Operations management is concerned with the _________ of a firm's productive systems.

a. design
b. operation
c. improvement
d. All of these answer choices are correct.

All of these answer choices are correct.

The transformation process associated with health care is best described as

a. locational
b. exchange
c. physiological
d. informational

Physiological

All of the following are transformation processes discussed in the text except
a. physiological.
b. locational.
c. exchange.
d. spiritual.

Spiritual

Which of the following is not one of the four primary functional areas of a firm?
a. human resources
b. legal
c. marketing
d. operations

Legal

All of the following are responsibilities of operations managers except

a. acquiring financial resources
b. managing inventories
c. planning production
d. scheduling production

Acquiring financial resources

Which of the following is not an event or concept associated with the quality revolution?
a. TQM (total quality management)
b. Internet
c. Six Sigma
d. JIT

Internet

Linear programming, waiting line, simulation, and PERT/CPM are all elements of which era of
operations and supply chain management?
a) Quality Research
b) Operations Research
c) Internet Revolution
d) Globalization

Operations Research

Dividing a job into a series of small tasks, each performed by a different worker, is known as
a. craft production
b. scientific management
c. division of labor
d. interchangeable parts

Division of Labor

The most recent era in the evolution of operations and supply chain management is
a. Internet Revolution
b. Sustainability
c. Globalization
d. Quality Revolution

Sustainability

Sustainability, in it's broadest sense, include(s)

a. using resources wisely.
b. treating workers with respect.
c. establishing a business model of shared values.
d. All of these answer choices are correct.

All of these answer choices are correct.

Mass production is well suited to all of the following except

a. producing large volumes of goods quickly.
b. adapting quickly to changes in market demand.
c. producing standardized products for a large market.
d. All of these answer choices are correct.

Adapting quickly to changes in market demand.

The major factors impacting globalization of the supply chain include all the following except
a. falling trade barriers.
b. the Internet.
c. declining union membership.
d. All these answer choices are correct.

Declining union membership

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Companies go global to
a. take advantage of favorable costs.
b. to keep abreast of trends and access new
technologies.
c. to build reliable sources of supply.
d. All of these answer choices are correct.

All of these answer choices are correct

A manager of a global supply chain is concerned with all the following except
a. timeliness.
b. quality.
c. social issues.
d. All of these answer choices are correct.

Social Issues

The ratio of a firm's monthly output to the number of labor hours used in the same month would be
a measure of
a. labor productivity.
b. capital productivity.
c. machine productivity.
d. multifactor productivity.

Labor productivity

The production system that prizes flexibility and quality over efficiency and quantity is known as
a. mass production.
b. craft production.
c. lean production.
d. electronic commerce.

Lean production

Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From the following
data calculate the labor productivity.
Labor rate $20
Machine rate $15
Units produced 50,000
Labor hours 4,000
Machine hours 2,000
Cost of materials $20,000
Cost of energy $5,000
a. 0.370
b. 0.625
c. 1.500
d. 1.667

Units/Hours*Rate
50,000/4,000*20
50,000/80,000=0.625

0.625

Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From the following
data calculate the machine productivity.
Labor rate $20
Machine rate $15
Units produced 50,000
Labor hours 4,000
Machine hours 2,000
Cost of materials $20,000
Cost of energy $5,000
a. 0..370
b. 0.625
c. 1.500
d. 1.667

Units/Hours*Rate
50,000/2,000*15
50,000/30,000=1.6666

1.667

Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From the following
raw data calculate the multifactor productivity.
Labor rate $20
Machine rate $15
Units produced 50,000
Labor hours 4,000
Machine hours 2,000
Cost of materials $20,000
Cost of energy $5,000
a. 0.370
b. 0.625
c. 1.500
d. 1.667

0.370

Snacknow, a food service firm, is calculating its monthly productivity report. From the following raw
data calculate the labor productivity.
Labor rate $10
Units produced 10,000
Labor hours 1,000
Cost of materials $2000
Cost of energy $500
a. 0.220
b. 0.476
c. 0.800
d. 1.000

1.000

Snacknow, a food service firm, is calculating its monthly productivity report. From the following data
calculate the energy productivity.
Labor rate $10
Units produced 10,000
Labor hours 1,000
Cost of materials $2000
Cost of energy $500
a. 0.220
b. 2
c. 10
d. 20

20

Snacknow, a food service firm, is calculating its monthly productivity report. From the following data
calculate the multifactor productivity.
Labor rate $20
Units produced 10,000
Labor hours 1,000
Cost of materials $2000
Cost of energy $500
a. 0.220
b. 0.476
c. 0.800
d. 1.000

0.800

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_____________ is how the mission of a firm is accomplished.

a. Strategy
b. Design
c. An operational decision
d. None of these answer choices is correct.

