112 test bank for operations management 11th edition heizer

A A firm produces its product with less raw material waste than its competitors do.. B A firm offers more reliable products than its competitors do?. A firm can effectively use its opera

Test Bank for Operations Management 11th Edition Heizer

Multiple Choice Questions - Page 1

The fundamental purpose of an organization's mission

statement is to:

1. A) create a good human relations climate in the organization

2 B) define the organization's purpose in society

3 C) define the operational structure of the organization

4 D) generate good public relations for the organization

5 E) define the functional areas required by the organization

Which of the following is true of maquiladoras?

1. A) They discourage foreign businesses from outsourcing

2 B) They assess tariffs only on the value-added work done

3 C) They originated in China

4 D) None of the above

5 E) All of the above

Which of the following is an example of competing on quick response?

1. A) A firm produces its product with less raw material waste than its competitors do

2 B) A firm offers more reliable products than its competitors do

3 C) A firm's products are introduced into the market faster than its competitors' products

4 D) A firm utilizes its capacity more effectively than its competitors do

5 E) A firm advertises more than its competitors do

Which of the following is an example of competing on the basis of differentiation?

1. A) A firm manufactures its product with less raw material waste than its

competitors do

2 B) A firm's products are introduced into the market faster than its competitors' products are

3 C) A firm's distribution network routinely delivers its product on time.

4 D) A firm offers more reliable products than its competitors do

5 E) A firm advertises more than its competitors do

With reference to cultural and ethical issues, the World

Trade Organization has:

1. A) eliminated bribery

2 B) made progress in providing equal protection of intellectual property among nations

3 C) phased out all trade and tariff barriers between the United States and Mexico

4 D) eliminated slave labor and child labor

5 E) played little role in addressing cultural and ethical issues among nations

Which of the following does NOT represent a valid reason for globalizing operations?

Which of the following is LEAST likely to be a low-cost

leadership competitive advantage?

5 E) experience differentiation.

Which of the following statements best characterizes

delivery reliability?

1. A) a company that always delivers on the same day of the week

2 B) a company that always delivers at the promised time

3 C) a company that delivers more frequently than its competitors

4 D) a company that delivers faster than its competitors

5 E) a company that has a computerized delivery scheduling system

Which of the following best describes experience

differentiation?

1. A) immerses consumers in the delivery of a service

2 B) uses people's five senses to enhance the service

3 C) complements physical elements with visual and sound elements

4 D) consumers may become active participants in the product or service

5 E) All of the above are elements of experience differentiation

A firm can effectively use its operations function to yield competitive advantage through all of the following EXCEPT:

1. A) customization of the product

2 B) setting equipment utilization goals below the industry average

3 C) speed of delivery

4 D) constant innovation of new products

5 E) maintaining a variety of product options

The term maquiladora is most synonymous with:

1. A) free trade zones in Mexico

2 B) Chinese forced labor camps

3 C) home-based or cottage industry

4 D) areas that do not meet U.S standards for workplace safety and pollution

5 E) tax breaks provided by some South American countries to other South

American countries

Which of the following statements about organizational

missions is FALSE?

1. A) They reflect a company's purpose

2 B) They indicate what a company intends to contribute to society

3 C) They are formulated after strategies are known

4 D) They define a company's reason for existence

5 E) They provide guidance for functional area missions

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is:

1. A) lower taxes and tariffs

2 B) lower wage scales

3 C) lower indirect costs

4 D) less stringent regulations

5 E) all of the above

Which of the following is the best example of competing on low-cost leadership?

1. A) A firm produces its product with less raw material waste than its competitors do

2 B) A firm offers more reliable products than its competitors do

3 C) A firm's products are introduced into the market faster than its competitors' products are

4 D) A firm's research and development department generates many ideas for new products

5 E) A firm advertises more than its competitors do

According to the authors, which of the following strategic concepts allow firms to achieve their missions?

1. A) productivity, efficiency, and quality leadership

2 B) differentiation, cost leadership, and response

3 C) differentiation, quality leadership, and response

4 D) distinctive competency, cost leadership, and experience

5 E) differentiation, distinctive competency, quality leadership, and capacity

Which of the following did the authors NOT suggest as a reason for globalizing operations?

