MGT 3200 - Chapter 1 Reading SmartBoo

Which of the following is/are true? Multiple select question. - All models are miniature versions of physical entities. - A model is a simplified representation of something. - A model is an abstraction of reality.

- A model is a simplified representation of something. - A model is an abstraction of reality.

Which of the following statements about a system approach is/are true? Multiple select question. - A systems approach to decision making emphasizes the interrelationship between different subsystems of the organization. - A systems approach to decision making assumes that the whole is greater than the sum of its (subsystem) parts. - A systems approach to decision making assumes that the whole is equal to the sum of its (subsystem) parts. - A systems approach to decision making assumes that a system consists of unrelated subsystems.

- A systems approach to decision making emphasizes the interrelationship between different subsystems of the organization. - A systems approach to decision making assumes that the whole is greater than the sum of its (subsystem) parts.

Which of the following are professional societies in operations? Multiple select question. ABET APICS SHRM ISM ASQ

- APICS - ASQ - ISM

Finance and operations management personnel cooperate by exchanging information and expertise in which activities? Multiple select question. - Hiring of new personnel - Analysis of investment proposals - Provision of funds - Budgeting - Assessing customer wants and needs

- Analysis of investment proposals - Provision of funds - Budgeting

Which of the following is/are part of the role of marketing for a business? Multiple select question. - Assessing consumer wants and needs - Producing new products to drive demand - Promoting the organization's goods or services

- Assessing consumer wants and needs - Promoting the organization's goods or services

Which of the following is/are NOT part of the role of operations in a business? Multiple select question. - Produce goods and/or services - Assessing customer wants and needs - Secure financial resources for projects - Promote organization's goods or service

- Assessing customer wants and needs - Secure financial resources for projects - Promote organization's goods or service

Which of the following area are part of, or support, the operations function? Multiple select question. Distribution Industrial engineering Public relations Purchasing Maintenance

- Distribution - Industrial Engineering - Purchasing - Maintenance

In practice, there is significant interfacing and collaboration among the various functional areas. What does this involve? Multiple select question. Exchange of information Cooperative decision making Transfer pricing Exchange of personnel

- Exchange of information - Cooperative decision making

Which of the following statement(s) is/are correct? Multiple select question. - Companies cannot provide both goods and services. - Goods are physical items. - Services are activities that provide some sort of value.

- Goods are physical items. - Services are activities that provide some sort of value.

Which of the following is/are true about the degree of customization a company offers its customers? Multiple select question. - Greater customization tends to require greater employee skill. - Greater customization tends to reduce prices because less inventory must be kept of each item. - Greater customization impacts only the operational side of the business. - Greater customization tends to require more specialized (or flexible) equipment.

- Greater customization tends to require greater employee skill. - Greater customization tends to require more specialized (or flexible) equipment.

Which of the following statements is/are correct regarding craft production? Multiple select question. - Highly-skilled workers produced goods according to customer specifications - The tools used were simple and flexible - The simplicity of tools lead to economies of scale. - Goods were created in large batches due to the great skill of the workers

- Highly-skilled workers produced goods according to customer specifications - The tools used were simple and flexible

Which of the following can marketing provide? Multiple select question. - Judgment on the manufacturability of designs. - Information on consumer preferences - Insight on what competitors are doing - Information on what funds might be available - Information on supplier preferences

- Information on consumer preferences - Insight on what competitors are doing

Which of the following statements is/are correct about the use of interchangeable parts in mass production? Multiple select question. - Interchangeable/standardized parts increased inventory costs because more of the parts must be kept in storage. - Interchangeable parts significantly reduced assembly cost - Interchangeable parts significantly reduced assembly time. - Interchangeable parts can be used for replacement parts.

- Interchangeable parts significantly reduced assembly cost - Interchangeable parts significantly reduced assembly time. - Interchangeable parts can be used for replacement parts.

Which of the following statements is/are correct? Multiple select question. - Mass production produces small volumes of specialized products. - Mass production relies on low-skilled workers and highly-specialized equipment. - Mass production produces large volumes of standardized goods.

