T/F: Service often requires relatively greater labor content when compared to manufacturing.
answer
True - Service operations tend to be more labor intensive than manufacturing.
question
T/F: Service operations require additional inventory because of the unpredictability of consumer demand.
answer
False - Service operations cannot use inventory as a hedge against unpredictable demand.
question
T/F: The greater the degree of customer involvement, the more challenging the design and management of operations.
answer
True - Greater customer involvement leads greater variation in the goods and services provided. This creates greater variation in production or service requirements and results in more complexity in the design and management of operations.
question
T/F: Goods-producing organizations are not involved in service activities.
answer
False - There are very few pure goods or pure services, so most companies sell product packages which combine goods and services. Therefore, most production systems involve a blend of goods and services.
question
T/F: Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services.
answer
False - Operation managers are not responsible for promoting goods/services. It is the marketing functional area that is responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services.
question
T/F: People who work in the field of operations should have skills that include both knowledge and people skills.
answer
True - Operations management requires a blend of knowledge and people skills.
question
Which of the following refers to service and production processes that use resources in ways that do not harm ecological systems?
a. marketability
b. transportability
c. perishability
d. supportability
e. sustainability
answer
e. sustainability - Sustainability refers to service and production processes that use resources in ways that do not harm those ecological systems that support both current and future human existence.
question
Which of the following is not a characteristic of service operations?
a. high customer contact
b. high labor content
c. intangible output
d. easy measurement of productivity
e. low uniformity of input
answer
d. easy measurement of productivity - The productivity of service operations is often hard to measure.
question
Which is not an area of significant difference between manufacturing and service operations?
a. uniformity of input
b. forecasting demand
c. customer contact
d. labor content of jobs
e. measurement of productivity
answer
b. forecasting demand - Manufacturing and service operations both use forecasting and capacity planning to match supply and demand.
question
Marketing depends on operations for information regarding:
a. lead time
b. budgeting
c. corporate intelligence
d. productivity
e. cash flow
answer
a. lead time - Marketing uses lead time information to make promises to customers.
question
The fact that new improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the:
a. Adam Smith phenomenon
b. Pareto phenomenon
c. Irwin phenomenon
d. Stevenson phenomenon
e. Tellier phenomenon
answer
b. Pareto phenomenon - Pareto phenomena direct our attention to the difference between the "important few" and the "trivial many."
question
If one organization is better able than most to respond to changes in demands or opportunities, we say that organization exhibits higher:
a. sustainability.
b. efficiency.
c. marketability.
d. productivity.
e. agility.
answer
e. agility - Agility refers to the ability of an organization to respond quickly to demands or opportunities.
question
Which of the following is a system in which low-skilled workers use specialized equipment to produce high volumes of standardized goods?
a. mass production
b. supply chain
c. craft production
d. lean systems
e. the Internet
answer
a. mass production - Mass production has played a prominent role in increasing standards of living.
question
Buying goods or services instead of producing or providing them in-house is called:
a. downsizing
b. outsourcing
c. vertical integration
d. internationalization
e. entrepreneurship
answer
b. outsourcing - Outsourcing is increasingly a part of operations management and is contributing to the increased attention on supply chain management.
question
Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management.
a. outsourcing; supply chain
b. downsizing; total quality
c. offshoring; lean
d. optimizing; inventory
e. internationalization; intercultural
answer
a. outsourcing; supply chain - Supply chain management takes a more systemic view of the firm, its operations, and its suppliers.
question
Production systems with customized outputs typically have relatively:
a. high volumes of output
b. low unit costs
c. fast work environment
d. skilled workers
e. high amounts of specialized equipment
answer
d. skilled workers - Skilled workers are necessary to accommodate the variation inherent in customized outputs.
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