Chapter 21

Rhonda purchased UGG boots because of the style. She remarked about the comfort and warmth. This is an example of which dimension of quality? a) Aesthetics b) Durability c) Conformance d) Features e) All of these choices

a) Aesthetics

Which of the following statements about the relationship between operations management and utility is TRUE? a) All operations management provides utility of one type or another b) Only operations management in the manufacturing sector can truly be said to provide utility c) Only operations management in the service sector provides utility because it is where product and consumer meet d) Operations management creates the same kind of utility regardless of the sector of the economy involved e) There is no demonstrable relationship between operations management and utility

a) All operations management provides utility of one type or another

Which of the following statements about the effects of automation on employees is TRUE? a) In the long run, automation will create more jobs than are lost because of it b) The majority of the workers will lose their jobs when automation is used c) More employees will be needed immediately after automation is implemented, but eventually the number required will decrease d) There is no way to judge before implementation how many workers will be needed e) Many of the workers now performing the jobs will be unable to perform the new automated jobs and will therefore be fired

a) In the long run, automation will create more jobs than are lost because of it

Which of the following is NOT a current use for robotics? a) Loan approval b) Brain surgery c) Agriculture d) Police work e) Jewelry engraving

a) Loan approval

The Yankee Candle Company makes candles. Which type of layout would you expect to find in the manufacturing plant that makes candles? a) Product b) Fixed-position c) Specialized d) Functional e) Process

a) Product

Hewlett Packard bought EDS consulting service. This is an example of what kind of an operations decision? a) Product-service mix b) Capacity utilization c) Technology d) Facilities e) Human resources

a) Product-service mix

Which of the eight dimensions of quality refers to the probability of a product NOT malfunctioning during a specified period? a) Reliability b) Durability c) Serviceability d) Performance e) Perceived quality

a) Reliability

____ is the process of managing operations control, resource acquisition and purchasing, and inventory to thus improve overall efficiency and effectiveness. a) Supply-chain management b) Resource management c) Inventory management d) Quality control e) Productivity control

a) Supply-chain management

Which of the following factors is NOT a consideration when determining the capacity utilization required in an operations system? a) Technology b) Demand c) Variation in demand d) Required flexibility e) Conversion capacity

a) Technology

Which of the following is NOT one of the units of analysis used to calculate productivity by level? a) Total factor b) Industry c) Unit d) Individual e) Aggregate

a) Total factor

____ is a comprehensive, organization-wide strategy for improving product and/or service quality on a systematic and continuous basis. a) Total quality management b) Statistical quality control c) Benchmarking d) Total factor productivity e) Synergistic effectiveness

a) Total quality management

In the short-term people may lose their jobs, but in the long-term jobs are generally created by... a) automation b) flexible manufacturing c) CAD d) CAM e) CIM

a) automation

Boeing sent change management consultants to a newly acquired company to learn how that company managed change in the past. This is an example of... a) benchmarking b) conformance sampling c) acceptance sampling d) in-process sampling e) outsourcing

a) benchmarking

When General Mills looked for ideas on how to reduce the time it took to convert its production lines from one cereal to another, it sent a team to observe the pit crews at the Indianapolis 500. As a result of using ____, General Mills cut its plant changeover time by more than 50 percent. a) benchmarking b) conformance sampling c) acceptance sampling d) in-process sampling e) outsourcing

a) benchmarking

Many parents complain that a PG-13 movie today was rated R in the past. Movie companies may be following the letter of the standards, if not the spirit, to gain access to more viewers. This is an example of... a) conformance b) reliability c) benefits d) aesthetics e) durability

a) conformance

Super Fresh grocery stores have self check-out lanes. Now one bagger can service four lanes instead of four cashiers servicing four lanes. This use of revamping allows Super Fresh to... a) improve its productivity b) decrease fixed costs c) decrease its dependence on its website d) increase customer affective responses e) None of these choices

a) improve its productivity

Two broad methods by which organizations can improve productivity are... a) improving operations and increasing employee involvement b) just-in-time inventory systems and automation c) centralization and improving operations d) automation and management by objectives e) management by exception and employee involvement

a) improving operations and increasing employee involvement

Intel decided the new Itanium chip would replace the Pentium. During the transition, Pentium chips would be cheaper, but once the Itanium facility was operational, Intel would cease manufacture of Pentiums. The decision to cease Pentium production is a decision that most directly involves its... a) operations systems b) span of management c) decentralized control d) mission evolution e) ability to use the expectancy theory

a) operations systems

Just-in-time systems are a means of improving the management of... a) raw materials and component parts b) in-process inventories c) finished-goods inventories d) in-transit inventories e) maintenance, repair, and office inventories

a) raw materials and component parts

Anthony is comparing the quality and features of Facebook to those on MySpace. This is an example of the ____ of quality. a) relative nature b) absolute nature c) conformance dimension d) price dimension e) aesthetic nature

a) relative nature

When Intel assesses the productivity of each of its chip plants, it is determining ____ productivity. a) unit b) individual c) company d) industry e) functional

a) unit

Hagerty makes silver flatware. Which type of layout would you expect to find in a manufacturing plant that makes silverware? a) Product layout b) Cellular layout c) Specialized layout d) Functional layout e) Process layout

b) Cellular layout

The text notes that what we now call operations management was once called production management and implies that there are several reasons for the change in nomenclature. Which of the following is NOT one of those reasons? a) The decline in manufacturing in the United States in recent years b) Changes in manufacturing processes such as the increased use of robots and other computer-based technology c) The increase in the size and importance of the service sector in the U.S. economy d) Drastic increases in foreign competition and the subsequent effects it has had on U.S. firms e) The fact that many of the tools and techniques used in manufacturing can also be used in the service sector

b) Changes in manufacturing processes such as the increased use of robots and other computer-based technology

Heather's boss has just given her the responsibility of developing a new line of protective gear for kayakers. However, he warned her that the time available for development is not as long as she would probably like. What should Heather use to speed up the development process? a) Robotics b) Computer-aided design c) Computer-integrated manufacturing d) Computer-aided manufacturing e) Flexible manufacturing systems

b) Computer-aided design

One of the major tasks for movies like 'The Chronicles of Narnia' is to create costumes for various species that reflect the mythical persona and can be worn by humans for lengthy periods of time. ____ could be used to speed up the development process. a) Robotics b) Computer-aided design c) Computer-integrated manufacturing d) Computer-aided manufacturing e) Flexible manufacturing systems

b) Computer-aided design

The fact that a product or system needs to be capable of meeting established standards refers to which quality dimension? a) Relative quality b) Conformance c) Absolute level of quality d) Perceived quality e) Performance

b) Conformance

Which of the eight dimensions of quality is a measure of product life? a) Reliability b) Durability c) Serviceability d) Performance e) Perceived quality

b) Durability

Which of the following factors was largely responsible for the fact that the entire U.S. economy did not mirror declines in the manufacturing sector during the 1970s? a) Automation of factories b) Growth of the service sector c) Improved foreign trade balances d) Reduction of long-term interest rates e) Low levels of unemployment

b) Growth of the service sector

Ford recently mandated higher quality standards for all of the parts that it buys from suppliers. This is an example of which major component of a total quality management strategy? a) Technology b) Materials c) Employee involvement d) Methods e) Operations

b) Materials

Which sector of the United States economy was responsible for 80 percent of the GNP in 2009 and almost 90% of new jobs created since the 1990s? a) Manufacturing b) Service c) Government d) Exports e) Imports

b) Service

Which of the following organizations would provide the consumer with time and place utility through its operations management function? a) United Technologies Corporation when it manufactures Carrier air conditioners b) The university soccer game watched by 500 fans c) The book publisher that produces your textbooks d) Kincaid, furniture maker e) Your local stereo dealer

b) The university soccer game watched by 500 fans

Which of the following statements concerning the relationship between productivity and quality is TRUE? a) The two are inversely related b) There is a direct, positive relationship between the two c) There is no specific relationship between the two d) Productivity causes quality e) Quality causes productivity

