The "father" of scientific management is

Your Answer: Eli Whitney.

Correct Answer: Frederick W. Taylor.

INCORRECT. Whitney
pioneered use of
replaceable parts.

2. The three major

business functions
necessary to all
organizations are

Your marketing,
Answer: finance/accou
nting,
production/op
erations.

CORRECT.

3. Which of these
is NOT one of the basic
functions of the
management process.

Your Answer: Controlli

ng

Correct Inspecti
Answer: ng

INCORRECT. Controlling
is an important
managerial function.

4. Which of these
statements accurately
captures a current trend
in operations?

Your Answer: Products

and
 services
are
designed
more
quickly
and by
teams.

CORRECT.

5. The service sector

constitutes what
percentage of
employment in the
United States?

Your Answer: Betwee

n 55%
and
65%

Correct Betwee
Answer: n 75%
and
85%

INCORRECT. This is too

low.

6. Productivity increases
when

Your inputs and

Answer: outputs
increase
proportion
ately.

Correct inputs
Answer: decrease
while
outputs
remain the
same.

INCORRECT. In this
case, productivity
remains the same.
7. The capital investment
each year in the United
States usually

Your Answer: remains

constant
.

Correct increase
Answer: s.

INCORRECT. This is not

the trend.

8. Which appears to
provide the best
opportunity for increases
in productivity?

Your Labor
Answer:
Correct managem
Answer: ent

INCORRECT. Labor can

accomplish little on its
own.

9. The person who

introduced standardized,
interchangeable parts
was

Your Answer: Eli

Whitney.

CORRECT.

10. The person who

developed plant-wide
quality control systems
was
 Your Answer: Henry
Ford.

Correct W.
Answer: Edward
s
Deming
.

INCORRECT. Ford
pioneered use of the
assembly line.

11. 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?

Your Answer: 0.75

claims
per hour

CORRECT.

12. 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?

Your Answer: 1.8

dollar
s per
car

Correct 0.66
Answer: cars
 per
dollar

INCORRECT. Multifactor
productivity is outputs
divided by inputs.

13. When a tangible product

is NOT included in the
service, it is called

Your a
Answer: knowledg
e-based
service.

Correct a pure
Answer: service.

INCORRECT. Knowledge
work is often a pure
service, but this is not
the definition.

14. In the early part of the

21st century, annual
productivity growth in
the U.S. has been
_______ .

Your Answer: 2.5%

CORRECT.

15. Increases in productivity

are difficult to achieve if

Your the task

Answer: is more
intellectu
al and
personal.

CORRECT.
. What are the input resources to any transformation process?

Your Answer: Staff, facilities, materials, information and customers.

2. What do we mean by micro-operations?

Your Answer: The more detailed activities carried out within operations.

Correct Answer: The component transformation processes which together make

up the macro-operation.

No, that's not correct.

3. Disneyland Paris is one of the largest and best known theme parks in Europe. In
terms of the four Vs (volume, variety, variation, visibility) how would you describe
it?

Your Answer: High volume, high variety, low variation, high visibility.

Correct Answer: High volume, low variety, high variation, high visibility.

No, that's not correct.

4. Operations can be classified according to their volume and variety of production as

well as the degree of variation and visibility. Which of the following operations would
be classified as high volume, low variety?

Your Answer: A fast food restaurant

5. Which of the following activities is NOT a direct responsibility of operations

management?

Your Answer: Planning and controlling the operation.

Correct Answer: Determining the exact mix of products and services that
customers will want.

No, that's not correct.

6. The three-stage operations model requires transformation of the input resource into
some form of output. Any one 'resource' can be involved at all three stages. True or
false?

Your Answer: True

7. Which one of the following transformational processes is not associated with the
processing of materials?

Your Answer: Physical properties

Correct Answer: Psychological state

No, that's not correct.

8. Operations typically differ in terms of volume of output, variety of output, variation

in demand or the degree of 'visibility' (i.e. customer contact) that they give to
customers of the production process. Please match the following element with the
most appropriate of the above dimensions. Short waiting tolerance is most closely
matched to:

Your Answer: Variety

Correct Answer: Visibility

No, that's not correct.

9. Low-variety operations do not include:

Your Answer: Mass production of birthday cakes

Correct Answer: A tax consultancy advice service

No, that's not correct.

10 Which of the following functions is NOT a core function of an organisation?

.
Your Answer: The product/service development function

Correct Answer: The accounting and finance function

No, this is a core function.

11 Which of the following is the least likely decision to be made by Operations
Managers?
.
Your Answer: Designing and improving the jobs of the workforce

Correct Answer: Deciding which market areas to manufacture products for

No, that's not correct.

12 Which performance objectives do IKEA focus most on?

.
Your Answer: Flexibility

Correct Answer: Cost

No, that's not correct.

13 What other names may be given to an operations manager?

.
Your Answer: Fleet manager

Correct Answer: All of the above

No, that's not correct.

14 The overall direction and contribution of the operations function with the business
and the way in which market requirements and operations capabilities are reconciled
.
relates to what?

Your Answer: Long-term Forecasting

Correct Answer: Operations Strategy

No, that's not correct.

15 Service processes that are devoted to producing knowledge-based or advice-based

services are called:
.
Your Answer: Professional services
At Hard Rock Café, tasks that reflect operations or operations management
include

a. designing meals
b. testing meals (recipes)
c. analyzing meals for the cost of ingredients
d. preparing employee schedules
e. all of the above
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
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
Which of the following are the primary functions ofall 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
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
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
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
Reasons to study Operations Management include

a. studying why people organize themselves for free enterprise

b. knowing how goods and services are consumed
c. understanding what human resource managers do
d. learning about a costly part of the enterprise
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
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
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%
Which of the following is not an element of the management process?

a. controlling
b. leading
c. planning
d. pricing
e. staffing
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
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.
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
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
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
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
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
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
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
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
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
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
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
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 componentd. There is no such
thing as a pure good
e. None of the above is a true statement
Which of the following statements is true?

a. The person most responsible for initiating use of interchangeable

parts in manufacturing was
Eli Whitney.
Ther service industry makes up approximately what percentage of all jobs in
the United States?
a. 12%
b. 40%
c. 66%
d. 79%
e. 90%
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
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.
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
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
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
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.
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.
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.
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.
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.
A foundry produces circular utility access hatches (manhole covers). If 120
covers are produced in
a 10-hour shift, the productivity of the line is

a. 1.2 covers/hr
b. 2 covers/hr
c. 12 covers/hr
d. 1200 covers/hr
e. none of the above
A foundry produces circular utility access hatches (manhole covers).
Currently, 120 covers are
produced in a 10-hour shift. If labor productivity can be increased by 20%, it
would then be

a. 14.4 covers/hr
b. 24 covers/hr
c. 240 valves/hr
d. 1200 covers/hr
e. none of the above
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. 2 valves/hr
b. 40 valves/hr
c. 80 valves/hr
d. 200 valves/hr
e. 1600 valves/hr
Gibson Valves produces cast bronze valves on an assembly line, currently
producing 1600 valves
each 8-hour shift. If the productivity is increased by 10%, it would then be

a. 180 valves/hr
b. 200 valves/hr
c. 220 valves/hr
d. 880 valves/hr
e. 1760 valves/hr
Gibson Valves produces cast bronze valves on an assembly line, currently
producing 1600 valves
per shift. If the production is increased to 2000 valves per shift, labor
productivity will increase by

a. 10%
b. 20%
c. 25%
d. 40%
e. 50%
The Dulac Box plant produces 500 cypress packing boxes in two 10-hour
shifts. What is the
productivity of the plant?

a. 25 boxes/hr
b. 50 boxes/hr
c. 5000 boxes/hr
d. none of the above
e. not enough data to determine productivity
The Dulac Box plant works two 8-hour shifts each day. In the past, 500
cypress packing boxes
were produced by the end of each day. The use of new technology has
enabled them to increase
productivity by 30%. Productivity is now approximately

a. 32.5 boxes/hr
b. 40.6 boxes/hr
c. 62.5 boxes/hr
d. 81.25 boxes/hr
e. 300 boxes/hr
The Dulac Box plant produces 500 cypress packing boxes in two 10-hour
shifts. Due to higher
demand, they have decided to operate three 8-hour shifts instead. They are
now able to produce
600 boxes per day. What has happened to production?

