CHAPTER 1 Flashcards
Science and art of ensuring good and services are created and delivered successfully to customers.
Operations Management
T OR F: OM is important because it makes companies successful.
True
Why is OM important?
It makes companies successful.
Predict future demand for raw materials, finished goods, and services.
Forecasting
Manage flow of materials, info, people, and money from suppliers to customers.
Supply Chain Management
Determine best configuration of machines, storage offices, and departments.
Facility Layout & Design
Using technology to improve productivity and respond faster to customers.
Technology selection
Ensuring goods, services, and processes will meet customer expectations and requirements.
Product inspected and conform to the highest quality standards. If not, it was removed from inventory to determine where the process broke down and to initiate corrective action.
Quality Management
Coordinate the acquisition of materials. supplies, and services.
Purchasing
Ensure that the right amount of resources (labor, equipment, materials, and information) is available when needed.
Resource & Capacity Management
Select the right equipment, information, and work methods to produce high-quality goods and services efficiently.
When a new product was to be introduced, the best way to produce it had to be determined. Charting the detailed steps needed to make the product.
Process Design
Decide the best way to assign people to work tasks and job responsibilities.
Job Design
Determine the best types of interactions between service providers and customers, and how to recover from service upsets.
Service encounter design
Determine when resources such as employees and equipment should be assigned to work.
Created to ensure that enough product was available for both retail and wholesale customers.
Scheduling
Decide the best way to manage the risks associated with products and operations to preserve resources for future generations.
Sustainability
This was tightly controlled to keep cost down and to avoid production that wasn’t needed.
Inventory Management
A value chain begins with _____ who provide inputs to a goods-producing or service-providing process or network of processes.
Suppliers
Physical product that you can see, touch, or possibly consume.
Good
Does not quickly wear out and typically lasts at least three years.
Durable good
No longer useful once it’s used, or lasts for less than three years.
Nondurable good
Any primary or complementary activity that does not directly produce a physical product.
Service
Which of the following statements is NOT true of goods and services?
a. Service encounters can be between a customer and a service provider.
b. Services cannot be stored as inventory for future sale.
c. A shoe is a durable good that provides a service.
d. Normally, patents do not protect services.
C
The three issues that are at the core of operations management include all of the following EXCEPT _____.
a. cost
b. quality
c. tangibility
d. efficiency
C
Which of the following key activities is NOT performed by operations managers?
a. Purchasing
b. Cost accounting
c. Forecasting
d. Service encounter design
B
An operations manager is expected to perform several key activities EXCEPT:
a. coordinating the acquisition of materials, supplies, and services
b. determining when resources should be assigned to work.
c. managing cash flow and strategic investments.
d. making use of technology to improve productivity.
C
Computer software is an example of a _____.
a. tangible product
b. nondurable good
c. service
d. value creation process
B
Identify the statement about goods and services that is NOT true?<br></br><br></br>a. Services that do not involve significant interaction with customers can be managed much the same as goods in a factory.<br></br><br></br>b. A service is any primary or complementary activity that does not directly produce a physical product.<br></br><br></br>c. Some very significant differences exist between goods and services that create different demands on the operations function.<br></br><br></br>d. Designing and managing operations in a goods-producing firm is quite similar to that in a service-providing organization.
Identify a FALSE statement about goods and services.<br></br><br></br>a. Service encounters can be between a customer and a service provider.<br></br><br></br>b. The demand for services is time-dependent, especially over the short term.<br></br><br></br>c. There is no way to recapture the lost revenue from a hotel room.<br></br><br></br>d. A moment of truth is a feature a customer recognizes, pays for, or uses.
Which of the following jobs requires the most service management skills and knowledge?<br></br><br></br>a. Airplane mechanic<br></br>b. Usher at sports stadium<br></br>c. Restaurant cook<br></br>d. Airline Flight attendant
Which of the following statements about goods and services is FALSE?<br></br><br></br>a. Service encounters can be between a customer and a service provider.<br></br><br></br>b. Demand for physical goods is more difficult to predict than demand for services.<br></br><br></br>c. Services cannot be stored as physical inventory for future sale.<br></br><br></br>d. Normally, patents do not protect services.
Which of the following statements is NOT true regarding the differences between goods and services?<br></br><br></br>a. Demand for services is easier to forecast.<br></br>b. Customers participate in many services.<br></br>c. Services cannot be stored as physical inventory.<br></br>d. Patents do not protect service processes.
Which of the following statements about goods and services is FALSE?<br></br><br></br>a. Service encounters are interactions between customers and service providers.<br></br><br></br>b. Services can be stored as physical inventory for future sale.<br></br><br></br>c. Goods are tangible, while services are intangible.<br></br><br></br>d. The demand for service is more difficult to predict than the demand for goods.
