Q1: Which one of the following statements regarding operations management is true? 

a. Inputs to a production system include capital and materials, but not human resources. 

b. Operations management deals only with manufacturing organizations because service organizations

do not have tangible outputs. 

c. Typical inputs to a production system are processes and consumer goods. 

d. Customer participation and information on performance are two special types of inputs to a

production system.

Q2: Operations management is part of a production system that can be described in the following

manner: 

Organization: inputs>processes>outputs.

Which one of the following correctly describes a production system?

a. Airline: pilots>planes>transportations

b. Bank: tellers>computer equipment>deposits

c. Furniture manufacturer: wood>sanding>chair

d. Telephone company: satellites>cables>communication

Q3: Which of the following is an example of a nested process?a. At the start of the new semester, a student first pays tuition and then goes to the bookstore.b. A customer service representative verifies a caller’s account information.c. A candidate’s intent to graduate is checked for financial holds by the Bursar and for degree requirements by Advising before the diploma mill prints their sheepskin.d. A stockbroker calls a client and advises her to sell silver short.

Q4: Which of the following statements is more of a general characteristic of a manufacturing organization, as compared to a service organization?a. Short-term demand tends to be highly variables.b. Operations are more capital intensive.c. Outputs are more intangible.d. Quality is more difficult to measure.

Q5: Which one of the following statements is more of a general characteristic of a service organization,

as compared to a manufacturing organization? 

a. Output can be inventoried. 

b. The response time is longer. 

c. There is less customer contact. 

d. The facilities tend to be smaller.

Q6: Service processes usually have: 

a. physical, durable output. 

b. low levels of customer contact. 

c. output that can be inventoried. 

d. slow levels of capital intensity.

Q7: Which of the following statements concerning manufacturing and service organizations is

generally true? 

a. A service facility is more likely to serve national or even international markets. 

b. Manufacturing organizations generally have more difficulty in matching capacity with demand. 

c. In many service organizations, such as hospitals and entertainment centers, customers

themselves are inputs to the transformation processes. 

d. Most service organizations can buffer themselves against uncertain demand by creating

inventories and smoothing output levels.

Q8: Refresh your understanding of the word customer in operations management and identify the

statement that is TRUE. 

a. Manufacturing systems can have only internal customers because other departments are

responsible for serving the external customer. 

b. Only service organizations have external customers because service is provided in the presence

of a customer. 

c. Customers can be internal or external in both manufacturing and service operations. 

d. The concept of an external customer is no longer relevant because delivery is given by third-party

distribution companies.

Q9: Which of the following statements is best? Operations management can be made more effective by:a. focusing on aspects of operations that are directly related to production.b. coordinating operations with other functional areas that impact operations.c. making production early enough so that stock-outs do not occur.d. coordinating all activities related to operations directly or indirectly, both within and outside the organization.

Q10: A set of activities that delivers value to external customers is a:

a. supply chain.

b. core process.

c. support process.

d. System

Q11: The process that facilitates the placement of orders and identifies, attracts, and builds

relationships with external customers is called the:

a. customer relationship process.

b. new service development process.

c. order fulfillment process.

d. supplier relationship process.

Q12: The process that includes the activities required to produce and deliver the service or product

to the customer is called the:

a. customer relationship process.

b. new service development process.

c. order fulfillment process.

d. supplier relationship process.

Q13: In response to social and political moves to discourage cigarette smoking, major cigarette

manufacturers have had to diversify into other products. Identifying the pressures against smoking is

an example of: 

a. environmental scanning.

b. market segmentation.

c. flow strategy.

d. mission statement development.

Q14: Monitoring trends in the industry, the marketplace, and society for potential opportunities or

threats is known as:

a. flow strategy.

b. market segmentation.

c. environmental scanning

d. mission statement development.

Q15: Core competencies are:a. product or service attributes that represent the needs of a particular market segment.b. another name for competitive priorities.c. various flow strategies.d. the unique resources and strengths that management considers when formulating strategy.

