ISDS 3115 Exam 1

The ______________ distribution is appropriate for calculating expected activity times and activity variances in PERT networks.

Beta

_____________________ and __________________ are two issues where significant cultural differences are large and progress toward global uniformity has been slow.

Bribery, protection of intellectual property

Henry Ford and _____________________________ are credited with the development of the moving assembly line.

Charles Sorensen

_____________ is decreasing activity time in a network to reduce time on the critical path so total completion time is reduced.

Crashing

_______________ is a network technique using only one time factor per activity that enables managers to schedule, monitor, and control large and complex projects.

Critical path method or CPM

82. __________ forecasts are projections of demand for a company's products or services

Demand

81. _________ forecasts address the business cycle by predicting inflation rates, money supplies, housing starts, and other planning indicators.

Economic

_____________________________ is the operations management trend that moves more decision making to the individual worker.

Empowered employees

95. __________ forecasting tries a variety of computer models and selects the best one for a particular application.

Focus

90. _____________ is a measure of overall forecast error for a model.

MAD or Mean Absolute Deviation

A(n) ________ is a firm that has extensive involvement in international business, owning or controlling facilities in more than one country.

MNC--multinational corporation

________ are Mexican factories located along the U.S.-Mexico border that receive preferential tariff treatment.

Maquiladoras

_____________________________ is the ability of the organization to be flexible enough to cater to the individual whims of consumers.

Mass customization

__________________ is the stage in product life cycle at which it is a poor time to change quality.

Maturity

____________________________ is the total of all outputs produced by the transformation process divided by the total of the inputs.

Multifactor productivity

_______ is a free trade agreement among Canada, Mexico, and the United States.

NAFTA--North American Free Trade Agreement

_____________________________ is the set of activities that transforms inputs into goods and services.

Operations management

The network analysis method that allows activity times to vary is _____________.

PERT or Program Evaluation and Review Technique

The _______________ has established a code of ethics especially for project managers

Project Management Institute

____________ is an organization formed to ensure that programs (projects) receive the proper management and attention.

Project organization

When a tangible product is not included in a service, it is called a _____________________________.

Pure service

83. __________ forecasts employ one or more mathematical models that rely on historical data and/or causal variables to forecast demand.

Quantitative

84. ___________ is a forecasting technique based upon salespersons' estimates of expected sales.

Sales force composite

______________ is the amount of time an individual activity in a network can be delayed without delaying the entire project.

Slack time

85. __________ forecasts use a series of past data points to make a forecast.

Time-series

92. ____________ is a time-series forecasting method that fits a trend line to a series of historical data points and then projects the line into the future for forecasts.

Trend projection

_______________ divides a project into more and more detailed components.

Work breakdown structure or WBS

60. Which of the following values of alpha would cause exponential smoothing to respond the most slowly to forecast errors? a. 0.10 b. 0.20 c. 0.40 d. 0.80 e. cannot be determined

a. 0.10

Walter Shewhart, 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

a. 1920s; statistical sampling

Which of the following is the best example of competing on low-cost leadership? 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's research and development department generates many ideas for new products. e. A firm advertises more than its competitors

a. A firm produces its product with less raw material waste than its competitors.

Which of the following statements is true? a. Almost all services and almost all goods are a mixture of a service and a tangible product. b. A pure good has no tangible product component. c. A pure service has only a tangible product component. d. There is no such thing as a pure good. e. None of the above is a true statement.

a. Almost all services and almost all goods are a mixture of a service and a tangible product.

Which of the following statements is most correct? a. CSFs are often necessary, but not sufficient for competitive advantage. b. CSFs are often sufficient, but not necessary for competitive advantage. c. CSFs are neither necessary nor sufficient for competitive advantage. d. CSFs are both necessary and sufficient for competitive advantage. e. None of the above statements is correct.

a. CSFs are often necessary, but not sufficient for competitive advantage.

Which of the following statements regarding PERT times is true? a. The optimistic time estimate is an estimate of the minimum time an activity will require. b. The optimistic time estimate is an estimate of the maximum time an activity will require. c. The probable time estimate is calculated as t = (a + 4m + b). d. Pessimistic time estimate is an estimate of the minimum time an activity will require. e. Most likely time estimate is an estimate of the maximum time an activity will require.

a. The optimistic time estimate is an estimate of the minimum time an activity will require.

Which of the following statements is true? a. The person most responsible for initiating use of interchangeable parts in manufacturing was Eli Whitney. b. The origins of management by exception are generally credited to Frederick W. Taylor. c. The person most responsible for initiating use of interchangeable parts in manufacturing was Walter Shewhart. d. The origins of the scientific management movement are generally credited to Henry Ford. e. The person most responsible for initiating use of interchangeable parts in manufacturing was Henry Ford.

a. The person most responsible for initiating use of interchangeable parts in manufacturing was Eli Whitney.

Which of the following would not be an operations function in a fast-food restaurant? a. advertising and promotion b. designing the layout of the facility c. maintaining equipment d. making hamburgers and fries e. purchasing ingredients

a. advertising and promotion

68. A restaurant kitchen contains a wall poster that shows, for each sandwich on the menu, a sketch of the ingredients and how they are arranged to make the sandwich. This is an example of a(n) a. assembly drawing b. route sheet c. bill of materials d. work order e. virtual technology

a. assembly drawing

41. Which of the following techniques uses variables such as price and promotional expenditures, which are related to product demand, to predict demand? a. associative models b. exponential smoothing c. weighted moving average d. simple moving average e. time series

a. associative models

Typical differences between goods and services do not include a. cost per unit b. ability to inventory items c. timing of production and consumption d. customer interaction e. knowledge content

a. cost per unit

The three steps of the operations manager's job, in order, are a. develop the strategy, establish the organizational structure, find the right staff b. develop the strategy, find the right staff, establish the organizational structure c. find the right staff, establish the organizational structure, develop the strategy d. find the right staff, develop the strategy, establish the organizational structure e. establish the organizational structure, find the right staff, develop the strategy

a. develop the strategy, establish the organizational structure, find the right staff

56. An engineering drawing shows the a. dimensions, tolerances, materials, and finishes of a component b. dimensions, tolerances, cost, and sales or use volume of a component c. materials, finishes, machining operations, and dimensions of a component d. cost, materials, tolerances, and lead-time for a component e. cost, dimensions, and machining operations for a component

a. dimensions, tolerances, materials, and finishes of a component

Which of the following has progressed the furthest along its product life cycle? a. drive-thru restaurants b. Internet search engines c. iPods d. LCD & plasma TVs e. Xbox 360

a. drive-thru restaurants

46. The fundamental difference between cycles and seasonality is the a. duration of the repeating patterns b. magnitude of the variation c. ability to attribute the pattern to a cause d. all of the above e. none of the above

a. duration of the repeating patterns

63. Group technology requires that a. each component be identified by a coding scheme that specifies the type of processing and the parameters of the processing b. a specific series of engineering drawings be prepared c. all bills of material be prepared using the same format d. engineering change notices be linked to each of the bills of material and engineering notices e. the final products be standardized

a. each component be identified by a coding scheme that specifies the type of processing and the parameters of the processing

