Test Bank for Operations Management 2nd Canadian Edition by Heizer
Operations Management, Cdn. Ed., 2e (Heizer et al.)
Chapter 1 Operations and
... [Show More] Productivity
20) Which of the following is not one of the Ten Critical Decisions of Operations Management?
A) location strategy
B) human resources and job design
C) managing quality
D) design of goods and services
E) determining the financial leverage position
Answer: E
21) An operations task performed at Hard Rock Café is
A) borrowing funds to build a new restaurant.
B) advertising changes in the restaurant menu.
C) calculating restaurant profit and loss.
D) preparing employee schedules.
E) paying suppliers.
Answer: D
22) Operations management is applicable
A) mostly to the service sector.
B) to services exclusively.
C) mostly to the manufacturing sector.
D) to all firms, whether manufacturing or service.
E) to the manufacturing sector exclusively.
Answer: D
23) Which of the following are the primary functions of all organizations?
A) production/operations, marketing, and human resources
B) marketing, human resources, and finance/accounting
C) sales, quality control, and production/operations,
D) marketing, production/operations, and finance/accounting
E) research and development, finance/accounting, and purchasing
Answer: D
24) Which of the following pioneers was not making a professional impact during the Scientific
Management Era?
A) Frank Gilbreth
B) W. Edwards Deming
C) Henry L. Gantt
D) Lillian Gilbreth
E) Frederick W. Taylor
Answer: B
25) Which of the following would not be an operations function in a commercial bank?
A) auditing
B) teller scheduling
C) maintenance
D) collection
E) cheque clearing
Answer: A
26) The marketing function's main concern is with
A) producing goods or providing services.
B) procuring materials, supplies, and equipment.
C) building and maintaining a positive image.
D) generating the demand for the organization's products or services.
E) securing monetary resources.
Answer: D
27) Which of the following tasks within an Airline Company are related to Operations?
A) Crew Scheduling
B) International Monetary Exchange
C) Sales
D) Advertising
E) Accounts Payable
Answer: A
28) Reasons to study Operations Management include
A) studying how people make decisions.
B) knowing how goods and services are consumed.
C) understanding what human resource managers do.
D) learning about a costly part of the enterprise.
E) learning to prepare financial statements.
Answer: D
29) Reasons to study Operations Management include learning about all of the following except
A) how people organize themselves for productive enterprise.
B) how goods and services are produced.
C) what operations managers do.
D) a costly part of the enterprise.
E) how to market a product.
Answer: E
30) The five elements in the management process are
A) plan, direct, update, lead, and supervise.
B) accounting, finance, marketing, operations, and management.
C) organize, plan, control, staff, and manage.
D) plan, organize, staff, lead, and control.
E) plan, lead, organize, manage, and control.
Answer: D
31) Illiteracy and poor diets have been known to cost countries up to what percent of their
productivity?
A) 2%
B) 5%
C) 10%
D) 20%
E) 50%
Answer: D
32) Which of the following is not an element of the management process?
A) controlling
B) leading
C) planning
D) pricing
E) staffing
Answer: D
33) An operations manager is not likely to be involved in
A) the design of goods and services to satisfy customers' wants and needs.
B) the quality of goods and services to satisfy customers' wants and needs.
C) the identification of customers' wants and needs.
D) work scheduling to meet the due dates promised to customers.
E) maintenance schedules.
Answer: C
34) All of the following decisions fall within the scope of operations management except for
A) creating the company income statement.
B) design of goods and processes.
C) location of facilities.
D) managing quality.
E) layout of facilities.
Answer: A
35) The Ten Critical Decisions of Operations Management include except
A) layout strategy.
B) maintenance.
C) process and capacity design.
D) managing quality.
E) fiscal year-end.
Answer: E
36) Which of the following is not one of The Ten Critical Decisions of Operations Management?
A) layout strategy
B) maintenance
C) process and capacity design
D) mass customization
E) supply-chain management
Answer: D
37) The Ten Critical Decisions of Operations Management include
A) finance/accounting.
B) advertising.
C) process and capacity design.
D) pricing.
E) employee benefits.
Answer: C
38) Which of the following are part of the Ten Critical Decisions of Operations Management?
I. Design of Goods and Services
II. Managing Quality
III. Layout Strategy
IV. Marketing
V. Pricing of Goods and Services
A) I, II, V
B) I, II, IV
C) II, III, V
D) I, II, III
E) II, III, IV
Answer: D
39) SCC (Standards Council of Canada), ISM (Institute for Supply Management), APICS
(Association for Operations Management), and PMI (Project Management Institute) are
important professional organizations to operations management because they do all of the
following except
A) provide certification for professionals.
