ISDS 3115 Multiple Choice Concepts Ch. 1
Which of the following activities at an airline is NOT an operations activity? A. crew scheduling B. catering C. flying D. sales
Sales
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. a supply chain. D. business functions.
Supply Chain
Competition in the 21st century is no longer between companies; it is between A. countries. B. individuals. C. supply chains. D. technologies.
Supply Chains
Which is not true regarding the differences between goods and services? A. Tangible goods are generally produced and consumed simultaneously; services are not. B. Most goods are common to many customers; services are often unique to the final customer. C. Services tend to have a more inconsistent product definition than goods.
Tangible goods are generally produced and consumed simultaneously; services are not.
Which of the following is NOT one of the four reasons that we study OM? A. We want to understand what marketing managers do. B. We want to know how goods and services are produced. C. It is one of the three major functions of any organization. D. It is such a costly part of an organization.
We want to understand what marketing managers do
Which of the following is the best example of a pure service? A. electric Co-Op B. oil change C. heart transplant D. restaurant E. counseling
counseling
The production process at Hard Rock Cafe does NOT include which of the following activities? A. cooking B. advertising C. placing raw materials in cold storage D. receiving
advertising
Which of the following is NOT a characteristic of services? A. produced and consumed simultaneously B. unique C. standardized product D. intangible
standardized product
Productivity measurement is complicated by __________. A. the lack of precise units of measurement B. the type of equipment used C. the competition's output
the lack of precise units of measurement
Which of the following products is likely to be assembled on a repetitive process line? A. Steel B. Beer C. Custom personal computers D. Custom cakes E. Automobiles
Automobiles
Which of the following is NOT considered to be a stakeholder? A. competitors B. community members C. distributors D. customers
Competitors
Which of the following is the best example of a pure service? A. Counseling B. Oil change C. Heart Transplant
Counseling
A law firm has a staff of four employees working 8 hours a day for a total payroll cost of $640. In addition, the law firm has overhead expenses of $800 per day. Due to a recent software change, the same employees are able to process 14 case files a day rather than 8 using the old software system. What is the multifactor productivity of this revised operation? A. .0097 case files per dollar B. .0077 case files per dollar C. .4375 case files per labor hour
.0097 case files per dollar
Which of the following best defines scheduling? A. Determines and implements long- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. B. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. C. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. D. Determines and implements long- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands.
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 is not a typical service attribute? A. Easy to store B. Customer interaction is high C. Intangible product
Easy to store
Which of the following organizations does NOT belong to the service sector? A. San Diego Zoo B. Costco C. Southwest Airlines D. Ford Motor Company
Ford Motor Company
The "father" of scientific management is __________. A. Frederick W. Taylor B. Eli Whitney C. Henry Ford
Frederick W. Taylor
The father of scientific management is A. Eli Whitney. B. Henry L. Gantt. C. Frederick W. Taylor. D. Henry Ford.
Frederick W. Taylor
Which operations function at a manufacturing facility strives for the efficient use of machines, space, and personnel? A. process analysis B. design C. industrial engineering D. production and inventory control
Industrial Engineering
Which of the following appears to provide the best opportunity for increases in productivity? A. Management B. Labor C. Capital
Management
Which of the following is NOT one of the factors that fosters specialization and worldwide supply chains? A. cheaper transportation B. marketing C. specialized expert knowledge D. instant communication
Marketing
Which of these is NOT one of the 10 strategic OM decisions? A. marketing B. scheduling C. managing quality D. layout strategies
Marketing
A large percentage of the revenue of most firms is spent on which function? A. marketing B. finance C. research and development D. operations
Operations
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. managing quality B. process and capacity design C. design of goods and services D. human resources and job design
Process and capacity design
The creation of goods and services is referred to as: A. production. B. formation. C. design. D. transformation.
Production
Which of the following is NOT considered to be one of the three primary functions that all organizations perform? A. finance/accounting B. production/operations C. marketing D. research and development
Research and Development
Which is NOT true regarding differences between goods and services? A. Services tend to have higher customer interaction than goods. B. Tangible goods are generally produced and consumed simultaneously; services are not. C. Services tend to have a more inconsistent product definition than goods. D. Most goods are common to many customers; services are often unique to the final customer. E. None, i.e., all of the above are true.
Tangible goods are generally produced and consumed; services are not.
The service sector constitutes what percentage of employment in the United States? A. between 50% to 60% B. between 60% to 70% C. between 80% to 90% D. between 70% to 80%
between 80% to 90%
Which of the following tasks would NOT typically represent an operations management activity at Hard Rock Cafe? A. designing an efficient layout B. filing a tax return C. preparing an employee schedule D. receiving a shipment of incoming food ingredients
filing a tax return
The capital investment each year in the United States usually A. increases B. decreases C. remains constant
increases
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
inputs decrease while outputs remain the same
Three critical productivity variables are __________. A. labor, capital, and management B. technology, raw materials, and labor C. inputs, technology, and outputs
labor, capital, and management
Which of the following trends is NOT part of the exciting OM challenges currently facing operations managers? A. supply chain partnering B. rapid product development C. local focus D. sustainability
local focus
Which of these statements accurately captures a current trend in operations? A. Jobs are increasingly specialized as workers focus on basic assembly tasks. B. Rapid product development. C. Mass production at the expense of product variety. D. There is increased focus on local market and local competition.
