SDSU BA360 EXAM #1 REVIEW (CH 1, 2, 3, & 4) Prof. Showghi

Which of the following tasks would NOT typically represent an operations management activity at Hard Rock​ Cafe?

A.Preparing an employee schedule

B. receiving a shipment of incoming food ingredients

C. filing a tax return

D. designing an efficient layout

C. filing a tax return

The creation of goods and services is referred to​ as:

A. Design.

B. Transformation.

C. Formation.

D. production.

D. production.

Which of the following is NOT considered to be one of the three primary functions that all organizations​ perform?

​

A. finance/accounting

B. marketing

​C. production/operations

D. research and development

D. research and development

Which of the following activities at an airline is NOT an operations​ activity?

A. catering

B. flying

C. crew scheduling

D. sales

D. sales

A global network of organizations and activities that supply a firm with goods and services is referred to as

A. business functions.

B. production.

C. a supply chain.

D. operations management.

C. a supply chain.

Competition in the 21st century is no longer between​ companies; it is between

A. supply chains.

B. technologies.

C. individuals.

D. countries.

A. supply chains.

A large percentage of the revenue of most firms is spent on which​ function?

A. research and development

B. finance

C. operations

D. marketing

C. operations

Which of these is NOT one of the basic functions of the management​ process?

A. inspecting

B. staffing

C. controlling

D. leading

B. staffing

Which of the following OM decisions determines how a good or service is produced and commits management to specific​technology, quality, human​ resources, and capital​ investment?

A. managing quality

B. process and capacity design

C. human resources and job design

D. design of goods and services

B. process and capacity design

The father of scientific management is

A. Henry Ford.

B. Henry L. Gantt.

C. Frederick W. Taylor.

D. Eli Whitney.

C. Frederick W. Taylor.

The person who believed that management must do more to improve the work environment and processes so that quality can be improved was

A. Henry Ford.

B. Eli Whitney.

C. W. Edwards Deming.

D. Walter Shewhart.

C. W. Edwards Deming.

The economic activities that typically produce an intangible product are referred to as

A. services.

B. phantoms.

C. goods.

D. products.

A. services.

Which of the following organizations does NOT belong to the service​ sector?

A. San Diego Zoo

B. Costco

C. Southwest Airlines

D. Ford Motor Company

D. Ford Motor Company

Which of the following is NOT considered to be a​ stakeholder?

A. community members

B. competitors

C. customers

D. distributors

B. competitors

What is the goal for mass​ customization?

A. The goal is to produce customized​ products, whenever and wherever needed.

B. The goal is to let operations managers work with their supply chain to viciously cut inventories at every level.

C. The goal is to seek creative​ designs, efficient​ production, and​ high-quality goods via international collaboration.

D. The goal is to enrich jobs and move more decision making to the individual contributor.

A. The goal is to produce customized​ products, whenever and wherever needed.

Productivity increases when

A. outputs decrease while inputs remain the same.

B. inputs increase while outputs remain the same.

C. inputs and outputs increase proportionately.

D. inputs decrease while outputs remain the same.

D. inputs decrease while outputs remain the same.

A strategy that is not one of the 10 strategic operations management decisions is:

A. maintenance.

B. human resources, job design and work measurement.

C. location strategies.

D. design of goods and services.

E. advertising strategies.

E. advertising strategies.

Operations management jobs comprise approximately ___% of all jobs.

40%

Services often:

A. are tangible.

B. are standardized.

C. are knowledge based.

D. are low in customer interaction.

E. have consistent product definition.

C. are knowledge based.

The stated purpose of NAFTA is to

A. reduce the outsourcing of jobs to foreign countries.

B. phase out all trade and tariff barriers among​ Canada, Mexico, and the U.S.

C. increase product innovation in the wireless communication sector.

D. gain membership in the WTO.

B. phase out all trade and tariff barriers among​ Canada, Mexico, and the U.S.

Single-factor productivity:

A. remains constant.

B. is never constant.

C. usually uses labor as a factor.

D. seldom uses labor as a factor.

E. uses management as a factor.

C. usually uses labor as a factor.

Multifactor productivity:

A. remains constant.

B. is never constant.

C. usually uses substitutes as common variables for the factors of production.

D. seldom uses labor as a factor.

E. always uses management as a factor.

C. usually uses substitutes as common variables for the factors of production.

Productivity increases each year in the U.S. are a result of three factors:

A. labor, capital, management

B. engineering, labor, capital

C. engineering, capital, quality control

D. engineering, labor, data processing

E. engineering, capital, data processing

A. labor, capital, management

Which of the following is NOT a reason why domestic business operations decide to change to some form of international​ operation?

A. attract and retain local talent

B. improve the supply chain

C. improve products

D. improve operations

A. attract and retain local talent

A strategy is

A. established prior to establishing a mission.

B. a functional area of the firm.

C. an action plan to achieve a mission.

D. the purpose for which an organization is established.

C. an action plan to achieve a mission.

Which of the following is the purpose or rationale for an​ organization's existence?

