Deck 11: Producing Goods and Services

Question 1

Domino's original strategy of delivering pizzas in "30 minutes or it's free" created a competitive advantage based on

A) price utility.
B) time utility.
C) place utility.
D) form utility.
E) ownership utility.

Answer 1

B
time utility.

Question 2

Suppose that you have no clean clothes,but you have a job interview tomorrow.You normally never use any other type of laundry detergent 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

A) possession utility.
B) place utility.
C) time utility.
D) interval utility.
E) ownership utility.

Answer 2

C
time utility.

Question 3

By accepting major credit cards,a retail outlet creates

A) price utility.
B) time utility.
C) ownership utility.
D) form utility.
E) place utility.

Answer 3

C
ownership utility.

Question 4

Which term is used to identify the systematic direction and control of the processes that transform resources into finished goods and services?

A) Quality assurance management
B) Marketing management
C) Operations management
D) Financial management
E) Purchasing management

Question 5

When a company turns out Christmas ornaments so that they are available in the stores in November,it has created

A) time utility.
B) price utility.
C) ownership utility.
D) place utility.
E) form utility.

Question 6

If Toro introduces a new snow blower in April,it has ignored

A) price utility.
B) ownership utility.
C) place utility.
D) time utility.
E) form utility.

Question 7

Which of the following is not a form of utility?

A) Form utility
B) Price utility
C) Place utility
D) Time utility
E) Ownership utility

Question 8

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 __________.

A) minimum wage operations; maximum wage operations
B) goods production; service operations
C) service operations; goods production
D) high-contact operations; low-contact operations
E) none of the above

Question 9

By turning raw materials into finished goods,production creates

A) ownership utility.
B) price utility.
C) form utility.
D) place utility.
E) time utility.

Question 10

When a company uses an intensive distribution strategy,it is facilitating _________ utility.

A) ownership utility
B) form utility
C) place utility
D) interval utility
E) time utility

Question 11

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?

A) Place utility
B) Form utility
C) Interval utility
D) Time utility
E) Ownership utility

Question 12

When your favorite restaurant prepares a meal for you,they are creating

A) form utility.
B) price utility.
C) time utility.
D) place utility.
E) ownership utility.

Question 13

The type of utility provided by convenience stores such as 7-Eleven and Circle K is

A) price utility.
B) form utility.
C) product utility.
D) ownership utility.
E) place utility.

Question 14

The quality of a product that satisfies a human need during its consumption is known as

A) ownership utility.
B) place utility.
C) need utility.
D) form utility.
E) time utility.

Question 15

Products provide business with all of the following economic and non-economic results except

A) human resources.
B) innovations.
C) profits.
D) pollution.
E) new technology.

Question 16

A product's ability to satisfy a human want is called

A) utility.
B) usefulness.
C) customer satisfaction.
D) marketability.
E) demand.

Question 17

When raw materials are converted into finished goods,________ utility has been created.

A) form
B) time
C) ownership
D) place
E) none of these

Question 18

When steel is turned into a finished good like a car,________ utility has been created.

A) place
B) time
C) interval
D) ownership
E) form

Question 19

By making a product that customers can take pride in having,production creates

A) resale value utility.
B) form utility.
C) time utility.
D) operational utility.
E) ownership utility.

Question 20

Which of the following statements regarding production operations is true?

A) The first industrial revolution occurred in England in the 1800s and the second in China during the 1990s.
B) The factory is no longer the centrepiece for manufacturing.
C) The development of 3-D printing illustrates the third industrial revolution.
D) Production operations remain environmentally unfriendly.
E) All of these statements are true.

Question 21

The type of service process in which the customer must be an active participant is a(n)________ system.

A) high-contact
B) active
C) low-contact
D) high-interaction
E) low-interaction

Question 22

Steve manages people who take various raw materials and pre-made assemblies and transform them into a unique product that is sold to retail stores.Steve is involved in

A) service creation.
B) goods creation.
C) manufacturing management.
D) plant management.
E) operations management.

