Chapter.14 Complete Test Bank Operations Managing Processes

Essentials of Contemporary Management, 8e (Jones)

Chapter 14 Operations Management: Managing Vital Operations and Processes

1) "Efficiency" refers to goods and services that are reliable, dependable, and satisfying and that do the job they were designed for.

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-01 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

2) Profit-seeking organizations have customers, but not-for-profit organizations do not have customers.

Difficulty: 2 Medium

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-01 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

3) Management experts recommend that an organization define its business in terms of the products it is producing, not in terms of the customer needs that it is attempting to satisfy.

Difficulty: 2 Medium

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-01 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

4) Customers prefer products that are, as far as possible, customized to their unique needs.

Difficulty: 1 Easy

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

5) Customer relationship management (CRM) is a technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time.

Difficulty: 1 Easy

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

6) CRM systems have two interconnected components: sales and selling, and after-sales service and support.

Difficulty: 1 Easy

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

7) A CRM system can be used as a comprehensive method of gathering crucial information about the way customers respond to a company's products.

Difficulty: 1 Easy

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

8) Improving product quality increases the operating costs of the organization.

Difficulty: 2 Medium

Topic: Total Quality Management (TQM)

Learning Objective: 14-03 Explain why achieving superior quality is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

9) Managers should create an environment in which subordinates will not be afraid to report problems or recommend improvements.

Difficulty: 1 Easy

Topic: Total Quality Management (TQM)

Learning Objective: 14-03 Explain why achieving superior quality is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

10) Labor productivity is equal to outputs divided by direct labor.

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-01 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

11) A ________ system is one that an organization uses to obtain inputs, convert them into outputs, and then dispose of these outputs.

A) production

B) quality control management

C) reengineering

D) line management

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-01 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

12) The management of any aspect of production that transforms inputs into finished outputs is known as ________ management.

A) quality control

B) production system

C) operations

D) reengineering

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-01 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

13) The managers who are responsible for managing the organization's production system are known as ________ managers.

A) TQM

B) JIT

C) operations

D) inventory

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-01 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

14) The main responsibility of operations managers is to manage the three stages of production ranging from

A) acquisition of inputs to control of conversion processes.

B) acquisition of inputs to disposal of goods and services.

C) control of conversion processes to disposal of goods and services.

D) disposal of goods and services to customer relationship management.

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-01 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

15) Goods and services that are dependable, reliable, able to do what they were designed for and satisfying characterize

A) efficiency.

B) service support.

C) responsiveness.

D) quality.

Difficulty: 1 Easy

Topic: Management

Learning Objective: 14-01 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

16) "The actions taken to meet the needs of customers" refers to

A) a mission statement.

B) quality assessment.

C) quality control.

D) responsiveness.

Difficulty: 1 Easy

Topic: Management

Learning Objective: 14-01 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

17) Designing a production system that creates saleable, low-cost products is the responsibility of ________ managers.

A) production

B) top-level

C) first-line

D) operations

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-01 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

18) Management writers recommend that an organization should define its business in terms of its

A) technology.

B) company vision.

C) branding.

D) customer needs.

Difficulty: 2 Medium

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

19) Generally, other things being equal, most customers prefer products with

A) good after-sales service.

B) fewer and simpler features.

C) standardized features.

D) cost-effectiveness.

Difficulty: 2 Medium

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

20) The attributes of an organization's outputs are determined by its ________ system.

A) production

B) quality control

C) efficiency

D) distribution

Difficulty: 2 Medium

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

21) A technique that uses IT to develop an ongoing relationship with buyers to maximize the value an organization can deliver to them over time is

A) customer relationship management.

B) total quantity management.

C) customer database management.

D) customer-technology interface.

Difficulty: 1 Easy

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

22) What is one way that CRM can maximize the value delivered to customers over time?

