ISDS 3115

T/fSome of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements.

t/fThe production process at Hard Rock Café is limited to meal preparation and serving customers.

t/fAll organizations, including service firms such as banks and hospitals, have a production function.

t/f Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs.

T/F An example of a "hidden" production function is money transfers at banks.

T/FOne reason to study operations management is to learn how people organize themselves forproductive enterprise.

The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function.

T/F"How much inventory of this item should we have?" is within the critical decision area ofmanaging quality.

T/FIn order to have a career in operations management, one must have a degree in statistics or quantitative methods.

T/FHenry Ford is known as the Father of Scientific Management.

T/FShewhart's contributions to operations management came during the Scientific Management Era.

T/FStudents wanting to pursue a career in operations management will find multidisciplinary knowledge beneficial.

T/FCustomer interaction is often high for manufacturing processes, but low for services.

T/F Productivity is more difficult to improve in the service sector.

T/F Manufacturing now constitutes the largest economic sector in postindustrial societies.

T/F 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 A knowledge society is one that has migrated from work based on knowledge to one based on manual work.

T/F Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced.

T/F Measuring the impact of a capital acquisition on productivity is an example of multi-factorproductivity.

T/F Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives.

At Hard Rock Café, tasks that reflect operations or operations management includea. designing mealsb. testing meals (recipes)c. analyzing meals for the cost of ingredientsd. preparing employee schedulese.

all of the above

An operations task performed at Hard Rock Café isa. borrowing funds to build a new restaurantb. advertising changes in the restaurant menuc. calculating restaurant profit and lossd. preparing employee schedulese.

all of the above

Operations management is applicablea. mostly to the service sectorb. to services exclusivelyc. mostly to the manufacturing sectord.

to all firms, whether manufacturing and servicee. to the manufacturing sector exclusively

Which of the following are the primary functions of all organizations?a. operations, marketing, and human resourcesb. marketing, human resources, and finance/accountingc. sales, quality control, and operationsd.

marketing, operations, and finance/accountinge. research and development, finance/accounting, and purchasing

Budgeting, paying the bills, and collection of funds are activities associated with thea. management functionb. control functionc.

finance/accounting functiond. production/operations functione. staffing function

Which of the following would not be an operations function in a fast-food restaurant?a. advertising and promotionb. designing the layout of the facilityc.

maintaining equipmentd. making hamburgers and friese. purchasing ingredients

The marketing function's main concern is witha. producing goods or providing servicesb.

procuring materials, supplies, and equipmentc. building and maintaining a positive imaged. generating the demand for the organization's products or servicese. securing monetary resources

Reasons to study Operations Management includea. studying why people organize themselves for free enterpriseb.

knowing how goods and services are consumedc. understanding what human resource managers dod. learning about a costly part of the enterprisee. all of the above

Reasons to study Operations Management include learning abouta.

why people organize themselves for productive enterpriseb. how goods and services are producedc. what operations managers dod. a costly part of the enterprisee. all of the above

The five elements in the management process area. plan, direct, update, lead, and superviseb. accounting/finance, marketing, operations, and managementc. organize, plan, control, staff, and managed. plan, organize, staff, lead, and controle.

plan, lead, organize, manage, and control

Illiteracy and poor diets have been known to cost countries up to what percent of theirproductivity?a. 2%b. 5%c. 10%d. 20%e.

50%

Which of the following is not an element of the management process?a. controllingb. leadingc. planningd. pricinge.

staffing

An operations manager is not likely to be involved ina. the design of goods and services to satisfy customers' wants and needsb. the quality of goods and services to satisfy customers' wants and needsc. the identification of customers' wants and needsd. work scheduling to meet the due dates promised to customerse.

maintenance schedules

All of the following decisions fall within the scope of operations management except fora. financial analysisb. design of goods and processesc.

location of facilitiesd. managing qualitye. All of the above fall within the scope of operations management.

The Ten Critical Decisions of Operations Management includea.

Layout strategyb. Maintenancec. Process and capacity designd. Managing qualitye.

all of the above

Which of the following is not one of The Ten Critical Decisions of Operations Management?a. Layout strategyb. Maintenancec.

Process and capacity designd. Mass customizatione. Supply chain management

The Ten Critical Decisions of Operations Management includea.

Finance/accountingb. Advertisingc. Process and capacity designd. Pricinge. all of the above

Walter Shewhart is listed among the important people of operations management because of hiscontributions toa. assembly line productionb. measuring the productivity in the service sectorc. just-in-time inventory methodsd.

statistical quality controle. all of the above

Walter Shewhart, in the _____, provided the foundations for ______ in operations management.a. 1920s; statistical samplingb.

United Kingdom; mass productionc. U.S. Army; logisticsd.

nineteenth century; interchangeable partse. none of the above

Eli Whitney, in the _____, provided the foundations for ______ in operations management.a.

1920s; statistical samplingb. United Kingdom; mass productionc. U.S.

Army; logisticsd. nineteenth century; interchangeable partse. none of the above

The person most responsible for popularizing interchangeable parts in manufacturing wasa. Frederick Winslow Taylorb.

Henry Fordc. Eli Whitneyd. Whitney Houstone. Lillian Gilbreth

The "Father of Scientific Management" isa.

Henry Fordb. Frederick W. Taylorc. W.

Edwards Demingd. Frank Gilbrethe. just a figure of speech, not a reference to a person

Henry Ford is noted for his contributions toa. standardization of partsb.

statistical quality controlc. assembly line operationsd. scientific managemente. time and motion studies

Who among the following is associated with contributions to quality control in operationsmanagement?a. Charles Babbageb.

Henry Fordc. Frank Gilbrethd. W. Edwards Deminge.

Henri Fayol

The field of operations management is shaped by advances in which of the following fields?a. chemistry and physicsb.

industrial engineering and management sciencec. biology and anatomyd. information technologye. 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.

