Operations & Productivity – Ch1 Test Bank | 10e Global

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Operations Management, 10e, Global Edition (Heizer/Render)

Chapter 1 Operations and Productivity

1) Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements.

Diff: 1

Topic: Global company profile

Objective: LO1-1

2) The production process at Hard Rock Café is limited to meal preparation and serving customers.

Diff: 1

Topic: Global company profile

Objective: LO1-1

3) All organizations, including service firms such as banks and hospitals, have a production function.

Diff: 2

Topic: What is operations management?

Objective: LO1-1

4) Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs.

Diff: 1

Topic: What is operations management?

Objective: LO1-1

5) An example of a "hidden" production function is money transfers at banks.

Diff: 2

Topic: What is operations management?

Objective: LO1-1

6) One reason to study operations management is to learn how people organize themselves for productive enterprise.

Diff: 1

Topic: Why study OM?

Objective: LO1-1

7) The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function.

Diff: 1

Topic: What operations managers do

Objective: LO1-1

8) "How much inventory of this item should we have?" is within the critical decision area of managing quality.

Diff: 1

Topic: What operations managers do

Objective: LO1-1

9) In order to have a career in operations management, one must have a degree in statistics or quantitative methods.

Diff: 1

Topic: What operations managers do

Objective: LO1-1

10) Henry Ford is known as the Father of Scientific Management.

Diff: 1

Topic: The heritage of operations management

Objective: LO1-1

11) Shewhart's contributions to operations management came during the Scientific Management Era.

Diff: 1

Topic: The heritage of operations management

Objective: LO1-1

12) Customer interaction is often high for manufacturing processes, but low for services.

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

13) Productivity is more difficult to improve in the service sector.

Diff: 2

Topic: The productivity challenge

Objective: LO1-6

14) Manufacturing now constitutes the largest economic sector in postindustrial societies.

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

15) In the past half-century, the number of people employed in manufacturing has more or less held steady, but each manufacturing employee is manufacturing about 20 times as much.

Diff: 1

Topic: Operations in the service sector

Objective: LO1-2

16) A knowledge society is one that has migrated from work based on knowledge to one based on manual work.

Diff: 1

Topic: The productivity challenge

Objective: LO1-3

17) Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced.

Diff: 1

Topic: The productivity challenge

Objective: LO1-3

18) Measuring the impact of a capital acquisition on productivity is an example of multifactor productivity.

Diff: 2

Topic: The productivity challenge

Objective: LO1-5

19) Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives.

Diff: 1

Topic: Ethics and social responsibility

AACSB: Ethical Reasoning

Objective: no LO

20) At Hard Rock Café, tasks that reflect operations or operations management include

A) designing meals

B) testing meals (recipes)

C) analyzing meals for the cost of ingredients

D) preparing employee schedules

E) all of the above

Diff: 1

Topic: Global company profile

Objective: LO1-1

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) all of the above

Diff: 2

Topic: Global company profile

Objective: LO1-1

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 and service

E) to the manufacturing sector exclusively

Diff: 2

Topic: What is operations management?

Objective: LO1-1

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

A) operations, marketing, and human resources

B) marketing, human resources, and finance/accounting

C) sales, quality control, and operations

D) marketing, operations, and finance/accounting

E) research and development, finance/accounting, and purchasing

Diff: 2

Topic: Organizing to produce goods and services

Objective: LO1-1

24) Budgeting, paying the bills, and collection of funds are activities associated with the

A) management function

B) control function

C) finance/accounting function

D) production/operations function

E) staffing function

Diff: 2

Topic: Organizing to produce goods and services

Objective: LO1-1

25) Which of the following would not be an operations function in a fast-food restaurant?

A) advertising and promotion

B) designing the layout of the facility

C) maintaining equipment

D) making hamburgers and fries

E) purchasing ingredients

Diff: 2

Topic: Organizing to produce goods and services

Objective: LO1-1

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

Diff: 2

Topic: Organizing to produce goods and services

Objective: LO1-1

27) Which of the following tasks within an Airline Company are related to Operations?

A) Crew Scheduling

B) International Monetary Exchange

C) Reservations

D) Advertising

E) Design of aircraft safety features

Diff: 2

Topic: Organizing to produce goods and services

Objective: LO1-1

28) Reasons to study Operations Management include

A) studying why people organize themselves for productive enterprise

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) A and D

Diff: 2

Topic: Why study OM?

