Deck 19: Operations and Services Management

Question 1

In the just-in-time approach,almost no inventories are maintained.

Answer 1

True

Question 2

Value creation means that the effort and resources invested to accomplish a task or activity or work process is worth more than its end result.

Answer 2

False

Question 3

Remanufacturing takes used items apart and rebuilds them as products to be used again.

Answer 3

True

Question 4

To leverage buying power,more organizations are centralizing purchasing to allow buying in volume.

Question 5

Productivity is a qualitative measure of the efficiency with which inputs are transformed into outputs.

Question 6

Though the equipment used may not be elaborate,a high level of worker skill is often needed in small-batch production.

Question 7

Long-linked technology can function like mass production,where a client is passed from point to point for various aspects of service delivery.

Question 8

Internal customers are the individuals and groups who are found within the organization.

Question 9

An economic order quantity approach to inventory control allows for inventory to be purchased only when suppliers grant quantity discounts.

Question 10

ISO certification uses a process that makes quality principles part of the organization's strategic objectives,applying them to all aspects of operations and striving to meet customers' needs by doing things right the first time.

Question 11

The break-even point is achieved when assets equal liabilities.

Question 12

Customer relationship management applies only to external customers.

Question 13

RyanAir transforming resource inputs into low-cost,dependable air travel is an example of a manufacturing organization.

Question 14

The value chain includes support activities,such as procurement,human resource management,technology development and support,and financial and infrastructure maintenance.

Question 15

Cellular layouts place machines doing similar work together,so that the movement of materials from one to the other is as efficient as possible.

Question 16

Potential drivers of competitive advantage include the ability to outperform based on speed to market.

Question 17

The span of operations management does not cover the full input-throughput-output cycle.

Question 18

Continuous-process production is equipment-intensive,but it can often be operated by a relatively small labor force.

Question 19

The service-profit chain consists of all activities involved in the direct link between an organization's service providers and their employees.

Question 20

Workers are highly independent in mass production.

Question 21

Inzo is a company that transforms resource inputs into life and health insurance.Its products are sold all over the country.This is an example of an)________ organization.

A)process-based
B)eco-friendly
C)service
D)manufacturing
E)sustainable

Question 22

The various parts of a work process must all be completed to achieve the desired results,and they must typically be completed in a given order.

Question 23

Control charts are pictorial ways of displaying trends.

Question 24

________ is the process of managing productive systems that transform resources into finished products.

A)Conflict management
B)Marketing management
C)Financial management
D)Human resource management
E)Operations management

Question 25

The basic notion driving continuous improvement is that one can never be satisfied.

Question 26

In process value analysis,one must search for ways to eliminate unnecessary tasks or work,delays,errors,and misunderstandings.

Question 27

TNC Inc.produces a variety of products,such as toys,furniture,and camping supplies.TNC Inc.is a ________ organization.

A)service
B)tourist
C)manufacturing
D)non-profit
E)process-based

Question 28

The goal of business process reengineering is to break old work habits and focus operations management attention on better ways of doing things.

Question 29

A local auto-manufacturing plant in Denver produces 79 cars in a 6-day week.What is the plant's productivity per day?

A)9.28 cars per day
B)10 cars per day
C)13.16 cars per day
D)11.28 cars per day
E)15 cars per day

Question 30

A work process is a related group of tasks that together create a value for the organization.

Question 31

The first step of process value analysis is to map the core processes with respect to workflows.

Question 32

________ is the quantitative measure of the efficiency with which inputs are transformed into outputs.

A)Effectiveness
B)Profitability
C)Productivity
D)Asset management
E)Resource tracking

Question 33

In respect to statistical quality control,the lower the Sigma the lower the number of defects.

Question 34

Organizations that produce physical goods are referred to as ________ organizations.

A)manufacturing
B)service
C)advertising
D)non-profit
E)virtual

Question 35

Ideally,a purchase order should result in at least three value-added outcomes: order fulfillment,a paid bill,and a satisfied supplier.

Question 36

Which of the following do typical operations management decisions address?

A)Technologies
B)Remuneration
C)Fringe benefits
D)Capital investments
E)Advertising

Question 37

The span of operations management covers the ________.

A)full marketing cycle
B)period from prototyping to commercialization
C)full financial year
D)full input-throughput-output cycle
E)period from employee hiring to employee termination

Question 38

Through a technique called value chain analysis,core processes are identified and carefully evaluated for their performance contributions.

Question 39

The core issues in operations and services management depend mainly on how ________ are achieved.

