Project Operations Management Test 1 (CH 1,2,5,5s,6)
What is a poka-yoke? Give an example.
something that ensures production of goods every time (example: McDonalds fry scoop)
Stakeholders who are affected by the production and marketing of - poor quality products include:
stockholders, employees and customers
A Six Sigma program has how many defects per million? - 6 times the standard deviation - 1000 - 3.4 - 34 - 2700
- 3.4
The service sector makes up approximately what percentage of all jobs in the United States? - 12% - 86% - 66% - 94% - 40%
- 86%
Which of the following is NOT an example of competing on the basis of differentiation? - A firm offers a much broader product line than its competitors do. - A firm designs its smart phone product with unique features. - A movie theater distinguishes itself by offering cinema suites and dine-in options. - A car manufacturer offers the best warranty in the automobile industry. - A firm advertises more than its competitors do.
- A firm advertises more than its competitors do.
Which of the following is an example of competing on the basis of differentiation? - A firm advertises more than its competitors do. - A firm's distribution network routinely delivers its product on time. - A firm manufactures its product with less raw material waste than its competitors do. - A firm offers a much broader product line than its competitors do. - A firm's products are introduced into the market faster than its competitors' products are.
- A firm offers a much broader product line than its competitors do.
Which of the following is the best example of competing on low-cost leadership? - A firm's products are introduced into the market faster than its competitors' products are. - A firm produces its product with less raw material waste than its competitors do. - A firm advertises more than its competitors do. - A firm offers more reliable products than its competitors do. - A firm's research and development department generates many ideas for new products.
- A firm produces its product with less raw material waste than its competitors do.
Which of the following is an example of competing on quick response? - A firm utilizes its capacity more effectively than its competitors do. - A firm offers more reliable products than its competitors do. - A firm advertises more than its competitors do. - A firm produces its product with less raw material waste than its competitors do. - A firm's products are introduced into the market faster than its competitors' products.
- A firm's products are introduced into the market faster than its competitors' products.
Which of the following statements is most accurate? - Approximately half of all outsourcing agreements fail. - Nearly all outsourcing relationships do not last beyond two years. - More than 90% of outsourcing agreements succeed. - Outsourcing is a relatively risk-free activity. - Nearly all U.S. firms that outsourced processes to India have backsourced them.
- Approximately half of all outsourcing agreements fail.
List and discuss three areas that are significant to improving labor productivity.
- Basic Education - Diet - Social Overhead (transportation, etc.)
What is the use of information technology to control machinery? - STEP - CAD - QFD - CAM - DFMA
- CAM
The "Father of Scientific Management" is:just a figure of speech, not a reference to a person. - W. Edwards Deming. - Frederick W. Taylor. - Frank Gilbreth. - Henry Ford.
- Frederick W. Taylor.
Which of the following events occurs mainly during the Globalization Era? - Industry 4.0 - Computer-Aided Design - Gantt Charts - Electronic Data Interchange - Enterprise Resource Planning
- Gantt Charts
What is the circular economy? - It refers to the ups and downs in an economic cycle. - It means that social and environmental sustainability does not exist without economic sustainability. - It refers to how companies remain in business. - It is about keeping and using resources for as long as possible and then recovering and regenerating them to the maximum possible value at the end of service life. - It refers to the resources held in the common.
- It is about keeping and using resources for as long as possible and then recovering and regenerating them to the maximum possible value at the end of service life.
Which of the following is TRUE regarding computer-aided design? - It is the use of computers to interactively design products and prepare engineering documentation. - It results in longer development cycles for virtually all products. - It is an obsolete technology. - It is too expensive to use in most manufacturing and design settings. - It is the use of information technology to control machinery.
- It is the use of computers to interactively design products and prepare engineering documentation.
Bridget's Hamburger Stand uses only 7 ingredients but offers 15 different burgers. This process is known as: - QFD. - Modular design. - Robust design. - CAD. - Value analysis.
- Modular design.
What does UNFCCC stand for? - United National Federation Council on Climate Change - UN Framework Convention on Climate Change - Uniform National Framework Climate Change Code - UN Foundation for the Consequences of Climate Change - UN Federation for Climate Change Cooperation
- UN Framework Convention on Climate Change
"The employee cannot produce products that on average exceed the quality of what the process is capable of producing" expresses a basic philosophy in the writings of: - Joseph M. Juran. - Philip B. Crosby. - W. Edwards Deming. - Armand Feigenbaum. - Vilfredo Pareto
- W. Edwards Deming.
Which of the following typically shows the hierarchy of components, their description, and the quantity of each required to make one unit of a product? - an assembly drawing - a route sheet - an engineering drawing - a bill of material - an assembly chart
- a bill of material
Total quality management emphasizes: - the responsibility of the quality control staff to identify and solve all quality-related problems. - a system where strong managers are the only decision makers. - a process where mostly statisticians get involved. - a commitment to quality that goes beyond internal company issues to suppliers and customers. - ISO 14000 certification.
