MGT 227 Retake

Which of the following statements is incorrect?
a. Operations management deals with the production of goods and services.
b. Non-profit agencies, service industries, and government services are managed by operations managers.
c. In both manufacturing and service industries; raw materials, labor, and capital are the inputs being transformed
into outputs in an efficient and effective manner.
d. Organizations must produce and deliver goods and/or services that are deemed to be of value to suppliers.

d. Organizations must produce and deliver goods and/or services that are deemed to be of value to suppliers.

Which of the following is incorrect?

Which of the following statements is incorrect?
a. If you have a CPIM certification, you have been certified in purchasing and inventory management.
b. If you have a CSCP certification, you have been certified as being a supply chain professional.
c. If you have a CPP certification, you have been certified as a purchasing professional.
d. If you have a CPDW certification, you have been certified as a distribution and warehousing professional.

a. If you have a CPIM certification, you have been certified in purchasing and inventory management.

Which of the following statements is incorrect?
a. Value is the tangible not intangible benefits that customers derive from consuming a good or service at a price
they are willing to pay.
b. What is of value to one set of customers may not be of value to another.
c. By understanding value, operations can maximize customer value while optimizing profitability.
d. Cross-functional decision making is critical and should not be done without input from all affected departments.
e. The supply chain refers to the network of manufacturing and service organizations with respect to your products
and services.

a. Value is the tangible not intangible benefits that customers derive from consuming a good or service at a price
they are willing to pay.

Which of the following statements is not considered one of the four major operational decision responsibilities?
a. The transformation process
b. Quantity
c. Capability
d. Inventory

c. Capability

Which of the following statements is incorrect?
a. Operations strategies and decisions should fulfill the needs of the business and add competitive advantage to the
firm.
b. Value can be created only by operations and supply chains that are less productive than competitors’ in relation
to the company’s chosen markets.
c. The cross-functional coordination of decision making is facilitated by an operations strategy that is developed
by a team of managers from across the entire business.
d. Operational objectives constitute a restatement of the mission in quantitative and measurable terms.

b. Value can be created only by operations and supply chains that are less productive than competitors’ in relation
to the company’s chosen markets.

Which of the following statements is incorrect?
a. The corporate strategy defines the business that the company is pursuing.
b. Business strategy follows from the corporate strategy and defines how a particular business will compete.
c. The mission, objectives, strategic decisions, and distinctive competence are all contained within the operations
strategy.
d. Every operation should have a mission that is connected to the business strategy.
e. Benchmarking is comparing your objectives to customers.

e. Benchmarking is comparing your objectives to customers.

Which of the following statements is incorrect?
a. One type of generic business strategy is differentiation which involves offering a unique and often innovative
new product or service.
b. A generic business strategy emphasizing low cost is especially appropriate where products or services are not
easily imitated.
c. The best path to long-term growth in shareholder value comes from a well-articulated mission rather than
simply maximizing shareholder value.
d. The real flaw in maximizing shareholder value is the inability to motivate the workforce.

b. A generic business strategy emphasizing low cost is especially appropriate where products or services are not
easily imitated.

Which of the following statements is not considered a common objective of Operations?
a. Cost
b. Quality
c. Fluidity
d. Delivery

c. Fluidity

Which of the following statements is incorrect?
a. An operational objective based on cost may involve heavy investment in automation to drive up labor costs.
b. An operational objective based on cost is often best achieved by focusing on customer requirements.
c. When referring to a quality-based operational objective, quality is defined as freedom from defects.
d. An operational objective based on quality requires a focus on product/process design, operations, and supply
chain management.
e. An operational objective based on quality involves working with key customers to define their requirements.

a. An operational objective based on cost may involve heavy investment in automation to drive up labor costs.

Which of the following statements is incorrect?
a. When referring to a flexibility-based operational objective, flexibility is defined as the ability to quickly change
from making one type of parts to another.
b. An operational objective based on flexibility entails a focus on reducing changeover time, longer production
runs, simplifying complex operations, redesigning products/processes.
c. When referring to a delivery-based operational objective, delivery entails providing products in a timely manner
without shipping damage.
d. An operational objective based on delivery places an emphasis on streamlining the ordering process.

d. An operational objective based on delivery places an emphasis on streamlining the ordering process.

Which of the following statements is incorrect?
a. Typical products spend most of their time waiting for the next step in the process.
b. A company should have a distinctive competence that helps differentiate it from its customers.
c. A distinctive competence is often best realized with input from other departments such as Operations,
Marketing, Finance, and Accounting.
d. In crossdocking, goods from suppliers’ trucks are transferred across the loading dock to waiting trucks without
ever being stored in a warehouse.

b. A company should have a distinctive competence that helps differentiate it from its customers.