A)productivity and competitive advantage
B)effectiveness and efficiency
C)profitability and expansion
D)savings on tax advantages
E)advertising and promotion

Question 40

The basic productivity equation is:

A)Productivity = Efficiency/Effectiveness.
B)Productivity = Output/Input.
C)Productivity = Input/Output.
D)Productivity = Profitability/Efficiency.
E)Productivity = Income/Expenditure.

Question 41

In which of the following would you find the use of mass production?

A)An automated chemical plant
B)An oil refinery
C)A power plant
D)An aircraft manufacturing plant
E)A racing bicycle shop

Question 42

The possession of strategic assets like patents has made General Electric GE)one of the most powerful companies in the world.Holding such strategic assets has given GE a ________ advantage.

A)competitive
B)late mover
C)legislative
D)home court
E)monopolistic

Question 43

The use of robotics involves ________.

A)computer-controlled machines that perform physically repetitive work with consistency and efficiency
B)taking used items apart and rebuilding them as products to be used again
C)automated operations that quickly shift from one task or product type to another
D)placing machines doing different work together
E)driving product designs,process plans,and manufacturing from a common computer platform

Question 44

Which of the following is true about continuous-process production systems?

A)They need to be operated by a relatively large labor force.
B)They cater to the needs of customers who demand tailor-made products.
C)They are equipment-intensive.
D)They increase the dependence of workers on one another as the product passes from stage to stage until completion.
E)They do not require large capital investments.

Question 45

________ is the combination of knowledge,skills,equipment,and work methods used to transform resource inputs into organizational outputs.

A)Job design
B)Organizational structure
C)Engineering
D)Knowledge management
E)Technology

Question 46

Technology is the way tasks are accomplished using ________.

A)legislative procedures and government policies
B)consumer preferences and wants
C)tools,machines,techniques,and human know-how
D)authoritarian management techniques
E)monopolistic trade practices

Question 47

An organization that produces large numbers of uniform products with an assembly-line system is using ________ production.

A)customized
B)mass
C)continuous-process production
D)niche
E)lean

Question 48

________ places)machines doing different work together,so that the movement of materials from one to the other is as efficient as possible.

A)Mass customization
B)Computer-integrated manufacturing
C)Cellular layouts
D)Lean production
E)Remanufacturing

Question 49

Potential drivers of ________ include the ability to outperform based on product innovation,customer service,speed to market,manufacturing flexibility,and product or service quality.

A)competitive advantage
B)skimming
C)cartelization
D)reverse innovation
E)incremental change

Question 50

Efficient large-scale production of products meeting specific customer requirements is referred to as ________.

A)mass customization
B)remanufacturing
C)niche production
D)customer-integrated manufacturing
E)lean production

Question 51

In which of the following organizations would you find small-batch production?

A)A steel mill
B)An oil refinery
C)An automated nuclear plant
D)An aircraft manufacturing plant
E)A customized furniture shop

Question 52

The key result of a competitive advantage for a company is an ability to ________.

A)sidestep government regulations on preferred activities of the company
B)establish a monopolistic market position by dictating consumer needs and preferences
C)improve the quality of products in spite of a decrease in the efficiency of production
D)consistently do something of high value that one's competitors cannot replicate quickly or do as well
E)promote products that are sustainable and environmentally friendly

Question 53

Cyberdyne Inc.produces its PCs by endlessly processing raw materials through a highly automated production system with largely computerized controls.Cyberdyne Inc.is using ________ production technology.

A)one-time
B)mass
C)continuous-process
D)small-batch
E)long-linked

Question 54

Oil refineries and power plants are examples of organizations using ________ production.

A)continuous-process
B)small-batch
C)mass
D)customized
E)one-time

Question 55

________ accommodates)more teamwork on the part of machine operators.

A)Lean production
B)Computer-integrated manufacturing
C)Mass customization
D)Cellular layouts
E)Remanufacturing

Question 56

An organization gains a ________ advantage when it has a core competency that sets it apart from its competitors and gives it an advantage over them in the marketplace.

A)home court
B)market
C)competitive
D)late mover
E)virtual

Question 57

Which of the following is true of mass production?

A)Workers are highly independent.
B)Each batch of items is tailor-made to fit customer specifications.
C)The equipment used is never elaborate or sophisticated.
D)Products are manufactured uniformly with a conveyer belt system.
E)Workers often follow detailed instructions while performing simplified jobs.

Question 58

In ________,product designs,process plans,and manufacturing are driven from a common computer platform.

A)remanufacturing
B)mass computerization
C)cellular layouts
D)computer-integrated manufacturing
E)computerized axial tomography

Question 59

New computer technologies have made possible the use of ________ that allow automated operations to quickly shift from one task or product type to another.

