Chapter 10 - Test Bank PDF

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Business Essentials, Canadian Edition, 9e (Ebert) Chapter 10 Operations Management, Productivity, and Quality10 Multiple Choice Questions The term service operations refers to A) production activities that yield tangible products. B) production activities that yield tangible and intangible service p...

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Business Essentials, Canadian Edition, 9e (Ebert) Chapter 10 Operations Management, Productivity, and Quality 10.1 Multiple Choice Questions 1) The term service operations refers to A) production activities that yield tangible products. B) production activities that yield tangible and intangible service products. C) firms that make tangible products. D) service activities that yield intangible products. E) service activities that yield tangible products. Answer: B Diff: 1 Type: MC Page Ref: 214 Skill: Knowledge Objective: 10.1 2) Which of the following statements regarding production operations is correct? A) The first industrial revolution occurred in England in the 1800s and the second in China during the 1990s. B) The factory is no longer the centrepiece for manufacturing. C) The development of 3-D printing illustrates the third industrial revolution. D) Production operations remain environmentally unfriendly. E) All of these statements are true. Answer: C Diff: 3 Type: MC Page Ref: 215 Skill: Comprehension Objective: 10.1 3) The clerk at the 7-Eleven store and the morning radio announcer are examples of people who work in ________, while companies that make things like radios and automobiles are engaged in ________. A) minimum wage operations; maximum wage operations B) goods production; service operations C) service operations; goods production D) high-contact operations; low-contact operations E) none of these Answer: C Diff: 3 Type: MC Page Ref: 214 Skill: Comprehension Objective: 10.1

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4) Suppose that you have no clean clothes, but you have a job interview tomorrow. You normally never use any other type of laundry detergent other than your regular brand. You find that it is currently sold out at your local convenience store, so you decide to buy the store brand because it best satisfies your need for A) possession utility. B) place utility. C) time utility. D) interval utility. E) ownership utility. Answer: C Diff: 2 Type: MC Page Ref: 216 Skill: Comprehension Objective: 10.1 5) ________ utility deals with when a product is provided, whereas ________ utility deals with where a product is provided. A) Time; possession B) Place; time C) Time; place D) Form; time E) Ownership; form Answer: C Diff: 2 Type: MC Page Ref: 216 Skill: Comprehension Objective: 10.1 6) Which of the following is not a form of utility? A) Form utility B) Price utility C) Place utility D) Time utility E) Ownership utility Answer: B Diff: 2 Type: MC Page Ref: 216 Skill: Knowledge Objective: 10.1 7) When your favourite restaurant prepares your favourite meal, they are creating A) form utility. B) price utility. C) time utility. D) place utility. E) ownership utility. Answer: A Diff: 3 Type: MC Page Ref: 216 Skill: Comprehension Objective: 10.1 2 Copyright © 2020 Pearson Canada Inc.

8) The quality of a product that satisfies a human need during its consumption is known as A) ownership utility. B) place utility. C) need utility. D) form utility. E) time utility. Answer: A Diff: 2 Type: MC Page Ref: 216 Skill: Knowledge Objective: 10.1 9) In many parts of the world, public washrooms are available on a pay per use basis. What form of utility does this service maximize most to its users? A) Place utility B) Form utility C) Interval utility D) Time utility E) Ownership utility Answer: A Diff: 2 Type: MC Page Ref: 216 Skill: Comprehension Objective: 10.1 10) When steel is turned into a finished good like a car, ________ utility has been created. A) place B) time C) interval D) ownership E) form Answer: E Diff: 2 Type: MC Page Ref: 216 Skill: Comprehension Objective: 10.1 11) By accepting major credit cards, a retail outlet has created A) price utility. B) time utility. C) ownership utility. D) form utility. E) place utility. Answer: C Diff: 1 Type: MC Page Ref: 216 Skill: Comprehension Objective: 10.1

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12) When a company uses an intensive distribution strategy, it is facilitating ________ utility. A) ownership B) form C) place D) interval E) time Answer: C Diff: 1 Type: MC Page Ref: 216 Skill: Comprehension Objective: 10.1 13) By making a product that customers can take pride in having, production creates A) resale value utility. B) form utility. C) time utility. D) operational utility. E) ownership utility. Answer: E Diff: 1 Type: MC Page Ref: 216 Skill: Comprehension Objective: 10.1 14) Which of the following are unique aspects that separate services from goods? A) Intangibility and warranties B) High-contact and low-contact C) Time and place utility D) Intangibility and unstorability E) Form and time utility Answer: D Diff: 2 Type: MC Page Ref: 216-217 Skill: Comprehension Objective: 10.2 15) When comparing manufacturing and service operations, it is correct to say that A) only manufacturing operations transform raw materials into finished products. B) most service operations are pure service. C) service operations are more complex than goods production. D) quality considerations are defined and managed in a similar way in both the service sector and in manufacturing operations. E) all of these statements are correct. Answer: C Diff: 2 Type: MC Page Ref: 216-217 Skill: Comprehension Objective: 10.2

