Operations Management

1. Which OM activity belongs to which major decision responsibility?

Deciding where to store raw barstock used in a production process.

1. Mapping out the series of steps which take inputs and lead to the output of a good or service.
Feedback: Also known as process flow analysis (PFA). PFA is used to understand and improve transformation processes.
ANSWER: PROCESS

2. Deciding where to store raw barstock used in a production process.
Feedback: In many manufacturing operations, some purchased materials are ordered in advance and held in storage until needed.ANSWER: INVENTORY
3. Deciding how many people should work on a particular shift.
Feedback: Day to day decisions about staffing levels help determine the volume of products or services that can be produced that day.ANSWER: CAPACITY
4. Setting the goal for a defect rate of the output of a critical process.
Feedback: Setting measurements of performance is an important aspect of quality management in operations.ANSWER: QUALITY

Setting the goal for a defect rate of the output of a critical process.

Deciding how many people should work on a particular shift.

The correct answer refers to the process flow analysis, while the incorrect answers correspond to inventory management, capacity planning, and quality management decisions respectively.

Explanation

The correct answer refers to the process flow analysis, while the incorrect answers correspond to inventory management, capacity planning, and quality management decisions respectively.

2. What is the function of operations in the transformation process?

A. designB. assess the performance ofC. improve D. all of the above

C. handle human resources within

D. none of the above

B. monitor the progress of

Operations mainly focus on designing the transformation process, ensuring efficiency and effectiveness.

Explanation

Operations mainly focus on designing the transformation process, ensuring efficiency and effectiveness.

3. Match the following characteristics with their respective contemporary operational theme. A. Globalization of Operations B. Co-dependency of Services and Manufacturing C. Supply Chain Management D. Environmental Concerns E. Lean Operations.

Answer Key: select A B C D E 1. The european union requires that 85% of the components in new cars that are built in Europe can be dissassembled and recycled.
Feedback: The most progressive companies have found that reduction of pollution often pays. Developing a product process that pollutes less may also reduce the cost of the product through less wasted material. select A B C D E 2. A process is redesigned to eliminate steps that do not add value for the customer.
Feedback: Lean systems and JIT is focus of chapter six in our textbook. select A B C D E 3. A political decision in Hungary leads to the closing of an aluminum smelting plant in North Carolina.
Feedback: Service and manufacturing are highly interrelated in today's global economy. select A B C D E 4. After sale service has become an important element in the development of competitive advantage for many manufacturing firms. Service firms with the best fit core competencies are teaming up with manufacturing firms to provide increased value for customers.
Feedback: Managing the supply chain requires all managers to consider the entire flow of materials and information along the supply chain from raw materials through production and distribution to the final customers. select A B C D E 5. Products manufactured in China are being customized by distributors in various countries around the world to better fit local market needs.
Feedback: New markets and new global competition have changed the nature of operational decision making. Emerging economies around the world have created a highly competitive climate and have a significant impact on operational decisions for businesses.

1:D, 2:E, 3:A, 4:B, 5:C

1:E, 2:D, 3:A, 4:C, 5:B

1:C, 2:D, 3:E, 4:A, 5:B

1:B, 2:E, 3:C, 4:D, 5:A

The correct answers are based on the key characteristics of each operational theme. The incorrect answers are designed to test the understanding of the different contemporary operational themes.

Explanation

The correct answers are based on the key characteristics of each operational theme. The incorrect answers are designed to test the understanding of the different contemporary operational themes.

4. _______ is the relationship between benefits of the product or service relative to the price.

A. Quality

C. Capacity

D. Logistics

A. Quality B. ValueC. CapacityD. Logistics

Value is the correct answer as it refers to the perception of benefits received from a product or service relative to the price paid. Quality, Capacity, and Logistics are important aspects of a product or service but do not specifically refer to the relationship between benefits and price.

Explanation

Value is the correct answer as it refers to the perception of benefits received from a product or service relative to the price paid. Quality, Capacity, and Logistics are important aspects of a product or service but do not specifically refer to the relationship between benefits and price.

5. Every function must integrate its decisions in conjunction with other functions. Therefore cross-functional decision making becomes important for all firms. But, in many firms, functional managers compete with each other for resources and have 'turf wars' where they try to protect their functional area at the expense of other functions. The term used to describe such dysfunction is ________.

D. policy breakdown

A. agency cost

A. agency costB. functional silosC. power brokeringD. policy breakdown
Answer Key: B

C. power brokering

Functional silos refer to the organizational structure where each functional area works independently, leading to a lack of communication and collaboration. This hinders cross-functional decision making and overall effectiveness of the firm.

Explanation

Functional silos refer to the organizational structure where each functional area works independently, leading to a lack of communication and collaboration. This hinders cross-functional decision making and overall effectiveness of the firm.

6. Which department could provide information on inventory turnover to a plant manager?

B. Purchasing

A. AccountingB. PurchasingC. MarketingD. Engineering

C. Marketing

D. Engineering

Accounting is responsible for tracking financial data, including the cost of goods sold and average inventory, which are essential for calculating inventory turnover.

Explanation

Accounting is responsible for tracking financial data, including the cost of goods sold and average inventory, which are essential for calculating inventory turnover.

7. Which of the following statements is false?

A. In OM, most of the decisions are short term in nature and can be easily reversed when conditions change.
B. There are many different types of process designs to choose from.
C. There are many different metrics of performance to choose from.
D. There are many different ways to configure capacity.

D. There are many different ways to configure capacity.

C. There are many different metrics of performance to choose from.

B. There are many different types of process designs to choose from.

The correct answer is A. In operations management (OM), decisions can be both short-term and long-term in nature, and not all decisions are easily reversible when conditions change.

Explanation

The correct answer is A. In operations management (OM), decisions can be both short-term and long-term in nature, and not all decisions are easily reversible when conditions change.

8. Industrial engineers and design engineers must work closely together to ensure that operations is setup to be able to produce new product concepts.

Partially True

False

True False

Not specified

Collaboration between industrial engineers and design engineers is crucial in ensuring that product concepts are not only feasible but also efficiently produced in operations. Therefore, the statement is true.

Explanation

Collaboration between industrial engineers and design engineers is crucial in ensuring that product concepts are not only feasible but also efficiently produced in operations. Therefore, the statement is true.

9. The marketing function plays a significant role in helping operations forecast product/service demand in order to plan for the production of goods or services.

True

Not enough information

Partially true

True False

While marketing does contribute to forecasting demand through market research and promotional activities, operations and production planning are essential functions that rely heavily on accurate demand forecasting provided by marketing. Hence, the statement is false.

Explanation

While marketing does contribute to forecasting demand through market research and promotional activities, operations and production planning are essential functions that rely heavily on accurate demand forecasting provided by marketing. Hence, the statement is false.