Which of the following statements is true?a. The person most responsible for initiating use of interchangeable parts in manufacturing wasEli 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 wasWalter 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 wasHenry Ford.

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%

Typical differences between goods and services do not includea. cost per unitb. ability to inventory itemsc. timing of production and consumptiond. customer interactione.

knowledge content

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.

Which of the following is not a typical attribute of goods?a. output can be inventoriedb. often easy to automatec.

aspects of quality difficult to measured. output can be resolde. production and consumption are separate

Which of the following services is least likely to be unique, i.

e., customized to a particularindividual's needs?a. dental careb. hairdressingc.

legal servicesd. elementary educatione. computer consulting

Which of the following is not a typical service attribute?a. intangible productb.

easy to storec. customer interaction is highd. simultaneous production and consumptione. difficult to resell

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 1950d.

All of the above are true.e. None of the above is true.

Current trends in operations management include all of the following excepta. just-in-time performanceb. rapid product developmentc. mass customizationd. empowered employeese. All of the above are current trends.

Which of the following is not a current trend in operations management?a. just-in-time performanceb. global focusc. supply chain partneringd.

mass customizatione. All of the above are current trends.

One new trend in operations management isa. global focusb.

mass customizationc. empowered employeesd. rapid product developmente. 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.

A foundry produces circular utility access hatches (manhole covers). If 120 covers are produced ina 10-hour shift, the productivity of the line isa. 1.

2 covers/hrb. 2 covers/hrc. 12 covers/hrd. 1200 covers/hre. none of the above

A foundry produces circular utility access hatches (manhole covers).

Currently, 120 covers areproduced in a 10-hour shift. If labor productivity can be increased by 20%, it would then bea. 14.4 covers/hrb. 24 covers/hrc.

240 valves/hrd. 1200 covers/hre. none of the above

Gibson Valves produces cast bronze valves on an assembly line. If 1600 valves are produced in an8-hour shift, the productivity of the line isa.

2 valves/hrb. 40 valves/hrc. 80 valves/hrd. 200 valves/hre.

1600 valves/hr

Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valveseach 8-hour shift. If the productivity is increased by 10%, it would then bea. 180 valves/hrb. 200 valves/hrc.

220 valves/hrd. 880 valves/hre. 1760 valves/hr

Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valvesper shift.

If the production is increased to 2000 valves per shift, labor productivity will increase bya. 10%b. 20%c. 25%d. 40%e. 50%

The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. What is theproductivity of the plant?a. 25 boxes/hrb. 50 boxes/hrc.

5000 boxes/hrd. none of the abovee. not enough data to determine productivity

The Dulac Box plant works two 8-hour shifts each day.

In the past, 500 cypress packing boxeswere produced by the end of each day. The use of new technology has enabled them to increaseproductivity by 30%. Productivity is now approximatelya. 32.

5 boxes/hrb. 40.6 boxes/hrc. 62.

5 boxes/hrd. 81.25 boxes/hre. 300 boxes/hr

The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts.

Due to higherdemand, they have decided to operate three 8-hour shifts instead. They are now able to produce600 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%

Productivity measurement is complicated bya. the competition's outputb. the fact that precise units of measure are often unavailablec. stable qualityd. the workforce sizee.

the type of equipment used

The total of all outputs produced by the transformation process divided by the total of the inputs isa. utilizationb. greater in manufacturing than in servicesc. defined only for manufacturing firmsd.

multifactor productivitye. none of the above

Which of the following inputs has the greatest potential to increase productivity?a. laborb. globalizationc. managementd.

capitale. none of the above

Productivity can be improved bya. increasing inputs while holding outputs steadyb. decreasing outputs while holding inputs steadyc.

increasing inputs and outputs in the same proportiond. decreasing inputs while holding outputs steadye. none of the above

The largest contributor to productivity increases is ________, estimated to be responsible for_____ of the annual increase.a. management; over one-halfb.

Mr. Deming; one-halfc. labor; two-thirdsd. capital; 90%e. technology; over one-half

The factor responsible for the largest portion of productivity increase in the U.

S. isa. laborb. managementc.

capitald. all three combined; it is impossible to determine the contribution of individual factorse. none of these; most productivity increases come from investment spending

Which of the following is not true when explaining why productivity tends to be lower in theservice 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.

Three commonly used productivity variables area. quality, external elements, and precise units of measureb.

labor, capital, and managementc. technology, raw materials, and labord. education, diet, and social overheade. quality, efficiency, and low cost

The service sector has lower productivity improvements than the manufacturing sector becausea. the service sector uses less skilled labor than manufacturingb. the quality of output is lower in services than manufacturingc. services usually are labor-intensived.

service sector productivity is hard to measuree. none of the above

Productivity tends to be more difficult to improve in the service sector because the work isa. often difficult to automateb. typically labor-intensivec.

frequently processed individuallyd. often an intellectual task performed by professionalse. all of the above

Among the ethical and social challenges facing operations managers area.

honoring community commitmentsb. maintaining a clean environmentc. efficiently developing and producing safe quality productsd. providing a safe workplacee.

all of the above

Among the ethical and social challenges facing operations managers area. honoring financial commitmentsb. maintaining a clean environmentc.

developing low-cost productsd. providing an efficient workplacee. all of the above

Which of the following is not among the ethical and social challenges facing operations managers?a. honoring community commitmentsb. maintaining a clean environmentc.

efficiently developing and producing safe quality productsd. increasing executive paye. providing a safe workplace

A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas,includea. lendersb.

suppliersc. ownersd. employeese. all of the above

T/FNAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United States.

T/FThe World Trade Organization has helped to significantly reduce tariffs around the world.

T/FProduction processes are being dispersed to take advantage of national differences in labor costs.

T/FNAFTA seeks to phase out all trade and tariff barriers between the United States and Asia.

