Deck 10: Operations Management, Productivity, and Quality

Question 1

In many parts of the world, public washrooms are available on a pay per use basis. What form of utility does this service maximize most to its users?
Place utility
Form utility
Interval utility
Time utility
Ownership utility

Answer 1

Place utility

Question 2

Service products are characterized by three key qualities:
intangibility, uncustomized, unstorability.
intangibility, customization, unstorability.
intangibility, customization, storability.
tangibility, customization, storability.
tangibility, uncustomized, storability.

Answer 2

intangibility, customization, unstorability.

Question 3

By accepting major credit cards, a retail outlet has created
price utility.
time utility.
ownership utility.
form utility.
place utility.

Answer 3

ownership utility.

Question 4

If an Air Canada flight from Toronto to Calgary has 20 empty seats, this illustrates the unique service characteristic of
intangibility.
unstorability.
demand.
customization.
oversupply.

Question 5

Which of the following statements regarding production operations is accurate?
The first industrial revolution occurred in England in the 1800's and the second in China during the 1990's.
The factory is no longer the centrepiece for manufacturing.
The development of 3-D printing illustrates the third industrial revolution.
Production operations remain environmentally unfriendly.
All of these statements are true.

Question 6

The clerk at the 7-Eleven store and the morning radio announcer are examples of people who work in ___________, while companies that make things like radios and automobiles are engaged in __________.
minimum wage operations; maximum wage operations
goods production; service operations
service operations; goods production
high-contact operations; low-contact operations
none of the above

Question 7

The term service operations refers to
production activities that yield tangible products.
production activities that yield tangible and intangible service products.
firms that make tangible products.
service activities that yield intangible products.
service activities that yield tangible products.

Question 8

The quality of a product that satisfies a human need during its consumption is known as
ownership utility.
place utility.
need utility.
form utility.
time utility.

Question 9

When comparing manufacturing and service operations, it is correct to say that
only manufacturing operations transform raw materials into finished products.
most service operations are pure service.
service operations are more complex than goods production.
quality considerations are defined and managed in a similar way in both the service sector and in manufacturing operations.
All of these statements are correct.

Question 10

When your favorite restaurant prepares your favorite meal, they are creating
form utility.
price utility.
time utility.
place utility.
ownership utility.

Question 11

Which of the following are unique aspects that separate services from goods?
Intangibility and warranties
High-contact and low-contact
Time and place utility
Intangibility and unstorability
Form and time utility

Question 12

By making a product that customers can take pride in having, production creates
resale value utility.
form utility.
time utility.
operational utility.
ownership utility.

Question 13

A soft drink manufacturer who has many outlets for its product is providing
place utility.
ownership utility.
form utility.
price utility.
time utility.

Question 14

The so-called third industrial revolution emphasizes
greater productivity in services operations than in manufacturing operations.
a decreasing emphasis on manufacturing in North America and an increasing emphasis on manufacturing in China.
trade deficits in the advanced industrial countries and trade surpluses in developing countries.
new technologies, software, robots, and miniaturization.
movement of industrial facilities away from downtown areas and toward suburban areas.

Question 15

Which of the following is not a form of utility?
Form utility
Price utility
Place utility
Time utility
Ownership utility

Question 16

One of the key differences between service and manufacturing operations is
manufacturing products are characterized by intangibility and customization.
manufacturing operations feature a unique link between process and outcome.
manufacturing operations are less storable.
services are performed, but goods are produced.
services focus on the outcome of the production process.

Question 17

When a company uses an intensive distribution strategy, it is facilitating _________ utility.
ownership utility
form utility
place utility
interval utility
time utility

Question 18

When steel is turned into a finished good like a car, ________ utility has been created.
place
time
interval
ownership
form

Question 19

By making a product available for consumers to use, ________ is created.
price utility
place utility
ownership utility
time utility
form utility

Question 20

Suppose that you have no clean clothes, but you have a job interview tomorrow. You normally never use any other type of laundry detergent other than your regular brand. You find that it is currently sold out at your local convenience store, so you decide to buy the store brand because it best satisfies your need for
possession utility.
place utility.
time utility.
interval utility.
ownership utility.

Question 21

This transformation process puts together various components and is common in the electronics, appliance, and automotive industries. It is the
clerical process.
transport process.
chemical process.
fabrication process.
assembly process.

