Operations Management Mid-term Exam (April 23, 2013) Sangmyung University

Dept. No. Name

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
(32 X 0.5 points = 16 points)

1) All organizations, including service firms such as banks and hospitals, have a production 1) _______
function.

2) Operations management is the set of activities that creates value in the form of goods and 2) _______
services by transforming inputs into outputs.

3) One reason to study operations management is to learn how people organize themselves for 3) _______
productive enterprise.

4) Customer interaction is often high for manufacturing processes, but low for services. 4) _______

5) Manufacturing now constitutes the largest economic sector in postindustrial societies. 5) _______

6) A knowledge society is one that has migrated from work based on knowledge to one based on 6) _______
manual work.

7) Productivity is the total value of all inputs to the transformation process divided by the total 7) _______
value of the outputs produced.

8) Ethical and social dilemmas arise because stakeholders of a business have conflicting 8) _______
perspectives.

9) Production processes are being dispersed to take advantage of national differences in labor costs. 9) _______

10) One reason for global operations is to gain improvements in the supply chain. 10) ______

11) A product will always be in the same stage of its product life cycle regardless of the country. 11) ______

12) An organization's ability to generate unique advantages over competitors is central to a 12) ______
successful strategy implementation.

13) Most services are tangible; this factor determines how the ten decisions of operations 13) ______
management are handled differently for goods than for services.

14) Decisions that involve what is to be made and what is to be purchased fall under the heading of 14) ______
supply-chain management.

15) Southwest Airlines' core competence is operations. 15) ______

16) For the greatest chance of success, an organization's operations management strategy must 16) ______
support the company's strategy.

17) A product strategy may focus on differentiation, low cost, or rapid response. 17) ______

18) Political/legal change and economic change are both factors influencing market opportunities for 18) ______
new products.
 19) Robust design is a method that ensures that small variation in production or assembly does not 19) ______
adversely affect the product.

20) Rapidly developing products and moving them to the market is part of time-based competition. 20) ______

21) The customer may participate in the design of, and in the delivery of, services. 21) ______

22) The moment-of-truth is the crucial moment between the service provider and the customer that 22) ______
exemplifies, enhances, or detracts from the customer's expectation.

23) Modular design exists only in tangible products; it makes no sense in services. 23) ______

24) An operations manager's most ethical activity is to enhance productivity while delivering 24) ______
desired goods and services. Unfortunately, this activity is not environmentally sound.

25) In process-focused facilities, equipment utilization is low. 25) ______

26) The typical full-service restaurant uses a product-focused process. 26) ______

27) A value-stream map includes both (1) inventory quantities, and (2) symbols for customers and 27) ______
suppliers.

28) An example of the postponement strategy for improving service productivity is having the 28) ______
customer wait until you have sufficient time to serve the customer.

29) Process control is the use of information technology to monitor and control a physical process. 29) ______

30) Automated storage and retrieval systems are commonly used in distribution facilities of retailers. 30) ______

31) Successful process redesign focuses on departmental areas where small, continuous 31) ______
improvements can be made.

32) One use of camera-and-computer-based vision systems is to replace humans doing tedious and 32) ______
error-prone visual inspection activities.

MULTIPLE CHOICE.
Choose the one alternative that best completes the statement or answers the question.
(20 X 1 point = 20 points) (A 1, B 2, C 3, D 4, E 5)

33) The four R's of sustainability do not include 33) ______

A) recycling
B) regulations
C) responsibility
D) resources
E) reputation
34) Flexibility can be achieved with 34) ______
A) modular equipment
B) movable equipment
C) inexpensive equipment
D) sophisticated electronic equipment
E) all of the above

35) Which one of the following products is most likely made in a job shop environment? 35) ______
A) paper forms
B) television sets
C) canned vegetables
D) cigarettes
E) rolls of newsprint

36) Three types of processes are 36) ______

A) process focus, repetitive focus, and product focus
B) modular, continuous, and technological
C) manual, automated, and service
D) goods, services, and hybrids
E) input, transformation, and output

37) Which of the following characteristics best describes repetitive focus? 37) ______
A) Its output is a standardized product produced from modules.
B) Its costs are often known only after a job is done.
C) It uses sophisticated scheduling to accommodate custom orders.
D) Operators are broadly skilled.
E) It is widely used for the manufacture of steel.

