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Over the last five decades, operations management has experienced a shift in focus from effectiveness to efficiency.

A) True
B) False

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In the context of global competition, which of the following countries had adopted new techniques that focused on improving the quality of products as early as the 1970s?


A) India
B) Russia
C) China
D) Japan

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

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Which of the following is a benefit of holding large inventories?


A) Reduced holding costs
B) Increased protection against losses due to depreciation
C) Increased availability of funds
D) Reduced ordering costs

E) All of the above
F) None of the above

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Which of the following statements is true of offshoring?


A) It doesn't require outsourcing.
B) It is an expensive deal for organizations.
C) It doesn't move the processes done by an organization to foreign locations.
D) It creates the environment in which the customer and service provider interact.

E) A) and B)
F) A) and C)

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An assembly line is an example of a product layout.

A) True
B) False

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Briefly explain ISO. Explain the significance of the ISO 9000 family of standards.

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Answers will vary. Founded in 1947, ISO ...

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Graham, the operations manager at Flux Corp., presents a report to the management about the problems faced by the company in handling various tasks across the company's value chain. He points out that the company does not have expertise in most of these tasks and performing them leads to inefficient use of resources. In the context of the given scenario, to improve the company's utilization of resources, the management should:


A) vertically integrate the company.
B) adopt the strategy of outsourcing.
C) adopt green practices to achieve sustainability.
D) seek ISO 9000 certification.

E) B) and C)
F) A) and B)

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Which of the following statements is true of enterprise resource planning (ERP) systems?


A) They help manage activities along an entire value chain.
B) They are inexpensive and easy to implement.
C) They require users to enter and access data in traditional ways.
D) They are the software version of the critical path method.

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

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Firms often use a _____ when they manufacture goods that are relatively standardized and manufactured in large volumes.


A) process layout
B) product layout
C) functional layout
D) fixed position layout

E) A) and B)
F) A) and C)

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Samantha, a programmer working for GameZone Inc., uses a software program that enables her to create drawings quickly and easily. The software also allows her to create 3-D drawings. In this scenario, which of the following types of software does Samantha use?


A) Computer-aided design software
B) Computer-aided engineering software
C) Computer-aided manufacturing software
D) Computer-aided processing software

E) B) and C)
F) A) and B)

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April owns a bakery that specializes in bulk orders. April does not have enough storage space and therefore maintains a very small inventory of finished goods and raw materials. She depends on her suppliers to supply raw materials quickly whenever she receives an order, and she has created a system that allows her to seamlessly coordinate with all her suppliers in real time. From the given information, it can be inferred that April follows the:


A) push system of inventory control.
B) mass production system.
C) just-in-time production system.
D) continuous production system.

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

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Harry's Inc., a manufacturer of men's apparel, manufactures large quantities of the company's basic clothing lines to keep the manufacturing costs low. Given this information, it can be inferred that Harry's Inc. pursues:


A) just-in-time production.
B) mass production.
C) mass customization.
D) lean production.

E) A) and C)
F) A) and B)

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Unlike in the 1960s, most operations managers today view the natural environment as something to exploit.

A) True
B) False

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Which of the following products is most likely to require a fixed position layout?


A) An industrial washing machine
B) A supercar
C) A submarine
D) A household boiler

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

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Which of the following statements is true of operations management in the 2010s?


A) It focuses on creating value rather than minimizing costs.
B) It focuses on efficiency rather than effectiveness.
C) It favors simple supply chains rather than complex value chains.
D) It focuses on mass production rather than mass customization.

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

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Marshall appreciates the absolute silence at Henry's Public Library. He is impressed with the arrangement of the books as they are segregated according to the genres, authors, and publication dates. In this scenario, Marshall is impressed by the _____ of Henry's Public Library.


A) green practices
B) product layout
C) computer-aided design
D) servicescape

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

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Enterprise resource planning (ERP) systems are:


A) complex.
B) cheap.
C) easy to implement.
D) user-friendly.

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

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Explain the major changes in the practice of operations management over the last five decades.

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Answers will vary. In the 1960s, the foc...

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Ursula Corp., a manufacturer of notebooks, makes small batches of different kinds of notebooks according to the customer demand. In this way, it caters to the needs of various customers without significantly increasing the manufacturing cost. In this scenario, which of the following techniques does Ursula employ?


A) Computer-aided engineering
B) Mass production
C) Adjustable manufacturing
D) Mass customization

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

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Identify an example of a green practice.


A) Adopting the strategy of greenwashing
B) Adopting the strategy of planned obsolescence
C) Providing tangible and intangible benefits along with products to create value for consumers
D) Providing labeling to help consumers find out which products are the most environmentally friendly

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

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