M Business 4th Edition Ferrell Test Bank Full Chapter PDF

M Business 4th Edition Ferrell Test
Bank
Visit to download the full and correct content document:
https://testbankdeal.com/download/m-business-4th-edition-ferrell-test-bank/
Chapter 08
Managing Service and Manufacturing Operations
True / False Questions
1. The transformation process occurs only in companies that manufacture tangible goods.
True False
2. Production refers to all the activities involved in producing products, while operations refer to the
physical process of transforming resources into goods and services.
True False
3. Outputs include labor, materials, energy, and money.
True False
4. The transformation process is at the heart of operations management.
True False
5. Operations management refers to those processes used in making both tangible and intangible
products.
True False
6. The number of steps in the transformation process is always the same, no matter what the good
or service.
True False
8-1
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
7. Transformation processes remain the same across all organizations that provide services.
True False
8. In a nonprofit organization like Habitat for Humanity, inputs such as money, materials,
information, and volunteer time and labor are used to transform raw materials into homes for
needy families.
True False
9. Unlike tangible goods, services are effectively actions or performances that must be directed
toward the manufacturers who make them.
True False
10. Manufacturers and service providers differ in the nature and consumption of their output.
True False
11. Service providers are generally less labor-intensive because of the high degree of customization.
True False
12. Variations in demand, service requirements, and the intangibility of the product make measuring
productivity more difficult for manufacturers.
True False
13. A company that uses a fixed-position layout is often called a project organization because it is
involved in large, complex projects.
True False
14. Before making any product, a company first must determine what consumers want and then
design a product to satisfy that want.
True False
8-2
Education.
15. Modular design reduces the cost of labor, but raises the cost of repair materials.
True False
16. Modular design does not allow products to be repaired quickly, thus increasing the cost of labor.
True False
17. Taxes are an important consideration when deciding where to locate a production facility.
True False
18. Intermittent organizations typically use the fixed-position layout.
True False
19. A planning system that schedules the precise quantity of materials needed for production is
called a just-in-time system.
True False
20. The ISO 9000 is a series of international quality management standards for organizations.
True False
21. Quality is a critical element of operations management.
True False
22. The degree to which a good or service meets the demands and requirements of customers is
called customer satisfaction.
True False
23. Quality, as a critical element of operations management, can be difficult to determine.
True False
8-3
Education.
24. Service businesses cannot incorporate quality standards.
True False
25. Inspection reveals whether a product meets quality standards.
True False
Multiple Choice Questions
26. If an employee is involved with transforming resources into goods and services, then he is in:
A. marketing.
B. financing.
C. human resources.
D. operations management.
E. budgeting.
27. Irene is an employee associated with producing goods, services, and ideas that satisfy the needs
of customers. Thus, she works most closely with:
A. financing.
B. budgeting.
C. production.
D. human resources.
E. operations.
8-4
Education.
28. Operations management has the primary responsibility for:
A. employing computer-assisted manufacturing (CAM) exclusively for all transformations.

B. transforming goods and services into resources.
C. creating products that satisfy customers.
D. developing only such products which are intangible.
E. converting outputs into inputs.
29. Which of the following is true of the transformation process?
A. It is the development and administration of activities that transform resources into goods,
services, and ideas.
B. It is the conversion of human, financial, and physical resources into goods, services, and ideas.
C. It involves the assigning of labor, energy, and money for the advertisement of services.
D. It is associated with the promotion and pricing of goods and services.
E. It deals with the distribution and logistics of products.
30. Viewed from the perspective of operations, the money used to purchase a carpenter's tools and
the electricity used to run his power saw are:
A. processes.
B. outputs.
C. stocks.
D. inputs.
E. maintenance costs.
31. Viewed from the perspective of operations, the furniture items produced by a carpenter are:
A. variations.
B. inputs.
C. equipment.
D. outputs.
E. processes.
8-5
Education.
32. From the perspective of operations, food sold at a restaurant and services provided by a
plumbing company are:
A. processes.
B. inputs.
C. outputs.
D. stocks.
E. costs.
33. How do operations managers ensure quality and efficiency during the transformation process?
A. They ensure that their products never use the modular design of transforming because this
process increases the cost of labor.
B. They always employ computer-assisted manufacturing (CAM) technologies to guide and
control the transformation processes.
C. They shift from material-requirements planning (MRP) to just-in-time (JIT) inventory
management.
D. They keep the work cycling between two different batches of labor in order to track any
loopholes.
E. They take feedback at various points in the transformation process and compare them to
established standards.
34. Money, employees, time, and equipment are examples of an airline's _____ to the transformation
process.
A. outputs
B. intangibles
C. products
D. services
E. inputs
8-6
Education.
A. It does not occur in service companies.

B. It occurs in all organizations, regardless of what they produce or their objectives.
C. It occurs only in manufacturing companies because they use tangible inputs.
D. It excludes fund-raising and promoting a cause.
E. It is not a part of government agencies because they do not use machineries for mass
production.
36. Which of the following is NOT a point of difference between service providers and
manufacturers?
A. Services are more labor-intensive.

