Chapter 1

process

A _________ is an action or series of actions that transform inputs into outputs. (Enter only one word per blank.)

Mathematical models

A formula is an example of which classification of model? Multiple choice question. Mathematical models Physical models Schematic models

abstract simple

A model is an _______ of reality, a _____ representation of something.

Physical models

A scale-model building is an example of which classification of model? Multiple choice question. Physical models Schematic models Mathematical models

higher

As an example of a trade-off decision faced by an operations manager, an increased warranty period on a car will lead to a(n) _____ customer satisfaction and an increase in costs to the company.

higher

As an example of a trade-off decision faced by an operations manager, more options for customization of a laptop will lead to a(n) ______ level of customer satisfaction and an increase in costs to the company. (Enter only one word per blank.)

unskilled

Compared to craft production, division of labor allowed employers to employ ______ workers. Multiple choice question. younger older highly skilled unskilled

gives precedence to the objectives of the organization as a whole over those of a subsystem.

Complete the following statement: A systems approach to decision making: Multiple choice question. gives precedence to the objectives of the organization as a whole over those of a subsystem. states that the individual parts are greater than the sum. does not require interrelationships among subsystems.

drawbacks in managing technological advances

Conflicting technologies and discontinued support for older technologies are ______. Multiple choice question. avoidable risks in managing technological advances drawbacks in managing technological advances reasons to avoid technological advances

interact with

Departments such as Legal, Public Relations, and Human Resources Blank______ operations. Multiple choice question. interact with are subordinate to are managed by report to

a standard of behavior that guides how one should act in various situations

Ethics is ______. Multiple choice question. a set of standards applied in the workplace applied when an action needs to be analyzed for whether it is legal a standard of behavior that guides how one should act in various situations

What customers will pay

For a for-profit organization, what is the value of its outputs? Multiple choice question. Cost to deliver What customers will pay Profits Value to society

Value to society

For a nonprofit organization, what is the value of its outputs? Multiple choice question. What customers will pay Profits Cost to deliver Value to society

It breaks operations into series of small tasks, which can be accomplished by low-skill workers.

How does division of labor affect production? Multiple choice question. It allows a single skilled worker to complete all tasks required for production. It breaks operations into series of small tasks, which can be accomplished by low-skill workers. It allows workers to specialize in particular tasks, increasing their skill levels.

Exchange of information Cooperative decision making

In practice, there is significant interfacing and collaboration among the various functional areas. What does this involve? Multiple select question. Exchange of information Exchange of personnel Cooperative decision making Transfer pricing

more

Increased customization in products and services generally requires _____ resources and effort. Multiple choice question. limited advanced less more

less; much better than

Lean systems use much ______ of certain resources than conventional systems. The quality in lean systems tends to be ______ in traditional mass manufacturing environments. Multiple choice question. less; slightly worse than more; much worse than less; much better than more: almost the same as

Theory X: Workers do not like to work and must be induced to do it. Theory Y: Workers enjoy work and are committed to doing it. Theory Z: Workers are involved in problem solving and take responsibility for decisions.

Match the theories with their views of worker attitudes towards work. Theory X Theory Y Theory Z Workers enjoy work and are committed to doing it. Workers are involved in problem solving and take responsibility for decisions. Workers do not like to work and must be induced to do it.

It results in a tangible output.

Multiple Choice Question Which of the following statements is true about production of goods? Multiple choice question. Production of goods takes place in a factory. It results in a tangible output. "Goods" must be positive items. It cannot involve a service in conjunction with the good.

finance

Of the basic functions of a business organization, _____ is responsible for budgeting, analyzing investment proposals, and providing funds for operations. Multiple choice question. marketing operations finance supply chain

1. Industrial Revolution 2. Scientific Management 3. Human Relations Movement 4. Decision Models

Place the stages of evolution of Operations Management in chronological order, with the oldest one listed first.

