Om4 Cahpter 1 Study Guide

Topics: Management, Service, Service system Pages: 20 (3641 words) Published: August 15, 2013
Chapter 1—Goods, Services, and Operations Management

TRUE/FALSE

1.Operations management is focused primarily on the application of technology in manufacturing.

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2.To apply the principles of operations management, managers need to understand people, processes, and technology.

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3.Every job entails some aspect of operations management.

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4.Employees who work in financial and accounting functions of organizations need little knowledge of operations management.

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5.Ensuring that a credit card has accurate customer information and is delivered quickly to the customer is an example of inventory management in OM.

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6.A product that typically lasts at least three years is called a durable good.

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7.A toothbrush is an example of a nondurable good.

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8.Both goods and services can be standardized for the mass market or customized to individual needs.

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9.Customer participation in manufacturing processes and activities is generally high.

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10.Customers and service providers often work together to co-produce a service.

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11.Services always involve direct customer contact.

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12.Moments of truth consist of one or more service encounters.

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13.A service encounter is any interaction between a customer and the service provider.

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14.The demand for services is usually easier to predict than the demand for goods.

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15.Service facilities must be physically located close to the customer.

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16.The greater the customer participation, the more uncertainty the firm has with respect to service time.

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17.A customer benefit package (CBP) consists of both a primary good and a primary service.

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18.The ability to download music onto a cell phone would be considered a primary service.

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19.Peripheral goods and services are not essential to a primary good or service.

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20.Many products that appear to be only physical goods often include bundled services.

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21.Process thinking is the traditional way of viewing an organization by function.

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22.Value creation processes focus on primary goods and services.

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23.A process can be designed by operations managers independently of the choice of a customer benefit package, which is chosen exclusively by marketing staff.

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24.Taking a customer order at a quick service restaurant would generally be viewed as a support process.

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25.Quality has been a principal focus of operations management since the industrial revolution.

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26.The reason that many Japanese firms captured major shares of world markets in the 1970s was the result of their focus on quality rather than efficiency.

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27.As manufacturers sought to customize products for global markets and increase goods and service variety, they were able to leverage the mass production methods that are very efficient and cost-effective.

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28.Today, almost half the U.S. economy is involved in service industries.

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29.Many business-to-business manufacturers think of the physical good they produce as peripheral to their service offerings.

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30.Time-based competition means providing new and innovative products that surprise and delight customers.

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31.Operations management is the only function by which managers can directly affect the value provided to all stakeholders – customers, employees, investors, and society.

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MULTIPLE CHOICE

1.Which one of the following statements is false?
|a. |Service encounters can be between a customer and a building....
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