a. It has increased by 50 sets/shift.

b. It has increased by 37.5 sets/hr.
c. It has increased by 20%.
d. It has decreased by 8.3%
e. It has decreased by 9.1%.
Productivity measurement is complicated by

a. the competition's output

b. the fact that precise units of measure are often unavailable
c. stable quality
d. the workforce size
e. the type of equipment used
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
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
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
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
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
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.
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
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
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
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
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
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
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

<>

1. Exchange Transformation Process

 1. Ex.) A Human Physical Change, seeing the doctor for a

sports injury, using a massage therapist at a spa

2. Ex.) Transportation and Distribution, manufacturer makes a

car in Detroit and sells it in Sioux Falls, using FedEx to send

a birthday present, manufacturers shipping products to

retailers

3. INCORRECT:

4. CORRECT: Ex.) Retail Sales, buying a can of soup at the

supermarket, buying lumber to build a dog house, Walmart's

warehouses store and distribute goods to a local store to

provide convenience and accessibility for local purchasers.

2. Developed HR and Theory X/Y

1. Computer Age Era

2. CORRECT: Douglas McGregor

3. INCORRECT:

4. Taiichi Ohno
3. managing transformation processes. Operations management

transforms INPUTS into Value Added OUTPUTS and continously

improve the process using consumer feedback and performance data.

1. Scientific Management Era

2. Operations Management

3. INCORRECT:

4. CORRECT: Operations management's role is equivalent to:

4. Developed the first "lean" system (aka, the Toyota Production System)

1. Eli Whitney

2. James Watt

3. Adam Smith

4. CORRECT: Taiichi Ohno

5. Developed simple multifactor design of experiments

1. CORRECT: Plackett and Burman

2. Computer Age Era

3. INCORRECT:
 4. W. Edwards Deming

6. Planning, Coordinating, Controlling, Leading

1. Operations Management

2. Scientific Management Era

3. CORRECT: Four Functions of a Manager

4. INCORRECT:

7. Developing new product designs and delivering customer orders more

quickly than competitors.

1. Lean Management (OM Concept)

2. CORRECT: Time-based Competition (OM Concept)

3. Supply Chain Management (OM Concept)

4. INCORRECT:

8. Mid 1900's; developed new quantitative techniques for OM problems,

supported american military in WWII and cold war. Major contributions

include: inventory modeling, linear programming, project mgmt,

forecasting, statistical sampling, and quality control techniques.

1. Computer Age Era

2. Japanese Influence Era

3. CORRECT: Management Science Era

4. Lean Management (OM Concept)

9. Environmental Issues, Global Competition, Internet (e-retailing,

communication), Technological Change

1. The functional areas of a business are:

2. What is at the center of a business?

3. CORRECT: Additional Changes in Focus in the 90's & 2000's

4. Japanese Influence Era

10. Developed the concept of interchangeable parts

1. James Watt

2. Adam Smith

3. CORRECT: Eli Whitney

4. Taiichi Ohno
11. ADD CUSTOMER VALUE to the transformation in order for the

company to make a PROFIT. (A Magic Money Machine)

1. CORRECT: The Goal of the Transformation Process is to:

2. The Challenge for Operations

3. INCORRECT:

4. The functional areas of a business are:

12. 1980's; JIT philosophy and Lean Manufacturing concepts, Total

Quality Management (high quality, low defects), Business Process

Reengineering ('clean sheet' redesign)

1. James Watt

2. Management Science Era

3. CORRECT: Japanese Influence Era

4. Computer Age Era

13. Continually working to reduce costs and eliminate waste while

increasing customer value and profits.

