OM Ch. 1

True/False: A pair of running shoes is an example of a durable good.

False

True/False: A process invariably resides within a department or traditional management function.

False

True/False: Preproduction services of a value chain include warranty and claim services.

False

True/False: The higher the customer participation in service processes, the more certainty a firm has with respect to service time and capacity.

False

True/False: Vehicles, furniture, and dishwashers are examples of nondurable goods.

False

True/False: If the value ratio for a good or service is high, the good or service is perceived favorably by customers.

True

True/False: Proportional increases or decreases in the perceived benefits and the price of a product result in no net change in the value of the product.

True

True/False: The intangible nature of a service makes it difficult to keep a competitor from copying a service encounter design.

True

Which of the following is a similarity between goods and services? a. Both can be standardized for the mass market or customized to individual needs. b. Both require customers to participate extensively in the creation and delivery processes. c. Both can be protected by patents owing to their tangible nature. d. Both use physical inventory as a buffer for fluctuations in demand.

a. Both can be standardized for the mass market or customized to individual needs.

Identify a difference between goods and services. a. Goods can be stored as physical inventory, whereas services cannot be stored as physical inventory. b. The demand for goods cannot be predicted, whereas the demand for services can be easily predicted. c. Customers directly participate in goods-producing activities, whereas customers do not participate in service-providing activities. d. Goods-producing firms rely solely on soft technology, whereas service-providing firms rely solely on hard technology.

a. Goods can be stored as physical inventory, whereas services cannot be stored as physical inventory

Which of the following statements is true of goods? a. Goods-producing industries rely on machines and hard technology to perform work. b. Durable goods are those that are no longer useful once they are used. c. Goods-producing employees require stronger behavioral skills than physical skills. d. The demand for goods is more difficult to predict than the demand for services.

a. Goods-producing industries rely on machines and hard technology to perform work

Which of the following statements is true of operations management (OM)? a. OM is the only function by which managers can directly affect the value provided to all stakeholders. b. The activities involved in OM focus on creating value solely for external customers. c. The application of the concepts and methods of OM is limited to the technology industry. d. OM and its principles are exclusively applicable to firms that produce tangible products.

a. OM is the only function by which managers can directly affect the value provided to all stakeholders

_____ is defined as the science and art of ensuring that goods and services are created and delivered successfully to customers. a. Operations management b. Communications management c. Security management d. Network management

a. Operations management

__________is an organization's commitment to maintain healthy communities and improve the quality of life. a. Social sustainability b. Economic sustainability c. Environmental sustainability d. Political sustainability

a. Social sustainability

Which of the following can be classified as a support process in a business? a. Technology acquisition b. Order shipment c. Product manufacturing d. Human resource management

a. Technology acquisition

In the context of the pre- and postproduction services perspective of a value chain, which of the following statements is true of postproduction services? a. They focus on keeping existing customers. b. They include good and service guarantees. c. They include contract negotiations. d. They focus solely on gaining new customers.

a. They focus on keeping existing customers

_____ is defined as the perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them. a. Value b. Turnover c. Equity d. Revenue

a. Value

Service encounter design is a key activity performed by operations managers that involves: a. determining how to recover from service upsets. b. ensuring that the right amount of resources is available when needed. c. managing the flow of materials, information, people, and money from suppliers to customers. d. predicting the future demand for raw materials, finished goods, and services.

a. determining how to recover from service upsets

Jane is planning to go on a camping trip. She purchases a bottle of mineral water, a pack of biscuits, a small tube of toothpaste, and a toothbrush from the supermarket near her house. The items that Jane has purchased from the supermarket are _____. a. nondurable goods b. intangible goods c. durable goods d. hard goods

a. nondurable goods

Ensuring consumer safety in using goods and services is an example of _____. a. social sustainability b. political sustainability c. environmental sustainability d. economic sustainability

a. social sustainability

__________is an example of a nondurable good. Answers: a. Software b. An airplane c. Furniture d. A dishwasher

a. software

A__________is a network of facilities and processes that describes the flow of materials, finished goods, services, information, and financial transactions from suppliers, through the facilities and processes that create goods and services, and those that deliver them to the customer. a. value chain b. product life cycle c. business cycle d. product-process matrix

a. value chain

A__________is a customer benefit package (CBP) feature that departs from the standard CBP and is normally location specific or firm specific. a. variant b. peripheral product c. bottleneck d. core product

a. variant

__________are warehouses that act as intermediaries between factories and customers, shipping directly to customers or to retail stores where products are made available to customers. a. Business recovery centers b. Distribution centers c. Production centers d. Cost centers

b. Distribution centers

Which of the following is an example of a general management process in a business? a. Technology acquisition b. Human resource management c. Research and development d. Inventory management

b. Human resource management

__________refers to an organization's ability to strategically address current business needs and successfully develop a long-term strategy that embraces opportunities and manages risk for all products, systems, supply chains, and processes to preserve resources for future generations. a. Scalability b. Sustainability c. Scheduling d. Forecasting

b. Sustainability

In the context of the pre- and postproduction services perspective of a value chain, which of the following statements is true of preproduction services? a. They focus solely on keeping an existing customer. b. They focus on gaining a customer. c. They include recycling and remanufacturing initiatives. d. They include on-site installation and application services.

b. They focus on gaining a customer.