- a commitment to quality that goes beyond internal company issues to suppliers and customers.
Which of the following statements best characterizes delivery reliability? - a company that delivers faster than its competitors - a company that has a computerized delivery scheduling system - a company that always delivers on the same day of the week - a company that always delivers at the promised time - a company that delivers more frequently than its competitors
- a company that always delivers at the promised time
"Making it right the first time" is: - an unrealistic definition of quality. - a product-based definition of quality. - a manufacturing-based definition of quality. - a user-based definition of quality. - the definition of quality proposed by the American Society for Quality
- a manufacturing-based definition of quality.
Which of the following documents lists the operations necessary to produce the component with the material specified in the bill of material? - an assembly chart - an operations chart - a route sheet - an assembly drawing - an engineering drawing
- a route sheet
The Japanese method of organizing for product design features: - teams. - product managers (champions). - a single organization without subdivision or individual teams. - distinct departments with assigned tasks. - none of these.
- a single organization without subdivision or individual teams.
What refers to looking at a product's life from design to disposal, including all the resources required? - a systems view - carbon footprint - the triple bottom line - the commons - shared value
- a systems view
"Quality lies in the eyes of the beholder" is: - a user-based definition of quality. - a product-based definition of quality. - an unrealistic definition of quality. - the definition of quality proposed by the American Society for Quality. - a manufacturing-based definition of quality.
- a user-based definition of quality.
A strategy is a(n): - set of opportunities in the marketplace. - broad statement of purpose. - simulation used to test various product line options. - plan for cost reduction. - action plan to achieve the mission.
- action plan to achieve the mission.
What technology "builds" products by adding material layer upon layer? - CAM - STEP - replicator - additive manufacturing - virtual reality
- additive manufacturing
Cost cutting in international operations can take place because of: - lower wage scales. - lower indirect costs. - less stringent regulations. - lower taxes and tariffs. - all of the above.
- all of the above.
A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include: - owners. - lenders. - employees. - suppliers. - all of these.
- all of these.
Reasons to study operations management include learning about: - what operations managers do. - a costly part of the enterprise. - how people organize themselves for productive enterprise. - how goods and services are produced. - all of these.
- all of these.
Response-based competitive advantage can be: - flexible response. - quick response. - reliable response. - all of these. - none of these.
- all of these.
Which of the following is an example of an external product development strategy? - new internally developed products - migrations of existing products - enhancements to existing products - alliances - All of these are examples of internal product development strategy.
- alliances
Which of the following shows in schematic form how a product is assembled? - a process sheet - an assembly chart - an engineering drawing - a route sheet - an assembly routing
- an assembly chart
he carbon footprint is defined as a measure of total greenhouse gas emissions caused directly or indirectly by what four things? - an organization, a product, an event, or a person - a factory, an office building, a warehouse, or a truck - an organization, a product, a school, or a person - a product, an event, a person, or a school - an organization, a government, a product, or a person
- an organization, a product, an event, or a person
A restaurant kitchen contains a wall poster that shows, for each sandwich on the menu, a sketch of the ingredients and how they are arranged to make the sandwich. This is an example of a(n): - route sheet. - bill of material. - assembly drawing. - work order. - assembly chart.
- assembly drawing.
Henry Ford is noted for his contributions to: - statistical quality control. - time and motion studies. - material requirements planning. - assembly line operations. - scientific management.
- assembly line operations.
When should product strategy focus on forecasting capacity requirements? - at the growth stage of the product life cycle - at the maturity stage of the product life cycle - at the saturation stage of the product life cycle - at the introduction stage of the product life cycle - at the decline stage of the product life cycle
- at the growth stage of the product life cycle
Which of the following would NOT be an operations function in a commercial bank? - auditing - collection - maintenance - check clearing - teller scheduling
- auditing
Which of the following has made the LEAST progress along its product life cycle? - virtual reality - Xbox One - autonomous vehicles - Boeing 787 - video physical rentals
- autonomous vehicles
The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as: - copycatting. - continuous improvement. - employee empowerment. - benchmarking. - patent infringement.
- benchmarking.
The European Union Emissions Trading System works on what principle? - Thatcher's Theory of the Commons - tax the richer companies more to pay for pollution control - pollute-and-pay - cap-and-trade - socialism
- cap-and-trade
The measure of total greenhouse gas emissions caused directly or indirectly by an organization, a product, an event, or a person is known as: - radioactive decay. - ozone factor. - carbon footprint. - pollution index. - nitrogen footprint.
- carbon footprint.
What type of supply chains consider forward and reverse product flows over the entire life cycle? - closed-loop - two-pronged - end-to-end - life cycle - socially responsible
- closed-loop
The ability of an organization to produce goods or services that have some uniqueness in their characteristics is: - competing on differentiation. - mass production. - competing on quality. - time-based competition. - competing on productivity.
