University of North Carolina, Greensboro

FIN 315

Chapter 1

1)Operations management is applicable

1. 1. mostly to the service sector
   2. to services exclusively
   3. mostly to the manufacturing sector
   4. to all firms, whether manufacturing and service
   5. to the manufacturing sector exclusively

2. Budgeting, paying the bills, and collection of funds are activities associated with the
   1. management function
   2. control function
   3. finance/accounting function
   4. production/operations function
   5. staffing function

3. The marketing function's main concern is with
   1. producing goods or providing services
   2. procuring materials, supplies, and equipment
   3. building and maintaining a positive image
   4. generating the demand for the organization's products or services
   5. securing monetary resources

4. Reasons to study Operations Management include learning about
   1. why people organize themselves for productive enterprise
   2. how goods and services are produced
   3. what operations managers do
   4. a costly part of the enterprise
   5. all of the above

5. The responsibilities of the operations manager include
   1. planning, organizing, staffing, procuring, and reviewing
   2. forecasting, designing, planning, organizing, and controlling
   3. forecasting, designing, operating, procuring, and reviewing
   4. planning, organizing, staffing, leading, and controlling
   5. designing and operating

6. An operations manager is not likely to be involved in
   1. the design of products and services to satisfy customers' wants and needs
   2. the quality of products and services to satisfy customers' wants and needs
   3. the identification of customers' wants and needs
   4. work scheduling to meet the due dates promised to customers
   5. forecasting sales

7. The Ten Critical Decisions of Operations Management include
   1. Layout design
   2. Maintenance
   3. Process and capacity design
   4. Quality management
   5. all of the above

8. The Ten Critical Decisions of Operations Management include
   1. Finance/accounting
   2. Hiring
   3. Process and capacity design
   4. Pricing
   5. all of the above

9. Walter Shewhart, in the           , provided the foundations for              in operations management.
   1. 1920s; statistical sampling
   2. United Kingdom; mass production
   3. U.S. Army; logistics
   4. nineteenth century; interchangeable parts
   5. none of the above

10. The person most responsible for popularizing interchangeable parts in manufacturing was
    1. Frederick Winslow Taylor
    2. Henry Ford
    3. Eli Whitney
    4. Whitney Houston
    5. Lillian Gilbreth

11. Henry Ford is noted for his contributions to
    1. standardization of parts
    2. statistical quality control
    3. assembly line operations
    4. scientific management
    5. time and motion studies

12. The field of operations management is shaped by advances in which of the following fields?
    1. chemistry and physics
    2. industrial engineering and management science
    3. biology and anatomy
    4. information sciences
    5. all of the above

13. Which of the following statements is true?
    1. The person most responsible for initiating use of interchangeable parts in manufacturing was Eli Whitney.
    2. The origins of management by exception are generally credited to Frederick W. Taylor.
    3. The person most responsible for initiating use of interchangeable parts in manufacturing was Walter Shewhart.
    4. The origins of the scientific management movement are generally credited to Henry For
    5. The person most responsible for initiating use of interchangeable parts in manufacturing was Henry Ford.

14. Typical differences between goods and services do not include
    1. cost per unit
    2. ability to inventory items
    3. timing of production and consumption
    4. customer interaction
    5. knowledge content

15. Which of the following is not a typical attribute of goods?
    1. output can be inventoried
    2. often easy to automate
    3. aspects of quality difficult to measure
    4. output can be resold
    5. production and consumption are separate

16. Which of the following is not a typical service attribute?
    1. intangible product
    2. easy to store
    3. customer interaction is high
    4. simultaneous production and consumption
    5. difficult to resell

17. Current trends in operations management include all of the following except
    1. just-in-time performance
    2. rapid product development
    3. mass customization
    4. empowered employees
    5. All of the above are current trends.

18. One new trend in operations management is
    1. global focus
    2. mass customization
    3. empowered employees
    4. rapid product development
    5. All of the above are new trends in operations management.

19. 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
    1. 1.2 covers/hr
    2. 2 covers/hr
    3. 12 covers/hr
    4. 1200 covers/hr
    5. none of the above

20. 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
    1. 2 valves/hr
    2. 40 valves/hr
    3. 80 valves/hr
    4. 200 valves/hr
    5. 1600 valves/hr

21. 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%

22. The Dulac Box plant produces 500 cypress packing boxes in two 8-hour shifts. The use of new technology has enabled them to increase productivity by 30%. Productivity is now approximately
    1. 32.5 boxes/hr
    2. 40.6 boxes/hr
    3. 62.5 boxes/hr
    4. 81.25 boxes/hr
    5. 300 boxes/hr

23. Productivity measurement is complicated by
    1. the competition's output
    2. the fact that precise units of measure are often unavailable
    3. stable quality
    4. the workforce size
    5. the type of equipment used