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Course, year, and Section:

Operations Management and TQM
Quiz. No. 1

Part I. Multiple Choice

Direction: Write the letter of your answer on the space before the number.
d. 1. The following are the basic organizational areas of a business organization, except
a. Operations Department c. Marketing Department e. all of the choices
b. Finance Department d. None of the choices
d. 2. Which of the following input-transformation process-output relationship is incorrect?
a. Bicycle parts – assembling – bicycles
b. Coconut sap – fermentation – coconut wine
c. Business transactions – accounting – financial statement
d. Fabric – weaving – clothing
e. None of the choices
d. 3. Delivery of services has a higher degree of customer contact as compared to production of services. Which of the following
service business is an exception to the foregoing general principle?
a. Accounting firm c. Medical clinic
b. Cellphone repair shop d. Electricity provider
a 4. Among the following comparison points, which has a higher degree for “production of goods” than for “delivery of
services”?
a. Uniformity of inputs c. degree of customer contact
b. Labor content d. none of the choices
c 5. Why is it more difficult to measure the productivity in delivery of service than in production of goods?
a. Because the income in delivery of goods is too variable to measure.
b. Being an intangible output, delivery of goods is inherently difficult to measure
c. Because service jobs have high variation of inputs
d. Because no expenses are incurred in delivery of services
a 6. What kind of variation is characterized by natural variability present to some extent in all processes, as well as in demand for
services and products, and it cannot generally be influenced by managers?
a. Random variation c. assignable variation
b. Gross profit variation d. structural variation in demand
c7. Which among the sources of variation is predictable, which is caused by trends and seasonality of products?
a. Random variation c. structural variation
e b. Variety of goods and services d. Assignable variation
8. Production systems with standardized outputs typically:
a. have relatively high volume of outputs c. have relatively low unit cost
b. have relatively high mechanization d. Use relatively low-skilled workers
e. all of the above
a 9. The greater the degree of customer involvement, the more challenging the design and management of operations.
a. True b. False c. Sometimes d. I do not know
10. Operations management
a
a. the management of systems or processes that create goods and provide services
b. a sequence of activities and organizations involved in producing and delivering a good or service
c. the processes involve in transformation of inputs to outputs
d. none of the choices
11. Supply chain
b
a. the management of systems or processes that create goods and provide services
b. a sequence of activities and organizations involved in producing and delivering a good or service
c. the processes involve in transformation of inputs to outputs
d. none of the choices
c12. Craft production
a. system in which low-skilled workers used specialized machinery to produce high volumes of standardized products
b. parts of a product made to such a precision that they do not have to be custom-fitted
c. system in which highly-skilled workers use simple-flexible tools to produce small quantities of standardized goods.
d. system in which highly-skilled workers use simple-flexible tools to produce large quantities of standardized goods.
a 13. Random variation is a natural variation in the output of a process, created by countless minor factors
a. True b. false c. It depends d. none of the choices
14. Which of the following is a physical model?
d
a. bar graph used to analyze the changes in the level of customer satisfaction
b. transportation model used to analyze different transportation routes
c. Demand curve used to analyze market preferences
d. none of the choices
e. all of the choices
a 15. Normally, businesses offer a combination of service and goods in their operations.
a. True b. false c. sometimes d. Maybe
16. Why is delivery of services considered to have a higher degree of labor content than production of goods?
a a. because services needed by customers vary depending on what they need
 b. because delivery of services needs to be standardized to assure quality
c. because delivery of services includes automation in the performance of tasks
d. because services are normally difficult to do than goods
b
17. Production of goods normally has uniform of inputs due to mass production and standardization of process. Which of the
following is the most probable disadvantage of production of goods in the said aspect?
a. the quality of output is sacrificed when doing mass production
b. one mistake in one unit of product means all products will bear the same mistake
c. capacity of the machines used to produce goods is not maximized
d. high costs is allotted to pay highly-skilled workers
d 18. Which of the following is not a scope of operations management?
a. Forecasting of future demand to plan production of goods
b. establishment of quality control procedures
c. Scheduling of machine use
d. Hiring of production workers
b 19. Which of the following is a benefit of studying operations management?
a. the student will learn personal budgeting as operations management obviously involves budgeting resources.
b. the student will learn human relations as operations management involves hiring of workers
c. the student will learn analysis of financial statement as operations management applies financial techniques
d. none of the choices
e. all of the choices
b 20. Operations manager coordinates with different department to carry out its function properly. Which of the following
department is least likely to coordinate with the operations manager?
a. legal department regarding labor issues and workers’ rights
b. human resources management regarding the qualifications of production workers to be hired
c. management information system department regarding the supplement of information on decision making
d. none of the choices
b e. all of the choices
21. Career opportunities for operations management include the following, except
a. time study analysts c. schedule coordinator
b. purchasing manager d. personnel manager
b 22. It is an abstraction of reality normally used in analysis and decision making.
a. graphs . b. model c. prototype d. blueprint
23. Which among the choices does not belong to the group?
a a. pie chart b. linear programming c. demand equation d. quadratic formula

