OM Chapter 1,2,7,8,9

Which of the following would not be an operations function in a commercial bank? -maintenance -collection -auditing -cheque clearing -teller scheduling

auditing

The typical full- service restaurant uses a product- focused process. -True -False

False

A job shop is an example of a(n) -specialized process. -line process. -intermittent process. -continuous process. -repetitive process.

intermittent process.

Which of the following statements regarding the Dreamliner 787 is true? -Boeing has found no international partners. -The new aircraft incorporates a limited number of aerospace -technologies. -Boeing has found partners in over a dozen countries. -Boeing will add 99% of the aircraft's value. -The new aircraft uses engines from only one manufacturer.

Boeing has found partners in over a dozen countries.

One reason for global operations is to gain improvements in the supply chain. -True -False

True

Which one of the following products is most likely made in a job shop environment? -television sets -canned vegetables -paper forms -cigarettes -rolls of newsprint

paper forms

An assembly line is an example of a -specialized process. -product-focused process. -repetitive process. -process-focused process. -line process.

repetitive process.

Which of the following industries is most likely to have low equipment utilization? -television manufacturing -commercial baking -chemical processing -restaurants -auto manufacturing

restaurants

Henry Ford is known as the Father of Scientific Management. -True -False

False

Which of the following workers is the most productive? -$10 wages, 1 part produced -$50 wages, 10 parts produced -$30 wages, 5 parts produced -$500 wages, 100 parts produced -$100 wages, 21 parts produced

$100 wages, 21 parts produced

An employee produces 15 parts during a shift in which he made $90. The labour content of the product is -$5. -$90. -$60. -$6. -$0.167.

$6.

Utilization of the total "cube" is the dominant consideration in office layout. -True -False

False

Which of the following is an example of globalization of operations strategy? -Boeing's Dreamliner has engines with higher fuel/payload efficiency. -Porter Airlines focuses on short-haul flights. -A Chinese manufacturer, Haier, now operates plants in the United States. -Hard Rock Café provides an "experience differentiation" at its restaurants. -Ford's new auto models have dent-resistant panels.

A Chinese manufacturer, Haier, now operates plants in the United States.

FedEx chose Memphis, Tennessee, as its U.S. hub because -it needed a means to reach cities to which it did not have direct flights. -the airport has relatively few hours of bad weather closures. -the firm believed that a hub system was superior to traditional city-to-city flight scheduling. -the city is in the centre of the U.S., geographically. -All of the above are true.

All of the above are true.

Which of the following tasks within an Airline Company are related to Operations? -Crew Scheduling -Advertising -Accounts Payable -Sales -International Monetary Exchange

Crew Scheduling

"How much inventory of this item should we have?" is within the critical decision area of managing quality. -True -False

False

FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee. -True -False

False

Generally, the objective of the location decision is to maximize the firm's profit. -True -False

False

Harley- Davidson, because it has so many possible combinations of products, utilizes the process strategy of mass customization. -True -False

False

In order to have a career in operations management one must have a degree in statistics or quantitative methods. -True -False

False

NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia. -True -False

False

The layout approach that addresses trade- offs between space and material handling is called the fixed position layout. -True -False

False

The work cell layout, a special arrangement of machinery and equipment to focus on the production of a single product or group of related products, is for manufacturing applications and has no relevance to services. -True -False

False

Which of the following statements regarding FedEx is true? -Its hub in Memphis, Tennessee, was selected because of its low cost. -Memphis is FedEx's only hub airport in the U.S. -FedEx believes the hub system helps reduce mishandling and delays due to better controls. -FedEx uses a hub system in the United States, but a city-to-city network in other countries. -Memphis, Tennessee, is the only hub in the company's global flight network.

FedEx believes the hub system helps reduce mishandling and delays due to better controls.

Which of the following is an example of a response to the global environment? -Boeing's local sales and production -Benneton's strict limits on design, production, and distribution -Ford's partnerships with Volvo and Mazda -a Chinese manufacturer, Haier, producing in China -Ford's partnerships with GM

Ford's partnerships with Volvo and Mazda

Which of the following statements regarding the centre-of-gravity method is false? -The optimal x- and y-coordinates are calculated separately. -It is designed to minimize the maximum possible travel distance to any location. -The weights used are the quantity of goods moved to or from each location. -The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water. -The origin of the coordinate system and the scale used are arbitrary, just as long as the relative distances are correctly represented.

It is designed to minimize the maximum possible travel distance to any location.

