Question 1

How do services differ from goods?
 Identify five ways.

Accepted Answer

Pick from the following: a service is us

Question 2

The marketing function's main concern is with

Accepted Answer

A)  producing goods or providing services 
B)  procuring materials, supplies, and equipment 
C)  building and maintaining a positive image 
D)  generating the demand for the organization's products or services 
E)  securing monetary resources 
A)  producing goods or providing services 
B)  procuring materials, supplies, and equipment 
C)  building and maintaining a positive image 
D)  generating the demand for the organization's products or services 
E)  securing monetary resources

Question 3

Felicien grows mirlitons (that's Cajun for Chayote squash) in his 100 by 100 foot garden. He then sells the crop at the local farmers' market. Two summers ago, he was able to produce and sell 1200 pounds of mirlitons. Last summer, he tried a new fertilizer that promised a 50% increase in yield. He harvested 1900 pounds. Did the fertilizer live up to its promise?

Accepted Answer

Since the productivity gain wa

Question 4

The service sector makes up approximately what percentage of all jobs in the United States?

Accepted Answer

A)  12% 
B)  40% 
C)  66% 
D)  79% 
E)  90% 
A)  12% 
B)  40% 
C)  66% 
D)  79% 
E)  90%

Question 5

A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it would then be

Accepted Answer

A)  14.4 covers/hr 
B)  24 covers/hr 
C)  240 covers/hr 
D)  1200 covers/hr 
E)  none of the above 
A)  14.4 covers/hr 
B)  24 covers/hr 
C)  240 covers/hr 
D)  1200 covers/hr 
E)  none of the above

Question 6

In the past half-century, while the number of people employed in manufacturing in the United States has decreased slightly, the output per worker has increased significantly.

Accepted Answer

A) True 
 B)False

Question 7

Identify the three productivity variables used in the text.

Accepted Answer

The three common var

Question 8

Brandon Production is a small firm focused on the assembly and sale of custom computers. The firm is facing stiff competition from low-priced alternatives, and is looking at various solutions to remain competitive and profitable. Current financials for the firm are shown in the table below. In the first option, marketing will increase sales by 50%. The next option is Vendor (Supplier) changes, which would result in a decrease of 10% in the cost of inputs. Finally there is an OM option, which would reduce production costs 25%. Which of the options would you recommend to the firm if it can only pursue one option?
 In addition, comment on the feasibility of each option.
 $$\begin{array} { l r } 
\text { Business Function } & \text { Current Value } \
\text { Cost of Inputs } & \$ 50,000 \
\text { Production Costs } & \$ 25,000 \
\text { Revenue } & \$ 80,000
\end{array}$$

Accepted Answer

Marketing would increase sales to $120,0

Question 9

Martin Manufacturing has implemented several programs to improve its productivity. They have asked you to evaluate the firm's productivity by comparing this year's performance with last year's. The following data are available:
 $$\begin{array} { | l | l | l | } 
\hline & \text { Last Year } & \text { This Year } \
\hline \text { Output } & 10,500 \text { units } & 12,100 \text { units } \
\hline \text { Labor Hours } & 12,000 & 13,200 \
\hline \text { Utilities } & \$ 7,600 & \$ 8,250 \
\hline \text { Capital } & \$ 83,000 & \$ 88,000 \
\hline
\end{array}$$ 
Has Martin Manufacturing improved its productivity during the past year?

Accepted Answer

Productivity improved in all t

Question 10

The factor responsible for the largest portion of productivity increase in the U.S. is

Accepted Answer

A)  labor 
B)  management 
C)  capital 
D)  All three combined; it is impossible to determine the contribution of individual factors. 
E)  None of these 
A)  labor 
B)  management 
C)  capital 
D)  All three combined; it is impossible to determine the contribution of individual factors. 
E)  None of these

Question 11

Which of the following is not a current trend in operations management?

Accepted Answer

A)  just-in-time performance 
B)  global focus 
C)  supply-chain partnering 
D)  mass customization 
E)  All of the above are current trends. 
A)  just-in-time performance 
B)  global focus 
C)  supply-chain partnering 
D)  mass customization 
E)  All of the above are current trends.

Question 12

New trends in operations management include

Accepted Answer

A)  global focus 
B)  mass customization 
C)  empowered employees 
D)  rapid product development 
E)  All of the above are new trends in operations management. 
A)  global focus 
B)  mass customization 
C)  empowered employees 
D)  rapid product development 
E)  All of the above are new trends in operations management.

Question 13

Productivity measurement is complicated by

Accepted Answer

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 
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

Question 14

Why are organizations changing from batch (large) shipments to just-in-time (JIT) shipments?

Accepted Answer

Organizations are switching to

Question 15

Which of the following is not an element of the management process?

Accepted Answer

A)  controlling 
B)  leading 
C)  planning 
D)  pricing 
E)  staffing 
A)  controlling 
B)  leading 
C)  planning 
D)  pricing 
E)  staffing

Question 16

ASQ, ISM, APICS, and PMI are important professional organizations to operations management because

Accepted Answer

A)  they provide certification for professionals 
B)  they allow professionals to keep up with industry developments 
C)  they facilitate professional networking 
D)  none of the above 
E)  all of the above 
A)  they provide certification for professionals 
B)  they allow professionals to keep up with industry developments 
C)  they facilitate professional networking 
D)  none of the above 
E)  all of the above

Question 17

The service sector has lower productivity improvements than the manufacturing sector because

Accepted Answer

A)  the service sector uses less skilled labor than manufacturing 
B)  the quality of output is lower in services than manufacturing 
C)  services usually are labor-intensive 
D)  service sector productivity is hard to measure 
E)  none of the above 
A)  the service sector uses less skilled labor than manufacturing 
B)  the quality of output is lower in services than manufacturing 
C)  services usually are labor-intensive 
D)  service sector productivity is hard to measure 
E)  none of the above

Question 18

Gibson Products produces cast bronze valves for use in offshore oil platforms. Currently, Gibson produces 1600 valves per day. The 20 workers at Gibson work from 7 a.m. until 4 p.m., with 30 minutes off for lunch and a 15 minute break during the morning work session and another at the afternoon work session. Gibson is in a competitive industry, and needs to increase productivity to stay competitive. They feel that a 20 percent increase is needed.
Gibson's management believes that the 20 percent increase will not be possible without a change in working conditions, so they change work hours. The new schedule calls on workers to work from 7:30 a.m. until 4:30 p.m., during which workers can take one hour off at any time of their choosing. Obviously, the number of paid hours is the same as before, but production increases, perhaps because workers are given a bit more control over their workday. After this change, valve production increased to 1800 units per day.
a. Calculate labor productivity for the initial situation
b. Calculate labor productivity for the hypothetical 20 percent increase
c. What is the productivity after the change in work rules?
d. Write a short paragraph analyzing these results.

Accepted Answer

(a) Workers are active for eight hours p

Question 19

Productivity tends to be more difficult to improve in the service sector because the work is

Accepted Answer

A)  often difficult to automate 
B)  typically labor-intensive 
C)  frequently processed individually 
D)  often an intellectual task performed by professionals 
E)  All of the above make service productivity more difficult. 
A)  often difficult to automate 
B)  typically labor-intensive 
C)  frequently processed individually 
D)  often an intellectual task performed by professionals 
E)  All of the above make service productivity more difficult.

Question 20

An operations task performed at Hard Rock Café is

Accepted Answer

A)  borrowing funds to build a new restaurant 
B)  advertising changes in the restaurant menu 
C)  calculating restaurant profit and loss 
D)  preparing employee schedules 
E)  all of the above 
A)  borrowing funds to build a new restaurant 
B)  advertising changes in the restaurant menu 
C)  calculating restaurant profit and loss 
D)  preparing employee schedules 
E)  all of the above

Exam 1: Operations and Productivity

How do services differ from goods? Identify five ways.

The marketing function's main concern is with

The service sector makes up approximately what percentage of all jobs in the United States?

A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it would then be

In the past half-century, while the number of people employed in manufacturing in the United States has decreased slightly, the output per worker has increased significantly.

Identify the three productivity variables used in the text.

The factor responsible for the largest portion of productivity increase in the U.S. is

Which of the following is not a current trend in operations management?

New trends in operations management include

Productivity measurement is complicated by

Why are organizations changing from batch (large) shipments to just-in-time (JIT) shipments?

Which of the following is not an element of the management process?

ASQ, ISM, APICS, and PMI are important professional organizations to operations management because

The service sector has lower productivity improvements than the manufacturing sector because

Productivity tends to be more difficult to improve in the service sector because the work is

An operations task performed at Hard Rock Café is

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Statistical Process Control

Process Strategy

Capacity and Constraint Management

Location Strategies

Layout Strategies

Human Resources, Job Design, and Work Measurement

Supply-Chain Management

Outsourcing as a Supply-Chain Strategy

Inventory Management

Aggregate Planning

Material Requirements Planning MRP and ERP

Short-Term Scheduling

Just-In-Time and Lean Options

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters