(Test Bank) Operations Management, Canadian Edition

Heizer, 3

Business

Test Bank

3rd Edition

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Test Bank for Operations Management, Canadian Edition, The downloadable file consists of 1140 pages, and the total size of the file is 19.12 MB. Purchase now only for highly discounted price.

Author(s): Heizer

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1 © 2020 Pearson Canada Inc. Operations Management, Cdn. Ed., 3e (Heizer/Render/Griffin) 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 labour requirements. Answer: TRUE Diff: 1 Type: TF Skill: comprehension Objective: LO1 Define operations management 2) Because Hard Rock Cafés are themed restaurants, operations managers focus their layout design efforts on attractiveness while paying little attention to efficiency. Answer: FALSE Diff: 1 Type: TF Skill: comprehension Objective: LO1 Define operations management 3) All organizations, including service firms such as banks and hospitals, have a production function. Answer: TRUE Diff: 2 Type: TF Skill: knowledge Objective: LO1 Define operations management 4) Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Answer: TRUE Diff: 1 Type: TF Skill: knowledge Objective: LO1 Define operations management 5) An example of a "hidden" production function is money transfers at banks. Answer: TRUE Diff: 3 Type: TF Skill: comprehension Objective: LO1 Define operations management 6) One reason to study operations management is to learn how people organize themselves for productive enterprise. Answer: TRUE Diff: 1 Type: TF Skill: knowledge Objective: LO1 Define operations management 2 © 2020 Pearson Canada Inc. 7) The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. Answer: TRUE Diff: 1 Type: TF Skill: knowledge Objective: LO1 Define operations management 8) "How much inventory of this item should we have?" is within the critical decision area of managing quality. Answer: FALSE Diff: 1 Type: TF Skill: comprehension Objective: LO1 Define operations management 9) In order to have a career in operations management one must have a degree in statistics or quantitative methods. Answer: FALSE Diff: 1 Type: TF Skill: knowledge Objective: LO1 Define operations management 10) Henry Ford is known as the Father of Scientific Management. Answer: FALSE Diff: 1 Type: TF Skill: knowledge Objective: LO1 Define operations management 11) Shewhart's contributions to operations management came during the Scientific Management Era. Answer: FALSE Diff: 1 Type: TF Skill: knowledge Objective: LO1 Define operations management 12) Customer interaction is often high for manufacturing processes, but low for services. Answer: FALSE Diff: 2 Type: TF Skill: knowledge Objective: LO2 Explain the distinction between goods and services 13) Productivity is more difficult to improve in the service sector. Answer: TRUE Diff: 2 Type: TF Skill: knowledge Objective: LO6 Identify the critical variables in enhancing productivity 3 © 2020 Pearson Canada Inc. 14) Manufacturing now constitutes the largest economic sector in postindustrial societies. Answer: FALSE Diff: 2 Type: TF Skill: knowledge Objective: LO2 Explain the distinction between goods and services 15) Productivity in Canada has increased significantly every year since 1973. Answer: FALSE Diff: 1 Type: TF Skill: comprehension Objective: LO3 Explain the difference between production and productivity 16) A knowledge society is one that has migrated from work based on knowledge to one based on manual work. Answer: FALSE Diff: 1 Type: TF Skill: knowledge Objective: LO3 Explain the difference between production and productivity 17) Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced. Answer: FALSE Diff: 1 Type: TF Skill: comprehension Objective: LO3 Explain the difference between production and productivity 18) Measuring the impact of a capital acquisition on productivity is an example of multifactor productivity. Answer: FALSE Diff: 3 Type: TF Skill: application Objective: LO5 Compute multifactor productivity 19) Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives. Answer: TRUE Diff: 1 Type: TF Skill: application Objective: Ethics and social responsibility 4 © 2020 Pearson Canada Inc. 20) Which of the following is not one of the Ten Critical Decisions of Operations Management? A) location strategy B) human resources and job design C) managing quality D) design of goods and services E) determining the financial leverage position Answer: E Diff: 2 Type: MC Skill: knowledge Objective: LO1 Define operations management 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) paying suppliers. Answer: D Diff: 2 Type: MC Skill: knowledge Objective: LO1 Define operations management 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 or service. E) to the manufacturing sector exclusively. Answer: D Diff: 2 Type: MC Skill: comprehension Objective: LO1 Define operations management 23) Which of the following are the primary functions of all organizations? A) production/operations, marketing, and human resources B) marketing, human resources, and finance/accounting C) sales, quality control, and production/operations, D) marketing, production/operations, and finance/accounting E) research and development, finance/accounting, and purchasing Answer: D Diff: 2 Type: MC Skill: knowledge Objective: LO1 Define operations management 5 © 2020 Pearson Canada Inc. 24) Which of the following pioneers was not making a professional impact during the Scientific Management Era? A) Frank Gilbreth B) W. Edwards Deming C) Henry L. Gantt D) Lillian Gilbreth E) Frederick W. Taylor Answer: B Diff: 2 Type: MC Skill: comprehension Objective: The heritage of operations management 25) Which of the following would not be an operations function in a commercial bank? A) auditing B) teller scheduling C) maintenance D) collection E) cheque clearing Answer: A Diff: 2 Type: MC Skill: comprehension Objective: LO1 Define operations management 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. Answer: D Diff: 2 Type: MC Skill: knowledge Objective: LO1 Define operations management 27) Which of the following tasks within an Airline Company are related to Operations? A) Crew Scheduling B) International Monetary Exchange C) Sales D) Advertising E) Accounts Payable Answer: A Diff: 2 Type: MC Skill: comprehension Objective: LO1 Define operations management 6 © 2020 Pearson Canada Inc. 28) Reasons to study Operations Management include A) studying how people make decisions. B) knowing how goods and services are consumed. C) understanding what human resource managers do. D) learning about a costly part of the enterprise. E) learning to prepare financial statements. Answer: D Diff: 2 Type: MC Skill: knowledge Objective: LO1 Define operations management 29) Reasons to study Operations Management include learning about all of the following except A) how people organize themselves for productive enterprise. B) how goods and services are produced. C) what operations managers do. D) a costly part of the enterprise. E) how to market a product. Answer: E Diff: 1 Type: MC Skill: knowledge Objective: LO1 Define operations management 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. Answer: D Diff: 1 Type: MC Skill: knowledge Objective: LO1 Define operations management 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% Answer: D Diff: 2 Type: MC Skill: comprehension Objective: LO6 Identify the critical variables in enhancing productivity 7 © 2020 Pearson Canada Inc. 32) Which of the following is not an element of the management process? A) controlling B) leading C) planning D) pricing E) staffing Answer: D Diff: 1 Type: MC Skill: comprehension Objective: LO1 Define operations management 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. Answer: C Diff: 1 Type: MC Skill: comprehension Objective: LO1 Define operations management 34) All of the following decisions fall within the scope of operations management except for A) creating the company income statement. B) design of goods and processes. C) location of facilities. D) managing quality. E) layout of facilities. Answer: A Diff: 1 Type: MC Skill: comprehension Objective: LO1 Define operations management 35) The Ten Critical Decisions of Operations Management include except A) layout strategy. B) maintenance. C) process and capacity design. D) managing quality. E) fiscal year-end. Answer: E Diff: 1 Type: MC Skill: knowledge Objective: LO1 Define operations management 8 © 2020 Pearson Canada Inc. 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 Answer: D Diff: 2 Type: MC Skill: knowledge Objective: LO1 Define operations management 37) The Ten Critical Decisions of Operations Management include A) finance/accounting. B) advertising. C) process and capacity design. D) pricing. E) employee benefits. Answer: C Diff: 2 Type: MC Skill: comprehension Objective: LO1 Define operations management 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) II, III, IV Answer: D Diff: 3 Type: MC Skill: comprehension Objective: LO1 Define operations management 9 © 2020 Pearson Canada Inc. 39) SCC (Standards Council of Canada), ISM (Institute for Supply Management), APICS (Association for Operations Management), and PMI (Project Management Institute) are important professional organizations to operations management because they do all of the following except A) provide certification for professionals. B) allow professionals to keep up with industry developments. C) facilitate professional networking. D) provide opportunities to enhance your education. E) act as employment agencies for professionals. Answer: E Diff: 3 Type: MC Skill: comprehension Objective: LO1 Define operations management 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) project management techniques. Answer: D Diff: 2 Type: MC Skill: knowledge Objective: LO1 Define operations management 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) 21st century; logistics Answer: A Diff: 2 Type: MC Skill: knowledge Objective: LO1 Define operations management 10 © 2020 Pearson Canada Inc. 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) 21st century; logistics Answer: D Diff: 2 Type: MC Skill: knowledge Objective: LO1 Define operations management 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. Answer: C Diff: 2 Type: MC Skill: knowledge Objective: LO1 Define operations management 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. Answer: B Diff: 1 Type: MC Skill: knowledge Objective: LO1 Define operations management 45) Henry Ford is noted for his contributions to A) material requirements planning. B) statistical quality control. C) assembly line operations. D) scientific management. E) time and motion studies. Answer: C Diff: 1 Type: MC Skill: knowledge Objective: LO1 Define operations management 11 © 2020 Pearson Canada Inc. 