Principles of Operations Management 9th Heizer Test Bank

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Principles of Operations Management 9th Heizer Test Bank


Test Bank Principles Operations Management 9th Edition Heizer


1. At Hard Rock Caf, tasks that reflect operations or operations management include
a. designing meals
b. testing meals (recipes)
c. analyzing meals for the cost of ingredients
d. preparing employee schedules
e. all of the above
2. An operations task performed at Hard Rock Caf is
a. borrowing funds to build a new restaurant
b. advertising changes in the restaurant menu
c. calculating restaurant profit and loss
d. preparing employee schedules
e. all of the above
3. Operations management is applicable
a. mostly to the service sector
b. to services exclusively
c. mostly to the manufacturing sector
d. to all firms, whether manufacturing and service
e. to the manufacturing sector exclusively
4. Which of the following are the primary functions of all organizations?
a. operations, marketing, and human resources
b. marketing, human resources, and finance/accounting
c. sales, quality control, and operations
d. marketing, operations, and finance/accounting
e. research and development, finance/accounting, and purchasing
5. Budgeting, paying the bills, and collection of funds are activities associated with the
a. management function
b. control function
c. finance/accounting function
d. production/operations function e. staffing function
6. Which of the following would not be an operations function in a fast-food restaurant?
a. advertising and promotion
b. designing the layout of the facility
c. maintaining equipment
d. making hamburgers and fries
e. purchasing ingredients
7. The marketing functions main concern is with
a. producing goods or providing services
b. procuring materials, supplies, and equipment
c. building and maintaining a positive image
d. generating the demand for the organizations products or services
e. securing monetary resources
8. Reasons to study Operations Management include
a. studying why people organize themselves for free enterprise
b. knowing how goods and services are consumed
c. understanding what human resource managers do
d. learning about a costly part of the enterprise
e. all of the above
9. Reasons to study Operations Management include learning about
a. why people organize themselves for productive enterprise
b. how goods and services are produced
c. what operations managers do
d. a costly part of the enterprise
e. all of the above
10. The five elements in the management process are
a. plan, direct, update, lead, and supervise
b. accounting/finance, marketing, operations, and management
c. organize, plan, control, staff, and manage
d. plan, organize, staff, lead, and control
e. plan, lead, organize, manage, and control

1. Which of the following statements regarding the Dreamliner 787 is true?
a. Boeing has found partners in over a dozen countries.
b. The new aircraft incorporates a wide range of aerospace technologies.
c. The new aircraft uses engines from not one, but two manufacturers.
d. Boeing will add only 20 to 30 percent of the aircrafts value.
e. All of the above are true.
2. Boeings new 787 Dreamliner
a. is assembled in Washington, D.C.
b. uses engines from Japan
c. has its fuselage sections built in Australia
d. has increased efficiency from new engine technology
e. results from a partnership of about a dozen companies
3. Examples of response to the global environment include
a. Boeings worldwide sales and production
b. Bennetons flexibility in design, production, and distribution
c. A Chinese manufacturer, Haier, opening plants in the United States
d. Fords partnerships with Volvo and Mazda
e. All of the above are examples.
4. Which of the following is an example of globalization of operations strategy?
a. Boeings Dreamliner has engines with higher fuel/payload efficiency.
b. Fords new auto models have dent-resistant panels.
c. A Chinese manufacturer, Haier, now operates plants in the United States.
d. Hard Rock Caf provides an experience differentiation at its restaurants.
e. All of the above are examples.
5. Cost cutting in international operations can take place because of
a. lower taxes and tariffs
b. lower wage scales
c. lower indirect labor costs
d. less stringent regulations
e. all of the above
6. Which of the following did the authors not suggest as a reason for globalizing operations?
a. reduce costs
b. improve the supply chain
c. stockholder approval ratings d. attract new markets
e. All of the above were suggested.
7. Multinational organizations can shop from country to country and cut costs through
a. lower wage scales
b. lower indirect labor costs
c. less stringent regulations
d. lower taxes and tariffs
e. all of the above
8. The term maquiladora is most synonymous with
a. free trade zones
b. Chinese forced labor camps
c. home-based or cottage industry
d. areas that do not meet U.S. standards for workplace safety and pollution
e. none of the above
9. Which of the following represent reasons for globalizing operations?
a. to gain improvements in the supply chain
b. to improve operations
c. to expand a products life cycle
d. to attract and retain global talent
e. All of the above are valid.
10. Which of the following does not represent reasons for globalizing operations?
a. reduce costs
b. improve supply chain c. reduce responsiveness
d. attract and retain global talent
e. All of the above are valid reasons for globalizing operations.