B) allow professionals to keep up with industry developments.
C) facilitate professional networking.
D) provide opportunities to enhance your education.
E) act as employment agencies for professionals.
Answer: E
40) Walter Shewhart is listed among the important people of operations management because of
his contributions to
A) assembly line production.
B) measuring the productivity in the service sector.
C) just-in-time inventory methods.
D) statistical quality control.
E) project management techniques.
Answer: D
41) Walter Shewhart, in the ________, provided the foundations for ________ in operations
management.
A) 1920s; statistical sampling
B) United Kingdom; mass production
C) U.S. Army; logistics
D) nineteenth century; interchangeable parts
E) 21st century; logistics
Answer: A
42) Eli Whitney, in the ________, provided the foundations for ________ in operations
management.
A) 1920s; statistical sampling
B) United Kingdom; mass production
C) U.S. Army; logistics
D) nineteenth century; interchangeable parts
E) 21st century; logistics
Answer: D
43) The person most responsible for popularizing interchangeable parts in manufacturing was
A) Frederick Winslow Taylor.
B) Henry Ford.
C) Eli Whitney.
D) Whitney Houston.
E) Lillian Gilbreth.
Answer: C
44) The "Father of Scientific Management" is
A) Henry Ford.
B) Frederick W. Taylor.
C) W. Edwards Deming.
D) Frank Gilbreth.
E) just a figure of speech, not a reference to a person.
Answer: B
45) Henry Ford is noted for his contributions to
A) material requirements planning.
B) statistical quality control.
C) assembly line operations.
D) scientific management.
E) time and motion studies.
Answer: C
46) Who among the following is associated with contributions to quality control in operations
management?
A) Charles Babbage
B) Henry Ford
C) Frank Gilbreth
D) W. Edwards Deming
E) Henri Fayol
Answer: D
47) The field of operations management is shaped by advances in which of the following fields?
A) chemistry and physics
B) industrial engineering and management science
C) biology and anatomy
D) information technology
E) all of the above
Answer: E
48) Which of the following is the best example of a pure service?
A) counseling
B) oil change
C) heart transplant
D) restaurant meal
E) college course
Answer: A
49) Which of the following statements is true?
A) The person most responsible for initiating the use of interchangeable parts in manufacturing
was Eli Whitney.
B) The origins of management by exception are generally credited to Frederick W. Taylor.
C) The person most responsible for initiating the use of interchangeable parts in manufacturing
was Walter Shewhart.
D) The origins of the scientific management movement are generally credited to Henry Ford.
E) The person most responsible for initiating the use of interchangeable parts in manufacturing
was Henry Ford.
Answer: A
50) The service sector makes up approximately what percentage of all jobs in the United States?
A) 12%
B) 40%
C) 66%
D) 79%
E) 90%
Answer: D
51) Which is not true regarding differences between goods and services?
A) Tangible goods are generally produced and consumed simultaneously; services are not.
B) Most goods are common to many customers; services are often unique to the final customer.
C) Services tend to have a more inconsistent product definition than goods.
D) Services tend to have higher customer interaction than goods.
E) Goods can be inventoried; services are not easily inventoried.
Answer: A
52) Which is not true regarding 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 goods.
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 above are true.
Answer: D
53) Which of the following services is least likely to be unique, i.e., customized to a particular
individual's needs?
A) dental care
B) hairdressing
C) legal services
D) elementary education
E) computer consulting
Answer: D
54) Which of the following is not a typical service attribute?
A) intangible product
B) easy to store
C) customer interaction is high
D) simultaneous production and consumption
E) difficult to resell
Answer: B
55) Which of the following statements is true?
A) Manufacturing now constitutes the largest economic sector in postindustrial societies.
B) The number of people employed in manufacturing has increased since 1950.
C) Each manufacturing employee now produces about 20 times more than in 1950
D) Each manufacturing employee now produces about one tenth of that in 1950
E) Manufacturing has disappeared in postindustrial societies.
Answer: C
56) Which of the following attributes is most typical of a service?
A) production and consumption occur simultaneously
B) tangible
C) mass production
D) consistency
E) easy to automate
Answer: A
57) Which of the following is a similarity between goods and services?
A) can be mass produced
B) consistency in production
C) easy to automate
D) application of operations management
E) all of the above
Answer: D
58) Current trends in operations management include all of the following except
A) just-in-time performance.
B) rapid product development.
C) mass customization.
D) empowered employees.
E) None of the above is right.
Answer: E
59) Which of the following is not a current trend in operations management?
A) just-in-time performance
B) global focus
C) supply-chain partnering
D) mass customization
E) low bid purchasing
Answer: E
60) New trends in operations management include
A) global focus.
B) mass customization.
C) empowered employees.
D) rapid product development.
E) All of the above are new trends in operations management.
Answer: E
61) Which of the following statements about trends in operations management is false?
A) Job specialization is giving way to empowered employees.
B) Local or national focus is giving way to global focus.
C) Environmentally-sensitive production is giving way to low-cost focus.
D) Rapid product development is partly the result of shorter product cycles.
E) Large batch shipments are being replaced by just-in-time.
Answer: C
62) A foundry produces circular utility access hatches (manhole covers). If 120 covers are
produced in a 10-hour shift, the productivity of the line is
A) 1.2 covers/hr.
B) 2 covers/hr.
C) 12 covers/hr.
D) 1200 covers/hr.
E) 0.12 covers/hr.
Answer: C
63) A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers
are produced in a 10-hour shift. If labour productivity can be increased by 20%, it would then be
A) 14.4 covers/hr.
B) 24 covers/hr.
C) 240 covers/hr.
D) 1200 covers/hr.
E) 144 covers/hr.
Answer: A
64) Gibson Valves produces cast bronze valves on an assembly line. If 1600 valves are produced
in an 8-hour shift, the productivity of the line is
A) 2 valves/hr.
B) 40 valves/hr.
C) 80 valves/hr.
D) 200 valves/hr.
E) 1600 valves/hr.
Answer: D
65) Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600
valves each 8-hour shift. If the productivity is decreased by 10%, it would then be
A) 180 valves/hr.
B) 200 valves/hr.
C) 220 valves/hr.
D) 1440 valves/hr.
E) 1760 valves/hr.
Answer: A
66) Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600
valves per shift. If the production is increased to 2000 valves per shift, labour productivity will
increase by
A) 10%.
B) 20%.
C) 25%.
D) 40%.
E) 50%.
Answer: C
67) The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. What is the
productivity of the plant?
A) 25 boxes/hr
B) 50 boxes/hr
C) 5000 boxes/hr
D) 250 boxes/hr
E) not enough data to determine productivity
Answer: A
68) The Dulac Box plant works two 8-hour shifts each day. In the past, 500 cypress packing
boxes were produced by the end of each day. The use of new technology has enabled them to
increase productivity by 30%. Productivity is now approximately
A) 32.5 boxes/hr.
B) 40.6 boxes/hr.
C) 62.5 boxes/hr.
D) 81.25 boxes/hr.
E) 300 boxes/hr.
Answer: B
69) The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to
higher demand, they have decided to operate three 8-hour shifts instead. They are now able to
produce 600 boxes per day. What has happened to productivity?
A) It has not changed.
B) It has increased by 37.5 boxes/hr.
C) It has increased by 20%.
D) It has decreased by 8.3%.
E) It has decreased by 9.1%.
Answer: A
70) Productivity measurement is complicated by
A) the competition's output.
B) the unavailability of precise units of measure.
C) stable quality.
D) the workforce size.
E) the type of equipment used.
Answer: B
71) The total of all outputs produced by the transformation process divided by the total of the
inputs is
A) utilization.
B) greater in manufacturing than in services.
C) defined only for manufacturing firms.
D) multifactor productivity.
E) effectiveness.
Answer: D
72) Which productivity variable has the greatest potential to increase productivity?
A) labour
B) globalization
C) management
D) capital
E) industrialization
Answer: C
73) Which of the following nets the largest productivity improvement?
A) increase output 15%
B) decrease input 15%
C) increase both output and input by 5%
D) increase output 10%, decrease input 3%
E) decrease input 10%, increase output 3%
Answer: B
74) Productivity can be improved by
A) increasing inputs while holding outputs steady.
B) decreasing outputs while holding inputs steady.
C) increasing inputs and outputs in the same proportion.
D) decreasing inputs while holding outputs steady.
E) there is no way to improve productivity.
Answer: D
75) The largest contributor to productivity increases is ________, estimated to be responsible for
________ of the annual increase.
A) management; over one-half
B) Mr. Deming; one-half
C) labour; two-thirds
D) capital; 90%
E) technology; over one-half
Answer: A
76) The factor responsible for the largest portion of productivity increase in Canada is
A) labour.
B) management.
C) capital.
D) labour, management and capital combined; it is impossible to determine the contribution of
individual factors.
E) technology [Show Less]