B. Manufacturing has more uniform outputs.
C. Services do not undergo a transformation process.
D. Manufacturing productivity can be measured straightforwardly.
E. Service providers have less control over the variability of their inputs.
37. For most organizations, the ultimate objective is for produced outputs to be:
A. easy to develop.
B. tangible, hard goods.
C. inexpensive.
D. worth more than the cost of inputs.
E. equal to the costs of input.
38. The nature of the service provider's product requires:
A. fewer employee inputs.

B. a higher degree of customer contact.
C. delayed consumption.
D. more expensive inputs.
E. more standardization.
8-7
Education.
39. Actual performance of the service provider's product typically occurs:
A. several days after purchase.

B. outside the service provider's facility.
C. at the point of consumption.
D. in the buyer's home.
E. before the point of consumption.
40. To receive a haircut, you generally have to go to a salon. This information reflects the _____.
A. uniformity of inputs
B. uniformity of outputs
C. labor required
D. measurement of productivity
E. nature and consumption of output
41. The products of service providers tend to be more customized than those of manufacturers
because:
A. different customers have different needs.

B. the requirements of all customers are more or less the same.
C. technological innovations have reduced variability.
D. there is more capital required in service provision.
E. the specific needs of individual customers get incorporated.
42. The fact that a hairdresser gives each customer a different haircut relates to the difference
between service providers and manufacturers in terms of:
A. consumption of output.
B. uniformity of inputs.
C. labor required.
D. measurement of productivity.
E. uniformity of output.
8-8
Education.
43. When compared to service providers, the products of manufacturers are typically:
A. more labor-intensive.
B. less uniform.
C. more difficult to store.
D. more standardized.
E. cheaper.
44. Compared to service providers, manufacturers generally:
A. are more labor-intensive.

B. are more capital-intensive.
C. customize their outputs.
D. have difficulty measuring productivity.
E. produce intangible outputs.
45. Zedpro Computer Company is determining demand for its future products and how much
consumers are willing to pay. For this, Zedpro should rely on:
A. the economy.
B. marketing research.
C. its competitor's moves.
D. successful past experiences.
E. intuition.
46. As a manufacturing process, the term standardization means:
A. ensuring that each product is sold at the same price.

B. that similar products, manufactured by different companies, all operate in the same manner.
C. making identical, interchangeable components or complete products.
D. making the exact product a particular customer needs or wants.
E. making an item in self-contained units that can be interchanged to create different products.
8-9
Education.
47. A primary reason for using standardization is to:
A. reduce production costs.

B. increase consumer options.
C. reduce product quality.
D. increase variations.
E. foster creativity.
48. Building a computer so that the components can be installed in different configurations to meet
customers' needs is a result of:
A. flexible manufacturing.
B. modular design.
C. customization.
D. specialization.
E. varied engineering.
49. Facility location decisions are complex because:
A. all customers want plants nearby.

B. transportation costs are excessively high.
C. speed of delivery is not very important.
D. proximity to market or community characteristics are not important factors.
E. the firm must live with it once the decision has been made and implemented.
50. A company that manufactures large products, such as houses or bridges, may require that all
resources be brought to a central location during production. This type of facility layout is called:
A. fixed-position layout.
B. product layout.
C. line layout.
D. central control layout.
E. assembly line layout.
8-10
Education.
51. A company performing large, complex tasks such as construction or exploration is called a(n):
A. continuous manufacturing organization.

B. intermittent organization.
C. project organization.
D. exploration company.
E. survey company.
52. A metal fabrication plant with a cutting department, a drilling department, and a polishing
department would likely use _____ layout.
A. fixed-position
B. horizontal-position
C. process
D. geographical
E. customer-based
53. A hospital having an X-ray unit, an obstetrics unit, few emergency rooms, and other units would
best be classified as a(n):
A. intermittent organization.
B. project organization.
C. continuous manufacturing organization.
D. fixed organization.
E. assembly line organizations.
8-11
Education.
54. An organization that creates many products with similar characteristics, such as automobiles,
television sets, or vacuum cleaners, would most likely be categorized as a(n):
A. continuous manufacturing organization.

B. intermittent organization.
C. project organization.
D. process layout organization.
E. fixed-position organization.
55. Which of the following statements is true?
A. Organizations can start greening their supply chains by increasing resource consumption and
waste.
B. The adoption of 100 percent wind-powered electricity increases carbon emissions.
C. Aluminum cans can be recycled an infinite number of times.
D. It is mandatory for organizations to incorporate sustainability into their business models.
E. Balancing profitability and socially responsibility is impossible for corporate organizations.
56. Which of the following activities is NOT included in supply chain management?
A. Getting products to customers

