Deck 1: Introduction to the Field

Question 1

Core goods are those tangible products that include a significant service component.

Answer 1

True

Question 2

A traveler is an input to an airline's transformation system.

Answer 2

True

Question 3

A worker can be efficient without being effective.

Answer 3

True

Question 4

A doctor completes a surgical procedure on a patient without error.The patient dies anyway.In operations management terms,we could refer to this doctor as being efficient but not effective.

Question 5

JIT is an integrated set of activities designed to achieve high-volume production using minimal inventories of parts that arrive at the workstation exactly when they are needed.

Question 6

Core services are those products that integrate tangible goods into the service.

Question 7

In 1913,Henry Ford developed an assembly line to make the Model-T automobile.

Question 8

A business education is complete with an understanding of modern approaches to managing operations.

Question 9

A transformation process uses resources to convert inputs into some desired output.

Question 10

Trying to maximize effectiveness and efficiency at the same time can create conflict.

Question 11

Efficiency means doing the right things to create the most value for the company.

Question 12

Just-in-time manufacturing (JIT)is applicable only for small-scale manufacturing operations and can be used to eliminate production defects.

Question 13

Development of economic lot sizing models,including the EOQ model,occurred during the 1930's.

Question 14

Widespread use of computers in business led to development of methods like material requirements planning (MRP)to rationalize manufacturing in the 1970s.

Question 15

One of the precursors of operations management was the development of principles of scientific management which happened during the 1930's.

Question 16

A visit to a hair salon produces a tangible result-a new appearance for the customer.Hence,the output of hair salons is a manufactured good,not a service.

Question 17

In the late 1950's scholars began to deal specifically with operations management rather than with industrial engineering and operations research.

Question 18

Strategic operations and supply management issues tend to be primarily directed at planning how to efficiently schedule material and labor.

Question 19

Maximizing both effectiveness and efficiency at the same time always creates the most value for the organization.

Question 20

Effectiveness means doing the right things to create the most value for the company.

Question 21

ISO 9000 certification standards play a minor role in setting quality standards for global manufacturers but a major role in setting quality standards in the European Union.

Question 22

One of the characteristics that distinguish a manufactured product from a service product is which of the following?

A)Customers are always directly involved in creating the output
B)Customers often directly interact with manufacturing workers
C)A manufactured product is a tangible,physical item
D)Customers can purchase the identical service product from a number of outlets
E)A service product is superficial

Question 23

A current issue facing operations and supply managers is coordinating the relationships between mutually supportive but separate organizations.

Question 24

A reason for studying operations and supply management (OSM)is which of the following?

A)OSM is essential for understanding organizational behavior
B)Most business graduates do OSM work regardless of their job title
C)The concepts and tools of OSM are used in managing other business functions
D)OSM is a required course in all business degree programs
E)OSM is the most rigorous business discipline

Question 25

Really successful firms have an ambiguous idea of how they intend to make money.

Question 26

One of the challenges facing operations and supply management is distributing products to global markets.

Question 27

Deciding how much inventory to purchase is a fundamental topic of operations management.

Question 28

One of the current issues of operations and supply management is optimizing global supplier,production and distribution networks.

Question 29

Managing global supplier,production and distribution networks is easy with the implementation of global enterprise resource planning systems.

Question 30

Making resource utilization decisions must capture the direct costs of staffing and need not consider the implicit costs of lost customers.

Question 31

All European companies require that their vendors meet ISO 9000 standards as a condition for obtaining contracts.

Question 32

Operations and supply management does not involve which of the following?

A)Using operations research/management science decision-making tools
B)Industrial engineering issues
C)Line management responsibilities
D)Improving operating systems
E)Portfolio management

Question 33

In viewing a department store as a transformation process,shoppers are considered a primary input into the process.A primary transformation function of the same system is which of the following?

A)Stock pickers
B)Well-prepared food
C)Storage bins
D)Storage and redistribution
E)Promoting products

Question 34

JIT is designed to achieve high-volume production using a significant inventory of component parts that minimizes the probability of running out of supplies.

Question 35

One of the current issues of operations and supply management is increased co-production of goods and services.

Question 36

In the transformation process of a hospital,a patient is considered a primary input.A primary transformation function of the same system is which of the following?

A)Healthy individuals
B)Health care
C)Well-prepared food
D)Storage and redistribution
E)Allocation of beds

Question 37

One of the current issues of operations and supply management is decreasing "commoditization" of suppliers.

Question 38

Which of the following is not a general category for categorizing transformation processes?

A)Exchange,as in retailing
B)Physical,as in manufacturing
C)Insulational,as in inventory
D)Location,as in transportation
E)Storage,as in warehousing

Question 39

Because the text states that "at the most fundamental level,operations and supply management is about getting work done quickly,efficiently,without error and at low cost" there is little in the field of operations management that relates to overall corporate strategy.

Question 40

The term "value" refers to the relationship between quality and the price paid by the consumer.

Question 41

In the history of operations management the use and development of the set of activities referred to as business process reengineering occurred in what decade?

A)1940's
B)1950-60's
C)1970's
D)1980's
E)1990's

Question 42

What United States National Quality Award was started in 1987?

Question 43

Why is operations not perceived as important?

A)Operations is less crucial to the success of modern businesses than other functions
B)Many senior executives began their careers in other functions and learned to take operations for granted
C)Successful mergers or "deals" is where the action is these days and operations plays only a minor role in their success
D)Operations and supply improvement projects are typically small,short-term and not strategic
E)Operational coordination is best achieved by general management or the sales function

Question 44

In the history of operations management the use of the multidisciplinary team approach to complex system problems using tools like linear programming first occurred during which decade?

A)1930's
B)1940's
C)1950-60's
D)1970's
E)1980's

Question 45

Which of the following product attributes is a value added service?

A)Excellent quality
B)Internet monitoring of orders
C)Lowest cost
D)Effectiveness
E)Speed

Question 46

In the history of operations management the use of continuous improvement and value engineering started in what decade?

A)1940's
B)1950-60's
C)1970's
D)1980's
E)1990's

Question 47

In the history of operations management the development of economic lot sizing models,including the EOQ model occurred in what decade?

A)1910's
B)1930's
C)1940's
D)1950-60's
E)1970's

Question 48

The text mentions a number of major challenges (listed below)to operations management that are expected to develop in the near future.Select one of these and briefly discuss the nature of the challenge?
A.Coordinate the relationships between mutually supportive but separate organizations
B.Optimizing global supplier,production and distribution networks
C.Increased co-production of goods and services
D.Managing the customer's touch points
E.Raising senior management awareness of operations as a competitive weapon
These concepts are discussed in the text under the heading "Current Issues in Operations Management" on page 18.

Question 49

Discuss the role of efficiency and effectiveness in the creation of value?

Question 50

What are the six categories of transformation processes?

Question 51

What is the process called that uses resources to convert inputs into some desired output?

Question 52

In the manufacturing strategy paradigm developed in the 1970's,which of the following are suggested?

A)Manufacturing can be a competitive weapon by excelling on all performance measures
B)Manufacturing should focus on a limited set of tasks
C)Management should create a highly flexible factory
D)Manufacturing facilities can achieve the lowest possible cost
E)Manufacturing management is best done by people with engineering degrees

Question 53

Radical changes in operations and supply chain management are advocated by proponents of which of the following?

A)Business process reengineering
B)Electronic commerce
C)Total quality management
D)Manufacturing strategy
E)Mergers and acquisitions

Question 54

Which of the following individuals are credited with helping to transplant Japanese methods of total quality management to the United States?

A)Harris
B)Baldridge
C)Dodge
D)Deming
E)Wright

Question 55

A total systems approach to managing the flow of information,materials and services from raw material suppliers to the end customer is called what?

A)Electronic commerce
B)Total quality productivity
C)Total service quality
D)Supply chain management
E)Business Process engineering

Question 56

Describe some of the generic differences between the production of goods and services?

Question 57

Which of the following are considered current issues in operations and supply management?

A)Developing flexible supply-chains for merged operations
B)Managing the customer's experience during the service encounter
C)Decreasing "commoditization" of suppliers
D)Increasing operations' responsibility for profits
E)Increasing unionization of the work force

Question 58

In the history of operations management the use of synchronous manufacturing occurred in what decade?

A)1930's
B)1940's
C)1950-60's
D)1970's
E)1980's

Question 59

What did the International Organization for Standardization create that is relevant to operations?