1. CORRECT: Lean Management (OM Concept)

 2. INCORRECT:

3. Flexibility (OM Concept)

4. Management Science Era

14. One of computer's original developers

1. George Dantzig

2. James Watt

3. INCORRECT:

4. CORRECT: Thomas J. Watson

15. Early 1900's; planning became distinct from doing and the

manager's job was to discover physical limits of worker through

measurement, analysis, and observation. (Fredrick Taylor, Frank and

Lillian Gilbreth, Henry Ford)

1. Japanese Influence Era

2. CORRECT: Scientific Management Era

3. INCORRECT:

4. Computer Age Era

16. 1700's; artisans replaced by machines, labor is divided and parts are

standardized. (James Watt, Adam Smith, Eli Whitney)

1. CORRECT: The Industrial Revolution Era

2. Japanese Influence Era

3. INCORRECT:

4. Tactical Decisions

17. Operations has the responsibility to coordinate human capital,

equipment, technology, raw materials, and information to produce a

product or service effectively and efficiently in the quantity demanded,

in the quality required, in a timely manner, at the lowest possible cost,

while eliminating as much waste as possible.

1. Thomas J. Watson

2. Tactical Decisions

3. INCORRECT:

4. CORRECT: The Challenge for Operations

18. Physiological Transformation Process

1. What is at the center of a business?

2. Ex.) Manufacturing, good year converts rubber into tires,

food preparation in a cafeteria

3. Ex.) Retail Sales, buying a can of soup at the supermarket,

buying lumber to build a dog house, Walmart's warehouses

store and distribute goods to a local store to provide

convenience and accessibility for local purchasers.

4. CORRECT: Ex.) A Human Physical Change, seeing the doctor

for a sports injury, using a massage therapist at a spa

19. 1970's; provided tools to support the widespread use of Mgmt

Science techniques (process data quickly and cheaply). Major

contribution: Material Requirements Planning (MRP)

1. CORRECT: Computer Age Era

2. Plackett and Burman

3. INCORRECT:

4. Douglas McGregor

20. Developed concepts of linear programming

1. Eli Whitney

2. Adam Smith

3. INCORRECT:

4. CORRECT: George Dantzig

21. Flexibility, Time-based Competition, Supply Chain Management,

Lean Management

1. The Future of Operations Management

2. Supply Chain Management (OM Concept)

3. Operations Management

4. CORRECT: Four Contemporary Operations Management

Concepts

22. Physical products

Inventories

Lower customer contact

Capital intensive (typically more equip.)

Longer response time (but shortening each year)

1. CORRECT: Characteristics of Manufacturing Operations (transformation

processes)

2. Characteristics of Service Operations (transformation

processes)

3. INCORRECT:

4. Six Types of Tranformation Processes:

23. Establish the BROAD direction of the company and are general in

scope with a LONG-TERM horizon.

1. CORRECT: Strategic Decisions

2. Tactical Decisions

3. INCORRECT:

4. Taiichi Ohno

24. Cooperating with suppliers and customers to reduce overall costs of

the supply chain and increase responsiveness to customers.

1. Lean Management (OM Concept)

2. Time-based Competition (OM Concept)

 3. CORRECT: Supply Chain Management (OM Concept)

4. Scientific Management Era

25. Developed the first steam engine

1. Thomas J. Watson

2. Taiichi Ohno

3. INCORRECT:

4. CORRECT: James Watt

26. pure, pure

1. What is at the center of a business?

2. The Future of Operations Management

3. INCORRECT:

4. CORRECT: Today there are no___ products and no ___

services.

27. Informational Transformation Process

1. CORRECT: Ex.) Sharing and Communicating Information, internet

provides access to information, attending a "how to" seminar or

college class, watching a television documentary

2. INCORRECT:

3. Ex.) Transportation and Distribution, manufacturer makes a

car in Detroit and sells it in Sioux Falls, using FedEx to send

a birthday present, manufacturers shipping products to

retailers

4. The Goal of the Transformation Process is to:

28. human capital, buildings, processes, various technologies, and raw

materials.

1. Outputs in Operations Mgmt include:

2. The Future of Operations Management

3. INCORRECT:

4. CORRECT: Inputs in Operations Mgmt include:

29. Developed experiments for productivity improvement; stop watch

studies including pig iron experiment (rest periods) and shoveling

experiment (worker selection and equipment selection and design)

1. Eli Whitney

2. CORRECT: Frederick W. Taylor

3. INCORRECT:

4. Strategic Decisions

30. Developed the concept of motion economy and work design

1. Adam Smith

2. Plackett and Burman

3. CORRECT: Frank and Lillian Gilbreth

4. Frederick W. Taylor

31. Physical Transformation Process

1. INCORRECT:

2. Characteristics of Manufacturing Operations (transformation

processes)
 3. Ex.) A Human Physical Change, seeing the doctor for a

sports injury, using a massage therapist at a spa

4. CORRECT: Ex.) Manufacturing, good year converts rubber

into tires, food preparation in a cafeteria

32. The business function responsible for planning, coordinating,

controlling, and leading the resources needed to produce a company's

product and/or service.

