BUS 322 MIDTERM CHAPTER 1
A knowledge society is one that has migrated from work based on knowledge to one based on manual work. True False
FALSE
Customer interaction is often high for manufacturing processes, but low for services. True False
FALSE
Manufacturing now constitutes the largest economic sector in postindustrial societies. True False
FALSE
In order to have a career in operations management, one must have a degree in statistics or quantitative methods. True False
False
Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced. True False
False
Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced. True False
False
All organizations, including service firms such as banks and hospitals, have a production function. True False
TRUE
Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements. True False
TRUE
Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. true false
true
The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. false true
true
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.10% C.15% D.25% E.33%
25%
Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labor productivity will increase by: A.10%. B,20%. C.25%. D.40%. E.50%
25%.
A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it would then be: A. 14.4 covers/hr. B. 24 covers/hr. C. 240 covers/hr. D. 1200 covers/hr. E. 10 covers/hr.
A. 14.4 covers/hr.
Which of the following is the best example of a pure service? A. counseling B. oil change C. heart transplant D. electric Co-Op E. restaurant
A. counseling
All of the following decisions fall within the scope of operations management EXCEPT for: A. creating the company income statement. B. design of goods and services. C. location strategy. D. managing quality. E. human resources and job design.
A. creating the company income statement.
Which of the following tasks within an airline company are related to operations? A. crew scheduling B. international monetary exchange C. sales D. advertising E. accounts payable
A. crew scheduling
Which of the following attributes is most typical of a service? A. production and consumption occur simultaneously B. tangible C. mass production D. consistency E. easy to automate
A. production and consumption occur simultaneously
Which of the following influences layout design? A.inventory requirements B.capacity needs C.personnel levels D.technology E.All of these influence layout decisions.
All of these influence layout decisions.
A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include: A. lenders. B. suppliers. C. owners. D. employees. E. All of these.
All of these.
At Hard Rock Café, tasks that reflect operations or operations management include: A.designing efficient layouts. B.providing meals. C.receiving ingredients. D.preparing effective employee schedules. E.All of these.
All of these.
The "Father of Scientific Management" is: A. Henry Ford. B. Frederick W. Taylor. C. W. Edwards Deming. D. Frank Gilbreth. E. just a figure of speech, not a reference to a person
B. Frederick W. Taylor.
Which of the following is NOT a typical service attribute? A. intangible product B. easy to store C. customer interaction is high D. simultaneous production and consumption E. difficult to resell
B. easy to store
Which of the following fosters specialization and worldwide supply chains? A. more expensive transportation B. instant communication C. economies of scope D. managers with a broad knowledge of many things E. high trade tariffs
B. instant communication
Three commonly used productivity variables are: A. quality, external elements, and precise units of measure. B. labor, capital, and management. C. technology, raw materials, and labor. D. education, diet, and social overhead. E. quality, efficiency, and low cost.
B. labor, capital, and management.
Which of the following is NOT a strategic operations management decision? A. maintenance B. price C. layout design D. quality E. inventory
B. price
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: A. 1.2 covers/hr. B. 2 covers/hr. C. 12 covers/hr. D. 1200 covers/hr. E. 120 covers/hr.
C. 12 covers/hr.
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.
Henry Ford is noted for his contributions to: A. material requirements planning. B. statistical quality control. C. assembly line operations. D. scientific management. E. time and motion studies.
C. assembly line operations.
What is a global network of organizations and activities that supply a firm with goods and services? A. supply tree B. provider network C. supply chain D. vendor network E. vendor tree
C. supply chain
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, V B. I, II, IV C. II, III, V D. I, II, III E. All of these
D. I, II, III
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
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 E. research and development, finance/accounting, and purchasing
D. marketing, production/operations, and finance/accounting
Which of the following is NOT one of the 10 strategic operations management decisions? A. layout strategy B. maintenance C. process and capacity design D. mass customization E. supply chain management
D. mass customization
The total of all outputs produced by the transformation process divided by the total of the inputs is: A. utilization. B. greater in manufacturing than in services. C. defined only for manufacturing firms. D. multifactor productivity. E. single-factor productivity.
D. multifactor productivity.
The field of operations management is shaped by advances in which of the following fields? A. chemistry and physics B. industrial engineering and management science C. biology and anatomy D. information technology E. All of these
E. All of these
Which of the following influences layout design? A. inventory requirements B. capacity needs C. personnel levels D. technology E. All of these influence layout decisions.
E. All of these influence layout decisions.
A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include: Answers: A. lenders. B. suppliers. C. owners. D. employees. E. All of these.
E. All of these.
Reasons to study operations management include: A. studying how people organize themselves for productive enterprise. B. knowing how goods and services are consumed. C. understanding what human resource managers do. D. 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
E. studying how people organize themselves for productive enterprise and learning about a costly part of the enterprise
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.
Sustainable production is giving way to a low-cost focus.
Competition in the 21st century is no longer between companies; it is between supply chains. True False
True
Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives. True False
True
Which of the following would NOT be an operations function in a commercial bank? A. auditing B. teller scheduling C. maintenance D. collection E. check clearing
a. auditing
Which of the following is the best example of a pure service? A.counseling B.oil change C.heart transplant D.electric Co-Op E.restaurant
counseling
Which of the following services is LEAST likely to be unique, i.e., customized to a particular individual's needs? A. dental care B. hairdressing C. legal services D. elementary education E. computer consulting
elementary education
Henry Ford is known as the Father of Scientific Management. true false
false
Which of the following is NOT one of the 10 strategic operations management decisions? A.layout strategy B.maintenance C.process and capacity design D.mass customization E.supply chain management
mass customization
Which of the following attributes is most typical of a service? A. production and consumption occur simultaneously B. tangible C. mass production D. consistency E. easy to automate
production and consumption occur simultaneously
Operations management is applicable: A.mostly to the service sector. B.to services exclusively. C.mostly to the manufacturing sector. D.to all firms, whether manufacturing or service. E.to the manufacturing sector exclusively.
to all firms, whether manufacturing or service.
