DSOM Chapter 1

40. Business organizations consist of three major functions which, ideally: A. support one another. B. are mutually exclusive. C. exist independently of each other. D. function independently of each other. E. do not interface with each other.

a

68. Two widely used metrics of variation are the __________ and the _________. A. mean; standard deviation B. productivity ratio; correlation C. standardized mean; assignable deviation D. randomized mean; standardized deviation E. normal distribution; random variation

a

71. Which of the following refers to service and production processes that use resources in ways that do not harm ecological systems? A. sustainability B. supportability C. marketability D. perishability E. transportability

a

"Value added" by definition is always a positive number since "added" implies increases. True False

f

A systems approach means that we concentrate on efficiency within a subsystem and thereby assure overall efficiency. True False

f

Assembly lines achieved productivity but at the expense of standard of living. True False

f

Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used. True False

f

Goods-producing organizations are not involved in service activities. True False

f

Managers should most often rely on quantitative techniques for important decisions since quantitative approaches result in more accurate decisions. True False

f

Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials. True False

f

Most people encounter operations only in profit-making organizations. True False

f

Operations management and marketing are the two functional areas that exist to support activities in other functions such as accounting, finance, IT, and human resources. True False

f

Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services. t/f

f

Operations managers, who usually use quantitative approaches, are not really concerned with ethical decision making. True False

f

Operations, marketing, and finance function independently of each other in most organizations. True False

f

Service operations require additional inventory because of the unpredictability of consumer demand. True False

f

Special-purpose technology is a common way of offering increased customization in manufacturing or services without taking on additional labor costs. True False

f

The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities. True False

f

The use of models will guarantee the best possible decisions. True False

f

The word "technology" is used only to refer to "information technology." True False

f

Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nations. t/f

t

One concern in the design of production systems is the degree of standardization. True False

t

People who work in the field of operations should have skills that include both knowledge and people skills. True False

t

Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom-made parts. True False

t

Service involves a much higher degree of customer contact than manufacturing. True False

t

Service often requires greater labor content, whereas manufacturing is more capital intensive. True False

t

The Pareto phenomenon is one of the most important and pervasive concepts that can be applied at all levels of management. True False

t

The greater the degree of customer involvement, the more challenging the design and management of operations. True False

t

The optimal solutions produced by quantitative techniques should always be evaluated in terms of the larger framework. True False

t

The value of outputs is measured by the prices customers are willing to pay for goods or services. True False

t

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management. A. outsourcing; supply chain B. offshoring; lean C. downsizing; total quality D. optimizing; inventory E. internationalization; intercultural

a

Which is not an area of significant difference between manufacturing and service operations? A. cost per unit B. uniformity of output C. labor content of jobs D. customer contact E. measurement of productivity

a

36. Managing the supply chain has become more important as a result of firms increasing their levels of: A. overtime. B. outsourcing. C. marketing. D. promotions. E. shipping.

b

58. The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the: A. Irwin phenomenon. B. Pareto phenomenon. C. Stevenson phenomenon. D. Tellier phenomenon. E. Adam Smith phenomenon.

b

Manufacturing work sent to other countries is called: A. downsizing. B. outsourcing. C. internationalization. D. vertical integration. E. entrepreneurship.

b

Marketing depends on operations for information regarding: A. productivity. B. lead time. C. cash flow. D. budgeting. E. corporate intelligence.

b

The responsibilities of the operations manager are: A. planning, organizing, staffing, procuring, and reviewing. B. planning, organizing, staffing, directing, and controlling. C. forecasting, designing, planning, organizing, and controlling. D. forecasting, designing, operating, procuring, and reviewing. E. designing and operating.

b

35. Knowledge about challenges specific to the operations function can help marketing personnel to judge how _____________ new product designs will be. A. marketable B. segmentable C. manufacturable D. measurable E. nameable

c

38. Operations management involves continuous decision making; hopefully most decisions made will be: A. redundant. B. minor in nature. C. informed. D. quantitative. E. qualitative.

c

39. A "product package" consists of: A. the exterior wrapping. B. the shipping container. C. a combination of goods and services. D. goods if a manufacturing organization. E. customer relations if a service organization.

c

49. Knowledge skills usually don't include: A. process knowledge. B. accounting skills. C. communication skills. D. global knowledge. E. financial skills.

c

55. Which of the following most involves coordinating the activities among all the elements of the business? A. pollution control B. quality management C. supply chain management D. competition from foreign manufacturers E. technological change

c

56. Farming is an example of: A. an obsolete activity. B. a virtual organization. C. nonmanufactured goods. D. a growth industry. E. customized manufacturing.

c

59. The process of comparing outputs to previously established standards to determine if corrective action is needed is called: A. planning. B. directing. C. controlling. D. budgeting. E. disciplining.