- Mass production relies on low-skilled workers and highly-specialized equipment. - Mass production produces large volumes of standardized goods.

Which of the following factors tends to be higher in manufacturing than in services? Multiple select question. Customer contact Labor content Opportunity to correct problems Uniformity of inputs Inventory

- Opportunity to correct problems - Uniformity of inputs - Inventory

Which of the following statement(s) is/are NOT correct? Multiple select question. - Goods are physical items - Organizations that provide services do not sell goods. - Services are activities that provide some sort of value - Organizations that sell goods do not provide services.

- Organizations that provide services do not sell goods. - Organizations that sell goods do not provide services.

Which of the following is/are true about the impact of variability on managing processes? Multiple select question. - Process variability can lead to product delays and shortages, which can lead to a damaged company reputation. - Variability in processes can make planning and managing the process more challenging. - Customers understand that process variability occurs and accept that delays are inevitable.

- Process variability can lead to product delays and shortages, which can lead to a damaged company reputation. - Variability in processes can make planning and managing the process more challenging.

Which of the following is/are NOT part of the role of operations in a business? Multiple select question. - Produce goods for customers - Promote organization's goods or service - Secure financial resources for projects - Provide services for customers

- Promote organization's goods or service - Secure financial resources for projects

Which of the following is/are the responsibility of marketing? Multiple select question. - Approving new product designs - Evaluating production equipment - Promoting goods and services - Communicating customer needs to manufacturing - Assessing customer wants and needs

- Promoting goods and services - Communicating customer needs to manufacturing - Assessing customer wants and needs

Which of the following is/are correct statements about the limitations of using (mathematical) models as decision making tools? Multiple select question. - Qualitative information can be difficult to capture in quantitative models. - Models are more expensive than dealing directly with the actual problem. - Models may be placed in the hands of users who are not sufficiently knowledgeable to appreciate the subtleties of a particular model. - Models make it complicated to understand the problem.

- Qualitative information can be difficult to capture in quantitative models. - Models may be placed in the hands of users who are not sufficiently knowledgeable to appreciate the subtleties of a particular model.

Which of the following are the basic sources of process variation? Multiple select question. - Random variation. - Variety of goods or services being offered. - Structural variation in demand. - Increased demand over time. - Decreased demand over time. - Assignable variation.

- Random variation. - Variety of goods or services being offered. - Structural variation in demand. - Assignable variation.

Which of the following statements is/are correct? Multiple select question. - Workers appreciated scientific management for showing them how to increase their efficiency and output. - Scientific management was a management style more in-line with the higher levels of productivity introduced by the Industrial Revolution. - Scientific management placed great value on maximizing output.

- Scientific management was a management style more in-line with the higher levels of productivity introduced by the Industrial Revolution. - Scientific management placed great value on maximizing output.

Which of the following are part of the role of the finance department in a business? Multiple select question. - Providing the services offered by the organization - Securing financial resources at favorable prices - Analyzing investment proposals - Budgeting - Providing funds for operations - Allocating financial resources throughout the organization - Assessing customer wants and needs

- Securing financial resources at favorable prices - Analyzing investment proposals - Budgeting - Providing funds for operations - Allocating financial resources throughout the organization

Which of the following is/are true? Multiple select question. - Services can often require more, and more specialized, labor than manufacturing does. - Because services are consumed at the same time they are produced, services are easier to manage. - Services have a higher degree of wage variability. - It can be more challenging to measure productivity in services because of the higher degree of variability in the types of services performed.

- Services can often require more, and more specialized, labor than manufacturing does. - Services have a higher degree of wage variability. - It can be more challenging to measure productivity in services because of the higher degree of variability in the types of services performed.

Identify the true statements from the following. (Check all that apply.) Multiple select question. - Services often have a higher degree of customer contact than manufacturing does. - Quality assurance can be challenging in services because of the variation in types of services provided. - Providing services is less costly because it does not require maintenance or storage of inventory. - Services often have more labor content than manufacturing jobs do. - Because of reliance on suppliers, production of goods is often subject to higher variability than services are.

