Operations Management Test 1 Suckaaaaaaass

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Operationsmanage

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4. The four major decision responsibilities of operations management are:
- A) Process, quality, capacity, and human resources
- B) Process, quality, human resources, and inventory
- C) Quality, inventory, human resources, and capacity
- D) Quality, capacity, inventory, and human resources
- E) Process, capacity, quality, and inventory

About This Quiz

This Operations Management Test assesses knowledge in key operational decision areas such as process, quality, capacity, and inventory. It highlights crucial aspects of management in the service industry, evaluating both theoretical understanding and practical implications.

Operations Management Test 1 Suckaaaaaaass - Quiz

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2.

14. Among the ethical and social challenges facing operations managers are
- a. honoring financial commitments
- b. maintaining a clean environment
- c. developing low-cost products
- d. providing an efficient workplace
- e. all of the above
Correct Answer

A. e. all of the above

Explanation

The correct answer is e. all of the above. This means that among the ethical and social challenges facing operations managers, they need to address all of the options listed, including honoring financial commitments, maintaining a clean environment, developing low-cost products, and providing an efficient workplace. These challenges are important for operations managers to consider in order to ensure ethical and socially responsible practices within their organization.

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3.

2. Capacity decisions:
- A) Include forecasting and scheduling
- B) Include inventory control
- C) Require management of personnel
- D) None of these
Correct Answer

A. A) Include forecasting and scheduling

Explanation

Capacity decisions involve determining the amount of resources needed to meet the demand for a product or service. This includes forecasting, which involves predicting future demand, and scheduling, which involves determining the timing and allocation of resources to meet that demand. Therefore, option A is the correct answer as it accurately states that capacity decisions include forecasting and scheduling. Option B, inventory control, may be related to capacity decisions but is not explicitly mentioned. Option C, management of personnel, may be a part of capacity decisions but is not specifically mentioned. Option D, none of these, is incorrect as capacity decisions do involve forecasting and scheduling.

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4.

13. Which of the following is an example of competing on quick response?
- a. A firm produces its product with less raw material waste than its competitors.
- b. A firm offers more reliable products than its competitors.
- c. A firm's products are introduced into the market faster than its competitors’ � products.
- d. A firm's research and development department generates many ideas for new products.
- e. A firm advertises more than its competitors.
Correct Answer

A. c. A firm's products are introduced into the market faster than its competitors’ � products.

Explanation

Competing on quick response refers to the ability of a firm to introduce its products into the market faster than its competitors. This can give the firm a competitive advantage as it allows them to capture market share before their competitors. Options a, b, d, and e do not directly relate to competing on quick response as they focus on other aspects such as waste reduction, product reliability, idea generation, and advertising. Therefore, the correct answer is c. A firm's products are introduced into the market faster than its competitors’ products.

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5.

3. Inventory decisions and control systems involve:
- A) Determining what to order, how much to order and when to order
- B) Tracking the flow of materials
- C) Managing the finished goods inventories
- D) All of these
Correct Answer

A. D) All of these

Explanation

The correct answer is D) All of these. Inventory decisions and control systems involve determining what to order, how much to order, and when to order. This includes tracking the flow of materials and managing the finished goods inventories. All of these aspects are important in effectively managing and controlling inventory levels to meet customer demand and minimize costs.

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6.

7. Which operations objective does the authors of the textbook suggest as the basis for improvement in the other operations objectives?
- A) Cost
- B) Quality
- C) Delivery
- D) Flexibility
Correct Answer

A. B) Quality

Explanation

The authors of the textbook suggest that improving quality should be the basis for improvement in the other operations objectives. This means that by focusing on improving the quality of products or services, it can lead to improvements in cost, delivery, and flexibility as well. When the quality is improved, it can result in cost savings due to reduced defects and rework, improved customer satisfaction and on-time delivery, and increased flexibility to meet customer demands. Therefore, quality improvement serves as a foundation for overall operational improvement.

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7.

10. Examples of response to the global environment include
- a. Boeing's worldwide sales and production
- b. Benneton's flexibility in design, production, and distribution
- c. A Chinese manufacturer, Haier, opening plants in the United States
- d. Ford's partnerships with Volvo and Mazda
- e. All of the above are examples.
Correct Answer

A. e. All of the above are examples.

Explanation

All of the options mentioned in the question are examples of responses to the global environment. Boeing's worldwide sales and production demonstrate their ability to adapt and cater to global markets. Benneton's flexibility in design, production, and distribution allows them to meet the diverse demands of different countries. A Chinese manufacturer, Haier, opening plants in the United States shows their expansion into new markets. Ford's partnerships with Volvo and Mazda indicate their collaboration with international companies to enhance their global presence. Therefore, all of these examples represent responses to the global environment.

