question

Production

answer

Creation of goods and services

question

Operations Management

answer

Set of activities that creates value in the form of goods and services by transforming inputs into outputs

question

The management process

answer

Consists of planning, organizing, staffing, leading, and controlling

question

Services

answer

Including repair and maintanance, government, food and lodging, transportation, insurance, trade, financial, real estate, education, legal, medical, entertainment, and other professional occupations

question

Pure service

answer

When a tangible product is not included in the service

question

Service sector

answer

The segment of the economy that includes trade, financial, lodging, educational, legal, medical, and other professional occupations

question

Productivity

answer

The ratio of outputs (goods and services) divided by the number of inputs (resources, such as labor and capital)

question

Single-factor productivity

answer

The use of just one resource input to measure productivity

question

Multi-factor productivity

answer

Includes all inputs

question

Productivity increases

answer

Labor, capital, management

question

Knowledge societies

answer

Those in which much of the labor force has migrated from manual work to technical and informational processing tasks requiring on-going education

question

Maquiladoras

answer

Free trade zones that allow manufacturers to cut their costs of taxation by paying only on the value added by Mexican workers

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World Trade Organization (WTO)

answer

Helped reduce tariffs from 40% in 1940 to less than 3% today

question

North American Free Trade Agreement (NAFTA)

answer

Seeks to phase out all trade and tariff barriers among Canada, and the U.S

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European Union (EU)

answer

Reduced trade barriers among the participating European nations through standardization and a common currency, the euro

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Misson

answer

Purpose- what will it contribute to society

question

Strategy

answer

An organization's action plan to achieve the mission

question

Competitive Advantage

answer

Implies the creation of a system that has unique advantage over competitors

question

Differentiation

answer

As going beyond both physical characteristics and source attributes to encompass everything about the product or service that influences the value that the customers derive from it

question

Experience differentiation

answer

To engage the customer- to use people's five senses so they become immersed, or even an active participant in the product

question

Low-cost leadership

answer

Entails achieving maximum value as defined by your customer

question

Response

answer

Including the entire range of values related to timely product development and delivery, as well as reliable scheduling and flexible performance

question

Operations decisions

answer

Goods and services design, quality, process and capacity design, location selection, layout design, human resources and job design, supply chain management, inventory, scheduling, maintenance

question

PIMS (profit impact of market strategy) program

answer

Collected nearly 100 data items from about 3,000 cooperating organizations

question

SWOT analysis

answer

Strengths, weaknesses, opportunities, and threats. Evaluating internal strengths and weaknesses as well as opportunities and threats of the environment

question

Critical success factors (CSFs)

answer

Activities necessary for a firm to achieve its goals

question

Core competencies

answer

Set of unique skills, talents, and capabilities that a firm does at a world-class standard

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Activity map

answer

Links competitive advantage, CSFs, and supporting activities

question

International business

answer

Any firm that engages in international trade or investment

question

Multinational corporation (MNC)

answer

A firm with extensive international business involvement

question

International strategy

answer

Uses exports and licenses to penetrate the global arena

question

Multi domestic strategy

answer

Has decentralized authority with substantial autonomy at each business

question

Global strategy

answer

A high degree of centralization, with headquarters coordinating the organization to seek out standardization and learning between plants, thus generating economies of scale

question

Transnational strategy

answer

Exploits the economies of scale and learning, as well as pressure for responsiveness, by recognizing that core competence does not reside

question

Quality

answer

The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs

question

Cost of quality (COQ)

answer

Prevention costs, appraisal costs, internal failure and external costs

question

ISO 9000

answer

Only quality standard with international recognition

question

ISO 14000

answer

An environmental management standard that contains five core elements 1) environmental management 2) auditing 3) performance evaluation 4) labeling 5) lifecycle assessment

question

PDCA

answer

Invented by Walter Shewhart and is a circular model plan, do, check, act as his version of continuous improvement

question

Kaizen

answer

Japanese word that describes this ongoing process of unending improvement- the setting and achieving of ever-higher goals

question

Six Sigma

answer

Ina statistical sense, it describes a process, product, or service with an extremely high capability. A program designed to reduce defects to help lower costs, save time, and improve customer satisfaction

question

Employee empowerment

answer

Involving employees in every step of the production process

question

Quality Circle

answer

A group of employees who meet regularly to solve work-related problems

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Benchmarking

answer

Selecting a demonstrated standard of products, services, costs, or practices that represent the very best performance for processes or activities

question

Quality Robustness

answer

Products are products that can be produced uniformly and consistently in adverse manufacturing and environmental conditions

question

Quality loss function

answer

Identifies all costs connected with poor quality and shows how these costs increase as the product moves away from being exactly what the customer wants

