Operations and Supply Management the Core 2nd Edition Test Bank (Answer Key at the End)

Operations and Supply Management the Core 2nd Edition Test Bank Operations and Supply Management the Core 2nd Edition Test Bank c1 Student: 1. Which of the following is a reason for studying operations management (OSCM)? A. OSM is essential for understanding organizational behavior. B. Most business graduates do OSM work regardless of their job title. C. Concepts and tools of OSM are useful in other functions of business. D. OSM is a required course in all business degree programs. E. OSM is the most rigorous business discipline. 2. Operations and supply chain management does not involve which of the following? A. Using operations research/management science decision­making tools B. Industrial engineering issues C. Line management responsibilities D. Improving operating systems E. Portfolio management 3. Operations management is applicable . A. mostly in the service sector B. to services exclusively C. mostly in the manufacturing sector D. to both manufacturing and service sectors E. to the manufacturing sector exclusively 4. Which of the following is not typically a component of the supply chain? A. Procuring raw materials B. Transformation C. Delivery D. Cost accounting E. Warehousing 5. The concept of operations and supply chain management should be important to which of the following management areas? A. Production B. Marketing C. Finance D. Engineering E. All of the above areas should understand the importance of the OSCM function 6. At the most fundamental level, operations and supply chain management is concerned about what? A. Getting work done quickly B. Getting work done efficiently C. Getting work done without error D. Getting work done at a low cost E. OSCM is concerned about all of the above 7. Which of the following refers to the processes that are used to transform resources into goods and services? A. Processing B. Operations C. Transforming D. Supply E. Servicing 8. Which of the following refers to how materials and services are moved to and from the transformation processes? A. Processing B. Operations C. Transforming D. Supply E. Servicing 9. All managers should understand which of the following transformation processes? A. How processes are organized B. How capacity is determined C. Process time D. How quality is monitored E. Managers should understand all of the above processes 10. A reduction of 5% in the cost of raw materials results directly in what? A. An increase of 5% of cost B. A significant increase in profit C. An extra 5% of profit D. No impact on profit or cost E. A significant decrease in ROI 11. Which of the following means doing something at the lowest possible cost? A. Effectiveness B. Efficiency C. Cost effectiveness D. Value E. Break even 12. Which of the following means doing the right things to create the most value? A. Effectiveness B. Efficiency C. Cost effectiveness D. Value E. Break even 13. Which of the following can be defined as quality divided by price? A. Effectiveness B. Efficiency C. Cost effectiveness D. Value E. Break even 14. Current issues in OSCM do not include: A. Coordinating relationships between organizations. B. Making senior management aware that OSCM can be a competitive weapon. C. The triple bottom line. D. Managing customer touch points. E. Increasing global supply chain employment. 15. Which of the following are the reasons for studying operations and supply chain management? A. To understand modern approaches to management B. Systematic way of looking at processes C. Career opportunities D. Concepts are transferable to other functions of business E. All of the above are reasons to study OSCM 16. The operations and supply chain management transformation process consists of which of the following? A. Feedback, external factors, and transformations B. Inputs, outputs, and customers C. Customers, inputs, and resources D. Inputs, transformation, and outputs E. Resources, customers, and internal factors 17. The operations management transformation process in a hospital is primarily which of the following? A. Physical B. Locational C. Exchange D. Physiological E. Storage 18. The operations management transformation process in a manufacturing firm is primarily which of the following? A. Physical B. Locational C. Exchange D. Storage E. Physiological 19. The operations management transformation process in retailing is primarily which of the following? A. Physical B. Locational C. Exchange D. Storage E. Physiological 20. The operations management transformation process in the trucking industry is primarily which of the following? A. Physical B. Locational C. Exchange D. Physiological E. Storage 21. Match the transformations of 1) exchange, 2) physical, 3) physiological, and 4) storage with their respective examples given below (remember the order is given by the above sequence). (1) Exchange (2) Physical (3) Physiological (4) Storage (A) Manufacturing (B) Making a sick person well (C) Retailing (D) Warehousing A. 1)­C, 2)­A, 3)­D, 4)­B B. 1)­D, 2)­A, 3)­C, 4)­B C. 1)­A, 2)­B, 3)­D, 4)­C D. 1)­B, 2)­C, 3)­D, 4)­A E. 1)­C, 2)­A, 3)­B, 4)­D 22. Which of the following process refers to the various ways that material can be moved? A. Manufacturing and service B. Intangible C. Logistics D. Distribution E. Tangible 23. Which of the following processes relates to warehouse functions? A. Manufacturing and service B. Intangible C. Logistics D. Distribution E. Tangible 24. Which of the following are involved with the actual production of goods and services? A. Manufacturing and service B. Intangible C. Logistics D. Distribution E. Tangible 25. Which is not true regarding the differences between goods and services? A. Services are generally produced and consumed simultaneously, tangible goods are not. B. Services tend to be more knowledge based than products. C. Services tend to have a more inconsistent product definition than goods. D. Goods tend to have higher customer interaction than services. E. None of the choices are correct. 