Question 22

You have gone to the doctor to check out some recent pains. The quality of her expertise to find and diagnose the problem is an illustration of the unique service characteristic of
intangibility.
warrantees.
customization.
perishability.
past experience.

Question 23

In terms of business strategy as a driver of operations, Toyota uses the _________ strategy, while 3M uses the _________ strategy.
quality; dependability
flexibility; dependability
quality; flexibility
lower price; quality
lower price; flexibility

Question 24

In terms of business strategy as a driver of operations, 3M uses the _________ strategy, while FedEx uses the _________ strategy.
quality; dependability
flexibility; dependability
quality; flexibility
lower price; quality
lower price; flexibility

Question 25

This transformation process alters the basic composition of raw materials and is used in industries like aluminum, steel, fertilizer, petroleum, and paint. It is the
chemical process.
fabrication process.
transport process.
clerical process.
assembly process.

Question 26

Lumber companies convert raw lumber into dimensional lumber and paper products through a(n) ________ process.
synthetic
fabrication
assembly
analytic
chemical

Question 27

In a ______ system, the customer is an active participant, but in a ___________ system, the customer is not an active participant.
low-contact; high-contact
active; inactive
high-contact; low-contact
high-interaction; low-interaction
low-interaction; high-interaction

Question 28

This transformation process involves goods being sent from manufacturing sites to consumers through warehouses to retail locations. It is the
fabrication process.
chemical process.
clerical process.
assembly process.
transport process.

Question 29

Because FedEx emphasizes __________, it operations capabilities emphasize ______________.
quality; quality control procedures
dependability; wireless information system to track packages
low prices; cost control
flexibility; excess production capacity
dependability; quality control procedures

Question 30

When you have your hair cut and styled the way you like it, it illustrates the unique service characteristic of
unstorability.
customization.
past experience.
intangibility.
warranties.

Question 31

Which of the following transformation techniques mechanically alters the basic shape or form of the product?
Chemical process
Quality process
Fabrication process
Assembly process
Transport process

Question 32

Tyson reduces whole chickens into packaged parts through a(n) ________ process.
chemical
fabrication
synthetic
analytic
assembly

Question 33

Of the following products/services, which is the most tangible?
Child care
A restaurant meal
Car repair
Clothing
Dental work

Question 34

Carolyn's car needs a tune-up so she has taken it to her favorite mechanic for repair. This type of service system is a ________ system.
low-interaction
passive
high-interaction
low-contact
high-contact

Question 35

How does an analytic production process work?
It breaks down the basic resources into components.
A cost analysis is made to determine the best way to ship the product to another location.
It combines a number of raw materials into a finished product.
It puts together several components.
Raw materials are chemically altered.

Question 36

Car repair is classified as a low-contact system because
the customer has to wait for the repair work to be done.
the work that is done is highly technical and requires skilled technicians.
the customer does not have to be present in order for the service to be performed.
customer satisfaction is an important consideration in the provision of the service.
the statement is in error; car repair is NOT a low-contact system.

Question 37

What kind of transformation occurs in an assembly process?
Various components are transported from one location to another.
Data are combined into useable information for a management report.
Various components are put together to create a new product.
Finished products are taken apart for inspection.
Raw materials are mechanically altered.

Question 38

A public transit system is an example of a _________ process, while a cheque processing operation at a bank is a __________ process.
fabrication; chemical
transport; fabrication
high-contact; low-contact
low-contact; high-contact
goods producing; service producing

Question 39

This transformation process combines data on such items as employee absences, machine breakdowns, and inventory reports. It is the
assembly process.
fabrication process.
chemical process.
transport process.
clerical process.

Question 40

The production process which combines a number of raw materials into a new finished product (e.g., paint) is known as
creating place utility.
an analytic process.
a transformation process.
a synthetic process.
creating time utility.

Question 41

In a(n) ________ layout, equipment and people are grouped together according to their function.
assembly line
process
product
customer-oriented
flexible

Question 42

The layout that is efficient and simplifies work tasks and uses unskilled labor is the ________ layout.
customer
process
product
cellular
fixed-position

Question 43

The amount of a product that a company can produce under normal working conditions is its
capability.
scheduled capacity.
scheduled capability.
capacity.
normal capacity.

Question 44

In businesses like restaurants or supermarkets, the business is sized to meet a level of
normal demand.
low demand.
peak demand.
average demand.
high demand.

