POM Exam 1

Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 30 hours per day making the 120 boxes. Productivity = Chuck and his employees have discussed redesigning the process to improve efficiency. Suppose they can increase the rate to 320 boxes per day. New productivity = The unit increase in productivity= The percentage increase in productivity =

(Output/Input)4 boxes/hr (Output/Input) 10.67 boxes/hr (New - Old) 6.67 boxes/hr ((New-Old)*100)/Old) = 166.75%

Carbondale Casting produces cast bronze valves on a 15​-person assembly line. On a recent​ day, 180 valves were produced during an 8​-hour shift. Labor productivity = John​ Goodale, the manager at​ Carbondale, changed the layout and was able to increase production to 200 units per 8​-hour shift. The new labor productivity= The percentage of productivity increase=

(output/(hr* people) ) 1.5 valves/labor hour (output/labor) 1.67 valves/labor hour ((new - old) *100)/old) 11.33%

Lori Cook produces Final Exam Care Packages for resale by her sorority. She is currently working a total of 8 hours per day to produce 120 care packages. Lori's productivity= Lori Cook produces Final Exam Care Packages for resale by her sorority. She is currently working a total of 8 hours per day to produce 120 care packages. Lori's new productivity​ = Productivity increase %=

(output/input) 15 packages/hr 16.63 packages/hr ((new-old)*100)/old 10.87%

Munson Performance​ Auto, Inc., modifies 325 autos per year. The​ manager, Adam​ Munson, is interested in obtaining a measure of overall performance. He has asked you to provide him with a multifactor measure of last​ year's performance as a benchmark for future comparison. You have assembled the following data. Resource inputs​ were: labor, 10,500 ​hours; 520 suspension and engine modification​ kits; and​ energy, 120,000 ​kilowatt-hours. Average labor cost last year was ​$20 per​ hour, kits cost $1,000 ​each, and energy costs were ​$4 per​ kilowatt-hour. The overall performance at Munson Performance​ Auto, Inc.​=

.000269 autos/dollars

Charles Lackey operates a bakery in Idaho​ Falls, Idaho. Because of its excellent product and excellent​ location, demand has increased by 35​% in the last year. The bakery currently makes 1,600 loaves per month. Employees are paid ​$8 per hour. In addition to the labor​ cost, Charles also has a constant utility cost per month of ​$550 and a per loaf ingredient cost of ​$0.40. Current multifactor productivity for 640 work hours per month​ = After increasing the number of work hours to 864 per month​, the multifactor productivity​ = The percentage increase in productivity​ =

.254 loaves/dollar .259 loaves/dollar 1.97%

Charles Lackey operates a bakery in Idaho​ Falls, Idaho. Because of its excellent product and excellent​ location, demand has increased by 35​% in the last year. The bakery currently makes 1,600 loaves per month. The pay will be ​$8 per hour for employees and each employee works 160 hours per month. Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean an increase in his investment. This new blender will mean an increase in his costs of ​$100 per​ month, but he will achieve the same new output​ (an increase to 2,160.00​) as the change in labor hours. Current productivity for 640 work hours​ = If Charles chooses to increase the number of work hours to 864 in order to employ the new oven loading​ technique, then the productivity is​ = If Charles instead chooses to purchase a new blender​ (while holding labor constant at 640 hours at ​$8 per ​hour)​, then the productivity is​ = By adding​ manpower, the percentage increase in productivity is= By purchasing a new blender​ (while holding labor constant at 640 hours at $8 per ​hour)​, the percentage increase in productivity is =

.313 loaves/dollar .313 loaves/dollar .414 loaves/dollar 0% 32.27%

Labor ​$5 per​ hour; Capital 0.81​% per month of​ investment; Energy ​$0.70 per BTU. LAST YEAR THIS YEAR Cost per Input Unit Production (dozen) 1,400 1,400 Labor (hours) 320 295 5 Capital investment ($) 14,000 17,000 0.0081 Energy (BTU) 3,400 3,200 0.70 Determine the multifactor productivity with dollars as the common denominator for last year. The multifactor productivity with dollars as the common denominator for last year is = Determine the multifactor productivity with dollars as the common denominator for this year. The multifactor productivity with dollars as the common denominator for this year is= Determine the percent change in productivity for the monthly average last year versus the monthly average this year on a multifactor basis. The percent change in productivity for the monthly average is=

.342 dozen/$ .363 dozen/$ 6.2%

Hokey​ Min's Kleen Karpet cleaned 65 rugs in​ October, consuming the following​ resources: ​Labor: 525 hours at ​$17 per hour ​Solvent: 125 gallons at ​$5 per gallon Machine​ Rental: 24 days at ​$75 per day Labor productivity per dollar​ = Multifactor productivity+

0.0073 Rugs/Dollar 0.0057 Rugs/Dollar

Last Year Now Units Produced 1,200 1,200 Labor (hours) 300 260 Resin (pounds) 60 48 Capital Invested ($) 10,000 11,000 Energy (BTU) 2,900 2,850 Productivity Change for each input: Labor Productivity change %= Resin Productivity Change%=

