Deck 8: Managing Service and Manufacturing Operations

Question 1

Material-requirements planning can be,and often is,used in conjunction with just-in-time inventory management.

Answer 1

True

Question 2

Production refers to all the activities and processes used in making both tangible and intangible products.

Answer 2

False

Question 3

Which of the following is true of the transformation process in operations management?

A)It is a process of replacing quality with productivity when manufacturing products.
B)It is the conversion of resources such as labor,money,materials,and energy into goods,services,and ideas.
C)It is efficient only when inputs are used in large quantities to produce small quantities of output.
D)It is associated with the marketing and selling of both inputs and outputs to customers.
E)It is a process of initiating corrective action when the actual output is more than the desired output.

Answer 3

B

Question 4

If an employee's primary function in an organization is transforming resources into goods and services,then he or she is involved in:

A)staffing.
B)financing.
C)customer relationship management.
D)operations management.
E)crowdsourcing.

Question 5

Identify a similarity between goods and services.

A)Both are equally labor-intensive.
B)Both produce uniform outputs.
C)Both undergo a transformation process.
D)Both are equally tangible.
E)Both have equal control over the variability of their inputs.

Question 6

Which of the following is a characteristic feature of service businesses?

A)They are not labor-intensive.
B)The service experience remains constant each time.
C)They cannot incorporate quality standards.
D)The resultant output is mostly tangible.
E)The degree of variation of inputs and outputs is high.

Question 7

In the context of operations management,which of the following is true of the transformation process?

A)It focuses on producing outputs that are less worth than the combined costs of the inputs.
B)It occurs in all organizations,regardless of what they produce or their objectives.
C)It occurs only in manufacturing companies because they use tangible inputs.
D)It involves replacing quality with productivity when manufacturing goods.
E)It includes the same methods and number of steps in all organizations.

Question 8

Service providers are generally more labor-intensive than manufacturers because of the high level of customization.

Question 9

For most organizations,the ultimate objective is:

A)to replace quality with productivity in the transformation process.
B)to create intangible outputs using tangible inputs.
C)for operations to be replaced by production and manufacturing.
D)for the produced outputs to be worth more than the cost of inputs.
E)to completely eliminate the transformation process in operations management.

Question 10

From the perspective of operations,foods sold at a restaurant and services provided by an insurance company are:

A)component parts.
B)inputs.
C)outputs.
D)stocks.
E)inventories.

Question 11

Which of the following can be described as production?

A)The services provided by a financial advisor
B)The manufacturing of cars in an automobile company
C)The surgeries conducted by a doctor
D)The legal advice provided by a lawyer for a fee
E)The process involved in providing services at a spa

Question 12

How do operations managers ensure quality and efficiency during the transformation process of inputs into outputs?

A)They ensure that their products never use the modular design of transforming because this process increases the cost of labor.
B)They always employ computer-assisted manufacturing (CAM)technologies to guide and control the transformation processes.
C)They shift from material-requirements planning (MRP)to just-in-time (JIT)inventory management.
D)They keep the work cycling between two different batches of labor in order to track any loopholes.
E)They take feedback at various points in the transformation process and compare them to established standards.

Question 13

Which of the following accurately describes the difference between the terms operations and production?

A)Operations is the first step in manufacturing,whereas production is the last step.
B)Operations is simply an analysis of inputs and outputs,whereas production includes a wide range of organizational activities and situations.
C)Operations includes processes used in the making of both tangible and intangible products,whereas production is related only to tangible products.
D)Operations focuses solely on quality,whereas the primary focus of production is productivity.
E)Operations is restricted to small businesses,whereas production occurs in both small and large businesses.

Question 14

Irene is an employee involved in administering activities associated with making both tangible and intangible products that satisfy the needs of customers.Thus,Irene is a(n)_____.

A)finance manager
B)sales manager
C)marketing manager
D)human resource manager
E)operations manager

Question 15

Service businesses cannot incorporate quality standards.

Question 16

From the perspective of operations,shoe racks,beds,and tables made by a carpenter are:

A)intangible resources.
B)inputs.
C)equipment.
D)outputs.
E)processes.

Question 17

Operations management has the primary responsibility of:

A)securing funds for the activities of an organization.
B)conducting research on consumer behavior.
C)creating goods and services that satisfy customers.
D)developing only intangible products.
E)replacing quality with productivity in the manufacturing of goods.

