Operations Management Midterm Exam Far Eastern University MANAGEMENT OPERATION

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OPERATIONS MANAGEMENT WITH TQM MIDTERM EXAMINATION Multiple Choice. On a separate sheet, type your answer only. 1. The management of systems or processes that create goods and/or provide services. ... a. Operations management b. Supply chain c. Value-added d. Degree of customer contact 2. A sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service a. Operations management b. Supply chain c. Value-added d. Degree of customer contact 3. The difference between the cost of inputs and the value or price of outputs. a. Operations management b. Supply chain c. Value-added d. Degree of customer contact 4. Many services involve a high degree of customer contact, although services such as Internet providers, utilities, and mail service do not. When there is a high degree of contact, the interaction between server and customer becomes a “moment of truth” that will be judged by the customer every time the service occurs. a. Operations management b. Supply chain c. Value-added d. Degree of customer contact 5. Services often have a higher degree of labor content than manufacturing jobs do, although automated services are an exception. a. Uniformity of inputs b. Measurement of Productivity c. Quality Assurance d. Inventory 6. Service operations are often subject to a higher degree of variability of inputs. Each client, patient, customer, repair job, and so on presents a somewhat unique situation that requires assessment and flexibility. Conversely, manufacturing operations often have a greater ability to control the variability of inputs, which leads to more-uniform job requirements. a. Uniformity of inputs b. Measurement of Productivity c. Quality Assurance d. Inventory 7. Measurement of productivity can be more difficult for service jobs due largely to the high variations of inputs. Thus, one doctor might have a higher level of routine cases to deal with, while another might have more difficult cases. Unless a careful analysis is conducted, it may appear that the doctor with the difficult cases has a much lower productivity than the one with the routine cases. a. Uniformity of inputs b. Measurement of Productivity c. Quality Assurance d. Inventory 8. Quality assurance is usually more challenging for services due to the higher variation in input, and because delivery and consumption occur at the same time. Unlike manufacturing, which typically occurs away from the customer and allows mistakes that are identified to be corrected, services have less opportunity to avoid exposing the customer to mistakes. a. Uniformity of inputs b. Measurement of Productivity c. Quality Assurance d. Inventory 9. Many services tend to involve less use of inventory than manufacturing operations, so the costs of having inventory on hand are lower than they are for manufacturing. However, unlike manufactured goods, services cannot be stored. Instead, they must be provided “on demand.” a. Uniformity of inputs b. Measurement of Productivity c. Quality Assurance d. Inventory 10. Manufacturing jobs are often well paid, and have less wage variation than service jobs, which can range from highly paid professional services to minimum-wage workers. a. Wages b. Ability to patent c. Budgeting d. Economic analysis of investment proposals 11. Product designs are often easier to patent than service designs, and some services cannot be patented, making them easier for competitors to copy. a. Wages b. Ability to patent c. Budgeting d. Economic analysis of investment proposals [Show More]

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