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Operations Management T-1

1. To apply the principles of operations management, managers need to understand people, processes, and technology.
TRUE
2. Employees who work in financial and accounting functions of organizations need little knowledge of operations management.
FALSE
FALSE
3. A product that typically lasts at least three years is called a durable good.
TRUE
4. A service encounter is any interaction between a customer and the service provider.
TRUE
5. Value creation processes focus on primary goods and services.
TRUE
6. In relating operations management and the customer benefit package (CBP), which is the correct timing sequence?
CUSTOMER NEEDS AND EXPECTATIONS HAD TO CUSTOMER BENEFIR PACKAGE, WHICH LEADS TO OPERATING SYSTEM PROCESSES
7. Computer software would be an example of
A NONDURABLE GOOD
8. A customer benefit package (CBP) includes
BOTH CORE OFFERINGS AS WELL AS PERIPHERAL OFFERINGS
9. Which of the following is the correct sequence describing the evolution of operations management?
EFFICIENCT, QUALITY, CUSTOMERIZATION, TIME-BASED COMPETITION, SERVICE, SUSTAINABILITY
10. Which of the following would be the lowest in goods content and highest in service content?
ATTENDING A THEATER PRODUCTION
11. A vertical integration strategy provides a firm more control and generally reduces the complexity of managing the value chain.
FALSE
12. Value can be increased by adding services to customer benefit packages even when the quality or features of goods cannot be improved.
TRUE
13. A value chain can be considered a “cradle-to-grave” model of the operations function.
TRUE
14. A supply chain is more inclusive than a value chain..
FALSE
15. Outsourcing is the opposite of vertical integration
TRUE
16. ____ integration refers to acquiring capabilities at the front of the supply chain, whereas ____ integration refers to acquiring capabilities toward the back end of the supply chain.
BACKWARD; FORWARD
17. For a restaurant, order-taking, bill payment and home delivery would be considered
PROCESS
18. Which of the following generally does NOT result from vertical intergration?
LESS CONTROL OVER COST
19. ____ is the process of managing information, services and physical goods to insure their availability at the right place, at the right time, at the right cost and at the right quantity, with the highest attention given to quality.
VALUE CHAIN INTERGRATION
20. Which of the following would be the lowest in goods content and highest in service content?
CENTRALIZED AND DESCENTRALIZED
21. Measuring and reporting performance results can be a motivator for many workers.
TRUE
22. The only important measurement category in business is financial.
FALSE
23. Good customer satisfaction measurement systems are designed to provide information
TRUE
24. Reliability is the ability to perform a service dependably and accurately.
TRUE
25. The balanced scorecard is designed to be linked to an organization’s strategy.
TRUE
26. Customer satisfaction rating increases as time-on-hold waiting decreases is an example of
INTERLINKING
27. At a basic level, quality should be measured in three areas. Which of the following is not one of those areas?
EMPLOYEE
28. Dell’s ability to provide a wide range of customized computer hardware to accommodate customers’ needs best describes
DESIGN FLEXIBILITY
29. Productivity is the (formula)
QUANTITY OF OUTPUT/QUANTITY OF INPUT
30. Airline revenue per passenger mile and hotel revenue per full-time employee are examples of
PRODUCTIVITY
31. While it is generally difficult to change the structure of a value chain, operations managers can make strategic choices about technology and human resources.
TRUE
32. Formal marketing research, such as surveys and focus groups, is the only useful approach to learn about customer needs and expectations.
FALSE
33. A clean bed in a hotel would be considered as an order satisfier.
TRUE
34. Customers generally perceive greater risk when buying goods than when buying services
FALSE
35. Core competencies are the strengths that are unique to an organization, such as a creative workforce or a strong supply chain.
TRUE
36. In time sequence, which of the following needs to be accomplished first?
UNDERSTAND CUSTOMER WANTS AND NEEDS
37. A firm’s ability to achieve market and financial superiority over its competitors is called
COMPETITIVE ADVANTAGE
38. Goods and service features that differentiate one customer benefit package from another are called:
ORDER WINNERS
39. The ____ of a firm defines the strengths that are unique to that organization.
CORE COMPETENCIES
40. Families of goods or services having similar characteristics or methods of creation are called
STRATEGIC BUSINESS UNITS

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