15.38% 25% -9.09% 1.72%

In​ December, General Motors produced 7,500 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.12 vans per labor hour during that month. 320 laborers were employed at the plant that month. In the month of December the average number of hours worked per laborer​ = If productivity can be increased to 0.15 vans per​ hour, the average number of hours worked per laborer​ =

195.3 hours/laborer 156.25 hours/laborer

Fok makes 1,000 tires per day with the following​ resources: Measure Cost per Input Unit Units produced 1,000 Labor 425 $12.00 Raw Material 21,000 $1.50 Energy $5,250 1 Capital $10,250 1 Labor productivity per labor hour for these tires​ = Multifactor productivity for these tires​ = The percent change in multifactor productivity if Fok can reduce the energy bill by $950 per day without cutting production or changing any other inputs​ =

2.35 tires/labor hour .0192 tires/dollars 1.88%

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. Before the change in work​ rules, the​ company's productivity per day​ = After the​ change, the new productivity level per day​ = Based on the changes​ made, the percent increase in productivity​ = If production is increased to 800 boxes per day​ (with the three​ 8-hour shifts), the new productivity=

27.5 boxes/hour 29.17 boxes/hour 6.07% 33.33 boxes/hour

Susan Williams runs a small Flagstaff job shop where garments are made. The job shop employs eight workers. Each worker is paid ​$12 per hour. During the first week of​ March, each worker worked 45 hours.​ Together, they produced a batch of 144 garments. Of these​ garments, 54 were​ 'seconds' (meaning that they were​ flawed). The seconds were sold for ​$90 each at a factory outlet store. The remaining 90 garments were sold to retail outlets at a price of ​$200 per garment. What was the labor​ productivity, in dollars per​ labor-hour, at this job shop during the first week of​ March? Labor productivity​ =

63.5 dollars/labor hour

Last Year Now Production (dozen) 1,500 1,500 Labor (hours) 340 325 Capital Investment ($) 16,000 19,000 Energy (BTU) 3,000 2,800 Energy productivity increase= Capital productivity increase​ = Labor productivity increase​ =

7.14% -15.79% 4.62%

Last Year Now Cost Per Input Unit Units Produced 1,000 1,000 Labor (hours) 280 255 $10 Resin (pounds) 48 43 $6 Capital Invested ($) 10,000 11,000 1% Energy (BTU) 2,900 2,750 $0.60 The percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator​ =

7.88%

A SWOT analysis A. identifies an​ organization's strengths and weaknesses and its external opportunities and threats. B. evaluates the relationship between​ suppliers, workers,​ operations, and technology. C. identifies an​ organization's strengths and opportunities and its​ competitors' weaknesses and threats. D. identifies the value the organization wishes to create.

A

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

A) Crew Scheduling

A project manager is interested in crashing a project with variable activity times. Which of the following tools should he/she employ? A) PERT B) CPM C) Gantt Chart D) either PERT or CPM E) PERT, CPM, or a Gantt chart are fine

A) PERT

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) all of the above

A) counseling

Which of the following has progressed the furthest along its product life cycle? A) drive-thru restaurants B) Boeing 787 C) iPods D) Twitter E) Xbox 360

A) drive-thru restaurants

Select all of the correct impacts legislation moving health insurance from a pretax benefit to taxable income might have on OM strategy below. ​(Check all that​ apply.) A. Change in the income of employees in the lower pay classifications. B. Operations managers get pressure to increase wages of employees in the lower pay classifications. C. Increase in the​ take-home pay of employees by the amount of the taxes. D. Decrease in the​ take-home pay of employees by the amount of the taxes.

A,B,D

Which of these statements accurately captures a current trend in​ operations? A. A current trend is industry 4.0 and rapid product development. B. Jobs are increasingly specialized as workers focus on basic assembly tasks. C. There is mass production at the expense of product variety. D. There is increased focus on local markets and local competition.

A. A current trend is industry 4.0 and rapid product development.

Choose the correct example of response and its explanation below. A. Catering firms, as customers pick the menu, time and date. B. Family style restaurants, as food is often served on platters and the diners serve themselves. C. Catering firms, as they have the best cheap meals. D. Family style restaurants, as they have a playground or seating area for children.

A. Catering firms, as customers pick the menu, time and date.

What is a key characteristic of a project that is​ well-defined? A. Extensive initial planning and careful scheduling B. Introduction of new technology C. Flexibility in the project scheduling D. Active collaboration and constant feedback

A. Extensive initial planning and careful scheduling

Which one of the following statements is incorrect regarding globalization and globalization​ strategies? A. Globalization strategies could simplify the operations​ manager's job B. Globalization strategies could contribute to efficiency. C. Globalization means​ customers, talent, and suppliers are worldwide. D. Globalization strategies could add value to products and services.

A. Globalization strategies could simplify the operations​ manager's job

Which of the following is an advantage of PERT and​ CPM? A. Straightforward concept and not mathematically complex. B. Useful in monitoring only schedules. C. Precedence relationships must be specified and networked together. D. Project activities have to be clearly​ defined, independent, and stable in their relationships.

