145 test bank for operations management flexible version 10th edition heizer

A Corporate mission is shaped by functional strategies1. B Corporate strategy is shaped by functional strategies.. C Functional strategies are shaped by corporate strategy.. 68 Free Test

Test Bank for Operations Management Flexible

Version 10th Edition Heizer

Multiple Choice Questions - Page 1

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 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

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

With reference to cultural and ethical issues, the World

Trade Organization has

1. A) succeeded in providing equal protection of intellectual property among nations

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

The impact of strategies on the general direction and basic character of a company is

Examples of response to the global environment include

1. A) Boeing's worldwide sales and production

2 B) Benneton's flexibility in design, production, and distribution

3 C) a Chinese manufacturer, Haier, opening plants in the United States

4 D) Ford's partnerships with Volvo and Mazda

5 E) all of the above

and are to differentiation

competitive advantages as and are

to response competitive advantages (*See figure 2.4a in the textbook)

1. A) Human Resources, layout; scheduling, maintenance

2 B) Product, quality; location, process

3 C) Quality, maintenance; inventory, scheduling

4 D) Product, supply chain; layout, quality

5 E) Product, quality; maintenance, scheduling

Cost cutting in international operations can take place

because of

1. A) lower taxes and tariffs

2 B) lower wage scales

3 C) lower indirect labor costs

4 D) less stringent regulations

5 E) all of the above

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) stockholder approval ratings

4 D) attract new markets

5 E) None of the above were suggested

Which of the following activities takes place 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

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

Which of the following is true about business strategies?

1. A) An organization should stick with its strategy for the life of the business

2 B) All firms within an industry will adopt the same strategy

3 C) Well defined missions make strategy development much easier

4 D) Strategies are formulated independently of SWOT analysis

5 E) Organizational strategies depend on operations strategies

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 is an example of globalization of operations strategy?

1. A) Boeing's Dreamliner has engines with higher fuel/payload efficiency

2 B) Ford's new auto models have dent-resistant panels

3 C) A Chinese manufacturer, Haier, now operates plants in the United States

4 D) Hard Rock Café provides an "experience differentiation" at its restaurants

5 E) All of the above are examples

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

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) none of the above

Which of the following has made the least progress along its product life cycle?

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

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 quick response

3 C) differentiation, quality leadership, and quick response

4 D) distinctive competency, cost leadership, and experience

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

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

Which of the following does not represent reasons for

globalizing operations?

1. A) reduce costs

2 B) improve supply chain

3 C) reduce responsiveness

4 D) attract and retain global talent

5 E) None of the above are valid reasons for globalizing operations

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

Multinational organizations can shop from country to

country and cut costs through

1. A) lower wage scales

2 B) lower indirect labor costs

3 C) less stringent regulations

4 D) lower taxes and tariffs

5 E) all of the above

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

The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness

3 C) to expand a product's life cycle

4 D) to attract and retain global talent

5 E) all of the above

NAFTA seeks 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 the United States and Mexico

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

5 E) All of the above are NAFTA goals

Which of the following is least likely to be a Cost Leadership competitive advantage?

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

Which of the following has progressed the furthest along its product life cycle?

68 Free Test Bank for Operations Management

Flexible Version 10th Edition Heizer Multiple Choice Questions - Page 2

Cost minimization is an appropriate strategy in which stage

of the product life cycle?

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 stage in the product life cycle at which it is a poor time

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) none of the above

Which of the following is not an operations strategic

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) is the same as product differentiation, but applied in the service sector

Which of these companies is most apt to have quality

standards that are relatively subjective?

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) use of the Euro, not the currency of each European country

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

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

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

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

5 E) A firm advertises more than its competitors

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

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

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

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

5 E) A firm advertises more than its competitors

Which of the following influences layout design?

1. A) inventory requirements

2 B) capacity needs

3 C) personnel levels

4 D) technology decisions

5 E) All of the above influence layout decisions

Which of the following environmental factors has not been a factor in Microsoft's changing strategy?

1. A) Google

2 B) security issues

3 C) faster processors

4 D) the Internet

5 E) none of the above

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

Which of these organizations is likely to have the most

important inventory decisions?

1. A) a marketing research firm

1. A) change in the company's financial situation

2 B) a company's adoption of new technology

3 C) change in the product life cycle

4 D) change in the competitive environment

5 E) change in job scheduling techniques

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) none of the above

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

Costs, quality, and human resource decisions interact

strongly with the decision

1. A) layout design

2 B) process and capacity design

3 C) supply chain management

4 D) goods and service design

5 E) All of the above are correct

The three steps of the operations manager's job, in order, are:

1. A) develop the strategy, establish the organizational structure, find the right staff

2 B) develop the strategy, find the right staff, establish the organizational structure

3 C) find the right staff, establish the organizational structure, develop the strategy

4 D) find the right staff, develop the strategy, establish the organizational structure

5 E) establish the organizational structure, find the right staff, develop the strategy

Which of the following are examples of transnational firms?

1. A) Nestlé

2 B) Asea Brown Boveri

3 C) Reuters

4 D) Citicorp

5 E) All of the above are transnationals

Which of these organizations is likely to have the most

complex inventory decisions?

1. A) a marketing research firm

2 B) a stock brokerage firm

3 C) a management consulting firm

4 D) a computer manufacturing company

5 E) a high school

Value-chain analysis is used to identify activities that

represent, or can develop into, the core competencies of a business Who introduced this concept?

1. A) Ford

2 B) Toyota

3 C) Porter

4 D) Smith

5 E) None of the above

Given the position of the iPod in the growth stage of its life cycle, which of the following OM Strategy/Issues should the makers of iPods be least concerned with at the current

5 E) none of the above

Before establishing and implementing strategy, a resources view would ensure that which of the following resources are available:

1. A) financial

2 B) physical

3 C) human

4 D) technological

5 E) all of the above

Franz Colruyt has achieved low-cost leadership through

1. A) Spartan headquarters

2 B) absence of voice mail

3 C) low-cost facilities

4 D) no background music

5 E) all of the above

Which of the following is not part of value-chain analysis?

When developing the operations strategy for a new

manufacturing organization, one of the most important considerations is that it

1. A) requires minimal capital investment

2 B) utilizes as much automation as possible

3 C) utilizes an equal balance of labor and automation

4 D) supports the overall competitive strategy of the company

5 E) none of the above

Which of the following will more likely locate near their customers?

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

1. A) the multidomestic strategy option

2 B) the multinational corporation strategy

3 C) the transnational strategy option

4 D) the maquiladora system in Europe

5 E) the global strategy option

Which of the following OM strategic decisions pertains to sensible location of processes and materials in relation to each other?

1. A) layout design

2 B) goods and service design

3 C) supply chain management

5 E) all of the Above

Which of the following statements concerning the operations management decision is relevant to services?

1. A) There are many objective quality standards

2 B) The customer is not involved in most of the process

3 C) The work force's technical skills are very important

4 D) Labor standards vary depending on customer requirements

5 E) Ability to inventory may allow the leveling of the output rates

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

1. A) international strategy