Managing Operations Multiple Choice

In recent years, social scientist have noted a ______ : a) reaction against waste b) greater demand for luxury products than services c) stronger infatuation with material things d) greater demand for luxury experiences than products e) strong consumer need to buy

A

Partially processed or finished goods which are sent between factories over large distances is called ________ inventory. a) pipeline b) cycle c) finsihed goods d) work in progress

A

Place the methods of collecting on delinquent accounts from the most likely lowest to highest cost. a) letters, phone calls, legal action, and personal visits b) phone calls, letters, legal action, and personal visits c) letters, phone calls, personal visits, and legal action d) personal visits, phone calls, letters, and legal action

A

Poor supply chain management practices can _______ an otherwise excellent marketing strategy. a) seriously damage b) make SWOT analysis difficult for c) keep people employed on d) mean quarterly lessons for e) repair

A

The difference between job enrichment and job enlargement is that: a) enlarged jobs contain a larger number of smaller tasks, while enriches jobs included some of the planning and control necessary for job accomplishment b) enriched jobs contain larger number of similar tasks, while enlarged jobs include some of the planning and control necessary for job accomplishment c)these terms mean the same thing d) enriched jobs enable an employee to do a number of boring jobs instead of just one

A

Which of the following is NOT seen as an advantage of empowerment? a) reduced selection and training costs b) employees will interact with customers with more enthusiasm c) faster online responses d) employees feel better about their jobs

A

Which of the following is most responsible for the shrinking number of competitors in almost every major industry? a) acquisition of competitors b) marketing practices that create barriers to entry c) declining materialism and a return to more basic values d) unfair competitive marketing practices e) predatory pricing

A

Which of the following queuing systems appears the most fair to customers? a) first in first out (FIFO) b) serve in random order (SIRO) c) last in first out (LIFO) d) shortest processed first (SPF)

A

Which of the following statements hold true for safety stock? a) the greater the risk of running out of stock, the larger the safety stock needed b) the lower the opportunity cost of the funds invested in inventory, the smaller the safety stock needed c) the greater uncertainty associated with forecasted demand, the lower the level of safety stock needed d) the higher the profit margin per unit, the lower the safety stock necessary

A

Which of the following would not be an operations function in a commercial bank? a) auditing b) teller scheduling c) maintenance d) collection e) check clearing

A

Within a company, ethics and social responsibility require a _________: a) total corporate commitment b) time commitment that most firms do not have c) high- level ethical officer d) separate budget e) future-looking approach

A

Uncontrollable forces that management has no direct control over, include: a. Political b. capital c. Raw materials d. Production

A. Political

A company that produces and heavily markets cigarets, with many promotions aimed at young, nonsmokers, most likely follows which of the following guiding principles? a) the philosophy that companies should have a social conscience b) the philosophy that companies can do in good conscience whatever the market and legal systems allow c) the philosophy of consumer-oriented marketing d) the philosophy of consumerism e) the philosophy of enlightened marketing

B

Critics have charged that the marketing system urges too much interest in ______ : a) entering the global market arena b) meeting quota c) new product invention d) material possessions e) the push strategy

B

Ergonomics involves the following: a) how a person interfaces with environmental conditions b) how a person interfaces with environmental conditions and how the person interfaces with the physical aspect of his/her workplace c) the likely strains and stress on the body caused by continued work on repetitive tasks d) the speed at which a person can process goods or services through their operation

B

In work measurement terms, 'standard performance' is defined as: a) the rate of output that trained workers will achieve as an average over a working day provided they are motivated to apply themselves to their work b) the rate of output that qualified workers will achieve without over-exertion as an average over a working day provided they are motivated to apply themselves to their work c) the rate of output that average workers will achieve without over-exertion as an average over a working day d) the rate of output that qualified workers will achieve as an average over a working day provided they are motivated to apply themselves fully during the whole day

B

Joining a queue and them leaving after some time before being served is called? a) rejecting b) reneging c) balking d) refusing

B

Labor standards are necessary to determine which of the following: a) the steps necessary to perform a task b) cost and time estimates prior to production c) the machines required by the process d) the amount of raw materials to be consumed in the process

B

The core job characteristic that allows the worker to perceive the job as a whole and recognize a start and a finish is: a) autonomy b) job identity c) job significance d) skill variety

B

The interaction between the customer and the service provider is often referred to as: a) the service operation b) the service encounter c) the servicescape d) the back office operation

B

What are the main characteristics of an effective control system? a) flexibility, accuracy, timeliness and objectivity b) flexibility, measurability, timelines and objectivity c) flexibility, accuracy, relevance and objectivity d) flexibility, accuracy, timelines and relevance