b) There is a direct, positive relationship between the two

The first application of robots was for which of the following? a) Drilling b) Welding c) Cutting d) Assembling e) Painting

b) Welding

Which of the following statements about the use of operations management as a control is TRUE? a) Operations management can be used as a control by tying it in with the other functions b) When operations management is used as a control, operations managers should be held responsible for all product-related activities c) Accountability for operations managers is spelled out in rules when the organization is bureaucratic in nature d) In a clan system, accountability is usually not formalized e) Misplaced accountability that occurs with operations management reduces effectiveness of control and increases conflict

b) When operations management is used as a control, operations managers should be held responsible for all product-related activities

At a regional manufacturing facility, the quality control people sample 15 percent of the finished products to check for adherence to more than 12 quality standards. This is an example of... a) benchmarking b) acceptance sampling c) in-process sampling d) conformance sampling e) outsourcing

b) acceptance sampling

According to the text, the major problem associated with total factor productivity is that... a) the data are too hard to obtain b) all ingredients must be expressed in the same terms c) it does not tell the manager what to do to correct a problem d) it is not compatible with standard accounting procedures e) it is nothing more than a cost-benefit analysis

b) all ingredients must be expressed in the same terms

When General McChrystal asked for more troops for the war in Afghanistan, he was making a ____ operations decision. a) product-service mix b) capacity c) technology d) facilities e) service

b) capacity

The Federal Communications Commission has a list of words broadcasters cannot say on the air. This is a dimension of quality known as... a) performance b) conformance c) perceived quality d) serviceability e) reliability

b) conformance

In the production of modular homes, it is customary to bring both materials and labor to the place where the home is being assembled. This is an example of a ____ layout. a) product b) fixed-position c) cellular d) functional e) process

b) fixed-position

Operations managers must specifically address both ____ when setting up an operations system. a) technology and layout b) location and layout c) quality and technology d) flexibility and product cost e) layout and flexibility

b) location and layout

There is a Canadian insurance company that provides only one kind of insurance. It insures athletes who have multimillion dollar contracts that must be paid, even if the athlete is injured or in some other way unable to play. Owners buy the insurance policies as a way to protect themselves. When the insurance company decided to specialize in this type of insurance, it made a ____ decision. a) facilities b) product-service mix c) capacity utilization d) product substitutes e) human resource mix

b) product-service mix

When CBS executives decide the programming line-up they are making ____ decisions. a) facilities b) product-service mix c) capacity utilization d) product substitutes e) human resource mix

b) product-service mix

A product layout MOST likely would be found in organizations... a) using small-batch technology b) using large-batch (mass production) technology c) using continuous flow (process) technology d) producing custom-made products e) in the service sector

b) using large-batch (mass production) technology

Which of the following is classified as a partial productivity ratio? a) Individual productivity b) Company productivity c) Capital productivity d) Industry productivity e) Aggregate productivity

c) Capital productivity

Motorola offers an eight-hour seminar based on its famed 'Six Sigma' quality program, which aims for only one defect per 1,000,000-unit production run, to businesses that are interested in teaching their employees how to implement total quality management. This example focuses on which component of the quality management strategy? a) Technology b) Materials c) Employee involvement d) Methods e) Operations

c) Employee involvement

____ sampling is a type of statistical quality control that involves testing products as they are being made. a) Total factor b) Acceptance c) In-process d) Conformance e) Component

c) In-process

Which of the following is NOT one of the constraints with which a purchasing agent must deal? a) Inventory levels and delivery dates b) Supplier reliability c) Integrating purchasing with production d) Getting the best possible discounts and terms e) The quality of what is being purchased

c) Integrating purchasing with production

Which of the following would seem especially appropriate for firms using a just-in-time inventory system? a) A broad customer base b) Substantial amounts of warehouse space c) Multiple sources of supply d) Good distribution systems e) Computer-assisted manufacturing