1. Which of the following statements regarding Bechtel is true?
a. Its competitive advantage is project management.
b. Bechtel was the construction contractor for the Hoover Dam.
c. While helping to rebuild Iraq, Bechtels crews had to travel under armed escort.
d. Bechtels procurement program is global in nature.
e. All of the above are true.
2. Which of the following statements about Bechtel is true?
a. Even though Bechtel is over 100 years old, the Kuwaiti oil fields was its first project.
b. Bechtel is the worlds premier manager of massive construction and engineering projects.
c. Bechtels competitive advantage is supply chain management.
d. While its projects are worldwide, its network of suppliers is largely in the U.S.
e. All of the above are true.
3. The phases of project management are
a. planning, scheduling, and controlling
b. planning, programming, and budgeting
c. planning, organizing, staffing, leading, and controlling
d. different for manufacturing projects than for service projects
4. A project organization
a. is effective for companies with multiple large projects
b. is appropriate only in construction firms
c. often fails when the project cuts across organizational lines
d. is formed to ensure that programs (projects) get proper management and attention
e. a and d are both true
5. Which of the following statements regarding project management is false?
a. Gantt charts give a timeline for each of a projects activities, but do not adequately show the interrelationships of activities.
b. A project organization works best for a project that is temporary but critical to the organization.
c. Project organization works well when the work contains simple, independent tasks.
d. Gantt charts and PERT/CPM are never used together.
e. None of the above is true.
6. A code of ethics especially for project managers
a. has been established by the Project Management Institute
b. has been formulated by the Federal government
c. has been formulated by the World Trade Organization
d. is inappropriate, since everyone should use the same guidance on ethical issues
e. does not exist at this time
7. Divulging information to some bidders on a project to give them an unfair advantage
a. is the same thing as altering a status report
b. is bribery
c. is permitted by NAFTA
d. is known as bid rigging
e. is acceptable for private corporations but not for government agencies
8. Ethical issues that may arise in projects large and small include
a. bid rigging
b. expense account padding
c. compromised safety or health standards d. bribery
e. All of the above are true.
9. Which of the following statements regarding Gantt charts is true?
a. Gantt charts give a timeline and precedence relationships for each activity of a project.
b. Gantt charts use the four standard spines of Methods, Materials, Manpower, and Machinery.
c. Gantt charts are visual devices that show the duration of activities in a project.
d. Gantt charts are expensive. e. All of the above are true.
10. Which of the following statements regarding critical paths is true?
a. The shortest of all paths through the network is the critical path.
b. Some activities on the critical path may have slack.
c. Every network has exactly one critical path.
d. On a specific project, there can be multiple critical paths, all with exactly the same duration.
e. The duration of the critical path is the average duration of all paths in the project network.

