Deck 8: Managing Service and Manufacturing Operations

Question 1

The transformation process occurs only in companies that manufacture tangible goods.

Answer 1

False
Explanation: The transformation process occurs in the production of both goods and services.

Question 2

The transformation process occurs in

A)service companies.
B)all organizations,regardless of product.
C)manufacturing companies.
D)idea consultants.
E)government agencies.

Answer 2

B
Explanation: At the heart of operations management is the transformation process through which inputs (resources such as labor,money,materials,and energy)are converted into outputs (goods,services,and ideas),different types of transformation processes take place in organizations that provide services,such as airlines,colleges,and most nonprofit organizations,in addition to manufacturing.

Question 3

Different kinds of transformation processes take place in organizations that provide services.

Answer 3

True
Explanation: Different types of transformation processes take place in organizations that provide services,such as airlines,colleges,and most nonprofit organizations.

Question 4

To ensure quality and efficiency,operations managers take ________ at various points in the transformation process and compare them to established standards.

A)breaks
B)samples
C)calculations
D)marketing research
E)feedback

Question 5

If an employee is involved with transforming resources into goods and services,then he is in

A)marketing.
B)financing.
C)human resources.
D)operations management.
E)budgeting.

Question 6

Production refers to all the activities involved in producing products,while operations refers to the physical process of transforming resources into goods and services.

Question 7

Viewed from the perspective of operations,the money used to purchase a carpenter's tools and the electricity used to run his power saw are

A)processes.
B)outputs.
C)inventory.
D)inputs.
E)maintenance costs.

Question 8

From an operations perspective,food sold at a restaurant and services provided by a plumbing company are

A)processes.
B)inputs.
C)outputs.
D)inventory.
E)costs.

Question 9

For most organizations,the ultimate goal of the transformation process is to produce outputs that are worth more than the combined costs of inputs.

Question 10

The transformation process is

A)the development and administration of activities that transform resources into goods,services,and ideas.
B)the conversion of human,financial,and physical resources into goods,services,and ideas.
C)labor,materials,energy,and money.
D)goods and services.
E)the development,promotion,pricing,and distribution of products.

Question 11

If an employee is associated with producing goods,services,and ideas that satisfy the needs of customers,then she works most closely with

A)financing.
B)budgeting.
C)production.
D)human resources.
E)operations.

Question 12

Transformation processes occur

A)only in manufacturing organizations.
B)only in marketing departments.
C)in all organizations.
D)only in service providers.
E)only in industrial plants.

Question 13

The transformation process is at the heart of operations management.

Question 14

Operations management includes responsibility for

A)customer service.
B)inputs and outputs.
C)product development.
D)pricing.
E)promotion.

Question 15

Operations management refers to those processes used in making both tangible and intangible products.

Question 16

Describe the transformation process,from inputs to outputs,for a product or service of your choosing.

Question 17

Outputs include labor,materials,energy,and money.

Question 18

What is operations management?

Question 19

Operations management has the primary responsibility for

A)determining customer wants and needs.
B)conducting research on goods/service feasibility.
C)creating products that satisfy customers.
D)developing an appropriate distribution system.
E)deciding what promotional activities will be best.

Question 20

The number of steps in the transformation process is always the same,no matter what the product or service.

Question 21

In a nonprofit organization like Habitat for Humanity,inputs such as money,materials,information,and volunteer time and labor are used to transform raw materials into homes for needy families.

Question 22

Why do the products of service providers tend to be more customized than those of manufacturers?

A)Differing customers have differing needs
B)Because all customers are the same
C)Technological innovations have reduced variability
D)There is more capital required in service provision
E)It is easy to measure productivity

Question 23

Manufacturers and service providers differ in the nature and consumption of their output.

Question 24

Manufacturers' products are typically

A)more labor intensive than service providers'.
B)less uniform than service providers'.
C)more difficult to inventory than service providers'.
D)more standardized than service providers'.
E)cheaper than service providers'.

Question 25

Modular design allows products to be repaired quickly,but the components are often expensive.

Question 26

How do operations for manufacturers and service providers differ?

Question 27

Actual performance of the service provider's product typically occurs

A)several days after purchase.
B)outside the service provider's facility.
C)at the point of consumption.
D)in the buyer's home.
E)before the point of consumption.

Question 28

Compared to service providers,manufacturers generally

A)are more labor intensive.
B)are more capital intensive.
C)customize their outputs.
D)have difficulty measuring productivity.
E)produce intangible outputs.

Question 29

Consumer needs and wants often dictate a production process.

Question 30

The fact that a hairdresser gives each customer a different haircut relates to which of the following points of difference between service providers and manufacturers?

A)Nature and consumption of output.
B)Uniformity of inputs.
C)Labor required.
D)Measurement of productivity.
E)Uniformity of output.

Question 31

The nature of the service provider's product requires

A)less employee input.
B)a higher degree of customer contact.
C)a lesser degree of customer contact.
D)more expensive inputs.
E)more standardization.

Question 32

Which of the following is not a point of difference between service providers and manufacturers?

A)Services are more labor-intensive
B)Manufacturing has more uniform outputs
C)Services do not undergo a transformation process
D)It is straightforward to measure manufacturing productivity
E)Services have less control over the variability of their inputs

Question 33

Money,employees,time,and equipment represent an airline's ________ to the transformation process.

A)outputs
B)inputs
C)products
D)services
E)intangibles

Question 34

To receive a haircut,you generally have to go to a barbershop or salon.To which of the following characteristics does this pertain?

A)Uniformity of inputs
B)Uniformity of outputs
C)Labor required
D)Measurement of productivity
E)Nature and consumption of output

Question 35

Why do services tend to be more labor-intensive than manufacturing?

Question 36

For most organizations,the ultimate objective is for produced outputs to be

A)easy to develop.
B)tangible,hard goods.
C)inexpensive.
D)worth more than the costs of input.
E)equal to the costs of input.

Question 37

Variations in demand,service requirements,and the intangibility of the product make measuring productivity more difficult for manufacturers.

Question 38

Service providers are generally less labor-intensive because of the high degree of customization.

Question 39

A company that uses a fixed-position layout is often called a project organization because it is involved in large,complex projects.

Question 40

It is not necessary for a product to satisfy a need or a want.

Question 41

What is sustainability and how does it impact manufacturing?

Question 42

A planning system that schedules the precise quantity of materials needed for production is called a just-in-time system.

Question 43

Intermittent organizations typically use the fixed-position layout.

Question 44

How have computers and robots influenced the operations of business?

Question 45

Facility location decisions are complex because

A)all customers want plants nearby.
B)transportation costs are prohibitively high.
C)delivery speed is of prime concern.
D)proximity to market is crucial.
E)they involve the evaluation of a number of important factors and the costs are high.

Question 46

Taxes are an important consideration when deciding where to locate a production facility.

Question 47

Operations managers have little concern for supply-chain management activities.

Question 48

A metal fabrication plant with a cutting department,a drilling department,and a polishing department would likely use which of the following layouts?

A)Fixed position
B)Horizontal position
C)Process
D)Geographical
E)Customer based

Question 49

A company that manufactures large products,such as houses or bridges,may require that all resources be brought to a central location during production.This type of facility layout is called

A)fixed-position.
B)product.
C)line.
D)central control.
E)assembly line.

Question 50

A hospital having an x-ray,obstetrics,emergency room,and other units probably would best be classified as a(n)

A)intermittent organization.
B)project organization.
C)continuous manufacturing organization.
D)fixed organization.
E)HMO.

Question 51

A just-in-time inventory management system saves money and requires less storage space by using smaller amounts of materials that arrive just when they are needed.

Question 52

Purchasing is the buying of all materials needed by the organization.

Question 53

An organization that creates many products with similar characteristics,such as automobiles,television sets,or vacuum cleaners,would most likely be which of the following types of organizations?

A)Continuous manufacturing
B)Intermittent manufacturing
C)Project manufacturing
D)Assembly line
E)Fixed-position

Question 54

Building a computer so that components can be installed in different configurations to meet customers' needs is a result of

A)flexible manufacturing.
B)modular design.
C)customization.
D)specialization.
E)varied engineering.

