Operations management is responsible for orchestrating all the resources needed

File: ch01, Chapter 1: Basics of Operations Management

Multiple Choice

1. Every business is managed through what three major functions? a) accounting, finance, and marketing b) engineering, finance, and operations management c) accounting, purchasing, and human resources d) accounting, engineering, and marketing e) finance, marketing, and operations management

Ans: e Section Ref: What is Operations Management? Level: easy

1. Which business function is responsible for managing cash flow, current assets, and capital investments? a) accounting b) finance c) marketing d) operations management e) purchasing

Ans: b Section Ref: What is Operations Management? Level: easy

1. Which business function is responsible for managing cash flow, current assets, and capital investments? a) accounting b) finance c) marketing d) operations management e) purchasing

Ans: b Section Ref: What is Operations Management? Level: easy

1. Which business function is responsible for sales, generating customer demand, and understanding customer wants and needs?

a) finance b) human resources c) marketing d) operations management e) purchasing

Ans: c Section Ref: What is Operations Management? Level: easy

1. Which business function is responsible for planning, coordinating, and controlling the resources needed to produce a company’s products and services? a) engineering b) finance c) human resources d) marketing e) operations management

Ans: e Section Ref: What is Operations Management? Level: easy

1. Which of the following is not true for business process reengineering? a) It can increase efficiency. b) It cannot be used to improve quality. c) It can reduce costs. d) It involves asking why things are done in a certain way. e) It involves redesigning processes.

Ans: b Section Ref: Historical Development Level: easy

1. At the GAP, which function plans and coordinates all the resources needed to design, produce, and deliver the merchandise to its various retail locations? a) engineering b) human resources c) marketing d) operations management e) purchasing

Ans: d Section Ref: What is Operations Management? Level: easy

Section Ref: What is Operations Management? Level: moderate

1. Operations management is responsible for orchestrating all the resources needed to produce the final product. This includes all of the following except ______________________________________. a) obtaining customer feedback b) arranging schedules c) managing inventory d) controlling quality e) designing work methods

Ans: a Section Ref: What is Operations Management? Level: hard

1. Which second-tier computer company utilized a drastic change in its operations function to become an industry leader in the late 1990s? a) Apple b) Compaq c) Dell d) IBM e) Kozmo

Ans: c Section Ref: What is Operations Management? Level: easy

1. A company with a low customer contact that is capital intensive is called: a) a farm b) manufacturing c) quasi-manufacturing d) service e) Industrial era operations management

Ans: c Section Ref: Differences Between Manufacturing and Service Organizations Level: easy

1. Which initially successful web-based home delivery company had to shut down in 2001 due to inadequate management of its operations? a) Contact b) Time Saver

c) Kozmo d) Kramer e) Neptune

Ans: c Section Ref: What is Operations Management? Level: moderate

1. In order to be successful with Web-based on-line shopping, companies must do all except which of the following? a) manage distribution centers and warehouses b) operate fleets of trucks c) maintain adequate inventories of products d) promise same-day delivery e) schedule deliveries

Ans: d Section Ref: What is Operations Management? Level: hard

1. What outsourcing functions does UPS provide for clients? a) accounting and inventories b) inventories and deliveries c) accounting and deliveries d) accounting and maintenance e) deliveries and maintenance

Ans: b Section Ref: What is Operations Management? Level: hard

1. An example of an operation that does not add value is ____________________________. a) removing iron ore from the ground and shipping it to a steel mill b) filling the underground gasoline tanks at a service station c) making a wedding cake d) moving components to a warehouse for storage until the factory needs them e) moving luggage from a cab to the airport ticket counter

Ans: d Section Ref: What is Operations Management? Level: hard

1. Which famous economist once suggested that, “The production problem has been solved.”?

2. What are companies that have low customer contact and are capital intensive, yet provide a service, called? a) pseudo-manufacturing organizations b) quasi-manufacturing organizations c) hierarchical manufacturing organizations d) service factories e) servifacturing organizations

Ans: b Section Ref: Differences Between Manufacturing and Service Organizations Level: moderate

1. What percentage of total non-farm jobs in the U. economy come from service-producing industries? a) 20% b) 50% c) 60% d) 80% e) 95%

Ans: d Section Ref: Differences Between Manufacturing and Service Organizations Level: moderate

1. What are long-term decisions that set the direction for the entire organization called? a) tactical b) operational c) directional d) distant e) strategic

Ans: e Section Ref: Operations Management Decisions Level: easy

1. Which of the following is not true with respect to strategic and tactical decisions? a) tactical decisions focus on more specific day-to-day decisions b) tactical decisions determine the direction for strategic decisions c) tactical decisions provide feedback to strategic decisions d) tactical decisions are made more frequently and routinely e) tactical decisions must be aligned with strategic decisions

Ans: b

Section Ref: Operations Management Decisions Level: moderate

1. Which of the following is not primarily performed by the operation management function? a) job design and work measurement b) advertising strategy c) location analysis d) quality management e) facility layout

Ans: b Section Ref: Operations Management Decisions Level: moderate

1. When did operations management emerge as a formal field of study? a) during the late 1950s and early 1960s b) during the late 1970s and early 1980s c) during World War II d) during the nineteenth century e) during the early 1900s

Ans: a Section Ref: Historical Development Level: moderate

1. Managing the transformation of inputs into goods and services is: a) a post industrial era process. b) a direct contributor to the curved earth syndrome. c) as old as time. d) a twenty-first century developed process. e) a design of Frederick Taylor.