Objective: LO1-1

29) Reasons to study Operations Management include learning about

A) why 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) all of the above

Diff: 1

Topic: Why study OM?

Objective: LO1-1

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

Diff: 1

Topic: What operations managers do

Objective: LO1-1

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%

Diff: 2

Topic: Productivity variables

AACSB: Multicultural and Diversity

Objective: LO1-6

32) Which of the following is not an element of the management process?

A) controlling

B) leading

C) planning

D) pricing

E) staffing

Diff: 1

Topic: What operations managers do

Objective: LO1-1

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

Diff: 1

Topic: What operations managers do

Objective: LO1-1

34) All of the following decisions fall within the scope of operations management except for

A) financial analysis

B) design of goods and processes

C) location of facilities

D) managing quality

E) All of the above fall within the scope of operations management.

Diff: 1

Topic: What operations managers do

Objective: LO1-1

35) The Ten Critical Decisions of Operations Management include

A) layout strategy

B) maintenance

C) process and capacity design

D) managing quality

E) all of the above

Diff: 1

Topic: Why study OM?

Objective: LO1-1

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

Diff: 2

Topic: Why study OM?

Objective: LO1-1

37) The Ten Critical Decisions of Operations Management include

A) finance/accounting

B) advertising

C) process and capacity design

D) ricing

E) all of the above

Diff: 2

Topic: Why study OM?

Objective: LO1-1

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) All of the above

Diff: 2

Topic: Why study OM?

Objective: LO1-1

39) ASQ, ISM, APICS, and PMI are important professional organizations to operations management because

A) they provide certification for professionals

B) they allow professionals to keep up with industry developments

C) they facilitate professional networking

D) none of the above

E) all of the above

Diff: 2

Topic: What operations managers do

Objective: LO1-1

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) all of the above

Diff: 2

Topic: The heritage of operations management

Objective: LO1-1

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) none of the above

Diff: 2

Topic: The heritage of operations management

Objective: LO1-1

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) none of the above

Diff: 2

Topic: The heritage of operations management

Objective: LO1-1

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

Diff: 2

Topic: The heritage of operations management

Objective: LO1-1

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

Diff: 1

Topic: The heritage of operations management

Objective: LO1-1

45) Henry Ford is noted for his contributions to

A) standardization of parts

B) statistical quality control

C) assembly line operations

D) scientific management

E) time and motion studies

Diff: 1

Topic: The heritage of operations management

Objective: LO1-1

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

Diff: 2

Topic: The heritage of operations management

Objective: LO1-1

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

Diff: 2

Topic: The heritage of operations management

Objective: LO1-1

48) Which of the following is the best example of a pure service?

A) counseling

B) oil Change

C) heart transplant

D) electric Co-Op

E) all of the above

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

49) Which of the following statements is true?

A) The person most responsible for initiating 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 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 use of interchangeable parts in manufacturing was Henry Ford.

Diff: 2

Topic: The heritage of operations management

Objective: LO1-1

50) The service industry makes up approximately what percentage of all jobs in the United States?

A) 12%

B) 40%

C) 66%

D) 79%

E) 90%

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

51) Typical differences between goods and services do not include

A) cost per unit

B) ability to inventory items

C) timing of production and consumption

D) customer interaction

E) knowledge content

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

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 is true.

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

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

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

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

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

55) Which of the following statements contributing to the growth of services is true?

A) Services now constitute the largest economic sector in postindustrial societies

B) The number of people employed in manufacturing has more or less held steady since 1950

C) Each manufacturing employee now produces about 20 times more than in 1950

D) All of the above are true.

E) None of the above is true.

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

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

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

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

A) mass production

B) consistency

C) automation

D) application of operations management

E) all of the above

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

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) All of the above are current trends.

Diff: 2

Topic: Exciting new trends in operations management

Objective: LO1-1

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) All of the above are current trends.

Diff: 2

Topic: Exciting new trends in operations management

Objective: LO1-1

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.

Diff: 2

Topic: Exciting new trends in operations management

Objective: LO1-1

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) All of the above statements are false.

Diff: 2

Topic: Exciting new trends in operations management

Objective: LO1-1

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) none of the above

Diff: 1

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

63) A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it would then be

A) 14.4 covers/hr

B) 24 covers/hr

C) 240 valves/hr

D) 1200 covers/hr

E) none of the above

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

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

Diff: 1

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

65) 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

B) 200 valves/hr

C) 220 valves/hr

D) 880 valves/hr

E) 1760 valves/hr

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

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, labor productivity will increase by

A) 10%

B) 20%

C) 25%

D) 40%

E) 50%

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

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) none of the above

E) not enough data to determine productivity

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

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

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

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 production?

