MGT 366 Quiz 1 Practice Problems


1. Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used


2. Operations, marketing, and finance function independently of each other in most organizations.


3. Service often requires greater labor content, whereas manufacturing is more capital intensive.


4. Operations managers, who usually use quantitative approaches, are not really concerned with ethical decision making.


5. Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom-made parts.


6. Operations management and marketing are the two functional areas that exist to support activities in other functions such as accounting, finance, IT, and human resources.


7. Lean production systems incorporate the advantages of both mass production and craft production.

Operations management involves continuous decision making; hopefully most decisions made will be:

A. redundant.

B. minor in nature.

C. informed.

D. quantitative.

E. qualitative.

9. Business organizations consist of three major functions which, ideally:

A. support one another.

B. are mutually exclusive.

C. exist independently of each other.

D. function independently of each other.

E. do not interface with each other.

10. Which of the following is not a type of operations?

A. goods production

B. storage/transportation

C. entertainment

D. communication

E. advertising

11. Measurements taken at various points in the transformation process for control purposes are called:

A. plans.

B. directions.

C. controls.

D. feedback.

E. budgets.

12. Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function.

A. operation

B. marketing

C. purchasing

D. finance

E. internal audit

13. Which of the following is not a characteristic of service operations?

A. intangible output

B. high customer contact

C. high labor content

D. easy measurement of productivity

E. low uniformity of output

14. Which of the following most involves coordinating the activities among all the elements of the business?

A. pollution control

B. quality management

C. supply chain management

D. competition from foreign manufacturers

E. technological change

15. The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the:

A. Irwin phenomenon.

B. Pareto phenomenon.

C. Stevenson phenomenon.

D. Tellier phenomenon.

E. Adam Smith phenomenon.

16. The process of comparing outputs to previously established standards to determine if corrective action is needed is called:

A. planning.

B. directing.

C. controlling.

D. budgeting.

E. disciplining.

17. Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management.

A. outsourcing; supply chain

B. offshoring; lean

C. downsizing; total quality

D. optimizing; inventory

E. internationalization; intercultural

18. Marketing depends on operations for information regarding:

A. productivity.

B. lead time.

C. cash flow.

D. budgeting.

E. corporate intelligence.

19. Which of the following refers to service and production processes that use resources in ways that do not harm ecological systems?

A. sustainability

B. supportability

C. marketability

D. perishability

E. transportability

20. If one organization is better able than most to respond to changes in demands or opportunities, we say that organization exhibits higher:

A. sustainability.

B. efficiency.

C. productivity.

D. agility.

E. marketability.


21. A mission statement should provide a guide for the formulation of strategies for the organization.

22. Organizational strategy should be determined without considering the realities of functional area strengths and weaknesses since they can be changed to meet our strategy.
23. Mission statements should be as specific as possible regarding exactly how they will be accomplished.
24. Standardization has the advantage of reducing variability.
25. Which of the following is least likely to affect the cost an organization incurs in producing its products or services?

A. price

B. productivity

C. location

D. quality

E. inventory management

26. An organization’s mission statement serves as the basis for:

A. environmental scanning.

B. core competencies.

C. operating procedures.

D. distinctiveness.

E. organizational goals.

27. Which of these factors would be least likely to affect productivity?

A. methods and technology

B. workers

C. management

D. product mix

E. advertising

28. The ratio of good output to quantity of raw material input is called

A. nondefective productivity.

B. process yield.

C. worker quality measurement.

D. total quality productivity.

E. quantity/quality ratio.

29. The fundamental purpose for the existence of any organization is described by its:

A. policies.

B. procedures.

C. corporate charter.

D. mission statement.

E. bylaws.

30. The external elements of SWOT analysis are:

A. strengths and weaknesses.

B. strengths and threats.

C. opportunities and threats.

D. weaknesses and opportunities.

E. strengths and opportunities.

31. Unique attributes of firms that give them a competitive edge are called:

A. functional strategies.

B. Balanced Scorecards.

C. supply chains.

D. core competencies.

E. sustainable initiatives.

32. Which of the following factors would tend to reduce productivity?

A. improvements in workplace safety

B. reductions in labor turnover

C. more inexperienced workers

D. reductions in the scrap rate

E. less variety in the product mix


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