OM3 Ch 01 Goods,Services,AndOperationsManagement

Chapter 1—Goods, Services, and Operations Management TRUE/FASE

1. Operations management is is focused primarily on on the application of technology in manufacturing. manufacturing. ANS: F

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2. To apply the the principles principles of operations management, managers managers need to understand understand people, people, processes, processes, and technology. ANS: T

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. !"ery #o$ entail entailss some aspect aspect of operat operations ions managem management. ent. ANS: T

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%. !mployees &ho &ho &or' in in financial and accounting accounting functions functions of organi(ations organi(ations need little little 'no&ledge 'no&ledge of operations management. ANS: F

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). !nsuring that that a credit card has accurate accurate customer information and is deli"ered deli"ered *uic'ly *uic'ly to the customer is an e+ample of in"entory management in O. ANS: F

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-. A produc productt that typical typically ly lasts lasts at least three three years years is called called a dura$le dura$le good. ANS: T

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. A tooth$rus tooth$rush h is an e+ample e+ample of a nondura$l nondura$lee good. good. ANS: T

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/. 0oth goods and ser"ices can $e standardi(ed standardi(ed for the mass mar'et or customi(ed customi(ed to indi"idual needs. ANS: T

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. ustomer ustomer participat participation ion in manufactur manufacturing ing processes processes and acti"it acti"ities ies is generally generally high. ANS: F

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13. ustomers ustomers and ser"ice ser"ice pro"ide pro"iders rs often &or' &or' together together to co4produc co4producee a ser"ice. ANS: T

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11. 11. Ser"ices Ser"ices al&ay al&ayss in"ol"e in"ol"e direct direct customer customer contact. contact. ANS: F

OM3 Test Bank

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Chapter 1

1

12. oments of truth consist of one or more ser"ice encounters. ANS: F

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1. A ser"ice encounter is any interaction $et&een a customer and the ser"ice pro"ider. ANS: T

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1%. The demand for ser"ices is usually easier to predict than the demand for goods. ANS: F

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1). Ser"ice facilities must $e physically located close to the customer. ANS: F

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1-. The greater the customer participation, the more uncertainty the firm has &ith respect to ser"ice time. ANS: T

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1. A customer $enefit pac'age 50P6 consists of $oth a primary good and a primary ser"ice. ANS: F

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1/. The a$ility to do&nload music onto a cell phone &ould $e considered a primary ser"ice. ANS: F

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1. Peripheral goods and ser"ices are not essential to a primary good or ser"ice. ANS: T

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23. any products that appear to $e only physical goods often include $undled ser"ices. ANS: T

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21. Process thin'ing is the traditional &ay of "ie&ing an organi(ation $y function. ANS: F

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22. 7alue creation processes focus on primary goods and ser"ices. ANS: T

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2. A process can $e designed $y operations managers independently of the choice of a customer $enefit  pac'age, &hich is chosen e+clusi"ely $y mar'eting staff. ANS: F

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2%. Ta'ing a customer order at a *uic' ser"ice restaurant &ould generally $e "ie&ed as a support process. ANS: F

OM3 Test Bank

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Chapter 1

2

2). 8uality has $een a principal focus of operations management since the industrial re"olution. ANS: F

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2-. The reason that many 9apanese firms captured ma#or shares of &orld mar'ets in the 13s &as the result of their focus on *uality rather than efficiency. ANS: T

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2. As manufacturers sought to customi(e products for glo$al mar'ets and increase goods and ser"ice "ariety, they &ere a$le to le"erage the mass production methods that are "ery efficient and cost4 effecti"e. ANS: F

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2/. Today, almost half the .S. economy is in"ol"ed in ser"ice industries. ANS: F

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2. any $usiness4to4$usiness manufacturers thin' of the physical good they produce as peripheral to their ser"ice offerings. ANS: T

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3. Time4$ased competition means pro"iding ne& and inno"ati"e products that surprise and delight customers. ANS: F

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1. Operations management is the only function $y &hich managers can directly affect the "alue pro"ided to all sta'eholders ; customers, employees, in"estors, and society. ANS: T

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MUT!"E C#O!CE

1.

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%. ?n relating operations management and the customer $enefit pac'age 50P6, &hich is the correct timing se*uence= a. Operating system processes lead to customer needs and e+pectations, &hich lead to customer $enefit pac'age.  $. ustomer $enefit pac'age leads to customer needs and e+pectations, &hich lead to operating system processes. c' C(stomer needs and epectations %ead to c(stomer &ene$it pac0age, hich %eads to operating s)stem processes' d. ustomer needs and e+pectations lead to operating system processes, &hich lead to customer $enefit pac'age. ANS: 

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).

OM3 Test Bank

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Chapter 1

6

2. efine O and pro"ide some e+amples of &hat operations managers do. ANS: Operations management 6OM7 is the science and art of ensuring that goods and ser"ices are created and deli"ered successfully to customers. Some e+amples of O acti"ities are: Translating mar'et 'no&ledge of customers to design and manage goods, ser"ices and •  processes. Belping organi(ations do more &ith less. • !nsuring that resources 5la$or, e*uipment, materials, and information6 and operations are • coordinated. !+ploiting technology to impro"e producti"ity. • 0uilding *uality into goods, ser"ices, and processes. • nderstanding ho& to determine resource capacity and schedules. • reating a high4performance &or'place. • ontinually learning and adapting the organi(ation to glo$al and en"ironmental changes. • PTS: 1 2. >ifferentiate $et&een a good and a ser"ice. efine a process. Then differentiate among a "alue creation process, a support process, and a general management process. ANS: A process is a se*uence of acti"ities that is intended to create a certain result such as a physical good, a ser"ice or information. A va%(e creation process focuses on primary goods or ser"ices such as assem$ling dish&ashers or pro"iding a home mortgage. A s(pport process focuses on peripheral goods and ser"ices such as purchasing materials and supplies, managing in"entory, installation, customer support, technology ac*uisition and research and de"elopment. A genera% management process includes accounting and information systems, human resource management and mar'eting. PTS: 1 . ?n the last century, operations management sa& si+ ma#or themes. eming and 9uran told 9apanese e+ecuti"es that continual impro"ement of *uality &ould open &orld mar'ets, free up capacity, and impro"e their economy. The 9apanese eagerly em$raced that message. They em$ar'ed on a massi"e effort to train the &or'force, using statistical tools de"eloped at