Question 18

Money,employees,time,and equipment are examples of an airline's _____ in the transformation process.

A)outputs
B)stocks
C)products
D)services
E)inputs

Question 19

From the perspective of operations,the money used to purchase a carpenter's tools and the electricity used to run his power saw are:

A)processes.
B)outputs.
C)stocks.
D)inputs.
E)inventories.

Question 20

Modular design,an operations process for manufacturing products,does not allow products to be repaired quickly,thus increasing the cost of labor.

Question 21

Service experience tends to vary each time because:

A)services are not labor-intensive.
B)of the tangible element inherent in delivering services.
C)services can be easily separated from the point of consumption.
D)services are less customized than tangible products.
E)of the human element inherent in providing services.

Question 22

In comparison to manufacturers,service providers require more labor because:

A)of the tangibility of their output.
B)their output cannot be delivered at the point of consumption.
C)their output is highly standardized.
D)of the high degree of uniformity of their inputs.
E)of the high level of customer contact.

Question 23

The output of service providers must be consumed immediately,and only a few services can be saved,stored,resold,or returned.Which characteristic feature of services does this best illustrate?

A)Low degree of customer contact
B)High degree of standardization of outputs
C)Tangibility of outputs
D)Perishability of outputs
E)Uniformity of inputs

Question 24

The fact that a haircut given to a customer cannot be exactly the same as a haircut given to another customer relates to the difference between service providers and manufacturers in terms of:

A)consumption of output.
B)tangibility of inputs.
C)labor required.
D)measurement of productivity.
E)uniformity of output.

Question 25

The products of service providers tend to be more customized than those of manufacturers because:

A)different customers have different needs.
B)the requirements of all customers are more or less the same.
C)technological innovations have reduced variability.
D)there is more capital required in service provision.
E)service providers have limited contact with customers.

Question 26

ProCar Inc.is a reputed automobile company,and Coral Holidays Inc.is an established chain of travel agencies.How will the two businesses differ from each other?

A)While Coral Holidays Inc.will be able to incorporate quality standards in its business,ProCar Inc.will not.
B)Measuring productivity will be fairly straightforward for ProCar Inc.when compared to Coral Holidays Inc.
C)Standardizing output will be easier for Coral Holidays Inc.when compared to ProCar Inc.
D)ProCar Inc.will face a higher degree of variation of inputs and outputs when compared to Coral Holidays Inc.
E)ProCar Inc.will make more customer contact than Coral Holidays Inc.

Question 27

A primary reason for using standardization is to:

A)reduce production costs.
B)increase the choices available for customers.
C)reduce product quality.
D)support variability of the resources used.
E)foster creativity.

Question 28

When compared to service providers,the products of manufacturers are typically:

A)more labor-intensive.
B)less standardized.
C)more difficult to store.
D)more uniform.
E)less tangible.

Question 29

It can be extremely difficult for service providers to accurately estimate the demand for a service in order to match the right supply of the service because:

A)services cannot be customized.
B)services are not produced at the point of consumption.
C)of the perishability of services.
D)of the tangibility of services.
E)services are highly standardized.

Question 30

For manufacturers,measuring productivity is fairly straightforward because:

A)of the tangibility of their output.
B)they are labor-intensive.
C)their output lacks uniformity.
D)of the variability of their inputs.
E)of their high-contact with customers.

Question 31

Zedpro Computer Company is determining the demand for a new product and how much consumers are willing to pay for it.For this,Zedpro should best rely on:

A)case studies.
B)marketing research.
C)trial and error.
D)successful past experiences.
E)intuition.

Question 32

Maple Health Care,a chain of private hospitals and laboratories,finds it difficult to measure the productivity of its staff.Which of the following reasons can be attributed to this problem of service providers?

A)Services cannot be delivered at the point of consumption.
B)Services have a high degree of uniformity.
C)Service requirements vary from job to job.
D)Service experience remains constant each time.
E)Services require minimal customer contact.

Question 33

A consumer electronics company is involved in the process of deciding what new products to manufacture and for what group of customers.Once this has been decided,it will need to determine what processes it will use to make these products as well as the facilities it needs to produce them.These decisions comprise _____.

A)enterprise resource planning
B)human resource planning
C)succession planning
D)material-requirements planning
E)operations planning

Question 34

Which of the following is an advantage of standardization?

