Ops Mgmt Mid Term

Production processes are being dispersed to take advantage of national differences in labor costs. True False

True

The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. True False

True

The theory of comparative advantage 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. True False

True

To attract and retain global talent, and to expand a product's life cycle, are both reasons to globalize. True False

True

The theory of competitive advantage 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. True False

False

A multinational corporation is a firm with extensive international business involvement. True False

True

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

True

Although the number of people employed in manufacturing in the United States has decreased since 1950, each person is now producing almost 20 times more than in 1950. True False

True

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

True

An example of a "hidden" production function is the transfer of funds between accounts at a bank. True False

True

Boeing's development of the 787 Dreamliner is an example of a company obtaining a competitive advantage through product differentiation/innovation. True False

True

Key success factors are those activities that are key to achieving competitive advantage. True False

True

NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United States. True False

True

One reason for global operations is to gain improvements in the supply chain. True False

True

One reason to globalize is to learn to improve operations. True False

True

One reason to study operations management is to learn how people organize themselves for productive enterprise. True False

True

Productivity is generally more difficult to improve in the service sector than in the manufacturing sector. True False

True

The World Trade Organization has helped to significantly reduce tariffs around the world. True False

True

The World Trade Organization helps provide governments and industries around the world with protection from firms that engage in unethical conduct. True False

True

A knowledge society is one that has migrated from work based on knowledge to one based on manual work. True False

False

An organization's strategy is the purpose or rationale for its existence. True False

False

Core competencies are good candidates for outsourcing. True False

False

Key success factors and core competencies are synonyms. True False

False

Low-cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value. True False

False

NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia. True False

False

Outsourcing is the practice of moving a business process to a foreign country but retaining control of it. True False

False

SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats. True False

False

The multidomestic OM strategy maximizes local responsiveness while achieving a significant cost advantage. True Flase

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. 40 valves/hr. b. 200 valves/hr. c. 1600 valves/hr. d. 80 valves/hr. e. 2 valves/hr.

b. 200 valves/hr.

The factor responsible for the largest portion of productivity increase in the United States is: a. capital. b. management. c. none of these. d. All three combined; it is impossible to determine the contribution of individual factors. e. labor.

b. management.

Which of the following is true of maquiladoras? a. None of these b. All of these c. They assess tariffs only on the value-added work done. d. They originated in China. e. They discourage foreign businesses from outsourcing.

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

Which of the following has progressed the FURTHEST along its product life cycle? a. Boeing 787 b. Apple SmartWatch c. Video physical rentals d. 3-D game players e. Xbox 360

c. Video physical rentals

Outsourcing manufacturing is also known as: a. sublease manufacturing. b. hollow manufacturing. c. contract manufacturing. d. license manufacturing. e. concurrent manufacturing.

c. contract manufacturing.

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

e. They are formulated after strategies are known.

Which of the following pioneers was NOT making a professional impact during the Scientific Management Era? a. Frank Gilbreth b. Frederick W. Taylor c. Henry L. Gantt d. Lillian Gilbreth e. W. Edwards Deming

e. W. Edwards Deming

Which of the following fosters specialization and worldwide supply chains? a. high trade tariffs b. more expensive transportation c. managers with a broad knowledge of many things d. economies of scope e. instant communication

e. instant communication

Advantages of outsourcing do NOT include: a. gaining outside expertise. b. cost savings. c. maintaining a focus on core competencies. d. accessing outside technology. e. potential creation of future competition.

e. potential creation of future competition.

Which of the following is an example of competing on the basis of differentiation? a. A firm offers more reliable products than its competitors do. b. A firm's products are introduced into the market faster than its competitors' products are. c. A firm's distribution network routinely delivers its product on time. d. A firm advertises more than its competitors do. e. A firm manufactures its product with less raw material waste than its competitors do.

a. A firm offers more reliable products than its competitors do.

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

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

Porter's Five Forces Model contains which of the following? a. All of these b. customers c. potential entrants d. suppliers e. immediate rivals

a. All of these

Value-chain analysis can be used to determine if a business is adding unique value in which of the following areas? a. All of these b. quality management c. product research d. human resources e. process innovation

a. All of these

Productivity tends to be more difficult to improve in the service sector because the work is: a. All of these make service productivity more difficult. b. typically labor-intensive. c. often an intellectual task performed by professionals. d. frequently processed individually. e. often difficult to automate.

a. All of these make service productivity more difficult.

Which of the following statements is true? a. Functional strategies are shaped by corporate strategy. b. External conditions are shaped by corporate mission. c. Corporate strategy is shaped by functional strategies. d. Functional area missions are merged to become the organizational mission. e. Corporate mission is shaped by functional strategies.

a. Functional strategies are shaped by corporate strategy.

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 higher customer interaction than goods. d. Services tend to have a more inconsistent product definition than goods. e. None, i.e., All of these are true.

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

Who among the following is associated with contributions to quality control in operations management? a. W. Edwards Deming b. Frank Gilbreth c. Charles Babbage d. Henri Fayol e. Henry Ford

a. W. Edwards Deming

Which of the following statements best characterizes delivery reliability? a. a company that always delivers at the promised time b. a company that always delivers on the same day of the week c. a company that delivers faster than its competitors d. a company that delivers more frequently than its competitors e. a company that has a computerized delivery scheduling system

a. a company that always delivers at the promised time

Which of the following is LEAST likely to be a low-cost leadership competitive advantage? a. broad product line b. low overhead c. mass production d. inventory management e. effective capacity use

a. broad product line

The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is: a. experience differentiation. b. flexible response. c. time-based competition. d. differentiation. e. sensory response.

a. experience differentiation.

Boeing's new 787 Dreamliner: a. has increased efficiency from new engine technology. b. has its fuselage sections built in Australia. c. results from a partnership of about a dozen companies. d. is assembled in Washington, D.C. e. uses engines from Japan.

a. has increased efficiency from new engine technology.

Which of the following is NOT one of the 10 strategic operations management decisions? a. mass customization b. layout strategy c. maintenance d. supply chain management e. process and capacity design

a. mass customization

Standardization is an appropriate strategy in which stage of the product life cycle? a. maturity b. retirement c. growth d. decline e. introduction

a. maturity

The total of all outputs produced by the transformation process divided by the total of the inputs is: a. multifactor productivity. b. greater in manufacturing than in services. c. defined only for manufacturing firms. d. utilization. e. single-factor productivity.

a. multifactor productivity.

Which of the following is NOT a strategic operations management decision? a. price b. quality c. maintenance d. layout design e. inventory

a. price

Which of the following is NOT an element of the management process? a. pricing b. controlling c. planning d. leading e. staffing

a. pricing

A firm can effectively use its operations function to yield competitive advantage through all of the following EXCEPT: a. setting equipment utilization goals below the industry average. b. constant innovation of new products. c. customization of the product. d. maintaining a variety of product options. e. speed of delivery.

a. setting equipment utilization goals below the industry average.

The service sector makes up approximately what percentage of all jobs in the United States? a. 66% b. 85% c. 94% d. 40% e. 12%

b. 85%

Current challenges in operations management include all of the following EXCEPT: a. rapid product development. b. None of these are exceptions, i.e., all are current challenges. c. empowered employees. d. mass customization. e. just-in-time performance.

b. None of these are exceptions, i.e., all are current challenges.

Who introduced the concept of value-chain analysis? a. Ford b. Porter c. Gates d. Smith e. Toyota

b. Porter

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. product and process reliability b. cost cutting c. enhancing distribution d. increasing capacity e. forecasting

b. cost cutting

Which of the following is NOT a typical service attribute? a. intangible product b. easy to store c. customer interaction is high d. difficult to resell e. simultaneous production and consumption

b. easy to store

Which of the following environmental factors has not contributed to Microsoft's changing strategy? a. faster processors b. global warming c. Google d. security issues e. the Internet

b. global warming

Porter's Five Forces Model is used to evaluate competition based on which 5 aspects? a. research and development, cost, legal regulations, suppliers, customers b. immediate rivals, potential entrants, customers, suppliers, and substitute products c. cost, legal regulations, advertising effectiveness, potential entrants, and immediate rivals d. potential entrants, customers, suppliers, legal regulations, and cost e. immediate rivals, potential entrants, cost, substitute products, and legal regulations

b. immediate rivals, potential entrants, customers, suppliers, and substitute products

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

b. increasing executive pay

Which of the international operations strategies uses import/export or licensing of existing products? a. worldwide strategy b. multidomestic strategy c. global strategy d. international strategy e. transnational strategy

b. multidomestic strategy

Which of the following is not an advantage of outsourcing? a. cost savings b. outsourcing core competencies c. gaining outside expertise d. improving operations and service e. accessing outside technology

b. outsourcing core competencies

Which of the following did the authors NOT suggest as a reason for globalizing operations? a. attract and retain global talent b. pursue stockholder approval ratings c. improve the supply chain d. understand markets e. reduce costs

b. pursue stockholder approval ratings

What is a global network of organizations and activities that supply a firm with goods and services? a. vendor tree b. supply chain c. supply tree d. provider network e. vendor network

b. supply chain

Which of the international operations strategies involves high cost reductions and high local responsiveness? a. multidomestic strategy b. transnational strategy c. worldwide strategy d. international strategy e. global strategy

b. transnational strategy

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 .50, .20, and .30, 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. 29.2 c. 30.8 d. 98.0 e. 32.7

c. 30.8

Before establishing and implementing strategy, a resources view would ensure that which of the following resources are available? a. physical b. technological c. All of these d. human e. financial

c. All of these

The field of operations management is shaped by advances in which of the following fields? a. industrial engineering and management science b. biology and anatomy c. All of these d. information technology e. chemistry and physics

c. All of these

Which of the following influences layout design? a. personnel levels b. technology c. All of these influence layout decisions. d. inventory requirements e. capacity needs

c. All of these influence layout decisions.

Which of the following is a similarity between goods and services? a. automation b. consistency c. Both have quality standards. d. mass production e. Both can usually be kept in inventory.

c. Both have quality standards.

Which of the following are among the 10 strategic operations management decisions? I. design of goods and services II. managing quality III. layout strategy IV. marketing V. pricing of goods and services a. I, II, IV b. I, II, III, IV, V c. I, II, III d. II, III, V e. I, II, V

c. I, II, III

An operations manager is performing a factor-rating analysis to help him choose an outsourcing provider. He is focusing on two factors: A and B, using a weight of 75% for factor A and 25% for factor B. He has scored five different potential providers on both factors, using a scale of 1-5, with 1 representing the BEST score. Based on the scores provided in the table below, which provider should be chosen? a. Omega b. Beta c. Phi d. Gamma e. Alpha

c. Phi

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is: a. mass production. b. time-based competition. c. competing on differentiation. d. competing on productivity. e. competing on quality.

c. competing on differentiation.

Which of the following tasks within an airline company are related to operations? a. sales b. accounts payable c. crew scheduling d. advertising e. international monetary exchange

c. crew scheduling

According to the authors, which of the following strategic concepts allow firms to achieve their missions? a. differentiation, distinctive competency, quality leadership, and capacity b. distinctive competency, cost leadership, and experience c. differentiation, cost leadership, and response d. differentiation, quality leadership, and response e. productivity, efficiency, and quality leadership

c. differentiation, cost leadership, and response

The term maquiladora is most synonymous with: a. areas that do not meet U.S. standards for workplace safety and pollution. b. Chinese forced labor camps. c. free trade zones in Mexico. d. tax breaks provided by some South American countries to other South American countries. e. home-based or cottage industry.

c. free trade zones in Mexico.

Which of the international operations strategies involves low cost reductions and low local responsiveness? a. global strategy b. worldwide strategy c. international strategy d. transnational strategy e. multidomestic strategy

c. international strategy

The purpose of NAFTA is to: a. phase out all trade and tariff barriers between North America and South America. b. provide fair and equitable tariff rates for trade between the United States, Canada, and Mexico. c. phase out all trade and tariff barriers between the United States, Canada, and Mexico. d. substitute cheap labor in Mexico for expensive labor in the United States. e. curb illegal immigration from Mexico to the United States.

c. phase out all trade and tariff barriers between the United States, Canada, and Mexico.

