OM Quiz 1

"Considers inventory ordering and holding decisions" is within the strategic operations management decision area of managing quality.

FALSE

In order to have a career in operations management, one must have a degree in statistics or quantitative methods.

FALSE

Key success factors and core competencies are synonyms.

FALSE

Gibson Valves produces cast bronze valves on an assembly line. If 1600 valves are produced in an 8-hour shift, the productivity of the line is: A. 80 valves/hr. B. 200 valves/hr. C. 1600 valves/hr. D. 40 valves/hr. E. 2 valves/hr.

200 valves/hr.

Which of the following statements is most correct? A. KSFs are often necessary, but not sufficient for competitive advantage. B. KSFs are often sufficient, but not necessary for competitive advantage. C. KSFs are neither necessary nor sufficient for competitive advantage. D. KSFs are both necessary and sufficient for competitive advantage. E. None of these statements is correct.

A. KSFs are often necessary, but not sufficient for competitive advantage.

Outsourcing is simply an extension of the long-standing practice of: A. subcontracting. B. e-procurement. C. exporting. D. postponement. E. importing.

A. SUBCONTRACTING

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

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

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

A. creating the company income statement.

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

B. BROAD PRODUCT LINE

Which of the following is true of maquiladoras? A. They discourage foreign businesses from outsourcing. B. They assess tariffs only on the value-added work done. C. They originated in China. D. None of these E. All of these

B. They assess tariffs only on the value-added work done.

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

B. action plan to achieve the mission.

The service sector makes up approximately what percentage of all jobs in the United States? A. 66% B. 94% C. 85% D. 12% E. 40%

C. 85%

Which of the following statements best characterizes delivery reliability? A. a company that has a computerized delivery scheduling system B. a company that delivers more frequently than its competitors C. a company that always delivers at the promised time D. a company that delivers faster than its competitors E. a company that always delivers on the same day of the week

C. a company that always delivers at the promised time

Which of the following are the primary functions of all organizations? A. production/operations, marketing, and human resources B. sales, quality control, and production/operations C. marketing, production/operations, and finance/accounting D. research and development, finance/accounting, and purchasing E. marketing, human resources, and finance/accounting

C. marketing, production/operations, and finance/accounting

Advantages of outsourcing do NOT include: A. cost savings. B. maintaining a focus on core competencies. C. potential creation of future competition. D. accessing outside technology. E. gaining outside expertise.

C. potential creation of future competition.

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

C. transnational strategy

Which of the following tasks within an airline company are related to operations? A. accounts payable B. sales C. advertising D. crew scheduling E. international monetary exchange

D. CREW SCHEDULING

Which of the following OM strategy/issues should a firm with a product in the maturity stage of its life cycle be LEAST concerned with at the present time? A. long production runs B. cost cutting C. standardization D. increase capacity E. fewer rapid product changes

D. INCREASE CAPACITY

Which of the following attributes is most typical of a service? A. consistency B. easy to automate C. tangible D. production and consumption occur simultaneously E. mass production

D. PRODUCTION AND CONSUMPTION OCCUR SIMULTANEOUSLY

Which of the following did the authors NOT suggest as a reason for globalizing operations? A. attract and retain global talent B. reduce costs C. understand markets D. pursue stockholder approval ratings E. improve the supply chain

D. PURSUE STOCKHOLDER APPROVAL RATINGS

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

D. STAKEHOLDERS

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

D. increasing executive pay

Which of the following is the best example of competing on low-cost leadership? A. A firm advertises more than its competitors do. B. A firm offers more reliable products than its competitors do. C. A firm's research and development department generates many ideas for new products. D. A firm's products are introduced into the market faster than its competitors' products are. E. A firm produces its product with less raw material waste than its competitors do.

E. A firm produces its product with less raw material waste than its competitors do.

Given the position of the 3D printer in the growth stage of its life cycle, which of the following OM Strategy/Issues should the makers of 3D printers be least concerned with at the current time? A. forecasting B. product and process reliability C. increasing capacity D. enhancing distribution E. cost cutting

E. COST CUTTING

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

E. INSTANT COMMUNICATION

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? A. It has increased by 37.5 boxes/hr. B. It has decreased by 9.1%. C. It has not changed. D. It has decreased by 8.3%. E. It has increased by 20%.

E. It has increased by 20%.

Current challenges in operations management include all of the following EXCEPT: A. just-in-time performance. B. rapid product development. C. mass customization. D. empowered employees. E. None of these are exceptions, i.e., all are current challenges.

E. NONE

Which of the following activities takes place most immediately once the mission has been developed? A. The functional areas develop their functional area strategies. B. The ten OM decision areas are prioritized. C. The firm develops alternative or back-up missions in case the original mission fails. D. Operational tactics are developed. E. The functional areas develop their supporting missions.

E. The functional areas develop their supporting missions

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 offshoring C. theory of core competencies D. theory of competitive advantage E. theory of comparative advantage

E. theory of comparative advantage

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

TRUE

An accounting firm that provides tax services for a company would be considered to be part of that company's supply chain.

TRUE

Competition in the 21st century is no longer between companies; it is between supply chains.

TRUE

Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives.

TRUE

Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.

TRUE