MPOM7103 Introduction to Operations Management

Regardless of how departments like Accounting, Engineering, Finance, and Marketing function in an organization, they are all linked together through:

• management.

• processes.

• stakeholders

• customers

Which one of the following statements regarding operations management is true?

• a. Inputs to a production system include capital and materials, but not human resources.

• b. Operations management deals only with manufacturing organizations because service organizations do not have tangible outputs.

• c. Typical inputs to a production system are processes and consumer goods.

• d. Customer participation and information on performance are two special types of inputs to a production system.

Operations management is part of a production system that can be described in the following manner:

Organization: inputs --> processes --> outputs.

Which one of the following correctly describes a production system?

• a. Airline: pilots--> planes--> transportation

• b. Bank: tellers--> computer equipment--> deposits

• c. Furniture manufacturer: wood--> sanding--> chair

• d. Telephone company: satellites--> cables--> communication

Which of the following is an example of a nested process?

• a. At the start of the new semester, a student first pays tuition and then goes to the bookstore.

• b. A customer service representative verifies a caller’s account information.

• c. A candidate’s intent to graduate is checked for financial holds by the Bursar and for degree requirements by Advising before the diploma mill prints their sheepskin.

• d. A stockbroker calls a client and advises her to sell silver short.

Which of the following statements is more of a general characteristic of a manufacturing organization, as compared to a service organization?

• a. Short-term demand tends to be highly variable.

• b. Operations are more capital intensive.

• c. Outputs are more intangible.

• d. Quality is more difficult to measure.

Which one of the following statements is more of a general characteristic of a service organization, as compared to a manufacturing organization?

• a. Output can be inventoried.

• b. The response time is longer.

• c. There is less customer contact.

• d. The facilities tend to be smaller.

Manufacturing processes usually have:

• a. physical, durable output.

• b. high levels of customer contact.

• c. output that cannot be inventoried.

• d. low levels of capital intensity.

Service processes usually have:

• a. physical, durable output.

• b. low levels of customer contact.

• c. output that can be inventoried.

• d. low levels of capital intensity.

Which of the following statements concerning manufacturing and service organizations is generally true?

• a. A service facility is more likely to serve national or even international markets.

• b. Manufacturing organizations generally have more difficulty in matching capacity with demand.

• c. In many service organizations, such as hospitals and entertainment centers, customers themselves are inputs to the transformation processes.

• d. Most service organizations can buffer themselves against uncertain demand by creating inventories and smoothing output levels.

Refresh your understanding of the word customer in operations management and identify the statement that is TRUE.

• a. Manufacturing systems can have only internal customers because other departments are responsible for serving the external customer.

• b. Only service organizations have external customers because service is provided in the presence of a customer.

• c. Customers can be internal or external in both manufacturing and service operations.

• d. The concept of an external customer is no longer relevant because delivery is given by third-party distribution companies.