Test Bank1

File: ch01, Chapter 1: Basics of Operations Management
Multiple Choice
1. Every business is manage through !hat three ma"or functions#
a$ accounting, finance, an mar%eting
b$ engineering, finance, an operations management
c$ accounting, purchasing, an human resources
$ accounting, engineering, an mar%eting
e$ finance, mar%eting, an operations management
&ns: e
'ection (ef: )hat is Operations Management#
*evel: easy
+. )hich business function is responsible for managing cash flo!, current assets, an capital
investments#
a$ accounting
b$ finance
c$ mar%eting
$ operations management
e$ purchasing
&ns: b
*evel: easy
,. )hich business function is responsible for managing cash flo!, current assets, an capital
investments#
a$ accounting
b$ finance
c$ mar%eting
e$ purchasing
&ns: b
*evel: easy
-. )hich business function is responsible for sales, generating customer eman, an
unerstaning customer !ants an nees#
a$ finance
b$ human resources
c$ mar%eting
e$ purchasing
&ns: c
*evel: easy
.. )hich business function is responsible for planning, coorinating, an controlling the resources
neee to prouce a company/s proucts an services#
a$ engineering
b$ finance
c$ human resources
$ mar%eting
e$ operations management
&ns: e
*evel: easy
0. )hich of the follo!ing is not true for business process reengineering#
a$ 1t can increase efficiency.
b$ 1t cannot be use to improve 2uality.
c$ 1t can reuce costs.
$ 1t involves as%ing !hy things are one in a certain !ay.
e$ 1t involves reesigning processes.
&ns: b
'ection (ef: 3istorical 4evelopment
*evel: easy
5. &t the 6&7, !hich function plans an coorinates all the resources neee to esign, prouce,
an eliver the merchanise to its various retail locations#
a$ engineering
b$ human resources
c$ mar%eting
e$ purchasing
&ns:
*evel: easy
8. Operations Management is responsible for increasing the organi9ation/s efficiency, !hich means
the company !ill be able to ::::::::::.
a$ a to the engineering process
b$ ta%e for grante current operations
c$ increase the number of positions uner the manager/s position
$ eliminate activities that o not a value
e$ increasing purchasing opportunities
&ns:
*evel: moerate
;. )hich one of the follo!ing !oul not generally be consiere to be a transformation#
a$ a haircut
b$ a train rie
c$ manufacturing a raio
$ !aiting to see the octor
e$ a surgery
&ns:
*evel: moerate
10. &t a factory, the transformation process is a <an$ change of ra! materials
an components into proucts.
a$ locational
b$ imperceptible
c$ hypothetical
$ irreversible
e$ physical
&ns: e
*evel: moerate
11. )hich of the follo!ing is not an input#
a$ services
b$ managers
c$ builings
$ technology
e$ information
&ns: a
*evel: moerate
1+. Operations management is responsible for orchestrating all the resources neee to prouce
the final prouct. =his inclues all of the follo!ing e>cept
::::::::::::::::::::::::::::::::::::::.
a$ obtaining customer feebac%
b$ arranging scheules
c$ managing inventory
$ controlling 2uality
e$ esigning !or% methos
&ns: a
*evel: har
1,. )hich secon?tier computer company utili9e a rastic change in its operations function to
become an inustry leaer in the late 1;;0s#
a$ &pple
b$ Compa2
c$ 4ell
$ 1BM
e$ @o9mo
&ns: c
*evel: easy
1-. & company !ith a lo! customer contact that is capital intensive is calle:
a$ a farm
b$ manufacturing
c$ 2uasi?manufacturing
$ service
e$ 1nustrial era operations management
&ns: c
'ection (ef: 4ifferences Bet!een Manufacturing an 'ervice Organi9ations
*evel: easy
1.. )hich initially successful !eb?base home elivery company ha to shut o!n in +001 ue to
inae2uate management of its operations#
a$ Contact.com
b$ =ime 'aver.com
c$ @o9mo.com
$ @ramer.com
e$ Aeptune.com
&ns: c
*evel: moerate
10. 1n orer to be successful !ith )eb?base on?line shopping, companies must o all e>cept
!hich of the follo!ing#
a$ manage istribution centers an !arehouses
b$ operate fleets of truc%s
c$ maintain ae2uate inventories of proucts
$ promise same?ay elivery
e$ scheule eliveries
&ns:
*evel: har
15. )hat outsourcing functions oes B7' provie for clients#
a$ accounting an inventories
b$ inventories an eliveries
c$ accounting an eliveries
$ accounting an maintenance
e$ eliveries an maintenance
&ns: b
*evel: har
18. &n e>ample of an operation that oes not a value is ::::::::::::::::::::::::::::.