B. Obtaining and managing raw materials
C. Managing finished products
D. Packaging finished products
E. Researching and developing products
8-12
Education.
57. All activities involved in obtaining and managing raw materials and component parts, managing
finished products, packaging them, and getting them to customers are part of:
A. stock management.
B. supply chain management.
C. engineering.
D. finance.
E. strategic planning.
58. Within organizations, purchasing is also referred to as:
A. consumption.
B. disposition.
C. acquisition.
D. procurement.
E. budgeting.
59. The buying of all materials needed by an organization is called:
A. consumer behavior.
B. capital expenditure.
C. purchasing.
D. standardization.
E. just-in-time management.
60. The term _____ refers to all raw materials, components, completed or partially completed
products, and pieces of equipment a firm uses.
A. inventory
B. order quantities
C. production
D. raw materials inventory
E. intangibles
8-13
Education.
61. Materials that have been purchased to be used as inputs in making other products are included
in:
A. finished inventory.
B. partial inventory.
C. raw materials inventory.
D. supplier inventory.
E. component parts inventory.
62. The process of determining how many supplies and goods are needed, keeping track of
quantities on hand, each item's location, and who is responsible for it is called:
A. process layout.
B. product layout.
C. material-requirements planning.
D. inventory control.
E. continuous manufacturing control.
63. A model of inventory management that identifies the optimum number of items to order to
minimize the costs of managing them is called the:
A. just-in-time management model.

B. flexible scheduling model.
C. material requirements planning model.
D. economic order quantity model.
E. logistics model.
8-14
Education.
64. Minimizing inventory by providing an almost continuous flow of items from suppliers to the
production facility is referred to as:
A. just-in-time inventory management.

B. flexible scheduling.
C. material-requirements planning.
D. logistics.
E. the economic order quantity model.
65. A planning system that schedules the precise quantity of materials needed to make a product is
called:
A. just-in-time management.
B. material-requirements planning.
C. economic order quantities.
D. flexible scheduling.
E. cycle-time management.
66. One popular method of scheduling is the _____ which identifies all the major activities or events
required to complete a project, arranges them in a sequence or path, determines the critical path,
and estimates the time required for each event.
A. computer-assisted manufacturing (CAM)

B. Program Evaluation and Review Technique (PERT)
C. Critical Path Method (CPM)
D. economic order quantity (EOQ) model
E. material-requirements planning (MRP)
8-15
Education.
67. The system in which management collects and analyzes information about the production
process to pinpoint quality problems in the production system is called:
A. total quality management.

B. statistical process control.
C. Program Evaluation and Review Technique (PERT).
D. operations control.
E. production control.
68. Which of the following is true about quality?
A. It is a concern only for manufacturing companies.

B. It is a concern only for service providers.
C. It always indicates the price charged for a product.
D. It is a critical element of operations management.
E. Its definition should vary from employee to employee.
called:
A. efficiency.
B. productivity.
C. quality.
D. effectiveness.
E. customer satisfaction.
70. It is especially difficult to measure quality characteristics when:
A. a firm uses ISO 9000.

B. a firm has a total quality management program.
C. the product is a good.
D. the product is a service.
E. a firm uses statistical process control.
8-16
Education.
71. _____ refers to the processes an organization uses to maintain its established quality standards.
A. Quality control
B. Implementation
C. Continuous manufacturing
D. Fixed-position layout
E. Logistics
72. _____ is a philosophy that uniform commitment to quality in all areas of an organization will
promote a culture that meets customers' perceptions of quality.
A. The marketing concept

B. Total quality manufacturing
C. ISO 9000
D. Statistical process control
E. Total quality management
73. The first step in quality control for any organization is:
A. undertaking inspections.
B. establishing standards.
C. sampling products.
D. implementing services.
E. initiating corrections.
74. Sampling is likely to be used:
A. when inspection tests are destructive.

B. when every product must be tested because of human life and safety.
C. to assess the quality of services.
D. sampling is the most expensive option.
E. testing takes a few minutes to complete.
8-17
Education.
75. It is desirable to test only a sample of the product in all of the following circumstances EXCEPT
when:
A. inspection procedures are expensive.