B

When a manager monitors the work performance of workers in his department to determine if the quality of their work is up to standard, this manager is engaging in which function? a) planning b) controlling c) organizing d) leading

B

When critics claim that insurance, real estate, and used cars are sold, not bought, they are making accusations of the use of _____: a) excessive markups b) high-pressure selling c) deceptive promotions d) shoddy products e) excessive materialism

B

Which of the following is not a strategic operations management decision? a) maintenance b) price c) layout design d) quality e) inventory

B

___________ means listening to the customer so goods and services meet customer needs at a low cost. It means improving design and processes to reduce defects and costs. a) a committed and involved management b) focus on the customer c) involvement of the total workforce d) continuous process improvement

B

A supply chain is essentially a sequence of linked: a) customer and product b) supplier and manufacturer c) suppliers and customers d) warehousing and wholesaling units e) events in the marketing process

C

An organizations supply chain can be viewed from a systems perspective that starts with the acquisition of resources which are then transformed into products or services. Simply put, the sequence is represented: a) process-inputs-outputs b) inputs- outputs- process c) Inputs- process- outputs d) sourcing- input- process- outputs

C

Goods in transit can be tracked using RFID technology, what does RFID stand for? a) Remote file identification b) resource frequency identification c) radio frequency identification d) radar frequency identification

C

Joining a queue and then almost immediately leaving the customer thinks it will take too line to disperse is called? a) rejecting b) reneging c) balking d) refusing

C

Minimizing pollution from production and all environmental impacts throughout the full product life cycle is called______: a) green marketing b) pollution prevention c) product stewardship d) environmental sustainability e) design for environment (DFE)

C

Normal time is: a) the arithmetic mean of the times for each element measured, adjusted for unusual influence for each element b) the time that workers never exceed when performing the task c) the observed time adjusted for pace d) the tim after adjusting for allowances for personal needs, unavoidable delays, and fatigue

C

Products which are completed awaiting dispatch to a customer are called _________ inventory. a) pipeline b) cycle c) finsihed goods d) work in progress

C

Scientific management is comprised of which of the following two elements? a) method study and job design b) work measurement and job design c) method study and work measurement d) technology assessment and environmental design

C

The best strategy of minimizing the amount of safety inventory to be kept in a store without hurting the level of customer service is: a) minimizing the uncertainty inherent in demand b) reducing the supply lead time c) minimizing the uncertainty inherent in supply d) minimizing the cycle service level

C

The process of allocating a larger number of tasks to individuals is called: a) job empowerment b) job rotation c) job enlargement d) job enrichment

C

The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as: a) continuous improvement b)employee empowerment c) benchmarking d) copycatting e) patent infringement

C

What are the main decisions in job design? a) the degree of empowerment to be given to the individual or the team b) to make the work as interesting as possible to ensure staff are motivated and retained c) the allocation, sequencing, location, the interaction with people and environment and the autonomy to be given d) to ensure the work is conducted as efficiently as possible

C

What is a global network of organizations and activities that supply a firm with goods and services? a) supplier tree b) provider network c) supply chain d) vendor network e) vendor tree

C

What s the weakest form of control? a) pre- control b) simultaneous control c) post control d) duel control

C

Which of the determinate of service quality involves having the customers best interests at heart? a) access b) courtesy c) credibility d) responsiveness

C

Which of the following is one of the 10 strategic operations management decisions? a) depreciation policy for tax returns b) advertising c) process and capacity design d) pricing e) debt/equity ratio

C

Which of the following is one of the usual responses in the psychology of waiting lines? a) unoccupied waiting time feels shorter than occupied time b) anxiety makes waiting times feel shorter c) unexplained waits seem longer than explained waits d) solo waiting feels shorter than group waiting

C

Which of these operations are customers often happy to queue for? a) Bank atm b) supermarket checkout c) restaurant d) airport checkin

C

Which of these reasons to keep inventory will improve flexibility? a) it allows processes to flow more smoothly b) it makes deliveries more reliable c) it helps to deal with short term demands d) it enable the best material to be sorted prior to production

C

Which one of the following is not a key activity of a operations manager? a. understanding the needs of customer b. continually learning c. managing cash flows d. exploiting technology to produce goods and services

C. Managing cash flows

A successful TQM program incorporates all of the following except: a) continuous improvement b) employee involvement c) benchmarking d) centralized decision-making authority

D

A supply chain is a sequence of firms that perform activities required: a) to find products that are similar b) to facilitate wholesalers inventory selections c) to create synergy in their training programs d) to create and deliver goods to consumers e) to support acquisitions of raw materials

D

Consumer advocates call for all of the following additional consumer rights except which one? a) the right to influence products in ways that will improve the quality of life b) the right to be protected against questionable products and marketing practices c) the right to influence marketing practices in ways that will improve the quality of life d) the right to be protected from unwanted marketing messages e) the right to be well informed about important product aspects