Strategy

_____________ represents what the firm is in the business of doing.

a. Primary task
b. Core competency
c. Positioning
d. Deploying

Primary task

_____________ is what the firm does better than anyone else.

a. Primary task
b. Core competency
c. Positioning
d. Deploying

Core competency
_____________ are the characteristics of a product that qualify it to be considered for purchase by a
customer.
a. Order winners
b. Order qualifiers
c. Core competency
d. Positioning

Order qualifiers

_____________ is the characteristic of a product that wins the order in the marketplace.
a. Order winners
b. Order qualifiers
c. Core competency
d. Positioning

Order winners

_________________is what the firm does better than anyone else.

a. Order qualifiers
b. Core competency
c. Positioning
d. Deploying

Core competency

______________ focus(es) the organization on common goals that can be translated into
measurable objectives.
a. Order winners
b. Core competency
c. Positioning
d. Deploying the strategy

Deploying the strategy

Companies that compete on ______________ are able to produce a wide variety of products in
response to customer needs.
a. cost
b. speed
c. flexibility
d. quality

Flexibility

Companies that compete on ______________ pursue the elimination of all waste.

a. cost
b. speed
c. flexibility
d. quality

Quality

Companies that compete on ______________ recognize the advantages of time-based competition.

a. cost
b. speed
c. flexibility
d. quality

Speed

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Companies that compete on ______________ focus on pleasing customers and satisfying their
expectations.
a. cost
b. speed
c. flexibility
d. quality

Quality

The balanced scorecard examines a firm's performance in all the following critical areas except
a. finances
b. customers
c. processes
d. All of these answer choices are correct.

All of these answer choices are correct

The ____________ function helps strategy evolve by creating new ways of delivering a firm's
competitive priorities.
a. finance
b. marketing
c. operations
d. None of the answer choices is correct.

Operations

Companies that compete on _________________ establish a corporate culture that encourages risk.
a. Innovation
b. Quality
c. Flexibility
d. Cost

Innovation

A(n) ____________ strategy involves a series of integrated decisions on processes, facilities,

technology, quality, capacity, etc.
a. finance
b. marketing
c. operations
d. None of these answer choices is correct.

Operations
All of the following are parts of DMAIC except
a) define.
b) measure.
c) analyze.
d) improvise.

Improvise

Which of the following is not a dimension of quality for a manufactured good?

a. performance
b. reliability
c. courtesy
d. durability

Courtesy

All of the following are dimensions of quality for manufactured products, except
a. conformance.
b. reliability.
c. durability.
d. feasibility.

Feasibility

The probability that a product will operate properly within an expected timeframe is the dimension
of quality known as
a. durability.
b. reliability.
c. performance.
d. serviceability.

Reliability

The degree to which a product meets pre-established standards is known as

a. conformance.
b. performance.
c. reliability.
d. None of these answer choices is correct.

Conformance

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Making sure that the product meets the design specifications during production is referred to as
a. quality of design.
b. process capability.
c. fitness for use.
d. quality of conformance.

Quality of Conformance
W. Edwards Deming believed that primary responsibility for quality improvement rested with
a. the firm's employees only.
b. the fIrm's management only.
c. research engineers and consulting statisticians only.
d. both the employees and management of the firm.

Both the employees and management of the firm.

W. Edwards Deming's overall philosophy for achieving quality is embodied in

a. his 14 points.
b. his statement of purpose.
c. his use of statistical control.
d. None of these answer choices is correct.

His 14 points

A relationship between a firm and its supplier where the supplier agrees to meet the firms' quality
standards and the firm enters into a long-term purchasing agreement with the supplier is known as
a. Outsourcing.
b. vertical integration.
c. partnering.
d. conformance.

Partnering

Directly involving employees in the quality management process is referred to as

a. partnering.
b. a quality circle.
c. Six Sigma.
d. participative problem solving.

Participative problem solving

The costs associated with developing a quality management system are known as
a) training costs.
b) design costs.
c) quality planning costs.
d) information costs.

