MKTG 372, test 1

When was the first mathematical model for inventory management developed?

1913.

When were the Hawthorne studies conducted?

1930's.

When was the first just-in-time philosophy developed?

1980's.

If inputs increase by 30% and outputs decrease by 15%, what is the percentage change in productivity?

34.62%

What percentage of total non-farm jobs in the U.S. economy comes from service-producing industries?

80%

Who wrote The Wealth of Nations in 1776, describing division of labor?

Adam Smith

What type of commerce makes up the highest percentage of electronic transactions?

B2B

What are software solutions that allow the firm to collect customer-specific data?

CRM

Which second-tier computer company utilized a drastic change in its operations function to become an industry leader in the late 1990's?

Dell.

The concept of interchangeable parts was introduced by _______.

Eli Whitney

Which of the following historical figures would probably have the most different management style from the other?

Elton Mayo.

Who created "scientific management"?

Frederick W. Taylor

Who popularized the moving assembly line?

Henry Ford

Many companies require their suppliers to meet what standards as a condition for obtaining contracts?

ISO 9000

Who invented the steam engine?

James Watt

Where was the just-in-time philosophy developed?

Japan

During the 1970's and 1980's, firms from which country provided the most serious competitive threat to U.S. companies?

Japan.

Which famous economist once suggested that, "The production problem has been solved."?

John Kenneth Galbraith.

What is a philosophy that aggressively seeks to improve product quality by eliminating causes of product defects and making quality an all-encompassing organizational philosophy?

TQM.

Which of the following is considered a "quality guru"?

W. Edwards Deming

In what company were the Hawthorne studies conducted?

Western Electric.

The first military use of management science was solving complex problems of logistics control, weapons system design, and deployment of missiles during _______.

World War II.

Which of the following is not primarily performed by the operation management function?

advertising strategy.

Which of the following would not be considered a core competency that a company might have?

an inefficient distribution system.

Once a business strategy has been developed,

an operations strategy must be formulated.

Operations management personnel perform a variety of functions, including all of the following except

analyzing potential mergers.

Managing the transformation of inputs into goods and services is

as old as time.

Order winners and qualifiers

change over time.

General Electric's Trading Process Network primarily handles transactions between

companies and their suppliers.

One of the two most important key features of time-based competition involves

developing new products and services faster than the competitor.

What concept involves breaking down the production of a product into a sees of small, elementary tasks, each of which is performed by a different worker?

division of labor.

When did operations management emerge as a formal field of study?

during the late 1950's and early 1960's.

Operations Management is responsible for increasing the organization's efficiency, which means the company will be able to _______.

eliminate activities that do not add value.

What was Frederick W. Taylor's background?

engineering

The process of monitoring the external environment is called what?

environmental scanning.

ISO 14000 standards provide guidelines for what?

environmentally responsible actions.

Decisions regarding which of the following are not part of the production process infrastructure?

facilities.

Every business is managed through what three major functions?

finance, marketing, and operations management.

Which business function is responsible for managing cash flow, current assets, and capital investments?

finance.

Empire West displays what by specializing in making a wide variety of products?

flexibility.

Highly-skilled hourly workers would be most needed by companies employing which of the following competitive priorities?

flexibility.

Which of the following competitive priorities typically requires the use of more general-purpose equipment?

flexibility.

What movement started with the publication of the results of the Hawthorne studies?

human relations

Which type of technology has had the greatest impact on business?

information technology.

When does productivity increase?

inputs decrease while outputs remain the same.

Which of the following operations management concepts did not evolve from scientific management?

interchangeable parts.

What outsourcing functions does UPS provide for clients?

inventories and deliveries

Which of the following is not true for business process reengineering?

it cannot be used to improve quality.

How does Federal Express maintain its ability to compete on time during peak demand periods?

it uses a very flexible part-time workforce.

Today's operations management is characterized by

its increased use of cross-functional decision making.

What term describes the approach of giving workers a larger portion of the total task to do?

job enlargement.

