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ISDS 3115 Exam 1 Chapter 1

Some of the operations-related activities of Hard Rock Cafe include desiging meals and analyzing them for ingredient cost and labor requirements. T/F
True
The production process at Hard Rock Cafe is limited to meal preparation and serving customers. T/F
False
All organizations, including service firms such as banks and hospitals, have a production function. T/F
True
Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs. T/F
True
An example of a “hidden” production function is money transfers at banks. T/F
True
One reason to study operations management is to learn how people organize themselves for productive enterprise. T/F
True
The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. T/F
True
“How much inventory of this item should we have?” is within the critical decision area of managing quality. T/F
False
In order to have a career in operations management, one must have a degree in statistics or quantitative methods. T/F
False
Henry Ford is known as the Father of Scientific Management. T/F
False
Shewhart’s contributions to operations management came during the Scientific Management Era. T/F
False
Students wanting to pursue a career in operations management will find multidisciplinary knowledge beneficial. T/F
True
Customer interaction is often high for manufacturing processes, but low for services. T/F
False
Productivity is more difficult to improve in the service sector. T/F
True
Manufacturing now constitutes the largest economic sector in postindustrial societies. T/F
False
In the past half-century, the number of people employed in manufacturing has more or less held steady, but each manufacturing employee is manufacturing about 20 times as much. T/F
True
A knowledge society is one that has migrated from work based on knowledge to one based on manual work. T/F
False
Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced. T/F
False
Measuring the impact of a capital acquisition on productivity is an example of multi-factor productivity. T/F
False
Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives. T/F
True
At Hard Rock Café, tasks that reflect operations or operations management include:
a. designing meals b. testing meals (recipes) c. analyzing meals for the cost of ingredients d. preparing employee schedules e. all of the above
e. all of the above
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. all of the above
d. preparing employee schedules
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 and service e. to the manufacturing sector exclusively
d. to all firms, whether manufacturing and service
Which of the following are the primary functions of all organizations? a. operations, marketing, and human resources b. marketing, human resources, and finance/accounting c. sales, quality control, and operations d. marketing, operations, and finance/accounting e. research and development, finance/accounting, and purchasing
d. marketing, operations, and finance/accounting
Budgeting, paying the bills, and collection of funds are activities associated with the a. management function b. control function c. finance/accounting function d. production/operations function e. staffing function
c. finance/accounting function
Which of the following would not be an operations function in a fast-food restaurant? a. advertising and promotion b. designing the layout of the facility c. maintaining equipment d. making hamburgers and fries e. purchasing ingredients
a. advertising and promotion
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
d. generating the demand for the organization’s products or services
Reasons to study Operations Management include a. studying why people organize themselves for free enterprise 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. all of the above
d. learning about a costly part of the enterprise
Reasons to study Operations Management include learning about a. why 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. all of the above
e. all of the above
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
d. plan, organize, staff, lead, and control
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%
d. 20%
Which of the following is not an element of the management process? a. controlling b. leading c. planning d. pricing e. staffing
d. pricing
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
c. the identification of customers’ wants and needs
All of the following decisions fall within the scope of operations management except for a. financial analysis b. design of goods and processes c. location of facilities d. managing quality e. All of the above fall within the scope of operations management.
a. financial analysis
The Ten Critical Decisions of Operations Management include a. Layout strategy b. Maintenance c. Process and capacity design d. Managing quality e. all of the above
e. all of the above
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
d. Mass customization
The Ten Critical Decisions of Operations Management include a. Finance/accounting b. Advertising c. Process and capacity design d. Pricing e. all of the above
c. Process and capacity design
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. all of the above
d. statistical quality control
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. none of the above
a. 1920s; statistical sampling
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. none of the above
d. nineteenth century; interchangeable parts
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
c. Eli Whitney
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
b. Frederick W. Taylor
Henry Ford is noted for his contributions to a. standardization of parts b. statistical quality control c. assembly line operations d. scientific management e. time and motion studies
c. assembly line operations
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
d. W. Edwards Deming
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
e. all of the above
Which of the following statements is true?
a. Almost all services and almost all goods are a mixture of a service and a tangible product.
b. A pure good has no tangible product component.
c. A pure service has only a tangible product component.
d. There is no such thing as a
pure good.
e. None of the above is a true statement.
a. Almost all services and almost all goods are a mixture of a service and a tangible product.
Which of the following statements is true?
a. The person most responsible for initiating 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 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 use of interchangeable parts in manufacturing was Henry Ford.
a. The person most responsible for initiating use of interchangeable parts in manufacturing was Eli Whitney.
The service industry makes up approximately what percentage of all jobs in the United States? a. 12% b. 40% c. 66% d. 79% e. 90%
d. 79%
Typical differences between goods and services do not include a. cost per unit b. ability to inventory items c. timing of production and consumption d. customer interaction e. knowledge content
a. cost per unit
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 products. 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 is true.
d. Goods tend to have higher customer interaction than services.