A. Straightforward concept and not mathematically complex.

Why are Gantt charts​ helpful? A. They can help managers observe the progress of each activity to spot problems. B. They fully illustrate complex interrelationships between activities and resources. C. They are not widely​ used, so they offer competitive advantage. D. They consider precedence relationships.

A. They can help managers observe the progress of each activity to spot problems.

Which of the following is NOT a reason why domestic business operations decide to change to some form of international​ operation? A. attract and retain local talent B. improve the supply chain C. improve operations D. improve products

A. attract and retain local talent

Which of these is NOT one of the 10 strategic OM​ decisions? A. marketing B. managing quality C. layout strategies D. scheduling

A. marketing

Which of the following international operations strategies uses decentralized authority with substantial autonomy at each​ business? A. multidomestic B. international C. global D. transnational

A. multidomestic

The stated purposed of NAFTA and USMCA is to A. phase out all trade and tariff barriers among​ Canada, Mexico, and the U.S. B. reduce the outsourcing of jobs to foreign countries. C. gain membership in the WTO. D. increase product innovation in the wireless communication sector.

A. phase out all trade and tariff barriers among​ Canada, Mexico, and the U.S.

When using​ PERT, project managers should be wary of A. placing too much emphasis on the critical path. B. managers who fear overestimating activity times. C. mathematical complexity. D. monitoring both schedules and costs.

A. placing too much emphasis on the critical path.

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. process and capacity design B. managing quality C. design of goods and services D. human resources and job design

A. process and capacity design

The creation of goods and services is referred to​ as: A. production. B. formation. C. transformation. D. design.

A. production

Which of the following is NOT an OM​ strategy/issue during the growth stage of the product life​ cycle? A. reduce capacity B. enhance distribution C. shift towards product focus D. forecasting critical

A. reduce capacity

Which of the following activities at an airline is NOT an operations​ activity? A. sales B. crew scheduling C. catering D. flying

A. sales

In​ general, the supply chain starts with A. the provider of basic raw materials. B. a distributor. C. research and development. D. final customers at the retail store.

A. the provider of basic raw materials.

Which of the following is the appropriate order for the phases of project​ management? A. ​planning, scheduling, controlling B. ​scheduling, planning, controlling C. ​scheduling, planning, evaluating D. ​evaluating, planning, controlling

A. ​planning, scheduling, controlling

Select all of the correct impacts that inflation versus stable prices might have on OM strategy below. ​(Check all that​ apply.) A. Change in the income of employees in the lower pay classifications. B. Difficulty in predicting both the cost of production and the market demand. C. The OM function focuses on more standardization. D. The manufacturing process stabilizes.

B

An activity on a PERT network has these time estimates: optimistic = 1, most likely = 2, and pessimistic = 5. Its expected time is A) 2.00 B) 2.33 C) 2.67 D) 8.00 E) none of these

B) 2.33

The campus book store has a policy of bringing bookshelf stockers to staff cash registers whenever more than three customers are in any line. Which principles of operations management does this policy address? A) Move to where the work is. B) Cross-train for mastery of more than one job. C) Focus on ends, not means D) Reduce flexibility E) All of the above.

B) Cross-train for mastery of more than one job.

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

B) W. Edwards Deming

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%

B) decrease input 15%

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

B) easy to store

Cost Minimizing Customizers group of companies A) mass produce products. B) have stringent delivery schedules. C) are leaders in technology. D) continually introduce products. E) use highly corrosive materials

B) have stringent delivery schedules.

With reference to cultural and ethical issues, the World Trade Organization has A) succeeded in providing equal protection of intellectual property among nations B) made progress in providing equal protection of intellectual property among nations C) phased out all trade and tariff barriers between the United States and Mexico D) eliminated slave labor and child labor E) played little role in addressing cultural and ethical issues among nations

B) made progress in providing equal protection of intellectual property among nations

PERT/CPM would be most appropriate for which of the following? A) Retail selling. B) managing a major overhaul of a special submarine. C) managing assembly line work. D) managing maintenance of a photocopying machine. E) None of the choices presented

B) managing a major overhaul of a special submarine.

The expected activity time in PERT analysis is calculated as A) the simple average of the optimistic, pessimistic, and most likely times B) the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b C) the sum of the optimistic, pessimistic, and most likely times D) the sum of the optimistic, pessimistic, and most likely times, divided by six E) the sum of the activity variances, divided by six

B) the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b

Select all of the correct impacts that major increases in oil prices might have on OM strategy below. ​(Check all that​ apply.) A. For the energy inefficient​ company, change in the cost​ structure, result in higher selling prices. B. For a producer with high energy​ costs, change in the cost​ structure, result in higher selling prices. C. For the energy inefficient​ company, change in the competitive position. D. For a producer with high energy​ costs, change in the competitive position.