1. A) reduce costs

2 B) improve the supply chain

3 C) pursue stockholder approval ratings

4 D) understand markets

5 E) attract and retain global talent

Boeing's new 787 Dreamliner:

1. A) is assembled in Washington, D.C

2 B) uses engines from Japan

3 C) has its fuselage sections built in Australia

4 D) has increased efficiency from new engine technology

5 E) results from a partnership of about a dozen companies

Multinational organizations can shop from country to country and cut costs through:

1. A) lower wage scales

2 B) lower indirect costs

3 C) less stringent regulations

4 D) lower taxes and tariffs

5 E) all of the above

Experience differentiation:

1. A) isolates the consumer from the delivery of a service

2 B) is an extension of product differentiation in the service sector

3 C) uses only the consumer's senses of vision and sound

4 D) keeps consumers from becoming active participants in the service

5 E) attempts to make the service experience different for every single customer.

Which of the following activities takes place most

immediately once the mission has been developed?

1. A) The firm develops alternative or back-up missions in case the original mission fails

2 B) The functional areas develop their functional area strategies

3 C) The functional areas develop their supporting missions

4 D) The ten OM decision areas are prioritized

5 E) Operational tactics are developed

Which of the following statements is true?

1. A) Corporate mission is shaped by functional strategies

2 B) Corporate strategy is shaped by functional strategies

3 C) Functional strategies are shaped by corporate strategy

4 D) External conditions are shaped by corporate mission

5 E) Functional area missions are merged to become the organizational mission

Franz Colruyt has achieved low-cost leadership through:

1. A) effective use of voice mail

2 B) plastic, not paper, shopping bags

3 C) background music that subtly encourages shoppers to buy more

4 D) converting factories, garages, and theaters into retail outlets

5 E) exclusive use of the Euro

A strategy is a(n):

1. A) set of opportunities in the marketplace

2 B) broad statement of purpose

3 C) simulation used to test various product line options

4 D) plan for cost reduction

5 E) action plan to achieve the mission

Which of the following represents a reason for globalizing operations?

1. A) to improve the supply chain

2 B) to improve operations

3 C) to expand a product's life cycle

4 D) to attract and retain global talent

5 E) all of the above

The purpose of NAFTA is to:

1. A) substitute cheap labor in Mexico for expensive labor in the United States

2 B) curb illegal immigration from Mexico to the United States

3 C) phase out all trade and tariff barriers between North America and South America

4 D) phase out all trade and tariff barriers between the United States, Canada, and Mexico

5 E) provide fair and equitable tariff rates for trade between the United States, Canada, and Mexico

Which of the following statements regarding the Dreamliner

787 is true?

1. A) Boeing has found partners in over a dozen countries

2 B) The new aircraft incorporates a wide range of aerospace technologies

3 C) The new aircraft uses engines from not one, but two manufacturers

4 D) Boeing will add only 20 to 30 percent of the aircraft's value

5 E) All of the above are true

57 Free Test Bank for Operations Management 11th Edition Heizer Multiple Choice Questions - Page 2

Response-based competitive advantage can be:

1. A) flexible response

2 B) reliable response

3 C) quick response

4 D) all of the above

5 E) none of the above

Which of the following OM strategy/issues should a firm with

a product in the maturity stage of its life cycle be LEAST concerned with at the present time?

1. A) increase capacity

2 B) long production runs

3 C) standardization

4 D) cost cutting

5 E) fewer rapid product changes

Which of the international operations strategies involves low cost reductions and low local responsiveness?

Standardization is an appropriate strategy in which stage of the product life cycle?

1. A) financial

2 B) physical

3 C) human

4 D) technological

5 E) all of the above

Porter's Five Forces Model contains which of the following?

1. A) immediate rivals

2 B) potential entrants

3 C) customers

4 D) suppliers

5 E) all of the above

Given the position of the 3D printer in the growth stage of its life cycle, which of the following OM Strategy/Issues should the makers of 3D printers be least concerned with at the current time?

Which of the following is not an advantage of outsourcing?