A) It has increased by 50 sets/shift.

B) It has increased by 37.5 sets/hr.

C) It has increased by 20%.

D) It has decreased by 8.3%.

E) It has decreased by 9.1%.

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

70) Productivity measurement is complicated by

A) the competition's output

B) the fact that precise units of measure are often unavailable

C) stable quality

D) the workforce size

E) the type of equipment used

Diff: 2

Topic: The productivity challenge

Objective: LO1-3

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) none of the above

Diff: 2

Topic: The productivity challenge

Objective: LO1-5

72) Which of the following inputs has the greatest potential to increase productivity?

A) labor

B) globalization

C) management

D) capital

E) none of the above

Diff: 2

Topic: The productivity challenge

Objective: LO1-6

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%

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-5

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) none of the above

Diff: 2

Topic: The productivity challenge

Objective: LO1-6

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) labor; two-thirds

D) capital; 90%

E) technology; over one-half

Diff: 2

Topic: The productivity challenge

Objective: LO1-6

76) The factor responsible for the largest portion of productivity increase in the U.S. is

A) labor

B) management

C) capital

D) All three combined; it is impossible to determine the contribution of individual factors.

E) None of these; most productivity increases come from investment spending.

Diff: 2

Topic: The productivity challenge

Objective: LO1-6

77) 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-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.

Diff: 2

Topic: The productivity challenge

Objective: LO1-6

78) Three commonly used productivity variables are

A) quality, external elements, and precise units of measure

B) labor, capital, and management

C) technology, raw materials, and labor

D) education, diet, and social overhead

E) quality, efficiency, and low cost

Diff: 2

Topic: The productivity challenge

Objective: LO1-3

79) The service sector has lower productivity improvements than the manufacturing sector because

A) the service sector uses less skilled labor than manufacturing

B) the quality of output is lower in services than manufacturing

C) services usually are labor-intensive

D) service sector productivity is hard to measure

E) none of the above

Diff: 2

Topic: The productivity challenge

Objective: LO1-6

80) Productivity tends to be more difficult to improve in the service sector because the work is

A) often difficult to automate

B) typically labor-intensive

C) frequently processed individually

D) often an intellectual task performed by professionals

E) All of the above make service productivity more difficult.

Diff: 2

Topic: The productivity challenge

Objective: LO1-6

81) 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

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

82) 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%

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

83) 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 % has multifactor productivity fallen?

A) 0%

B) 8.3%

C) 25%

D) 50%

E) none of the above or unable to determine

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-5

84) Among the ethical and social challenges facing operations managers are

A) honoring stakeholder commitments

B) maintaining a clean environment

C) efficiently developing and producing safe quality products

D) providing a safe workplace

E) all of the above

Diff: 1

Topic: Ethics and social responsibility

AACSB: Ethical Reasoning

Objective: no LO

85) Among the ethical and social challenges facing operations managers are

A) honoring financial commitments

B) maintaining a clean environment

C) developing low-cost products

D) providing an efficient workplace

E) all of the above

Diff: 2

Topic: Ethics and social responsibility

AACSB: Ethical Reasoning

Objective: no LO

86) Which of the following is not among the ethical and social challenges facing operations managers?

A) honoring stakeholder commitments

B) maintaining a clean environment

C) efficiently developing and producing safe quality products

D) increasing executive pay

E) providing a safe workplace

Diff: 1

Topic: Ethics and social responsibility

AACSB: Ethical Reasoning

Objective: no LO

87) A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include

A) the community

B) suppliers

C) owners

D) employees

E) all of the above

Diff: 1

Topic: Ethics and social responsibility

AACSB: Ethical Reasoning

Objective: no LO

88) Starbucks stopped requiring signatures on credit-card purchases under $25 in an attempt to reduce __________ .

Diff: 1

Topic: The productivity challenge

Objective: LO1-6

89) __________ is the set of activities that transforms inputs into goods and services.

Diff: 1

Topic: What is operations management?

Objective: LO1-1

90) Marketing, Production, and __________ are the three functions that all organizations must perform to create goods and services.

