Question 1

_____ refers to moving production or support processes to foreign countries.

Accepted Answer

A)  Amortization 
B)  Offshoring 
C)  Vertical integration 
D)  Horizontal merger

Question 2

Steagrillz, a restaurant, uses pleasant music and lighting along with an impressive décor to attract customers. In the context of servicescape, Steagrillz is trying to impress its customers with its _____.

Accepted Answer

A)  ambience 
B)  signage 
C)  artifacts 
D)  functionality

Question 3

During the 1970s, which of the following statements was true of global competition?

Accepted Answer

A)  European firms dominated key markets because of an excellent infrastructure. 
B)  Many Japanese and German firms began to take market share from American firms. 
C)  American firms dominated key markets despite having a poor infrastructure. 
D)  Countries such as India and China became world leaders in quality management.

Question 4

Robots maintain a consistently high level of performance.

Accepted Answer

A) True 
 B)False

Question 5

GRT Logistics takes the help of the latest technology to get its processes done. It uses fully programmed systems for which human control is not required at all. These systems operate the machinery and equipment on their own to perform a variety of tasks. In this scenario, GRT Logistics has _____ its processes.

Accepted Answer

A)  vertically integrated 
B)  automated 
C)  offshored 
D)  outsourced

Question 6

LightZone Inc., a manufacturer of LED lamps, uses a software to create programmed instructions for its automated equipment to ensure that its products are made as efficiently as possible. In this scenario, LightZone most likely uses _____ to program the automated equipment.

Accepted Answer

A)  computer-aided engineering software 
B)  computer-aided design software 
C)  computer-aided processing software 
D)  computer-aided manufacturing software

Question 7

In process layouts, equipment is arranged according to the type of task performed.

Accepted Answer

A) True 
 B)False

Question 8

When trying to ascertain the best approach to organize processes to produce a product, which of the following should be a consideration?

Accepted Answer

A)  The intangible features associated with the customer benefit package 
B)  The degree of standardization of the product 
C)  The advertising strategy associated with the product 
D)  The inventory management process used in the organization

Question 9

Mass production strategy:

Accepted Answer

A)  focuses on meeting the needs of specific customers. 
B)  is based on the pull system of process flow. 
C)  facilitates mass customization. 
D)  keeps costs low by making efficient use of capital.

Question 10

A _____ doesn't require work to be performed in a specific sequence; instead, the product can be moved from one type of machinery to another in whatever sequence is necessary.

Accepted Answer

A)  product layout 
B)  cellular layout 
C)  fixed position layout 
D)  process layout

Question 11

Robin, the owner of a pizzeria, follows a standard sequence of steps to make pizzas. Once an order is received, her team members prepare the base, add the sauce, add the toppings, and then bake the pizza. The workstations in the kitchen are fixed in a sequence that facilitates this process. Given this scenario, it can be inferred that Robin's pizzeria uses a _____.

Accepted Answer

A)  product layout 
B)  process layout 
C)  cellular layout 
D)  combined layout

Question 12

Unlike a product layout, a process layout requires equipment to be arranged in a specific sequence.

Accepted Answer

A) True 
 B)False

Question 13

Liam is the operations manager of a construction company. During a project, a shipment of rafters is delayed by a week. However, the delay does not worry Liam as it would not affect the project deadline. In the given scenario, it is most likely that the installation of rafters is an activity that:

Accepted Answer

A)  does not have an immediate predecessor. 
B)  does not have slack. 
C)  is not important to the project. 
D)  is not on the critical path.

Question 14

MoneyMatters, a finance firm, provides support to HMD Inc. in payroll and other financial matters. Later, HMD decides to create an in-house finance department to manage its financial matters. In this scenario, MoneyMatters loses its business because of the _____ done by HMD Inc.

Accepted Answer

A)  outsourcing 
B)  offshoring 
C)  vertical integration 
D)  amortization

Question 15

Dennis, a manager at Luis Bryan Inc., oversees the activities involved in creating the right products and services in the right quantities and distributing them to the right customers. His decisions have a major impact on the company's financial success. The given scenario illustrates operations management.

Accepted Answer

A) True 
 B)False

Question 16

William is the owner of a made-to-order furniture shop. He maintains extensive catalogues of the designs and customizations that he offers. Once a customer places an order, William buys the required amount of raw materials from his regular suppliers and starts working on the order. From the given scenario, it can be inferred that William follows the _____.

Accepted Answer

A)  push system of inventory control 
B)  mass production system 
C)  just-in-time production system 
D)  flow production system

Question 17

In a cellular layout, cells are designed to be operated by a few workers who perform a wider array of tasks than assembly-line workers.

Accepted Answer

A) True 
 B)False

Question 18

Magnus, an industrial engineer in a garment manufacturing company, introduced small procedures to detect errors in the production process. These procedures help workers spot mistakes in the garments before they are moved to the next stage. In the given scenario, Magnus most likely introduced _____.

Accepted Answer

A)  green practices 
B)  artifacts 
C)  poka-yokes 
D)  the Kaizen system

Question 19

Which of the following is a difference between total quality management (TQM) and Six Sigma?

Accepted Answer

A)  Unlike TQM, Six Sigma relies on teams of workers to carry out specific tasks and projects to improve quality. 
B)  Unlike TQM, Six Sigma aims to reduce defects of any process to a level of no more than 3.4 per million opportunities. 
C)  Unlike Six Sigma, TQM relies on extensive employee training. 
D)  Unlike Six Sigma, TQM relies on expert guidance.

Question 20

Lara is the owner of an event management company. For every project, Lara makes a chart to keep a track of multiple tasks that need to be accomplished simultaneously. From her chart, she finds the sequence of activities that will take the longest to complete. This helps her keep an eye on the project and address any issues that may delay the project. In this scenario, it can be inferred that Lara most likely uses _____ to execute her projects on time.

Accepted Answer

A)  the critical path method 
B)  a business rule engine 
C)  rule-based machine learning 
D)  an expert system

Exam 17: Operations Management: Putting It All Together

_____ refers to moving production or support processes to foreign countries.

Steagrillz, a restaurant, uses pleasant music and lighting along with an impressive décor to attract customers. In the context of servicescape, Steagrillz is trying to impress its customers with its _____.

During the 1970s, which of the following statements was true of global competition?

Robots maintain a consistently high level of performance.

LightZone Inc., a manufacturer of LED lamps, uses a software to create programmed instructions for its automated equipment to ensure that its products are made as efficiently as possible. In this scenario, LightZone most likely uses _____ to program the automated equipment.

In process layouts, equipment is arranged according to the type of task performed.

When trying to ascertain the best approach to organize processes to produce a product, which of the following should be a consideration?

Mass production strategy:

A _____ doesn't require work to be performed in a specific sequence; instead, the product can be moved from one type of machinery to another in whatever sequence is necessary.

Unlike a product layout, a process layout requires equipment to be arranged in a specific sequence.

Liam is the operations manager of a construction company. During a project, a shipment of rafters is delayed by a week. However, the delay does not worry Liam as it would not affect the project deadline. In the given scenario, it is most likely that the installation of rafters is an activity that:

MoneyMatters, a finance firm, provides support to HMD Inc. in payroll and other financial matters. Later, HMD decides to create an in-house finance department to manage its financial matters. In this scenario, MoneyMatters loses its business because of the _____ done by HMD Inc.

In a cellular layout, cells are designed to be operated by a few workers who perform a wider array of tasks than assembly-line workers.

Magnus, an industrial engineer in a garment manufacturing company, introduced small procedures to detect errors in the production process. These procedures help workers spot mistakes in the garments before they are moved to the next stage. In the given scenario, Magnus most likely introduced _____.

Which of the following is a difference between total quality management (TQM) and Six Sigma?