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16) One of the key differences between service and manufacturing operations is A) manufacturing products are characterized by intangibility and customization. B) manufacturing operations feature a unique link between process and outcome. C) manufacturing operations are less storable. D) services are performed, but goods are produced. E) services focus on the outcome of the production process. Answer: D Diff: 2 Type: MC Page Ref: 216-217 Skill: Comprehension Objective: 10.2 17) If an Air Canada flight from Toronto to Calgary has 20 empty seats, this illustrates the unique service characteristic of A) intangibility. B) unstorability. C) demand. D) customization. E) oversupply. Answer: B Diff: 2 Type: MC Page Ref: 216-217 Skill: Comprehension Objective: 10.2 18) Service products are characterized by three key qualities: A) intangibility, uncustomized, and unstorability. B) intangibility, customization, and unstorability. C) intangibility, customization, and storability. D) tangibility, customization, and storability. E) tangibility, uncustomized, and storability. Answer: B Diff: 2 Type: MC Page Ref: 216-217 Skill: Knowledge Objective: 10.2 19) You have gone to the doctor to check out some recent pains. The quality of her expertise to find and diagnose the problem is an illustration of the unique service characteristic of A) intangibility. B) warrantees. C) customization. D) perishability. E) past experience. Answer: A Diff: 2 Type: MC Page Ref: 216-217 Skill: Comprehension Objective: 10.2

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20) When you have your hair cut and styled the way you like it, it illustrates the unique service characteristic of A) unstorability. B) customization. C) past experience. D) intangibility. E) warranties. Answer: B Diff: 3 Type: MC Page Ref: 216-217 Skill: Comprehension Objective: 10.2 21) Of the following products/services, which is the most tangible? A) Child care B) A restaurant meal C) Car repair D) Clothing E) Dental work Answer: D Diff: 2 Type: MC Page Ref: 216-217 Skill: Comprehension Objective: 10.2 22) Tyson Foods reduces whole chickens into packaged parts through a(n) ________ process. A) chemical B) fabrication C) synthetic D) analytic E) assembly Answer: D Diff: 2 Type: MC Page Ref: 218 Skill: Comprehension Objective: 10.3 23) This transformation process alters the basic composition of raw materials and is used in industries like aluminum, steel, fertilizer, petroleum, and paint. It is the A) chemical process. B) fabrication process. C) transport process. D) clerical process. E) assembly process. Answer: A Diff: 2 Type: MC Page Ref: 217 Skill: Knowledge Objective: 10.3

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24) Which of the following transformation techniques mechanically alters the basic shape or form of the product? A) Chemical process B) Quality process C) Fabrication process D) Assembly process E) Transport process Answer: C Diff: 2 Type: MC Page Ref: 217 Skill: Knowledge Objective: 10.3 25) What kind of transformation occurs in an assembly process? A) Various components are transported from one location to another. B) Data are combined into useable information for a management report. C) Various components are put together to create a new product. D) Finished products are taken apart for inspection. E) Raw materials are mechanically altered. Answer: C Diff: 2 Type: MC Page Ref: 217 Skill: Knowledge Objective: 10.3 26) This transformation process involves goods being sent from manufacturing sites to consumers through warehouses to retail locations. It is the A) fabrication process. B) chemical process. C) clerical process. D) assembly process. E) transport process. Answer: E Diff: 1 Type: MC Page Ref: 217 Skill: Knowledge Objective: 10.3 27) This transformation process combines data on such items as employee absences, machine breakdowns, and inventory reports. It is the A) assembly process. B) fabrication process. C) chemical process. D) transport process. E) clerical process. Answer: E Diff: 2 Type: MC Page Ref: 217 Skill: Knowledge Objective: 10.3 7 Copyright © 2020 Pearson Canada Inc.

