Lesson 1- Introduction to OM

Question 1

The three primary functions that exist in most business organizations are?

Answer 1

operations, marketing and finance

Question 2

Which of the following is not a type of service operation?

Answer 2

Fabrication of metals

Question 3

Value added refers to?

Answer 3

the difference between cost of inputs and the value or price of outputs

Question 4

Planning decisions are usually:

Answer 4

tactical and medium term

Question 5

The marketing functions main focus is with:

Answer 5

Assessing the customer wants and needs

Question 6

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

Answer 6

cost per unit

Question 7

Operating at minimum cost and time is referred to as:

Answer 7

efficiency

Question 8

Which of the following functions is mostly service based, as identified in the “goods service” continuum:

Answer 8

teaching

Question 9

A balanced achieved between two incompatible features is referred to as

Answer 9

Trade-off

Question 10

Operating managers are responsible for managing activities and resources that produce good and/or provide services? T or F?

Answer 10

True

Question 11

Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing cost and time?

Answer 11

True

Question 12

The operations function exists only in firms that are goods-oriented:

Answer 12

False

Question 13

Value-added refers to the cost of the inputs required to produce goods and services

Answer 13

False

Question 14

Operations management involves both system design and planning/control?

Answer 14

True

Question 15

Design decisions are usually strategic and long term, while planning decisions are tactical and medium term?

Answer 15

True

Question 16

A basic difference between manufacturing and service organizations is that services are action-oriented and manufacturing is goods-oriented?

Answer 16

True

Question 17

Managing inventory levels is considered a planning/control operations decision area

Answer 17

True

Question 18

Service often requires a higher labour content whereas the production of goods is more capital intensive

Answer 18

True

Question 19

Many operations management decisions can be describes as trade offs?

Answer 19

True

Question 20

A characteristic that was once an order winner may become an order qualifier and vise versa?

Answer 20

True

Question 21

Order qualifiers are those characteristics of an organizations goods or services that cause them to be perceived as better than competitors?

Answer 21

False

Question 22

It is important that an organization has a clear and simple mission/value/values statement?

Answer 22

True

Question 23

The purchasing criteria of quality and timelines s of delivery are order winners for all companies

Answer 23

False

Question 24

A mission statement should provide a guide for the formulation of strategies for the organization

Answer 24

True

Question 25

Strategic planning includes both determining long-term plans and implementing them through allocation of resources and action plans

Answer 25

True

Question 26

Organization strategy must be determined without considering the realities of function area strengths and weaknesses

Answer 26

False

Question 27

Formulating an operations strategy requires focusing solely on the operations function, leaving the concerns of other functions and the status of external markets to broader organizational strategic planning.

Answer 27

False

Question 28

Productivity is defined as the ratio of output to input?

Answer 28

True

Question 29

Time -based strategies focus on reducing time required to accomplish certain activities such as new product development or deliver to the customer?

Answer 29

True

Question 30

Productivity is related to competitiveness

Answer 30

True

Question 31

Even though labour costs as a proportion of total cost has been decreasing in manufacturing companies, labour productivity is still the main measure being used to gauge the performance of individuals and plants?

Answer 31

True

Question 32

Variability of the output of services makes it more difficult to measure service productivity

Answer 32

True

Question 33

Characteristics that customers perceive as minimum standards of acceptability are called

Answer 33

order qualifiers

Question 34

product variety is an example of:

Answer 34

A key purchasing area

Question 35

Which of the following is NOT a key purchasing criterion?

Answer 35

Vendor relations

Question 36

Which of the following is not a step for formulating an OS?

Answer 36

Define the vision and mission of company

Question 37

Productivity is calculated as:

Answer 37

output/input

Question 38

Which of the following is a set of well coordinated policies, objectives, action plans, directly affecting the operations function which is aimed at securing a long-term sustainable advantage over competition?

Answer 38

operations strategy

Question 39

In an assembly operation at a furniture factory, 6 employees assembled an average of 450 standard dining chairs per 5 day workweek. What is the labour productivity per work/day of this operation?

Answer 39

15 chairs/worker/day

Question 40

Which of the following is not a factor that affect productivity?

Answer 40

analysis of competitors

Question 41

What statement determines where the organizations desires to be in the future?

Answer 41

vision statement