Unit 2:
Which of the following is an activity of both service producers and goods producers?
Selling high-quality, tangible products
Separating production from consumption
Focusing on product improvement
Managing a finished goods inventory
Correct. Service-producing organizations and goods-producing organizations have many similarities including a concern
for product improvements. A service firm may strive to improve dependability while a goods firm may work to offer more
product features.
Question 2
True or false? Organizations with flexible operations respond quickly and inexpensively to the changing needs of
customers.
True
False
Correct. When flexibility is inherent in operations, an organization is able to respond rapidly and inexpensively to
changing customer needs.
Question 3
In the 1950s, Coca-Cola replaced glass bottles with lighter, less costly aluminum cans without changing the taste of the
soda. This operations change best illustrates how _________ altered Coca-Cola’s product design.
global business
technology
teamwork
Correct. Coca-Cola’s change from glass to aluminum illustrates a product design improvement due to new technology
because it altered the packaging of the product but not the taste of the product itself.
Question 4
Operations managers primarily help a firm implement a strategy by ________.
allocating resources
hiring new employees
establishing benchmarks
, developing marketing plans
Correct. Operations managers allocate resources to help the organization accomplish its goals and implement its
strategy.
Question 5
A business process has which of the following unique characteristics that make it key in any organization?
It cannot be modified.
It is written out in a contract.
It is cross-functional.
Correct. The work activities outlined in a business process are agreed upon by all the functional areas in a business.
Question 6
Which of the following is a driving force in the global job market as job markets shift between countries for
manufacturing, technology, engineering, and management jobs?
Free trade agreements
Labor costs
Market domination by multinational firms
Movement of production facilities
Correct. As labor costs increased in the United States, jobs shifted to other countries with lower costs of labor. Now that
the cost of the workforce is increasing in India and China, jobs are shifting to other countries, including back to the
United States.
Question 7
Product safety is __________________________.
mostly handled by consumer advocacy groups that have eliminated the need for government intervention in
product safety issues.
typically stringent in underdeveloped countries due to government laws.
a government concern rather than an organizational issue.
an issue that falls to managers to use their judgment.
Question 8
Which of the following best describes a competitive advantage?
A firm’s ability to manage the triple bottom line in an effective manner
, A capability valued by customers that gives a firm an edge over its rivals
A firm’s sales divided by the sales of all companies in the same industry
The difference between the lowest cost producer and the next-lowest cost producer
Correct. A competitive advantage is a capability that customers value, such as short delivery lead-time or high product
quality that gives an organization an edge against its competition.
Question 9
What is most important in the strategic planning process?
Gathering customer feedback about marketing efforts
Creating action plans for accomplishing organizational goals
Developing supplier relationships for measuring synergy
Correct. The strategic planning process provides a path toward the organization’s objectives, and this path includes
setting goals and developing action plans for achieving the goals.
Question 10
True or false? An order fulfillment system manages customer in several steps. One of these steps is marketing.
True
False
Correct. Obtaining customers’ orders, entering orders into the organization’s information system, and delivering the
order are parts of the order fulfillment process. Marketing is not a part of this process.
Question 11
Productivity is:
The ratio of outputs achieved divided by the quality of the outputs
The frequency and degree to which outputs are free of defects
The ability to modify production at minimal cost in response to customer demands
The ratio of outputs achieved divided by the inputs consumed to achieve those outputs
Correct. Productivity is a mathematical calculation; it is the ratio of the outputs achieved divided by the inputs consumed
to achieve those outputs.
price of food
The price of food declined in the U.S. because of improvements in farming methods and
machinery in the mid- to late-1800s.
Correct. The prices consumers paid for food as a percentage of income declined because of the increased productivity on
farms.
, As indicated with flat panel televisions, when a firm makes improvements to product quality, product
decrease
costs decrease significantly.
Correct. Flat panel televisions have seen large improvements in quality while prices have remained the same or have
dropped substantially.
inputs
Producers of goods and producers of services both acquire and manage inputs throughout a
transformation process.
Correct. Producers of goods and producers of services both transform inputs, including people, capital, material, and
energy, into a good or service. They manage the operations to produce a final product.
Question 2
T
True or false? Through effective operations management, a company improves customer value by enhancing product
quality.
True
False
Correct. With effective operations management, it is possible for a firm to design high-quality products that are well liked
by customers.
Question 3
When a firm applies current technology to operations management, it can ________.
make better products with fewer resources
work more effectively in teams
Correct. Advances in technology make it possible to design and build better products using fewer resources.
Question 4
Operations managers at O’Brien Plastics directly facilitate the achievement of organizational goals
allocating financial resources
by allocating financial resources.
Correct. Operations managers allocate financial and human resources to help the organization accomplish its goals and
implement its strategy.
Question 5
Due to the pressure to compete globally, an increasing number of firms are changing their organizational structures.
Instead of being organized by business functions, more firms are being organized by _______________.
business functions
operations functions
business process
Which of the following is an activity of both service producers and goods producers?