A)flexible manufacturing systems
B)cellular layouts
C)computer-integrated manufacturing technologies
D)design for disassembly processes
E)lean production technologies

Question 60

An organization that manufactures a variety of products crafted to fit customer specifications is using ________ production technology.

A)continuous-process
B)mass
C)one-time
D)large-scale
E)small-batch

Question 61

Whereas productivity is considered the major efficiency measure in both manufacturing and services,"value creation" should be the target ________ measure.

A)scaling
B)profitability
C)competitive
D)break-even
E)effectiveness

Question 62

Which of the following do organizations do to leverage buying power?

A)Centralize purchasing
B)Use just-in-time management
C)Follow total quality management
D)Introduce capital-intensive technology
E)Spread its purchases over many suppliers

Question 63

The ________ method of inventory control involves ordering a fixed number of items every time an inventory level falls to a predetermined point.

A)inventory control number
B)quality control paradox
C)economic order quantity
D)break-even quantity
E)just-in-time scheduling

Question 64

Which of the following is classified as a support activity?

A)Operations
B)Marketing
C)After-sales service
D)Financial maintenance
E)Inbound logistics

Question 65

In which of the following is intensive technology used?

A)Banks
B)Real estate
C)Insurance
D)Health care
E)Employment agency

Question 66

________ involves strategic management of all operations linking an organization and its suppliers,including such areas as purchasing,manufacturing,transportation,and distribution.

A)VCM
B)CRM
C)TQM
D)SCM
E)CIM

Question 67

________ refers to the amount of materials or products kept in storage.

A)Inventory
B)By-products
C)Freight
D)Lading
E)Deliverables

Question 68

________ technology links people together in a beneficial exchange of values,such as a buyer and seller in the insurance industry.

A)Mediating
B)Intensive
C)Remanufacturing
D)Long-linked
E)Mass-production

Question 69

The goal of "design for disassembly" is to ________.

A)place machines doing different work together
B)design and manufacture products in ways that consider how their component parts will be recycled at the end of their lives
C)combine flexibility with efficiency by allowing automated operations to quickly shift from one task or product type to another
D)accommodate more teamwork on the part of machine operators
E)take used items apart and rebuild and redesign them as products to be used again

Question 70

________ occurs when the result of a work task or activity makes a product or service worth more in terms of potential customer appeal than at the start.

A)Productivity
B)Profitability
C)Value creation
D)Asset management
E)Core competency

Question 71

An)________ is used to electronically track the movement of goods,parts,and even people through various steps in the value chain.

A)RFID tag
B)JIT tag
C)access card
D)proximity card
E)mass surveillance tool

Question 72

The value chain includes all primary activities as well as support activities.Which of the following is classified as a primary activity?

A)Human resource management
B)Technology development and support
C)Procurement
D)Financial and infrastructure maintenance
E)Outbound logistics

Question 73

The goal of ________ is to continuously innovate and employ best practices to keep simplifying processes,reducing costs,and increasing production efficiencies.

A)cellular layouts
B)remanufacturing
C)lean production
D)design for disassembly
E)mass customization

Question 74

________ technology focuses the efforts and talents of many people to serve clients.

A)Mediating
B)Long-linked
C)Robotic
D)Intensive
E)Extensive

Question 75

________ continuously innovates and employs best practices to keep simplifying processes,reducing costs,and increasing production efficiencies.

A)CIM
B)Lean production
C)Remanufacturing
D)Robotics
E)Mass customization

Question 76

Wal-Mart uses an advanced information system that continually updates inventory records and sales forecasts based on point-of-sale computerized information.This is an example of IT utilization in ________.

A)supply chain management
B)customer relationship management
C)total quality management
D)strategic constituencies analysis
E)supplier value analysis

Question 77

ABC Auto Detailing allows its customers to choose the services they are interested in receiving by moving them along to each point in the service delivery that best meets their needs.ABC is utilizing ________ technology.

A)mediating
B)long-linked
C)intensive
D)continuous-process
E)cellular layout

Question 78

The process of ________ takes used items apart and rebuilds them as products to be used again to save costs.

A)remanufacturing
B)business process reengineering
C)computer-integrated manufacturing
D)lean production
E)mass customization

Question 79

In ________ technology,a client is passed from point to point for various aspects of service delivery.

A)long-linked
B)mediating
C)intensive
D)mass customization
E)cellular layout

Question 80

Which of the following is true about value creation?

A)It refers to productivity in products and services.
B)It focuses the efforts and talents of many people to serve clients.
C)It takes used items apart and rebuilds them as products to be used again and saves up to 30% on costs.
D)It refers to a production technique in which a variety of products are crafted to fit customer specification.
E)It occurs when the result of a work task or activity makes a product or service worth more in terms of potential customer appeal than at the start.