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Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs Chapter 01 Introduction to the Field True / False Questions 1. Efficiency means doing the right things to create the most value for the company. FALSE Level: Easy 2. Effectiveness means doing the right things to create the most value for the company. TRUE Level: Easy 3. 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 Level: Medium 4. A worker can be efficient without being effective. TRUE Level: Medium 5. Trying to maximize effectiveness and efficiency at the same time can create conflict. TRUE Level: Easy full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 6. Maximizing both effectiveness and efficiency at the same time always creates the most value for the organization. FALSE Level: Medium 7. A transformation process uses resources to convert inputs into some desired output. TRUE Level: Easy 8. Strategic operations and supply management issues tend to be primarily directed at planning how to efficiently schedule material and labor. FALSE Level: Medium 9. A business education is complete with an understanding of modern approaches to managing operations. FALSE Level: Medium 10. A traveler is an input to an airline's transformation system. TRUE Level: Easy full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 11. A visit to a hair salon produces a tangible result—a new appearance for the customer. Hence, the output of hair salons is a manufactured good, not a service. TRUE Level: Medium 12. Core goods are those tangible products that include a significant service component. TRUE Level: Easy 13. Core services are those products that integrate tangible goods into the service. TRUE Level: Medium 14. One of the precursors of operations management was the development of principles of scientific management which happened during the 1930's. FALSE Level: Medium 15. Development of economic lot sizing models, including the EOQ model, occurred during the 1930's. FALSE Level: Medium full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 16. In the late 1950's scholars began to deal specifically with operations management rather than with industrial engineering and operations research. TRUE Level: Medium 17. Widespread use of computers in business led to development of methods like material requirements planning (MRP) to rationalize manufacturing in the 1970s. TRUE Level: Medium 18. In 1913, Henry Ford developed an assembly line to make the Model-T automobile. TRUE Level: Medium 19. Just-in-time manufacturing (JIT) is applicable only for small-scale manufacturing operations and can be used to eliminate production defects. FALSE Level: Medium 20. JIT is an integrated set of activities designed to achieve high-volume production using minimal inventories of parts that arrive at the workstation exactly when they are needed. TRUE Level: Easy full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 21. JIT is designed to achieve high-volume production using a significant inventory of component parts that minimizes the probability of running out of supplies. FALSE Level: Easy 22. The term "value" refers to the relationship between quality and the price paid by the consumer. TRUE Level: Easy 23. A current issue facing operations and supply managers is coordinating the relationships between mutually supportive but separate organizations. TRUE Level: Easy 24. One of the current issues of operations and supply management is optimizing global supplier, production and distribution networks. TRUE Level: Easy 25. One of the current issues of operations and supply management is decreasing "commoditization" of suppliers. FALSE Level: Easy full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 26. One of the current issues of operations and supply management is increased co-production of goods and services. TRUE Level: Easy 27. Making resource utilization decisions must capture the direct costs of staffing and need not consider the implicit costs of lost customers. FALSE Level: Easy 28. Managing global supplier, production and distribution networks is easy with the implementation of global enterprise resource planning systems. FALSE Level: Medium 29. Really successful firms have an ambiguous idea of how they intend to make money. FALSE Level: Medium 30. One of the challenges facing operations and supply management is distributing products to global markets. TRUE Level: Easy full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 31. ISO 9000 certification standards play a minor role in setting quality standards for global manufacturers but a major role in setting quality standards in the European Union. FALSE Level: Medium 32. All European companies require that their vendors meet ISO 9000 standards as a condition for obtaining contracts. FALSE Level: Easy 33. Deciding how much inventory to purchase is a fundamental topic of operations management. TRUE Level: Easy 34. Because the text states that "at the most fundamental level, operations and supply management is about getting work done quickly, efficiently, without error and at low cost" there is little in the field of operations management that relates to overall corporate strategy. FALSE Level: Medium full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs Multiple Choice Questions 35. A reason for studying operations and supply management (OSM) is which of the following? A. OSM is essential for understanding organizational behavior B. Most business graduates do OSM work regardless of their job title C. The concepts and tools of OSM are used in managing other business functions D. OSM is a required course in all business degree programs E. OSM is the most rigorous business discipline Level: Easy 36. Operations and supply management does not involve which of the following? A. Using operations research/management science decision-making tools B. Industrial engineering issues C. Line management responsibilities D. Improving operating systems E. Portfolio management Level: Easy 37. In the transformation process of a hospital, a patient is considered a primary input. A primary transformation function of the same system is which of the following? A. Healthy individuals B. Health care C. Well-prepared food D. Storage and redistribution E. Allocation of beds Level: Medium full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 38. In viewing a department store as a transformation process, shoppers are considered a primary input into the process. A primary transformation function of the same system is which of the following? A. Stock pickers B. Well-prepared food C. Storage bins D. Storage and redistribution E. Promoting products Level: Medium 39. Which of the following is not a general category for categorizing transformation processes? A. Exchange, as in retailing B. Physical, as in manufacturing C. Insulational, as in inventory D. Location, as in transportation E. Storage, as in warehousing