Chapter 1 Smartbook (Operations Management)
A _______ is an action or series of actions that transform inputs into outputs.
Process
Which of the following statement(s) is/are correct?
Services are activities that provide some sort of value Goods are physical items
Which of the following are characteristics of the Japanese approach to manufacturing?
Employee empowerment Continual improvement Emphasis on quality
In practice, there is significant interfacing and collaboration among the various functional areas. What does this involve?
Exchange of information Cooperative decision making
True or false: Production of goods results in intangible products.
FALSE
True or false: Outsourcing is sending production overseas. For example, to China.
False
Which of the following statements is true about production of goods?
It results in a tangible output.
_______ management can influence the entire organization.
Operations
Ethics is ______.
a standard of behavior that guides how one should act in various situations
Certain decisions of an operations manager affect the ____, and other decisions affect the _____. (Check all that apply.)
design of a system operation of the system
Which of the following statements is/are correct regarding craft production?
The tools used were simple and flexible Highly-skilled workers produced goods according to customer specifications
Which of the following statements is correct?
Business sustainability refers to economic, environmental, and social sustainability.
Which of the following statements is/are correct?
Quantitative approaches are used more frequently now because the cost of computing has decreased dramatically. Quantitative approaches to problem solving often try to find mathematically optimal solutions to business problems.
Complete the following statement: A systems approach to decision making ______.
assumes that the entire system must be considered when making decisions
The ideal capacity of a process occurs when capacity ______ demand.
matches
Which of the following are key issues for today's business operations?
Economic conditions Quality problems Risk management
Which of the following are characteristics of sustainability in the context of business operations and strategy? (Check all that apply.)
Economic sustainability Environmental sustainability
As an example of a trade-off decision faced by an operations manager, an increased warranty period on a car will lead to _______ customer satisfaction and an increase in costs to the company.
greater
Which of the following is/are true?
A model is an abstraction of reality. A model is a simplified representation of something.
Which of the following are key issues for today's business operations?
Cyber-security Competing in a global economy Environmental concerns
What are the definite benefits for students who join one or more professional organizations? (Check all that apply.)
Learn about jobs in the field Job networking Earn certifications
Which of the following statements are true regarding business ethics?
Ethical questions can arise in many situations. Ethics provides a behavioral guideline for a variety of situations. There are several ways (principles) to approach thinking about ethical problems.
What are the three basic functional areas of business?
Finance, marketing, operations
Which of the following is/are functions or components of a supply chain?
Forecasting Scheduling Production Delivery Purchasing Inventory management
Which of the following are elements or components of supply chain management?
Forecasting Suppliers Purchasing and inventory management Processing
Which of the following is correct regarding the scope of operations management?
Operations management affects the entire organization.
Which of the following statement(s) is/are NOT correct?
Organizations that provide services do not sell goods. Organizations that sell goods do not provide services.
Managers must learn how to establish ______. Managers must focus on issues or items that will do the most good.
Priorities
Which of the following is/are true about the impact of variability on managing processes?
Process variability can lead to product delays and shortages, which can lead to a damaged company reputation. Variability in processes can make planning and managing the process more challenging.
Which among the following is/are correct statements about the role of an operations manager?
The operations manager may work with the finance department to determine the necessary amount of funding for resource expansion. The operations manager must decide what resources will be needed. The operations manager must decide when certain resources will be needed and in what quantity.
The application of scientific knowledge to the development and improvement of goods and services is generally referred to as ______.
technology
Which of the following statements about a system approach is/are true?
A systems approach to decision making emphasizes the interrelationship between different subsystems of the organization. A systems approach to decision making assumes that the whole is greater than the sum of its (subsystem) parts.
Which of the following are professional societies in operations?
APICS ASQ ISM
Which of the following is/are true about the degree of customization a company offers its customers?
Greater customization tends to require greater employee skill. Greater customization tends to require more specialized (or flexible) equipment.
As an example of a trade-off decision faced by an operations manager, more options for customization of a laptop will lead to _________ level of customer satisfaction and an increase in costs to the company.
Increase
Which statement about the functional areas in business organizations is correct?
Many of the decisions in one functional area impact other areas.
Which of the following is/are NOT functions or components of a supply chain?
Marketing
Increased customization in products and services generally requires _____ resources and effort.
More
Which of the following statements is correct?
The Industrial Revolution brought Operations Management into common practice among management.
Which of the following statements is/are correct regarding craft production?
The craft production process was slow and expensive because of the lack of standardized parts. Skilled craftsmen were able to create goods to exact customer specifications.
Which of the following statements captures the definition of a supply chain?
The sequence of organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or service.
Match the theories with their views of worker attitudes towards work.
Theory X matches Choice, Workers do not like to work and must be induced to do it. Workers do not like to work and must be induced to do it. Theory Y matches Choice, Workers enjoy work and are committed to doing it. Workers enjoy work and are committed to doing it. Theory Z matches Choice, Workers are involved in problem solving and take responsibility for decisions. Workers are involved in problem solving and take responsibility for decisions.
Which of the following is the primary function of an operations manager?
To guide the system by decision making.
Which of the following is/are possible outcomes of mismatched capacity and demand?
