Operations and Productivity Part II

54) Which of the following is not a typical service attribute? A) intangible product B) easy to store C) customer interaction is high D) simultaneous production and consumption E) difficult to resell Answer: B 55) Which of the following statements is true? A) Manufacturing now constitutes the largest economic sector in postindustrial societies. B) The number of people employed in manufacturing has increased since 1950. C) Each manufacturing employee now produces about 20 times more than in 1950 D) Each manufacturing employee now produces about one tenth of that in 1950 E) Manufacturing has disappeared in postindustrial societies. Answer: C 56) Which of the following attributes is most typical of a service? A) production and consumption occur simultaneously B) tangible C) mass production D) consistency E) easy to automate Answer: A 57) Which of the following is a similarity between goods and services? A) can be mass produced B) consistency in production C) easy to automate D) application of operations management E) all of the above Answer: D 58) Current trends in operations management include all of the following except A) just-in-time performance. B) rapid product development. C) mass customization. D) empowered employees. E) None of the above is right. Answer: E 59) Which of the following is not a current trend in operations management? A) just-in-time performance B) global focus C) supply-chain partnering D) mass customization E) low bid purchasing Answer: E 60) New trends in operations management include A) global focus. B) mass customization. C) empowered employees. D) rapid product development. E) All of the above are new trends in operations management. Answer: E 61) Which of the following statements about trends in operations management is false? A) Job specialization is giving way to empowered employees. B) Local or national focus is giving way to global focus. C) Environmentally-sensitive production is giving way to low-cost focus. D) Rapid product development is partly the result of shorter product cycles. E) Large batch shipments are being replaced by just-in-time. Answer: C 62) A foundry produces circular utility access hatches (manhole covers). If 120 covers are produced in a 10-hour shift, the productivity of the line is A) 1.2 covers/hr. B) 2 covers/hr. C) 12 covers/hr. D) 1200 covers/hr. E) 0.12 covers/hr. Answer: C 63) A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labour productivity can be increased by 20%, it would then be A) 14.4 covers/hr. B) 24 covers/hr. C) 240 covers/hr. D) 1200 covers/hr. E) 144 covers/hr. Answer: A 64) Gibson Valves produces cast bronze valves on an assembly line. If 1600 valves are produced in an 8-hour shift, the productivity of the line is A) 2 valves/hr. B) 40 valves/hr. C) 80 valves/hr. D) 200 valves/hr. E) 1600 valves/hr. Answer: D 65) Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is decreased by 10%, it would then be A) 180 valves/hr. B) 200 valves/hr. C) 220 valves/hr. D) 1440 valves/hr. E) 1760 valves/hr. Answer: A 66) Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labour productivity will increase by A) 10%. B) 20%. C) 25%. D) 40%. E) 50%. Answer: C 67) The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. What is the productivity of the plant? A) 25 boxes/hr B) 50 boxes/hr C) 5000 boxes/hr D) 250 boxes/hr E) not enough data to determine productivity Answer: A 68) The Dulac Box plant works two 8-hour shifts each day. In the past, 500 cypress packing boxes were produced by the end of each day. The use of new technology has enabled them to increase productivity by 30%. Productivity is now approximately A) 32.5 boxes/hr. B) 40.6 boxes/hr. C) 62.5 boxes/hr. D) 81.25 boxes/hr. E) 300 boxes/hr. Answer: B 69) The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to productivity? A) It has not changed. B) It has increased by 37.5 boxes/hr. C) It has increased by 20%. D) It has decreased by 8.3%. E) It has decreased by 9.1%. Answer: A 70) Productivity measurement is complicated by A) the competition's output. B) the unavailability of precise units of measure. C) stable quality. D) the workforce size. E) the type of equipment used. Answer: B 71) The total of all outputs produced by the transformation process divided by the total of the inputs is A) utilization. B) greater in manufacturing than in services. C) defined only for manufacturing firms. D) multifactor productivity. E) effectiveness. Answer: D 72) Which productivity variable has the greatest potential to increase productivity? A) labour B) globalization C) management D) capital E) industrialization Answer: C 73) Which of the following nets the largest productivity improvement? A) increase output 15% B) decrease input 15% C) increase both output and input by 5% D) increase output 10%, decrease input 3% E) decrease input 10%, increase output 3% Answer: B 74) Productivity can be improved by A) increasing inputs while holding outputs steady. B) decreasing outputs while holding inputs steady. C) increasing inputs and outputs in the same proportion. D) decreasing inputs while holding outputs steady. E) there is no way to improve productivity. Answer: D 75) The largest contributor to productivity increases is ________, estimated to be responsible for ________ of the annual increase. A) management; over one-half B) Mr. Deming; one-half C) labour; two-thirds D) capital; 90% E) technology; over one-half Answer: A 76) The factor responsible for the largest portion of productivity increase in Canada is A) labour. B) management. C) capital. D) labour, management and capital combined; it is impossible to determine the contribution of individual factors. E) technology. Answer: B 77) Which of the following is not true when explaining why productivity tends to be lower in the service sector than in the manufacturing sector? A) Services are typically labour-intensive. B) Services are often difficult to evaluate for quality. C) Services are often an intellectual task performed by professionals. D) Services are difficult to automate. E) Service operations are typically capital intensive. Answer: E 78) Three commonly used productivity variables are A) quality, external elements, and precise units of measure. B) labour, capital, and management. C) technology, raw materials, and labour. D) education, diet, and social overhead. E) quality, efficiency, and low cost. Answer: B 79) The service sector has lower productivity improvements than the manufacturing sector because A) the service sector uses less skilled labour than manufacturing. B) the quality of output is lower in services than manufacturing. C) services usually are labour-intensive. D) service sector productivity is hard to measure. E) manufacturing sector productivity is hard to measure. Answer: C 80) Productivity tends to be more difficult to improve in the service sector because the work is A) often difficult to automate. B) typically labour-intensive. C) frequently processed individually. D) often an intellectual task performed by professionals. E) All of the above make service productivity more difficult. Answer: E 81) Firm A operates 10 hours each day, producing 100 parts/hour. If productivity were increased 20%, how many hours would the plant have to work to produce 1000 parts? A) less than 2 hours B) between 9 and 10 hours C) between 2 and 6 hours D) between 6 and 8 hours E) between 8 and 9 hours Answer: E 82) A cleaning company uses 10 lbs each of chemicals A, B and C for each house it cleans. After some quality complaints, the company has decided to increase its use of chemical A by an additional 10 lbs for each house. By what % has productivity (houses per pound of chemical) fallen? A) 0% B) 10% C) 15% D) 25% E) 33% Answer: D 83) A cleaning company uses $10 of chemicals, $40 of labour, and $5 of misc. expenses for each house it cleans. After some quality complaints, the company has decided to increase its use of chemicals by 50%. By what % has multifactor productivity fallen? A) 0% B) 8.3% C) 25% D) 50% E) 0.83% Answer: B 84) All of the following are ethical and social challenges facing operations managers except A) honoring stakeholder commitments. B) maintaining a sustainable environment. C) efficiently developing and producing safe, quality products. D) providing a safe workplace. E) introducing new products to market. Answer: E 85) Among the ethical and social challenges facing operations managers are A) honoring financial commitments. B) maintaining a sustainable environment. C) developing low-cost products. D) providing an efficient workplace. E) all of the above. Answer: B 86) Which of the following is not among the ethical and social challenges facing operations managers? A) honoring stakeholder commitments B) maintaining a sustainable environment C) efficiently developing and producing safe, quality products D) increasing executive pay E) providing a safe workplace Answer: D 87) A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include all of the following except A) lenders. B) suppliers. C) owners. D) employees. E) raw materials. Answer: E 88) Starbucks stopped requiring signatures on credit-card purchases under $25 in an attempt to reduce ________. Answer: transaction time (or service time) 89) ________ is the set of activities that transforms inputs into goods and services. Answer: Operations management 90) Marketing, Production, and ________ are the three functions that all organizations must perform to create goods and services. Answer: finance/accounting 91) "Should we make or buy this component?" is an issue in the ________ critical decision area. Answer: supply chain management 92) Henry Ford and ________ are credited with the development of the moving assembly line. Answer: Charles Sorensen 93) When a tangible product is not included in a service, such as with counseling, it is called a ________. Answer: pure service 94) ________ is the ability of the organization to be flexible enough to cater to the individual whims of consumers. Answer: Mass customization 95) ________ is the operations management trend that moves more decision making to the individual worker. Answer: Empowered employees 96) ________ is the total of all outputs produced by the transformation process divided by the total of the inputs. Answer: Multifactor productivity 97) Productivity is the ratio of ________ to ________. Using this relationship, productivity can be improved by ________ or ________. Answer: outputs; inputs; reducing inputs while holding outputs constant; increasing outputs while holding inputs constant. 98) Identify three or more operations-related tasks carried out by Hard Rock Café. Answer: Providing custom meals; designing, testing, and costing meals; acquiring, receiving, and storing supplies; recruiting and training employees; preparing employee schedules; designing efficient restaurant layouts. 99) Identify two operations-related tasks carried out by Hard Rock Café. Match each to its area of the Ten Critical Decisions. Answer: Providing custom meals—design of goods and services; designing, testing, and costing meals—design of goods and services; acquiring, receiving, and storing supplies—supply- chain management; recruiting and training employees—human resources, job design and work measurement; preparing employee schedules—intermediate and short-term scheduling; designing efficient restaurant layouts—layout strategy.