Deck 17: Operations Management: Putting It All Together

Question 1

When determining the type of process that works the best and how this process should be organized, one of the key considerations is the type of material used in that production.

Answer 1

False

Question 2

The cellular layout groups different kinds of machinery and equipment into self-contained cells.

Answer 2

True

Question 3

In operations management, using resources to create value by providing customers with goods and services that offer a better relationship between price and perceived benefits is known as _____.

A)effectiveness
B)efficiency
C)throughput
D)productivity

Answer 3

A

Question 4

In today's competitive markets, operations managers:

A)realize that a product that offers better features is more attractive than one that has a lower price.
B)recognize that achieving efficiency is more important than achieving effectiveness.
C)concentrate primarily on keeping costs low to keep prices competitive.
D)focus solely on the benefits of products, while completely ignoring the costs of those products.

Question 5

Miss Judd, a marriage counselor, has decided to display her certificates and awards prominently in her office. In a servicescape environment, this would be considered a functionality factor.

Question 6

Mr. Chase has opened a custom furniture business and is concerned about the costs associated with storing raw materials, machinery, and finished products. Mr. Chase should consider using a method of production known as just-in-time (JIT)production to help control his inventory costs.

Question 7

Broderick oversees the activities involved in creating the right goods and services in the right quantities and distributing them to the right customers. His decisions have a major impact on his firm's financial success. This is an example of operations management.

Question 8

Paul, an employee at a well-established bank, offers free financial advice to account holders. Paul is offering a _____.

A)good
B)product
C)service
D)process

Question 9

Which of the following statements is true of a product layout?

A)It organizes machinery, equipment, and other resources according to the specific sequence of operations that must be performed.
B)In this layout, a product can be moved from one type of machinery to another in the specific sequence of operations that must be performed.
C)It is used for goods that must be produced at a specific site or that are so large and bulky that it is not feasible to move them from station to station.
D)It is used by firms that need to produce small batches of goods that require a degree of customization.

Question 10

Which of the following is a disadvantage of holding larger inventories?

A)Increased ordering costs
B)Increased risk of stock-outs and lost sales
C)Additional holding costs
D)Irregular production schedules

Question 11

The only standard in the ISO 9000 family that organizations can be certified for is ISO 9001.

Question 12

To increase effectiveness in the long term, organizations must sacrifice efficiency.

Question 13

Better quality improves effectiveness since consumers perceive high-quality goods as having greater value than low-quality goods.

Question 14

One benefit of the Baldrige National Quality Program is that all participants receive between $1,000 and $6,000 to implement a companywide program to minimize harm to the environment.

Question 15

The _____ is a project management tool that illustrates the relationships among all the activities involved in completing a project and identifies the sequence of activities likely to take the longest to complete.

A)critical path method
B)Gantt chart
C)program evaluation and review technique
D)vertical integration technique

Question 16

A(n)_____ is a set of related activities that transform inputs into outputs, thus adding value.

A)divestiture
B)poka-yoke
C)process
D)event

Question 17

The type of process that integrates computer software with automated systems is known as Computer-aided design/computer-aided manufacturing.

Question 18

David works in a small manufacturing firm that makes customized and ergonomically sound office furniture. He feels it is important to work directly with customers to design high-quality furniture that precisely meets their needs. From the given information, we can conclude that David tends to focus on _____.

A)mass production
B)efficiency
C)effectiveness
D)undifferentiated marketing

Question 19

Which of the following statements best illustrates the changing scenario of operations management in American business over the past few decades?

A)The nonfarm labor force is increasingly joining the goods-producing sector.
B)The current trend in value chain design is to rely more on vertical integration and less on outsourcing.
C)There has been a shift from mass customization to mass production.
D)There has been a fundamental shift away from the production of goods toward a service-based economy.

Question 20

Devon Construction Co. is currently in the midst of a big residential construction project. The company's operations manager is looking at the estimated completion dates for the various phases of construction. At the site, ground excavation work takes longer than anticipated.The operations manager wishes to make up for the time lost in the other phases. However, the remaining phases are also behind schedule as the workforce is introduced to new construction techniques and raw materials. Which of the following tools can the operations manager use to better manage the project scheduling?

A)Enterprise resource planning
B)The critical path method
C)Computer-aided design
D)Vertical integration

Question 21

Which of the following is a characteristic of Six Sigma?

A)It exercises tight control on inventories of goods.
B)It aims to reduce defects to no more than 3.4 per million opportunities.
C)It focuses on the correction rather than the prevention of mistakes.
D)It lays emphasis on using green technologies for environmental protection.

Question 22

Which of the following statements is true of computer-integrated manufacturing (CIM)software?

A)It is the result when computer-aided engineering software is integrated with a computer-aided manufacturing application.
B)It allows firms to produce custom-designed products for consumers quickly and at a low cost.
C)It prevents the design and production process of products from being highly automated.
D)It does not allow firms to implement the mass customization strategy.

Question 23

_____ ensure that goods produced in one country will meet the requirements of buyers in another country.

A)Mass customization techniques
B)Automated robots
C)ISO standards
D)Mass production techniques

Question 24

In operations management, quality is defined in terms of:​

A)the ratio of cost to output.
B)how well a product satisfies customer preferences.
C)the number of defects per thousand units of output.
D)the time taken to inspect one unit of a product.

Question 25

Which of the following statements is true of enterprise resource planning (ERP)?

A)ERP makes it easier for organizations throughout a supply chain to coordinate their activities.
B)ERP systems have a simple structure that is inexpensive and easy to implement.
C)ERP software requires users to enter and access data in traditional ways.
D)ERP is the software version of the critical path method that is used for project management.

