Final Exam Flashcards by Philip McCauley

The operations manager performs the management activities of planning, organizing, staffing,
leading, and controlling of the OM function. T/F

True

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

D. Marketing, operations, and finance/accounting

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Reasons to study Operations Management include
A) studying why people organize themselves for productive enterprise
B) knowing how goods and services are consumed
C) understanding what human resource managers do
D) learning about a costly part of the enterprise
E) A and D

E. Studying why people organize themselves for productive enterprise and learning about a costly part of the enterprise

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

D. plan, organize, lead, control, staff

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The Ten Critical Decisions of Operations Management include
A) layout strategy
B) maintenance
C) process and capacity design
D) managing quality
E) all of the above

E. all of the above

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Which is not true regarding differences between goods and services?
A) Services are generally produced and consumed simultaneously; tangible goods are not.
B) Services tend to be more knowledge-based than goods.
C) Services tend to have a more inconsistent product definition than goods.
D) Goods tend to have higher customer interaction than services.
E) None of the above is true.

D. goods tend to have higher customer interaction than services.

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Manufacturing organizations have ten strategic OM decisions, while service organizations
have only eight. T/F

False

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Key Success Factors are those activities that are key to achieving competitive advantage. T/F

True

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The fundamental purpose of an organization’s mission statement is to
A) create a good human relations climate in the organization
B) define the organization’s purpose in society
C) define the operational structure of the organization
D) generate good public relations for the organization
E) define the functional areas required by the organization

B. define the organizations purpose in society.

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Which of the following is not an element of the management process?
A) controlling
B) leading
C) planning
D) pricing
E) staffing

D. pricing

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Forecasts
A) become more accurate with longer time horizons
B) are rarely perfect
C) are more accurate for individual items than for groups of items
D) all of the above
E) none of the above

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Forecasts are usually classified by time horizon into three categories
A) short-range, medium-range, and long-range
B) finance/accounting, marketing, and operations
C) strategic, tactical, and operational
D) exponential smoothing, regression, and time series
E) departmental, organizational, and industrial

A. short range, medium range, and long range

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Short-range forecasting tends to be \_\_\_\_\_\_\_\_\_\_ than longer-range forecasts
A) less accurate
B) more accurate
C) about the same
D) significantly more difficult
E) significantly less difficult

B. more accurate

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Operations management is part of a production system consisting of: Inputs – Processing
(i.e. Transforming) – Outputs. Which of the following examples depict accurately this
production system?
A) Airline: pilots – planes – transportation
B) Bank: Teller – computer equipment – deposits
C) Furniture manufacturer: Wood – sanding – chair
D) Telephone company: satellites – cables - telecommunication

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Many services organizations maintain records of sales noting
A) the day of the week
B) unusual events
C) weather
D) holidays
E) all of the above

E. all of the above

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Most forecasting techniques assume that there is some underlying stability in the system. T/F

True

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The Action Plan is how an organization expects to achieve its missions and goals. T/F

False

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Core Competencies are a set of skills, talents and activities that a firm does particularly well. T/F

True

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The two general approaches to forecasting are
A) qualitative and quantitative
B) mathematical and statistical
C) judgmental and qualitative
D) historical and associative
E) judgmental and associative

A. Qualitative and quantitative

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The creation of a unique advantage over competitors is called a Competitive Advantage. T/F

True

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A(n) Forecasted Average forecast uses an average of the most recent periods of data to
forecast the next period. T/F

True

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What two numbers are contained in the daily report to managers of Walt Disney Parks &
Resorts regarding the six Orlando parks?
A) yesterday’s forecasted attendance and yesterday’s actual attendance
B) yesterday’s actual attendance and today’s forecasted attendance
C) yesterday’s forecasted attendance and today’s forecasted attendance
D) yesterday’s actual attendance and last year’s actual attendance
E) yesterday’s forecasted attendance and the year-to-date average daily forecast error

A. yesterday’s forecasted attendance and yesterday’s actual attendance

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Productivity Variables: the three factors critical to productivity improvement—labor, capital,
and the art and science of management. T/F

True

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Frederick Taylor is known as the father of arts and sciences. T/F

False

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``` Chapter information spoke about the differences between goods and services. Some of the characteristics of a service includes: a) Intangible product b) Produced and consumed at same time c) Inconsistent product definition d) B & C e) All of the above ```

???

