OPER 3600 Exam #1
CH 1: T/F All organizations, including service firms such as banks and hospitals, have a production function.
TRUE
CH 1: T/F Although the number of people employed in manufacturing in the United States has decreased since 1950, each person is now producing almost 20 times more than in 1950.
TRUE
CH 1: T/F An example of a "hidden" production function is the transfer of funds between accounts at a bank.
TRUE
CH 1: T/F Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.
TRUE
CH 1: T/F Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements.
TRUE
CH 1: T/F The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function.
TRUE
CH 2: T/F Boeing's development of the 787 Dreamliner is an example of a company obtaining a competitive advantage through product differentiation/innovation.
TRUE
CH 2: T/F Experience differentiation is an extension of product differentiation, accomplished by using people's five senses to create an experience rather than simply providing a service.
TRUE
CH 2: T/F NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United States.
TRUE
CH 2: T/F One reason for global operations is to gain improvements in the supply chain.
TRUE
CH 2: T/F One reason to globalize is to learn to improve operations
TRUE
CH 2: T/F Production processes are being dispersed to take advantage of national differences in labor costs.
TRUE
CH 2: T/F The World Trade Organization has helped to significantly reduce tariffs around the world.
TRUE
CH 2: T/F The World Trade Organization helps provide governments and industries around the world with protection from firms that engage in unethical conduct.
TRUE
CH 2: T/F To attract and retain global talent, and to expand a product's life cycle, are both reasons to globalize.
TRUE
CH 3: T/F One phase of a large project is scheduling.
TRUE
CH 1: Which of the following influences layout design? A) inventory requirements B) capacity needs C) personnel levels D) technology E) All of the above influence layout decisions.
E) All of the above influence layout decisions.
Ch 3: A combination of effective Gantt chart use and other tactics allowed Delta to cut the average time for a plane layover by what % of the original 60 minute duration? A) 33%, to 40 minutes B) 50%, to 30 minutes C) 20%, to 48 minutes D) 25%, to 45 minutes E) 40%, to 36 minutes
A) 33%, to 40 minutes
CH 2: 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 do. B) A firm offers more reliable products than its competitors do. C) A firm's products are introduced into the market faster than its competitors' products are. D) A firm's research and development department generates many ideas for new products. E) A firm advertises more than its competitors do.
A) A firm produces its product with less raw material waste than its competitors do.
Ch 3: Match the following steps in Microsoft's development of Windows 8 to their respective WBS level. Step Level Develop Windows 8 Operating System ? System Testing ? Compatible with Windows 7 ? Develop GUI's ? Module Testing ? A) Level 1, Level 2, Level 4, Level 3, Level 3 B) Level 1, Level 2, Level 3, Level 4, Level 5 C) Level 0, Level 1, Level 2, Level 3, Level 4 D) Level 0, Level 2, Level 2, Level 3, Level 3 E) Level 5, Level 3, Level 4, Level 1, Level 2
A) Level 1, Level 2, Level 4, Level 3, Level 3
CH 1: Which is NOT true regarding 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. D) Services tend to have higher customer interaction than goods. E) None, i.e., all of the above are true.
A) Tangible goods are generally produced and consumed simultaneously; services are not.
Ch 3: 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 expected time estimate is calculated as t = (a + 4m + b). D) The pessimistic time estimate is an estimate of the minimum time an activity will require. E) The 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.
CH 1: Which of the following would NOT be an operations function in a commercial bank? A) auditing B) teller scheduling C) maintenance D) collection E) check clearing
A) auditing
CH 1: Which of the following tasks within an airline company are related to operations? A) crew scheduling B) international monetary exchange C) sales D) advertising E) accounts payable
A) crew scheduling
CH 2: The term maquiladora is most synonymous with: A) free trade zones in Mexico. 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) tax breaks provided by some South American countries to other South American countries.
A) free trade zones in Mexico.
Ch 3: 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.
Ch 3: 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 most helpful for ongoing projects with no termination date. E) is most helpful when the work contains simple and unrelated tasks.
A) is effective for companies with multiple large projects.
Ch 3: 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.
Ch 3: 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 United States E) All of the above are true.
B) Bechtel is the world's premier manager of massive construction and engineering projects.
Ch 3: 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
Ch 3: A simple CPM network has five activities, A, B, C, D, and E. A is an immediate predecessor of C and of D. B is also an immediate predecessor of C and of D. C and D are both immediate predecessors of E. Which of the following statements is true? A) There are two paths in this network. B) There are four paths in this network. C) There are five paths in this network. D) There are 25 paths in this network. E) There are six paths in this network.
B) There are four paths in this network.
CH 2: Which of the following is true of maquiladoras? A) They discourage foreign businesses from outsourcing. B) They assess tariffs only on the value-added work done. C) They originated in China. D) None of the above E) All of the above
B) They assess tariffs only on the value-added work done.
