Deck 18: Managing Service and Manufacturing Operations

Question 1

The Belwick Railway Station operates 24 hours per day in all seven days of a week. On an average, the railway station handles 480 trains per day. Which of the following indicates the average productivity of the railway station?

A) 5 trains per hour
B) 10 trains per hour
C) 20 trains per hour
D) 25 trains per hour

Answer 1

C

Question 2

Brass Worx is a furniture manufacturer. The company's production team takes 240 hours to produce 800 pieces of furniture. Which of the following indicates the labor productivity of Brass Worx?

A) 2.17 hours per piece of furniture
B) 5.51 hours per piece of furniture
C) 3.33 pieces of furniture per hour
D) 2.60 pieces of furniture per hour

Answer 2

C

Question 3

The Lucitona International Airport operates 24 hours a day, seven days a week. On an average, the airport handles 4900 flights per week. Which of the following indicates the average productivity of the airport?

A) 204 flights per hour
B) 700 flights per day
C) 102 flights per hour
D) 350 flights per day

Answer 3

B

Question 4

Timothy is a manager in a footwear manufacturing company. He calculates the amount of materials required to meet the daily production targets-that is, to produce 1000 pairs of men's footwear. He then uses this information to measure the company's performance. In this scenario, Timothy most likely calculates the _____ of the company.

A) partial productivity
B) service capability
C) multifactor productivity
D) holding cost

Question 5

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

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

Question 6

Brian, the operations manager in a company that manufactures light bulbs, calculates the daily productivity at the factory by determiningthe amount of tungsten filaments required to produce a light bulb. In this scenario, Brian calculates _____.

A) partial productivity
B) service capability
C) multifactor productivity
D) the service recovery ratio

Question 7

The production team of Lining Corp., a company that manufactures soccer balls, has determined the quantity of latex rubber, threads, labor, and electricity required to make one soccer ball. The collective effort of all these resources would help Lining Corp. determine its _____.

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

Question 8

If a drilling rig operates 10 hours a day and takes 40 hours to drill 8 meters of earth's surface, the productivity of the drilling rig will be _____.

A) 2 meters per day
B) 1 meter per day
C) 0.8 meters per day
D) 0.4 meters per day

Question 9

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 _____.

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 10

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 _____.

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

Question 11

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

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

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 effort of all these resources would help the company determine its _____.

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

Question 13

If a machine requires 8 hours to produce 35 M10 bolts, the productivity of the machine will be _____.

A) 4.375 bolts per hour
B) 0.228 hours per bolt
C) 8.75 bolts per hour
D) 0.46 hours per bolt

Question 14

If a machine requires 40 tons of steel to produce 30 tons of reinforced rods, the productivity of the machine is _____.

A) 0.75
B) 1.33
C) 1.50
D) 0.67

Question 15

Which of the following statements is true of multifactor productivity?

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 role of environmental factors in the production of a company's goods.
D) It helps managers in analyzing the contributions of individual components that determine productivity.

Question 16

Crystalize is a decorative glassware manufacturer. The company's production team takes 8 hours to produce 96 identical glass items. Which of the following is the labor productivity of Crystalize?

A) 10 items per hour
B) 12 items per hour
C) 0.12 hours per item
D) 0.09 hours per item

Question 17

The production team of Widget Corp., a furniture manufacturer, has determined the amount of wood, metal, fabric, labor hours, capital, and the electricity required to make one chair. The collective effort of all these resources would help the company determine its _____.

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

Question 18

_____ refers to managing the daily production of goods and services.

A) Marketing management
B) Operations management
C) Project management
D) Brand management

Question 19

Which of the following is a kind of input that is frequently used when determining partial productivity?

A) Service quality
B) Labor
C) Finished goods
D) Profits

Question 20

Goldie is a manager in a company that manufactures wrought iron furniture. She assesses the performance of the company by determiningthe amount of iron required to produce a piece of furniture. In this scenario, Goldie focuses on _____.

A) partial productivity
B) service capability
C) multifactor productivity
D) a product pipeline

Question 21

In the context of quality-related characteristics of products and services, which of the following is a difference between serviceability and service reliability?

