Deck 1: Operations and Productivity

Question 1

In the past half-century, while the number of people employed in manufacturing in the United States has decreased slightly, the output per worker has increased significantly.

Answer 1

True

Question 2

Shewhart's contributions to operations management came during the Scientific Management Era.

Answer 2

False

Question 3

Manufacturing now constitutes the largest economic sector in postindustrial societies.

Answer 3

False

Question 4

Measuring the impact of a capital acquisition on productivity is an example of multifactor productivity.

Question 5

One reason to study operations management is to learn how people organize themselves for productive enterprise.

Question 6

Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced.

Question 7

Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.

Question 8

Productivity is more difficult to improve in the service sector.

Question 9

Because Hard Rock Cafes are themed restaurants, operations managers focus their layout design efforts on attractiveness while paying little attention to efficiency.

Question 10

A knowledge society is one that has migrated from work based on knowledge to one based on manual work.

Question 11

Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives.

Question 12

Which of the following is not one of the Ten Critical Decisions of Operations Management?

A) location strategy
B) human resources and job design
C) managing quality
D) design of goods and services
E) determining the financial leverage position

Question 13

All organizations, including service firms such as banks and hospitals, have a production function.

Question 14

"How much inventory of this item should we have?" is within the critical decision area of managing quality.

Question 15

Customer interaction is often high for manufacturing processes, but low for services.

Question 16

Henry Ford is known as the Father of Scientific Management.

Question 17

An example of a "hidden" production function is money transfers at banks.

Question 18

The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function.

Question 19

Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements.

Question 20

In order to have a career in operations management, one must have a degree in statistics or quantitative methods.

Question 21

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

Question 22

Which of the following pioneers was not making a professional impact during the Scientific Management Era?

A) Frank Gilbreth
B) W. Edwards Deming
C) Henry L. Gantt
D) Lillian Gilbreth
E) Frederick W. Taylor

Question 23

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

Question 24

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

Question 25

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%

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

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

Question 32

Which of the following are part of the Ten Critical Decisions of Operations Management? 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

Question 33

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

Question 34

Reasons to study Operations Management include

A) studying how people organize themselves for productive 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) A and D

Question 35

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

Question 36

All of the following decisions fall within the scope of operations management except for

A) creating the company income statement
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.

Question 37

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

Question 38

Which of the following is not an element of the management process?

A) controlling
B) leading
C) planning
D) pricing
E) staffing

Question 39

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

Question 40

ASQ, ISM, APICS, and PMI are important professional organizations to operations management because

A) they provide certification for professionals
B) they allow professionals to keep up with industry developments
C) they facilitate professional networking
D) none of the above
E) all of the above

Question 41

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

Question 42

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.

Question 43

Which of the following statements is true?

A) Manufacturing now constitutes the largest economic sector in postindustrial societies
B) The number of people employed in manufacturing has increased 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.

Question 44

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

Question 45

Which of the following attributes is most typical of a service?

A) production and consumption occur simultaneously
B) tangible
C) mass production
D) consistency
E) easy to automate

Question 46

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

Question 47

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

Question 48

Which of the following is the best example of a pure service?

A) counseling
B) oil Change
C) heart transplant
D) electric Co-Op
E) all of the above

Question 49

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

A) mass production
B) consistency
C) automation
D) application of operations management
E) all of the above

Question 50

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

Question 51

New trends in operations management include

A) global focus
B) mass customization
C) empowered employees
D) rapid product development
E) All of the above are new trends in operations management.

Question 52

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.

Question 53

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

Question 54

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

Question 55

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) All of the above are true.

Question 56

Henry Ford is noted for his contributions to

A) material requirements planning
B) statistical quality control
C) assembly line operations
D) scientific management
E) time and motion studies

Question 57

The service sector makes up approximately what percentage of all jobs in the United States?

A) 12%
B) 40%
C) 66%
D) 79%
E) 90%

Question 58

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

Question 59

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) None of the above is true.

Question 60

Which of the following statements is true?

A) The person most responsible for initiating the use of interchangeable parts in manufacturing was Eli Whitney.
B) The origins of management by exception are generally credited to Frederick W. Taylor.
C) The person most responsible for initiating the use of interchangeable parts in manufacturing was Walter Shewhart.
D) The origins of the scientific management movement are generally credited to Henry Ford.
E) The person most responsible for initiating the use of interchangeable parts in manufacturing was Henry Ford.

Question 61

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

Question 62

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%

Question 63

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

Question 64

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

Question 65

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

Question 66

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.

Question 67

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

Question 68

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 false.

Question 69

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

Question 70

Which productivity variable has the greatest potential to increase productivity?

A) labor
B) globalization
C) management
D) capital
E) none of the above

Question 71

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

Question 72

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

Question 73

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 productivity?

A) It has not changed.
B) It has increased by 37.5 boxes/hr.
C) It has increased by 20%.
D) It has decreased by 8.3%.
E) It has decreased by 9.1%.

Question 74

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

Question 75

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 make service productivity more difficult.

Question 76

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

Question 77

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 covers/hr
D) 1200 covers/hr
E) none of the above

Question 78

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

Question 79

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

Question 80

Which of the following nets the largest productivity improvement?

A) increase output 15%
B) decrease input 15%
C) increase both output and input by 5%
D) increase output 10%, decrease input 3%
E) decrease input 10%, increase output 3%