Operations Management (Chapter 1)

Walter Skewhart, in the ______, provided the foundations for _____ in operations management.

1920's, statistical sampling.

Illiteracy and poor diets have been known to cost countries up to what percent of their productivity?

20%

The service sector makes up approximately what percentage of all jobs in the United States?

79 percent

What is a knowledge society?

A knowledge society is one in which much of the labor force has migrated from manual work to work based on knowledge.

How do services differ from goods? Identify five ways.

A service is usually intangible; it is often produced and consumed simultaneously; often unique; it involves high customer interaction; product definition is inconsistent; often knowledge based; and frequently dispersed.

Which of the following is a similarity between goods and services?

Application of operations management.

Henry Ford is noted for his contributions to

Assembly line operations.

Which of the following would not be an operations function in a commercial bank?

Auditing

Why are operations managers faced with ethical and social challenges?

Businesses have diverse stakeholders, which include owners, employees, lenders, and distributors. These stakeholders hold conflicting perspectives.

Henry Ford and _____ are credited with the development of the moving assembly line.

Charles Soresen.

The field of operations management is shaped by advances in which of the following fields?

Chemistry and physics. Industrial engineering and management science. Biology and anatomy. Information technology.

Which of the following is the best example of a pure service?

Counseling

All of the following decisions fall within the scope of operations management except for

Creating the company income statement

Which of the following tasks within an Airline Company are related to Operations?

Crew Scheduling

Which of the following nets the largest productivity improvement?

Decrease input by 15%

Productivity can be improved by

Decreasing inputs while holding outputs steady.

Which of the following are part of the ten critical decisions of operations management?

Design of goods and services. Managing Quality. Layout Strategy.

Which of the following is not one of the ten critical decisions of operations management?

Determining the financial leverage position

Which of the following statements is true?

Each manufacturing employee now produces about 20 times more than in 1950.

Which of the following is not a typical service attribute?

Easy to store.

Services are often knowledge based. Provide two examples.

Educational, medical and legal services.

What are some of the ethical and social challenges faced by operations managers?

Efficiently developing and producing safe quality products; maintaining a clean environment; providing a safe workplace; honoring community commitments.

Which of the following services is least likely to be unique, i.e., customized to a particular individuals needs?

Elementary Education.

The person most responsible for popularizing interchangeable parts in manufacturing was

Eli Whitney.

_____ is the operations management trend that moves more decision making to the individual worker.

Empowered employees.

Which of the following statements about trends in operations management is false?

Environmentally sensitive production is giving way to low cost focus.

Marketing, production, and _____ are the three functions that all organizations must perform to create goods and services.

Finance/Accounting

The "Father of Scientific Management" is

Frederick W. Taylor

The marketing function's main concern is with

Generating the demand for the organizations products or services.

Which is not true regarding differences between goods and services?

Goods tend to have higher customer interaction than services.

Among the ethical and social challenges facing operations managers are

Honoring stakeholder commitments. Maintaining a sustainable environment. Efficiently developing and producing safe, quality products. Providing a safe workplace.

Reasons to study Operations Management include learning about

How people organize themselves for productive enterprise. How goods and services are produced. What operations managers do. A costly part of the enterprise.

Which of the following is not among the ethical and social challenges facing operations managers?

Increasing executive pay.

Which of the following is a current trend in operations management?

Just in time performance. Global focus. Supply chain partnering. Mass customization.

Current trends in operations management include

Just in time performance. Rapid product development. Mass customization. Empowered employees.

Three commonly used productivity variables are

Labor, capital, and management.

The ten critical decisions of operations management include

Layout strategy, maintenance, process and capacity design, and managing quality.

A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include

Lenders. Suppliers. Owners. Employees.

Among the ethical and social challenges facing operations managers are

Maintaining a sustainable environment.

The factor responsible for the largest portion of productivity increase in the U.S. is

Management

Which productivity variable has the greatest potential to increase productivity?