26. What type of process are services typically associated with? A. Tangible B. Intangible C. Direct D. Indirect E. Bundles 27. Service process is typically referred to as whereas a good is typically referred to as . A. intangible, direct B. high customer interaction, low customer interaction C. Intangible, Tangible D. high variability, low variability E. Tangible, Intangible 28. Which of the following distinguishes services from goods? A. Level of tangibility B. Level of intangibility C. Production and consumption D. Customer interaction E. Inventory level 29. One of the primary differences between services and goods is that goods can be . A. designed B. transformed C. specific D. measured for productivity E. inventoried 30. Which of the following is not a characteristic that distinguishes services from goods? A. Service jobs are unskilled. B. A service is intangible. C. Services are perishable. D. Services are heterogeneous. E. None of the above. 31. Operations and supply chain processes are not categorized as A. Planning B. Return C. Delivery D. Selecting E. Making 32. Pure goods industries, in order to differentiate, are adding some services to their operation. What is this process called? A. Process differentiation B. Value­added services C. Broadening D. Process expansion E. Service adoption 33. Which of the following best describes the concept of "value­added services"? A. An auto manufacturer offering more options in their vehicles B. A phone company offering lower rates during evening hours C. A hospital offering to pick­up patients at their homes D. A cab company guaranteeing they will take the fastest route to a destination E. A restaurant offering healthy choice menu options 34. Which of the following is not a Pure Good? A. Food products B. Teaching C. Chemicals D. Book publishing E. Steel production 35. Which of the following is not a Pure Service? A. Financial consulting B. Teaching C. Legal services D. Medical advice E. Food products 36. As a nation's economy develops, it will shift from an agricultural base to which type of economic base? A. Food production based B. Service based C. Goods producing D. Automotive E. Tangible 37. Business in Canada evolved from . A. an agricultural base B. commodity­based colony C. oil discoveries D. its technological base E. a manufacturing base 38. The concept of ‘Service quality and productivity' aligns with which of the following eras in the Timeline Depicting When Major OSCM Concepts became Popular? A. Late 1970's B. Early 1980's C. Mid 1980's D. Early 1990's E. Late 1990's 39. Who developed the use of standardization in large­scale mass production using a moving assembly line? A. Frederick Winslow Taylor B. Frank Gilbreth C. Adam Smith D. Charles Babbage E. Henry Ford 40. Frederick W. Taylor believed that . A. the scientific laws governed how much work a person could do each day B. the worker should have more control over his job C. for a worker to be efficient he (she) should always be busy D. each person should dictate how much work they could do in a day E. management should rely on worker input when designing a process 41. The concept of ‘Manufacturing strategy developed' aligns with which of the following eras in the Timeline Depicting When Major OSCM Concepts became Popular? A. Late 1970's B. Early 1980's C. Mid 1980's D. Early 1990's E. Late 1990's 42. The concept of ‘JIT production pioneered by the Japanese' aligns with which of the following eras in the Timeline Depicting When Major OSCM Concepts became Popular? A. Late 1970's B. Early 1980's C. Mid 1980's D. Early 1990's E. Late 1990's 43. The concept of ‘TQM and Quality Certification programs' aligns with which of the following eras in the Timeline Depicting When Major OSCM Concepts became Popular? A. Late 1970's B. Early 1980's C. Mid 1980's D. Early 1990's E. Late 1990's 44. The concept of ‘Six­Sigma Quality' aligns with which of the following eras in the Timeline Depicting When Major OSCM Concepts became Popular? A. Late 1970's B. Early 1980's C. Mid 1980's D. Early 1990's E. Late 1990's 45. The concept of ‘Supply Chain Management' aligns with which of the following eras in the Timeline Depicting When Major OSCM Concepts became Popular? A. Late 1970's B. Early 1980's C. Mid 1980's D. Early 1990's E. Late 1990's 46. The concept of ‘Business Process Reengineering (BPR)' aligns with which of the following eras in the Timeline Depicting When Major OSCM Concepts became Popular? A. Late 1970's B. Early 1980's C. Mid 1980's D. Early 1990's E. Late 1990's 47. The concept of ‘Electronic Commerce' aligns with which of the following eras in the Timeline Depicting When Major OSCM Concepts became Popular? A. Late 1970's B. Early 1980's C. Mid 1980's D. Early 1990's E. Early 2000's 48. Which of the following aspects of Ford's moving assembly line were critical to its success? A. Processes B. Quality C. On­time delivery D. People E. All of the above were critical aspects of success 49. What was the primary reason for Canada's and the U.S's. manufacturing prosperity following World War II? A. Availability of materials B. Availability of workers C. Proximity to markets D. Lack of international competition E. Technology 50. Today, companies view operations and supply management as . A. a non­functional area of business B. a function that is primarily driven by marketing C. a function that is primarily driven by seeking the lowest price D. a competitive weapon E. a non­competitive factor of business 51. Today, many experts emphasize that Canada should focus on what aspects of operations and supply chain management? A. Mass production and high volume B. Innovation and value­added goods and services C. Mass customization and low volume D. Importing high tech items E. Importing more than they are exporting 52. Which of the following is not a current issue in global operations and supply chain management? A. Outsourcing of parts and services B. Optimizing supplier networks C. Decreasing the value­added component of goods and services D. Increased coproduction of goods and services E. Managing customer service points 53. Which of the following is not a current issue in global operations and supply chain management? A. Corporate responsibility in supply chains B. Taking more environmental responsibility C. Increasing the value­added component of goods and services D. Decreased coproduction of goods and services E. Raising senior management awareness of operations as a competitive weapon 54. Which of the following factors aligns with the concept of sustainability in business? A. Use of more recycled material B. Environmentally friendly production C. Redesigning products D. ISO14000 certification E. All of the above align with the environmental concept 55. Efficiency means doing the right things to create the most value for the company. True False 56. Effectiveness means doing the right things to create the most value for the company. True False 57. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective. True False 58. A worker can be efficient without being effective. True False 59. A process can be effective without being efficient. True False 60. Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services. True False 61. The term "value" refers to the relationship between quality and the price paid by the consumer. True False 62. Operations and supply chain management is a functional area of business with clear line­management responsibilities. True False 63. Because the text states that "At the most fundamental level, operations and supply chain management is about getting the day­to­day work done quickly, efficiently, without errors, and at low cost." there is little in the field of operations and supply management that relates to overall corporate strategy. True False 64. Producing a product such as a cell phone is an operations function, whereas providing a service such as cellular phone account is not. True False 65. Operations and supply chain management is concerned with managing the internal transformation process but is not concerned with dealer or distribution networks. True False 66. There is a growing recognition that OSCM functions aren't limited to the production line, but are applicable to other areas in a variety of firms. True False 67. If an individual is interested in becoming an effective manager they need to have an understanding of the operations and supply chain management function. True False 68. Central to the concept of operations and supply chain management is that knowledge of OSCM functions are useful in areas such as medicine or accounting. True False 69. At the most fundamental level operations and supply chain management is about getting work done quickly and efficiently. True False 70. The term "Operations" refers to the processes that are used to transform resources into goods and services. True False 71. The term "Supply" refers to how materials and services are moved to and from the transformation process. True False 72. The term operations and supply chain management refers to an integrated system that extends from the purchase of material from suppliers, through to the supply of products and services where they can be purchased by the customer. True False 73. All managers should understand the basic principles that guide the design of the transformation process. True False 74. Operations and supply chain management is not critical to the success of a firm. True False 75. Although planning involves determining how the various supply chain processes (sourcing, making, delivering, and returning) will be met, planning itself is not considered as a supply chain process. True False 76. Innovations in the field of operations are relatively reliable and low cost. True False 77. A business education is incomplete without an understanding of modern approaches to managing operations. True False 78. Operations and supply chain management provides a systematic way at looking at organizational processes. True False 79. The field of operations and supply chain management presents a very limited range of interesting career opportunities. True False 80. The concepts and tools of operations and supply chain management are not widely used in managing other functions of business. True False 81. Today the operations function is seen as essential to firm competitiveness. True False 82. Operations management as a discipline has yet to address the problems of services