mgmt exam 2 practice

A fire broke out in a well-reputed hospital in a city. Despite the fire fighters arriving within ten minutes of the occurrence, over a hundred people were severely injured. This was due to insufficient equipment necessary to evacuate people during an emergency. This was clearly a case of the hospital management's faulty _____. a. contingency planning b. strategic planning c. operational planning d. tactical planning

A

Boeing sent change management consultants to a newly acquired company to learn how that company managed change in the past. This is an example of a. benchmarking. b. conformance sampling. c. acceptance sampling. d. in-process sampling. e. outsourcing.

A

GE competes in industries ranging from medical devices to appliances to television networks. GE's mixed strategy is an example of ____ strategy. a. corporate-level b. long-term c. business-level d. functional e. short-term

A

In environmental SWOT analysis, the external organizational position is analyzed according to its a. opportunities and threats. b. opportunities and weaknesses. c. strengths and threats. d. strengths and weaknesses. e. return on investment.

A

In the short-term people may lose their jobs, but in the long-term jobs are generally created by a. automation. b. flexible manufacturing. c. CAD. d. CAM. e. CIM.

A

Just-in- time systems are a means of improving the management of a. raw materials and component parts. b. in-process inventories. c. finished-goods inventories. d. in-transit inventories. e. maintenance, repair, and office inventories.

A

Krispy Kreme has a distribution network that allows fresh doughnuts to be transported to convenience stores, supermarkets, and Krispy Kreme outlets before dawn so that consumers can enjoy them that same day. This is an example of a(n) ____ for the Krispy Kreme organization. a. organizational strength b. scope extension strategy c. defender strategy d. distinctive strategy e. competitive disadvantage

A

Strategy formulation is a. a set of processes involving the organization's strategies. b. the method by which strategies are operationalized. c. the same as goal development. d. also called corporate-level strategy. e. a form of functional strategy.

A

Super Fresh grocery stores have self check-out lanes. Now one bagger can service four lanes instead of four cashiers servicing four lanes. This use of revamping allows Super Fresh to a. improve its productivity. b. decrease fixed costs. c. decrease its dependence on its website. d. increase customer affective responses. e. None of these choices

A

The Yankee Candle Company makes candles. Which type of layout would you expect to find in the manufacturing plant that makes candles? a. Product b. Fixed-position c. Specialized d. Functional e. Process

A

Two broad methods by which organizations can improve productivity are a. improving operations and increasing employee involvement. b. just-in- time inventory systems and automation. c. centralization and improving operations. d. automation and management by objectives. e. management by exception and employee involvement.

A

A manufacturer of golf clubs manufactures woods, irons, and putters using similar techniques but each in their own family of product, flow path configuration. This is an example of a ____ layout. a. product b. fixed-position c. cellular d. functional e. process

C

When General Mills looked for ideas on how to reduce the time it took to convert its production lines from one cereal to another, it sent a team to observe the pit crews at the Indianapolis 500. As a result of using ____, General Mills cut its plant changeover time by more than 50 percent. a. benchmarking b. conformance sampling c. acceptance sampling d. in-process sampling e. outsourcing

A

Which of the following factors is NOT a consideration when determining the capacity utilization required in an operations system? a. Technology b. Demand c. Variation in demand d. Required flexibility e. Conversion capacity

A

Which of the following is NOT one of the units of analysis used to calculate productivity by level? a. Total factor b. Industry c. Unit d. Individual e. Aggregate

A

Which of the following is a similarity between rules and regulations and standard operating procedures (SOPs)? a. Both are relatively narrow in scope. b. Both focus on a large set of activities. c. Both are single-use plans. d. Both specify responses to nonrecurring situations.

A

Which of the following is true of a standard operating procedure? a. It outlines the steps to be followed in particular circumstances. b. It is a single-use plan for a large set of activities. c. It specifies an organization's general response to a designated problem. d. It is developed to carry out a course of action that is not likely to be repeated.