Which of the following is NOT part of value-chain analysis? a. product research b. quality management c. project management d. supply chain management e. human resources

c. project management

Walter Shewhart is listed among the important people of operations management because of his contributions to: a. measuring productivity in the service sector. b. assembly line production. c. statistical quality control. d. just-in-time inventory methods. e. information technology.

c. statistical quality control.

Illiteracy and poor diets have been known to cost countries up to what percent of their productivity? a. 50% b. 5% c. 10% d. 20% e. 2%

d. 20%

The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. What is the productivity of the plant? a. 5000 boxes/hr. b. 250 boxes/hr. c. 50 boxes/hr. d. 25 boxes/hr. e. 0.04 boxes/hr.

d. 25 boxes/hr.

A cleaning company uses 10 lbs each of chemicals A, B and C for each house it cleans. After some quality complaints, the company has decided to increase its use of chemical A by an additional 10 lbs for each house. By what % has productivity (houses per pound of chemical) fallen? a. 0% b. 15% c. 10% d. 25% e. 33%

d. 25%

Which of the following statements regarding the Dreamliner 787 is true? a. The new aircraft incorporates a wide range of aerospace technologies. b. Boeing will add only 20 to 30 percent of the aircraft's value. c. Boeing has found partners in over a dozen countries. d. All of these are true. e. The new aircraft uses engines from not one, but two manufacturers

d. All of these are true.

Multinational organizations can shop from country to country and cut costs through: a. lower wage scales. b. less stringent regulations. c. lower taxes and tariffs. d. All of these. e. lower indirect costs.

d. All of these.

An SWOT analysis determines: a. internal strengths and weaknesses and internal opportunities and threats. b. internal strengths and opportunities and external weaknesses and threats. c. external strengths and weaknesses and internal opportunities and threats. d. internal strengths and weaknesses and external opportunities and threats. e. external strengths and weaknesses and external opportunities and threats.

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

The largest contributor to productivity increases is ________, estimated to be responsible for ________ of the annual increase. a. Mr. Deming; one-half b. capital; 90% c. technology; over one-half d. management; over one-half e. marketing and sales; two-thirds

d. management; over one-half

What is the practice of transferring a firm's activities that have traditionally been internal to external suppliers? a. backsourcing b. offshoring c. nearshoring d. outsourcing e. farshoring

d. outsourcing

The purchasing function is concerned with: a. producing goods or providing services. b. generating the demand for the organization's products or services. c. building and maintaining a positive image. d. procuring materials, supplies, and equipment. e. securing monetary resources.

d. procuring materials, supplies, and equipment.

Which of the following attributes is most typical of a service? a. mass production b. consistency c. tangible d. production and consumption occur simultaneously e. easy to automate

d. production and consumption occur simultaneously

An operations manager is NOT likely to be involved in: a. the quality of goods and services to satisfy customers' wants and needs. b. work scheduling to meet the due dates promised to customers. c. maintenance schedules. d. the identification of customers' wants and needs. e. the design of goods and services to satisfy customers' wants and needs.

d. the identification of customers' wants and needs.

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 comparative advantage e. theory of competitive advantage

d. theory of comparative advantage

Which of the following statements is most correct? a. None of these statements is correct. b. KSFs are neither necessary nor sufficient for competitive advantage. c. KSFs are often sufficient, but not necessary for competitive advantage. d. KSFs are both necessary and sufficient for competitive advantage. e. KSFs are often necessary, but not sufficient for competitive advantage.

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

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

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

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

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

Reasons to study operations management include: a. studying how people organize themselves for productive enterprise. b. knowing how goods and services are consumed. c. learning about a costly part of the enterprise. d. understanding what human resource managers do. e. studying how people organize themselves for productive enterprise and learning about a costly part of the enterprise

e. studying how people organize themselves for productive enterprise and learning about a costly part of the enterprise

Productivity measurement is complicated by: a. the competition's output. b. the type of equipment used. c. stable quality. d. the workforce size. e. the fact that precise units of measure are often unavailable.

e. the fact that precise units of measure are often unavailable.