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Heizer om13 tb 01 - Test Bank Chapter.01
Marketing Management (2020)
Hebron University
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Operations Management, 13e (Heizer/Render/Munson) Chapter 1 Operations and Productivity
Section 1 What is Operations Management?
Some of the operations-related activities of Hard Rock Café include designing music instruments and analyzing them for cost and labor requirements. Answer: FALSE Diff: 1 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Because Hard Rock Cafés are themed restaurants, operations managers focus their layout design efforts on attractiveness while paying little attention to efficiency. Answer: FALSE Diff: 1 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
All organizations, including service firms such as banks and hospitals, have a production function. Answer: TRUE Diff: 2 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Operations management is the set of activities that creates value in the form of tangible goods, not services, by transforming inputs into outputs. Answer: FALSE Diff: 1 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Production is the creation of goods and services. Answer: TRUE Diff: 2 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage
At Hard Rock Café, tasks that reflect operations or operations management include: A) designing efficient layouts. B) providing meals. C) receiving ingredients. D) preparing effective employee schedules. E) all of these. Answer: E Diff: 1 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
An operations task performed at Hard Rock Café is: A) borrowing funds to build a new restaurant. B) advertising changes in the restaurant menu. C) creating the company income statement. D) preparing employee schedules. E) overseeing financial reports. Answer: D Diff: 2 Objective: LO 1 Define operations management AACSB: Reflective thinking Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Operations management is applicable: A) mostly to the service sector. B) to services exclusively. C) mostly to the manufacturing sector. D) to all firms, whether manufacturing or service. E) to the manufacturing sector exclusively. Answer: D Diff: 2 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
________ is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Answer: Operations management Diff: 1 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage
Which of the following would NOT be an operations function in a commercial bank? A) auditing B) teller scheduling C) maintenance D) collection E) check clearing Answer: A Diff: 2 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
The marketing function is concerned with: 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. Answer: D Diff: 2 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
The purchasing function is concerned with: 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. Answer: B Diff: 2 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
The finance function is concerned with: 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. Answer: E Diff: 2 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage
Which of the following tasks within an airline company is related to operations? A) crew scheduling B) international monetary exchange C) sales D) advertising E) accounts payable Answer: A Diff: 2 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Marketing, production/operations, and ________ are the three functions that all organizations must perform to create goods and services. Answer: finance/accounting Diff: 1 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Section 3 The Supply Chain
Competition in the 21st century is no longer between companies; it is between supply chains. Answer: TRUE Diff: 2 Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
An accounting firm that provides tax services for a company would not be considered to be part of that company's supply chain. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Outcome: Compare and contrast different sourcing strategies including outsourcing and insourcing
Section 4 Why Study OM?
One reason to study operations management is to learn how people organize themselves for productive enterprise. Answer: TRUE Diff: 1 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Reasons to study operations management include: A) studying how people organize themselves for productive enterprise. B) knowing how goods and services are consumed. C) understanding what human resource managers do. D) learning about a costly part of the enterprise. E) A and D Answer: E Diff: 2 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Reasons to study operations management include learning about: A) how people organize themselves for productive enterprise. B) how goods and services are produced. C) what operations managers do. D) a costly part of the enterprise. E) all of these. Answer: E Diff: 1 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage
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 (and costs) by 50%. The next option is Vendor (Supplier) changes, which would result in a decrease of 12% in the cost of inputs. Finally, there is an OM option, which would reduce production costs by 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.