A) Serviceability is a characteristic of quality products, whereas service reliability is a characteristic of quality services.
B) Serviceability is defined as the mean time to failure, whereas service reliability is defined as the confidence that service providers are knowledgeable, courteous, and trustworthy.
C) Service reliability is inversely proportional to quality, whereas serviceability is directly proportional to quality.
D) Service reliability refers to the extent to which service providers give individual attention and care to customers' concerns and problems, whereas serviceability is the ability to consistently perform a service well.

Question 22

The Cool Store manufactures 200 air conditioners every week. The company spends $500 on labor, $3,000 on rent, $1,200 on equipment, and $900 on electricity to produce these air conditioners. Which of the following indicates the multifactor productivity of the company?

A) 0.036
B) 0.207
C) 0.103
D) 0.072

Question 23

Pathos Solutions, a technology solution company, recently became an ISO 14000-certified company. Based on this information, which of the following statements is true of Pathos Solutions?

A) It manages, monitors, and minimizes the harmful effects of the company on the environment.
B) It achieves consistency in quality management and quality assurance in the company.
C) It assures the management of security for all printing processes in the company.
D) It overlooks the occupational health and safety of management systems in the company.

Question 24

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

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

Question 25

Blooming Minds is a content management company that fulfills its electricity needs by using solar power. The company advocates eco-friendly methods of working, such as recycling paper and prohibiting the use of plastic. Based on this information, Blooming Minds is eligible to obtain an _____ certificate.

A) ISO 22000
B) ISO 8000
C) ISO 14000
D) ISO 41001

Question 26

Businesses that apply for the Baldrige Performance Excellence Award are judged on _____ criteria.

A) five
B) six
C) seven
D) eight

Question 27

The easier it is to maintain a working product or fix a broken product, the more _____ that product is.

A) reliable
B) serviceable
C) tangible
D) durable

Question 28

The extent to which service providers give individual attention and care to customers' concerns and problems is called _____.

A) reliability
B) responsiveness
C) assurance
D) empathy

Question 29

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

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

Question 30

Churchill Automobiles is a delivery truck manufacturer. It is a new company and wants to gather information on how to improve the standard of quality delivered by the company's production team. Based on this information, which of the following ISO standards must the company refer to?

A) ISO 15001
B) ISO 9000
C) SO 10001
D) ISO 12000

Question 31

Identify a difference between ISO 9000 and ISO 27000.

A) ISO 9000 is a series of twelve international standards, whereas ISO 27000 is a series of five international standards.
B) The ISO 9000 standards publications are specific and can only be used to make certain types of products, whereas the ISO 27000 are general standards and can be used for manufacturing any kind of product or delivering any kind of service.
C) ISO 9000 certification covers more than 50 percent of the requirements for the Baldrige Award, whereas ISO 27000 certification covers less than 10 percent of the requirements for the Baldrige Award.
D) ISO 9000 is a set of standards for achieving consistency in quality management and quality assurance in companies throughout the world, whereas ISO 27000 is a set of standards for managing and monitoring security techniques for information technology.

Question 32

Which of the following statements is true of the cost of applying for the Baldrige Award?

A) Eligibility fee is waived off for small businesses.
B) The application fee is higher for small businesses than for manufacturing firms.
C) A site visitation fee is charged for small businesses.
D) An assessment fee is rarely charged for large corporations.

Question 33

Sundown Communications, a media company, recently became ISO 9000 certified. Based on this information, which of the following statements is true of Sundown Communications?

A) It manages, monitors, and minimizes the harmful effects of the company on the environment.
B) It displays consistency in quality management and quality assurance in the company.
C) It assures security for all printing processes in the company.
D) It overlooks the occupational health and safety of management systems in the company.

Question 34

Carlos Corp., acar servicing company, is known for consistentlyproviding excellent services to itscustomers. In the context of the characteristics of a quality service, which of the following characteristics is being displayed by Carlos Corp.?

A) Service assurance
B) Service responsiveness
C) Service durability
D) Service reliability

Question 35

Which of the following statements is true of the International Organization for Standardization (ISO) 9000 certification?