c) Multiple sources of supply

____ is the total set of managerial activities that an organization uses to create its products or services. a) Management b) Managerial effectiveness c) Operations management d) A transformation system e) Scientific management

c) Operations management

Which of the following is NOT an important part of automation? a) Feedback b) Information c) Plotters d) Sensors e) Control mechanisms

c) Plotters

Accounting firms are in which industry? a) Manufacturing b) Distribution c) Service d) Retailing e) Not-for-profit

c) Service

What is the relationship between operations management and organizational strategy? a) Operations management drives organizational strategy decisions b) Organizational strategy drives operations management decisions c) There is a direct relationship between the two so that each affects the other d) There is essentially little relationship between the two areas e) To date, research has been unable to show a consistent relationship between the two

c) There is a direct relationship between the two so that each affects the other

Operations management is primarily concerned with which element of systems theory? a) Inputs b) Outputs c) Transformation processes d) Feedback e) Entropy

c) Transformation processes

A furniture manufacturer in Durham, North Carolina, has a pay-for-knowledge compensation system in which an employee's hourly wage depends on how many different jobs she or he can do. Which of the following statements describing research results about such programs is FALSE? a) They increase workforce flexibility b) They reduce the number of employees required c) Unions support such programs because they give the worker more voice in operations d) They are an effective means of increasing productivity e) The key to the success of such programs is rewards

c) Unions support such programs because they give the worker more voice in operations

Almost 20,000 UPS employees are now equipped with ring scanners⎯small electronic devices worn on their index fingers and wired to a small computer on their wrists. When a UPS employee holds a package, the ring shoots a pattern of photons on the package. Within moments, its location is updated at the UPS website. This use of ____ allows UPS to better track its packages and to provide better customer service. a) just-in-time inventory control b) employee involvement c) an operations improvement d) research and development enhancement e) CIM

c) an operations improvement

A manufacturer of golf clubs manufactures woods, irons, and putters using similar techniques but each in their own family of product, flow path configuration. This is an example of a ____ layout. a) product b) fixed-position c) cellular d) functional e) process

c) cellular

You purchased a car with leather seats. The leather seats are a dimension of quality known as ____. a) reliability b) durability c) features d) aesthetics e) serviceability

c) features

A consulting firm calculates an efficiency index for each of its consultants by dividing each consultant's total hours of work by the number of billable hours. This is a measure of ____ productivity. a) unit b) company c) individual d) labor e) differential

c) individual

Toyota installed a flexible manufacturing assembly line in its plant outside Columbus, Ohio. It can make a variety of cars one after the other, switching production by using scanners that read codes. This is an example of... a) just-in-time inventory control b) employee involvement c) operations improvement d) research and development enhancement e) CIM

c) operations improvement

The Malcolm Baldridge Award is given to companies that make major ____ advancements. a) productivity b) operations c) quality d) technology e) strategic

c) quality

A ____ organization is one that transforms resources into an intangible output and creates time or place utility for its customers. a) manufacturing b) distribution c) service d) retailing e) not-for-profit

c) service

Operations management can BEST be used to improve speed by... a) maximizing the number of approvals needed so that mistakes are caught beforehand, then moving ahead at full speed b) using individual work assignments because of the clear accountability that results c) starting from scratch, which usually enhances speed more than modifying current systems d) rigidly adhering to schedules e) eliminating elements of the organization culture that have been ineffective

c) starting from scratch, which usually enhances speed more than modifying current systems