A)It helps a customer get exactly what he or she wants.
B)It slows down quality control.
C)It speeds up production.
D)It increases the choices available to customers.
E)It allows customers to mix and match components for customized design.

Question 35

Carbon Devices Inc.is a contract manufacturer of 32GB USB flash drives.All USB devices sold under the brand name Carbon are identical to each other and are of the same quality.This is an example of _____.

A)flexible manufacturing
B)customization
C)standardization
D)benchmarking
E)lean manufacturing

Question 36

Compared to service providers,manufacturers are generally more:

A)labor-intensive.
B)capital-intensive.
C)capable of customizing their products.
D)variable in their inputs and outputs.
E)vulnerable to the perishability of their output.

Question 37

Tree Moon Hospitality Inc.has a chain of reputed hotels and resorts across the globe.First Care Inc.is a pharmaceutical company known for its breakthrough life-saving drugs.How will the two businesses differ from each other?

A)Tree Moon Hospitality Inc.will be more capable of customizing its products when compared to First Care Inc.
B)Tree Moon Hospitality Inc.will be able to keep its output standardized,whereas First Care Inc.will not.
C)Tree Moon Hospitality Inc.will have lesser contact with its customers when compared to First Care Inc.
D)Tree Moon Hospitality Inc.will be able to incorporate quality standards,whereas First Care Inc.will not.
E)Tree Moon Hospitality Inc.,unlike First Care Inc.,will not produce its output at the point of consumption.

Question 38

Actual performance of a service provider's product typically occurs:

A)several days after the purchase.
B)outside the service provider's facility.
C)at the point of consumption.
D)in the buyer's home.
E)before the point of consumption.

Question 39

From the perspective of manufacturers,the term standardization means:

A)ensuring that each product is sold at the same price.
B)ensuring that one's product has the exact same features as that of a competitor.
C)making identical,interchangeable components or complete products.
D)making the exact product a particular customer needs or wants.
E)meeting the benchmark set by a market leader.

Question 40

Which of the following is true of services and their providers?

A)Service providers are more capital-intensive than labor-intensive.
B)The quality of the service experience is controlled by a service contact employee.
C)Service experience is usually constant irrespective of the person delivering or receiving it.
D)Services can be provided in an isolated environment,away from customers.
E)The degree of variation of inputs and outputs is negligible for services.

Question 41

A company that manufactures large products,such as houses or bridges,may require that all resources be brought to a central location during production.This type of a facility layout is called a(n):

A)fixed-position layout.
B)product layout.
C)line layout.
D)web layout.
E)assembly line layout.

Question 42

Building a computer so that the components can be installed in different configurations to meet certain needs of a customer is a result of:

A)flexible manufacturing.
B)modular design.
C)lean manufacturing.
D)standardization.
E)reverse engineering.

Question 43

Which of the following is true of modular design as an operations process?

A)The failure of any portion of a modular component does not require replacing the entire component.
B)Automobile manufacturers avoid the use modular design in the production process.
C)It increases the time take to repair products,thus raising the cost of labor.
D)It allows for customers to mix and match components for customized design.
E)It is the highest form of customization that can be provided to customers.

Question 44

An organization that creates many products with similar characteristics,using assembly lines would most likely be categorized as a(n):

A)continuous manufacturing organization.
B)intermittent organization.
C)project organization.
D)contract manufacturing organization.
E)fixed-position organization.

Question 45

Dera Diamonds Inc.is a premium jeweler.Its clientele includes movie stars,politicians,businessmen,and popular socialites.It has a team of jewelry experts that designs jewelry for each of its client from scratch.Everything is made to meet the specific requirements of the clients,and no two jewelry pieces produced by this company has ever been identical.This is an example of _____.

A)customization
B)standardization
C)mass production
D)crowdsourcing
E)benchmarking

Question 46

_____ is making products to meet a particular end user's needs or wants.

A)Customization
B)Standardization
C)Mass production
D)Crowdsourcing
E)Benchmarking

Question 47

_____ employs specialized computer systems to actually guide and control the transformation process of inputs into outputs.

A)Computer-assisted design (CAD)
B)A transaction processing system
C)Computer-assisted manufacturing (CAM)
D)The in-basket technique
E)A turnkey project

Question 48

Which of the following is a defining characteristic of continuous manufacturing organizations using a product layout?