A

Which of the following statements about the effects of automation on employees is TRUE? a. In the long run, automation will create more jobs than are lost because of it. b. The majority of the workers will lose their jobs when automation is used. c. More employees will be needed immediately after automation is implemented, but eventually the number required will decrease. d. There is no way to judge before implementation how many workers will be needed. e. Many of the workers now performing the jobs will be unable to perform the new automated jobs and will therefore be fired.

A

Which of the following statements about the relationship between operations management and utility is TRUE? a. All operations management provides utility of one type or another. b. Only operations management in the manufacturing sector can truly be said to provide utility. c. Only operations management in the service sector provides utility because it is where product and consumer meet. d. Operations management creates the same kind of utility regardless of the sector of the economy involved. e. There is no demonstrable relationship between operations management and utility.

A

____ is a comprehensive, organization-wide strategy for improving product and/or service quality on a systematic and continuous basis. a. Total quality management b. Statistical quality control c. Benchmarking d. Total factor productivity e. Synergistic effectiveness

A

____ is the process of managing operations control, resource acquisition and purchasing, and inventory to thus improve overall efficiency and effectiveness. a. Supply-chain management b. Resource management c. Inventory management d. Quality control e. Productivity control

A

_____ goals are goals set by and for an organization's top management. a. Strategic b. Operational c. Short-range d. Tactical

A

_____ is essentially the first step in planning. a. Understanding the environment b. Developing marketing strategies c. Distributing authority among jobs d. Evaluating employee satisfaction

A

***One of the major tasks for movies like The Chronicles of Narnia is to create costumes for various species that reflect the mythical persona and that can be worn by humans for lengthy periods of time. ____ could be used to speed up the development process. a. Robotics b. Computer-aided design c. Computer-integrated manufacturing d. Computer-aided manufacturing e. Flexible manufacturing systems

B

A product layout MOST likely would be found in organizations a. using small-batch technology. b. using large-batch (mass production) technology. c. using continuous flow (process) technology. d. producing custom-made products. e. in the service sector.

B

A(n) ____ strategy is a plan chosen and implemented to support specific goals, such as an increase of market share by 5 percent. a. valid b. deliberate c. reliable d. emergent e. synergistic

B

According to the text, the major problem associated with total factor productivity is that a. the data are too hard to obtain. b. all ingredients must be expressed in the same terms. c. it does not tell the manager what to do to correct a problem. d. it is not compatible with standard accounting procedures. e. it is nothing more than a cost-benefit analysis.

B

Hagerty makes silver flatware. Which type of layout would you expect to find in a manufacturing plant that makes silverware? a. Product layout b. Cellular layout c. Specialized layout d. Functional layout e. Process layout

B

Heather's boss has just given her the responsibility of developing a new line of protective gear for kayakers. However, he warned her that the time available for development is not as long as she would probably like. What should Heather use to speed up the development process? a. Robotics b. Computer-aided design c. Computer-integrated manufacturing d. Computer-aided manufacturing e. Flexible manufacturing systems

B

In a small community in Michigan, there are two funeral homes. One of them clips all pictures from the local paper, laminates them, and mails them to the person photographed with a brief note. This is an attempt to build positive relations with potential customers during happy times. If the other funeral home chose to make similar customer contact, the competitors would have a. differential advantage. b. strategic imitation. c. emergent strategy. d. distinctive competence. e. competitive advantage.

B

In the production of modular homes, it is customary to bring both materials and labor to the place where the home is being assembled. This is an example of a ____ layout. a. product b. fixed-position c. cellular d. functional e. process

B

Operations managers must specifically address both ____ when setting up an operations system. a. technology and layout b. location and layout c. quality and technology d. flexibility and product cost e. layout and flexibility

B

The primary concern of strategy implementation is a. the content of the strategy. b. how the strategy is operationalized and executed. c. goal development. d. corporate-level strategy. e. functional strategy.