B. elaborate testing equipment is required.
C. testing takes a significant number of hours to complete.
D. the product is destroyed by sampling.
E. sampling does not destroy the product.
Essay Questions
76. What is meant by the term operations management?
77. Distinguish between the concepts of production and operations in the context of operations
management with a suitable example.
8-18
Education.
78. Describe the transformation process, from inputs to outputs, for a good or service of your choice.
79. Discuss the challenges faced by a service organization during the management of its operations.
80. Why do service providers tend to be more labor-intensive than manufacturers?
8-19
Education.
81. State the differences that exist between manufacturers and service providers.
82. Discuss the process of standardization in manufacturing various products.
83. Discuss the process of modular design in manufacturing various products.
8-20
Education.
84. Discuss the process of customization in manufacturing various products.
85. Richard and his friend Jason intend to establish their own ventures. While Richard intends to
establish a manufacturing company, Jason intends to establish a multi-specialty hospital. In the
context of planning the facilities for their ventures, discuss the types of facility layout that should
be implemented by both, prior to the establishment of their ventures.
86. Janet is an entrepreneur who owns an automobile manufacturing company. In the context of the
types of organizations with respect to its facility layout, discuss the type of organization that is
owned by Janet.
8-21
Education.
87. How have computers and robots influenced the operations of business?
88. What is meant by the term sustainability? How does this concept pertain to manufacturers?
89. Define the term inventory. Discuss the three kinds of inventory.
8-22
Education.
90. What is the economic order quantity model?
91. List the advantages and disadvantages of the outsourcing process.
92. What considerations should be taken by managers after materials have been procured and their
use has been determined?
8-23
Education.
93. What is meant by the philosophy of total quality management (TQM)?
94. What is meant by the concept of quality control?
95. Discuss the ISO 14000 as proposed by the International Organization for Standardization (ISO).
8-24
Education.
Chapter 08 Managing Service and Manufacturing Operations Answer
Key
True / False Questions
1. The transformation process occurs only in companies that manufacture tangible goods.
FALSE
The transformation process occurs in the production of both goods and services.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-01 Define operations management and differentiate between operations and manufacturing.
Topic: The Nature of Operations Management
2. Production refers to all the activities involved in producing products, while operations refer to
the physical process of transforming resources into goods and services.
FALSE
Production refers to the activities and processes used in making tangible products, while
operations are the activities and processes used in making both tangible and intangible
products.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
8-25
Education.
3. Outputs include labor, materials, energy, and money.
FALSE
Outputs refer to the goods, services, and ideas that result from the conversion of inputs.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
4. The transformation process is at the heart of operations management.
TRUE
At the heart of operations management is the transformation process through which inputs
(resources such as labor, money, materials, and energy) are converted into outputs (goods,
services, and ideas).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
5. Operations management refers to those processes used in making both tangible and
intangible products.
TRUE
(resources such as labor, money, materials, and energy) are converted into outputs (goods,
services, and ideas).
AACSB: Analytic
Blooms: Remember
8-26
Education.
Difficulty: 1 Easy
6. The number of steps in the transformation process is always the same, no matter what the
good or service.
FALSE
The number of steps in the transformation process can vary greatly from one to many steps.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
7. Transformation processes remain the same across all organizations that provide services.
FALSE
Different types of transformation processes take place in organizations that provide services,
such as airlines, colleges, and most nonprofit organizations.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Explain how operations management differs in manufacturing and service firms.
8-27
Education.
8. In a nonprofit organization like Habitat for Humanity, inputs such as money, materials,
information, and volunteer time and labor are used to transform raw materials into homes for
needy families.
TRUE
Habitat for Humanity also utilizes inputs, outputs, and the transformation process. Inputs such
as money, materials, information, and volunteer time and labor are used to transform raw
materials into homes for needy families.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
9. Unlike tangible goods, services are effectively actions or performances that must be directed
toward the manufacturers who make them.
FALSE
Unlike tangible goods, services are effectively actions or performances that must be directed
toward the consumers who use them.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
8-28
Education.
10. Manufacturers and service providers differ in the nature and consumption of their output.
TRUE
Manufacturers and service providers differ in several respects, including the nature and
consumption of their output, the uniformity of outputs, the uniformity of inputs, the labor
required, and the measurement of productivity.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
11. Service providers are generally less labor-intensive because of the high degree of
customization.
FALSE
Service providers are generally more labor-intensive because of the high level of customer
contact, perishability of the output (must be consumed immediately), and high degree of
variation of inputs and outputs (customization).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
8-29
Education.
12. Variations in demand, service requirements, and the intangibility of the product make
measuring productivity more difficult for manufacturers.
FALSE
For a service provider, variations in demand (for example, higher demand for air travel in some
seasons than in others), variations in service requirements from job to job, and the
intangibility of the product make productivity measurement more difficult.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
13. A company that uses a fixed-position layout is often called a project organization because it is
involved in large, complex projects.
TRUE
A company that uses a fixed-position layout is often called a project organization because it is
involved in large, complex projects such as construction or exploration.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-03 Describe the elements involved in planning and designing an operations system.
Topic: Planning and Designing Operations Systems
14. Before making any product, a company first must determine what consumers want and then
TRUE
Before making any product, a company first must determine what consumers want and then
AACSB: Analytic
8-30
Education.
Blooms: Remember
Difficulty: 1 Easy
15. Modular design reduces the cost of labor, but raises the cost of repair materials.
TRUE
Modular design allows products to be repaired quickly, thus reducing the cost of labor, but the
component itself is expensive, raising the cost of repair materials.
AACSB: Analytic
Blooms: Understand
16. Modular design does not allow products to be repaired quickly, thus increasing the cost of
labor.
FALSE
Modular design allows products to be repaired quickly, thus reducing the cost of labor.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
8-31
Education.
17. Taxes are an important consideration when deciding where to locate a production facility.
TRUE
Inducements and tax reductions have become an increasingly important criterion in recent
years when determining a facility location.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
18. Intermittent organizations typically use the fixed-position layout.
FALSE
Intermittent organizations deal with products of a lesser magnitude than do project

organizations; they are more likely to use a process layout.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
19. A planning system that schedules the precise quantity of materials needed for production is
called a just-in-time system.
FALSE
Material-requirements planning is an inventory management system that schedules the

