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

Accepted Answer

Multifactor productivity measures the output produced per unit of combined input, while partial productivity only takes into account one input factor in relation to output. These are the two main types of productivity measured in operations management.

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

Accepted Answer

The three factors that determine a product's quality are durability (the ability of the product to survive wear and tear), reliability (the consistency of the product's performance over time), and serviceability (the ease of repairing or maintaining the product). Therefore, option D, which includes all three of these factors, is the correct answer.

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

Accepted Answer

Continuous-flow production is the method of producing goods in large quantities using a continuous production flow. This means that the production process is always running, without interruption, and the product is manufactured at a consistent rate. This method is typically used for high-volume, low-variety products, such as beverages or electronics components.

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

Accepted Answer

Customer focus and satisfaction is a crucial principle of TQM that emphasizes meeting or exceeding customer expectations and ensuring their satisfaction. This principle drives the continuous improvement process by providing a clear goal for all efforts towards improvement. Additionally, teamwork and participative management are important components of TQM, but they are not the defining principles. Third party certification and distinctive competence are not directly related to TQM principles.

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

Accepted Answer

While competitive advantage is an important aspect of business success, it is not one of the criteria on which companies are judged for the Baldrige National Quality Award. The award focuses on leadership, business results, customer and market focus, process management, workforce focus, and organizational effectiveness.

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.

Accepted Answer

Inventory is the amount and number of raw materials, parts, and finished products that a company has in its possession.

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

Accepted Answer

Job shops are the most flexible manufacturing operation as they are designed to handle customized orders in small quantities. They can easily switch between different products and processes, and can respond quickly to changes in customer demands. In contrast, the other options listed are more suited for standardized, high-volume production and are less adaptable to changes in product design or demand.

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

Accepted Answer

The third principle of TQM is customer focus and satisfaction, which involves understanding and meeting the needs and expectations of customers. This principle involves gathering feedback from customers and using it to improve processes and products, as well as providing exceptional customer service. The other principles listed (third party certification, delegation, participative management, and distinctive competence) are not specific to TQM.

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

Accepted Answer

Make-to-stock operations are most dependent on sales forecasts as they rely on producing a certain quantity of goods in advance based on anticipated demand. If the sales forecasts are inaccurate, these operations may end up with too much or too little inventory, leading to waste or stockouts.

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

Accepted Answer

Setup cost is the cost of changing or adjusting a machine so that it can produce a different kind of inventory.

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

Accepted Answer

Assemble-to-order refers to a manufacturing operation where the manufacturing processes are divided into separate parts or modules that are combined to create semi-customized products. Customers select from a menu of options and the final product is assembled based on their choices. This allows for some customization while still maintaining the benefits of mass production efficiency.

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)

Accepted Answer

Productivity is defined as the ratio of outputs produced to the inputs used. Therefore, the correct relationship is productivity = (outputs/inputs).

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)

Accepted Answer

The correct relationship for productivity, outputs, and inputs is productivity = (outputs/inputs). This formula expresses how efficiently inputs are being used to produce outputs. The higher the productivity, the more efficiently inputs are being utilized to produce outputs.

Question 14

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

Accepted Answer

This is a common business principle known as the "10x rule," which suggests that it is more cost-effective to retain current customers than to acquire new ones. According to research, the cost of acquiring a new customer can be up to ten times higher than retaining 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

Accepted Answer

Service recovery refers to the actions taken by a company to restore customer satisfaction to strongly dissatisfied customers. This could include offering compensation, apologizing, and taking steps to prevent the issue from happening again. Service enhancement, customer focus, customer reengineering, and relationship marketing all relate to different aspects of customer service but do not specifically address the issue of restoring satisfaction to dissatisfied customers.

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

Accepted Answer

Service recovery refers to the process of repairing a relationship with a customer who has experienced a problem or disappointment with a product or service. It involves trying to restore their satisfaction and trust in the company, often through processes like refunding money, apologizing, offering free products or services, or other gestures of goodwill.

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

Accepted Answer

Weeks of supply is the third basic measure of inventory. It represents the amount of time it takes for inventory levels to be depleted based on demand.

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.

Accepted Answer

The first step in the service-profit chain is actually external customer satisfaction, not external service quality or internal service providers.

Question 19

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

Accepted Answer

There are several measures of productivity, but extrinsic productivity and intrinsic productivity are not among them. Common measures of productivity include output per worker, revenue per employee, and time to complete a task. Extrinsic factors that can affect productivity include incentives, rewards, and punishments, while intrinsic factors include motivation, interest, and satisfaction.

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

Accepted Answer

Make-to-stock operations rely heavily on sales forecasts because their inventory is produced in anticipation of demand. If sales forecasts are inaccurate, then inventory levels may be too high or too low, leading to waste or stockouts.

Quiz 18: Managing Service and Manufacturing Operations

The two types of productivity are:

A product's quality is determined by its:

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

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

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

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.

Which of the following is the most flexible manufacturing operation?

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

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

Downtime and lost efficiency are both examples of:

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

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

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

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

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

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

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

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.

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

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