Oper. Mang. Exam 1

The service sector makes up approximately what percentage of all jobs in the United States? A. 40% B. 12% C. 66% D. 94% E. 86%

E. 86%

Outsourcing

- transferring activities that have traditionally been internal to external suppliers

A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity decreases by 20% due to a process change, it would then be: A. 9.6 covers/hr. B. 11.8 covers/hr. C. 96 covers/hr. D. 144 covers/hr. E. 14.4 covers/hr.

A. 9.6 covers/hr.

Which of the following statements about organizational missions is FALSE? A. They are formulated after strategies are known. B. They define a company's reason for existence. C. They indicate what a company intends to contribute to society. D. They provide guidance for functional area missions. E. They reflect a company's purpose.

A. They are formulated after strategies are known.

Which of the following is LEAST likely to be a low-cost leadership competitive advantage? A. broad product line B. effective capacity use C. inventory management D. mass production E. low overhead

A. broad product line

A SWOT analysis determines: A. internal strengths and weaknesses and external opportunities and threats. B. internal strengths and opportunities and external weaknesses and threats. C. internal strengths and weaknesses and internal opportunities and threats. D. external strengths and weaknesses and internal opportunities and threats. E. external strengths and weaknesses and external opportunities and threats.

A. internal strengths and weaknesses and external opportunities and threats.

With reference to cultural and ethical issues, the World Trade Organization has: A. made progress in providing equal protection of intellectual property among nations. B. eliminated bribery. C. played little role in addressing cultural and ethical issues among nations. D. phased out all trade and tariff barriers between the United States and Mexico. E. eliminated slave labor and child labor.

A. made progress in providing equal protection of intellectual property among nations.

Which of the following is NOT one of the 10 strategic operations management decisions? A. mass customization B. layout strategies C. supply chain management D. process and capacity strategies E. maintenance

A. mass customization

Standardization is an appropriate strategy in which stage of the product life cycle? A. maturity B. introduction C. growth D. decline E. retirement

A. maturity

What is the practice of transferring a firm's activities that have traditionally been internal to external suppliers? A. outsourcing B. nearshoring C. backsourcing D. offshoring E. farshoring

A. outsourcing

Illiteracy and poor diets have been known to cost countries up to what percent of their productivity? A. 50% B. 10% C. 5% D. 20% E. 2%

D. 20%

The finance function is concerned with: A. securing monetary resources. B. producing goods or providing services. C. procuring materials, supplies, and equipment. D. building and maintaining a positive image. E. generating the demand for the organization's products or services.

A. securing monetary resources.

Which of the international operations strategies involves high cost reductions and high local responsiveness? A. transnational strategy B. worldwide strategy C. international strategy D. multidomestic strategy E. global strategy

A. transnational strategy

A service is:

An act that satisfies human needs or wants

Which of the following statements is most accurate? A. Nearly all U.S. firms that outsourced processes to India have backsourced them. B. Approximately half of all outsourcing agreements fail. C. Outsourcing is a relatively risk-free activity. D. Nearly all outsourcing relationships do not last beyond two years. E. More than 90% of outsourcing agreements succeed.

B. Approximately half of all outsourcing agreements fail.

Which of the following is NOT an example of a global strategy? A. Caterpillar provides the same earth-moving equipment in Nigeria as in Iowa. B. Gillette introduces a new customized product with less design complexity for low-income Indian customers. C. IKEA sells standardized, Swedish designed, self-assembly furniture products. D. Procter & Gamble homogenizes products as much as the market allows in order to keep cost low. E. Apple designs its iPhone identical, regardless of region.

B. Gillette introduces a new customized product with less design complexity for low-income Indian customers.

Cost minimization is an appropriate strategy in which stage of the product life cycle? A. growth B. decline C. retirement D. introduction E. adolescence

B. decline

What are the five elements in the management process? A. plan, lead, organize, manage, and control B. plan, direct, update, lead, and supervise C. plan, organize, staff, lead, and control D. accounting, finance, marketing, operations, and management E. organize, plan, control, staff, and manage

C. plan, organize, staff, lead, and control

The purchasing function is concerned with: A. producing goods or providing services. B. generating the demand for the organization's products or services. C. procuring materials, supplies, and equipment. D. securing monetary resources. E. building and maintaining a positive image.

C. procuring materials, supplies, and equipment.

Which of the following does NOT represent a valid reason for globalizing operations? A. improve the supply chain B. attract and retain global talent C. reduce responsiveness D. understand markets E. reduce costs

C. reduce responsiveness

An operations manager is performing a factor-rating analysis to help her choose an outsourcing provider. She is focusing on three factors: A, B, and C, with weights of .30, .20, and .50, respectively. She has scored one potential outsourcer, Ling Services, on each of the factors using a scale of 10-50. Ling Services received a score of 30 for factor A, 46 for factor B, and 22 for factor C. What is the factor-rating score for Ling Services? A. 21.8 B. 32.7 C. 30.8 D. 29.2 E. 98.0

D. 29.2

Which of the following is an example of competing on quick response? A. A firm offers more reliable products than its competitors do. B. A firm utilizes its capacity more effectively than its competitors do. C. A firm produces its product with less raw material waste than its competitors do. D. A firm's products are introduced into the market faster than its competitors' products. E. A firm advertises more than its competitors do.

D. A firm's products are introduced into the market faster than its competitors' products.

A strategy is a(n): A. simulation used to test various product line options. B. plan for cost reduction. C. set of opportunities in the marketplace. D. action plan to achieve the mission. E. broad statement of purpose.

D. action plan to achieve the mission.

The marketing function is concerned with: A. securing monetary resources. B. producing goods or providing services. C. building and maintaining a positive image. D. generating the demand for the organization's products or services. E. procuring materials, supplies, and equipment.

D. generating the demand for the organization's products or services.

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

D. increasing executive pay

What theory implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can? A. theory of outsourcing B. theory of competitive advantage C. theory of offshoring D. theory of comparative advantage E. theory of core competencies

D. theory of comparative advantage

All the basic operations management decisions

Design of goods and services Managing quality Process and capacity design Location strategy Layout strategy Human resources and job design Supply chain management Inventory management Scheduling Maintenance

The field of operations management is shaped by advances in which of the following fields? A. information technology B. chemistry and physics C. biology and anatomy D. industrial engineering and management E. all of the these

E. all of the these

Reasons to study operations management include learning about: A. a costly part of the enterprise. B. how goods and services are produced. C. what operations managers do. D. how people organize themselves for productive enterprise. E. all of these.

E. all of these.

Which of the following nets the largest productivity improvement? A. increase output 15% B. increase both output and input by 5% C. decrease input 10%, increase output 3% D. increase output 10%, decrease input 3% E. decrease input 15%

E. decrease input 15%

What is a global network of organizations and activities that supply a firm with goods and services? A. supply tree B. provider network C. vendor network D. vendor tree E. supply chain

E. supply chain

Theory of Comparative Advantage

If an external provider can perform activities more productively than the purchasing firm, then the external provider should do the work

Why is it important to study operations management?

OM is one of three major functions of any organization We want to study how people organize themselves for effective and productive enterprise We want to know how operations interacts with and impacts other organizational functions We want (and need) to know how goods and services are produced We want to understand what operations managers do OM is a costly part of an organization and can have a large impact (positive or negative)

Three primary functions of all organizations

Operations, Marketing, Finance

Why are organizations becoming more global?

Organizations are becoming more global with the decline in the costs of communication and transportation. Additionally, resources in the form of capital, materials, talent, and labor are also now global.

A good is:

Products that satisfy human wants

All organizations, including service firms such as banks and hospitals, have a production function.

True