Chapter 1

A cleaning company uses $10 of chemicals, $40 of labor, and $5 of misc. expenses for each house it cleans. After some quality complaints, the company has decided to increase its use of chemicals by 50%. By what percentage has multifactor productivity fallen? 0% 8.3% 25% 50% 16.7%

8.3%

The service sector makes up approximately what percentage of all jobs in the United States? 12% 40% 66% 86% 94%

86%

The "Father of Scientific Management" is: Henry Ford. Frederick W. Taylor. W. Edwards Deming. Frank Gilbreth. just a figure of speech, not a reference to a person.

Frederick W. Taylor.

Which of the following are among the 10 strategic operations management decisions? I. design of goods and service II. managing quality III. layout strategy IV. marketing V. pricing of goods and services

I, II, III

A foundry produces circular utility access hatches (manhole covers). If 120 covers are produced in a 10-hour shift, the productivity of the line is: 1.2 covers/hr. 2 covers/hr. 12 covers/hr. 1200 covers/hr. 120 covers/hr.

12 covers/hr.

A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it would then be: 14.4 covers/hr. 24 covers/hr. 240 covers/hr. 1200 covers/hr. 10 covers/hr.

14.4 covers/hr.

Walter Shewhart, in the ________, provided the foundations for ________ in operations management. 1920s; statistical sampling United Kingdom; mass production U.S. Army; logistics nineteenth century; interchangeable parts 1900s; queuing theory

1920s; statistical sampling

Illiteracy and poor diets have been known to cost countries up to what percent of their productivity? 2% 5% 10% 20% 50%

20%

A cleaning company uses 10 lbs each of chemicals A, B and C for each house it cleans. After some quality complaints, the company has decided to increase its use of chemical A by an additional 10 lbs for each house. By what % has productivity (houses per pound of chemical) fallen? 0% 10% 15% 25% 33%

25%

Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labor productivity will increase by: 10%. 20%. 25%. 40%. 50%.

25%

The Dulac Box plant works two 8-hour shifts each day. In the past, 500 cypress packing boxes were produced by the end of each day. The use of new technology has enabled them to increase productivity by 30%. Productivity is now approximately: 32.5 boxes/hr. 40.6 boxes/hr. 62.5 boxes/hr. 81.25 boxes/hr. 300 boxes/hr.

40.6 boxes/hr.

Productivity tends to be more difficult to improve in the service sector because the work is: often difficult to automate. typically labor-intensive. frequently processed individually. often an intellectual task performed by professionals. All of these make service productivity more difficult.

All of these make service productivity more difficult.

Which of the following is a similarity between goods and services? mass production consistency automation Both have quality standards. Both can usually be kept in inventory.

Both have quality standards.

The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to productivity? It has not changed. It has increased by 37.5 boxes/hr. It has increased by 20%. It has decreased by 8.3%. It has decreased by 9.1%.

It has not changed.

Which of the following is NOT true when explaining why productivity tends to be lower in the service sector than in the manufacturing sector? Services are typically labor-intensive. Services are often difficult to evaluate for quality. Services are often an intellectual task performed by professionals. Services are difficult to automate. Service operations are typically capital intensive.

Service operations are typically capital intensive.

Which of the following statements about challenges in operations management is FALSE? Job specialization is giving way to empowered employees. Local or national focus is giving way to global focus. Sustainable production is giving way to a low-cost focus. Rapid product development is partly the result of shorter product cycles. The goal of mass customization is to produce customized products, whenever and wherever needed.

Sustainable production is giving way to a low-cost focus.

Which is NOT true regarding differences between goods and services? Tangible goods are generally produced and consumed simultaneously; services are not. Most goods are common to many customers; services are often unique to the final customer. Services tend to have a more inconsistent product definition than goods. Services tend to have higher customer interaction than goods. None, i.e., all of these are true.

Tangible goods are generally produced and consumed simultaneously; services are not.

Which of the following statements is TRUE? The person most responsible for initiating the use of interchangeable parts in manufacturing was Eli Whitney. The origins of management by exception are generally credited to Frederick W. Taylor. The person most responsible for initiating the use of interchangeable parts in manufacturing was Walter Shewhart. The origins of the scientific management movement are generally credited to Henry Ford. The person most responsible for initiating the use of interchangeable parts in manufacturing was Henry Ford.