- competing on differentiation.
Additive manufacturing (3-D printing) is an extension of: - robust design. - quality function deployment. - concurrent engineering. - modular design. - computer-aided design.
- computer-aided design.
The philosophy of zero defects is: an ultimate goal; in practice, 1 to 2% defects is acceptable. - unrealistic. - prohibitively costly. - consistent with the commitment to continuous improvement. - the result of Deming's research.
- consistent with the commitment to continuous improvement.
PDCA is most often applied with regard to which aspect of TQM? - employee empowerment - JIT - Six Sigma - benchmarking - continuous improvement
- continuous improvement
Kaizen is a Japanese term meaning: - a fishbone diagram. - setting standards. - continuous improvement. - just-in-time (JIT). - a foolproof mechanism.
- continuous improvement.
Outsourcing manufacturing is also known as: - contract manufacturing. - hollow manufacturing. - license manufacturing. - sublease manufacturing. - concurrent manufacturing.
- contract manufacturing.
What does CSR stand for? - corporate society ratio - corporate social responsibility - critical sustainability ratio - consumer sustainability requirements - corporate sustainability record
- corporate social responsibility
Which of the following is the best example of a pure service? - electric Co-Op - oil change - counseling - restaurant - heart transplant
- counseling
All of the following decisions fall within the scope of operations management EXCEPT for: - creating the company income statement. - managing quality and statistical process control. - location strategies.design of goods and services. - human resources, job design and work measurement.
- creating the company income statement.
Which of the determinants of service quality involves having the customer's best interests at heart? - responsiveness - tangibles - credibility - courtesy - access
- credibility
Payoffs, alternatives, and expected monetary values are terms associated with: - make-or-buy analysis. - decision trees. - virtual reality. - quality function deployment. - product life-cycle management.
- decision trees.
Cost minimization is an appropriate strategy in which stage of the product life cycle? - introduction - retirement - adolescence - growth - decline
- decline
The fundamental purpose of an organization's mission statement is to: - generate good public relations for the organization. - define the organization's purpose in society. - create a good human relations climate in the organization. - define the operational structure of the organization. - define the functional areas required by the organization.
- define the organization's purpose in society.
The goal of inspection is to: - correct deficiencies in products. - add value to a product or service. - detect a bad process immediately. - correct system deficiencies. - all of these
- detect a bad process immediately.
Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to: - determine whether any of the organization's stakeholders are being wronged by poor quality products. - gain ISO 9000 certification for the organization. - obtain a product safety certificate from the Consumer Product Safety Commission. - have the organization's legal staff write disclaimers in the product instruction booklets. - compare the cost of product liability to the external failure cost.
- determine whether any of the organization's stakeholders are being wronged by poor quality products.
Transition to production refers to the act of moving a product to production from what? - the supplier - the wholesaler - inventory - the market - development
- development
An engineering drawing shows the: - cost, materials, tolerances, and lead-time for a component. - materials, finishes, machining operations, and dimensions of a component. - cost, dimensions, and machining operations for a component. - dimensions, tolerances, materials, and finishes of a component. - dimensions, tolerances, cost, and sales or use volume of a component.
- dimensions, tolerances, materials, and finishes of a component.
Value analysis takes place: - when the product is selected and designed. - during the production process when it is clear that the new product is a success. - when the product is first conceived. - when the product cost is very low. - during the initial stages of production when something needs to be done to assure product success.
- during the production process when it is clear that the new product is a success.
Group technology requires that: - the final products be standardized. -all bills of material be prepared using the same format. - engineering change notices be linked to each of the bills of material and engineering notices. - a specific series of engineering drawings be prepared. - each component be identified by a coding scheme that specifies size, shape, and the type of processing.
- each component be identified by a coding scheme that specifies size, shape, and the type of processing.
Which of the following is NOT a typical service attribute? - easy to store - difficult to resell - intangible product - simultaneous production and consumption - customer interaction is high
- easy to store
Which of the following would likely cause a change in market opportunities based upon levels of income and wealth? - legal change - sociological and demographic change - technological change - economic change - political change
- economic change
Which of the following refers to how companies remain in business? - economic sustainability - sustainability - corporate social responsibility - carbon footprint - closed-loop supply chains
- economic sustainability
Within environmental regulation, the "cap-and-trade" principle produces a market that allows companies to purchase and sell what? - space in landfills - carbon reduction sweepers - emission allowances - hats that promote environmental awareness - shares of stock in renewable energy sources
- emission allowances
Building high-morale organizations and building communication networks that include employees are both elements of: - ISO 9000 certification. - Six Sigma certification. - Taguchi methods. - employee empowerment. - the tools of TQM.
- employee empowerment.
