OM 305

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The "father" of scientific management is

Frederick W. Taylor.

The three major business functions necessary to all organizations are

marketing, finance/accounting, production/operations.

Which of these is NOT one of the basic functions of the management process.


Which of these statements accurately captures a current trend in operations?

Products and services are designed more quickly and by teams.

The service sector constitutes what percentage of employment in the United States?

Between 75% and 85%

Productivity increases when

inputs decrease while outputs remain the same.

The capital investment each year in the United States usually


Which appears to provide the best opportunity for increases in productivity?


The person who introduced standardized, interchangeable parts was

Eli Whitney.

The person who developed plant-wide quality control systems was

W. Edwards Deming.

An insurance adjuster processes the claims of six policy holders in an eight hour work day. The adjuster uses $5 in gasoline and $3 in forms and office supplies to complete the work. What is her labor productivity?

0.75 claims per hour

Two car wash employees are paid $7.50 an hour each and are capable of washing 12 cars per hour, using $1 of water and $2 of soap and other cleaning supplies. What is the multifactor productivity of this operation?

0.66 cars per dollar

When a tangible product is NOT included in the service, it is called

a pure service.

In the early part of the 21st century, annual productivity growth in the U.S. has been _______ .


Increases in productivity are difficult to achieve if

the task is more intellectual and personal.

Which of the following is not an OM strategy/issue during the decline stage of the product life cycle?

limited product differentiation, cost minimization, over-capacity in the industry

Standardization of product design is generally associated with the maturity stage of the product life cycle.


Global companies may be able to attract and keep the talent necessary for success.


Competing on differentiation is

concerned with uniqueness

A strategy is

an action plan to achieve a mission

Michel Porter suggested that firms achieve missions by

differentiation, cost leadership, and quick response

Differentiation can go beyond the physical product.


The difference between a multinational corporation (MNC) and an international business is

for the multinational firm, the business done outside the country is especially significant

Which of the following is not an OM strategy/issue during the growth stage of the product life cycle?

reducing capacity

Which of the following is not an OM strategy/issue during the introduction stage of the product life cycle?

long production runs

Which of the following international operations strategies exploits economies?


Which of the following are not characteristics of high-return-on-investment firms?

high variety of product options

Which of the following international operations strategies involve has a high degree of centralization?


Which of the following methods best considers intangible costs related to a location decision?

factor-rating method

What is the major difference in focus between location decision in the service sector and in the manufacturing center?

the focus in service is revenue maximization, while the focus in manufacturing is cost minimization

Service/retail/professional location analysis typically has a

revenue focus

The factors involved in location decisions include all of the following except

foreign exchange, attitudes, labor productivity

Industrial location analysis typically has a

cost focus

Which of the following is not a factor in the country location decision?

zoning restrictions.

Which of the following is not a factor in the final site selection decision?

cultural issues

Which of the following methods is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas.


The transportation method

determines the best pattern of shipments from several points of supply to several points of demand.

management process

the application of planning, organizing, staffing, leading, and controlling, to the achievement of objectives

service sector

the segment of the economy that includes trade, financial, lodging, educational, legal, medical, and other professional occupations


the ratio of outputs (goods and services) divided by one or more inputs(such as labor, capital, or management)

productivity variables

the three factors critical to productivity improvement- labor, capital and the art and science of management

knowledge society

a society in which much of the labor force has migrated from manual work to work based on knowledge.


avoiding the placement of materials or supplies in storage by processing them as they are received for shipment


using warehouseing to add value to a product through component modification, repair, labeling and packaging

process-oriented layout

a layout the deals with low volume, high variety production in which like machines and equipment are grouped together

job lots

groups or batches of parts processed together

work cell

an arrangement of machines and personnel that focuses on making a single product or family of related products

takt time

pace of production to meet customer demands

focused work center

a permanent or semi permanent product-oriented arrangement of machines and personnel

focused factory

produce a product or component in a product oriented facility. a plant used to make seat belts or windows for cars


problem solving using procedures and rules rather than mathematical optimization

Assembly Line Balancing

the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements.

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