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 Answer: D Diff: 2 Type: MC Skill: knowledge Objective: LO1 Define operations management 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 Answer: E Diff: 2 Type: MC Skill: comprehension Objective: LO1 Define operations management 48) Which of the following is the best example of a pure service? A) counseling B) oil change C) heart transplant D) restaurant meal E) college course Answer: A Diff: 3 Type: MC Skill: comprehension Objective: LO2 Explain the distinction between goods and services 49) Which of the following statements is true? A) The person most responsible for initiating the use of interchangeable parts in manufacturing was Eli Whitney. B) The origins of management by exception are generally credited to Frederick W. Taylor. C) The person most responsible for initiating the use of interchangeable parts in manufacturing was Walter Shewhart. D) The origins of the scientific management movement are generally credited to Henry Ford. E) The person most responsible for initiating the use of interchangeable parts in manufacturing was Henry Ford. Answer: A Diff: 2 Type: MC Skill: knowledge Objective: LO1 Define operations management 12 © 2020 Pearson Canada Inc. 50) The service sector makes up approximately what percentage of all jobs in the United States as of 2018? A) 12% B) 40% C) 66% D) 79% E) 90% Answer: D Diff: 2 Type: MC Skill: knowledge Objective: LO2 Explain the distinction between goods and services 51) Which is not true regarding differences between goods and services? A) Tangible goods are generally produced and consumed simultaneously; services are not. B) Most goods are common to many customers; services are often unique to the final customer. C) Services tend to have a more inconsistent product definition than goods. D) Services tend to have higher customer interaction than goods. E) Goods can be inventoried; services are not easily inventoried. Answer: A Diff: 2 Type: MC Skill: application Objective: LO2 Explain the distinction between goods and services 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 are true. Answer: D Diff: 2 Type: MC Skill: application Objective: LO2 Explain the distinction between goods and services 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 Answer: D Diff: 3 Type: MC Skill: comprehension Objective: LO2 Explain the distinction between goods and services 13 © 2020 Pearson Canada Inc. 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 Answer: B Diff: 2 Type: MC Skill: comprehension Objective: LO2 Explain the distinction between goods and services 55) Which of the following statements is true? A) Manufacturing now constitutes the largest economic sector in postindustrial societies. B) The number of people employed in manufacturing has increased since 1950. C) Each manufacturing employee now produces about 20 times more than in 1950 D) Each manufacturing employee now produces about one tenth of that in 1950 E) Manufacturing has disappeared in postindustrial societies. Answer: C Diff: 3 Type: MC Skill: comprehension Objective: LO2 Explain the distinction between goods and services 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 Answer: A Diff: 2 Type: MC Skill: comprehension Objective: LO2 Explain the distinction between goods and services 57) Which of the following is a similarity between goods and services? A) can be mass produced B) consistency in production C) easy to automate D) application of operations management E) all of the above Answer: D Diff: 3 Type: MC Skill: comprehension Objective: LO2 Explain the distinction between goods and services 14 © 2020 Pearson Canada Inc. 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) None of the above is right. Answer: E Diff: 2 Type: MC Skill: comprehension Objective: LO1 Define operations management 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) low bid purchasing Answer: E Diff: 2 Type: MC Skill: comprehension Objective: LO1 Define operations management 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. Answer: E Diff: 2 Type: MC Skill: comprehension Objective: LO1 Define operations management 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) Large batch shipments are being replaced by just-in-time. Answer: C Diff: 3 Type: MC Skill: comprehension Objective: LO1 Define operations management 15 © 2020 Pearson Canada Inc. 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) 0.12 covers/hr. Answer: C Diff: 1 Type: MC Skill: application Objective: LO4 Compute single-factor productivity 63) A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labour productivity can be increased by 20%, it would then be A) 14.4 covers/hr. B) 24 covers/hr. C) 240 covers/hr. D) 1200 covers/hr. E) 144 covers/hr. Answer: A Diff: 3 Type: MC Skill: application Objective: LO4 Compute single-factor productivity 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. Answer: D Diff: 1 Type: MC Skill: application Objective: LO4 Compute single-factor productivity 65) Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is decreased by 10%, it would then be A) 180 valves/hr. B) 200 valves/hr. C) 220 valves/hr. D) 1440 valves/hr. E) 1760 valves/hr. Answer: A Diff: 3 Type: MC Skill: application Objective: LO4 Compute single-factor productivity