Question 23

Meredith's car needs a tune-up so she has taken it to her favourite mechanic for repair.This type of service system is a ________ system.

A) low-interaction
B) passive
C) high-interaction
D) low-contact
E) high-contact

Question 24

Suzy is going to her hairdresser to get her hair cut and set.This type of service system is a(n)________ system.

A) low-interaction
B) high-contact
C) low-contact
D) active
E) high-interaction

Question 25

A public transit system is an example of a _________ process,while a cheque processing operation at a bank is a __________ process.

A) fabrication; chemical
B) transport; fabrication
C) high contact; low contact
D) low contact; high contact
E) goods producing; service producing

Question 26

Lumber companies convert raw lumber into dimensional lumber and paper products through a(n)________ process.

A) synthetic
B) fabrication
C) assembly
D) analytic
E) chemical

Question 27

The type of service process in which the customer need not be an active part of the system to receive the service is a ________ system.

A) high-contact
B) high-interaction
C) low-interaction
D) low-contact
E) passive

Question 28

Tyson Co.reduces whole chickens into packaged parts through a(n)________ process.

A) chemical
B) fabrication
C) synthetic
D) analytic
E) assembly

Question 29

The __________transformation process alters the basic composition of raw materials and is used in industries like aluminum,steel,fertilizer,petroleum,and paint.

A) chemical
B) fabrication
C) transport
D) clerical
E) assembly

Question 30

Which of the following transformation techniques mechanically alters the basic shape or form of the product?

A) Chemical process
B) Quality process
C) Fabrication process
D) Assembly process
E) Transport process

Question 31

Public transportation systems are examples of ________ systems.

A) high-interaction
B) low-interaction
C) low-contact
D) active
E) high-contact

Question 32

What kind of transformation occurs in an assembly process?

A) Various components are transported from one location to another.
B) Data are combined into useable information for a management report.
C) Various components are put together to create a new product.
D) Finished products are taken apart for inspection.
E) Raw materials are mechanically altered.

Question 33

The conversion of meat on the hoof into T-bone steaks is a(n)

A) continuous process.
B) synthetic process.
C) assembly process.
D) analytic process.
E) chemical process.

Question 34

An artist working with steel uses which type of process the most?

A) Transport processes
B) Clerical processes
C) Fabrication processes
D) Assembly processes
E) Chemical processes

Question 35

The production process which combines a variety of raw materials into a new finished product is known as

A) creating place utility.
B) analytic process.
C) transformation process.
D) synthetic process.
E) creating time utility.

Question 36

GE produces refrigerators using a(n)________ process.

A) chemical
B) synthetic
C) assembly
D) analytic
E) fabrication

Question 37

The manufacturing of products such as electronics,appliances,and automobiles relies on the _________ process.

A) clerical
B) transport
C) chemical
D) fabrication
E) assembly

Question 38

This ______ transformation process combines data on such items as employee absences,machine breakdowns,and inventory reports.It is the

A) assembly
B) fabrication
C) chemical
D) transport
E) clerical

Question 39

The ______ transformation process involves goods being sent from manufacturing sites to consumers through warehouses to retail locations.

A) fabrication
B) chemical
C) clerical
D) assembly
E) transport

Question 40

How does an analytic production process work?

A) It breaks down the basic resources into components.
B) A cost analysis is made to determine the best way to ship the product to another location.
C) It combines a number of raw materials into a finished product.
D) It puts together several components.
E) Raw materials are chemically altered.

Question 41

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

A) intangibility.
B) warrantees.
C) customization.
D) perishability.
E) past experience.

Question 42

The amount of a product that a company can produce under normal working conditions is its

A) capability.
B) scheduled capacity.
C) scheduled capability.
D) capacity.
E) normal capacity.

Question 43

One of the key differences between service and manufacturing operations is that

A) manufacturing products are characterized by intangibility and customization.
B) manufacturing operations feature a unique link between process and outcome.
C) manufacturing operations are less storable.
D) services are performed,but goods are produced.
E) services focus on the outcome of the production process.

Question 44

Which of the following are unique aspects that separate services from goods?

A) Intangibility and warranties
B) High-contact and low-contact
C) Time and place utility
D) Intangibility and unstorability
E) Form and time utility

Question 45

Cheque processing at your local bank is an example of a(n)________ system.

A) active
B) high-contact
C) high-interaction
D) low-interaction
E) low-contact

Question 46

In terms of business strategy as a driver of operations,Toyota uses the _________ strategy,while 3M uses the _________ strategy.

A) quality; dependability
B) flexibility; dependability
C) quality; flexibility
D) lower price; quality
E) lower price; flexibility

Question 47

Of the following products/services,which is the most tangible?

A) Child care
B) A restaurant meal
C) Car repair
D) Clothing
E) Dental work

Question 48

Capacity planning means ensuring that a firm's capacity ________ the normal demand for a product.

A) is substantially less than
B) is equal to
C) is substantially more than
D) is slightly less than
E) is slightly more than

Question 49

What is the logical sequence of steps in a production planning and control system?

A) Business plan,long-range operations plan,operations control,operations schedules,output to customers
B) Operations control,operations schedules,output to customers,long-range operations plan,business plan
C) Business plan,operations control,operations schedules,long-range operations plan,output to customers
D) Business plan,long-range operations plan,operations schedules,operations control,output to customers
E) Business plan,operations control,operations schedules,output to customers,long-range operations plan

Question 50

Assume that you have been given the responsibility for creating an operations planning and control system for a manufacturer.What should your first step be?

A) Focus on production control.
B) Develop a long-range production plan.
C) Send output to customers.
D) Develop production schedules.
E) Review the company's business plan.

Question 51

Service products are characterized by three key qualities:

A) intangibility,uncustomized,unstorability.
B) intangibility,customization,unstorability.
C) intangibility,customization,storability.
D) tangibility,customization,storability.
E) tangibility,uncustomized,storability.

Question 52

Because FedEx emphasizes __________,its operations capabilities emphasize ______________.

A) quality; quality control procedures
B) dependability; wireless information system to track packages
C) low prices; cost control
D) flexibility; excess production capacity
E) dependability; quality control procedures

Question 53

Most firms plan to be able to produce ________ product than is normally demanded.

A) substantially more
B) slightly less
C) slightly more
D) the same amount of
E) substantially less

Question 54

When comparing manufacturing and service operations,it is correct to say that

A) only manufacturing operations transform raw materials into finished products.
B) most service operations are pure service.
C) service operations are more complex than goods production.
D) quality considerations are defined and managed in a similar way in both the service sector and in manufacturing operations.
E) All of these statements are correct.

Question 55

In businesses like restaurants or supermarkets,the business is sized to meet a level of

A) normal demand.
B) low demand.
C) peak demand.
D) average demand.
E) high demand.

Question 56

Of the following products/services,which is the most intangible?

A) Restaurant meal
B) Haircut
C) Jewellery
D) Legal services
E) Clothing

Question 57

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

A) less than; peak
B) more than; peak
C) equal to; average
D) equal to; peak
E) less than; average

Question 58

If an Air Canada flight from Toronto to Calgary has 20 empty seats,this illustrates the unique service characteristic of

A) intangibility.
B) unstorability.
C) demand.
D) customization.
E) oversupply.

Question 59

What is one reason why it is a bad idea for a company to have excess capacity?

A) Wastes raw materials
B) Increases customer dissatisfaction
C) Ties up money in extra machines
D) Decreases form utility
E) Slows delivery of product

Question 60

In terms of business strategy as a driver of operations,3M uses the _________ strategy,while FedEx uses the _________ strategy.

A) quality; dependability
B) flexibility; dependability
C) quality; flexibility
D) lower price; quality
E) lower price; flexibility

Question 61

In a(n)________ layout,equipment and people are grouped together according to their function.

A) assembly line
B) process
C) product
D) customer-oriented
E) flexible

Question 62

A product layout is

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

Question 63

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

A) average demand.
B) peak demand.
C) low demand.
D) high demand.
E) normal demand.

Question 64

A cellular layout is

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

Question 65

What is an option for companies that want to have a capacity to meet peak demand?

A) Plan for peak demand by having,for example,all cash registers open 3 days before Christmas
B) Use a qualitative forecast to determine average demand
C) Attempt to meet most,but not all,peak demands
D) Plan for normal demand
E) Lower prices of the products that are being produced

Question 66

An assembly line would be most likely to use a ________ layout.

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

Question 67

The typical layout in automobile,food-processing,and computer assembly plants is the ________ layout.

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

Question 68

The layout that is efficient because it simplifies work tasks and uses unskilled labour is the ________ layout.

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

Question 69

Which type of decision is most influenced by the development of industrial parks?

A) Layout planning
B) Capacity planning
C) Location planning
D) Quality planning
E) Product marketing

Question 70

Which layout is most likely to depend upon general-purpose machinery and skilled labour to perform a variety of jobs for different customers?

A) Process
B) Fixed-position
C) Customer
D) Cellular
E) Product

Question 71

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 which layout?

A) Cellular
B) Customer
C) Process
D) Fixed-position
E) Product

Question 72

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 ____________.

A) availability of labour; proximity to customers
B) proximity to customers; community living conditions
C) community living conditions; transportation costs
D) transportation costs; proximity to resource supplies
E) proximity to customers; proximity to resource supplies

Question 73

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.

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

Question 74

In which of the following layouts are people and equipment set up to produce only one type of good and are rearranged according to its production requirements?

A) Product
B) Cellular
C) Customer
D) Process
E) Fixed-position

Question 75

Which of the following is best suited for a process layout?

A) A food processing plant
B) A clothing manufacturer
C) A dry cleaning shop
D) A car manufacturer
E) An electronics manufacturer

Question 76

Video Plus sells a wide range of video games as well as other sports-related items.The company needs a larger location,and one possibility has come up for rent at a nearby strip mall at a low rental rate.It gives the company more space for both product display and for behind-the-counter staff.Although the strip mall is in an area where there is lots of petty crime,the CEO feels that the company should relocate.If the following facts were known,which one would weaken the CEO's position?

A) The current employees will be uneasy about their safety at work,and this could lead to increased turnover.
B) It would be easier to hire employees a lower wage rates given the lower cost of living in the strip mall's neighborhood.
C) Video games sales are not increasing as fast as they were a few years ago.
D) There are no other vacancies in the strip mall.
E) The staff at Video Plus has been stable for several years and employees are knowledgeable about the details of video games and other specialty items that the store sells.

Question 77

Mega Computers services and upgrades the computers that it sells.In sizing its service operations it should use

A) peak demand.
B) average demand.
C) low demand.
D) high demand.
E) normal demand.

Question 78

A job shop would be most likely to use a ________ layout.

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

Question 79

A process layout is

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

Question 80

Video Plus sells a wide range of video games as well as other sports-related items.The company needs a larger location,and one possibility has come up for rent at a nearby strip mall at a low rental rate.It gives the company more space for both product display and for behind-the-counter staff.Although the strip mall is in an area where there is lots of petty crime,the CEO feels that the company should relocate.If the following facts were known,which one might justify the relocation from a human resource point of view?

A) Developing a Facebook page made Video Plus known to a big group of potential customers who live in the regional area.
B) There has been an increase in car thefts during the past year in the city.
C) The new location is close to a major freeway interchange.
D) The fantasy action figures the store sells are often remaindered for less than wholesale cost because their popularity is short-lived.
E) The company's suggestion box has contained quite a few complaints about the cramped working conditions and lack of privacy for employees.