Which of the following statements is incorrect?
a. One way to obtain a competitive advantage through operations is to have patented or proprietary technology or
equipment.
b. One way to obtain a competitive advantage through operations is to implement innovative quality practices.
c. One way to obtain a competitive advantage through operations is having the ability to serve a new market after
competitors.
d. One way to obtain a competitive advantage through operations is by having sufficient inventory to meet demand
to meet demand.

c. One way to obtain a competitive advantage through operations is having the ability to serve a new market after
competitors.

Regarding a supply chain strategy, which of the following statements is incorrect?
a. It includes customers, suppliers, purchasing, logistics, and operations.
b. It focuses on everyone’s inventory levels, material flow, and information.
c. It should be aimed at achieving a sustainable competitive advantage for the entire supply chain.
d. It should not give serious consideration to a global focus.

d. It should not give serious consideration to a global focus.

Regarding sustainability, which of the following statements is incorrect?
a. Sustainability refers to minimizing or eliminating the environmental impact of operations.
b. One common type of initiative is to reduce energy consumption.
c. One common type of initiative is to measure and maximize transportation and total carbon footprint.
d. One common type of initiative is to work with suppliers to use recyclable and biodegradable packaging.
e. One common type of initiative is to incorporate product reuse, end-of-life return, and recycling.

c. One common type of initiative is to measure and maximize transportation and total carbon footprint.

Which of the following statements is incorrect?
a. Product design refers to either a physical, manufactured product or a service.
b. Design greatly affects operations because existing processes and products can constrain the technology
available for new products.
c. A technology pull strategy occurs when a company invents a process (e.g., equipment, technique) that no one
else possesses.
d. With a technology push strategy, the company is able to create a unique product that marketing must sell to its
customers.

c. A technology pull strategy occurs when a company invents a process (e.g., equipment, technique) that no one
else possesses.

Which of the following statements is incorrect?
a. With a market pull strategy, the market demands a product and a company has to figure out how to make it
(even if they do not currently have the technology to do so or the manufacturing processes must be invented).
b. With an interfunctional view, a company creates a product wanted by customers using innovative equipment
and/or techniques.
c. The three typical phases in new product development are concept development, product design & process
design, and pilot production/testing.
d. Quality Function Development is also known as the House of Quality.
e. QFD is a tool for linking customer needs/requirements to Engineering drawings and specifications.

d. Quality Function Development is also known as the House of Quality.

Which of the following statements is incorrect?
a. Concept development is concerned with idea generation and the evaluation of alternative ideas for the new
product.
b. Product design is concerned with designing the new product/service.
c. In concept development, several product/service concepts are usually generated and evaluated.
d. At the beginning of the product design phase, the firm has a general idea of the design but needs to specify the
product/service design parameters in detail.
e. Process design should not occur simultaneously with product design.

e. Process design should not occur simultaneously with product design.

Which of the following statements is incorrect?
a. In the product design phase, trade-offs between cost, features, and scheduling constraints must be evaluated.
b. At the end of the product design phase, the firm will have a set of generic product specifications and
engineering drawings.
c. In the pilot production/testing phase, unforeseen problems with manufacturing are evaluated.
d. In the pilot production/testing phase, prototypes are developed.

b. At the end of the product design phase, the firm will have a set of generic product specifications and
engineering drawings.

Regarding the potential misalignment between design and manufacturing groups, which of the following items was
not listed as a possible misalignment?
a. Insufficient training
b. Inventory control problems with similar-looking parts
c. Measuring equipment accurate enough to measure parts
d. Maintenance needing training on more sophisticated equipment

c. Measuring equipment accurate enough to measure parts

Regarding supply chain collaboration, which of the following statements is incorrect?
a. A firm should work with customers to identify important and latex needs.
b. A firm should seek more involvement in customer design decisions.
c. A firm should work with key suppliers to enhance their product design.
d. A firm should identify ways to reduce part number proliferation.

a. A firm should work with customers to identify important and latex needs.

Which of the following statements is incorrect?
a. QFD cannot be applied to the service industry.
b. Design for Manufacturability aims to simplify product design to make it easier to make.
c. DFM aims to use common parts on multiple products.
d. Regarding value, usefulness is described in terms such as product features, performance, reliability.
e. Modular design makes it possible to have relatively high product variety and low component variety (same
components but in different configurations)

c. DFM aims to use common parts on multiple products.

Which of the following statements is incorrect?
a. Process selection decisions are strategic in nature.
b. Process selection decisions require a short-term perspective and a great deal of cross-functional coordination.
c. Most business functions are significantly impacted by the process selection decision.
d. Process selection decisions tend to be capital intensive and cannot be easily changed.

b. Process selection decisions require a short-term perspective and a great deal of cross-functional coordination.