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Target-oriented quality

answer

A philosophy of continuous improvement to bring the product exactly on target

question

Cause and effect diagram

answer

Operations manager starts with four categories: material, machinery/equip, manpower, and methods

question

Pareto charts

answer

A method of organizing errors, problems, or defects to help focus on problem-solving efforts

question

Flowcharts

answer

Graphically present a process or system using annotated boxes and interconnected lines

question

Statistical process control

answer

Monitors standards, makes measurements, and takes corrective action as a product or service is being produced

question

Control charts

answer

Graphic presentations of data over time that show upper and lower limits for the process we want to control

question

Inspection

answer

Involves measurement, tasting, touching, weighing, testing of the product

question

Source inspection

answer

Just doing the job properly with the operator ensuring that this is so

question

Poka-Yoke

answer

A foolproof device or technique that ensures production of good units every time

question

Attribute inspection

answer

Classifies gems as being good or defective

question

Variable inspection

answer

Measures such dimensions as weight, speed, height, or strength to see if an item falls within an acceptable range

question

Service quality

answer

They train and empower frontline employees to immediately solve a problem

question

Statistical process control

answer

The application of statistical techniques to the control of processes

question

Control chart

answer

A graphical presentation of process data over time

question

Natural variations

answer

The many sources of variation that occur within a process that is in statistical control

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Assignable variation

answer

Can be traced to a specific reason

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X bar chart

answer

Tells us whether changes have occurred in the central tendency of a process

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R chart

answer

Indicate that a gain or loss in dispersion have occured

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Central limit theorem

answer

Regardless of the distribution of the population, the distribution of X bars will tend to follow a normal curve as the number of samples increase

question

Run test

answer

Is available to help identify the kind of abnormalities in a process

question

Process capability

answer

The ability of a process to meet design specifications, which are set by engineering design or customer requirements

question

Acceptance sampling

answer

A form of testing that involves taking random samples of "lots" or batches, of finished products and measured them against predetermined standards

question

Operating characteristic (OC) curve

answer

Describes how well an acceptance plan discriminates between good and bad lots

question

Producer's risk

answer

Wants to avoid the mistake of having a good lot rejected

question

Consumer's risk

answer

Wants to avoid the mistake of accepting a bad lot because defects found in a lot that has already been accepted are usually the responsibility of the customer

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Acceptable quality level (AQL)

answer

The poorest level of quality that we are willing to accept

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Lot tolerance percent defective (LTPD)

answer

The quality level of a lot that we consider bad

question

Type 1 error

answer

The probability of rejecting a good lot

question

Type 2 error

answer

The probability of accepting a bad lot

question

Average outgoing quality (AOQ)

answer

In percent defective

question

P charts

answer

Controls attributes.

question

C charts

answer

Control the number of defects per unit of output

question

12 covers/hr

answer

A foundry produces circular utility access hatches (manhole covers). If 120 covers are produced in a 10-hour shift, the productivity of the line is 1.2 covers/hr 2 covers/ hr 12 covers/ hr 1200 covers/ hr None of these

question

Statistical quality control

answer

Walter Shewhart is listed among the important people of operations management because of his contributions to Assembly line production Measuring the productivity in the service sector Just-in-time inventory methods Statistical quality control All of these

question

True

answer

All organizations, including service firms such as banks and hospitals, have a production function True False

question

All of these

answer

Reasons to study Operations Management include learning about Why people organize themselves for productive enterprise How goods and services are produced What operation managers do A costly part of the enterprise All of these

question

All of these are current trends

answer

Current trends in operations management include all the following except Just-in-time performance Rapid product development Mass customization Empowered employees All of these are current trends

question

Frederick W. Taylor

answer

The "Father of Scientific Management" is Henry Ford Frederick W. Taylor W. Edwards Deming Frank Gilbreth Just a figure of speech, not a reference to a person

question

Service sector productivity is hard to measure

answer

The service sector has lower productivity improvements than the manufacturing sector because The service sector uses less skilled labor than manufacturing The quality of output is lower in services than manufacturing Services usually are labor-intensive Service sector productivity is hard to measure None of these

question

Almost all services and almost all goods are a mixture of a service and a tangible product