An operations manager’s ethical responsibilities A) are limited to the production phase of the product life cycle. B) are limited to following published laws and regualtions. C) extends from developing products to production to honoring stakeholders committments. D) do not include being efficient with the firm’s resources E) need not consider a product design’s impact on the entire economy.

C. Extends from developing products to production to honoring stakeholders commitments.

Seasonal Variations deals with regular upward or downward movement in a time series that ties to recurring events such as holidays, passing of seasons, or the school year. T/F

True

Time Series is defined as: A) a set of historical data organize by time period that is used to forecast B) a measurement of how well the forecast is predicting actual values C) a time management effective way of reviewing information D) a forecast that uses averages E) one of many approaches to forecasting

Henry Ford designed his first moving assembly line in 1925, and revolutionized the manufacturing processes of his Ford Model T. T/F

False

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

A. advertising and promotion

``` How many different steps are involved in forecasting? A) 5 B) 3 C) 7 D) 4 E) 8 ```

``` Southwest Airlines uses which of the following as a Competitive Advantage: A) automated ticketing machines B) no seat assignments C) no baggage transfers D) no meals E) All of the above ```

E. All of the above

SWOT Analysis is a method used by organizations to determine their internal strengths and weaknesses and external opportunities and threats. T/F

True

Self-directed teams may mean having no supervision on the factory floor. T/F

True

The objective of a human resource strategy is to A) produce the demand forecast at lowest labor cost B) match employment levels with demand C) achieve a reasonable quality of work life at low cost D) manage labor and design jobs so people are effectively and efficiently utilized E) all of the above

D. manage labor and design jobs so people are effectively and efficiently utilized.

A major challenge in inventory management is to maintain a balance between inventory investment and customer service. T/F

True

Four of the components of job design are A) employment stability, work schedules, work sampling, motivation, and incentive systems B) job specialization, job expansion, psychological components, and self-directed teams C) labor specialization and enrichment, motivation and incentive systems, employment stability, and work sampling D) ergonomics and work methods, method time measurement, work schedules, and incentive systems E) labor specialization, time studies, work sampling, and pre-determined time standards.

B. Job specialization, job expansion, psychological components and self-directed teams

Which of the following is a function of inventory? A) to decouple or separate parts of the production process B) to decouple the firm from fluctuations in demand and provide a stock of goods that will provide a selection for customers C) to take advantage of quantity discounts D) to hedge against inflation E) All of the above are functions of inventory

E. all of the above are functions of inventory

Labor planning determines employment stability. T/F

True

One of the elements of ergonomics is A) allocating work time based on economic studies B) the cost justification of technology C) designing tools and machines that facilitate human work D) the use of automation in a manufacturing organization E) the establishment of time standards

C. designing tools and machines that facilitate human work

Self-directed teams tend to be successful in work environments where there is little employee empowerment. T/F

False

Methods analysis focuses on A) the design of the machines used to perform a task B) establishing time standards C) reducing the number of skills needed for the completion of a task D) issues such as the movement of individuals or materials E) evaluating training programs to see if they are efficient

D. issues such as the movement of individuals or materials

The visual workplace A) uses low-cost visual devices to share information B) is an effective means of rapid communication in a dynamic workplace C) replaces difficult-to-understand paperwork D) eliminates non-value added activities by making problems and standards visual E) all of the above

E. all of the above

``` Which of the following is used by methods analysis in analyzing body movement at the workstation level? A) MTM chart B) flow diagram C) operations chart D) process chart E) improvement chart ```

C. operations chart

``` Methods analysis employs which of the following charts in its analysis of the movement of workers and materials? A) micro-motion chart B) flow diagram C) activity chart D) man-machine chart E) movement chart ```

B. flow diagram

The purpose of labor standards is to accurately define the skills required to complete a job. T/F

False

The purpose of safety stock is to A) replace failed units with good ones B) eliminate the possibility of a stockout C) eliminate the likelihood of a stockout due to erroneous inventory tally D) to achieve desired service levels and to avoid stockouts E) protect the firm from a sudden decrease in demand

???

