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Amalia is an operations manager at a medium-sized service firm. Amalia is recommending that her firm use the Internet to make its services more readily available to its customers. Amalia's recommendation reflects a growing trend in service-sector firms.

A) True
B) False

Correct Answer

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A key element of the statistical quality control (SQC) process is the reliance on quality control experts to inspect at the end of the production line to make sure that no defective products are shipped to final customers.

A) True
B) False

Correct Answer

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Experts in operations management for service industry businesses stress:


A) using records from accounting to determine what business to go after.
B) relying on one's individual operation as opposed to developing partnerships.
C) training employees on quality management.
D) training employees to always adhere to only one way of doing things.

E) B) and D)
F) All of the above

Correct Answer

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Quality control is a continual process of checking to make certain that there is consistency in the quality of products being produced.

A) True
B) False

Correct Answer

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The Ritz-Carlton hotel offers restaurants with the finest service, elevators that run smoothly, and a front desk that processes people quickly. Many times fresh-cut flowers are in the lobbies and dishes of fruit are in each room. __________ is responsible for implementing these customer benefits.


A) Human resources management
B) The management staff
C) Operations management
D) Production management

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

Correct Answer

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So far, the high cost of CAD/CAM techniques has limited their use to large, expensive manufactured goods such as automobiles.

A) True
B) False

Correct Answer

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Lean manufacturing is a strategy of producing standardized products that have no frills or extra features in order to keep prices low.

A) True
B) False

Correct Answer

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One important issue with respect to managing the operation of a business is to make certain that customers leave feeling as though they had a good experience with your service and with your company in general.

A) True
B) False

Correct Answer

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Which of the following statements best describes the distinction between production management and operations management? Production management involves:


A) activities managers perform to help create services while operations management involves the activities managers perform to produce goods.
B) activities managers perform to obtain physical resources while operations management involves the activities managers perform to obtain the financial resources.
C) activities managers perform to help create goods while operations management is a broader term that involves the activities involved in producing services as well as goods.
D) activities managers perform to help create intangible products while operations management involves the activities managers perform to produce tangible products.

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

Correct Answer

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Improvements in technology have significantly increased the quality of products, as well as helped reduce costs.

A) True
B) False

Correct Answer

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Currently, manufacturing accounts for only around 70% of U.S. GDP.

A) True
B) False

Correct Answer

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The decreased use of enterprise resource planning (ERP) reflects the fact that firms are not interested in combining the computerized functions of all divisions and subsidiaries of a firm.

A) True
B) False

Correct Answer

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For service-intensive businesses, facility layout is usually designed to centralize the decision-making process.

A) True
B) False

Correct Answer

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Nanomanufacturing is when materials can be manipulated on a molecular or even atomic level.

A) True
B) False

Correct Answer

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As the service industries became a larger part of U.S. GDP, companies have become more concerned about measuring productivity in the service sector.

A) True
B) False

Correct Answer

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ISO is a worldwide, nongovernmental federation that sets global measures of quality.

A) True
B) False

Correct Answer

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__________ is the operations management planning function that searches for quality material resources, finds the best suppliers, and negotiates the best price.


A) Marketing
B) Collective bargaining
C) Bartering
D) Purchasing

E) B) and C)
F) All of the above

Correct Answer

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The first step in the PERT method is to assign a cost to each activity.

A) True
B) False

Correct Answer

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Recent developments in information technology will discourage companies from allowing employees to telecommute.

A) True
B) False

Correct Answer

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Intermittent production processes are characterized by short production runs and frequent changes of machinery in order to produce different products like customized furniture.

A) True
B) False

Correct Answer

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