B,C

Select all of the correct impacts that​ water- and​ air-quality legislation might have on OM strategy below. ​(Check all that​ apply.) A. Difficulty in predicting both the cost of production and the market demand. B. Closing of numerous plants including paper mills and steel mills. C. Increasing production cost. D. Difficulty in using the specific technologies

B,C,D

Identify how changes within an organization affect the OM strategy for a company. For​ instance, discuss what impact the following internal factors might have on OM​ strategy: ​a) Maturing of a product. ​b) Technology innovation in the manufacturing process. ​c) Changes in laptop computer design that builds in wireless technology. ​a) Select all of the correct impacts the maturing of a product might have on OM strategy below. ​(Check all that​ apply.) A. Capital investment is added for new equipment or processes. B. Cost cutting is instituted. C. Purchasing needs to be revised. D. Longer production runs are used. E. Product design needs to be revised. F. Optimum capacity may be achieved. ​b) Select all of the correct impacts technology innovation in the manufacturing process might have on OM strategy below. ​(Check all that​ apply.) A. Purchasing needs to be revised. B. Product changes decrease. C. Inventory needs to be revised. D. Quality standards need to be revised. E. Labor skills decrease. F. Optimum capacity may be achieved. c) Select all of the correct impacts changes in laptop computer design that builds in wireless technology might have on OM strategy below. ​(Check all that​ apply.) A. Product changes decrease. B. Quality standards need to be revised. C. Cost cutting is instituted. D. Maintenance procedures need to be revised. E. Inventory needs to be revised. F. Design compromises are instituted.

B,D,F A,C,D B,D,E

Which of the following statement is incorrect about the​ mission? A. The mission statement provides boundaries and focus for organizations. B. Each functional area within the firm may develop its own​ strategy, but not its own supporting mission. C. The mission statement provides the concept around which the firm can rally. D. The mission states the rationale for the​ organization's existence.

B. Each functional area within the firm may develop its own​ strategy, but not its own supporting mission.

How do you open a blank project using Microsoft​ Project? A. ​Project|New B. File|New C. ​File|Blank D. ​File|Open

B. File|New

Choose the correct example of differentiation and its explanation below. A. Johnson Electric, as it competes on speed dash speed in design, production, and delivery. B. Hunter Fan, as it's a premier maker of quality ceiling fans that lower heating and cooling costs for its customers. C. Hunter Fan, as it guarantees delivery in 3 days. D. Johnson Electric, as it specializes in industrial and commercial electrical construction projects.

B. Hunter Fan, as it's a premier maker of quality ceiling fans that lower heating and cooling costs for its customers.

What happened to world trade as a percentage of world GDP in early​ 2020? A. ​It's growth rate flattened out due to​ COVID-19. B. It dropped sharply due to​ COVID-19. C. It rose sharply due to​ COVID-19. D. ​It's growth continued at the same rate as in 2019.

B. It dropped sharply due to​ COVID-19.

Choose the correct example of response and its explanation below. A. Disney Magic Kingdom, as here people are surrounded by a dynamic visual and sound experience. B. Johnson Electric, as it competes on speed-speed in design, production, and delivery. C. Disney Magic Kingdom, as it provides the best free and low-cost attractions and places to visit. D. Johnson Electric, as it specializes in industrial and commercial electrical construction projects.

B. Johnson Electric, as it competes on speed-speed in design, production, and delivery.

Which of the following activities are NOT part of project​ scheduling? A. Compute resources needed at each stage of production. B. Make sure all necessary activities are finished in proper sequence and on time. C. Decide how long each activity will take. D. Chart separate schedules for personnel needs by type of skill and materials needs.

B. Make sure all necessary activities are finished in proper sequence and on time.

Which of the following is NOT one of the four reasons that we study​ OM? A. It is one of the three major functions of any organization. B. We want to understand what marketing managers do. C. It is such a costly part of an organization. D. We want to know how goods and services are produced.

B. We want to understand what marketing managers do.

Competing on cost is A. concerned with reliability of scheduling. B. achieving maximum value as perceived by the customer. C. based upon flexibility. D. concerned with uniqueness.

B. achieving maximum value as perceived by the customer.

The production process at Hard Rock Cafe does NOT include which of the following​ activities? A. placing raw materials in cold storage B. advertising C. receiving D. cooking

B. advertising

Which of the following does not represent competing on​ response? A. based on flexibility B. based on providing uniqueness C. based on quickness D. concerned with reliability of scheduling

B. based on providing uniqueness

Which of the following is NOT one of the three strategic approaches to competitive​ advantage? A. differentiation B. innovation C. cost leadership D. response

B. innovation

The service sector constitutes economic activities that typically produce A. tangible products. B. intangible products. C. finished goods. D. all of the above

B. intangible products.

Which of the following are considered to be the three primary functions that all organizations​ perform? A. ​production/operations, manufacturing, and​ finance/accounting B. ​marketing, production/operations, and​ finance/accounting C. ​marketing, research and development​ (R&D), and engineering D. none of the above

B. marketing, production/operations, and​ finance/accounting

Which of the following does NOT belong to the planning phase of project​ management? A. team organization B. monitoring resources C. defining the project D. goal setting

B. monitoring resources

Among the​ following, critical path and slack time analysis MOST help A. highlight relationships among project activities. B. pinpoint activities that need to be closely watched. C. managers define the project activities. D. point out who is responsible for various activities.

