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Critical Decisions of Operations Management

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

E

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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.

D

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.

D

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

D

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

B

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

A

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.

D

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

A

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.

D

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.

E

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.

D

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%

D

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Which of the following is not an element of the management process? A) controlling B) leading C) planning D) pricing E) staffing

D

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.

C

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.

A

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.

E

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

D

The Ten Critical Decisions of Operations Management include A) finance/accounting. B) advertising. C) process and capacity design. D) pricing. E) employee benefits.

C

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

D

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.

E

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.

D

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

A

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

D

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.

C

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.

B

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.

C

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

D

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

E

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

A

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.

A

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%

D

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.

A

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.

D

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

D

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

B

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.

C

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

A

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

D

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.

E

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

E

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.

E

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.

C

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.

C

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.

A

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.

D

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.

A

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%.

C

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

A

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.

B

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%

A

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.

B

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.

D

Which productivity variable has the greatest potential to increase productivity? A) labour B) globalization C) management D) capital E) industrialization

C

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%

B

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.

D

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

A

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.

B

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 labour-intensive. B) Services are often difficult to evaluate for quality. C) Services are often an intellectual task performed by professionals. D) Services are difficult to automate. E) Service operations are typically capital intensive.

E

Three commonly used productivity variables are A) quality, external elements, and precise units of measure. B) labour, capital, and management. C) technology, raw materials, and labour. D) education, diet, and social overhead. E) quality, efficiency, and low cost.

B

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

C

Productivity tends to be more difficult to improve in the service sector because the work is A) often difficult to automate. B) typically labour-intensive. C) frequently processed individually. D) often an intellectual task performed by professionals. E) All of the above make service productivity more difficult.

E

Firm A operates 10 hours each day, producing 100 parts/hour. If productivity were increased 20%, how many hours would the plant have to work to produce 1000 parts? A) less than 2 hours B) between 9 and 10 hours C) between 2 and 6 hours D) between 6 and 8 hours E) between 8 and 9 hours

E

A cleaning company uses 10 lbs each of chemicals A, B and C for each house it cleans. After some quality complaints, the company has decided to increase its use of chemical A by an additional 10 lbs for each house. By what % has productivity (houses per pound of chemical) fallen? A) 0% B) 10% C) 15% D) 25% E) 33%

D

A cleaning company uses $10 of chemicals, $40 of labour, 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 % has multifactor productivity fallen? A) 0% B) 8.3% C) 25% D) 50% E) 0.83%

B

All of the following are ethical and social challenges facing operations managers except A) honoring stakeholder commitments. B) maintaining a sustainable environment. C) efficiently developing and producing safe, quality products. D) providing a safe workplace. E) introducing new products to market.

E

Among the ethical and social challenges facing operations managers are A) honoring financial commitments. B) maintaining a sustainable environment. C) developing low-cost products. D) providing an efficient workplace. E) all of the above.

B

Which of the following is not among the ethical and social challenges facing operations managers? A) honoring stakeholder commitments B) maintaining a sustainable environment C) efficiently developing and producing safe, quality products D) increasing executive pay E) providing a safe workplace

D

A business’s stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include all of the following except A) lenders. B) suppliers. C) owners. D) employees. E) raw materials.

E

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