33. Which of the following would likely cause a change in market opportunities based upon levels of income and wealth? a. economic change b. sociological and demographic change c. technological change d. political change e. legal change

a. economic change

All of the following decisions fall within the scope of operations management except for a. financial analysis b. design of goods and processes c. location of facilities d. managing quality e. All of the above fall within the scope of operations management.

a. financial analysis

The term "maquiladora" is most synonymous with a. free trade zones b. Chinese forced labor camps c. home-based or cottage industry d. areas that do not meet U.S. standards for workplace safety and pollution e. none of the above

a. free trade zones

A code of ethics especially for project managers a. has been established by the Project Management Institute b. has been formulated by the Federal government c. has been formulated by the World Trade Organization d. is inappropriate, since everyone should use the same guidance on ethical issues e. does not exist at this time

a. has been established by the Project Management Institute

70. Which of the following is not a service design technique used to reduce cost? a. increasing customer interaction b. delaying customization c. automation d. modularizing the product e. reducing customer interaction

a. increasing customer interaction

Which of the international operations strategies involves low cost reductions and low local responsiveness? a. international strategy b. global strategy c. transnational strategy d. multidomestic strategy e. none of the above

a. international strategy

Which of the international operations strategies uses import/export or licensing of existing products? a. international strategy b. global strategy c. transnational strategy d. multidomestic strategy e. none of the above

a. international strategy

32. In which stage of the product life cycle should product strategy focus on process modifications? a. introduction b. growth c. maturity d. decline e. none of the above

a. introduction

51. A six-month moving average forecast is better than a three-month moving average forecast if demand a. is rather stable b. has been changing due to recent promotional efforts c. follows a downward trend d. follows a seasonal pattern that repeats itself twice a year e. follows an upward trend

a. is rather stable

Which of the following OM strategic decisions pertains to sensible location of processes and materials in relation to each other? a. layout design b. goods and service design c. supply chain management d. inventory e. scheduling

a. layout design

The largest contributor to productivity increases is ________, estimated to be responsible for _____ of the annual increase. a. management; over one-half b. Mr. Deming; one-half c. labor; two-thirds d. capital; 90% e. technology; over one-half

a. management; over one-half

49. Which time series model below assumes that demand in the next period will be equal to the most recent period's demand? a. naive approach b. moving average approach c. weighted moving average approach d. exponential smoothing approach e. none of the above

a. naive approach

The phases of project management are a. planning, scheduling, and controlling b. planning, programming, and budgeting c. planning, organizing, staffing, leading, and controlling d. different for manufacturing projects than for service projects e. GANTT, CPM, and PERT

a. planning, scheduling, and controlling

37. The two general approaches to forecasting are a. qualitative and quantitative b. mathematical and statistical c. judgmental and qualitative d. historical and associative e. judgmental and associative

a. qualitative and quantitative

72. Modern ATM machines are an automated example of a service design that a. reduces customer interaction b. modularizes the service c. delays service customization d. has no moment of truth e. has insufficient quality function deployment

a. reduces customer interaction

29. The three major subdivisions of the product decision are a. selection, definition, and design b. goods, services, and hybrids c. strategy, tactics, and operations d. cost, differentiation, and speed of response e. legislative, judicial, and executive

a. selection, definition, and design

32. Forecasts are usually classified by time horizon into three categories a. short-range, medium-range, and long-range b. finance/accounting, marketing, and operations c. strategic, tactical, and operational d. exponential smoothing, regression, and time series e. departmental, organizational, and industrial

a. short-range, medium-range, and long-range

65. An assembly chart a. shows graphically how the product is assembled b. shows an exploded view of the product c. lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material d. provides detailed instructions on how to perform a given task e. describes the dimensions and finish of each component

a. shows graphically how the product is assembled

69. The document for production that gives the instruction to make a given quantity of a particular item, usually to a given schedule, is a. the work order b. the route sheet c. the bill of information d. the assembly chart e. the value analysis

a. the work order

49. An operations manager's most ethical activity is a. to enhance productivity while delivering desired goods and services b. to use less energy c. to use more recycled ingredients d. to use less harmful ingredients e. to follow appropriate OSHA and EPA regulations

a. to enhance productivity while delivering desired goods and services

88. Linear regression is known as a(n) _____________ because it incorporates variables or factors that might influence the quantity being forecast.

associative model

70. A seasonal index for a monthly series is about to be calculated on the basis of three years' accumulation of data. The three previous July values were 110, 150, and 130. The average over all months is 190. The approximate seasonal index for July is a. 0.487 b. 0.684 c. 1.462 d. 2.053 e. cannot be calculated with the information given

b. 0.684

Which of the following statements about Bechtel is true? a. Even though Bechtel is over 100 years old, the Kuwaiti oil fields was its first "project." b. Bechtel is the world's premier manager of massive construction and engineering projects. c. Bechtel's competitive advantage is supply chain management. d. While its projects are worldwide, its network of suppliers is largely in the U.S. e. All of the above are true.

b. Bechtel is the world's premier manager of massive construction and engineering projects.

The _____ distribution is used by PERT analysis to calculate expected activity times and variances. a. Normal b. Beta c. Alpha d. Gaussian e. Binomial

b. Beta

Which of the following statements regarding time-cost tradeoffs in CPM networks is false? a. "Project Crashing" shortens project duration by assigning more resources to critical tasks. b. Crashing sometimes has the reverse result of lengthening the project duration. c. Crashing must consider the impact of crashing an activity on all paths in the network. d. Activities not on the critical path can become critical after crashing takes place. e. All of the above are true.

b. Crashing sometimes has the reverse result of lengthening the project duration.

36. Which of the following is not a step in the forecasting process? a. Determine the use of the forecast. b. Eliminate any assumptions. c. Determine the time horizon. d. Select forecasting model. e. Validate and implement the results

b. Eliminate any assumptions.

The "Father of Scientific Management" is a. Henry Ford b. Frederick W. Taylor c. W. Edwards Deming d. Frank Gilbreth e. just a figure of speech, not a reference to a person

b. Frederick W. Taylor

50. Which of the following is not a characteristic of simple moving averages? a. It smoothes random variations in the data. b. It has minimal data storage requirements. c. It weights each historical value equally. d. It lags changes in the data. e. It smoothes real variations in the data.

b. It has minimal data storage requirements.

