output and creates time or place utility for its customers.

A) manufacturing
B) distribution
C) service
D) retailing
E) not-for-profit

Question 38

Which of the following organizations creates form utility?

A) Etrade
B) Haldeman Ford dealership
C) UPS
D) Audi
E) Continental Airlines

Question 39

Many unions support cross-training because they think it preserves job security.

Question 40

____ is the total set of managerial activities that an organization uses to create its products or services.

A) Management
B) Managerial effectiveness
C) Operations management
D) A transformation system
E) Scientific management

Question 41

Many shows broadcast on U.S.television today are filmed in British Columbia,Canada.The production company takes advantage of the many amenities that British Columbia offers.Operations management decisions to film in British Columbia are an example of ____ decisions.

A) product-service mix
B) capacity utilization
C) technology
D) facilities
E) location

Question 42

Operations managers must specifically address both ____ when setting up an operations system.

A) technology and layout
B) location and layout
C) quality and technology
D) flexibility and product cost
E) layout and flexibility

Question 43

Dollar Shave Club delivers razor blades to the customer's home for as little as $4 a month.A package of Gillette blades at a store cost $20 to 30.After just 3 years in business,Dollar Shave Club has 2 million members and projected revenue of over $140 million.Proctor and Gamble,maker of Gillette,once had 70% of the market.DSC is forcing P&G to make some ____ decisions.

A) facilities
B) marketing
C) capacity utilization
D) product substitutes
E) human resource mix

Question 44

Calphalon makes pots and pans using similar techniques but each in their own family of product,like nonstick,stick or copper.This is an example of a ____ layout.

A) product
B) fixed-position
C) cellular
D) functional
E) process

Question 45

Which of the following factors is NOT a consideration when determining the capacity utilization required in an operations system?

A) Technology
B) Demand
C) Variation in demand
D) Required flexibility
E) Conversion capacity

Question 46

Which of the following questions are concerned with capacity utilization decisions that must be made by operations management?

A) How many automobiles do we produce?
B) How much floor space do we devote to a particular product?
C) How many tables does my restaurant need?
D) How much office space does the accounting operation need?
E) All of these choices

Question 47

Intel decided the new Itanium chip would replace the Pentium.During the transition,Pentium chips would be cheaper,but once the Itanium facility was operational,Intel would cease manufacture of Pentiums.The decision to cease Pentium production is a decision that most directly involves its

A) operations systems.
B) span of management.
C) decentralized control.
D) mission evolution.
E) ability to use the expectancy theory.

Question 48

Callaway makes golf clubs.Which type of layout would you expect to find in a manufacturing plant that makes silverware?

A) Product layout
B) Cellular layout
C) Specialized layout
D) Functional layout
E) Process layout

Question 49

Which type of layout would you expect to find in the manufacturing plant that makes Clif bars energy bars?

A) Product
B) Fixed-position
C) Specialized
D) Functional
E) Process

Question 50

In the short-term people may lose their jobs,but in the long-term jobs are generally created by

A) automation.
B) flexible manufacturing.
C) CAD.
D) CAM.
E) CIM.

Question 51

A product layout MOST likely would be found in organizations

A) using small-batch technology.
B) using large-batch (mass production)technology.
C) using continuous flow (process)technology.
D) producing custom-made products.
E) in the service sector.

Question 52

Which of the following is NOT an important part of automation?

A) Feedback
B) Information
C) Plotters
D) Sensors
E) Control mechanisms

Question 53

United Technologies offered to buy Goodrich.This is an example of what kind of an operations decision?

A) Product-service mix
B) Capacity utilization
C) Technology
D) Facilities
E) Human resources

Question 54

To ensure that a newly designed product moves smoothly to the production stage,____ could be used.

A) JIT
B) computer-aided design
C) postaction control
D) computer-assisted manufacturing
E) flexible manufacturing systems

Question 55

Which of the following statements about the effects of automation on employees is TRUE?

A) In the long run,automation will create more jobs than are lost because of it.
B) The majority of workers will lose their jobs when automation is used.
C) More employees will be needed immediately after automation is implemented,but eventually the number required will decrease.
D) There is no way to judge before implementation how many workers will be needed.
E) Many of the workers now performing the jobs will be unable to perform the new automated jobs and will be fired.

Question 56

When General Odierno said the troop withdrawal from Afghanistan was going too fast,he was making a ____ statement.

A) product-service mix
B) capacity
C) technology
D) facilities
E) service

Question 57

Which of the following pairs of factors that are important to designing operations systems are MOST closely related to demand?

A) Product-service mix and facilities
B) Capacity utilization and facilities
C) Product-service mix and technology
D) Technology and capacity utilization
E) Products-service mix and capacity utilization

Question 58

Dina works in construction.She travels to the job site to build the next house.This is an example of a ____ layout.

A) product
B) fixed-position
C) cellular
D) functional
E) process

Question 59

Katina is in the emergency room.The medical staff thinks she has a broken wrist,so she is taken to x-ray.This is an example of the use of ____ layout.

A) product
B) fixed-position
C) specialized
D) functional
E) process

Question 60

There is a Canadian insurance company that provides only one kind of insurance.It insures athletes who have multimillion dollar contracts that must be paid,even if the athlete is injured or in some other way unable to play.Owners buy the insurance policies as a way to protect themselves.When the insurance company decided to specialize in this type of insurance,it made a ____ decision.

A) facilities
B) product-service mix
C) capacity utilization
D) product substitutes
E) human resource mix

Question 61

The first application of robots was for which of the following?

A) Drilling
B) Welding
C) Cutting
D) Assembling
E) Painting

Question 62

On your way home from class,you stopped at the student center to get some money from an automatic teller.Which of the following best describes the machine you used?

A) An advancement in manufacturing technology
B) Computer-aided design
C) Computer-aided manufacturing
D) Computer-assisted technology
E) An advancement in service technology

Question 63

The production manager has just received a large block of orders for products not manufactured yet;however,he is not concerned.Which of the following items can you safely assume this production manager uses?

A) Robotics
B) Computer-aided design
C) Process layouts
D) Computer-aided manufacturing
E) Product layouts

Question 64

The purchasing agent for Wegmans,a grocery store,would

A) be an extremely important part of the company's supply chain management.
B) order produce,dry goods,and staple goods.
C) be responsible for buying shelving and display equipment.
D) worry just as much about having too little inventory as having too much.
E) All of these choices

Question 65

Which of the following is NOT one of the constraints with which a purchasing agent must deal?

A) Inventory levels and delivery dates
B) Supplier reliability
C) Integrating purchasing with production
D) Getting the best possible discounts and terms
E) The quality of what is being purchased

Question 66

Which of the following is NOT a current use for robotics?

A) Loan approval
B) Brain surgery
C) Agriculture
D) Police work
E) Jewelry engraving

Question 67

Heather's boss has just given her the responsibility of developing a new line of protective gear for kayakers.However,he warned her that the time available for development is not as long as she would probably like.What should Heather use to speed up the development process?

A) Robotics
B) Computer-aided design
C) Computer-integrated manufacturing
D) Computer-aided manufacturing
E) Flexible manufacturing systems

Question 68

Unmanned aircraft are increasingly sent into combat instead of piloted aircraft.This is an example of

A) CAD.
B) CAM.
C) FMS.
D) robotics.
E) JOT.

Question 69

At Wal-Mart,70 percent of merchandise is rung up at the cash register before the company even pays for it.This is an example of

A) management by objectives.
B) participatory management.
C) quality circles.
D) a just-in-time inventory system.
E) computer-assisted manufacturing.

Question 70

Many small companies sell their products through Amazon.Sometimes the product ships from an Amazon warehouse and other times it ships from the small company.Amazon is part of the

A) raw materials and component parts.
B) in-process inventories.
C) finished-goods inventories.
D) in-transit inventories.
E) maintenance,repair,and office inventories.

Question 71

One of the major tasks for movies like The Chronicles of Narnia is to create costumes for various species that reflect the mythical persona and that can be worn by humans for lengthy periods of time.____ could be used to speed up the development process.

A) Robotics
B) Computer-aided design
C) Computer-integrated manufacturing
D) Computer-aided manufacturing
E) Flexible manufacturing systems

Question 72

Which of the following statements about the use of operations management as a control is TRUE?

A) Operations management can be used as a control by tying it in with the other functions.
B) When operations management is used as a control,operations managers should be held responsible for all product-related activities.
C) Accountability for operations managers is spelled out in rules when the organization is bureaucratic in nature.
D) In a clan system,accountability is usually not formalized.
E) Misplaced accountability that occurs with operations management reduces effectiveness of control and increases conflict.

Question 73

Which of the following is NOT a type of inventory that must be controlled by a manufacturing organization?

A) Raw materials
B) In-transit
C) Product reviews
D) Finished goods
E) Work-in-process

Question 74

Dale has seen unit production costs increase dramatically over the past few years because of the high interest rates on money borrowed to purchase and store inputs.Which of the following should Dale consider?

A) Management by objectives
B) Participatory management
C) Quality circles
D) Just-in-time inventory systems
E) Computer-assisted manufacturing

Question 75

____ is the process of managing operations control,resource acquisition and purchasing,and inventory to thus improve overall efficiency and effectiveness.

A) Supply-chain management
B) Resource management
C) Inventory management
D) Quality control
E) Productivity control

Question 76

Which of the following would utilize computer-controlled transportation systems?

A) Robotics
B) Computer-aided design
C) Computer-integrated manufacturing
D) Computer-aided manufacturing
E) Flexible manufacturing systems

Question 77

The basic functional purpose of operations systems is to

A) guide development of corporate strategy.
B) guide development of business-level strategy.
C) integrate the efforts of various strategic business units.
D) coordinate the organization's functional strategies.
E) control the organization's transformation processes.

Question 78

Levels of finished-goods inventories are controlled by

A) the distribution system.
B) decisions by middle management.
C) the marketing department.
D) the overall production scheduling system.
E) purchasing managers.

Question 79

The Limited has a competitive advantage in speed.The product moves from finish good to retail stores in a fraction of the time it takes competitors to do the same thing.Its operations management excels at

A) the acquisition of inputs for organizational transformation processes.
B) the maintenance of quality of work-in-process.
C) the management of raw materials inventories.
D) the management of in-process inventories.
E) the transportation and distribution control system.

Question 80

Power School allows parents to review grades,attendance,assignments,and student data on a daily basis.This is an example of

A) advancement in manufacturing technology.
B) computer-aided design.
C) computer-aided manufacturing.
D) computer-assisted technology.
E) advancement in service technology.