A) It helps organizations achieve consistency in quality assurance.
B) It helps organizations specifically manage, monitor, and minimize harmful effects on the environment.
C) It requiresa companyto show that it is following its own procedures for improving production.
D) It is specifically applicable to the travel and tourism industry.

Question 36

Which of the following is a difference between partial productivity and multifactor productivity?

A) Unlike multifactor productivity, partial productivity only indicates how much labor and capital a company requires to produce an output.
B) Unlike multifactor productivity, partial productivity indicates a company's overall level of productivity relative to its competitors.
C) Unlike partial productivity measures, multifactor productivity measures do not indicate the specific contributions that labor, capital, materials, or energy make to overall productivity.
D) Unlike partial productivity measures, multifactor productivity measures can help managers determine what factors need to be adjusted or in what areas adjustment can make the most difference in overall productivity.

Question 37

The International Organization for Standardization (ISO) helps set standards for _____ countries.

A) 143
B) 153
C) 163
D) 173

Question 38

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.

A) customer loyalty
B) customer focus
C) customer serviceability
D) customer profiling

Question 39

Identify a difference between a product breakdown and product failure.

A) Unlike product failure, a product breakdown assumes that a product can be repaired.
B) Product breakdown is a term that is generally used in the case of low-cost products, whereas product failure is a term that is mainly used for high-end products.
C) Unlike a product breakdown, the cost of product failure has to be borne by the company.
D) A product breakdown refers to the intense or irreversible damage of a product, whereas product failure refers to moderate damage of the component parts in a product.

Question 40

Which of the following statements is true of the Baldrige Performance Excellence Awards?

A) Eligibility fee is not charged when someone applies for the Baldrige Award.
B) Application fee is not charged for small businesses that are eligible for the Baldrige Award.
C) The Baldrige Award includes up to three awards that are given annually in various categories.
D) The Baldrige Award is given on the basis of the level of compliance to ISO 9000 standards.

Question 41

Rekky n Brekky is a café where part of its employees' monthly salary depends on customer satisfaction. Eighty percent of the incentive is based on performance and the remaining twenty percent is based on customer satisfaction ratings and the quality of service. In this case, Rekky n Brekky is committed to _____.

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

Question 42

Alaya's Secret is a chain of beauty salons, where part of the employees' monthly leaves is granted depending on customer feedback. Two days of leave are granted based on performance and the remaining three days are granted based on customers' feedback on the quality of service. In this case, Alaya's Secret is committed to _____.

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

Question 43

In the context of total quality management, _____ is a deviation in the form, condition, or appearance of a product from the quality standard for that product.

A) aberration
B) variation
C) divergence
D) contention

Question 44

When customers become dissatisfied with the service they have received, service businesses must switch to the process of _____.

A) service recovery
B) service enhancement
C) service delivery
D) business process reengineering

Question 45

In the context of the principles of total quality management (TQM), _____ is an organization's ongoing commitment to constantly assess and refine the processes and procedures used to create products and services.

A) service recovery
B) internal service quality
C) service reliability
D) continuous improvement

Question 46

Wyatt Four-Wheel Services is a popular garage, where part of the 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 _____.

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

Question 47

In the context of the principles of total quality management (TQM), _____ means collaboration between managers and nonmanagers, across business functions, and between companies, customers, and suppliers.

A) responsiveness
B) variation
C) teamwork
D) continuous improvement

Question 48

The Cabin Retreat is a chain of hotels where part of its employees' monthly bonus depends on customer satisfaction. Ninety percent of the incentive is based on performance and the remaining ten percent is based on customer satisfaction ratings and the quality of service. In this case, The Cabin Retreat is committed to _____.

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

Question 49

Woodlander is a chain of resorts where part of the 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 class of service. In this case, Woodlander is committed to _____.

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

Question 50

Fit n Fine is a clothing company that is famous for its impressive standards of product quality. Recently, the company introduced a new collection of office wear that failed to grab the attention of its target customer group because of its inconsistent quality. This _____ in quality standard led the company to incur heavy losses.

A) conformity
B) stagnation
C) variation
D) distortion

Question 51

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 _____.