B. pinpoint activities that need to be closely watched.

Which column in Microsoft Project defines the precedence relationships among the​ activities? A. relations B. predecessors C. order D. successors

B. predecessors

A method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage is referred as A. ​value-chain analysis. B. resources view. C. five forces analysis. D. competitive advantage.

B. resources view.

Which of the following does NOT contribute to​ OM? A. innovations from physical sciences B. unsystematic processing of data C. other disciplines including industrial​ engineering, statistics,​ management, and economics D. information technology

B. unsystematic processing of data

An agile approach to project controlling works best for which of the following project​ types? A. Projects with known constraints B. ​Ill-defined C. Projects with established specifications D. ​Well-defined

B. ​Ill-defined

Which of the following is the core competence for​ Honda? A. sustainable design B. ​gas-powered engines C. advertising D. product flexibility

B. ​gas-powered engines

A project being analyzed by PERT has 60 activities, 13 of which are on the critical path. If the estimated time along the critical path is 214 days with a project variance of 100, the probability that the project will take 224 days or more to complete is A) near zero B) 0.0126 C) 0.1587 D) 0.8413 E) 2.14

C) 0.1587

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) 220 valves/hr

Which of the following is an example of competing on quick response? A) A firm produces its product with less raw material waste than its competitors. B) A firm offers more reliable products than its competitors. C) A firm's products are introduced into the market faster than its competitors' products. D) A firm utilizes is capacity more effectively than its competitors. E) A firm advertises more than its competitors.

C) A firm's products are introduced into the market faster than its competitors' products

Which of the following statements regarding Gantt charts is true? A) Gantt charts give a timeline and precedence relationships for each activity of a project. B) Gantt charts use the four standard spines of Methods, Materials, Manpower, and Machinery. C) Gantt charts are visual pictures that show the duration of activities in a project. D) Gantt charts are expensive. E) All of the above are true.

C) Gantt charts are visual pictures that show the duration of activities in a project.

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.

C) The functional areas develop their supporting missions.

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

C) assembly line operations

Standardization is an appropriate strategy in which stage of the product life cycle? A) introduction B) growth C) maturity D) decline E) retirement

C) maturity

Choose the correct example of differentiation and its explanation below. A. Fine dining restaurants, as they have almost the same menu and service. B. Institutional food services, such as Sodexho, as they offer food delivery to college campuses. C. Fine dining restaurants, as they are full service restaurants with specific dedicated meal courses. D. Institutional food services, such as Sodexho, as they get their contracts by being low bidder to provide service.

C. Fine dining restaurants, as they are full service restaurants with specific dedicated meal courses.

What is the difference between a multinational corporation​ (MNC) and an international​ business? A. The international business has been in existence longer than the multinational firm. B. The international business has sites in a larger number of countries. C. For the multinational​ firm, the business done outside the country is extensive. D. There is no difference.

C. For the multinational​ firm, the business done outside the country is extensive.

Choose the correct example of cost leadership and its explanation below. A. Family style restaurants, as food is often served on platters and the diners serve themselves. B. Family style restaurants, as they have a playground or seating area for children. C. Institutional food services, such as Sodexho, as they get their contracts by being low bidder to provide service. D. Institutional food services, such as Sodexho, as they offer food delivery to college campuses.

C. Institutional food services, such as Sodexho, as they get their contracts by being low bidder to provide service.

Which of the following is NOT true regarding PERT and​ CPM? A. PERT and CPM are useful when controlling large projects. B. Time estimates are subject to fudging by managers. C. Managers only need to closely monitor the critical path. D. PERT and CPM are useful in monitoring costs.

C. Managers only need to closely monitor the critical path.

Which of the following is a popular example of specialized software used for managing​ projects? A. Project Apple B. ​PERT/CPM C. Microsoft Project D. Excel PM​ Add-In

C. Microsoft Project

How do the 10 strategic OM decisions listed in the text relate to the strategies of​ differentiation, cost​ leadership, and​ response? A. The 10 strategic OM decisions are subcategories of competing on differentiation. B. The organization chooses to compete on​ differentiation, cost​ leadership, or response. The operations manager chooses to compete on one of the 10 strategic OM decisions. C. Operations managers make decisions in the 10 areas that help the organization compete on​ differentiation, cost​ leadership, or response. D. For each of the 10 strategic OM​ decisions, the organization must decide whether to emphasize​ differentiation, low​ cost, or response.

C. Operations managers make decisions in the 10 areas that help the organization compete on​ differentiation, cost​ leadership, or response.

Under which of the following conditions would a project organization be most​ helpful? A. Work tasks do not have​ pre-determined goals or deadlines. B. The job is familiar to the existing organization. C. The work contains​ complex, interrelated tasks. D. Work tasks must be outsourced to specialists.

C. The work contains​ complex, interrelated tasks.

The person who believed that management must do more to improve the work environment and processes so that quality can be improved was A. Henry Ford. B. Walter Shewhart. C. W. Edwards Deming. D. Eli Whitney.