Two uses of labor standards are to determine the labor content of items produced and to determine staffing needs. T/F

True

Labor standards are defined as the A) preset activities required to perform a job B) amount of space required by a specific crew to perform the job C) standard set of procedures to perform the job D) standard labor agreements E) amount of time required to perform a job or part of a job

E. amount of time required to perform a job or part of a job

Which of the following is not one of the four main types of inventory? A) raw material inventory B) work-in-process inventory C) maintenance/repair/operating supply inventory D) safety stock inventory E) All of these are main types of inventory.

D. safety stock inventory

Employee Empowerment involves enlarging employee jobs so that the added responsibility and authority is moved to the lowest possible level in the organization. T/F

True

``` Which of the following is not a method used to set labor standards? A) historical experience B) time study C) predetermined time standards D) work sampling E) government laws and regulations ```

E. government laws and regulations

Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer wants? A) Just-in-time (JIT) B) Toyota Production System (TPS) C) Lean operations D) Material requirements planning (MRP) E) kanban

A. Just-in-time (JIT)

``` The word "kanban" means A) low inventory B) employee empowerment C) card D) continuous improvement ```

C. card

Which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices? A) Just-in-time (JIT) B) Toyota Production System (TPS) C) Lean operations D) Material requirements planning (MRP) E) kanban

B. Toyota Production System (TPS)

Waste is anything that does not add value, such as storage or inspection of items; waste also includes any activity that does not add value from the consumer's perspective. T/F

True

The 5Ss–sort/segregate, simplify/straighten, shine/sweep, standardize, and sustain/self discipline–are important to lean production because they act as a means to reduce waste. T/F

True

Manufacturing cycle time is best defined as the A) length of the work shift, expressed in minutes per day B) time it takes a unit to move from one workstation to the next C) time between the start of one unit and the start of the next unit D) sum of all the task times to make one unit of a product E) time from raw materials receipt to finished product exit

E. time from raw materials receipt to finished product exit.

Throughput measures the time A) that it takes to process one unit at a station B) between the arrival of raw materials and the shipping of finished products C) to produce one whole product through an empty system (i.e., with no waiting) D) required to move orders through the production process, from receipt to delivery E) none of the above

D. required to move orders through the production process, from receipt to delivery

``` Which of the following is not one of the Seven Wastes? A) overproduction B) transportation C) assignment D) defective product E) motion ```

C. assignment

Which of the following is not a goal of JIT partnerships? A) removal of unnecessary activities B) removal of in-plant inventory C) removal of in-transit inventory D) removal of engineering changes E) All of the above are goals of JIT partnerships.

E. all of the above are goals of JIT partnerships.

``` JIT makes quality cheaper because A) the cost of low quality can be hidden as inventory cost B) JIT adds more buffers to the system C) JIT prevents long runs of defects D) B and C E) A, B and C ```

C. JIT prevents long runs of defects

ISO 9000 has evolved from a set of quality assurance standards toward a quality management system. T/F

True

TQM is important because quality influences all of the ten decisions made by operations managers. T/F

True

Continuous improvement is based on the philosophy that every aspect of an operation can be improved. T/F

True

A cause-and-effect diagram helps identify the source of a problem.