answer

Which of the following statements are true? Almost all services and almost all goods are a mixture of a service and a tangible product A pure good has no tangible product component A pure service has only a tangible product component There is no such thing as a pure good None of these is a true statement

question

Decreasing inputs while holding outputs steady

answer

Productivity can be improved by Increasing inputs while holding outputs steady Increasing inputs and outputs in the same proportion Decreasing inputs while holding outputs steady None of these

question

To all firms, whether manufacturing and service

answer

Operations management is applicable to Mostly to the service sector To services exclusively Mostly to the manufacturing sector To all firms, whether manufacturing and service To the manufacturing exclusively

question

False

answer

In order to have a career in operations management, one must have a degree in statistics or quantitative methods True False

question

Increasing executive pay

answer

Which of the following is not among the ethical and social challenges facing operations managers Honoring community commitments Maintaining a clean environment Efficiently developing and producing safe quality products Increasing executive pay Providing a safe workplace

question

20%

answer

Illiteracy and poor diets have been known to cost countries up to what percent of their productivity? 2% 5% 10% 20% 50%

question

Finance/accounting function

answer

Budgeting, paying bills, and collection of funds are activities associated with the Management function Control function Finance/accounting function Production/operations function Staffing function

question

40.6 boxes/hr

answer

The Dulac Box plant works two 8-hour shifts each day. In the past, 500 cypress packing boxes were produced by the end of each day. The new technology has enabled them to increase productivity by 30%. Productivity is now approximately 32.5 boxes/hr 40.6 boxes/hr 62.5 boxes/hr 81.25 boxes/hr 300 boxes/hr

question

Process and capacity design

answer

The Ten Critical Decisions of Operations Management include Finance/accounting Advertising Process and capacity design Pricing All of these

question

Environmentally sensitive production is giving way to low-cost focus

answer

Which of the following statements about trends in operations management is false? Job specialization is giving way to empowered employees Local or national focus is giving way to global focus Environmentally sensitive production is giving way to low-cost focus Rapid product development is partly the result of shorter product cycles All these statements are true

question

All of these

answer

A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include Lenders Suppliers Owners Employees All of these

question

True

answer

Productivity is more difficult to improve in the service sector True False

question

Learn about a consult part of the enterprise

answer

Reasons to study Operations Management include studying why people organize themselves for free enterprise knowing how goods and services are consumed understanding what human resource managers do learning about a costly part of the enterprise all of these

question

False

answer

The production process at Hard Rock Café is limited to meal preparation and serving customers. True False

question

False

answer

Customer interaction is often high for manufacturing processes, but low for services. True False

question

All of these

answer

The Ten Critical Decisions of Operations Management include Layout strategy Maintenance Process and capacity design Managing quality all of these

question

Mass customization

answer

Which of the following is not one of The Ten Critical Decisions of Operations Management? Layout strategy Maintenance Process and capacity design Mass customization Supply chain management

question

All of these are current trends

answer

Which of the following is not a current trend in operations management? just-in-time performance global focus supply chain partnering mass customization all of these are current trends.

question

the fact that precise units of measure are often unavailable

answer

Productivity measurement is complicated by the competition's output the fact that precise units of measure are often unavailable stable quality the workforce size the type of equipment used

question

True

answer

An example of a "hidden" production function is money transfers at banks. True False

question

Assembly line operations

answer

Henry Ford is noted for his contributions to standardization of parts statistical quality control assembly line operations scientific management time and motion studies

question

False

answer

In order to have a career in operations management, one must have a degree in statistics or quantitative methods True False

question

200 valves/hr

answer

Gibson Valves produces cast bronze valves on an assembly line. If 1600 valves are produced in an 8-hour shift, the productivity of the line is 2 valves/hr 40 valves/hr 200 valves/hr 1600 valves/hr

question

14.4 covers/hr

answer

A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it would then be 14.4 covers/hr 24 covers/hr 240 valves/hr 1200 covers/hr none of these

question

Service operations are typically capital intensive

answer

Which of the following is not true when explaining why productivity tends to be lower in the service sector than in the manufacturing sector? Services are typically labor-intensive Services are often difficult to evaluate for quality. Services are often an intellectual task performed by professionals Services are difficult to automate Service operations are typically capital intensive

question

All of these

answer

The field of operations management is shaped by advances in which of the following fields? chemistry and physics industrial engineering and management science biology and anatomy information technology all of these