- Services often have a higher degree of customer contact than manufacturing does. - Quality assurance can be challenging in services because of the variation in types of services provided. - Services often have more labor content than manufacturing jobs do.

Which of the following statements about process variation is/are correct? Multiple select question. Structural variation in demand is caused by predictable trends or seasonality in data. Variety in goods and services increases the variation in production or service requirements. Assignable variation cannot be influenced by a company, as defects, breakdowns, or mistakes always occur. Random variation is controllable by the company. Random variation is present in any process and cannot be predicted.

- Structural variation in demand is caused by predictable trends or seasonality in data. - Variety in goods and services increases the variation in production or service requirements. - Random variation is present in any process and cannot be predicted.

In the context of decision-making by the operations manager, which of the following are part of the design of the system? Multiple select question. - The acquisition of equipment - The management of personnel - The geographic location of facilities - Quality assurance

- The acquisition of equipment - The geographic location of facilities

Which of the following statements is/are correct regarding craft production? Multiple select question. - The Industrial Revolution was a natural extension of craft production. - The craft production process was slow and expensive because of the lack of standardized parts. - Skilled craftsmen were able to create goods to exact customer specifications.

- The craft production process was slow and expensive because of the lack of standardized parts. - Skilled craftsmen were able to create goods to exact customer specifications.

Which among the following is/are correct statements about the role of an operations manager? Multiple select question. - The operations manager decides on product placement and location. - The operations manager does not decide when resources will be needed. This is a strategic decision taken by upper management. - The operations manager may work with the finance department to determine the necessary amount of funding for resource expansion. - The operations manager must decide when certain resources will be needed and in what quantity. - The operations manager must decide what resources will be needed.

- The operations manager may work with the finance department to determine the necessary amount of funding for resource expansion. - The operations manager must decide when certain resources will be needed and in what quantity. - The operations manager must decide what resources will be needed.

Which of the following is/are advantages of using models as decision making tools? Multiple select question. - The process of modeling makes users organize information and think about the system, which can clarify (additional) problems. - It is complex and expensive to build a useful and comprehensive model. - Experiments on models tend to be cheaper than dealing with the actual system. - Models are inconsistent, however, they provide a standardized format for analyzing problems.

- The process of modeling makes users organize information and think about the system, which can clarify (additional) problems. - Experiments on models tend to be cheaper than dealing with the actual system.

Which of the following is/are advantages of using models as decision making tools? Multiple select question. - Good models are difficult, slow, and expensive to build. - There is usually less risk associated with experimenting with models than with the real system. - Models can provide a consistent way of evaluating a system. - Models always make it harder to understand the system.

- There is usually less risk associated with experimenting with models than with the real system. - Models can provide a consistent way of evaluating a system.

Which of the following statements is/are true of the role of operations in a business? Multiple select question. - They secure financial resources for projects. - They assess customer needs. - They produce goods and/or services. - They take place in every business organization.

- They produce goods and/or services. - They take place in every business organization.

Which of the following is/are possible outcomes of mismatched capacity and demand? Multiple select question. - Too much capacity is wasteful. - Too little capacity is good because it is an opportunity for growth. - Too little capacity is beneficial because customers will not have to wait long for service. - Too little capacity can result in lost revenue. - Too much capacity can be very costly.

- Too much capacity is wasteful. - Too little capacity can result in lost revenue. - Too much capacity can be very costly.

Which of the following is/are correct statements about the limitations of using (mathematical) models as decision making tools? Multiple select question. - Too much emphasis may be placed on quantitative information. - Only experts can build and use a model. - The average user may not understand the details of a model. - The models may be applied incorrectly.

- Too much emphasis may be placed on quantitative information. - The average user may not understand the details of a model. - The models may be applied incorrectly.

Which of the following is/are true about the impact of variation on managing processes? Multiple select question. - Variability in inputs can lead to problems with product quality. - Variability in demand can make process planning difficult. - Constant demand results in higher costs and more disruptions.

- Variability in inputs can lead to problems with product quality. - Variability in demand can make process planning difficult.

