Question 1

When customers become dissatisfied with the service they have received, service businesses must switch to the process of _____.

Accepted Answer

A)  service recovery 
B)  service enhancement 
C)  service delivery 
D)  business process reengineering 
A)  service recovery 
B)  service enhancement 
C)  service delivery 
D)  business process reengineering

Question 2

Empowering workers means permanently passing decision-making authority and responsibility from managers to workers.

Accepted Answer

A) True 
 B)False

Question 3

As the Baldrige Award is directly based on the ISO 9000 standards, it is essentially the U.S. version of recognition for excellence in meeting the ISO 9000 standards.

Accepted Answer

A) True 
 B)False

Question 4

ToySpot, a soft toy manufacturer, receives an order of 250 teddy bears. For this particular order, its total inventory includes 300 yards of fabric, 200 yards of ribbon, 250 pounds of cotton, 185 teddy bears in various stages of manufacturing, and 65 completed teddy bears. In the context of this scenario, how many teddy bears can be considered work-in-process inventory?

Accepted Answer

A)  250 
B)  185 
C)  65 
D)  200 
A)  250 
B)  185 
C)  65 
D)  200

Question 5

_____ indicates how much labor, capital, materials, and energy it takes to create an output.

Accepted Answer

A)  Multifactor productivity 
B)  Economic order quantity 
C)  Partial productivity 
D)  Inventory turnover 
A)  Multifactor productivity 
B)  Economic order quantity 
C)  Partial productivity 
D)  Inventory turnover

Question 6

Which of the following is a difference between partial productivity and multifactor productivity?

Accepted Answer

A)  Unlike multifactor productivity, partial productivity only indicates how much labor and capital a company requires to produce an output. 
B)  Unlike multifactor productivity, partial productivity indicates a company's overall level of productivity relative to its competitors. 
C)  Unlike partial productivity measures, multifactor productivity measures do not indicate the specific contributions that labor, capital, materials, or energy make to overall productivity. 
D)  Unlike partial productivity measures, multifactor productivity measures can help managers determine what factors need to be adjusted or in what areas adjustment can make the most difference in overall productivity. 
A)  Unlike multifactor productivity, partial productivity only indicates how much labor and capital a company requires to produce an output. 
B)  Unlike multifactor productivity, partial productivity indicates a company's overall level of productivity relative to its competitors. 
C)  Unlike partial productivity measures, multifactor productivity measures do not indicate the specific contributions that labor, capital, materials, or energy make to overall productivity. 
D)  Unlike partial productivity measures, multifactor productivity measures can help managers determine what factors need to be adjusted or in what areas adjustment can make the most difference in overall productivity.

Question 7

Sombre is a toy manufacturer that orders the components required to make toys way before its customers make a purchase. They make modules with those components and later, upon receiving customer requests, make toys using those modules. They do this to make sure they are able to cater to the demands of the customers. It is evident that Sombre has adopted a(n) _____.

Accepted Answer

A)  assemble-to-stock operation 
B)  make-to-stock operation 
C)  make-to-order operation 
D)  assemble-to-order operation 
A)  assemble-to-stock operation 
B)  make-to-stock operation 
C)  make-to-order operation 
D)  assemble-to-order operation

Question 8

The Cool Store manufactures 200 air conditioners every week. The company spends $500 on labor, $3,000 on rent, $1,200 on equipment, and $900 on electricity to produce these air conditioners. Which of the following indicates the multifactor productivity of the company?

Accepted Answer

A)  0.036 
B)  0.207 
C)  0.103 
D)  0.072 
A)  0.036 
B)  0.207 
C)  0.103 
D)  0.072

Question 9

Service capability is an ongoing commitment to increase product and service quality by constantly assessing and improving the processes and procedures used to create those products and services.

Accepted Answer

A) True 
 B)False

Question 10

Cooling Systemz is a company that manufactures electric heaters and air conditioners. Customers purchase standardized items from this store for their homes and offices. The company has adopted make-to-stock operations. Based on this information, which of the following statements is true of Cooling Systemz?

Accepted Answer

A)  The company orders parts and assembles modules ahead of customer orders. 
B)  The company produces or assembles highly specialized products for customers. 
C)  The company is not dependent on the accuracy of sales forecasts. 
D)  The company starts assembling finished products before receiving customer orders. 
A)  The company orders parts and assembles modules ahead of customer orders. 
B)  The company produces or assembles highly specialized products for customers. 
C)  The company is not dependent on the accuracy of sales forecasts. 
D)  The company starts assembling finished products before receiving customer orders.

Question 11

Brian, the operations manager in a company that manufactures light bulbs, calculates the daily productivity at the factory by determiningthe amount of tungsten filaments required to produce a light bulb. In this scenario, Brian calculates _____.