1. What two numbers are contained in the daily report to the CEO of Walt Disney Parks & Resorts regarding the six Orlando parks?
a. yesterdays forecasted attendance and yesterdays actual attendance
b. yesterdays actual attendance and todays forecasted attendance
c. yesterdays forecasted attendance and todays forecasted attendance
d. yesterdays actual attendance and last years actual attendance
e. yesterdays forecasted attendance and the year-to-date average daily forecast error
2. Using an exponential smoothing model with smoothing constant = .20, how much weight would be assigned to the 2nd most recent period?
a. 16 b. 20 c. 04 d.09 e.10
3. Forecasts
a. become more accurate with longer time horizons
b. are rarely perfect
c. are more accurate for individual items than for groups of items
d. all of the above
e. none of the above
4. One use of short-range forecasts is to determine
a. production planning
b. inventory budgets
c. research and development plans d. facility location
e. job assignments
5. Forecasts are usually classified by time horizon into three categories
a. short-range, medium-range, and long-range
b. finance/accounting, marketing, and operations c. strategic, tactical, and operational
d. exponential smoothing, regression, and time series
e. departmental, organizational, and industrial
6. A forecast with a time horizon of about 3 months to 3 years is typically called a
a. long-range forecast
b. medium-range forecast
c. short-range forecast d. weather forecast
e. strategic forecast
7. Forecasts used for new product planning, capital expenditures, facility location or expansion, and
R&D typically utilize a
a. short-range time horizon
b. medium-range time horizon c. long-range time horizon
d. naive method, because there is no data history e. all of the above
8. The three major types of forecasts used by business organizations are
a. strategic, tactical, and operational
b. economic, technological, and demand
c. exponential smoothing, Delphi, and regression d. causal, time-series, and seasonal
e. departmental, organizational, and territorial
9. Which of the following is not a step in the forecasting process?
a. Determine the use of the forecast. b. Eliminate any assumptions.
c. Determine the time horizon. d. Select forecasting model.
e. Validate and implement the results.
10. The two general approaches to forecasting are
a. qualitative and quantitative
b. mathematical and statistical
c. judgmental and qualitative d. historical and associative
e. judgmental and associative
1. Which of these statements regarding Regal Marine is true?
a. Product design is a critical decision for the firm.
b. Regal uses a three-dimensional CAD system to shorten product development time.
c. Regal still uses some wooden parts and hand-produces some components.
d. Regals use of CAD has resulted in a superior product.
e. All of the above are true.
2. Regal Marine
a. no longer builds boats with any wooden parts
b. designs and builds boat hulls by hand
c. treats the product design decision as critical to its success
d. gets its competitive advantage by being the low-cost producer of boats designed by others
e. designs several new boats each year, but contracts other firms for their manufacture
3. The three major subdivisions of the product decision are
a. selection, definition, and design
b. goods, services, and hybrids
c. strategy, tactics, and operations
d. cost, differentiation, and speed of response
e. legislative, judicial, and executive
4. Which of the following statements is not true?
a. Virtually all of Hondas sales (autos, motorcycles, generators, lawn mowers) are based on its outstanding engine technology.
b. Intel focuses on microprocessors and chips.
c. Microsoft focuses on PC software.
d. Firms such as 3M establish goals for profitability from new products.
e. Dell Computers provides fast delivery to customers, but, in return, customers may only select from a limited choice of hardware configurations.
5. Operations managers must be able to anticipate changes in which of the following?
a. product mix
b. product opportunities
c. the products themselves d. product volume
e. all of the above
6. In which stage of the product life cycle should product strategy focus on process modifications?
a. introduction b. growth
c. maturity d. decline
e. none of the above
7. Which of the following would likely cause a change in market opportunities based upon levels of income and wealth?
a. economic change
b. sociological and demographic change
c. technological change
d. political change e. legal change
8. A products life cycle is divided into four stages, which are
a. introduction, growth, saturation, and maturity
b. introduction, growth, stability, and decline
c. introduction, maturity, saturation, and decline d. introduction, growth, maturity, and decline
e. none of the above
9. When should product strategy focus on forecasting capacity requirements?
a. at the introduction stage of the product life cycle
b. at the growth stage of the product life cycle
c. at the maturity stage of the product life cycle
d. at the decline stage of the product life cycle
e. none of the above
10. Which of the following statements regarding product life cycle and profitability is true?
a. Profit is highest in the growth life cycle phase because the product is new and unique.
b. Profit is lowest in the growth stage of the life cycle because costs are so high.
c. Profit is at its greatest in the decline stage of the product life cycle.
d. Breakeven is attained in the growth stage of the product life cycle.
e. Cash flow turns positive in the maturity phase.

