ISDS 3115 Test 1conceptual

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

True

The person who believed that management must do more to improve the work environment and processes so that quality can be improved was

W. Edwards Deming

Cost minimization is an appropriate strategy in which stage of the product life cycle?

decline

Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is increased by 10%, it would then be:

220 valves/hr

Which of the following is an example of competing on the basis of differentiation?

A firm offers more reliable products than its competitors do

Which of the following is the best example of competing on low-cost leadership?

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 firms products are introduced into the market faster than its competitors products

"Considers inventory ordering and holding decisions" is within the strategic operations management decision area of managing quality..

False

Customer interaction is often high for manufacturing processes, but low of services.

False

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

False

Which of the following tasks would NOT typically represent an operations management activity at Hard Rock Cafe

Filing a tax return

Which of the following organizations does NOT belong to the service sector?

Ford Motor Company

The father of scientific management is

Frederick W. Taylor

Which is NOT true regarding differences between goods and services?

Goods tend to have higher customer interaction than services

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

True

Which is NOT true regarding differences between goods and services?

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

What is the goal for mass customization?

The goal is to produce customized products, whenever and wherever needed

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

True

One reason to globalize is to learn to improve operations.

True

Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs

True

A global network of organizations and activities that supply a firm with goods and services is referred to as

a supply chain

A strategy is

an action plan to achieve a mission

Which of the following is NOT a reason why domestic business operations decide to change to some form of international operation?

attract and retain local talent

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

both have quality standards

Which of the following is NOT considered to be a Stakeholder?

competitors

Competing on differentiation is

concerned with uniqueness

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

counseling

All of the following decisions fall within the scope of operations management EXCEPT for:

creating the company income statement

According to the authors, which of the following strategic concepts allow firms to achieve their missions?

differentiation, cost leadership, and response

Which of the following is NOT a typical service attribute?

easy to store

An international business is a firm that

engages in international trade or investment

Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced

false

Productivity increases when

inputs decrease while outputs remain the same

Which of these is NOT one of the basic functions of the management process?

inspecting

The creation of goods and services is referred to as:

production

Cost cutting in international operations can take place because of:

less stringent regulations, lower indirect costs, lower wage scales, lower taxes and tariffs

Which of the following is the purpose or rationale for an organizations existence?

mission

Which of the following international operations strategies uses decentralized authority with substantial autonomy at each business?

multidomestic

A large percentage of the revenue of most firms is spent on which function?

operations

The stated purposed of NAFTA is to

phase out all trade and tariff barriers among Canada, Mexico, and the US

Which of these is NOT an advantage of outsourcing?

potential creation of future competition

Which of the following OM decisions determines how a good or service is produced and commits management to specific technology, quality, human resources, and capital investment?

process and capacity design

Value-chain analysis can be used to determine if a business is adding unique value in which of the following areas?

quality management, process innovation, human resources, product research

Which of the following does NOT represent a valid reason for globalizing operations?

reduce responsiveness

Which of the following is NOT considered to be one of the primary functions that all organizations perform?

research and development

Which of the following activities at an airline is NOT an operations activity?

sales

The economics that typically produce an intangible product are referred to as

services

SWOT analysis refers to

strengths, opportunities, weaknesses, and threats

Competition in the 21st century is no longer between companies; it is between

supply chains

An operations manager is NOT likely to be involved in:

the identification of customers wants and needs

Which of the following represents a reason for globalizing operations?

to expand a product's life cycle, to improve the supply chain, to improve operations, to attract and retain global talent