A)They make a unique product.
B)They have an extremely high unit cost of production.
C)They deploy all resources in a central location.
D)They produce a large number of units.
E)They do not use assembly lines.

Question 49

A company involved in large,complex tasks such as construction or exploration and which uses a fixed-position layout is called a(n):

A)continuous manufacturing organization.
B)intermittent organization.
C)project organization.
D)contract manufacturer.
E)lean manufacturer.

Question 50

A manufacturing unit of a commercial brewery can produce a maximum of 20,000 cans of beer per day.This refers to the _____ of the manufacturing unit.

A)agility
B)variability
C)utility
D)perishability
E)capacity

Question 51

NF Goods Inc.is a contract manufacturer of laptops for a reputed consumer electronics company.It uses a facility layout in which the workers remain in one location,and the laptops move from one worker to another.Each person in turn performs his or her required tasks.Thus,NF Goods Inc.is using a _____.

A)product layout
B)process layout
C)project layout
D)web layout
E)fixed-position layout

Question 52

The capacity of a restaurant would be the:

A)average number of customers that visit the restaurant on weekends.
B)total number of customers who have visited the restaurant since its establishment.
C)average number of employees who work in the restaurant on a normal day.
D)maximum number of customers who can be effectively served at any one particular time.
E)minimum operating cost of the restaurant during a workweek

Question 53

Standardization becomes complex on a global scale because:

A)different countries have different standards for quality.
B)customer needs are same across the globe.
C)standardization slows down production.
D)standardization does not support mass manufacturing.
E)standardization increases production costs.

Question 54

An automobile company allows buyers to select the color,interiors,and features of their cars based on their individual requirements.Though most parts of the cars can be altered to meet the buyers' specifications,their outer body remains the same.This is an example of _____.

A)lean manufacturing
B)standardization
C)mass customization
D)crowdsourcing
E)benchmarking

Question 55

Facility location decisions are significant for an organization because:

A)of the customers' preference to have production facilities located nearby.
B)most customer contacts occur in manufacturing facilities.
C)speed of delivery is not very important.
D)proximity to market or community characteristics are not important factors.
E)of the high costs involved with the decisions.

Question 56

How are project organizations different from intermittent organizations?

A)Project organizations deal with products of a lesser magnitude than do intermittent organizations.
B)Project organizations use product layouts,whereas intermittent organizations use fixed-position layouts.
C)Project organizations are mainly found in service industries,whereas intermittent organizations focus on manufacturing.
D)Project organizations are effective for mass production,whereas intermittent organizations produce very few units of a product.
E)Project organizations generally make a unique product,but the products of intermittent organizations are not necessarily unique.

Question 57

A metal fabrication plant with a cutting department,a drilling department,and a polishing department is using a _____ to organize its facility.

A)fixed-position layout
B)project layout
C)process layout
D)geographical layout
E)customer-based layout

Question 58

Which of the following is true of project organizations?

A)They produce a standardized product.
B)They produce a large number of units.
C)They have low production costs per unit.
D)They rely on highly skilled labor.
E)They generally use product layouts.

Question 59

A hospital can effectively handle a maximum number of 300 patients at any one particular time.This is referred to as its _____.

A)agility
B)variability
C)capacity
D)perishability
E)utility

Question 60

A hospital having an X-ray unit,an obstetrics unit,a few emergency rooms,and other units would best be classified as a(n):

A)intermittent organization.
B)project organization.
C)continuous manufacturing organization.
D)fixed organization.
E)assembly line organization.

Question 61

Which of the following is an example of work-in-process inventory for an automobile company?

A)Cars for sale in one of the company's outlets
B)Cars that are in the initial stages of the assembly line
C)Tires in the company's warehouse
D)Nuts and bolts used in the cars
E)Windshields used in the cars

Question 62

Which of the following is a basic component of material-requirements planning (MRP)?

A)An executive summary
B)A master production schedule
C)A promissory bill
D)A balance sheet
E)A balanced scorecard

Question 63

Which of the following is an example of finished-goods inventory for an apparel company?

A)The clothes for sale in the company's retail store
B)The buttons to be used on pants
C)A batch of pants that are in the stitching process
D)A bottle of fabric dye in the company's factory
E)The thread used for stitching

Question 64

Minimizing inventory by providing an almost continuous flow of items from suppliers to the production facility is referred to as:

A)just-in-time inventory management.
B)flexible scheduling.
C)continuous manufacturing system.
D)contract manufacturing.
E)crowdsourcing.