companies. True False 83. Transformation processes are used in all types of businesses. True False 84. Transformation processes are used primarily in manufacturing businesses. True False 85. A transformation process uses resources to convert outputs into some desired input. True False 86. Manufacturing OSCM transformations are referred to as physical transformations. True False 87. Transportation OSCM transformations are referred to as physical transformations. True False 88. Transportation OSCM transformations are referred to as locational transformations. True False 89. Manufacturing OSCM transformations are referred to as physiological transformations. True False 90. Retailing OSCM transformations are referred to as physiological transformations. True False 91. Retailing OSCM transformations are referred to as exchange transformations. True False 92. Warehousing OSCM transformations are referred to as storage transformations. True False 93. Warehousing OSCM transformations are referred to as exchange transformations. True False 94. Health care OSCM transformations are referred to as storage transformations. True False 95. Health care OSCM transformations are referred to as physiological transformations. True False 96. Telecommunications OSCM transformations are referred to as exchange transformations. True False 97. Telecommunications OSCM transformations are referred to as informational transformations. True False 98. Best practices/best processes depend on such factors as volume, cost, and speed of delivery. True False 99. Logistics process identifies the various ways that material can be moved. True False 100. Distribution processes relate to warehouse functions. True False 101. Manufacturing and service processes are involved with the actual production of the goods and services desired by customers. True False 102. Logistics processes are related to warehouse functions. True False 103. Distribution processes are involved with the actual production of the goods and services desired by customers. True False 104. Manufacturing and service processes are involved with moving material. True False 105. The transformation process is the actual conversion of inputs into outputs. True False 106. A service is an intangible process that cannot be weighed or measured. True False 107. A good is an intangible process that cannot be weighed or measured. True False 108. A good is a tangible output of a process that has physical dimensions. True False 109. A good is an intangible output of a process that has physical dimensions. True False 110. Service requires some degree of interaction with the customer for it to be a service. True False 111. Services are usually produced in one location and consumed by the customer in a different location. True False 112. Goods are usually produced in a facility separate from the customer. True False 113. Services vary from day to day and even hour to hour as a function of the attitudes of the customer and the servers. True False 114. Services tend to be consistent and do not vary from day to day and even hour to hour as a function of the attitudes of the customer and the servers. True False 115. Goods can be produced to meet tight specifications from day to day and even hour to hour with essentially zero variability. True False 116. Services as a process are perishable and time dependant. True False 117. Other issues that managers will have to address when dealing with global operations include the issue of ethics. True False 118. Most product offerings are a combination of goods and services. True False 119. Pure goods industries have value­added services to improve their competitiveness and increase margins. True False 120. Core goods producers are adding services as a significant component of their business. True False 121. The Goods­Services continuum extends from Pure Goods through to Pure Services. True False 122. The Goods­Services continuum extends from Pure Goods through to Core Goods. True False 123. The Goods­Services continuum extends from Core Services through to Pure Services. True False 124. An example of a core service provider integrating tangible goods into their business would be a cable television company offering high­definition cable boxes. True False 125. An example of a core goods provider integrating a service component into their business would be an automobile manufacturer providing spare parts distribution to support their dealers. True False 126. In Canada the majority of the work force is employed in service as opposed to being employed in manufacturing. True False 127. In Canada the majority of the work force is employed in manufacturing as opposed to being employed in service. True False 128. In Canada there has been a shift in the workforce profile, whereas now there are more people employed in services than there were one hundred years ago. True False 129. In developing countries, there is a smaller proportion of people employed in services. True False 130. Business in Canada began from a commodity­based economic system. True False 131. Business in Canada began from an agricultural­based economic system. True False 132. Frederick W. Taylor developed principles of scientific management that applied scientific analysis to eliminating wasted effort from manual labour. True False 133. The idea of supply chain management is to apply an individual approach to independently manage the flow of information, materials, and services. True False 134. The term electronic