User-friendly software Personal computers

Select all that apply 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? Multiple select question. User-friendly software Inexpensive cell phones World War II Personal computers

Finance Operations

Select all that apply Evaluation of alternative investments in plant and equipment requires inputs from who? Multiple select question. Finance HR Operations Marketing

Budgeting Analysis of investment proposals Provision of funds

Select all that apply Finance and operations management personnel cooperate by exchanging information and expertise in which activities? Multiple select question. Budgeting Analysis of investment proposals Assessing customer wants and needs Hiring of new personnel Provision of funds

Cyber-security Competing in a global economy Environmental concerns

Select all that apply Identify the key issues for today's business operations. Multiple select question. Cyber-security Competing in a global economy Environmental concerns Reduced outsourcing opportunities

Services often have more labor content than manufacturing jobs do. Services often have a higher degree of customer contact than manufacturing does. Quality assurance can be challenging in services because of the variation in types of services provided.

Select all that apply Identify the true statements from the following. (Check all that apply.) Multiple select question. Services often have more labor content than manufacturing jobs do. Because of reliance on suppliers, production of goods is often subject to higher variability than services are. Providing services is less costly because it does not require maintenance or storage of inventory. Services often have a higher degree of customer contact than manufacturing does. Quality assurance can be challenging in services because of the variation in types of services provided.

The geographic location of facilities The acquisition of equipment

Select all that apply In the context of decision-making by the operations manager, which of the following are part of the design of the system? Multiple select question. The geographic location of facilities Quality assurance The acquisition of equipment The management of personnel

improved quality time reduction cost reduction

Select all that apply The target outcome(s) of process improvement is/are: Multiple select question. improved quality time reduction cost reduction workforce turnover

Job networking Earn certifications Learn about jobs in the field

Select all that apply What are the definite benefits for students who join one or more professional organizations? (Check all that apply.) Multiple select question. Job networking Get free software Earn certifications Learn about jobs in the field

Sales Operations

Select all that apply What are the two line functions in a business organization? Multiple select question. Marketing Sales Accounting Human resource management Operations

The operations manager may work with the finance department to determine the necessary amount of funding for resource expansion. The operations manager must decide when certain resources will be needed and in what quantity. The operations manager must decide what resources will be needed.

Select all that apply Which among the following is/are correct statements about the role of an operations manager? Multiple select question. The operations manager may work with the finance department to determine the necessary amount of funding for resource expansion. The operations manager must decide when certain resources will be needed and in what quantity. The operations manager does not decide when resources will be needed. This is a strategic decision taken by upper management. The operations manager must decide what resources will be needed. The operations manager decides on product placement and location.

When will we need certain resources? How many resources will be needed? Where will resources be needed? What resources will be needed?

Select all that apply Which among the following is/are the types of decisions an operations manager must make? Multiple select question. What price should we charge for our products or services? How will we procure funding for the resources? When will we need certain resources? How many resources will be needed? Where will resources be needed? What resources will be needed?

decreased competitiveness increased workforce turnover

Select all that apply Which of the following are NOT outcomes of process improvement? Multiple select question. decreased competitiveness cost reduction faster time-to-market increased workforce turnover improved quality

Continual improvement Emphasis on quality Employee empowerment

Select all that apply Which of the following are characteristics of the Japanese approach to manufacturing? Multiple select question. Continual improvement Emphasis on quality Employee empowerment Batch production

Land Capital Information

Select all that apply Which of the following are inputs involved in operations function? Multiple select question. Land Capital Information Goods

Providing funds for operations Securing financial resources at favorable prices Budgeting Allocating financial resources throughout the organization Analyzing investment proposals

Select all that apply Which of the following are part of the role of the finance department in a business? Multiple select question. Assessing customer wants and needs Providing funds for operations Providing the services offered by the organization Securing financial resources at favorable prices Budgeting Allocating financial resources throughout the organization Analyzing investment proposals

APICS ISM ASQ

Select all that apply Which of the following are professional societies in operations? Multiple select question. APICS ISM SHRM ABET ASQ

Random variation. Variety of goods or services being offered. Structural variation in demand. Assignable variation.

Select all that apply Which of the following are the basic sources of process variation? Multiple select question. Increased demand over time. Random variation. Variety of goods or services being offered. Decreased demand over time. Structural variation in demand. Assignable variation.