1. CORRECT: Operations Management

2. The Future of Operations Management

3. INCORRECT:

4. Scientific Management Era

33. The CUSTOMER is ALWAYS the center and the most important focus

of a business, because they have MONEY.

1. CORRECT: What is at the center of a business?

2. The Challenge for Operations

3. INCORRECT:
 4. The functional areas of a business are:

34. the products and services sold.

1. Operations Management

2. CORRECT: Outputs in Operations Mgmt include:

3. The Future of Operations Management

4. Inputs in Operations Mgmt include:

35. Developed concepts of division of labor

1. James Watt

2. Taiichi Ohno

3. INCORRECT:

4. CORRECT: Adam Smith

36. "recievers and sharers" of information whose purpose is to facilitate

the delivery of goods and services in exchange for customers' money.

1. What is at the center of a business?

2. Four Functions of a Manager

3. INCORRECT:
 4. CORRECT: The functional areas of a business are:

37. Developed concepts of quality improvement in both Japan and

America

1. Adam Smith

2. CORRECT: W. Edwards Deming

3. INCORRECT:

4. James Watt

38. Intangible products

Few or no inventories

Higher customer interaction

Labor intensive (typically)

Shorter response time to customer satisfaction

1. CORRECT: Characteristics of Service Operations (transformation

processes)

2. Six Types of Tranformation Processes:

3. INCORRECT:

4. The Goal of the Transformation Process is to:

39. Greater variety of product/service choices on a mass scale (mass

customization)

1. CORRECT: Flexibility (OM Concept)

2. Lean Management (OM Concept)

3. INCORRECT:

4. Frederick W. Taylor

40. Integrated/Cross-Functional Decision Making (ERP, CRM); Lean

Management Systems (Lean Operations, Enterprise - support and staff

function, Extended Enterprise- supply chain)

1. The Challenge for Operations

2. CORRECT: The Future of Operations Management

3. INCORRECT:

4. Inputs in Operations Mgmt include:

41. Locational Tranformation Process

1. Four Contemporary Operations Management Concepts

 2. CORRECT: Ex.) Transportation and Distribution,

manufacturer makes a car in Detroit and sells it in Sioux

Falls, using FedEx to send a birthday present, manufacturers

shipping products to retailers

3. Ex.) Sharing and Communicating Information, internet

provides access to information, attending a "how to"

seminar or college class, watching a television documentary

4. Ex.) Retail Sales, buying a can of soup at the supermarket,

buying lumber to build a dog house, Walmart's warehouses

store and distribute goods to a local store to provide

convenience and accessibility for local purchasers.

42. Physcial, Exchange, Locational, Informational, Physiological,

Psychological

1. The Goal of the Transformation Process is to:

2. The Future of Operations Management

3. CORRECT: Six Types of Tranformation Processes:

4. Inputs in Operations Mgmt include:

 43. Psychological Transformation Process

1. CORRECT: Ex.) State of Mind, entertainers provide enjoyment,

attending a college sporting event, attending a theatre performance

2. Operations management's role is equivalent to:

3. INCORRECT:

4. The Goal of the Transformation Process is to:

44. Must be COORDINATED to facilitate the strategic decisions, are more

SHORT-TERM in nature and more SPECIFIC with operational objectives.

1. CORRECT: Tactical Decisions

2. Strategic Decisions

3. W. Edwards Deming

4. INCORRECT:

. Which of the following is not a type of operations?

A. goods production

B. storage/transportation
C. entertainment

D. communication

E. all the above involve operations

All of these involve taking inputs and transforming them.

42. Technology choices seldom affect:

A. costs.

B. productivity.

C. union activity.

D. quality.

E. flexibility.

Union activity can affect a firm's technology choices, but not the other way around.

43. Measurements taken at various points in the transformation process for control

purposes are called:

A. plans

B. directions

C. controls
D. feedback

E. budgets

Feedback is used to monitor and improve processes.

