Chapter 1

Question 1

Operations management involves continuous decision-making; hopefully most decisions made will be

Answer 1

Informed

Question 2

A ‘product package’ consists of:

Answer 2

a combination of goods and services

Question 3

Business organizations consist of three major functions which, ideally:

Answer 3

Support one another

Question 4

Which of the following is not a type of operations?

Answer 4

All Above involve operations (goods-storage/transportation-entertainment-communication

Question 5

Technology choices seldom affect

Answer 5

union activity

Question 6

Measurements taken at various points in the transformation process for control purposes are called

Answer 6

feedback

Question 7

Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function.

Answer 7

finance

Question 8

Which one of the following would not generally be classified under the heading of transformation?

Answer 8

staffing

Question 9

Manufacturing work sent to other countries is called

Answer 9

outsourced

Question 10

Product design and process selection are examples of decisions that are

Answer 10

system design

Question 11

The responsibilities of the operations manager are

Answer 11

planning, organizing, staffing, directing, and controlling

Question 12

Knowledge skills usually don’t include

Answer 12

communication skills

Question 13

Which of the following is not true about systems approach?

Answer 13

A systems approach concentrates on efficiency within subsystems.

Question 14

What is credited with gains in industrial productivity, increased standards of living and affordable products?

Answer 14

assembly lines

Question 15

Production systems with customized outputs typically have relatively

Answer 15

skilled workers

Question 16

Which is not a significant difference between manufacturing and service operations?

Answer 16

cost per unit

Question 17

Which of the following is not a characteristic of service operations

Answer 17

easy measurement of productivity

Question 18

Which of the following is a recent trend in business?

Answer 18

supply chain management

Question 19

Farming is an example of:

Answer 19

non-manufactured goods

Question 20

Dealing with the fact that certain aspects of any management situation are more important than others is called:

Answer 20

recognition of priorities

Question 21

The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the

Answer 21

pareto phenomenon

Question 22

The process of comparing outputs to previously established standards to determine if corrective action is needed is called

Answer 22

controlling

Question 23

Which of the following does not relate to system design?

Answer 23

inventory management

Question 24

Taking a systems viewpoint with regard to operations in today’s environment increasingly leads decision-makers to consider ______________ in response to the ____________

Answer 24

sustainability; threat of global warming

Question 25

Some companies attempt to maximize the revenue they receive from fixed operating capacity by influencing demands through price manipulation. This is an example of

Answer 25

revenue management

Question 26

Which of the following is not an ongoing trend in manufacturing?

Answer 26

mass production for greater economies of scale

Question 27

Which of the following is not a benefit of using models in decision making?

Answer 27

All of the above are benefits.

Question 28

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management.

Answer 28

outsourcing; supply chain

Question 29

``` Operations management involves continuous decision-making; hopefully most decisions made will be: A. redundant B. minor in nature C. informed D. quantitative E. none of the above ```

Answer 29

C. informed

Question 30

A 'product package' consists of: A. the exterior wrapping B. the shipping container C. a combination of goods and services D. goods if a manufacturing organization E. customer relations if a service organization

Answer 30

C

Question 31

``` Business organizations consist of three major functions which, ideally: A. support one another B. are mutually exclusive C. exist independently of each other D. function independently of each other E. do not interface with each other ```

Answer 31

A

Question 32

``` Which of the following is not a type of operations? A. goods production B. storage/transportation C. entertainment D. communication E. all the above involve operations ```

Answer 32

E

Question 33

``` Technology choices seldom affect: A. costs. B. productivity. C. union activity. D. quality. E. flexibility ```

Answer 33

C

Question 34

``` Measurements taken at various points in the transformation process for control purposes are called: A. plans B. directions C. controls D. feedback E. budgets ```

Answer 34

D

Question 35

``` Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function. A. operation B. marketing C. purchasing D. finance E. internal audit ```

Answer 35

D

Question 36

``` ich one of the following would not generally be classified under the heading of transformation? A. assembling B. teaching C. staffing D. farming E. consulting ```

Answer 36

C

Question 37

``` Manufacturing work sent to other countries is called: A. downsized B. outsourced C. internationalization D. vertical integration E. entrepreneurial ship ```

Answer 37

B

Question 38

``` Product design and process selection are examples of _______ decisions. A. financial B. tactical C. system design D. system operation E. forecasting ```

Answer 38

C

Question 39

The responsibilities of the operations manager are: A. planning, organizing, staffing, procuring, and reviewing B. planning, organizing, staffing, directing, and controlling C. forecasting, designing, planning, organizing, and controlling D. forecasting, designing, operating, procuring, and reviewing E. designing and operating

Answer 39

B

Question 40

``` Knowledge skills usually don't include: A. process knowledge B. accounting skills C. communication skills D. global knowledge E. all of the above ```

Answer 40

C

Question 41

Which of the following is not true about systems approach? A. A systems viewpoint is almost always beneficial in decision making. B. A systems approach emphasizes interrelationships among subsystems. C. A systems approach concentrates on efficiency within subsystems. D. A systems approach is essential whenever something is being redesigned or improved. E. All of the above are true.