Industrial engineering Purchasing Distribution Maintenance

Select all that apply Which of the following area are part of, or support, the operations function? Multiple select question. Industrial engineering Public relations Purchasing Distribution Maintenance

Opportunity to correct problems Inventory Uniformity of inputs

Select all that apply Which of the following factors tends to be higher in manufacturing than in services? Multiple select question. Customer contact Opportunity to correct problems Labor content Inventory Uniformity of inputs

Human resources IT

Select all that apply Which of the following is NOT one of the three basic functional areas of business? Multiple select question. Finance Operations Human resources Marketing IT

Promote organization's goods or service Secure financial resources for projects Assessing customer wants and needs

Select all that apply Which of the following is/are NOT part of the role of operations in a business? Multiple select question. Produce goods and/or services Promote organization's goods or service Secure financial resources for projects Assessing customer wants and needs

There is usually less risk associated with experimenting with models than with the real system. Models can provide a consistent way of evaluating a system.

Select all that apply Which of the following is/are advantages of using models as decision making tools? Multiple select question. Models always make it harder to understand the system. There is usually less risk associated with experimenting with models than with the real system. Models can provide a consistent way of evaluating a system. Good models are difficult, slow, and expensive to build.

The process of modeling makes users organize information and think about the system, which can clarify (additional) problems. Experiments on models tend to be cheaper than dealing with the actual system.

Select all that apply Which of the following is/are advantages of using models as decision making tools? Multiple select question. The process of modeling makes users organize information and think about the system, which can clarify (additional) problems. It is complex and expensive to build a useful and comprehensive model. Models are inconsistent, however, they provide a standardized format for analyzing problems. Experiments on models tend to be cheaper than dealing with the actual system.

Models may be placed in the hands of users who are not sufficiently knowledgeable to appreciate the subtleties of a particular model. Qualitative information can be difficult to capture in quantitative models.

Select all that apply Which of the following is/are correct statements about the limitations of using (mathematical) models as decision making tools? Multiple select question. Models may be placed in the hands of users who are not sufficiently knowledgeable to appreciate the subtleties of a particular model. Qualitative information can be difficult to capture in quantitative models. Models are more expensive than dealing directly with the actual problem. Models make it complicated to understand the problem.

Too much emphasis may be placed on quantitative information. The average user may not understand the details of a model. The models may be applied incorrectly.

Select all that apply Which of the following is/are correct statements about the limitations of using (mathematical) models as decision making tools? Multiple select question. Too much emphasis may be placed on quantitative information. The average user may not understand the details of a model. Only experts can build and use a model. The models may be applied incorrectly.

Inventory management Forecasting Production Delivery Purchasing Scheduling

Select all that apply Which of the following is/are functions or components of a supply chain? Multiple select question. Inventory management Forecasting Production Delivery Marketing Purchasing Scheduling

Assessing consumer wants and needs Promoting the organization's goods or services

Select all that apply Which of the following is/are part of the role of marketing for a business? Multiple select question. Assessing consumer wants and needs Promoting the organization's goods or services Producing new products to drive demand

Too little capacity can result in lost revenue. Too much capacity is wasteful. Too much capacity can be very costly.

Select all that apply Which of the following is/are possible outcomes of mismatched capacity and demand? Multiple select question. Too little capacity is good because it is an opportunity for growth. Too little capacity can result in lost revenue. Too much capacity is wasteful. Too much capacity can be very costly. Too little capacity is beneficial because customers will not have to wait long for service.

Assessing customer wants and needs Promoting goods and services Communicating customer needs to manufacturing

Select all that apply Which of the following is/are the responsibility of marketing? Multiple select question. Approving new product designs Assessing customer wants and needs Promoting goods and services Communicating customer needs to manufacturing Evaluating production equipment

Greater customization tends to require greater employee skill. Greater customization tends to require more specialized (or flexible) equipment.