Which of the following statements best characterizes delivery reliability? a. a company that always delivers on the same day of the week b. a company that always delivers at the promised time c. a company that delivers more frequently than its competitors d. a company that delivers faster than its competitors e. a company that has a computerized delivery scheduling system

b. a company that always delivers at the promised time

77. Computer monitoring of tracking signals and self-adjustment if a signal passes a preset limit is characteristic of a. exponential smoothing including trend b. adaptive smoothing c. trend projection d. focus forecasting e. multiple regression analysis

b. adaptive smoothing

60. Which of the following shows in schematic form how a product is assembled? a. an engineering drawing b. an assembly drawing c. an assembly chart d. a route sheet e. a process sheet

b. an assembly drawing

67. In trend-adjusted exponential smoothing, the forecast including trend (FIT) consists of a. an exponentially smoothed forecast and an estimated trend value b. an exponentially smoothed forecast and a smoothed trend factor c. the old forecast adjusted by a trend factor d. the old forecast and a smoothed trend factor e. a moving average and a trend factor

b. an exponentially smoothed forecast and a smoothed trend factor

30. Forecasts a. become more accurate with longer time horizons b. are rarely perfect c. are more accurate for individual items than for groups of items d. all of the above e. none of the above

b. are rarely perfect

35. When should product strategy focus on forecasting capacity requirements? a. at the introduction stage of the product life cycle b. at the growth stage of the product life cycle c. at the maturity stage of the product life cycle d. at the decline stage of the product life cycle e. none of the above

b. at the growth stage of the product life cycle

In a PERT network, non-critical activities that have little slack need to be monitored closely a. because PERT treats all activities as equally important b. because near-critical paths could become critical paths with small delays in these activities c. because slack is undesirable and needs to be eliminated d. because they are causing the entire project to be delayed e. because they have a high risk of not being completed

b. because near-critical paths could become critical paths with small delays in these activities

Given the position of the iPod in the growth stage of its life cycle, which of the following OM Strategy/Issues should the makers of iPods be least concerned with at the current time? a. forecasting b. cost cutting c. increasing capacity d. product and process reliability e. enhancing distribution

b. cost cutting

The fundamental purpose of an organization's mission statement is to a. create a good human relations climate in the organization b. define the organization's purpose in society c. define the operational structure of the organization d. generate good public relations for the organization e. define the functional areas required by the organization

b. define the organization's purpose in society

According to the authors, which of the following strategic concepts allow firms to achieve their missions? a. productivity, efficiency, and quality leadership b. differentiation, cost leadership, and quick response c. differentiation, quality leadership, and quick response d. distinctive competency, cost leadership, and experience e. differentiation, distinctive competency, quality leadership, and capacity

b. differentiation, cost leadership, and quick response

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

35. The three major types of forecasts used by business organizations are a. strategic, tactical, and operational b. economic, technological, and demand c. exponential smoothing, Delphi, and regression d. causal, time-series, and seasonal e. departmental, organizational, and territorial

b. economic, technological, and demand

57. The dimensions, tolerances, materials, and finishes of a component are typically shown on a(n) a. assembly chart b. engineering drawing c. bill of material d. assembly drawing e. route sheet

b. engineering drawing

48. Which of these is not a benefit of CAD/CAM? a. shorter design time b. images substitute for the real product c. production cost reductions d. new range of capabilities e. database availability

b. images substitute for the real product

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 e. is the same as product differentiation, but applied in the service sector

b. is an extension of product differentiation in the service sector

Three commonly used productivity variables are a. quality, external elements, and precise units of measure b. labor, capital, and management c. technology, raw materials, and labor d. education, diet, and social overhead e. quality, efficiency, and low cost

b. labor, capital, and management

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

Among the ethical and social challenges facing operations managers are a. honoring financial commitments b. maintaining a clean environment c. developing low-cost products d. providing an efficient workplace e. all of the above

b. maintaining a clean environment

The factor responsible for the largest portion of productivity increase in the U.S. is a. labor b. management c. capital d. all three combined; it is impossible to determine the contribution of individual factors e. none of these; most productivity increases come from investment spending

b. management

33. A forecast with a time horizon of about 3 months to 3 years is typically called a a. long-range forecast b. medium-range forecast c. short-range forecast d. weather forecast e. strategic forecast

b. medium-range forecast

45. Which of the following is not present in a time series? a. seasonality b. operational variations c. trend d. cycles e. random variations

b. operational variations

Which of the following is not an operations strategic decision? a. maintenance b. price c. layout design d. quality e. inventory

b. price

A firm can effectively use its operations function to yield competitive advantage via all of the following except a. customization of the product b. setting equipment utilization goals below the industry average c. speed of delivery d. constant innovation of new products e. maintain a variety of product options

b. setting equipment utilization goals below the industry average

64. An assembly drawing a. shows, in schematic form, how the product is assembled b. shows an exploded view of the product c. lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material d. provides detailed instructions on how to perform a given task e. describes the dimensions and finish of each component

b. shows an exploded view of the product

58. Which of the following does not result from the effective use of group technology? a. reduced tooling setup time b. simplified training c. reduced raw materials and purchases d. simplified production planning and control e. improved layout, routing, and machine loading

b. simplified training

44. A graphic technique for defining the relationship between customer desires and product/service is a. Product Lifecycle Management b. the House of Quality c. the moment of truth d. the assembly drawing e. the product development team

b. the House of Quality

Productivity measurement is complicated by a. the competition's output b. the fact that precise units of measurement are often unavailable c. stable quality d. the workforce size e. the type of equipment used

b. the fact that precise units of measurement are often unavailable

The time an activity will take assuming very unfavorable conditions is a. the optimistic time b. the pessimistic time c. the activity variance d. the minimum time e. exactly twice as long as the expected time

b. the pessimistic time

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

52. Products are more "environmentally friendly" when they are made a. using cheaper materials b. using less energy c. according to OSHA standards d. where environmental regulations are lax e. more difficult to disassemble

b. using less energy

Which of the following is an example of globalization of operations strategy? a. Boeing's Dreamliner has engines with higher fuel/payload efficiency. b. Ford's new auto models have dent-resistant panels. c. A Chinese manufacturer, Haier, now operates plants in the United States. d. Hard Rock Café provides an "experience differentiation" at its restaurants. e. All of the above are examples.

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

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's research and development department generates many ideas for new products. e. A firm advertises more than its competitors.

c. A firm's products are introduced into the market faster than its competitors' products.

The person most responsible for popularizing interchangeable parts in manufacturing was a. Frederick Winslow Taylor b. Henry Ford c. Eli Whitney d. Whitney Houston e. Lillian Gilbreth

c. Eli Whitney

Which of the following statements about trends 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. Environmentally-sensitive production is giving way to low-cost focus. d. Rapid product development is partly the result of shorter product cycles. e. All of the above statements are true.

c. Environmentally-sensitive production is giving way to low-cost focus.

Which of the following is true? a. Corporate mission is shaped by functional strategies. b. Corporate strategy is shaped by functional strategies. c. Functional strategies are shaped by corporate strategy. d. External conditions are shaped by corporate mission. e. Functional area missions are merged to become the organizational mission.

c. Functional strategies are shaped by corporate strategy.

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 devices 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 devices that show the duration of activities in a project.