Quality planning costs

______ failure costs include scrap, rework, and downtime.

a) External
b) Internal
c) Process
d) System

Internal

Which of the following quality tools display major causes of poor quality on a graph?
a. Process flow chart
b. Fishbone diagram
c. Histogram
d. Scatter diagram

Fishbone diagram

Which of the following quality tools displays the frequency of data related to a quality problem?
a. Fishbone diagram
b. Histogram
c. Scatter diagram
d. Process flow chart

Histogram

Which of the following quality tools displays the relationship between two variables on a graph
a. Process flow chart
b. Fishbone diagram
c. Histogram
d. Scatter diagram

Scatter diagram

Which of the following quality tools displays the steps in a process on a graph
a. Process flow chart
b. Fishbone diagram
c. Histogram
d. Scatter diagram

Process flow chart

Total quality management (TQM) was originated in the 1980s as a _____________ management
approach to improve quality.
a. Korean
b. American
c. Japanese
d. European

Japanese

Which of the following is not a basic principle of total quality management (TQM)?
a. Quality must be measured.
b. The quality standard is no defects.
c. Quality can and must be managed.
d. The producer defines quality.

The producer defines quality

A ____________________ is a system that achieves customer satisfaction and complements other

company systems.
a. quality management system
b. total quality system
c. quality productivity system
d. None of these answer choices is correct.

Quality management system

Research has shown that companies achieving high customer satisfaction ratings
a. attract new suppliers.
b. retain existing customers.
c. attract new employees.
d. None of these answer choices is correct.

Retain existing customers

A relationship between a company and a supplier based on mutual quality standards is called
a. sourcing.
b. partnering.
c. sourcing and partnering
d. None of these answer choices is correct.

Partnering

The primary means for gathering information from customers and measuring customer satisfaction
is
a. a sampling program.
b. a phone interview.
c. feedback from competitors.
d. a survey.

A survey

A(n) ____________ is the best level of quality achievement in one company that others seek to
match or exceed.
a. attribute
b. target value
c. benchmark
d. variable

Benchmark

_____________________ is an important measure of service quality that is not difficult to measure.

a. Timeliness
b. Benchmarking
c. Kaizen
d. Participative problem solving

Timeliness

The Six Sigma quality goal is 3.4 defects per ___________________ opportunities.
a. hundred
b. thousand
c. million
d. billion

Million

At the heart of Six Sigma is the ____________________ strategy, a five-step process applied to
improvement projects.
a. continuous improvement
b. breakthrough
c. champion
d. None of these answer choices is correct.

Breakthrough

Quality costs include the cost of _____________________.

a. achieving good quality
b. poor quality
c. both achieving good quality and generating poor quality
d. None of these answer choices is correct.

Both achieving good quality and generating poor quality

The cost of achieving good quality includes

a. prevention costs.
b. internal failure costs.
c. external failure costs.
d. None of these answer choices is correct.

Prevention costs

The cost of achieving poor quality includes

a. prevention costs.
b. appraisal costs.
c. internal failure costs.
d. All of these answer choices are correct.

Appraisal costs

Design can provide a competitive edge by

a. bringing products to market quickly.
b. doing an even better job of satisfying customers.
c. being easier to manufacture, use and repair.
d. All these answer choices are correct.

All these answer choices are correct

Which of the following is not a characteristic of an effective product design process?

a. matches product characteristics with customer requirements
b. maximizes the revisions necessary to make a design workable
c. ensures that customer requirements are met in the least costly and simplest
manner
d. reduces the time required to design a new product or service

Maximizes the revisions necessary to make a design workable

All of the following are characteristics of an effective design process except

a. increasing the design time for new products and services.
b. meeting customer requirements in the least costly manner.
c. matching product or service characteristics with customer requirements.
d. minimizing the number of revisions needed to make the design workable.

Increasing the design time for new products and services.

Carefully dismantling and inspecting a competitor's product to look for design
features that can be incorporated into your own product is known as
a. concurrent design.
b. design for manufacturability.
c. benchmarking.
d. reverse engineering.

Reverse engineering

If a firm's design process is too lengthy

a. a competitor may capture market share by being first to market.
b. a competitor may lose market share by being first to market.
c. a competitor may decide not to enter the market.
d. None of these answers is correct.

A competitor may capture market share by being first to market.

Product design begins with

a. a feasibility study.
b. a form design.
c. understanding the customer and identifying customer needs.
d. pilot runs and final tests.

Understanding the customer and identifying customer needs

A feasibility study consists of all the following except

a. a market analysis.
b. an economic analysis.
c. a technical and strategic analysis.
d. a concurrent analysis.

A concurrent analysis

____________________ describe(s) what the product should do to satisfy customer

needs.
a. Performance specifications
b. Benchmarks
c. Perceptual maps
d. Reverse engineering

Performance specifications

Creating a preliminary design that can be quickly tested and then either discarded or further refined
is referred to as

a. Benchmarking.
b. rapid prototyping.
c. concurrent design.
d. perceptual mapping.