a$ removing iron ore from the groun an shipping it to a steel mill
b$ filling the unergroun gasoline tan%s at a service station
c$ ma%ing a !eing ca%e
$ moving components to a !arehouse for storage until the factory nees them
e$ moving luggage from a cab to the airport tic%et counter
&ns:
*evel: har
1;. )hich famous economist once suggeste that, C=he prouction problem has been solve.D#
a$ Eohn Aash
b$ 1rving Fisher
c$ Eohn @enneth 6albraith
$ &am 'mith
e$ Eohn Maynar @eynes
&ns: c
*evel: har
+0. )hat !as the primary reason !hy &merican firms lost mar%et ominance in many inustries in
the 1;50s an 1;80s#
a$ O7EC oil embargoes
b$ the Fietnam !ar ha raine the economy of resources
c$ after (ichar Ai>on !as 7resient, foreign consumers began to mistrust &merican firms
$ they ha become la> !ith a lac% of competition in the 1;.0s an 1;00s
e$ foreign government subsiies for business
&ns:
*evel: moerate
+1. 1n !hat area oes 6eneral Motors earn its highest return on capital#
a$ selling cars
b$ selling logo merchanise
c$ financing
$ selling racing engines
e$ post?sales parts an service
&ns: e
*evel: har
++. )hich of the follo!ing is an e>ample of a Cbac% roomD operation for an airline company#
a$ serving foo an rin%s to passengers
b$ collecting tic%ets an chec%ing passengers in at the gate
c$ loaing luggage onto the airplane
$ emonstrating use of the seat belt an other safety features of the airplane
e$ assisting passengers in getting off of the plane
&ns: c
*evel: moerate
+,. )hat are companies that have lo! customer contact an are capital intensive, yet provie a
service, calle#
a$ pseuo?manufacturing organi9ations
b$ 2uasi?manufacturing organi9ations
c$ hierarchical manufacturing organi9ations
$ service factories
e$ servifacturing organi9ations
&ns: b
*evel: moerate
+-. )hat percentage of total non?farm "obs in the B.'. economy come from service?proucing
inustries#
a$ +0G
b$ .0G
c$ 00G
$ 80G
e$ ;.G
&ns:
*evel: moerate
+.. )hat are long?term ecisions that set the irection for the entire organi9ation calle#
a$ tactical
b$ operational
c$ irectional
$ istant
e$ strategic
&ns: e
'ection (ef: Operations Management 4ecisions
*evel: easy
+0. )hich of the follo!ing is not true !ith respect to strategic an tactical ecisions#
a$ tactical ecisions focus on more specific ay?to?ay ecisions
b$ tactical ecisions etermine the irection for strategic ecisions
c$ tactical ecisions provie feebac% to strategic ecisions
$ tactical ecisions are mae more fre2uently an routinely
e$ tactical ecisions must be aligne !ith strategic ecisions
&ns: b
*evel: moerate
+5. )hich of the follo!ing is not primarily performe by the operation management function#
a$ "ob esign an !or% measurement
b$ avertising strategy
c$ location analysis
$ 2uality management
e$ facility layout
&ns: b
*evel: moerate
+8. )hen i operations management emerge as a formal fiel of stuy#
a$ uring the late 1;.0s an early 1;00s
b$ uring the late 1;50s an early 1;80s
c$ uring )orl )ar 11
$ uring the nineteenth century
e$ uring the early 1;00s
&ns: a
*evel: moerate
+;. Managing the transformation of inputs into goos an services is:
a$ a post inustrial era process.
b$ a irect contributor to the curve earth synrome.
c$ as ol as time.
$ a t!enty?first century evelope process.
e$ a esign of Freeric% =aylor.