Business Function Current Value Cost of Inputs $50, Production Costs $30, Revenue $83, Answer: Marketing would increase sales to $124,500 ($83,000 ∗ 1) but increase cost of inputs and production costs to $120,000 (($50,000 + $30,000) ∗ 1). This would net an additional $1,500 of profit ($124,500 - $120,000 - current profit of $3,000). Vendor (Supplier) changes would decrease cost of inputs to $44,000 ($50,000 ∗ .88), resulting in $6,000 of additional profit (savings) ($50,000 - $44,000). Finally, the OM option would save $7,500 ($30,000 - $30,000 ∗. 75), resulting in an additional $7,500 of profit. Thus, the OM option is the most profitable. Comments on feasibility should center on the near impossibility of increasing revenue by 50%, while noting the other two options are difficult but not impossible. Diff: 2 AACSB: Analytical thinking Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Section 5 What Operations Managers Do
The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. Answer: TRUE Diff: 2 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
"Considers inventory ordering and holding decisions" is within the strategic operations management decision area of managing quality. Answer: FALSE Diff: 1 Objective: LO 1 Identify the 10 strategic decisions of operations management Learning Outcome: Discuss operations and operations management as a competitive advantage
All of the following decisions fall within the scope of operations management EXCEPT for: A) creating the company income statement. B) design of goods and services. C) location strategies. D) managing quality and statistical process control. E) human resources, job design and work measurement. Answer: A Diff: 1 Objective: LO 1 Identify the 10 strategic decisions of operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
The 10 strategic operations management decisions include: A) layout strategies. B) maintenance. C) process and capacity strategies. D) managing quality. E) all of these. Answer: E Diff: 1 Objective: LO 1 Identify the 10 strategic decisions of operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Which of the following is NOT one of the 10 strategic operations management decisions? A) layout strategies B) maintenance C) process and capacity strategies D) mass customization E) supply chain management Answer: D Diff: 2 Objective: LO 1 Identify the 10 strategic decisions of operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Which of the following is one of the 10 strategic operations management decisions? A) depreciation policy for tax returns B) advertising C) process and capacity strategies D) pricing E) debt/equity ratio Answer: C Diff: 1 Objective: LO 1 Identify the 10 strategic decisions of operations management Learning Outcome: Discuss operations and operations management as a competitive advantage
Which of the following are among the 10 strategic operations management decisions? I. design of goods and services II. managing quality III. layout strategies IV. marketing V. pricing of goods and services A) I, II, V B) I, II, IV C) II, III, V D) I, II, III E) I, II, III, IV, V Answer: D Diff: 2 Objective: LO 1 Identify the 10 strategic decisions of operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Which of the following influences layout design? A) inventory requirements B) capacity needs C) personnel levels D) technology E) All of these influence layout decisions. Answer: E Diff: 2 Objective: LO 1 Identify the 10 strategic decisions of operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Which of the following is NOT a strategic operations management decision? A) maintenance B) price C) layout D) quality E) inventory Answer: B Diff: 2 Objective: LO 1 Identify the 10 strategic decisions of operations management Learning Outcome: Discuss operations and operations management as a competitive advantage
Walter Shewhart is listed among the important people of operations management because of his contributions to: A) assembly line production. B) measuring productivity in the service sector. C) just-in-time inventory methods. D) statistical quality control. E) information technology. Answer: D Diff: 2 Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Walter Shewhart, in the ________, provided the foundations for ________ in operations management. A) 1920s; statistical sampling B) United Kingdom; mass production C) U. Army; logistics D) nineteenth century; interchangeable parts E) 1900s; queuing theory Answer: A Diff: 2 Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Eli Whitney, in the ________, provided the foundations for ________ in operations management. A) 1920s; statistical sampling B) United Kingdom; mass production C) U. Army; logistics D) nineteenth century; interchangeable parts E) 1890s; queuing theory Answer: D Diff: 2 Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Who was the person most responsible for popularizing interchangeable parts in manufacturing? A) Frederick W. Taylor B) Henry Ford C) Eli Whitney D) Whitney Houston E) Lillian Gilbreth Answer: C Diff: 2 Learning Outcome: Discuss operations and operations management as a competitive advantage
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. Answer: B Diff: 2 Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Henry Ford is noted for his contributions to: A) material requirements planning. B) statistical quality control. C) assembly line operations. D) scientific management. E) time and motion studies. Answer: C Diff: 1 Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
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 Answer: D Diff: 2 Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
The field of operations management is shaped by advances in which of the following fields? A) chemistry and physics B) industrial engineering and management C) biology and anatomy D) information technology E) all of the these Answer: E Diff: 2 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Which of the following statements is TRUE? A) The person most responsible for initiating the use of interchangeable parts in manufacturing
