chap1.docx - File ch01 Chapter 1 Basics of Operations...

Info icon This preview shows pages 0–1. Sign up to view the full content.

View Full Document Right Arrow Icon

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 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 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 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 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 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 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. 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 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 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 10. At a factory, the transformation process is a (an) a) locational b) imperceptible c) hypothetical d) irreversible e) physical change of raw materials and components into products. 11. Which of the following is not an input? a) services b) managers c) buildings d) technology e) information 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 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 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 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 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 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 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 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 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 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 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 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 24. What percentage of total non-farm jobs in the U.S. economy come from service-producing industries? a) 20% b) 50% c) 60% d) 80% e) 95% 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 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 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 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 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. 30. Who invented the steam engine? a) James Watt b) Adam Smith c) Eli Whitney d) Henry Ford e) Frederick Taylor 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 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 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 34. Who created “scientific management?” a) James Watt b) Adam Smith c) Eli Whitney d) Frederick W. Taylor e) Henry Ford 35. What was Frederick W. Taylor’s background? a) physics b) human resources management c) operations research d) psychology e) engineering 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 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 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 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 40. Who popularized the moving assembly line? a) James Watt b) Adam Smith c) Eli Whitney d) Frederick W. Taylor e) Henry Ford 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 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 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 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 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 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 47. When were the Hawthorne Studies conducted? a) 1770s b) 1830s c) 1930s d) 1960s e) 1980s 48. In what company were the Hawthorne Studies conducted? a) Westinghouse b) General Electric c) Hawthorne Incorporated d) General Motors e) Western Electric 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 50. When was the first mathematical model for inventory management developed? a) 1770 b) 1865 c) 1900 d) 1913 e) 1930 51. Where was the just-in-time philosophy developed? a) Germany b) United States c) Canada d) Japan e) Italy 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 53. When was the just-in-time philosophy developed? a) 1980s b) 1930s c) 1800s d) 1700s e) 1990s 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 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 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. 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 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 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 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 61. What type of commerce makes up the highest percentage of electronic transactions? a) B2C b) C2C c) B4B d) B2B e) B4C 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 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 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 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 66. What are software solutions that allow the firm to collect customer-specific data? a) MRP b) CRM c) ERP d) JIT e) ISO 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 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 69. Which of the following concepts is linked the least with Henry Ford? a) scientific management b) mass production c) mass customization d) technology e) interchangeable parts 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. 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 72. Operations management interacts with which of the following: a) Marketing b) Information systems c) Finance d) Engineering e) all the above 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. T 2. Marketing is the central core function of every company. F 3. Operations management is the central core function of every company. T 4. An example of a transformation is waiting to see the doctor. F 5. At a factory, the transformation process is the physical change of raw materials and components into products. T 6. An example of an operation that does not add value is making a wedding cake. F 7. Efficiency means being able to perform most activities. F 8. An example of a “back room” operation for an airline company is loading luggage onto the airplane. T 9. Companies that have low customer contact and are capital intensive, yet provide a service, are called service factories. F 10. The Industrial Revolution started in the 1770s with the development of a number of inventions that relied on machine power instead of human power. T 11. Division of labor involves breaking down the production of a product into a series of small, elementary tasks, each of which is performed by a different worker. T 12. A key feature of scientific management is that workers are limited only by their tools. F 13. The creator of scientific management believed that worker productivity was governed by scientific laws. T 14. Operations management is a result of a single event, the industrial revolution. F 15. Worker participation in decision making is a key feature of scientific management. F 16. “Job enrichment” is an approach in which workers are given a larger portion of the total task to do. F 17. The first mathematical model for inventory management was developed by Elton Mayo. F 18. Operations research started with the publication of the results of the Hawthorne studies. F 19. Sustainability was an early 1950’s management function and focus. F 20. The Hawthorne effect is that workers are motivated by the attention they are given. T 21. Increasing the level of responsibility of a job by adding planning and coordination tasks is called job enrichment. T 22. Outsourcing is providing goods or services to an outside provider. F 23. Management science focuses on developing quantitative techniques for solving operations problems. T 24. The advent of the computer age paved the way for the development of MRP for inventory control and scheduling. T 25. The objective of supply chain management is to have every member of the chain compete against each other to enhance competitive abilities. F 26. The need to offer a greater variety of product choices to customers of a traditionally standardized product is the challenge of flexibility. T 27. One of the most important trends in companies today is competition based on time. T 28. The highest percentage of transactions on the internet occur between businesses and their customers (B2C). F 29. Today many corporate CEOs have come through the ranks of operations. T 30. Marketing can always meet the customer’s needs. F Essay 1. Define operations management. Ans: The business function responsible for planning, coordinating, and controlling the resources needed to produce a company’s products and services. 2. What must companies focus on in order to survive in today’s business environment? Ans: quality, time-based competition, efficiency, international perspectives, and customer relationships 3. What are the three major functions through which every business is managed? Ans: finance, marketing, and operations management 4. What is the “role” of operations management? Ans: To transform organizational inputs into outputs 5. List at least seven different possible inputs to a transformation process. Ans: workers, managers, buildings, equipment, materials, technology, and information 6. What must companies do in order to be successful with Web-based on-line shopping? Ans: Manage distribution centers and warehouses, operate fleets of trucks, forecast what customers want and maintain adequate inventories of products, and schedule deliveries while keeping costs low and customers happy. 7. In what ways do service organizations differ from manufacturing organizations? Ans: Manufacturing organizations produce a physical, tangible product that can be stored in inventory before it is needed, while service organizations produce an intangible product that cannot be produced ahead of time; and for manufacturing organizations most customers have no direct contact with the operation, while for service organizations customers are typically present during creation of the service. Also, service organizations tend to have a shorter response time and are more labor intensive. 8. List some typical operations management decisions that ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern