Test Bank for An Introduction to Operations

Test Bank for An Introduction to Operations Management The Joy of Operations, 1e Ajay Das (All Chapters Answers at the end of this file)

chapter_1_om_and_you

True/False

• Operations management gathers materials and resources to transform them into products and services. T

• As a functional area of a business, operations is concerned with delivering products and services to the

customer. F

• Operations managers are involved at both the strategic and tactical levels of corporate strategy. T

• Operations managers are in charge of managing inventory, suppliers, and product and service quality. T

• Operations management only ensures that a business is very productive. F

• Operations drive revenues only. F

• Operations affect and influence every aspect of the organizational structure. T

• Functional strategies are not executed via operational practices. F

• Operational strategies should be aligned with the business-level strategies for maximum efficiency. T

• Operations managers are lower-level managers. F

• Key performance indicators (KPIs) help in business decision making. T

• Operational key performance indicators (KPIs) provide only an overview of operations. F

• Productivity is measured as the value of inputs relative to the value of outputs. F

14. There are only two types of productivity: single-factor and multi-factor. F

• The value of the output relative to the value of the input is measured by productivity. T

• Productivity metrics can be manipulated in the short run by running a short-staffed operation for instance. T

• Comparisons of productivity using only labor hours may be misleading. T

• Only productivity and quality are important aspects of business performance. F

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• Every business should be overly focused on efficiency and cost control. F

• Supply chain management (SCM) is a current trend in operations management. T

• Supply chain design today also needs to satisfy other criteria such as ethics and sustainability. T

• The design of the supply chain—selecting suppliers in different locations that can make and move goods

and services—supports the buying company’s competitive edge. T

• Service processes not are generally people centered or people sensitive. F

• Service science is the systematic application of operations management to the cause of understanding,

analyzing, and improving the performance of service processes. T

• Lean operations are an important trend in operations management. T

• Operations management provides an array of useful tools for lean operations. T

• Sustainability is not a major concern of operations management. F

• Sustainability differs from lean operations in that it has a moral element and is much larger in scope. T

• Sustainability is only practiced by very large businesses. F

• Globalization by many firms has decreased the liability to behave ethically. F

Multiple Choice

• The operations function in an organization designs, makes, and delivers
• products only
• services only
• products and services
• processes

• A simple model of operations management can be described in the following manner:

organization: inputs→transformation processes→outputs

Which one of the following correctly describes a production system?

A) automobile manufacturer: steel→molding→car

B) hospital: sick patients→nurses→doctors

C) restaurant: meat→chefs→food

D) airline: pilots→planes→passengers

Figure 1.1 You are the operations manager for pizza manufacturing at The Dough Factory.

Flour Supplier The Dough Factory Pizza Shop Stuvia.com - The Marketplace to Buy and Sell your Study Material

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• Use the information provided in Figure 1.1. The flour supplier is an example of a(n)
• input
• output
• process
• product

• Use the information provided in Figure 1.1. The Dough Factory is
• the transformation process
• the output of the flour supplier
• the only input for the pizza shop
• the output for the pizza shop

• Operations managers do all of the following except
• design work processes
• study work processes
• analyze work processes
• report work processes

• Operations management transforms inputs into outputs. Which of the following are not inputs?
• labor
• services
• information
• technology

• Outputs include
• goods
• services
• technology
• information

• Which one of the following statements is true about operations management (OM)?
• OM impacts profits directly.
• OM impacts revenues indirectly.
• OM does not affect the company’s stock price.
• OM does not have much impact on costs.

• OM helps to boost return on assets (ROAs) by all of the following except
• increasing revenues
• increasing cost of goods sold
• reducing costs
• reducing assets

• OM is a key to any organization because it is a part of the
• business-level strategy
• functional-level strategy
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• company-level strategy

• All of the following are functional-level strategic decisions except
• location planning
• capacity planning
• forecasting
• quality management

• Key performance indicators (KPIs) at the operational level include
• inventory holding costs
• sales by major product line
• quality
• average gross margin

• All of the following are KPIs at the operational level except
• inventory weeks of cycle time
• delivery lead time
• input costs
• customer service

• In an assembly operation at a computer factory, nine employees assembled an average of 540 custom

computers per 5-day week. What is the labor productivity of this operation?

• 75 computers per worker per day
• 50 computers per worker per day
• 12 computers per worker per day
• 108 computers per worker per day

• A process produces 2,500 units of output that sell for $10 per unit. Resources contributed to this output are

100 hours of labor at $20 per hour, materials at $300, and overhead at $700. What is the labor productivity?

• 20 units per hour
• 25 units per hour
• 40 units per hour
• 30 units per hour

• The manager of your school’s cafeteria is trying to determine the best staff size to use for the Fall semester.

She has tried various staff sizes in the past, with the results shown below. Based on productivity, which crew size should she employ?

Crew Size 2 4 3 3 4 2 Sales Per Week ($) 1,716 2,298 2,034 2,004 2,278 1,702

• Either a 3- or 4-person crew
• 4-person crew
• 3-person crew
• 2-person crew

• A manufacturing process requires 60 minutes of labor to make 20 units of production. How can productivity

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