Operations Management - Chapter 1+2 in class questions

85%

The service sector makes up approximately what percentage of all jobs in the United States? ◦A) 12% ◦B) 40% ◦C) 66% ◦D) 85%

true

True or False? Competition in the 21st century is no longer between companies; it is between supply chains.

true

True or False? All organizations, including service firms such as banks and hospitals, have a production function.

true

True or False? An accounting firm that provides tax services for a company would be considered to be part of that company's supply chain.

true

True or False? An example of a "hidden" production function is the transfer of funds between accounts at a bank.

true

True or False? Experience differentiation is an extension of product differentiation, accomplished by using people's five senses to create an experience rather than simply providing a service.

false

True or False? Key success factors and core competencies are synonyms.

false

True or False? Low-cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value.

false

True or False? Manufacturing now constitutes the largest economic sector in postindustrial societies

false

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

true

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

true

True or False? Production is a measure of output only and not a measure of efficiency

true

True or False? Production processes are being dispersed to take advantage of national differences in labor costs.

true

True or False? Productivity is generally more difficult to improve in the service sector than in the manufacturing sector

true

True or False? Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced.

false

True or False? SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats.

true

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

12

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_________covers/hr.

action plan to achieve the mission

A strategy is a(n): ◦A) set of opportunities in the marketplace. ◦B) broad statement of purpose. ◦C) simulation used to test various product line options. ◦D) plan for cost reduction. ◦E) action plan to achieve the mission.

0.25, 0.4375, 0.0077, 0.0097

Collins Title Insurance Ltd. wants to evaluate its labor and multifactor productivity with a new computerized title-search system. The company has a staff of four, each working 8 hours per day (for a payroll cost of $640/day) and overhead expenses of $400 per day. Collins processes and closes on 8 titles each day. The new computerized title-search system will allow the processing of 14 titles per day. Although the staff, their work hours, and pay are the same, the overhead expenses are now $800 per day. 1. Labor productivity with the old system (in titles per labor-hour) 2. Labor productivity with the new system 3. Multifactor productivity with the old system (in titles per dollar) 4. Multifactor productivity with the new system

is an extension of product differentiation in the service sector

Experience differentiation: ◦A) isolates the consumer from the delivery of a service. ◦B) is an extension of product differentiation in the service sector. ◦C) uses only the consumer's senses of vision and sound. ◦D) keeps consumers from becoming active participants in the service.

provider c

23) A company is choosing an outside firm to provide its payroll services. It has chosen four comparative categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of 30%, 10%, 20%, and 40%, respectively. Three potential providers were scored on each of those factors (see table below) using a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible. Using the factor-rating method, which provider should be chosen?

cost cutting

Given the position of the 3D printer in the growth stage of its life cycle, which of the following OM Strategy/Issues should the makers of 3D printers be least concerned with at the current time? ◦A) forecasting ◦B) cost cutting ◦C) increasing capacity ◦D) product and process reliability ◦E) enhancing distribution

to all firms, whether manufacturing or service

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

tangible good are generally produced and consumed simultaneously; services are not

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.

the functional areas develop their supporting missions

Which of the following activities takes place most immediately once the mission has been developed? ◦A) The firm develops alternative or back-up missions in case the original mission fails. ◦B) The functional areas develop their functional area strategies. ◦C) The functional areas develop their supporting missions. ◦D) The ten OM decision areas are prioritized. ◦E) Operational tactics are developed.

marketing, production/operations, and finance/accounting

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

broad product line

Which of the following is LEAST likely to be a low-cost leadership competitive advantage? ◦A) low overhead ◦B) effective capacity use ◦C) inventory management ◦D) broad product line ◦E) mass production

increasing executive pay

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

the assess tariffs only on the value-added work done

Which of the following is true of maquiladoras? ◦A) They discourage foreign businesses from outsourcing. ◦B) They assess tariffs only on the value-added work done. ◦C) They originated in China. ◦D) None of the above

sustainable production is giving way to a low-cost focus

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.