&ns: c
*evel: har
,0. )ho invente the steam engine#
a$ Eames )att
b$ &am 'mith
c$ Eli )hitney
$ 3enry For
e$ Freeric% =aylor
&ns: a
*evel: har
,1. )hat concept involves brea%ing o!n the prouction of a prouct into a series of small,
elementary tas%s, each of !hich is performe by a ifferent !or%er#
a$ ivision of labor
b$ interchangeable parts
c$ scientific management
$ the 3a!thorne effect
e$ operations research
&ns: a
*evel: easy
,+. )ho !rote The Wealth of Nations in 1550, escribing ivision of labor#
a$ Eames )att
b$ &am 'mith
c$ Eli )hitney
$ 3enry For
e$ Freeric% =aylor
&ns: b
*evel: har
,,. =he concept of interchangeable parts !as introuce by :::::::::::::::::::.
a$ &am 'mith
b$ Freeric% =aylor
c$ Eli )hitney
$ 3enry For
e$ ). E!ars 4eming
&ns: c
*evel: har
,-. )ho create Cscientific management#D
a$ Eames )att
b$ &am 'mith
c$ Eli )hitney
$ Freeric% ). =aylor
e$ 3enry For
&ns:
*evel: moerate
,.. )hat !as Freeric% ). =aylor/s bac%groun#
a$ physics
b$ human resources management
c$ operations research
$ psychology
e$ engineering
&ns: e
*evel: har
,0. & %ey feature of scientific management is that !or%ers are motivate only by
::::::::::::::::::.
a$ love
b$ po!er
c$ challenging !or%
$ money
e$ fame
&ns:
*evel: moerate
,5. & %ey feature of scientific management is that !or%ers are limite only by
::::::::::::::::::.
a$ machinery
b$ co?!or%ers
c$ their "ob escription
$ their tools
e$ their physical ability
&ns: e
*evel: moerate
,8. =he creator of scientific management believe that
::::::::::::::::::::::::::::::::::::::.
a$ !or%er prouctivity is governe by scientific la!s
b$ the !or%er shoul have a lot of control over his or her "ob
c$ efficiency is overrate
$ !or%er pay shoul primarily be base on seniority
e$ mathematical moels are the basis for management of prouction
&ns: a
*evel: moerate
,;. )hich of the follo!ing operations management concepts i not evolve from scientific
management#
a$ moving assembly lines
b$ interchangeable parts
c$ stop!atch time stuies
$ piece rate incentives
e$ setting time stanars for tas% performance
&ns: b
*evel: moerate
-0. )ho populari9e the moving assembly line#
a$ Eames )att
b$ &am 'mith
c$ Eli )hitney
e$ 3enry For
&ns: e
*evel: moerate
-1. Bner scientific management, information from !hat is use to set time stanars for tas%
performance#
a$ stop!atch time stuies
b$ observance of similar tas%s
c$ computer simulation
$ negotiations !ith unions
e$ arbitration
&ns: a
*evel: moerate
-+. )hat movement starte !ith the publication of the results of the 3a!thorne stuies#
a$ scientific management
b$ human relations
c$ management science
$ mar%eting research
e$ operations management
&ns: b
*evel: moerate
-,. )hat is the 3a!thorne effect#
a$ !or%ers responing to the attention they are given
b$ stop!atch time stuies leaing to time stanars
c$ the use of 2uantitative methos for solving management problems
$ the use of interchangeable parts
e$ more lighting increases prouctivity
&ns: a
*evel: moerate
--. 1ncreasing the level of responsibility of a "ob by aing planning an coorination tas%s is
:::::::::::.
a$ "ob enlargement
b$ "ob rotation
c$ "ob involvement
$ "ob enrichment
e$ "ob bac%!ar integration
&ns:
*evel: moerate
-.. =he first military use of management science !as solving comple> problems of logistics
control, !eapons system esign, an eployment of missiles uring :::::::::::::::::::::.
a$ )orl )ar 1
b$ )orl )ar 11
c$ =he @orean )ar
$ =he Fietnam )ar
e$ Operation 4esert 'torm
&ns: b
*evel: har
-0. )hat term escribes the approach of giving !or%ers a larger portion of the total tas% to o#
a$ "ob enlargement
b$ "ob rotation
c$ "ob involvement
$ "ob enrichment
e$ "ob bac%!ar integration
&ns: a
*evel: moerate
-5. )hen !ere the 3a!thorne 'tuies conucte#
a$ 1550s
b$ 18,0s
c$ 1;,0s
$ 1;00s
e$ 1;80s
&ns: c
*evel: moerate
-8. 1n !hat company !ere the 3a!thorne 'tuies conucte#
a$ )estinghouse
b$ 6eneral Electric
c$ 3a!thorne 1ncorporate
$ 6eneral Motors
e$ )estern Electric
&ns: e
*evel: har
-;. Management science is focuse on:
a$ profit margin
b$ 2ualitative systems analysis
c$ management promotion metrics
$ 2uantitative techni2ues for solving personnel issues
e$ 2uantitative techni2ues for solving operations problems
&ns: e
*evel: har
.0. )hen !as the first mathematical moel for inventory management evelope#
a$ 1550
b$ 180.