precise quantity of materials needed to make a product. Just-in-time (JIT) inventory
management is a technique which uses smaller quantities of materials that arrive "just in
time" for use in the transformation process and therefore require less storage space and other
inventory management expense.
AACSB: Analytic
8-32
Education.
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Specify some techniques managers may use to manage the logistics of transforming inputs into
finished products.
Topic: Managing the Supply Chain
20. The ISO 9000 is a series of international quality management standards for organizations.
TRUE
The ISO 9000 is a series of voluntary international quality management standards for
organizations.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Assess the importance of quality in operations management.
Topic: Managing Quality
21. Quality is a critical element of operations management.
TRUE
Quality, like cost and efficiency, is a critical element of operations management, for defective
products can quickly ruin a firm.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
8-33
Education.
called customer satisfaction.
FALSE
Quality is the degree to which a good or service meets the demands and requirements of
customers.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
23. Quality, as a critical element of operations management, can be difficult to determine.
TRUE
Determining quality can be difficult because it depends on customers' perceptions of how well
a product meets or exceeds their expectations.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
24. Service businesses cannot incorporate quality standards.
FALSE
Quality standards can be incorporated into service businesses as well, although measuring
quality in the services industry is especially difficult.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
8-34
Education.
25. Inspection reveals whether a product meets quality standards.
TRUE
Inspection reveals whether a product meets quality standards. The purpose of inspection of
purchased items and finished items is to determine what the quality level is.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Multiple Choice Questions
26. If an employee is involved with transforming resources into goods and services, then he is in:
A. marketing.
B. financing.
C. human resources.
D. operations management.
E. budgeting.
Operations management (OM) is the development and administration of the activities involved
in transforming resources into goods and services.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
8-35
Education.
27. Irene is an employee associated with producing goods, services, and ideas that satisfy the
needs of customers. Thus, she works most closely with:
A. financing.
B. budgeting.
C. production.
D. human resources.
E. operations.
Employees working in operations management develop and administer activities involved in

transforming resources into goods and services that are designed to meet the desires of
customers. Operations include activities and processes used in making both tangible and
intangible products.
AACSB: Reflective Thinking

Blooms: Apply
28. Operations management has the primary responsibility for:
A. employing computer-assisted manufacturing (CAM) exclusively for all transformations.

B. transforming goods and services into resources.
C. creating products that satisfy customers.
D. developing only such products which are intangible.
E. converting outputs into inputs.
Operations management is the core of most organizations because it is primarily responsible

for the creation of their goods and services which have the quality desired by consumers.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
8-36
Education.
A. It is the development and administration of activities that transform resources into goods,
services, and ideas.
B. It is the conversion of human, financial, and physical resources into goods, services, and
ideas.
C. It involves the assigning of labor, energy, and money for the advertisement of services.
D. It is associated with the promotion and pricing of goods and services.
E. It deals with the distribution and logistics of products.
(resources such as human, financial, and physical resources) are converted into outputs
(goods, services, and ideas).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
30. Viewed from the perspective of operations, the money used to purchase a carpenter's tools
and the electricity used to run his power saw are:
A. processes.
B. outputs.
C. stocks.
D. inputs.
E. maintenance costs.
Inputs are the resources—such as labor, money, materials, and energy—that are converted
into outputs.
AACSB: Analytic
8-37
Education.
Blooms: Understand
31. Viewed from the perspective of operations, the furniture items produced by a carpenter are:
A. variations.
B. inputs.
C. equipment.
D. outputs.
E. processes.
Outputs are the goods, services, and ideas that result from the conversion of inputs.
AACSB: Analytic
Blooms: Understand
32. From the perspective of operations, food sold at a restaurant and services provided by a
plumbing company are:
A. processes.
B. inputs.
C. outputs.
D. stocks.
E. costs.
Outputs are the goods, services, and ideas that result from the conversion of inputs.

Blooms: Apply
Difficulty: 3 Hard
8-38
Education.
33. How do operations managers ensure quality and efficiency during the transformation
process?
A. They ensure that their products never use the modular design of transforming because this
process increases the cost of labor.
B. They always employ computer-assisted manufacturing (CAM) technologies to guide and
control the transformation processes.
C. They shift from material-requirements planning (MRP) to just-in-time (JIT) inventory
management.
D. They keep the work cycling between two different batches of labor in order to track any
loopholes.
E. They take feedback at various points in the transformation process and compare them to
established standards.
Operations managers control the transformation process by taking measurements (feedback)

at various points in and comparing them to previously established standards.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
8-39
Education.
34. Money, employees, time, and equipment are examples of an airline's _____ to the
transformation process.
A. outputs
B. intangibles
C. products
D. services
E. inputs
An airline transforms inputs such as employees, time, money, and equipment through
processes such as booking flights, flying airplanes, maintaining equipment, and training
crews.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
A. It does not occur in service companies.

B. It occurs in all organizations, regardless of what they produce or their objectives.
C. It occurs only in manufacturing companies because they use tangible inputs.
D. It excludes fund-raising and promoting a cause.
E. It is not a part of government agencies because they do not use machineries for mass
production.
Transformation processes occur in all organizations, regardless of what they produce or their
objectives.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
8-40
Education.
36. Which of the following is NOT a point of difference between service providers and
manufacturers?
A. Services are more labor-intensive.