The Ten Critical Decisions of Operations Management include a. Finance/accounting b. Advertising c. Process and capacity design d. Pricing e. all of the above

c. Process and capacity design

36. Which of the following statements regarding product life cycle and profitability is true? a. Profit is highest in the growth life cycle phase because the product is new and unique. b. Profit is lowest in the growth stage of the life cycle because costs are so high. c. Profit is at its greatest in the decline stage of the product life cycle. d. Breakeven is attained in the growth stage of the product life cycle. e. Cash flow turns positive in the maturity phase.

c. Profit is at its greatest in the decline stage of the product life cycle.

Which of the following statements regarding project management is *false*? a. Gantt charts give a timeline for each of a project's activities, but do not adequately show the interrelationships of activities. b. A project organization works best for a project that is temporary but critical to the organization. c. Project organization works well when the work contains simple, independent tasks. d. Gantt charts and PERT/CPM are never used together. e. None of the above is true.

c. Project organization works well when the work contains simple, independent tasks.

42. Which of the following statements about time series forecasting is true? a. It is based on the assumption that future demand will be the same as past demand. b. It makes extensive use of the data collected in the qualitative approach. c. The analysis of past demand helps predict future demand. d. Because it accounts for trends, cycles, and seasonal patterns, it is more powerful than causal forecasting. e. All of the above are true.

c. The analysis of past demand helps predict future demand.

Which of the following activities takes place *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.

Which of the following statements regarding PERT times is true? a. Expected time is an estimate of the time an activity will require if everything goes as planned. b. The optimistic time estimate is an estimate of the maximum time an activity will require. c. The probable time estimate is calculated as t = (a + 4m + b)/6. d. Pessimistic time estimate is an estimate of the minimum time an activity will require. e. Most likely time estimate is an estimate of the maximum time an activity will require.

c. The probable time estimate is calculated as t = (a + 4m + b)/6

Which of the following statements about organizational missions is *false*? a. They reflect a company's purpose. b. They indicate what a company intends to contribute to society. c. They are formulated after strategies are known. d. They define a company's reason for existence. e. They provide guidance for functional area missions.

c. They are formulated after strategies are known.

29. Which of the following statements regarding Tupperware's forecasting is false? a. Tupperware's fifty profit centers generate the basic set of projections. b. Tupperware uses at least three quantitative forecasting techniques. c. Tupperware uses only quantitative forecasting techniques. d. "Sales per active dealer" is one of three key forecasting variables (factors). e. "Jury of executive opinion" is the ultimate forecasting tool used at Tupperware.

c. Tupperware uses only quantitative forecasting techniques.

41. Which of the following is true regarding value engineering? a. Value engineering occurs only after the product is selected and designed. b. Value engineering is the same as value analysis. c. Value engineering is oriented toward improvement of design. d. Value engineering occurs during production when it is clear the product is a success. e. Value engineering can save substantial amounts of product cost, but quality suffers.

c. Value engineering is oriented toward improvement of design.

Which of the following is true about business strategies? a. An organization should stick with its strategy for the life of the business. b. All firms within an industry will adopt the same strategy. c. Well defined missions make strategy development much easier. d. Strategies are formulated independently of SWOT analysis. e. Organizational strategies depend on operations strategies

c. Well defined missions make strategy development much easier.

73. Which of the following moments of truth exemplifies the customer's standard expectations? a. Your advisor made you wait, even though you had an appointment. b. You had to visit more than once to reach your academic advisor. c. Your advisor was competent, helpful, and understanding. d. Your advisor failed to keep her appointment with you. e. Your advisor offered to work with you at your convenience.

c. Your advisor was competent, helpful, and understanding.

59. Which of the following typically shows the components, their description, and the quantity of each required to make one unit of a product? a. an engineering drawing b. an assembly drawing c. a bill of material d. an assembly chart e. a route sheet

c. a bill of material

61. The components, their description, and the quantity of each required to make one unit of a product are documented on a. a group technology listing b. a route sheet c. a bill of materials d. an engineering drawing e. none of the above

c. a bill of materials

76. Which of the following scenarios illustrates a moment that meets the customer's expectations? a. a sales clerk that called you by your name on your second visit to the store b. an express mail service that guarantees same day delivery c. a flight attendant that responds shortly after being called d. a professor that contacts people in several companies to find you a job e. a sales clerk at the clothing store that asked you to wait for a minute as soon as a wealthy-looking customer entered the store

c. a flight attendant that responds shortly after being called

67. Which of the following documents lists the operations (including assembly and inspection) necessary to produce the component with the material specified in the bill of material? a. an engineering drawing b. an assembly drawing c. a route sheet d. an assembly chart e. an operations chart

c. a route sheet

54. Which of the following is an example of an external product development strategy? a. new internally developed products b. enhancements to existing products c. alliances d. migrations of existing products e. All of the above are examples of internal product development strategy

c. alliances

Which of the following is not a typical attribute of goods? a. output can be inventoried b. often easy to automate c. aspects of quality difficult to measure d. output can be resold e. production and consumption are separate

c. aspects of quality difficult to measure

Henry Ford is noted for his contributions to a. standardization of parts b. statistical quality control c. assembly line operations d. scientific management e. time and motion studies

c. assembly line operations

The Beta distribution is used in project management to a. determine which activity should be crashed b. calculate the probability that a project will be completed within its budget c. calculate expected activity times d. calculate slack for activities on the critical path e. none of the above

c. calculate expected activity times

The PIMS program has identified the a. operations decisions all organizations must make b. distinctive competencies any company needs c. characteristics of firms with high "ROI" d. corporate decisions any company needs to make e. all of the above

c. characteristics of firms with high "ROI"

72. The percent of variation in the dependent variable that is explained by the regression equation is measured by the a. mean absolute deviation b. slope c. coefficient of determination d. correlation coefficient e. intercept

c. coefficient of determination

53. An operations manager's ethical responsibilities a. are limited to the production phase of product life cycle b. are limited to following published laws and regulations c. extend from design, to production, to final destruction/disposition of a product d. do not include being efficient with the firm's resources e. need not consider a product design's impact on the entire economy

c. extend from design, to production, to final destruction/disposition of a product