Which of the following statements is incorrect?
a. In manufacturing, product flow is the flow of materials that result in product creation.
b. Throughput Ratio = [Total processing time for the job/total time in operations] x 100%
c. Throughput Ratio measures how effectively you move material through your facility.
d. Faster flow of materials through a facility means more money being tied up in inventory.
e. The better the throughput ratio, the sooner that products are available for shipment.

a. In manufacturing, product flow is the flow of materials that result in product creation.

Which of the following items is not a type of product flow?
a. Continuous process
b. Assembly line
c. Batch job
d. Shop
e. Process

e. Process

Regarding continuous process flows, which of the following statements is incorrect?
a. Liquids and simple products that can be made very quickly are common inputs.
b. The make product very cheaply (as compared to other methods of production).
c. Processes are usually highly automated.
d. The output tends to be highly standardized with high production levels.
e. Flexibility in product type is usually poor.

a. Liquids and simple products that can be made very quickly are common inputs.

Regarding assembly line product flows, which of the following statements is incorrect?
a. An assembly line makes one or more products with relatively flexible equipment and labor.
b. This type of product flow is characterized by a linear sequence of operations.
c. Assembly lines make discrete products (e.g., not liquids or pastes)
d. They often use a conveyor system to transport product between operational steps.

a. An assembly line makes one or more products with relatively flexible equipment and labor.

Regarding assembly line product flows, which of the following statements is incorrect?
a. They generally require large amounts of capital investment (but not as much as a continuous process).
b. They usually require low volumes to justify investment.
c. Workers tasks are designed so that it takes each operation the same amount of time.
d. Changing to another product may take hours, days, weeks, or even months.

b. They usually require low volumes to justify investment.

Regarding batch product flows, which of the following statements is incorrect?
a. Each batch travels together from one operation or work center to the next.
b. A work center is a group of dissimilar machines or processes used to make the product.
c. Process can be used to make many different types of products.
d. Each product can have a different flow path and can skip certain work centers.
e. The flow of the batches usually jumps around the factory.

b. A work center is a group of dissimilar machines or processes used to make the product.

Regarding batch product flows, which of the following statements is incorrect?
a. This type of product flow uses general-purpose equipment that is used to perform many different but related
functions.
b. Batch or lot size varies considerably based on supply.
c. This type of product flow is good for low to moderate sized order quantities.
d. Tracking inventory levels and location of each batch in the factory is a challenge.
e. There is usually inventory waiting to be processed by each work center in a factory (costs money).

b. Batch or lot size varies considerably based on supply.

Regarding job shop product flows, which of the following statements is incorrect?
a. Job shops make products to customer order.
b. Products proceed through factory in batches.
c. Job shops usually have large, specialty runs of products.
d. Job shops have same characteristics as a batch process but smaller orders in most cases.

c. Job shops usually have large, specialty runs of products.

Which of the following statements is incorrect?
a. Project-based product flow is used for unique or one-time products such as tools, buildings, and equipment.
b. Project-based product flow is considered the least expensive form of product flow processing.
c. Lead time refers to the time required to deliver a product to the customer once an order has been placed.
d. The Toyota Production System (TPS) uses small batch sizes with flexible equipment in order to be more
responsive to customers’ needs.
e. SMED pertains to the development of expedited approaches to changing machines to make different parts –
change from one type of part to another in minimal time.

b. Project-based product flow is considered the least expensive form of product flow processing.

Which of the following statements is incorrect?
a. Sometimes there are parts shortages or different orders waiting on the same machine.
b. Sometimes some or all the scheduled parts have to be scrapped due to poor quality and new material must be
ordered or re-allocated to produce replacements.
c. When there are issues due to poor quality, the promised delivery date may not be met.
d. % Order Completion is a measure of how well a factory meets the suppliers’ delivery needs.

c. When there are issues due to poor quality, the promised delivery date may not be met.

Which of the following statements is incorrect?
a. The three approaches to order fulfillment are Make-to-Stock, Make-to-Order, and Assemble-to-Order.
b. MTO can provide faster service to customers (than MTS or ATO).
c. In MTS, finished products are stored in inventory and immediately available for delivery.
d. MTS may be less expensive than MTO and ATO if “lead time” is important to the customer.

b. MTO can provide faster service to customers (than MTS or ATO).

Which of the following statements is incorrect?
a. MTO has more flexibility than MTS – especially for product customization.
b. In MTO, purchased parts may have to be ordered when customer order is placed (extending delivery time).
c. ATO is a hybrid system in which product components are MTO but assembled only when order is placed.
d. To keep workers busy and anticipate potential periods of under-capacity (too much work to complete in a given
period of time), Marketing and Production Control often have to forecast product demand.

c. ATO is a hybrid system in which product components are MTO but assembled only when order is placed.