B. Manufacturing has more uniform outputs.
C. Services do not undergo a transformation process.
D. Manufacturing productivity can be measured straightforwardly.
E. Service providers have less control over the variability of their inputs.
All products—goods and services—undergo a transformation process.
AACSB: Analytic
Blooms: Understand
37. For most organizations, the ultimate objective is for produced outputs to be:
A. easy to develop.
B. tangible, hard goods.
C. inexpensive.
D. worth more than the cost of inputs.
E. equal to the costs of input.
For most organizations, the ultimate objective is for the produced outputs to be worth more
than the combined costs of the inputs.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
8-41
Education.
38. The nature of the service provider's product requires:
A. fewer employee inputs.

B. a higher degree of customer contact.
C. delayed consumption.
D. more expensive inputs.
E. more standardization.
There is a significant customer-contact component to most services. Examples of high-

contact services include health care, real estate, tax preparation, and food service.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
39. Actual performance of the service provider's product typically occurs:
A. several days after purchase.

B. outside the service provider's facility.
C. at the point of consumption.
D. in the buyer's home.
E. before the point of consumption.
The actual performance of the service typically occurs at the point of consumption.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
8-42
Education.
40. To receive a haircut, you generally have to go to a salon. This information reflects the _____.
A. uniformity of inputs
B. uniformity of outputs
C. labor required
D. measurement of productivity
E. nature and consumption of output
Most services are consumed at the point of production. Hence, in order to get a haircut, one
generally must go to an establishment that cuts hair.

Blooms: Apply
41. The products of service providers tend to be more customized than those of manufacturers
because:
A. different customers have different needs.

B. the requirements of all customers are more or less the same.
C. technological innovations have reduced variability.
D. there is more capital required in service provision.
E. the specific needs of individual customers get incorporated.
Services are more likely to incorporate the specific needs of individual customers into the
service provision, resulting in more "customized" products.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
8-43
Education.
42. The fact that a hairdresser gives each customer a different haircut relates to the difference
between service providers and manufacturers in terms of:
A. consumption of output.
B. uniformity of inputs.
C. labor required.
D. measurement of productivity.
E. uniformity of output.
Manufacturers and service providers differ in the uniformity of their output, the final product.
Because of the human element inherent in providing services, each service tends to be
performed differently. If a barber or stylist performs 15 haircuts in a day, it is unlikely that any
two of them will be exactly the same.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
43. When compared to service providers, the products of manufacturers are typically:
A. more labor-intensive.
B. less uniform.
C. more difficult to store.
D. more standardized.
E. cheaper.
The products produced by manufacturers are more likely to be standardized than the products
produced by service organizations.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
8-44
Education.
44. Compared to service providers, manufacturers generally:
A. are more labor-intensive.

B. are more capital-intensive.
C. customize their outputs.
D. have difficulty measuring productivity.
E. produce intangible outputs.
Manufacturers are more capital-intensive than services providers, who are more labor-
intensive.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
45. Zedpro Computer Company is determining demand for its future products and how much
consumers are willing to pay. For this, Zedpro should rely on:
A. the economy.
B. marketing research.
C. its competitor's moves.
D. successful past experiences.
E. intuition.
Marketing research can help gauge the demand for a product and how much consumers are
willing to pay for it.

Blooms: Apply
8-45
Education.
Another random document with
no related content on Scribd:
TO ROAST POTATO CARD
TIN-PAIL EAR
OVER OVEN GRATE SUPPORT
SCREEN-DOOR
EYE FOR FISH- SPRING REPAIR HOLDS BUGGY
HOOK SINKER CURTAIN OVER
SPRING HINGE FOR TORN BUTTON-
BOX HOLE
DRY-BATTERY CONNECTOR
These Eight Examples of How an Ordinary Safety Pin can be Used for
Practical Purposes Are Suggestive of Many Others
It is surprising to note how many uses can be made of an ordinary
safety pin, both as an emergency-repair device, and for other
purposes. I found 40 simple uses for safety pins, a few of which are
shown in the illustration. Some of the many other uses are as a
chain, a candle holder, a spring, a cover holder for a kettle, and as a
pencil clip. Most of these can be made by twisting the safety pin with
a small plier. By using a cutting plier, many more useful kinks can be
devised.—George G. McVicker, North Bend, Neb.
Moving Heavy Objects with a Broom
The Broom Is Slippery and Rides over the Floor or Even Carpets without
Trouble
After trying to move a heavy trunk alone, the attempt is usually

given up until some friend can be called in to lend a hand, because a
truck or other means of handling such heavy objects is not at hand.
An ordinary sweeping broom will serve as a sled to move a stove or
similar object in the home without heavy lifting. The straw in the
broom is slippery and can be drawn over carpets without injuring
them. In handling a stove, the legs must of course be removed, one
person drawing the load and the other steadying it.—Samuel H.
Avery, Chicago, Ill.
Rear Seat for Motorcycle or Bicycle
This Light-Weight Homemade Rear-Seat Fixture Is a Convenience for a