A) by increasing productivity and decreasing costs throughout the company

B) by monitoring the number of products that are returned or exchanged

C) by breaking down how much revenue came from sales to existing customers

D) by ensuring greater accountability of support staff through quantifiable measures

Difficulty: 2 Medium

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

23) When a company implements after-sales service and support CRM software, salespeople

A) have more time to focus on increasing sales because the system does customer support for them.

B) have instant access to a record of everything that occurred during online customer interactions.

C) are required to manually track and document every customer's case history and preferences.

D) are in a much better position to respond to customers' needs and build customer loyalty.

Difficulty: 2 Medium

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

24) What is one way a CRM system can improve marketing?

A) It allows IT employees to secretly infiltrate and target customers' social media accounts.

B) It allows marketing manager access to detailed customer profiles and purchase histories.

C) It gives managers a general idea of the changes they need to make to improve efficiency.

D) It reduces the time needed for compiling customer data, giving staff more free time.

Difficulty: 2 Medium

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

25) Sundeep is the owner of Celebration Florists, a chain of flower shops, and has been in business for five years. While Celebration is known for its quality arrangements and low prices, an older chain, Ruth's Flowers, consistently outperforms them on customer satisfaction measures. Celebration has a great website and a robust social media presence. The marketing department frequently sends out discount offers, generic follow-up letters, and conducts customer surveys by mail, but the business still receives only average customer service ratings. Meanwhile, Ruth's is known for having a loyal base of long-time, repeat customers. After using a new automated CRM system to collect customer data, Celebration's marketing manager, Celia, discovers that customers feel Celebration's service is a little "cold" and "by the numbers." What should Celebration do to improve its customer relationships?

A) offer personalized service to existing customers, such as specially designed arrangements and discounts

B) run more ads on the local television stations so customers can see how beautiful Celebration's flowers are

C) reduce employee hours so that Celebration can offer even lower prices than Ruth's

D) focus on targeting corporate customers who are more likely to order multiple arrangements at once

Difficulty: 3 Hard

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

26) Which of the following typically represents the impact of increased quality on organizational performance?

A) increased reliability that leads to lower prices

B) increased productivity that leads to lower costs

C) higher prices that lead to lower profits

D) higher costs that lead to higher profits

Difficulty: 2 Medium

Topic: Total Quality Management (TQM)

Learning Objective: 14-03 Explain why achieving superior quality is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

27) Higher product quality can increase efficiency, increase profits, and decrease

A) production time.

B) employee turnover.

C) production costs.

D) customer complaints.

Difficulty: 2 Medium

Topic: Total Quality Management (TQM)

Learning Objective: 14-03 Explain why achieving superior quality is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

28) Which of the following will typically lead to making the highest profits?

A) higher prices and higher costs

B) lower prices and lower costs

C) higher prices and lower costs

D) lower prices and higher costs

Difficulty: 3 Hard

Topic: Total Quality Management (TQM)

Learning Objective: 14-03 Explain why achieving superior quality is so important.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

29) What is one way in which a reputation for offering high quality products benefits a company?

A) It allows the company to remain competitive in its market

B) It leads to the company attracting more and better investors

C) It allows the company to charge more for its products

D) It leads to a happier and more productive workforce

Difficulty: 2 Medium

Topic: Total Quality Management (TQM)

Learning Objective: 14-03 Explain why achieving superior quality is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

30) How might a service organization best increase the quality of its products or services?

A) by cutting services in order to reduce the cost to consumers

B) by following up after purchase with a personal phone call

C) by focusing on the speed with which service is delivered

D) by outspending competitors on advertising and branding

Difficulty: 3 Hard

Topic: Total Quality Management (TQM)

Learning Objective: 14-03 Explain why achieving superior quality is so important.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

31) Lambretti and Sons is an international manufacturer and retailer of luxury pens and writing instruments based in Rome, Italy. The company has been in business for 100 years and has a reputation as being "the best of the best." Their pens are status symbols used by high-profile businessmen and celebrities. In recent years, several other luxury pen manufacturers have entered the market. SwissPen's goods are less expensive and are of a quality equivalent to that of Lambretti and Sons. Should Lambretti be overly worried about competition from SwissPen?

A) No, because price is not a factor that affects the buying choices and preferences of Lambretti's clients.

B) Yes, because regardless of prestige, customers will always go with a company that offers products for a lower price.

C) No, because the brand's long history and singular reputation allow it charge higher prices for its products.

D) Yes, because brand loyalty only goes so far, and SwissPen offers novelty, a very desirable attribute.

Difficulty: 3 Hard

Topic: Total Quality Management (TQM)

Learning Objective: 14-03 Explain why achieving superior quality is so important.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

32) For the last decade, KayJay Toys has been using an overseas factory to make their hard plastic toys. However, the quality of the products has been in decline for the last several years. In addition to using cheaper materials, the factory uses an assembly process that is very quick but often results in uneven quality, with retailers returning 5 out of every 100 units as detective. The decreased quality is beginning to negatively impact KayJay's bottom line. What is KayJay's best course of action in order to save money and increase their profits?

A) KayJay should keep the manufacturer, but use a different method of packaging and shipping the toys.

B) KayJay should switch to a different factory that uses better materials and processes, improving quality.

C) KayJay should close their brick and mortar shops and switch to an online-only shopping model.

D) KayJay should consult with the factory about using a different assembly method for the products.

Difficulty: 3 Hard

Topic: Total Quality Management (TQM)

Learning Objective: 14-03 Explain why achieving superior quality is so important.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

33) CustomCraft, an industrial fabricator, wants to measure the efficiency of the energy inputs at its factory. It needs to use a formula to calculate ________ productivity.

A) employee

B) partial

C) total factor

D) labor

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

34) The management of efficiency is an extremely important issue in most organizations, because increased efficiency generally helps

A) decrease employee turnover.

B) decrease production costs.

C) increase customer satisfaction.

D) decrease total labor costs.

Difficulty: 2 Medium

Topic: Management

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

35) At a manufacturing unit for leather handbags, there are many stations located in a row. At the first station, the pattern pieces are cut; at the second, the bag body is sewn together; at the third, the straps and fasteners are attached; at the fourth, seams are checked; and at the fifth, the product is packed. This unit is an example of ________ layout.

A) process

B) product

C) fixed-position

D) flexible

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

36) Which of the following describes the product layout?

A) It is efficient only when products are created in large quantities.

B) Workers move from workstation to workstation.

C) A conveyor belt is usually not used.

D) Assembling a product is easily achieved in this layout.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

37) In a fixed-position production layout

A) different teams assemble different component parts.

B) the product is moved from one workstation to the next.

C) component parts are made in the assembling area.

D) products that are heavy are more difficult to make.

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

38) When setup times for complex production equipment is reduced

A) efficiency of the production unit goes down.

B) time spent in producing something will increase.

C) flexible manufacturing techniques become irrelevant.

D) employees have to be paid for nonproductive time.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

39) A plastic toy manufacturer gets orders from customers with different size, material, and thickness requirements, forcing the workers to frequently change the equipment. Flexible manufacturing will be ideal in this case because

A) large numbers of the same type may be produced.

B) cheaper raw material may now be used.

C) the time required to set up equipment is reduced.

D) customers will now agree to use caps of the same size.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

40) A fixed-position production layout would be particularly recommended if

A) there are no self-managed teams.

B) the product is easily moved on a conveyor belt.

C) you are making jet airlines or gas turbines.

D) products have simple, lightweight parts.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

41) The total amount of raw materials and component parts that an organization has on hand is known as

A) material supply.

B) in-stock goods.

C) inventory.

D) raw stock.

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

42) What is the advantage of maintaining buffer stocks of inventory?

A) It brings down storage costs.

B) It supports a JIT inventory system.

C) It helps deal with unpredictable supplies.