Increasing the level of responsibility of a job by adding planning and coordination tasks is

job enrichment.

Which initially successful web-based home delivery company had to shut down in 2001 due to inadequate management of its operations?

kozmo.com

Consider a pizza parlor. Which of the following would not be a valid productivity measure?

labor hours / pizzas produced.

What is a concept that takes a total system approach to creating efficient operations?

lean systems.

Which of the following is an example of a "back room" operation for an airline company?

loading luggage onto the airplane.

Decisions regarding which of the following are not part of the production process structure?

management policies.

The finance function is responsible for

managing cash flow, current assets, and capital investments.

Operations management interacts with which of the following:

marketing, information systems, finance, and engineering.

Which business function is responsible for sales, generating customer demand, and understanding what a customer wants and needs?

marketing.

Which of the following concepts is linked the least with Henry Ford?

mass customization.

Which of the following is not typically considered to be a core competency?

mission.

A key feature of scientific management is that workers are motivated only by _____.

money

An example of an operation that does not add value is __________.

moving components to a warehouse for stage until the factory needs them.

When making competitive priority decisions, the firm

must make trade-off decisions.

Operations management is responsible for orchestrating all the resources needed to produce the final product. This includes all of the following except _______.

obtaining customer feedback.

At the GAP, which function plans and coordinates all the resources needed to design, produce, and deliver the merchandise to its various retail locations?

operations management.

Which business function is responsible for planning, coordinating, and controlling the resources needed to produce a company's products and services?

operations management.

What terms describes the process of obtaining goods or services from an outside provider?

outsourcing.

Which of the following is a valid type of "productivity measure"?

partial productivity measure.

Operational efficiency is

performing operations tasks well.

At a factory, the transformation process is a (an) ______ change of raw materials and components into products.

physical.

Entry-level positions for operations management graduates include all of the following except

plant manager.

In what areas does General Motors earn its highest return on capital?

post-sales parts and services.

Computer-aided manufacturing is an example of what?

process technology.

What are the three primary types of technology?

product technology, process technology, and information technology.

Teflon is an example of what?

product technology.

In order to be successful with web-based online shopping, companies must do all except which of the following?

promise same-day delivery.

Management science is focused on

quantitative techniques for solving operations problems.

What are companies that have low customer contact and are capital intensive, yet provide a service, called?

quasi-manufacturing organizations.

A company with a low customer contact that is capital intensive is called:

quasi-manufacturing.

NAFTA and the EU are _______.

regional trade agreements.

Just-in-time philosophy is applicable in

service organizations, manufacturing organizations, and assembly line operations.

Which of the following is not an input?

services.

Under scientific management, information from what is used to set time standards for task performance?

stopwatch times studies.

What are long term decision stat set the direction for the entire organization called?

strategic

Which of the following is not true with respect to strategic and tactical decisions?

tactical decisions determine the direction for strategic decisions.

Which of the following is not considered one of the four broad categories of competitive priorities?

technology.

The internet developed from a government network called ARPANET, which was created in 1969 by _____.

the U.S. Defense Department.

Environmental scanning would not provide information on

the firm's internal inefficient distribution system.

Supply chain management involves managing

the flow of materials and information from suppliers and buyers to the final customer.

Today's business must think in terms of

the global market price.

OM's transformation role is to add value. Value added is

the net increase between output product value and input material value.

Technology should be acquired because

the new technology supports the company's chosen competitive priorities.

A key feature of scientific management is that workers are limited only by _______.

their physical ability.

What was the primary reason why American firms lost market dominance in many industries in the 1970's and 1980's?

they had become lax with a lack of competition in the 1950's and 1960's.

What are the two key components of the operations strategy of Federal Express?

they own their own fleet of airplanes, and they use a sophisticated bar code technology.

Which one of the following would not generally be considered to be a transformation?

waiting to see the doctor.

The creator of scientific management believed that _____.

worker productivity is governed by scientific laws.

What is the Hawthorne effect?

workers responding to the attention they are given.