Deck 11: Managing Operations

Question 1

________ refers to the transformation process that converts resources such as labour and raw materials into finished goods and services.

A)Control management
B)Transformation management
C)Systems management
D)Operations management
E)Planning management

Answer 1

D

Question 2

According to the textbook, it is easy to see the operations management process at work in service organisations.

Answer 2

False

Question 3

If a local bakery and cafe bakes bread and cakes for both retail and wholesale sale and also runs a cafe where you can get breakfast, lunch or morning or afternoon teas it would be considered to be ________.

A)a manufacturing organisation
B)a tertiary organisation
C)both a service and manufacturing organisation
D)a service organisation
E)a primary organisation

Answer 3

C

Question 4

'Productivity' includes the overall output of goods and services that is then divided by the inputs.

Question 5

It is estimated that in Australia, approximately 35 per cent of all private-sector jobs are in service industries.

Question 6

For organisations to improve productivity, they should focus on which of the following?

A)it depends on the industry
B)operations variables only
C)product price
D)people and operations
E)people only

Question 7

According to the textbook, it is estimated that in Australia approximately ________ of all economic activity are in service industries.

A)68 per cent
B)74 per cent
C)58 per cent
D)70 per cent
E)80 per cent

Question 8

Which of the following is an accurate statement relevant to operations management principles?

A)Labour is part of the transformation stage and is not considered an input.
B)Operations management concerns the input stage of product development.
C)The outputs of the operations system include both goods and services.
D)Operations managers are not found in the service sector.
E)Output equals capital times materials.

Question 9

________ takes inputs and transforms them through various processes into finished goods and services.

A)Operations management
B)The value chain
C)The operations system
D)Transformation management
E)The output system

Question 10

'Operations management' refers to the design, operation and control of the transformation process that utilises labour and machines to produce outputs.

Question 11

'Productivity' includes the overall output of goods and services that is then ________ the inputs.

A)added to
B)divided by
C)subtracted from
D)multiplied by
E)squared with

Question 12

All of the following are examples of outputs as described by an organisation's operations system EXCEPT ________.

A)sales
B)technology
C)accounting reports
D)motivated employees
E)high rates of return on capital

Question 13

'Operations management' refers to the transformation process that converts resources such as labour and raw materials into finished goods and services.

Question 14

According to the textbook, it is easy to see the operations management process at work in ________.

A)consulting organisations
B)service organisations
C)financial organisations
D)manufacturing organisations
E)technological organisations

Question 15

For organisations to improve productivity, they should focus on people and operations.

Question 16

Indicate which one of the following is NOT mentioned in the textbook as a reason why operations management is important to organisations and managers?

A)It plays a strategic role in an organisation's competitive success.
B)It encompasses social responsibility and ethics.
C)It is important in effectively and efficiently managing productivity.
D)It encompasses both services and manufacturing.
E)both B and C

Question 17

All of the following are examples of inputs as described by an organisation's operation system EXCEPT ________.

A)capital
B)information
C)sales
D)materials
E)technology

Question 18

According to the textbook, in Australia in the automotive market productivity per employee for PMVs (personal motor vehicles)improved from around ________ per employee in 1991 to something over ________ per employee in 2003.

A)8; 25
B)11; 17.5
C)10; 11.5
D)6.5; 8
E)There was no improvement in those years.

Question 19

Which of the following is NOT an example of an input as described by an organisation's operations system?

A)accounting reports
B)equipment
C)technology
D)people
E)capital

Question 20

Deming believed that managers were the primary source of increased productivity.

Question 21

All of the following are mentioned as Deming's 14 Points for Improving Management's Productivity EXCEPT ________.

A)deal with the best and least number of customers
B)drive out fear
C)encourage departments to work closely together
D)raise the quality of your line supervisors
E)plan for the long-term future

Question 22

Which of the following statements is true regarding manufacturing management activities from the late 1940s through the mid-1970s?

A)By the late 1970s, manufacturers were in a crisis.
B)It was most companies' primary focus.
C)Germany and the United States had similar experiences in this area.
D)It was a critical factor in management career promotion.
E)The United States remained the world leader in this area.

Question 23

Scenario-based questions: Non-Deming
On Monday, the big news arrived.Bob's company announced they would be implementing a Total Quality Management system in their company.Their goals, they said, were to 'plan for the now, impress stockholders and take advantage of this system for increasing short-term profits.Those who don't agree can begin looking for a new job'.Bob, along with everyone else, grumbled under his breath.What in the world was top management thinking? Their 'zero quality defects' program had failed and now they were jumping on this new bandwagon.Training was non-existent in the company and managers were fond of pushing responsibility for these programs down to the lowest level.Top management was happy with the quality of the product and now they wanted total quality concerning the employees.At lunch, he read the note board, which said, 'Statistical process control classes will begin immediately, see your supervisor for a training date'.Bob sighed and wondered what fad was next.
Refer to Non-Deming (Scenario).Which of the following is true concerning Deming's view about training?

A)Training is a second-tier concern.
B)Train employees in new skills as the need arises.
C)Training is overemphasised in most organisations.
D)Train supervisors in statistical methods.
E)Train workers for future jobs, rather than current jobs.

Question 24

Scenario-based questions: Operations Management
Celeste had been asked to attend training in operations management.Her background and training had previously been in accounting, but with the reorganisation looming, it was either learn a new skill or be made redundant.She was actually looking forward to the training.She felt her background with numbers should prove valuable in operations management, but she admitted that she knew little about the field.Until now, she had been in a support staff function and had little feel for how their product went from raw materials to finished product.Celeste's first class would be tonight at the Australian Institute of Management and she was excited about the opportunity.
Refer to Operations Management (Scenario).Celeste must remember that productivity is a composite of ________ variables.

A)structural and procedural
B)people and operations
C)market and internal
D)task and relationship
E)unpredictable

Question 25

Which of the following is NOT one of Deming's 14 Points for Improving Management's Productivity?

A)Encourage departments to compete.
B)Train your employees to understand statistical methods.
C)Train your employees in new skills as the need arises.
D)Make top managers responsible for implementing the 14 principles.
E)Drive out fear.

Question 26

Which of the following is NOT one of Deming's 14 Points for Improving Management's Productivity?

A)Deal with the best and least number of suppliers.
B)Train workers for the job that you are asking them to perform.
C)Do not be complacent concerning the quality of your product.
D)Plan for the immediate future.
E)Establish statistical control over your product processes.

Question 27

Where did the modern era of manufacturing begin?

A)Wall Street stock brokerage houses
B)automobile factories
C)the coal industry
D)fishing industry
E)US southern cotton mills

Question 28

Scenario-based questions: Operations Management
Celeste had been asked to attend training in operations management.Her background and training had previously been in accounting, but with the reorganisation looming, it was either learn a new skill or be made redundant.She was actually looking forward to the training.She felt her background with numbers should prove valuable in operations management, but she admitted that she knew little about the field.Until now, she had been in a support staff function and had little feel for how their product went from raw materials to finished product.Celeste's first class would be tonight at the Australian Institute of Management and she was excited about the opportunity.
Refer to Operations Management (Scenario).Until now, Celeste had thought more about 'profitability' than 'productivity'.She found it hard to remember that the formula for productivity was 'the overall output of goods and services produced ________ the inputs needed to generate that output'.

A)multiplied by
B)added to
C)subtracted from
D)squared with
E)divided by

Question 29

Deming believed which of the following about productivity?

A)High productivity comes from good people management.
B)Employees should learn movement efficiency, not statistical methods.
C)Managers are the primary source of increased productivity.
D)Training is generally wasted time.
E)Zero defects should be the ultimate quality goal.

