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All the activities managers engage in to produce goods and services are called operations management.

A) True
B) False

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What is meant by the magnitude of a conversion process?

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The magnitude of a conversion process is...

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In many cases, customers will travel farther to purchase a(n) ____ than they would travel to purchase a(n) ____.


A) service; good
B) inexpensive good; expensive good
C) product; good
D) good; service
E) inexpensive service; expensive good

F) A) and E)
G) A) and C)

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When a lumber company takes timber and converts it into lumber, cardboard, and other paper products, the company is using


A) an analytical process.
B) extraction manufacturing.
C) a synthetic process.
D) an operations process.
E) raw processing.

F) B) and E)
G) A) and D)

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Which of the following is not one of the steps in operational planning?


A) Adjusting products or services to meet demand
B) Designing new products or services
C) Selecting a planning horizon
D) Comparing market demand with capacity
E) Estimating market demand

F) None of the above
G) B) and E)

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Which of the following statements is false?


A) Quality and productivity have often been viewed as conflicting goals.
B) Over the years, a number of managers have realized that quality is an essential ingredient of the good or service being manufactured.
C) Quality has become an overall approach to doing business.
D) For most businesses, quality costs too much money.
E) Making products right the first time reduces many of the rejects and much of the rework.

F) B) and E)
G) B) and C)

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Successful operations managers must be able to do all of the following except


A) lead and motivate people.
B) use technology to make a manufacturer more productive.
C) advertise and sell the firm's product.
D) control production costs.
E) improve product quality.

F) A) and B)
G) A) and C)

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The objective of purchasing is to ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost.

A) True
B) False

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Needles, Inc. has five of its ten products at the end of the product life cycle. To maintain its market share, the firm must at least find ways to


A) reduce the cost of marketing its products.
B) cut manufacturing costs.
C) extend or refine the want-satisfying capability of its products.
D) reduce the number of employees.
E) increase the price of the product.

F) A) and C)
G) D) and E)

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R&D activities aimed at disclosing new knowledge that has some potential use are known as


A) development and implementation.
B) applied research.
C) basic research.
D) product design.
E) design planning.

F) B) and E)
G) C) and E)

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To determine the proper size for its new restaurant in Nashville, Tennessee, operations managers and marketing managers for Hard Rock Cafe worked together to determine the restaurant's ____.


A) capacity.
B) product line.
C) required annual sales.
D) lead time.
E) production flow.

F) B) and E)
G) C) and D)

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Robotics is the use of programmable machines to perform a variety of tasks by manipulating


A) people and machines.
B) machines and tools.
C) materials and people.
D) materials and tools.
E) tools and financing.

F) B) and C)
G) B) and E)

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Compare and contrast the ideas of labor-intensive and capital-intensive technology.

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Labor-intensive technology is a process ...

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Which of the following is not a possible cause of only a small increase in America's recent productivity growth rate?


A) The economic crisis in banking and finance
B) A downturn in home construction and automobile industries
C) Increased investment in new equipment
D) Increased government regulation
E) The tremendous growth in the service industry

F) A) and E)
G) A) and B)

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If a good or service satisfies a human need, it has


A) value.
B) focus.
C) magnitude.
D) form.
E) utility.

F) A) and B)
G) C) and D)

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The period of time over which an operational plan will be in effect is known as a


A) planning horizon.
B) fiscal period.
C) quality circle.
D) process layout.
E) research period.

F) A) and C)
G) B) and D)

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​_____ are used to assemble machinery, weld joints, and a variety of other tasks by manipulating materials and tools.


A) ​robots
B) ​tools
C) ​droids
D) ​computer-aided design machines

E) None of the above
F) C) and D)

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Cisco Systems manufactures computer hardware, uses software programs, and provides networking services to customers. As a result, Cisco uses


A) research implementation.
B) more than one production process.
C) a complex magnitude of change.
D) basic research applications.
E) multiple outputs.

F) A) and B)
G) A) and C)

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The major objective of quality control is to see that the organization produces no imperfect products.

A) True
B) False

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The process of managing inventories to minimize both holding costs and potential stock-out costs is called inventory control.

A) True
B) False

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