CHAPTER 1

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University of Texas, Permian Basin *

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Management

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Feb 20, 2024

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CHAPTER 1 The three issues that are at the core of operations management include all of the following EXCEPT _____. a. cost b. quality c. tangibility d. efficiency c Which of the following key activities is NOT performed by operations managers? a. Purchasing b. Cost accounting c. Forecasting d. Service encounter design B 00:07 03:34 An operations manager is expected to perform several key activities EXCEPT: a. coordinating the acquisition of materials, supplies, and services. b. determining when resources should be assigned to work. c. managing cash flow and strategic investments. d. making use of technology to improve productivity. C Which of the following statements is NOT true of goods and services? a. Service encounters can be between a customer and a service provider. b. Services cannot be stored as inventory for future sale. c. A shoe is a durable good that provides a service. d. Normally, patents do not protect services. C Computer software is an example of a _____. a. tangible product b. nondurable good c. service d. value creation process B

CHAPTER 1 . Identify the statement about goods and services that is NOT true? a. Services that do not involve significant interaction with customers can be managed much the same as goods in a factory. b. A service is any primary or complementary activity that does not directly produce a physical product. c. Some very significant differences exist between goods and services that create different demands on the operations function. d. Designing and managing operations in a goods-producing firm is quite similar to that in a service-providing organization. D . Which of the following statements about goods and services is TRUE? a. The demand for services is independent of time. b. A durable good is a product that typically lasts for less than three years. c. A good example of a nondurable good is furniture. d. A service encounter can consist of one or more moments of truth. D Identify a FALSE statement about goods and services. a. Service encounters can be between a customer and a service provider. b. The demand for services is time-dependent, especially over the short term. c. There is no way to recapture the lost revenue from a hotel room. d. A moment of truth is a feature a customer recognizes, pays for, or uses. D Which of the following jobs requires the most service management skills and knowledge? a. Airplane mechanic b. Usher at sports stadium c. Restaurant cook d. Airline Flight attendant D Which of the following statements about goods and services is FALSE? a. Service encounters can be between a customer and a service provider. b. Demand for physical goods is more difficult to predict than demand for services. c. Services cannot be stored as physical inventory for future sale. d. Normally, patents do not protect services. B

CHAPTER 1 Which of the following statements is NOT true regarding the differences between goods and services? a. Demand for services is easier to forecast. b. Customers participate in many services. c. Services cannot be stored as physical inventory. d. Patents do not protect service processes. A Which of the following statements about goods and services is FALSE? a. Service encounters are interactions between customers and service providers. b. Services can be stored as physical inventory for future sale. c. Goods are tangible, while services are intangible. d. The demand for service is more difficult to predict than the demand for goods. B 00:03 03:34 Service management skills include all of the following EXCEPT _____. a. accounting and finance b. knowledge and technical expertise about operations c. marketing and cross-selling skills d. human interaction skills A Which of the following statements is TRUE of service facilities? a. They are in close proximity to customers. b. They rely on physical inventory. c. They take advantage of patents. d. They are located close to raw materials, suppliers, and labor. A Which of the following statements is TRUE of goods and services? a. A variant is always a durable good with new features. b. An automobile is a nondurable good. c. Demand for goods is more difficult to predict than demand for services.

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CHAPTER 1 d. Normally, patents do not protect services. D A customer benefit package (CBP) includes _____. a. only core offerings b. only peripheral offerings c. either core or peripheral offerings but not both d. both core offerings as well as peripheral offerings D Which one of the following statements is TRUE regarding a customer benefit package (CBP)? a. A CBP consists of a primary good and a primary service coupled together. b. A variant is a CBP feature that strictly adheres to the standard CBP. c. The size of the circles in the CBP framework can signify the relative importance of each good and service. d. When defining a CBP, the features determined by management accurately describe customers' wants and needs. C Which of the following has the highest goods content? a. Buying furniture b. Computer repair service c. Automobile loans d. Symphony performance A Which one of the following has the lowest goods content? a. Automobile muffler replacement b. Computer diagnosis and repair c. Movie presentation d. Fast-food restaurant C Which of the following is lowest in goods content and highest in service content? a. Dining at a fast-food restaurant b. Attending a theater production c. Getting an oil change for your car d. Filling a medical prescription B