44. Budgeting, analysis of investment proposals, and provision of funds are activities

associated with the _______ function.

A. operation

B. marketing

C. purchasing

D. finance

E. internal audit

These are the primary tasks for the finance function.

45. Which one of the following would not generally be classified under the heading of

transformation?

A. assembling

B. teaching

C. staffing
D. farming

E. consulting

Staffing doesn't involve transforming resources so much as it involves acquiring them.

46. Manufacturing work sent to other countries is called:

A. downsized

B. outsourced

C. internationalization

D. vertical integration

E. entrepreneurial ship

Outsourcing is increasingly a part of operations management.

47. Product design and process selection are examples of _______ decisions.

A. financial

B. tactical

C. system design

D. system operation

E. forecasting
These major decisions affect decisions made at lower levels.

48. The responsibilities of the operations manager are:

A. planning, organizing, staffing, procuring, and reviewing

B. planning, organizing, staffing, directing, and controlling

C. forecasting, designing, planning, organizing, and controlling

D. forecasting, designing, operating, procuring, and reviewing

E. designing and operating

The scope of operations management ranges across the organization.

49. Knowledge skills usually don't include:

A. process knowledge

B. accounting skills

C. communication skills

D. global knowledge

E. all of the above

Communication skills generally are considered to be people skills.

50. Which of the following is not true about systems approach?

A. A systems viewpoint is almost always beneficial in decision making.

B. A systems approach emphasizes interrelationships among subsystems.

C. A systems approach concentrates on efficiency within subsystems.

D. A systems approach is essential whenever something is being redesigned or improved.

E. All of the above are true.

Subsystem efficiency doesn't necessarily translate into overall system efficiency.

51. What is credited with gains in industrial productivity, increased standards of living

and affordable products?

A. personal computers

B. the internet

C. mass transportation

D. assembly lines

E. multi-level marketing

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

52. Production systems with customized outputs typically have relatively:

A. high volumes of output

B. low unit costs

C. high amount of specialized equipment

D. fast work movement

E. skilled workers

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

53. Which is not a significant difference between manufacturing and service operations?

A. cost per unit

B. uniformity of output

C. labor content of jobs

D. customer contact

E. measurement of productivity

Manufacturing operations aren't necessarily more or less efficient than service operations.

54. Which of the following is not a characteristic of service operations?

A. intangible output

B. high customer contact

C. high labor content

D. easy measurement of productivity

E. low uniformity of output

The productivity of service operations is often hard to measure.

55. Which of the following is a recent trend in business?

A. pollution control

B. total quality management

C. supply chain management

D. competition from foreign manufacturers

E. technological change

Supply chain management involves a broader systemic view of operations.

56. Farming is an example of:

A. an obsolete activity

B. a virtual organization

C. non-manufactured goods

D. a growth industry
E. customized manufacturing

Farm operations are not manufacturing operations.

57. Dealing with the fact that certain aspects of any management situation are more

important than others is called:

A. analysis of tradeoffs

B. sensitivity analysis

C. recognition of priorities

D. analysis of variance

E. decision table analysis

Solutions tend to be targeted toward higher priority aspects of a situation.

58. 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. Irwin phenomenon

B. Pareto phenomenon

C. Stevenson phenomenon

D. Tellier phenomenon
E. Adam Smith phenomenon

Pareto phenomena direct our attention to the difference between the "important few" and the

"trivial many."

59. The process of comparing outputs to previously established standards to determine

if corrective action is needed is called:

A. planning

B. directing

C. controlling

D. budgeting

E. disciplining

Controls are used to maintain performance.

60. Which of the following does not relate to system design?

A. altering the system capacity

B. location of facilities

C. inventory management

D. selection and acquisition of equipment

E. physical arrangement of departments

Inventory management is a system operation decision area.

61. Taking a systems viewpoint with regard to operations in today's environment

increasingly leads decision-makers to consider ______________ in response to the

___________.

A. flexibility; pressure to be more efficient

B. offshoring; need to promote domestic production

C. sustainability; threat of global warming

D. technology; impact of random variation

E. forecasting; stabilization of demand

Sustainability is a relatively recent operations management consideration.

62. Some companies attempt to maximize the revenue they receive from fixed operating

capacity by influencing demands through price manipulation. This is an example of

__________________:

A. Illegal price discrimination

B. Collusion
C. Volume analysis

D. Revenue management

E. Outsourcing

Revenue management is used to ensure that as much perishable capacity as possible is sold.

63. Which of the following is not an ongoing trend in manufacturing?

A. globalization

B. quality improvement

C. flexibility and agility

D. mass production for greater economies of scale

E. technological advances

Manufacturers are moving away from mass production for economies of scale.

64. Which of the following is not a benefit of using models in decision making?

A. They provide a standardized format for analyzing a problem.

B. They serve as a consistent tool for evaluation.

C. They are easy to use and less expensive than dealing with the actual situation.

D. All of the above are benefits.

E. None of the above is a benefit.

Models are useful tools for making decisions without confronting the actual situation with all of

its complexity.

65. 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. outsourcing; supply chain

B. offshoring; lean

C. downsizing; total quality

D. optimizing; inventory

E. internationalization; intercultural

Supply chain management takes a more systemic view of the firm, its operations, and its

suppliers.

66. Operations and sales are the two ________ functions in businesses.

A. strategic

B. tactical
C. support

D. value-adding

E. line

Others are support functions.

67. Marketing depends on operations for information regarding ___________.

A. productivity

B. lead time

C. cash flow

D. budgeting

E. corporate intelligence

Marketing uses lead time information to make promises to customers.

68. Two widely used metrics of variation are the __________ and the _________.

A. mean; standard deviation

B. productivity ratio; correlation

C. standardized mean; assignable deviation

D. randomized mean; standardized deviation

E. normal distribution; random variation

The mean and standard deviation summarize important facets regarding the variation in a

process.

69. Which of the following statements about variation is FALSE?

A. Variation prevents a production process from being as efficient as it can be.

B. Some variation can be prevented.

C. Variation can either be assignable or random.

D. Any variation makes a production process less productive.

E. Random variation generally cannot be influenced by managers.

The choice to offer customers greater variety might increase variation but increase productivity

even more.

70. Which of the following is essential to consider with respect to managing a process

to meet demand?

A. strategy

B. demand forecasts

C. capacity
D. random variability

E. all of the above

Operations managers are responsible for assessing consumer wants and needs and

selling and promoting the organization's goods or services.

FALSE

Operation managers are not responsible for promoting goods/services.

2. Often, the collective success or failure of companies' operations functions will impact

the ability of a nation to compete with other nations.

TRUE

A nation is often only as competitive as its companies.

3. Companies are either producing goods or delivering services. This means that only

one of the two types of operations management strategies are used.

FALSE

Most systems involve a blend of goods and services.

4. Operations, marketing, and finance function independently of each other in most

organizations.

FALSE

Operations, marketing and finance are naturally dependent upon one another.

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

management of operations.

TRUE

Greater customer involvement leads to more complexity in the design and management of

operations.

6. Goods producing organizations are not involved in service activities.

FALSE

Most systems involve a blend of goods and services.

7. Service operations require additional inventory because of the unpredictability of

consumer demand.

FALSE

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

8. The value of outputs is measured by the prices customers are willing to pay for goods

or services.

TRUE

Customers' willingness to pay for goods or services sets the value of these outputs.

9. The use of models will guarantee the best possible decisions.

FALSE

Models are useful, but their use does not guarantee the best decisions.

10. People who work in the field of operations should have skills that include both

knowledge and people skills.

TRUE

Operations management requires a blend of knowledge and people skills.

11. Assembly lines achieved productivity but at the expense of standard of living.

FALSE

Productivity and standard of living go hand in hand.

12. The operations manager has primary responsibility for making operations system

design decisions, such as system capacity and location of facilities.

FALSE

The operations manager plays a role in these decisions but is not primarily responsible for

them.

13. The word "technology" is used only to refer to "information technology".

FALSE

Technology also refers to the technology involved in resource transformations.

14. ‘Value added' by definition is always a positive number since 'added' implies

increases.

FALSE
Some transformations result in the output being worth less than the inputs.

15. Service often requires greater labor content, whereas manufacturing is more capital

intensive.