1. A) cost savings

2 B) gaining outside expertise

3 C) improving operations and service

4 D) outsourcing core competencies

5 E) accessing outside technology

Advantages of outsourcing do NOT include:

1. A) cost savings

2 B) gaining outside expertise

3 C) maintaining a focus on core competencies

4 D) accessing outside technology

5 E) potential creation of future competition

What theory implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can?

1. A) theory of competitive advantage

2 B) theory of core competencies

3 C) theory of comparative advantage

4 D) theory of outsourcing

5 E) theory of offshoring

Caterpillar and Texas Instruments are two firms that have benefited from the use of:

1. A) the multidomestic strategy option

2 B) the international strategy option

3 C) the transnational strategy option

4 D) the maquiladora system in Europe

5 E) the global strategy option

Which of the following statements is most accurate?

1. A) Nearly all outsourcing relationships do not last beyond two years

2 B) Nearly all U.S firms that outsourced processes to India have backsourced them

3 C) Approximately half of all outsourcing agreements fail

4 D) Outsourcing is a relatively risk-free activity.

5 E) More than 90% of outsourcing agreements succeed

Porter's Five Forces Model is used to evaluate competition based on which 5 aspects?

1. A) research and development, cost, legal regulations, suppliers, customers

2 B) immediate rivals, potential entrants, customers, suppliers, and substitute products

3 C) potential entrants, customers, suppliers, legal regulations, and cost

4 D) immediate rivals, potential entrants, cost, substitute products, and legal regulations

5 E) cost, legal regulations, advertising effectiveness, potential entrants, and immediate rivals

Which of the international operations strategies uses import/ export or licensing of existing products?

Which of the following statements is most correct?

1. A) KSFs are often necessary, but not sufficient for competitive advantage

2 B) KSFs are often sufficient, but not necessary for competitive advantage

3 C) KSFs are neither necessary nor sufficient for competitive advantage

4 D) KSFs are both necessary and sufficient for competitive advantage

5 E) None of the above statements is correct

The acronym MNC stands for

1. A) Mexican National Committee (for international trade)

2 B) Maquiladora Negates Competition

3 C) Maytag-Nestlé Corporation

4 D) Multinational Corporation

5 E) Maritime Navigation Company

Which of the international operations strategies uses the existing domestic model globally?

Value-chain analysis can be used to determine if a business

is adding unique value in which of the following areas?

1. A) product research

2 B) human resources

3 C) process innovation

4 D) quality management

5 E) all of the above

An SWOT analysis determines:

1. A) internal strengths and weaknesses and internal opportunities and threats

2 B) internal strengths and weaknesses and external opportunities and threats

3 C) external strengths and weaknesses and internal opportunities and threats

4 D) external strengths and weaknesses and external opportunities and threats

5 E) internal strengths and opportunities and external weaknesses and threats

Cost minimization is an appropriate strategy in which stage

of the product life cycle?

Which of the following environmental factors has not

contributed to Microsoft's changing strategy?

1. A) Google

2 B) security issues

3 C) faster processors

4 D) the Internet

5 E) global warming

True - False Questions

SWOT analysis is a method of determining external

strengths and weaknesses and internal opportunities and threats

1. True

2 False

The World Trade Organization helps provide governments and industries around the world with protection from firms that engage in unethical conduct

1. True

2 False

Key success factors are those activities that are key to

achieving competitive advantage

One reason for global operations is to gain improvements in the supply chain

1. True

2 False

Outsourcing is the practice of moving a business process to

a foreign country but retaining control of it

1. True

2 False

The theory of comparative advantage implies that you

should allow another firm to perform work activities for your company if that company can do it more productively than you can

The multidomestic OM strategy maximizes local

responsiveness while achieving a significant cost

advantage

1. True

2 False

Firms using the global strategy can be thought of as "world companies."

1. True

2 False

Production processes are being dispersed to take advantage

of national differences in labor costs

A multinational corporation is a firm with extensive

international business involvement

1. True

2 False

Boeing's development of the 787 Dreamliner is an example

of a company obtaining a competitive advantage through product differentiation/innovation

1. True