B

The text notes that what we now call operations management was once called production management and implies that there are several reasons for the change in nomenclature. Which of the following is NOT one of those reasons? a. The decline in manufacturing in the United States in recent years b. Changes in manufacturing processes such as the increased use of robots and other computer-based technology c. The increase in the size and importance of the service sector in the U.S. economy d. Drastic increases in foreign competition and the subsequent effects it has had on U.S. firms e. The fact that many of the tools and techniques used in manufacturing can also be used in the service sector

B

When General McChrystal asked for more troops for the war in Afghanistan, he was making a ____ operations decision. a. product-service mix b. capacity c. technology d. facilities e. service

B

Which of the following is a guideline for tactical plans? a. They must be based on operational goals. b. They must specify resources and time frames. c. They must be independent of the strategic plan. d. They must be independent of the long-term goal.

B

Which of the following is a purpose served by goals? a. They allow other aspects of planning to progress independently. b. They provide an effective mechanism for evaluation and control. c. They help everyone work toward different objectives. d. They discourage hierarchical segregation in organizations.

B

Which of the following is true of operational plans? a. They are used in the event of a disaster or other unexpected calamity. b. They are determined by tactical plans. c. They are developed to implement specific parts of a strategic plan. d. They are long-range plans.

B

Which of the following organizations would provide the consumer with time and place utility through its operations management function? a. United Technologies Corporation when it manufactures Carrier air conditioners b. The university soccer game watched by 500 fans c. The book publisher that produces your textbooks d. Kincaid, furniture maker e. Your local stereo dealer

B

Which of the following statements about the use of operations management as a control is TRUE? a. Operations management can be used as a control by tying it in with the other functions. b. When operations management is used as a control, operations managers should be held responsible for all product-related activities. c. Accountability for operations managers is spelled out in rules when the organization is bureaucratic in nature. d. In a clan system, accountability is usually not formalized. e. Misplaced accountability that occurs with operations management reduces effectiveness of control and increases conflict.

B

_____ is the catalyst that drives the planning process. a. Goal setting b. Decision making c. Process planning d. Policy making

B

A ____ organization is one that transforms resources into an intangible output and creates time or place utility for its customers. a. manufacturing b. distribution c. service d. retailing e. not-for- profit

C

A consulting firm calculates an efficiency index for each of its consultants by dividing each consultant's total hours of work by the number of billable hours. This is a measure of ____ productivity. a. unit b. company c. individual d. labor e. differential

C

Abercrombie and Fitch sells young adult clothing with overtly sexual advertising at high prices with poor quality sewing. It uses a(n) ____ strategy. a. guerrilla b. overall cost leadership c. focus d. differentiation e. defender

C

After so many people complimented Robin Hoder's honey mustard, she decided to start a small business called Naples Valley Products to manufacture and market her mustard. At this juncture, Hoder was engaged in a. strategic marketing. b. tactical implementation. c. strategic formulation. d. corporate strategy. e. competitive response.

C

Almost 20,000 UPS employees are now equipped with ring scannerssmall electronic devices worn on their index fingers and wired to a small computer on their wrists. When a UPS employee holds a package, the ring shoots a pattern of photons on the package. Within moments, its location is updated at the UPS website. This use of ____ allows UPS to better track its packages and to provide better customer service. a. just-in- time inventory control b. employee involvement c. an operations improvement d. research and development enhancement e. CIM

C

An apparel manufacturer decides to open a new facility in a different city. Which of the following will it most likely employ? a. Procedure b. Policy c. Program d. Project

C

Fox News covers stories from a right of center political point of view. They use a(n) ____ strategy. All reporters say they have no bias. a. prospecting b. emergent c. focus d. cost leadership e. guerrilla

C

Gymboree sells high quality children's clothing at high prices. It uses a(n) ____ strategy. a. prospecting b. emergent c. differentiation d. cost leadership e. guerrilla

C

Krispy Kreme sells doughnuts. It markets them primarily to people who want something quick and sweet for breakfast or as a morning snack. This is an example of Krispy Kreme's a. industry niche. b. synergy. c. scope. d. resource deployment. e. entropy.