Answer 41

C

Question 42

``` What is credited with gains in industrial productivity, increased standards of living and affordable products? A. personal computers B. the internet C. mass transportation D. assembly lines E. multi-level marketing ```

Answer 42

D

Question 43

``` Production systems with customized outputs typically have relatively: A. high volumes of output B. low unit costs C. high amount of specialized equipment D. fast work movement E. skilled workers ```

Answer 43

E

Question 44

``` Which is not a significant difference between manufacturing and service operations? A. cost per unit B. uniformity of output C. labor content of jobs D. customer contact E. measurement of productivity ```

Answer 44

A

Question 45

``` Which of the following is not a characteristic of service operations? A. intangible output B. high customer contact C. high labor content D. easy measurement of productivity E. low uniformity of output ```

Answer 45

D

Question 46

Which of the following is a recent trend in business? A. pollution control B. total quality management C. supply chain management D. competition from foreign manufacturers E. technological change

Answer 46

C

Question 47

``` Farming is an example of: A. an obsolete activity B. a virtual organization C. non-manufactured goods D. a growth industry E. customized manufacturing ```

Answer 47

C

Question 48

``` Farming is an example of: A. an obsolete activity B. a virtual organization C. non-manufactured goods D. a growth industry E. customized manufacturing ```

Answer 48

C

Question 49

``` The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the: A. Irwin phenomenon B. Pareto phenomenon C. Stevenson phenomenon D. Tellier phenomenon E. Adam Smith phenomenon ```

Answer 49

B

Question 50

``` The process of comparing outputs to previously established standards to determine if corrective action is needed is called: A. planning B. directing C. controlling D. budgeting E. disciplining ```

Answer 50

C

Question 51

Which of the following does not relate to system design? A. altering the system capacity B. location of facilities C. inventory management D. selection and acquisition of equipment E. physical arrangement of departments

Answer 51

C

Question 52

Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision-makers to consider ______________ in response to the ___________. A. flexibility; pressure to be more efficient B. offshoring; need to promote domestic production C. sustainability; threat of global warming D. technology; impact of random variation E. forecasting; stabilization of demand

Answer 52

C

Question 53

``` Some companies attempt to maximize the revenue they receive from fixed operating capacity by influencing demands through price manipulation. This is an example of __________________: A. Illegal price discrimination B. Collusion C. Volume analysis D. Revenue management E. Outsourcing ```

Answer 53

D

Question 54

ch of the following is not an ongoing trend in manufacturing? A. globalization B. quality improvement C. flexibility and agility D. mass production for greater economies of scale E. technological advances

Answer 54

D

Question 55

Which of the following is not a benefit of using models in decision making? A. They provide a standardized format for analyzing a problem. B. They serve as a consistent tool for evaluation. C. They are easy to use and less expensive than dealing with the actual situation. D. All of the above are benefits. E. None of the above is a benefit.

Answer 55

D

Question 56

``` Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management. A. outsourcing; supply chain B. offshoring; lean C. downsizing; total quality D. optimizing; inventory E. internationalization; intercultural ```

Answer 56

A

Question 57

``` Operations and sales are the two ________ functions in businesses. A. strategic B. tactical C. support D. value-adding E. line ```

Answer 57

E

Question 58

``` Marketing depends on operations for information regarding ___________. A. productivity B. lead time C. cash flow D. budgeting E. corporate intelligence ```

Answer 58

B

Question 59

Two widely used metrics of variation are the __________ and the _________. A. mean; standard deviation B. productivity ratio; correlation C. standardized mean; assignable deviation D. randomized mean; standardized deviation E. normal distribution; random variation

Answer 59

A

Question 60

Which of the following statements about variation is FALSE? A. Variation prevents a production process from being as efficient as it can be. B. Some variation can be prevented. C. Variation can either be assignable or random. D. Any variation makes a production process less productive. E. Random variation generally cannot be influenced by managers.

Answer 60

D

Question 61

``` consider with respect to managing a process to meet demand? A. strategy B. demand forecasts C. capacity D. random variability E. all of the above ```

Answer 61

E