question

Frederick W. Taylor

answer

The "Father of Scientific Management" is Henry Ford Frederick W. Taylor W. Edwards Deming Frank Gilbreth just a figure of speech, not a reference to a person

question

all of these

answer

A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include lenders suppliers owners employees all of these

question

increasing executive pay

answer

Which of the following is not the ethical and social challenges facing operations managers? honoring community commitments maintaining a clean environment efficiently developing and producing safe quality products increasing executive pay providing a safe workplace

question

all of these

answer

Reasons to study Operations Management include learning about why people organize themselves for productive enterprise how goods and services are produced what operations managers do a costly part of the enterprise all of these

question

nineteenth century; interchangeable parts

answer

Eli Whitney, in the _________, provided the foundations for _________ in operations management. 1920s; statistical sampling United Kingdom; mass production U.S. Army; logistics nineteenth century; interchangeable parts none of these

question

labor, capital, and management

answer

Three commonly used productivity variables are quality, external elements, and precise units of measure labor, capital, and management technology, raw materials, and labor education, diet, and social overhead quality, efficiency, and low cost

question

learning about a costly part of the enterprise

answer

Reasons to study Operations Management include studying why people organize themselves for free enterprise knowing how goods and services are consumed understanding what human resource managers do learning about a costly part of the enterprise all of these

question

True

answer

An example of a "hidden" production function is money transfers at banks True False

question

management; over one-half

answer

The largest contributor to productivity increases is ________, estimated to be responsible for _________ of the annual increase management; over one-half Mr. Deming; one-half labor; two-thrids capital; 90% technology; over one-half

question

management

answer

The factor responsible for the largest portion of productivity increase in the United States is labor management capital all three combined; it is impossible to determine the contribution of individual factors none of these; most productivity increases come form investment spending

question

advertising and promotion

answer

Which of the following would not be an operations function in a fast-food restaurant? advertising and promotion designing the layout of the facility maintaining equipment making hamburgers and fries purchasing ingredients

question

False

answer

Manufacturing now constitutes the largest economic sector in postindustrial societies True False

question

79%

answer

The service industry makes up approximately what percentage of all jobs in the United States? 12% 40% 66% 79% 90%

question

management

answer

Which of the following inputs has the greatest potential to increase productivity? labor globalization management capital none of these

question

220 valves/hr

answer

Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is increased by 10%, it would then be 180 valves/hr 200 valves/hr 220 valves/hr 880 valves/hr 1760 valves/hr

question

False

answer

Measuring the impact of a capital acquisition on productivity is an example of multi-factor productivity True False

question

process and capacity design

answer

The Ten Critical Decisions of Operations Management include Layout strategy Maintenance Process and capacity design managing quality all of these

question

It has increased by 20%

answer

The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to production? It has increased by 50 sets/shift It has increased 37.5 sets/hr It has increased 20% It has decreased by 8.3% It has decreased by 9.1%

question

False

answer

"How much inventory of this item should we have?" is within the critical decision area of managing quality. True False

question

elementary education

answer

Which of the following services is least likely to be unique, i.e., customized to a particular individual's needs? dental care hairdresssing legal services elementary education computer consulting

question

W. Edwards Deming

answer

Who among the following is associated with contributions to quality control in operations management? Charles Babbage Henry Ford Frank Gilbreth W. Edwards Deming Henri Fayol

question

True

answer

One reason to study operations management is to learn how people organize themselves for productive enterprise True False

question

False

answer

A knowledge society is one that has migrated from work based on knowledge to one based on manual work True False

question

Services now constitute the largest economic sector in postindustrial societies

answer

Which of the following statements concerning growth of services is true? Services now constitute the largest economic sector in postindustrial societies the number of people employed in manufacturing has more or less held steady since 1950 Each manufacturing employee now produces about 20 times more than in 1950 all of these are true none of these is true

question

False

answer

Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced True False

question

plan, organize, staff, lead, and control

answer

The five elements in the management process are plan, direct, update, lead, and supervise accounting/finance, marketing, operations, and management organize, plan, control, staff, and manage plan, organize, staff, lead, and control plan, lead, organize, manage, and control

question

multifactor productivity

answer

The total of all outputs produced by the transformation process divided by the total of the input is utilization greater in manufacturing than in services defined only for manufacturing firms multifactor productivity none of these

question

True

answer

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

question

aspects of quality difficult to measure

answer

Which of the following is not a typical attribute of goods? output can be inventoried often easy to automate aspects of quality difficult to measure output can be resold production and consumption are seperate