Accepted Answer

A)  partial productivity 
B)  service capability 
C)  multifactor productivity 
D)  the service recovery ratio 
A)  partial productivity 
B)  service capability 
C)  multifactor productivity 
D)  the service recovery ratio

Question 12

Service recovery sometimes requires service employees to:

Accepted Answer

A)  temporarily stop contacting highly dissatisfied customers. 
B)  permanently pass decision-making authority and responsibility to managers. 
C)  switch to the process of service delivery. 
D)  perform heroic service acts that delight highly dissatisfied customers. 
A)  temporarily stop contacting highly dissatisfied customers. 
B)  permanently pass decision-making authority and responsibility to managers. 
C)  switch to the process of service delivery. 
D)  perform heroic service acts that delight highly dissatisfied customers.

Question 13

Bake Treats is a confectionery that makes cakes for special occasions and delivers them. They use gourmet ingredients while baking and deliver customized treats. In fact, they only start baking once they receive an official request from a customer. It is evident that Bake Treats has adopted a(n) _____.

Accepted Answer

A)  make-to-order operation 
B)  make-to-stock operation 
C)  assemble-to-order operation 
D)  assemble-to-stock operation 
A)  make-to-order operation 
B)  make-to-stock operation 
C)  assemble-to-order operation 
D)  assemble-to-stock operation

Question 14

Rekky n Brekky is a café where part of its employees' monthly salary depends on customer satisfaction. Eighty percent of the incentive is based on performance and the remaining twenty percent is based on customer satisfaction ratings and the quality of service. In this case, Rekky n Brekky is committed to _____.

Accepted Answer

A)  line-flow production 
B)  total quality management 
C)  implementing a just-in-time program 
D)  internal service quality 
A)  line-flow production 
B)  total quality management 
C)  implementing a just-in-time program 
D)  internal service quality

Question 15

Shiny Rides is an automobile company that caters to people who invest in customized vehicles. To get their vehicles ready and delivered on time, customers are required to confirm the customization requirements they want. Unless and until the company receives a confirmed booking, it does not start the customization process. It is evident that Shiny Rides has adopted a(n) _____.

Accepted Answer

A)  assemble-to-stock operation 
B)  make-to-stock operation 
C)  make-to-order operation 
D)  assemble-to-order operation 
A)  assemble-to-stock operation 
B)  make-to-stock operation 
C)  make-to-order operation 
D)  assemble-to-order operation

Question 16

Brendon's Bakeries uses 4,000 pounds of flour a year. If the ordering cost is $10 per order and the holding cost is $2 per pound, then the optimal quantity to order flour is _____.

Accepted Answer

A)  200 pounds 
B)  300 pounds 
C)  400 pounds 
D)  500 pounds 
A)  200 pounds 
B)  300 pounds 
C)  400 pounds 
D)  500 pounds

Question 17

Limitless Builders is a construction plant, wherein small aluminum rods are sheared, hammered, welded, and molded to form nuts and bolts that are used as fasteners. The nuts and bolts produced in this process are referred to as _____.

Accepted Answer

A)  raw material inventories 
B)  component parts inventories 
C)  average aggregate inventories 
D)  work-in-process inventories 
A)  raw material inventories 
B)  component parts inventories 
C)  average aggregate inventories 
D)  work-in-process inventories

Question 18

Raver Gear is a company that manufactures and sells riding gear, such as helmets, jackets, and gloves. It has adopted assemble-to-order operations. Based on this information, which of the following statements is true of Raver Gear?

Accepted Answer

A)  The company orders parts and assembles modules ahead of customer orders. 
B)  The company produces or assembles highly specialized products for customers. 
C)  The company is highly dependent on the accuracy of sales forecasts. 
D)  The company starts assembling finished products before receiving customer orders. 
A)  The company orders parts and assembles modules ahead of customer orders. 
B)  The company produces or assembles highly specialized products for customers. 
C)  The company is highly dependent on the accuracy of sales forecasts. 
D)  The company starts assembling finished products before receiving customer orders.

Question 19

_____ includes the costs of downtime and lost efficiency that occur when a machine is changed or adjusted to produce a different kind of inventory.

Accepted Answer

A)  Ordering cost 
B)  Setup cost 
C)  Holding cost 
D)  Stockout cost 
A)  Ordering cost 
B)  Setup cost 
C)  Holding cost 
D)  Stockout cost

Question 20

Which of the following is a difference between component parts inventories and work-in-process inventories?