TRUE

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

16. Measurement of productivity in service is more straightforward than in

manufacturing since it is not necessary to take into account the cost of materials.

FALSE

Materials cost must be considered in services as well.

17. Special-purpose technology is a common way of offering increased customization in

manufacturing or services without taking on additional labor costs.

FALSE

Special-purpose technology typically reduces costs through standardization.

18. One concern in the design of production systems is the degree of standardization.
 TRUE

How standardized outputs will be is a critical consideration in the system design question.

19. Most people encounter operations only in profit-making organizations.

FALSE

Operations are also relevant to not-for-profit organizations such as the Red Cross.

20. Service involves a much higher degree of customer contact than manufacturing.

TRUE

Customer contact tends to be much higher in services

Frederick W. Taylor is generally credited with introducing the moving assembly line.
A)True
B)False

2 Human effort, technology, raw materials, information and time are all examples of the
necessary inputs to operations.
A)True
B)False

3 Outputs of operations may be classified as goods, raw materials and profits.

A)True
B)False

4 It is easier to measure productivity for an operation that provides services than for one that
produces goods.
A)True
B)False

5 According to the Pareto principle, a relatively few factors are very important in achieving an
objective or solving a problem.
A)True
B)False

6 Two recent trends in operations management are supply chain management and
specialization.
A)True
B)False

7 Which one of the following would not generally be considered an aspect of operations
management?
A)Schedule work
B)Secure financial resources
C)Maintain quality
D)Oversee the transformation process
E)Manage inventories

8 Which one of these was not mentioned in the list of recent trends in operations management?
A)Total quality management
B)Worker involvement
C)Global competition.
D)Automation.
E)Environmental issues.

9 Which came last in the development of manufacturing techniques?

A)Lean production.
B)Division of labor.
C)Mass production.
D)Craft production.
E)Interchangeable parts.

10 Which of the following is not a type of operations?

A)goods production
B)storage/transportation
C)entertainment
D)communication
E)price reduction

11 Which of the following is not true about a lean production system?

A)It puts emphasis on quality, flexibility, and time reduction.
B)It puts emphasis on reducing a company's labor force.
C)It is involved in maintaining and improving the system with lower amounts of inventory.
D)It uses small production batch sizes.
E)It relies on buffers against unforeseen occurrences.

12 Which one of the following is not a typical question dealt with by an operations
managers?
A) How much capacity will be needed in the months ahead?
B) What is a satisfactory location for a new facility?
C) Which products/services should be offered?
D) How to motivate employees?
E) All are typical of operations decisions.
13 Which one does not use operations management?
A) A CPA firm.
B) A bank.
C) A hospital
D) A supermarket
E) They all use it.

14 Which one is not generally considered to be an advantage of using models for decision
making?
A) Providing a systematic approach to problem solving.
B) Emphasizing quantitative information.
C) Providing an exact representation of reality.
D) Enabling managers to answer "what if" questions
E) Requiring users to be specific about objectives.

15 Which came last in the development of manufacturing techniques?

A) Lean production.
B) Division of labor.
C) Mass production.
D) Craft production.
E) Interchangeable parts.

16 The three primary functions of a firm are financial management, operations

management, and accounting.
A) True
B) False

18 The principal activity in all production operations is to convert inputs into outputs that
satisfy consumer wants.
 A) True
B) False

19 The father of scientific management was Henry Ford.

A) True
B) False

20 A model is an abstraction of reality.

A) True
B) False

21 It is easier to measure productivity for an operation that provides services than for one
that produces goods.
A) True
B) False

22 Both inputs and outputs are more uniform for an operation that provides services than
for one that produces goods.
A) True
B) False

23 The difference between the cost of inputs and the price of outputs is known as value
added.
A) True
B) False

24 Craft production involves the use of interchangeable parts.

A) True
B) False
25 A supply chain is a sequence of organizations that are involved in producing goods
and/or producing services.
A) True
B) False

26 According to the Pareto principle, a relatively few factors are very important in achieving
an objective or solving a problem.
A) True
B) False

27 Two recent trends in operations management are flexibility and specialization.

A) True
B) False

28 Mass production is based on the division of labor.

A) True
B) False