question

True

answer

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 True False

question

1920s; statistical sampling

answer

Walter Shewhart, in the ________, provided the foundations for __________in operations management 1920s; statistical sampling United Kingdom; mass production U.S. Army; logistics nineteenth century; interchangeable parts none of these

question

all of these are current trends

answer

Which of the following is not a current trend in operations management? just-in-time performance global focus supply chain partnering mass customization all of these are current trends

question

preparing employee schedules

answer

An operations task performed at Hard Rock Cafe is borrowing funds to build a new restaurant advertising changes in the restaurant menu calculating restaurant profit and loss preparing employee schedules all of these

question

Goods tend to have higher customer interaction than services

answer

Which is not ture regarding differences between goods and services? Services are generally produced and consumed simultaneously; tangible goods are not Services tend to be more knowledge-based than products. Services tend to have a more inconsistent product definition than goods Goods tend to have higher customer interaction than services none of these is true

question

200 valves/hr

answer

Gibson Valves produces cast bronze valves on an assembly line. If 1600 valvues are produced in an 8-hour shift, the productivity of the line is 2 valves/hr 40 valves/hr 80 valves/hr 200 valves/hr 1600 valves/hr

question

generating the demand for the organization's products or services

answer

The marketing function's main concern is with producting goods or providing services procuring materials, supplies, and equipment building and maintaining a positive image generating the demand for the organization's products or services securing monetary resources

question

financial analysis

answer

All of the following decisions fall within the scope of operations management except for financial analysis design of goods and processes location of facilities managing quality all of these fall within the scope of operations management

question

Eli Whitney

answer

The person most responsible for popularizing interchangeable parts in manufacturing was Frederick Winslow Taylor Henry Ford Eli Whitney Whitney Houston Lillian Gilbreath

question

the fact that precise units of measure are often unavailable

answer

Productivity measurement is complicated by the competition's output the fact that precise units of measure are often unavailable stable quality the workforce size the type of equipment used

question

True

answer

Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs True False

question

False

answer

Customer interaction is often high for manufacturing processes, but low for services. True False

question

Mass customization

answer

Which of the following is not one of The Ten Critical Decisions of Operations Management? Layout strategy Maintenance Process and capacity design Mass customization Supply chain management

question

True

answer

Some of the operations-related activities of Hard Rock Cafe include designing meals and analyzing them for ingredient cost and labor requirements True False

question

all of these

answer

Among the ethical and social challenges facing operations managers are honoring financial commitments maintaining a clean environment developing low-cost products providing an efficient workplace all of these

question

Pricing

answer

Which of the following is not an element of the management process? Controlling leading planning pricing staffing

question

True

answer

Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives True False

question

True

answer

Students wanting to pursue a career in operations management will find multidisciplinary knowledge beneficial True False

question

False

answer

Shewhart's contributions to operations management came during the Scientific Management Era True False

question

The person most responsible for initiating use of interchangeable parts in manufacturing was Eli Whiney

answer

Which of the following statements is true? The person most responsible for initiating use of interchangeable parts in manufacturing was Eli Whitney The originas of management by exception are generally credited to Frederick W. Taylor The person most responsible for initiating use of interchangeable parts in manufacturing was Walter Shewhart The origins of the scientific management movement are generally credited to Henry Ford The person most responsible for initiating use of interchangeable parts in manufacturing was Henry Ford

question

all of these

answer

the field of operations management is shaped by advances in which of the following fields? chemistry and physics industrial engineering and management science biology and anatomy information technology all of these

question

labor, capital, and management

answer

Three commonly used productivity variables are quality, external elements, and precise units of measure labor, capital, and management technology, raw materials, and labor education, diet, and social overhead quality, efficiency, and low cost

question

False

answer

Henry Ford is known as the Father of Scientific Management True False

question

all of these are new trends in operations management

answer

One new trend in operations management is global focus mass customization empowered employees rapid product development all of these are new trends in operations management

question

all of these

answer

Productivity tends to be more difficult to improve in the service sector because the work is often difficult to automate typically labor-intensive frequently processed individually often an intellectual task performed by professionals all of these

question

nineteenth century; interchangeable parts

answer

Eli Whitney, in the ________, provided the foundations for ___________ in operations management 1920s; statistical sampling United Kingdom; mass production U.S. Army; logistics nineteenth century; interchangeable parts none of these

question

25%

answer

Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production increased to 2000 valves per shift, labor productivity will increase by 10% 20% 25% 40% 50%

question

marketing, operations, and finance/accounting

answer

Which of the following are the primary functions of all organizations? operations, marketing, and human resources marketing, human resources, and finance/accounting sales, quality control, and operations marketing, operations, and finance/accounting research and development, finance/accounting, and purchasing

question

all of these

answer

At Hard Rock Cafe, tasks that reflect operations or operations management include designing meals testing meals(recipes) analyzing meals for the cost of ingredients preparing employee schedules all of these

question

all of these

answer

Among the ethical and social challenges facing operations managers are honoring community commitments maintaining a clean environment efficiently developing and producing safe quality products providing a safe workplace all of these

question

assembly line operation

answer

Henry Ford is noted for his contributions to standardization of parts statistical quality control assembly line operations scientific management time and motion studies

question

cost per unit

answer

Typical differences between goods and services do not include cost per unit ability to inventory items timing of productions and consumption customer interaction knowledge content

question

easy to store

answer

Which of the following is not a typical service attribute? intangible product easy to store customer interaction is high simultaneous production and consumption difficult to resell

question

False

answer

The production process at hard Rock Cafe is limited to meal preparation and serving customers True False

question

the identification of customers' wants and needs

answer

An operations manager is not likely to be involved in the design of goods and services to satisy customers' wants and needs the quality of goods and services to satisfy customers' wants and needs the identification of customers' wants and needs work scheduling to meet the due dates promised to customers maintenance schedules

question

14.4 covers/hr

answer

A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it would then be 14.4 covers/hr 24 covers/hr 240 valves/hr 1200 covers/hr none of these

question

Service operations are typically capital intensive

answer

Which of the following is not true when explaining why productivity tends to be lower in the service sector than in the manufacturing sector? Services are typically labor-intensive Services are often difficult to evaluate for quality. Services are often an intellectual task performed by professionals. Services are difficult o automate Service operations are typically capital intensive

question

25 boxes/hr

answer

The Dulac Boz plant produces 500 cypress packing boxes in two 10-hour shifts. What is the productivity of the plant? 25 boxes/hr 50 boxes/hr 5000 boxes/hr none of these not enough data to determine productivity

question

True

answer

One reason to globalize is to learn to improve operations True False

question

a computer manufacturing company

answer

Which of these organizations is likely to have the most complex inventory decisions? a marketing research firm a stock brokerage firm a management consulting firm a computer manufacturing company a high school

question

all are elements of experience differentiation

answer

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

question

preconditions to establishing and implementing a strategy

answer

Understanding competitor's strengths and weaknesses, understanding current and prospective technological issues, and understanding product life cycle are examples of what is important to the transnational strategy but not the multidomestic strategy SWOT analysis elements in the formulation of an organization's mission preconditions to establishing and implementing a strategy the critical decisions area of supply chain analysis

question

maturity

answer

The stage in the product life cycle at which it is a poor time to change quality is introduction growth maturity decline incubation

question

layout design

answer

Which of the following OM strategic decisions pertains to sensible location of processes and materials in relation to each other? layout design goods and service design supply chain management inventory scheduling

question

reduce responsiveness

answer

Which of the following does not represent reasons for globalizing operations? reduce costs improve supply chain reduce responsiveness attract and retain global talent all of these are valid reasons for globalizing operations

question

competing on differentiation

answer

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is mass production time-based competition competing on productivity competing on flexibility competing on differentiation

question

True

answer

The World Trade Organization has helped to significantly reduce tariffs around the world True False

question

price

answer

Which of the following is not an operations strategic decision? maintenance price layout design quality inventory

question

Functional strategies are shaped by corporate strategy

answer

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

question

False

answer

Manufacturing organizations have ten strategic OM decisions, while service organizations have only eight. True False

question

Well defined missions make strategy development much easier

answer

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

question

False

answer

Critical success factors and core competencies are synonyms True False

question

all of these are true

answer

Which of the following statements regarding the Dreamliner 787 is true? Boeing has found partners in over a dozen countries The new aircraft incorporates a wide range of aerospace technologies The new aircraft uses engines from not one, but two manufacturers Boeing will add only 20 to 30 percent of the aircraft's value all of these are true

question

a medical clinic

answer

Which of the following will more likely locate near their customers? an automobile manufacturer an aluminum manufacturer an insurance company headquarters a medical clinic all of these will tend to locate near their customers