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

Question 52

Bubbles Bath and Body Shop manufactures cosmetic products. Recently, the company manufactured a collection of new organic soaps and shampoos. One batch of the organic soaps was discarded because they were a bit different in size and could not meet the pre-defined quality standards. Which of the following was the main reason for discarding the batch of soaps?

A) Low multifactor productivity
B) Serviceability of the soaps
C) Variation in the soaps
D) Low partial productivity

Question 53

A _____ does not start processing or assembling products until it receives a customer request.

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

Question 54

Bake Treats is a confectionery that makes cakes for special occasions and delivers them. They use gourmet ingredients while baking and deliver 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) _____.

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

Question 55

Courtney recently ordered a few books online. However, she received the wrong order. She was completely dissatisfied and returned the books. She then wrote to the customer service expressing her anger. In response, the manager of the store sent her an apology via e-mail. He also sent her the books she ordered and refunded her money. Courtney was impressed and ordered books only from that store thereafter. In this scenario, the process adopted by the online store to regain Courtney's trust is called _____.

A) service durability
B) service reliability
C) service recovery
D) service capability

Question 56

Rodney is a manager at Gordon Publications. He meets his subordinates every week to come up with new ideas for articles to publish in the company's weekly magazine. In this scenario, this collaboration is termed as _____.

A) the service-profit chain
B) teamwork
C) customer focus
D) leadership

Question 57

According to total quality management (TQM), which of the following should be a company's primary goal?

A) Reciprocity
B) Distinctive competency
C) Participative management
D) Customer satisfaction

Question 58

Michael ordered a pair of shoes from an e-commerce website. The company sent his order to the wrong address and this confusion delayed the delivery by 10 days. Michael was disappointed by this and stopped ordering shoes from that online store. To regain his trust, the company apologized for the inconvenience and sent him a gift voucher worth $1000 that he could redeem at any e-commerce website. This gesture proved to be fruitful and Michael recommended this e-commerce company to all his friends. The process adopted by the e-commerce company to regain Michael's trust is called _____.

A) service durability
B) service recovery
C) service reliability
D) service capability

Question 59

Service recovery sometimes requires service employees to:

A) temporarily stop contacting highly dissatisfied customers.
B) permanently pass decision-making authority and responsibility to managers.
C) switch to the process of service delivery.
D) perform heroic service acts that delight highly dissatisfied customers.

Question 60

According to the service-profit chain, success begins with:

A) autocratic management.
B) a high degree of centralization in service operations.
C) how well management treats employees.
D) the availability of enterprising ideas.

Question 61

In the context of manufacturing operations, unlike make-to-order operations, make-to-stock operations:

A) produce highly specialized products.
B) involve the highest degree of processing.
C) do not start assembling products until a customer order is received.
D) are highly dependent on the accuracy of sales forecasts.

Question 62

Sombre is a toy manufacturer that orders the components required to make toys way before its customers make a purchase. They make modules with those components and later, upon receiving customer requests, make toys using those modules. They do this to make sure they are able to cater to the demands of the customers. It is evident that Sombre has adopted a(n) _____.

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

Question 63

Jogan Electronics manufactures television sets. It gathers all the components required to make a television set before customers book television sets for purchase. It accumulates all the necessary materials for production from its suppliers and ensures that it has all the parts to manufacture the television sets before it receives a customer order. This type of operation is called a(n) _____.

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

Question 64

Gem Genie is a designer jewelry store that runs its processes only on make-to-order operations. Based on this information, which of the following statements is true of Gem Genie?

A) The company orders parts and assembles modules ahead of customer orders.
B) The company produces or assembles highly specialized products for customers.
C) The company is highly dependent on the accuracy of sales forecasts.
D) The company starts assembling finished products before receiving customer orders.

Question 65

_____ are preestablished, occur in a serial manner, and are dedicated to making one type of product.

A) One-off production processes
B) Line-flow production processes
C) Batch production processes
D) Job shop processes

Question 66

The bottling system at Trink Inc., a soft drink manufacturing company, dispatches about 1,000 bottles an hour. Once the conveyor system is turned on, it functions constantly to cap and dispatch bottles until the machine is turned off. The bottling system of Trink Inc. illustrates _____.