Rapid prototyping
The probability that a product will perform its intended function for a specified length of time under
normal conditions is called

a. benchmarking.
b. perceptual mapping.
c. Maintainability.
d. Reliability.

Reliability

All of the following can improve a product's reliability except

a. simplifying product design.
b. improving individual component reliability.
c. changing the product warranty.
d. adding redundant components..

Changing the product warranty

Combining standardized building blocks in different ways to create unique finished products is
known as
a. rapid prototyping.
b. robust design.
c. modular design.
d. concurrent design.

Modular design

Functional design includes all the following except

a. reliability.
b. usability.
c. form design.
d. maintainability.

Form design

____________________ is a software system that facilitates collaborative design and

development among trading partners.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
d. None of these answer choices is correct.

Collaborative product design

____________________ is a software system that assists in the creation, modification

and analysis of design.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
d. None of these answer choices is correct.

Computer aided design

____________________ is a software system that retrieves the description and
geometry of a design from a database, and tests and analyzes that design on a
computer screen.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
d. None of these answer choices is correct.

Computer aided engineering

____________________ is a software system that stores, retrieves and updates design

data through the lifecycle of a product.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
d. None of these answer choices is correct.

None of these answer choices is correct

Product lifecycle management is a software system that

a. facilitates collaborative design and development among trading partners.
b. stores, retrieves and updates design data through the lifecycle of a product.
c. retrieves the description and geometry of a design from a database, and tests
and analyzes that design on a computer screen.
d. assists in the creation, modification and analysis of design.

Stores, retrieves and updates design data through the lifecycle of a product

Which of the following is not a characteristic of a service?

a. Intangible
b. Variable output
c. Difficult to emulate
d. Perishable

Difficult to emulate

Which of the following is not a characteristic of a service?

a. Tangible
b. Variable output
c. Difficult to emulate
d. Perishable

Tangible

A grocery store is an example of a

a. service factory.
b. mass service.
c. service shop.
d. professional service.

Mass service
A teacher is an example of a
a. service factory.
b. mass service.
c. service shop.
d. professional service.

Service shop

Changing management's traditional control-oriented relationship with employees to one of

cooperation, mutual trust and teamwork requires a
a. short term commitment to aggressive contractual planning.
b. medium term commitment to dramatic organizational design.
c. long term focus commitment as a key part of the strategic design.
d. None of these answer choices is correct.

Medium term commitment to dramatic organizational design.

Achieving a company's strategic goals for quality and customer satisfaction require
a. team work.
b. group participation.
c. both team work and group participation.
d. None of these answer choices is correct.

Both team work and group participation

Which of the following is not a serious disadvantage of scientific management?

a. workers become bored
b. opportunities to acquire new skills sets is limited
c. workers are required to perform repetitive motions
d. worker output is increased

Worker output is increased

Motivation is a willingness to work hard because doing so

a. satisfies employer needs.
b. satisfies employee needs.
c. satisfies both employee and employer needs.
d. None of these answer choices is correct.

Satisfies employee needs

Which of the following elements has not been shown to improve motivation?
a. fair treatment of workers
b. negative feedback and punishment
c. empowerment
d. restructuring of jobs

Negative feedback and punishment

All of the following are advantages of task specialization except

a. increased output.
b. lower labor costs.
c. reduced boredom.
d. minimal training.

Reduced boredom

Scientific management involves all the following except

a. breaking down jobs into their simplest elements.
b. eliminating unnecessary motions.
c. hiring only highly trained workers.
d. assigning tasks to workers.

Hiring only highly trained workers

The development of the assembly line by Henry Ford is based on the principles of
a. scientific management.
b. mass production.
c. both scientific management and mass production.
d. None of these answer choices is correct.

Both scientific management and mass production.

Research has shown the success of Japanese companies operating production facilities in the
United States is due to
a. cultural factors.
b. management practices.
c. superiority of American workers.
d. None of these answer choices is correct.

Management practices

Which of the following is not a contemporary trend in human resource

management?
a. cross training
b. flexible work schedules
c. telecommuting
d. reduced work week for full time employees

Flexible work schedules

Assigning a worker a complete unit of work with clearly defined start and end points
is referred to as
a. vertical job enlargement.
b. job rotation.
c. horizontal job enlargement.
d. empowerment.

Horizontal job enlargement

Allowing employees more control over their own work and some of the supervisory
responsibilities is known as
a. vertical job enlargement.
b. empowerment.
c. horizontal job enlargement.
d. cross training.