c$ 1;00
$ 1;1,
e$ 1;,0
&ns:
*evel: har
.1. )here !as the "ust?in?time philosophy evelope#
a$ 6ermany
b$ Bnite 'tates
c$ Canaa
$ Eapan
e$ 1taly
&ns:
*evel: moerate
.+. Eust?in?time philosophy is applicable in:
a$ 'ervice organi9ations
b$ Manufacturing organi9ations
c$ &ssembly line operations
$ &, B, an C
e$ & an C only
&ns:
*evel: moerate
.,. )hen !as the "ust?in?time philosophy evelope#
a$ 1;80s
b$ 1;,0s
c$ 1800s
$ 1500s
e$ 1;;0s
&ns: a
*evel: har
.-. )hat is a philosophy that aggressively see%s to improve prouct 2uality by eliminating causes
of prouct efects an ma%ing 2uality an all?encompassing organi9ational philosophy#
a$ CH1
b$ =HM
c$ '7C
$ E1=
e$ B7(
&ns: b
*evel: moerate
... )hich of the follo!ing is consiere a C2uality guru#D
a$ Elton Mayo
b$ ). E!ars 4eming
c$ &le> 6amble
$ F.). 3arris
e$ Freeric% ). =aylor
&ns: b
*evel: har
.0. 'upply chain management involves managing:
a$ the flo! of internal information only.
b$ the flo! of materials an information from suppliers an buyers to the final customer.
c$ the flo! of ra! materials to inventory only.
$ managing the stoc% room supply only.
&ns: b
*evel: har
.5. Many companies re2uire their suppliers to meet !hat stanars as a conition for obtaining
contracts#
a$ (FO 0000
b$ 7B( 8000
c$ 1'O ;000
$ M&C3 .000
e$ 'B7 +000
&ns: c
*evel: har
.8. One of the t!o most important features of time?base competition involves
::::::::::::::::::::::::.
a$ avertising on the 1nternet
b$ stop!atch time stuies
c$ setting time stanars for tas% performance
$ instantaneous access to inventory information
e$ eveloping ne! proucts an services faster than the competition
&ns: e
*evel: moerate
.;. 1'O 1-000 stanars provie guielines for !hat#
a$ business ethics
b$ environmentally responsible actions
c$ supplier certification
$ 2uality control
e$ !eb site evelopment
&ns: b
*evel: moerate
00. A&F=& an the EB are :::::::::::::::::::::::::.
a$ certification groups
b$ regional trae agreements
c$ 2uality control methos
$ logistics proviers
e$ B.'. government agencies
&ns: b
*evel: moerate
01. )hat type of commerce ma%es up the highest percentage of electronic transactions#
a$ B+C
b$ C+C
c$ B-B
$ B+B
e$ B-C
&ns:
*evel: moerate
0+. =he 1nternet evelope from a government net!or% calle &(7&AE=, !hich !as create in
1;0; by :::::.
a$ Eapanese scientists
b$ the E7&
c$ the B.'. 4efense 4epartment
$ A'F
e$ 1'O
&ns: c
*evel: har
0,. =oay/s business must thin% in terms of:
a$ regional trae 9ones
b$ the E7&
c$ the B.'. 4efense 4epartment
$ the global mar%et place
e$ the curve !orl
&ns:
*evel: har
0-. 6eneral Electric/s =raing 7rocess Aet!or% primarily hanles transactions bet!een
:::::::::::::::::.
a$ iniviual customers
b$ companies an iniviual customers
c$ companies an their shipping firms
$ companies an their istributors
e$ companies an their suppliers
&ns: e
*evel: moerate
0.. )hat is a concept that ta%es a total system approach to creating efficient operations#
a$ lean systems
b$ enterprise resource planning
c$ customer relationship management
$ management science
e$ management information systems
&ns: a
'ection (ef: =oayIs OM Environment
*evel: easy
00. )hat are soft!are solutions that allo! the firm to collect customer?specific ata#
a$ M(7
b$ C(M
c$ E(7
$ E1=
e$ 1'O
&ns: b
*evel: moerate
05. Entry?level positions for operations management grauates inclue all of the follo!ing e>cept
:::::::::.
a$ 2uality specialist
b$ inventory analyst
c$ plant manager
$ prouction analyst
e$ prouction supervisor
&ns: c
*evel: moerate
08. Operations management personnel perform a variety of functions, incluing all of the
follo!ing e>cept :::::::::::::::::::.
a$ analy9ing prouction problems
b$ analy9ing potential mergers
c$ eveloping forecasts
$ eveloping employee scheules
e$ monitoring inventory
&ns: b
*evel: moerate
0;. )hich of the follo!ing concepts is lin%e the least !ith 3enry For#
a$ scientific management
b$ mass prouction
c$ mass customi9ation
$ technology
e$ interchangeable parts
&ns: c
*evel: har
50. =oay/s operations management is characteri9e by:
a$ its use of the internet.
b$ its reliance on the intranet.
c$ its increase use of cross?functional ecision ma%ing.
$ its use of cross?functional "ob sharing.
e$ its use of interchangeable parts.
&ns: c
'ection (ef: =oay/s OM Environment
*evel: har
51. )hich of the follo!ing historical figures !oul probably have the most ifferent management
style from the others#
a$ Elton Mayo
b$ 3enry For
c$ Eli )hitney
e$ &am 'mith
&ns: a
*evel: har
5+. Operations management interacts !ith !hich of the follo!ing:
a$ Mar%eting
b$ 1nformation systems
c$ Finance
$ Engineering
e$ all the above
&ns: e
'ection (ef: OM &cross the Organi9ation
*evel: moerate
=rueJFalse
1. Operations management is the business function that plans, coorinates, an controls the
resources neee to prouce a company/s proucts an services.
&ns: =rue
*evel: easy
+. Mar%eting is the central core function of every company.
&ns: False
*evel: easy
,. Operations management is the central core function of every company.
&ns: =rue
*evel: easy
-. &n e>ample of a transformation is !aiting to see the octor.
&ns: False
*evel: moerate
.. &t a factory, the transformation process is the physical change of ra! materials an components
into proucts.
&ns: =rue
*evel: moerate
0. &n e>ample of an operation that oes not a value is ma%ing a !eing ca%e.
&ns: False
*evel: moerate
5. Efficiency means being able to perform most activities.
&ns: False
*evel: moerate
8. &n e>ample of a Cbac% roomD operation for an airline company is loaing luggage onto the
airplane.
&ns: =rue
*evel: moerate
;. Companies that have lo! customer contact an are capital intensive, yet provie a service, are
calle service factories.
&ns: False
*evel: moerate
10. =he 1nustrial (evolution starte in the 1550s !ith the evelopment of a number of inventions
that relie on machine po!er instea of human po!er.
&ns: =rue
*evel: moerate
11. 4ivision of labor involves brea%ing o!n the prouction of a prouct into a series of small,
elementary tas%s, each of !hich is performe by a ifferent !or%er.
&ns: =rue
*evel: moerate
1+. & %ey feature of scientific management is that !or%ers are limite only by their tools.
&ns: False
*evel: moerate
1,. =he creator of scientific management believe that !or%er prouctivity !as governe by
scientific la!s.
&ns: =rue
*evel: moerate
1-. Operations management is a result of a single event, the inustrial revolution.
&ns: False
*evel: moerate
1.. )or%er participation in ecision ma%ing is a %ey feature of scientific management.
&ns: False
( 'ection (ef: 3istorical 4evelopment
*evel: moerate
10. CEob enrichmentD is an approach in !hich !or%ers are given a larger portion of the total tas%
to o.
&ns: False
*evel: moerate
15. =he first mathematical moel for inventory management !as evelope by Elton Mayo.
&ns: False
*evel: har
18. Operations research starte !ith the publication of the results of the 3a!thorne stuies.
&ns: False
*evel: moerate
1;. 'ustainability !as an early 1;.0/s management function an focus.
&ns: False
*evel: moerate
+0. =he 3a!thorne effect is that !or%ers are motivate by the attention they are given.
&ns: =rue
*evel: moerate
+1. 1ncreasing the level of responsibility of a "ob by aing planning an coorination tas%s is
calle "ob enrichment.
&ns: =rue
*evel: moerate
++. Outsourcing is proviing goos or services to an outsie provier.
