Deck 15: Managing Operations, quality, and Productivity

Question 1

Automation is a type of operational technology that is used only in manufacturing organizations.

Answer 1

False

Question 2

Firms with just-in-time inventory systems would be wise to have one essential supplier for inputs.

Answer 2

False

Question 3

Habitat for Humanity builds single-family homes.It uses a cellular layout.

Answer 3

False

Question 4

Operations management is a function exclusive to the manufacturing sector of the economy.

Question 5

Waiters at Molte Bene record orders on their cell phones.This is an example of increasing technology in the service sector.

Question 6

Work-in-process inventories are made up of partially completed products that need further processing.

Question 7

The controller is responsible for buying the materials needed to create products or services.

Question 8

The problems,challenges,and opportunities faced by operations managers revolve around the acquisition and utilization of resources for conversion.

Question 9

Quality is both an absolute and a relative concept.

Question 10

The cellular layout is a relatively new approach to facilities design.

Question 11

Only the service sector of the economy has organizations with customer service departments.

Question 12

When operations management is coordinated with other functions,a type of control activity can be created.

Question 13

More jobs have been created due to increased use of automation than have been lost.

Question 14

When you visit a financial planner,you provide her with income,expense,and goal information.She then turns that information into a financial plan with a budget,investment plan,and insurance plan.She is practicing operations management.

Question 15

At Applebee's restaurant the prepared food waiting to be served to customers is part of the work-in-process inventory for Applebee's.

Question 16

During the decline of the manufacturing sector,a tremendous growth in the service sector kept the US economy form declining at the same rate.

Question 17

Sue just received a new assignment from her boss.She is supposed to find a way to use robots to move the work-in-process from one workstation to another.In other words,Sue is supposed to develop a computer-aided design.

Question 18

Operations is not an important functional concern for organizations because efficient and effective management of operations undermines quality.

Question 19

Procurement can be defined as the process of managing operations control,resource acquisition and purchasing,and inventory so as to improve overall efficiency and effectiveness.

Question 20

Quality and productivity have become major determinants of business success or failure today and are central issues in managing organizations.

Question 21

Product-service mix decisions address which of the following issues?

A)Which products to offer
B)How many different products to offer
C)What quantity to produce of a product
D)All of these.
E)Only "which products to offer" and "how many different products to offer."

Question 22

An organization that transforms resources into an intangible output in order to create time or place utility for its customers is known as a(n)____ company.

A)outsourcing
B)service
C)manufacturing
D)ISO 9000
E)TQM

Question 23

Firm productivity is a primary determinant of an organization's level of profitability and ultimately,of its ability to survive.

Question 24

Which sector of the U.S.economy was responsible for most of the growth in new jobs during the 1990s?

A)Manufacturing
B)Service
C)Government
D)Exports
E)Imports

Question 25

A ____ organization is one that transforms resources into an intangible output and creates time and place utility for its customers.

A)manufacturing
B)production
C)service
D)profitable
E)None of these.

Question 26

A convenience store provides utility for customers because it makes it easy for them to purchase a few essentials when they stop for gasoline.This is an example of ____ utility.

A)time
B)statistical
C)form
D)quality
E)All of these.

Question 27

Which of the following organizations creates form utility?

A)eTrade
B)Malouf car dealership
C)St.Mary's church
D)Oakley sunglasses
E)United Airlines

Question 28

The employee reward system is essential to making employee involvement work.

Question 29

Work teams are common vehicles for increasing employee involvement in TQM.

Question 30

Quality is relevant for services but not for products.

Question 31

Debra is an elementary school substitute teacher.She can sub for teachers of grades k-5,but she cannot sub for specials like physical education,music,and art.She has been cross-trained.

Question 32

Virtually everyone agrees that improving service sector productivity is the next major hurdle facing US business.

Question 33

Therese is computing total factor productivity.She needs to quantify style.It is difficult to express all ingredients in common terms.

Question 34

Restaurants are in the _____ industry?

A)service
B)manufacturing
C)outsourcing
D)importing
E)exporting

Question 35

Acceptance sampling cannot be handled by statistical quality control (SQC)equations.

Question 36

The American Society for Quality Control defines quality as the totality of features and characteristics that impact on the ability of a product or service to satisfy needs.

Question 37

Current thinking about the relationship between productivity and quality is that there is an indirect relationship between the two factors.

Question 38

Operations management is the set of managerial activities used by an organization to transform ____ into ____ and ____.

A)outputs; resources; inputs
B)services; resources; outputs
C)inputs; resources; activities
D)resources; products; services
E)None of these.

Question 39

There is a Canadian insurance company that provides only one kind of insurance.It insures athletes who have multimillion dollar contracts that must be paid,even if the athlete is injured or in some other way unable to play.Owners buy the insurance policies as a way to protect themselves.When the insurance company decided to specialize in this type of insurance,it made a ____ decision.

A)product-service mix
B)capacity mix
C)facilities layout
D)facilities location
E)human resource mix

Question 40

The text notes that what we now call operations management was once called production management and implies that there are several reasons for the change in definition.Which of the following is NOT one of those reasons?

