Ch 1 - Operations Management Answers

1) D 2) B 3) C 4) B 5) D 6) B 7) B 8) D 9) A 10) C 11) A 12) B 13) A 14) A 15) A 16) B 17) D 18) B 19) E 20) A 21) B 22) A 23) B 24) A 25) A 26) C 27) A 28) D 29) D 30) B 31) D 32) D 33) D 34) A 35) B 36) B 37) A 38) C 39) D 40) B 41) D 42) C 43) D 44) C 45) B 46) C 47) A 48) A 49) B 50) A 51) B 52) C 53) C 54) C 55) D 56) B 57) B Chapter 1 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is operations management? A) What all managers do when they deal with day-to-day activities. B) An organisational function which produces products and services. C) The process of satisfying the needs of internal and external customers. D) The activity of producing products and services. 1) 2) Which of the following functions is not a core function of an organisation? A) The product/service development function. B) The accounting and Þnance function. C) The marketing (including sales) function. D) The operations function. 2) 3) Most operations produce a mixture of both products and services. Which of the following businesses is closest to producing 'pure' services? A) IT company B) Steel company C) Counsellor/therapist D) A restaurant 3) 4) Operations can be classiÞed according to the degree of variation in demand and visibility of the operation as well as their volume and variety of production. Which of the following operations would be classiÞed as high variation and high visibility? A) A front ofÞce bank B) A family doctor C) A fast food restaurant D) A carpenter 4) 5) Which of the following functions is not a core function of an organisation? A) The product/service development function. B) The operations function. C) The marketing (including sales) function. D) The accounting and Þnance function. 5) 6) Transformation outputs can always be seen. A) True 6) B) False 7) Transformation outputs can always be conveniently stored. A) True B) False 7) 8) Which one of the following is not a feature of transformation outputs? A) Customer contact B) Transportability C) Quality D) Capacity 8) 9) Operations typically differ in terms of volume of output, variety of output, variation in demand or the degree of 'visibility' (i.e. customer contact) that they give to customers of the production process. Please match the following element with the most appropriate of the above dimensions. Flexibility is most closely matched to: A) Variety B) Variation C) Volume D) Visibility 9) 1 10) Operations typically differ in terms of volume of output, variety of output, variation in demand or the degree of 'visibility' (i.e. customer contact) that they give to customers of the production process. Please match the following element with the most appropriate of the above dimensions. The demand pattern is most closely matched to: A) Volume B) Visibility C) Variation D) Variety 10) 11) Operations typically differ in terms of volume of output, variety of output, variation in demand or the degree of 'visibility' (i.e. customer contact) that they give to customers of the production process. Please match the following element with the most appropriate of the above dimensions. Low unit costs are most closely matched to: A) Volume B) Visibility C) Variation D) Variety 11) 12) EfÞcient operations management is irreconcilable with environmental considerations. A) True B) False 12) 13) High -volume operations do not include: A) A taxi service C) Television manufacture 13) B) A theme park D) A fast food restaurant 14) High -visibility operations do not include: A) Internet retailer C) Coffee bar B) Retail banking D) Clothes shop 14) 15) Most operations produce a mixture of both products and services. Which of the following businesses is closest to producing "pure" services? A) Counsellor/therapist B) Steel company C) A restaurant D) IT company 15) 16) Operations can be classiÞed according to their volume and variety of production as well as the degree of variation and visibility. Which of the following operations would be classiÞed as high volume, low variety? A) A carpenter B) A fast food restaurant C) A bank front ofÞce D) A family doctor 16) 17) Which of the following activities is not a direct responsibility of operations management? A) Developing an operations strategy for the operation. B) Planning and controlling the operation. C) Designing the operation's products, services and processes. D) Determining the exact mix of products and services that customers will want. 17) 18) Operations can be classiÞed according to the degree of variation in demand and visibility of the operation as well as their volume and variety of production. Which of the following operations would be classiÞed as high variation and high visibility? A) A front ofÞce bank B) A family doctor C) A carpenter D) A fast food restaurant 18) 2 19) Which of the following would NOT be normally considered as a key feature of Operations Management? A) Operations is the area of a business where most people work. B) Most new technology is implemented in Operations areas. C) World class Operations can give an organisation competitive advantage. D) Operations researches mathematical techniques for optimising processes. E) Operations is the part of an organisation which creates wealth through the management of the transformation process. 19) 20) Which of the following is the least likely decision to be made by Operations Managers? A) Deciding which market areas to manufacture products for. B) How to use quality techniques to reduce waste. C) How much capacity is required to balance demand. D) Designing and improving the jobs of the workforce. E) Selecting the location and layout of a facility. 20) 21) Which of the following is NOT a transformed resource input in operations? A) Materials B) Facilities C) Customers 21) D) Information 22) Which of the following is a transforming input resource? A) Staff B) Information C) Customers D) None of the above 22) 23) Which of the following is a transformed input resource? A) Staff B) Information C) Facilities D) None of the above 23) 24) Which of the following is a responsibility for an Operations Manager? A) All of the below B) Design the process C) Ensuring delivery of goods or services D) Day -to-day running of the process 24) 25) Operations management is important to all business and operations managers have a similar set of responsibilities in all businesses. A) True B) False 25) 26) Which performance objectives do IKEA focus most on? A) Speed B) Quality C) Cost 26) D) Flexibility 27) What name is given to the arrangement of resources which are devoted to the production and delivery of products and service? A) The Operations Function B) The Delivery Function C) The Product & Logistics Function D) The Production Function 27) 28) What other names may be given to an operations manager? A) Store manager B) Administrative manager C) Fleet manager D) All of the above 28) 29) When was IKEA founded? A) 1970s B) 1940s 29) C) 1960s 3 D) 1950s 30) Pret A Manger outlets receive deliveries of fresh sandwiches from a number of regional centres every day. A) True B) False 30) 31) Which of the following is true of effective operations? A) It can reduce costs of producing goods and services. B) It can provide the basis for future innovation. C) It can reduce the amount of investment necessary to produce goods and service. D) All of the above. 31) 32) Which of the following is NOT a response from operations to the changing business environment? A) Lean process design B) Technologies replacing manual jobs C) Flexible working patterns D) Mass marketing 32) 33) Which of the following is NOT true of the changing business environment in which operations management work? A) More frequent product introduction B) Demand for better quality C) More legal regulation D) Less ethical sensitivity 33) 34) The transforming and transformed resources that form the input to operations are called: A) Input resources B) Transformation resources C) Delivery resources D) Tangible resources 34) 35) Resources within an operation that are not immediately evident, such as relationships with suppliers, are called: A) Transient resources B) Intangible resources C) Ethereal resources D) Non -discreet resources 35) 36) For an operations manager, the activity of collaborating with other functions in an organisation is called: A) Deliberation and communication B) An indirect responsibility C) Organisational behaviour D) A supporting role 36) 37) Service processes that have a high number of transactions, often involving limited customization, are called: A) Mass services B) Low-complexity services C) Dual services D) Service runners 37) 38) An operation's ability to produce a wide range of products or services is called what? A) Commodity range B) Package C) Mix ßexibility D) Customization proÞle 38) 39) All the activities involved in supplying a customer's order is called: A) Customer -focused process B) Customer -driven operations C) Delivery D) Order fulÞlment 39) 4 40) When applied to operations performance, what term can be used interchangeably with 'dependability'? A) Assurance B) Reliability C) Quality D) Speed 40) 41) The people and groups of people who have an interest in the operation and who may be inßuenced by, or inßuence, the operation's activities, are called: A) Operation owners B) Pressure groups C) Key accounts D) Stakeholders 41) 42) The amount of value-added activity that takes place in the presence of the customer is called: A) Variation B) Value-added C) Visibility D) Variety 42) 43) Which of the following is not a core function within an organisation? A) Operations B) Marketing C) Product/Service Development D) Finance 43) 44) Which of the following is a support function? A) Finance B) Human Resources 44) C) Both of the above 45) In an international aid charity, which function is likely to be responsible for developing new appeals campaigns? A) Human Resources B) Product/Service Development C) Marketing D) Operations 45) 46) In a furniture manufacturer, which function is likely to be responsible for determining pricing policies? A) Product/Service Development B) Operations C) Marketing and sales D) Finance 46) 47) In a fast food chain, which function is likely to be responsible for serving customers? A) Operations B) Finance C) Human resources D) Marketing and sales 47) 48) For an Internet Service Provider (ISP), which function is likely to be responsible for maintaining software content? A) Operations B) Product/Service Development C) Human resources D) Marketing and sales 48) 49) The information technical (IT) function is core to most businesses. A) True B) False 49) 50) The decisions taken by an operations manager are the same for commercial and not-for -proÞt organisations. A) True B) False 50) 5 51) Which of the following is NOT a process input? A) Aircraft for an airline B) Transported passengers for a train service C) Information for the police D) Sales staff for a department store 51) 52) The dominant operation for a bank is: A) Processing customers C) Processing information 52) B) Processing materials D) Processing complaints 53) Which of the following predominantly process materials in their operations? A) Market research company B) Bank headquarters C) Postal service D) Hospitals 53) 54) In the case of crude oil producers, what term is used for any technical advice provided to their customers? A) Intangible beneÞt B) Support service C) Facilitating services D) Value-added service 54) 55) Which of the following is NOT an implication of high visibility? A) High unit cost. B) Customer contact skills needed. C) Satisfaction governed by customer perception. D) Time lag between production and consumption. 55) 56) Which of the following is an implication of low variety? A) Matching customer needs necessary B) Low unit cost C) High complexity D) Flexibility needed 56) 57) Which of the following is NOT an implication of high variation in demand? A) Anticipation is important B) Low unit cost C) Changing capacity D) Flexibility in workforce is needed 57) 6