Q16: All of the following are core competencies except: 

a. facilities.

b. market and financial know-how.

c. systems and technology.

d. environmental scanning.

Q17: The Gap, Inc. has targeted teenagers and young adults needing casual clothes and, for its

GapKids stores, the parents or guardians of infants through 12-year-olds. This is an example of:

a. market segmentation.

b. a collaborative effort between the company and its customers.

c. a needs assessment.

d. a mission statement.

Q18: Competitive priorities define the dimensions on which the firm should excel with its products or services. Which one of the following statements regarding this concept is TRUE? a. The strategy of emphasizing lower price is most appropriate when the product is highly differentiated.b. McDonald’s restaurants emphasize high-performance design quality rather than consistent quality.c. All nine dimensions of competitive priorities should be equally emphasized in order to service the increasingly competitive market of the 1990s.d. Often there are trade-offs among competitive priorities; thus, the best emphasis is situational.

Q19: Competitive priorities state the dimensions on which a firm can excel. Which one of the following statements about each dimension is TRUE?a. Emphasizing low price is most appropriate for differentiated products in the growth stage of demand.b. A firm that intends to excel at top quality can succeed only when its production volume is very high.c. McDonald’s is a typical example of an organization that excels at volume flexibility rather than quality consistency.d. For a firm that gives top priority to customization, volumes for any individual product tend to be low.

Q20: A firm that competes based on development speed would not:

a. have critical suppliers participate in the process.

b. have a high level of cross-functional coordination between marketing and sales.

c. practice concurrent engineering.

d. have critical competitors engage in the design process.

Q21: The first three cars I bought all fell apart around 50,000 miles. It was called planned

obsolescence and no one seemed to care until companies entered the market and promised

70,000, then 80,000, and finally 100,000 warranties. What sets a great car apart from a good one

now is not the quality, which is assumed, but performance, safety and fuel economy. A car that can

achieve all three is highly sought after. In the automotive market, performance, safety and fuel

economy are sterling examples of:

a. order winners.

b. the voice of the engineer.

c. order qualifiers.

d. the voice of the customer.

Q22: An ethnic restaurant, in serving a lovely, four-hour, seven-course dinner for two for $250, is giving particular emphasis to which dimension of competitive priorities?a. Priceb. Consistent qualityc. Delivery speedd. Top quality

Q23: A company’s ability to reconfigure processes to meet diverse types of customer needs would be best described by:a. top quality.b. variety.c. customization.d. delivery speed.

Q24: In an assembly operation at a furniture factory, six employees assembled an average of 450

custom cabinet drawers per 5-day week. What is the labor productivity of this operation? 

a.90 chairs per worker per day 

b.20 chairs per worker per day

c.15 chairs per worker per day

d.75 chairs per worker per day

Q25: A manufacturing process requires 12 minutes of labor to make 10 units of production.

Which of the following actions will increase productivity?

1. Increase labor per 10 units of production

2.Decrease labor per 10 units of production

3. Increase number of units per 10 minutes of labor

4.Decrease number of units per 12 minutes of labor

a.1. and 3. only

b.2. and 4. only

c.1. and 4. only

d.2. and 3. Only

Q26: Which of the following would be considered an advantage of global competition? 

a. ability to safeguard proprietary technology in working with offshore suppliers 

b. a recent climate of low political risk and lessening nationalization 

c. high levels of worker skills in foreign countries mean less required training 

d. strong global competition and increased worldwide demand

Q27: Which one of the following statements concerning process management is best? 

a. Process management is a short-term decision, and thus it has a tactical rather than a

strategic focus.

b. Process changes should be made only when introducing new products or services. 

c. The variable underlying all four major process decisions is volume. 

d. A company’s operations strategy is the primary output of its major process decisions.