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8.

11. Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 oz. Which type of chart(s) would you recommend?
- A. p-charts
- B. c-charts
- C. x - and R-charts
- D. x -, but not R-charts
- E. both p- and c-charts
Correct Answer

A. C. x - and R-charts

Explanation

The x - and R-charts are recommended in this scenario because they are used for monitoring the process mean and variability. Since the ideal weight of the jars of pickles should be precisely 11 oz, the x-chart will help monitor any shifts or deviations from this target value. The R-chart, on the other hand, will monitor the variability in the weights of the jars of pickles. By using both charts together, any deviations from the ideal weight and any increase in variability can be detected and addressed.

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9.

7. Which of the following represent an opportunity for generating a new product?
- a. understanding the customer
- b. demographic change, such as decreasing family size
- c. changes in professional standards
- d. economic change, such as rising household incomes
- e. All of the above are such opportunities.
Correct Answer

A. e. All of the above are such opportunities.

Explanation

Understanding the customer allows a company to identify their needs and preferences, which can lead to the development of new products that cater to those specific demands. Demographic change, such as decreasing family size, presents an opportunity for creating products that target smaller households or individuals. Changes in professional standards can create a demand for new products that align with the updated requirements. Economic change, such as rising household incomes, opens up possibilities for developing higher-end or luxury products. Therefore, all of the mentioned factors represent opportunities for generating new products.

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10.

8. Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is increased by 10%, it would then be
- a. 180 valves/hr
- b. 200 valves/hr
- c. 220 valves/hr
- d. 880 valves/hr
- e. 1760 valves/hr
Correct Answer

A. c. 220 valves/hr

Explanation

The productivity of Gibson Valves is currently 1600 valves per 8-hour shift. If the productivity is increased by 10%, it would be 1760 valves per 8-hour shift. To find the productivity per hour, we divide the total number of valves produced in 8 hours (1760) by 8. This gives us a productivity of 220 valves per hour. Therefore, option c. 220 valves/hr is the correct answer.

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11.

1. The four decision areas in operations management are:
- A) Planning, technology, inventory, control
- B) Process, quality, capacity, inventory
- C) Process, quality, technology, capacity
- D) None of these
Correct Answer

A. B) Process, quality, capacity, inventory

Explanation

The correct answer is B) Process, quality, capacity, inventory. These four decision areas are crucial in operations management. Process refers to the methods and procedures used to transform inputs into outputs. Quality involves ensuring that products or services meet customer expectations and standards. Capacity focuses on determining the optimal level of resources needed to meet demand. Lastly, inventory management involves controlling the amount and type of inventory to ensure smooth operations and minimize costs.

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12.

15. 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
Correct Answer

A. a. advertising and promotion

Explanation

Advertising and promotion is not considered an operations function in a fast-food restaurant because it falls under the category of marketing and sales. Operations functions typically involve tasks directly related to the production and delivery of goods or services, such as designing the layout of the facility, maintaining equipment, making hamburgers and fries, and purchasing ingredients. Advertising and promotion, on the other hand, focuses on promoting the business and attracting customers, which is a separate function from the day-to-day operations.

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13.

19. Henry Ford is noted for his contributions to
- a. standardization of parts
- b. statistical quality control
- c. assembly line operations
- d. scientific management
- e. time and motion studies
Correct Answer

A. c. assembly line operations

Explanation

Henry Ford is noted for his contributions to assembly line operations. Assembly line operations involve dividing the production process into smaller tasks and assigning each worker a specific task to complete. This method greatly increased efficiency and productivity in manufacturing, as it allowed for faster production and reduced costs. Ford's implementation of assembly line operations in his automobile factories revolutionized the manufacturing industry and set a new standard for mass production.

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14.

10. The Dulac Box plant works two 8-hour shifts each day. In the past, 500 cypress packing boxes were produced by the end of each day. The use of new technology has enabled them to increase productivity by 30%. Productivity is now approximately
- a. 32.5 boxes/hr
- b. 40.6 boxes/hr
- c. 62.5 boxes/hr
- d. 81.25 boxes/hr
- e. 300 boxes/hr
Correct Answer

A. b. 40.6 boxes/hr

Explanation

The plant works two 8-hour shifts each day, so the total number of hours worked per day is 16 (2 shifts x 8 hours/shift). Before the use of new technology, 500 boxes were produced in 16 hours, which means the productivity was 31.25 boxes/hr (500 boxes / 16 hours). However, with the increase in productivity by 30%, the new productivity is approximately 40.6 boxes/hr (31.25 boxes/hr x 1.3). Therefore, the correct answer is b. 40.6 boxes/hr.

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15.

8. "Quality Is Free," meaning that the costs of poor quality have been understated, is the work of
- A. W. Edwards Deming
- B. Joseph M. Juran
- C. Philip B. Crosby
- D. Crosby, Stills, and Nash
- E. Armand Feigenbaum
Correct Answer

A. C. Philip B. Crosby

Explanation

Philip B. Crosby is the author of the book "Quality Is Free," which emphasizes the idea that the costs of poor quality in products or services are often underestimated. Crosby's work focuses on the concept of prevention rather than detection and correction of defects, promoting the idea that it is more cost-effective to prevent errors and defects from occurring in the first place. Therefore, the correct answer is c. Philip B. Crosby.

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16.

11. If 1 million passengers pass through the St. Louis Airport with checked baggage each month, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage?
- A. 3.4
- B. 6.0
- C. 34
- D. 2700
- E. 6 times the monthly standard deviation of passengers
Correct Answer

A. A. 3.4

Explanation

A successful Six Sigma program aims to achieve a defect rate of 3.4 per million opportunities. In this case, the "opportunity" refers to each passenger with checked baggage. Therefore, if 1 million passengers pass through the airport with checked baggage each month, a successful Six Sigma program for baggage handling would result in approximately 3.4 passengers with misplaced luggage.

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17.

18. The "Father of Scientific Management" is
- a. Henry Ford
- b. Frederick W. Taylor
- c. W. Edwards Deming
- d. Frank Gilbreth
- e. just a figure of speech, not a reference to a person
Correct Answer

A. b. Frederick W. Taylor

Explanation

Frederick W. Taylor is referred to as the "Father of Scientific Management" because he is known for his contributions to the development of scientific management principles. Taylor believed in using scientific methods to improve efficiency and productivity in the workplace. He emphasized the importance of analyzing work processes, standardizing tasks, and training workers to perform their jobs in the most efficient way. Taylor's ideas had a significant impact on the field of management and laid the foundation for modern management practices.

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18.

2. The operation objectives of quality, cost, delivery, and flexibility are:
- A) Mutually exclusive
- B) Independent of each other
- C) Connected
- D) Unique
- E) Non-value-added
Correct Answer

A. C) Connected

Explanation

The operation objectives of quality, cost, delivery, and flexibility are connected. This means that they are interrelated and have an impact on each other. For example, improving quality may increase costs, but it can also lead to better customer satisfaction and increased flexibility in meeting customer demands. Similarly, focusing on cost reduction may affect quality and delivery. Therefore, these objectives cannot be considered in isolation and need to be managed together to achieve overall operational effectiveness.

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19.

11. Products are more "environmentally friendly" when they are made
- a. using cheaper materials
- b. using less energy
- c. according to OSHA standards
- d. where environmental regulations are lax
- e. more difficult to disassemble
Correct Answer

A. b. using less energy

Explanation

Using less energy to make products makes them more "environmentally friendly" because it reduces the overall carbon footprint and energy consumption associated with the manufacturing process. This helps to conserve natural resources and reduce greenhouse gas emissions, leading to a more sustainable and eco-friendly production.

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20.

12. 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.
Correct Answer

A. E. All of the above are techniques for employee empowerment.

Explanation

The correct answer is e. All of the above are techniques for employee empowerment. This means that all of the techniques mentioned in options a, b, c, and d are effective ways to empower employees. Building communication networks that include employees allows for open and transparent communication, which empowers employees to voice their opinions and ideas. Developing open, supportive supervisors creates a positive and empowering work environment. Moving responsibility from managers and staff to production employees gives them a sense of ownership and control over their work. Building high-morale organizations creates a positive and empowering culture that motivates employees to take initiative and make decisions.

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21.