D) It helps quickly identify defective stocks.

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

43) Shoe Zoo, Inc., is a company that has chosen to use a JIT system. Their productivity will improve because the company can now

A) give quick feedback to suppliers of defective goods.

B) respond quickly to increased customer demand.

C) have a buffer stock of inventory available.

D) store more raw material in less space.

Difficulty: 2 Medium

Topic: Just-in-Time (JIT) Inventory System

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

44) Which of the following describes self-managing work teams?

A) Members are too specialized to fill in for absent coworkers.

B) Each member reports to two first-line managers.

C) Cost savings arise from eliminating supervisors.

D) Members misuse the greater autonomy given to them.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Teamwork

Accessibility: Keyboard Navigation

45) SmokeMaster Grills, a maker of home and commercial outdoor grills, shrank its ordering and delivery team by taking most of its operations online and increased its fleet of trucks to decrease delivery time. These actions can be described as

A) a JIT system.

B) process reengineering.

C) flexible manufacturing.

D) total factor productivity.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

46) Much time is lost when a washer ring manufacturer changes the settings in the equipment from those for cars to those for trucks. Which of the following will help it save time?

A) flexible manufacturing

B) self-managed teams

C) process layout

D) product layout

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

47) Total factor productivity is a measure of an organization's

A) responsiveness.

B) process design standard.

C) efficiency.

D) raw material usage.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

48) The outputs of an organization divided by all of its inputs is called its ________ productivity.

A) total factor

B) total labor

C) partial

D) total capital

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

49) Total factor productivity equals

A) raw materials divided by labor costs.

B) all inputs times all outputs.

C) outputs divided by all inputs.

D) capital expenditures divided by all inputs.

Difficulty: 1 Easy

Topic: Outputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

50) In measuring the total factor productivity of an organization, which of the following is an example of the contribution of the raw materials to output production?

A) number of tons of iron ore required to make one ton of steel

B) total number of units of energy consumed

C) number of man hours required to process raw materials

D) total number of employees required to operate the machinery

Difficulty: 3 Hard

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

51) In measuring the total factor productivity of an organization, an example of a measure of the amount of energy consumed in output production is the number of

A) units produced.

B) hours worked.

C) kilowatt-hours consumed.

D) employees required.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

52) Partial productivity measures the efficiency of ________in the production of a given output

A) an input ratio

B) a specific input

C) a production unit

D) total labor cost

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

53) A problem associated with total factor productivity is that

A) some inputs cannot be factored in.

B) the calculation is too cumbersome.

C) it focuses on specific inputs.

D) each input is measured in different units.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

54) Which of the following calculates labor productivity?

A) outputs divided by direct labor

B) inputs divided by total outputs

C) direct labor times total inputs

D) direct labor times specific outputs

Difficulty: 1 Easy

Topic: Outputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

55) Labor productivity is most commonly used to

A) calculate the total cost of production.

B) set wage standards per unit of production.

C) draw efficiency comparisons between different organizations.

D) define recruiting parameters for new candidates.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

56) The efficiency of an organization with reference to the contribution of an individual input is known as (the) ________ productivity.

A) total factor

B) cumulative

C) partial

D) unit

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

57) Ramelle, an executive with AmericaMoves Mini-Storage, wants to compare her firm's efficiency to that of its competitors. To do so, she should

A) assess the financial ratios of the firm versus the competition.

B) compare the firm's labor productivity to that of the competition.

C) compare the amount of materials used to that of the competition.

D) conduct a survey of customers' opinions about the firm's efficiency.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

58) In the typical organization, increased efficiency leads to

A) higher operating costs.

B) lower production costs.

C) lower partial productivity.

D) higher maintenance costs.

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

59) The operations management technique that has a goal of designing the machine-worker interface to increase production efficiency is

A) the facilities layout.

B) quality circles.

C) flexible manufacturing.

D) production system improvement.