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

Question 67

Strady Gadgets is an electronic goods manufacturer. The company orders the materials required to make its products from its suppliers and completes production before customers place their orders. This type of operation is called a(n) _____.

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

Question 68

Raver Gear is a company that manufactures and sells riding gear, such as helmets, jackets, and gloves. It has adopted assemble-to-order operations. Based on this information, which of the following statements is true of Raver Gear?

A) The company orders parts and assembles modules ahead of customer orders.
B) The company produces or assembles highly specialized products for customers.
C) The company is highly dependent on the accuracy of sales forecasts.
D) The company starts assembling finished products before receiving customer orders.

Question 69

Cooling Systemz is a company that manufactures electric heaters and air conditioners. Customers purchase standardized items from this store for their homes and offices. The company has adopted make-to-stock operations. Based on this information, which of the following statements is true of Cooling Systemz?

A) The company orders parts and assembles modules ahead of customer orders.
B) The company produces or assembles highly specialized products for customers.
C) The company is not dependent on the accuracy of sales forecasts.
D) The company starts assembling finished products before receiving customer orders.

Question 70

Hue Fabrics, a garment manufacturing company, produces around 2000 identical skirts per day. The production system used by the company is very efficient, and it makes close to 100 skirts per hour. Once the production starts, the system functions round the clock to spin and release garments until the machine is turned off. The manufacturing operation of Hue Fabrics is an example of _____.

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

Question 71

Which of the following is a difference between line-flow production processes and batch production processes?

A) Line-flow production processes are the least standardized manufacturing operations, whereas batch production processes are the most standardized manufacturing operations.
B) Batch production is used to make a single type of product, whereas line-flow production is used to make large quantities of different products.
C) Batch production produces products continuously, whereas line-flow production produces products at a discrete rate.
D) Line-flow production processes are inflexible, whereas batch production processes are flexible.

Question 72

In the context of manufacturing operations, a moderate degree of processing occurs in _____.

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

Question 73

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 manufacturing operation of TrinkCan is an example of _____.

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

Question 74

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 manufacturing operation of Finesse is an example of _____.

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

Question 75

Which of the following scenarios best illustrates batch production?

A) Milkest, a company that sells dairy products, uses standard packaging for processed cheese.
B) Dantor, an automobile manufacturing company, performs the assembly of automobile parts in an assembly line.
C) Raydor, a company that sells component parts, performs turning, drilling, and milling of plastics and alloy steels to make fifty different parts in a day.
D) Alvend, a company that supplies raw materials to the machinery manufacturing industry, finishes the production of hundred bolts and hundred nuts in standard sizes in two hours.

Question 76

Shiny Rides is an automobile company that caters to people who invest in customized vehicles. To get their vehicles ready and delivered on time, customers are required to confirm the customization requirements they want. Unless and until the company receives a confirmed booking, it does not start the customization process. It is evident that Shiny Rides has adopted a(n) _____.

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

Question 77

The lowest degree of processing occurs in _____.

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

Question 78

Slurp Packaged Foods, a packaged food manufacturing company, produces around 5,000 cans of processed meat a day. The production system used by the company is very efficient, and it releases close to 800 cans an hour. Once the production system is turned on, it functions round the clock to drop off cans until the machine is turned off. The manufacturing operation of Slurp Packaged Foods is an example of _____.

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

Question 79

AfterGlow, a body and bath products manufacturing company, produces around 12,000 bottles of shampoo a day. The production system used by the company is very efficient, and it packs close to 1000 bottles per hour. Once the production system is turned on, it functions round the clock to cap and deposit bottles until the machine is turned off. The manufacturing operation of AfterGlow is an example of _____.

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

Question 80

Which of the following statements best explains the term inventory?

A) It is the amount and number of raw materials, parts, and finished products that a company has in its possession.
B) It is the amount and number of products or services that a company dispatches to the market annually.
C) It is the capability of a company to produce a set number of products per month.
D) It is the capability of a company to buy raw materials or parts for production processes.