Diff: 1

Topic: Organizing to produce goods and services

Objective: LO1-1

91) "Should we make or buy this component?" is an issue in the __________ critical decision area.

Diff: 1

Topic: What operations managers do

Objective: LO1-1

92) Henry Ford and __________ are credited with the development of the moving assembly line.

Diff: 1

Topic: The heritage of operations management

Objective: LO1-1

93) When a tangible product is not included in a service, such as with counseling, it is called a __________.

Diff: 1

Topic: Operations in the service sector

Objective: LO1-2

94) __________ is the ability of the organization to be flexible enough to cater to the individual whims of consumers.

Diff: 2

Topic: Exciting new trends in operations management

Objective: LO1-1

95) __________ is the operations management trend that moves more decision making to the individual worker.

Diff: 2

Topic: Exciting new trends in operations management

Objective: LO1-1

96) __________ is the total of all outputs produced by the transformation process divided by the total of the inputs.

Diff: 1

Topic: The productivity challenge

Objective: LO1-5

97) Productivity is the ratio of __________ to __________. Using this relationship, productivity can be improved by __________ or __________.

Diff: 2

Topic: The productivity challenge

Objective: LO1-6

98) Identify three or more operations-related tasks carried out by Hard Rock Café.

Diff: 1

Topic: Global company profile

Objective: no LO

99) Identify two operations-related tasks carried out by Hard Rock Café. Match each to its area of the Ten Critical Decisions.

Diff: 2

Topic: Global company profile

Objective: no LO

100) Define operations management. Will your definition accommodate both manufacturing and service operations?

Diff: 1

Topic: What is operations management?

Objective: LO1-1

101) Identify the items that Fredrick W. Taylor believed management should be more responsible for.

Diff: 2

Topic: The heritage of operations management

Objective: LO1-1

102) Operations managers should be well versed in what disciplines in order to make good decisions?

Diff: 2

Topic: The heritage of operations management

Objective: LO1-1

103) Why are services typically more difficult to standardize, automate, and make efficient?

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

104) How do services differ from goods? Identify five ways.

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

105) Services are often knowledge-based. Provide two examples, and explain why they are knowledge-based.

Diff: 2

Topic: Operations in the service sector

Objective: LO1-2

106) Why are organizations changing from batch (large) shipments to just-in-time (JIT) shipments?

Diff: 2

Topic: Exciting new trends in operations management

Objective: LO1-1

107) Why are organizations becoming more global?

Diff: 2

Topic: Exciting new trends in operations management

Objective: LO1-1

108) Identify the three productivity variables used in the text.

Diff: 2

Topic: Productivity variables

Objective: LO1-6

109) What is a knowledge society?

Diff: 2

Topic: The productivity challenge

Objective: LO1-6

110) Why are operations managers faced with ethical and social challenges?

Diff: 1

Topic: Ethics and social responsibility

AACSB: Ethical Reasoning

Objective: LO1-1

111) What are some of the ethical and social challenges faced by operations managers?

Diff: 1

Topic: Ethics and social responsibility

AACSB: Ethical Reasoning

Objective: LO1-1

112) As the administrative manager in a law office, you have been asked to develop a system for evaluating the productivity of the 15 lawyers in the office. What difficulties are you going to have in doing this, and how are you going to overcome them?

Categories of cases can help–(i.e., uncontested divorce, no personal injury auto case, etc.) However, many firms end up counting hours billed. This in turns leads to other problems, as noted by the number of false billing cases.

Diff: 2

Topic: The productivity challenge

AACSB: Reflective Thinking

Objective: LO1-6

113) Susan has a part-time "cottage industry" producing seasonal plywood yard ornaments for resale at local craft fairs and bazaars. She currently works 8 hours per day to produce 16 ornaments.

a. What is her productivity?

b. She thinks that by redesigning the ornaments and switching from use

of a wood glue to a hot-glue gun she can increase her total

production to 20 ornaments per day. What is her new productivity?

c. What is her percentage increase in productivity?

b. 20 ornaments/8 hours = 2.5 ornaments/hour

c. Change in productivity = 0.5 ornaments/hour; percent change = 0.5/2= 25%

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

114) A firm cleans chemical tank cars in the Bay St. Louis area. With standard equipment, the firm typically cleaned 70 chemical tank cars per month. They utilized 10 gallons of solvent, and two employees worked 20 days per month, 8 hours a day. The company decided to switch to a larger cleaning machine. Last April, they cleaned 60 tank cars in only 15 days. They utilized 12 gallons of solvent, and the two employees worked 6 hours a day.

1. What was their raw material and their labor productivity with the standard equipment?

2. What is their raw material and their labor productivity with the larger machine?

3. What is the change in each productivity measure?

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

115) The Dulac Box plant produces wooden packing boxes to be used in the local seafood industry. Current operations allow the company to make 500 boxes per day, in two 8-hour shifts (250 boxes per shift). The company has introduced some small changes in equipment, and conducted appropriate job training, so that production levels have risen to 300 boxes per shift. These changes did not require any change in the amount of capital spending or energy use. What is the firm's new labor productivity?

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

116) Mark's Ceramics spent $4000 on a new kiln last year in the belief that it would cut energy usage 25% over the old kiln. This kiln is an oven that turns "greenware" into finished pottery. Mark is concerned that the new kiln requires extra labor hours for its operation. Mark wants to check the energy savings of the new oven, and also to look over other measures of their productivity to see if the change really was beneficial. Mark has the following data to work with:

Were the modifications beneficial?

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-5

117) Martin Manufacturing has implemented several programs to improve its productivity. They have asked you to evaluate the firm's productivity by comparing this year's performance with last year's. The following data are available:

Has Martin Manufacturing improved its productivity during the past year?

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-5

118) Felicien grows mirlitons (that's Cajun for Chayote squash) in his 100 by 100 foot garden. He then sells the crop at the local farmers' market. Two summers ago, he was able to produce and sell 1200 pounds of mirlitons. Last summer, he tried a new fertilizer that promised a 50% increase in yield. He harvested 1900 pounds. Did the fertilizer live up to its promise?

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

119) The Dulac Box plant produces wooden packing boxes to be used in the local seafood industry. Current operations allow the company to make 500 boxes per day, in two 8-hour shifts (250 boxes per shift). The company has introduced some moderate changes in equipment, and conducted appropriate job training, so that production levels have risen to 300 boxes per shift. Labor costs average $10 per hour for each of the 5 full-time workers on each shift. Capital costs were previously $3,000 per day, and rose to $3,200 per day with the equipment modifications. Energy costs were unchanged by the modifications, at $400 per day. What is the firm's multifactor productivity before and after the changes?

MFP after: 600 boxes / ($10x5x16 + $3200 + $400) = 600 / 4400 = 0.136 boxes/dollar

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-5

120) Gibson Products produces cast bronze valves for use in offshore oil platforms. Currently, Gibson

produces 1600 valves per day. The 20 workers at Gibson work from 7 a.m. until 4 p.m., with 30 minutes off for lunch and a 15 minute break during the morning work session and another at the afternoon work session. Gibson is in a competitive industry, and needs to increase productivity to stay competitive. They feel that a 20 percent increase is needed.

Gibson's management believes that the 20 percent increase will not be possible without a change in working conditions, so they change work hours. The new schedule calls on workers to work from 7:30 a.m. until 4:30 p.m., during which workers can take one hour off at any time of their choosing. Obviously, the number of paid hours is the same as before, but production increases, perhaps because workers are given a bit more control over their workday. After this change, valve production increased to 1800 units per day.

a. Calculate labor productivity for the initial situation

b. Calculate labor productivity for the hypothetical 20 percent increase

c. What is the productivity after the change in work rules?

d. Write a short paragraph analyzing these results.

(a) Workers are active for eight hours per day; labor productivity is 10 valves/hour

(b) If Productivity rises by 20 percent, to 12 valves/hour; output would be 12x8x20 = 1920

(c) New productivity is 1800 / (20 x 8) = 11.25 valves/hour

(d) Gibson did not gain the desired 20 percent increase in productivity, but they did gain over 11 percent, without extra equipment or energy, and without increasing the labor cost.

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

121) A local university is considering changes to its class structure in an effort to increase professor productivity. The old schedule had each professor teaching 5 classes per week, with each class meeting an hour per day on Monday, Wednesday, and Friday. Each class contained 20 students. The new schedule has each professor teaching only 3 classes, but each class meets daily for an hour. New classes contain 50 students.

a. Calculate the labor productivity for the initial situation (students/hour).

b. Calculate the labor productivity for the schedule change (students/hour).

c. Are there any ethical considerations that should be accounted for?

D Suppose that each teacher also is required to have 2 hours of Office Hours each day he/she taught class. Is the schedule change a productivity increase?