Level: Easy 40. One of the characteristics that distinguish a manufactured product from a service product is which of the following? A. Customers are always directly involved in creating the output B. Customers often directly interact with manufacturing workers C. A manufactured product is a tangible, physical item D. Customers can purchase the identical service product from a number of outlets E. A service product is superficial Level: Easy full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 41. Which of the following product attributes is a value added service? A. Excellent quality B. Internet monitoring of orders C. Lowest cost D. Effectiveness E. Speed Level: Easy 42. In the history of operations management the development of economic lot sizing models, including the EOQ model occurred in what decade? A. 1910's B. 1930's C. 1940's D. 1950-60's E. 1970's Level: Medium 43. In the history of operations management the use and development of the set of activities referred to as business process reengineering occurred in what decade? A. 1940's B. 1950-60's C. 1970's D. 1980's E. 1990's Level: Medium full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 44. In the history of operations management the use of the multidisciplinary team approach to complex system problems using tools like linear programming first occurred during which decade? A. 1930's B. 1940's C. 1950-60's D. 1970's E. 1980's Level: Medium 45. In the history of operations management the use of synchronous manufacturing occurred in what decade? A. 1930's B. 1940's C. 1950-60's D. 1970's E. 1980's Level: Medium 46. In the history of operations management the use of continuous improvement and value engineering started in what decade? A. 1940's B. 1950-60's C. 1970's D. 1980's E. 1990's Level: Medium full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 47. In the manufacturing strategy paradigm developed in the 1970's, which of the following are suggested? A. Manufacturing can be a competitive weapon by excelling on all performance measures B. Manufacturing should focus on a limited set of tasks C. Management should create a highly flexible factory D. Manufacturing facilities can achieve the lowest possible cost E. Manufacturing management is best done by people with engineering degrees Level: Medium 48. Which of the following gurus are credited with helping to develop total quality management (TQM)? A. F. W. Harris B. Lillian Gilbreth C. J. M. Juran D. George B. Dantzig E. F. Robert Jacobs Level: Easy 49. Which of the following individuals are credited with helping to transplant Japanese methods of total quality management to the United States? A. Harris B. Baldridge C. Dodge D. Deming E. Wright Level: Medium full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 50. Which of the following are considered current issues in operations and supply management? A. Developing flexible supply-chains for merged operations B. Managing the customer's experience during the service encounter C. Decreasing "commoditization" of suppliers D. Increasing operations' responsibility for profits E. Increasing unionization of the work force Level: Medium 51. A total systems approach to managing the flow of information, materials and services from raw material suppliers to the end customer is called what? A. Electronic commerce B. Total quality productivity C. Total service quality D. Supply chain management E. Business Process engineering Level: Medium 52. Radical changes in operations and supply chain management are advocated by proponents of which of the following? A. Business process reengineering B. Electronic commerce C. Total quality management D. Manufacturing strategy E. Mergers and acquisitions Level: Medium full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 53. Why is operations not perceived as important? A. Operations is less crucial to the success of modern businesses than other functions B. Many senior executives began their careers in other functions and learned to take operations for granted C. Successful mergers or "deals" is where the action is these days and operations plays only a minor role in their success D. Operations and supply improvement projects are typically small, short-term and not strategic E. Operational coordination is best achieved by general management or the sales function Level: Medium Short Answer Questions 54. What is the process called that uses resources to convert inputs into some desired output? Transformation process Level: Easy 55. What are the six categories of transformation processes? 1. Physical 2. Location 3. Exchange 4. Storage 5. Physiological 6. Informational Level: Medium full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 56. What United States National Quality Award was started in 1987? The Baldridge Award Level: Easy 57. What did the International Organization for Standardization create that is relevant to operations? The ISO 9000 Certification Standards Level: Easy Essay Questions 58. Discuss the role of efficiency and effectiveness in the creation of value? A successful response to this question requires a definition of "value" (a relationship between "quality" or performance of a product and price) and discussion of the trade-off between efficiency and effectiveness. Creating value means striking the most appropriate balance between efficiency and effectiveness for the market need the product will satisfy. These concepts are discussed in the text starting on page 6. Level: Medium full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 59. Describe some of the generic differences between the production of goods and services? The primary distinction relates to the intangible nature of services and the physical tangibility of goods. A successful answer may note that all products are a mixture of the tangible and the intangible; however products that are considered to be services require a more intensive customer interaction with the transformation process than do goods. This topic is discussed in the text under the heading "Differences between goods and services" on page 10. Level: Medium full file at http://testbankeasy.com Full file at http://testbankeasy.eu/Test-bank-for-Operations-and-Supply-Management, -12th-Edition---F.-Robert-Jacobs 60. The text mentions a number of major challenges (listed below) to operations management that are expected to develop in the near future. Select one of these and briefly discuss the nature of the challenge? A. Coordinate the relationships between mutually supportive but separate organizations B. Optimizing global supplier, production and distribution networks C. Increased co-production of goods and services D. Managing the customer's touch points E. Raising senior management awareness of operations as a competitive weapon These concepts are discussed in the text under the heading "Current Issues in Operations Management" on page 18. Level: Medium full file at http://testbankeasy.com