commerce refers to the use of the Internet as an essential element of business activity. True False 135. Business Analytics involves similar industries working together to better solve business problems. True False 136. The era of the late 1970's and early 1980's saw the concept of quality control begin to be widely adopted. True False 137. The era of the early 1970's saw the concept of Six­Sigma Quality begin to be adopted. True False 138. The era of the early 1980's shows that JIT production was pioneered by the Japanese. True False 139. Unlike the United States, which evolved from an agricultural base, business in Canada began with commodity­based trading. True False 140. Business Process Reengineering began in the late 1990's. True False 141. The flavour of business process re­engineering (BPR) is conveyed in the title "Reengineering Work: Automate, then Obliterate." True False 142. Business process re­engineering (BPR) seeks to make evolutionary changes as opposed to revolutionary changes. True False 143. Six­sigma quality tools have been taught to managers as part of "Green and Black Belt Programs." True False 144. Six­sigma quality tools are applied to manufacturing applications, but not to nonmanufacturing processes such as accounts receivable, sales, and research and development. True False 145. Just­In­Time (JIT) coupled with total quality control (TQC) is now a cornerstone in many manufacturers' production practices. True False 146. JIT is an integrated set of activities designed to achieve high­volume production using minimal inventories of parts that arrive at the workstation exactly when they are needed. True False 147. Just­in­time (JIT) production was the major breakthrough in manufacturing philosophy in the 1980's. True False 148. Central to the manufacturing strategy paradigm was the notion of factory focus and manufacturing trade­ offs. True False 149. Because a factory cannot excel on all performance measures, management must devise a focused strategy, creating a focused factory that performs a limited set of tasks extremely well. True False 150. JIT is a set of activities designed to achieve low­volume production using minimal inventories of parts that arrive at the workstation as soon as they are ordered. True False 151. On­time delivery was not critical for Ford in the early days. True False 152. Quality was not a critical prerequisite for Ford in the early days. True False 153. As far back as the 1960's it was suggested that companies should place strategic emphasis on operations. True False 154. Companies also recognize the importance of corporate responsibility, not only within their own organizations, but also in their supply chains. True False 155. The triple bottom line evaluates organizational performance on economic, environmental, and social criteria. True False 156. Many experts agree that Canada, specifically Canadian business operations, should focus on innovation and value­added goods and services. True False 157. Many experts agree that Canada, specifically Canadian business operations, should focus on commodities and mass production as their niche in the global marketplace. True False 158. A recent trend in operations and supply management is the dramatic surge in the outsourcing of parts and services. True False 159. Current trends in the field of operations and supply management are optimizing global supplier, production, and distribution networks. True False 160. The use of information sharing has seen an increase in the co­production of goods and services. True False 161. Resource utilization decisions must include customer support personnel as a key component of operations and supply management. True False 162. Raising senior management awareness of operations is not considered a significant competitive weapon. True False 163. It is clear that consumers expect companies to significantly reduce their environmental footprint. True False 164. Sustainability is the ability to meet current resource needs by compromising the ability of future generations to meet their needs. True False 165. The triple bottom line evaluates organizational performance on economic, environmental, and service capability criteria. True False 166. Discuss why knowledge of the operations and supply chain management function is critical to every manager. 167. Discuss the concepts of efficiency, effectiveness and value. 168. Discuss the transformation process and provide two different examples of transformation processes. 169. Discuss the differences between goods and services. 170. Discuss any two of the current issues in operations and supply management as listed in the text. c1 Key 1. Which of the following is a reason for studying operations management (OSCM)? A. OSM is essential for understanding organizational behavior. B. Most business graduates do OSM work regardless of their job title. C. Concepts and tools of OSM are useful in other functions of business. D. OSM is a required course in all business degree programs. E. OSM is the most rigorous business discipline. Chapter concept. Chapter ­ Chapter 01 #1 Copy of Level: Easy Difficulty: Easy Learning Objective: 01­03 Discuss the meaning of efficient and effective operations. 2. Operations and supply chain management does not involve which of the following? A. Using operations research/management science decision­making tools B. Industrial engineering issues C. Line management responsibilities D. Improving operating systems E. Portfolio management