Which of the following is not true about an organization's process strategy? -It must meet various constraints, including cost. -It is not concerned with volume of output. -It is concerned with how resources are transformed into goods and services. -It will have long-run impact on efficiency and flexibility of production. -It is the same as its transformation strategy.

It is not concerned with volume of output.

________ and ________ are to key country success factors as ________ and ________ are to key region success factors. -Labour cost; currency risk; land costs; proximity to customers -Cultural issues; location of markets; site size and cost; zoning restrictions -Cultural issues; proximity to customers; environmental impact; zoning restrictions. -Land costs; proximity to customers; labour cost; air and rail systems -Exchange rates; labour availability; site size and cost; environmental impact

Labour cost; currency risk; land costs; proximity to customers

Why is Northern Mexico used as a cluster for electronics firms? -venture capitalists located nearby -high per capita GDP -natural resources of land and climate -NAFTA -high traffic flows

NAFTA

Which of the following is true of maquiladoras? -They originated in China. -They are not available to Canadian companies. -They discourage foreign businesses from outsourcing. -They assess tariffs only on the value-added work done. -They can be found in many countries.

They assess tariffs only on the value-added work done.

A firm's process strategy is its approach to transforming resources into goods and services. -True -False

True

In process- focused facilities, equipment utilization is low. -True -False

True

Intermittent processes are organized around processes. -True -False

True

Lists have been developed that rank countries on issues such as "competitiveness" and "corruption." -True -False

True

McDonald's "Made for You" kitchen system represents a strategic layout decision even though an obvious benefit of the system is a dramatic reduction in the inventory of food prepared in advance. -True -False

True

NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United States. -True -False

True

One reason to study operations management is to learn how people organize themselves for productive enterprise. -True -False

True

Production processes are being dispersed to take advantage of national differences in labour costs. -True -False

True

The World Trade Organization has helped to significantly reduce tariffs around the world. -True -False

True

The objective of layout strategy is to develop an effective and efficient layout that will meet the firm's competitive requirements. -True -False

True

The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. -True -False

True

The ratio of labour cost per day to productivity, in units per day, is the labour cost per unit. -True -False

True

When innovation replaces cost as a firm's focus for location decisions, the presence of other state- of- the- art firms is a plus, not a negative, for the firm's competitiveness. -True -False

True

Which of the following pioneers was not making a professional impact during the Scientific Management Era? -Frederick W. Taylor -Henry L. Gantt -W. Edwards Deming -Frank Gilbreth -Lillian Gilbreth

W. Edwards Deming

A good layout requires determining -environment and aesthetics. -capacity and space requirements. -material handling requirements. -cost of moving between various work areas. -all of the above.

all of the above.

Slotting fees -can amount to as much as $100,000. -can increase the ability of small businesses to introduce new products. -are charged by wholesalers to stock a product. -are paid by manufacturers to retailers. -are part of Wal-Mart's business practices.

are paid by manufacturers to retailers.

Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking? -based on competitiveness -based on average duration between presidential/prime minister -elections -based on corruption -based on magnitude of government social programs -based on cost of doing business

based on corruption

Which of the following is not one of the Ten Critical Decisions of Operations Management? -human resources and job design- -managing quality -determining the financial leverage position -design of goods and services -location strategy

determining the financial leverage position

The objective of layout strategy is to -maximize flexibility. -develop an efficient and effective system that meets competitive requirements. -minimize space used. -minimize material handling costs. -minimize cost.

develop an efficient and effective system that meets competitive requirements.

Which of the following products is not likely to be assembled on a repetitive process line? -dishwashers -automobiles -television sets -personal computers -floral arrangement

floral arrangement

The term maquiladora is synonymous with -free trade zones in Mexico. -areas that do not meet U.S. standards for workplace safety and pollution. -Chinese forced labour camps. -home-based or cottage industry. -taxes charged by the Mexican government.

free trade zones in Mexico.

The marketing function's main concern is with -procuring materials, supplies, and equipment. -generating the demand for the organization's products or services. -securing monetary resources. -building and maintaining a positive image. -producing goods or providing services.

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

Boeing's new 787 Dreamliner -uses engines from Japan. -has its fuselage sections built in Australia. -has increased efficiency from new engine technology. -results from a partnership of about a dozen companies. -is assembled in Washington, D.C.

has increased efficiency from new engine technology.