Which of the following statements is true of service facilities? a. They require employees with stronger technical skills than behavioral skills. b. They need to be in close proximity to customers. c. They store their services as physical inventory. d. They rely more on hard technology than soft technology to perform work.

b. They need to be in close proximity to customers

In order to increase value, an organization must: a. increase both perceived benefits and price or cost proportionally. b. decrease price or cost while holding perceived benefits constant. c. increase perceived benefits while decreasing actual benefits. d. decrease both perceived benefits and price or cost proportionally.

b. decrease price or cost while holding perceived benefits constant

A__________is one that is no longer useful once it's used, or lasts for less than three years. a. slow-moving consumer good b. nondurable good c. hard good d. heavy-duty good

b. nondurable good

North Zone Bank gives all its customers a complimentary credit card along with a custom-made wallet when they open an account with the bank. The credit card and the wallet are examples of _____ offered by the bank. a. primary goods b. peripheral goods c. core offerings d. intangible products

b. peripheral goods

In the context of customer benefit packages,__________are those that are not essential to the primary service, but enhance it. a. tertiary services b. peripheral services c. central services d. core services

b. peripheral services

In the context of the pre- and postproduction services perspective of a value chain, which of the following are postproduction services of a value chain? a. Contract negotiations b. Purchasing services c. Recycling and remanufacturing initiatives d. Product and service guarantees

c. Recycling and remanufacturing initiatives

Which of the following statements is true of sustainability? a. The application of sustainable technology is limited to the agriculture industry. b. Sustainability practices are limited to service-providing firms. c. Sustainability practices lead to better public perception. d. The use of sustainable technology reduces short-term operational costs.

c. Sustainability practices lead to better public perception

Which of the following statements is true of a value chain? a. The input-output framework of a value chain suggests that the value chain begins with inputs from customers. b. A value chain is narrower in scope than a supply chain. c. The pre- and postservice framework of a value chain emphasizes that service is a critical component of traditional manufacturing processes. d. A value chain solely focuses on the operations function of an organization.

c. The pre- and post-service framework of a value chain emphasizes that service is a critical component of traditional manufacturing processes

A gracious welcome by an employee at the hotel check-in counter is an example of: a. a service blueprint. b. social sustainability. c. a moment of truth. d. predictive analytics.

c. a moment of truth

Purchasing is a key activity performed by operations managers that involves: a. determining when resources such as employees and equipment should be assigned to work. b. using technology to improve productivity and respond faster to customers. c. coordinating the acquisition of materials, supplies, and services. d. ensuring that goods, services, and processes will meet customer expectations and requirements.

c. coordinating the acquisition of materials, supplies, and services

When business analytics is used to understand past and current performance, it is called _____. a. prescriptive analytics b. predictive analytics c. descriptive analytics d. decision analytics

c. descriptive analytics

Building a high-performing organization with a capable leadership and workforce is an example of _____. a. environmental sustainability b. political sustainability c. economic sustainability d. technological sustainability

c. economic sustainability

Predictive analytics is used by organizations to: a. identify the best decisions for a particular situation. b. understand past and current performance. c. envisage the future by detecting patterns and relationships in data. d. analyze business policies through visual representations.

c. envisage the future by detecting patterns and relationships in data

__________refers to raw materials, work-in-process, or finished goods that are maintained to support production or satisfy customer demand. a. Throughput b. A variant c. A subsidy d. Inventory

d. Inventory

__________is a key activity performed by operations managers that involves deciding the best way to assign people to work tasks and responsibilities. a. Forecasting b. Process design c. Reengineering d. Job design

d. Job design

Which of the following is an example of a primary service? a. An antivirus program given along with a smartphone b. The customer service hotline of an electronics company c. A pen drive given along with a laptop d. The cooling provided by an air conditioner

d. The cooling provided by an air conditioner

Which of the following statements is true of goods-producing processes? a. They use employees as a substitute for physical inventory. b. They require extensive customer participation in service creation and delivery. c. They require more flexibility and adaptation to special circumstances than service processes. d. They are mechanistic and controllable because of the lack of customer participation.

d. They are mechanistic and controllable because of the lack of customer participation

Which of the following statements is true of service employees? a. They rely more on hard technology than soft technology to perform work. b. They perform mechanized and rigid processes. c. They have little or no interaction with customers. d. They require good human interaction skills and strong cross-selling skills.

d. They required good human interaction skills and strong cross-selling skills

A__________is one that does not quickly wear out and typically lasts at least three years. a. fast-moving consumer good b. soft good c. consumer packaged good d. durable good

d. durable good

Jason and his friend went to a coffee shop. They ordered two cappuccinos and received a complimentary chocolate waffle and cookie along with their order. In the context of a customer benefit package (CBP), the chocolate waffle and the cookie are _____. a. primary goods b. intangible products c. core offerings d. peripheral goods

d. peripheral goods

A _____ is a sequence of activities that is intended to create a certain result, such as a physical good, a service, or information. a. task b. variant c. matrix d. process

d. process