Which of the following is not a typical attribute of goods? a. output can be inventoried b. often easy to automate c. aspects of quality difficult to measure d. output can be resold e. production and consumption are separate
c. aspects of quality difficult to measure
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
d. elementary education
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
b. easy to store
Which of the following statements concerning growth of services is true?
a. Services now constitute the largest economic sector in postindustrial societies.
b. The number of people employed in manufacturing has more or less held steady since 1950.
c. Each manufacturing employee now produces about 20 times more than in 1950
d. All of the above are true.
e. None of the above is true.
d. All of the above are true.
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. All of the above are current trends.
e. All of the above are current trends.
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. All of the above are current trends.
e. All of the above are current trends.
One new trend in operations management is a. global focus b. mass customization c. empowered employees d. rapid product development e. All of the above are new trends in operations management.
e. All of the above are new trends in operations management.
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. All of the above statements are true.
c. Environmentally-sensitive production is giving way to low-cost focus.
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. none of the above
c. 12 covers/hr
A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it would then be a. 14.4 covers/hr b. 24 covers/hr c. 240 valves/hr d. 1200 covers/hr e. none of the above
a. 14.4 covers/hr
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
d. 200 valves/hr
Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is increased by 10%, it would then be a. 180 valves/hr b. 200 valves/hr c. 220 valves/hr d. 880 valves/hr e. 1760 valves/hr
c. 220 valves/hr
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, labor productivity will increase by a. 10% b. 20% c. 25% d. 40% e. 50%
c. 25%
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. none of the above e. not enough data to determine productivity
a. 25 boxes/hr
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
b. 40.6 boxes/hr
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 production? a. It has increased by 50 sets/shift. b. It has increased by 37.5 sets/hr. c. It has increased by 20%. d. It has decreased by 8.3%. e. It has decreased by 9.1%.
c. It has increased by 20%.
Productivity measurement is complicated by a. the competition’s output b. the fact that precise units of measure are often unavailable c. stable quality d. the workforce size e. the type of equipment used
b. the fact that precise units of
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. none of the above
d. multifactor productivity
Which of the following inputs has the greatest potential to increase productivity? a. labor b. globalization c. management d. capital e. none of the above
c. management
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. none of the above
d. decreasing inputs while holding outputs steady
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. labor; two-thirds d. capital; 90% e. technology; over one-half
a. management; over one-half
The factor responsible for the largest portion of productivity increase in the U.S. is a. labor b. management c. capital d. all three combined; it is impossible to determine the contribution of individual factors e. none of these; most productivity increases come from investment spending
b. management
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 labor-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.
e. Service operations are typically capital intensive.
Three commonly used productivity variables are a. quality, external elements, and precise units of measure b. labor, capital, and management c. technology, raw materials, and labor d. education, diet, and social overhead e. quality, efficiency, and low cost
b. labor, capital, and management
The service sector has lower productivity improvements than the manufacturing sector because a. the service sector uses less skilled labor than manufacturing b. the quality of output is lower in services than manufacturing c. services usually are labor-intensive d. service sector productivity is hard to measure e. none of the above
c. services usually are labor-intensive
Productivity tends to be more difficult to improve in the service sector because the work is a. often difficult to automate b. typically labor-intensive c. frequently processed individually d. often an intellectual task performed by professionals e. all of the above
e. all of the above
Among the ethical and social challenges facing operations managers are a. honoring community commitments b. maintaining a clean environment c. efficiently developing and producing safe quality products d. providing a safe workplace e. all of the above
e. all of the above
Among the ethical and social challenges facing operations managers are a. honoring financial commitments b. maintaining a clean environment c. developing low-cost products d. providing an efficient workplace e. all of the above
b. maintaining a clean environment
Which of the following is not among the ethical and social challenges facing operations managers? a. honoring community commitments b. maintaining a clean environment c. efficiently developing and producing safe quality products d. increasing executive pay e. providing a safe workplace
d. increasing executive pay
A business’s stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include a. lenders b. suppliers c. owners d. employees e. all of the above
e. all of the above
Starbuck’s stopped requiring signatures on credit-card purchases under $25 in an attempt to reduce _____________________________ .
transaction time (or service time)
_____________________________ is the set of activities that transforms inputs into goods and services.
Operations management
Marketing, Production, and _____________________________ are the three functions that all organizations must perform to create goods and services.
finance/accounting
“Should we make or buy this component?” is an issue in the _____________________________ critical decision area.
supply chain management
Henry Ford and _____________________________ are credited with the development of the moving assembly line.
Charles Sorensen
When a tangible product is not included in a service, it is called a _____________________________.
Pure service
_____________________________ is the ability of the organization to be flexible enough to cater to the individual whims of consumers.
Mass customization
_____________________________ is the operations management trend that moves more decision making to the individual worker.
Empowered employees
____________________________ is the total of all outputs produced by the transformation process divided by the total of the inputs.
Multifactor productivity
Productivity is the ratio of ____________ to _________. Using this relationship, productivity can be improved by ______________________ or _________________________.
inputs, outputs; reducing inputs while holding outputs constant; increasing outputs while holding inputs constant.

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