Operations Management

Electronic medical records in health care are designed to improve patient satisfaction more than operational efficiency.

False

Employees who work in financial and accounting functions of organizations need little knowledge of operations management

False

Ensuring that a credit card has accurate customer information and is delivered quickly to the customer is an example of inventory management in OM

False

Eventually, order qualifiers become order winners

False

Having a large number of performance measures is much better than having a selected few

False

In today's global market, mass customization has become less important that it was in the past.

False

Operational capabilities must be built before a firm should identify competitive priorities

False

Operations management is focused primarily on the application of technology in manufacturing

False

Order qualifiers are goods and service features and performance characteristic that differentiate one customer benefit package from another and win a customer's business

False

Quality measures the degree to which the output of a process conforms to management's expectations and requirements

False

Return on assets would normally be classified as a productivity measure

False

The ability to achieve market and financial superiority over competitors is called strategic planning

False

The color and size of an iPod would be considered credence attributes

False

The focus on value has forced many traditional goods producing companies to reduce services for their customer benefit package

False

The only important measurement category in business is financial

False

The organization that outsources still retains ownership of the outsourced process or function

False

One approach to increasing value is to maintain perceived benefits while increasing price or cost

False Value ratio= benefit/cost

Without the internet, there would be little application of technology in services

False; Great Clips

Apple's primary competitive priority would probably be innovation while Dell's would be flexibility

True

Both goods and services can be standardized for the mass market or customized to individual needs

True

Computer chips and microprocessors are examples of hard techonology

True

Core competencies are the strengths that are unique to an organization, such as a creative workforce or a strong supply chain

True

Customers and service providers often work together to con produce a service

True

E Service refers to using the Internet and technology to provide services that create and deliver time, place, information, entertainment and exchange value to customers and/or support the sale of goods

True

Empathy is the caring attitude and individualized attention provided to customers

True

Every job entails some aspect of operations management

True

From the perspective of operations management, all manufacturing organizations, regardless of their size or type of product, face similar issues regarding technology.

True

Good customer satisfaction measurement systems are designed to provide information about future buying behavior

True

Measuring and reporting performance results can be a motivator for many workers

True

Of the 3 types of attributes customers use to evaluate goods and services, goods are high in search attributes while services are high in experience and credence attributes

True

Proportional increases or decreases in perceived benefits as well as price or cost result in no net change in value

True

Reliability is the ability to perform a service dependably and accurately

True

Service quality measures are generally based on data collected from observing front line operations

True

Southwest Airlines has gained competitive advantage by focusing on cost as a key competitive priority

True

Technology has helped UPS to become an enabler of global commerce beyond simply moving goods

True

To apply the principles of operations management, managers need to understand people, processes, and technology

True

Value can be increased by adding services to customer benefit packages even when the quality or features of good cannot be improved

True

All organizations face common issues regarding technology. Which item below does not belong on the list of issues? a) the right technology must be selected for the goods that are produced b) robots must be programmed to operate the equipment c) work must be scheduled to meet shipping commitments/customer promise dates d) quality must be ensured

b) Robots must be programmed to operate the equipment

Which of the following is false? To increase value, an organization must... a) decrease price or cost while holding perceived benefits constant b) change both perceived benefits and price in the same proposition c) increase perceived benefits while holding price or cost constant d) increase perceived benefits while reducing price or cost

b) change both perceived benefits and price in the same proportion

With regard to the three types of attributes customers use in evaluating the quality of goods and services, a vacation would best be classified as high in.. a) search attributes b) experience attributes c) credence attributes d) competitive advantage attributes

b) experience attributes

Break even analysis can be used to... a) evaluate quality levels b) help make tech adoption decisions c) determine if ERP is economical d) determine the breakeven quantity for infinite scalability

b) help make technology adoption decisions

Which of the following is not true? To increase value an organization must... a) decrease price while holding benefits constant b) hold benefits constant while increasing price c)increase benefits while holding price constant d) increase benefits while reducing price

b) hold perceived benefits constant while increasing price or cost.

