Production Management

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1. A nation's ability to compete with other nations impacts a business' strategy in the area of: A) Marketing
B) Finance
C) Operations
D) Distribution
E) All of the above

2. Competitiveness doesn’t include:
A) Productivity
B) Effectiveness
C) Profitability
D) Operations Strategy
E) Operations Management

3. Cost cutting in international operations can take place because of A) lower taxes and tariffs
B) lower wage scales
C) lower indirect costs
D) less stringent regulations
E) all of the above

4. Operations management involves continuous decision-making; hopefully most decisions made will be: A) redundant
B) minor in nature
C) smart
D) quantitative
E) none of the above

5. A 'product package' consists of:
A) the exterior wrapping
B) the shipping container
C) a combination of goods and services
D) goods if a manufacturing organization
E) customer relations if a service organization

6. Multinational organizations can shop from country to country and cut costs through A) lower wage scales
B) lower indirect costs
C) less stringent regulations
D) lower taxes and tariffs
E) all of the above

7. Product design and choice of location are examples of _______ decisions. A) strategic
B) tactical
C) operational
D) customer focused
E) design

8. Scheduling personnel is an example of an operations management: A) mission implementation
B) operational decision
C) organizational strategy
D) functional strategy
E) tactical decision

9. Productivity is expressed as:
A) output plus input
B) output minus input
C) output times input
D) output divided by input
E) input divided by output

10. Which of the following is true about business strategies? A) An organization should stick with its strategy for the life of the business. B) All firms within an industry will adopt the same strategy. C) Well defined missions make strategy development much easier. D) Strategies are formulated independently of SWOT analysis. E) Organizational strategies depend on operations strategies.

11. Which of the following activities takes place most immediately once the mission has been developed? A) The firm develops alternative or back-up missions in case the original mission fails. B) The functional areas develop their functional area strategies. C) The functional areas develop their supporting missions.

D) The ten OM decision areas are prioritized.
E) Operational tactics are developed.

12. What term describes how an organization expects to achieve its missions and goals? A) conditional expectation
B) tactic
D) strategy
E) competitive advantage

13. Which of the following is not a key step toward improving productivity? A) developing productivity measures for all operations
B) improving the bottleneck operations
C) establishing reasonable goals for improvement
D) considering incentives to reward workers
E) converting bond debt to stock ownership

14. The fundamental purpose of an organization's mission statement is to A) create a good human relations climate in the organization B) define the organization's purpose in society
C) define the operational structure of the organization
D) generate good public relations for the organization
E) define the functional areas required by the organization

15. The ratio of good output to quantity of raw material input is called A) non-defective productivity
B) process yield
C) worker quality measurement
D) total quality productivity
E) quantity/quality ratio

16. Time-based approaches of business organizations focus on reducing the time to accomplish certain necessary activities. Time reductions seldom apply to: A) product/service design time
B) processing time
C) delivery time
D) response time for complaints
E) internal audits

17. Business organizations consist of three major functions which: A) overlap
B) are mutually exclusive
C) exist independently of each other
D) function independently of each other
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