Service management skills include all of the following EXCEPT _____.<br></br><br></br>a. accounting and finance<br></br>b. knowledge and technical expertise about operations<br></br>c. marketing and cross-selling skills<br></br>d. human interaction skills
Which of the following statements is TRUE of service facilities?<br></br><br></br>a. They are in close proximity to customers.<br></br>b. They rely on physical inventory.<br></br>c. They take advantage of patents.<br></br>d. They are located close to raw materials, suppliers, and labor.
Which of the following statements is TRUE of goods and services?<br></br><br></br>a. A variant is always a durable good with new features.<br></br>b. An automobile is a nondurable good.<br></br>c. Demand for goods is more difficult to predict than demand for services.<br></br>d. Normally, patents do not protect services.
A customer benefit package (CBP) includes _____.<br></br><br></br>a. only core offerings<br></br>b. only peripheral offerings<br></br>c. either core or peripheral offerings but not both<br></br>d. both core offerings as well as peripheral offerings
Which one of the following statements is TRUE regarding a customer benefit package (CBP)?<br></br><br></br>a. A CBP consists of a primary good and a primary service coupled together.<br></br><br></br>b. A variant is a CBP feature that strictly adheres to the standard CBP.<br></br><br></br>c. The size of the circles in the CBP framework can signify the relative importance of each good and service.<br></br><br></br>d. When defining a CBP, the features determined by management accurately describe customers’ wants and needs.
Which of the following has the highest goods content?<br></br><br></br>a. Buying furniture<br></br>b. Computer repair service<br></br>c. Automobile loans<br></br>d. Symphony performance
Which one of the following has the lowest goods content?<br></br><br></br>a. Automobile muffler replacement<br></br>b. Computer diagnosis and repair<br></br>c. Movie presentation<br></br>d. Fast-food restaurant
Which of the following is lowest in goods content and highest in service content?<br></br><br></br>a. Dining at a fast-food restaurant<br></br>b. Attending a theater production<br></br>c. Getting an oil change for your car<br></br>d. Filling a medical prescription
In relating operations management and the customer benefit package (CBP), which is the correct timing sequence?<br></br><br></br>a. Operating system processes lead to customer needs and expectations, which lead to customer benefit package.<br></br><br></br>b. Customer benefit package leads to customer needs and expectations, which lead to operating system processes.<br></br><br></br>c. Customer needs and expectations lead to customer benefit package, which leads to operating system processes.<br></br><br></br>d. Customer needs and expectations lead to operating system processes, which lead to customer benefit package.
A(n) _____ is a sequence of activities that is intended to create a certain result.<br></br><br></br>a. process<br></br>b. service<br></br>c. variant<br></br>d. inventory
A support process could be any of the following EXCEPT _____.<br></br><br></br>a. assembling automobiles<br></br>b. purchasing materials and supplies<br></br>c. managing inventory<br></br>d. installing a product
Support processes typically include all of the following EXCEPT _____.<br></br><br></br>a. inventory management<br></br>b. day care on-site services<br></br>c. research and development<br></br>d. manufacturing and assembly
Which of the following activities is NOT included in the general management process in businesses?<br></br><br></br>a. Accounting and information system<br></br>b. Purchasing and installation<br></br>c. Marketing<br></br>d. Human resource management
A network of processes that creates value for customers is known as a _____.<br></br><br></br>a. process network<br></br>b. value network<br></br>c. customer value<br></br>d. value chain
When evaluating golf clubs in a retail store, a golf simulator (i.e., a person hits the balls into a big video golf course screen and sees where it lands) is an example of _____.<br></br><br></br>a. nondurable goods replacing services<br></br>b. a primary good<br></br>c. low goods content<br></br>d. biztainment
Which one of the following is NOT an example of biztainment?<br></br><br></br>a. iPhone applications<br></br>b. Automobile leasing<br></br>c. Virtual product demonstrations<br></br>d. Virtual factory tours
Which of the following is the correct sequence describing the evolution of operations management?<br></br><br></br>a. Efficiency, customization, quality, service, sustainability, and time-based competition<br></br><br></br>b. Quality, efficiency, time-based competition, sustainability, customization, and service<br></br><br></br>c. Efficiency, quality, customization, time-based competition, service, and sustainability<br></br><br></br>d. Quality, service, customization, time-based competition, efficiency, and sustainability
Which one of the following statements about the scope and direction of operations management is FALSE?<br></br><br></br>a. Service-providing processes are the dominant type of processes in the U.S. economy.<br></br><br></br>b. Business analytics includes predictive and prescriptive data analytics.<br></br><br></br>c. Today, sustainability is placing increased pressure on all goods-producing and service-providing organizations worldwide.<br></br><br></br>d. Goods-producing industries account for over 80 percent of the jobs in the U.S.