Corporate social responsibility involves managerial decision making that considers what three impacts? - environmental, legal, and financial - environmental, legal, and societal - societal, legal, and financial - educational, environmental, and societal - environmental, societal, and financial
- environmental, societal, and financial
Which of the four major categories of quality costs is particularly hard to quantify? - external failure costs - internal failure costs - appraisal costs - prevention costs - None is hard to quantify.
- external failure costs
Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a: - poka-yoke. - Pareto chart. - check sheet. - flowchart. - Taguchi map
- flowchart.
The term maquiladora is most synonymous with: - tax breaks provided by some South American countries to other South American countries. - areas that do not meet U.S. standards for workplace safety and pollution. - home-based or cottage industry. - North Korean forced labor camps. - free trade zones in Mexico.
- free trade zones in Mexico.
Which of the following environmental factors has not contributed to Microsoft's changing strategy? - Google - faster processors - global warming - the Internet - security issues
- global warming
What identifies components by a coding scheme that specifies size, shape, and the type of processing (such as size)? - engineering drawing - assembly chart - assembly drawing - bill of material - group technology
- group technology
Porter's Five Forces Model is used to evaluate competition based on which 5 aspects? - immediate rivals, potential entrants, customers, suppliers, and substitute products - research and development, cost, legal regulations, suppliers, customers - immediate rivals, potential entrants, cost, substitute products, and legal regulations - cost, legal regulations, advertising effectiveness, potential entrants, and immediate rivals - potential entrants, customers, suppliers, legal regulations, and cost
- immediate rivals, potential entrants, customers, suppliers, and substitute products
Which of the following is NOT a service design technique used to increase service efficiency? - limit the options - modularization - increase customer interaction - delay customization - automation
- increase customer interaction
Which of the following fosters specialization and worldwide supply chains? - high trade tariffs - instant communication - more expensive transportation - economies of scope - managers with a broad knowledge of many things
- instant communication
A SWOT analysis determines: - internal strengths and weaknesses and external opportunities and threats. - external strengths and weaknesses and internal opportunities and threats. - internal strengths and opportunities and external weaknesses and threats. - internal strengths and weaknesses and internal opportunities and threats. - external strengths and weaknesses and external opportunities and threats.
- internal strengths and weaknesses and external opportunities and threats.
Which of the international operations strategies involves low-cost reductions and low local responsiveness? - multidomestic strategy - global strategy - international strategy - transnational strategy - worldwide strategy
- international strategy
Which of the international operations strategies uses import/export or licensing of existing products? - transnational strategy - global strategy - international strategy - multidomestic strategy - worldwide strategy
- international strategy
In which stage of the product life cycle should product strategy focus on process modifications as the product is being "fine-tuned" for the market? - decline - incubation - maturity - growth - introduction
- introduction
A product's life cycle is divided into four stages, which are: - introduction, growth, saturation, and maturity. - introduction, maturity, saturation, and decline. - incubation, growth, maturity, and decline. - introduction, growth, stability, and decline. - introduction, growth, maturity, and decline.
- introduction, growth, maturity, and decline.
Experience differentiation: - isolates the consumer from the delivery of a service. - is an extension of product differentiation in the service sector. - attempts to make the service experience different for every single customer. - keeps consumers from becoming active participants in the service. - uses only the consumer's senses of vision and sound.
- is an extension of product differentiation in the service sector.
Three commonly used productivity variables are: - quality, external elements, and precise units of measure. - quality, efficiency, and low cost. - technology, raw materials, and labor. - education, diet, and social overhead. - labor, capital, and management.
- labor, capital, and management.
What refers to analysis of environmental impacts of products from the design stage through end-of-life? - closed-loop supply chain analysis - economic sustainability - carbon footprint - life cycle assessment - ISO 14000
- life cycle assessment
With reference to cultural and ethical issues, the World Trade Organization has: - played little role in addressing cultural and ethical issues among nations. - made progress in providing equal protection of intellectual property among nations. - eliminated slave labor and child labor. - eliminated bribery. - phased out all trade and tariff barriers between the United States and Mexico.
- made progress in providing equal protection of intellectual property among nations.
All of the following costs are likely to decrease as a result of better quality EXCEPT: - inspection costs. - scrap costs. - customer dissatisfaction costs. - maintenance costs. - warranty and service costs.
- maintenance costs.
Which productivity variable has the greatest potential to increase productivity? - management - energy - capital - labor - globalization
- management
Reducing the complexity of a product and improving a product's maintainability are activities of: - organizing for product development. - design for destruction (DFD). - product lifecycle management (PLM). - manufacturability and value engineering. - product-by-value analysis.
- manufacturability and value engineering.