Strong Bicycle or Motorcycle
A rear seat mounted on a light support that can be quickly
attached to a strong bicycle or a motorcycle is handy, and one like
that shown in the sketch can be made in the home workshop. The
supporting frame, consisting of two main sections forming a fork over
the rear axle, and a brace extending to the bicycle frame, are made
of ¹⁄₄ by 1¹⁄₄-in. strap iron. The seat and the handlebars are
supported on posts of the usual type, flattened at their lower ends,
and riveted to the fixture. The lower ends of the fork are bent to form
foot rests. The detailed construction of the seat post and the method
of clamping the brace at A are shown in the smaller sketches. The
fastenings on the seat and handlebar posts are made with rivets or
bolts.—P. P. Avery, Garfield, N. J.
Changing Wheels Equalizes Wear on Baby-Cab
Tires
The front and rear wheels of a baby cab are usually of the same
size and the tires on the rear wheels are worn much more rapidly
than those on the front wheels. By changing the position of the
wheels, the wear on the tires is equalized, making it unnecessary to
renew them until all are worn out.—J. Cecil Alter, Cheyenne, Wyo.
A Craftsman Leather Billfold
By LIVINGSTON HAVILAND
T he making of a billfold is easily within the range of an amateur in

leather work, who will observe the instructions carefully. Seal,
morocco, pigskin, and ooze sheep are satisfactory. Skiver, or thin
leather, and silk moiré make suitable linings. When the processes
involved in the making of the billfold are mastered, numerous other
small articles in leather will suggest themselves, and can be made
similarly.
Fig. 1. Place the Pattern on the Leather and Trim It to Size Even with the
Edges of the Pattern
The finished billfold is shown with the cardcase side up; folded,
and with the bill compartment open, in Fig. 2. Begin the making of it
by cutting a pattern of stiff cardboard for the main portion, or body
part No. 1, as shown in Fig. 1.
Make a second pattern for body part No. 2, as shown in Fig. 1.
Trim the leather to fit the patterns, a straight edge of metal being
placed over the pattern as a guide for the knife. A close-grained
hardwood board, or a piece of sheet zinc, is suitable as a base for
cutting the leather.
Cut pieces of lining slightly larger than the patterns. If skiver is
used, it must be glued to the leather with a good quality of leather
glue, which should be pliable so as not to crack the leather. Do not
stretch the lining, but merely smooth it gently, as otherwise it may
cause the leather to buckle. Place the glued parts under a light
weight to dry. In fitting the silk lining into place, apply a thin stripe of
glue around the edges only, and permit them to extend beyond the
leather. Then trim them off neatly.
Part No. 1 is to be folded to form the back of the billfold and also
the two pockets for cards. The parts are glued as shown in Fig. 3.
Weight the billfold and permit the glue to dry. The sewing may then
be undertaken.
Fig. 2. The Photographs Show the Cardcase Side, the Folded Billfold, and
the Silk-Lined Money Compartment
Fig. 3. Glue the Parts Together Carefully along the Edges, and Fold the
Ends as Indicated
The neatness of the billfold will depend largely on the care with
which the sewing is done, and the finish on the edges. Draw a
straight line with a blunt-point tool along the edges to be sewed, ³⁄₁₆
in. from them. Mark the spacing for an inch of the stitches on a strip
of paper and transfer them to the stitching line. Punch the holes,
making certain that each is made with the awl held vertical, as
shown at D. Back the open ends with strips of cardboard when
punching holes in them. Heavy, waxed silk of a color to match the
leather is used for the sewing. The work may be done by hand
without a holder, clamped between two boards. Thread the two
needles and start them from the right side, as at E. Pass the needle
from the first hole through the second as at F. With the needles then
in position, as at G, continue this stitch. Tie the ends of the thread
neatly at the end of the stitching. Trim the edges and tool them to a
smooth finish with a suitable metal tool, or rod, heated moderately,
applying water with the finger tip.
¶The taper of a key is generally ¹⁄₈ in. per foot of length, and keys
having a head are preferable because of greater ease in removing
them. The width of a key is usually ¹⁄₄ the diameter of the shaft, plus
¹⁄₈ inch.
Lawn Mower Sharpened Efficiently with Simple
Rigging
The Lawn Mower is Sharpened Quickly by the Use of This Rigging
With this device, one can quickly sharpen the lawn mower, or
perhaps earn money sharpening the neighbors’ machines. Because
several knives in a lawn mower work against the cutting blade, it is
difficult to sharpen a mower satisfactorily with a file or stone. A usual
method is to reverse the cutting-wheel cogs, turn the mower upside
down, and run it backward over the ground. By the use of grinding
paste on the cutting blade the cutting wheel tends to sharpen itself.
This process can be improved by supporting the mower, as shown at
A, the blocks permitting the mower’s driving wheels to rest outside
them. A block, B, supports the wooden roller. Remove the driving
wheels, and the gears which turn the cutting wheel. Take the gear
from one end and put it in the other end, replacing the driving wheel.
By revolving the latter backward, the cutting wheel will also turn
backward. Apply a paste of emery powder and lubricating oil to the
cutting blade, and adjust the blade so that it comes fairly into contact
with the cutting wheel. Turn the driving wheel backward, and
gradually tighten the adjustment until a good edge on the cutting
blade and the knives is produced.
A handle fixed on the driving wheel, as shown at C, makes turning
it easier. After sharpening, replace the gears, clean the bearings
thoroughly, and replace the driving wheels.—Ed. M. Hawes, Everett,
Wash.
Rubber Pads for Opening Screw Watch Bezel
The modern screw case for watches is primarily for the purpose of
keeping dust from getting into the delicate works. Unless one is
possessed of a strong grip, it is hard not only to set the case tight
enough to keep out dust, but also to open the watch when
adjustment is necessary. To make this work easy, a jeweler has, as a
part of his tool kit, several rubber dies to fit the different sizes of
watch cases. He made them from old rubber heels, cut to fit the
watch cases closely. Danger of breaking the crystal is also
overcome.—C. E. Drayer, Cleveland, Ohio.
Spring Roost Releases Poultry-House Door Latch
The Door is Opened Automatically When the Fowl Leave Their Roost
Those in the habit of shutting their poultry houses at night to