24. These models are more abstract than their physical counterparts; that is, they have less resemblance to the physical reality.
c Examples include graphs and charts, blueprints, pictures, and drawings
a. physical model b. top model c. schematic model d. mathematical model
d 25. The following are the disadvantages of using models, except
a. Quantitative information may be emphasized at the expense of qualitative information.
b. Models may be incorrectly applied and the results misinterpreted. of a particular model; thus, they are unable to fully
c. The use of models does not guarantee good decisions.
d. Serve as a consistent tool for evaluation and provide a standardized format for analyzing a problem.
a 26. Customer satisfaction is at high level when products are highly customized.
a. true b. false c. It depends d. Sometimes
27. Under the following criteria, production of goods and delivery of services are at opposite ends, except
d a. Degree of customer contact c. Measurement of productivity
b. Amount of income d. variability of input
28. Variations occur in every business. Some of the reasons are the following except
a
a. variation is inherent in the operations processes
b. variation is due to uncontrollable effect of seasonality of demand and supply
c. variation is due to decisions made by persons involve in the production process
d. none of the choices
e. all of the choices
29. It refers to the production process where the inputs are the one moving while the workforce is standing still, thereby,
d
improving efficiency in resources.
a. parts-moving process c. interchangeable parts
c. gilbreth d. none of the choices
d 30. He is referred to as the father of scientific management.
a. Frank Gilbreth c. Henry Ford
b. Adam Smith d. Frederick Taylor

Part II. True or False

Direction: Write T if the statement is correct. Otherwise, write F.
T 1. Some service provider have no operations function
T 2. A large percentage of the revenue of most firms are spent in the operations management function
T 3. The sale of most goods include services
T 4. Operations manager are increasingly concerned with designing products and processes that are environmentally friendly
T 5. Productivity in the service sector has proven difficult to improve because it is typically labor-intensive
6. Process is one or more actions that transform inputs into outputs
F
7. Insourcing is buying goods or services instead of producing or providing them in house
T
8. Productivity is a measure of the effective use of resources, normally the ratio of input over output
T
 T 9. Assignable variation is in process output, a variation whose can be identified, a nonrandom variation
T 10. The basic function of business activities are financing, operations, and distribution
F 11. Gantt chart is introduced by Henry Ford.
F 12. Craft production focuses on quantity over quality
T 13. An operations management graduate can work an inventory manager
F 14. Schematic models are the most abstract among the different kinds of models
T 15. An operations manager’s function includes scheduling task

Part III. Identification

Direction: Identify to whose name in the history of operations management the following principles, ideas and techniques are
attributed to. Write your answer on the space provided.

Interchangeable parts Eli Whitney

___________________________________
Motion study Frank Gilbreth
___________________________________
Chart for scheduling (Gantt Chart) Henry Gantt
___________________________________
Division of Labor ___________________________________
Adam Smith
Application of scientific management ___________________________________
Harrington Emerson
in railroads projects
Scientific Management Frederick Taylor
___________________________________
Linear programming ___________________________________
George Dantzig
Theory X and Theory Y ___________________________________
Douglas McGregor
Mass production ___________________________________
Henry Ford
Theory Z ___________________________________
William Ouchi

Part IV. Case Analysis

Direction: Read the case presented below then briefly answer the questions that follow.

Eleni had worked for the same FT Global 500 company for almost 16 years. Although the company had gone through some tough
times, things were starting to turn around. Customer orders were up, and quality and productivity had improved dramatically from
what they had been only a few years earlier following a companywide quality improvement program. So it came as a real shock to
Eleni and about 350 of her co-workers when they were suddenly made redundant following the new CEO’s decision to downsize the
company.

After recovering from the initial shock, Eleni tried to find employment elsewhere. Despite her efforts, after eight months of searching
she was no closer to finding a job than the day she started. Her funds were being depleted and she was getting more discouraged.
There was one bright spot, though: she was able to bring in a little money by gardening for her neighbors. She got involved quite by
chance when she heard one neighbor remark that now that his children had left the family home, nobody was around to cut the grass
and water some plants. Almost jokingly, Eleni asked him how much he’d be willing to pay. Soon Eleni was doing the basic gardening
of five neighbors. Other neighbors wanted her to work on their gardens, but she didn’t feel that she could spare any more time from
her job search.

However, as the rejection letters began to pile up, Eleni knew she had to make a decision. On a sunny Wednesday morning, she
decided, like many others in a similar situation, to go into business for herself—taking care of neighborhood gardens. She was
relieved to give up the stress of job hunting, and she was excited about the prospect of being her own boss. But she was also fearful of
being completely on her own. Nevertheless, Eleni was determined to make a go of it.

At first, business was a little slow, but once people realized Eleni was available, many asked her to take care of their gardens. Some
people were simply glad to turn the work over to her; others switched from professional garden maintenance services. By the end of
her first year in business, Eleni knew she could earn a living this way. Business became so good that Eleni hired two parttime workers
to assist her and, even then, she believed she could expand further if she wanted to.

Questions
1. In what ways are Eleni’s customers most likely to judge the quality of her garden care services?
2. Eleni is the operations manager of her business. Among her responsibilities are forecasting, inventory management, scheduling,
quality assurance, and maintenance.
a. What kinds of things would likely require forecasts?
b. What inventory items does Eleni probably have? Name one inventory decision she has to make periodically.
c. What scheduling must she do? What things might occur to disrupt schedules and cause Eleni to reschedule?
d. How important is quality assurance to Eleni’s business? Explain.
e. What kinds of maintenance must be performed?
3. What are some of the trade-offs that Eleni probably considered relative to:
a. Working for a company instead of for herself?
b. Expanding the business?
4. What are the major sources of variation that Eleni has to contend with?
5. Eleni is thinking of making some of her operations sustainable. What are some ideas she might consider?