6. Statistical process control charts
- A. display the measurements on every item being produced
- B. display upper and lower limits for process variables or attributes, and signal when a process is no longer in control
- C. indicate to the process operator the average outgoing quality of each lot
- D. indicate to the operator the true quality of material leaving the process
- E. none of the above
Correct Answer

A. B. display upper and lower limits for process variables or attributes, and signal when a process is no longer in control

Explanation

Statistical process control charts are used to monitor and control a process. They display upper and lower limits for process variables or attributes, such as measurements or quality characteristics. When a process is no longer in control, the chart will signal this through the display of data points outside of the control limits. This allows the process operator to take corrective action and bring the process back into control. Therefore, option b is the correct answer as it accurately describes the purpose and function of statistical process control charts.

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22.

6. The service industry makes up approximately what percentage of all jobs in the United States?
- A) 12%
- B) 40%
- C) 66%
- D) 79%
- E) 90%
Correct Answer

A. D) 79%

Explanation

The service industry in the United States makes up approximately 79% of all jobs. This means that the majority of employment opportunities in the country are in sectors such as healthcare, retail, hospitality, and professional services. The service industry plays a vital role in the US economy and contributes significantly to its overall growth and development.

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23.

11. The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to production?
- a. It has increased by 50 sets/shift.
- b. It has increased by 37.5 sets/hr.
- c. It has increased by 20%.
- d. It has decreased by 8.3%.
- e. It has decreased by 9.1%.
Correct Answer

A. c. It has increased by 20%.

Explanation

The production has increased by 20% because the plant was originally producing 500 boxes in two 10-hour shifts, which is a total of 1000 boxes per day. After switching to three 8-hour shifts, they are now producing 600 boxes per day. This is a 20% increase from the original production of 500 boxes.

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24.

2. Quality Function Deployment
- A) Is easily explained by means of a house of quality
- B) Does not consider customer attributes important
- C) Depends only on engineering characteristics
- D) Assumes interactions are unimportant
Correct Answer

A. A) Is easily explained by means of a house of quality

Explanation

Quality Function Deployment (QFD) is a method used to translate customer requirements into specific technical design requirements for a product or service. One of the tools used in QFD is the House of Quality, which is a matrix that helps visualize the relationship between customer requirements and the technical features of a product. Therefore, option A is correct as it states that QFD can be easily explained using a house of quality.

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25.

10. Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 oz. Which type of chart(s) would you recommend?
- A. p-charts
- B. c-charts
- C. x - and R-charts
- D. x -, but not R-charts
- E. both p- and c-charts
Correct Answer

A. C. x - and R-charts

Explanation

The x- and R-charts would be recommended in this scenario because they are used to monitor the process mean and variability of continuous data. Since the ideal weight of the jars of pickles should be precisely 11 oz, the x-chart would help monitor if the process mean is consistently at 11 oz. The R-chart would help monitor the variability in the weights of the pickles. By using both charts together, it would be possible to identify any shifts or trends in the process mean or variability, allowing for timely adjustments to maintain the desired weight.

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26.

20. Who among the following is associated with contributions to quality control in operations management?
- a. Charles Babbage
- b. Henry Ford
- c. Frank Gilbreth
- d. W. Edwards Deming
- e. Henri Fayol
Correct Answer

A. d. W. Edwards Deming

Explanation

W. Edwards Deming is associated with contributions to quality control in operations management. Deming was an American engineer, statistician, and management consultant who is best known for his work in Japan after World War II, where he helped develop the concept of total quality management (TQM). He emphasized the importance of statistical analysis and continuous improvement in achieving high-quality products and services. Deming's ideas had a significant impact on the field of operations management and continue to be influential today.

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27.

1. Modular design involves:
- A) Dividing the production process into separate work units
- B) Dividing the products into product lines
- C) Dividing the products into their similar components
- D) Dividing the products into different cost categories
Correct Answer

A. C) Dividing the products into their similar components

Explanation

Modular design involves dividing the products into their similar components. This means that the products are broken down into smaller, more manageable parts or modules that can be easily assembled or replaced. This approach allows for greater flexibility and efficiency in the production process, as different modules can be produced separately and then combined to create a variety of different products. It also makes it easier to identify and fix any issues or defects in the components, as they can be isolated and addressed individually. Overall, modular design helps streamline the production process and improve the overall quality and functionality of the products.

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28.

3. Quality Function Deployment includes which of the following: (1) relative importance of customer attributes, (2) tolerance stack-up, (3) a comparison to the competitor's product, (4) engineering characteristics, (5) customer perceptions, (6) customer attributes, (7) variation around a target, (8) value analysis.
- A) 3, 5, 6, 7, 8
- B) 1, 3, 4, 5, 6
- C) 1, 2, 4, 6, 7
- D) 2, 5, 6, 7, 8
Correct Answer

A. B) 1, 3, 4, 5, 6

Explanation

Quality Function Deployment (QFD) is a method used in product development to ensure that customer requirements are met. It involves translating customer needs and expectations into specific engineering characteristics.

