Operations Management

Low-cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value. (T/F)

False

Manufacturing now constitutes the largest economic sector in postindustrial societies. (T/F)

False

NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia. (T/F)

False

Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced. (T/F)

False

. An example of a "hidden" production function is the transfer of funds between accounts at a bank. (T/F)

True

All organizations, including service firms such as banks and hospitals, have a production function. (T/F)

True

An accounting firm that provides tax services for a company would be considered to be part of that company's supply chain. (T/F)

True

Competition in the 21st century is no longer between companies; it is between supply chains. (T/F)

True

Experience differentiation is an extension of product differentiation, accomplished by using people's five senses to create an experience rather than simply providing a service. (T/F)

True

One reason for global operations is to gain improvements in the supply chain. (T/F)

True

Production is a measure of output only and not a measure of efficiency. (T/F)

True

Production processes are being dispersed to take advantage of national differences in labor costs. (T/F)

True

Productivity is generally more difficult to improve in the service sector than in the manufacturing sector. (T/F)

True

The World Trade Organization has helped to significantly reduce tariffs around the world. (T/F)

True

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

(D) marketing, production/operations, and finance/accounting

A foundry produces circular utility access hatches (manhole covers). If 120 covers are produced in a 10-hour shift, the productivity of the line is ___ covers/hr.

12

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 the above are true

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

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 the above

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

Which of the following statements about challenges in operations management is FALSE? A) Job specialization is giving way to empowered employees. B) Local or national focus is giving way to global focus. C) Sustainable production is giving way to a low-cost focus. D) Rapid product development is partly the result of shorter product cycles. E) The goal of mass customization is to produce customized products, whenever and wherever needed.

C) Sustainable production is giving way to a low-cost focus.

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

C) The functional areas develop their supporting missions

3. Operations management is applicable: (A) mostly to the service sector. B) mostly to the manufacturing sector. C) to all firms, whether manufacturing or service. (D) to the manufacturing sector exclusively

C) to all firms, whether manufacturing or service

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

D) broad product line

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

D) increasing executive pay

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

D.) 85%

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

E) action plan to achieve the mission.