C

Motorola offers an eight-hour seminar based on its famed six sigma quality program, which aims for only one defect per 1,000,000-unit production run, to businesses that are interested in teaching their employees how to implement total quality management. This example focuses on which component of the quality management strategy? a. Technology b. Materials c. Employee involvement d. Methods e. Operations

C

Operations management can BEST be used to improve speed by a. maximizing the number of approvals needed so that mistakes are caught beforehand, then moving ahead at full speed. b. using individual work assignments because of the clear accountability that results. c. starting from scratch, which usually enhances speed more than modifying current systems. d. rigidly adhering to schedules. e. eliminating elements of the organization culture that have been ineffective.

C

Operations management is primarily concerned with which element of systems theory? a. Inputs b. Outputs c. Transformation processes d. Feedback e. Entropy

C

Pea-in- the-Pod is a small chain of retailers that sell clothes only to pregnant women and new mothers. Its quality materials, innovative designs, reasonable prices, and ____ strategy create a competitive advantage for the chain. a. guerrilla b. overall cost leadership c. focus d. emergent e. defender

C

Texas Instruments got into the watch business as a result of developing a technology that radically changed the nature of wristwatches. Its strategy included the use of new equipment and automation to drive down costs. This example best represents which component of strategy? a. Scope b. Synergy c. Distinctive competence d. Competitive response e. Resource deployment

C

The board of directors of Senolandt, a company that manufactures toys for infants, decides to widen its customer base to include young adolescents as well. This is an example of a _____. a. reaction plan b. single-use plan c. strategic plan d. operational plan

C

Toyota installed a flexible manufacturing assembly line in its plant outside Columbus, Ohio. It can make a variety of cars one after the other, switching production by using scanners that read codes. This is an example of a. just-in- time inventory control. b. employee involvement. c. operations improvement. d. research and development enhancement. e. CIM.

C

Toyota is the most successful automaker selling hybrid vehicles. Toyota uses ____ strategy a. differentiation, focus. b. overall cost leadership. c. differentiation. d. focus. e. cost leadership, focus.

C

Unlike a reaction plan, an action plan is: a. is a plan developed to answer an unforeseen circumstance. b. a long-range plan which has a time frame of five years or more. c. a plan that operationalizes any other kind of plan in an organization. d. is a general plan outlining decisions of resource allocation.

C

What is the relationship between operations management and organizational strategy? a. Operations management drives organizational strategy decisions. b. Organizational strategy drives operations management decisions. c. There is a direct relationship between the two so that each affects the other. d. There is essentially little relationship between the two areas. e. To date, research has been unable to show a consistent relationship between the two.

C

Which of the following is NOT an important part of automation? a. Feedback b. Information c. Plotters d. Sensors e. Control mechanisms

C

Which of the following is an area of focus for tactical plans? a. Environment b. Resources c. People d. Mission

C

Which of the following would seem especially appropriate for firms using a just-in- time inventory system? a. A broad customer base b. Substantial amounts of warehouse space c. Multiple sources of supply d. Good distribution systems e. Computer-assisted manufacturing

C

____ is the total set of managerial activities that an organization uses to create its products or services. a. Management b. Managerial effectiveness c. Operations management d. A transformation system e. Scientific management

C

***At Wal-Mart, 70 percent of merchandise is rung up at the cash register before the company even pays for it. This is an example of a. management by objectives. b. participatory management. c. quality circles. d. a just-in- time inventory system. e. computer-assisted manufacturing.