T/FOne reason for global operations is to gain improvements in the supply chain.

T/FOne reason to globalize is to learn to improve operations.

T/FTo attract and retain global talent, and to expand a product's life cycle, are both reasons to globalize.

T/FA product will always be in the same stage of its product life cycle regardless of the country.

T/FThe World Trade Organization helps provide governments and industries around the world with protection from firms that engage in unethical conduct.

T/FBoeing's development of the 787 Dreamliner is an example of a company obtaining a competitive advantage via product differentiation/innovation.

T/FAn organization's strategy is its purpose or rationale for an organization's existence.

T/FOperations strategies are implemented in the same way in all types of organizations.

T/FBetween 1980 and 2005, the amount of money (bank deposits, government and corporate debt securities, and equity securities) invested in global capital markets more than tripled.

T/FExperience differentiation is an extension of product differentiation, accomplished by usingpeople's five senses to create an experience rather than simply providing a service.

T/FAn organization's ability to generate unique advantages over competitors is central to a successful strategy implementation.

T/FLow-cost leadership is the ability to distinguish the offerings of the organization in any way that the customer perceives as adding value.

T/FMost services are tangible; this factor determines how the ten decisions of operations managementare handled differently for goods than for services.

T/FThe relative importance of each of the ten operations decisions depends on the ratio of goods andservices in an organization.

T/FDecisions that involve what is to be made and what is to be purchased fall under the heading of supply chain management.

T/FManufacturing organizations have ten strategic OM decisions, while service organizations haveonly eight.

T/FErrors made within the location decision area may overwhelm efficiencies in other areas.

T/FThe PIMS study indicated that high ROI firms tend to have high product quality.

T/FSouthwest Airlines' core competence is operations.

T/FCritical success factors and core competencies are synonyms.

T/FSWOT analysis identifies those activities that make a difference between having and not having acompetitive advantage.

T/FFor the greatest chance of success, an organization's operations management strategy must supportthe company's strategy.

T/FCritical Success Factors are those activities that are key to achieving competitive advantage.

T/FA multinational corporation has extensive international business involvements.

T/FThe multidomestic OM strategy maximizes local responsiveness while achieving a significant cost advantage.

T/FFirms using the global strategy can be thought of as "world companies."

Which of the following statements regarding the Dreamliner 787 is true?a.

Boeing has found partners in over a dozen countries.b. The new aircraft incorporates a wide range of aerospace technologies.c. The new aircraft uses engines from not one, but two manufacturers.

d. Boeing will add only 20 to 30 percent of the aircraft's value.e. All of the above are true.

Boeing's new 787 Dreamlinera. is assembled in Washington, D.C.b. uses engines from Japanc. has its fuselage sections built in Australiad. has increased efficiency from new engine technologye. results from a partnership of about a dozen companies

Examples of response to the global environment includea. Boeing's worldwide sales and productionb. Benneton's flexibility in design, production, and distributionc. A Chinese manufacturer, Haier, opening plants in the United Statesd. Ford's partnerships with Volvo and Mazdae. All of the above are examples.

Which of the following is an example of globalization of operations strategy?a. Boeing's Dreamliner has engines with higher fuel/payload efficiency.b. Ford's new auto models have dent-resistant panels.c. A Chinese manufacturer, Haier, now operates plants in the United States.d. Hard Rock Café provides an "experience differentiation" at its restaurants.e. All of the above are examples.

Cost cutting in international operations can take place because ofa. lower taxes and tariffsb. lower wage scalesc. lower indirect labor costsd. less stringent regulationse. all of the above

Which of the following did the authors not suggest as a reason for globalizing operations?a. reduce costsb. improve the supply chainc. stockholder approval ratingsd. attract new marketse. All of the above were suggested.

Multinational organizations can shop from country to country and cut costs througha. lower wage scalesb. lower indirect labor costsc. less stringent regulationsd. lower taxes and tariffse. all of the above

The term maquiladora is most synonymous witha. free trade zonesb. Chinese forced labor campsc. home-based or cottage industryd. areas that do not meet U.S. standards for workplace safety and pollutione. none of the above

Which of the following represent reasons for globalizing operations?a. to gain improvements in the supply chainb. to improve operationsc. to expand a product's life cycled. to attract and retain global talente. All of the above are valid

Which of the following does not represent reasons for globalizing operations?a. reduce costsb. improve supply chainc. reduce responsivenessd. attract and retain global talente. All of the above are valid reasons for globalizing operations

NAFTA seeks toa. substitute cheap labor in Mexico for expensive labor in the United Statesb. curb illegal immigration from Mexico to the United Statesc. phase out all trade and tariff barriers between the United States and Mexicod. phase out all trade and tariff barriers between the United States, Canada, and Mexicoe. All of the above are NAFTA goals.

With reference to cultural and ethical issues, the World Trade Organization hasa. succeeded in providing equal protection of intellectual property among nationsb. made progress in providing equal protection of intellectual property among nationsc. phased out all trade and tariff barriers between the United States and Mexicod. eliminated slave labor and child labore. played little role in addressing cultural and ethical issues among nations

Which of the following is true about business strategies?a. An organization should stick with its strategy for the life of the business.b. All firms within an industry will adopt the same strategy.c. Well defined missions make strategy development much easier.d. Strategies are formulated independently of SWOT analysis.e. Organizational strategies depend on operations strategies

Which of the following activities takes place once the mission has been developed?a. The firm develops alternative or back-up missions in case the original mission fails.b. The functional areas develop their functional area strategies.c. The functional areas develop their supporting missions.d. The ten OM decision areas are prioritized.e. Operational tactics are developed.

Which of the following statements about organizational missions is false?a. They reflect a company's purpose.b. They indicate what a company intends to contribute to society.c. They are formulated after strategies are known.d. They define a company's reason for existence.e. They provide guidance for functional area missions

The impact of strategies on the general direction and basic character of a company isa. short rangeb. medium rangec. long ranged. temporale. minimal

The fundamental purpose of an organization's mission statement is toa. create a good human relations climate in the organizationb. define the organization's purpose in societyc. define the operational structure of the organizationd. generate good public relations for the organizatione. define the functional areas required by the organization

Which of the following is true?a. Corporate mission is shaped by functional strategies.b. Corporate strategy is shaped by functional strategies.c. Functional strategies are shaped by corporate strategy.d. External conditions are shaped by corporate mission.e. Functional area missions are merged to become the organizational mission

According to the authors, which of the following strategic concepts allow firms to achieve their missions?a. productivity, efficiency, and quality leadershipb. differentiation, cost leadership, and quick responsec. differentiation, quality leadership, and quick responsed. distinctive competency, cost leadership, and experiencee. differentiation, distinctive competency, quality leadership, and capacity

A firm can effectively use its operations function to yield competitive advantage via all of thefollowing excepta. customization of the productb. setting equipment utilization goals below the industry averagec. speed of deliveryd. constant innovation of new productse. maintain a variety of product options

Which of the following has progressed the furthest along its product life cycle?a. drive-thru restaurantsb. Internet search enginesc. iPodsd. LCD & plasma TVse. Xbox 360

The ability of an organization to produce goods or services that have some uniqueness in theircharacteristics isa. mass productionb. time-based competitionc. competing on productivityd. competing on flexibilitye. competing on differentiation

Which of the following has made the least progress along its product life cycle?a. drive-thru restaurantsb. Internet search enginesc. iPodsd. LCD & plasma TVse. Xbox 360

A strategy is a(n)a. set of opportunities in the marketplaceb. broad statement of purposec. simulation used to test various product line optionsd. plan for cost reductione. action plan to achieve the mission

Which of the following statements best characterizes delivery reliability?a. a company that always delivers on the same day of the weekb. a company that always delivers at the promised timec. a company that delivers more frequently than its competitorsd. a company that delivers faster than its competitorse. a company that has a computerized delivery scheduling system

Which of the following is an example of competing on the basis of differentiation?a. A firm manufactures its product with less raw material waste than its competitors do.b. A firm's products are introduced into the market faster than its competitors' products are.c. A firm's distribution network routinely delivers its product on time.d. A firm offers more reliable products than its competitors do.e. A firm advertises more than its competitors do

The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics isa/some uniqueness in their characteristics isa. mass productionb. time-based competitionc. differentiationd. flexible responsee. experience differentiation

Which of the following best describes "experience differentiation"?a. immerses consumers in the delivery of a serviceb. uses people's five senses to enhance the servicec. complements physical elements with visual and sound elementsd. consumers may become active participants in the product or servicee. All are elements of experience differentiation.

Experience Differentiationa. isolates the consumer from the delivery of a serviceb. is an extension of product differentiation in the service sectorc. uses only the consumer's senses of vision and soundd. keeps consumers from becoming active participants in the servicee. is the same as product differentiation, but applied in the service sector

Which of the following is the best example of competing on low-cost leadership?a. A firm produces its product with less raw material waste than its competitors.b. A firm offers more reliable products than its competitors.c. A firm's products are introduced into the market faster than its competitors' products.d. A firm's research and development department generates many ideas for new products.e. A firm advertises more than its competitors

Franz Colruyt has achieved low-cost leadership througha. Spartan headquartersb. absence of voice mailc. low-cost facilitiesd. no background musice. all of the above

Franz Colruyt has achieved low-cost leadership througha. effective use of voice mailb. plastic, not paper, shopping bagsc. background music that subtly encourages shoppers to buy mored. converting factories, garages, and theaters into retail outletse. use of the Euro, not the currency of each European country

Which of the following is an example of competing on quick response?a. A firm produces its product with less raw material waste than its competitors.b. A firm offers more reliable products than its competitors.c. A firm's products are introduced into the market faster than its competitors' products.d. A firm's research and development department generates many ideas for new products.e. A firm advertises more than its competitors.

Costs, quality, and human resource decisions interact strongly with the _______ decision.a. layout designb. process and capacity designc. supply chain managementd. goods and service designe. All of the above are correct.

Which of the following influences layout design?a. inventory requirementsb. capacity needsc. personnel levelsd. technology decisionse. All of the above influence layout decisions

Response-based competitive advantage can bea. flexible responseb. reliable responsec. quick responsed. all of the abovee. none of the above

Which of the following is not an operations strategic decision?a. maintenanceb. pricec. layout designd. qualitye. inventory

Which of the following OM strategic decisions pertains to sensible location of processes andmaterials in relation to each other?a. layout designb. goods and service designc. supply chain managementd. inventorye. scheduling

Which of these companies is most apt to have quality standards that are relatively subjective?a. Chryslerb. Dell Computerc. Sanyo Electronicsd. Harvard Universitye. Whirlpool

Which of the following will more likely locate near their customers?a. an automobile manufacturerb. an aluminum manufacturerc. an insurance company headquartersd. a medical clinice. All of the above will tend to locate near their customers.

Which of the following statements concerning the operations management decision is relevant toservices?a. There are many objective quality standards.b. The customer is not involved in most of the process.c. The work force's technical skills are very important.d. Labor standards vary depending on customer requirements.e. Ability to inventory may allow the leveling of the output rates

Which of these organizations is likely to have the most important inventory decisions?a. a marketing research firmb. a lobbying agencyc. a management consulting firmd. an aluminum manufacturere. a law firm

The PIMS program has identified thea. operations decisions all organizations must makeb. distinctive competencies any company needsc. characteristics of firms with high "ROI"d. corporate decisions any company needs to makee. all of the abovec (Issues in operations strategy, moderate)

Which of these is not one of the PIMS characteristics of high return on investment organizations?a. high product qualityb. high capacity utilizationc. low investment intensityd. low direct cost per unite. All of the above are PIMS characteristics.