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

60) The way in which machines, robots, and people are grouped together in the production process is known as

A) kanban.

B) facilities layout.

C) kaizen.

D) TQM.

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

61) Organizing machines in the production process so that each operation is performed at workstations in a fixed sequence is known as a ________ layout.

A) process

B) circular

C) product

D) flexible

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

62) A production process where the workers are stationary and a moving conveyor belt takes the product on to the next workstation so that it is assembled in a fixed sequence is known as

A) pull production.

B) mass production.

C) batch production.

D) lean manufacturing.

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

63) A production process in which the product goes to whichever workstation is needed to perform the next operation is known as a ________ layout.

A) process

B) fixed-position

C) product

D) cellular

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

64) A product layout is most likely to be used in making

A) custom furniture.

B) cars.

C) jet engines

D) mining equipment.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

65) Which type of layout is best suited for custom-made products?

A) process layout

B) product layout

C) fixed-position layout

D) batch layout

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

66) A production process where component parts are produced throughout the factory and then brought to the production area for final assembly is known as a ________ layout.

A) process

B) product

C) fixed-position

D) kanban

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

67) In the production process, assembly of a mainframe computer would most likely use a ________ layout.

A) flexible

B) process

C) fixed-position

D) product

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

68) In production process, a mainframe computer assembly line is an example of a ________ facilities layout.

A) product

B) process

C) fixed-position

D) flexible manufacturing

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

69) A fixed-position layout is most likely to be used in production of

A) prefab homes.

B) patio furniture.

C) food packaging.

D) soft home goods.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

70) Although a process layout often reduces efficiency, it is preferred for manufacturing custom products because

A) it is more cost effective.

B) it provides increased flexibility.

C) standardization is impossible.

D) it reduces mistakes made by workers.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

71) The idea of flexible manufacturing systems is chiefly based on reducing

A) inventory costs.

B) setup time.

C) employee fatigue.

D) machine-worker interface.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

72) Reduced setup times lead to reduced

A) setup costs and increased efficiency.

B) efficiency and increased labor costs.

C) inventory costs and increased setup costs.

D) efficiency and increased inventory costs.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

73) Flexible manufacturing is a technique that attempts to reduce ________ in the production system.

A) total manufacturing time

B) number of workers needed

C) production-line errors

D) machine setup costs

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

74) A manufacturing organization using a JIT system can achieve major cost savings as a result of ________ inventory holding costs.

A) decreasing inventory turnover and decreasing

B) increasing inventory turnover and increasing

C) increasing inventory turnover and decreasing

D) decreasing inventory turnover and increasing

Difficulty: 2 Medium

Topic: Just-in-Time (JIT) Inventory System

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

75) One of the major advantages of a JIT system is that it

A) helps identify sources of defects in outputs.

B) ensures production lines have required inputs.

C) lets organizations spot defective inputs quickly.

D) eliminates inventory holding costs.

Difficulty: 2 Medium

Topic: Just-in-Time (JIT) Inventory System

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

76) Praxis Technologies' supplier is in a country that was recently affected by a natural disaster, with the result that production was completely halted for several weeks. However, their competitor, Burnham, was much more adversely affected because of the fact that, unlike Praxis, Burnham uses a system in which they receive supplies only as they need them. What was Praxis able to do in response to the crisis that Burnham was not?

A) They were able to use their buffer stock of inventory to fulfill back orders until production resumed.

B) They were able to use CRM technology to let their customers know that orders would be delayed.

C) They were able to quickly farm out production of their stock to several smaller, local factories.

D) They were able to hire a factory manufacturing generic components to produce them using the Praxis brand.

Difficulty: 3 Hard

Topic: Just-in-Time (JIT) Inventory System

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

77) The stock of materials, inputs, and parts an organization has on hand at a particular time is called its

A) total assets.

B) intangible assets.

C) inventory.

D) material assets.

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

78) Under a JIT inventory system, parts and supplies arrive at the organization

A) prior to work-scheduling.