True

A successful quality strategy features which of the following steps? A) organization environment that fosters quality B) understanding the principles of quality C) engaging employees in the necessary activities for quality implementation D) A and C E) A, B, and C

E. A, B, and C

Three broad categories of definitions of quality are A) product quality, service quality, and organizational quality B) user-based, manufacturing-based, and product-based C) internal, external, and prevention D) low-cost, response, and differentiation E) Pareto, Shewhart, and Deming

B. user-based, manufacturing-based, and product-based

``` All of the following costs are likely to decrease as a result of better quality except A) customer dissatisfaction costs B) inspection costs C) scrap costs D) warranty and service costs E) maintenance costs ```

E. maintenance costs

Based on his 14 Points, Deming is a strong proponent of A) inspection at the end of the production process B) an increase in numerical quotas to boost productivity C) looking for the cheapest supplier D) training and knowledge E) all of the above

D. training and knowledge

``` PDCA, developed by Shewhart, stands for which of the following? A) Plan-Do-Check-Act B) Plan-Develop-Check-Accept C) Problem-Develop Solution- Check- Act D) Problem-Do-Continue-Act E) none of the above ```

A. Plan do check act

Total quality management emphasizes A) the responsibility of the quality control staff to identify and solve all quality-related problems B) a commitment to quality that goes beyond internal company issues to suppliers and customers C) a system where strong managers are the only decision makers D) a process where mostly statisticians get involved E) ISO 14000 certification

B. a commitment to quality that goes beyond internal company issues to suppliers and customers.

Techniques for building employee empowerment include A) building communication networks that include employees B) developing open, supportive supervisors C) moving responsibility from both managers and staff to production employees D) building high-morale organizations E) All of the above are techniques for employee empowerment.

E. all of the above are techniques for employee empowerment.

The "four Ms" of cause-and-effect diagrams are A) material, machinery/equipment, manpower, and methods B) material, methods, men, and mental attitude C) named after four quality experts D) material, management, manpower, and motivation E) none of the above

A. material, machinery/equipment, manpower and methods

Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a A) Pareto chart B) flowchart C) check sheet D) Taguchi map E) poka-yoke

B. flowchart

``` A fishbone diagram is also known as a A) cause-and-effect diagram B) poka-yoke diagram C) Kaizen diagram D) Kanban diagram E) Taguchi diagram ```

A. cause-and-effect diagram

Outsourcing refers to transferring a firm's activities that have traditionally been internal to external suppliers. T/F

True

The objective of the make-or-buy decision is to help identify the products and services that can be obtained externally. T/F

True

Waterways are an attractive distribution system when speed is more important than shipping cost. T/F

False

Logistics management can provide a competitive advantage through improved customer service. T/F

True

ISO 14000 is a set of environmental standards developed by the International Standards Organization. T/F

True

``` The goal of inspection is to A) detect a bad process immediately B) add value to a product or service C) correct deficiencies in products D) correct system deficiencie E) all of the above ```

A. detect a bad process immediately

``` Building high-morale organizations and building communication networks that include employees are both elements of A) ISO 9000 certification B) Six Sigma certification C) employee empowerment D) Taguchi methods E) the tools of TQM ```

C. employee empowerment

The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as A) continuous improvement B) employee empowerment C) benchmarking D) copycatting E) patent infringement

C. benchmarking

One of the ways that Just-In-Time (or JIT) influences quality is that by reducing inventory, bad quality is exposed. T/F

True

Logistics management can provide a competitive advantage through improved customer service. T/F

True

E-procurement A) works best in long-term contract situations, and is not suited for auctions B) is the same thing as Internet purchasing C) represents only the auction and bidding components of Internet purchasing D) is illegal in all states except Nevada and New Jersey E) All of the above are true of e-procurement.

B. is the same thing as internet purchasing

The three classic types of negotiation strategies are A) vendor evaluation, vendor development, and vendor selection B) Theory X, Theory Y, and Theory Z C) many suppliers, few suppliers, and keiretsu D) cost-based price model, market-based price model, and competitive bidding E) None of the above is correct.

C. many suppliers, few suppliers, and keiretsu

``` What term is used to describe the outsourcing of logistics? A) E-Logistics B) Shipper Managed Inventory (SMI) C) Hollow Logistics D) Sub-Logistics E) Third-Party Logistics ```

E. third-party logistics

Transferring to external vendors a firm's activities that have traditionally been internal is known as outsourcing. T/F

True

Respect for people is a cornerstone of continuous improvement. T/F

True