Production/Operations Management: Test 1 – Flashcards
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Operations management is applicable: A) mostly to the manufacturing sector. B) mostly to the service sector. C) to the manufacturing sector exclusively. D) to services exclusively. E) to all firms, whether manufacturing or service
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E) to all firms, whether manufacturing or service
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Which of the following are the primary functions of all organizations? A) sales, quality control, and production/operations B) production/operations, marketing, and human resources C) marketing, production/operations, and finance/accounting D) marketing, human resources, and finance/accounting E) research and development, finance/accounting, and purchasing
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C) marketing, production/operations, and finance/accounting
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What is a global network of organizations and activities that supply a firm with goods and services? A) vendor network B) supply tree C) provider network D) supply chain E) vendor tree
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D) supply chain
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Which of the following is NOT an element of the management process? A) pricing B) controlling C) leading D) staffing E) Planning
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A) pricing
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Which of the following are among the 10 strategic operations management decisions? I. design of goods and services II. managing quality III. layout strategy IV. marketing V. pricing of goods and services A) II, III, V B) I, II, IV C) I, II, III D) I, II, V E) All of the above
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C) I, II, III
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Henry Ford is noted for his contributions to: A) material requirements planning. B) statistical quality control. C) time and motion studies. D) assembly line operations. E) scientific management
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D) assembly line operations.
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Which of the following attributes is most typical of a service? A) easy to automate B) mass production C) production and consumption occur simultaneously D) tangible E) consistency
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C) production and consumption occur simultaneously
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Productivity measurement is complicated by: A) stable quality. B) the fact that precise units of measure are often unavailable. C) the workforce size. D) the competition's output. E) the type of equipment used.
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B) the fact that precise units of measure are often unavailable.
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Three commonly used productivity variables are: A) education, diet, and social overhead. B) quality, efficiency, and low cost. C) labor, capital, and management. D) quality, external elements, and precise units of measure. E) technology, raw materials, and labor.
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C) labor, capital, and management.
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Which of the three commonly used productivity variables makes the MOST difference in terms of productivity?
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management (52% of the increase in productivity each year)
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The service sector has lower productivity improvements than the manufacturing sector because: A) service sector productivity is hard to measure. B) services usually are labor-intensive. C) the service sector uses less skilled labor than manufacturing. D) the quality of output is lower in services than manufacturing. E) the service sector is often easy to mechanize and automate.
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B) services usually are labor-intensive.
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Cost cutting in international operations can take place because of: A) lower wage scales. B) lower taxes and tariffs. C) lower indirect costs. D) less stringent regulations. E) all of the above.
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E) All of the above
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Which of the following is LEAST likely to be a low-cost leadership competitive advantage? A) broad product line B) inventory management C) mass production D) low overhead E) effective capacity use
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E) effective capacity use
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Which of the following statements is most correct? A) KSFs are both necessary and sufficient for competitive advantage. B) KSFs are often necessary, but not sufficient for competitive advantage. C) KSFs are often sufficient, but not necessary for competitive advantage. D) KSFs are neither necessary nor sufficient for competitive advantage. E) None of the above statements is correct.
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B) KSFs are often necessary, but not sufficient for competitive advantage.
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Outsourcing is simply an extension of the long-standing practice of: A) exporting. B) e-procurement. C) importing. D) postponement. E) subcontracting.
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E) subcontracting.
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A SWOT analysis determines: A) internal strengths and weaknesses and internal opportunities and threats. B) internal strengths and weaknesses and external opportunities and threats. C) external strengths and weaknesses and external opportunities and threats. D) internal strengths and opportunities and external weaknesses and threats. E) external strengths and weaknesses and internal opportunities and threats.
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B) internal strengths and weaknesses and external opportunities and threats.
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Porter's Five Forces Model is used to evaluate competition based on which 5 aspects? A) immediate rivals, potential entrants, customers, suppliers, and substitute products B) potential entrants, customers, suppliers, legal regulations, and cost C) research and development, cost, legal regulations, suppliers, customers D) cost, legal regulations, advertising effectiveness, potential entrants, and immediate rivals E) immediate rivals, potential entrants, cost, substitute products, and legal regulations
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A) immediate rivals, potential entrants, customers, suppliers, and substitute products
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Given the position of the 3D printer in the growth stage of its life cycle, which of the following OM Strategy/Issues should the makers of 3D printers be least concerned with at the current time? A) cost cutting B) enhancing distribution C) increasing capacity D) forecasting E) product and process reliability
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A) cost cutting
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Which of the following represents a reason for globalizing operations? A) to improve the supply chain B) to expand a product's life cycle C) to attract and retain global talent D) to improve operations E) all of the above
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E) all of the above
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The fundamental purpose of an organization's mission statement is to: A) define the functional areas required by the organization. B) create a good human relations climate in the organization. C) generate good public relations for the organization. D) define the operational structure of the organization. E) define the organization's purpose in society.