C. W. Edwards Deming.

The patriarch and matriarch of the book​ "Cheaper by the​ Dozen," Henry L. Gantt and Frank and Lillian​ Gilbreth, were A. ​world-renowned family psychologists. B. pioneers of the production assembly line. C. among the first to systematically seek the best way to produce. D. developed​ A3's.

C. among the first to systematically seek the best way to produce.

Which of the following activities at a commercial bank is NOT an operations​ activity? A. security B. maintenance C. auditing D. check clearing

C. auditing

The creation of a unique advantage over competitors is referred as A. response. B. differentiation. C. competitive advantage. D. experience differentiation.

C. competitive advantage.

Which of the following activities does NOT belong to the controlling phase of project​ management? A. revise plans B. monitor​ resources, costs,​ quality, and budgets C. define the project D. shift resources

C. define the project

Which of the following activities at a manufacturing facility is an operations​ activity? A. funds management B. market research C. industrial engineering D. accounts receivable

C. industrial engineering

Which of the following trends is NOT part of the exciting OM challenges currently facing operations​ managers? A. sustainability B. ​supply-chain partnering C. local focus D. mass customization

C. local focus

Which of the following is NOT an OM​ strategy/issue during the introduction stage of the product life​ cycle? A. limited models B. frequent product and process design changes C. long production runs D. high production costs

C. long production runs

Which of the following is NOT one of the factors that fosters specialization and worldwide supply​ chains? A. cheaper transportation B. instant communication C. marketing D. specialized expert knowledge

C. marketing

Which of these is one of the three major OM functions within an​ organization? A. economics B. research and development C. marketing D. industrial engineering

C. marketing

Which of the following is the purpose or rationale for an​ organization's existence? A. charter B strategy C. mission D. articles of incorporation

C. mission

Computerized​ PERT/CPM reports and charts do NOT include A. cost distribution tables. B. variance reports. C. probability estimates for​ on-time completion. D. detailed cost breakdowns for each task.

C. probability estimates for​ on-time completion.

Competition in the 21st century is no longer between​ companies; it is between A. countries. B. technologies. C. supply chains. D. individuals.

C. supply chains.

What does Microsoft Project call an​ activity? A. job B. goal C. task D. event

C. task

Which of the following is NOT a technique that allows managers to​ plan, schedule, and control​ projects? A. PERT B. Gantt charts C. ​Factor-rating method D. CPM

C. ​Factor-rating method

Select all of the correct impacts that fewer young prospective employees entering the labor market might have on OM strategy below. ​(Check all that​ apply.) A. Change in the income of employees in the lower pay classifications. B. High unemployment rates. C. Added capital investment for new equipment or processes. D. Tighter job market.

D

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

D) 200 valves/hr

Which of the following is not one of the three phases of project management? A) planning B) scheduling C) controlling D) All of the above are project management phases. E) Both A and C are not project management phases

D) All of the above are project management phases.

Which of these statements regarding time-cost tradeoffs in CPM networks is true? A) Crashing is not possible unless there are multiple critical paths. B) Crashing a project often reduces the length of long-duration, but noncritical, activities. C) Activities not on the critical path can never be on the critical path, even after crashing. D) Crashing shortens the project duration by assigning more resources to one or more of the critical tasks. E) None of the above is true.

D) Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.

Activity D on a CPM network has predecessors B and C, and has successor F. D has duration 6. B's earliest finish is 18, while C's is 20. F's late start is 26. Which of the following is definitely true? A) B is a critical activity. B) C is completed before B. C) D has no slack but is not critical. D) D is critical and has zero slack. E) F is critical and has zero slack

D) D is critical and has zero slack.

Which of the following is not among the ethical and social challenges facing operations managers? A) honoring stakeholder commitments B) maintaining a sustainable environment C) efficiently developing and producing safe, quality products D) increasing executive pay E) providing a safe workplace

D) increasing executive pay

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) marketing, production/operations, and finance/accounting

A network has been crashed to the point where all activities are critical. Additional crashing A) is unnecessary B) is impossible C) is prohibitively expensive D) may require crashing multiple tasks simultaneously E) can be done, but all critical tasks must be reduced in duration

D) may require crashing multiple tasks simultaneously

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) none of the above

D) nineteenth century; interchangeable parts

The five elements in the management process are 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) plan, organize, staff, lead, and control

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

D) statistical quality control

What term describes how an organization expects to achieve its missions and goals? A) conditional expectation B) tactic C) SWOT D) strategy E) competitive advantage

D) strategy

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

D) to all firms, whether manufacturing or service

What is a graphical link of competitive​ advantage, KSFs, and supporting​ activities? A. product life cycle B. key success factor network C. competitive success grid D. activity map

D. Activity Map

Which of the following best defines​ scheduling? Part 2 A. Determines and implements​ long- and​ short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. B. Determines and implements​ long- 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 personnel while meeting customer demands. D. 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 both personnel and facilities while meeting customer demands.

The person who introduced​ standardized, interchangeable parts was A. Henry Ford. B. Frederick W. Taylor. C. W. Edwards Deming. D. Eli Whitney.