D

Customers want supplier to have all of the following except: a) high quality level b) High flexibility to change c) high service level d) high variability in meeting targets

D

Ergonomics is the study of: a) the management of technology b) ergos c) the use of automation in a manufacturing organization d) work

D

Inventory is _______: a) a raw material item used in an operation b) an item stored for later use in an operation c) an item in transit for later use in an operation d) any of the above

D

Job rotation: a) involves giving employees work with a greater degree of responsibility and autonomy b) involves allocating a wider range of similar tasks to individuals c) is a program through which management seeks greater productivity from workers d) means that staff are moved periodically from task to task in order to increase variety and interest e) is another term for employee empowerment

D

Key to re-structuring the supply chain is the need to examine the types of relationships between partners such as suppliers and distributors. Researchers have found that low cost is the main driver in managing supply partnerships and a restructuring will often require companies to: a) develop strong partnership relationships b) reduce their number of suppliers c) focus on core competencies d) all of the above

D

Many companies have reported benefits from autonomous work teams. These teams are best described as: a) a team of people who do not have to report to anyone b) a team of people who undertake the whole end-to-end manufacturing process c) a team of people put together for a one-off project d) staff with overlapping skills, who collectively perform, and have a high degree of discretion over how they perform a task

D

Operations management is applicable: a) mostly to the service sector b) to services exclusively c) mostly to the manufacturing sector d) to all firms, whether manufacturing or service e) to the manufacturing sector exclusively

D

The most important dimensions of performance are: a) reliability and durability b) durability and maintainability c) reliability and maintainability d) reliability, durability, and maintainability

D

The organization of customers for processing through a series of services encounter is called a: a) payment system b) planning system c) processing system d) queuing system

D

The phenomenon of both management and employees striving to meet common objectives is called: a) mutual trust b) unconstrained strategy c) labor planning d) mutual commitment

D

The reasons for work measurement standards include: a) to schedule work and allocate capacity b) to provide benchmark for improvement c) to provide subjective basis for motivating the workforce and measuring their performance d) A and B e) A and C f) A, B and C

D

The reward/ incentive plan that allows management to target specific output goals is: a) merit pay b) profit sharing c) pay for knowledge d) piece rate e) gain sharing

D

What is the first step in a control process? a) allocate resources b) choose key personnel for the task c) select a strategy d) set standards

D

Which of the determinate or service quality involves performing the service right the first time? a) access b)credibility c) reliability d) responsiveness

D

Which of the following are the primary functions of all organizations? a) production/operations, marketing, and human resources b) marketing, human resources, and finance/accounting c) sales, quality control, and production/operations d) marketing, production/operations, and finance/accounting e) research and development, finance/accounting, and purchasing

D

Which of the following is not an element of the management process? a) controlling b) leading c) planning d) pricing e) staffing

D

Which of the following is not one of the four main types of inventory? a) raw material inventory b) work in process inventory c) maintenance/ repair/ operating supply inventory d) to minimize holding costs e) to hedge against inflation

D

Which of the following statements is correct regarding inventory if there were an inventory outage? a) customers of out firm will likely be irritated if their purchases are late or delayed because an inventory shortage slows production at our firm b) the firm will possibly need to layoff workers temporarily if there is an inventory shortage c) the firm will likely lose sales today via cancelled orders or future sales because of past customer experiences if customers do not receive their order as expected and agreed upon d) all of the above answers are

D

Which of the following would not generally be a motive for a firm to hold inventories? a) to decouple various parts of the production process b) to provide a selection of goods for anticipates customer demand and to separate the firm from fluctuations in that demand c) to take advantage of quantity discounts d) to minimize holding costs e) to hedge against inflation

D

_______ represents one quantitative approach that has been developed to estimate the ability of businesses (and individuals) to service credit guaranteed to them. a) ABC method b) A JIT system c) An MRP system d) A credit scoring system

D

which of the following are key components of a TQM system? a) individual responsibility, incremental improvement, use of raw data b) collective responsibility, continual improvement, use of raw data c) group responsibility, staged improvement, knowledge d) involves everyone, continual improvement, use of data and knowledge

D

which of these reasons to keep inventory can lead to improved quality? a) it allows processes to flow more smoothly b) it makes deliveries more reliable c) it helps to deal with short term demands d) it enables the best material to be sorted prior to production

D

A service encounter includes: a. face to face interaction b. customers and a building c. customers and advertising d.All of the above

D. all of the above

At Hard Rock Cafe, tasks that reflect operations or operations management include: a) designing efficient layouts b) providing meals c) receiving ingredients d) preparing effective employee schedules e) all of the above

