Deck 8: Managing Operations and Supply Chains

Question 1

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

Answer 1

False

Question 2

Modular design, an operations process for manufacturing products, allows products to be repaired quickly, thus reducing the cost of labor.

Answer 2

True

Question 3

Lora is a manager at a large car dealership and service shop. She oversees the transformation process and manages the logistics, quality, and productivity of the service department. Lora is a(n)

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

Answer 3

operations manager.

Question 4

Catherine is the operations manager of a new day spa in an upscale urban neighborhood. Customers in this neighborhood expect high quality services and products, and Catherine is struggling to use the spa's resources efficiently and effectively to provide the level of quality the customers demand. What will most likely happen if Catherine can't find a way to meet customers' demands for quality?

A) The spa will be forced to move to a less demanding neighborhood.
B) The spa will be taken over by competitors in the area.
C) The spa will stay in business, and customers will adapt to its services and products.
D) The spa will be converted into a different type of business that can succeed in this area.
E) The spa will go out of business.

Question 5

Gray is a carpenter who performs home repairs and improvements for his customers. From the perspective of operations, the money he uses to purchase his tools and the electricity he uses to run his power saw are

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

Question 6

Ophelia and her father have been building rustic furniture for family and friends since she was little. As an adult, Ophelia decides to start her own furniture company. From the perspective of operations, the beds, tables, chairs, and dressers she builds are

A) capital.
B) inputs.
C) equipment.
D) outputs.
E) processes.

Question 7

Mario is the head chef at an Italian restaurant. He imports many of his ingredients from Italy and prepares them using family recipes that have been passed down for generations. From the perspective of operations, the food he sells to customers and the authentic Italian atmosphere he provides are

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

Question 8

Marta is a makeup artist who works in a salon and travels to provide her services to clients at weddings and other events. As part of her services, she gives her clients lipstick, blotting sheets, and face powder, so they can touch up their makeup throughout the event. Her biggest expenses are the cost of the items she gives to clients, the cost of keeping her makeup kit stocked with a variety of colors, travel expenses to get to the events, and her time. Which is considered an input?

A) the lipstick, blotting sheets, and face powder she gives to clients
B) the makeup services she provides in the salon
C) the makeup services she provides at events
D) her time and money
E) her creative application of makeup to make her clients look perfect for any event

Question 9

Krista is an operations manager at a hotel. Her hotel has a standard of 80 percent of rooms being ready when guests arrive to check-in. However, she recently collected feedback to check on the hotel's efficiency and found that only 70 percent were ready on time. What might Krista do to resolve this 10 percent negative deviation?

A) make adjustments to the cleaning schedule to ensure that rooms will be available by check-in time
B) make the check-in time later to match when rooms are ready
C) add a disclaimer that all check-in times are approximate and subject to change
D) move the check-out time later to satisfy guests who can't get into their rooms when expected
E) offer a complimentary meal to guests who can't get into their rooms when expected

Question 10

Terrence works for a business that manufactures industrial metal clocks. All of the following are processes the clock maker must pass the inputs through before they are turned into the final outputs-clocks for his customers-EXCEPT

A) cutting metal sheets into circles for the clock center, numbers, and clock hands.
B) welding the metal pieces together to form the clock's basic design.
C) selling the finished clocks to customers.
D) heating and shaping repurposed metal into the clock frame.
E) applying metal sealant to keep the metal from rusting or oxidizing.

Question 11

All of the following are processes through which an airline transforms inputs such as employees, time, money, and equipment EXCEPT

A) maintaining equipment.
B) booking flights.
C) flying airplanes.
D) training crews.
E) eliminating food service.

Question 12

Helping Hands, a nonprofit organization, uses money, groceries, and volunteer time and labor to transform food into hot prepared meals for needy families. In this setting, which is a transformation process?

A) paying rent for a cooking facility
B) traveling abroad to find less expensive ingredients
C) tasting the meals to make sure they are satisfactory
D) giving families raw ingredients and expecting them to prepare meals themselves
E) fundraising and promoting the cause to gain new volunteers and food donations

Question 13

Health care, real estate, and tax preparation are all examples of ________ services.

A) low-contact
B) impersonal
C) low-level
D) high-contact
E) tangible

Question 14

At the Medieval Mansion Restaurant, diners expect an authentic medieval dining experience. The wait staff are in character and dress in authentic medieval clothing, the walls of the restaurant are covered with art from the Middle Ages, and as diners eat Medieval-era foods, they are entertained by troubadours and performers. What type of service does this restaurant provide?

A) low-contact
B) high-contact
C) high-tech
D) low-level
E) tangible

Question 15

Service organizations must build their operations around good execution, which comes from all of the following EXCEPT

A) providing services that can be saved, stored, resold, or returned.
B) hiring and training excellent employees.
C) customizing services.
D) developing flexible systems.
E) maintaining adjustable capacity to deal with fluctuating demand.

Question 16

Amir runs an arena that hosts sporting and music events. When booking these events, he must consider how many people would be interested in buying tickets. Based on the demand, he must set his ticket prices at the appropriate level. Which challenge is associated with providing this type of service?

A) It is difficult to determine the appropriate level of customer contact required when providing such a service.
B) With services like this, it is difficult to ensure that the produced outputs will be worth more than the combined costs of the inputs.
C) It is difficult to accurately estimate the demand to match the right supply of a service.
D) When providing this type of service, it is difficult to balance in-person and online ticket sales.
E) It is difficult to convince customers to spend money on tangible services like this.

Question 17

What is a defining characteristic of a service?

A) The outcome of a service is tangible.
B) The delivery of a service requires little customer contact.
C) The performance of a service occurs at the point of consumption.
D) Demand for a service is easy to calculate.
E) Services do not undergo a transformation process.

Question 18

A local hospital studies the manufacturing processes and quality control mechanisms applied in the automotive industry in an effort to improve its own service quality. By analyzing work processes to find unnecessary steps to eliminate and using teams to identify and address problems as soon as they occur, this hospital could do all of the following EXCEPT

A) increase inventories of wheelchairs.
B) slash patient waiting times.
C) ready operating rooms sooner.
D) move patients through their hospital visit more quickly.
E) move patients through their hospital visit with fewer errors.

Question 19

When customers go to Cut and Go Salon, they must rely on the different talents of the stylists to achieve the cut they desire. In comparison, the manufacturer that produces Vibrancy Shampoo has more control over the amount of variability of the resources it uses to create its shampoos. Which difference between manufacturers and service providers does this scenario relate to?

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

Question 20

Star Treatment has a chain of luxury hotels and resorts across the globe. Life Vision is a pharmaceutical company known for its breakthrough life-saving drugs. How do the two businesses differ from each other?

A) Star Treatment is more capable of customizing its products when compared to Life Vision.
B) Star Treatment is able to keep its output standardized, whereas Life Vision cannot.
C) Star Treatment has less contact with its customers when compared to Life Vision.
D) Star Treatment is able to incorporate quality standards, whereas Life Vision cannot.
E) Star Treatment, unlike Life Vision, does not produce its output at the point of consumption.

Question 21

Brad is an appliance repair technician. He usually fixes between 5 and 10 appliances per day, so he interacts with a lot of customers with a variety of appliance issues. Brad's job is

A) capital-intensive.
B) standardized.
C) labor-intensive.
D) uniform in terms of inputs.
E) uniform in terms of output.

Question 22

Service providers are often more limited than manufacturers in selecting work methods, assigning jobs, scheduling work, and exercising control over operations because

A) services are not labor-intensive.
B) services are highly standardized.
C) services cannot be customized.
D) of their tangibility.
E) of their need for customer contact.

Question 23

Which description is most accurate regarding the differences between manufacturers and service providers?

A) Service providers have more control over the amount of variability of the resources they use than manufacturers do.
B) For service providers, measuring productivity is fairly straightforward, whereas for manufacturers measuring productivity is more complicated.
C) Manufacturers can separate the production of a product from its actual use, whereas the service dimension requires closer contact with the consumer.
D) The products of manufacturers tend to be more customized than those of service providers.
E) Manufacturers make more contact with their customers when compared to service providers.

Question 24

Which scenario reflects the capital-intensive nature of a manufacturer?

A) A lawyer provides varying services that include consulting clients on legal documents, preparing legal documents for clients, and representing clients in court.
B) An electrician goes into customers' homes and fixes a variety of expensive electrical issues.
C) Computers R Us provides temporary support personnel to help new customers use its products.
D) Underfoot offers customers many flooring options, and their prices include installation.
E) Brew Master mass produces coffee makers with multiple settings, so customers can choose whether they want to brew a cup, two cups, or an entire pot using the same machine.

Question 25

Motorworks is a reputable automobile manufacturing company, and Sunny Days is an established chain of travel agencies. How do the two businesses differ from each other?

A) While Sunny Days is able to incorporate quality standards in its business, Motorworks cannot.
B) Measuring productivity is fairly straightforward for Motorworks when compared to Sunny Days.
C) Standardizing output is easier for Sunny Days when compared to Motorworks.
D) Motorworks faces a higher degree of variation of inputs and outputs when compared to Sunny Days.
E) Motorworks has more customer contacts than Sunny Days.

Question 26

A company is determining the demand for a new product and how much consumers are willing to pay for it. In order to do this, the company should use

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

Question 27

Regardless of who is responsible for product design, ________ does not stop with a blueprint for a product or a description of the service; it must also work out efficient production of the product to ensure that enough is available to satisfy customer demand.

A) development
B) manufacturing
C) planning
D) testing
E) evaluation

Question 28

Armor Solutions Inc. is a manufacturer of external hard drives. All hard drives sold under the brand name Armor 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 29

Zach is a mechanic who fixes Toyota cars. He orders parts directly from Toyota because its parts are created specifically to fit and function properly in its vehicles. Which advantage of standardization does this scenario illustrate?

A) The customer gets exactly what he or she wants.
B) Zach can charge more for a standardized product than a custom-designed product.
C) Standardized products function uniformly all the time, so customers get a product that meets their expectations.
D) Customers have more choices available to them.
E) Customers can mix and match components for a customized design.

Question 30

Tracy and Jim want to buy their first home. Since they travel a lot, they are looking for a mobile tiny home. In their search, they find a manufacturer who builds tiny homes using modular design. All of the following are benefits of building their home this way EXCEPT

A) they can mix and match components to get exactly the home they want.
B) their home will cost about one-fourth the cost of a conventionally build house.
C) their future home repairs can be done quickly, reducing the cost of labor.
D) if any portion of a modular component of their home fails, they can repair the component instead of needing to replace it.
E) if they decide to change their home in the future, they can add new modules.

Question 31

Luxe Designs Inc. is a premium jeweler. It has a team of jewelry experts who design jewelry for each client from scratch. Everything is made to meet the specific requirements of the clients, and no two jewelry pieces produced by this company are ever identical. This is an example of

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

Question 32

Marissa has just joined a gym. As part of her membership, she gets a free personal training session to determine her current fitness level, and the results are used to develop a fitness plan that will help her meet her goals. Marissa can choose between several personal training programs, small group programs, and fitness classes. This is an example of

A) standardization.
B) modular design.
C) component planning.
D) consistent service.
E) mass customization.

Question 33

A secure, public ledger that records all transactions and is spread across multiple computers is referred to as

A) the blockchain.
B) total quality management.
C) a router.
D) a JIT system.
E) a material-requirements plan.

Question 34

The emergency department at Seaside hospital can effectively handle a maximum number of 20 patients at any one particular time. This is referred to as its

A) design.
B) variability.
C) capacity.
D) perishability.
E) utility.

Question 35

Ivan is an operations manager of a chain of amusement parks. Before she determines a new location for a park, she must forecast what the customer demand will be, so she can determine the appropriate capacity. Why is it important for Ivan to efficiently plan the park's capacity needs?

A) Capacity levels that fall short can drive operation costs up due to unused and expensive resources.
B) Once a capacity decision has been implemented, changing the decision can incur substantial costs.
C) When there is more capacity available than needed, the organization may lose customers.
D) Too much capacity can result in unmet demand.
E) Capacity should reflect future demand and stakeholder desires from the beginning because adjusting for these things later is impossible.

Question 36

What factor should an organization take into consideration when planning the location of its manufacturing facility?

A) Customers prefer to have production facilities located nearby.
B) Most customer contacts occur in manufacturing facilities.
C) Manufacturing plants located in urban areas will increase a firm's reputation.
D) Facility decisions are fairly straightforward and involve few outside variables.
E) Facility decisions are complex and costly for an organization.

Question 37

Valerie owns a chain of pet stores and wants to open a new location. All of the following are factors she should consider EXCEPT

A) exactly how many sales she will get in the new location.
B) proximity to market.
C) availability of labor.
D) taxes and inducements.
E) community characteristics.

Question 38

Affordable Apartments, a manufacturer that builds large apartment complexes, brings all the construction resources to a central location during production. This type of a facility layout is called a(n) ________ layout.

A) fixed-position
B) product
C) line
D) continuous
E) intermittent

Question 39

Black Gold, an oil drilling plant, uses a fixed-position layout because it is involved in large, complex projects, exploring the ground for oil deposits. As a result, this company may be called a(n) ________ organization.

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

Question 40

A furniture manufacturer makes dining tables and chairs. The plant has a wood cutting department, an assembly department, and a staining department. This plant is using a ________ layout to organize its facility.

A) fixed-position
B) project
C) process
D) geographical
E) skill-level

Question 41

Patio Products, a company that produces metal patio furniture, uses a process layout with several departments that group related processes. All of the following could be process departments in this company EXCEPT a(n) ________ department.

A) cutting
B) welding
C) painting
D) polishing
E) marketing

Question 42

A hospital that has a laboratory, an emergency department, an intensive care unit, and other departments would best be classified as a(n) ________ organization.

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

Question 43

Logo Designs creates promotional products for small companies. It takes a customer's logo and places it on products such as drawstring bags, coffee mugs, and pens. It produces relatively few units of each product. Because of the low level of output it produces, this company charges a higher price per unit of the product. What type of organization is Logo Designs?

A) a fixed organization
B) a project organization
C) an intermittent organization
D) a process organization
E) a service organization

Question 44

Tech Industries Inc. is a manufacturer of computer monitors. It uses a facility layout in which the workers remain in one location, and the monitors move from one worker to another. Each person in turn performs his or her required tasks. Thus, Tech Industries is using a ________ layout.

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

Question 45

Daniel owns a construction company that builds homes. To help his customers visualize the types of homes he can build for them, he designs five different models on the computer, using 3D printing to develop 3D paper models. What type of technology is Daniel using to develop these 3D models?

A) computer-assisted manufacturing
B) flexible manufacturing
C) computer-integrated manufacturing
D) computer-assisted design
E) drones

Question 46

A large nuclear power plant uses "steel-collar" workers in the transformation process because having humans perform these tasks would put them at risk. What are these "steel-collar"
Workers called?

A) computers
B) machines
C) 3D models
D) drones
E) robots

Question 47

Enviro Bath is dedicated to green technology and sustainability. As a result, it produces toilets and showers that are designed to conserve water. Doing so not only protects the environment, but it can also

A) decrease customer loyalty.
B) damage the firm's reputation.
C) cause stakeholders to protest.
D) lead to improved profits.
E) decrease the company's profits.

Question 48

When a furniture manufacturer buys the lumber and other raw materials, machines and equipment, manufacturing supplies, and office supplies needed to build its furniture pieces, this is called

A) consumption.
B) logistics.
C) capacity management.
D) procurement.
E) operations.

Question 49

Bethany is an inventory manager for a shoe store. She must determine how many pairs of each style of shoes, boots, and sandals to hold in inventory. All of the following are variables she should consider EXCEPT

A) her shoe style preferences.
B) the usage rate of the shoes, boots, and sandals.
C) the cost of maintaining the shoes, boots, and sandals in inventory.
D) future costs of inventory.
E) the cost of the shoes, boots, and sandals themselves.

Question 50

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 the company reduce costs and boost efficiency. This scenario best illustrates

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

Question 51

At Killer Kayaks, the inventory-control manager uses material-requirements planning and schedules the precise quantity of materials needed to make all the kayaks the company plans to build each month. What basic component does the inventory-control manager need to create as part of material-requirements planning?

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

Question 52

All of the following are advantages of outsourcing EXCEPT it

A) improves product quality.
B) speeds up the time it takes products to get to the customer.
C) frees companies from having to focus on customer satisfaction.
D) makes the supply chain more efficient.
E) gives companies a competitive advantage.

Question 53

Vibo, a company that does online marketing for small businesses, wants to achieve a high level of quality in the services it provides. As a result, it sets a goal of winning the Malcolm Baldrige National Quality Award. Which is one of the criteria the company must meet to receive this award?

A) inseparability of production and consumption
B) product management
C) business results
D) capacity
E) agility

Question 54

What is an advantage of making a product correctly from the outset?

A) It allows employees to make better use of their time and materials.
B) It gives the company more time to rework defective products.
C) It makes the transformation process slower and more deliberate.
D) It allows the company to pinpoint quality problems in the production system.
E) It eliminates the need to make other products.

Question 55

What is an example of an elaborate inspection technique?

A) weighing the contents of a box of crackers
B) using chemical tests to determine the quality of a migraine medication
C) measuring the time it takes for a customer to receive his or her pizza
D) inspecting chocolate bars to make sure they are wrapped properly
E) checking chip bags to make sure they are sealed properly

Question 56

Discuss the challenges faced by a service organization during the management of its operations.

Question 57

Nolan and his friend Peter intend to establish their own ventures. While Nolan intends to establish a manufacturing company, Peter intends to establish a multi-specialty hospital. In the context of planning the facilities for their ventures, discuss the types of facility layout that should be implemented by both, prior to the establishment of their ventures.