CHAPTER 1 In relating operations management and the customer benefit package (CBP), which is the correct timing sequence? a. Operating system processes lead to customer needs and expectations, which lead to customer benefit package. b. Customer benefit package leads to customer needs and expectations, which lead to operating system processes. c. Customer needs and expectations lead to customer benefit package, which leads to operating system processes. d. Customer needs and expectations lead to operating system processes, which lead to customer benefit package. C A(n) _____ is a sequence of activities that is intended to create a certain result. a. process b. service c. variant d. inventory A A support process could be any of the following EXCEPT _____. a. assembling automobiles b. purchasing materials and supplies c. managing inventory d. installing a product A Support processes typically include all of the following EXCEPT _____. a. inventory management b. day care on-site services c. research and development d. manufacturing and assembly D Which of the following activities is NOT included in the general management process in businesses? a. Accounting and information system b. Purchasing and installation c. Marketing

CHAPTER 1 d. Human resource management B A network of processes that creates value for customers is known as a _____. a. process network b. value network c. customer value d. value chain D When evaluating golf clubs in a retail store, a golf simulator (i.e., a person hits the balls into a big video golf course screen and sees where it lands) is an example of _____. a. nondurable goods replacing services b. a primary good c. low goods content d. biztainment D . Which one of the following is NOT an example of biztainment? a. iPhone applications b. Automobile leasing c. Virtual product demonstrations d. Virtual factory tours B Which of the following is the correct sequence describing the evolution of operations management? a. Efficiency, customization, quality, service, sustainability, and time-based competition b. Quality, efficiency, time-based competition, sustainability, customization, and service c. Efficiency, quality, customization, time-based competition, service, and sustainability d. Quality, service, customization, time-based competition, efficiency, and sustainability C Which one of the following statements about the scope and direction of operations management is FALSE? a. Service-providing processes are the dominant type of processes in the U.S. economy. b. Business analytics includes predictive and prescriptive data analytics. c. Today, sustainability is placing increased pressure on all goods-producing and service- providing organizations worldwide.

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CHAPTER 1 d. Goods-producing industries account for over 80 percent of the jobs in the U.S. D Which one of the following statements about the structure of the U.S. economy is TRUE? a. About 90 percent of all U.S. jobs are in service-providing processes. b. All goods-producing jobs account for 25 percent of total U.S. jobs. c. All service-providing jobs account for 65 percent of total U.S. jobs. d. The largest U.S. industry with respect to U.S. jobs is manufacturing. A Identify a TRUE statement about sustainability. a. Sustainability is always a variant in the customer benefit package framework. b. The goal of economic sustainability is to reduce time-based competition. c. Sustainability includes the global perspective. d. Sustainability includes the idea of preserving resources for future generations. D Which of the following is NOT one of the three major perspectives (dimensions) of sustainability? a. Global sustainability b. Environmental sustainability c. Economic sustainability d. Social sustainability A . All of the following are perspectives of sustainability EXCEPT: a. economic sustainability. b. social sustainability. c. technological sustainability. d. environmental sustainability. C Which of the following statements is TRUE of social sustainability? a. It includes customization and financial management. b. It includes ethics and governance. c. It includes sustainable product design. d. It includes energy optimization. B

CHAPTER 1 Which one of the following statements is TRUE of sustainability? a. Environmental sustainability applies only to goods-producing firms. b. Resource management is a component of social sustainability. c. The three dimensions of sustainability are often referred to as the "triple bottom line." d. Sustainability includes the idea of preserving resources for three years. C Which one of the following statements about sustainability is TRUE? a. The three dimensions of sustainability are environmental, social, and technological. b. Economic sustainability focuses solely on the quality levels of physical goods. c. Sustainability applies to goods-producing organizations only. d. Sustainability practices can improve productivity and eliminate waste. D Product safety is an example of a(n) _____ sustainability practice. a. environmental b. social c. economic d. technological B Which of the following is NOT a current challenge in operations management (OM)? a. Globalization b. Technology c. Quality d. Mass production D Which of the following statements is FALSE concerning the discussion of the Zappos case study? a. An example of a primary process at Zappos is "order entry." b. The value of a loyal customer is an important part of Zappos' strategy because of its emphasis on more repeat customers through word of mouth. c. Zappos' first core value is "Deliver WOW through service." d. Zappos' call center is the gateway to its business and represents a support process. D Which of the following statements in the Zappos case discussion is TRUE? a. High quality shoes are produced in factories owned by Zappos in Asia.

CHAPTER 1 b. The order entry process is a support service. c. The only type of service encounter design used by Zappos is customer to Web service (i.e., human to and from technology). d. The return process is a primary service. D

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CHAPTER 1

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