The correct answer, B) 1, 3, 4, 5, 6, includes the following components of QFD:
1) Relative importance of customer attributes: This helps prioritize customer requirements based on their importance.
3) A comparison to the competitor's product: This allows for benchmarking and understanding the market competition.
4) Engineering characteristics: These are the specific technical requirements that need to be met in the product design.
5) Customer perceptions: This refers to the subjective opinions and impressions of customers regarding the product.
6) Customer attributes: These are the specific characteristics or features that customers desire in a product.

These components are all essential in the QFD process to ensure that the final product meets customer expectations and requirements.

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29.

1. If a sample of items is taken and the mean of the sample is outside the control limits the process is
- A. out of control and the cause should be established
- B. in control, but not capable of producing within the established control limits
- C. within the established control limits with only natural causes of variation
- D. monitored closely to see if the next sample mean will also fall outside the control limits
- e. producing high quality products
Correct Answer

A. A. out of control and the cause should be established

Explanation

If the mean of a sample is outside the control limits, it indicates that the process is not stable and is experiencing variation beyond what is expected due to natural causes. This means that the process is out of control and the cause of this variation should be identified and addressed. It is important to investigate and rectify the cause to bring the process back into control and ensure consistent and predictable results.

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30.

7. Typical differences between goods and services do not include
- a. cost per unit
- b. ability to inventory items
- c. timing of production and consumption
- d. customer interaction
- e. knowledge content
Correct Answer

A. a. cost per unit

Explanation

The typical differences between goods and services include the ability to inventory items, timing of production and consumption, customer interaction, and knowledge content. However, the cost per unit is not a typical difference between goods and services. Goods are tangible products that can be measured and sold in specific quantities, while services are intangible actions or performances that cannot be measured in the same way. The cost per unit is not a relevant factor in distinguishing between goods and services.

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31.

9. Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labor productivity will increase by
- a. 10%
- b. 20%
- c. 25%
- d. 40%
- e. 50%
Correct Answer

A. c. 25%

Explanation

If the production is increased from 1600 valves per shift to 2000 valves per shift, the increase in production is 400 valves. To calculate the labor productivity increase, we divide the increase in production (400 valves) by the initial production (1600 valves) and multiply by 100. This gives us a labor productivity increase of 25%. Therefore, the correct answer is c. 25%.

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32.

10. Black & Decker’s hand-powered tools and Hewlett-Packard’s printer business are examples of using enhancements and migrations of existing products to build on a what?
- A. product template
- B. product pulpit
- C. product platform
- D. product dais
- D. product dais
Correct Answer

A. C. product platform

Explanation

Black & Decker's hand-powered tools and Hewlett-Packard's printer business are examples of using enhancements and migrations of existing products to build on a product platform. A product platform refers to a set of common components, technologies, and design principles that can be used to develop multiple products. By leveraging existing products and making improvements or adaptations, companies can create a platform that allows for the development of new products with reduced time and cost. Black & Decker and Hewlett-Packard have utilized this strategy to expand their product offerings and cater to different customer needs while capitalizing on their existing expertise and resources.

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33.

3. Which of the following statements regarding Arnold Palmer Hospital is false?
- A. The hospital uses a wide range of quality management techniques.
- B. The culture of quality at the hospital includes employees at all levels.
- C. The hospital scores very highly in national studies of patient satisfaction.
- D. The hospital's high quality is measured by low readmission rates, not patient satisfaction.
- E. The design of patient rooms, even wall colors, reflects the hospital's culture of quality.
Correct Answer

A. D. The hospital's high quality is measured by low readmission rates, not patient satisfaction.

Explanation

The given statement is false because it states that the hospital's high quality is measured by low readmission rates, not patient satisfaction. However, the previous statement (c) mentions that the hospital scores very highly in national studies of patient satisfaction, indicating that patient satisfaction is indeed a measure of the hospital's high quality.

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34.

4. Assignable causes
- A. are not as important as natural causes
- B. are within the limits of a control chart
- C. depend on the inspector assigned to the job
- D. are also referred to as "chance" causes
- E. are causes of variation that can be identified and removed
Correct Answer

A. E. are causes of variation that can be identified and removed

Explanation

Assignable causes are causes of variation that can be identified and removed. This means that they are factors or sources that can be pinpointed and controlled in order to reduce or eliminate their impact on the process or outcome. Unlike natural causes, which are inherent in the system and cannot be easily controlled, assignable causes can be identified through analysis and investigation, allowing for targeted interventions to improve the process and reduce variability. Therefore, the correct answer is e.

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35.

13. Three commonly used productivity variables are
- a. quality, external elements, and precise units of measure
- b. labor, capital, and management
- c. technology, raw materials, and labor
- d. education, diet, and social overhead
- e. quality, efficiency, and low cost
Correct Answer

A. b. labor, capital, and management

Explanation

The correct answer is b. labor, capital, and management. This answer is correct because labor, capital, and management are three commonly used variables that contribute to productivity. Labor refers to the workforce and their skills and abilities. Capital refers to the resources and equipment used in production. Management refers to the organization and coordination of these resources. These three variables are essential in determining the efficiency and effectiveness of production processes and ultimately impact the overall productivity of a business or organization.

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36.

3. In the product imitator strategy, the order winner is _____ for the customer, while in product innovator strategy, the order winner is ______.
- A) Flexibility, price
- B) Flexibility, quality
- C) Quality, price
- D) Price, quality
- E) Price, flexibility
Correct Answer

A. D) Price, quality

Explanation

In the product imitator strategy, the order winner is price for the customer. This means that customers are primarily motivated to purchase a product based on its low price compared to competitors. On the other hand, in the product innovator strategy, the order winner is quality. This means that customers are primarily motivated to purchase a product based on its high quality and superior features compared to competitors, regardless of the price.

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37.

9. Boeing's new 787 Dreamliner
- a. is assembled in Washington, D.C.
- b. uses engines from Japan
- c. has its fuselage sections built in Australia
- d. has increased efficiency from new engine technology
- e. results from a partnership of about a dozen companies
Correct Answer

A. d. has increased efficiency from new engine technology

Explanation

The correct answer is d. has increased efficiency from new engine technology. This answer is supported by the information given in the question. The question states that Boeing's new 787 Dreamliner has increased efficiency, and it can be inferred that this increased efficiency is due to the use of new engine technology.

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38.

14. Standardization is an appropriate strategy in which stage of the product life cycle?
- a. introduction
- b. growth
- c. maturity
- d. decline
- e. retirement
Correct Answer

A. c. maturity

Explanation

Standardization is an appropriate strategy in the maturity stage of the product life cycle. During this stage, the product has reached its peak in terms of market acceptance and sales. Standardization involves streamlining and simplifying the product to reduce costs and increase efficiency. By standardizing the product, companies can achieve economies of scale, improve production processes, and meet the needs of a larger customer base. This strategy helps maximize profits and maintain market share in the mature stage when competition is high and product differentiation becomes less important.

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39.

15. Cost minimization is an appropriate strategy in which stage of the product life cycle?
- a. introduction
- b. growth
- c. maturity
- d. decline
- e. retirement
Correct Answer

A. d. decline

Explanation

Cost minimization is an appropriate strategy in the decline stage of the product life cycle because at this stage, the demand for the product decreases and competition intensifies. As a result, companies need to focus on reducing costs to maintain profitability. By cutting expenses, such as reducing production and marketing costs, companies can maximize their profits and mitigate the impact of declining sales. This strategy helps to optimize resources and ensure the product remains profitable until its eventual retirement from the market.

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40.

4. Arnold Palmer Hospital uses which of the following quality management techniques?
- A. Pareto charts
- B. flow charts
- C. benchmarking
- D. Just-in-Time
- E. The hospital uses all of the above techniques.
Correct Answer

A. E. The hospital uses all of the above techniques.

Explanation

The correct answer is e. The hospital uses all of the above techniques. This means that Arnold Palmer Hospital utilizes all of the quality management techniques mentioned in the options, including Pareto charts, flow charts, benchmarking, and Just-in-Time. These techniques are likely employed to improve the quality of healthcare services provided by the hospital and ensure efficient operations.

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41.

5. "Making it right the first time" is
- A. an unrealistic definition of quality
- B. a user-based definition of quality
- C. a manufacturing-based definition of quality
- D. a product-based definition of quality
- E. the definition proposed by the American Society for Quality
Correct Answer

A. C. a manufacturing-based definition of quality

Explanation

"Making it right the first time" refers to the concept of producing a product correctly without any errors or defects from the beginning. This aligns with a manufacturing-based definition of quality, which focuses on ensuring that products meet certain standards and specifications during the production process. This definition emphasizes the importance of preventing mistakes and defects rather than relying on inspections or corrections after the fact.