Question 45

The most important factor in location planning for high-contact businesses is ___________, but for low-contact business the most important factor in location planning is ____________.
availability of labor; proximity to customers
proximity to customers; community living conditions
community living conditions; transportation costs
transportation costs; proximity to resource supplies
proximity to customers; proximity to resource supplies

Question 46

What is the most logical sequence of steps in a production planning and control system?
Business plan, long range operations plan, operations control, operations schedules, output to customers
Operations control, operations schedules, output to customers, long range operations plan, business plan
Business plan, operations control, operations schedules, long range operations plan, output to customers
Business plan, long range operations plan, operations schedules, operations control, output to customers
Business plan, operations control, operations schedules, output to customers, long range operations plan

Question 47

All of the following are characteristics of soft manufacturing except
emphasis on computer software and computer networks.
automation is used only for highly repetitive tasks.
robots play a supporting role in the manufacturing process.
it allows for customizability of the end product.
focus on production machines.

Question 48

In a custom cake bakery, blending of ingredients is done in the mixing area, baking occurs in the oven area, and decorations are applied in the finishing area. This is an example of which layout?
Cellular
Customer
Process
Fixed-position
Product

Question 49

Meredith is creating an operations planning and control system for a manufacturer. What should she do first?
Conduct production control
Develop a long-range production plan
Send output to customers
Develop production schedules
Review the company's business plan

Question 50

What is one reason why it is a bad idea for a company to have excess capacity?
Wastes raw materials
Increases customer dissatisfaction
Ties up money in extra machines
Decreases form utility
Slows delivery of product

Question 51

A clothing manufacturer that sets up an area for making different kinds of pockets, another area for sleeves, and another for collars, is using the ________ layout.
product
fixed-position
process
customer
cellular

Question 52

The typical layout in automobile, food-processing, and computer assembly plants is the ________ layout.
product
cellular
process
customer
fixed-position

Question 53

The number of customers that Bob's Barbecue serves varies considerably from hour to hour. In determining the number of cash registers to install, they should use
average demand.
peak demand.
low demand.
high demand.
normal demand.

Question 54

In low-contact systems, capacity should be set ____________ the average level of demand, while in high-contact systems managers must plan to meet __________ demand.
less than; peak
more than; peak
equal to; average
equal to; peak
less than; average

Question 55

Most firms plan to be able to produce ________ product than is normally demanded.
substantially more
slightly less
slightly more
the same amount of
substantially less

Question 56

Mega Computers services and upgrades the computers that it sells. In sizing its service operations it should use
peak demand.
average demand.
low demand.
high demand.
normal demand.

Question 57

A cellular layout is
a production system in which a single factory uses automation to produce a wide variety of products.
a spatial arrangement of production activities that groups equipment and people according to function.
a method for analyzing a service by showing the flow of processes that constitutes it.
a spatial arrangement of production activities designed to make one type of product in a fixed sequence.
a spatial arrangement of production facilities designed to move families of products through similar flow paths.

Question 58

In ______systems, capacity should be set at the level of ______, while in ______ systems, capacity should be set at the level of ______.
high-contact; peak demand; low-contact; average demand
low-contact; peak demand; high-contact; average demand
low-contact; peak demand; low-contact; average demand
high-contact; average demand; high-contact; peak demand
None of these

Question 59

A product layout is
a spatial arrangement of production activities designed to make one type of product in a fixed sequence.
a spatial arrangement of production activities that groups equipment and people according to function.
a method for analyzing a service by showing the flow of processes that constitutes it.
a spatial arrangement of production facilities designed to move families of products through similar flow paths.
a production system in which a single factory uses automation to produce a wide variety of products.

Question 60

What is an option for companies that want to have a capacity to meet peak demand?
Plan for peak demand by having, for example, all cash registers open 3 days before Christmas
Use a qualitative forecast to determine average demand
Attempt to meet most, but not all, peak demands
Plan for normal demand
Lower prices of the products that are being produced

Question 61

Ed's job responsibilities include the receiving, storing, handling, and counting of all raw materials. He is probably in the ________ function.
inventory control
transportation
quality control
warehousing
purchasing

Question 62

Planning, organizing, and controlling the flow of materials from design through distribution of finished goods is
quality control.
material requirements planning.
statistical process control.
materials management.
inventory planning and control.