Which among the following is/are the types of decisions an operations manager must make? Multiple select question. - What price should we charge for our products or services? - How will we procure funding for the resources? - Where will resources be needed? - How many resources will be needed? - When will we need certain resources? - What resources will be needed?

- Where will resources be needed? - How many resources will be needed? - When will we need certain resources? - What resources will be needed?

Which of the following statement(s) is/are true? Multiple select question. - World War II furthered the field of Operations Management because of the great need for manufactured products. - During World War II, specialists from a variety of fields gathered to aid in solving military and manufacturing problems. - World War I spurred the development of computers, which facilitated the use of quantitative techniques. - World War II generated many advances in both the military and in manufacturing.

- World War II furthered the field of Operations Management because of the great need for manufactured products. - During World War II, specialists from a variety of fields gathered to aid in solving military and manufacturing problems. - World War II generated many advances in both the military and in manufacturing.

Place the stages of evolution of Operations Management in chronological order, with the oldest one listed first. - Human Relations Movement - Decision Models - Industrial Revolution - Scientific Management

1. Industrial Revolution 2. Scientific Management 3. Human Relations Movement 4. Decision Models

Which of the following statements is true? Multiple choice question. - A manager should focus on issues or items that will have the most impact. - The Pareto phenomenon states that all issues or items will be of equal importance. - Managers should first deal with issues or items that will take the least amount of time to resolve.

A manager should focus on issues or items that will have the most impact.

HR

Concerned with recruitment and training of personnel, labor relations, contract negotiations, wage and salary administration, assisting in manpower projections, and ensuring the health and safety of employees.

Industrial Engineering

Concerned with scheduling, performance standards, work methods, quality control, and material handling.

Which of the following is true according to the Pareto phenomenon? Multiple choice question. - All tasks require same amount of attention, and if addressed, they have the same impact. - In the long run, every issue associated with manufacturing is equally important. - Managers must avoid directing their efforts to specific issues and focus on the bigger picture. - Dealing with certain factors can have disproportionately large impact on the results achieved.

Dealing with certain factors can have disproportionately large impact on the results achieved.

Which of the following is/are NOT part of the role of marketing for a business? Multiple choice question. - Designing new products to drive demand - Promoting the organization's goods or services - Assessing consumer wants and needs

Designing new products to drive demand

MIS

Designing systems to capture relevant information and designing reports.

Identify a likely outcome if the manufacturing capacity is too little. Multiple choice question. - Failure to satisfy customers - Extra revenue because of reduced expenses - Increased profits because of cost-saving - A wastage of resources

Failure to satisfy customers

True or false: Production of goods results in intangible products

False

What are the three basic functional areas of business? Multiple choice question. - Marketing, accounting, IT - Accounting, operations, IT - Finance, marketing, IT - Finance, marketing, operations - Marketing, accounting, operations - Finance, marketing, accounting

Finance, marketing, operations

Which of the following primary factors are important both in managing products and managing services? Multiple select question. Process management Managing patents Managing suppliers Forecasting Managing variation Capacity planning

Forecasting Process management Managing variation Managing suppliers Capacity planning

Purchasing

Has responsibility for procurement of materials, supplies, and equipment.

Which of the following is NOT one of the three basic functional areas of business? Multiple select question. Marketing Finance Human resources Operations IT

Human resources IT

Which of the following are inputs involved in operations function? Multiple select question. Information Land Goods Capital

Information Land Capital

Which of the following statements is correct? Multiple choice question. - Interchangeable parts increased efficiency and reduced costs by simplifying production processes. - Interchangeable parts decreased production time but increased the risk associated with over relying on the suppliers of these parts. - Standardized parts increased the competition among business rivals because they were all using the same parts and suppliers.

Interchangeable parts increased efficiency and reduced costs by simplifying production processes.

Distribution

Involves the shipping of goods to warehouses, retail outlets, or final customers.

How does division of labor affect production? Multiple choice question. - It breaks operations into series of small tasks, which can be accomplished by low-skill workers. - It allows a single skilled worker to complete all tasks required for production. - It allows workers to specialize in particular tasks, increasing their skill levels.