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42.

12. Productivity measurement is complicated by
- a. the competition's output
- b. the fact that precise units of measure are often unavailable
- c. stable quality
- d. the workforce size
- e. the type of equipment used
Correct Answer

A. b. the fact that precise units of measure are often unavailable

Explanation

Productivity measurement is complicated by the fact that precise units of measure are often unavailable. This means that it can be difficult to accurately quantify and compare the output or efficiency of different processes or systems. Without precise units of measure, it becomes challenging to determine the true level of productivity and make meaningful comparisons between different factors affecting productivity, such as the competition's output, stable quality, workforce size, and the type of equipment used.

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43.

18. Which of the following best describes "experience differentiation"?
- a. immerses consumers in the delivery of a service
- b. uses people's five senses to enhance the service
- c. complements physical elements with visual and sound elements
- d. consumers may become active participants in the product or service
- e. All are elements of experience differentiation.
Correct Answer

A. e. All are elements of experience differentiation.

Explanation

Experience differentiation refers to the strategy of creating a unique and memorable customer experience that sets a product or service apart from competitors. This can be achieved by immersing consumers in the delivery of a service, using people's five senses to enhance the service, complementing physical elements with visual and sound elements, and allowing consumers to become active participants in the product or service. All of these elements contribute to creating a differentiated experience that attracts and retains customers.

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44.

9. Which of the following is true regarding value engineering?
- a. Value engineering occurs only after the product is selected and designed.
- b. Value engineering is the same as value analysis.
- C. Value engineering is oriented toward improvement of design.
- d. Value engineering occurs during production when it is clear the product is a success.
- e. Value engineering can save substantial amounts of product cost, but quality suffers.
Correct Answer

A. C. Value engineering is oriented toward improvement of design.

Explanation

Value engineering is a systematic approach that focuses on improving the value of a product or service through the analysis and modification of its design. It aims to identify unnecessary costs and find alternative solutions that can reduce costs without compromising quality. Therefore, option c is true as it correctly states that value engineering is oriented toward the improvement of design.

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45.

12. If x =23ounces, σ =0.4ounces,andn=16,the ±3σ control limits will be
- A. 21.8 to 24.2 ounces
- B. 23 ounces
- C. 22.70 to 23.30 ounces
- D. 22.25 to 23.75 ounces
- E. none of the above
Correct Answer

A. C. 22.70 to 23.30 ounces

Explanation

The control limits are calculated by adding and subtracting 3 times the standard deviation from the mean. In this case, the mean is 23 ounces and the standard deviation is 0.4 ounces. Therefore, the lower control limit is 23 - (3 * 0.4) = 22.70 ounces and the upper control limit is 23 + (3 * 0.4) = 23.30 ounces. Therefore, the correct answer is c. 22.70 to 23.30 ounces.

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46.

8. Which of the following statements is not true?
- A. Virtually all of Honda’s sales (autos, motorcycles, generators, lawn mowers) are based on its outstanding engine technology.
- B. Intel focuses on microprocessors and chips.
- C. Microsoft focuses on PC software.
- D. Firms such as 3M establish goals for profitability from new products.
- E. Dell Computers provides fast delivery to customers, but, in return, customers may only select from a limited choice of hardware configurations.
Correct Answer

A. E. Dell Computers provides fast delivery to customers, but, in return, customers may only select from a limited choice of hardware configurations.

Explanation

The statement states that Dell Computers provides fast delivery to customers, but, in return, customers may only select from a limited choice of hardware configurations. This statement is not true because Dell Computers actually offers a wide range of hardware configurations for customers to choose from.

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47.

6. Which of the following statements is not true?
- A. Self-promotion is not a substitute for quality products.
- B. Inferior products harm a firm’s profitability and a nation’s balance of payments.
- C. Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.
- D. Quality—be it good or bad—l l l l l l will show up in perceptions about a firm’s new products, employment practices, and supplier relations.
- E. Legislation such as the Consumer Product Safety Act sets and enforces product standards by banning products that do not reach those standards.
Correct Answer

A. C. Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.

Explanation

The statement in option c is not true. Product liability does not automatically transfer from the manufacturer to the retailer once the retailer accepts delivery of the product. The manufacturer remains liable for any defects or issues with the product, and the retailer may also be held liable depending on their actions or negligence. Product liability is a complex legal concept that varies by jurisdiction and is not solely determined by the act of accepting delivery.

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48.

5. Which of the following does not come under the process category of decision making?
- A) Layout of the facility
- B) Job design
- C) The type of equipment and technology
- D) Product or service inspection
Correct Answer

A. D) Product or service inspection

Explanation

Product or service inspection does not come under the process category of decision making because it is a quality control activity that occurs after the production process. The process category of decision making involves decisions related to the layout of the facility, job design, and the type of equipment and technology used in the production process. These decisions directly impact the efficiency and effectiveness of the production process, while product or service inspection is a separate activity that ensures the final product or service meets the desired quality standards.

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49.

1. Example of strategic choices under the capacity area of policies in operations include:
- A) Make or Buy
- B) Investment is permanent or temporary
- C) Handmade or machine-made
- D) High levels or low-levels of inventory
- E) Flexible or hard automation
Correct Answer

A. A) Make or Buy

Explanation

Strategic choices under the capacity area of policies in operations include deciding whether to make a product or service in-house or to buy it from external suppliers. This decision involves considering factors such as cost, quality control, flexibility, and core competencies. Making the product in-house allows for greater control over quality and customization, but it may require significant investment in resources. On the other hand, buying the product from external suppliers can be more cost-effective and flexible, but it may involve relying on the capabilities and reliability of the suppliers.

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Operations Management Test 1 Suckaaaaaaass

4. The four major decision responsibilities of operations management are:

Quiz Preview

14. Among the ethical and social challenges facing operations managers are

2. Capacity decisions:

13. Which of the following is an example of competing on quick response?

3. Inventory decisions and control systems involve:

7. Which operations objective does the authors of the textbook suggest as the basis for improvement in the other operations objectives?

10. Examples of response to the global environment include

11. Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 oz. Which type of chart(s) would you recommend?

7. Which of the following represent an opportunity for generating a new product?

8. Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is increased by 10%, it would then be

1. The four decision areas in operations management are:

15. Which of the following would not be an operations function in a fast-food restaurant?

19. Henry Ford is noted for his contributions to

10. The Dulac Box plant works two 8-hour shifts each day. In the past, 500 cypress packing boxes were produced by the end of each day. The use of new technology has enabled them to increase productivity by 30%. Productivity is now approximately

8. "Quality Is Free," meaning that the costs of poor quality have been understated, is the work of

11. If 1 million passengers pass through the St. Louis Airport with checked baggage each month, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage?

18. The "Father of Scientific Management" is

2. The operation objectives of quality, cost, delivery, and flexibility are:

11. Products are more "environmentally friendly" when they are made

12. Techniques for building employee empowerment include

6. Statistical process control charts

6. The service industry makes up approximately what percentage of all jobs in the United States?

11. The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to production?

2. Quality Function Deployment

10. Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 oz. Which type of chart(s) would you recommend?

20. Who among the following is associated with contributions to quality control in operations management?

1. Modular design involves:

1. If a sample of items is taken and the mean of the sample is outside the control limits the process is

7. Typical differences between goods and services do not include

9. Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labor productivity will increase by

10. Black & Decker’s hand-powered tools and Hewlett-Packard’s printer business are examples of using enhancements and migrations of existing products to build on a what?

3. Which of the following statements regarding Arnold Palmer Hospital is false?

4. Assignable causes

13. Three commonly used productivity variables are

3. In the product imitator strategy, the order winner is _____ for the customer, while in product innovator strategy, the order winner is ______.

9. Boeing's new 787 Dreamliner

14. Standardization is an appropriate strategy in which stage of the product life cycle?

15. Cost minimization is an appropriate strategy in which stage of the product life cycle?

4. Arnold Palmer Hospital uses which of the following quality management techniques?

5. "Making it right the first time" is

12. Productivity measurement is complicated by

18. Which of the following best describes "experience differentiation"?

9. Which of the following is true regarding value engineering?

12. If x =23ounces, σ =0.4ounces,andn=16,the ±3σ control limits will be

8. Which of the following statements is not true?

6. Which of the following statements is not true?

5. Which of the following does not come under the process category of decision making?

1. Example of strategic choices under the capacity area of policies in operations include:

3. In the product imitator strategy, the order winner is _ for the customer, while in product innovator strategy, the order winner is __.