Selling high-quality, tangible products
Separating production from consumption
Focusing on product improvement
Managing a finished goods inventory
Correct. Service-producing organizations and goods-producing organizations have many similarities including a concern
for product improvements. A service firm may strive to improve dependability while a goods firm may work to offer more
product features.
Question 2
True or false? Organizations with flexible operations respond quickly and inexpensively to the changing needs of
customers.
True
False
Correct. When flexibility is inherent in operations, an organization is able to respond rapidly and inexpensively to
changing customer needs.
Question 3
In the 1950s, Coca-Cola replaced glass bottles with lighter, less costly aluminum cans without changing the taste of the
soda. This operations change best illustrates how _________ altered Coca-Cola’s product design.
global business
technology
teamwork
Correct. Coca-Cola’s change from glass to aluminum illustrates a product design improvement due to new technology
because it altered the packaging of the product but not the taste of the product itself.
Question 4
Operations managers primarily help a firm implement a strategy by ________.
allocating resources
hiring new employees
establishing benchmarks
, developing marketing plans
Correct. Operations managers allocate resources to help the organization accomplish its goals and implement its
strategy.
Question 5
A business process has which of the following unique characteristics that make it key in any organization?
It cannot be modified.
It is written out in a contract.
It is cross-functional.
Correct. The work activities outlined in a business process are agreed upon by all the functional areas in a business.
Question 6
Which of the following is a driving force in the global job market as job markets shift between countries for
manufacturing, technology, engineering, and management jobs?
Free trade agreements
Labor costs
Market domination by multinational firms
Movement of production facilities
Correct. As labor costs increased in the United States, jobs shifted to other countries with lower costs of labor. Now that
the cost of the workforce is increasing in India and China, jobs are shifting to other countries, including back to the
United States.
Question 7
Product safety is __________________________.
mostly handled by consumer advocacy groups that have eliminated the need for government intervention in
product safety issues.
typically stringent in underdeveloped countries due to government laws.
a government concern rather than an organizational issue.
an issue that falls to managers to use their judgment.
Question 8
Which of the following best describes a competitive advantage?
A firm’s ability to manage the triple bottom line in an effective manner
, A capability valued by customers that gives a firm an edge over its rivals
A firm’s sales divided by the sales of all companies in the same industry
The difference between the lowest cost producer and the next-lowest cost producer
Correct. A competitive advantage is a capability that customers value, such as short delivery lead-time or high product
quality that gives an organization an edge against its competition.
Question 9
What is most important in the strategic planning process?
Gathering customer feedback about marketing efforts
Creating action plans for accomplishing organizational goals
Developing supplier relationships for measuring synergy
Correct. The strategic planning process provides a path toward the organization’s objectives, and this path includes
setting goals and developing action plans for achieving the goals.
Question 10
True or false? An order fulfillment system manages customer in several steps. One of these steps is marketing.
True
False
Correct. Obtaining customers’ orders, entering orders into the organization’s information system, and delivering the
order are parts of the order fulfillment process. Marketing is not a part of this process.
Question 11
Productivity is:
The ratio of outputs achieved divided by the quality of the outputs
The frequency and degree to which outputs are free of defects
The ability to modify production at minimal cost in response to customer demands
The ratio of outputs achieved divided by the inputs consumed to achieve those outputs
Correct. Productivity is a mathematical calculation; it is the ratio of the outputs achieved divided by the inputs consumed
to achieve those outputs.
price of food
The price of food declined in the U.S. because of improvements in farming methods and
machinery in the mid- to late-1800s.
Correct. The prices consumers paid for food as a percentage of income declined because of the increased productivity on
farms.
, As indicated with flat panel televisions, when a firm makes improvements to product quality, product
decrease
costs decrease significantly.
Correct. Flat panel televisions have seen large improvements in quality while prices have remained the same or have
dropped substantially.
inputs
Producers of goods and producers of services both acquire and manage inputs throughout a
transformation process.
Correct. Producers of goods and producers of services both transform inputs, including people, capital, material, and
energy, into a good or service. They manage the operations to produce a final product.
Question 2
T
True or false? Through effective operations management, a company improves customer value by enhancing product
quality.
True
False
Correct. With effective operations management, it is possible for a firm to design high-quality products that are well liked
by customers.
Question 3
When a firm applies current technology to operations management, it can ________.
make better products with fewer resources
work more effectively in teams
Correct. Advances in technology make it possible to design and build better products using fewer resources.
Question 4
Operations managers at O’Brien Plastics directly facilitate the achievement of organizational goals
allocating financial resources
by allocating financial resources.
Correct. Operations managers allocate financial and human resources to help the organization accomplish its goals and
implement its strategy.
Question 5
Due to the pressure to compete globally, an increasing number of firms are changing their organizational structures.
Instead of being organized by business functions, more firms are being organized by _______________.
business functions
operations functions
business process