Standardization is an appropriate strategy in which stage of the product life cycle?a. introductionb. growthc. maturityd. declinee. retirement

Cost minimization is an appropriate strategy in which stage of the product life cycle?a. introductionb. growthc. maturityd. declinee. retirement

Which of the following preconditions does not affect the formulation of an OM strategy?a. knowledge of each product's life cycleb. external economic and technological conditionsc. the company's employment benefitsd. competitors' strengths and weaknessese. knowledge of the company's strategy

The stage in the product life cycle at which it is a poor time to change quality isa. introductionb. growthc. maturityd. declinee. incubation

Which of the following changes does not result in strategy changes?a. change in the company's financial situationb. a company's adoption of new technologyc. change in the product life cycled. change in the competitive environmente. change in job scheduling techniques

All of these preconditions affect an operations management strategy excepta. external economic and technological conditionsb. competitors' strengths and weaknessesc. maintenance policiesd. knowledge of the company's strategye. knowledge of each product's life cycle

Understanding competitors' strengths and weaknesses, understanding current and prospective technological issues, and understanding product life cycle are examples ofa. what is important to the transnational strategy but not the multidomestic strategyb. SWOT analysisc. elements in the formulation of an organization's missiond. preconditions to establishing and implementing a strategye. the critical decision area of supply chain analysis

Which of the following statements is most correct?a. CSFs are often necessary, but not sufficient for competitive advantage.b. CSFs are often sufficient, but not necessary for competitive advantage.c. CSFs are neither necessary nor sufficient for competitive advantage.d. CSFs are both necessary and sufficient for competitive advantage.e. None of the above statements is correct.

Given the position of the iPod in the growth stage of its life cycle, which of the following OMStrategy/Issues should the makers of iPods be least concerned with at the current time?a. forecastingb. cost cuttingc. increasing capacityd. product and process reliabilitye. enhancing distribution

Which of these organizations is likely to have the most complex inventory decisions?a. a marketing research firmb. a stock brokerage firmc. a management consulting firmd. a computer manufacturing companye. a high school

The three steps of the operations manager's job, in order, area. develop the strategy, establish the organizational structure, find the right staffb. develop the strategy, find the right staff, establish the organizational structurec. find the right staff, establish the organizational structure, develop the strategyd. find the right staff, develop the strategy, establish the organizational structuree. establish the organizational structure, find the right staff, develop the strategy

When developing the operations strategy for a new manufacturing organization, one of the mostimportant considerations is that ita. requires minimal capital investmentb. utilizes as much automation as possiblec. utilizes an equal balance of labor and automationd. supports the overall competitive strategy of the companye. none of the above

Which of the international operations strategies involves high cost reductions and high localresponsiveness?a. international strategyb. global strategyc. transnational strategyd. multidomestic strategye. none of the above

Which of the international operations strategies involves low cost reductions and low localresponsiveness?a. international strategyb. global strategyc. transnational strategyd. multidomestic strategye. none of the above

Which of the international operations strategies uses import/export or licensing of existingproducts?a. international strategyb. global strategyc. transnational strategyd. multidomestic strategye. none of the above

Which of the international operations strategies uses the existing domestic model globally?a. international strategyb. global strategyc. transnational strategyd. multidomestic strategye. none of the above

The acronym MNC stands fora. Mexican National Committee (for international trade)b. Maquiladora Negates Competitionc. Maytag- Nestlé Corporationd. Multinational Corporatione. none of the above

Caterpillar and Texas Instruments are two firms that have benefited from the use ofa. the multidomestic strategy option.b. the multinational corporation strategy.c. the transnational strategy option.d. the maquiladora system in Europe.e. the global strategy option

Which of the following are examples of transnational firms?a. Nestléb. Asea Brown Boveric. Reutersd. Citicorpe. All of the above are transnationals

T/FThe ES of an activity that has only one predecessor is simply the EF of that predecessor.

T/FOne phase of a large project is scheduling.

T/FA project organization works best for an organization when the project resides in only one of its functional areas.

T/FBy their very nature, projects have a limited lifetime, and that sets project management apart fromthe management of more traditional activities.

T/FOne responsibility of a project manager is to make sure that the project meets its quality goals.

T/FWork Breakdown Structure is a useful tool in project management because it addresses the timingof individual work elements.

T/FProject managers have their own code of ethics, established by the Project Management Institute.

T/FEthical issues which can arise in projects include bid rigging, bribery, and "low balling."

T/FGantt charts give a timeline for each of a project's activities, but do not adequately show the interrelationships of activities.

T/FPERT, but not CPM, has the ability to consider the precedence relationships in a project.

T/FThe shortest of all paths through the network is the critical path.

T/FThe fundamental difference between PERT and CPM is that PERT uses the beta distribution forcrashing projects while CPM uses cost estimates.

T/FSlack is the amount of time an activity can be delayed without delaying the entire project.

T/FEvery network has at least one critical path.

T/FThe critical path can be determined by use of either the "forward pass" or the "backward pass."

T/FThe PERT pessimistic time estimate is an estimate of the minimum time an activity will require.

T/FThe standard deviation of project duration is the average of the standard deviation of all activities on the critical path.

T/FIn PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time.

T/FShortening the project's duration by deleting unnecessary activities is called "project crashing."

T/FIn project management, crashing an activity must consider the impact on all paths in the network.

Which of the following statements regarding Bechtel is true?a. Its competitive advantage is project management.b. Bechtel was the construction contractor for the Hoover Dam.c. While helping to rebuild Iraq, Bechtel's crews had to travel under armed escort.d. Bechtel's procurement program is global in nature.e. All of the above are true

Which of the following statements about Bechtel is true?a. Even though Bechtel is over 100 years old, the Kuwaiti oil fields was its first "project."b. Bechtel is the world's premier manager of massive construction and engineering projects.c. Bechtel's competitive advantage is supply chain management.d. While its projects are worldwide, its network of suppliers is largely in the U.S.e. All of the above are true.

