Production Management-Test Bank

1) Productivity tends to be more difficult to improve in the service sector because the
work is:
A) Often difficult to automate C) Frequently processed individually
B) Typically labor-intensive D) All of the above make service
productivity more difficult

2) A cleaning company uses $10 of chemicals, $40 of labor, and $5 of misc. expenses
for each house it cleans. After some quality complaints, the company has decided
to increase its use of chemicals by 50%. By what percentage has multifactor
productivity fallen?
A) 0% C) 25%
B) 8.3% D) 50%

3) A strategy is a(n):
A) Set of opportunities in the C) Simulation used to test
marketplace various product line options
B) Broad statement of purpose D) Action plan to achieve the
mission

4) Which of the following are the primary functions of all organizations?

A) Production/operations, C) Sales, quality control, and
marketing, and human resources production/operations
B) Marketing, human resources, and D) Marketing,production/operations,
finance/accounting and finance/accounting

5) Which of the following is the best example of competing on low-cost leadership?

A) A firm produces its product with C) A firm's products are introduced
less raw material waste than its into the market faster than its
competitors do competitors' products are
B) A firm offers more reliable D) A firm's research and
products than its competitors do development department
generates many ideas for new
products

6) What is a global network of organizations and activities that supply a firm with
goods and services?
A) Supply tree C) Supply chain
B) Provider network D) Vendor network

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7) Advantages of outsourcing do NOT include:
A) Cost savings C) Marinating a focus on core
B) Gaining outside expertise competencies
D) Potential creation of future
competition

8) An operations manager is performing a factor-rating analysis to help him choose

an outsourcing provider. He is focusing on two factors: A and B, using a weight of
75% for factor A and 25% for factor B. He has scored five different potential
providers on both factors, using a scale of 1-5, with 1 representing the BEST score.
Based on the scores provided in the table below, which provider should be chosen?

Provider Factor A Factor B

Alpha 1 5
Beta 3 3
Gamma 4 1
Phi 2 1
Omega 3 5

A) Alpha C) Gamma
B) Beta D) Phi

9) Which of the following is NOT a strategic operations management decision?

A) Maintenance C) Layout design
B) Price D) Quality

10) Which of the following statements concerning CPM activities is false?

A) The early finish of an activity is the C) The late start of an activity is its
early start of that activity plus its late finish less its duration.
duration D) The late finish of an activity is the
B) The late finish is the earliest of the earliest late start of all preceding
late start times of all successor activities
activities

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11) The critical path for the network activities shown below is ________ with duration
________.

Immediate
Activity Duration Predecessors
A 2 --
B 4 --
C 6 A,B
D 1 A,B
E 2 B,C,D

A) A-D-E; 5 C) B-D-E; 7
B) B-E; 6 D) B-C-E; 12

12) Which is NOT true regarding differences between goods and services?
A) Tangible goods are generally C) Services tend to have a more
produced and consumed inconsistent product definition than
simultaneously; services are not. goods
B) Most goods are common to many D) Services tend to have higher
customers; services are often customer interaction than goods
unique to the final customer.

13) Gibson Valves produces cast bronze valves on an assembly line, currently
producing 1600 valves each 8-hour shift. If the productivity is increased by 10%, it
would then be:
A) 180 valves/hr. C) 220 valves/hr.
B) 200 valves/hr. D) 880 valves/hr.

14) Which time-series model uses BOTH past forecasts and past demand data to
generate a new forecast?
A) Naive C) Weighted moving average
B) Moving average D) Exponential smoothing

15) Productivity measurement is complicated by:

A) the competition's output C) Stable quality
B) the fact that precise units of D) The workforce size
measure are often unavailable

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16) What is the forecast for May based on a weighted moving average applied to the
following past demand data and using the weights: 4, 3, 2 (largest weight is for
most recent data)?

Nov. Dec. Jan. Feb. Mar. April

37 36 40 42 47 43
A) 44.1 C) 42.5
B) 43.2 D) 44.5

17) Given an actual demand this period of 61, a forecast for this period of 58, and an
alpha of 0.3, what would the forecast for the next period be using exponential
smoothing?
A) 45.5 C) 58.9
B) 57.1 D) 61.0

18) The total of all outputs produced by the transformation process divided by the
total of the inputs is:
A) Utilization C) Defined only for manufacturing
B) Greater in manufacturing than in firms.
services D) Multifactor productivity

19) A time-series trend equation is 25.3 + 2.1x. What is your forecast for period 7?
A) 23.2 C) 27.4
B) 25.3 D) 40.0

20) Which of the following is TRUE regarding computer-aided design?

A) It is too expensive to use in most C) It results in longer development
manufacturing and design settings cycles for virtually all products
B) It is an obsolete technology D) It is the use of computers to
interactively design products and
prepare engineering
documentation

21) Who was the person most responsible for popularizing interchangeable parts in
manufacturing?
A) Frederick Taylor C) Eli Whitney
B) Henry Ford D) Whitney Houston

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22) 3-D printing has proven to be particularly advantageous for:
A) Prototype development and C) Quality function deployment
custom products
D) Robust design
B) Modular design

23) The "Father of Scientific Management" is:

A) Henry Ford C) W. Edwards Deming
B) Frederick W. Taylor D) Frank Gilbreth

24) Productivity can be improved by:

A) Increasing inputs while C) Increasing inputs and
holding outputs steady outputs in the same proportion
B) Decreasing outputs while D) Decreasing inputs while
holding inputs steady holding outputs steady

25) Henry Ford is noted for his contributions to:

A) Time and motion studies. C) Assembly line operations.
B) Statistical quality control. D) Scientific management.

26) Three commonly used productivity variables are:

A) Quality, external elements, and C) Technology, raw materials, and
precise units of measure. labor.
B) Labor, capital, and D) Education, diet, and social
management. overhead.

27) The marketing function is concerned with:

A) producing goods or providing C) building and maintaining a
services. positive image.
B) procuring materials, supplies, D) generating the demand for the
and equipment. organization's products or services.

28) Which of the following influences layout design?

A) inventory requirements C) personnel levels
B) capacity needs D) All of the above influence
layout decisions

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29) Which productivity variable has the greatest potential to increase productivity?
A) labor C) management
B) globalization D) capital

30) Which of the following is NOT true when explaining why productivity tends to be
lower in the service sector than in the manufacturing sector?
A) Services are typically labor- C) Services are often an intellectual
intensive. task performed by professionals.
B) Services are often difficult to D) Service operations are typically
evaluate for quality. capital intensive.

31) A business's stakeholders, whose conflicting perspectives cause ethical and social
dilemmas, include:
A) lenders. C) owners.
B) suppliers. D) all of the above.

32) The purchasing function is concerned with:

A) producing goods or providing C) building and maintaining a
services. positive image.
B) procuring materials, supplies, D) generating the demand for the
and equipment. organization's products or services.

33) The finance function is concerned with:

A) producing goods or providing C) building and maintaining a
services. positive image.
B) procuring materials, supplies, D) securing monetary resources.
and equipment.

34) Which of the following is one of the 10 strategic operations management

decisions?
A) depreciation policy for tax C) process and capacity design
returns D) pricing
B) advertising

35) Who among the following is associated with contributions to quality control in
operations management?
A) Charles Babbage C) Frank Gilbreth
B) Henry Ford D) W. Edwards Deming

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36) Which of the following is NOT a typical service attribute?
A) intangible product C) customer interaction is high
B) easy to store D) simultaneous production and
consumption

37) Which of the following is a similarity between goods and services?

A) mass production C) automation
B) consistency D) Both have quality standards.

38) Which of the following is NOT among the ethical and social challenges facing
operations managers?
A) honoring stakeholder C) efficiently developing and
commitments producing safe high-quality green
B) training, retaining, and products
motivating employees D) increasing executive pay

39) An operations manager is NOT likely to be involved in:

A) The design of goods and C) The identification of customers'
services to satisfy customers' wants wants and needs.
and needs. D) Work scheduling to meet the
B) The quality of goods and due dates promised to customers
services to satisfy customers' wants
and needs.
.
40) Budgeting, recruiting, and scheduling are examples of a:
A) Development. C) Operation Strategic decisions.
B) Core process. D) System.

41) Operations management is part of a production system that can be described in

the following manner: Organization: inputs→processes→outputs.
Which one of the following correctly describes a production system?
A) Airline: C) Furniture manufacturer:
pilots→planes→transportation wood→sanding→chair
B) Bank: D) Telephone company:
tellers→computerequipment→dep satellites→cables→communication
osits

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 42) Manufacturing processes usually have:
A) physical, durable output. C) output that cannot be
B) high levels of customer contact. inventoried.
D) low levels of capital intensity.

43) Which of the following is NOT one of the 10 strategic operations management
decisions?
A) layout strategy C) process and capacity design
B) maintenance D) mass customization

44) Which of the following attributes is most typical of a service?

A) production and consumption C) mass production
occur simultaneously D) consistency
B) tangible

45) The service sector has lower productivity improvements than the manufacturing
sector because:
A) the service sector uses less C) services usually are labor-
skilled labor than intensive.
manufacturing. D) service sector productivity is
B) the quality of output is lower in hard to measure.
services than manufacturing.

46) What term is given to those individuals with a vested interest in an organization,
including customers, distributors, suppliers, owners, lenders, employees, and
community members?
A) alumni C) vestors
B) investors D) stakeholders

47) 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.

48) Which of the following would NOT be an operations function in a commercial

bank?
A) auditing C) maintenance
B) teller scheduling D) collection

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49) Managing quality as one of the operation management strategic decisions
includes:
A) Determine the customer’s quality C) A and B
expectations D) Determine the limits of cost,
B) Establish policies and procedures quality and human resources
to identify and achieve that required
quality

50) “Considers inventory ordering and holding decisions" is within the strategic
operations management decision area of:
A) Inventory management C) Process and capacity strategy
B) Managing quality D) Design of goods and services