Chapter 1 Operations and Productivity

A) crew scheduling

8) Which of the following tasks within an airline company are related to operations? A) crew scheduling B) international monetary exchange C) sales D) advertising E) accounts payable

C) supply chain

9) What is a global network of organizations and activities that supply a firm with goods and services? A) supply tree B) provider network C) supply chain D) vendor network E) vendor tree

E) all of the above.

1) At Hard Rock Café, tasks that reflect operations or operations management include: A) designing efficient layouts. B) providing meals. C) receiving ingredients. D) preparing effective employee schedules. E) all of the above.

B) instant communication

10) Which of the following fosters specialization and worldwide supply chains? A) more expensive transportation B) instant communication C) economies of scope D) managers with a broad knowledge of many things E) high trade tariffs

E) A and D

11) Reasons to study operations management include: A) studying how people organize themselves for productive enterprise. B) knowing how goods and services are consumed. C) understanding what human resource managers do. D) learning about a costly part of the enterprise. E) A and D

E) all of the above.

12) Reasons to study operations management include learning about: A) how people organize themselves for productive enterprise. B) how goods and services are produced. C) what operations managers do. D) a costly part of the enterprise. E) all of the above.

D) plan, organize, staff, lead, and control

13) What are the five elements in the management process? A) plan, direct, update, lead, and supervise B) accounting, finance, marketing, operations, and management C) organize, plan, control, staff, and manage D) plan, organize, staff, lead, and control E) plan, lead, organize, manage, and control

D) pricing

14) Which of the following is NOT an element of the management process? A) controlling B) leading C) planning D) pricing E) staffing

C) the identification of customers' wants and needs.

15) An operations manager is NOT likely to be involved in: A) the design of goods and services to satisfy customers' wants and needs. B) the quality of goods and services to satisfy customers' wants and needs. C) the identification of customers' wants and needs. D) work scheduling to meet the due dates promised to customers. E) maintenance schedules.

A) creating the company income statement.

16) All of the following decisions fall within the scope of operations management EXCEPT for: A) creating the company income statement. B) design of goods and services. C) location strategy. D) managing quality. E) human resources and job design.

E) all of the above.

17) The 10 strategic operations management decisions include: A) layout strategy. B) maintenance. C) process and capacity design. D) managing quality. E) all of the above.

D) mass customization

18) Which of the following is NOT one of the 10 strategic operations management decisions? A) layout strategy B) maintenance C) process and capacity design D) mass customization E) supply chain management

C) process and capacity design

19) Which of the following is one of the 10 strategic operations management decisions? A) depreciation policy for tax returns B) advertising C) process and capacity design D) pricing E) debt/equity ratio

D) preparing employee schedules.

2) An operations task performed at Hard Rock Café is: A) borrowing funds to build a new restaurant. B) advertising changes in the restaurant menu. C) calculating restaurant profit and loss. D) preparing employee schedules. E) all of the above.

D) I, II, III

20) Which of the following are among the 10 strategic operations management decisions? I. design of goods and services II. managing quality III. layout strategy IV. marketing V. pricing of goods and services A) I, II, V B) I, II, IV C) II, III, V D) I, II, III E) All of the above

E) All of the above influence layout decisions.

21) Which of the following influences layout design? A) inventory requirements B) capacity needs C) personnel levels D) technology E) All of the above influence layout decisions.

B) price

22) Which of the following is NOT a strategic operations management decision? A) maintenance B) price C) layout design D) quality E) inventory

D) statistical quality control.

23) Walter Shewhart is listed among the important people of operations management because of his contributions to: A) assembly line production. B) measuring productivity in the service sector. C) just-in-time inventory methods. D) statistical quality control. E) information technology.

