Question 1

Gomez Home Appliances manufactures 10,000 refrigerators every month. The company spends $2,000 on labor, $5,000 on rent, $3,000 on machinery, and $1,500 on electricity every month. It can be concluded that the multifactor productivity of the company is _____.

Accepted Answer

A)  0.91 dollars per refrigerator 
B)  0.87 refrigerators per dollar 
C)  0.62 dollars per refrigerator 
D)  0.34 refrigerators per dollar

Question 2

Widget Corp. produced $10 billion worth of goods in the year 2016. If the company had 50 million hours of work in 2016, the productivity of the company is _____.

Accepted Answer

A)  $20 per hour 
B)  $25 per hour 
C)  $30 per hour 
D)  $35 per hour

Question 3

Empowering workers means permanently passing decision-making authority and responsibility from managers to workers

Accepted Answer

A) True 
 B)False

Question 4

A moderate degree of processing occurs in _____.

Accepted Answer

A)  assemble-to-order operations 
B)  make-to-order operations 
C)  build-to-stock operations 
D)  make-to-stock operations

Question 5

Timothy is a manager in a footwear manufacturing company. He calculates the daily productivity by determining the amount of plastic required to produce a pair. This daily productivity is an example of _____.

Accepted Answer

A)  partial productivity 
B)  internal service quality 
C)  multifactor productivity 
D)  service recovery

Question 6

Which of the following is a common characteristic of quality products and quality services?

Accepted Answer

A)  Reliability 
B)  Serviceability 
C)  Durability 
D)  Validity

Question 7

Wyatt Four-Wheel Services is a popular garage, where part of employees' monthly salary depends on customer satisfaction. Seventy percent of the incentive is based on performance and the remaining thirty percent is based on customer satisfaction ratings and the quality of service. In this case, Wyatt Four-Wheel Services is committed to _____.

Accepted Answer

A)  internal service quality 
B)  line-flow production 
C)  implementing a just-in-time program 
D)  total quality management

Question 8

Woodlander is a chain of resorts where part of employees' monthly incentives depends on customer satisfaction. Sixty percent of the incentive is based on performance and the remaining forty percent is based on customer satisfaction ratings and the quality of service. In this case, Woodlander is committed to _____.

Accepted Answer

A)  total quality management 
B)  line-flow production 
C)  implementing a just-in-time program 
D)  internal service quality

Question 9

TrinkCan, a soda manufacturing company, produces around 50,000 cans of soda per day. The production system used by the company is very efficient, and it releases close to 3,000 cans per hour. Once the production system is turned on, it functions round the clock to seal and release cans until the machine is turned off. The production system of TrinkCan is an example of _____.

Accepted Answer

A)  continuous-flow production 
B)  prototype production 
C)  batch production 
D)  job shop production

Question 10

In the context of the principles of total quality management,__________is an organizational goal to concentrate on meeting customers' needs at all levels of the organization.

Accepted Answer

A)  customer loyalty 
B)  customer focus 
C)  customer satisfaction 
D)  continuous improvement

Question 11

Finesse, a wall paint manufacturing company, produces around 15,000 cans of paint a day. The production system used by the company is very efficient, and it seals close to 2000 cans per hour. Once the production system is turned on, it functions round the clock to seal and dispatch cans until the machine is turned off. The production system of Finesse is an example of _____.

Accepted Answer

A)  continuous-flow production 
B)  prototype production 
C)  batch production 
D)  job shop production

Question 12

The production team of U Sandals that manufactures women's footwear has determined the quantity of leather, threads, labor, and electricity required to make a pair of sandals. The collective efforts of all these resources would help the company determine its _____.

Accepted Answer

A)  economic order quantity 
B)  internal service quality 
C)  partial productivity 
D)  multifactor productivity

Question 13

White Planet Electronics is a company that sells the various inventories required by other companies to manufacture electronic gadgets. It spends $500 every month on a storage facility that manages and stores the parts. In this scenario, the money spent by White Planet Electronics toward the storage facility for the protection of the company's goods is called _____.

Accepted Answer

A)  ordering cost 
B)  setup cost 
C)  holding cost 
D)  stockout cost

Question 14

_____ indicates how much labor, capital, materials, and energy it takes to create an output.

Accepted Answer

A)  Multifactor productivity 
B)  Economic order quantity 
C)  Partial productivity 
D)  Inventory turnover

Question 15

__________assesses how efficiently companies use only one input, such as labor, when creating outputs.

Accepted Answer

A)  Multifactor productivity 
B)  Partial productivity 
C)  Internal service quality 
D)  Service recovery

Question 16

Which of the following characteristics of quality products is defined in terms of the average time between breakdowns?

Accepted Answer

A)  Serviceability 
B)  Durability 
C)  Reliability 
D)  Reciprocity

Question 17

Atrade Foods Inc. is a chain of supermarkets. Eighty percent of its employees' salary is based on earnings, and the remaining 20 percent is based on customer satisfaction ratings and service quality. In this case, Atrade Foods Inc. displays its commitment toward _____.

Accepted Answer

A)  total quality management 
B)  line-flow production 
C)  implementing Kanban system 
D)  dependent demand systems

Question 18

Manufacturing operations can be classified according to the depth of their inventory stock.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is true of multifactor productivity?

Accepted Answer

A)  It indicates a company's overall level of productivity relative to its competitors. 
B)  It assesses how efficiently companies use only one input, such as labor, when creating outputs. 
C)  It indicates the specific contributions that labor, capital, materials, or energy make to overall productivity. 
D)  It helps managers in analyzing the contributions of individual components that determine productivity.

Question 20

Bake Treats is a confectionery who makes cakes for special occasions and delivers them. They use gourmet ingredients while baking and delivering customized treats. In fact, they only start baking once they receive an official request from a customer. It is evident that Bake Treats has adopted a(n) _____.

Accepted Answer

A)  make-to-order operation 
B)  make-to-stock operation 
C)  assemble-to-order operation 
D)  assemble-to-stock operation

Exam 18: Managing Service and Manufacturing Operations

Gomez Home Appliances manufactures 10,000 refrigerators every month. The company spends $2,000 on labor, $5,000 on rent, $3,000 on machinery, and $1,500 on electricity every month. It can be concluded that the multifactor productivity of the company is _____.

Widget Corp. produced $10 billion worth of goods in the year 2016. If the company had 50 million hours of work in 2016, the productivity of the company is _____.

Empowering workers means permanently passing decision-making authority and responsibility from managers to workers

A moderate degree of processing occurs in _____.

Timothy is a manager in a footwear manufacturing company. He calculates the daily productivity by determining the amount of plastic required to produce a pair. This daily productivity is an example of _____.

Which of the following is a common characteristic of quality products and quality services?

In the context of the principles of total quality management,__________is an organizational goal to concentrate on meeting customers' needs at all levels of the organization.

The production team of U Sandals that manufactures women's footwear has determined the quantity of leather, threads, labor, and electricity required to make a pair of sandals. The collective efforts of all these resources would help the company determine its _____.

_____ indicates how much labor, capital, materials, and energy it takes to create an output.

__________assesses how efficiently companies use only one input, such as labor, when creating outputs.

Which of the following characteristics of quality products is defined in terms of the average time between breakdowns?

Atrade Foods Inc. is a chain of supermarkets. Eighty percent of its employees' salary is based on earnings, and the remaining 20 percent is based on customer satisfaction ratings and service quality. In this case, Atrade Foods Inc. displays its commitment toward _____.

Manufacturing operations can be classified according to the depth of their inventory stock.

Which of the following statements is true of multifactor productivity?