A)The decline in manufacturing in the United States in recent years
B)Changes in manufacturing processes such as the increased use of robots and other computer-based technology
C)The increase in the size and importance of the service sector in the U.S.economy
D)Drastic increases in foreign competition and the subsequent effects it has had on U.S.firms
E)The fact that many of the tools and techniques used in manufacturing can also be used in the service sector

Question 41

The earliest form of automation¾machine-controlled devices¾were first developed

A)in the 1700s.
B)in the 1800s.
C)in the 1900s.
D)after the year 2000.
E)None of these.

Question 42

Which of the following is true about the impact of automation on workers?

A)The development of automation has created jobs in some industries.
B)The development of automation has eliminated jobs in some industries.
C)Overall,there has been a net creation of jobs as a result of automation.
D)All of these.
E)Only "The development of automation has created jobs in some industries" and "the development of automation has eliminated jobs in some industries."

Question 43

If you were giving advice to a manager who wanted to use a just-in-time inventory management method,what would you say?

A)"Be sure to hold a lot of inventory in case you unexpectedly run out."
B)"You will need to increase your warehouse and storage space."
C)"Be prepared to find emergency supply sources."
D)"Determine how much you need,then add a little extra just to be safe."
E)None of these.

Question 44

Rich is comparing the quality and features of Facebook to those on Google+.This is an example of the ____ of quality.

A)relative nature
B)absolute nature
C)conformance dimension
D)price dimension
E)aesthetic nature

Question 45

Dina works in construction.She travels to the job site to build the next house.This is an example of a ____ layout.

A)product
B)cellular
C)specialized
D)fixed-position
E)process

Question 46

Which of the eight dimensions of quality refers to a measure of product life?

A)Reliability
B)Durability
C)Serviceability
D)Features
E)Perceived quality

Question 47

The set of processes and systems used by organizations to convert resources into products or services is called

A)quality.
B)technology.
C)manufacturing.
D)automation.
E)None of these.

Question 48

At Toyota,parts are delivered to the assembly line instead of a storage warehouse.This is an example of

A)just-in-time inventory.
B)benchmarking.
C)management by objective.
D)quality circles.
E)computer-assisted manufacturing.

Question 49

Katina is in the emergency room.They think she has a broken wrist,so she is taken to x-ray.Which type of layout would you expect to find in the ER?

A)Product
B)Cellular
C)Specialized
D)Functional
E)Process

Question 50

Power School allows parents to review grades,attendance,assignments,and student data on a daily basis.This is an example of

A)advancement in service technology.
B)advancement in manufacturing technology.
C)computer-aided manufacturing.
D)computer aided design.
E)computer-assisted technology.

Question 51

When considering making a capacity decision,which of the following will be important information to have?

A)Market demand for the product
B)Current capacity
C)Funds available for expansion
D)All of these
E)Only "market demand for the product" and "current capacity."

Question 52

Callaway makes golf clubs.Each club in a set is slightly different than the next.Which type of layout would you expect to find in a manufacturing plant that makes golf clubs?

A)Product
B)Cellular
C)Specialized
D)Functional
E)Process

Question 53

Lawn Doctor is a lawn care service company.It sprays customers yards to fertilize the soil and prevent weeds and insects.It has found a way to improve the management of its inventory of nitrate,which is part of its ____ inventory.

A)finished-goods
B)work-in-process
C)raw materials
D)in-transit
E)just-in-time

Question 54

All of the following are specific factors that can be used to assess or evaluate quality EXCEPT

A)reliability.
B)serviceability.
C)features.
D)durability.
E)All of these can be used to assess quality.

Question 55

Dorothy loves eating at Panera Bread.She thinks of all the fast food,it is the healthiest.Healthy food is a dimension of quality known as

A)features.
B)aesthetics.
C)reliability.
D)durability.
E)serviceability

Question 56

Heather's boss has just given her the responsibility of developing a new line of protective gear for kayakers.However,he warned her that the time available for development is not as long as she would probably like.What should Heather use to speed up the development process?

A)Automation
B)Robotics
C)Mass-production assembly line
D)CAD
E)Flexible manufacturing systems

Question 57

Many firms today are reducing the number of suppliers they use and instead are focusing on building strong relationships with just a few suppliers.What are the advantages of doing this?

A)Increased use of automation
B)More control over raw material delivery
C)Fewer materials used in the process
D)All of these.
E)Only "increased use of automation" and "more control over raw material delivery"

Question 58

Which of the following is NOT one of the constraints with which a purchasing agent must deal?

A)Inventory levels and delivery dates
B)Supplier reliability
C)Integrating purchasing with production
D)Getting the best possible discounts and terms
E)The quality of what is being purchased

Question 59

____ is the process of managing operations control,resource acquisition and purchasing,and inventory to improve overall efficiency and effectiveness.

A)Supply-chain management
B)Resource management
C)Inventory management
D)Quality control
E)Productivity control

Question 60

Drones,unmanned aircraft,are increasingly sent into combat instead of pilots.This is an example of

A)CAD.
B)CAM.
C)FMS.
D)robotics.
E)JIT.