Which of the following events occurs mainly during the Globalization Era? A) Electronic Data Interchange B) Computer-Aided Design C) Industry 4. D) Enterprise Resource Planning E) Gantt Charts Answer: C Diff: 2 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Which of the following is TRUE regarding the significant events in operations management? A) The Mass Customization Era focused on quality. B) The Globalization Era will start approximately in 2025. C) Eli Whitney initiated the revolution of Industry 4. D) The concept of linear programming first appeared in the Lead Production Era. E) Charles Sorensen was instrumental in the development of the moving assembly line. Answer: E Diff: 2 Objective: LO 1 Define operations management Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Henry Ford and ________ are credited with the development of the moving assembly line. Answer: Charles Sorensen Diff: 2 Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Identify the items that Frederick W. Taylor believed management should be more responsible for. Answer: He believed that management should be more responsible for matching employees to the right job, providing the proper training, providing proper work methods and tools, and establishing legitimate incentives for work to be accomplished. Diff: 2 Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Operations managers should be well versed in what disciplines in order to make good decisions? Answer: Analytical tools, information technology, and often one of the biological or physical sciences. Diff: 2 Objective: LO 1 Identify career opportunities in operations management Learning Outcome: Discuss operations and operations management as a competitive advantage
Section 7 Operations for Goods and Services
Customer interaction is often high for manufacturing processes, but low for services. Answer: FALSE Diff: 2 Objective: LO 1 Explain the distinction between goods and services Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Manufacturing now constitutes the largest economic sector in postindustrial societies. Answer: FALSE Diff: 2 Objective: LO 1 Explain the distinction between goods and services Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Although the number of people employed in manufacturing in the United States has decreased since 1950, each person is now producing almost 50 times more than in 1950. Answer: FALSE Diff: 1 Objective: LO 1 Explain the distinction between goods and services Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Which of the following is the best example of a pure service? A) counseling B) oil change C) heart transplant D) electric Co-Op E) restaurant Answer: A Diff: 2 Objective: LO 1 Explain the distinction between goods and services Learning Outcome: Discuss operations and operations management as a competitive advantage
Which of the following services is LEAST likely to be unique, i., customized to a particular individual's needs? A) dental care B) hairdressing C) legal services D) elementary education E) computer consulting Answer: D Diff: 2 Objective: LO 1 Explain the distinction between goods and services AACSB: Reflective thinking Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Which of the following is NOT a typical service attribute? A) intangible product B) easy to store C) customer interaction is high D) simultaneous production and consumption E) difficult to resell Answer: B Diff: 2 Objective: LO 1 Explain the distinction between goods and services Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Which of the following attributes is most typical of a service? A) production and consumption occur simultaneously B) tangible C) mass production D) consistency E) easy to automate Answer: A Diff: 2 Objective: LO 1 Explain the distinction between goods and services Learning Outcome: Discuss operations and operations management as a competitive advantage
Which of the following is a similarity between goods and services? A) mass production B) consistency C) automation D) Both have quality standards. E) Both can usually be kept in inventory. Answer: D Diff: 2 Objective: LO 1 Explain the distinction between goods and services Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
When a tangible component is not included in a service, such as with counseling, it is called a(n) ________. Answer: pure service Diff: 1 Objective: LO 1 Explain the distinction between goods and services Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
How do services differ from goods? Identify five ways. Answer: Pick from the following: a service is usually intangible; it is often produced and consumed simultaneously; it is often unique; it involves high customer interaction; product definition is inconsistent; it is often knowledge-based; it is frequently dispersed; quality may be hard to evaluate; and reselling is unusual. Diff: 2 Objective: LO 1 Explain the distinction between goods and services Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Identify the similarities between the operational activities for goods and services. Answer: Both have quality standards, are designed and produced on a schedule that meets customer demand, and are made in a facility where people are employed. Diff: 2 Objective: LO 1 Explain the distinction between goods and services Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization
Section 8 The Productivity Challenge
- Productivity is generally more difficult to improve in the service sector than in the manufacturing sector. Answer: TRUE Diff: 2 Objective: LO 1 Identify the critical variables in enhancing productivity Learning Outcome: Discuss operations and operations management as a competitive advantage
Heizer om13 tb 01 - Test Bank Chapter.01
Course: Marketing Management (2020)
University: Hebron University
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