Question 30

Scenario-based questions: Non-Deming
On Monday, the big news arrived.Bob's company announced they would be implementing a Total Quality Management system in their company.Their goals, they said, were to 'plan for the now, impress stockholders and take advantage of this system for increasing short-term profits.Those who don't agree can begin looking for a new job'.Bob, along with everyone else, grumbled under his breath.What in the world was top management thinking? Their 'zero quality defects' program had failed and now they were jumping on this new bandwagon.Training was non-existent in the company and managers were fond of pushing responsibility for these programs down to the lowest level.Top management was happy with the quality of the product and now they wanted total quality concerning the employees.At lunch, he read the note board, which said, 'Statistical process control classes will begin immediately, see your supervisor for a training date'.Bob sighed and wondered what fad was next.
Refer to Non-Deming (Scenario).Different from Bob's company, Deming suggested that ________ should be responsible for implementing total quality management principles.

A)middle managers
B)employees
C)top managers
D)supervisors
E)team leaders

Question 31

In a short essay, list 10 of Deming's 14 points for improving management's productivity.

Question 32

Scenario-based questions: Non-Deming
On Monday, the big news arrived.Bob's company announced they would be implementing a Total Quality Management system in their company.Their goals, they said, were to 'plan for the now, impress stockholders and take advantage of this system for increasing short-term profits.Those who don't agree can begin looking for a new job'.Bob, along with everyone else, grumbled under his breath.What in the world was top management thinking? Their 'zero quality defects' program had failed and now they were jumping on this new bandwagon.Training was non-existent in the company and managers were fond of pushing responsibility for these programs down to the lowest level.Top management was happy with the quality of the product and now they wanted total quality concerning the employees.At lunch, he read the note board, which said, 'Statistical process control classes will begin immediately, see your supervisor for a training date'.Bob sighed and wondered what fad was next.
Refer to Non-Deming (Scenario).Which of the following Deming points was Bob's company violating concerning their view of planning?

A)Train employees in new skills as the need arises.
B)Raise the quality of your supervisors.
C)Deal with the least number of good suppliers.
D)Never be complacent concerning product quality.
E)Plan for the long-term.

Question 33

The supply chain is the entire series of organisational work activities that add value at each step beginning with the processing of raw materials and ending with finished product in the hands of end users.

Question 34

Scenario-based questions: Non-Deming
On Monday, the big news arrived.Bob's company announced they would be implementing a Total Quality Management system in their company.Their goals, they said, were to 'plan for the now, impress stockholders and take advantage of this system for increasing short-term profits.Those who don't agree can begin looking for a new job'.Bob, along with everyone else, grumbled under his breath.What in the world was top management thinking? Their 'zero quality defects' program had failed and now they were jumping on this new bandwagon.Training was non-existent in the company and managers were fond of pushing responsibility for these programs down to the lowest level.Top management was happy with the quality of the product and now they wanted total quality concerning the employees.At lunch, he read the note board, which said, 'Statistical process control classes will begin immediately, see your supervisor for a training date'.Bob sighed and wondered what fad was next.
Refer to Non-Deming (Scenario).Deming, unlike Bob's company, suggested that a company should ________ concerning the quality of their product.

A)strive for 5 per cent defects
B)allow for moderate defects
C)strive for zero defects
D)always be complacent
E)never be complacent

Question 35

In a short essay, define 'operations management' and discuss the importance of this management process.

Question 36

Which of the following is NOT one of the 14 points from Deming for improving management's productivity?

A)Train your employees in new skills as the need arises.
B)Never be complacent concerning the quality of your product.
C)Raise the quality of your line supervisors.
D)Plan for a long-term future.
E)Deal with as many suppliers as possible.

Question 37

Deming outlined ________ points for improving management's productivity.