Question 26

_____ software takes the electronic design for a product and creates the programmed instructions that robots must follow to produce that product as efficiently as possible.

A)Computer-aided design
B)Enterprise resource planning
C)Computer-aided manufacturing
D)Just-in-time production

Question 27

The Baldrige National Quality Program was established by the Congress to encourage American firms to:

A)get a SWOT analysis done for their organization which, though high priced, held high value.
B)implement advanced computer-aided engineering to improve technological standards.
C)improve the quality of their products so that they could provide greater customer satisfaction.
D)focus on quality improvement in order to improve their global competitiveness.

Question 28

Total quality management and Six Sigma both share some characteristics, such as the fact that they:

A)focus more on the correction of errors rather than the prevention of errors.
B)have a single unifying measure of reducing defects to no more than 3.4 per million opportunities.
C)emphasize an organization-wide focus on quality.
D)have a short-term focus on quality improvement.

Question 29

Which of the following statements is true of TQM (Total Quality Management)?

A)TQM recognizes that quality should be defined by the preferences and perceptions of customers.
B)TQM views quality exclusively as the concern of the top management.
C)TQM requires firms to adopt a focus on making improvements an annual concern.
D)TQM focuses on immediately correcting any errors or defects in a system.

Question 30

Steaks & Grillz, a restaurant, uses pleasant music and lighting along with impressive decor to attract customers. In this scenario, the restaurant is attempting to enhance its _____.

A)ambience
B)signage
C)dissonance
D)functionality

Question 31

Computer-integrated manufacturing software is the result when:

A)computer-aided design is integrated with a critical path method.
B)computer-aided design or computer-aided manufacturing is integrated with a production unit.
C)computer-aided design or computer-aided manufacturing is integrated with robots.
D)computer-aided design is integrated with a cellular layout.

Question 32

When designing a retail facility, operations managers should be mindful of the _____, which is an environment where consumers and service providers interact.

A)process layout
B)facility location
C)landscape
D)servicescape

Question 33

_____ software enables users to test, analyze, and optimize their designs through computer simulations.

A)Critical path manufacturing (CPM)
B)Computer-aided engineering (CAE)
C)System-aided manufacturing (SAM)
D)Computer-integrated manufacturing (CIM)

Question 34

Which of the following statements is true of robots?

A)Robots perform jobs that human workers find dangerous or physically demanding.
B)Robots' performance levels decrease when they have to work for very long hours.
C)Robots are usually immobile and perform jobs statically.
D)Robots are inflexible and cannot be reprogrammed to perform new tricks.

Question 35

DKAT Motors, a car manufacturer, releases a new car that boasts of an affordable price tag of about $2,500. The firm is keeping costs down by eliminating large assembly line manufacturing sites and high transportation costs. Workers prepare "kits" that are shipped to final retail destinations. The kits are assembled by trained technicians at the retail level. This is an example of:

A)an old-style assembly line.
B)total quality management.
C)Six Sigma.
D)lean production.

Question 36

Operations managers at UCON Industries Inc.agree that the company is trying to handle too many supply chain functions on its own, resulting in an inefficient use of resources. This suggests that the company may soon adopt the strategy of:

A)acquisition.
B)outsourcing processes.
C)vertical integration.
D)cannibalization.

Question 37

Which of the following is a difference between goods and services?

A)Goods must be consumed when they are produced, while services can be stored in an inventory.
B)Goods can be "experienced" and don't have a physical form, while services have a physical form and can be seen, touched, and handled.
C)Goods must be consumed where they are provided, while services can be shipped.
D)Goods are produced independently of the consumer, while services often require customers to be actively involved in their production.

Question 38

ISO 14000 is a new set of ISO standards that focuses on:

A)correcting production errors rather than preventing them.
B)environmental management.
C)using automation.
D)process redesigning.

Question 39

_____ is an approach to production that emphasizes the elimination of waste in all aspects of production processes.

A)The critical path method
B)Enterprise resource planning
C)Divesting
D)Lean production

Question 40

The purpose of JIT (just-in-time)production is to:

A)sell more goods over time.
B)enhance product quality.
C)prevent errors in production.
D)keep inventories at a minimum.

Question 41

_________ involves how easy it is for the customer to move through the facility and find what they are looking for.

A)Functionality
B)Automation
C)Ambience
D)Vertical integration

Question 42

Discuss the role of operations management in business.

Question 43

A large drilling machine is being built to dig a tunnel below ground level. The machine will be big and is unlikely to be used after this project. It is being built close to the project site on the river bank. The _________ layout should be used to produce the drilling machine.

A)product
B)process
C)fixed position
D)cellular

Question 44

How are leading firms trying to become "greener" in their approach?

Question 45

What is a servicescape? Discuss the three types of factors of a servicescape design.

Question 46

_________ are experienced and not consumeD)

A)Tangible goods
B)Services
C)Durable goods
D)Perishables

Question 47

_________ first proposed the relationship between quality and business success in the early 1950s and is considered the father of the quality movement.
a. Frederick Winslow Taylor
b. W. Edwards Deming
c. Peter Drucker
d. Henry Mintzberg

Question 48

A vehicle wheel manufacturing company headquartered in Dayton is opening a new branch. If it decides to locate the branch overseas, _________ is most likely to be the location factor that influenced this decision.

A)transportation distance
B)low-wage labor
C)climatic conditions
D)superior technology

Question 49

Explain how technology has influenced operations management.

Question 50

Identify and describe key factors operations managers consider when choosing a location for a business facility.