OM Chapter 1

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services

The economic activities that typically produce an intangible product are referred to as

This​ year, Druehl,​ Inc., will produce 57,600 hot water heaters at its plant in​ Delaware, in order to meet expected global demand. To accomplish​ this, each laborer at the plant will work 200 hours per month. If the labor productivity at the plant is 0.15 hot water heaters per labor​ hour, how many laborers are employed at the​ plant?

.15 = 57600 / (200 hours)(12 months) x L L= 57600/ 2400 (.15) L= 160 Laborers

supply chain

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

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

Ford Motor Company

The father of scientific management is

Fredrick W. Taylor

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

Charles Lackey operates a bakery in Idaho​ Falls, Idaho. Because of its excellent product and excellent​ location, demand has increased by 55​% in the last year. On far too many​ occasions, customers have not been able to purchase the bread of their choice. Because of the size of the​ store, no new ovens can be added. At a staff​ meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by​ hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,500 loaves per month. Employees are paid ​$8 per hour. In addition to the labor​ cost, Charles also has a constant utility cost per month of ​$550 and a per loaf ingredient cost of ​$0.50.

a. Current multifactor productivity for 640 work hours per month​ = .234 loaves/dollar (1500/[(8*640)+(550)+(0.5*1500)] b. After increasing the number of work hours to 992 per month​, the multifactor productivity​ = .241 ~ (output/input) output = 155% x 1500 input = (8*992)+(550)+[(155%) x ($0.50) x (1500)] c. The percentage increase in productivity​ = 2.905 ~ = 1-(.234/.241)

Lillian Fok is president of Lakefront​ Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following​ resources: ​Labor: 425 hours per day ​@​ $12.00 per hour Raw​ Material: 20,000 pounds per day​ @ ​$1.00 per pound ​Energy: ​$5,000 per day ​Capital: ​$10,000 per day

a. Labor productivity per labor hour for these tires​= 3.25 (tires/labor hours) b. Multifactor productivity for these tires​ = .0249 tires/dollar (per day) c. The percent change in multifactor productivity if Fok can reduce the energy bill by ​$950 per day without cutting production or changing any other inputs = 2.41%

a. Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 20 hours per day making the 400 boxes. b. Chuck and his employees have discussed redesigning the process to improve efficiency. Suppose they can increase the rate to 600 boxes per day.

a. Their productivity​ = 20 boxes/hour b. Their new productivity​ = 30 ​boxes/hour c. The unit increase in productivity is 10 ​boxes/hour (b-a) d. The percentage increase in productivity is 50% (c/a)

Which of the following is NOT considered to be a​ stakeholder? A. community members B. competitors C. distributors D. customers

competitors

Which of the following tasks would not typically represent an operations management activity at Hard Rock Cafe? A. filing a tax return B. designing an efficient layout C. receiving a shipment of incoming food ingredients D. preparing an employee schedule

filing a tax return

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

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

operations

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

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

research & development

Which of the following activities at an airline is NOT an operations​ activity? A. flying B. sales C. crew scheduling D. catering

sales

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

supply chains

Production

the creation of goods and services is referred to as

What is the goal for mass​ customization?

the goal is to produce customized products whenever and wherever needed


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