28) This transformation process puts together various components and is common in the electronics, appliance, and automotive industries. It is the A) clerical process. B) transport process. C) chemical process. D) fabrication process. E) assembly process. Answer: E Diff: 2 Type: MC Page Ref: 217 Skill: Knowledge Objective: 10.3 29) The production process which combines several raw materials into a new finished product (e.g., paint) is known as A) creating place utility. B) an analytic process. C) a transformation process. D) a synthetic process. E) creating time utility. Answer: D Diff: 2 Type: MC Page Ref: 217 Skill: Knowledge Objective: 10.3 30) How does an analytic production process work? A) It breaks down the basic resources into components. B) A cost analysis is made to determine the best way to ship the product to another location. C) It combines several raw materials into a finished product. D) It puts together several components. E) Raw materials are chemically altered. Answer: A Diff: 1 Type: MC Page Ref: 218 Skill: Comprehension Objective: 10.3 31) Lumber companies convert raw lumber into dimensional lumber and paper products through a(n) ________ process. A) synthetic B) fabrication C) assembly D) analytic E) chemical Answer: D Diff: 3 Type: MC Page Ref: 218 Skill: Comprehension Objective: 10.3 8 Copyright © 2020 Pearson Canada Inc.

32) In a(n) ________ system, the customer is an active participant, but in a(n) ________ system, the customer is not an active participant. A) low-contact; high-contact B) active; inactive C) high-contact; low-contact D) high-interaction; low-interaction E) low-interaction; high-interaction Answer: C Diff: 1 Type: MC Page Ref: 218 Skill: Knowledge Objective: 10.3 33) Which of the following would be considered a high-contact system? A) Gas company B) Electric company C) Lawn care company D) Barber shop E) Postal delivery Answer: D Diff: 1 Type: MC Page Ref: 218 Skill: Knowledge Objective: 10.3 34) Which of the following would be considered a low-contact service? A) Surgery B) Haircut C) Massage D) Electric power E) Piano lesson Answer: D Diff: 1 Type: MC Page Ref: 218 Skill: Knowledge Objective: 10.3 35) Carolyn's car needs a tune-up, so she has taken it to her favourite mechanic for repair. This type of service system is a ________ system. A) low-interaction B) passive C) high-interaction D) low-contact E) high-contact Answer: D Diff: 3 Type: MC Page Ref: 218 Skill: Comprehension Objective: 10.3

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36) Car repair is classified as a low-contact system because A) the customer must wait for the repair work to be done. B) the work that is done is highly technical and requires skilled technicians. C) the customer does not have to be present for the service to be performed. D) customer satisfaction is an important consideration in the provision of the service. E) the statement is in error; car repair is not a low-contact system. Answer: C Diff: 3 Type: MC Page Ref: 218 Skill: Comprehension Objective: 10.3 37) A public transit system is an example of a ________ process, while a cheque processing operation at a bank is a ________ process. A) fabrication; chemical B) transport; fabrication C) high-contact; low-contact D) low-contact; high-contact E) goods-producing; service-producing Answer: C Diff: 2 Type: MC Page Ref: 218 Skill: Comprehension Objective: 10.3 38) In terms of business strategy as a driver of operations, Toyota uses the ________ strategy, while 3M uses the ________ strategy. A) quality; dependability B) flexibility; dependability C) quality; flexibility D) lower price; quality E) lower price; flexibility Answer: C Diff: 2 Type: MC Page Ref: 219 Skill: Knowledge Objective: 10.3 39) Because FedEx emphasizes ________, its operations capabilities emphasize ________. A) quality; quality control procedures B) dependability; wireless information system to track packages C) low prices; cost control D) flexibility; excess production capacity E) dependability; quality control procedures Answer: B Diff: 2 Type: MC Page Ref: 219 Skill: Knowledge Objective: 10.3

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40) Because Toyota emphasizes ________, its operations capabilities emphasize ________. A) quality; automated equipment for consistent product buildup B) dependability; wireless information system to track packages C) quality; production capacity D) flexibility; excess production capacity E) dependability; quality control procedures Answer: A Diff: 2 Type: MC Page Ref: 219 Skill: Knowledge Objective: 10.3 41) In ________ systems, capacity should be set at the level of ________, while in ________ systems, capacity should be set at the level of ________. A) high-contact; peak demand; low-contact; average demand B) low-contact; peak demand; high-contact; average demand C) low-contact; peak demand; low-contact; average demand D) high-contact; average demand; high-contact; peak demand E) none of these Answer: A Diff: 3 Type: MC Page Ref: 218 Skill: Knowledge Objective: 10.4 42) The amount of a product that a company can produce under normal working conditions is its A) capability. B) scheduled capacity. C) scheduled capability. D) capacity. E) normal capacity. Answer: D Diff: 1 Type: MC Page Ref: 220 Skill: Knowledge Objective: 10.4 43) Most firms plan to be able to produce ________ product than is normally demanded. A) substantially more B) slightly less C) slightly more D) the same amount of E) substantially less Answer: C Diff: 1 Type: MC Page Ref: 220 Skill: Knowledge Objective: 10.4

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44) In low-contact systems, capacity should be set ________ the average level of demand, while in high-contact systems managers must plan to meet ________ demand. A) less than; peak B) more than; peak C) equal to; average D) equal to; peak E) less than; average Answer: D Diff: 2 Type: MC Page Ref: 218 Skill: Knowledge Objective: 10.4 45) In businesses like restaurants or supermarkets, the business is sized to meet a level of A) normal demand. B) low demand. C) peak demand. D) average demand. E) high demand. Answer: C Diff: 1 Type: MC Page Ref: 220 Skill: Knowledge Objective: 10.4 46) Meredith is creating an operations planning and control system for a manufacturer. What should she do first? A) Conduct production control B) Develop a long-range production plan C) Send output to customers D) Develop production schedules E) Review the company's business plan Answer: E Diff: 1 Type: MC Page Ref: 220 Skill: Application Objective: 10.4

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47) What is the most logical sequence of steps in a production planning and control system? A) Business plan, long-range operations plan, operations control, operations schedules, output to customers B) Operations control, operations schedules, output to customers, long-range operations plan, business plan C) Business plan, operations control, operations schedules, long-range operations plan, output to customers D) Business plan, long-range operations plan, operations schedules, operations control, output to customers E) Business plan, operations control, operations schedules, output to customers, long-range operations plan Answer: D Diff: 2 Type: MC Page Ref: 220 Skill: Knowledge Objective: 10.4 48) What is one reason why it is a bad idea for a company to have excess capacity? A) Wastes raw materials B) Increases customer dissatisfaction C) Ties up money in extra machines D) Decreases form utility E) Slows delivery of product Answer: C Diff: 2 Type: MC Page Ref: 220 Skill: Comprehension Objective: 10.4 49) The number of customers that Bob's Barbecue serves varies considerably from hour to hour. In determining the number of cash registers to install, they should use A) average demand. B) peak demand. C) low demand. D) high demand. E) normal demand. Answer: B Diff: 2 Type: MC Page Ref: 220 Skill: Comprehension Objective: 10.4

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50) The most important factor in location planning for high-contact businesses is ________, but for low-contact business the most important factor in location planning is ________. A) availability of labour; proximity to customers B) proximity to customers; community living conditions C) community living conditions; transportation costs D) transportation costs; proximity to resource supplies E) proximity to customers; proximity to resource supplies Answer: E Diff: 3 Type: MC Page Ref: 220 Skill: Knowledge Objective: 10.4 51) In a(n) ________ layout, equipment and people are grouped together according to their function. A) assembly line B) process C) product D) customer-oriented E) flexible Answer: B Diff: 1 Type: MC Page Ref: 220 Skill: Knowledge Objective: 10.4 52) Thousands of empty jugs move down a conveyor belt at a factory before stopping to be filled and moving on to be labeled. What type of layout is utilized? A) Supply chain B) Custom products C) Hybrid D) Fixed position E) Same steps Answer: E Diff: 1 Type: MC Page Ref: 221 Skill: Knowledge Objective: 10.4 53) In a process layout, A) a single factory uses automation to produce a wide variety of products. B) equipment and people are grouped according to function. C) a service is analyzed by showing the flow of processes that constitute it. D) production activities are designed to make one type of product in a fixed sequence. E) production facilities are designed to move families of products through similar flow paths. Answer: E Diff: 2 Type: MC Page Ref: 220 Skill: Knowledge Objective: 10.4 14 Copyright © 2020 Pearson Canada Inc.

54) A product layout is A) a spatial arrangement of production activities designed to make one type of product in a fixed sequence. B) a spatial arrangement of production activities that groups equipment and people according to function. C) a method for analyzing a service by showing the flow of processes that constitutes it. D) a spatial arrangement of production facilities designed to move families of products through similar flow paths. E) a production system in which a single factory uses automation to produce a wide variety of products. Answer: A Diff: 3 Type: MC Page Ref: 221 Skill: Knowledge Objective: 10.4 55) A fixed position layout A) is generally superior to a same-steps layout. B) is used when the product remains in one place and the necessary equipment is moved to that place. C) is used when the service must come to the customer, not the other way around. D) can be used only in the manufacturing of physical products. E) All of these are correct. Answer: B Diff: 3 Type: MC Page Ref: 221 Skill: Knowledge Objective: 10.4 56) The layout that simplifies work tasks and uses unskilled labour is the ________ layout. A) customer B) process C) product D) quality control E...