1. Which of the following statements regarding Arnold Palmer Hospital is false?
a. The hospital uses a wide range of quality management techniques.
b. The culture of quality at the hospital includes employees at all levels.
c. The hospital scores very highly in national studies of patient satisfaction.
d. The hospitals high quality is measured by low readmission rates, not patient satisfaction.
e. The design of patient rooms, even wall colors, reflects the hospitals culture of quality.
2. Arnold Palmer Hospital uses which of the following quality management techniques?
a. Pareto charts b. flow charts
c. benchmarking d. Just-in-Time
e. The hospital uses all of the above techniques.
3. Which of the following statements best describes the relationship between quality management and product strategy?
a. Product strategy is set by top management; quality management is an independent activity.
b. Quality management is important to the low-cost product strategy, but not to the response or differentiation strategies.
c. High quality is important to all three strategies, but it is not a critical success factor.
d. Managing quality helps build successful product strategies.
e. Companies with the highest measures of quality were no more productive than other firms.
4. Quality is defined by the customer is
a. an unrealistic definition of quality
b. a user-based definition of quality
c. a manufacturing-based definition of quality
d. a product-based definition of quality
e. the definition proposed by the American Society for Quality
5. Making it right the first time is
a. an unrealistic definition of quality
b. a user-based definition of quality
c. a manufacturing-based definition of quality
d. a product-based definition of quality
e. the definition proposed by the American Society for Quality
6. Three broad categories of definitions of quality are
a. product quality, service quality, and organizational quality
b. user-based, manufacturing-based, and product-based
c. internal, external, and prevention
d. low-cost, response, and differentiation
e. Pareto, Shewhart, and Deming
7. According to the manufacturing-based definition of quality,
a. quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost
b. quality depends on how well the product fits patterns of consumer preferences
c. even though quality cannot be defined, you know what it is
d. quality is the degree to which a specific product conforms to standards
e. quality lies in the eyes of the beholder
8. The role of quality in limiting a firms product liability is illustrated by
a. ensuring that contaminated products such as impure foods do not reach customers
b. ensuring that products meet standards such as those of the Consumer Product Safety Act
c. designing safe products to limit possible harm to consumers
d. using processes that make products as safe or as durable as their design specifications call for
e. All of the above are valid.
9. Which of the following is not one of the major categories of costs associated with quality?
a. prevention costs b. appraisal costs
c. internal failures d. external failures
e. none of the above; they are all major categories of costs associated with quality
10. All of the following costs are likely to decrease as a result of better quality except
a. customer dissatisfaction costs
b. inspection costs
c. scrap costs
d. warranty and service costs e. maintenance costs