Which of the following are the primary functions of all organizations? - research and development, finance/accounting, and purchasing - production/operations, marketing, and human resources - sales, quality control, and production/operations - marketing, human resources, and finance/accounting - marketing, production/operations, and finance/accounting
- marketing, production/operations, and finance/accounting
Which of the following is NOT one of the 10 strategic operations management decisions? - maintenance - process and capacity strategies - supply chain management - mass customization - layout strategies
- mass customization
At which stage of the product life cycle is product strategy likely to focus on improved cost control? - introduction - inflation - maturity - saturation - growth
- maturity
Standardization is an appropriate strategy in which stage of the product life cycle? - introduction - retirement - decline - maturity - growth
- maturity
Which of the following is a service design technique used to increase service efficiency? - early customization - expand the options - modularize - all of these - none of these
- modularize
Which of the international operations strategies uses the existing domestic model globally? - worldwide strategy - global strategy - transnational strategy - multidomestic strategy - international strategy
- multidomestic strategy
Which of the following product development strategies has the highest product development risk? - alliances - joint ventures - acquiring the developer - purchasing technology - new internally developed products
- new internally developed products
Eli Whitney, in the ________, provided the foundations for ________ in operations management. - U.S. Army; logistics - 1920s; statistical sampling - United Kingdom; mass production - 1890s; queuing theory - nineteenth century; interchangeable parts
- nineteenth century; interchangeable parts
Pareto charts are used to: - outline production schedules. - show the range of values of a measurement and the frequency with - which each value occurs. - show material flow. - identify inspection points in a process. - organize errors, problems, or defects.
- organize errors, problems, or defects.
What is the practice of transferring a firm's activities that have traditionally been internal to external suppliers? - outsourcing - backsourcing - offshoring - nearshoring - farshoring
- outsourcing
Which of the following is NOT an advantage of outsourcing? - gaining outside expertise - cost savings - accessing outside technology - improving operations and service - outsourcing core competencies
- outsourcing core competencies
One way to think of sustainability is to consider the systems necessary to support the triple bottom line of the three Ps, which are: - price, promotion, and profit. - people, places, and products. - people, planet, and profit. - price, promotion, and product. - people, pollution, and profit.
- people, planet, and profit.
The purpose of NAFTA is to: - provide fair and equitable tariff rates for trade between the United States, Canada, and Mexico. - phase out all trade and tariff barriers between the United States, Canada, and Mexico. - curb illegal immigration from Mexico to the United States. - substitute cheap labor in Mexico for expensive labor in the United States. - phase out all trade and tariff barriers between North America and South America.
- phase out all trade and tariff barriers between the United States, Canada, and Mexico.
Advantages of outsourcing do NOT include: - accessing outside technology. - potential creation of future competition. - cost savings. - gaining outside expertise. - maintaining a focus on core competencies.
- potential creation of future competition.
Which of the following is NOT an element of the management process? - pricing - staffing - leading - controlling - planning
- pricing
Which of the following is one of the 10 strategic operations management decisions? - debt/equity ratio - depreciation policy for tax returns - process and capacity strategies - advertising - pricing
- process and capacity strategies
What is the most critical phase in product life cycle assessment? - shipping - production - purchasing - disposal - product design
- product design
The analysis tool that lists products in descending order of their individual dollar contribution to the firm is: - decision tree analysis. - breakeven analysis. - product-by-value analysis. - product life cycle analysis. - Pareto analysis.
- product-by-value analysis.
Which of the following attributes is most typical of a service? - production and consumption occur simultaneously - easy to automate - consistency - tangible - mass production
- production and consumption occur simultaneously
3-D printing has proven to be particularly advantageous for: - quality function deployment. - computer-aided design. - modular design. - prototypes, spares, and difficult-to-replace parts. - robust design.
- prototypes, spares, and difficult-to-replace parts.
Which of the following did the authors NOT suggest as a reason for globalizing operations? - attract and retain global talent - pursue stockholder approval ratings - reduce costs - understand markets - improve the supply chain
- pursue stockholder approval ratings
Companies can improve the triple bottom line with sustainability by minimizing what four things? - raw material, transport, manufacture, and disposal - people, planet, profit, and pollution - lawsuits, advertisements, coupons, and layoffs - pollution, carbon footprint, profit, and people - raw material, energy, water, and waste
- raw material, energy, water, and waste
Which of the following does NOT represent a valid reason for globalizing operations? - reduce costs - understand markets - improve the supply chain - attract and retain global talent - reduce responsiveness
- reduce responsiveness
A process sheet is a type of: - work order. - route sheet. - assembly chart. - assembly drawing. - bill of material.
- route sheet.
The three major elements of the product decision are: - selection, definition, and design. - goods, services, and hybrids. - cost, differentiation, and speed of response. - strategy, tactics, and operations. - legislative, judicial, and executive.
- selection, definition, and design.
A route sheet provides a(n): - instruction to make a given quantity of a particular item. - sequence of operations necessary to produce the component. - set of detailed instructions about how to perform a task. - schematic showing how the product is assembled. - exploded view of the product.
- sequence of operations necessary to produce the component.
What refers to training and empowering frontline workers to solve a problem immediately? - kaizen - benchmarking - just-in-time - service recovery - poka-yoke
- service recovery
A firm can effectively use its operations function to yield competitive advantage through all of the following EXCEPT: - customization of the product. - constant innovation of new products. - maintaining a variety of product options. - setting equipment utilization goals below the industry average. - speed of delivery.
- setting equipment utilization goals below the industry average.
Which of the following refers to developing policies and practices that enhance the competitiveness of an organization while advancing the economic and social conditions of the community in which it operates? - the commons - shared value - carbon footprint - the triple bottom line - a systems view
- shared value
An assembly drawing: - provides detailed instructions on how to perform a given task. - shows, in schematic form, how the product is assembled. - lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material. - describes the dimensions and finish of each component. - shows an exploded view of the product.
- shows an exploded view of the product.
An assembly chart: - provides detailed instructions on how to perform a given task. - describes the dimensions and finish of each component. - lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material. - shows an exploded view of the product. - shows graphically how the product is assembled.
- shows graphically how the product is assembled.
A result of concurrent engineering in product design is: - higher costs. - lower quality. - less customer demand. - speedier product development. - all of these.
- speedier product development.
What term is given to those individuals with a vested interest in an organization, including customers, distributors, suppliers, owners, lenders, employees, and community members?- stockholders - alumni - investors - vestors - stakeholders
- stakeholders
Walter Shewhart is listed among the important people of operations management because of his contributions to: - statistical quality control. - just-in-time inventory methods.information technology. - assembly line production. - measuring productivity in the service sector.
- statistical quality control.
Outsourcing is simply an extension of the long-standing practice of: - e-procurement. - subcontracting. - importing. - postponement. - exporting.
- subcontracting.
What is a global network of organizations and activities that supply a firm with goods and services? - vendor network - supply tree - supply chain - provider network - vendor tree
- supply chain
What refers to meeting the needs of the present without compromising the ability of future generations to meet their needs? - carbon footprint - corporate social responsibility - sustainability - closed-loop supply chains - economic sustainability
- sustainability
Resources held by the public are also said to be held in what? - contempt - the system - the common - escrow - perpetuity
- the common
Productivity measurement is complicated by: - stable quality. - the workforce size. - the type of equipment used. - the competition's output. - the fact that precise units of measure are often unavailable.
- the fact that precise units of measure are often unavailable.
A graphic technique for defining the relationship between customer desires and product (or service) is: - the house of quality. - product lifecycle management. - modular design. - the moment of truth. - the assembly drawing.
- the house of quality.
An operations manager is NOT likely to be involved in: - the design of goods and services to satisfy customers' wants and needs. - the quality of goods and services to satisfy customers' wants and needs.maintenance schedules. - the identification of customers' wants and needs. - work scheduling to meet the due dates promised to customers.
- the identification of customers' wants and needs.
Operations management is applicable: - to services exclusively. - to the manufacturing sector exclusively. - to all firms, whether manufacturing or service. - mostly to the service sector. - mostly to the manufacturing sector.
- to all firms, whether manufacturing or service.
Based on his 14 Points, Deming is a strong proponent of: - looking for the cheapest supplier. - training and knowledge. - inspection at the end of the production process. - an increase in numerical quotas to boost productivity. - all of these.
- training and knowledge.
Which of the international operations strategies involves high cost reductions and high local responsiveness? - international strategy - multidomestic strategy - global strategy - worldwide strategy - transnational strategy
- transnational strategy
Three broad categories of definitions of quality are: - user based, manufacturing based, and product based. - low-cost, response, and differentiation. - product quality, service quality, and organizational quality. - internal, external, and prevention. - Pareto, Shewhart, and Deming.
- user based, manufacturing based, and product based.
Products are more "environmentally friendly" when they are made: - according to OSHA standards. - using cheaper materials. - more difficult to disassemble. - where environmental regulations are lax. - using less energy.
- using less energy.
A document for production that gives the instruction to make a given quantity of a particular item, usually to a given schedule, is a(n): - bill of information. - assembly chart. - work order. - route sheet. - value analysis.
- work order.
Which 3 of Deming's 14 points do you think are most critical to the success of a TQM program? Why?
1. Build Quality into the product 2. Continuously improve product 3. Break down barriers between departments
List and discuss the 4 costs of quality.
1. Prevention Cost (reducing defects, etc.) 2. Appraisal Cost (evaluating products, etc) 3. Internal Failure Cost (production errors) 4. External Failure Cost (errors after delivery)
Identify the five steps of DMAIC.
D-Define the problem M-Measure process performance A-Analyze root cause of variation I-Improve process performance by addressing/eliminating cause C-Control improved process & future performances
What is the purpose of using a Pareto chart for a given problem?
Decide - categories for items - appropriate measurement - period chart will cover - collect date and record category each time - collect measurement for each category
Many firms approach corporate social responsibility through the concept of "shared value." What is meant by "shared value"?
Make policies & practices increase the competitiveness of the organization while bettering the economic and social conditions.
