OMGT Final Exam Multiple Choice Study Guide | Operations Management Review, Questions
& Key Concepts
Which of the following statements about functional strategy is BEST?
A) Functional strategies are not impacted by the mission statement; instead they are impacted
by the overall business strategy.
B) Functional strategies determine the overall business strategy.
C) Many functional-level strategies could readily be described as cross-functional.
D) A firm's operations and supply chain strategy is more important than their marketing, finance
and engineering strategies. - ANS ✔✔C) Many functional-level strategies could readily be
described as cross-functional.
A car wash services 200 customers an hour on a lovely Saturday afternoon. The car wash
employs 5 washers at $6 per hour and uses $50 of water and $5 of electricity per hour.. An
appropriate measure of productivity is:
A) 80%
B) 2.35 cars/$.
C) 8 cars/$.
D) 0.425 $/car. - ANS ✔✔B) 2.35 cars/$.
,Which of the following statements BEST describes current thinking regarding processes?
A) If companies concentrate on how functional areas like marketing, finance, and operations are
organized, then everything will be fine.
B) Managing functional areas like marketing, finance, and operations is essentially the same
thing as managing what a business does.
C) If the individual functional strategies of marketing, finance, and accounting are aligned with
the overall business strategy, then everything will be fine.
D) Developing superior business processes requires a cross-functional and cross-organizational
perspective. - ANS ✔✔D) Developing superior business processes requires a cross-functional
and cross-organizational perspective.
On the first day of class at a new university you made judgments about the quality of the class
before the professor had entered the room. You noted the comfort of the accommodations, the
fine works of art in the halls and on the classroom wall and the soothing music piped in over the
sound system. This dimension of quality is:
A) aesthetic.
B) performance.
C) features.
D) perceived quality. - ANS ✔✔A) aesthetic.
Which of these statements about the zero defects view of the total cost of quality is BEST?
,A) Failure costs dictate the shape of the total cost curve.
B) In general, appraisal costs exceed prevention costs.
C) As the defect rate increases, appraisal costs increase.
D) As the defect rate increases, prevention costs increase. - ANS ✔✔A) Failure costs dictate the
shape of the total cost curve.
W. Edwards Deming's Fourteen Points for Management include:
A) use statistical methods to determine the workers responsible for poor quality.
B) break down barriers between departments.
C) the customer is always right, so design your system to please them.
D) plan your work and work your plan. - ANS ✔✔B) break down barriers between departments.
The probability of rejecting a lot with quality better than the acceptable quality level is:
A) the lot tolerance percent defective.
B) the lot tolerance percent acceptable.
, C) the consumer's risk.
D) the producer's risk. - ANS ✔✔D) the producer's risk.
One international standard for managing quality across the supply chain is:
A) ISO 9000.
B) ISO 14000.
C) AQL.
D) LTPD. - ANS ✔✔A) ISO 9000.
The ________ dimension of quality asks how long a product can go between failures or the
need for maintenance.
A) warranty
B) lifetime
C) serviceability
D) reliability - ANS ✔✔D) reliability
An arrow in a process map represents a:
& Key Concepts
Which of the following statements about functional strategy is BEST?
A) Functional strategies are not impacted by the mission statement; instead they are impacted
by the overall business strategy.
B) Functional strategies determine the overall business strategy.
C) Many functional-level strategies could readily be described as cross-functional.
D) A firm's operations and supply chain strategy is more important than their marketing, finance
and engineering strategies. - ANS ✔✔C) Many functional-level strategies could readily be
described as cross-functional.
A car wash services 200 customers an hour on a lovely Saturday afternoon. The car wash
employs 5 washers at $6 per hour and uses $50 of water and $5 of electricity per hour.. An
appropriate measure of productivity is:
A) 80%
B) 2.35 cars/$.
C) 8 cars/$.
D) 0.425 $/car. - ANS ✔✔B) 2.35 cars/$.
,Which of the following statements BEST describes current thinking regarding processes?
A) If companies concentrate on how functional areas like marketing, finance, and operations are
organized, then everything will be fine.
B) Managing functional areas like marketing, finance, and operations is essentially the same
thing as managing what a business does.
C) If the individual functional strategies of marketing, finance, and accounting are aligned with
the overall business strategy, then everything will be fine.
D) Developing superior business processes requires a cross-functional and cross-organizational
perspective. - ANS ✔✔D) Developing superior business processes requires a cross-functional
and cross-organizational perspective.
On the first day of class at a new university you made judgments about the quality of the class
before the professor had entered the room. You noted the comfort of the accommodations, the
fine works of art in the halls and on the classroom wall and the soothing music piped in over the
sound system. This dimension of quality is:
A) aesthetic.
B) performance.
C) features.
D) perceived quality. - ANS ✔✔A) aesthetic.
Which of these statements about the zero defects view of the total cost of quality is BEST?
,A) Failure costs dictate the shape of the total cost curve.
B) In general, appraisal costs exceed prevention costs.
C) As the defect rate increases, appraisal costs increase.
D) As the defect rate increases, prevention costs increase. - ANS ✔✔A) Failure costs dictate the
shape of the total cost curve.
W. Edwards Deming's Fourteen Points for Management include:
A) use statistical methods to determine the workers responsible for poor quality.
B) break down barriers between departments.
C) the customer is always right, so design your system to please them.
D) plan your work and work your plan. - ANS ✔✔B) break down barriers between departments.
The probability of rejecting a lot with quality better than the acceptable quality level is:
A) the lot tolerance percent defective.
B) the lot tolerance percent acceptable.
, C) the consumer's risk.
D) the producer's risk. - ANS ✔✔D) the producer's risk.
One international standard for managing quality across the supply chain is:
A) ISO 9000.
B) ISO 14000.
C) AQL.
D) LTPD. - ANS ✔✔A) ISO 9000.
The ________ dimension of quality asks how long a product can go between failures or the
need for maintenance.
A) warranty
B) lifetime
C) serviceability
D) reliability - ANS ✔✔D) reliability
An arrow in a process map represents a:
