Deck 1: Using Operations to Compete

Question 1

Support functions in an organization include Accounting,Human Resources and Engineering.

Answer 1

True

Question 2

Quality is more easily measured in a service process than in a manufacturing process.

Answer 2

False

Question 3

The three main line functions of any business include Operations,Finance and Marketing.

Answer 3

True

Question 4

Contact with the customer is usually higher in a manufacturing process than in a service process.

Question 5

The supplier relationship process selects the suppliers of services,materials and information,while the order fulfillment process facilitates the timely and efficient flow of these items into the firm.

Question 6

A supply chain is the cumulative work of a firm's processes.

Question 7

Environmental scanning refers to the unique resources and strengths that an organization's management considers when formulating a strategy.

Question 8

A core process is a set of activities that delivers value to external customers.

Question 9

At the level of the firm,service providers offer just services and manufacturers offer just products.

Question 10

Manufacturing processes usually have long response times compared to service processes.

Question 11

Inputs to a process can include human resources.

Question 12

At the process level,it is much easier to distinguish whether the process is providing a service or manufacturing a product.

Question 13

Every process has a customer.

Question 14

Manufacturing processes tend to be capital intensive,while service processes tend to be more labor intensive.

Question 15

Operations management refers to the direction and control of inputs that transform processes into products and services.

Question 16

As a functional area of a business,Operations translates materials and services into outputs.

Question 17

A firm's core competencies should determine its core processes.

Question 18

A nested process refers to a process within a process.

Question 19

In a service process,output can be inventoried.

Question 20

A process involves transforming inputs into outputs.

Question 21

Consistent quality is not important to today's consumers.

Question 22

Table 1.1
You are the Production Manager for the toy manufacturing process at the ABC Company.
Use the information provided in Table 1.1.An example of an external supplier is:

A)The lumber company
B)The Receiving Department at ABC
C)The Shipping Department at ABC
D)The toy store at the mall

Question 23

Labor productivity is an index of the output per person or hours worked.

Question 24

Most products today are composites of global materials and services from throughout the world.

Question 25

Operations managers are involved at both the strategic and tactical levels of corporate strategy.

Question 26

Regardless of how departments like Accounting,Engineering,Finance,and Marketing function in an organization,they are all linked together through:

A)management.
B)processes.
C)customers.
D)stakeholders.

Question 27

Table 1.1
You are the Production Manager for the toy manufacturing process at the ABC Company.
Use the information provided in Table 1.1.An example of an external customer is:

A)The lumber company
B)The Receiving Department at ABC
C)The Shipping Department at ABC
D)The toy store at the mall

Question 28

The foundations of modern manufacturing and technological breakthroughs were inspired by the creation of the mechanical computer by:

A)Charles Babbage
B)James Watt
C)Eli Whitney
D)Frederick Taylor

Question 29

Table 1.1
You are the Production Manager for the toy manufacturing process at the ABC Company.
Use the information provided in Table 1.1.An example of an internal supplier is:

A)The lumber company
B)The Receiving Department at ABC
C)The Shipping Department at ABC
D)The toy store at the mall

Question 30

Strategic plans are developed farther into the future than tactical plans.

Question 31

Competitive priorities are the means by which operations implements the firm's corporate strategies.

Question 32

Table 1.1
You are the Production Manager for the toy manufacturing process at the ABC Company.
Use the information provided in Table 1.1.An example of an internal customer is:

A)The lumber company
B)The Receiving Department at ABC
C)The Shipping Department at ABC
D)The toy store at the mall

Question 33

Productivity is measured as input divided by output.

Question 34

Which of the following statements is more of a general characteristic of a manufacturing organization,as compared to a service organization?

A)Short-term demand tends to be highly variable.
B)Operations are more capital intensive.
C)Outputs are more intangible.
D)Quality is more difficult to measure.

Question 35

Operations management is part of a production system that can be described in the following manner: Organization: inputs→processes→outputs.
Which one of the following correctly describes a production system?

A)airline: pilots→planes→transportation
B)bank: tellers→computer equipment→deposits
C)furniture manufacturer: wood→sanding→chair
D)telephone company: satellites→cables→communication

Question 36

Which of the following is an example of a nested process?

A)At the start of the new semester,a student first pays tuition and then goes to the bookstore.
B)A customer service representative verifies a caller's account information.
C)A candidate's intent to graduate is checked for financial holds by the Bursar and for degree requirements by Advising before the diploma mill prints their sheepskin.
D)A stockbroker calls a client and advises her to sell silver short.

Question 37

Volume flexibility involves accelerating or decelerating the rate of production of services or products to handle large fluctuations in demand.

Question 38

The increased global presence of many firms has lessened the burden to behave ethically.

Question 39

Flexibility is a possible competitive priority.

Question 40

A firm once made purchasing decisions based on which supplier had the lowest cost.But once cash flow was healthy,purchasing decisions were made based on which company could provide the goods and services the fastest.In this case,delivery speed is clearly the order qualifier.

Question 41

The process that includes the activities required to produce and deliver the service or product to the customer is called the:

A)customer relationship process.
B)new service development process.
C)order fulfillment process.
D)supplier relationship process.

Question 42

All of the following are core competencies except:

A)workforce.
B)competitive priorities.
C)facilities.
D)market and financial know-how.

Question 43

You are interested in buying a laptop computer.Your list of considerations include the computer's speed in processing data,its weight,screen size,and price.You consider a number of different models,and narrow your list based on speed and monitor screen size,then finally select a model to buy based on its weight and price.In this decision,weight and price are examples of:

A)order qualifiers.
B)the voice of the supplier.
C)order winners.
D)the voice of the customer.

Question 44

The process that designs and develops new products and services is called the:

A)customer relationship process.
B)new service development process.
C)order fulfillment process.
D)supplier relationship process.

Question 45

Manufacturing processes usually have:

A)physical,durable output.
B)high levels of customer contact.
C)output that cannot be inventoried.
D)low levels of capital intensity.

Question 46

Competitive priorities define the dimensions on which companies should excel in producing their products or services.Which one of the following statements is TRUE?

A)A firm that competes on the dimension of volume flexibility is more likely to manufacture products that experience a seasonal demand variation.
B)It is impossible for a firm to improve cost and quality simultaneously.
C)A firm offering little customization cannot compete simultaneously on the dimension of consistent quality.
D)A firm that competes on the dimension of customization tends to have operating systems that are inflexible.

Question 47

The first three cars I bought all fell apart around 50,000 miles.It was called planned obsolescence and no one seemed to care until companies entered the market that promised 70,000,then 80,000,and finally 100,000 warranties.What sets a great car apart from a good one now is not the quality,which is assumed,but performance,safety and fuel economy.A car that can achieve all three is highly sought after.In the automotive market,performance,safety and fuel economy are sterling examples of:

A)order winners.
B)the voice of the engineer.
C)order qualifiers.
D)the voice of the customer.

Question 48

The Gap,Inc.has targeted teenagers and young adults needing casual clothes and,for its GapKids stores,the parents or guardians of infants through 12-year-olds.This is an example of:

A)market segmentation.
B)a collaborative effort between the company and its customers.
C)a needs assessment.
D)a mission statement.

Question 49

In response to social and political moves to discourage cigarette smoking,major cigarette manufacturers have had to diversify into other products.Identifying the pressures against smoking is an example of:

A)environmental scanning.
B)market segmentation.
C)flow strategy.
D)mission statement development.

Question 50

The process that facilitates the placement of orders and identifies,attracts,and builds relationships with external customers is called the:

A)customer relationship process.
B)new service development process.
C)order fulfillment process.
D)supplier relationship process.

Question 51

Budgeting,recruiting,and scheduling are examples of these types of processes.

A)development
B)core process
C)support process
D)system

Question 52

Core competencies are:

A)product or service attributes that represent the needs of a particular market segment.
B)another name for competitive priorities.
C)various flow strategies.
D)the unique resources and strengths that management considers when formulating strategy.