Question 63

Just-in-time (JIT) production systems
may lead to increased inventory obsolescence.
have been widely used since the Great Depression of the 1930's.
bring together all the needed materials and parts at the precise moment they are required for each production stage, not before.
keep inventory levels high so deliveries to customers can be made just in time.
increase the number of goods in process and save money by replacing stop-and-go production with smooth movement.

Question 64

Bill is working with a system that uses a bill of materials to project the number of components and raw materials needed. It also specifies when they need to arrive. He is most likely using
warehousing.
master production scheduling.
material requirements planning.
just-in-time.
inventory control.

Question 65

What does a just-in-time production system attempt to accomplish?
Materials and parts needed at each production step are brought together at the right time
Attempts to control the overall production process
Shows when production must be completed to satisfy consumer demand just-in-time
Shows the critical path where production problems will be the most damaging to the schedule
Breaks down the production process into steps necessary for completion

Question 66

________ is a measure of economic performance that compares how much is produced relative to the resources used to produce it.
Re-engineering
Services
Total quality management
Productivity
Quality

Question 67

Nissan, Toyota, and Honda now build several different models of cars using the same basic "platform." This is an example of
process layout.
soft manufacturing.
flexible manufacturing systems.
the movable factory.
quality control.

Question 68

The schedule that shows which products will be produced, when production will occur, and what resources will be used during specified time frames is called a(n)
inventory control schedule.
master production schedule.
control chart.
short-term detailed production schedule.
material requirements plan.

Question 69

What is the difference between soft manufacturing and lean manufacturing?
Soft manufacturing relies less on computers than lean manufacturing does.
Lean manufacturing has been shown to be more effective than soft manufacturing.
Soft manufacturing is based on the idea that machines can generally do better work than humans, while lean manufacturing is based on the opposite assumption.
Lean manufacturing emphasizes efficiency, while soft manufacturing emphasizes effectiveness.
There are no differences between the two concepts.

Question 70

The major objective of JIT is to
minimize the number of different parts being used.
minimize stock-outs of raw materials.
minimize inventory costs.
ensure smooth production operations.
improve the quality of incoming raw materials and parts.

Question 71

What is the meaning of "operations control"?
Planning and organizing the flow of materials
Purchasing the right raw materials, in the right quantity, at the right price, and at the right time
Checking to ensure that production decisions are being implemented
Stocking items needed for production that are themselves produced within the firm
Monitoring production performance by comparing results with plans and schedules

Question 72

A ______ diagrams steps to be performed and specifies the time required to complete each step.
master production schedule
Gantt chart
PERT chart
materials requirement planning document
methods improvement system

Question 73

What advantages are obtained from the use of a just-in-time inventory system?
Suppliers can be less quality conscious and thus will have lower costs
The production system becomes an intermittent process
The warehousing function increases in importance
The number of goods in process is drastically reduced
Quality of finished products increases

Question 74

John's job responsibilities include the acquisition of all the raw materials and services that the company needs to produce its products. He is most likely in the ________ function.
warehousing
transportation
quality control
inventory control
purchasing

Question 75

What is the difference between a Gantt chart and a PERT chart?
Gantt charts are used for planning service activities, while PERT charts are used for planning production activities.
PERT charts show the critical path for meeting project goals, but Gantt charts do not.
Gantt charts focus more on efficiency, while PERT charts focus more on effectiveness.
PERT charts were formerly used more widely than Gantt charts, but the reverse is now true.
There actually is no difference between Gantt charts and PERT charts; they are both used to schedule activities.

Question 76

The management of the production process designed to manufacture goods or supply services that meet specific quality requirements is called
just-in-time.
inventory control.
quality control.
material requirements planning.
master production scheduling.

Question 77

Mount Sinai Hospital no longer keeps any inventory. It is using
material requirements planning.
warehousing.
master production scheduling.
just-in-time inventory.
zero tolerance inventory control.

Question 78

Tom is concerned with the storage of both incoming materials for production and finished goods for distribution to customers. Tom's job is in the ________ area.
inventory control
purchasing
transportation
warehousing
quality control

Question 79

Once plans identify needed resources and how they will be used to reach a firm's goals, managers must develop timetables for acquiring resources for production. This aspect of operations is called
resourcing.
planning.
timing.
controlling.
scheduling.

Question 80

Betty is a production supervisor in a leather goods factory. Her main responsibility is operations control. Betty would probably be most concerned with
determining what products to produce.
deciding how to produce products.
deciding on product pricing.
ensuring that production plans or schedules are met.
deciding where to produce the products.