Which one of the following statements about the structure of the U.S. economy is TRUE?<br></br><br></br>a. About 90 percent of all U.S. jobs are in service-providing processes.<br></br><br></br>b. All goods-producing jobs account for 25 percent of total U.S. jobs.<br></br><br></br>c. All service-providing jobs account for 65 percent of total U.S. jobs.<br></br><br></br>d. The largest U.S. industry with respect to U.S. jobs is manufacturing.
Identify a TRUE statement about sustainability.<br></br><br></br>a. Sustainability is always a variant in the customer benefit package framework.<br></br><br></br>b. The goal of economic sustainability is to reduce time-based competition.<br></br><br></br>c. Sustainability includes the global perspective.<br></br><br></br>d. Sustainability includes the idea of preserving resources for future generations.
Which of the following is NOT one of the three major perspectives (dimensions) of sustainability?<br></br><br></br>a. Global sustainability<br></br>b. Environmental sustainability<br></br>c. Economic sustainability<br></br>d. Social sustainability
All of the following are perspectives of sustainability EXCEPT:<br></br><br></br>a. economic sustainability.<br></br>b. social sustainability.<br></br>c. technological sustainability.<br></br>d. environmental sustainability.
Which of the following statements is TRUE of social sustainability?<br></br><br></br>a. It includes customization and financial management.<br></br>b. It includes ethics and governance.<br></br>c. It includes sustainable product design.<br></br>d. It includes energy optimization.
Which one of the following statements is TRUE of sustainability?<br></br><br></br>a. Environmental sustainability applies only to goods-producing firms.<br></br><br></br>b. Resource management is a component of social sustainability.<br></br><br></br>c. The three dimensions of sustainability are often referred to as the “triple bottom line.”<br></br><br></br>d. Sustainability includes the idea of preserving resources for three years.
Which one of the following statements about sustainability is TRUE?<br></br><br></br>a. The three dimensions of sustainability are environmental, social, and technological.<br></br><br></br>b. Economic sustainability focuses solely on the quality levels of physical goods.<br></br>c. Sustainability applies to goods-producing organizations only.<br></br><br></br>d. Sustainability practices can improve productivity and eliminate waste.
Product safety is an example of a(n) _____ sustainability practice.<br></br><br></br>a. environmental<br></br>b. social<br></br>c. economic<br></br>d. technological
Which of the following is NOT a current challenge in operations management (OM)?<br></br><br></br>a. Globalization<br></br>b. Technology<br></br>c. Quality<br></br>d. Mass production
Which of the following statements is FALSE concerning the discussion of the Zappos case study?<br></br><br></br>a. An example of a primary process at Zappos is “order entry.”<br></br><br></br>b. The value of a loyal customer is an important part of Zappos’ strategy because of its emphasis on more repeat customers through word of mouth.<br></br><br></br>c. Zappos’ first core value is “Deliver WOW through service.”<br></br><br></br>d. Zappos’ call center is the gateway to its business and represents a support process.
Which of the following statements in the Zappos case discussion is TRUE?<br></br><br></br>a. High quality shoes are produced in factories owned by Zappos in Asia.<br></br><br></br>b. The order entry process is a support service.<br></br><br></br>c. The only type of service encounter design used by Zappos is customer to Web service (i.e., human to and from technology).<br></br><br></br>d. The return process is a primary service.
An interaction between the customer and the service provider.
Any episodes, trans actions, or experiences in which a customer comes into contact with any aspect of the delivery system, however remote, and thereby has an opportunity to form an impression.
Integrates marketing, human resources, and operations functions to plan, create, and deliver goods and services, and their associated service encounters.
The perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them.
A clearly defined set of tangible (goods-content) and intangible (service-content) features that the customer recognizes, pays for, uses, or experiences.
The core” offering that attracts cus tomers and responds to their basic needs.
Are not essential to the primary good or service, but enhance it.
A CBP feature that departs from the standard CBP and is normally location or firm specific.
A network of facilities and processes that describes the flow of materials, finished goods, services, infor- mation, and financial transac- tions from suppliers, through the facilities and processes that create goods and services, and those that deliver them to the customer.
The portion of the value chain that focuses primarily on the physical movement of goods and materials, and supporting flows of information and financial transactions through the supply, production, and distribution processes.
A sequence of activities that is intended to create a certain result.
(Cradle-to-grave) begins with suppliers of materials to goods and service providing process
A framework that includes customized and team oriented product design, consulting services and others; includes on-site installations or application services,
Supply chains are the foundation of most value chain.
An organization’s commitment to the long-term quality of our environment.
An organization’s commitment to maintain healthy communities and a society that improves the quality of life.
An an organization’s commitment to address current business needs and economic vitality, and to have the agility and strategic management to prepare successfully for future business, markets, and operating environments.
Three dimensions of sustainability (environmental, social, economic) are often referred to as _________.
A process of transforming data into actions through analysis and insights in the context of organizational decision mak ing and problem solving.