Customer satisfaction rating increases as time on hold waiting decreases is an example of... a) productivity index b) interlinking c) value of a loyal customer d) operational definitions

b) interlinking

Database systems, artificial intelligence programs and voice recognition software are examples of.. a) hard tech b) soft tech c) computer numerical control d) integrated operating systems

b) soft technology

Outsourcing is... a) the same as offshoring b) the opposite of vertical integration c) the opposite of backward integration d) the same as diversifying

b) the opposite of vertical integration

In relating OM and the customer benefit package which is the correct timing sequence? a) Operating system processes lead to customer needs and expectations, which lead to customer benefit package. b) Customer benefit package leads to customer needs and expectations, which lead to operating system processes. c) Customer needs and expectations lead to customer benefit package, which leads to operating system processes. d) Customer needs and expectations lead to operating system processes, which lead to customer benefit package.

c) Customer needs and expectations lead to customer benefit package, which leads to operating system processes

Information technology has significantly affected health care. Which of the following is not an outcome? a) cost reduction b) revenue enhancement c) faster exchange of handwritten charts between physicians and nurses d) improved clinical efficiency and patient care

c) Faster exchange of handwritten charts between physicians and nurses

_______ integration refers to acquiring capabilities at the front of the supply chain, whereas ______ integration refers to acquiring capabilities toward the back end of the supply chain. a) vertical , horizontal b) upward, downward c) forward, backward d) backward, forward

c) Forward, backward

Which one of the following has the lowest goods content? a) automobile muffler replacement b) computer diagnosis and repair c) movie presentation d) fast food restaurant

c) Movie presentation; low goods = intangibles

The TBL (triple bottom line) refers to the measurement of sustainability in all the following areas except... a) economic b) social c) technological d) environmental

c) Technological

A firm's ability to achieve market and financial superiority over its competitors is called.. a) operations strategy b) strategic planning c) competitive advantage d) competitive priority

c) competitive advantage

Which of the following is not normally considered a variable cost? a) labor b)transportation c) equipment lease d) material

c) equipment lease

Which of the following is NOT a key activity of an OManager? a) Translating market knowledge into goods, services, and processes b) continually learning and adapting to global and environmental changes c) managing cash flows and strategic investments d) exploiting technology to improve productivity

c) managing cash flows and strategic investments

For a restaurant, order taking, bill payment and home delivery would be considered... a)services b) inputs c) processes d) outputs

c) processes

Productivity is the... a) quality of output/quantity of input b) quality of input/quantity of output c) quantity of output/quantity of input d) quantity of input/quantity of output

c) quantity of output/quantity of input

Which of the following would not be an activity a return facilitator handles? a) recommending a new supplier b) repairing the manufactured good c) requesting money back fora customer d) invoking the service guarantee

c) requesting money back for a customer

Which of the following would be a typical operational level quality performance measure? a) customer ratings of goods and services b) customer retention c) service representative courtesy d) product recalls

c) service representative courtesy

Which of the following is not a component of a value chain? a) goods & services b) information c) sources of labor d) financial transactions

c) sources of labor

Which of the following is not a stage in technology development and adoption? a) birth b) turbulence c) build out d) decline

d) Decline

Enterprise Resource Planning Systems (ERP)...

handle customer ordering, inventory management and production scheduling on a real time basis.

A company such as eBay relies more on soft technology than hard technology

True

A competitively dominant customer experience is often called a value proposition

True

Apple computer would best be described as what type of company?

B2C

A company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding. If done in house, fixed cost would be $350,000 with variable cost at $30 per unit. If outsourced, the cost is $80 per unit. Determine the breakeven point and determine if they should make the item in house or outsource it.

BE point: 7,000 units; make in house

Dell computer would best be described as what type of company?

Both B2B to B2C

Customer participation in manufacturing processes and activities is generally high

False

A value chain begins with the goods and services that are provided to customers

False

A value chain describes the flow of customer information through a production system

False

A vertical integration strategy provides a firm more control and generally reduces the complexity of managing the value chain

False

An operations strategy provides the direction on which corporate strategy is based.

False

Assurance is the willingness to help customers and provide prompt recovery to service upsets

False

Bar code scanners are examples of soft techonology

False

A corporate strategy decides which type of business a company chooses to be in

True

A product that typically last at least 3 years is called a durable good

True

A toothbrush is an example of a nondurable good

True

A value chain can be considered a "cradle to grave" model of the operations function

True

When a Break-even analysis is applied to an outsourcing decision, the break even quantity is... a) the ratio of fixed costs to the difference between variable outsourcing cost and variable in house production cost b) the ratio of the difference between variable outsourcing cost and variable in house production cost to fixed costs c) the product of the variable costs times the fixed costs d) the product of the variable costs times the production quantity

a) BE = ratio of fixed costs to the difference between variable outsourcing cost and variable in house production cost

Which 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

Which of the following generally does not result from vertical integration? a) less control over cost b) more control over quality c) more complexity in managing d) higher levels of risk

a) Less control over cost

Which of the following is not a key dimension of service quality? a) conformance b)tangibles c) empathy d) earnings per share

a) conformance

The quality revolution is most related to... a) continuous improvement b) mass production c) time based competition d) service

a) continuous improvement

Computer software would be an example of... a) intangible good b) nondurable good c) a service d) a value creation process

a) intangible good

Which of the following would not be a typical organizational level financial performance measure? a) labor and material costs b) revenue and profit c) return on assets d) earnings per share

a) labor and material costs

Which one of the following has the highest goods content? a) medicine prescription b)computer repair c)automobile loan d)symphony performance

a) medicine prescription

Operations design choices include all of the following except... a) operating plans and control b) type of processes c) value chain integration and outsourcing d) inventory and service capacity

a) operating plans and controls

requirements are expected in a good or service are called... a) order qualifiers b) order satisfiers c) order exciters d) order winners

a) order qualifiers

From the pre and post service view of a value chain, goods and services design, contract negotiation and consulting services would be considered... a) pre production services b)production processes c) post production services d) value creation

a) pre production services

With regard to the three types of customer attributes in evaluating the quality of goods and services, those associated with buying furniture would best be classified as.. a) search attributes b) experience attributes c) credence attributes d) reflect attributes

a) search attributes

Which one of the following statements is false? a) Services that do not involve significant interaction with customers can be managed much the same as goods in a factory. b)A service is any primary or complementary activity that does not directly produce a physical product. c) Some very significant differences exist between goods and services that create different demands on the operations function. d) Designing and managing operations in a goods producing firm is quite similar to that in a service providing organization.

d) Designing and managing operations in a goods producing firm is quite similar to that in a service providing organization

Which of the following is not generally considered a competitive priority? a) time b)flexibility c) innovation d) infrastructure

d) Infrastructure

goods and service features that differentiate one customer benefit package from another are called ... a) order qualifiers b) order satisfiers c)order exciters d) order winners

d) Order Winners

A customer benefit package includes... a) only core offerings b) only peripheral offerings c) either core or peripheral offerings but not both d) both core offerings as wells as peripheral offerings

d) both core offerings as well as peripheral offerings

All of the following are benefits of adopting technology except a) improve/increase productivity and quality b) integrate supply and value chain players c) raise world standard of living d) easier to protect employees' and customers' privacy

d) easier to protect employees' and customers' privacy

Support processes would typically include all of the following except... a) inventory management b) customer help desk operations c) research and development d) manufacturing and assembly

d) manufacturing and assembly

Airline revenue per passenger mile and hotel revenue per full time employee are examples of a) reliability b) value of a loyal customer c) sustainability d) productivity

d) productivity

____ is the process of managing information, services and physical goods to insure their availability at the right place, at the right time, at the right cost and at the right quantity, with the highest attention given to quality. a) pre production service b) value proposition c) operational structure d) value chain integration

d) value chain integration

the ability to respond quickly to changes in the amount and type of demand is called ... a) learning b) service quality c) design flexibility d) volume flexibility

d) volume flexibility