QUIZ CHAPTER 1 (DEOM 330 BUSINESS PLANNING)
1. The "father" of scientific management is
a. Henry Ford.
b. Eli Whitney.
c. Frederick W. Taylor.
d. Michael Schumacher.
2. The three major business functions
necessary to all organizations are
a. marketing, finance/accounting,
production/operations.
b. Finance/accounting, personnel,
operations.
c. marketing, finance/accounting,
research & development.
d. marketing, production,
operations.
3. Which of these is NOT one of the basic
functions of the management process.
a. Staffing
b. Inspecting
c. Leading
d. Controlling
4. Which of these statements accurately
captures a current trend in operations?
a. There is increased focus on
local markets and local
competition.
b. Cost competition is more
important than any other basis
for competition.
c. Jobs are increasingly
specialized as workers focus on
basic assembly tasks.
d. Products and services are
designed more quickly and by
teams.
5. The service sector constitutes what
percentage of employment in the
United States?
a. Between 75% and 85%
b. Between 65% and 75%
c. Between 45% and 55%
d. Between 55% and 65%
6. Productivity increases when
a. inputs and outputs increase
proportionately.
1
b. outputs decrease while inputs
remain the same.
c. inputs increase while outputs
remain the same.
d. inputs decrease while outputs
remain the same.
7. The capital investment each year in the
United States usually
a. decreases.
b. decreases unless favorably
taxed.
c. increases.
d. remains constant.
8. Which appears to provide the best
opportunity for increases in
productivity?
a. management
b. raw materials
c. Capital
d. Labor
9. The person who introduced
standardized, interchangeable parts
was
a. Eli Whitney.
b. W. Edwards Deming.
c. Adam Smith.
d. Henry Ford.
10. The person who developed plant-wide
quality control systems was
a. Frederick Taylor.
b. Eli Whitney.
c. Henry Ford.
d. W. Edwards Deming.
11. An insurance adjuster processes the
claims of six policy holders in an eight hour
work day. The adjuster uses $5 in gasoline and
$3 in forms and office supplies to complete the
work. What is her labor productivity?
a. $1 per claim
b. 1 claim per dollar
c. 1.33 hours per claim
d. 0.75 claims per hour
 QUIZ CHAPTER 1 (DEOM 330 BUSINESS PLANNING)

12. Two car wash employees are paid $7.50 17. Operations managers now devote more
an hour each and are capable of washing 12 energy to price negotiation with their suppliers
cars per hour, using $1 of water and $2 of as a means of staying competitive.
soap and other cleaning supplies. What is the
multifactor productivity of this operation? o True
o False
a. 0.66 cars per dollar
b. 1.8 dollars per car 18. Productivity in the service sector has
c. 0.95 cars per dollar proven difficult to improve because it is
d. 1.05 dollars per car typically labor-intensive.

13. When a tangible product is NOT included o True

in the service, it is called o False

a. a direct service. 19. A country's standard of living can improve

b. an intangible product. only through increases in productivity.
c. a pure service. o True
d. a knowledge-based service.
o False
14. In the early part of the 21st century, annual 20. Two bricklayers work together to build a
productivity growth in the U.S. has been 320 brick wall in an 8 hour work day. If they are
_______ .
paid $10 per hour, their productivity is $2/brick.
a. 1% o True
b. 4%
o False
c. 2.5%
d. 7%

15. Increases in productivity are difficult to

achieve if

a. the task is more intellectual and

personal.
b. the task is more physical and
tangible.
c. the task is more good-producing
and standardized.
d. the task is more quantitative
and repetitive.

16. Operations managers are increasingly

concerned with designing products and
processes that are environmentally friendly.

o True
o False

2
 QUIZ CHAPTER 1 (DEOM 330 BUSINESS PLANNING)

ESSAY QUESTION

1. Name and briefly describe a viable business that does not have an operations function.

2. The detailing shop at a used car dealership tracks their workers' labor, water bills, and
consumables on a weekly basis. The data from the last 5 weeks are shown in the table. What is the
multifactor productivity for each week if workers average $25 per hour, water costs $1.50 per
thousand gallons, and consumables are $4 per ounce?

Week Labor (hr) Water (gal) Consumables (oz) # cars

1 150 1,250 42 100
2 165 900 50 90
3 140 820 38 80
4 100 800 34 74
5 125 930 28 84

3. Rank the three factors that are critical to productivity improvement in order from greatest to least
impact and briefly discuss each.

4. Name and describe four differences between goods and services other than tangibility.