A product-focused process is commonly used to produce -high volume products of either high or low variety. -high volume, low variety products. -low variety products at either high or low volume. -low volume, high variety products. -high volume, high variety products.

high volume, low variety products.

Reasons to study Operations Management include learning about all of the following except -how to market a product. -what operations managers do. -a costly part of the enterprise. -how goods and services are produced. -how people organize themselves for productive enterprise.

how to market a product.

Deloitte & Touche solved the empty desk problem by -no longer allowing employees to work from home. -hiring more consultants. -creating open offices. -assigning permanent desks. -implementing a "hoteling" program.

implementing a "hoteling" program.

A hospital's layout most closely resembles which of the following? -product oriented -project -work cell -job shop -none of the above

job shop

Which of the following was not a factor in determining the location of Intel's Arizona plant? -lax labour laws -proximity to Intel's California headquarters -skilled labour availability -U.S. laws to protect intellectual property -tax breaks from local and regional government

lax labour laws

Reasons to study Operations Management include -learning to prepare financial statements. -knowing how goods and services are consumed. -studying how people make decisions. -understanding what human resource managers do. -learning about a costly part of the enterprise.

learning about a costly part of the enterprise.

Cost cutting in international operations can take place because of - higher wage scales. - more stringent regulations. - higher indirect costs. - lower wages, lower indirect costs, and lower taxes and tariffs in another country. - higher taxes and tariffs.

lower wages, lower indirect costs, and lower taxes and tariffs in another country.

Multinational organizations can shop from country to country and cut costs through -higher taxes and tariffs. -higher wage scales. -higher indirect costs. -lower wages, lower indirect costs, and lower taxes and tariffs. -more stringent regulations.

lower wages, lower indirect costs, and lower taxes and tariffs.

Which of the following are the primary functions of all organizations? -production/operations, marketing, and human resources -marketing, human resources, and finance/accounting -sales, quality control, and production/operations, -marketing, production/operations, and finance/accounting research and development, finance/accounting, and purchasing

marketing, production/operations, and finance/accounting

Retail layouts thrive on the notion that -average customer visit duration should be maximized. -storage costs should be minimized. -maximizing customer exposure rate maximizes sales and profit. -handling costs should be minimized. -space used should be minimized.

maximizing customer exposure rate maximizes sales and profit.

The main goal of retail layout is -maximizing profitability per square foot of floor space. -minimizing storage costs. -minimizing space required. -maximizing high-margin sales. -minimizing material handling cost.

maximizing profitability per square foot of floor space.

Industrial location analysis typically attempts to -minimize costs. -focus more on human resources. -avoid countries with strict environmental regulations. -ignore exchange rates and currency risks. -maximize sales.

minimize costs.

An operations task performed at Hard Rock Café is -borrowing funds to build a new restaurant. -advertising changes in the restaurant menu. -paying suppliers. -preparing employee schedules. -calculating restaurant profit and loss.

preparing employee schedules.

Arnold Palmer Hospital uses which focus? -mass production -mass customization -repetitive -process -product

process

Four types of processes are -manual, automated, and service. -process focus, repetitive focus, product focus and mass customization. -modular, continuous, and technological. -goods, services, and hybrids. -input, transformation, and output.

process focus, repetitive focus, product focus and mass customization.

The layout strategy that deals with low -volume , high -variety production is -office layout. -retail layout. -fixed-position layout. -process-oriented layout. -warehouse layout.

process-oriented layout.

Which layout's main objective is to equalize the task time for each station? -product oriented -work cell -job shop -fixed position -process oriented

product oriented

One of the similarities between process focus and mass- customization is -location of facilities. -the variety of outputs. -the process layout. -the standard cost. -the volume of outputs.

the variety of outputs.

Operations management is applicable -mostly to the manufacturing sector. -to all firms, whether manufacturing or service. -to services exclusively. -to the manufacturing sector exclusively. -mostly to the service sector.

to all firms, whether manufacturing or service.

Which of the following is not a reason for globalizing operations? -to improve operations -to expand a product's life cycle -to gain improvements in the supply chain -to attract and retain global talent -to increase profits at the expense of quality

to increase profits at the expense of quality

Which of the following is a reason for globalizing operations? -reduce costs with a reduction in effectiveness of the supply chain -improve the supply chain while increasing overall costs -reduce stockholder approval ratings -understand markets -increase costs at the risk of stockholder approval ratings

understand markets

"A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type? -warehouse layout -fixed-position layout -work cell -intermittent production -job shop

work cell