The person most responsible for initiating the use of interchangeable parts in manufacturing was Eli Whitney.

Who among the following is associated with contributions to quality control in operations management? Charles Babbage Henry Ford Frank Gilbreth W. Edwards Deming Henri Fayol

W. Edwards Deming

Henry Ford is noted for his contributions to: material requirements planning. statistical quality control. assembly line operations. scientific management. time and motion studies.

assembly line operations.

A small metal shop operates 10 hours each day, producing 100 parts/hour. If productivity were increased 20%, how many hours would the plant have to work to produce 1000 parts? less than 2 hours between 9 and 10 hours between 2 and 6 hours between 6 and 8 hours between 8 and 9 hours

between 8 and 9 hours

Which of the following is the best example of a pure service? counseling oil change heart transplant electric Co-Op restaurant

counseling

All of the following decisions fall within the scope of operations management EXCEPT for: creating the company income statement. design of goods and services. location strategy. managing quality. human resources and job design.

creating the company income statement.

Which of the following tasks within an airline company are related to operations? crew scheduling international monetary exchange sales advertising accounts payable

crew scheduling

Which of the following is NOT a typical service attribute? intangible product easy to store customer interaction is high simultaneous production and consumption difficult to resell

easy to store

The marketing function's main concern is with: producing goods or providing services. procuring materials, supplies, and equipment. building and maintaining a positive image. Correct generating the demand for the organization's products or services. securing monetary resources.

generating the demand for the organization's products or services. securing monetary resources.

Which of the following is NOT among the ethical and social challenges facing operations managers? honoring stakeholder commitments training, retaining, and motivating employees efficiently developing and producing safe high-quality green products increasing executive pay providing a safe workplace

increasing executive pay

Which of the following fosters specialization and worldwide supply chains? more expensive transportation instant communication economies of scope managers with a broad knowledge of many things high trade tariffs

instant communication

The largest contributor to productivity increases is ________, estimated to be responsible for ________ of the annual increase. management; over one-half Mr. Deming; one-half labor; two-thirds capital; 90% technology; over one-half

management; over one-half

Which of the following is NOT one of the 10 strategic operations management decisions? layout strategy maintenance process and capacity design mass customization supply chain management

mass customization

The total of all outputs produced by the transformation process divided by the total of the inputs is: utilization. greater in manufacturing than in services. defined only for manufacturing firms. multifactor productivity. single-factor productivity

multifactor productivity.

Eli Whitney, in the ________, provided the foundations for ________ in operations management. 1920s; statistical sampling United Kingdom; mass production U.S. Army; logistics nineteenth century; interchangeable parts 1890s; queuing theory

nineteenth century; interchangeable parts

An operations task performed at Hard Rock Café is: borrowing funds to build a new restaurant. advertising changes in the restaurant menu. calculating restaurant profit and loss. preparing employee schedules. All of these.

preparing employee schedules.

Which of the following attributes is most typical of a service? production and consumption occur simultaneously tangible mass production consistency easy to automate

production and consumption occur simultaneously

What term is given to those individuals with a vested interest in an organization, including customers, distributors, suppliers, owners, lenders, employees, and community members? alumni investors vestors stockholders stakeholders

stakeholders

Walter Shewhart is listed among the important people of operations management because of his contributions to: assembly line production. measuring productivity in the service sector. just-in-time inventory methods. statistical quality control. information technology.

statistical quality control.

Reasons to study operations management include: studying how people organize themselves for productive enterprise. knowing how goods and services are consumed. understanding what human resource managers do. learning about a costly part of the enterprise. studying how people organize themselves for productive enterprise and learning about a costly part of the enterprise

studying how people organize themselves for productive enterprise and learning about a costly part of the enterprise

What is a global network of organizations and activities that supply a firm with goods and services? supply tree provider network supply chain vendor network vendor tree

supply chain

Productivity measurement is complicated by: the competition's output. the fact that precise units of measure are often unavailable. stable quality. the workforce size. the type of equipment used.

the fact that precise units of measure are often unavailable.

Operations management is applicable: mostly to the service sector. to services exclusively. mostly to the manufacturing sector. to all firms, whether manufacturing or service. to the manufacturing sector exclusively.

to all firms, whether manufacturing or service.