Operations and Productivity Part I

Operations and Productivity 1) Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labour requirements. Answer: TRUE 2) Because Hard Rock Cafés are themed restaurants, operations managers focus their layout design efforts on attractiveness while paying little attention to efficiency. Answer: FALSE 3) All organizations, including service firms such as banks and hospitals, have a production function. Answer: TRUE 4) Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Answer: TRUE 5) An example of a "hidden" production function is money transfers at banks. Answer: TRUE 6) One reason to study operations management is to learn how people organize themselves for productive enterprise. Answer: TRUE 7) The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. Answer: TRUE 8) "How much inventory of this item should we have?" is within the critical decision area of managing quality. Answer: FALSE 9) In order to have a career in operations management one must have a degree in statistics or quantitative methods. Answer: FALSE 10) Henry Ford is known as the Father of Scientific Management. Answer: FALSE 11) Shewhart's contributions to operations management came during the Scientific Management Era. Answer: FALSE 12) Customer interaction is often high for manufacturing processes, but low for services. Answer: FALSE 13) Productivity is more difficult to improve in the service sector. Answer: TRUE 14) Manufacturing now constitutes the largest economic sector in postindustrial societies. Answer: FALSE 15) Productivity in Canada has increased significantly every year since 1973. Answer: FALSE 16) A knowledge society is one that has migrated from work based on knowledge to one based on manual work. Answer: FALSE 17) Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced. Answer: FALSE 18) Measuring the impact of a capital acquisition on productivity is an example of multifactor productivity. Answer: FALSE 19) Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives. Answer: TRUE 20) Which of the following is not one of the Ten Critical Decisions of Operations Management? A) location strategy B) human resources and job design C) managing quality D) design of goods and services E) determining the financial leverage position Answer: E 21) An operations task performed at Hard Rock Café is A) borrowing funds to build a new restaurant. B) advertising changes in the restaurant menu. C) calculating restaurant profit and loss. D) preparing employee schedules. E) paying suppliers. Answer: D 22) Operations management is applicable A) mostly to the service sector. B) to services exclusively. C) mostly to the manufacturing sector. D) to all firms, whether manufacturing or service. E) to the manufacturing sector exclusively. Answer: D 23) Which of the following are the primary functions of all organizations? A) production/operations, marketing, and human resources B) marketing, human resources, and finance/accounting C) sales, quality control, and production/operations, D) marketing, production/operations, and finance/accounting E) research and development, finance/accounting, and purchasing Answer: D 24) Which of the following pioneers was not making a professional impact during the Scientific Management Era? A) Frank Gilbreth B) W. Edwards Deming C) Henry L. Gantt D) Lillian Gilbreth E) Frederick W. Taylor Answer: B 25) Which of the following would not be an operations function in a commercial bank? A) auditing B) teller scheduling C) maintenance D) collection E) cheque clearing Answer: A 26) The marketing function's main concern is with A) producing goods or providing services. B) procuring materials, supplies, and equipment. C) building and maintaining a positive image. D) generating the demand for the organization's products or services. E) securing monetary resources. Answer: D 27) Which of the following tasks within an Airline Company are related to Operations? A) Crew Scheduling B) International Monetary Exchange C) Sales D) Advertising E) Accounts Payable Answer: A 28) Reasons to study Operations Management include A) studying how people make decisions. B) knowing how goods and services are consumed. C) understanding what human resource managers do. D) learning about a costly part of the enterprise. E) learning to prepare financial statements. Answer: D 29) Reasons to study Operations Management include learning about all of the following except A) how people organize themselves for productive enterprise. B) how goods and services are produced. C) what operations managers do. D) a costly part of the enterprise. E) how to market a product. Answer: E 30) The five elements in the management process are A) plan, direct, update, lead, and supervise. B) accounting, finance, marketing, operations, and management. C) organize, plan, control, staff, and manage. D) plan, organize, staff, lead, and control. E) plan, lead, organize, manage, and control. Answer: D 31) Illiteracy and poor diets have been known to cost countries up to what percent of their productivity? A) 2% B) 5% C) 10% D) 20% E) 50% Answer: D 32) Which of the following is not an element of the management process? A) controlling B) leading C) planning D) pricing E) staffing Answer: D 33) An operations manager is not likely to be involved in A) the design of goods and services to satisfy customers' wants and needs. B) the quality of goods and services to satisfy customers' wants and needs. C) the identification of customers' wants and needs. D) work scheduling to meet the due dates promised to