prevent disturbance or loss by night-prowling animals, will be
interested in a contrivance that makes this unnecessary. The
principle of the mechanism, as illustrated is that the opening to the
poultry house is closed after the fowls have gone to roost, and in the
morning when they descend from the roost, the door automatically
opens, and they are free to go out. The spring door opens inside with
hinges at the side, and a suitable bumper. The spring has just
sufficient tension to cause the door to open when the catch is
released.
The roost is fitted up as shown in the detail. One end is held by a
bolt, while the other rests on a coil spring compressed by the weight
of the fowls on the roost. A cord is attached at the spring end,
passing through pulleys to the door, where it is fastened to the end of
the bolt catch. The door is closed after the fowls are on the roost.
The spring end is compressed to a level position, by their weight.
The instant the birds leave the roost, it rises and pulls the cord,
releasing the catch, and permitting the door to open.—George S.
Brown, Norwich, Conn.
A Child’s Bell-Ringing Hoop
In making this useful toy, first, a wheel from an old baby carriage
was stripped of the tire; then two laths are fastened together at one
end, and the wheel inserted between them, at the other end, and
held by a bolt. A strong cord was passed around the groove in the
wheel, and around a spool, nailed so as to turn on the side of the
lath when the wheel is rotated. Driven into the rim of the spool are
three nails, which strike against the old alarm-clock bell, fastened as
indicated.—W. F. MacGregor, Toronto, Can.

M Business 4th Edition Ferrell Test Bank Full Chapter PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

M Business 4th Edition Ferrell Test Bank Full Chapter PDF

Uploaded by

Copyright:

Available Formats

M Business 4th Edition Ferrell Test

Managing Service and Manufacturing Operations

True / False Questions

3. Outputs include labor, materials, energy, and money.

4. The transformation process is at the heart of operations management.

18. Intermittent organizations typically use the fixed-position layout.

21. Quality is a critical element of operations management.

23. Quality, as a critical element of operations management, can be difficult to determine.

25. Inspection reveals whether a product meets quality standards.

Multiple Choice Questions

A. employing computer-assisted manufacturing (CAM) exclusively for all transformations.

29. Which of the following is true of the transformation process?

A. It does not occur in service companies.

A. Services are more labor-intensive.

38. The nature of the service provider's product requires:

A. fewer employee inputs.

A. several days after purchase.

A. different customers have different needs.

44. Compared to service providers, manufacturers generally:

A. are more labor-intensive.

46. As a manufacturing process, the term standardization means:

A. ensuring that each product is sold at the same price.

A. reduce production costs.

49. Facility location decisions are complex because:

A. all customers want plants nearby.

A. continuous manufacturing organization.

A. continuous manufacturing organization.

55. Which of the following statements is true?

A. Getting products to customers

58. Within organizations, purchasing is also referred to as:

59. The buying of all materials needed by an organization is called:

A. just-in-time management model.

A. just-in-time inventory management.

A. computer-assisted manufacturing (CAM)

A. total quality management.

68. Which of the following is true about quality?

A. It is a concern only for manufacturing companies.

70. It is especially difficult to measure quality characteristics when:

A. a firm uses ISO 9000.

A. The marketing concept

74. Sampling is likely to be used:

A. when inspection tests are destructive.

A. inspection procedures are expensive.

76. What is meant by the term operations management?

80. Why do service providers tend to be more labor-intensive than manufacturers?

82. Discuss the process of standardization in manufacturing various products.

83. Discuss the process of modular design in manufacturing various products.

91. List the advantages and disadvantages of the outsourcing process.

94. What is meant by the concept of quality control?

True / False Questions

4. The transformation process is at the heart of operations management.

18. Intermittent organizations typically use the fixed-position layout.

Intermittent organizations deal with products of a lesser magnitude than do project

Material-requirements planning is an inventory management system that schedules the

21. Quality is a critical element of operations management.

23. Quality, as a critical element of operations management, can be difficult to determine.

24. Service businesses cannot incorporate quality standards.

25. Inspection reveals whether a product meets quality standards.

Multiple Choice Questions

Employees working in operations management develop and administer activities involved in

AACSB: Reflective Thinking

28. Operations management has the primary responsibility for:

A. employing computer-assisted manufacturing (CAM) exclusively for all transformations.