An organization can manufacture 10,000 widgets with 10 hours of direct labor. What is its labor productivity? a) 100 units per labor hour b) 10 units per labor hour c) 10 units per labor hour d) 1,000 units per labor hour e) Cannot be determined from the information given

d) 1,000 units per labor hour LPI = 10,000 units/10hrs

Ephraim is analyzing the productivity of his section. Last week his crew worked 4,000 hours and produced 600,000 units of product. The average hourly wage was $7 per hour, and 200 hours were lost to absenteeism. The sale price for the items produced is $2 per unit. What is the labor productivity index? a) 21.43 b) 42.86 c) 150.00 d) 157.89 e) 300.00

d) 157.89 LPI = 600,000 / (4000 - 200) LIP = Output/Direct Labor

The production manager has just received a large block of orders for products that are not manufactured yet; however, he is not concerned. Which of the following items can you safely assume this production manager uses? a) Robotics b) Computer-aided design c) Process layouts d) Computer-aided manufacturing e) Product layouts

d) Computer-aided manufacturing

Which of the following organizations creates form utility? a) Merrill Lynch b) Wendy's c) U.S. Postal Service d) Intel e) Continental Airlines

d) Intel???

Dale has seen unit production costs go up dramatically during the past two or three years. One major reason is high interest rates on money borrowed to purchase and store inputs. Which of the following should Dale consider? a) Management by objectives b) Participatory management c) Quality circles d) Just-in-time inventory systems e) Computer-assisted manufacturing

d) Just-in-time inventory systems

____ productivity ratios are most useful to the manager for determining how to change operations to improve productivity. a) Aggregate b) Company c) Total factor d) Partial e) Individual

d) Partial

Which of the following statements about the relationship between productivity and quality is true? a) There is no relationship between productivity and quality b) Increased productivity means decreased quality c) Higher quality results in higher productivity d) Productivity and quality are inversely related e) All of these choices

d) Productivity and quality are inversely related

____ is the totality of features and characteristics of a product or service that determines its ability to satisfy stated or implied needs. a) The needs satisfaction index b) The operations effectiveness ratio c) The productivity/efficiency ratio d) Quality e) Synergistic effectiveness

d) Quality

Which of the following countries has the highest level of productivity? a) France b) Japan c) Korea d) United States e) Germany

d) United States

At Wal-Mart, 70 percent of merchandise is rung up at the cash register before the company even pays for it. This is an example of... a) management by objectives b) participatory management c) quality circles d) a just-in-time inventory system e) computer-assisted manufacturing

d) a just-in-time inventory system

To ensure that a newly designed product moves smoothly to the production stage, ____ could be used. a) JIT b) computer-aided design c) postaction control d) computer-assisted manufacturing e) flexible manufacturing systems

d) computer-assisted manufacturing

The goals of operations managers are efficiency and effectiveness, which are achieved through... a) quality and profits b) productivity and profits c) profits and legal responsibility d) quality and productivity e) profits and returns to stockholders

d) quality and productivity

Unmanned aircrafts are increasingly sent into combat instead of piloted aircrafts. This is an example of... a) CAD b) CAM c) FMS d) robotics e) JOT

d) robotics

Wal-Mart replaced some checkout lanes with self-checkout. Customers with full carts waiting in line for full checkout may complain that ____ is not a dimension of quality that is a priority for Wal-Mart. a) features b) reliability c) durability d) serviceability e) None of these choices

d) serviceability

The problems that operations managers face generally revolve around issues related to... a) hiring and retaining qualified employees b) planning and structuring the workforce c) marketing and distributing finished goods d) the acquisition and utilization of resources for conversion e) research and development related to new technology

d) the acquisition and utilization of resources for conversion

Levels of finished-goods inventories are controlled by... a) the distribution system b) decisions by middle management c) the marketing department d) the overall production scheduling system e) purchasing managers

d) the overall production scheduling system

The purchasing agent for Wegmans, a grocery store, would... a) be an extremely important part of the company's supply chain management b) order produce, dry goods, and staple goods c) be responsible for buying shelving and display equipment d) worry just as much about having too little inventory as having too much e) All of these choices

e) All of these choices

Which of the following is a basic component of a total quality management strategy? a) Employee involvement b) Technology c) Materials d) Strategic commitment e) All of these choices

e) All of these choices

Which of the following is a suggested method for improving productivity based on operations? a) Improved technological methods b) Modernized plants c) New distribution systems d) Increased spending on research and development e) All of these choices

