SPOM Exam 1
A productivity increase in one operation that does not improve overall productivity of the business is not an order winner. trivial. worthwhile. an order qualifier. competence-destroying.
worthwhile.
In an organization that has empowered its front-line employees, the middle managers become ______. obsolete inspectors facilitators supervisors
facilitators
What is the capacity utilization for a process that is capable of producing 50,000 units a year, and in year 1 only produces 10,000 units? 5 .5 .2 2
0.2
Scheduling personnel is an example of an operations management: organizational strategy. operational decision. functional strategy. tactical decision. mission implementation.
operational decision.
______ is the time it takes to complete a process from time of arrival to time of departure. Cycle time Rush order flow time Direct labor time Throughput time
Throughput time
All but one of the following impacts the user friendliness of the facility and the ability to serve customers effectively. Layout of equipment Time of day. Floorplan. Equipment design.
Time of day.
A disadvantage of standardization is the possibility of standardizing designs too early, which may make them difficult to modify in the future.
True
A production facility works best when it focuses on a fairly limited set of production objectives.
True
A well-balanced line would have all jobs of nearly equal duration to avoid unnecessary idleness in work assignments.
True
A well-conceived servicescape can communicate desired customer behavior.
True
Applied research has the objective of achieving commercial applications for new ideas.
True
At some point, the size of a growing plant can become too large and diseconomies of scale become a capacity planning problem.
True
Because services cannot be stored for later use, service managers consider time as one of their supplies or resources.
True
Capacity can be defined as the ability to hold, receive, store, or accommodate.
True
Capacity flexibility means having the ability to rapidly increase or decrease production levels or to shift production capacity quickly from one product or service to another.
True
Capacity utilization of individual operations is a dangerous performance metric.
True
Concurrent engineering brings people concerned with manufacturing into the design phase earlier than in the "over-the-wall" approach.
True
Delayed differentiation and modular design are tactics for mass customization.
True
Design for production takes into account the capabilities of the organization to produce or deliver a given product or service.
True
In a product layout, the bottleneck operation defines the capacity of the service.
True
Long-range capacity planning requires top management participation.
True
Outsourcing is a common source of external capacity.
True
Product failures can be easier to remedy with modular design.
True
Product liability means that a manufacturer is liable for any injuries or damages caused by a faulty product because of poor workmanship or design.
True
Reliability can be improved by the use of backup components.
True
Reliability refers to the ability of a product to perform its intended function under normal conditions.
True
Research and development (R&D) refers to organized efforts that are directed toward increasing scientific knowledge and product (or process) innovation.
True
The basic notion of economies of scale is that as a plant gets larger and volume increases, the average cost per unit of output drops.
True
The demand for a product and the rate of technological change have a significant impact on the length of a given phase of the product life cycle.
True
The entire system capacity is measured by the inverse of the bottleneck cycle time.
True
The frequency of adding to productive capacity should balance the costs of upgrading too frequently and the costs of upgrading too infrequently.
True
The main forces that initiate product or service design or redesign are market opportunities or threats.
True
Which of the following is not a method service facilities use to provide orientation for customers? Signs and color codes to indicate direction. Franchised services that use formula facilities. Use of artifacts. Use of walled cubicles to ensure privacy.
Use of walled cubicles to ensure privacy.
When discussing an organizations strategy we discussed the hierarchy of Mission, Goals, Strategy, and Tactics. Explain each of these and how they relate within that hierarchical structure.
Your Answer: A company's mission statement is its reason for existence. This is the highest in the hierarchy and is set by the founder of the company and rarely changed. Under the mission statement of the company is its goals. These are more of the details of how the company will compete. Company goals should be set in correspondence with the company mission statement. Under goals is a company's strategy. This is the roadmap by with a company plans to meet its goals. Lastly, a company should set its tactics. Tactic are the "how to" of meeting company strategy - the actions a company will take. Tactic can and will change frequently depending on the situation the company is currently in.
Which of these factors would be least likely to affect productivity? advertising product mix methods and technology workers management
advertising
______ is not an example of unethical customer-contact behavior. Performing unnecessary services Giving away a guaranteed reservation Creating a need for service Sharing customer information with third parties
Creating a need for service
Capacity planning that involves hiring, layoffs, some new tooling, minor equipment purchases, and subcontracting is considered as which one of the following planning horizons? Long range Short range Intermediate range Upcoming Current
Intermediate range
Which of the following is least likely to affect the cost an organization incurs in producing its products or services? productivity price quality inventory management location
Price
The objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities, equipment, and overall labor force size) that best supports the company's long-range competitive strategy.
True
The procedure to improve flow distance in a process layout by arranging the relative location of departments is known as operations sequence analysis.
True
The process of dismantling and inspecting a competitor's product to discover improvements is called reverse engineering.
True
The customer is a(n) ______ in the service process and his/her impression of the service quality is influenced by many ______. observer/perceptions participant/observations observer/observations participant/perceptions
participant/perceptions
In their chief role of _________, operations managers exert considerable influence over the degree to which the goals and objectives of the organization are realized. designer/builder promoter/salesman recruiter/trainer troubleshooter/problem-solver planner/decision maker
planner/decision maker
Which of the following is not a factor that affects productivity? design of the workspace use of the Internet product price computer viruses standardizing processes
product price
Competitiveness doesn't include: productivity. profitability. operations management. effectiveness. operations strategy.
profitability.
Business organizations consist of three major functional areas which, ideally: do not interface with each other. are mutually exclusive. support one another. function independently of each other. exist independently of each other.
support one another.
Consider the following vignette. Aboard the cruise ship Royal Majesty, a breakfast diner complains to the waiter that the meal is cold. The waiter sends the meal back to the kitchen and returns shortly with a plate of steaming eggs and bacon. The customer refuses the meal. Rattled, the waiter expresses his confusion to the maitre d'. This breakdown in customer interaction can best be described as ______. unreasonable demands unacceptable treatment of employees slow performance unacceptable service
unreasonable demands
One way to increase reliability is to: increase the number of dependent components. improve component design. increase mean repair time. reduce production capacity. increase the number of service stations.
improve component design.
A customers who becomes intoxicated and disruptive is an example of ______. abusive or hostile attitude demands contrary to policies inappropriate behavior unreasonable demands
inappropriate behavior
Which of the following would tend to increase the importance of supply chain management? lower levels of outsourcing increased globalization increased supply chain stability greater emphasis on local markets reduced competitive pressures
increased globalization
An organization's mission statement serves as the basis for: distinctiveness. operating procedures. core competencies. organizational goals. environmental scanning.
organizational goals.
Productivity is expressed as: output divided by input. output plus input. input divided by output. output minus input. output times input.
output divided by input.
Buying goods or services instead of producing or providing them in-house is called: downsizing. outsourcing. internationalization. entrepreneurship. vertical integration.
outsourcing.
Managing the supply chain has become more important as a result of firms increasing their levels of: overtime. marketing. shipping. outsourcing.
outsourcing.
Remanufacturing refers to replacing worn-out components of old products to extend the products' useful life.
True
If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate? (Capacity Utilization = Actual output/best operating level) 1.33 0.75 1.25 100 1.00
1.25
A customer who is interested in the self-service option would find which of the following dimensions of service most important? Risk involvement. Amount of time involved. Efficiency of the service process. Customer's control of the situation
Customer's control of the situation
A fixed sequence of steps that all customers must experience is characteristic of process layouts.
False
A process layout, done correctly, promotes standardized service.
False
A production facility develops virtuosity and works best when it focused on a widely varied set of production objectives.
False
Basic research is done with the expectation that discoveries will have near-term commercial application.
False
Bottlenecks usually are associated with process layouts only.
False
Capacity planning is generally viewed in three time durations: immediate, intermediate, and indeterminate.
False
Commonality of components is beneficial for manufacturing but not for services.
False
Cycle time is the average time to complete a service operation.
False
Modular design increases the costs of purchasing and controlling inventory compared to nonmodular.
False
One of the main advantages of standardization is that it increases the potential variety of products.
False
Overtime and personnel transfers are solutions to capacity problems in the long term.
False
Signage is not an environmental dimension of the servicescape.
False
The objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities, equipment, and overall labor force size) that best supports the company's short-range competitive strategy.
False
The physical complexity of the servicescape for L.L. Bean is categorized as lean.
False
Capacity planning involving acquisition or disposal of fixed assets such as buildings, equipment or facilities is considered as which one of the following planning horizons? Intermediate range Short range Current Long range Upcoming
Long range
In the design of a fitness center, where would be the most advantageous location of a juice bar? Consider such factors as traffic flow, impulse buying, and orientation/visibility. Near the entrance/exit of the gym. Upstairs in a separate enclosed room marked by a sign. In a small alcove set to one side of the gym. At the back of the gym near the aerobic equipment.
Near the entrance/exit of the gym.
Facility layout is discussed with attention to traffic flow, space planning, and which one of the following? Cost of providing service. Eliminating bottlenecks. Need to avoid unnecessary travel. Aesthetic factors.
Need to avoid unnecessary travel.
Which of the following is not one of the 4 Rs? retrofit recycle reuse reduce reposition
Reposition
A product layout would facilitate the concept of ______. service in parallel balanced flow service in series a first come, first served policy
Service in Series
Which one of the following is not a major factor that could influence facility design? Objectives and nature of the service. Availability of land. Flexibility in operations. Site location.
Site Location
What defines the capacity of a service product layout? The activity requiring the most time per customer. The size of the queue. How tasks are allocated among servers. Ability of workers to change the process speed.
The activity requiring the most time per customer.
As discussed in class and in the text, this chart explains the service triad. Explain what the service triad is, and what concepts it is conveying. (Be detailed)
The service triad is a representation of the trade offs in all contacts with employees and customers. When contact personnel are interacting with customers and trying to deliver a service, there is a trade off of personalization and efficiency. When the customer has more control, the service is more personalized, but takes longer and will likely require more payment. When the Contact personnel has more control, the service is more efficient and both the contact personal and customer generally have a fairly set script that they know and accept. When the service organization and the customer are in contact, there is a trade off between efficiency and satisfaction. When the organization has more perceived control, the service is quick and probably less costly, but may not satisfy the customer's needs as well. When the customer has more control, the service is more likely to meet their expectations and they will have a better attitude about the results. When the service organization and the contact personnel interact, there is a trade off between efficiency and autonomy. If the service organization is more in control, the organization will set the culture and have the power, and the employees may have less ability to make good decision and will not be impowered to do the work requested of them well. On the other hand, when the contact personnel have more autonomy, service is not the same every time and can lose its efficiency and quality.
From our example in class, what is the picture below, how does it help make decisions, and what is the best decision based on the chart?
This image shows decision trees. Decision trees help us make good decisions because they allow us to visualize and play out every option available to us. They also allow us to see what our best option is likely to be, even when variables, such as a weak or strong market, can change. The best option in the situation above is to do nothing at first this has a likely pay back of $460,857 - and then expand later if the market is strong. This has a likely pay back of $556,630
Please explain the idea that was presented in the video at the end of class. The speaker discussed how consumer wants have evolved over time; from Commodity, to Good, to services, and finally to an experience. Explain this change in consumer want and describe what consumers are looking for at each stage of that evolution. Also, describe one way that a firm today can differentiate itself from the competition to meet the needs of todays consumers?
Your Answer: Consumers started by looking for commodities. They wanted unmanufactured items. Soon consumers began to look for goods, which were marketed and easy to use. The goods began to be viewed as a commodities again and were less valued by consumers. Companies then began to sell services. Here consumers where looking for ease. This too soon was viewed as a good, and needed to be differentiated. Consumers then began to look for an experience. They wanted to be sold a feeling and pleasure and a lifestyle. Firms today can differentiate themselves by selling items as an authentic experience. The firm should have a vision and sell consumers that vision. The video spoke about selling things that are "real real". Firms who strive to sell an authentic experience which leave consumers full of wonder will differentiate themselves. One example of a firm who does this well is Disney World. Here customers are full immersed into this "magical kingdom" and can forget about the real world outside.
As discussed in class describe with this chart is explaining about capacity decisions
Your Answer: Increasing capacity is expensive, and thus some companies choose to increase at different speeds depending on the type of business and amount of money they have set aside. Some companies tend to increase capacity frequently and in small amounts to keep up with demand - the small chunks. Other companies choose to increase a more significant amount at one time, but less frequently. It then takes the demand longer to catch up with their capacity and thus they do not have to expand again for a long while.
