Operations Management, Chapters 1 & 2

Two widely used metrics of analyzing variation are the _____ and the _____.

mean; standard deviation

Which of the following factors would tend to reduce productivity?

more inexperienced workers

The external elements of SWOT analysis are

opportunities and threats

An organization's mission statement serves as the basis for:

organizational goals

The primary reasons why some organizations fail are due to the following:

poor SWOT analysis, lack of understanding of customer needs/wants, ineffective operations strategy, short-term profit-oriented

In an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per five-day week. What is the labor productivity of this operation?

15 chairs/worker/day

Operations, marketing, and finance function independently of each other in most organizations.

FALSE

In the 1980s, the American manufacturers were credited with fueling the quality revolution and developed the Just-in-Time (JIT) manufacturing strategy.

FALSE; Japanese manufacturers were credited

Operations Management is primarily responsible for managing the demand while the Sales and Marketing function is managing the supply within a firm.

FALSE; Operations Management manages Goods and Services

The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities.

FALSE; Primary function is to guide system by system design and system operation decisions

Capacity Planning and Location Planning of Facilities are System Operation Decisions

FALSE; they are part of system design decisions

A business that is rated highly by its customers for service quality will tend to be more profitable than a business that is rated poorly.

TRUE

An example of an operational operations management decision is inventory level management.

TRUE

People who work in the field of operations should have skills that include both knowledge and people skills.

TRUE

The hierarchy and sequence of planning and decision making is: mission, goals, organizational strategy, tactics, and operational decisions.

TRUE

Tracking productivity measures over time enables managers to judge organizational performance and decide where improvements are needed.

TRUE

Which of the following is not a type of operations?

advertising; operations include goods production, entertainment, communication, and storage/transportation

Which of the following would influence executive management in organizations to devote strategic efforts on improving supply chain management?

increased global competition

Which of the following is not a key factor of competitiveness?

size of organization; key factors include price, product differentiation, after-sale service, and flexibility

Which of the following refers to service and production processes that use resources in ways that do not harm ecological systems?

sustainability