Supply Chain exam 1 ch 1,2

True

An example of a strategic operations management decision is the choice of where to locate.

True

An example of a tactical operations management decision is determining employment levels

True

An example of an operational operations management decision is inventory level management.

C Manufacturing and service operations both use forecasting and capacity planning to match supply and demand.

Which is not an area of significant difference between manufacturing and service operations? a) uniformity of input b) customer contact c) forecasting demand d) labor content of jobs e) measurement of productivity

D Mass production has played a prominent role in increasing standards of living.

Which of the following is a system in which low-skilled workers use specialized equipment to produce high volumes of standardized goods? a) craft production b) lean systems c) supply chain d) mass production e) the Internet

D

Which of the following is least likely to affect the cost an organization incurs in producing its products or services? a) inventory management b) quality c) location d) price e) productivity

A

Which of the following is not a characteristic of service operations? a) easy measurement of productivity b) low uniformity of input c) high labor content d) high customer contact e) intangible output

B

Which of the following is not among the chief reasons organizations fail? a) overemphasis on product (or service) design b) emphasizing labor productivity in labor-intensive environments c) overemphasis on short-term financial performance d) poor internal communications e) not investing in capital and human resources

A

Which of the following refers to service and production processes that use resources in ways that do not harm ecological systems? a) sustainability b) marketability c) supportability d) perishability e) transportability

E

Marketing depends on operations for information regarding: a) budgeting. b) cash flow. c) productivity. d) corporate intelligence. e) lead time.

C

Productivity is expressed as: a) input divided by output. b) output minus input. c) output divided by input. d) output times input. e) output plus input.

True Service operations tend to be more labor intensive than manufacturing.

Service often requires relatively greater labor content when compared to manufacturing.

False Service operations cannot use inventory as a hedge against unpredictable demand.

Service operations require additional inventory because of the unpredictability of consumer demand.

True

Tracking productivity measures over time enables managers to judge organizational performance and decide where improvements are needed.

A

Which of the following would be least important in the pursuit of a time-based strategy? a) cost minimization b) operational agility c) flexible technology d) reduced complaint resolution times e) quick changeover times

C

Which of these factors would be least likely to affect productivity? a) methods and technology b) workers c) advertising d) product mix e) management

C

in an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per five-day week. What is the labor productivity of this operation? a) 20 chairs/worker/day b) 75 chairs/worker/day c) 15 chairs/worker/day d) 90 chairs/worker/day e) 60 chairs/worker/day

True

A characteristic that was once an order winner may become an order qualifier.

E Outsourcing is increasingly a part of operations management and is contributing to the increased attention on supply chain management.

Buying goods or services instead of producing or providing them in-house is called: a) vertical integration. b) downsizing. c) entrepreneurship. d) internationalization. e) outsourcing.

True

Environmental scanning is a search for events or trends that present either threats or opportunities to the organization.

False There are very few pure goods or pure services, so most companies sell product packages which combine goods and services. Therefore, most production systems involve a blend of goods and services.

Goods-producing organizations are not involved in service activities.

A

Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each eight-hour shift. If the production is increased to 1,200 pretzels each shift, then productivity will have increased by: a) 50 percent. b) 67 percent. c) 25 percent. d) 33 percent.

A Agility refers to the ability of an organization to respond quickly to demands or opportunities.

If one organization is better able than most to respond to changes in demands or opportunities, we say that organization exhibits higher: a) agility. b) marketability. c) efficiency. d) productivity. e) sustainability.

False

If people would only work harder, productivity would increase.

D

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management. a) downsizing; total quality b) optimizing; inventory c)internationalization; intercultural d) outsourcing; supply chain e) offshoring; lean

False Operation managers are not responsible for promoting goods/services. It is the marketing functional area that is responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services.

Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services.

True Operations management requires a blend of knowledge and people skills.

People who work in the field of operations should have skills that include both knowledge and people skills.

C

Product design and choice of location are examples of _______ decisions. a) customer-focused b) operational c) strategic d) design e) tactical

B Skilled workers are necessary to accommodate the variation inherent in customized outputs.

Production systems with customized outputs typically have relatively: a) fast work movement. b) skilled workers. c) low unit costs. d) high amounts of specialized equipment. e) high volumes of output.

E

Productivity growth can be calculated by: a) inputs divided by the outputs. b) outputs divided by the inputs. c) input plus output divided by two. d) outputs minus inputs. e) (current productivity - previous productivity) x 100 / (previous productivity)

True

Productivity is defined as the ratio of output to input.

True

Productivity is directly related to the ability of an organization to compete.

True

Standardization has the advantage of reducing variability.

A

Suppose a country's productivity last year was 84. If this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be: a) 88.2. b) 4.2. c) 82.8. d) 79.8. e) 78.9.

B

The Balanced Scorecard is a useful tool for helping managers translate their strategy into action in the following areas: a) Customization; Standardization; Efficiency; Effectiveness b) Customers; Financial; Internal Business Processes; Learning and Growth c) Strategy; Tactics; Productivity; Profitability d) The Environment; The Community; Suppliers; Other Stakeholders e) Sustainability; Flexibility; Efficiency; Technology

A

The external elements of SWOT analysis are: a) opportunities and threats. b) weaknesses and opportunities. c) strengths and opportunities. d) strengths and weaknesses. e) strengths and threats.

C Pareto phenomena direct our attention to the difference between the "important few" and the "trivial many."

The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the: a) Adam Smith phenomenon. b) Tellier phenomenon. c) Pareto phenomenon. d) Stevenson phenomenon. e) Irwin phenomenon.

B

The fundamental purpose for the existence of any organization is described by its: a)bylaws. b) mission statement. c) procedures. d) policies. e) corporate charter.

True Greater customer involvement leads greater variation in the goods and services provided. This creates greater variation in production or service requirements and results in more complexity in the design and management of operations.

The greater the degree of customer involvement, the more challenging the design and management of operations.

True

The hierarchy and sequence of planning and decision making is: mission, organizational strategy, tactics, and operational decisions.

E

Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage. Now, all firms must offer this capability simply to be in this line of business. This is an example of ______________ becoming ____________ over time. a) order qualifiers; order winners b) tactical implications; strategic c) profitability factors; productivity factors d) strategic implications; tactical e) order winners; order qualifiers