Question 55

If ABC Computer Company is determining demand for its future products and how much consumers are willing to pay,the company will likely rely on

A)the economy.
B)marketing research.
C)the competition.
D)the past.
E)intuition.

Question 56

A primary reason for using standardization is to

A)reduce production costs.
B)increase consumer options.
C)reduce product quality.
D)increase variations.
E)foster creativity.

Question 57

A company performing large,complex tasks such as construction or exploration is called a(n)

A)continuous manufacturing organization.
B)intermittent organization.
C)project organization.
D)construction company.
E)oil company.

Question 58

The majority of companies purchase all materials needed to make their finished products.

Question 59

The term standardization means

A)ensuring that every product has the same quality.
B)that similar products,manufactured by different companies,all operate in the same manner.
C)making identical,interchangeable components or products.
D)making the exact product the customer wants.
E)all of the above.

Question 60

Managing finished products and packaging them are activities most closely associated with marketing.

Question 61

What considerations must managers make after materials have been procured and their use has been determined?

Question 62

Within organizations,purchasing is also referred to as

A)consumption.
B)disposition.
C)acquisitions.
D)procurement.
E)budgeting.

Question 63

Which of the following activities is not included in supply chain management?

A)Getting products to customers
B)Obtaining and managing raw materials
C)Managing finished products
D)Packaging finished products
E)Researching and developing products

Question 64

What is the economic order quantity model?

Question 65

Service businesses cannot incorporate quality standards.

Question 66

The ISO 9000 is a series of international quality management standards for organizations.

Question 67

The degree to which a good or service meets the demands and requirements of customers is called customer satisfaction.

Question 68

Minimizing inventory by providing an almost continuous flow of items from suppliers to the production facility is referred to as

A)just-in-time management.
B)economic ordering.
C)material requirements planning.
D)logistics.
E)operations management.

Question 69

It is especially difficult to measure quality characteristics when

A)a firm uses ISO 9000.
B)a firm has a total quality management program.
C)the product is a good.
D)the product is a service.
E)a firm uses statistical process control.

Question 70

Determining quality can be difficult.

Question 71

A model that identifies the optimum number of items to minimize the costs of managing them is called

A)just-in-time management.
B)flexible scheduling.
C)material requirements planning.
D)the economic order quantity model.
E)logistics.

Question 72

The term used to refer to the raw materials,components,completed or partially completed products,and pieces of equipment a firm uses is

A)inventory.
B)order quantities.
C)production.
D)tangibles.
E)intangibles.

Question 73

The buying of all materials needed by the organization is called

A)consumer behavior.
B)capital expenditures.
C)purchasing.
D)buyer behavior.
E)acquisitions.

Question 74

The process of determining how many supplies and goods are needed,keeping track of quantities on hand,each item's location,and who is responsible for it is called

A)the economic order quantity model.
B)just-in-time inventory management.
C)material-requirements planning.
D)inventory control.
E)procurement.

Question 75

When managing quality in manufacturing,when is sampling likely to be used?

A)When inspection tests are destructive
B)When every product absolutely must be tested
C)Sampling is always used in manufacturing
D)Sampling is never used in manufacturing
E)Sampling is generally used in conjunction with inspection tests

Question 76

All activities involved in obtaining and managing raw materials and component parts,managing finished products,packaging them,and getting them to customers are part of

A)resource management.
B)supply chain management.
C)engineering.
D)finance.
E)strategic planning.

Question 77

Inspection reveals whether a product meets quality standards.

Question 78

Materials that have been purchased to be used in making other products are included in

A)finished inventory.
B)partial inventory.
C)raw materials inventory.
D)supplier inventory.
E)components parts inventory.

Question 79

Quality is a critical element of operations management.

Question 80

A planning system that schedules the precise quantity of materials needed for production is called

A)just-in-time management.
B)material-requirements planning.
C)economic order quantities.
D)flexible scheduling.
E)cycle time management.