Question WHAT IS OPERATIONS MANAGEMENT AND WHY IS IT IMPORTANT?

WHAT IS OPERATIONS MANAGEMENT AND WHY IS IT IMPORTANT?

1. ______________ management oversees the transformation process that converts resources such as labor and raw materials into finished goods and services.

a. Control

b. Operations

c. Systems

d. Planning

2. Which of the following is an example of an input as described by an organization’s operations system?

a. sales

b. innovative products

c. capital

d. accounting reports

3. Which of the following is an example of an output as described by an organization’s operations system?

a. equipment

b. increased market share

c. materials

d. information

4. It is easy to see the operations management process at work in ______________.

a. service organizations

b. financial organizations

c. consulting organizations

d. manufacturing organizations

5. Service organizations produce _______________ in the form of services.

a. physical inputs

b. physical outputs

c. nonphysical inputs

d. nonphysical outputs

6. Which of the following is not an example of a service organization?

a. military forces

b. a university

c. a manufacturing plant

d. a hospital

7. It is estimated that in the United States, over ______________ of all economic activity is services.

a. 15 percent

b. 35 percent

c. 71 percent

d. 78 percent

8. Productivity includes the overall output of goods and services that is then ______________ the inputs.

a. multiplied by

b. added to

c. subtracted from

d. dividedby

9. For countries, high productivity can lead to _______________.

a. economic growth and development

b. higher wages

c. a more competitive cost structure

d. the ability to offer more competitive prices

10. Latex Foam International’s investments in information technology enhancements resulted in both its workforce and technology _______________.

a. increasing retention

b. increasing production capacity

c. increasing sales

d. decreasing sales

11. For organizations to improve productivity, they should focus on which of the following?

1. operations variables only
2. people only
3. people or operations variables, depending on the industry
4. people and operations variables

12. Deming believed which of the following?

1. High productivity comes from good people management.
2. Managers are the primary source of increased productivity.
3. Employees should learn movement efficiency, not statistical methods.
4. Training is generally wasted time.

13. Deming outlined _________ points for improving management’s productivity.

1. 10
2. 12
3. 14
4. 15

14. Which of the following is one of Deming’s 14 points for improving management’s productivity?

1. Plan for a short-term future.
2. Lower the quality of your line supervisors.
3. Train your employees in new skills as the need arises.
4. Adopt strictly numerical goals.

15. Which of the following is one of Deming’s 14 points for improving management’s productivity?

a. Plan for the immediate future.

b. Product quality is relative—balance improvements against costs.

c. Establish statistical control over product processes.

d. Reduce cost by dealing with multiple suppliers.

16. Which of the following is one of Deming’s 14 points for improving management’s productivity?

1. Don’t bother training employees to understand statistical methods.
2. Train your employees in new skills continuously.
3. Make top managers responsible for implementing the 14 principles.
4. Encourage departments to compete.

17. Where did the modern era of manufacturing primarily b

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