Chapter 1: Operations and Productivity
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MODULE RESULTS
QUESTIONS: 27
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attempts i
What is an ethical challenge for operations managers?
CORRECT ANSWER:
Providing a safe workplace
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List three operations management decision areas.
CORRECT ANSWER:
Quality, productivity, and layouts
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Which of the following is not one of the basic functions of the management process?
CORRECT ANSWER:
Inspecting
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A rm is currently taking 110 hours to produce 880 units. A new system would require 90 hours to produce 675 units.
Calculate the productivity increase/decrease.
CORRECT ANSWER:
6.25%
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Which of the following is the best example of a pure service?
CORRECT ANSWER:
Counselling
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Increases in productivity are dif cult to achieve if the task is ________.
CORRECT ANSWER:
More personal
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Which of these are three critical productivity input variables?
CORRECT ANSWER:
Labour, capital, and management
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An operations task performed at Hard Rock Café is ________.
CORRECT ANSWER:
Preparing employee schedules
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It is more dif cult to make productivity improvements in the service sector than in the manufacturing sector because
________.
CORRECT ANSWER:
The service sector is usually more labour intensive than the manufacturing sector
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The service sector makes up approximately what percentage of all jobs in the United States?
CORRECT ANSWER:
85%
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A law rm has a staff of four employees working eight hours a day for a total payroll cost of $640. In addition, the law
rm has overhead expenses of $800 per day. Due to a recent software change, the same employees are able to process
14 case les a day rather than 8 using the old software system. What is the multifactor productivity of this revised
operation?
CORRECT ANSWER:
0.0097 case les per dollar
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A foundry produces manhole covers. If 120 covers are produced in a 10-hour shift, the productivity of the line is
________.
CORRECT ANSWER:
12 covers/hr
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Gibson Valves produces cast-bronze valves on an assembly line. If 1600 valves are produced in an eight-hour shift, the
productivity of the line is ________.
CORRECT ANSWER:
200 valves/hr
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Productivity measurement is complicated by ________.
CORRECT ANSWER:
Lack of precise units of measurement
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Productivity increases when ________.
CORRECT ANSWER:
Inputs decrease while outputs remain the same
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Which of the following appears to provide the best opportunity for increases in productivity?
CORRECT ANSWER:
Management
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The three major business functions necessary to all organizations are ________.
CORRECT ANSWER:
Marketing, nance/accounting, and production/operations
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Two car-wash employees are each paid $7.50 an hour and are capable of washing 12 cars per hour, using $1 of water and
$2 of soap and other cleaning supplies. What is the multifactor productivity of this operation?
CORRECT ANSWER:
0.667 cars per dollar
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Among the ethical and social challenges facing operations managers are ________.
CORRECT ANSWER:
Maintaining a sustainable environment
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The total of all outputs produced by the transformation process divided by the total of the inputs is the ________.
CORRECT ANSWER:
Multifactor productivity
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What is an ethical challenge facing an operations manager?
CORRECT ANSWER:
Maintaining a sustainable environment
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Which two functions are important in the mass customization era of operations management?
CORRECT ANSWER:
Globalization and internet/ecommerce
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An insurance adjuster processes the claims of six policyholders in an eight-hour workday. The adjuster uses $5 in
gasoline and $3 in forms and of ce supplies to complete the work. What is her labour productivity?
CORRECT ANSWER:
0.75 claims per hour
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What is it called when goods and service and created?
CORRECT ANSWER:
Production
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Which of the following is not a typical service attribute?
CORRECT ANSWER:
Easy to store
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What are three new challenges in operations management?
CORRECT ANSWER:
Global focus, sustainability, and lean operations
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In what order (from source to end user) is the supply chain for a company like Coke?
CORRECT ANSWER:
Farmer, syrup producer, bottler, distributor, retailer
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