A) 1920s; statistical sampling

24) Walter Shewhart, in the ________, provided the foundations for ________ in operations management. A) 1920s; statistical sampling B) United Kingdom; mass production C) U.S. Army; logistics D) nineteenth century; interchangeable parts E) 1900s; queuing theory

D) nineteenth century; interchangeable parts

25) Eli Whitney, in the ________, provided the foundations for ________ in operations management. A) 1920s; statistical sampling B) United Kingdom; mass production C) U.S. Army; logistics D) nineteenth century; interchangeable parts E) 1890s; queuing theory

C) Eli Whitney

26) Who was the person most responsible for popularizing interchangeable parts in manufacturing? A) Frederick Winslow Taylor B) Henry Ford C) Eli Whitney D) Whitney Houston E) Lillian Gilbreth

B) Frederick W. Taylor.

27) The "Father of Scientific Management" is: A) Henry Ford. B) Frederick W. Taylor. C) W. Edwards Deming. D) Frank Gilbreth. E) just a figure of speech, not a reference to a person.

C) assembly line operations.

28) Henry Ford is noted for his contributions to: A) material requirements planning. B) statistical quality control. C) assembly line operations. D) scientific management. E) time and motion studies.

D) W. Edwards Deming

29) Who among the following is associated with contributions to quality control in operations management? A) Charles Babbage B) Henry Ford C) Frank Gilbreth D) W. Edwards Deming E) Henri Fayol

D) to all firms, whether manufacturing or service.

3) Operations management is applicable: A) mostly to the service sector. B) to services exclusively. C) mostly to the manufacturing sector. D) to all firms, whether manufacturing or service. E) to the manufacturing sector exclusively.

E) all of the above

30) The field of operations management is shaped by advances in which of the following fields? A) chemistry and physics B) industrial engineering and management science C) biology and anatomy D) information technology E) all of the above

A) The person most responsible for initiating the use of interchangeable parts in manufacturing was Eli Whitney.

31) Which of the following statements is TRUE? A) The person most responsible for initiating the use of interchangeable parts in manufacturing was Eli Whitney. B) The origins of management by exception are generally credited to Frederick W. Taylor. C) The person most responsible for initiating the use of interchangeable parts in manufacturing was Walter Shewhart. D) The origins of the scientific management movement are generally credited to Henry Ford. E) The person most responsible for initiating the use of interchangeable parts in manufacturing was Henry Ford.

A) counseling

32) Which of the following is the best example of a pure service? A) counseling B) oil change C) heart transplant D) electric Co-Op E) restaurant

D) 86%

33) The service sector makes up approximately what percentage of all jobs in the United States? A) 12% B) 40% C) 66% D) 86% E) 94%

A) Tangible goods are generally produced and consumed simultaneously; services are not.

34) Which is NOT true regarding differences between goods and services? A) Tangible goods are generally produced and consumed simultaneously; services are not. B) Most goods are common to many customers; services are often unique to the final customer. C) Services tend to have a more inconsistent product definition than goods. D) Services tend to have higher customer interaction than goods. E) None, i.e., all of the above are true.

D) Goods tend to have higher customer interaction than services.

35) Which is NOT true regarding differences between goods and services? A) Services are generally produced and consumed simultaneously; tangible goods are not. B) Services tend to be more knowledge-based than goods. C) Services tend to have a more inconsistent product definition than goods. D) Goods tend to have higher customer interaction than services. E) Reselling is unusual in services; goods often have some residual value.

D) elementary education

36) Which of the following services is LEAST likely to be unique, i.e., customized to a particular individual's needs? A) dental care B) hairdressing C) legal services D) elementary education E) computer consulting

B) easy to store

37) Which of the following is NOT a typical service attribute? A) intangible product B) easy to store C) customer interaction is high D) simultaneous production and consumption E) difficult to resell

A) production and consumption occur simultaneously

38) Which of the following attributes is most typical of a service? A) production and consumption occur simultaneously B) tangible C) mass production D) consistency E) easy to automate

D) Both have quality standards.

39) Which of the following is a similarity between goods and services? A) mass production B) consistency C) automation D) Both have quality standards. E) Both can usually be kept in inventory.

D) marketing, production/operations, and finance/accounting

4) Which of the following are the primary functions of all organizations? A) production/operations, marketing, and human resources B) marketing, human resources, and finance/accounting C) sales, quality control, and production/operations D) marketing, production/operations, and finance/accounting E) research and development, finance/accounting, and purchasing

D) 20%

40) Illiteracy and poor diets have been known to cost countries up to what percent of their productivity? A) 2% B) 5% C) 10% D) 20% E) 50%

C) 12 covers/hr.

41) A foundry produces circular utility access hatches (manhole covers). If 120 covers are produced in a 10-hour shift, the productivity of the line is: A) 1.2 covers/hr. B) 2 covers/hr. C) 12 covers/hr. D) 1200 covers/hr. E) 120 covers/hr.

A) 14.4 covers/hr.

42) A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it would then be: A) 14.4 covers/hr. B) 24 covers/hr. C) 240 covers/hr. D) 1200 covers/hr. E) 10 covers/hr.

D) 200 valves/hr.

43) Gibson Valves produces cast bronze valves on an assembly line. If 1600 valves are produced in an 8-hour shift, the productivity of the line is: A) 2 valves/hr. B) 40 valves/hr. C) 80 valves/hr. D) 200 valves/hr. E) 1600 valves/hr.

C) 220 valves/hr.

44) Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is increased by 10%, it would then be: A) 180 valves/hr. B) 200 valves/hr. C) 220 valves/hr. D) 880 valves/hr. E) 1760 valves/hr.

C) 25%.

45) Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labor productivity will increase by: A) 10%. B) 20%. C) 25%. D) 40%. E) 50%.

A) 25 boxes/hr.

46) The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. What is the productivity of the plant? A) 25 boxes/hr. B) 50 boxes/hr. C) 5000 boxes/hr. D) 0.04 boxes/hr. E) 250 boxes/hr.

B) 40.6 boxes/hr.

47) The Dulac Box plant works two 8-hour shifts each day. In the past, 500 cypress packing boxes were produced by the end of each day. The use of new technology has enabled them to increase productivity by 30%. Productivity is now approximately: A) 32.5 boxes/hr. B) 40.6 boxes/hr. C) 62.5 boxes/hr. D) 81.25 boxes/hr. E) 300 boxes/hr.

A) It has not changed

48) The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to productivity? A) It has not changed. B) It has increased by 37.5 boxes/hr. C) It has increased by 20%. D) It has decreased by 8.3%. E) It has decreased by 9.1%.

B) the fact that precise units of measure are often unavailable.

49) Productivity measurement is complicated by: A) the competition's output. B) the fact that precise units of measure are often unavailable. C) stable quality. D) the workforce size. E) the type of equipment used.

B) W. Edwards Deming

5) Which of the following pioneers was NOT making a professional impact during the Scientific Management Era? A) Frank Gilbreth B) W. Edwards Deming C) Henry L. Gantt D) Lillian Gilbreth E) Frederick W. Taylor

D) multifactor productivity.

50) The total of all outputs produced by the transformation process divided by the total of the inputs is: A) utilization. B) greater in manufacturing than in services. C) defined only for manufacturing firms. D) multifactor productivity. E) single-factor productivity.

C) management

51) Which productivity variable has the greatest potential to increase productivity? A) labor B) globalization C) management D) capital E) energy

B) decrease input 15%

52) Which of the following nets the largest productivity improvement? A) increase output 15% B) decrease input 15% C) increase both output and input by 5% D) increase output 10%, decrease input 3% E) decrease input 10%, increase output 3%

D) decreasing inputs while holding outputs steady.

53) Productivity can be improved by: A) increasing inputs while holding outputs steady. B) decreasing outputs while holding inputs steady. C) increasing inputs and outputs in the same proportion. D) decreasing inputs while holding outputs steady. E) none of the above.

A) management; over one-half

54) The largest contributor to productivity increases is ________, estimated to be responsible for ________ of the annual increase. A) management; over one-half B) Mr. Deming; one-half C) labor; two-thirds D) capital; 90% E) technology; over one-half

B) management.