38) Which service design technique(s) would ordinarily not be appropriate for full-service 38) ______
restaurant meals?
A) customization as late in the process as possible
B) reducing customer interaction
C) the moment of truth
D) modularizing the product
E) All of the above are appropriate.

39) A restaurant kitchen contains a wall poster that shows, for each sandwich on the menu, a sketch 39) ______
of the ingredients and how they are arranged to make the sandwich. This is an example of a(n)
A) route sheet
B) virtual technology
C) work order
D) bill of material
E) assembly drawing

40) Products are more "environmentally friendly" when they are made 40) ______
A) using cheaper materials
B) according to OSHA standards
C) more difficult to disassemble
D) using less energy
E) where environmental regulations are lax

41) An operations manager's ethical responsibilities 41) ______

 A) do not include being efficient with the firm's resources
B) are limited to the production phase of product life cycle
C) need not consider a product design's impact on the entire economy
D) are limited to following published laws and regulations
E) extend from design, to production, to final destruction/disposition of a product

42) Manufacturability and Value Engineering has which of the following benefits? 42) ______
I. Reduced complexity of the product
II. Reduction of environmental impact
III. Additional standardization of components
IV. Robust design
V. Improved job design and safety
A) IV
B) I, II, III, IV, V
C) II, IV
D) I, III, V
E) I, III, IV

43) Examples of response to the global environment include 43) ______

A) Boeing's worldwide sales and production
B) Ford's partnerships with Volvo and Mazda
C) Benneton's flexibility in design, production, and distribution
D) a Chinese manufacturer, Haier, opening plants in the United States
E) all of the above

44) Cost cutting in international operations can take place because of 44) ______
A) lower wage scales
B) less stringent regulations
C) lower indirect costs
D) lower taxes and tariffs
E) all of the above

45) According to the authors, which of the following strategic concepts allow firms to achieve their 45) ______
missions?
A) distinctive competency, cost leadership, and experience
B) productivity, efficiency, and quality leadership
C) differentiation, distinctive competency, quality leadership, and capacity
D) differentiation, cost leadership, and quick response
E) differentiation, quality leadership, and quick response

46) Which of the following statements best characterizes delivery reliability? 46) ______
A) a company that always delivers at the promised time
B) a company that delivers faster than its competitors
C) a company that always delivers on the same day of the week
D) a company that has a computerized delivery scheduling system
E) a company that delivers more frequently than its competitors

47) Quality function deployment (QFD) 47) ______

A) determines what will satisfy the customer
B) is used early in the design process
C) is used to determine where to deploy quality efforts
D) translates customer desires into the target design
 E) all of the above

48) Which of the following is not one of the Ten Critical Decisions of Operations Management? 48) ______
A) human resources and job design
B) managing quality
C) design of goods and services
D) location strategy
E) determining the financial leverage position

49) Which of the following is not among the ethical and social challenges facing operations 49) ______
managers?
A) honoring stakeholder commitments
B) efficiently developing and producing safe, quality products
C) maintaining a sustainable environment
D) increasing executive pay
E) providing a safe workplace

50) Three commonly used productivity variables are 50) ______

A) quality, efficiency, and low cost
B) technology, raw materials, and labor
C) labor, capital, and management
D) education, diet, and social overhead
E) quality, external elements, and precise units of measure

51) New trends in operations management include 51) ______

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

52) Which of the following are part of the Ten Critical Decisions of Operations Management? 52) ______
I. Design of goods and services
II. Managing Quality
III. Layout Strategy
IV. Marketing
V. Pricing of Goods and Services
A) II,III,V
B) I,II,IV
C) I,II,V
D) I,II,III
E) All of the above
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