Which of the following statements is incorrect?
a. Production planning uses the forecast as well as current orders to plan how parts will flow through the factory.
b. Inventory Management is responsible for assuring that the quantity of parts at each operation (or work center)
actually match the number of parts that are actually there.
c. With a plant-within-a-plant process flow strategy, the plant is divided into sub-plants specializing in making
certain types of products in order to increase throughput and customer responsiveness.
d. Mass customization uses low-volume lot sizes but makes minor alterations to the finished product.
e. Poka Yoke refers to mistake proofing the process to dramatically reduce the likelihood of making errors in
making and/or labeling the parts.

d. Mass customization uses low-volume lot sizes but makes minor alterations to the finished product.

Which of the following statements was not listed as a process selection decision?
a. Consider market conditions.
b. Consider capital requirements.
c. Consider the state of technology for process not product
d. Consider the availability and cost of labor

d. Consider the availability and cost of labor.

Which of the following statements is incorrect?
a. The service economy accounts for more than 80% of jobs in the U.S. and in most industrialized economies in
Europe and Asia today.
b. In simultaneous production and consumption, the customer may be in the production system while production
takes place.
c. The customer may introduce uncertainty in the process by placing expected demands on the service provider at
the time of production (or service delivery).
d. While some customer demands are anticipated, the variability of these demands impacts the overall delivery
process

c. The customer may introduce uncertainty in the process by placing expected demands on the service provider at the time of production (or service delivery).

Which of the following statements is incorrect?
a. A front office service process requires the presence of but not interaction with the customer.
b. A back office service process does not require customer presence/interaction.
c. The three elements of the service-product bundle are the tangible service, the intangible or psychological
benefits of the service, and the physical goods.
d. Service recovery refers to the correction process when something goes wrong during the delivery.
e. Service recovery must be swift and appropriate in the customer’s eyes.

a. A front office service process requires the presence of but not interaction with the customer.

Within the service delivery system definition, all the processes used to deliver services are defined. Which of the
following items was not listed as one of these processes?
a. Includes details such as technology used
b. The types of tools needed
c. The appearance of the employees
d. The ambience of the service environment

b. The types of tools needed

Which of the following statements is incorrect?
a. Custom-routed services refer to services resulting in a unique, highly customized experience.
b. Co-routed services refer to services in which some customer choice is available using moderately standardized
processes.
c. Provider-routed services refer to highly standardized services that allow few options during service delivery
with customers whose needs are very similar to one another.
d. A primary component of a service guarantee involves a process of what service will be delivered.
e. A primary component of a service guarantee pertains to what the payout and service recovery will be if the
promise is not fulfilled.

e. A primary component of a service guarantee pertains to what the payout and service recovery will be if the promise is not fulfilled.

Regarding the differences between a product and a service, which of the following statements is incorrect?
a. For a product, ownership is transferred at the time of purchase.
b. For a product, production follows consumption.
c. For a service, no resale is possible.
d. For a service, it does not exist before purchase.

b. For a product, prodution follows consumption.

Which of the following statements is incorrect?
a. Arrival variability refers to the uncertainty in when customers will arrive to consume a service.
b. Request variability refers to the uncertainty in what customers will ask for in the service-product bundle.
c. Capacity variability refers to the uncertainty in the ability of customers to participate in a service.
d. Effort variability refers to the uncertainty in the willingness of customers to perform appropriate actions.
e. Subjective-preference variability refers to the uncertainty in the intangible preferences of customers in how
service is carried out.

c. Capacity variability refers to the uncertainty in the ability of customers to participate in a service.

Which of the following statements is incorrect?
a. With high-contact services, it is possible to separate a service into two segments: a service creation portion and
a service consumption/delivery portion.
b. In low-contact services, the customer can be removed from the service creation portion thus allowing for greater
standardization of processes and better efficiency.
c. Low-contact services occur when face-to-face interaction is not required.
d. Welcoming customer customization may prove to be a competitive advantage but may also incur a higher cost
of service delivery.

c. Low-contact services occur when face-to-face interaction is not required.

Which of the following statements is incorrect?
a. With high-contact services, customers are involved with the service creation.
b. With low-contact services, the service delivery system must react to variable customer requests.
c. Fixed constraints such as a limited posted menu help minimize this variability in the service delivery system
introduced by customer requests.
d. Outsourcing of services entails having an organization outside your own firm perform service activities such as
workforce recruiting and payroll management.
e. Offshoring is the export of service activities to other countries.

b. With low-contact services, the service delivery system must react to variable customer requests.