D. Eli Whitney.

Which of the following organizations does NOT belong to the service​ sector? A. Southwest Airlines B. Costco C. San Diego Zoo D. Ford Motor Company

D. Ford Motor Company

Which of the following is NOT true about Gantt​ charts? A. Gantt charts also can be used for scheduling repetitive operations. B. Gantt charts are planning charts used to schedule resources and allocate time. C. Gantt charts are​ low-cost means of helping managers make sure that activities are planned. D. Gantt charts adequately illustrate the interrelationships between the activities and the resources.

D. Gantt charts adequately illustrate the interrelationships between the activities and the resources.

What name is given to the new digital​ world? A. Innovation 4.0 B. Intelligence 4.0 C. Intel 4.0 D. Industry 4.0

D. Industry 4.0

Which of these statements is NOT true about project​ scheduling? A. Project scheduling encourages the setting of realistic time and cost estimates for each activity. B. Project scheduling identifies the precedence relationships among activities. C. Project scheduling shows the relationship of each activity to others. D. Project scheduling helps make better use of resources by identifying the​ non-critical paths through the network.

D. Project scheduling helps make better use of resources by identifying the​ non-critical paths through the network.

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 let operations managers work with their supply chain to viciously cut inventories at every level. D. The goal is to produce customized​ products, whenever and wherever needed.

D. The goal is to produce customized​ products, whenever and wherever needed.

How does an​ organization's strategy relate to its​ mission? A. The strategy helps the organization determine the mission. B. The strategy is unrelated to the mission. C. The strategy restates the mission. D. The strategy is the action plan to achieve the mission.

D. The strategy is the action plan to achieve the mission

Choose the correct example of cost leadership and its explanation below. A. Wal-Mart, as it provides the fast product delivery to the customers. B. Disney Magic Kingdom, as here people are surrounded by a dynamic visual and sound experience. C. Disney Magic Kingdom, as it provides the best free and low-cost attractions and places to visit. D. Wal-Mart, as it has the low overhead and huge buying power to pressure its suppliers into concessions.

D. Wal-Mart, as it has the low overhead and huge buying power to pressure its suppliers into concessions

Supply chains are comprised of organizations and activities that supply a firm with goods and services within A. production. B. operations management. C. business functions. D. a global network.

D. a global network.

Which of the following is considered to be a​ stakeholder? A. community members B. customers C. distributors D. all of the above

D. all of the above

Which of the following tasks would typically represent an operations management activity at Hard Rock​ Cafe? A. receiving a shipment of incoming food ingredients B. preparing an employee schedule C. designing an efficient layout D. all of the above

D. all of the above

Which of these is one of the 10 strategic OM​ decisions? A. maintenance B. inventory management C. location strategies D. all of the above

D. all of the above

A set of​ skills, talents, and capabilities in which a firm is particularly strong is referred to as A. differentiation. B. experience differentiation. C. key success factors​ (KSFs). D. core competencies.

D. core competencies.

Which of the following international operations strategies involves a high degree of​ centralization? A. international B. transnational C. multidomestic D. global

D. global

Compared to a global​ strategy, a multidomestic strategy has A. the same level of local responsiveness and lower cost reduction. B. higher local responsiveness and the same level of cost reduction. C. lower local responsiveness and higher cost reduction. D. higher local responsiveness and lower cost reduction.

D. higher local responsiveness and lower cost reduction.

Which of the following is a direct responsibility of the project​ manager? A. calculating completion probabilities for all tasks in the project B. performing all of the activities in the project C. drawing the network diagram D. making sure that the people assigned to the project receive the​ motivation, direction, and information needed to do their jobs

D. making sure that the people assigned to the project receive the​ motivation, direction, and information needed to do their jobs

Competing on differentiation A. only works with physical products. B. always implies​ higher-quality features. C. means offering customers a cheaper alternative. D. means offering customers something unique.

D. means offering customers something unique.

The economic activities that typically produce an intangible product are referred to as A. phantoms. B. goods. C. products. D. services.

D. services.

Which of the following is NOT a characteristic of​ services? A. produced and consumed simultaneously B. unique C. intangible D. standardized product

D. standardized product

Which of the following is the THIRD level in work breakdown structure​ (WBS)? A. activities to be completed B. major tasks in the project C. project D. subtasks in major tasks

D. subtasks in major tasks

When controlling a​ project, how is​ up-to-date information about​ resources, costs,​ quality, and budgets​ used? A. to be able to plot graphs for the final project report B. to determine who needs to be reminded of the project plan C. to learn project shortcomings before they are detected by higher management D. to shift resources to where they are needed most

D. to shift resources to where they are needed most

Which of the following statements regarding the Dreamliner 787 is true? A) Boeing has found partners in over a dozen countries. B) The new aircraft incorporates a wide range of aerospace technologies. C) The new aircraft uses engines from not one, but two manufacturers. D) Boeing will add only 20 to 30 percent of the aircraft's value. E) All of the above are true.

E) All of the above are true.

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

E) action plan to achieve the mission

Cost cutting in international operations can take place because of A) lower taxes and tariffs B) lower wage scales C) lower indirect costs D) less stringent regulations E) all of the above

E) all of the above

Ethical issues that may arise in projects large and small include A) gifts from contractors B) exaggerated expense reports C) compromised safety or health standards to save time or reduce costs D) pressure to mask delays with false status reports E) all of the above

E) all of the above

Which of the following represent reasons for globalizing operations? A) to gain improvements in the supply chain B) to improve operations C) to expand a product's life cycle D) to attract and retain global talent E) all of the above

E) all of the above

The Beta distribution is used in project management to A) calculate slack on activities not on the critical path B) calculate the probability that a project will be completed within its budget C) calculate pessimistic and optimistic activity times D) determine which activity should be crashed E) none of the above

E) none of the above

Claudia Pragram​ Technologies, Inc., has narrowed its choice of outsourcing provider to two firms located in different countries. Pragram wants to decide which one of the two countries is the better​ choice, based on​ risk-avoidance criteria. She has polled her executives and established four criteria. The resulting ratings for the two countries are presented in the table​ below, where 1 is a lower risk and 4 is a higher risk. Assume that the executives have determined four criteria​ weightings: Price, with a weight of​ 0.1; Nearness, with​ 0.6; Technology, with​ 0.2; and​ History, with 0.1. Using the weighted​ factor-rating method, which country would you​ select? (England: Price 3, nearness 3, technology 4, history 2)(Canada: Price 4, nearness 4, technology 3, history 3) Total Weighted Score for each country= Which country do you choose? Double each weight, which country should you choose? What effect does doubling the weights have on your​ answer? A. The conclusion does not change but the weighted averages change. B. The conclusion does not change since the weighted averages do not change at all. C. The conclusion changes but the weighted averages do not change at all. D. The conclusion changes since the weighted averages change.

England 3.1 Canada 3.7 England England B. The conclusion does not change since the weighted averages do not change at all.

Charles Lackey operates a bakery in Idaho​ Falls, Idaho. Because of its excellent product and excellent​ location, demand has increased by 35​% in the last year. If the bakery currently makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor​ hour, then Lackey will need to add _____ workers to meet the increased demand

Labor hours=Total Output/Productivity​ Workers=Labor hours/Hours available​ 2 workers

Higher weights imply higher importance and higher ratings imply more desirable​ providers. Flexibility: .5 Trust: .1 Price: .2 Delivery: .2 Manila 5, 6, 8, 5 Delhi 5, 3, 6, 7 Moscow 7, 7, 6, 3

Manila: 5.7 Delhi: 5.4 Moscow: 6

The resulting ratings are on a 1 to 10​ scale, where 1 is a low risk and 10 is a high risk.​ Using the weighted​ factor-rating method, which country should Ranga​ select? Trust, with a weight of 0.40​; ​Quality, with 0.20​; ​Religious, with 0.10​; ​Individualism, with 0.10​; ​Time, with 0.10​; and​ Uncertainty, with 0.10. Mexico: 1,2,3,5,4,3 Panama: 2,8,3,2,6,2 Costa Rica: 2,6,3,4,7,4 Peru: 1,1,5,8,3,2 Weighted score for each country: Which one is the one to choose?

Mexico: 2.3 Panama: 3.7 Costa Rica: 3.8 Peru: 2.4 Mexico

With weights from 1 − 5​ (5 being the​ highest) and ratings from 1 − 100​ (100 being the​ highest), use the following table to help Garza make his decision. Quality: 5 Delivery: 3 Cost: 2 Overnight Shipping 87, 72 ,72 Worldwide Delivery 82, 86, 83 United Freight 71, 73, 99 Weighted scores: Best outsource provider: Garza decides to increase the weights for​ quality, delivery, and cost to 10​, 6​, and 4​, respectively. If each weight is​ doubled, the best outsource provider is How does this change your​ conclusions? A. The conclusion does not change but the weighted averages change. B The conclusion does not change since the weighted averages do not change at all. C. The conclusion changes since the weighted averages change. D. The conclusion changes but the weighted averages do not change at all If Overnight​ Shipping's ratings for each of the factors increase by​ 10%, the best outsource provider is:

Overnight shipping: 79.5 worldwide delivery: 83.4 united freight: 77.2 Worldwide delivery Worldwide Delivery B The conclusion does not change since the weighted averages do not change at all. Overnight Shipping 87.5

Based on the table​ provided, rank the following countries from the easiest to do business in to the most​ difficult: Brazil​, Switzerland​, the U.S.​, and China. Brazil 124 Switz 36 US 6 China 31

U,C,S,B

Assume the following table includes the corruption perception index developed by Transparency International. Based on the table​ provided, rank the following countries from most corrupt to​ least: Venezuela​, Sweden​, Denmark​, the U.S.​, Poland​, and China. Venezuela 20 Sweden 86 Denmark 93 U.S. 76 Poland 64 China 33

V,C,P,U,S,D

Which of the following is an example of a​ "hidden" production​ function? A. manufacturing a television B. assembling a motorcycle C. transplanting a liver D. producing a computer

c. transplanting a liver

This​ year, Druehl,​ Inc., will produce 60,000 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 plant =

total input = number of workers * number of hours labor productivity = output / input 125 laborers