Budgeting, paying the bills, and collection of funds are activities associated with the a. management function b. control function c. finance/accounting function d. production/operations function e. staffing function

c. finance/accounting function

71. A fundamental distinction between trend projection and linear regression is that a. trend projection uses least squares while linear regression does not b. only linear regression can have a negative slope c. in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power d. linear regression tends to work better on data that lack trends e. trend projection uses two smoothing constants, not just one

c. in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power

39. The forecasting model that pools the opinions of a group of experts or managers is known as the a. sales force composition model b. multiple regression c. jury of executive opinion model d. consumer market survey model e. management coefficients model

c. jury of executive opinion model

The impact of strategies on the general direction and basic character of a company is a. short range b. medium range c. long range d. temporal e. minimal

c. long range

34. Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a a. short-range time horizon b. medium-range time horizon c. long-range time horizon d. naive method, because there is no data history e. all of the above

c. long-range time horizon

All of these preconditions affect an operations management strategy except a. external economic and technological conditions b. competitors' strengths and weaknesses c. maintenance policies d. knowledge of the company's strategy e. knowledge of each product's life cycle

c. maintenance policies

Which of the following inputs has the greatest potential to increase productivity? a. labor b. globalization c. management d. capital e. none of the above

c. management

42. Reducing the complexity of a product and improving a product's maintainability for use are activities of a. Product Lifecycle Management (PLM) b. product-by-value-analysis c. manufacturability and value engineering d. organizing for product development e. design for destruction (DFD)

c. manufacturability and value engineering

38. In which stage of the product life cycle should product strategy focus on improved cost control? a. introduction b. growth c. maturity d. decline e. none of the above

c. maturity

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

The stage in the product life cycle at which it is a poor time to change quality is a. introduction b. growth c. maturity d. decline e. incubation

c. maturity

62. The primary purpose of the mean absolute deviation (MAD) in forecasting is to a. estimate the trend line b. eliminate forecast errors c. measure forecast accuracy d. seasonally adjust the forecast e. all of the above

c. measure forecast accuracy

71. Which of the following examples involves customer participation in the design of the service? a. investing in a mutual fund b. buying a life insurance policy c. providing the stockbroker with the desired distribution of the portfolio d. seeing a movie at the theater e. eating at a fast-food restaurant

c. providing the stockbroker with the desired distribution of the portfolio

Which of the following does *not* represent reasons for globalizing operations? a. reduce costs b. improve supply chain c. reduce responsiveness d. attract and retain global talent e. All of the above are valid reasons for globalizing operations.

c. reduce responsiveness

74. Which service design technique(s) would ordinarily not be appropriate for full-service restaurant meals? a. modularizing the product b. customization as late in the process as possible c. reducing customer interaction d. the moment of truth e. All of the above are appropriate.

c. reducing customer interaction

66. A process sheet is a type of a. assembly drawing b. assembly chart c. route sheet d. work order e. bill of materials

c. route sheet

The service sector has lower productivity improvements than the manufacturing sector because a. the service sector uses less skilled labor than manufacturing b. the quality of output is lower in services than manufacturing c. services usually are labor-intensive d. service sector productivity is hard to measure e. none of the above

c. services usually are labor-intensive

Which of the following did the authors *not* suggest as a reason for globalizing operations? a. reduce costs b. improve the supply chain c. stockholder approval ratings d. attract new markets e. All of the above were suggested.

c. stockholder approval ratings

38. Which of the following uses three types of participants: decision makers, staff personnel, and respondents? a. executive opinions b. sales force composites c. the Delphi method d. consumer surveys e. time series analysis

c. the Delphi method

Which of the following preconditions does not affect the formulation of an OM strategy? a. knowledge of each product's life cycle b. external economic and technological conditions c. the company's employment benefits d. competitors' strengths and weaknesses e. knowledge of the company's strategy

c. the company's employment benefits

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. the identification of customers' wants and needs

77. The role of decision trees in product design is a. to rank products in descending order of their dollar contribution to the firm b. to better understand the customers' wants c. to calculate the expected value of each course of action d. to calculate the value of quality function deployment e. to calculate the value of the moment of truth

c. to calculate the expected value of each course of action

Which of the international operations strategies involves high cost reductions and high local responsiveness? a. international strategy b. global strategy c. transnational strategy d. multidomestic strategy e. none of the above

c. transnational strategy

28. Regal Marine a. no longer builds boats with any wooden parts b. designs and builds boat hulls by hand c. treats the product design decision as critical to its success d. gets its competitive advantage by being the low-cost producer of boats designed by others e. designs several new boats each year, but contracts other firms for their manufacture

c. treats the product design decision as critical to its success

44. Gradual, long-term movement in time series data is called a. seasonal variation b. cycles c. trends d. exponential variation e. random variation

c. trends

55. Which is not a characteristic of exponential smoothing? a. smoothes random variations in the data b. easily altered weighting scheme c. weights each historical value equally d. has minimal data storage requirements e. none of the above; they are all characteristics of exponential smoothing

c. weights each historical value equally

93. The ______________________ measures the strength of the relationship between two variables.

coefficient of correlation

The creation of a unique advantage over competitors is called a ________.

competitive advantage

The ____________ is the computed longest time path(s) through a network.

critical path

74. If two variables were perfectly correlated, the correlation coefficient r would equal a. 0 b. less than 1 c. exactly 1 d. -1 or +1 e. greater than 1

d. -1 or +1

56. Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast? a. 0 b. 1 divided by the number of periods c. 0.5 d. 1.0 e. cannot be determined

d. 1.0

Illiteracy and poor diets have been known to cost countries up to what percent of their productivity? a. 2% b. 5% c. 10% d. 20% e. 50%

d. 20%

The service industry makes up approximately what percentage of all jobs in the United States? a. 12% b. 40% c. 66% d. 79% e. 90%

d. 79%

Which of the following is an example of competing on the basis of differentiation? a. A firm manufactures its product with less raw material waste than its competitors do. b. A firm's products are introduced into the market faster than its competitors' products are. c. A firm's distribution network routinely delivers its product on time. d. A firm offers more reliable products than its competitors do. e. A firm advertises more than its competitors do.

d. A firm offers more reliable products than its competitors do.

Which of the following statements regarding CPM is true? a. The critical path is the shortest of all paths through the network. b. The critical path is that set of activities that has positive slack. c. Some networks have no critical path. d. All activities on the critical path have their LS equal their predecessor's EF. e. All of the above are false.

d. All activities on the critical path have their LS equal their predecessor's EF.

Which of the following statements concerning growth of services is true? a. Services now constitute the largest economic sector in postindustrial societies. b. The number of people employed in manufacturing has more or less held steady since 1950. c. Each manufacturing employee now produces about 20 times more than in 1950 d. All of the above are true. e. None of the above is true.

d. All of the above are true.

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

53. Which of the following statements comparing the weighted moving average technique and exponential smoothing is true? a. Exponential smoothing is more easily used in combination with the Delphi method. b. More emphasis can be placed on recent values using the weighted moving average. c. Exponential smoothing is considerably more difficult to implement on a computer. d. Exponential smoothing typically requires less record keeping of past data. e. Exponential smoothing allows one to develop forecasts for multiple periods, whereas weighted moving averages does not.

d. Exponential smoothing typically requires less record keeping of past data.

Which is not true regarding differences between goods and services? a. Services are generally produced and consumed simultaneously; tangible goods are not. b. Services tend to be more knowledge-based than products. c. Services tend to have a more inconsistent product definition than goods. d. Goods tend to have higher customer interaction than services. e. None of the above is true.

d. Goods tend to have higher customer interaction than services.

Which of these companies is most apt to have quality standards that are relatively subjective? a. Chrysler b. Dell Computer c. Sanyo Electronics d. Harvard University e. Whirlpool

d. Harvard University

Which of the following statements regarding CPM networks is true? a. There can be multiple critical paths on the same project, all with different durations. b. The early finish of an activity is the latest early start of all preceding activities. c. The late start of an activity is its late finish plus its duration. d. If a specific project has multiple critical paths, all of them will have the same duration. e. All of the above are true.

d. If a specific project has multiple critical paths, all of them will have the same duration.

