EXAMINATION 1, Version F

Use a Scantron Form No. 886-E to record your choice of the best answer to each of the following questions. You have the full period to answer the questions.

The following questions are worth three (3) points each.

1. Operations management is the business function that plans, coordinates, and controls the resources needed to produce a company’s products and services. a) True b) False

2. Firms that focus on quality as their primary competitive priority usually implement either product design quality or process quality, but not both. a) True b) False

3. To remain competitive, companies must be innovative and bring out new products regularly. a) True b) False

4. The time between order placement and the receipt of goods is called lead time. a) True b) False

5. ISO certification has become a requirement for conducting business in many industries. a) True b) False

6. A process that is in control has no variation. a) True b) False

7. An example of an operation that does not add value is ____________________________. a) removing iron ore from the ground and shipping it to a steel mill b) filling the underground gasoline tanks at a service station c) making a wedding cake d) moving components to a warehouse for storage until the factory needs them e) moving luggage from a cab to the airport ticket counter

8. Which of the following is not primarily performed by the operation management function?

a) job design and work measurement

b) advertising strategy

c) location analysis

d) quality management

e) facility layout

9. Increasing the level of responsibility of a job by adding planning and coordination tasks is