Question 65

Zoro Inc.,a consumer electronics company,does not store any of its materials in the warehouse.Instead,the company's procurement department orders small quantities of materials as and when they are required.The vendors supply the ordered material directly to the company's manufacturing unit a day or two before the production starts.This arrangement helps Zoro Inc.to reduce costs and boost efficiency.This scenario best illustrates _____.

A)continuous manufacturing systems
B)contract manufacturing
C)just-in-time inventory management
D)crowdsourcing
E)mass customization

Question 66

Materials that have been purchased to be used as inputs in making other products are included in:

A)finished products inventory.
B)partial inventory.
C)raw materials inventory.
D)supplier inventory.
E)work-in-process inventory.

Question 67

A model of inventory management that identifies the optimum number of items to order to minimize the costs of managing them is called the:

A)just-in-time management model.
B)flexible scheduling model.
C)cost-plus model.
D)economic order quantity model.
E)value chain model.

Question 68

Purchasing of all materials in organizations is also referred to as:

A)consumption.
B)leveraged buyout.
C)acquisition.
D)procurement.
E)crowdsourcing.

Question 69

The buying of all materials needed by an organization is called:

A)benchmarking.
B)capital expenditure.
C)purchasing.
D)a leveraged buyout.
E)a hostile takeover.

Question 70

True Diva Inc.,a reputed brand for women's apparel and accessories,uses contract manufacturers in different countries.The company benefits because of the lower cost of labor and minimal government regulations in other countries than its home country.This is an example of _____.

A)bartering
B)benchmarking
C)outsourcing
D)reverse engineering
E)franchising

Question 71

_____ reflects the degree to which a good or service meets the demands and requirements of customers.

A)Inseparability
B)Productivity
C)Quality
D)Capacity
E)Agility

Question 72

The process of determining how many supplies and goods are needed,keeping track of quantities on hand,each item's location,and who is responsible for it within an organization is called:

A)facility planning.
B)benchmarking.
C)succession planning.
D)inventory control.
E)affirmative action.

Question 73

An inventory planning system that schedules the precise quantity of materials needed to make a product is called:

A)succession planning.
B)material-requirements planning.
C)benchmarking.
D)flexible scheduling.
E)capacity-requirements planning.

Question 74

All activities involved in obtaining and managing raw materials and component parts,managing finished products,packaging them,and getting them to customers are part of:

A)value chain management.
B)supply chain management.
C)reverse engineering.
D)crowdsourcing.
E)benchmarking.

Question 75

The term _____ refers to all raw materials,components,completed or partially completed products,and pieces of equipment a firm uses.

A)inventory
B)capital reserve
C)input
D)share
E)intangible

Question 76

Which of the following best illustrates an organization's efforts toward sustainability through its manufacturing and operations systems?

A)Creating genetically modified foods
B)The adoption of 100 percent wind-powered electricity
C)Increasing the use of fossil fuels for manufacturing processes
D)Clearing forests to set up a manufacturing unit
E)The discharge of industrial effluents directly into water bodies

Question 77

Which of the following is a popular method of scheduling materials that identifies all the major activities or events required to complete a project,arranges them in a sequence or path,determines the critical path,and estimates the time required for each event?

A)The Ansoff matrix
B)The Program Evaluation and Review Technique (PERT)
C)The continuous manufacturing system
D)The economic order quantity (EOQ)model
E)The in-basket technique

Question 78

Which of the following is true about quality?

A)It is extremely easy to measure quality characteristics when the product is a service.
B)It is a concern only for service providers.
C)It primarily indicates the price charged for a product.
D)It depends on customers' perceptions.
E)Its definition should vary from employee to employee when a firm adopts total quality management.

Question 79

_____ is a complete system that designs products,manages machines and materials,and controls the operations function in the transformation process.

A)Computer-assisted design (CAD)
B)Computer-integrated manufacturing (CIM)
C)Computer-assisted manufacturing (CAM)
D)Flexible manufacturing
E)Crowdsourcing

Question 80

Marson Structures Inc.purchases cement,steel rods,and wooden panels to use in the construction of buildings,houses,and bridges.These inputs are considered as _____ for a construction business.

A)finished inventory
B)partial inventory
C)work-in-process inventory
D)supplier inventory
E)raw materials inventory