Management

Operations mangers should be well versed in what disciplines in order to make good decisions?

Management science, information technology, and often one of the biological or physical sciences.

The largest contributor to productivity increases is _____, estimated to be responsible for ______ of the annual increase.

Management, over one-half.

Which of the following are the primary functions of all organizations?

Marketing, Production/Operations, and Finance/Accounting

Which of the following is not one of the ten critical decisions of operations management?

Mass customization

_____ is the ability of the organization to be flexible enough to cater to the individual whims of consumers.

Mass customization.

What is an example of a "hidden" production function?

Money transfers at banks

The total of all outputs produced y the transformation process divided by the total of the inputs is

Multifactor productivity

_____ is the total of all outputs produced by the transformation process divided by the total of the inputs.

Multifactor productivity.

Productivity tends to be more difficult to improve in the service sector because the work is

Often difficult to automate. Typically labor intensive. Frequently processed individually. Often an intellectual task performed by professionals.

Define operations management. Will your definition accommodate both manufacturing and service operations?

Operations management can be defined as the management of all activities directly related to the creation of goods and/or services through the transformation of inputs into outputs.

_____ is the set of activities that transforms inputs into goods and services.

Operations management.

Why are organizations changing from batch - large - shipments to just in time - JIT?

Organizations are changing to just in time shipments because inventor requires a large financial investment, and impedes the responsiveness to changes in the marketplace.

Productivity is the ratio of ____ to _____. Using this relationship, productivity can be improved by _____ or _____.

Outputs; inputs; reducing inputs while holding outputs constant; increasing outputs while holding inputs constant.

The first five elements in the management process are

Plan, Organize, Staff, Lead, and Control

An operations task performed at Hard Rock Café is:

Preparing employee schedules.

Which of the following is not an element of the management process?

Pricing

The ten critical decisions of operations management include?

Process and capacity design

Which of the following attributes is most typical of a service?

Production and consumption occur simultaneously.

Identify three or more operations related tasks carried out by Hard Rock Café.

Providing customer meals; designing, testing, and costing meals; Acquiring, receiving, and storing supplies; recruiting and training employees; preparing employee schedules; Designing efficient restaurant layouts.

When a tangible product is not included in a service, such as with counseling, it is called a _____.

Pure Service.

Which of the following is not true when explaining why productivity tends to be lower in the service sector than in the manufacturing sector?

Service operations are typically capital intensive.

Why are services typically more difficult to standardize, automate, and make efficient?

Services typically require customer interaction, which makes it difficult to standardize, automate, and make efficient.

The service sector has lower productivity improvements than the manufacturing sector because

Services usually are labor intensive.

Walter Shewhart is listed among the important people of operations management because of his contributions to

Statistical quality control.

Reasons to study Operations Management include

Studying how people organize themselves for productive enterprise. Learning about a costly part of the enterprise.

"Should we make or buy this component?" is an issue in the _____ critical decision area.

Supply chain management.

Which is not true regarding differences between goods and services?

Tangible goods are generally produced and consumed simultaneously, services are not.

Productivity measurement is complicated by

The fact that precise units of measure are often unavailable.

An operations manager is not likely to be involved in

The identification of customers wants and needs.

Which of the following statements is true?

The person most responsible for initiating the use of interchangeable parts in manufacturing was Eli Whitney.

Identify the three productivity variables used in the text.

The three common variables are labor, capital, and management.

ASQ, ISM, APICS, and PMI are important professional organizations to operations management because

They provide certification for professionals. They allow professionals to keep up with industry developments. They facilitate professional networking.

Starbucks stopped requiring signatures on credit card purchases under $25 in an attempt to reduce

Transaction time or service time.

Who among the following is associated with contributions to quality control in operations management?

W. Edwards Deming

Eli Whitney, in the _____, provided the foundations for _____ in operations management.

nineteenth century, interchangeable parts.

Operations management is applicable

to all firms, whether manufacturing or service.