1. Which of the following statements regarding Dell Computer is false?
a. Dell is a practitioner of the mass customization process.
b. Dell builds its computers overseas in order to gain a low-cost advantage.
c. Dell keeps very little inventory of finished goods.
d. Dell utilizes a global supply chain, but assembles its computers in the U.S.
e. Dells research focuses on manufacturing issues, not computer part design.
2. An organizations process strategy
a. will have long-run impact on efficiency and flexibility of production
b. is the same as its transformation strategy
c. must meet various constraints, including cost
d. is concerned with how resources are transformed into goods and services
e. All of the above are true.
3. A job shop is an example of a(n)
a. repetitive process
b. continuous process c. line process
d. intermittent process e. specialized process
4. Three types of processes are
a. goods, services, and hybrids
b. manual, automated, and service
c. process focus, repetitive focus, and product focus
d. modular, continuous, and technological
e. input, transformation, and output
5. Which of the following industries is likely to have low equipment utilization?
a. auto manufacturing b. commercial baking
c. television manufacturing
d. chemical processing
e. restaurants
6. A product-focused process is commonly used to produce
a. high-volume, high-variety products
b. low-volume, high-variety products
c. high-volume, low-variety products
d. low-variety products at either high- or low-volume
e. high-volume products of either high- or low-variety
7. Which one of the following products is most likely made in a job shop environment?
a. a daily newspaper
b. paper forms
c. television sets d. cigarettes
e. canned vegetables
8. Which of the following products is likely to be assembled on a repetitive process line?
a. automobiles
b. personal computers
c. dishwashers
d. television sets
e. all of the above
9. An assembly line is an example of a
a. product-focused process
b. process-focused process
c. repetitive process
d. line process
e. specialized process
10. Standard Register
a. has dozens of U.S. plants in its Forms Division
b. groups people and machines into departments that perform specific activities
c. utilizes a product strategy to keep production volume high
d. obtains its low-cost advantage by not spending money on CAD systems
e. obtains its low-cost advantage by specializing in a relatively small number of products

1. FedEx chose Memphis, Tennessee, as its U.S. hub because
a. the city is in the center of the U.S., geographically
b. the airport has relatively few hours of bad weather closures
c. it needed a means to reach cities to which it did not have direct flights
d. the firm believed that a hub system was superior to traditional city-to-city flight scheduling
e. All of the above are true.
2. Which of the following statements regarding FedEx is true?
a. Its hub in Memphis, Tennessee, was selected because of its low cost.
b. Memphis, Tennessee, is the only hub in the companys global flight network.
c. FedEx believes the hub system helps reduce mishandling and delays due to better controls.
d. FedEx uses a hub system in the U.S., but a city-to-city network in other countries.
e. Memphis is FedExs only hub airport in the United States.
3. Industrial location analysis typically attempts to
a. reduce costs
b. maximize sales
c. focus more on human resources
d. be environmentally friendly
e. none of the above
4. Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. The term associated with this phenomenon is
a. bureaucratic risk
b. political risk
c. legislative risk d. judicial risk
e. democratic risk
5. A location decision for an appliance manufacturer would tend to have a(n)
a. cost focus
b . labor focus
c. revenue focus
d. environmental focus e. education focus
6. A location decision for a traditional department store (Macys) would tend to have a(n)
a. cost focus b. labor focus
c. revenue focus
d. environmental focus
e. education focus
7. Globalization of the location decision is the result of all of the following except
a. market economics
b. higher quality of labor overseas
c. ease of capital flow between countries
d. high differences in labor costs
e. more rapid, reliable travel and shipping
8. In location planning, environmental regulations, cost and availability of utilities, and taxes are
a. global factors
b. country factors
c. regional/community factors
d. site-related factors
e. none of the above
9. A manufacturing firm finds a location that has a significant cost advantage over alternatives, but rejects that location because the educational infrastructure was insufficient to train the firms workers in its special production technologies. The firms action illustrates the link between
and location.
a. innovation
b. clustering
c. tax incentives
d. globalization
e. proximity
10. Which of the following is usually not one of the top considerations in choosing a country for a facility location?
a. availability of labor and labor productivity
b. exchange rates
c. attitude of governmental units
d. zoning regulations
e. location of markets