B) two weeks prior to being needed.

C) when needed.

D) twice a week.

Difficulty: 2 Medium

Topic: Just-in-Time (JIT) Inventory System

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

79) A JIT inventory system is likely to result in

A) a buffer stock of inventory.

B) additional inventory holding costs.

C) increased inventory turnover.

D) decreased service levels.

Difficulty: 2 Medium

Topic: Just-in-Time (JIT) Inventory System

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

80) Parts arrive at the stage of the production process just when they are needed with a ________ inventory system.

A) raw materials

B) work-in-process

C) finished goods

D) JIT

Difficulty: 1 Easy

Topic: Just-in-Time (JIT) Inventory System

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

81) A JIT system

A) increases inventory turnover.

B) reduces inventory holding costs.

C) decreases total labor costs.

D) increases buffer stock of inventory.

Difficulty: 2 Medium

Topic: Just-in-Time (JIT) Inventory System

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

82) A disadvantage of a JIT system is that it

A) increases inventory turnover.

B) reduces inventory holding costs.

C) ties up much capital in inventory.

D) leaves no buffer stock in inventory.

Difficulty: 2 Medium

Topic: Just-in-Time (JIT) Inventory System

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

83) Chauncey takes a job with a manufacturing firm and is appointed to a self-managed work team. As a member of a this type of team, he should expect to be involved in

A) learning all team tasks.

B) setting the company vision.

C) closely supervising the team.

D) reducing job-to-job movement.

Difficulty: 3 Hard

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Teamwork

Accessibility: Keyboard Navigation

84) In a self-managed work team

A) the typical team consists of 5 to 10 members.

B) each member specializes in any one area of work.

C) team members delegate responsibility to supervisors.

D) a tall organizational hierarchy is created.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Teamwork

Accessibility: Keyboard Navigation

85) The responsibilities of a member of a self-managed work team are generally those of ________ in a non-self-managed work team.

A) assembly line workers

B) non-managerial employees

C) top-level managers

D) first-line managers

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Teamwork

Accessibility: Keyboard Navigation

86) The radical redesign of the way work is done in order to achieve dramatic improvements in critical measures of performance is known as

A) continuous improvement.

B) kanban.

C) kaizen.

D) process reengineering.

Difficulty: 1 Easy

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

87) Ford Motor Company reorganized its procurement process by simplifying and streamlining the process itself and as a result was able to cut the size of the accounts payable department by 95 percent. This is an example of

A) retrenchment.

B) kanban.

C) kaizen.

D) reengineering.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

88) The job of encouraging improvements by emphasizing the need for continuous improvement or reengineering is the role of

A) top management.

B) middle management.

C) first-line supervisors.

D) customers.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

89) The people in the best position to identify opportunities for improving efficiency are

A) top-level managers.

B) staff managers.

C) functional-level managers.

D) workers.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

90) Ricardo, the CEO of Sunflower Organics, hires a consultant, Saadia, to analyze his production process. Ricardo has been using the same production process for the nearly twenty years he's been in business. His employees are essentially specialists, with each well-trained in performing one specific task or set of tasks. Saadia notes that, because of this, there is a high level of employee boredom, leading to turnover, and when someone is out sick, there is no one able to take over their duties. She suggests he switch to a self-managed team model for his production-line employees. After a few months, what does Ricardo most likely observe about the results of this switch?

A) The lack of accountability is a problem; without direct supervision, workers slack off more.

B) The team still looks to higher management for direction in terms of its decision-making processes.

C) Efficiency is better than ever; team members feel empowered and work better and faster as a result.

D) Although the team members have more flexibility in their jobs, their efficiency does not notably improve.

Difficulty: 3 Hard

Topic: Self-Managed Teams

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Apply

AACSB: Teamwork

Accessibility: Keyboard Navigation

91) Define the three stages of the manufacturing production process, and give a practical business example of each of these stages.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-01 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

92) Discuss the link between customer responsiveness and an organization's production system.