47. Which of these statements best describes virtual reality technology? a. It is used to monitor and control a physical process. b. It is the use of special computer programs to direct and control manufacturing equipment. c. It is the ability to depict objects in three-dimensional form. d. It is a visual form of communication in which images substitute for the real thing. e. none of the above

d. It is a visual form of communication in which images substitute for the real thing.

45. Which of the following is true regarding computer-aided design? a. It is too expensive to use in most manufacturing and design settings. b. It is an old technology, no longer in significant use. c. It results in longer development cycles for virtually all products. d. It is the use of computers to interactively design products and prepare engineering documentation. e. All of the above are true.

d. It is the use of computers to interactively design products and prepare engineering documentation.

Which of the following statements concerning the operations management decision is relevant to services? a. There are many objective quality standards. b. The customer is not involved in most of the process. c. The work force's technical skills are very important. d. Labor standards vary depending on customer requirements. e. Ability to inventory may allow the leveling of the output rates.

d. Labor standards vary depending on customer requirements

Which of the following is not one of The Ten Critical Decisions of Operations Management? a. Layout strategy b. Maintenance c. Process and capacity design d. Mass customization e. Supply chain management

d. Mass customization

The acronym MNC stands for a. Mexican National Committee (for international trade) b. Maquiladora Negates Competition c. Maytag- Nestlé Corporation d. Multinational Corporation e. none of the above

d. Multinational Corporation

Which of the following statements regarding critical paths is true? a. The shortest of all paths through the network is the critical path. b. Some activities on the critical path may have slack. c. Every network has exactly one critical path. d. On a specific project, there can be multiple critical paths, all with exactly the same duration. e. The duration of the critical path is the average duration of all paths in the project network.

d. On a specific project, there can be multiple critical paths, all with exactly the same duration.

Which of the following statements regarding PERT analysis is true? a. Each activity has two estimates of its duration. b. Project variance is the sum of all activity variances. c. Project standard deviation is the sum of all critical activity standard deviations. d. Only critical activities contribute to the project variance. e. None of the above is true.

d. Only critical activities contribute to the project variance.

39. ______________ is used to rank a company's products to determine which products represent the best use of the firm's resources, or, perhaps, to determine which products are to be eliminated. a. Value analysis b. Value engineering c. Financial analysis d. Product-by-value analysis e. Product cost justification

d. Product-by-value analysis

Which of the following statements concerning CPM activities is false? a. The early finish of an activity is the early start of that activity plus its duration. b. The late finish is the earliest of the late start times of all successor activities. c. The late start of an activity is its late finish less its duration. d. The late finish of an activity is the earliest late start of all preceding activities. e. The early start of an activity is the latest early finish of all preceding activities.

d. The late finish of an activity is the earliest late start of all preceding activities.

Who among the following is associated with contributions to quality control in operations management? a. Charles Babbage b. Henry Ford c. Frank Gilbreth d. W. Edwards Deming e. Henri Fayol

d. W. Edwards Deming

Which of these organizations is likely to have the most complex inventory decisions? a. a marketing research firm b. a stock brokerage firm c. a management consulting firm d. a computer manufacturing company e. a high school

d. a computer manufacturing company

Which of the following will more likely locate near their customers? a. an automobile manufacturer b. an aluminum manufacturer c. an insurance company headquarters d. a medical clinic e. All of the above will tend to locate near their customers.

d. a medical clinic

75. Which of the following scenarios illustrates a moment that exceeds the customer's expectations? a. an express mail service that guarantees overnight delivery b. a flight attendant that responds shortly after being called c. a hairdresser that cuts your hair at the right length d. a professor that contacts people in several companies to find you a job e. a bank that sends you monthly account statements

d. a professor that contacts people in several companies to find you a job

Response-based competitive advantage can be a. flexible response b. reliable response c. quick response d. all of the above e. none of the above

d. all of the above

Which of these organizations is likely to have the most important inventory decisions? a. a marketing research firm b. a lobbying agency c. a management consulting firm d. an aluminum manufacturer e. a law firm

d. an aluminum manufacturer

75. The last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts were 60, 80, 95, and 75 units. These forecasts illustrate a. qualitative methods b. adaptive smoothing c. slope d. bias e. trend projection

d. bias

Franz Colruyt has achieved low-cost leadership through a. effective use of voice mail b. plastic, not paper, shopping bags c. background music that subtly encourages shoppers to buy more d. converting factories, garages, and theaters into retail outlets e. use of the Euro, not the currency of each European country

d. converting factories, garages, and theaters into retail outlets

73. The degree or strength of a linear relationship is shown by the a. alpha b. mean c. mean absolute deviation d. correlation coefficient e. RSFE

d. correlation coefficient

78. Payoffs, alternatives, and expected monetary values are terms associated with a. virtual reality b. Product Lifecycle Management c. Quality Function Deployment d. decision trees e. make-or-buy analysis

d. decision trees

Cost minimization is an appropriate strategy in which stage of the product life cycle? a. introduction b. growth c. maturity d. decline e. retirement

d. decline

Productivity can be improved by a. increasing inputs while holding outputs steady b. decreasing outputs while holding inputs steady c. increasing inputs and outputs in the same proportion d. decreasing inputs while holding outputs steady e. none of the above

d. decreasing inputs while holding outputs steady

50. Value analysis takes place a. when the product is selected and designed b. during the initial stages of production when something needs to be done to assure product success c. when the product is first conceived d. during the production process when it is clear the new product is a success e. when the product cost is very low

d. during the production process when it is clear the new product is a success

Which of the following services is least likely to be unique, i.e., customized to a particular individual's needs? a. dental care b. hairdressing c. legal services d. elementary education e. computer consulting

d. elementary education

54. Which time series model uses past forecasts and past demand data to generate a new forecast? a. naive b. moving average c. weighted moving average d. exponential smoothing e. regression analysis

d. exponential smoothing

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

Costs, quality, and human resource decisions interact strongly with the _______ decision. a. layout design b. process and capacity design c. supply chain management d. goods and service design e. All of the above are correct.

