Mochaw9 Original - Operation Management BUS 515 Exam File...

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Unformatted text preview: Operation Management BUS 515 Exam File: ch01, Chapter 1: Basics of Operations Management Multiple Choice 1. Every business is managed through what three major functions? a) accounting, finance, and marketing b) engineering, finance, and operations management c) accounting, purchasing, and human resources d) accounting, engineering, and marketing e) finance, marketing, and operations management Ans: Section Ref: What is Operations Management? Level: easy 2. Which business function is responsible for managing cash flow, current assets, and capital investments? a) accounting b) finance c) marketing d) operations management e) purchasing Ans: Section Ref: What is Operations Management? Level: easy 3. Which business function is responsible for managing cash flow, current assets, and capital investments? a) accounting b) finance c) marketing d) operations management e) purchasing Ans: Section Ref: What is Operations Management? Level: easy 4. Which business function is responsible for sales, generating customer demand, and understanding customer wants and needs? a) finance b) human resources c) marketing d) operations management e) purchasing Ans: Section Ref: What is Operations Management? Level: easy 5. Which business function is responsible for planning, coordinating, and controlling the resources needed to produce a company’s products and services? a) engineering b) finance c) human resources d) marketing e) operations management Ans: Section Ref: What is Operations Management? Level: easy 6. Which of the following is not true for business process reengineering? a) It can increase efficiency. b) It cannot be used to improve quality. c) It can reduce costs. d) It involves asking why things are done in a certain way. e) It involves redesigning processes. Ans: Section Ref: Historical Development Level: easy 7. At the GAP, which function plans and coordinates all the resources needed to design, produce, and deliver the merchandise to its various retail locations? a) engineering b) human resources c) marketing d) operations management e) purchasing Ans: Section Ref: What is Operations Management? Level: easy 8. Operations Management is responsible for increasing the organization’s efficiency, which means the company will be able to __________. a) add to the engineering process b) take for granted current operations c) increase the number of positions under the manager’s position d) eliminate activities that do not add value e) increasing purchasing opportunities Ans: Section Ref: What is Operations Management? Level: moderate 9. Which one of the following would not generally be considered to be a transformation? a) a haircut b) a train ride c) manufacturing a radio d) waiting to see the doctor e) a surgery Ans: Section Ref: What is Operations Management? Level: moderate 10. At a factory, the transformation process is a (an) change of raw materials and components into products. a) locational b) imperceptible c) hypothetical d) irreversible e) physical Ans: Section Ref: What is Operations Management? Level: moderate 11. Which of the following is not an input? a) services b) managers c) buildings d) technology e) information Ans: Section Ref: What is Operations Management? Level: moderate 12. Operations management is responsible for orchestrating all the resources needed to produce the final product. This includes all of the following except ______________________________________. a) obtaining customer feedback b) arranging schedules c) managing inventory d) controlling quality e) designing work methods Ans: Section Ref: What is Operations Management? Level: hard 13. Which second-tier computer company utilized a drastic change in its operations function to become an industry leader in the late 1990s? a) Apple b) Compaq c) Dell d) IBM e) Kozmo Ans: Section Ref: What is Operations Management? Level: easy 14. A company with a low customer contact that is capital intensive is called: a) a farm b) manufacturing c) quasi-manufacturing d) service e) Industrial era operations management Ans: Section Ref: Differences Between Manufacturing and Service Organizations Level: easy 15. Which initially successful web-based home delivery company had to shut down in 2001 due to inadequate management of its operations? a) Contact.com b) Time Saver.com c) Kozmo.com d) Kramer.com e) Neptune.com Ans: Section Ref: What is Operations Management? Level: moderate 16. In order to be successful with Web-based on-line shopping, companies must do all except which of the following? a) manage distribution centers and warehouses b) operate fleets of trucks c) maintain adequate inventories of products d) promise same-day delivery e) schedule deliveries Ans: Section Ref: What is Operations Management? Level: hard 17. What outsourcing functions does UPS provide for clients? a) accounting and inventories b) inventories and deliveries c) accounting and deliveries d) accounting and maintenance e) deliveries and maintenance Ans: Section Ref: What is Operations Management? Level: hard 18. An example of an operation that does not add value is ____________________________. a) removing iron ore from the ground and shipping it to a steel mill b) filling the underground gasoline tanks at a service station c) making a wedding cake d) moving components to a warehouse for storage until the factory needs them e) moving luggage from a cab to the airport ticket counter Ans: Section Ref: What is Operations Management? Level: hard 19. Which famous economist once suggested that, “The production problem has been solved.”