A. charter

B. strategy

C. articles of incorporation

D. mission

D. mission

Choose the correct example of differentiation and its explanation below.

A. Pizza Hut, as it delivers pizza in 5 minutes.

B. Hunter Fan, as it guarantees delivery in 3 days.

C. Pizza Hut, as it specializes in cooking traditional Italian pizza.

D. Hunter Fan, as it's a premier maker of quality ceiling fans that lower heating and cooling costs for its customers.

D. Hunter Fan, as it's a premier maker of quality ceiling fans that lower heating and cooling costs for its customers.

Choose the correct example of cost leadership and its explanation below.

A. Wal-Mart, as it provides the fast product delivery to the customers.

B. Disney Magic Kingdom, as it provides the best free and low-cost attractions and places to visit.

C. Wal-Mart, as it has the low overhead and huge buying power to pressure its suppliers into concessions.

D. Disney Magic Kingdom, as here people are surrounded by a dynamic visual and sound experience.

C. Wal-Mart, as it has the low overhead and huge buying power to pressure its suppliers into concessions.

Choose the correct example of response and its explanation below.

A. Pizza Hut, as it delivers pizza in 5 minutes.

B. Disney Magic Kingdom, as here people are surrounded by a dynamic visual and sound experience.

C. Pizza Hut, as it specializes in cooking traditional Italian pizza.

D. Disney Magic Kingdom, as it provides the best free and low-cost attractions and places to visit.

A. Pizza Hut, as it delivers pizza in 5 minutes.

Competing on differentiation is

A. based upon flexibility.

B. concerned with reliability of scheduling.

C. based upon​ low-cost leadership.

D. concerned with uniqueness.

D. concerned with uniqueness.

Which of the following does not represent competing on​ response?

A. concerned with reliability of scheduling

B. based on quickness

C. based on flexibility

D. based on providing uniqueness

D. based on providing uniqueness

Which of the following is NOT one of the 10 strategic OM decisions listed in the​ text?

​

A. finance/accounting

B. layout

C. quality

D. location

A. finance/accounting

Which of the following is NOT an OM​ strategy/issue during the growth stage of the product life​ cycle?

A. reduce capacity

B. shift towards product focus

C. enhance distribution

D. forecasting critical

A. reduce capacity

Select all of the correct impacts the maturing of a product might have on OM strategy below. ​(Check all that​ apply.)

A. Product design needs to be revised.

B. Product changes decrease.

C. Quality standards need to be revised.

D. New human resources skills.

E. Longer production runs are used.

F. Labor skills decrease.

G. Optimum capacity may be achieved

B. Product changes decrease.

E. Longer production runs are used.

F. Labor skills decrease.

G. Optimum capacity may be achieved

Select all of the correct impacts technology innovation in the manufacturing process might have on OM strategy below. ​(Check all that​apply.)

A. Purchasing needs to be revised.

B. New human resources skills.

C. Manufacturing process stabilizes.

D. Inventory needs to be revised.

E. Cost cutting is instituted.

F. Product changes decrease.

G. Product design needs to be revised

H. Capital investment is added for new equipment or processes

A. Purchasing needs to be revised.

B. New human resources skills.

D. Inventory needs to be revised.

G. Product design needs to be revised.

H. Capital investment is added for new equipment or processes.

Select all of the correct impacts changes in laptop computer design that builds in wireless technology might have on OM strategy below. ​(Check all that​ apply.)

A. Cost cutting is instituted.

B. Design compromises are instituted.

C. Capital investment is added for new equipment or processes.

D. Optimum capacity may be achieved.

E. Quality standards need to be revised.

F. Purchasing needs to be revised.

G. Product design needs to be revised

C. Capital investment is added for new equipment or processes.

E. Quality standards need to be revised.

F. Purchasing needs to be revised.

G. Product design needs to be revised

SWOT analysis refers to

​

A. strengths, opponents,​ weaknesses, and threats.

​B. support, opportunities,​ weaknesses, and threats.

​C. strengths, opportunities,​ weaknesses, and threats.

​D. support, opponents,​ weaknesses, and threats.

​C. strengths, opportunities,​ weaknesses, and threats.

Which of these is NOT an advantage of​ outsourcing?

A. gaining outside expertise

B. potential creation of future competition

C. cost savings

D. accessing outside technology

B. potential creation of future competition

An international business is a firm that

A. is not from the United States.

B. produces a wide range of products.

C. engages in international trade or investment.

D. hires​ non-U.S. citizens.

C. engages in international trade or investment.

Which of the following international operations strategies uses decentralized authority with substantial autonomy at each​ business?

A. transnational

B. global

C. multidomestic

D. international

C. multidomestic

A mission statement is beneficial to an organization because it:

A. is a statement of the organization's purpose.

B. provides a basis for the organization's culture.

C. identifies important constituencies.

D. details specific income goals.

E. ensures profitability.

A. is a statement of the organization's purpose.

The three strategic approaches to competitive advantage are _______, ______, and _______.

Differentiation, cost leadership, and response

Core competencies are those strengths in a firm that include:

A. specialized skills.

B. unique production methods.

C. proprietary information/knowledge.

D. things a company does better than others.

E. all of the above.

E. all of the above.

Evaluating outsourcing providers by comparing their weighted average scores involves:

A. factor-rating analysis.

B. cost-volume analysis.

C. transportation model analysis.

D. linear regression analysis.

E. crossover analysis.

A. factor-rating analysis.

A company that is organized across international boundaries, with decentralized authority and substantial autonomy at each business via subsidiaries, franchises, or joint ventures, has:

A. a global strategy.

B. a transnational strategy.

C. an international strategy.

D. a multidomestic strategy.

D. a multidomestic strategy.

The three phases involved in the management of large projects are

A. planning, scheduling, and evaluating.

​B. scheduling, operating, and evaluating.

​C. planning, scheduling, and controlling.

​D. scheduling, designing, and operating.

​C. planning, scheduling, and controlling.

Which of the following does NOT belong to the planning phase of project​ management?

A. team organization

B. defining the project

C. goal setting

D. monitoring resources

D. monitoring resources

The project organization may be LESS helpful when

A. the work contains complex interrelated tasks requiring specialized skills.

B. work tasks can be defined with a specific goal and deadline.

C. the project cuts across organizational lines.

D. the job is familiar to the existing organization.

D. the job is familiar to the existing organization.

Which of the following is the THIRD level in work breakdown structure​ (WBS)?

A. major tasks in the project

B. activities to be completed

C. project

D. subtasks in major tasks

D. subtasks in major tasks

Gantt charts are

A. not widely used.

B. planning charts used to schedule resources and allocate time.

C. widely used network techniques.

D. not easy to understand.

B. planning charts used to schedule resources and allocate time.

Which of the following is NOT part of project​ controlling?

A. close monitoring of​ resources, costs,​ quality, and budgets

B. shifting resources to where they are needed most

C. using a feedback loop to revise the project plan

D. sequencing and allotting time to all project activities

D. sequencing and allotting time to all project activities

The critical path of a network is the

A. shortest time path through the network.

B. longest time path through the network.

C. path with the most activities.

D. path with the fewest activities.

B. longest time path through the network.

How is the EF​ computed?

A. ES​ + Activity time

B. LF − Activity time

​C. Max{EF of all immediate​ predecessors}

​D. Min{LS of all immediate following​ activities}

A. ES​ + Activity time

Which of these time estimates is NOT used in​ PERT?

A. standard time

B. optimistic time

C. pessimistic time

D. most likely time

A. standard time

What is the shortest duration required to complete an​ activity?

A. optimistic time

B. pessimistic time

C. crash time

D. most likely time

C. crash time

Which of the following is a limitation of PERT and​ CPM?

A. The graphical nature of a network delays comprehension of the activity​ list's interrelationships.

B. They can be used only to monitor schedules.

C. There is the inherent danger of placing too much emphasis on the critical path.

D. They are applicable to only a narrow variety of projects and industries.

C. There is the inherent danger of placing too much emphasis on the critical path.

Among the​ following, critical path and slack time analysis MOST help

A. point out who is responsible for various activities.

B. pinpoint activities that need to be closely watched.

C. highlight relationships among project activities.

D. managers define the project activities.

B. pinpoint activities that need to be closely watched.

What is the most popular example of specialized software for managing​ projects?

​

A. PERT/CPM+

B. Project Apple

C. Microsoft Project

D. Microsoft Management Tool

C. Microsoft Project

Which of the following statements regarding Gantt charts is true?

A. Gantt charts give a timeline and precedence relationships for each activity of a project.

B. Gantt charts use the four standard spines: Methods, Materials, Manpower, and Machinery.

C. Gantt charts are visual devices that show the duration of activities in a project.

D. Gantt charts are expensive.

E. All of the above are true.

C. Gantt charts are visual devices that show the duration of activities in a project.

Which of the following is true about AOA and AON networks?

A. In AOA, arrows represent activities.

B. In AON, nodes represent activities.

C. Activities consume time and resources.

D. Nodes are also called events in AOA.

E. All of the above.

E. All of the above.

Slack time equals:

A. ES+t.

B. ES+t.

C. LS − ES.

D. zero.

E. EF − ES.

B. ES+t.

The critical path of a network is the:

A. shortest-time path through the network.

B. path with the fewest activities.

C. path with the most activities.

D. longest-time path through the network.

D. longest-time path through the network.

PERT analysis computes the variance of the total project completion time as:

A. the sum of the variances of all activities in the project.

B. the sum of the variances of all activities on the critical path.

C. the sum of the variances of all activities not on the critical path.

D. the variance of the final activity of the project.

B. the sum of the variances of all activities on the critical path.

The crash cost per period:

A. is the difference in costs divided by the difference in times (crash and normal).

B. is considered to be linear in the range between normal and crash.

C. needs to be determined so that the smallest cost values on the critical path can be considered for time reduction first.

D. all of the above.

D. all of the above.