Question 1

Which of the following is often more important for business customers than consumer customers?
A) Cost
B) Timeliness
C) Product quality
D) Value
E) Service quality

Accepted Answer

Timeliness is often more critical for business customers as they rely on timely deliveries to maintain their operations and meet their own customer demands.

Question 2

Mass customization:
A) Will probably never exist
B) Is an objective of many U.S. manufacturers
C) Occurred as a result of the just-in-time revolution of the 1980's
D) Has already been achieved in the service sector.

Accepted Answer

Mass customization is a goal for many U.S. manufacturers as it allows them to tailor products to individual customer preferences while still achieving economies of scale.

Question 3

A strategy is
A) A plan for maximizing profitability
B) A plan for designing effective processes
C) A plan for how the business will continue to be profitable in the future
D) A plan for beating competitors
E) None of the above

Accepted Answer

A strategy is a comprehensive plan that outlines how a business will achieve long-term success and maintain profitability in the future.

Question 4

Which of the following is not an integrative management framework in the resource/profit model?
A) Lean systems
B) Constraint management
C) Customer relationship management
D) Supply chain management

Accepted Answer

Customer relationship management (CRM) is not an integrative management framework in the resource/profit model. CRM focuses on managing a company's interactions with current and potential customers, rather than integrating and managing resources or supply chains to improve efficiency and profitability.

Question 5

The most influential environmental force that product- and service- oriented firms must deal with is:
A) Globalization
B) The Internet
C) Regulatory forces
D) The natural environment
E) None of the above

Accepted Answer

Globalization is a major force affecting firms as it influences market dynamics, competition, and consumer behavior on a global scale.

Question 6

Constraint management focuses on:
A) Controlling employee behavior by establishing constraints
B) Cost reduction
C) How a limiting resource can determine system productivity
D) Reducing costs through elimination of process tasks
E) None of the above

Accepted Answer

Constraint management primarily deals with identifying and managing the limiting factor (constraint) that hinders a system's ability to achieve higher performance, productivity, or throughput. It is a key concept in theories like the Theory of Constraints (TOC), which focuses on how to systematically improve and elevate the performance of the constraint to improve the overall system.

Question 7

Lean systems refers to
A) Systems with very little waste and low inventory
B) Systems that add very little value
C) Systems that outsource all processing steps
D) Systems that depend on external suppliers for capacity
E) None of the above

Accepted Answer

Lean systems are designed to minimize waste and reduce inventory, focusing on efficiency and value creation.

Question 8

In a knowledge-based economy, _______ substitute _______ for other capital.

Accepted Answer

The answer of In a knowledge-based economy, _______ substitute _______...

Question 9

If profitability is the answer to the ___ question of a business's existence, then value answers the ____ question.

Accepted Answer

The answer of If profitability is the answer to the...

Question 10

Inventory is a (n) _______ on the balance sheet, but has characteristics of a (n) _______ as well.

Accepted Answer

The answer of Inventory is a (n) _______ on the...

Question 11

_______ ________ ________ provide a set of principles that eliminate the need to evaluate day-to-day decisions on the basis of profitability.

Accepted Answer

The answer of _______ ________ ________ provide a set of...

Question 12

A close match between the _____ rate and the _____ rate is critical for services because services can't be stored for future use.

Accepted Answer

The answer of A close match between the _____ rate...

Question 13

Match these items.
-Integrative Management Framework
A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Accepted Answer

Integrative Management Framework is a philosophy to guide day-to-day decisions.

Question 14

Match these items.
-Lean systems
A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Accepted Answer

Lean systems are designed to minimize waste and maximize efficiency, making "a system with little waste" the correct match.

Question 15

Match these items.
-Inventory
A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Accepted Answer

Inventory refers to the materials used in the production of products and services.

Question 16

Match these items.
-Capacity
A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Accepted Answer

Capacity refers to the level of output a system can produce in a given period of time.

Question 17

Match these items.
-Craft Production
A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Accepted Answer

Craft production refers to the manufacturing process where skilled artisans individually create products, often with a high degree of customization and craftsmanship, as opposed to mass production methods.

Question 18

Match these items.
-Profitability
A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Accepted Answer

Profitability is best described as a measure of the productivity of money invested in a business, indicating how efficiently a company generates profit relative to its revenue and expenses.

Question 19

Match these items.
-Capability
A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Accepted Answer

A capability refers to a business's abilities that result from its processes, making option A the correct match.

Question 20

Match these items.
-Strategy
A) A business' abilities that result from its processes
B) Materials used in the production of products and services
C) A measure of the productivity of money invested in a business
D) A plan for creating profitability in the future
E) Production of goods by skilled artisans
F) A philosophy to guide day-to-day decisions
G) Managing system productivity by managing the limiting resources of the system
H) The level of output in a specified period of time
I) A system with little waste
J) The speed at which a business completes tasks

Accepted Answer

A strategy is a plan for creating profitability in the future.

Quiz 1: Introduction: Why Operations Management

Which of the following is often more important for business customers than consumer customers?

Mass customization:

A strategy is

Which of the following is not an integrative management framework in the resource/profit model?

The most influential environmental force that product- and service- oriented firms must deal with is:

Constraint management focuses on:

Lean systems refers to

In a knowledge-based economy, _ substitute _ for other capital.

If profitability is the answer to the _ question of a business's existence, then value answers the __ question.

Inventory is a (n) _ on the balance sheet, but has characteristics of a (n) _ as well.

_ __ provide a set of principles that eliminate the need to evaluate day-to-day decisions on the basis of profitability.

A close match between the _ rate and the _ rate is critical for services because services can't be stored for future use.

Match these items. -Integrative Management Framework

Match these items. -Lean systems

Match these items. -Inventory

Match these items. -Capacity

Match these items. -Craft Production

Match these items. -Profitability

Match these items. -Capability

Match these items. -Strategy