1. Which of the following is not one of McDonalds seven major innovations?
a. the Happy Meal
b. drive-through windows c. breakfast menus
d. play areas
e. a kitchen system to facilitate mass customization
2. The layout strategy that deals with low-volume, high-variety production is
a. fixed-position layout
b. retail layout
c. warehouse layout
d. office layout
e. none of the above
3. A special arrangement of machinery and equipment to focus on production of a single product or group of related products describes what layout type?
a. fixed-position layout
b. intermittent production
c. focused factory
d. work cell
e. warehouse layout
4. A good layout requires determining
a. material handling requirements
b. capacity and space requirements
c. environment and aesthetics
d. cost of moving between various work areas
e. all of the above
5. The fixed-position layout would be most appropriate in which of the following settings?
a. a fast-food restaurant
b. a doctors office
c. a casual dining restaurant
d. a cruise ship assembly facility
e. none of the above
6. For which of the following operations would a fixed-position layout be most appropriate?
a. assembling automobiles
b. producing TV sets
c. constructing a highway tunnel or bridge
d. refining of crude oil
e. running an insurance agency
7. Because the fixed-position layout problem is so difficult to solve on-site, operations managers
a. virtually never employ this layout strategy
b. utilize this approach only for construction projects such as bridges and office towers
c. increase the size of the site
d. often complete as much of the project as possible off-site
e. utilize this layout only for defense contractors
8. One factor impacting the fixed-position layout strategy is
a. minimizing difficulties caused by material flow varying with each product
b. requiring frequent contact close to one another
c. the provision of low-cost storage with low-cost material handling
d. the movement of material to the limited storage areas around the site
e. balancing product flow from one work station to the next
9. The type of layout which features departments or other functional groupings in which similar activities are performed is
a. process-oriented
b. product-oriented
c. fixed-position
d. mass production
e. unit production
10. One of the major advantages of process-oriented layouts is
a. high equipment utilization
b. large work-in-process inventories
c. flexibility in equipment and labor assignment
d. smooth and continuous flow of work
e. none of the above

1. Workers in which of the following countries probably experience the least amount of job expansion, on average?
a. United States
b. Sweden
c. Japan
d. Sweden and Japan experience about the same amount, and less than the U.S.
e. They all experience about the same amount.
2. Which of the following best describes mutual commitment in an organization?
a. an instance in which management is committed to the employees and the employees are committed to management
b. both management and the employees are committed to the same objective
c. both management and the employees are committed, but to different objectives
d. management obtains the commitment of the employees to a stated objective
e. both management and the employees can rely on each other
3. Mutual trust is
a. when employees have gained the trust of management
b. reflected in reasonable, documented employment policies, honestly and equitably implemented to the satisfaction of both management and the employees
c. when management has gained the trust of the employees
d. when management recognizes that the employees are competent, motivated people both able and willing to perform at the level required to produce a quality product
e. when management and the employees both agree on the objectives
4. The objective of a human resource strategy is to
a. produce the demand forecast at lowest labor cost
b. match employment levels with demand
c. achieve a reasonable quality of work life at low cost
d. manage labor and design jobs so people are effectively and efficiently utilized
e. all of the above
5. The two most basic policies associated with employment stability are
a. job enrichment and job enlargement
b. employment for life and guaranteed minimum wage
c. follow demand exactly and hold employment constant
d. incentive plans and piece-rate plans
e. none of the above
6. Four of the components of job design are
a. employment stability, work schedules, work sampling, motivation, and incentive systems
b. job specialization, job expansion, psychological components, and self-directed teams
c. labor specialization and enrichment, motivation and incentive systems, employment stability, and work sampling
d. ergonomics and work methods, method time measurement, work schedules, and incentive
e. labor specialization, time studies, work sampling, and pre-determined time standards
7. Job rotation is an example of
a. job enrichment
b. job scheduling
c. job training
d. job enlargement
e. job incentive
8. The behavioral approach to job design that involves giving the worker a larger portion of the total task is
a. job enlargement
b. job enrichment
c. job enhancement
d. job rotation
e. job involvement
9. When a worker has a say in the work methods that he/she wishes to utilize, his/her job is characterized by
a. skill variety
b. job identity
c. job significance
d. feedback
e. autonomy
10. Which of the following terms implies an increase in responsibility and control?
a. job rotation
b. job enrichment
c. job re-design
d. job enlargement
e. job satisfaction


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