The phases of project management area. planning, scheduling, and controllingb. planning, programming, and budgetingc. planning, organizing, staffing, leading, and controllingd. different for manufacturing projects than for service projectse. GANTT, CPM, and PERT

A project organizationa. is effective for companies with multiple large projectsb. is appropriate only in construction firmsc. often fails when the project cuts across organizational linesd. is formed to ensure that programs (projects) get proper management and attentione. a and d are both true

Which of the following statements regarding project management is false?a. Gantt charts give a timeline for each of a project's activities, but do not adequately show theinterrelationships of activities.b. A project organization works best for a project that is temporary but critical to the organization.c. Project organization works well when the work contains simple, independent tasks.d. Gantt charts and PERT/CPM are never used together.e. None of the above is true.

A code of ethics especially for project managersa. has been established by the Project Management Instituteb. has been formulated by the Federal governmentc. has been formulated by the World Trade Organizationd. is inappropriate, since everyone should use the same guidance on ethical issuese. does not exist at this time

Divulging information to some bidders on a project to give them an unfair advantagea. is the same thing as altering a status reportb. is briberyc. is permitted by NAFTAd. is known as bid rigginge. is acceptable for private corporations but not for government agencies

Ethical issues that may arise in projects large and small includea. bid riggingb. expense account paddingc. compromised safety or health standardsd. briberye. All of the above are true.

Which of the following statements regarding Gantt charts is true?a. Gantt charts give a timeline and precedence relationships for each activity of a project.b. Gantt charts use the four standard spines of Methods, Materials, Manpower, and Machinery.c. Gantt charts are visual devices that show the duration of activities in a project.d. Gantt charts are expensive.e. All of the above are true.

Which of the following statements regarding critical paths is true?a. The shortest of all paths through the network is the critical path.b. Some activities on the critical path may have slack.c. Every network has exactly one critical path.d. On a specific project, there can be multiple critical paths, all with exactly the same duration.e. The duration of the critical path is the average duration of all paths in the project network.

Which of the following statements regarding CPM is true?a. The critical path is the shortest of all paths through the network.b. The critical path is that set of activities that has positive slack.c. Some networks have no critical path.d. All activities on the critical path have their LS equal their predecessor's EF.e. All of the above are false.

A simple CPM network has three activities, A, B, and C. A is an immediate predecessor of B and of C. B is an immediate predecessor of C. The activity durations are A=4, B=3, C=8.a. The critical path is A-B-C, duration 15.b. The critical path is A-C, duration 12.c. The critical path is A-B-C, duration 13.5d. The critical path cannot be determined without knowing PERT expected activity times.e. The network has no critical path

A simple CPM network has three activities, D, E, and F. D is an immediate predecessor of E and of F. E is an immediate predecessor of F. The activity durations are D=4, E=3, F=8.a. The critical path is D-E-F, duration 15.b. The critical path is D-F, duration 12.c. Slack at D is 3 unitsd. Slack at E is 3 unitse. Both a and c are true

A simple CPM network has five activities, A, B, C, D, and E. A is an immediate predecessor of C and of D. B is also an immediate predecessor of C and of D. C and D are both immediatepredecessors of E.a. There are two paths in this network.b. There are four paths in this network.c. There are five paths in this network.d. There are 25 paths through this network.e. None of these statements is true

Activity D on a CPM network has predecessors B and C, and has successor F. D has duration 6. B's earliest finish is 18, while C's is 20. F's late start is 26. Which of the following is true?a. B is a critical activity.b. C is completed before B.c. D has no slack but is not critical.d. D is critical, and has zero slack.e. All of the above are true

Which of the following statements regarding CPM networks is true?a. There can be multiple critical paths on the same project, all with different durations.b. The early finish of an activity is the latest early start of all preceding activities.c. The late start of an activity is its late finish plus its duration.d. If a specific project has multiple critical paths, all of them will have the same duration.e. All of the above are true.

Activity M on a CPM network has predecessors N and R, and has successor S. M has duration 5. N's late finish is 18, while R's is 20. S's late start is 14. Which of the following is true?a. M is critical and has zero slack.b. M has no slack but is not critical.c. The last start time of S is impossible.d. N is a critical activity.e. S is a critical activity.

Which of the following statements concerning CPM activities is false?a. The early finish of an activity is the early start of that activity plus its duration.b. The late finish is the earliest of the late start times of all successor activities.c. The late start of an activity is its late finish less its duration.d. The late finish of an activity is the earliest late start of all preceding activities.e. The early start of an activity is the latest early finish of all preceding activities

The time an activity will take assuming very unfavorable conditions isa. the optimistic timeb. the pessimistic timec. the activity varianced. the minimum timee. exactly twice as long as the expected time

The expected activity time in PERT analysis is calculated asa. the simple average of the optimistic, pessimistic, and most likely timesb. the weighted average of a, m, and b, with m weighted 4 times as heavily as a and bc. the sum of the optimistic, pessimistic, and most likely timesd. the sum of the optimistic, pessimistic, and most likely times, divided by sixe. the sum of the activity variances, divided by six

Which of the following statements regarding PERT times is true?a. The optimistic time estimate is an estimate of the minimum time an activity will require.b. The optimistic time estimate is an estimate of the maximum time an activity will require.c. The probable time estimate is calculated as t = (a + 4m + b).d. Pessimistic time estimate is an estimate of the minimum time an activity will require.e. Most likely time estimate is an estimate of the maximum time an activity will require.

Which of the following statements regarding PERT times is true?a. Expected time is an estimate of the time an activity will require if everything goes as planned.b. The optimistic time estimate is an estimate of the maximum time an activity will require.c. The probable time estimate is calculated as t = (a + 4m + b)/6.d. Pessimistic time estimate is an estimate of the minimum time an activity will require.e. Most likely time estimate is an estimate of the maximum time an activity will require.

The _____ distribution is used by PERT analysis to calculate expected activity times and variances.a. Normalb. Betac. Alphad. Gaussiane. Binomial

Which of the following statements regarding PERT times is true?a. Expected time is an estimate of the time an activity will require if everything goes as planned.b. The optimistic time estimate is an estimate of the maximum time an activity will require.c. The probable time estimate is calculated as t = (a + 4m + b)/6.d. Pessimistic time estimate is an estimate of the minimum time an activity will require.e. Most likely time estimate is an estimate of the maximum time an activity will require.

The Beta distribution is used in project management toa. calculate slack on activities not on the critical pathb. calculate the probability that a project will be completed within its budgetc. calculate pessimistic and optimistic activity timesd. determine which activity should be crashede. none of the above

The Beta distribution is used in project management toa. determine which activity should be crashedb. calculate the probability that a project will be completed within its budgetc. calculate expected activity timesd. calculate slack for activities on the critical pathe. none of the above

In a PERT network, non-critical activities that have little slack need to be monitored closelya. because PERT treats all activities as equally importantb. because near-critical paths could become critical paths with small delays in these activitiesc. because slack is undesirable and needs to be eliminatedd. because they are causing the entire project to be delayede. because they have a high risk of not being completed

Which of the following statements regarding PERT analysis is true?a. Each activity has two estimates of its duration.b. Project variance is the sum of all activity variances.c. Project standard deviation is the sum of all critical activity standard deviations.d. Only critical activities contribute to the project variance.e. None of the above is true.

Which of these statements regarding time-cost tradeoffs in CPM networks is true?a. Crashing is not possible unless there are multiple critical paths.b. Crashing a project often reduces the length of long-duration, but noncritical, activities.c. Activities not on the critical path can never be on the critical path, even after crashing.d. Crashing shortens the project duration by assigning more resources to one or more of thecritical tasks.e. None of the above is true.

What was the name of the construction project to rebuild the Pentagon after the terrorist attacks onSept. 11, 2001?a. Project Pantherb. Project Pit Bullc. Project Pythond. Project Piranhae. Project Phoenix

Which of the following statements regarding time-cost tradeoffs in CPM networks is false?a. "Project Crashing" shortens project duration by assigning more resources to critical tasks.b. Crashing sometimes has the reverse result of lengthening the project duration.c. Crashing must consider the impact of crashing an activity on all paths in the network.d. Activities not on the critical path can become critical after crashing takes place.e. All of the above are true

A network has been crashed to the point where all activities are critical. Additional crashinga. is unnecessaryb. is impossiblec. is prohibitively expensived. may require crashing multiple tasks simultaneouslye. can be done, but all critical tasks must be reduced in duration

T/FA naïve forecast for September sales of a product would be equal to the forecast for August.

T/FThe forecasting time horizon and the forecasting techniques used tend to vary over the life cycle ofa product.

T/FDemand (sales) forecasts serve as inputs to financial, marketing, and personnel planning

T/FForecasts of individual products tend to be more accurate than forecasts of product families

T/FMost forecasting techniques assume that there is some underlying stability in the system.

T/FThe sales force composite forecasting method relies on salespersons' estimates of expected sales

T/FA time-series model uses a series of past data points to make the forecast.

T/FThe quarterly "make meeting" of Lexus dealers is an example of a sales force composite forecast.

T/FCycles and random variations are both components of time series.

T/FA naive forecast for September sales of a product would be equal to the sales in August.

T/FOne advantage of exponential smoothing is the limited amount of record keeping involved.

T/FThe larger the number of periods in the simple moving average forecasting method, the greater themethod's responsiveness to changes in demand

T/FForecast including trend is an exponential smoothing technique that utilizes two smoothingconstants: one for the average level of the forecast and one for its trend.

What two numbers are contained in the daily report to the CEO of Walt Disney Parks & Resortsregarding the six Orlando parks?a. yesterday's forecasted attendance and yesterday's actual attendanceb. yesterday's actual attendance and today's forecasted attendancec. yesterday's forecasted attendance and today's forecasted attendanced. yesterday's actual attendance and last year's actual attendancee. yesterday's forecasted attendance and the year-to-date average daily forecast errorvv

Forecastsa. become more accurate with longer time horizonsb. are rarely perfectc. are more accurate for individual items than for groups of itemsd. all of the abovee. none of the above

One use of short-range forecasts is to determinea. production planningb. inventory budgetsc. research and development plansd. facility locatione. job assignments

Forecasts are usually classified by time horizon into three categoriesa. short-range, medium-range, and long-rangeb. finance/accounting, marketing, and operationsc. strategic, tactical, and operationald. exponential smoothing, regression, and time seriese. departmental, organizational, and industrial

A forecast with a time horizon of about 3 months to 3 years is typically called aa. long-range forecastb. medium-range forecastc. short-range forecastd. weather forecaste. strategic forecast

Forecasts used for new product planning, capital expenditures, facility location or expansion, andR&D typically utilize aa. short-range time horizonb. medium-range time horizonc. long-range time horizond. naive method, because there is no data historye. all of the above

The three major types of forecasts used by business organizations area. strategic, tactical, and operationalb. economic, technological, and demandc. exponential smoothing, Delphi, and regressiond. causal, time-series, and seasonale. departmental, organizational, and territorial

Which of the following is not a step in the forecasting process?a. Determine the use of the forecast.b. Eliminate any assumptions.c. Determine the time horizon.d. Select forecasting model.e. Validate and implement the results.