It breaks operations into series of small tasks, which can be accomplished by low-skill workers.

Which of the following statements is true about production of goods? Multiple choice question. - "Goods" must be positive items. - Production of goods takes place in a factory. - It results in a tangible output. - It cannot involve a service in conjunction with the good.

It results in a tangible output.

Which of the following statements is correct about scientific management? Multiple choice question. - It makes employees responsible for finding the most efficient ways to do their jobs. - It is used largely in companies that operate in the sciences. - It uses "scientific methods" like observation and analysis to improve business operations.

It uses "scientific methods" like observation and analysis to improve business operations.

What are the definite benefits for students who join one or more professional organizations? (Check all that apply.) Multiple select question. Learn about jobs in the field Job networking Earn certifications Get free software

Learn about jobs in the field Job networking Earn certifications

Which statement about the functional areas in business organizations is correct? Multiple choice question. - There are many common activities across the three primary functional areas. - A successful organization limits the knowledge that personnel in one primary function have about activities in another primary function. - Many of the decisions in one functional area impact other areas.

Many of the decisions in one functional area impact other areas.

Which of the following is/are NOT functions or components of a supply chain? Multiple choice question. Purchasing Production Forecasting Marketing Inventory management Delivery Scheduling

Marketing Reason: Marketing does not factor directly into the supply chain. It plays a role in forecasting and possibly the distribution/delivery.

___ ___ involves the production of large volumes of standardized goods by low-skilled or semiskilled workers using highly-specialized equipment.

Mass Production

A formula is an example of which classification of model? Multiple choice question. Schematic models Mathematical models Physical models

Mathematical models

Legal

Must be consulted on contracts with employees, customers, suppliers, and transporters, as well as on liability and environmental issues.

Service jobs such as stock market analyst, product manager, and public accountant are most closely related to which line function in an organization? Multiple choice question. Operations Finance IT Sales

Operations

___ management can influence the entire organization.

Operations

Evaluation of alternative investments in plant and equipment requires inputs from who? Multiple select question. Operations Finance HR Marketing

Operations Finance

What are the two line functions in a business organization? Multiple select question. Accounting Operations Sales Human resource management Marketing

Operations Sales

Which of the following is correct regarding the scope of operations management? Multiple choice question. - Operations management affects the entire organization. - Operations management may interact with finance and accounting, but it does not deal with any other functional areas. - Operations management's role is in the day-to-day operations of a business. Operations management is not involved in higher-level decision making.

Operations management affects the entire organization.

A scale-model building is an example of which classification of model? Multiple choice question. Physical models Schematic models Mathematical models

Physical models

______ approaches to decision making in operations management have been accepted because of calculators and computers capable of handling the required calculations. Multiple choice question. Quantitative Comprehensive Qualitative Subjective

Quantitative

Which of the following statements is correct? Multiple choice question. - Quantitative approaches to problem solving are used to reduce the ambiguity of the decision making process by ignoring qualitative information. - Quantitative approaches to problem solving are concerned with assigning costs to everything. - Quantitative approaches to problem solving frequently try to find mathematical optimal solutions to business problems.

Quantitative approaches to problem solving frequently try to find mathematical optimal solutions to business problems.

Process Technology

Refers to methods, procedures, and equipment used to produce goods and provide services.

Product and Service Technology

Refers to the discovery and development of new products and services.

Information Technology

Refers to the science and use of computers and other electronic equipment to store, process, and send information.

PR

Responsible for building and maintaining a positive public image of the organization.

Maintenance

Responsible for general upkeep and repair of equipment, buildings and grounds, heating and air-conditioning; removing toxic wastes; parking; and perhaps security.

Which of the following is/are functions or components of a supply chain? Multiple select question. Scheduling Delivery Purchasing Production Inventory management Forecasting Marketing

Scheduling Delivery Purchasing Production Inventory management Forecasting

Which of the following statements is true about delivery of services? Multiple choice question. - Services are intangibles, implying acts that create value. - Delivery of services generally involves a low degree of customer contact. - Services are performed by human beings, not machines.