In any organization the three major functions as discussed in class. Name the three functions and define there role within an organization.
Your Answer: Marketing - finding what consumers want and promoting the products Finance - making sure there is enough cash flow and analyzing investment proposals Operations - everything else that keeps the company going. The creation of goods and services. They all support each other and work together.
From the video "Evolution of Management" we watched in class explain the Behavioral Approach and the Systematic approach to management, and how they differed from the classical approaches of Management thought. Use examples to define and compare the approaches.
Your Answer: The classical approach of management focuses on the hierarchy of managers and their place in making those under them work. They mostly treated people as machines and thought of work only as a way people get money. The Behavioral Approach focuses more on the emotions and needs of the workers. They are not treated like robots and this approach recognizes that employees want to socialize and do something of importance. The Systematic approach views the organization as a whole. It considers how each part of the organization works together and makes one system. Every part is reliant on the other parts. When looking at an employee on a manufacturing line from a classical approach, the managers tend to blame employees for working slower on purpose and their solution is for managers to push them harder. The behavioral approach says that employees are not working hard because the organization is not fully meeting their needs. To make them work harder, they need to feel valued and be social. The systematic approach looks at all of the views and tries to see how all the employees fit into the larger organization like parts of a united system.
A batch type of service process has the characteristic of ______. a one-of-a-kind engagement a group of customers treated simultaneously many specialized departments uninterrupted delivery
a group of customers treated simultaneously
A person who drives 100 miles to a factory outlet once a month to buy clothing for the family is ______. an economizing customer an ethical customer a personalizing customer convenience customer
an economizing customer
Which of the following is not a key step toward improving productivity? developing productivity measures for all operations converting bond debt to stock ownership considering incentives to reward workers improving the bottleneck operations establishing reasonable goals for improvement
converting bond debt to stock ownership
Which of the following would be least important in the pursuit of a time-based strategy? cost minimization flexible technology quick changeover times operational agility reduced complaint resolution times
cost minimization
In the context of the service encounter triad, the trade-off between the service organization and the contact personnel is one of ______. efficiency versus autonomy efficiency versus satisfaction perceived control autonomy versus satisfaction
efficiency versus autonomy
The most important attribute of customer-contact personnel is ______. intelligence education empathy for the customer sales related knowledge
empathy for the customer
Which of the following is not among the chief reasons organizations fail? poor internal communications overemphasis on short-term financial performance not investing in capital and human resources emphasizing labor productivity in labor-intensive environments overemphasis on product (or service) design
emphasizing labor productivity in labor-intensive environments
For an organization to grow its market share, it must: establish an Internet Web site. exceed minimum standards of acceptability for its products or services. advertise using multimedia. broaden its mission statement. reduce prices.
exceed minimum standards of acceptability for its products or services.
Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function. internal audit finance marketing operation purchasing
finance
The key to successfully competing is understanding what customers want and then __________ satisfy those wants. finding the best way to designing products and services that finding suppliers who can hiring enough workers to training production workers to
finding the best way to
Self-service falls into the technology-______ service encounter category. assisted facilitated mediated generated
generated
Marketing personnel and product designers must work closely with operations to successfully develop and produce new products because operations personnel can best judge how _____________ new product designs will be. marketable segmentable manufacturable profitable nameable
manufacturable
Marketing personnel and product designers must work closely with operations to successfully develop and produce new products because operations personnel can best judge how _____________ new product designs will be. profitable marketable nameable manufacturable segmentable
manufacturable
The fundamental purpose for the existence of any organization is described by its: policies. bylaws. procedures. mission statement. corporate charter.
mission statement.
Product design and choice of location are examples of _______ decisions. tactical operational customer-focused design strategic
strategic
The responsibilities of the operations manager include: allocating financial resources throughout the organization. analyzing investment proposals. promoting the organization's goods or services. the creation of goods or provision of services. assessing consumer wants and needs.
the creation of goods or provision of services.
Jiffy Lube, a franchised oil change and lubrication service, is an example of a service encounter dominated by ______. the organization corporate culture contact personnel the customer
the organization