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E) define the organization's purpose in society.
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According to the authors, which of the following strategic concepts allow firms to achieve their missions? A) productivity, efficiency, and quality leadership B) differentiation, cost leadership, and response C) differentiation, distinctive competency, quality leadership, and capacity D) differentiation, quality leadership, and response E) distinctive competency, cost leadership, and experience
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B) differentiation, cost leadership, and response
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What is production?
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The creation of goods and services.
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What is Operations Management (OM)?
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Operations management (OM) is the set of activities that create value in the form of goods and services by transforming inputs into outputs.
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What are the three essential functions of every company?
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(1) Marketing - generates demand (2) Production/operations - creates the product (3) Finance/accounting - tracks how well the organization is doing, pays bills, collects the money
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What is the supply chain?
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The supply chain is a global network of organizations and activities that supply a firm with goods and services.
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Members of the supply chain collaborate to achieve high levels of (1), (1) and (1).
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(1) customer satisfaction, efficiency, and competitive advantage
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What are the basic management functions of OM managers?
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1) planning 2) organizing 3) staffing 4) leading 5) controlling
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What are the 10 strategic decisions in Production/Operations Management? 1) Design of .... and .... 2) Managing .... 3) .... and .... design 4) .... strategy 5) .... strategy 6) Human .... and .... design 7) .... management 8) .... management 9) .... 10) ....
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What are the 10 strategic decisions in Production/Operations Management? 1) Design of goods and services 2) Managing quality 3) Process and capacity design 4) Location strategy 5) Layout strategy 6) Human resources and job design 7) Supply-chain management 8) Inventory management 9) Scheduling 10) Maintenance
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What is Deming known for?
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Quality Control
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Products are (1) and services are (2).
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Products are tangible and services are intangible.
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Products are typically neither purely .... or purely .... based.
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Products are typically neither purely service- or purely goods-based.
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Production is a measure of .... only and not a measure of .....
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Production is a measure of output only and not a measure of efficiency.
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Productivity is the ratio of .... divided by the .....
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Productivity is the ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital).
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We already stated that management is responsible for 52% of the increase in productivity per year. What about labor and capital?
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Labor = 10% of the increase in productivity per year Capital = 38% of the increase in productivity per year
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What is the simple formula for productivity?
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Productivity = units produced/inputs used
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Single-factor productivity analyzes the contribution of input to output for ONE resource input (labor, capital, materials, etc.). An example of an answer would be 4 units/labor-hour (1000 units/250 labor-hours). However, if you are analyzing multiple resource inputs at a time, you are looking at multi-factor productivity (AKA as (1)). With multi-factor productivity, output and inputs are often expressed in (2).
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(1) total factor productivity (2) dollars
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Some measurement problems are: 1) .... may change while the quantity of inputs and outputs remains constant. 2) .... may cause an increase or decrease in productivity 3) .... may be lacking (as is often the case in service markets)
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Some measurement problems are: 1) Quality may change while the quantity of inputs and outputs remains constant. 2) External elements may cause an increase or decrease in productivity 3) Precise units of measure may be lacking (as is often the case in service markets)
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What are the three productivity variables?
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Labor, Capital, and Management
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Key Variables for Improved Labor Productivity 1) .... appropriate for the labor force 2) .... of the labor force 3) .... that makes labor available. The challenge is in maintaining and enhancing skills in the midst of rapidly changing technology and knowledge.
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Key Variables for Improved Labor Productivity 1) Basic education appropriate for the labor force 2) Diet of the labor force 3) Social overhead that makes labor available. The challenge is in maintaining and enhancing skills in the midst of rapidly changing technology and knowledge.
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Productivity and the Service Sector 1) Typically .... intensive 2) Frequently focused on unique individual .... or .... 3) Often an .... performed by professionals 4) Often difficult to .... and .... 5) Often difficult to .... for quality
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Productivity and the Service Sector 1) Typically labor intensive 2) Frequently focused on unique individual attributes or desires 3) Often an intellectual task performed by professionals 4) Often difficult to mechanize and automate 5) Often difficult to evaluate for quality
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What are some of the new challenges in OM? .... focus .... partnering .... .... development .... customization .... performance .... employees
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What are some of the new challenges in OM? Global focus Supply-chain partnering Sustainability Rapid product development Mass customization Just-in-time performance Empowered employees
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What are 6 reasons that companies globalize? 1) Improve the .... 2) Reduce .... 3) Improve .... 4) Understand .... 5) Improve .... 6) Attract and retain ....
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What are 6 reasons that companies globalize? 1) Improve the supply chain 2) Reduce costs (labor, taxes, tariffs, etc) 3) Improve operations 4) Understand markets 5) Improve products 6) Attract and retain global talent