Vertical job enlargement

______________ gives employees the responsibility and authority to make decisions.

a. Cross training
b. Empowerment
c. Job rotation
d. Horizontal job enlargement

Empowerment

Which of the following is not a principle for job enrichment?

a. provide additional authority and freedom
b. vertical job enlargement
c. make periodic reports available to workers
d. introduce simple, repetitive tasks

Make periodic reports available to workers

Advantages of empowerment include all of the following except

a. more attention to product quality.
b. higher productivity.
c. abuse of power.
d. more satisfying work.

Abuse of power

Empowerment involves giving employees _________________ to make

decisions.
a. responsibility
b. authority
c. both responsibility and authority
d. None of these answer choices is correct.

Both responsibility and authority

Advantages of telecommuting include all of the following except

a. reduced turnover.
b. decreased absenteeism and leave usage.
c. flexible work schedules.
d. direct visual surveillance of employees.

Direct visual surveillance of employees.

A trend among service companies, in particular, is the use of

a. temporary and part-time employees.
b. telecommuting.
c. flexible work schedules.
d. teamwork.

Flexible work schedules

An incentive plan that encourages employees to achieve a company's goals and
objectives is referred to as
a. a piece-rate wage plan.
b. gainsharing.
c. profit sharing.
d. overtime.

Gainsharing

The two traditional forms of employee compensation include

a. hourly wage and individual incentive.
b. hourly wage and profit sharing.
c. salary and individual incentive.
d. hourly wage and gainsharing.

Hourly wage and individual incentive

In a piece-rate wage system a worker's pay is based on

a. total output.
b. job rating.
c. job classification.
d. total time

Total output

__________________ is an incentive plan that joins employees in common to achieve

company objectives in which they share in the gains.
a. Profit sharing
b. Gainsharing
c. Performance pay
d. None of these answer choices is correct

Gainsharing

Which of the following developments has resulted in global diversity issues?

a. globalization of companies
b. global teams
c. global outsourcing
d. All of these answer choices are correct.

All of these answer choices are correct.

The process of creating a work environment where employees can contribute to

their full potential is
a. diversity.
b. equal opportunity.
c. affirmative action.
d. None of these answer choices is correct.

Equal opportunity

Setting goals and timetables to increase the level of participation by women and
minorities to attain parity levels in a company's workforce is called
a. diversity.
b. equal opportunity.
c. affirmative action.
d. None of these answer choices is correct.

Affirmative actions

Managing ___________________ includes education, awareness,

communication, fairness and commitment.
a. diversity
b. equal opportunity
c. affirmative action
d, None of these answer choices is correct

Diversity

The elements of job design include

a. task analysis.
b. worker analysis.
c. environmental analysis.
d. All of these answer choices are correct.

All of these answer choices are correct.

Determining how tasks fit together to form a job is referred to as

a. worker analysis.
b. task analysis.
c. environmental analysis.
d. ergonomics.

Task analysis

Fitting the task to the employee in a work environment is known as

a. motivation.
b. worker analysis.
c. ergonomics.
d. task analysis

Ergonomics

_________________ refers to the physical location of a job and the requisite

surroundings.
a. Task analysis
b. Worker analysis
c. Methods analysis
d. Environmental analysis

Environmental analysis

Which of the following would most likely be used to redesign or improve existing jobs?
a. methods analysis
b technology analysis
c environmental analysis
d task analysis

Methods analysis

A(n) __________________ is used to graphically analyze how the steps of a job fit
together into the overall flow of the production process.
a. methods analysis
b. process flowchart
c. task analysis
d. enivornmental analysis

Process flowchart

______________ involves the horizontal movement of a worker between two or more jobs.
a. Cross training
b. Empowerment
c. Alternative workplace
d. Job rotation

Job rotation

Motion study, the study of the individual human motions used in a task, was developed
by
a. Henry Ford.
b. F. W. Taylor.
c. Frank and Lillian Gilbreth.
d. Frederick Herzberg

Frank and Lillian Gilbreth

The amount of time a worker and a machine are working or idle on a job is illustrated by a
a. process flowchart.
b. worker analysis.
c. task analysis.
d. worker-machine chart.

Worker-machine chart

The gradual shift from treating employees as a replaceable part to embracing them as a valuable
resource was primarily brought about by the trend toward
a. globalization.
b. quality management.
c. scientific management.
d. customization.

Quality Management

___________ illustrate the improvement rate of workers as a job is repeated.

a. Learning curves
b. Process curves
c. Learning charts
d. Process charts
Learning curves