Services are intangibles, implying acts that create value.

Accounting

Supplies information to management on costs of labor, materials, and overhead, and may provide reports on items such as scrap, downtime, and inventories.

Which of the following statements is correct about the roots of Operations Management in today's factory system? Multiple choice question. - The advent of computers enabled Operations Management to gain the more widespread use it enjoys today. - The Industrial Revolution brought Operations Management into common practice among management. - Scientific Management is another name for Operations Management.

The Industrial Revolution brought Operations Management into common practice among management.

Which of the following is the definition of the operations function? Multiple choice question. - The process of storing the raw material needed for any operation. - The creation of goods and/or services through the transformation of inputs into outputs. - The analysis of the processes involved in transforming inputs into outputs.

The creation of goods and/or services through the transformation of inputs into outputs. Reason: Storage of materials is part of inventory management, which is included in operations, but the key function of operations is transformation of inputs into outputs.

The Japanese can be credited with spawning what? Multiple choice question. Statistical quality control The quality revolution Six Sigma

The quality revolution

Which of the following statements captures the definition of a supply chain? Multiple choice question. - The sequence of organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or service. - The sequence of suppliers and warehouses that are involved in producing and delivering a product or service. - The sequence of suppliers that are involved in producing and delivering a product or service. - The sequence of storage and transportation that are involved in producing and delivering a product or service.

The sequence of organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or service.

Which of the following is the primary function of an operations manager? Multiple choice question. - To guide the system by decision making. - To assist higher-level managers in making strategic decisions. - To forecast product demand.

To guide the system by decision making.

True or false: A company's supply chain consists of the sequence of organizations, including their facilities, functions, and activities, that are involved in producing and delivering a good or service.

True

True or false: Most systems involve a blend of goods and services.

True

True or false: Services provide customers with intangible value while goods result in a tangible output.

True

For a nonprofit organization, what is the value of its outputs? Multiple choice question. Profits Cost to deliver What customers will pay Value to society

Value to society

For a for-profit organization, what is the value of its outputs? Multiple choice question. Value to society Profits What customers will pay Cost to deliver

What customers will pay

A model is an ___ of reality, a ___ representation of

abstraction; simplified

Conflicting technologies and discontinued support for older technologies are ______. Multiple choice question. - avoidable risks in managing technological advances - reasons to avoid technological advances - drawbacks in managing technological advances

drawbacks in managing technological advances

Of the basic functions of a business organization, _____ is responsible for budgeting, analyzing investment proposals, and providing funds for operations. Multiple choice question. finance operations supply chain marketing

finance

Complete the following statement: A systems approach to decision making: Multiple choice question. - states that the individual parts are greater than the sum. - does not require interrelationships among subsystems. - gives precedence to the objectives of the organization as a whole over those of a subsystem.

gives precedence to the objectives of the organization as a whole over those of a subsystem.

As an example of a trade-off decision faced by an operations manager, an increased warranty period on a car will lead to a(n) ___ customer satisfaction and an increase in costs to the company.

increase

As an example of a trade-off decision faced by an operations manager, more options for customization of a laptop will lead to a(n) ___ level of customer satisfaction and an increase in costs to the company.

increased

Departments such as Legal, Public Relations, and Human Resources Blank______ operations. Multiple choice question. interact with are subordinate to are managed by report to

interact with

Lean systems use much ______ of certain resources than conventional systems. The quality in lean systems tends to be _____ in traditional mass manufacturing environments. Multiple choice question. - more; much worse than - less; much better than - less; slightly worse than - more: almost the same as

less; much better than

Increased customization in products and services generally requires _____ resources and effort. Multiple choice question. advanced more less limited

more

A ___ is an action or series of actions that transform inputs into outputs.

process

True or false: A process consists of a series of actions that transform inputs into outputs.

true

Compared to craft production, division of labor allowed employers to employ ______ workers. Multiple choice question. highly skilled older younger unskilled

unskilled