CH 2: 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
The 10 decision of OM: CH 2: A) are fuctional areas of the firm B) apply to both service and manufacturing organizations C) are the goals that are to be achieved D) form an action plan to achieve a mission E) are key success factors
B) apply to both service and manufacturing organizations
CH 1: Which productivity variable has the greatest potential to increase productivity? A) labor B) globalization C) management D) capital E) energy
B) globalization
CH 2: 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) attempts to make the service experience different for every single customer.
B) is an extension of product differentiation in the service sector.
CH 1: 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.
CH 2: With reference to cultural and ethical issues, the World Trade Organization has: A) eliminated bribery. 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.
Ch 3: A project organization that becomes permanent is often referred to as a: A) fixed project organization. B) matrix organization. C) normal organization. D) standard organization. E) permanent project organization.
B) matrix organization.
CH 2: A firm can effectively use its operations function to yield competitive advantage through 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) maintaining a variety of product options.
B) setting equipment utilization goals below the industry average.
Ch 3: 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.
Ch 3: 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.
Ch 3: Which of the following projects were completed by Bechtel? A) Hoover Dam B) Boston Central Artery/Tunnel C) Rebuilding Kuwait after Iraq's invasion in 1990 D) Rebuilding Iraq after the U.S. invasion, starting in 2003 E) All of the above were Bechtel projects
E) All of the above were Bechtel projects
CH 2: 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 do. B) A firm offers more reliable products than its competitors do. C) A firm's products are introduced into the market faster than its competitors' products. D) A firm utilizes its capacity more effectively than its competitors do. E) A firm advertises more than its competitors do.
C) A firm's products are introduced into the market faster than its competitors' products.
Ch 3: 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.
Ch 3: The project organization works best when which of the following conditions are satisfied? I. Work tasks can be defined with a specific goal and deadline. II. The job is typical and familiar to the existing organization. III. The work contains interrelated tasks requiring specialized skills. IV. The project is temporary but unimportant to long-term organizational success. V. The project cuts across organizational lines. A) I, II, III, IV, V B) None of the above conditions need to be satisfied. C) I, III, V D) I, II, III, V E) I, III, IV, V
C) I, III, V (work tasks defined with goal and deadline, work contains interrelated tasks, project cuts across organizational lines)
Ch 3: Which of the following statements regarding PERT times is true? A) The 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 expected time estimate is calculated as t = (a + 4m + b)/6. D) The pessimistic time estimate is an estimate of the minimum time an activity will require. E) The most likely time estimate is an estimate of the maximum time an activity will require.
C) The expected time estimate is calculated as t = (a + 4m + b)/6.
CH 2: Which of the following did the authors NOT suggest as a reason for globalizing operations? A) reduce costs B) improve the supply chain C) pursue stockholder approval ratings D) understand markets E) attract and retain global talent
C) pursue stockholder approval ratings
CH 2: Which of the following does NOT represent a valid reason for globalizing operations? A) reduce costs B) improve the supply chain C) reduce responsiveness D) attract and retain global talent E) understand markets
C) reduce responsiveness
CH 1: 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 customer's wants and needs
CH 2: 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.
CH 1: 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 goods. C) Services tend to have a more inconsistent product definition than goods. D) Goods tend to have higher customer interaction than services. E) Reselling is unusual in services; goods often have some residual value.
D) Goods tend to have higher customer interaction than services.
CH 1: Which of the following are among the 10 strategic operations management decisions? I. design of goods and services II. managing quality III. layout strategy IV. marketing V. pricing of goods and services A) I, II, V B) I, II, IV C) II, III, V D) I, II, III E) All of the above
D) I, II, III (design of goods and services, managing quality, layout strategy)
CH 1: 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
CH 2: 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.
CH 2: Which of the following is LEAST likely to be a low-cost leadership competitive advantage? A) low overhead B) effective capacity use C) inventory management D) broad product line E) mass production
D) broad product line
Ch 3: Which of the following is NOT one of the phases of project management? A) planning B) scheduling C) controlling D) budgeting E) All of the above are project management phases.
D) budgeting
CH 2: 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) exclusive use of the Euro.
D) converting factories, garages, and theaters into retail outlets.
CH 1: 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 product or services
CH 2: 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.
CH 1: Which of the following are the primary functions of all organizations? A) production/operations, marketing, and human resources B) marketing, human resources, and finance/accounting C) sales, quality control, and production/operations D) marketing, production/operations, and finance/accounting E) research and development, finance/accounting, and purchasing
D) marketing, production/operations, and finance/accounting
CH 1: Which of the following is NOT one of the 10 strategic operations management decisions? A) layout strategy B) maintenance C) process and capacity design D) mass customization E) supply chain management
D) mass customization
CH 2: The purpose of NAFTA is 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 North America and South America. D) phase out all trade and tariff barriers between the United States, Canada, and Mexico. E) provide fair and equitable tariff rates for trade between the United States, Canada, and Mexico.
D) phase out all trade and tariff barriers between the United States, Canada, and Mexico.
