Operations Management Quiz

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Questions and Answers

Operations management oversees the transformation process that converts resources such as labor and raw materials into finished goods and services.

  • Systems
  • Control
  • Planning
  • Operations (correct)

The purpose of operations management is to manage ______.

  • inputs
  • outputs
  • the manufacturing process
  • the transformation process (correct)

The transformation process transforms ______.

  • inputs into services only
  • goods and services into products
  • materials into goods only
  • inputs into goods and services (correct)

Value is created during the process of ______.

<p>converting inputs into outputs (A)</p> Signup and view all the answers

Inputs in the transformation process include ______.

<p>both material and nonmaterial items (C)</p> Signup and view all the answers

All organizations produce goods or services through the ______ process.

<p>transformation (B)</p> Signup and view all the answers

As a product, piano lessons are ______.

<p>a service because they are nonmaterial (B)</p> Signup and view all the answers

In a transformation process, people are considered to be inputs because they ______.

<p>perform task that are needed to create outputs (D)</p> Signup and view all the answers

It is easier to see the transformation process at work in manufacturing organizations than in service organizations because manufacturing organizations ______.

<p>produce physical goods (A)</p> Signup and view all the answers

Service organizations ______.

<p>produce nonphysical outputs (A)</p> Signup and view all the answers

Manufacturing organizations ______.

<p>produce physical outputs (B)</p> Signup and view all the answers

Which one of the following is NOT an example of a service organization?

<p>a lens maker (C)</p> Signup and view all the answers

It is estimated that in the United States, about ______ percent of all economic output is toward making tangible, physical objects.

<p>27 percent (D)</p> Signup and view all the answers

A bus company is a ______ organization because its product is ______.

<p>service; transportation (B)</p> Signup and view all the answers

A laptop computer company is a ______ organization because its product is ______.

<p>manufacturing; a computer (A)</p> Signup and view all the answers

Most countries in today's global business climate see ______ as the key to success.

<p>increasing productivity (B)</p> Signup and view all the answers

McDonald's recently made productivity gains by cutting the ______.

<p>time it takes to make French fries (C)</p> Signup and view all the answers

Which one of the following is NOT a way to increase productivity?

<p>increase inputs (B)</p> Signup and view all the answers

W. Edwards Deming thought that ______ was the key to productivity.

<p>managers were (D)</p> Signup and view all the answers

With respect to planning, Deming believed that ______ was most important for productivity.

<p>long-term planning (D)</p> Signup and view all the answers

Flashcards

Operations Management

Oversees the transformation of resources into goods and services.

Purpose of Operations Management

To manage the transformation process.

Transformation Process

Transforms inputs into goods and services.

Value Creation

Occurs during the conversion of inputs into outputs.

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Inputs in Transformation Process

Include both material and nonmaterial items.

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Transformation Process in Organizations

All organizations utilize this process to produce goods or services.

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Piano Lessons Classification

Considered a service because they are nonmaterial.

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Role of People in Transformation

Inputs because they perform tasks to create outputs.

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Manufacturing vs. Service Visibility

Manufacturing is easier to see in action because it produces physical goods.

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Service Organization Outputs

Produce nonphysical outputs.

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Manufacturing Organization Outputs

Produce physical outputs.

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Example of Service Organization

Military forces, universities, and hospitals are examples of service organizations.

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Economic Output in US

About 27 percent is towards making tangible, physical objects.

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Bus Company Classification

A service organization because its product is transportation.

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Laptop Company Classification

A manufacturing organization because its product is a computer.

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Key to Global Business Success

Increasing productivity is essential.

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McDonald's Productivity Gain

Achieved by cutting down the time to make French fries.

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Ways to Increase Productivity

Not by increasing inputs, but through efficiency.

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Deming's View on Productivity

Thought managers were the key to productivity.

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Deming's Planning Focus

Believed long-term planning was most important for productivity.

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Definition of Services

Intangible offerings that can’t be physically possessed.

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Definition of Goods

Tangible products that can be physically touched and owned.

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Service Example: University

Provides education as a service to students.

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Service Example: Hospital

Offers health care services to patients.

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Service Example: Military

Provides protection and defense as a service.

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Efficiency in Manufacturing

Crucial for reducing costs and improving output.

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Inputs vs. Outputs

Inputs are resources, outputs are products of the transformation process.

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Focus of Operations Management

To improve processes and operations efficiency.

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Importance of Planning

Ensures resources are used effectively for production.

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Study Notes

Operations Management Multiple Choice Questions

  • Operations management is responsible for transforming raw materials and labor into finished products and services.
  • The purpose of operations management is to manage the transformation process.
  • The transformation process turns inputs (raw materials, labor, etc.) into outputs (finished goods or services).
  • Value is created through the conversion of inputs into outputs
  • Inputs in the transformation process include physical and non-physical materials.
  • Manufacturing businesses produce physical goods
  • Service businesses produce non-physical goods (or services)
  • Productivity improvement strategies include increasing inputs, lowering costs, enhancing outputs, and improving efficiency.
  • Maintaining productivity, higher wages, and shorter working hours are important for global business success
  • Management decisions, employee training, and production procedures affect productivity gains.
  • Deming believed that managing both workers and managers was key to productivity, planning is also important.

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