Too little capacity can result in lost revenue. Too much capacity can be very costly. Too much capacity is wasteful.
Which of the following is/are possible outcomes of mismatched capacity and demand?
Too much capacity can result in dissatisfied employees because they do not have enough work to do. Too little capacity can result in employees being overworked, leading to turnover.
True or false: A company's supply chain consists of the sequence of organizations, including their facilities, functions, and activities, that are involved in producing and delivering a good or service.
True
True or false: A process consists of a series of actions that transform inputs into outputs.
True
During the 1960s and 1970s, management science techniques were highly regarded; in the 1980s, they lost some favor. What led to their resurgence in popularity?
User-friendly software Personal computers
Which of the following is/are true about the impact of variation on managing processes?
Variability in inputs can lead to problems with product quality. Variability in demand can make process planning difficult.
Which of the following statements is true?
A manager should focus on issues or items that will have the most impact.
Which of the following is NOT one of the three basic functional areas of business?
Human resources IT Accounting
Which approach resulted in an adversarial environment?
Theory X
Which among the following is/are the types of decisions an operations manager must make?
How many resources will be needed? What resources will be needed? Where will resources be needed? When will we need certain resources?
Place the stages of evolution of Operations Management in chronological order, with the oldest one listed first.
Industrial Revolution Scientific Management Human Relations Movement Decision Models
Which of the following are elements or components of supply chain management?
Inventory Forecasting Capacity planning Logistics
What are some problems associated with supply chains?
Supply chains operating independently of each other Late deliveries Large oscillations of inventories Inventory stockouts
The Markula Center for Applied Ethics at Santa Clara University identifies five principles for thinking ethically. Match each principle with its description.
Utilitarian Principle matches Choice, The good done by an action or inaction should outweigh any harm it causes or might cause. The good done by an action or inaction should outweigh any harm it causes or might cause. Rights Principle matches Choice, Actions should respect and protect the moral rights of others. Actions should respect and protect the moral rights of others. Fairness Principle matches Choice, Equals should be held to, or evaluated by, the same standards. Equals should be held to, or evaluated by, the same standards. Common Good Principle matches Choice, Actions should contribute to the common good of the community. Actions should contribute to the common good of the community. Virtue Principle matches Choice, Actions should be consistent with certain ideal virtues. Actions should be consistent with certain ideal virtues.
Which of the following statement(s) is/are true?
World War II furthered the field of Operations Management because of the great need for manufactured products. World War II generated many advances in both the military and in manufacturing. During World War II, specialists from a variety of fields gathered to aid in solving military and manufacturing problems.
A model is an _____ of reality, a ____ representation of something.
abstraction, simplified
Match these supply chain issues with their description.
Increasing levels of outsourcing matches Choice, Buying goods or services instead of producing or providing them themselves. Buying goods or services instead of producing or providing them themselves. Competitive pressures matches Choice, This has led to an increasing number of new products, shorter product development cycles, and increased demand for customization. This has led to an increasing number of new products, shorter product development cycles, and increased demand for customization. Increasing globalization matches Choice, Having far-flung customers and/or suppliers means longer lead times and greater opportunities for disruption of deliveries. Having far-flung customers and/or suppliers means longer lead times and greater opportunities for disruption of deliveries. Inventory matches Choice, This plays a major role in the success or failure of a supply chain, so it is important to coordinate this throughout a supply chain. This plays a major role in the success or failure of a supply chain, so it is important to coordinate this throughout a supply chain.
Which of the following statements is correct?
Interchangeable parts increased efficiency and reduced costs by simplifying production processes.
Which of the following statements is/are correct?
Interchangeable/standardized parts reduced the overall variability in the production process, leading to great gains in efficiency. Interchangeable/standardized parts significantly reduced assembly time and cost. Interchangeable/standardized parts enabled repairs to be done quickly and cheaply. Interchangeable/standardized parts allowed the streamlining of production processes, increasing productivity significantly.
Which of the following is/are part of the role of operations in a business?
Produce goods and/or services Match supply with demand
Operations management is primarily concerned with three kinds of technology. Match each technology to its description.
Product and service technology matches Choice, Refers to the discovery and development of new products and services. Refers to the discovery and development of new products and services. Process technology matches Choice, Refers to methods, procedures, and equipment used to produce goods and provide services. Refers to methods, procedures, and equipment used to produce goods and provide services. Information technology matches Choice, Refers to the science and use of computers and other electronic equipment to store, process, and send information. Refers to the science and use of computers and other electronic equipment to store, process, and send information.
Which of the following are key issues for today's business operations?
Quality problems Risk management Economic conditions
Which of the following statements is correct?
Quantitative approaches to problem solving frequently try to find mathematical optimal solutions to business problems.
Which of the following is/are NOT part of the role of operations in a business?
Secure financial resources for projects Assessing customer wants and needs Promote organization's goods or service
The Japanese can be credited with spawning what?
The quality revolution
Which theory combined the Japanese approach with such features as lifetime employment, employee problem solving, and consensus building, and the traditional Western approach that features short-term employment, specialists, and individual decision making and responsibility.
Theory Z