Select all that apply Which of the following is/are true about the degree of customization a company offers its customers? Multiple select question. Greater customization tends to require greater employee skill. Greater customization tends to require more specialized (or flexible) equipment. Greater customization impacts only the operational side of the business. Greater customization tends to reduce prices because less inventory must be kept of each item.

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.

Select all that apply Which of the following is/are true about the impact of variability on managing processes? Multiple select question. Customers understand that process variability occurs and accept that delays are inevitable. 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.

Variability in inputs can lead to problems with product quality. Variability in demand can make process planning difficult.

Select all that apply Which of the following is/are true about the impact of variation on managing processes? Multiple select question. Variability in inputs can lead to problems with product quality. Variability in demand can make process planning difficult. Constant demand results in higher costs and more disruptions.

A model is a simplified representation of something. A model is an abstraction of reality.

Select all that apply Which of the following is/are true? Multiple select question. A model is a simplified representation of something. A model is an abstraction of reality. All models are miniature versions of physical entities.

Organizations that provide services do not sell goods. Organizations that sell goods do not provide services.

Select all that apply Which of the following statement(s) is/are NOT correct? Multiple select question. Organizations that provide services do not sell goods. Services are activities that provide some sort of value Organizations that sell goods do not provide services. Goods are physical items

Services are activities that provide some sort of value. Goods are physical items.

Select all that apply Which of the following statement(s) is/are correct? Multiple select question. Companies cannot provide both goods and services. Services are activities that provide some sort of value. Goods are physical items.

During World War II, specialists from a variety of fields gathered to aid in solving military and manufacturing problems. 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.

Select all that apply Which of the following statement(s) is/are true? Multiple select question. World War I spurred the development of computers, which facilitated the use of quantitative techniques. During World War II, specialists from a variety of fields gathered to aid in solving military and manufacturing problems. 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.

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.

Select all that apply Which of the following statements about a system approach is/are true? Multiple select question. A systems approach to decision making emphasizes the interrelationship between different subsystems of the organization. A systems approach to decision making assumes that a system consists of unrelated subsystems. A systems approach to decision making assumes that the whole is greater than the sum of its (subsystem) parts. A systems approach to decision making assumes that the whole is equal to the sum of its (subsystem) parts.

Structural variation in demand is caused by predictable trends or seasonality in data. Random variation is present in any process and cannot be predicted. Variety in goods and services increases the variation in production or service requirements.

Select all that apply Which of the following statements about process variation is/are correct? Multiple select question. Structural variation in demand is caused by predictable trends or seasonality in data. Random variation is present in any process and cannot be predicted. Random variation is controllable by the company. Assignable variation cannot be influenced by a company, as defects, breakdowns, or mistakes always occur. Variety in goods and services increases the variation in production or service requirements.

Lean systems use less inventory than conventional systems. Lean systems have higher quality than most conventional systems. Lean systems use a highly-skilled workforce. Lean systems are very responsive to customer demand.

Select all that apply Which of the following statements are true about lean systems? Multiple select question. Lean systems use more workers than conventional systems. Lean systems use less inventory than conventional systems. Lean systems have higher quality than most conventional systems. Lean systems use a highly-skilled workforce. Lean systems are very responsive to customer demand.

Interchangeable parts significantly reduced assembly time. Interchangeable parts can be used for replacement parts. Interchangeable parts significantly reduced assembly cost

Select all that apply Which of the following statements is/are correct about the use of interchangeable parts in mass production? Multiple select question. Interchangeable/standardized parts increased inventory costs because more of the parts must be kept in storage. Interchangeable parts significantly reduced assembly time. Interchangeable parts can be used for replacement parts. Interchangeable parts significantly reduced assembly cost

Highly-skilled workers produced goods according to customer specifications The tools used were simple and flexible

Select all that apply Which of the following statements is/are correct regarding craft production? Multiple select question. Goods were created in large batches due to the great skill of the workers Highly-skilled workers produced goods according to customer specifications The tools used were simple and flexible The simplicity of tools lead to economies of scale.

Skilled craftsmen were able to create goods to exact customer specifications. The craft production process was slow and expensive because of the lack of standardized parts.