D

***Google bought YouTube even though it operated at a loss. The business strategy for YouTube is ____. a. valid b. deliberate c. reliable d. emergent e. synergistic

D

***The expiration of a pharmaceutical drug patent allows generic drug makers to introduce the same chemical compound under a different name and at lower prices. This is an example of ____ for the developer of the original drug. a. organizational weakness b. strategic limitation c. entropy d. organizational threat e. organizational opportunity

D

A line manager at a brewery sets a target for the minimum number of beer cartons that have to be shipped out by the end of each day. This is an example of a(n) _____ goal. a. synergistic b. strategic c. contingency d. operational

D

A(n) ____ strategy is a pattern of action that develops over time in an organization in the absence of missions and goals, or despite missions and goals. a. valid b. deliberate c. reliable d. emergent e. synergistic

D

An organization can manufacture 10,000 widgets with 10 hours of direct labor. What is its labor productivity? a. 100 units per labor hour b. 10 units per labor hour c. 10 units per labor hour d. 1,000 units per labor hour e. Cannot be determined from the information given

D

Business-level strategy focuses primarily on a. which markets to enter and how to use the firm's money, people, and physical facilities. b. which markets to enter and in what areas the firm may have a competitive edge. c. which markets to enter and how the parts of the organization enhance the entry. d. the areas in which the firm may have an advantage and how much various organizational parts enhance each other. e. the firm's competitive advantage(s).

D

Dale has seen unit production costs go up dramatically during the past two or three years. One major reason is high interest rates on money borrowed to purchase and store inputs. Which of the following should Dale consider? a. Management by objectives b. Participatory management c. Quality circles d. Just-in- time inventory systems e. Computer-assisted manufacturing

D

Don opened a pizza shop. It was successful, so he opened a restaurant; it failed. So he opened a bed and breakfast; it succeeded. He wanted to save a historic building, so he turned it into a retreat center. Don uses a(n) ____ strategy. a. valid b. deliberate c. reliable d. emergent e. synergistic

D

Effective strategies a. develop long-range plans for resource allocation. b. provide an in-depth analysis of the organization's internal strengths and weaknesses. c. provide managers with a list of environmental contingency factors. d. align the organization and environment to achieve strategic goals. e. focus on the mission statement.

D

In the 1980s, if you mentioned Harley-Davidson motorcycles to the average consumer, he or she immediately thought of motorcycle gangs-- more specifically, Hell's Angels. Now the price of a Harley can top $20,000, and there are riding clubs like Rubs (Rich urban riders) that include executives, attorneys, and doctors. The club members are attracted to Harleys for their wild and free image. Harley-Davidson's image is a(n) ____ not easily imitated by competitors. a. organizational weakness b. strategic limitation c. Entropy d. distinctive competence e. organizational opportunity

D

Management by objectives (MBO) refers to: a. a process of management that focuses on optimization. b. a formal process by which the success of a plan is evaluated. c. a process of management involved in overcoming crisis situations. d. a formal goal-setting process involving collaboration between managers and subordinates.

D

Starstruck Eateries has been very successful over the years by monitoring what successful restaurants in other cities are doing and copying them. This is known as a. competitive parity. b. competitive advantage. c. distinctive competence. d. strategic imitation. e. tactical differentiation.

D

The goals of operations managers are efficiency and effectiveness, which are achieved through a. quality and profits. b. productivity and profits. c. profits and legal responsibility. d. quality and productivity. e. profits and returns to stockholders.

D

The problems that operations managers face generally revolve around issues related to a. hiring and retaining qualified employees. b. planning and structuring the workforce. c. marketing and distributing finished goods. d. the acquisition and utilization of resources for conversion. e. research and development related to new technology.

D

The production manager has just received a large block of orders for products that are not manufactured yet; however, he is not concerned. Which of the following items can you safely assume this production manager uses? a. Robotics b. Computer-aided design c. Process layouts d. Computer-aided manufacturing e. Product layouts

D

Weather Watches, a watch manufacturing company, faces a lot of problems while planning and setting goals as its competitors' technology is constantly developing. It too has to upgrade the technology it uses to keep up with its competitors. Which of the following barriers to goal setting and planning does Weather Watches face? a. An improper reward system b. Resistance to change c. Reluctance to establish goals d. A dynamic and complex environment