c

61. Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision makers to consider ______________ in response to the ___________. A. flexibility; pressure to be more efficient B. offshoring; need to promote domestic production C. sustainability; threat of global warming D. technology; impact of random variation E. forecasting; stabilization of demand

c

Dealing with the fact that certain aspects of any management situation are more important than others is called: A. analysis of trade-offs. B. sensitivity analysis. C. recognition of priorities. D. analysis of variance. E. decision table analysis.

c

Product design and process selection are examples of _______ decisions. A. financial B. tactical C. system design D. system operation E. forecasting

c

Technology choices seldom affect: A. costs. B. productivity. C. union activity. D. quality. E. flexibility.

c

Which of the following does not relate to system design? A. altering the system capacity B. location of facilities C. inventory management D. selection and acquisition of equipment E. physical arrangement of departments

c

Which one of the following would not generally be classified under the heading of transformation? A. assembling B. teaching C. staffing D. farming E. consulting

c

37. Which of the following would tend to increase the importance of supply chain management? A. increased supply chain stability B. lower levels of outsourcing C. reduced competitive pressures D. increased globalization E. greater emphasis on local markets

d

63. Which of the following is not an ongoing trend in manufacturing? A. globalization B. quality improvement C. flexibility and agility D. mass production for greater economies of scale E. technological advances

d

64. Which of the following is not a benefit of using models in decision making? A. They provide a standardized format for analyzing a problem. B. They serve as a consistent tool for evaluation. C. They are easy to use and less expensive than dealing with the actual situation. D. They force the decision maker to take into account qualitative issues such as personalities and emotions. E. They offer insights into fundamental issues at play in a decision-making setting.

d

69. Which of the following statements about variation is false? A. Variation prevents a production process from being as efficient as it can be. B. Some variation can be prevented. C. Variation can either be assignable or random. D. Any variation makes a production process less productive. E. Random variation generally cannot be influenced by managers.

d

72. Which of the following principles emphasizes that actions should make the community as a whole better off? A. The Rights Principle B. The Fairness Principle C. The Virtue Principle D. The Common Good Principle E. The Utilitarian Principle

d

Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function. A. operation B. marketing C. purchasing D. finance E. internal audit

d

If one organization is better able than most to respond to changes in demands or opportunities, we say that organization exhibits higher: A. sustainability. B. efficiency. C. productivity. D. agility. E. marketability.

d

Measurements taken at various points in the transformation process for control purposes are called: A. plans. B. directions. C. controls. D. feedback. E. budgets.

d

Some companies attempt to maximize the revenue they receive from fixed operating capacity by influencing demands through price manipulation. This is an example of: A. illegal price discrimination. B. collusion. C. volume analysis. D. revenue management. E. outsourcing.

d

What is credited with gains in industrial productivity, increased standards of living, and affordable products? A. personal computers B. the Internet C. mass transportation D. mass production E. multilevel marketing

d

Which of the following is not a characteristic of service operations? A. intangible output B. high customer contact C. high labor content D. easy measurement of productivity E. low uniformity of output

d

41. Which of the following is not a type of operations? A. goods production B. storage/transportation C. entertainment D. communication E. advertising

e

52. Production systems with customized outputs typically have relatively: A. high volumes of output. B. low unit costs. C. high amount of specialized equipment. D. fast work movement. E. skilled workers.

e

70. Which of the following is essential to consider with respect to managing a process to meet demand? A. advertising B. trends in fashion C. global economic trends D. financial reporting standards E. capacity

e

74. Supplying operations with parts and materials, performing work on products, and/or performing services are part of the firm's: A. division of labor. B. market development. C. outsourcing. D. external process orientation. E. internal supply chain.

e

In addition to operations, which of the following is considered a "line" function? A. accounting B. finance C. IT D. procurement E. sales

e

Operations and sales are the two ________ functions in businesses. A. strategic B. tactical C. support D. value-adding E. line

e

Which of the following is not true about the systems approach? A. A systems viewpoint is almost always beneficial in decision making. B. A systems approach emphasizes interrelationships among subsystems. C. A systems approach concentrates on efficiency within subsystems. D. A systems approach is essential whenever something is being redesigned or improved. E. All of the choices are true.

e

A systems approach emphasizes interrelationships among subsystems, but its main theme is that the whole is greater than the sum of its individual parts. True False

t

Among Ford's many contributions was the introduction of mass production, using the concepts of interchangeable parts and division of labor. True False

t

As an abstraction of reality, a model is a simplified version of a real phenomenon. True False

t

Elton Mayo's Hawthorne experiments were the focal point of the human relations movement, which emphasized the importance of the human element in job design. True False

t

Lean production systems incorporate the advantages of both mass production and craft production. True False

t

Many operations management decisions can be described as trade-offs. True False

t