SCMA331

What is a global network of organizations and activities that supply a firm with goods and services? A) supply tree B) provider network C) supply chain D) vendor network E) vendor tree

C

"Considers inventory ordering and holding decisions" is within the strategic operations management decision area of managing quality.

FALSE

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

FALSE

Because Hard Rock Cafés are themed restaurants, operations managers focus their layout design efforts on attractiveness while paying little attention to efficiency.

False

Marketing, production/operations, and ________ are the three functions that all organizations must perform to create goods and services.

Finance/Accounting

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

TRUE

Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.

True

Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements.

True

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

Which of the following would NOT be an operations function in a commercial bank? A) auditing B) teller scheduling C) maintenance D) collection E) check clearing

A

Identify up to four phenomena that foster specialization and worldwide supply chains.

(1) a more technologically oriented society (2) specialized expert knowledge (3) instant communication (4) cheaper transportation

All of the following decisions fall within the scope of operations management EXCEPT for: A) creating the company income statement. B) design of goods and services. C) location strategy. D) managing quality. E) human resources and job design

A

Which of the following fosters specialization and worldwide supply chains? A) more expensive transportation B) instant communication C) economies of scope D) managers with a broad knowledge of many things E) high trade tariffs

B

Which of the following is NOT a strategic operations management decision? A) maintenance B) price C) layout design D) quality E) inventory

B

Which of the following pioneers was NOT making a professional impact during the ScientificManagement Era? A) Frank Gilbreth B) W. Edwards Deming C) Henry L. Gantt D) Lillian Gilbreth E) Frederick W. Taylo

B

An operations manager is NOT likely to be involved in: A) the design of goods and services to satisfy customers' wants and needs. B) the quality of goods and services to satisfy customers' wants and needs. C) the identification of customers' wants and needs. D) work scheduling to meet the due dates promised to customers. E) maintenance schedules.

C

Which of the following is one of the 10 strategic operations management decisions? A) depreciation policy for tax returns B) advertising C) process and capacity design D) pricing

C

4) The marketing function's main concern is with: A) producing goods or providing services. B) procuring materials, supplies, and equipment. C) building and maintaining a positive image. D) generating the demand for the organization's products or services. E) securing monetary resources.

D

An operations task performed at Hard Rock Café is: A) borrowing funds to build a new restaurant. B) advertising changes in the restaurant menu. C) calculating restaurant profit and loss. D) preparing employee schedules. E) all of the above.

D

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

What are the five elements in the management process? 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

Which of the following are among the 10 strategic operations management decisions? I.design of goods and services II.managing quality III.layout strategy IV.marketing V.pricing of goods and services A) I, II, V B) I, II, IV C) II, III, V D) I, II, III DE) All of the above

D

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

Which of the following is NOT an element of the management process? A) controlling B) leading C) planning D) pricing E) staffing

D

Which of the following is NOT one of the 10 strategic operations management decisions? A) layout strategy B) maintenance C) process and capacity design D) mass customization E) supply chain management

D

At Hard Rock Café, tasks that reflect operations or operations management include: A) designing efficient layouts. B) providing meals. C) receiving ingredients. D) preparing effective employee schedules. E) all of the above.

E

Reasons to study operations management include learning about: A) how people organize themselves for productive enterprise. B) how goods and services are produced. C) what operations managers do. D) a costly part of the enterprise. E) all of the above.

E

Reasons to study operations management include: A) studying how people organize themselves for productive enterprise. B) knowing how goods and services are consumed. C) understanding what human resource managers do. D) learning about a costly part of the enterprise. E) A and D

E

The 10 strategic operations management decisions include: A) layout strategy. B) maintenance. C) process and capacity design. D) managing quality. E) all of the above

E

Which of the following influences layout design? A) inventory requirements B) capacity needs C) personnel levels D) technology E) All of the above influence layout decisions.

E

Brandon Production is a small firm focused on the assembly and sale of custom computers. The firm is facing stiff competition from low-priced alternatives, and is looking at various solutions to remain competitive and profitable. Current financials for the firm are shown in the table below. In the first option, marketing will increase sales by 50%. The next option is Vendor (Supplier) changes, which would result in a decrease of 10% in the cost of inputs. Finally there is an OM option, which would reduce production costs by 25%. Which of the options would you recommend to the firm if it can only pursue one option? In addition, comment on the feasibility of each option. Cost of Inputs $50,000 Production Costs $25,000 Revenue $80,000

Marketing would increase sales to $120,000 ($80,000 ∗ 1.5) but increase cost of inputs and production costs to $112,500 (($50,000 + $25,000) ∗ 1.5). This would net an additional $2500 of profit ($120,000 - $112,500 - current profit of $5000). Vendor (Supplier) Changes would decrease cost of inputs to $45,000 ($50,000 ∗ .9), resulting in $5,000 of additional profit (savings)($50,000 - $45,000). Finally, the OM option would save $6250 ($25,000 - $25,000 ∗ .75), resulting in an additional $6250 of profit. Thus the OM option is the most profitable. Comments on feasibility should center on the near impossibility of increasing revenue by 50%, while noting the other two options are difficult but not impossible.

________ is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.

Operations Management

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

True

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

True

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

True

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

True

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

True

A(n) ________ is a global network of organizations and activities that supply a firm with goods and services.

supply chain

Competition in the 21st century is no longer between companies; it is between ________.

supply chain