Ans: c Section Ref: Historical Development Level: hard

1. Who created “scientific management?” a) James Watt b) Adam Smith c) Eli Whitney d) Frederick W. Taylor e) Henry Ford

Ans: d Section Ref: Historical Development Level: moderate

1. What was Frederick W. Taylor’s background? a) physics b) human resources management c) operations research d) psychology e) engineering

Ans: e Section Ref: Historical Development Level: hard

1. A key feature of scientific management is that workers are motivated only by __________________. a) love b) power c) challenging work d) money e) fame

Ans: d Section Ref: Historical Development Level: moderate

1. A key feature of scientific management is that workers are limited only by __________________. a) machinery b) co-workers c) their job description d) their tools e) their physical ability

Ans: e

Section Ref: Historical Development Level: moderate

1. The creator of scientific management believed that ______________________________________. a) worker productivity is governed by scientific laws b) the worker should have a lot of control over his or her job c) efficiency is overrated d) worker pay should primarily be based on seniority e) mathematical models are the basis for management of production

Ans: a Section Ref: Historical Development Level: moderate

1. Which of the following operations management concepts did not evolve from scientific management? a) moving assembly lines b) interchangeable parts c) stopwatch time studies d) piece rate incentives e) setting time standards for task performance

Ans: b Section Ref: Historical Development Level: moderate

1. Who popularized the moving assembly line? a) James Watt b) Adam Smith c) Eli Whitney d) Frederick W. Taylor e) Henry Ford

Ans: e Section Ref: Historical Development Level: moderate

1. The first military use of management science was solving complex problems of logistics control, weapons system design, and deployment of missiles during _____________________. a) World War I b) World War II c) The Korean War d) The Vietnam War e) Operation Desert Storm

Ans: b Section Ref: Historical Development Level: hard

1. What term describes the approach of giving workers a larger portion of the total task to do?

a) job enlargement b) job rotation c) job involvement d) job enrichment e) job backward integration

Ans: a Section Ref: Historical Development Level: moderate

1. When were the Hawthorne Studies conducted? a) 1770s b) 1830s c) 1930s d) 1960s e) 1980s

Ans: c Section Ref: Historical Development Level: moderate

1. In what company were the Hawthorne Studies conducted? a) Westinghouse b) General Electric c) Hawthorne Incorporated d) General Motors e) Western Electric

Ans: e Section Ref: Historical Development Level: hard

1. Management science is focused on: a) profit margin b) qualitative systems analysis c) management promotion metrics d) quantitative techniques for solving personnel issues e) quantitative techniques for solving operations problems

Ans: e Section Ref: Historical Development Level: hard

1. When was the first mathematical model for inventory management developed? a) 1770 b) 1865 c) 1900 d) 1913 e) 1930

Ans: d Section Ref: Historical Development Level: hard

1. Where was the just-in-time philosophy developed? a) Germany b) United States c) Canada d) Japan e) Italy

Ans: d Section Ref: Historical Development Level: moderate

Level: hard

1. Supply chain management involves managing: a) the flow of internal information only. b) the flow of materials and information from suppliers and buyers to the final customer. c) the flow of raw materials to inventory only. d) managing the stock room supply only.

Ans: b Section Ref: Historical Development Level: hard

1. Many companies require their suppliers to meet what standards as a condition for obtaining contracts? a) RFO 6000 b) PUR 8000 c) ISO 9000 d) MACH 5000 e) SUP 2000

Ans: c Section Ref: Historical Development Level: hard

1. One of the two most important features of time-based competition involves ________________________. a) advertising on the Internet b) stopwatch time studies c) setting time standards for task performance d) instantaneous access to inventory information e) developing new products and services faster than the competition

Ans: e Section Ref: Historical Development Level: moderate

1. ISO 14000 standards provide guidelines for what? a) business ethics b) environmentally responsible actions c) supplier certification d) quality control e) web site development

Ans: b Section Ref: Historical Development Level: moderate

1. NAFTA and the EU are _________________________. a) certification groups b) regional trade agreements c) quality control methods d) logistics providers e) U. government agencies

Ans: b Section Ref: Historical Development Level: moderate

1. What type of commerce makes up the highest percentage of electronic transactions? a) B2C b) C2C c) B4B d) B2B e) B4C

Ans: d Section Ref: Historical Development Level: moderate

1. The Internet developed from a government network called ARPANET, which was created in 1969 by _____. a) Japanese scientists b) the EPA c) the U. Defense Department d) NSF e) ISO

Ans: c Section Ref: Historical Development Level: hard

Level: moderate

1. Entry-level positions for operations management graduates include all of the following except _________. a) quality specialist b) inventory analyst c) plant manager d) production analyst e) production supervisor

Ans: c Section Ref: Today's OM Environment Level: moderate

1. Operations management personnel perform a variety of functions, including all of the following except ___________________. a) analyzing production problems b) analyzing potential mergers c) developing forecasts d) developing employee schedules e) monitoring inventory

Ans: b Section Ref: Today's OM Environment Level: moderate

1. 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

Ans: c Section Ref: Historical Development Level: hard

1. Today’s operations management is characterized by: a) its use of the internet. b) its reliance on the intranet. c) its increased use of cross-functional decision making. d) its use of cross-functional job sharing. e) its use of interchangeable parts.

Ans: c Section Ref: Today’s OM Environment Level: hard

1. Which of the following historical figures would probably have the most different management style from the others? a) Elton Mayo b) Henry Ford c) Eli Whitney d) Frederick W. Taylor e) Adam Smith

Ans: a Section Ref: Historical Development Level: hard

1. Operations management interacts with which of the following: a) Marketing b) Information systems c) Finance d) Engineering e) all the above

Ans: e Section Ref: OM Across the Organization Level: moderate

True/False

1. Operations management is the business function that plans, coordinates, and controls the resources needed to produce a company’s products and services.

Ans: True Section Ref: What is Operations Management? Level: easy

1. Marketing is the central core function of every company.

Ans: False Section Ref: What is Operations Management?

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