customers. E) maintenance schedules. Answer: C 34) All of the following decisions fall within the scope of operations management except for A) creating the company income statement. B) design of goods and processes. C) location of facilities. D) managing quality. E) layout of facilities. Answer: A 35) The Ten Critical Decisions of Operations Management include except A) layout strategy. B) maintenance. C) process and capacity design. D) managing quality. E) fiscal year-end. Answer: E 36) Which of the following is not one of The Ten Critical Decisions of Operations Management? A) layout strategy B) maintenance C) process and capacity design D) mass customization E) supply-chain management Answer: D 37) The Ten Critical Decisions of Operations Management include A) finance/accounting. B) advertising. C) process and capacity design. D) pricing. E) employee benefits. Answer: C 38) Which of the following are part of the Ten Critical Decisions of Operations Management? I. Design of Goods and Services II. Managing Quality III. Layout Strategy IV. Marketing V. Pricing of Goods and Services A) I, II, V B) I, II, IV C) II, III, V D) I, II, III E) II, III, IV Answer: D 39) SCC (Standards Council of Canada), ISM (Institute for Supply Management), APICS (Association for Operations Management), and PMI (Project Management Institute) are important professional organizations to operations management because they do all of the following except A) provide certification for professionals. B) allow professionals to keep up with industry developments. C) facilitate professional networking. D) provide opportunities to enhance your education. E) act as employment agencies for professionals. Answer: E 40) Walter Shewhart is listed among the important people of operations management because of his contributions to A) assembly line production. B) measuring the productivity in the service sector. C) just-in-time inventory methods. D) statistical quality control. E) project management techniques. Answer: D 41) Walter Shewhart, in the ________, provided the foundations for ________ in operations management. A) 1920s; statistical sampling B) United Kingdom; mass production C) U.S. Army; logistics D) nineteenth century; interchangeable parts E) 21st century; logistics Answer: A 42) Eli Whitney, in the ________, provided the foundations for ________ in operations management. A) 1920s; statistical sampling B) United Kingdom; mass production C) U.S. Army; logistics D) nineteenth century; interchangeable parts E) 21st century; logistics Answer: D 43) The person most responsible for popularizing interchangeable parts in manufacturing was A) Frederick Winslow Taylor. B) Henry Ford. C) Eli Whitney. D) Whitney Houston. E) Lillian Gilbreth. Answer: C 44) The "Father of Scientific Management" is A) Henry Ford. B) Frederick W. Taylor. C) W. Edwards Deming. D) Frank Gilbreth. E) just a figure of speech, not a reference to a person. Answer: B 45) Henry Ford is noted for his contributions to A) material requirements planning. B) statistical quality control. C) assembly line operations. D) scientific management. E) time and motion studies. Answer: C 46) Who among the following is associated with contributions to quality control in operations management? A) Charles Babbage B) Henry Ford C) Frank Gilbreth D) W. Edwards Deming E) Henri Fayol Answer: D 47) The field of operations management is shaped by advances in which of the following fields? A) chemistry and physics B) industrial engineering and management science C) biology and anatomy D) information technology E) all of the above Answer: E 48) Which of the following is the best example of a pure service? A) counseling B) oil change C) heart transplant D) restaurant meal E) college course Answer: A 49) Which of the following statements is true? A) The person most responsible for initiating the use of interchangeable parts in manufacturing was Eli Whitney. B) The origins of management by exception are generally credited to Frederick W. Taylor. C) The person most responsible for initiating the use of interchangeable parts in manufacturing was Walter Shewhart. D) The origins of the scientific management movement are generally credited to Henry Ford. E) The person most responsible for initiating the use of interchangeable parts in manufacturing was Henry Ford. Answer: A 50) The service sector makes up approximately what percentage of all jobs in the United States? A) 12% B) 40% C) 66% D) 79% E) 90% Answer: D 51) Which is not true regarding differences between goods and services? A) Tangible goods are generally produced and consumed simultaneously; services are not. B) Most goods are common to many customers; services are often unique to the final customer. C) Services tend to have a more inconsistent product definition than goods. D) Services tend to have higher customer interaction than goods. E) Goods can be inventoried; services are not easily inventoried. Answer: A 52) Which is not true regarding differences between goods and services? A) Services are generally produced and consumed simultaneously; tangible goods are not. B) Services tend to be more knowledge-based than goods. C) Services tend to have a more inconsistent product definition than goods. D) Goods tend to have higher customer interaction than services. E) None of the above are true. Answer: D 53) Which of the following services is least likely to be unique, i.e., customized to a particular individual's needs? A) dental care B) hairdressing C) legal services D) elementary education E) computer consulting Answer: D