The two general approaches to forecasting area. qualitative and quantitativeb. mathematical and statisticalc. judgmental and qualitatived. historical and associativee. judgmental and associative

Which of the following uses three types of participants: decision makers, staff personnel, and respondents?a. executive opinionsb. sales force compositesc. the Delphi methodd. consumer surveyse. time series analysis

The forecasting model that pools the opinions of a group of experts or managers is known as thea. sales force composition modelb. multiple regressionc. jury of executive opinion modeld. consumer market survey modele. management coefficients model

Which of the following is not a type of qualitative forecasting?a. executive opinionsb. sales force compositesc. consumer surveysd. the Delphi methode. moving average

Which of the following techniques uses variables such as price and promotional expenditures,which are related to product demand, to predict demand?a. associative modelsb. exponential smoothingc. weighted moving averaged. simple moving averagee. time series

Which of the following statements about time series forecasting is true?a. It is based on the assumption that future demand will be the same as past demand.b. It makes extensive use of the data collected in the qualitative approach.c. The analysis of past demand helps predict future demand.d. Because it accounts for trends, cycles, and seasonal patterns, it is more powerful than causalforecasting.e. All of the above are true

Time series data may exhibit which of the following behaviors?a. trendb. random variationsc. seasonalityd. cyclese. They may exhibit all of the above

Gradual, long-term movement in time series data is calleda. seasonal variationb. cyclesc. trendsd. exponential variatione. random variation

Which of the following is not present in a time series?a. seasonalityb. operational variationsc. trendd. cyclese. random variations

The fundamental difference between cycles and seasonality is thea. duration of the repeating patternsb. magnitude of the variationc. ability to attribute the pattern to a caused. all of the abovee. none of the above

In time series, which of the following cannot be predicted?a. large increases in demandb. technological trendsc. seasonal fluctuationsd. random fluctuationse. large decreases in demand

Which time series model below assumes that demand in the next period will be equal to the most recent period's demand?a. naive approachb. moving average approachc. weighted moving average approachd. exponential smoothing approache. none of the above

A six-month moving average forecast is better than a three-month moving average forecast ifdemanda. is rather stableb. has been changing due to recent promotional effortsc. follows a downward trendd. follows a seasonal pattern that repeats itself twice a yeare. follows an upward trend

Increasing the number of periods in a moving average will accomplish greater smoothing, but atthe expense ofa. manager understandingb. accuracyc. stabilityd. responsiveness to changese. All of the above are diminished when the number of periods increases.

Which of the following statements comparing the weighted moving average technique andexponential smoothing is true?a. Exponential smoothing is more easily used in combination with the Delphi method.b. More emphasis can be placed on recent values using the weighted moving average.c. Exponential smoothing is considerably more difficult to implement on a computer.d. Exponential smoothing typically requires less record keeping of past data.e. Exponential smoothing allows one to develop forecasts for multiple periods, whereas weightedmoving averages does not.

Which time series model uses past forecasts and past demand data to generate a new forecast?a. naiveb. moving averagec. weighted moving averaged. exponential smoothinge. regression analysis

Which is not a characteristic of exponential smoothing?a. smoothes random variations in the datab. easily altered weighting schemec. weights each historical value equallyd. has minimal data storage requirementse. none of the above; they are all characteristics of exponential smoothing

A forecast based on the previous forecast plus a percentage of the forecast error is a(n)a. qualitative forecastb. naive forecastc. moving average forecastd. weighted moving average forecaste. exponentially smoothed forecast

The primary purpose of the mean absolute deviation (MAD) in forecasting is toa. estimate the trend lineb. eliminate forecast errorsc. measure forecast accuracyd. seasonally adjust the forecaste. all of the above

For a given product demand, the time series trend equation is 53 - 4 X. The negative sign on theslope of the equationa. is a mathematical impossibilityb. is an indication that the forecast is biased, with forecast values lower than actual valuesc. is an indication that product demand is decliningd. implies that the coefficient of determination will also be negativee. implies that the RSFE will be negative

Yamaha manufacturers which set of products with complementary demands to address seasonalfluctuations?a. golf clubs and skisb. swimming suits and winter jacketsc. jet skis and snowmobilesd. pianos and guitarse. ice skates and water skis

Which of the following is true regarding the two smoothing constants of the Forecast IncludingTrend (FIT) model?a. One constant is positive, while the other is negative.b. They are called MAD and RSFE.c. Alpha is always smaller than beta.d. One constant smoothes the regression intercept, whereas the other smoothes the regressionslope.e. Their values are determined independently

A fundamental distinction between trend projection and linear regression is thata. trend projection uses least squares while linear regression does notb. only linear regression can have a negative slopec. in trend projection the independent variable is time; in linear regression the independentvariable need not be time, but can be any variable with explanatory powerd. linear regression tends to work better on data that lack trendse. trend projection uses two smoothing constants, not just one

The percent of variation in the dependent variable that is explained by the regression equation ismeasured by thea. mean absolute deviationb. slopec. coefficient of determinationd. correlation coefficiente. intercepg

The degree or strength of a linear relationship is shown by thea. alphab. meanc. mean absolute deviationd. correlation coefficiente. RSFE

The tracking signal is thea. standard error of the estimateb. running sum of forecast errors (RSFE)c. mean absolute deviation (MAD)d. ratio RSFE/MADe. mean absolute percentage error (MAPE)

Computer monitoring of tracking signals and self-adjustment if a signal passes a preset limit ischaracteristic ofa. exponential smoothing including trendb. adaptive smoothingc. trend projectiond. focus forecastinge. multiple regression analysis

Many services maintain records of sales notinga. the day of the weekb. unusual eventsc. weatherd. holidayse. all of the above

Taco Bell's unique employee scheduling practices are partly the result of usinga. point-of-sale computers to track food sales in 15 minute intervalsb. focus forecastingc. a six-week moving average forecasting techniqued. multiple regressione. a and c are both correct