? a) John Nash b) Irving Fisher c) John Kenneth Galbraith d) Adam Smith e) John Maynard Keynes Ans: Section Ref: Historical Development Level: hard 20. What was the primary reason why American firms lost market dominance in many industries in the 1970s and 1980s? a) OPEC oil embargoes b) the Vietnam war had drained the economy of resources c) after Richard Nixon was President, foreign consumers began to mistrust American firms d) they had become lax with a lack of competition in the 1950s and 1960s e) foreign government subsidies for business Ans: Section Ref: Historical Development Level: moderate 21. In what area does General Motors earn its highest return on capital? a) selling cars b) selling logo merchandise c) financing d) selling racing engines e) post-sales parts and service Ans: Section Ref: What is Operations Management? Level: hard 22. Which of the following is an example of a “back room” operation for an airline company? a) serving food and drinks to passengers b) collecting tickets and checking passengers in at the gate c) loading luggage onto the airplane d) demonstrating use of the seat belt and other safety features of the airplane e) assisting passengers in getting off of the plane Ans: Section Ref: Differences Between Manufacturing and Service Organizations Level: moderate 23. What are companies that have low customer contact and are capital intensive, yet provide a service, called? a) pseudo-manufacturing organizations b) quasi-manufacturing organizations c) hierarchical manufacturing organizations d) service factories e) servifacturing organizations Ans: Section Ref: Differences Between Manufacturing and Service Organizations Level: moderate 24. What percentage of total non-farm jobs in the U.S. economy come from serviceproducing industries? a) 20% b) 50% c) 60% d) 80% e) 95% Ans: Section Ref: Differences Between Manufacturing and Service Organizations Level: moderate 25. What are long-term decisions that set the direction for the entire organization called? a) tactical b) operational c) directional d) distant e) strategic Ans: Section Ref: Operations Management Decisions Level: easy 26. Which of the following is not true with respect to strategic and tactical decisions? a) tactical decisions focus on more specific day-to-day decisions b) tactical decisions determine the direction for strategic decisions c) tactical decisions provide feedback to strategic decisions d) tactical decisions are made more frequently and routinely e) tactical decisions must be aligned with strategic decisions Ans: Section Ref: Operations Management Decisions Level: moderate 27. Which of the following is not primarily performed by the operation management function? a) job design and work measurement b) advertising strategy c) location analysis d) quality management e) facility layout Ans: Section Ref: Operations Management Decisions Level: moderate 28. When did operations management emerge as a formal field of study? a) during the late 1950s and early 1960s b) during the late 1970s and early 1980s c) during World War II d) during the nineteenth century e) during the early 1900s Ans: Section Ref: Historical Development Level: moderate 29. Managing the transformation of inputs into goods and services is: a) a post industrial era process. b) a direct contributor to the curved earth syndrome. c) as old as time. d) a twenty-first century developed process. e) a design of Frederick Taylor. Ans: Section Ref: Historical Development Level: hard 30. Who invented the steam engine? a) James Watt b) Adam Smith c) Eli Whitney d) Henry Ford e) Frederick Taylor Ans: Section Ref: Historical Development Level: hard 31. What concept involves breaking down the production of a product into a series of small, elementary tasks, each of which is performed by a different worker? a) division of labor b) interchangeable parts c) scientific management d) the Hawthorne effect e) operations research Ans: Section Ref: Historical Development Level: easy 32. Who wrote The Wealth of Nations in 1776, describing division of labor? a) James Watt b) Adam Smith c) Eli Whitney d) Henry Ford e) Frederick Taylor Ans: Section Ref: Historical Development Level: hard 33. The concept of interchangeable parts was introduced by ___________________. a) Adam Smith b) Frederick Taylor c) Eli Whitney d) Henry Ford e) W. Edwards Deming Ans: Section Ref: Historical Development Level: hard 34. Who created “scientific management?” a) James Watt b) Adam Smith c) Eli Whitney d) Frederick W. Taylor e) Henry Ford Ans: Section Ref: Historical Development Level: moderate 35. What was Frederick W. Taylor’s background? a) physics b) human resources management c) operations research d) psychology e) engineering Ans: Section Ref: Historical Development Level: hard 36. A key feature of scientific management is that workers are motivated only by __________________. a) love b) power c) challenging work d) money e) fame Ans: Section Ref: Historical Development Level: moderate 37. A key feature of scientific management is that workers are limited only by __________________. a) machinery b) co-workers c) their job description d) their tools e) their physical ability Ans: Section Ref: Historical Development Level: moderate 38. The creator of scientific management believed that ______________________________________. a) worker productivity is governed by scientific laws b) the worker should have a lot of control over his or her job c) efficiency is overrated d) worker pay should primarily be based on seniority e) mathematical models are the basis for management of production Ans: Section Ref: Historical Development Level: moderate 39. Which of the following operations management concepts did not evolve from scientific management? a) moving assembly lines b) interchangeable parts c) stopwatch time studies d) piece rate incentives e) setting time standards for task performance Ans: Section Ref: Historical Development Level: moderate 40. Who popularized the moving assembly line? a) James Watt b) Adam Smith c) Eli Whitney d) Frederick W. Taylor e) Henry Ford Ans: Section Ref: Historical Development Level: moderate 41. Under scientific management, information from what is used to set time standards for task performance? a) stopwatch time studies b) observance of similar tasks c) computer simulation d) negotiations with unions e) arbitration Ans: Section Ref: Historical Development Level: moderate 42. What movement started with the publication of the results of the Hawthorne studies? a) scientific management b) human relations c) management science d) marketing research e) operations management Ans: Section Ref: Historical Development Level: moderate 43. What is the Hawthorne effect? a) workers responding to the attention they are given b) stopwatch time studies leading to time standards c) the use of quantitative methods for solving management problems d) the use of interchangeable parts e) more lighting increases productivity Ans: Section Ref: Historical Development Level: moderate 44. Increasing the level of responsibility of a job by adding planning and coordination tasks is ___________. a) job enlargement b) job rotation c) job involvement d) job enrichment e) job backward integration Ans: Section Ref: Historical Development Level: moderate 45. The first military use of management science was solving complex problems of logistics control, weapons system design, and deployment of missiles during _____________________. a) World War I b) World War II c) The Korean War d) The Vietnam War e) Operation Desert Storm Ans: Section Ref: Historical Development Level: hard 46. What term describes the approach of giving workers a larger portion of the total task to do? a) job enlargement b) job rotation c) job involvement d) job enrichment e) job backward integration Ans: Section Ref: Historical Development Level: moderate 47. When were the Hawthorne Studies conducted? a) 1770s b) 1830s c) 1930s d) 1960s e) 1980s Ans: Section Ref: Historical Development Level: moderate 48. In what company were the Hawthorne Studies conducted? a) Westinghouse b) General Electric c) Hawthorne Incorporated d) General Motors e) Western Electric Ans: Section Ref: Historical Development Level: hard 49. Management science is focused on: a) profit margin b) qualitative systems analysis c) management promotion metrics d) quantitative techniques for solving personnel issues e) quantitative techniques for solving operations problems Ans: Section Ref: Historical Development Level: hard 50. When was the first mathematical model for inventory management developed? a) 1770 b) 1865 c) 1900 d) 1913 e) 1930 Ans: Section Ref: Historical Development Level: hard 51. Where was the just-in-time philosophy developed? a) Germany b) United States c) Canada d) Japan e) Italy Ans: Section Ref: Historical Development Level: moderate 52. Just-in-time philosophy is applicable in: a) Service organizations b) Manufacturing organizations c) Assembly line operations d) A, B, and C e) A and C only Ans: Section Ref: Historical Development Level: moderate 53. When was the just-in-time philosophy developed? a) 1980s b) 1930s c) 1800s d) 1700s e) 1990s Ans: Section Ref: Historical Development Level: hard 54. What is a philosophy that aggressively seeks to improve product quality by eliminating causes of product defects and making quality an all-encompassing organizational philosophy? a) CQI b) TQM c) SPC d) JIT e) BPR Ans: Section Ref: Historical Development Level: moderate 55. Which of the following is considered a “quality guru?” a) Elton Mayo b) W. Edwards Deming c) Alex Gamble d) F.W. Harris e) Frederick W. Taylor Ans: Section Ref: Historical Development Level: hard 56. Supply chain management involves managing: a) the flow of internal information only. b) the flow of materials and information from suppliers and buyers to the final customer. c) the flow of raw materials to inventory only. d) managing the stock room supply only. Ans: Section Ref: Historical Development Level: hard 57. Many companies require their suppliers to meet what standards as a condition for obtaining contracts? a) RFO 6000 b) PUR 8000 c) ISO 9000 d) MACH 5000 e) SUP 2000 Ans: Section Ref: Historical Development Level: hard 58. One of the two most important features of time-based competition involves ________________________. a) advertising on the Internet b) stopwatch time studies c) setting time standards for task performance d) instantaneous access to inventory information e) developing new products and services faster than the competition Ans: Section Ref: Historical Development Level: moderate 59. ISO 14000 standards provide guidelines for what? a) business ethics b) environmentally responsible actions c) supplier certification d) quality control e) web site development Ans: Section Ref: Historical Development Level: moderate 60. NAFTA and the EU are _________________________. a) certification groups b) regional trade agreements c) quality control methods d) logistics providers e) U.S. government agencies Ans: Section Ref: Historical Development Level: moderate 61. What type of commerce makes up the highest percentage of electronic transactions? a) B2C b) C2C c) B4B d) B2B e) B4C Ans: Section Ref: Historical Development Level: moderate 62. The Internet developed from a government network called ARPANET, which was created in 1969 by _____. a) Japanese scientists b) the EPA c) the U.S. Defense Department d) NSF e) ISO Ans: Section Ref: Historical Development Level: hard 63. Today’s business must think in terms of: a) regional trade zones b) the EPA c) the U.S. Defense Department d) the global market place e) the curved world Ans: Section Ref: Historical Development Level: hard 64. General Electric’s Trading Process Network primarily handles transactions between _________________. a) individual customers b) companies and individual customers c) companies and their shipping firms d) companies and their distributors e) companies and their suppliers Ans: Section Ref: Historical Development Level: moderate 65. What is a concept that takes a total system approach to creating efficient operations? a) lean systems b) enterprise resource planning c) customer relationship management d) management science e) management information systems Ans: Section Ref: Today’s OM Environment Level: easy 66. What are software solutions that allow the firm to collect customer-specific data? a) MRP b) CRM c) ERP d) JIT e) ISO Ans: Section Ref: Today’s OM Environment Level: moderate 67. Entry-level positions for operations management graduates include all of the following except _________. a) quality specialist b) inventory analyst c) plant manager d) production analyst e) production supervisor Ans: Section Ref: Today’s OM Environment Level: moderate 68. Operations management personnel perform a variety of functions, including all of the following except ___________________. a) analyzing production problems b) analyzing potential mergers c) developing forecasts d) developing employee schedules e) monitoring inventory Ans: Section Ref: Today’s OM Environment Level: moderate 69. Which of the following concepts is linked the leastwith Henry Ford? a) scientific management b) mass production c) mass customization d) technology e) interchangeable parts Ans: Section Ref: Historical Development Level: hard 70. Today’s operations management is characterized by: a) its use of the internet. b) its reliance on the intranet. c) its increased use of cross-functional decision making. d) its use of cross-functional job sharing. e) its use of interchangeable parts. Ans: Section Ref: Today’s OM Environment Level: hard 71. Which of the following historical figures would probably have the most different management style from the others? a) Elton Mayo b) Henry Ford c) Eli Whitney d) Frederick W. Taylor e) Adam Smith Ans: Section Ref: Historical Development Level: hard 72. Operations management interacts with which of the following: a) Marketing b) Information systems c) Finance d) Engineering e) all the above Ans: Section Ref: OM Across the Organization Level: moderate True/False 1. Operations management is the business function that plans, coordinates, and controls the resources needed to produce a company’s products and services. Ans: Section Ref: What is Operations Management? Level: easy 2. Marketing is the central core function of every company. Ans: Section Ref: What is Operations Managem...
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