Accepted Answer

A)  Unlike component parts inventories, work-in-process inventories include goods that are sent to distribution centers. 
B)  Raw materials are fabricated or processed into component parts inventories, whereas work-in-process inventories are a result of the assembly of component parts. 
C)  The process involved in creating work-in-process inventories is also known as initial assembly, whereas the process involved in creating component parts inventories is also known as final assembly. 
D)  Unlike component parts inventories, work-in-process inventories can be purchased from vendors. 
A)  Unlike component parts inventories, work-in-process inventories include goods that are sent to distribution centers. 
B)  Raw materials are fabricated or processed into component parts inventories, whereas work-in-process inventories are a result of the assembly of component parts. 
C)  The process involved in creating work-in-process inventories is also known as initial assembly, whereas the process involved in creating component parts inventories is also known as final assembly. 
D)  Unlike component parts inventories, work-in-process inventories can be purchased from vendors.

When customers become dissatisfied with the service they have received, service businesses must switch to the process of _____.

Empowering workers means permanently passing decision-making authority and responsibility from managers to workers.

As the Baldrige Award is directly based on the ISO 9000 standards, it is essentially the U.S. version of recognition for excellence in meeting the ISO 9000 standards.

_____ indicates how much labor, capital, materials, and energy it takes to create an output.

Which of the following is a difference between partial productivity and multifactor productivity?

The Cool Store manufactures 200 air conditioners every week. The company spends $500 on labor, $3,000 on rent, $1,200 on equipment, and $900 on electricity to produce these air conditioners. Which of the following indicates the multifactor productivity of the company?

Service capability is an ongoing commitment to increase product and service quality by constantly assessing and improving the processes and procedures used to create those products and services.

Brian, the operations manager in a company that manufactures light bulbs, calculates the daily productivity at the factory by determiningthe amount of tungsten filaments required to produce a light bulb. In this scenario, Brian calculates _____.

Service recovery sometimes requires service employees to:

Brendon's Bakeries uses 4,000 pounds of flour a year. If the ordering cost is $10 per order and the holding cost is $2 per pound, then the optimal quantity to order flour is _____.

Limitless Builders is a construction plant, wherein small aluminum rods are sheared, hammered, welded, and molded to form nuts and bolts that are used as fasteners. The nuts and bolts produced in this process are referred to as _____.

Raver Gear is a company that manufactures and sells riding gear, such as helmets, jackets, and gloves. It has adopted assemble-to-order operations. Based on this information, which of the following statements is true of Raver Gear?

_____ includes the costs of downtime and lost efficiency that occur when a machine is changed or adjusted to produce a different kind of inventory.

Which of the following is a difference between component parts inventories and work-in-process inventories?

Management

The History of Management

Organizational Environments and Cultures

Ethics and Social Responsibility

Planning and Decision Making

Organizational Strategy

Innovation and Change

Global Management

Designing Adaptive Organizations

Managing Teams

Managing Human Resource Systems

Managing Individuals and a Diverse Workforce

Motivation

Leadership

Managing Communication

Control

Managing Information

Filters

Exam 18: Managing Service and Manufacturing Operations

When customers become dissatisfied with the service they have received, service businesses must switch to the process of _____.

Empowering workers means permanently passing decision-making authority and responsibility from managers to workers.

As the Baldrige Award is directly based on the ISO 9000 standards, it is essentially the U.S. version of recognition for excellence in meeting the ISO 9000 standards.

_____ indicates how much labor, capital, materials, and energy it takes to create an output.

Which of the following is a difference between partial productivity and multifactor productivity?

The Cool Store manufactures 200 air conditioners every week. The company spends $500 on labor, $3,000 on rent, $1,200 on equipment, and $900 on electricity to produce these air conditioners. Which of the following indicates the multifactor productivity of the company?

Service capability is an ongoing commitment to increase product and service quality by constantly assessing and improving the processes and procedures used to create those products and services.

Brian, the operations manager in a company that manufactures light bulbs, calculates the daily productivity at the factory by determiningthe amount of tungsten filaments required to produce a light bulb. In this scenario, Brian calculates _____.

Service recovery sometimes requires service employees to:

Brendon's Bakeries uses 4,000 pounds of flour a year. If the ordering cost is $10 per order and the holding cost is $2 per pound, then the optimal quantity to order flour is _____.

Limitless Builders is a construction plant, wherein small aluminum rods are sheared, hammered, welded, and molded to form nuts and bolts that are used as fasteners. The nuts and bolts produced in this process are referred to as _____.

Raver Gear is a company that manufactures and sells riding gear, such as helmets, jackets, and gloves. It has adopted assemble-to-order operations. Based on this information, which of the following statements is true of Raver Gear?

_____ includes the costs of downtime and lost efficiency that occur when a machine is changed or adjusted to produce a different kind of inventory.

Which of the following is a difference between component parts inventories and work-in-process inventories?

Management

The History of Management

Organizational Environments and Cultures

Ethics and Social Responsibility

Planning and Decision Making

Organizational Strategy

Innovation and Change

Global Management

Designing Adaptive Organizations

Managing Teams

Managing Human Resource Systems

Managing Individuals and a Diverse Workforce

Motivation

Leadership

Managing Communication

Control

Managing Information

Filters