&ns: False
*evel: moerate
+,. Management science focuses on eveloping 2uantitative techni2ues for solving operations
problems.
&ns: =rue
*evel: moerate
+-. =he avent of the computer age pave the !ay for the evelopment of M(7 for inventory
control an scheuling.
&ns: =rue
*evel: moerate
+.. =he ob"ective of supply chain management is to have every member of the chain compete
against each other to enhance competitive abilities.
&ns: False
*evel: moerate
+0. =he nee to offer a greater variety of prouct choices to customers of a traitionally
stanari9e prouct is the challenge of fle>ibility.
&ns: =rue
*evel: moerate
+5. One of the most important trens in companies toay is competition base on time.
&ns: =rue
*evel: moerate
+8. =he highest percentage of transactions on the internet occur bet!een businesses an their
customers <B+C$.
&ns: False
*evel: moerate
+;. =oay many corporate CEOs have come through the ran%s of operations.
&ns: =rue
*evel: easy
,0. Mar%eting can al!ays meet the customer/s nees.
&ns: False
*evel: easy
Essay
1. 4efine operations management.
&ns: =he business function responsible for planning, coorinating, an controlling the resources
neee to prouce a company/s proucts an services.
'ection (ef: )hat is Operations Management
*evel: easy
+. )hat must companies focus on in orer to survive in toay/s business environment#
&ns: 2uality, time?base competition, efficiency, international perspectives, an customer
relationships
*evel: moerate
,. )hat are the three ma"or functions through !hich every business is manage#
&ns: finance, mar%eting, an operations management
*evel: easy
-. )hat is the CroleD of operations management#
&ns: =o transform organi9ational inputs into outputs
*evel: easy
.. *ist at least seven ifferent possible inputs to a transformation process.
&ns: !or%ers, managers, builings, e2uipment, materials, technology, an information
*evel: moerate
0. )hat must companies o in orer to be successful !ith )eb?base on?line shopping#
&ns: Manage istribution centers an !arehouses, operate fleets of truc%s, forecast !hat
customers !ant an maintain ae2uate inventories of proucts, an scheule eliveries !hile
%eeping costs lo! an customers happy.
*evel: moerate
5. 1n !hat !ays o service organi9ations iffer from manufacturing organi9ations#
&ns:Manufacturing organi9ations prouce a physical, tangible prouct that can be store in
inventory before it is neee, !hile service organi9ations prouce an intangible prouct that
cannot be prouce ahea of timeK an for manufacturing organi9ations most customers have
no irect contact !ith the operation, !hile for service organi9ations customers are typically
present uring creation of the service. &lso, service organi9ations ten to have a shorter
response time an are more labor intensive.
*evel: moerate
8. *ist some typical operations management ecisions that are mae, along !ith their associate
operations management term.
&ns: )hat are the uni2ue features of the business that !ill ma%e it competitive# <Operations
strategy$
)hat are the uni2ue features of the prouct# <7rouct esign$
)hat are the uni2ue features of the process that give the prouct its uni2ue
characteristics# <7rocess selection$
3o! o !e manage our sources of supply# <'upply chain management$
3o! !ill managers ensure the 2uality of the prouct, measure 2uality, an ientify 2uality
problems# <Huality management$
)hat is the e>pecte eman for the prouct# <Forecasting$
)here !ill the facility be locate# <*ocation analysis$
3o! large shoul the facility be# <Capacity planning$
3o! shoul the facility be lai out# <Facility layout$
)hat "obs !ill be neee in the facility, !ho shoul o !hat tas%, an ho! !ill their
performance be measure# <Eob esign an !or% measurement$
3o! !ill the inventory of ra! materials be monitore# )hen !ill orers be place#
<1nventory mgt.$
)ho !ill !or% on !hat scheule# <'cheuling$
*evel: har
;. )hy are operations management ecisions typically more comple> for large companies than for
small companies#
&ns: Because of the si9e an scope of large companies: they typically prouce a greater variety
of proucts, have multiple location sites, an often use both omestic an international
suppliers.
*evel: har
10. )hat operations management approaches came out of the scientific management movement#
&ns: moving assembly lines, stop!atch time stuies, piece rate incentives, an setting time
stanars for tas% performance
*evel: har
11. =actical ecisions can be istinguishe from strategic ecisions by !hat set of characteristics#
&ns: Focus on specific ay?to?ay issues, tactical ecisions are mae after strategic ecisions,
tactical ecisions must be aligne !ith strategic ecisions, tactical ecisions provie feebac%
to strategic ecision.