D

Wenton and Wenton, an apparel store, decides to focus on summer-friendly clothes. Syler, the manager of the store, plans to do so by introducing a new line of shirts that absorbs sweat quickly from the body. He allocates activities to each of the departments of the store and sets a time frame within which the activities should be completed. Syler's plan is an example of a _________. a. long-range plan b. contingency plan c. single-use plan d. tactical plan

D

Which of the following organizations creates form utility? a. Merrill Lynch b. Wendy's c. U.S. Postal Service d. Intel e. Continental Airlines

D

____ is the component of strategy that indicates what the organization does exceptionally well. a. Resource deployment b. Synergy c. Scope d. Distinctive competence e. None of these choices

D

_____ usually cover periods from one to five years and are especially important for middle and first-line managers. a. Contingency plans b. Short-range plans c. Long-range plans d. Intermediate plans

D

***Datril was introduced into the pain-reliever market as a product just like Tylenol. The makers of Datril used ____ to copy Tylenol's distinctive competence. a. product aping b. tactical imitation c. product emulation d. product integration e. strategic imitation

E

***When the CBS network introduced the reality show Survivor, the show was an immediate success for the network. As a result ABC, NBC, and Fox tried to introduce their own reality shows. In this instance, ABC, NBC, and Fox used a. product aping. b. tactical imitation. c. product emulation. d. product integration. e. strategic imitation.

E

A bank customer needs a car loan. When entering the bank the customer passes the teller line and proceeds to the management section. This is an example of the use of ____ layout. a. product b. fixed-position c. specialized d. functional e. process

E

Al Lovata, CEO of Be Our Guest Inc. rented a CFO from Milestone Advisors LLC to help cut cost during the economic downturn. Be Our Guest used a. benchmarking. b. conformance sampling. c. acceptance sampling. d. in-process sampling. e. outsourcing.

E

Many shows broadcast on U.S. television today are filmed in British Columbia, Canada. The production company takes advantage of the many amenities that British Columbia offers. Operations management decisions to film in British Columbia are an example of ____ decisions. a. product-service mix b. capacity utilization c. technology d. facilities e. location

E

Network new programs have been losing viewers for years. They all cover stories from left of center in the political spectrum. Fox News saw a(n) ____ and covers stories from right of center. The reporters all say they have no bias. a. organizational weakness b. strategic limitation c. entropy d. organizational threat e. organizational opportunity

E

Porter's generic strategies classify firms by which of the following? a. Stagnant b. Growth c. Declining d. Analyzing e. Focus

E

Which of the following factors is NOT included in the formula for computing total factor productivity? a. Cost of labor b. Cost of capital c. Cost of materials d. Cost of energy inputs e. Cost of inflation

E

Which of the following is a suggested method for improving productivity based on operations? a. Improved technological methods b. Modernized plants c. New distribution systems d. Increased spending on research and development e. All of these choices

E

Which of the following is a suggested method for improving productivity through motivation and involvement of employees? a. Increasing training b. Increasing employee participation c. Enhancing flexibility d. Improving reward systems e. All of these choices

E

Which of the following is a type of inventory that must be controlled by a manufacturing organization? a. Raw materials b. In-transit c. Work-in- process d. Finished goods e. All of these choices

E

Which of the following pairs of factors that are important to designing operations systems are MOST closely related to demand? a. Product-service mix and facilities b. Capacity utilization and facilities c. Product-service mix and technology d. Technology and capacity utilization e. Products-service mix and capacity utilization

E

Which of the following questions are concerned with capacity utilization decisions that must be made by operations management? a. How many automobiles do we produce? b. How much floor space do we devote to a particular product? c. How many tables does my restaurant need? d. How much office space does the accounting operation need? e. All of these choices

E

Which of the following statements about productivity is TRUE? a. It is a measure of efficiency. b. It is an economic index of value. c. It has different levels and forms. d. It is related to quality in a positive way. e. All of these choices

E

Which of the following statements about the importance of productivity is TRUE? a. It is important to a firm's profitability. b. It is important to a firm's ability to survive. c. It contributes to our overall quality of life. d. It contributes to a country's standard of living. e. All of these choices

E