Question 61

OpenSkies flies only between Washington Dulles and Paris or Newark Liberty and Paris.It offers all-business-class service.The price of its flights are half that of major airline,business class fares.The price is an example of

A)features.
B)aesthetics.
C)reliability.
D)perceived quality.
E)serviceability.

Question 62

At a UTC facility the quality control people sample 5 percent of the finished Carrier air conditioners to check for adherence to more than 25 quality standards.This is an example of

A)benchmarking.
B)acceptance sampling.
C)in-process sampling.
D)conformance sampling.
E)None of these.

Question 63

Boeing sent change management consultants to a newly acquired company to learn how that company managed change in the past.This is an example of

A)benchmarking.
B)conformance sampling.
C)acceptance sampling.
D)in-process sampling.
E)None of these.

Question 64

Dominoes tossed out its old pizza recipe and openly mocked itself in advertisements,admitting that the old formula tasted like cardboard.Which dimension of quality was Dominoes attempting to change?

A)Aesthetics
B)Features
C)Reliability
D)Serviceability
E)Perceived quality

Question 65

According to the text,the major problem associated with total factor productivity is that

A)the data are too hard to obtain.
B)all ingredients must be expressed in the same terms.
C)it clearly tells the manager what to do to correct a problem.
D)it is not compatible with standard accounting procedures.
E)it is nothing more than a cost-benefit analysis.

Question 66

The Federal Communications Commission has a list of words broadcasters cannot say on the air.This is a dimension of quality known as

A)features.
B)conformance.
C)reliability.
D)durability.
E)serviceability.

Question 67

The type of statistical quality control that involves testing products as they are being made is known as

A)total factor sampling.
B)acceptance sampling.
C)in-process sampling.
D)conformance sampling.
E)None of these.

Question 68

A decentralized organization will excel at which guideline for increasing speed?

A)Start from scratch
B)Minimize the number of approvals needed to do something
C)Develop and adhere to a schedule
D)Do not ignore distribution
E)Integrate speed into the organization's culture

Question 69

Which of the following is classified as a partial productivity ratio?

A)Labor productivity ratio
B)Energy productivity ratio
C)Total factor productivity ratio
D)All of these.
E)Only labor productivity ratio and energy productivity ratio

Question 70

At a regional manufacturing facility the quality control people sample 15 percent of the finished products to check for adherence to more than 12 quality standards.This is an example of

A)acceptance sampling.
B)outsourcing.
C)in-process sampling.
D)ISO 9000.
E)None of these.

Question 71

Chefs at top restaurants go to local produce farmers to get first choice vegetables and fruits.This example focuses on which component of the total quality management strategy?

A)Employee involvement
B)Strategic commitment
C)Technology
D)Materials
E)Methods

Question 72

Which of the following factors is NOT included in the formula for computing total factor productivity?

A)Labor
B)Capital
C)Materials
D)Energy
E)Inflation

Question 73

All of the following are basic components of a total quality management (TQM)strategy EXCEPT

A)employee involvement.
B)technology.
C)materials.
D)strategic commitment.
E)All of these are basic components of a TQM strategy.

Question 74

Almost 20,000 UPS employees are now equipped with ring scanners¾small electronic devices worn on their index fingers and wired to a small computer on their wrists.When a UPS employee holds a package,the ring shoots a pattern of photons on the package.Within moments,its location is updated at the UPS Web site.This use of an operations improvement allows UPS to

A)improve its productivity.
B)decrease fixed cost.
C)decrease its dependence on its Web site.
D)increase customer affective responses.
E)None of these.

Question 75

A bureaucratic organization will excel at which guideline for increasing speed?

A)Start from scratch
B)Minimize the number of approvals needed to do something
C)Develop and adhere to a schedule
D)Do not ignore distribution
E)Integrate speed into the organization's culture

Question 76

Al Lovata,CEO of Be Our Guest Inc.rented a CFO from Milestone Advisors LLC to help cut cost during the economic downturn.Be Our Guest used

A)SQC.
B)TQM.
C)outsourcing.
D)benchmarking.
E)ISO 9000.

Question 77

A consulting firm calculates an efficiency index for each of its consultants by dividing each consultant's total hours of work by the number of billable hours.This is a measure of ____ productivity.

A)labor
B)partial
C)total factor
D)individual
E)None of these.

Question 78

Wal-Mart replaced some checkout lanes with self-checkout.Customers with full carts waiting in line for full checkout may complain that ____ is not a dimension of quality that is a priority for Wal-Mart.

A)features
B)aesthetics
C)reliability
D)durability
E)serviceability

Question 79

____ consists of a set of mathematical and / or statistical methods and procedures for measuring and adjusting quality levels.

A)Benchmarking
B)Total quality management
C)Conformance
D)Statistical quality control
E)None of these.

Question 80

The techniques chefs use to transform ingredients into meals is the TQM dimension

A)employee involvement.
B)strategic commitment.
C)technology.
D)materials.
E)methods.