Question 53

Which of the following is an example of a core competency?

A)facilities
B)top quality
C)low-cost operations
D)on-time delivery

Question 54

Admission to the prestigious school had become so competitive that a high GPA is no longer enough to separate one fresh-faced high school student from another.Today's outstanding candidate must also demonstrate their involvement in a myriad of extracurricular activities in order to be admitted.It seems that good grades are now:

A)the voice of the engineer.
B)order qualifiers.
C)order winners.
D)the voice of the customer.

Question 55

The framework for carrying out all of an organization's functions is:

A)the competitive priority.
B)the corporate strategy.
C)the market analysis.
D)the organizational design.

Question 56

A set of activities that delivers value to external customers is a:

A)supply chain.
B)core process.
C)support process.
D)system.

Question 57

A company realizes that recent layoffs at its primary customers reflect potential falling demands for its customers' products,and hence for its own products.The company has engaged in:

A)flow strategy.
B)market segmentation.
C)mission statement redefinition.
D)environmental scanning.

Question 58

Which one of the following statements is more of a general characteristic of a service organization,as compared to a manufacturing organization?

A)Output can be inventoried.
B)The response time is longer.
C)There is less customer contact.
D)The facilities tend to be smaller.

Question 59

Service processes usually have:

A)physical,durable output.
B)low levels of customer contact.
C)output that can be inventoried.
D)low levels of capital intensity.

Question 60

Competitive priorities:

A)may change over time.
B)are the cost,quality,time and flexibility dimensions that a process or supply chain actually possesses and is able to deliver.
C)are used to distinguish between a service that is considered and one that is actually purchased.
D)are developed by a review of internal operations capabilities.

Question 61

Which of the following would be considered an advantage of global competition?

A)ability to safeguard proprietary technology in working with offshore suppliers
B)a recent climate of low political risk and lessening nationalization
C)high levels of worker skills in foreign countries mean less required training
D)strong global competition and increased worldwide demand

Question 62

The Burdell Company makes tee shirts on an assembly line that works 5 days per week and uses 5 workers.Over the past 4 weeks,the line has produced 16,000 shirts.The line's productivity for the 4-week period is:

A)20 shirts per worker per day.
B)50 shirts per worker per day.
C)160 shirts per worker per day.
D)400 shirts per worker per day.

Question 63

Table 1.2
The Abco Company manufactures electrical assemblies.The current process uses 10 workers and produces 200 units per hour.You are considering changing the process with new assembly methods that increase output to 300 units per hour,but will require 14 workers.Particulars are as follows:
Workers are paid at a rate of $10 per hour,and overhead is charged at 140% (or 1.4 times)labor costs.Finished switches sell for $20 / unit.
Use the information provided in Table 1.2.What is the multifactor productivity of the current process?

A)less than or equal to 8.0
B)greater than 8.0 but less than or equal to 10.0
C)greater than 10.0 but less than or equal to 12.0
D)greater than 12.0

Question 64

It takes the Blacksburg shipyard twenty six weeks with 500 workers to build a small tanker.Material costs are $32 million and overhead costs are $2 million.Workers cost $40 per hour including benefits and work 40 hours per week.The ship sells for $75 million.What is the multifactor productivity ratio?

A)less than 1.0
B)greater than 1.0 but less than or equal to 2.0
C)greater than 2.0 but less than or equal to 3.0
D)greater than 3.0

Question 65

You are interested in buying a laptop computer.Your list of considerations include the computer's speed in processing data,its weight,screen size and price.You consider a number of different models,and narrow your list based on its speed and monitor screen size,then finally select a model to buy based on its weight and price.In this decision,speed and monitor screen size are examples of:

A)order winners.
B)the voice of the supplier.
C)the voice of the customer.
D)order qualifiers.

Question 66

Using an airline example for competitive priorities,the process capability of handling service needs of all market segments and promotional programs would be best described by:

A)top quality.
B)variety.
C)consistent quality.
D)delivery speed.

Question 67

The details of weekly output and input for a fabrication process are as follows: output is 400 units,with a standard selling price of $100 per unit.For the week,total labor costs are: 10 workers at 40 hours for the week,paid $15 per hour.Total material costs for the 400 units are $5,000.Weekly overhead is charged at the rate of 1.5 times the labor costs.What is the multifactor productivity for the week?

A)0.02
B)0.75
C)1.50
D)2.00

Question 68

Table 1.2
The Abco Company manufactures electrical assemblies.The current process uses 10 workers and produces 200 units per hour.You are considering changing the process with new assembly methods that increase output to 300 units per hour,but will require 14 workers.Particulars are as follows:
Workers are paid at a rate of $10 per hour,and overhead is charged at 140% (or 1.4 times)labor costs.Finished switches sell for $20 / unit.
Use the information provided in Table 1.2.What is the multifactor productivity of the new process?

A)less than or equal to 8.0
B)greater than 8.0 but less than or equal to 10.0
C)greater than 10.0 but less than or equal to 12.0
D)greater than 12.0

Question 69

Table 1.2
The Abco Company manufactures electrical assemblies.The current process uses 10 workers and produces 200 units per hour.You are considering changing the process with new assembly methods that increase output to 300 units per hour,but will require 14 workers.Particulars are as follows:
Workers are paid at a rate of $10 per hour,and overhead is charged at 140% (or 1.4 times)labor costs.Finished switches sell for $20 / unit.
Use the information provided in Table 1.2.Based on your productivity calculations,what decision should you make?

A)implement the new process
B)stay with the current process
C)need more information to make a decision
D)Either process is acceptable (since the multi-factor productivities are the same).

Question 70

The three mainline functions of any business are ________,________,and ________.

Question 71

A company's ability to support varying rates of production is best described as:

A)volume flexibility.
B)variety.
C)consistent quality.
D)development speed.

Question 72

A manufacturing process requires 12 minutes of labor to make 10 units of production.Which of the following actions will increase productivity? 1.Increase labor per 10 units of production
2.Decrease labor per 10 units of production
3.Increase number of units per 10 minutes of labor
4.Decrease number of units per 12 minutes of labor

A)1.and 3.only
B)2.and 4.only
C)1.and 4.only
D)2.and 3.only

Question 73

A process produces 5000 units of output that yield $6 per unit.Resources contributed to this output are 200 hours of labor at $15 per hour,materials at $700 and overhead at $300.What is the labor productivity?

A)20 units per hour
B)25 units per hour
C)30 units per hour
D)40 units per hour

Question 74

Operations management refers to the systematic design,direction,and control of ________ that transform ________ into products and services.

Question 75

A business focusing on increasing the efficiency of its operations is more directly addressing:

A)volume flexibility.
B)variety.
C)consistent quality.
D)low-cost.

Question 76

In an assembly operation at a furniture factory,six employees assembled an average of 450 custom cabinet drawers per 5-day week.What is the labor productivity of this operation?

A)90 chairs per worker per day
B)20 chairs per worker per day
C)15 chairs per worker per day
D)75 chairs per worker per day

Question 77

The manager of a landscaping company is trying to determine the best crew size to use for laying sod for new construction homes.She has tried various crew sizes,with the results shown below.Based on productivity,which crew size averages the greatest productivity in square yards installed per week?

A)2-person crew
B)3-person crew
C)4-person crew
D)Either a 3- or 4-person crew can be selected;their productivities are both higher than the 2-person crew.

Question 78

Quickly filling a customer's order is evidence of:

A)delivery speed.
B)lead time.
C)development speed.
D)variety.

Question 79

For students not wanting a traditional major in marketing or accounting,for example,the college decided to create a general business major,which allowed any combination of the easiest business courses to comprise the program.The competitive priority achieved in this example is:

A)customization.
B)delivery speed.
C)consistent quality.
D)low-cost.

Question 80

A company's ability to quickly introduce a new service or product would be best described as:

A)volume flexibility.
B)variety.
C)consistent quality.
D)development speed.