Q28: Several key decisions must be made in building an effective process design. Which one of the following best identifies them? a. Capital intensity, resource flexibility, facility location, process reengineering, and process choice b. Product or service life cycle, capital intensity, process reengineering, process choice, and customer involvement c. Capital intensity, process choice, inventory placement, resource flexibility, and customer involvement d. Capital intensity, resource flexibility, customer involvement, and process structure

Q29: A yacht maker produces customized yachts for a clientele that wants a one-of-a-kind

watercraft. This process is said to be:

a. divergent.

b. complex.

c. specialized.

d. hybrid.

Q30: The process structure that best describes a waiter’s position at a restaurant would be

classified as:

a. front office.

b. back office.

c. hybrid office.

d. inner office.

Q31: Field service representatives are classified as a:a. back office.b. hybrid office.c. front office.d. mid office.

Q32: Front offices typically emphasize:a. low cost operations and on-time delivery.

b. top quality and customization.c. on-time delivery and standardization.d. top quality and low cost operations.

Q33: Which of the following is sometimes called mass production? a. Batch process and make-to-order strategyb. Line process and make-to-stock strategyc. Continuous flow process and assemble-to-order strategyd. Job process and make-to-order strategy

Q34: A job process should be preferred when:

a. workforce and equipment are specialized.

b. products are made to stock type.

c. customization is high and volume is low.

d. customization is low and volume is high.

Q35: Which of the following statements about process choice is best? 

a. A batch process typically has a standard sequence of operations through the facility. 

b. Automobiles and appliances are examples of products created using a continuous flow process. 

c. Continuous flow processes are very capital intensive. 

d. A custom cake operation is an example of a batch process.

Q36: The product-process matrix used to analyze manufacturing operations brings together the

elements of:

a. volume, process, and intensity.

b. process, intensity, and product design.

c. intensity, volume, and process.

d. customization, volume, and process.

Q37: Which one of the following statements about process management is best? 

a. When customization must be high, equipment should be general purpose, and employees need to

perform a broader range of duties. 

b. the traditional relationship between capital intensity and resource flexibility is that if one is high,

so is the other. 

c. Creating a more capital-intensive process tends to reduce the fixed cost and raise the variable

unit cost. 

d. Economies of scope mean that a process should be devoted to a single product or service to

achieve high volumes.

Q38: A company is considering two options for the production of a part needed downstream in the

manufacturing process. Particulars are as follows: 

Specialized automation: Fixed Costs = $9,000 / month

Variable Cost / Unit = $2 

General automation: Fixed Costs = $3,000 / month, Variable Cost / Unit = $5 What is the monthly

break-even quantity for choosing between the two automation approaches? 

a.1,000 units 

b.2,000 units 

c.6,000 units

d.12,000 units

Q39: Low capital intensity is generally associated with: a. low resource flexibility.b. high customer involvement. c. high levels of fixed automation.d. high volumes.

Q40: For a monthly volume of 3,000 units, which automation approach should be chosen?a. Specialized automation b. General automationc. Either approach is acceptable, because costs are the same for either option at 3,000 units.d. Can’t be determined with information given.

Q41: What does the company save each month by selecting this low-cost option (for monthly requirements of 3,000 units)?a.$1,000b.$3,000 c.$6,000d. Can’t be determined with information given.

Q42: More fixed automation typically means: 

a. decreased labor productivity.

b. longer cycle time. 

c. higher demand volumes.

d. lower sales.

Q43: Which of the following statements regarding capital intensity is NOT true? 

a. Capital intensity can be a prohibitive investment for low-volume operations. 

b. Decreased amounts of automation increase capital intensity. 

c. Automation refers to a system or piece of equipment that is self-regulating and self-acting. 

d. Leasing is a method to acquire equipment while defraying financial risk.

Q44: Which one of the following statements about flexible automation is best? 

a. Investment cost is lower when a transfer machine handles many operations. 

b. Chemical processing plants and oil refineries mainly utilize programmable automation. 

c. It is an automatic process that can be reprogrammed to handle various products. 

d. It achieves top efficiency; accommodating new products is difficult and costly.

Q45: As it relates to process management, the concept of a flexible workforce is defined as:

a. a labor force that often changes in size because of hiring and firings. 

b. workers who are willing to work large amounts of overtime when necessary. 

c. workers who are capable of performing many different tasks. 

d. a labor force with a high turnover rate.

Q46: One method for a factory to gain operational focus is to:a. build large enough factories to produce all products and services the company offers. b. hire more specialists and supervisors to control the operations. c. reorganize existing facilities to the plant-within-plant approach. d. remodel stores to create the effect of many small boutiques under one roof.

Q47: Which one of the following statements concerning process reengineering is not true? 

a. Reengineering is the fundamental rethinking and radical design of business processes. 

b. Reengineering efforts should focus on functional departments. 

c. Information technology is a major enabler of reengineering. 

d. Reengineering requires a “clean slate” philosophy.

Q48: Which statement on reengineering and process improvement is best? 

a. Only process improvement programs make use of cross-functional teams. 

b. Process improvement focuses only on critical or core processes such as order fulfillment. 

c. Reengineering starts with a “clean slate” whereas process improvement looks for ways to

incrementally improve. 

d. Only reengineering focuses on business processes.

Q49: A team consisting of members from each functional area affected by the process change is

referred to as a(n):

a. reengineering team.

b. cross-functional team.

c. process team.

d. improvement team.

Q50: Process analysis focuses on:

a. how work is actually done.

b. who is responsible for the customer.

c. the customer’s needs.

d. the number of steps in between supplier and customer.

Q51: A voluntary system by which employees submit their ideas on process improvements is called:

a. process contribution.

b. a suggestion system.

c. a brainstorming session.

d. a Pareto system.

Q52: The step in process analysis that immediately follows the scope definition phase is the:

a. document process phase.

b. evaluate performance phase.

c. redesign process phase.

d. implement changes phase.

Q53: The step in process analysis that immediately follows the performance evaluation phase is the:

a. document process phase.

b. define scope phase.

c. redesign process phase.

d. implement changes phase.

Q54: A systematic approach to process analysis includes the step:

a. reengineering.

b. integration.

c. order fulfillment.

d. define scope.

Q55: Performance measures such as average response times, repair times, and percent defective are referred to as:a. benchmarks.b. metrics.c. targets.d. tactics.

Q56: A flowchart traces the flow of all EXCEPT the following:

a. information through a process

b. customers through a process

c. equipment through a process

d. safety regulations through a process

Q57: A flowchart created at the strategic level of an organization should show:

a. core processes and their linkages.

b. details of a process as bracketed by its scope.

c. individual steps that may have been aggregated at a higher level of analysis.

d. areas that are seen and unseen by the customer.

Q58: Cross-functional coordination is at particular risk where:

a. there is low process divergence.

b. there are handoffs in the process.

c. functional silos exist.

d. it is not possible to create a flowchart.

Q59: An effective tool for showing steps of a service process with a high level of customer contact is a:a. Pareto chart.b. flowchart.c. service blueprint.d. check sheet.

Q60: A process chart activity that changes, creates, or adds something is a(n):

a. operation.

b. transportation.

c. inspection.

d. delay.

Q61: Which one of the following groups of activities is likely to be shown on a process chart? 

a. Operation, inspection, delay 

b. Operation, capital intensity, flow strategy 

c. Transportation, material flow, physical layout 

d. Storage, delay, personnel involved

Q62: A professor can grade a quiz in 30 seconds. Over the course of an academic year he has 6

sections of a course with an average of 30 students with 10 quizzes in each section. If he is paid

$40 an hour, how much is his annual quiz-grading labor cost to the university?

a.$60

b.$100

c.$600

d.$36,000

Q63: A welder can weld 2 angle irons together in 2 minutes. Over the course of an entire year she

will assemble 1,000 units, each of which requires 3 such welds (i.e., welding two angle irons

together is one step, and three such steps are needed per unit). If she is paid $25 an hour, how

much is her annual welding labor cost?

a.$1,000

b.$1,250

c.$2,500

d.$3,000

Q64: ____ estimates the proportion of time spent by people or machines on different activities, based on randomized observations over time. a. The time study methodb. The elemental standard data approachc. The predetermined data approachd. The work sampling method

Q65: All of the following are steps in setting a time standard using the time study method EXCEPT:a. consulting cost accounting data.b. selecting the work elements.c. determining the sample size.d. timing the elements.

Q66: ____ uses a published database of normal times for a full array of micro-motions that make up the

elements of task being studied. 

a. The time study method

b. The elemental standard data approach

c. The predetermined data approach

d. The work sampling method

Q67: Which one of the following statements about work measurement is TRUE? a. Work sampling is a technique to determine the proportion of time spent on different activities. b. In determining the normal time for the cycle, using a rating factor less than one (1.0) will increase the total time allowed for a job to be performed, relative to the select time. c. Performance rating factors are not needed in the derivation of time standards. d. The time study method is most appropriate for non-repetitive jobs in which the nature of the task differs each time.

Q68: A manager is interested in setting a time standard for a machining operation. Which one of the following is LEAST likely to be of use? a. Time-study methodb. Elemental standard data approach c. Predetermined data approachd. Work sampling method

Q69: Which work measurement technique breaks down tasks into a series of generic micro-motions? 

a. Time study method

b. Elemental standard data approach 

c. Predetermined data approach

d. Work-sampling method

Q70: A Manager of a fiberglass moulding operation suspects that the number of process failures is

related to the number of total units produced of a particular product. A tool most useful in this

analysis would be a: 

a. checklist.

b. cause-and-effect diagram. 

c. Pareto chart.

d. scatter diagram.

Q71: Which one of the following techniques will help management trace customer complaints

directly to the process involved? 

a. Cause-and-effect diagram

b. Quality circles 

c. Quality engineering

d. Specification management

Q72: A good brainstorming session has the characteristic of:

a. good judgment skills.

b. ability to think of creative ideas.

c. skill in identifying the best payoffs.

d. ability to analyze a process analytically.

Q73: Benchmarking involves four basic steps, which are: 

a. plan, do, check, and act. 

b. planning, analysis, integration, and action. 

c. search, check, systematize, and act. 

d. find, do, change, and calibrate.

Q74: An accounting firm realizes it is woefully inadequate at cultivating new clients. It is allowed to

observe a rival firm perform the new-client cultivation process in hopes of gleaning improved methods

it can adopt. This is an example of:

a. competitive benchmarking.

b. functional benchmarking.

c. internal benchmarking.

d. generic benchmarking.

Q75: An accounting professor realizes she is woefully inadequate at performing research. She discusses the art of research with a colleague and gains important insights that permit her to establish a research agenda. This is an example of:a. competitive benchmarking.b. functional benchmarking.c. internal benchmarking.d. generic benchmarking.

Q76: A benchmarking team meets for the first time and decides to try to improve its order delivery

time and selects another firm as a benchmarking partner. This phase of the benchmarking process is

called:

a. planning.

b. selection.

c. integration.

d. action.

Q77: Which one of the following statements about benchmarking is TRUE? 

a. Benchmarking is useful only when a company compares itself against other companies. 

b. Because of the power of benchmarking, specific plans of action are not necessary. 

c. Benchmarking is the same as the plan-do-check-act cycle in continuous improvement. 

d. Benchmarking focuses on setting quantitative goals for continuous improvement.

Q78: When managing processes, it is vital that:

a. attention is paid to competitive priorities and strategic fit.

b. design teams are allowed to function creatively and set their own charter.

c. design teams are not held accountable since their involvement ends once the new process rolls out.

d. the organization is not satisfied unless fundamental reengineering changes are made

Q79: Which statement about economies of scope is not true? 

a. Economies of scope are often attained through programmable automation. 

b. Economies of scope bring together two competitive priorities—customization and low price. 

c. Economies of scope reflect the ability to produce multiple products more cheaply in combination

than separately. 

d. Economies of scope reflect low capital intensity and high resource flexibility

Q80: A time study analyst is attempting to determine the standard time for a work element. She observes a worker performing the work element at a higher-than-average pace. How will this fact be reflected in the time standard that is eventually created? a. The frequency of the work element per cycle will be increased. b. The proportion of allowance time will be increased above 1.0. c. The performance rating factor will be set greater than 1.0. d. The normal time for the work element will be increased.

Q81: The details of weekly output and input for a fabrication process are as follows: output is 400 units,

with a standard selling price of $100 per unit. For the week, total labor costs are: 10 workers at 40

hours for the week, paid $15 per hour. Total material costs for the 400 units are $5,000. Weekly

overhead is charged at the rate of 1.5 times the labor costs. What is the multifactor productivity for the

week?

a. 0.02 

b.0.75 

c.1.50

d.2.00

Four core processes or Supply chain

1. supplier relationship process

2.new service/product development process

3.order fulfillment process 

4.Customer relationship process.

Competitive priorities: the critical dimensions that a process or supply chain must possess to satisfy its

internal or external customers, both now and in the future.

Job Shop is a manufacturer’s operation that specializes in low-to-medium-volume production and

utilizes job or batch processes. CUSTOMIZES

Assemble-to-order strategy is a strategy for producing a wide variety of products from relatively few

subassemblies and components after the customer orders are received. FLEXIBLITY

Fixed automation: a manufacturing process that produces 1 type of part or product in a fixed

sequence of simple operations.

Flexible automation is manufacturing process that can be changed easily to handle various products.

Environmental scanning: the process by which managers monitor trends in the environment for

potential opportunities or threats.

Order qualifier is a demonstrated level of performance of an order winner that is required for a firm to

do business in a particular market segment.

Reengineering is the fundamental rethinking and radical redesign of processes to improve

performance dramatically in terms of cost quality, service, and speed.

Elemental standard data: a database of standards compiled by a firm’s analysts for basic elements

that they can draw on later to estimate the time required for a particular job, which is most

appropriate when products or services are highly customized, job processes prevail, and process

divergence is great.

Steps in time study Formula:

1.selecting elements2.timing the elements3.Determining sample size4.Setting the final standard

4 steps of Benchmarking

1.Plan2.Analysis3.Integration 4.Action

Allowance Factors is time added to the normal time to adjust for certain factors.

Internal Benchmarking involves using an organizational unit with superior performance as the

benchmark for other units.

Competitive benchmarking is comparisons with a direct industry competitor.

Functional Benchmarking compares areas such as administration, customer service, and sales

operations with those outstanding firms in an industry.

1 2 3 4 5 6 7 8 9 10

11 12 13 14 15 16 17 18 19 20

21 22 23 24 25 26 27 28 29 30

31 32 33 34 35 36 37 38 39 40

41 42 43 44 45 46 47 48 49 50

51 52 53 54 55 56 57 58 59 60

61 62 63 64 65 66 67 68 69 70

71 72 73 74 75 76 77 78 79 80

81

1D 2C 3C 4B 5D 6D 7C 8C 9D 10DB

11A 12C 13A 14C 15D 16AD 17A 18AD 19CD 20D

21A 22AD 23C 24C 25D 26D 27AC 28D 29CA 30A

31C 32B 33DB 34C 35AC 36D 37A 38XB 39B 40A

41AB 42AC 43AB 44C 45C 46C 47B 48C 49B 50A

51C 52A 53DC 54BD 55AB 56D 57A 58B 59C 60A

61A 62C 63C 64AD 65A 66C 67A 68BD 69BC 70D

71A 72B 73B 74A 75C 76BA 77D 78A 79BD 80BC