Difficulty: 2 Medium

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-01 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

93) List the five attributes customers prefer in a product, and explain the central problem managers face in attempting to accommodate these preferences.

• A lower price to a higher price 
• High-quality products to low-quality products 
• Quick service to slow service 
• Products with many features to products with few features 
• Products that are, as far as possible, customized or tailored to their unique needs

Obviously, the problem is that other things are not equal. For example, providing high quality, quick service, after-sales service and support, products with many features, and products that are customized raises costs, and thus the price that must be charged to cover costs. So customers' demands for these attributes typically conflict with their demands for low prices. Accordingly, customers must make a trade-off between price and preferred attributes, and so must managers.

Difficulty: 2 Medium

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

94) Explain why it is important for production systems to be responsive to customers, and list some of the operations management techniques that organizations adopt in order to increase their ability to be responsive.

Difficulty: 2 Medium

Topic: Organizational Responsiveness

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

95) Define customer relationship management (CRM), and discuss how it helps maximize the value an organization can deliver to its customers over time.

Difficulty: 2 Medium

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

96) Discuss the ways in which CRM can improve marketing in a company.

Difficulty: 2 Medium

Topic: Customer Relationship Management (CRM)

Learning Objective: 14-02 Describe what customers want, and explain why it is so important for managers to be responsive to their needs.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

97) Identify and discuss the two reasons that managers seek to control and improve the quality of their organization's products.

Difficulty: 2 Medium

Topic: Total Quality Management (TQM)

Learning Objective: 14-03 Explain why achieving superior quality is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

98) Describe a real-life company that has a reputation for high-quality products, and describe how this reputation affects both its products and its desirability among consumers.

Difficulty: 3 Hard

Topic: Total Quality Management (TQM)

Learning Objective: 14-03 Explain why achieving superior quality is so important.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

99) List the three major facilities layouts, and describe what sorts of products each is best suited for.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

100) Describe what is meant by flexible manufacturing systems. In addition to reducing costs, describe the other major advantage of a flexible manufacturing system.

It follows that if setup times for complex production equipment can be reduced, so can setup costs, and efficiency will rise. In other words, if setup times can be reduced, the time that plant and employees spend in actually producing something will increase. This simple insight has been the driving force behind the development of flexible manufacturing techniques. Another favorable outcome from flexible manufacturing is that a company is able to produce many more varieties of a product than before in the same amount of time. Thus, flexible manufacturing increases a company's ability to be responsive to its customers.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

101) Describe a just-in-time (JIT) inventory system.

Difficulty: 2 Medium

Topic: Just-in-Time (JIT) Inventory System

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

102) Explain an advantage of using the JIT inventory system. Explain a disadvantage of using this system.

One drawback of JIT systems is that they leave an organization without a buffer stock of inventory. Although buffer stocks of inventory can be expensive to store, they can help an organization when it is affected by shortages of inputs brought about by a disruption among suppliers (such as a labor dispute in a key supplier). Moreover, buffer stocks can help an organization respond quickly to increases in customer demand—that is, they can increase an organization's responsiveness to customers.

Difficulty: 2 Medium

Topic: Just-in-Time (JIT) Inventory System

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

103) Explain why self-managed work teams can boost efficiency. If a firm is considering creating self-managed work teams, how should it prepare workers?

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

104) Define process reengineering, and explain how it can lead to dramatic improvements in critical measures of performance such as cost, quality, service, and speed.

Difficulty: 2 Medium

Topic: Inputs

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

105) What are the ethical implications of adoption of techniques like JIT, flexible manufacturing, self-managed work teams, and reengineering? Do the benefits gained through the use of such techniques outweigh their costs?

Difficulty: 2 Medium

Topic: Ethical Dilemma

Learning Objective: 14-04 Explain why achieving superior efficiency is so important.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation