Intro to Operation and Supply Chain Management Ch 1
This year, Druehl, Inc., will produce 57,600 hot water heaters at its plant in Delaware, in order to meet expected global demand. To accomplish this, each laborer at the plant will work 160 hours per month. If the labor productivity at the plant is 0.25 hot water heaters per labor hour, how many laborers are employed at the plant? Number of laborers employed by the plant = laborers
120 laborers
Which of the following organizations does NOT belong to the service sector? A. Ford Motor Company B. Costco C. San Diego Zoo D. Southwest Airlines
A. Ford Motor Company
Which of these statements accurately captures a current trend in operations? A. Rapid product development. B. Jobs are increasingly specialized as workers focus on basic assembly tasks. C. There is increased focus on local market and local competition. D. Mass production at the expense of product variety.
A. Rapid product development.
Which of the following is NOT among the ethical and social challenges facing operations managers? A. increasing executive pay B. training, retaining, and motivating employees C. efficiently developing and producing safe high-quality green products D. providing a safe workplace E. honoring stakeholder commitments
A. increasing executive pay
Which of the following trends is NOT part of the exciting OM challenges currently facing operations managers? A. local focus B. rapid product development C. sustainability D. supply chain partnering
A. local focus
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. stakeholders B. alumni C. stockholders D. investors E. vestors
A. stakeholders
The person who introduced standardized, interchangeable parts was A. Eli Whitney. B. Henry Ford. C. Frederick W. Taylor. D. W. Edwards Deming.
A. Eli Whitney.
Which of the following is NOT one of the four reasons that we study OM? A. We want to understand what marketing managers do. B. It is such a costly part of an organization. C. We want to know how goods and services are produced. D. It is one of the three major functions of any organization.
A. We want to understand what marketing managers do.
Which of the following activities at a commercial bank is NOT an operations activity? A. auditing B. security C. check clearing D. maintenance
A. auditing
Which of the following is NOT one of the factors that fosters specialization and worldwide supply chains? A. marketing B. specialized expert knowledge C. cheaper transportation D. instant communication
A. marketing
Which of these is NOT one of the 10 strategic OM decisions? A. marketing B. scheduling C. managing quality D. layout strategies
A. marketing
Which of the following is NOT a characteristic of services? A. standardized product B. intangible C. produced and consumed simultaneously D. unique
A. standardized product
Which of the following is NOT considered to be a stakeholder? A. community members B. competitors C. customers D. distributors
B. competitors
A global network of organizations and activities that supply a firm with goods and services is referred to as A. operations management. B. a supply chain. C. production. D. business functions
B. a supply chain
Which operations function at a manufacturing facility strives for the efficient use of machines, space, and personnel? A. process analysis B. industrial engineering C. design D. production and inventory control
B. industrial engineering
Which of these is NOT one of the basic functions of the management process? A. leading B. inspecting C. controlling D. staffing
B. inspecting
A large percentage of the revenue of most firms is spent on which function? A. research and development B. operations C. marketing D. finance
B. operations
Which of the following OM decisions determines how a good or service is produced and commits management to specific technology, quality, human resources, and capital investment? A. managing quality B. process and capacity design C. design of goods and services D. human resources and job design
B. process and capacity design
Which of the following is an example of a "hidden" production function? A. producing a computer B. transplanting a liver C. assembling a motorcycle D. manufacturing a television
B. transplanting a liver
Which of the following does NOT contribute to OM? A. other disciplines including industrial engineering, statistics, management, and economics B. unsystematic processing of data C. innovations from physical sciences D. information technology
B. unsystematic processing of data
Which of the following is NOT one of the reasons operations managers want to work with their supply chains to viciously cut inventories at every level? A. Inventory hides quality issues. B. Inventory requires financial resources. C. Inventory provides safety against higher-than expected demand. D. Inventory constrains response to ever-shorter product life cycles.
C. Inventory provides safety against higher-than expected demand.
Productivity increases when A. inputs increase while outputs remain the same. B. outputs decrease while inputs remain the same. C. inputs decrease while outputs remain the same. D. inputs and outputs increase proportionately.
C. inputs decrease while outputs remain the same.
Which of the following best defines scheduling? A. Determines and implements long- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. B. Determines and implements long- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. C. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. D. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands.
C. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands.
What is the goal for mass customization? A. The goal is to seek creative designs, efficient production, and high-quality goods via international collaboration. B. The goal is to enrich jobs and move more decision making to the individual contributor. C. The goal is to produce customized products, whenever and wherever needed. D. The goal is to let operations managers work with their supply chain to viciously cut inventories at every level.