Select all that apply Which of the following statements is/are correct regarding craft production? Multiple select question. The Industrial Revolution was a natural extension of craft production. Skilled craftsmen were able to create goods to exact customer specifications. The craft production process was slow and expensive because of the lack of standardized parts.

Mass production produces large volumes of standardized goods. Mass production relies on low-skilled workers and highly-specialized equipment.

Select all that apply Which of the following statements is/are correct? Multiple select question. Mass production produces small volumes of specialized products. Mass production produces large volumes of standardized goods. Mass production relies on low-skilled workers and highly-specialized equipment.

Scientific management placed great value on maximizing output. Scientific management was a management style more in-line with the higher levels of productivity introduced by the Industrial Revolution.

Select all that apply Which of the following statements is/are correct? Multiple select question. Scientific management placed great value on maximizing output. Scientific management was a management style more in-line with the higher levels of productivity introduced by the Industrial Revolution. Workers appreciated scientific management for showing them how to increase their efficiency and output.

They produce goods and/or services. They take place in every business organization.

Select all that apply Which of the following statements is/are true of the role of operations in a business? Multiple select question. They produce goods and/or services. They assess customer needs. They secure financial resources for projects. They take place in every business organization.

Operations

Service jobs such as stock market analyst, product manager, and public accountant are most closely related to which line function in an organization? Multiple choice question. Sales Finance IT Operations

The quality revolution

The Japanese can be credited with spawning what? Multiple choice question. Six Sigma The quality revolution Statistical quality control

technology

The application of scientific knowledge to the development and improvement of goods and services is generally referred to as ______. Multiple choice question. production technology information

matches

The ideal capacity of a process occurs when capacity ______ demand. Multiple choice question. exceeds matches is less than

True

True or False: Outsourcing refers to buying goods or services instead of producing or providing them in-house.

True

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

True or false: Most systems involve a blend of goods and services.

False

True or false: Production of goods results in intangible products.

True

True or false: Services provide customers with intangible value while goods result in a tangible output.

Predicting advances can be tricky High prices

What are the major reasons firms might be leery of new technologies? Multiple select question. Predicting advances can be tricky High prices Low return on investment

Finance, marketing, operations

What are the three basic functional areas of business? Multiple choice question. Marketing, accounting, IT Finance, marketing, accounting Finance, marketing, operations Marketing, accounting, operations Accounting, operations, IT Finance, marketing, IT

Theory X

Which approach resulted in an adversarial environment? Multiple choice question. Theory X Theory Y Theory Z

Information on consumer preferences Insight on what competitors are doing

Which of the following can marketing provide? Information on supplier preferences Information on consumer preferences Judgment on the manufacturability of designs. Information on what funds might be available Insight on what competitors are doing

Operations management affects the entire organization.

Which of the following is correct regarding the scope of operations management? Multiple choice question. Operations management affects the entire organization. Operations management's role is in the day-to-day operations of a business. Operations management is not involved in higher-level decision making. Operations management may interact with finance and accounting, but it does not deal with any other functional areas.

The creation of goods and/or services through the transformation of inputs into outputs.

Which of the following is the definition of the operations function? Multiple choice question. The creation of goods and/or services through the transformation of inputs into outputs. The analysis of the processes involved in transforming inputs into outputs. The process of storing the raw material needed for any operation.

To guide the system by decision making.

Which of the following is the primary function of an operations manager? Multiple choice question. To forecast product demand. To assist higher-level managers in making strategic decisions. To guide the system by decision making.

Dealing with certain factors can have disproportionately large impact on the results achieved.

Which of the following is true according to the Pareto phenomenon? Multiple choice question. Managers must avoid directing their efforts to specific issues and focus on the bigger picture. Dealing with certain factors can have disproportionately large impact on the results achieved. In the long run, every issue associated with manufacturing is equally important. All tasks require same amount of attention, and if addressed, they have the same impact.