*evel: har
1+. )hat are the t!o %ey features of scientific management#
&ns:First, it is assume that !or%ers are motivate only by money an are limite only by their
physical ability. 'econ, management shoul perform CplanningD separately from the
!or%ers !ho perform the Coing.D
*evel: moerate
1,. )hat !ere the ma"or impacts on operations management that resulte from the !iesprea
use of computers in the 1;50s#
&ns: using 2uantitative moels on a larger scaleK evelopment of material re2uirements
planningK an ata processing !as mae easier, !ith avances in forecasting, scheuling, an
inventory management
*evel: har
1-. )hat is the basic approach for business process reengineering an !hat are its ma"or impacts#
&ns: 1t involves as%ing !hy things are one in a certain !ay, 2uestioning assumptions, an then
reesigning the processes. 1t can increase efficiency, improve 2uality, an reuce costs.
*evel: moerate
1.. 3o! have information technology tools helpe !ith supply chain management#
&ns: =hey enable collaborative planning an scheuling. =hey allo! synchroni9e supply chain
e>ecution an esign collaboration, an they allo! companies to respon better an faster to
changing mar%et nees.
*evel: har
10. )hat are environmental issues face by business#
&ns: air pollution, !ater pollution, global !arming, an !aste isposal
*evel: moerate
15. Operations Management is:
&ns: the business function that plans, organi9es, coorinates, an controls resources an
organi9ation transforms into goos an services.
*evel: easy
18. )hy is toay/s Operations Management environment escribe as very ifferent from !hat it
!as "ust a fe! years ago#
&ns: Customers eman better 2uality, greater spee, an lo!er costs.
*evel: moerate
1;. )hile customers an service organi9ations interact irectly, customers an manufacturers
interact
&ns: through service organi9ations li%e istributors, !holesalers, an retailers.
*evel: har
+0. Manufacturers often provie services li%e
&ns: 'hipping, helping customers use proucts, repairs, replacement parts, !arranty service, an
creit.
( 'ection (ef: )hat is Operations Management#
*evel: har
+1. 'ervice proviers may also transform inputs into
&ns: goos that support their service, li%e restaurant foo preparation, hair an s%in care
proucts, an final assembly of bicycles, tricycles, !agons, furniture, an other proucts.
*evel: har
++. 'ervice proviers/ Cbac% roomD activities, li%e ::::::::::::::::::::::::, often have
manufacturing characteristics li%e ::::::::::::::::::::::::.
&ns: chec% an creit car transaction processing, creit analysis, cleaning an repairing clothing
an other prouctsK physical proucts that can be inventorie, lo! customer contact, capital
intense, an long response times.
*evel: har
+,. )hile service an manufacturing firms contribute more to the economy an offer more "obs at
all levels, :::::::::::::::::::::::: are also important to our lives an the economy.
&ns: &griculture, fishing, an forestryK construction, an e>traction <mining, oil an natural gas,
inustrial gases$.
*evel: har
+-. &ll business functions nee ::::::::::::::from operations management !hile operations
managers are highly epenent on:::::: from ::::: ::::::: to perform their "obs.
&ns: 1nformation, input, all others
'ection (ef: Operations Management in 7ractice
*evel: moerate
+.. )hile Operations Management focuses on privatelyLo!ne firms, governments provie many
services an some goos, li%e:.
&ns: postal serviceK family, social, an age assistance an care, health care, transportation, safety
an security, transportation facility maintenance, eucation an libraries, real estate title an
o!nership recoring, professional licensing, s%ill testing, recreation an relate licensing <fishing
an hunting$, historic preservation.
*evel: har
+0. =he history of Operations Management reflects.
&ns: the accumulation of e>perience an ieas over time.
*evel: har
+5. &pplying the best practices to operations management is not enough to give a competitive
avantage because:
&ns: Best practices are 2uic%ly passe to competitors.
*evel: moerate
+8. 'cientific Management, Management 'cience, EustLinL=ime, =otal Huality Management,
Business 7rocess (eengineering, an other evelopments reflect the application of
:::::::::::::::::::::::: an :::::::::::::::::::::::: to the transformation of inputs
into goos an services.
&ns: the Computer &ge or computers or information processing or 2uantitative methos an
philosophies that emphasi9e human relations, 2uestioning e>isting practices, accepting change.
*evel: har

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