Closed loop supply chains
Manufacturer makes product, ships it to consumer, then hope the consumer will return it once they no longer want it, then become part of manufacturer's supply chain.
What is a knowledge society?
Post-industrial societies went from manual work to technical information processing.
Discuss the circular economy.
Resources kept & used as long as possible
Social accounting can measure what types of things?
Social accounting can include brand equity, management talent, human capital development and benefits, research and development, productivity, philanthropy, and taxes paid.
Philip Crosby said that quality is free. Why?
Tradeoff between good quality and poor quality. Good quality should be done right the first time
One study found that companies with the highest levels of quality are how many times more productive than their competitors with the lowest quality levels? - 2 - 3 - 4 - 5 - None of the above because quality has no impact on productivity (units/labor hr.).
- 5
Explain how just-in-time processes relate to the quality of an organization's outputs.
- Cut cost of quality - Improve quality - Better quality means less inventory
List and discuss five strategic operations management decisions.
- Design of Goods & Services - Supply Chain Management - Inventory Management - Location Strategies - Scheduling
What are some of the ethical and social challenges faced by operations managers?
- Developing safe, high quality green products - Honor stakeholder commitments - Train, ReTrain, and motivate employees in a SAFE workplace
Who was the person most responsible for popularizing interchangeable parts in manufacturing? - Frederick W. Taylor - Whitney Houston - Lillian Gilbreth - Henry Ford - Eli Whitney
- Eli Whitney
Which of the following statements is TRUE? - Crosby defined quality as fitness for use. - Juran coined the term zero defects. - Juran wrote the 14 points for implementing quality improvement. - Feigenbaum's work in how people learn from each other's successes led to the field of cross-functional teamwork. - Deming laid out 40 steps to quality improvement process in his 1961 book.
- Feigenbaum's work in how people learn from each other's successes led to the field of cross-functional teamwork.
Which of the following statements is TRUE? - Corporate mission is shaped by functional strategies. - Functional area missions are merged to become the organizational mission. - External conditions are shaped by corporate mission. - Corporate strategy is shaped by functional strategies. - Functional strategies are shaped by corporate strategy.
- Functional strategies are shaped by corporate strategy.
Internet of Things is associated with which operations management time period? - Globalization Focus - Quality Focus - Customization Focus - Cost Focus. - Just-In-Time Focus
- Globalization Focus
What is a set of quality standards developed by the International Organization for Standardization? - IOS 2009 - Six Sigma - Deming Prize - Malcolm Baldrige National Quality Award - ISO 9000
- ISO 9000
Explain how improving quality can lead to reduced costs.
- Increases sales & reduce cost - Improve reputation
A fish-bone chart is also known as a(n): - Scatter diagram. - Ishikawa diagram. - poka-yoke diagram. - Taguchi diagram. - Kaizen diagram.
- Ishikawa diagram.
List and discuss some reasons to study operations management.
- One of three major functions - Want to know how good/services produces - Understand what OM do - Costly part of organization
The process improvement technique that sorts the vital few from the trivial many is: - benchmarking. - Deming analysis. - Taguchi analysis. - Yamaguchi analysis. - Pareto analysis.
- Pareto analysis.
"Quality Is Free," meaning that the costs of poor quality have been understated, is the work of: - Armand Feigenbaum. - Philip B. Crosby. - Crosby, Stills, and Nash. - Joseph M. Juran. - W. Edwards Deming.
- Philip B. Crosby.
PDCA, developed by Shewhart, stands for which of the following? - Prepare-Develop-Create-Assess - Problem-Do-Continue-Act - Plan-Do-Check-Act - Problem-Develop Solution-Check-Act - Plan-Develop-Check-Accept
- Plan-Do-Check-Act
How do services differ from goods?
- Produced and consumed simultaneously - Intangible - Cannot be stores - Difficult to standardize
What are some measurement problems when measuring productivity?
- Products can't always be measured exactly - Services are hard to measure
What is a popular measurement scale for service quality that compares service expectations with service performance? - COQ - SPC - SERVQUAL - TQM - KAIZEN
- SERVQUAL
Which of the following statements about challenges in operations management is FALSE? - Operations managers are outsourcing and building long-term partnerships with critical players in the supply chain. - The goal of mass customization is to produce customized products, whenever and wherever needed. - Rapid product development is partly the result of shorter product cycles. - Sustainable production is being replaced by a low-cost focus. - Local or national focus is being replaced by global focus.
- Sustainable production is being replaced by low-cost focus.
A manager tells her production employees, "It's no longer good enough that your work falls anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of: - Taguchi concepts. - internal benchmarking. - ISO 9000. - Six Sigma. - process control charts.
- Taguchi concepts.
Which of the following activities takes place most immediately once the mission has been developed? - The functional areas develop their supporting missions. - Operational tactics are developed. - The firm develops alternative or back-up missions in case the original mission fails. - The functional areas develop their functional area strategies. - The ten OM decision areas are prioritized.
- The functional areas develop their supporting missions.
Which of the following statements about organizational missions is FALSE? - They provide guidance for functional area missions. - They indicate what a company intends to contribute to society. - They define a company's reason for existence. - They reflect a company's purpose. - They are formulated after strategies are known.
- They are formulated after strategies are known.
Who among the following is associated with contributions to quality control in operations management? - Frank Gilbreth - Henry Ford - W. Edwards Deming - Henri Fayol - Charles Babbage
- W. Edwards Deming
According to the authors, which of the following strategic concepts allow firms to achieve their missions? - distinctive competency, cost leadership, and experience - differentiation, distinctive competency, quality leadership, and capacity - differentiation, cost leadership, and response - productivity, efficiency, and quality leadership - differentiation, quality leadership, and response
- differentiation, cost leadership, and response
Poka-yoke is the Japanese term for: - fishbone diagram. - card. - foolproof. - continuous improvement. - just-in-time production.
- foolproof.
The marketing function is concerned with: - producing goods or providing services. - securing monetary resources. - procuring materials, supplies, and equipment. - building and maintaining a positive image. - generating the demand for the organization's products or services.
- generating the demand for the organization's products or services.
Which of the following OM strategies/issues should a firm with a product in the maturity stage of its life cycle be LEAST concerned with at the present time? - cost-cutting - standardization - increase capacity - long production runs - fewer rapid product changes
- increase capacity
Current challenges in operations management include all of the following EXCEPT: - mass customization. - lean operations. - increased communication cost. - sustainability. - rapid product development.
- increased communication cost.
The total of all outputs produced by the transformation process divided by the total of the inputs is: - multifactor productivity. - single-factor productivity. - greater in manufacturing than in services. - utilization. - defined only for manufacturing firms.
- multifactor productivity.
What are the five elements in the management process? - organize, plan, control, staff, and manage - plan, organize, staff, lead, and control - plan, lead, organize, manage, and control - accounting, finance, marketing, operations, and management - plan, direct, update, lead, and supervise
- plan, organize, staff, lead, and control
Which of the following is NOT a strategic operations management decision? - layout - price - maintenance - inventory - quality
- price
The purchasing function is concerned with: - producing goods or providing services. - generating the demand for the organization's products or services. - securing monetary resources. - building and maintaining a positive image. - procuring materials, supplies, and equipment.
- procuring materials, supplies, and equipment.
Which of the following tasks within a manufacturing firm is performed by the operations function? - quality assurance and control - stock issue - market research - borrowing funds - sales promotion
- quality assurance and control
According to the manufacturing-based definition of quality: - quality is the degree to which a specific product conforms to standards. - even though quality cannot be defined, you know what it is. - quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost. - quality depends on how well the product fits patterns of consumer preferences. - quality lies in the eyes of the beholder.
- quality is the degree to which a specific product conforms to standards.
Costs of dissatisfaction, repair costs, and decreased future demand are elements of cost in the: - quality loss function. - Ishikawa diagram. - ISO 9000 quality cost calculator. - Pareto chart. - process chart.
- quality loss function.
Which of the determinants of service quality involves performing the service right the first time? - responsiveness - access - courtesy - credibility - reliability
- reliability
The service sector has lower productivity improvements than the manufacturing sector because: - service sector productivity is hard to measure. - the service sector uses less skilled labor than manufacturing. - the quality of output is lower in services than manufacturing. - the service sector is often easy to mechanize and automate. - services usually are labor-intensive.
- services usually are labor-intensive.
Marketing issues such as advertising, image, and promotion are important to quality because: - the intangible attributes of a product (including any accompanying service) may not be defined by the consumer. - they make the product seem more valuable than it really is. - they educate consumers on how to use the product. - they raise expenses and therefore decrease profitability. - they define for consumers the tangible elements of a service.
- the intangible attributes of a product (including any accompanying service) may not be defined by the consumer.
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? - theory of offshoring - theory of core competencies - theory of outsourcing - theory of comparative advantage - theory of competitive advantage
- theory of comparative advantage
Which of the following has progressed the FURTHEST along its product life cycle? - video physical rentals - Xbox One - virtual reality - Boeing 787 - autonomous vehicles
- video physical rentals
What are the five reasons productivity is difficult to improve in the service sector?
1. Labor Intensive 2. Focused on unique individual attributes 3. Intellectual task performed by professionals 4. Difficult to mechanize/automate 5. Difficult to evaluate for quality
List and discuss the three basic functions of a firm.
1. Marketing/Sales 2. POM 3. Finance/Accounting
A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. To analyze trends or patterns in these returns, she has organized these complaints into a small number of sources or factors. This is most closely related to the ________ tool of TQM. - process control chart - histogram - scatter diagram - quality loss function - cause-and-effect diagram
cause-and-effect diagram