C. The goal is to produce customized products, whenever and wherever needed.
The production process at Hard Rock Cafe does NOT include which of the following activities? A. placing raw materials in cold storage B. cooking C. advertising D. receiving
C. advertising
The service sector constitutes what percentage of employment in the United States? A. between 70% to 80% B. between 50% to 60% C. between 80% to 90% D. between 60% to 70%
C. between 80% to 90%
The capital investment each year in the United States usually A. remains constant. B. decreases unless favorably taxed. C. increases. D. decreases.
C. increases
Which of the following is NOT considered to be one of the three primary functions that all organizations perform? A. marketing B. production/operations C. research and development D. finance/accounting
C. research and development
Which of the following activities at an airline is NOT an operations activity? A. catering B. crew scheduling C. sales D. flying
C. sales
The economic activities that typically produce an intangible product are referred to as A. products. B. phantoms. C. services. D. goods.
C. services.
Competition in the 21st century is no longer between companies; it is between A. individuals. B. technologies. C. supply chains. D. countries.
C. supply chains
The father of scientific management is A. Henry L. Gantt. B. Henry Ford. C. Eli Whitney. D. Frederick W. Taylor.
D. Frederick W. Taylor.
The person who believed that management must do more to improve the work environment and processes so that quality can be improved was A. Walter Shewhart. B. Eli Whitney. C. Henry Ford. D. W. Edwards Deming.
D. W. Edwards Deming.
Which of the following tasks would NOT typically represent an operations management activity at Hard Rock Cafe? A. receiving a shipment of incoming food ingredients B. designing an efficient layout C. preparing an employee schedule D. filing a tax return
D. filing a tax return
The creation of goods and services is referred to as: A. formation. B. design. C. transformation. D. production.
D. production
In general, the supply chain starts with A. a distributor. B. research and development. C. final customers at the retail store. D. the provider of basic raw materials
D. the provider of basic raw materials
A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include: A. owners. B. suppliers. C. employees. D. lenders. E. All of the above.
E. All of the above.
Brown's, a local bakery, is worried about increased costs particularly energy. Last year's records can provide a fairly good estimate of the parameters for this year. Wende Brown, the owner, does not believe things have changed much, but she did invest an additional $2,500 for modifications to the bakery's ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery's productivity to see if the modifications were beneficial. You have the following data to work with: Last Year Now Production (dozen) 1,600 1,600 Labor (hours) 340 320 Capital Investment ($) 15,000 17,500 Energy (BTU) 3,000 2,750 Energy productivity increase = Capital productivity increase = Labor productivity increase =
Energy productivity increase = 9.09% Capital productivity increase = -14.29% Labor productivity increase = 6.16%
Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives. True False
True
Carbondale Casting produces cast bronze valves on a 15-person assembly line. On a recent day, 180 valves were produced during a 6-hour shift. a) Labor productivity of the line = valves/labor hour b) John Goodale, the manager at Carbondale, changed the layout and was able to increase production to 200 units per 6-hour shift. The new labor productivity= valves/labor hour c) The percentage of productivity increase= %
a) 2.00 b) 2.22 c) 11%
In December, General Motors produced 7,200 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor hour during that month. 320 laborers were employed at the plant that month. a) In the month of December the average number of hours worked per laborer = b) If productivity can be increased to 0.15 vans per hour, the average number of hours worked per laborer =
a) 225 hours/laborer b) 150 hours/laborer
Lori Cook produces Final Exam Care Packages for resale by her sorority. She is currently working a total of 5 hours per day to produce 160 care packages. a) Lori's productivity = packages/hour (round your response to two decimal places). Lori thinks that by redesigning the package she can increase her total productivity to 200 care packages per day. b) Lori's new productivity = packages/hour (round your response to two decimal places). c) If Lori redesigns the package, the productivity increases by
a) 32 b) 40 c) 25%
Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 200 boxes. a) Their productivity = boxes/hour Chuck and his employees have discussed redesigning the process to improve efficiency. Suppose they can increase the rate to 400 boxes per day. b) Their new productivity = boxes/hour c) The unit increase in productivity is boxes/hour d) The percentage increase in productivity is
a) Their productivity = 5 boxes/hour b) Their new productivity = 10 boxes/hour c) The unit increase in productivity is 5 boxes/hour d) The percentage increase in productivity is 100%
Lake Charles Seafood makes 550 wooden packing boxes for fresh seafood per day, working in two 10-hour shifts. Due to increased demand, plant managers have decided to operate three 8-hour shifts per day instead. The plant is now able to produce 700 boxes per day. a) Before the change in work rules, the company's productivity per day = After the change, the new productivity level per day= b) Based on the changes made, the percent increase in productivity = c) If production is increased to 750 boxes per day (with the three 8-hour shifts), the new productivity=
a) productivity per day= 27.52 boxes/hour new productivity per day= 29.17 boxes/hour b) percent increase in productivity = 6.07% c) new productivity=31.25 boxes/hour