CH 1: What are the five elements in the management process? A) plan, direct, update, lead, and supervise B) accounting, finance, marketing, operations, and management C) organize, plan, control, staff, and manage D) plan, organize, staff, lead, and control E) plan, lead, organize, manage, and control
D) plan, organize, staff, lead, and control
CH 1: Operations management is applicable: A) mostly to the service sector. B) to services exclusively. C) mostly to the manufacturing sector. D) to all firms, whether manufacturing or service. E) to the manufacturing sector exclusively.
D) to all firms, whether manufacturing or service
Ch 3: WBS stands for which of the following project management tools? A) work break schedule B) work breakdown status C) work breakdown schedule D) work breakdown structure E) work break status
D) work breakdown structure
CH 1: At Hard Rock Café, tasks that reflect operations or operations management include: A) designing efficient layouts. B) providing meals. C) receiving ingredients. D) preparing effective employee schedules. E) All of the above
E) All of the above
CH 2: 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 of the above are elements of experience differentiation.
E) All of the above are elements of experience differentiation.
CH 2: 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.
Ch 3: The difference between AON and AOA networks is that: A) AOA networks sometimes require dummy activities. B) nodes consume no resources or time in AOA networks. C) both are acceptable in practice; however, Microsoft Project uses AON. D) nodes designate activities in AON, while arrows designate activities in AOA. E) All of the above are true.
E) All of the above are true.
Ch 3: 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.
Ch 3: The main difference between PERT and CPM is that: A) PERT is more accurate than CPM. B) PERT assumes that activity durations are known. C) PERT ignores activity costs. D) CPM assumes activity durations can vary. E) PERT employs three time estimates for each activity.
E) PERT employs three time estimates for each activity.
CH 1: 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
CH 1: Reasons to study operations management include learning about: A) how people organize themselves for productive enterprise. B) how goods and services are produced. C) what operations managers do. D) a costly part of the enterprise. E) all of the above.
E) all of the above
CH 1: The 10 strategic operations management decisions include: A) layout strategy. B) maintenance. C) process and capacity design. D) managing quality. E) all of the above.
E) all of the above
CH 2: Which of the following represents a reason for globalizing operations? A) to improve 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
E) all of the above
CH 2: Cost cutting in international operations can take place because of: A) lower taxes and tariffs. B) lower wage scales. C) lower indirect costs. D) less stringent regulations. E) all of the above.
E) all of the above.
CH 2: Multinational organizations can shop from country to country and cut costs through: A) lower wage scales. B) lower indirect costs. C) less stringent regulations. D) lower taxes and tariffs. E) all of the above.
E) all of the above.
Ch 3: Ethical issues that may arise in projects large and small include: A) gifts from contractors. B) exaggerated expense reports. C) compromised quality standards to meet bonuses or avoid penalties related to schedules. D) pressure to mask delays with false status reports. E) all of the above.
E) all of the above.
CH 2: The ability of an organization to produce goods or services that have some uniqueness in their characteristics is: A) mass production. B) time-based competition. C) competing on productivity. D) competing on quality. E) competing on differentiation.
E) competing on differentiation.
CH 2: The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is: A) sensory response. B) time-based competition. C) differentiation. D) flexible response. E) experience differentiation.
E) experience differentiation.
Ch 3: 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
CH 1: T/F "Considers inventory ordering and holding decisions" is within the strategic operations management decision area of managing quality.
FALSE
CH 1: T/F Because Hard Rock Cafés are themed restaurants, operations managers focus their layout design efforts on attractiveness while paying little attention to efficiency.
FALSE
CH 1: T/F Manufacturing now constitutes the largest economic sector in postindustrial societies.
FALSE
CH 2: T/F A product will always be in the same stage of its product life cycle regardless of the country.
FALSE
CH 2: T/F Low-cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value.
FALSE
CH 2: T/F NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia
FALSE
Ch 3: T/F A project organization works best for an organization when the project resides in only one of its functional areas.
FALSE
Ch 3: T/F PERT, but not CPM, has the ability to consider the precedence relationships in a project.
FALSE
Ch 3: T/F The PERT pessimistic time estimate is an estimate of the minimum time an activity will require.
FALSE
Ch 3: T/F The fundamental difference between PERT and CPM is that PERT uses the beta distribution for crashing projects while CPM uses cost estimates.
FALSE
Ch 3: T/F The shortest of all paths through the network is the critical path.
FALSE
Ch 3: T/F The standard deviation of project duration is the average of the standard deviation of all activities on the critical path.
FALSE
Ch 3: T/F Work breakdown structure is a useful tool in project management because it addresses the timing of individual work elements.
FALSE
Ch 3: T/F Ethical issues that can arise in projects include gifts from contractors, pressure to mask delays with false status reports, and pressure to compromise project quality to meet bonuses or avoid penalties related to schedules.
TRUE
Ch 3: T/F Gantt charts give a timeline for each of a project's activities, but they do not adequately illustrate the interrelationships between the activities and the resources.
TRUE
Ch 3: T/F In PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time.
TRUE
Ch 3: T/F One responsibility of a project manager is to make sure that the project meets its quality goals.
TRUE
Ch 3: T/F Project managers have their own code of ethics, established by the Project Management Institute.
TRUE