Marketing

Which of the following is/are NOT functions or components of a supply chain? Multiple choice question. Marketing Scheduling Inventory management Delivery Production Forecasting Purchasing

Designing new products to drive demand

Which of the following is/are NOT part of the role of marketing for a business? Multiple choice question. Designing new products to drive demand Assessing consumer wants and needs Promoting the organization's goods or services

Services can often require more, and more specialized, labor than manufacturing does. Services have a higher degree of wage variability. It can be more challenging to measure productivity in services because of the higher degree of variability in the types of services performed.

Which of the following is/are true? Multiple select question. Because services are consumed at the same time they are produced, services are easier to manage. Services can often require more, and more specialized, labor than manufacturing does. Services have a higher degree of wage variability. It can be more challenging to measure productivity in services because of the higher degree of variability in the types of services performed. Need help? Review these concept resources.

Capacity planning Forecasting Process management Managing variation Managing suppliers

Which of the following primary factors are important both in managing products and managing services? Multiple select question. Capacity planning Forecasting Process management Managing variation Managing patents Managing suppliers

The sequence of organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or service.

Which of the following statements captures the definition of a supply chain? Multiple choice question. The sequence of organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or service. The sequence of storage and transportation that are involved in producing and delivering a product or service. The sequence of suppliers and warehouses that are involved in producing and delivering a product or service. The sequence of suppliers that are involved in producing and delivering a product or service.

It uses "scientific methods" like observation and analysis to improve business operations.

Which of the following statements is correct about scientific management? Multiple choice question. It uses "scientific methods" like observation and analysis to improve business operations. It makes employees responsible for finding the most efficient ways to do their jobs. It is used largely in companies that operate in the sciences.

The Industrial Revolution brought Operations Management into common practice among management.

Which of the following statements is correct about the roots of Operations Management in today's factory system? Multiple choice question. Scientific Management is another name for Operations Management. The advent of computers enabled Operations Management to gain the more widespread use it enjoys today. The Industrial Revolution brought Operations Management into common practice among management.

Business sustainability refers to economic, environmental, and social sustainability.

Which of the following statements is correct? Multiple choice question. Business sustainability refers to economic, environmental, and social sustainability. Business sustainability refers to environmental and social responsibility. Without these, economic sustainability is not possible. Business sustainability refers to economic sustainability only. Environmental and social responsibility are natural consequences.

Quantitative approaches to problem solving frequently try to find mathematical optimal solutions to business problems.

Which of the following statements is correct? Multiple choice question. Quantitative approaches to problem solving frequently try to find mathematical optimal solutions to business problems. Quantitative approaches to problem solving are concerned with assigning costs to everything. Quantitative approaches to problem solving are used to reduce the ambiguity of the decision making process by ignoring qualitative information.

Interchangeable parts increased efficiency and reduced costs by simplifying production processes.

Which of the following statements is correct? Multiple choice question. Standardized parts increased the competition among business rivals because they were all using the same parts and suppliers. Interchangeable parts increased efficiency and reduced costs by simplifying production processes. Interchangeable parts decreased production time but increased the risk associated with overrelying on the suppliers of these parts.

Services are intangibles, implying acts that create value.

Which of the following statements is true about delivery of services? Multiple choice question. Delivery of services generally involves a low degree of customer contact. Services are intangibles, implying acts that create value. Services are performed by human beings, not machines.

A manager should focus on issues or items that will have the most impact.

Which of the following statements is true? Multiple choice question. Managers should first deal with issues or items that will take the least amount of time to resolve. A manager should focus on issues or items that will have the most impact. The Pareto phenomenon states that all issues or items will be of equal importance.

Many of the decisions in one functional area impact other areas.

Which statement about the functional areas in business organizations is correct? Multiple choice question. There are many common activities across the three primary functional areas. Many of the decisions in one functional area impact other areas. A successful organization limits the knowledge that personnel in one primary function have about activities in another primary function.

Quantitative

______ approaches to decision making in operations management have been accepted because of calculators and computers capable of handling the required calculations. Multiple choice question. Comprehensive Qualitative Subjective Quantitative

mass production

_________ _________ involves the production of large volumes of standardized goods by low-skilled or semiskilled workers using highly-specialized equipment.

Operations

__________ management can influence the entire organization.