55) The factor responsible for the largest portion of productivity increase in the United States is: A) labor. B) management. C) capital. D) All three combined; it is impossible to determine the contribution of individual factors. E) none of these.

E) Service operations are typically capital intensive.

56) Which of the following is NOT true when explaining why productivity tends to be lower in the service sector than in the manufacturing sector? A) Services are typically labor-intensive. B) Services are often difficult to evaluate for quality. C) Services are often an intellectual task performed by professionals. D) Services are difficult to automate. E) Service operations are typically capital intensive.

B) labor, capital, and management.

57) Three commonly used productivity variables are: A) quality, external elements, and precise units of measure. B) labor, capital, and management. C) technology, raw materials, and labor. D) education, diet, and social overhead. E) quality, efficiency, and low cost.

C) services usually are labor-intensive.

58) The service sector has lower productivity improvements than the manufacturing sector because: A) the service sector uses less skilled labor than manufacturing. B) the quality of output is lower in services than manufacturing. C) services usually are labor-intensive. D) service sector productivity is hard to measure. E) the service sector is often easy to mechanize and automate.

E) All of the above make service productivity more difficult.

59) Productivity tends to be more difficult to improve in the service sector because the work is: A) often difficult to automate. B) typically labor-intensive. C) frequently processed individually. D) often an intellectual task performed by professionals. E) All of the above make service productivity more difficult.

A) auditing

6) Which of the following would NOT be an operations function in a commercial bank? A) auditing B) teller scheduling C) maintenance D) collection E) check clearing

E) between 8 and 9 hours

60) A small metal shop operates 10 hours each day, producing 100 parts/hour. If productivity were increased 20%, how many hours would the plant have to work to produce 1000 parts? A) less than 2 hours B) between 9 and 10 hours C) between 2 and 6 hours D) between 6 and 8 hours E) between 8 and 9 hours

D) 25%

61) A cleaning company uses 10 lbs each of chemicals A, B and C for each house it cleans. After some quality complaints, the company has decided to increase its use of chemical A by an additional 10 lbs for each house. By what % has productivity (houses per pound of chemical) fallen? A) 0% B) 10% C) 15% D) 25% E) 33%

B) 8.3%

62) A cleaning company uses $10 of chemicals, $40 of labor, and $5 of misc. expenses for each house it cleans. After some quality complaints, the company has decided to increase its use of chemicals by 50%. By what percentage has multifactor productivity fallen? A) 0% B) 8.3% C) 25% D) 50% E) 16.7%

E) None of the above are exceptions, i.e., all are current challenges.

63) Current challenges in operations management include all of the following EXCEPT: A) just-in-time performance. B) rapid product development. C) mass customization. D) empowered employees. E) None of the above are exceptions, i.e., all are current challenges.

C) Sustainable production is giving way to a low-cost focus.

64) Which of the following statements about challenges in operations management is FALSE? A) Job specialization is giving way to empowered employees. B) Local or national focus is giving way to global focus. C) Sustainable production is giving way to a low-cost focus. D) Rapid product development is partly the result of shorter product cycles. E) The goal of mass customization is to produce customized products, whenever and wherever needed.

D) increasing executive pay

65) Which of the following is NOT among the ethical and social challenges facing operations managers? A) honoring stakeholder commitments B) training, retaining, and motivating employees C) efficiently developing and producing safe high-quality green products D) increasing executive pay E) providing a safe workplace

E) all of the above.

66) A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include: A) lenders. B) suppliers. C) owners. D) employees. E) all of the above.

E) stakeholders

67) What term is given to those individuals with a vested interest in an organization, including customers, distributors, suppliers, owners, lenders, employees, and community members? A) alumni B) investors C) vestors D) stockholders E) stakeholders

D) generating the demand for the organization's products or services.

7) The marketing function's main concern is with: A) producing goods or providing services. B) procuring materials, supplies, and equipment. C) building and maintaining a positive image. D) generating the demand for the organization's products or services. E) securing monetary resources.