d. goods and service design

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

d. has increased efficiency from new engine technology

Which of the following is *not* among the ethical and social challenges facing operations managers? a. honoring community commitments b. maintaining a clean environment c. efficiently developing and producing safe quality products d. increasing executive pay e. providing a safe workplace

d. increasing executive pay

34. A product's life cycle is divided into four stages, which are a. introduction, growth, saturation, and maturity b. introduction, growth, stability, and decline c. introduction, maturity, saturation, and decline d. introduction, growth, maturity, and decline e. none of the above

d. introduction, growth, maturity, and decline

28. Tupperware's use of forecasting a. involves only a few statistical tools b. concentrates on the low-level dealer, and is not aggregated at the company level c. relies on the fact that all of its products are in the maturity phase of the life cycle d. is a major source of its competitive edge over its rivals e. takes inputs from sales, marketing, and finance, but not from production

d. is a major source of its competitive edge over its rivals

Divulging information to some bidders on a project to give them an unfair advantage a. is the same thing as altering a status report b. is bribery c. is permitted by NAFTA d. is known as bid rigging e. is acceptable for private corporations but not for government agencies

d. is known as bid rigging

Which of the following are the primary functions of all organizations? a. operations, marketing, and human resources b. marketing, human resources, and finance/accounting c. sales, quality control, and operations d. marketing, operations, and finance/accounting e. research and development, finance/accounting, and purchasing

d. marketing, 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

Which of the international operations strategies uses the existing domestic model globally? a. international strategy b. global strategy c. transnational strategy d. multidomestic strategy e. none of the above

d. multidomestic strategy

The total of all outputs produced by the transformation process divided by the total of the inputs is a. utilization b. greater in manufacturing than in services c. defined only for manufacturing firms d. multifactor productivity e. none of the above

d. multifactor productivity

55. Which of the following product development strategies has the highest risk? a. acquiring the developer b. alliances c. joint ventures d. new internally developed products e. purchasing technology

d. new internally developed products

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

NAFTA seeks to a. substitute cheap labor in Mexico for expensive labor in the United States b. curb illegal immigration from Mexico to the United States c. phase out all trade and tariff barriers between the United States and Mexico d. phase out all trade and tariff barriers between the United States, Canada, and Mexico e. All of the above are NAFTA goals.

d. phase out all trade and tariff barriers between the United States, Canada, and Mexico

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

Understanding competitors' strengths and weaknesses, understanding current and prospective technological issues, and understanding product life cycle are examples of a. what is important to the transnational strategy but not the multidomestic strategy b. SWOT analysis c. elements in the formulation of an organization's mission d. preconditions to establishing and implementing a strategy e. the critical decision area of supply chain analysis

d. preconditions to establishing and implementing a strategy

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. preparing employee schedules

Which of the following is not an element of the management process? a. controlling b. leading c. planning d. pricing e. staffing

d. pricing

37. The analysis tool that helps determine what products to develop, and by what strategy, by listing products in descending order of their individual dollar contribution to the firm is a. decision tree analysis b. Pareto analysis c. breakeven analysis d. product-by-value analysis e. product life cycle analysis

d. product-by-value analysis

47. In time series, which of the following cannot be predicted? a. large increases in demand b. technological trends c. seasonal fluctuations d. random fluctuations e. large decreases in demand

d. random fluctuations

76. The tracking signal is the a. standard error of the estimate b. running sum of forecast errors (RSFE) c. mean absolute deviation (MAD) d. ratio RSFE/MAD e. mean absolute percentage error (MAPE)

d. ratio RSFE/MAD

52. Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of a. manager understanding b. accuracy c. stability d. responsiveness to changes e. All of the above are diminished when the number of periods increases.

d. responsiveness to changes

62. A route sheet provides a(n) a. exploded view of the product b. instruction to make a given quantity of a particular item c. schematic showing how the product is assembled d. sequence of operations necessary to produce the component e. set of detailed instructions about how to perform a task

d. sequence of operations necessary to produce the component

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

When developing the operations strategy for a new manufacturing organization, one of the most important considerations is that it a. requires minimal capital investment b. utilizes as much automation as possible c. utilizes an equal balance of labor and automation d. supports the overall competitive strategy of the company e. none of the above

d. supports the overall competitive strategy of the company

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 and service e. to the manufacturing sector exclusively

d. to all firms, whether manufacturing and service

Competitive advantage in operations can be achieved by ______, ______, and/or ________.

differentiation, low cost, response

Which of the following best describes "experience differentiation"? a. immerses consumers in the delivery of a service b. uses people's five senses to enhance the service c. complements physical elements with visual and sound elements d. consumers may become active participants in the product or service e. All are elements of experience differentiation.

e. All are elements of experience differentiation.

Which of these is *not* one of the PIMS characteristics of high return on investment organizations? a. high product quality b. high capacity utilization c. low investment intensity d. low direct cost per unit e. All of the above are PIMS characteristics.

e. All of the above are PIMS characteristics.

Current trends in operations management include all of the following except a. just-in-time performance b. rapid product development c. mass customization d. empowered employees e. All of the above are current trends.

e. All of the above are current trends.

Which of the following is not a current trend in operations management? a. just-in-time performance b. global focus c. supply chain partnering d. mass customization e. All of the above are current trends.

e. All of the above are current trends.

Examples of response to the global environment include a. Boeing's worldwide sales and production b. Benneton's flexibility in design, production, and distribution c. A Chinese manufacturer, Haier, opening plants in the United States d. Ford's partnerships with Volvo and Mazda e. All of the above are examples.

e. All of the above are examples.

One new trend in operations management is a. global focus b. mass customization c. empowered employees d. rapid product development e. All of the above are new trends in operations management.

e. All of the above are new trends in operations management.

40. Which of the following represent an opportunity for generating a new product? a. understanding the customer b. demographic change, such as decreasing family size c. changes in professional standards d. economic change, such as rising household incomes e. All of the above are such opportunities.

e. All of the above are such opportunities.

Which of the following are examples of transnational firms? a. Nestlé b. Asea Brown Boveri c. Reuters d. Citicorp e. All of the above are transnationals.

e. All of the above are transnationals

27. Which of these statements regarding Regal Marine is true? a. Product design is a critical decision for the firm. b. Regal uses a three-dimensional CAD system to shorten product development time. c. Regal still uses some wooden parts and hand-produces some components. d. Regal's use of CAD has resulted in a superior product. e. All of the above are true.

e. All of the above are true.

46. Which of the following is true concerning CAD? a. Accurate information flows to other departments. b. Most product costs are determined at the design stage. c. Design options are easier to review before final commitments are made. d. Virtually all products have their development cycle shortened. e. All of the above are true.

e. All of the above are true.

Ethical issues that may arise in projects large and small include a. bid rigging b. expense account padding c. compromised safety or health standards d. bribery e. All of the above are true.

e. All of the above are true.

Which of the following statements regarding Bechtel is true? a. Its competitive advantage is project management. b. Bechtel was the construction contractor for the Hoover Dam. c. While helping to rebuild Iraq, Bechtel's crews had to travel under armed escort. d. Bechtel's procurement program is global in nature. e. All of the above are true.

e. All of the above are true.

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.

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 are valid.

e. All of the above are valid.

Which of the following influences layout design? a. inventory requirements b. capacity needs c. personnel levels d. technology decisions e. All of the above influence layout decisions.

e. All of the above influence layout decisions.

