Exam 1

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

A.Determines and implements​ intermediate- and​ short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands.

Which of the following tasks would NOT typically represent an operations management activity at Hard Rock​ Cafe? A.filing a tax return B.preparing an employee schedule C.designing an efficient layout D.receiving a shipment of incoming food ingredients

A.filing a tax return

Which of the following is NOT a valid principle of bottleneck​ management? A.Increasing the capacity of a​ non-bottleneck station is a mirage. B.Increasing the capacity of a​ non-bottleneck station increases the capacity for the whole system. C.Release work orders to the system at the pace set by the​ bottleneck's capacity. D.Lost time at the bottleneck represents lost capacity for the whole system.

B. Increasing the capacity of a non-bottleneck station increases the capacity for the whole system

Efficiency is given by A.design capacity divided by utilization. B.effective capacity divided by actual output. C.actual output divided by design capacity. D.actual output divided by effective capacity.

D. Actual output divided by effective capacity

Which of the following statements is NOT true regarding process​ redesign? A.Process redesign is also called process reengineering. B.Effective process redesign works only if the basic process and its objectives are reexamined. C.Process redesign also focuses on those activities that cross functional lines. D.Process redesign is also called process reinvention.

D. Process redesign is also called process reinvention

Which of the following statements is NOT​ true? A.The selection of equipment requires considering​ cost, cash​ flow, market​ stability, quality,​ capacity, and flexibility. B.Selecting the best equipment requires understanding the specific industry and available processes and technology. C.Selection of a particular process strategy requires decisions about equipment and technology. D.Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually​ inexpensive, but difficult.

D.Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually​ inexpensive, but difficult.

A​ business's stakeholders, whose conflicting perspectives cause ethical and social​ dilemmas, include: A.suppliers. B.lenders. C.employees. D.owners. E.All of the above.

E. All of the above

Process​ redesign: A.tries to bring about dramatic improvements in performance. B.is sometimes called process reengineering. C.is the fundamental rethinking of business processes. D.often focuses on activities that cross functional lines. E.All of the above.

E. All of the above

Advances in​ technology: A.have failed to change the level of customer interaction with an organization. B.have had only a limited impact on services. C.have dramatically changed health​ care, but have not changed retailing. D.have impacted the manufacturing sector only. E.have had a dramatic impact on customer interaction with services and with products.

E. have had a dramatic impact on customer interaction with services and with products

Which of the following is NOT among the ethical and social challenges facing operations​ managers? A.providing a safe workplace B.honoring stakeholder commitments C.​training, retaining, and motivating employees D.efficiently developing and producing safe​ high-quality green products E.increasing executive pay

E. increasing executive pay

Production technology has had a major impact on​ services, but as yet there has been little reduction in service labor requirements. True False

False

Successful process redesign focuses on departmental areas where​ small, continuous improvements can be made. True False

False

Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives. True False

True

Optical checkout scanners and ATMs are examples of​ technology's impact on services. True False

True

When selecting new equipment and​ technology, decision makers look for flexibility—the ability to respond with little penalty in​ time, cost, or customer value. True. False

True

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

a. Ford Motor Company

What is the fundamental rethinking of business processes to bring about dramatic improvements in​ performance? A.process redesign B.process strategy C.process design D.process analysis

a. Process redesign

​Break-even analysis for the​ single-product case requires an estimation of fixed​ costs, variable​ costs, and A.revenue. B.price. C.the percent of total dollar sales for each product. D.​price, along with the percent of total dollar sales for each product.

a. Revenue

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

a. advertising

An investment that generates a series of uniform and equal cash amounts is referred as A.an annuity. B.net present value. C.future value. D.cash flow.

a. an annuity

Stacked Resaurants lets customers choose ingredients for their sandwhiches using A.an iPad menu. B.playing cards. C.a telephone at the table. D.a moving conveyor belt.