E

Critics charge that intermediaries ______ : a) underprice their services b) are too competitive c) provide only necessary services d) are too few in number e) are inefficient

E

Critics claim that companies in the _____ industries introduce planned streams of new products that make older models obsolete, a form of planned obsolescence that harms consumers. a) food and beverage b) financial and entertainment c) housing and construction d) car and truck e) consumer electronics and computer

E

Techniques for building employee empowerment include: a) building communication networks that include employees b)developing open, supportive supervisors c) moving responsibility from both managers and staff to production employees d) building high morale organizations e) all of the above are techniques for employee empowerment

E

The field of operations management is shaped by advances in which of the following fields? a) chemical and physics b) industrial and management science c) biology and anatomy d) information technology e) all of the above

E

The physical characteristics of a product will often dictate what: a) types of sale can be made b) forms of sales promotion to be used c) types of instructions needed d) geographic regions will be included e) kinds of transportation can be used

E

What do most companies today focus on when it comes to protecting the environment? a) investing heavily in environmental technology b) practicing product stewardship c) developing a sustainable vision d) biodegradability e) investing heavily in pollution prevention

E

Which of the following influences layout design? a) inventory requirements b) capacity needs c) personnel levels d) technology e) all of the above influence layout decisions

E

Which of the following is an advantage of specialization of labor for labor? a) boredom b) frustration and fatigue due to limited or no control c) little opportunity to progress d) little gratification from work itself e) little difficultly in learning job

E

_____ is a management approach that involves developing strategies that both sustain the environment and produce profits for the company. a) consumerism b) social responsibility c) ethical decision making d) environmentalism e) environmental sustainability

E

The trends affecting job design decisions include: a) quality control as a part of workers job b) cross training workers c) extensive use of temporary workers d) Automation of heavy manual work e) A,B, and D f) All of the above

F

Benchmarking requires the comparison of your firm to other organization; it is not appropriate to benchmark by comparing one of your divisions to another of your divisions. True or False

False

Job enrichment is achieved by allocating a large number of tasks to individuals. True or False

False

Managers at Arnold Palmer Hospital take quality so seriously that the hospital typically is a national leader in several quality areas- so that continuous improvement is no longer necessary. True or false

False

Continuous improvement is based on the philosophy that any aspect of an organization can be improved. True or false

True

Which of the following would not be an operations management activity in a fast-food restaurant? a. advertising new salad dishes b. purchasing tomatoes c. planning the layout of the serving areas d. cooking hamburgers and fries

a. Advertising new salad dishes

Which one of the following is not true regarding the differences between goods and services? a. demand for services is easier to forecast b. customers participate in many services c. services cannot be stored as physical inventory d. patents do not protect services

a. Demand for services is easier to forecast

"Quality is defined by the customer" is: a) an unrealistic definition of quality b)a user based definition of quality c) a manufacturing-based definition of quality d) a product based definition of quality

b

Which of the following is generally related to service operations? a. Tangible Product b. Need for flexible capacity c. Seperation of production from consumption d. large amount of inventory

b. Need for flexible capacity -Consider elements like how much staff/product is needed on a weekend vs weekday

A company's mission statement: a. is changed quite frequently b.helps identify its target customers and competitors c. describes in specific terms what the company expects to accomplish d. occurs after strategy development

b. helps identify its target customers and competitors

The _____ of a firm defines its reasons for existence: a. strategy development b.strategic mission c. vision statement d.value and code of ethics

b. strategic mission

Operations management divides decisions into 3 broad categories. They are: a. strategic, operational, and financial b.Personnel, financial, and operational c. Strategic, tactical and operational planning and control d.planning, tactical and control e. planning, organizing and financial

c. Strategic, tactical and operational planning and control

To achieve quality, organizations must consider: a) product policy b) product design and manufacturing c)final use of the product d) all of the above

d

Which of the following statements regarding Arnold Palmer Hospital is false? a)the hospital uses a wide range of quality management techniques b) the culture of quality at the hospital includes employees at all levels c)the hospital scores very highly in national studies of patient satisfaction d) the hospital's high quality is measured by low readmission rates, not patient satisfaction. e) the design of patient rooms, even wall colors, reflects the hospital's culture of quality.

d

The Key factor in Richard Bransons Virgin global success lies in: a. adopting a private label branding option b. developing local brands c. taking advantage of global resourcing d. constantly extending the brand

d.Constantly extending the brand

Which of the following is becoming the newest competitive advantage? a. service b.delivery c. cost d.Quality e. Environmental friendliness

e. Environmental friendliness

An improvement in quality must necessarily increase costs. True or False

false

Quality is mostly the business of the quality control staff, not ordinary employees. True or False

false