e) All of these choices

Which of the following is a suggested method for improving productivity through motivation and involvement of employees? a) Increasing training b) Increasing employee participation c) Enhancing flexibility d) Improving reward systems e) All of these choices

e) All of these choices

Which of the following is a type of inventory that must be controlled by a manufacturing organization? a) Raw materials b) In-transit c) Work-in-process d) Finished goods e) All of these choices

e) All of these choices

Which of the following is one of the dimensions that can be used to assess or evaluate quality? a) Reliability b) Serviceability c) Aesthetics d) Durability e) All of these choices

e) All of these choices

Which of the following questions are concerned with capacity utilization decisions that must be made by operations management? a) How many automobiles do we produce? b) How much floor space do we devote to a particular product? c) How many tables does my restaurant need? d) How much office space does the accounting operation need? e) All of these choices

e) All of these choices

Which of the following statements about productivity is TRUE? a) It is a measure of efficiency b) It is an economic index of value c) It has different levels and forms d) It is related to quality in a positive way e) All of these choices

e) All of these choices

Which of the following statements about the importance of productivity is TRUE? a) It is important to a firm's profitability b) It is important to a firm's ability to survive c) It contributes to our overall quality of life d) It contributes to a country's standard of living e) All of these choices

e) All of these choices

On your way home from class, you stopped at the student center to get some money from an automatic teller. Which of the following best describes the machine you used? a) An advancement in manufacturing technology b) Computer-aided design c) Computer-aided manufacturing d) Computer-assisted technology e) An advancement in service technology

e) An advancement in service technology

Which of the following factors is NOT included in the formula for computing total factor productivity? a) Cost of labor b) Cost of capital c) Cost of materials d) Cost of energy inputs e) Cost of inflation

e) Cost of inflation

Which of the following would utilize computer-controlled transportation systems? a) Robotics b) Computer-aided design c) Computer-integrated manufacturing d) Computer-aided manufacturing e) Flexible manufacturing systems

e) Flexible manufacturing systems

Which of the following pairs of factors that are important to designing operations systems are MOST closely related to demand? a) Product-service mix and facilities b) Capacity utilization and facilities c) Product-service mix and technology d) Technology and capacity utilization e) Products-service mix and capacity utilization

e) Products-service mix and capacity utilization

Statistical quality control is... a) a computerized quality control monitoring service b) a team approach to quality control c) useful only in determining completed items to reject d) most useful in service organizations e) a set of specific statistical techniques used to monitor quality control

e) a set of specific statistical techniques used to monitor quality control

Bonnie is taking a trip to Hawaii. She made her reservations online and is using self check-in at the airport. This is an example of... a) advancement in manufacturing technology b) computer-aided design c) computer-aided manufacturing d) computer-assisted technology e) advancement in service technology

e) advancement in service technology

The basic functional purpose of operations systems is to... a) guide development of corporate strategy b) guide development of business-level strategy c) integrate the efforts of various strategic business units d) coordinate the organization's functional strategies e) control the organization's transformation processes

e) control the organization's transformation processes

Many shows broadcast on U.S. television today are filmed in British Columbia, Canada. The production company takes advantage of the many amenities that British Columbia offers. Operations management decisions to film in British Columbia are an example of ____ decisions. a) product-service mix b) capacity utilization c) technology d) facilities e) location

e) location

Al Lovata, CEO of Be Our Guest Inc. rented a CFO from Milestone Advisors LLC to help cut cost during the economic downturn. Be Our Guest used... a) benchmarking b) conformance sampling c) acceptance sampling d) in-process sampling e) outsourcing

e) outsourcing

A bank customer needs a car loan. When entering the bank the customer passes the teller line and proceeds to the management section. This is an example of the use of ____ layout. a) product b) fixed-position c) specialized d) functional e) process

e) process

Rolex is a company that makes expensive watches. It would most likely use operations management to control all of the following EXCEPT... a) the acquisition of inputs for organizational transformation processes b) the maintenance of quality of work-in-process c) the management of raw materials inventories d) the management of in-process inventories e) the system for distributing outputs

e) the system for distributing outputs