a. an iPad menu

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

a. auditing

The service sector constitutes what percentage of employment in the United​ States? A.between​ 80% to​ 90% B.between​ 70% to​ 80% C.between​ 60% to​ 70% D.between​ 50% to​ 60%

a. between 80% to 90%

What is a means of determining throughput capacity of workstations or an entire production​ system? A.capacity analysis B.effective capacity C.theory of constraints D.throughput analysis

a. capacity analysis

In​ manufacturing, excess capacity can be used to A.do more​ setups, shorten production​ runs, and drive down inventory costs. B.do more​ setups, lengthen production​ runs, and drive down inventory costs. C.do fewer​ setups, lengthen production​ runs, and drive down inventory costs. D.do fewer​ setups, shorten production​ runs, and drive down inventory costs.

a. do more setups, shorten production runs, and drive down inventory costs

What does EMV stand​ for? A.expected monetary value B.enterprise management valuation C.expected machine valuation D.expected maintenance volume

a. expected monetary value

What is the ability to respond with little penalty in​ time, cost, or customer​ value? A.flexibility B.mass customization C.postponement D.repetitive process

a. flexibility

When using EMV for capacity planning​ situations, the state of nature usually is A.future demand or market favorability. B.wage rates or equipment costs. C.level of inflation or interest rates. D.average temperature or average rainfall.

a. future demand or market favorability

Productivity increases when A.inputs decrease while outputs remain the same. B.inputs increase while outputs remain the same. C.inputs and outputs increase proportionately. D.outputs decrease while inputs remain the same.

a. inputs decrease while outputs remain the same

Which of the following approaches makes new capacity a larger increase at the beginning of the​ period? A.leading demand with a​ one-step expansion B.leading demand with incremental expansion C.attempts to have an average capacity that straddles demand with incremental expansion D.lagging demand with incremental expansion

a. leading demand with a one-step expansion

What is a means of determining the discounted value of a series of future cash​ receipts? A.net present value B.variable cost C.cash flow D.future value

a. net present value

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

a. the provider of basic raw materials

The American Society for Quality defines quality as A.the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. B.even though it cannot be​ defined, you know what it is. C.the degree of excellence at an acceptable price and the control of variability at an acceptable cost. D.how well a product fits patterns of consumer preferences.

a. the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs.

Which of the following is an award for quality achievement in​ Japan? A.Malcolm Baldrige National Quality Award B.Deming Prize C.ISO 9000 D.Tokyo Medal for Excellence in Quality

b. Deming Prize

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

b. Eli Whitney

What is a drawing of the movement of​ material, product or​ people? A.process chart B.flowchart C.AIS D.RFID

b. Flowchart

The father of scientific management is A.Henry L. Gantt. B.Frederick W. Taylor. C.Eli Whitney. D.Henry Ford.

b. Frederick W. Taylor

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

b. W. Edwards Deming

A process focus is A.organized around products. B.a production facility organized around specific activities. C.based on the classical assembly line. D.a​ rapid, low-cost production system that caters to constantly changing unique customer desires.

b. a production facility organized around specific activities

What is the time of the slowest workstation in a production​ system? A.effective capacity B.bottleneck time C.throughput time D.utilization

b. bottleneck time

Which of the following is NOT considered to be a​ stakeholder? A.community members B.competitors C.customers D.distributors

b. competitors

The difference between selling price and variable cost is called A.fixed cost. B.contribution. C.the​ break-even point. D.the bottleneck.

b. contribution

Which of the following could reduce costs and increase​ profit? A.improved reputation B.increased productivity C.flexible pricing D.improved response

b. increased productivity

The capital investment each year in the United States usually A.remains constant. B.increases. C.decreases unless favorably taxed. D.decreases.

b. increases

Which of the following is the Japanese term used to describe continuous improvement​ efforts? A.kanban B.kaizen C.poka-yoke D.six sigma

b. kaizen

Which of the following approaches may use subcontracting to accommodate excess​ demand? A.leading demand with a​ one-step expansion B.lagging demand with incremental expansion C.leading demand with incremental expansion D.Subcontracting should never be used to accommodate excess demand.

b. lagging demand with incremental expansion

A large quantity and large variety of products are produced in A.repetitive focus. B.mass customization. C.process focus. D.product focus.

b. mass customization

A large percentage of the revenue of most firms is spent on which​ function? A.research and development B.operations C.marketing D.finance

b. operations

Which of the following is NOT a tool for process analysis and​ design? A.process chart B.Pareto chart C.process mapping D.flowchart

b. pareto chart

Low-volume, high-variety production is best suited for which of the following process​ strategies? A.product focus B.process focus C.mass customization D.repetitive focus

b. process focus

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

b. rapid product development

Which of the following is NOT considered to be one of the three primary functions that all organizations​ perform? A.marketing B.research and development C.​finance/accounting D.​production/operations

b. research and development

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

b. sales

Which of the following is NOT a production technology that enhances production and​ productivity? A.process control B.service blueprinting C.automatic identification systems D.vision systems

b. service bluprinting

Which of the following capacity adjustment options applies to​ intermediate-range planning? A.schedule personnel B.subcontract C.allocate machinery D.add long lead time equipment

b. subcontract

The multiproduct case of determining the​ break-even point in dollars weights what by each​ product's proportion of​ sales? A.the variable cost of each product B.the contribution of each product C.the selling price of each product D.the fixed cost attributable to each product

b. the contribution of each product

What is the goal for mass​ customization? A.The goal is to enrich jobs and move more decision making to the individual contributor. B.The goal is to produce customized​ products, whenever and wherever needed. 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 seek creative​ designs, efficient​ production, and​ high-quality goods via international collaboration.

b. the goal is to produce customized products, whenever and wherever needed.

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

b. unsystematic processing of data

In many​ applications, human quality inspectors can be replaced effectively by A.FMS. B.vision systems. C.RFID tags. D.automated storage and retrieval systems.

b. vision systems

What is an electronically guided and controlled cart used to move​ materials? A.AIS B.RFID C.AGV D.CNC

c. AGV

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

c. Production

Which of the following is NOT an example of​ technology's impact on the financial services​ industry? A.debit cards B.Internet stock trading C.RFID D.electronic funds transfer

c. RFID

What is a means of finding the​ point, in dollars and​ units, at which costs equal​ revenues? A.zero-sum analysis B.bottleneck analysis C.​break-even analysis D.capacity analysis

c. break-even analysis

What is the theoretical maximum output of a system in a given period under ideal​ conditions? A.efficiency B.utilization C.design capacity D.effective capacity

c. design capacity

To develop a standard or​ benchmark, firms need to start with A.identifying benchmarking partners. B.forming a benchmark team. C.determining what to benchmark. D.collecting benchmarking information.

c. determining what to benchmark

Managing quality helps build successful strategies of A.differentiation, time and response. B.​differentiation, time and service. C.differentiation, low cost and response. D.​differentiation, low cost and service.

c. differentiation, low cost and response

​Cause-and-effect diagrams are also known as A.Pareto charts. B.target specification graphs. C.​fish-bone charts. D.flowcharts.

c. fish-bone charts

Which of the following statements is NOT true regarding production​ technologies? A.CNC is machinery with its own computer and memory. B.Robots are mechanical devices that use electronic impulses to activate motors and switches. C.Flexible manufacturing systems and​ computer-integrated manufacturing are increasing the distinction between​ low-volume/high-variety and​ high-volume/low-variety production. D.Vision systems combine video cameras and computer technology and are often used in inspection roles.

c. flexible manufacturing systems and computer-integrated manufacturing are increasing the distinction between low-volume/high-variety and high-volume/low-variety production.

Which of the following DOES NOT increase profit by improving​ quality? A.increased productivity B.flexible pricing C.higher warranty costs D.improved reputation

c. higher warranty costs

Which of the following is NOT one of the reasons operations managers want to work with their supply chains to viciously cut inventories at every​ level? A.Inventory constrains response to​ ever-shorter product life cycles. B.Inventory requires financial resources. C.Inventory provides safety against​ higher-than expected demand. D.inventory hides quality issues.

c. inventory provides safety against higher-than expected demand

The most aggressive and risky approach to capacity planning is A.lagging demand with incremental expansion. B.leading demand with incremental expansion. C.leading demand with​ one-step expansion. D.attempts to have an average capacity that straddles demand with incremental expansion.

c. leading demand with one-step expansion

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

c. local focus

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

c. marketing

What is the typical goal of applying EMV to capacity​ decisions? A.Identify the alternative with the highest potential payoff. B.Identify the least risky alternative. C.Maximize the expected value of the alternatives. D.Identify the most likely state of nature.

c. maximize the expected value of the alternatives

Which of the following is NOT a limitation of the net present value​ approach? A.Investments with the same net present value may have different cash flows. B.Investments with the same net present value may have significantly different projected lives and different salvage values. C.Payments are assumed to be made at the beginning of the​ period, which is not always the case. D.The assumption is that we know future interest​ rates, which we do not.

c. payments are assumed to be made at the beginning of the period, which is not always the case.

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

c. process and capacity design

Which of the following is the fourth step in the theory of​ constraints? A.When one set of constraints is​ overcome, go back and identify new constraints. B.Focus resources on accomplishing the plan. C.Reduce the effects of the constraints by offloading work or by expanding capability. D.Develop a plan for overcoming the identified constraints.

c. reduce the effects of the constraints by offloading work or by expanding capability

Which of the following is a possible option to employ when demand exceeds​ capacity? A.temporarily​ lay-off workers B.increase advertising expenditures C.schedule long lead times D.lower prices

c. schedule long lead times

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

c. supply chains

Which of the following is a requirement to be able to compute expected monetary​ value? A.each decision alternative needs at least two states of nature B.the probability of each decision alternative is known C.the probability of each state of nature is known D.each state of nature is equally likely to occur

c. the probability of each state of nature is known

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

c. transplanting a liver

Which operations function at a manufacturing facility strives for the efficient use of​ machines, space, and​ personnel? A.process analysis B.design C.production and inventory control D.industrial engineering

d. Industrial Engineering

Which of the following is true regarding the concept of​ flexibility? A.It may be accomplished with digitally controlled equipment. B.It may involve modular or movable equipment. C.It is the ability to respond with little penalty in​ time, cost, or customer value. D.All of the above are true. E.None of the above is true.

d. all of the above

A successful quality strategy begins with A.satisfying customers and obtaining a competitive advantage. B.engaging employees in the necessary activities to implement quality. C.an understanding of the principles of quality. D.an organizational culture that fosters quality.

d. an organizational culture that fosters quality

Which of the following is an example of​ technology's impact on​ wholesale/retail trade​ industry? A.interactive TV B.automatic teller machines C.automatic toll booths D.bar-coded data

d. bar-coded data

Which of the following is NOT one of the techniques for building employee​ empowerment? A.Build​ high-morale organizations. B.Build communication networks that include employees. C.Develop​ open, supportive supervisors. D.Eliminate formal organization structures such as teams and quality circles.

d. eliminate formal organization structures such as teams and quality circles.

When making investment decisions using the net present value​ method, managers need to choose the investments with A.lower net present values. B.lower costs. C.higher revenues. D.higher net present values.

d. higher net present values

Which of these is NOT one of the basic functions of the management​ process? A.controlling B.leading C.staffing D.inspecting

d. inspecting

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

d. marketing

What is a flowchart with time added on the horizontal​ axis? A.CNC B.service blueprinting C.process chart D.process mapping

d. process mapping

​High-volume, low-variety production is best suited for which of the following process​ strategies? A.process focus B.mass customization C.repetitive focus D.product focus

d. product focus

​Taguchi's quality loss function is based on a A.negative exponential distribution. B.linear equation. C.binomial distribution. D.quadratic equation.

d. quadratic equation

Which of the following costs is NOT a cost of​ quality? A.scrap B.lost goodwill C.rework D.research and development

d. research and development

Which of the following is NOT an external failure​ cost? A.returned goods B.costs to society C.lost goodwill D.scrap

d. scrap

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

d. services

What term is given to those individuals with a vested interest in an​ organization, including​ customers, distributors,​ suppliers, owners,​ lenders, employees, and community​ members? A.vestors B.stockholders C.alumni D.stakeholders E.investors

d. stakeholders

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

d. standardized product

A global network of organizations and activities that supply a firm with goods and services is referred to as A.production. B.operations management. C.business functions. D.a supply chain.

d. supply chain

Which of the following statements is NOT true regarding the process analysis​ tools? A.Service blueprinting is designed to help focus on the customer interaction part of the process. B.Process mapping is another name for​ time-function mapping. C.A process chart is different than a flowchart. D.​Time-function mapping extends​ value-stream mapping to include suppliers.

d. time-function mapping extends value-stream mapping to include suppliers

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

d. we want to understand what marketing managers do