30. Which of the following are likely to influence market opportunities in the auto industry? a. the development of stronger materials b. sustained economic growth c. changing demographics d. suppliers e. All of the above may influence market opportunities

e. All of the above may influence market opportunities

What was the name of the construction project to rebuild the Pentagon after the terrorist attacks on Sept. 11, 2001? a. Project Panther b. Project Pit Bull c. Project Python d. Project Piranha e. Project Phoenix

e. Project Phoenix

Which of the following is *not true* when explaining why productivity tends to be lower in the service sector than in the manufacturing sector? a. Services are typically labor-intensive. b. Services are often difficult to evaluate for quality. c. Services are often an intellectual task performed by professionals. d. Services are difficult to automate. e. Service operations are typically capital intensive.

e. Service operations are typically capital intensive.

68. Which of the following is true regarding the two smoothing constants of the Forecast Including Trend (FIT) model? a. One constant is positive, while the other is negative. b. They are called MAD and RSFE. c. Alpha is always smaller than beta. d. One constant smoothes the regression intercept, whereas the other smoothes the regression slope. e. Their values are determined independently.

e. Their values are determined independently.

43. Time series data may exhibit which of the following behaviors? a. trend b. random variations c. seasonality d. cycles e. They may exhibit all of the above

e. They may exhibit all of the above

79. Taco Bell's unique employee scheduling practices are partly the result of using a. point-of-sale computers to track food sales in 15 minute intervals b. focus forecasting c. a six-week moving average forecasting technique d. multiple regression e. a and c are both correct

e. a and c are both correct

A project organization a. is effective for companies with multiple large projects b. is appropriate only in construction firms c. often fails when the project cuts across organizational lines d. is formed to ensure that programs (projects) get proper management and attention e. a and d are both true

e. a and d are both 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

31. Operations managers must be able to anticipate changes in which of the following? a. product mix b. product opportunities c. the products themselves d. product volume e. all of the above

e. all of the above

43. Quality function deployment (QFD) a. determines what will satisfy the customer b. translates customer desires into the target design c. is used early in the design process d. is used to determine where to deploy quality efforts e. all of the above

e. all of the above

51. Which of the following makes products that are friendlier to the environment? a. using less materials b. more recycled materials c. using less energy d. using less harmful ingredients e. all of the above

e. all of the above

78. Many services maintain records of sales noting a. the day of the week b. unusual events c. weather d. holidays e. all of the above

e. all of the above

A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include a. lenders b. suppliers c. owners d. employees e. all of the above

e. all of the above

Among the ethical and social challenges facing operations managers are a. honoring community commitments b. maintaining a clean environment c. efficiently developing and producing safe quality products d. providing a safe workplace e. all of the above

e. all of the above

Cost cutting in international operations can take place because of a. lower taxes and tariffs b. lower wage scales c. lower indirect labor costs d. less stringent regulations e. all of the above

e. all of the above

Franz Colruyt has achieved low-cost leadership through a. Spartan headquarters b. absence of voice mail c. low-cost facilities d. no background music e. all of the above

e. all of the above

Multinational organizations can shop from country to country and cut costs through a. lower wage scales b. lower indirect labor costs c. less stringent regulations d. lower taxes and tariffs e. all of the above

e. all of the above

Productivity tends to be more difficult to improve in the service sector because the work is a. often difficult to automate b. typically labor-intensive c. frequently processed individually d. often an intellectual task performed by professionals e. all of the above

e. all of the above

Reasons to study Operations Management include learning about a. why 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. all of the above

The Ten Critical Decisions of Operations Management include a. Layout strategy b. Maintenance c. Process and capacity design d. Managing quality e. all of the above

e. all of the above

The field of operations management is shaped by advances in which of the following fields? a. chemistry and physics b. industrial engineering and management science c. biology and anatomy d. information technology e. all of the above

e. all of the above

Which of the following changes does not result in strategy changes? a. change in the company's financial situation b. a company's adoption of new technology c. change in the product life cycle d. change in the competitive environment e. change in job scheduling techniques

e. change in job scheduling techniques

The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is a. mass production b. time-based competition c. differentiation d. flexible response e. experience differentiation

e. experience differentiation

58. A forecast based on the previous forecast plus a percentage of the forecast error is a(n) a. qualitative forecast b. naive forecast c. moving average forecast d. weighted moving average forecast e. exponentially smoothed forecast

e. exponentially smoothed forecast

31. One use of short-range forecasts is to determine a. production planning b. inventory budgets c. research and development plans d. facility location e. job assignments

e. job assignments

40. Which of the following is not a type of qualitative forecasting? a. executive opinions b. sales force composites c. consumer surveys d. the Delphi method e. moving average

e. moving average

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

Caterpillar and Texas Instruments are two firms that have benefited from the use of a. the multidomestic strategy option. b. the multinational corporation strategy. c. the transnational strategy option. d. the maquiladora system in Europe. e. the global strategy option.

e. the global strategy option.

Service organizations can immerse the consumer in the service, or have the consumer become a participant in the service, as they practice ________.

experience differentiation

87. The smoothing constant is a weighting factor used in ______________.

exponential smoothing

91. When one constant is used to smooth the forecast average and a second constant is used to smooth the trend, the forecasting method is __________________.

exponential smoothing with trend adjustment or trend-adjusted smoothing or second-order smoothing

Marketing, Production, and _____________________________ are the three functions that all organizations must perform to create goods and services.

finance/accounting

The ________ strategy utilizes a standardized product across countries.

global

Productivity is the ratio of ____________ to _________. Using this relationship, productivity can be improved by ______________________ or _________________________.

inputs, outputs; reducing inputs while holding outputs constant; increasing outputs while holding inputs constant.

he _______ strategy uses exports and licenses to penetrate globally.

international

80. Tupperware uses several forecasting techniques, but the final forecasts make use of the technique known as _________.

jury of executive opinion

89. A measure of forecast error that does not depend on the magnitude of the item being forecast is the ___________.

mean absolute percent error or MAPE

86. A(n) ______________ forecast uses an average of the most recent periods of data to forecast the next period.

moving average

The ________ strategy uses subsidiaries, franchises, or joint ventures with substantial independence.

multidomestic

A diagram of all activities and the precedence relationships that exist between these activities in a project is a(n) _____________.

network

Strategy is not static, but dynamic because of changes in the ________________ and __________________.

organization, environment

Boeing found its Dreamliner 787 partners in _____________________ countries.

over a dozen

In goods producing organizations, ________,_________, and ________ may be inventoried.

raw materials, work-in-process, and finished goods

94. If a barbershop operator noted that Tuesday's business was typically twice as heavy as Wednesday's, and that Friday's business was typically the busiest of the week, business at the barbershop is subject to ____________.

seasonal variations

The ______ is how an organization expects to achieve its missions and goals.

strategy

"Should we make or buy this component?" is an issue in the _____________________________ critical decision area.

supply chain management

An organization that has worked to achieve global uniformity in cultural and ethical issues such as bribery, child labor, and environmental regulations is _________________________.

the World Trade Organization

Starbuck's stopped requiring signatures on credit-card purchases under $25 in an attempt to reduce _____________________________ .

transaction time (or service time)

The ________ strategy describes a condition in which material, people, and ideas cross or transgress national boundaries.

transnational