question

stockholder approval ratings

answer

Which of the following did the authors not suggest as a reason for globalizing operations? reduce costs improve the supply chain stockholder approval ratings attract new markets all of these were suggested

question

True

answer

NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United States True False

question

False

answer

An organization's strategy is its purpose or rationale for an organization's existence True False

question

multidomestic strategy

answer

Which of the international operations strategies uses the existing domestic model globally? international strategy global strategy transnational strategy multidomestic strategy none of these

question

a user-based definition of quality

answer

"Quality is defined by the customer" is an unrealistic definition of quality a user-based definition of quality a manufacturing-based definition of quality a product-based definition of quality the definition proposed by the American Society for Quality

question

False

answer

The Japanese use the term "poka-yoke" to refer to continuous improvement True False

question

False

answer

Deming's writings on quality tend to focus on the customer and on fitness for use, unlike Juran's work that is oriented toward meeting specifications True False

question

False

answer

Conforming to standards is the focus of the product-based definition of quality True False

question

False

answer

Source inspection is inferior to inspection before costly operations True False

question

Taguchi concepts

answer

A manager tells her production employees, "it's no longer good enough that your work fall anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of internal benchmarking Six Sigma ISO 9000 Taguchi concepts Process control charts

question

stockholders, employees, and customers

answer

Stakeholders who are affected by the production and marketing of poor quality products include stockholders, employees, and customers suppliers and creditor, but not distributors only stockholders, creditors, and owners suppliers and distributor, but not customers only stockholders and organizational executives and managers

question

determine whether any of the organization's stakeholders are violated by poor quality products

answer

Regarding the quality of design, production, and distriution of products, an ethical requirement for managements is to determine whether any of the organization's stakeholders are violated by poor quality products gain ISO 14000 certification for the organization obtain a product safety certificate from the Consumer Product Safety Commission have the organization's legal staff write disclaimers in the product instruction booklets compare the cost of product liability to the external failure cost

question

Values above the upper control limits always imply that the product's quality is exceeding expectations

answer

Which of the following is false regarding control charts? Values above the upper control limits always imply that the product's quality is exceeding expectations Control charts are built so that new data can be quickly compared to past performance data Control charts graphically present data Control charts plot data over time none of these is false

question

Maintenance costs

answer

All of the following costs are likely to decrease as a result of better quality except customer dissatisfaction costs inspection costs scrap costs warranty and service costs maintenance costs

question

all of these

answer

To become ISO 9000 certified, organizations must document quality procedures have an onsite assessment have an ongoing series of audits of their products or service all of these none of these

question

centralized decision-making authority

answer

A successful TQM program incorporates all of the following except continuous improvement employee involvement benchmarking centralized decision-making authority none of these; a successful TQM program incorporates all of these

question

The hospital uses all of these techniques

answer

Arnold Palmer Hospital uses which of the following quality management techniques? Pareto charts flow charts benchmarking Just-in-time The hospital uses all of these techniques

question

Ishikawa diagram

answer

A quality circle holds a brainstorming session and attempts to identify the factor responsible for flaws in a product. Which tool do you suggest they use to organize their findings? Ishikawa diagram Pareto chart process chart control charts activity chart

question

The hospital's high quality is measured by low readmission rates, not patient satisfaction

answer

Which of the following statements regarding Arnold Palmer Hospital is false? The hospital uses a wide range of quality management techniques The culture of quality at the hospital includes employees at all levels The hospital scores very highly in national studies of patient satisfaction The hospital's high quality is measured by low readmission rates, not patient satisfaction The design of patient rooms, even wall colors, reflects the hospital's culture of quality

question

False

answer

Of the several determinants of service quality, access is the one that relates to keeping customers informed in language they can understand True False

question

False

answer

Managers at Arnold Palmer Hospital take quality so seriously that the hospital typically is a national leader in several quality areas-so that continuous improvement is no longer necessary True False

question

material, machinery/equipment, manpower, and methods

answer

The "four Ms" of cause-and-effect diagrams are material, machinery/equipment, manpower, and methods material, methods, men, and mental attitude named after four quality experts material, management, manpower, and motivation none of these

question

True

answer

High-quality products and services are the most profitable True False

question

3.4

answer

If 1 million passengers pass through the St. Louis Airport with checked baggage each month, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage? 3.4 6.0 34 2700 6 times the monthly standard deviation of passengers

