Chapter 1

Question 1

Define operations management

Answer 1

activities that relate to the creation of goods and services through the transformation of inputs to outputs

Question 2

define supply chain

Answer 2

a global network of organizations and activities that supplies a firm with goods and services

Question 3

What are the 10 Strategic OM Decisions?

Answer 3

Design of goods and services
Managing quality
Process Strategy
Location strategies
Layout strategies
Human Resources
Supply-chain management
inventory management
scheduling
maintenance

Question 4

Define services

Answer 4

Economic activities that typically produce an intangible product (such as education, entertainment, lodging, government, financial, and health services).

Question 5

Define service sector

Answer 5

the segment of the economy that includes trade, financial, lodging, education, legal, medical, and other professional occupations.

Question 6

Define productivity

Answer 6

The ratio of outputs (goods and services) divided by one or more inputs (such as labor, capital, or management)

Question 7

Define single-factor productivity

Answer 7

Indicates the ratio of one resource (input) to the goods and services produced (outputs).

Question 8

Define multifactor productivity

Answer 8

Indicates the ratio of many or all resources (inputs) to the goods and services products (outputs)

Question 9

Define productivity variables

Answer 9

the three factors critical to productivity improvement - labor, capital, and the art and science of management

Question 10

define knowledge society

Answer 10

a society in which much of the labor force has migrated from manual work to work based on knowledge

Question 11

define stakeholders

Answer 11

those with a vested interest in an organization, including customers, distributors, suppliers, owners, lenders, employees, and community members.

Question 12

F.W. Taylor believed that:

Answer 12

scientific laws governed how much work a person could do each day

Question 13

Higher productivity derived from efficient operations leads to:

Answer 13

Lower cost goods and services

Question 14

Which of the following is NOT an OM strategic issue?

Answer 14

Should we have finished goods inventory?

Question 15

Operations managers hep to provide workers with improved working conditions by:

Answer 15

Improving the ergonomic design of jobs functions

Question 16

Which of the following individuals made contributions to the field of OM by shedding new light on worker motivation?

Answer 16

Elton Mayo

Question 17

Which of the following individuals made contributions to the OM field by developing time & motion study?

Answer 17

Frank Gilbreth

Question 18

Who developed the use of motion study in improving operations?

Answer 18

Frank Gilbreth

Question 19

Which of the following is NOT an OM operations planning and control issue?

Answer 19

How much capacity do we need?

Question 20

Who developed the use of standardization in large scale mass production using a moving assembly line?

Answer 20

Henry Ford

Question 21

Frederick W. Taylor was responsible for the development of:

Answer 21

principles of scientific management

Question 22

Higher quality products are commonly associated with:

Answer 22

six-sigma quality standards

Question 23

Which of the following is NOT an OM tactical issue?

Answer 23

Where do we locate the facility or facilities?

Question 24

The operations management transformation process in a manufacturing firm is primarily which of the following?

Answer 24

physical

Question 25

Frederick Taylor believed that:

Answer 25

the scientific method applied to work as well as science

Question 26

Operations management is the business function that plans, coordinates, and controls the resources needed to produce a company’s:

Answer 26

products and services

Question 27

Which of the following is consistent with contemporary operations management?

Answer 27

replanting of forest land to reduce erosion

Question 28

In a retail store, the transformation process is a change of personnel, products and money into satisfied purchasers.

Answer 28

Exchange

Question 29

Define production

Answer 29

The creation of goods and services

Question 30

Who was instrumental in shedding new light on psychological needs of workers and their motivations?

Answer 30

Elton Mayo

Question 31

Largely due to the globalization of economies and the growth of e-commerce, the balance of power has shifted from

Answer 31

Producers to consumers

Question 32

Contemporary operations managers would NOT define quality in terms of

Answer 32

Profits

Question 33

Who was greatly responsible for the scientific management movement since the turn of the century?

Answer 33

Frederick Winslow Taylor

Question 34

Who was heavily involved in industrial psychology?

Answer 34

Lillian Gilbreth

Question 35

Which of the following is not associated with the work of Taylor?

Answer 35

The hierarchical needs of labor

Question 36

Which of the following is NOT an example of the shift of power from producers to consumers?

Answer 36

Less emphasis in reducing labor and material costs

Question 37

All organizations perform three functions to create goods and services:

Answer 37

Marketing, Production/operations, and Finance/accounting

Question 38

We study OM for four reasons:

Answer 38

1. To learn how people organize themselves for productive enterprise.
2. To learn how goods and services are produced.
3. To understand what operations managers do.
4. Because OM is a costly part of an organization.

Question 39

Productivity increases when:

Answer 39

inputs decrease while outputs remain the same

Question 40

Services often:

Answer 40

are knowledge based.

Question 41

Productivity:

Answer 41

is dependent upon labor, management, and capital.

Question 42

Single-factor productivity:

Answer 42

usually uses labor as a factor.

Question 43

Multifactor productivity

Answer 43

usually uses substitutes as common variables for the factors of production

Question 44

Productivity increases each year in the U.S. are a result of three factors:

Answer 44

Labor
capital
management