Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
Chapter 15: Operations, Quality, and Productivity
Test Bank
Multiple Choice
1. The function concerned with transforming resource inputs into product outputs
is ______.
a. operations
b. production
c. assembly
d. development
2. A(n) ______ is a good, a service, or a combination of the two.
a. item
b. product
c. object
d. output
3. All of the following are examples of a tangible product, EXCEPT ______.
a. a car
b. a computer
c. a textbook
d. legal advice
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
4. A(n) ______ is an intangible product.
a. appliance
b. car
c. haircut
d. television
5. The level of ______ refers to the amount of input from customers, which
determines whether operations are make to stock, assemble to order, or make to
order.
a. operations flexibility
b. customer involvement
c. automation
d. product variation
6. ______ refers to the amount of variety in the products an operation produces,
which determines whether the products are produced continuously, repetitively,
in batches, or individually.
a. Customer involvement
b. Product variation
c. Operations flexibility
d. Automation
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
7. Flexibility within operations is based on product ______ and ______.
a. volume; type
b. type; variety
c. classification; variety
d. volume; variety
8. The process used to transform inputs into outputs is ______.
a. technology
b. assembly
c. design
d. development
9. Due to the lower cost of ______ in developing economies, many firms have
their products manufactured overseas.
a. technology
b. equipment
c. labor
d. shipping
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
10. Operations types determined by levels of customer involvement do not
include ______.
a. make-to-stock operations
b. assemble-to-stock operations
c. make-to-order operations
d. assemble-to-order operations
11. Major appliance retail stores such as Sears sell appliances and also offer
extended warranties and service what they sell. This is an example of ______.
a. intangible products
b. tangible products
c. mixed products
d. semitangible products
12. Juanita has set up a new bakery that produces different outputs such as
cookies, cakes, and brownies while using common ingredients and tools. The
type of operation system Juanita is using is ______.
a. continuous process operations
b. repetitive process operations
c. batch process operations
d. project process operations
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
13. Harlyn paints portraits by commission. Each customer who calls her wants a
unique work of art and has specific demands regarding the painting. Harlyn
completes all of the paintings in her studio, either while the subject poses or from
photographs she takes before she begins. The type of operation system Harlyn is
using is ______.
a. continuous process operations
b. individual process operations
c. batch process operations
d. repetitive process operations
14. The Smith General Contracting Company commonly completes projects by
sending their resources to the customer’s site rather than to their own facilities.
This is a(n) ______ operation system.
a. individual process
b. project process
c. continuous process
d. repetitive process
15. Micah manages a manufacturing facility that is almost entirely automated. His
only employees monitor the operation of the machines and ensure they are
properly maintained while the machines do the actual work. The operations of
Micha’s facility would be categorized as ______.
a. mechanically intensive
b. automation-intensive
c. capital-intensive
d. robotics-intensive
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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16. Shay owns an insurance agency that employs ten agents. The agents do all
of the work prospecting new clients, identifying their insurance needs, selling
them the appropriate policies, and providing ongoing service after the policies are
issued. In terms of intensity, the operations of Shay’s agency would be
categorized as ______.
a. organically intensive
b. human-intensive
c. people-intensive
d. labor-intensive
17. Wayne and Ichiro are discussing Ichiro’s plans for his new baseball specialty
sporting goods store. They are discussing how many product lines to feature in
the store, how many products Ichiro should offer within each line, and the mixture
of goods within each line. Wayne and Ichiro are discussing the ______ for the
store.
a. product mix
b. product design
c. product assortment
d. product selection
18. ______ refers to new or improved product development.
a. Product mix
b. Product design
c. Product assortment
d. Product selection
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
19. ______ refers to the use of strategies to increase the speed with which an
organization goes from creativity to delivery.
a. Pace-based competition
b. Efficiency competition
c. Innovative competition
d. Time-based competition
20. The time required for an organization to go from creativity to delivery is called
______.
a. total time
b. throughput time
c. processing time
d. turnout time
21. In terms of being first to market, many companies are now differentiating
between ______ speed and ______ speed.
a. development; launching
b. processing; shipping
c. marketing; selling
d. stocking; re-stocking
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
22. “Quality is a virtue of design” means that if products are well designed, all of
the following will be true, EXCEPT ______.
a. there will be fewer operations problems
b. the product will be easier to sell
c. the design process will be shorter
d. servicing the product will be less costly
23. Macy’s and other similar retail stores use a ______ layout.
a. process
b. fixed-position
c. cellular
d. product
24. All of the following are part of facilities, EXCEPT ______.
a. buildings
b. products
c. machines
d. furniture
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
25. Which facility layout is associated with a set assembly line manufacturing?
a. cellular
b. process
c. fixed-position
d. product
26. You have decided to open a fast-food restaurant. Which facility layout would
be most efficient for you to use in the new restaurant’s kitchen?
a. cellular
b. product
c. fixed-position
d. process
27. Chen’s Floor Cleaners goes house to house to perform their floor cleaning
services. What facility layout does this business use?
a. process
b. product
c. fixed-position
d. cellular
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
28. Which of the following is NOT a type of facility layout?
a. product
b. process
c. organic
d. fixed-position
29. ______ must be determined based on the classification of the operations
system and the organization’s product mix, layout requirements, and capacity
planning.
a. Facility routing
b. Facility capacity
c. Facility layout
d. Facility location
30. A ______ refers to the spatial arrangement of physical resources relative to
each other.
a. facility location
b. facility layout
c. facility capacity
d. facility design
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
31. Michaela would like to arrange her new office in such a way that everything
she will need is placed around her so that she can get to them easily. Michaela
should consider a ______ layout for her office.
a. process
b. product
c. cellular
d. fixed-position
32. Which layout describes a situation where you have to go to the customer to
do the work?
a. product
b. cellular
c. process
d. fixed-position
33. The critical path in a PERT network is important to know because it
determines the ______ needed to complete a project.
a. length of time
b. amount of money
c. number of employees
d. number of activities
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Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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34. Which of the following is NOT one of the planning questions answered by
scheduling?
a. When, how, and where will the products be produced?
b. How much will it cost to produce each product?
c. How many of each product will be produced?
d. Which employees will make which products?
35. All of the following are priority scheduling methods, EXCEPT ______.
a. last in–first out
b. first come–first served
c. earliest due date
d. shortest operating time
36. When Emma has several assignments she has to work on for her classes,
she always works first on the assignment that has to be turned in soonest. This is
an example of which priority scheduling method?
a. last in–first out
b. first come–first served
c. earliest due date
d. shortest operating time
37. When Leo has several assignments he has to work on for his classes, he
always works first on the assignment that will take the take the least time to
complete. This is an example of which priority scheduling method?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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a. last in–first out
b. first come–first served
c. earliest due date
d. shortest operating time
38. When Cyril has several assignments he has to work on for his classes, he
always works on each assignment in the order it was received. For instance, if he
received an assignment to write a paper on Monday and an assignment to
research stock prices on Tuesday, he will work on the paper first and not start the
stock research until the paper is done. This is an example of which priority
scheduling method?
a. last in–first out
b. first come–first served
c. earliest due date
d. shortest operating time
39. ______ and ______ are useful tools when the activities follow each other in a
dependent series.
a. Balanced scorecards; PERT technique
b. Gantt charts; PERT technique
c. Planning sheets; Gantt charts
d. Gantt charts; balanced scorecard
40. The critical path is the most ______ series of activities in a PERT network.
a. time-consuming
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
b. important
c. expensive
d. difficult
41. ______ is the continuing evaluation and reordering of the sequence in which
products will be produced.
a. Priority scheduling
b. Time flow mapping
c. Critical scheduling
d. Process routing
42. ______ is/are a network scheduling technique that illustrate(s) the
dependence of activities.
a. Priority scheduling
b. PERT
c. Gantt charts
d. Planning sheets
43. ______ is the path and sequence of the transformation of a product into an
output.
a. Critical path
b. Systems process
c. Facility layout
d. Routing
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
44. Alex and Allison have been assigned the task of sending out marketing
letters to all of the company’s clients. What would be the best scheduling
technique to use if they want to plan out who is in charge of specific activities and
their deadlines?
a. Gantt chart
b. priority scheduling
c. planning sheet
d. PERT diagram
45. ______ is the process of listing activities that must be performed to
accomplish an objective.
a. Planning
b. Scheduling
c. Prioritizing
d. Managing
46. ______ and ______ are commonly used to develop procedures for routine
standing plans, whereas ______ is/are commonly used for single-use program
plans for a complex project with dependent activities.
a. Planning sheets; Gantt charts; PERT
b. PERT; planning sheets; Gantt charts
c. PERT; priority scheduling; planning sheets
d. Gantt charts, PERT; planning sheets
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
47. Inventory control is also called ______.
a. resources control
b. supplies control
c. backstock control
d. materials control
48. Who invented Six Sigma in 1987?
a. Motorola
b. General Electric
c. W. Edwards Deming
d. International Standards Organization
49. An egg that is being cooked or a car on the assembly line are examples of
which of the following?
a. finished goods
b. raw materials
c. work in process
d. in-transit goods
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
17
50. Sheet aluminum has been delivered to a factory that makes beverage cans.
To the factory that makes the cans, the aluminum is an example of ______.
a. finished goods
b. raw materials
c. work in process
d. in-transit goods
51. Retail inventory control is concerned almost exclusively with ______ for
resale.
a. finished goods
b. raw materials
c. work in process
d. in-transit goods
52. ______ is the process of coordinating all the activities involved in producing a
product and delivering it to the customer.
a. Inventory control
b. Quality control
c. Supply chain management
d. Total quality management
53. Giorgi is frustrated with the estimates he’s received for building an IT portal
for his company to allow his suppliers, distributors, and customers to all easily
connect online. Since he needs a system that is reliable and responsive to
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
18
sudden changes in the market, he has decided to go with a cloud-based system
run by another company that has the expertise his company lacks. The company
he chose is an example of a(n) ______.
a. internet commerce intermediary
b. command and control center
c. supply chain source point
d. third-party logistics provider
54. ______ are input materials that have been received but have not yet been
transformed in any way by the operations department.
a. Preproduction stock
b. Raw materials
c. Inventory
d. Supplies
55. ______ is a system that integrates operations and inventory control with
complex ordering and scheduling.
a. Materials requirement planning
b. Just-in-time inventory
c. Economic order quantity
d. Enterprise resource planning
56. At Toyota, factories rely on suppliers to get the needed raw materials and
parts to the factory floor shortly before they are needed during the production
process. What type of inventory control is Toyota practicing?