rapid product development
Two car wash employees are paid $7.50 an hour each and are capable of washing 12 cars per hour, using $1 of water and $2 of soap and other cleaning supplies. What is the multifactor productivity of this operation? A. .667 cars per dollar B. 1.05 cars per dollar C. 1.8 cars per dollar
.667 cars per dollar
An insurance adjuster processes the claims of six policy holders in an eight hour work day. The adjuster uses $5 in gasoline and $3 in forms and office supplies to complete the work. What is her labor productivity? A. .75 claims per hour B. 1.33 hours per claim C. 1 claim per dollar
.75 claims per hour
A foundry produces manhole covers. If 120 covers are produced in a 10-hour shift, the productivity of the line is __________. A. 12 covers/hr B. 1200 covers/hr C. 2 covers/hr
12 covers/hr
Gibson Valves produces cast bronze valves on an assembly line. If 1600 valves are produced in an 8-hour shift, the productivity of the line is __________. A. 200 valves/hr B. 80 valves/hr C. 180 valves/hr
200 valves/hr
The service sector makes up approximately what percentage of all jobs in the United States? A. 80% B. 70% C. 60%
80%
Which of the following activities at a commercial bank is NOT an operations activity? A. security B. maintenance C. check clearing D. auditing
Auditing
Which of the following is NOT a typical service attribute? A. customer interaction is high B. simultaneous production and consumption C. intangible product D. difficult to resell E. easy to store
Easy to Store
The person who introduced standardized, interchangeable parts was __________. A. Eli Whitney B. Henry Ford C. Frederick W. Taylor
Eli Whitney
The person who introduced standardized, interchangeable parts was A. Eli Whitney. B. Frederick W. Taylor. C. W. Edwards Deming. D. Henry Ford.
Eli Whitney
Which is not true regarding differences between goods and services? A. Goods tend to have higher customer interaction than services. B. Services are generally produced and consumed simultaneously; tangible goods are not. C. Services tend to be more knowledge based than goods.
Goods tend to have higher customer interaction than services.
Which of the following is not one of the basic functions of the management process? A. Inspecting B. Controlling C. Leading
Inspecting
Which of these is NOT one of the basic functions of the management process? A. leading B. inspecting C. controlling D. staffing
Inspecting
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 provides safety against higher-than expected demand. B. Inventory constrains response to ever-shorter product life cycles. C. Inventory requires financial resources. D. Inventory hides quality issues.
Inventory provides safety against higher-than expected demand
What is the goal for mass customization? A. The goal is to let operations managers work with their supply chain to viciously cut inventories at every level. B. The goal is to enrich jobs and move more decision making to the individual contributor. C. The goal is to seek creative designs, efficient production, and high-quality goods via international collaboration. D. The goal is to produce customized products, whenever and wherever needed.
The goal is to produce customized products, whenever and wherever needed
In general, the supply chain starts with A. the provider of basic raw materials. B. a distributor. C. final customers at the retail store. D. research and development.
The provider of basic raw materials
Which of the following is FALSE regarding repetitive processes? A. They allow easy switching from one product to the other B. They include the assembly of basically all automobiles C. They use modules D. They have more structure and less flexibility than a job shop layout E. They are the classic assembly lines
They allow easy switching from one product to the other
Which of the following is an example of a "hidden" production function? A. assembling a motorcycle B. producing a computer C. manufacturing a television D. transplanting a liver
Transplanting a Liver
Which of the following does NOT contribute to OM? A. unsystematic processing of data B. information technology C. innovations from physical sciences D. other disciplines including industrial engineering, statistics, management, and economics
Unsystematic Processing of Data
The person who believed that management must do more to improve the work environment and processes so that quality can be improved was A. Walter Shewhart. B. Henry Ford. C. W. Edwards Deming. D. Eli Whitney.
W. Edwards Deming
The person who is most noted for his contributions to quality control in operations management was __________. A. W. Edwards Deming B. Eli Whitney C. Henry Ford
W. Edwards Deming
Among the ethical and social challenges facing operations managers are __________. A. maintaining a sustainable environment B. providing an efficient workplace C. honoring financial commitments
maintaining a sustainable environment
The three major business functions necessary to all organizations are __________. A. marketing, finance/accounting and production/operations B. finance/accounting, personnel and production/operations C. marketing, research/development and finance/accounting
marketing, finance/accounting and production/operations
The total of all outputs produced by the transformation process divided by the total of the inputs is __________. A. multifactor productivity B. single-factor productivity C. full factor productivity
multifactor productivity
An operations task performed at Hard Rock Café is __________. A. preparing employee schedules B. advertising changes in the restaurant menu C. calculating restaurant profit and loss
preparing employee schedules
The economic activities that typically produce an intangible product are referred to as A. phantoms. B. products. C. services. D. goods.
services
The service sector has lower productivity improvements than the manufacturing sector because __________. A. the service sector is usually more labor intensive than the manufacturing sector B. the service sector uses less skilled labor than the manufacturing sector C. the output quality is lower in the service sector than in the manufacturing sector
the service sector is usually more labor intensive than the manufacturing sector
Increases in productivity are difficult to achieve if __________. A. the task is more personal B. the task is more standardized C. the task is more repetitive
the task is more personal