(a) Professors teach 100 students in 15 hours or 6.67 students/hour.

(b) Professors teach 150 students in 15 hours or 10 students/hour.

(c) Responses should focus on honoring stakeholder commitment and can include students per professor ratio, class sizes, quality of education, etc.

(d) Initial productivity is 100 students in 21 hours or 4.76 students/hour. New productivity is 150 students in 25 hours or 6 students/hour, an increase or 1.24 students/hour.

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

122) A grocery chain is considering the installation of a set of 4 self-checkout lanes. The new self-checkout lane setup will replace 2 old cashier lanes that were staffed by a cashier and bagger on each lane. One cashier mans all 4 self-checkouts (answering questions, checking for un-scanned items, taking coupons, etc). Checkout on the new lanes takes 2 minutes (customers bag their own orders) while checkout with the old lanes took only 45 seconds. In addition the electricity costs for both setups are $.05 per checkout while bagging (material) costs are $.1 per checkout with the old system and $.15 for the new system. The new lanes also require $100 in capital costs. Assume that the lanes are always in use for 8 hours per day (1 shift) and that a worker makes $10/hour.

a. How many checkouts did the old system provide in a shift?

b. How many checkouts does the new system provide?

c. What is the multifactor productivity for each system?

(a) 2 lanes* 8 hours * 3600 seconds/hour *1checkout/45 seconds = 1280 checkouts

(b) 4 lanes * 8 hours * 60 minutes/hour * 1checkout/2min = 960 checkouts

(c) Cost for the old system 4 workers * 8 hours * $10/hour + $.1*1280 + $.05*1280= $512. Cost for the new system 1 worker * 8 hours * $10/hour + $.15*960 + $.05*960 + $100 =$372. Multifactor productivity for old system = 1280 checkouts / $512 = 2.5 checkouts/$. Multifactor productivity for new system = 960 checkouts / $372 = 2.6 checkouts/$.

Diff: 3

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-5

123) A swimming pool company has 100,000 labor hours available per summer and with a labor productivity of 5 pools per 6,000 hours.

a. How many pools can the company install this summer?

b. Suppose the multifactor productivity was one pool per $25,000. How much should the company expect to spend this summer constructing the pools?

(a) 100,000 hours * 5 pools/6000 hours = 83.33 or 83 pools

(b) 83 pools * $25,000/pool = $2,075,000

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

124) An industrial plant needs to make 100,000 parts per month to meet demand. Each month contains 20 working days, each of which allows for 3 separate 8 hour shifts.

a. If a worker can produce 10 parts/hour, how many workers are needed on each shift?

b. If each shift has 100 workers, what is the productivity of an individual worker?

c. If material costs are $10/part, capital costs are $100,000 and labor costs are $10/hour, what is the multifactor productivity of the plant from part A?

Answer

a. 100,000 parts * 1 hour / 10 parts * 1 shift / 8 hours * 1 worker/60 shifts = 20.83 = 21 workers

b. 100,000 parts / (60 shifts/worker * 100 workers * 8 hours/shift) = 2.08 parts/hour

c. 100,000 parts / ($10/part * 100,000 parts + $100,000 + 21 workers * 60 shifts/worker * 8 hours/shift*$10/hour) = .083 parts/$1

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

125) The local fast food store experienced the following number of customers on the night shift

Hour----------------Customers

12 AM 23

1 AM 20

2 AM 15

3 AM 5

4 AM 2

5 AM 1

If the store was staffed by two workers, what was the average productivity per worker, in customers/hour?

Diff: 2

Topic: The productivity challenge

AACSB: Analytic Skills

Objective: LO1-4

126) Brandon Production is a small firm focused on the assembly and sale of custom computers. The firm is facing stiff competition from low-priced alternatives, and is looking at various solutions to remain competitive and profitable. Current financials for the firm are shown in the table below. In the first option, marketing will increase sales by 50%. The next option is Vendor (Supplier) changes, which would result in a decrease of 10% in the cost of inputs. Finally there is an OM option, which would reduce production costs 25%. Which of the options would you recommend to the firm if it can only pursue one option? In addition, comment on the feasibility of each option.

Business Function Current Value

Cost of Inputs $50,000

Production Costs $25,000

Revenue $80,000

Diff: 2

Topic: Why study OM?

AACSB: Analytic Skills

Objective: LO1-1