A)11
B)9
C)15
D)14
E)7

Question 38

Scenario-based questions: Operations Management
Celeste had been asked to attend training in operations management.Her background and training had previously been in accounting, but with the reorganisation looming, it was either learn a new skill or be made redundant.She was actually looking forward to the training.She felt her background with numbers should prove valuable in operations management, but she admitted that she knew little about the field.Until now, she had been in a support staff function and had little feel for how their product went from raw materials to finished product.Celeste's first class would be tonight at the Australian Institute of Management and she was excited about the opportunity.
Refer to Operations Management (Scenario).On the first night of class, Celeste learned that the central focus of 'operations management' was ________.

A)goods
B)the transformation process
C)people
D)capital
E)equipment

Question 39

Scenario-based questions: Operations Management
Celeste had been asked to attend training in operations management.Her background and training had previously been in accounting, but with the reorganisation looming, it was either learn a new skill or be made redundant.She was actually looking forward to the training.She felt her background with numbers should prove valuable in operations management, but she admitted that she knew little about the field.Until now, she had been in a support staff function and had little feel for how their product went from raw materials to finished product.Celeste's first class would be tonight at the Australian Institute of Management and she was excited about the opportunity.
Refer to Operations Management (Scenario).Celeste also had to keep in mind and understand what factors were considered inputs versus those considered outputs.Inputs included ALL BUT which of the following?

A)materials
B)people
C)technology
D)information
E)goods

Question 40

Scenario-based questions: Non-Deming
On Monday, the big news arrived.Bob's company announced they would be implementing a Total Quality Management system in their company.Their goals, they said, were to 'plan for the now, impress stockholders and take advantage of this system for increasing short-term profits.Those who don't agree can begin looking for a new job'.Bob, along with everyone else, grumbled under his breath.What in the world was top management thinking? Their 'zero quality defects' program had failed and now they were jumping on this new bandwagon.Training was non-existent in the company and managers were fond of pushing responsibility for these programs down to the lowest level.Top management was happy with the quality of the product and now they wanted total quality concerning the employees.At lunch, he read the note board, which said, 'Statistical process control classes will begin immediately, see your supervisor for a training date'.Bob sighed and wondered what fad was next.
Refer to Non-Deming (Scenario).Which of the following is a Deming point that Bob's company was definitely violating?

A)Teach employees to fear poor quality work.
B)Drive out fear.
C)Push employees to their greatest level.
D)Encourage stressful management.
E)Encourage fear in supervisors.

Question 41

All of the following are characteristics of value chain management EXCEPT ________.

A)it is effectiveness oriented
B)it is externally oriented
C)it is efficiency oriented
D)it focuses on both incoming materials and outgoing products and services
E)both A and B

Question 42

________ is the performance characteristics, features, attributes and any other aspects of goods and services for which customers are willing to give up resources.

A)Performance
B)Value
C)Conformance
D)Cost
E)Convenience

Question 43

Which of the following is NOT a characteristic of supply chain management?

A)It is efficiency oriented.
B)It is internally oriented.
C)It is effectiveness oriented.
D)It focuses on efficient flow of incoming materials to the organisation.
E)both A and B

Question 44

Scenario-based questions: Value Chain Management
Sandy is the new strategic manager for Solutions Tech Ltd, a management consulting firm dedicated to assisting small businesses in the pursuit of success.He is currently in a meeting with Rob, who is the owner of a successful small business that creates computer displays for major Australian and multinational companies.Sandy is reviewing the business strategy at Rob's business and has some recommendations.
Refer to Value Chain Management (Scenario).Sandy also tells Rob that there is a difference between a value chain and a supply chain.A value chain is ________ orientated whereas a supply chain is ________ orientated.

A)sales; profit
B)efficiency; effectiveness
C)internally; efficiency
D)profit; effectiveness
E)externally; internally

Question 45

In its entirety, the ________ can encompass the supplier's suppliers to the customer's customers.

A)supply chain
B)ethical chain
C)value chain
D)financial chain
E)technology chain

Question 46

The ________ is the entire series of organisational work activities that add value at each step, beginning with the processing of raw materials and ending with finished product in the hands of end users.

A)supply chain
B)value chain
C)financial chain
D)technology chain
E)ethical chain

Question 47

In contrast to ________ management, which is internally oriented and focuses on the efficient flow of incoming materials to the organisation, ________ management is externally oriented and focuses on both incoming materials and outgoing products and services.

A)service chain; value chain
B)supply chain; value chain
C)value chain; supply chain
D)supply chain; productivity chain
E)value chain; productivity chain

Question 48

According to a survey of manufacturers who have embarked on value chain management initiatives, which of the following was NOT one of the primary benefits cited in the textbook?

A)increased sales
B)improved procurement
C)improved logistics
D)improved product development
E)enhanced customer order management

Question 49

Scenario-based questions: Value Chain Management
Sandy is the new strategic manager for Solutions Tech Ltd, a management consulting firm dedicated to assisting small businesses in the pursuit of success.He is currently in a meeting with Rob, who is the owner of a successful small business that creates computer displays for major Australian and multinational companies.Sandy is reviewing the business strategy at Rob's business and has some recommendations.
Refer to Value Chain Management (Scenario).Before making any recommendations, Sandy informed Rob that a ________ is the entire series of organisational work activities that add value at each step beginning with the processing of raw materials and ending with finished product in the hands of end users.

A)ethical chain
B)technology chain
C)supply chain
D)value chain
E)financial chain

Question 50

'Value chain management' is the process of managing the entire sequence of integrated activities and information about product flows along the entire value chain.

Question 51

Managing an organisation from a value chain perspective means the managers decide what 'value' is.

Question 52

________ is the process of managing the entire sequence of integrated activities and information about product flows along the entire value chain.

A)Ethical chain management
B)Technological chain management
C)Financial chain management
D)Supply chain management
E)Value chain management

Question 53

'Supply chain management' is internally oriented and focuses on efficient flow of incoming materials to organisations.

Question 54

In its entirety, the value chain can encompass the supplier's suppliers to the customer's customers.

Question 55

'Value chain management' is externally oriented and focuses on both incoming materials and outgoing products and services.

Question 56

________ management is externally oriented and focuses on both incoming materials and outgoing products and services.

A)Technological chain
B)Ethical chain
C)Financial chain
D)Supply chain
E)Value chain

Question 57

According to a survey of manufacturers who have embarked on value chain management initiatives, ________ was a benefit that companies reported.

A)increased sales
B)cost savings
C)increased market share
D)improved logistics
E)decreased competition

Question 58

According to the textbook, ________ management is internally oriented and focuses on efficient flow of incoming materials to organisations.

A)value chain
B)technological chain
C)supply chain
D)ethical chain
E)financial chain

Question 59

In value chain management, it is ultimately ________ that are the ones with the power.

A)suppliers
B)distributors
C)customers
D)manufacturers
E)wholesalers

Question 60

According to a survey of manufacturers, there were four primary benefits of value chain management: improved procurement, improved logistics, improved product development and improved customer profitability.

Question 61

Which of the following is a question that should be asked for each and every organisational process?

A)Where can external knowledge be leveraged to improve the flow of material and information?
B)How can we better configure our product to satisfy manufacturers?
C)How can the cash flow be improved?
D)How can we improve customer service?
E)How can we reduce our staffing levels?

Question 62

Which of the following is NOT one of the three main human resource requirements for value chain management?

A)positive discipline procedures
B)flexible approaches to job design
C)an effective hiring process
D)ongoing training
E)both B and C

Question 63

According to the textbook, ________ is the key description of job design in a value chain organisation.

A)strategy
B)flexibility
C)structure
D)centralisation
E)innovation

Question 64

The ways in which organisational work is done is described as ________.

A)policies and procedures
B)goals and objectives
C)organisational processes
D)corporate visions
E)strategy implementation

Question 65

According to the textbook, 'innovation' is the key description of job design in a value chain organisation.

Question 66

The ways in which organisational work is done is described as 'organisational processes'.

Question 67

Which of the following is NOT mentioned in the textbook as a cultural attitude that supports the successful implementation of value chain management?

A)competition
B)flexibility
C)openness
D)mutual respect
E)collaborating

Question 68

According to the textbook, value chain management radically changes ________.

A)mission statements
B)corporate visions
C)corporate goals and objectives
D)ethical issues
E)organisational processes

Question 69

Which of the following is NOT mentioned in the textbook as a question that should be asked for each and every step in the organisational process?

A)How can we better configure our product to satisfy both customers and suppliers?
B)How can we improve customer service?
C)How can the flow of material and information be improved?
D)Where can internal knowledge be leveraged to improve the flow of material and information?
E)How can we make products cheaper?

Question 70

Scenario-based questions: Value Chain Management
Sandy is the new strategic manager for Solutions Tech Ltd, a management consulting firm dedicated to assisting small businesses in the pursuit of success.He is currently in a meeting with Rob, who is the owner of a successful small business that creates computer displays for major Australian and multinational companies.Sandy is reviewing the business strategy at Rob's business and has some recommendations.
Refer to Value Chain Management (Scenario).At the conclusion of the meeting, Sandy wanted to convince Rob that the value chain was very important and practical.Sandy briefly reviewed the results of a survey of manufacturers that had embarked on value chain management.Sharing the results of the survey with Rob, Sandy indicated that as well as improved logistics and improved product development, ________ was a benefit that companies reported on this survey.

A)increased sales
B)cost savings
C)increased market share
D)inventory reductions
E)enhanced customer order management

Question 71

All of the following are mentioned in the textbook as main requirements for successful value chain management EXCEPT ________.

A)leadership
B)employees
C)competition
D)organisational culture
E)collaboration

Question 72

Investment in which of the following types of information technology allows Dell Computer Corporation to meet customer's needs in a way that competitors have been unable to match?

A)the customer website
B)the supplier website
C)the corporate website
D)the company's intranet
E)an intranet site

Question 73

Scenario-based questions: Value Chain Management
Sandy is the new strategic manager for Solutions Tech Ltd, a management consulting firm dedicated to assisting small businesses in the pursuit of success.He is currently in a meeting with Rob, who is the owner of a successful small business that creates computer displays for major Australian and multinational companies.Sandy is reviewing the business strategy at Rob's business and has some recommendations.
Refer to Value Chain Management (Scenario).Noticing that Rob seemed a bit confused, Sandy informed Rob that ________ is the process of managing the entire sequence of integrated activities and information along the entire product chain.

A)value chain management
B)financial chain management
C)technological chain management
D)supply chain management
E)ethical chain management

Question 74

The training component as a human resource requirement for value chain management may include the following EXCEPT ________.

A)how to use information technology software
B)how to cut costs in training
C)how to improve flow of materials throughout the chain
D)how to identify new activities that add value
E)how to improve work activities

Question 75

All of the following are mentioned in the textbook as conclusions about how organisational process must change EXCEPT ________.

A)more employees with technical backgrounds need to be hired in order for the organisational process to change effectively
B)selected functions may need to be done collaboratively with other partners in the value chain
C)new measures are needed for evaluating performance of various activities along the value chain
D)better demand forecasting is necessary and possible because of closer ties with customers and suppliers
E)both C and D

Question 76

In a short essay, define 'value chain management' and compare it to 'supply chain management'.Next, discuss the goals of value chain management.

Question 77

The importance of leadership to value chain management is plain and simple - successful value chain management ________.

A)must have a strong leader at the helm
B)is relatively independent of leadership style
C)is a result of leadership
D)is not possible without strong leadership
E)depends on how long the leader is in the company

Question 78

Which of the following is NOT mentioned as a main requirement for successful value chain management?

A)competition
B)technology investment
C)coordination
D)organisational attitudes
E)organisational processes

Question 79

According to the textbook, value chain management can be successful with or without leadership's support.

Question 80

Proprietary company information that's critical to a company's efficient and effective functioning and competitiveness is called 'intellectual property'.