question

all of these are false

answer

A lot that is accepted by acceptance sampling has more defects than existing before the sampling has had all its defects removed by 100% inspection will have the same defect percentage as the LTPD has no defects present all of these are false

question

an operating characteristics curve

answer

An Acceptance sampling plan's ability to discriminate between low quality lots and high quality lots is described by a Gantt chart the Central Limit Theorem a process control chart an operating characteristics curve a range chart

question

is to be identified and eliminated

answer

Assignable variation is a sign that a process is under control is to be identified and eliminated is the same as random variation is variation that cannot be traced to a specific cause leads to a steep OC curve

question

a good lot is rejected

answer

A Type 1 error occurs when a good lot is rejected a bad lot is accepted the number of defectives is very large the population is worse than the AQL none of these

question

is used to determine whether to accept or reject a lot of material based on the evaluation of a sample

answer

Acceptance sampling is the application of statistical techniques to the control of processes was developed by Walter Shewhart of Bell Laboratories is used to determine whether to accept or reject a lot of material based on the evaluation of a sample seperates the natural and assignable causes of variation all of these

question

lead to occasional false findings that processes are out of control

answer

Natural variations are variations that are to be identified and eliminated are variations that can be traced to a specific cause are the same as assignable variations lead to occasional false findings that processes are out of control play no role in statistical process control

question

to examine points in a control chart to check for nonrandom variability

answer

A run test is used to examine variability in Acceptance sampling plans in Acceptance sampling to establish control to examine points in a control chart to check for natural variability to examine points in a control chart to check for nonrandom variability none of these

question

s must be less than one-third of the difference between the specification and the process mean

answer

If the Cpk index exceeds 1 the AQL must be smaller than the LTPD s must be less than one-third of the difference between the specification and the process mean the x-bar chart must indicate that the process is in control the process is capable of Six Sigma quality the process is characterized as "not capable"

question

c-chart

answer

The local newspaper receives several complaints per day about typographical errors. over a seven-day period, the publisher has received calls from readers reporting the following number of errors: 4, 3, 2, 6, 7, 3, and 9. Based on these data alone, what type of control chart(s) should the publisher use? p-chart c-chart R-chart

question

The larger the Cpk, the more units meet specifications

answer

Which of the following is true regarding the Process capability index Cpk? A cpk index calue of 1 is ideal, meaning all units meet specifications The larger the Cpk, the more units meet specifications The Cpk index can only be used when the process centerline is also the specification centerline Positive values of the Cpk index are good; negative values are bad none of these are true

question

change in the number of defects per unit

answer

The c-chart signals whether there has been a gain or loss in uniformity change in the number of defects per unit change in the central tendency of the process output change in the percent defective in a sample change in the AOQ

question

False

answer

The x-bar chart. like the c-chart, is based on the exponential distribution True False

question

out of control and the cause should be established

answer

If a sample of items is taken and the mean of the sample is outside the control limits the process is out of control and the cause should be established in control, but not capable of producing within the established control limits within the established control limits with only natural causes of variation monitored closely to see if the next sample mean will also fall outside of the control limits producing high quality products

question

AOQ is very low(very good) for extremely poor quality lots

answer

Which of the following is true regarding the average outgoing quality level? An AOQ value of 1 is ideal, because all defects have been removed. AOQ is always greater than AQL but less than LTPD AOQ rises (worsens) following inspection of failed lots AOQ is very low(very good) for extremely poor quality lots none of these is true

question

display upper and lower limits for process variables or attributes, and signal when a process is no longer in control

answer

Statistical process control charts display the measurements on every item being produced display upper and lower limits for process variables or attributes, and signal when a process is not longer in control indicate to the process operator the average outgoing quality of each lot indicate to the operator the true quality of material leaving the process none of these

question

process sampling by attributes

answer

the normal application of a p-chart is in process sampling by variables Acceptance sampling by variables process sampling by attributes Acceptance sampling by attributes none of these

question

natural variation

answer

Up to three standard deviations above or below the centerline is the amount of variation that statistical process control allows for Type 1 errors about 95.5% variation natural variation all types of variation assignable variation

question

how well an Acceptance sampling plan discriminates between good and bad lots

answer

An operating characteristic (OC) curve describes how many defects per unit are permitted before rejection occurs the sample size necessary to distinguish between good and bad lots the most appropriate sampling plan for a given incoming product quality level how well an Acceptance sampling plan discriminates between good and bad lots none of these

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