1. Which one of the following statements is TRUE? A. Current challenges in operations management include increased communication cost. B. Mass customization is the ability of the organization to be flexible enough to cater to the individual whims of consumers. C. The service sector has lower productivity improvements than the manufacturing sector because services usually are labor-intensive. D. The largest contributor to productivity increases is capital in the United States, estimated to be responsible for 85% of the annual increase. E. None of above

2. Which one of the following statements is TRUE? A. Production and consumption occur simultaneously is a most typical attribute of a service. B. Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced. C. Goods tend to have higher customer interaction than services. D. Although the number of people employed in manufacturing in the United States has decreased since 1950, each person is now producing almost 50 times more than in 1950. E. None of above

3. Which one of the following statements is TRUE? A. An accounting firm that provides tax services for a company would not be considered to be part of that company's supply chain. B. Auditing is an operations function in a commercial bank C. The person most responsible for initiating the use of interchangeable parts in manufacturing was Eli Whitney. D. Because Hard Rock Cafs are themed restaurants, operations managers focus their layout design efforts on attractiveness while paying little attention to efficiency. E. None of above

4. Which one of the following statements is TRUE? A. The multidomestic strategy uses exports and licenses to penetrate globally. B. The transnational strategy uses subsidiaries, franchises, or joint ventures with substantial independence. C. The global strategy describes a condition in which material, people, and ideas cross or transgress national boundaries. D. The international strategy centralizes operating decisions, with headquarters coordinating the standardization and learning between facilities. E. None of above

5. Which one of the following statements is TRUE? A. The theory of competitive advantage implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can. B. The term renewal has been created to describe the return of business activity to the originating country. C. Offshoring is the practice of transferring a firm's activities that have traditionally been internal to external suppliers. D. Approximately half of all outsourcing agreements fail. E. None of above

6. Which one of the following statements is TRUE? A. That a firm produces its product with less raw material waste than its competitors do is an example of competing on quick response. B. The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is flexible response. C. That a car manufacturer offers the best warranty in the automobile industry is an example of competing on the basis of differentiation. D. A firm's strategy mission is the purpose or rationale for its existence; whereas, a firm's mission is how it expects to achieve its mission and goals. E. None of above.

7. Which one of the following statements is TRUE? A. Crashing a project often reduces the length of long-duration, but noncritical, activities. B. Shortening the project's duration by Melting unnecessary activities is called "project crashing. C. Crashing sometimes has the reverse result of lengthening the project duration. D. A negative crash cost per period would imply that either crashing is cheaper than not crashing or that the crash time was slower than the normal time E. None of above.

8. Which one of the following statements is TRUE? A. Project standard deviation is the sum of all critical activity standard deviations. B. In PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time. C. Regarding PERT times, the most likely time estimate is an estimate of the maximum time an activity will require. D. The bell curve is often appropriate for determining the expected value and variance for activity completion times. E. None of above.

9. Which one of the following statements is TRUE? A. Regarding critical paths, there can he multiple critical paths, all with exactly the same duration on a specific project. B. The critical path can be determined by use of either the "forward pass" or the "backward pass. C. Regarding CPM, all activities on the critical path have their ES equal to their LF. D. The fundamental difference between PERT and CPM is that PERT uses the beta distribution for crashing projects while PM uses cost estimates. E. None of above.

10. Which one of the following statements is TRUE? A. The expected value of each course of action in a decision tree is determined by starting at the beginning of the tree (the left-hand side) and working toward the end of the tree (the right). To increase service efficiency, the product should be designed so that customization is allowed as early in the process as possible. C. The role of decision trees in product design is to calculate the value of the moment of truth. D. Expanding the options is a service design technique used to increase service efficiency. E. None of above.

11. Which one of the following statements is TRUE? A. An assembly chart lists the operations necessary to produce the component with the material specified in the bill of material. B. A drawing that shows the dimensions, tolerances, materials, and finishes of a component is a process sheet. C. A route sheet typically shows the hierarchy of components, their description, and the quantity of each required to make one unit of a product. D. A work order shows an exploded view of the product, usually a three-dimensional or isometric drawing. E. None of above.

12. Which one of the following statements is TRUE? A. Modular design exists only in tangible products; it makes no sense in services. B. Robust design ensures that small variations in production or assembly do not adversely affect the product. C. Value engineering occurs during production when it is clear the product is a success. D. The four phases of the product life cycle are incubation, introduction, growth, and decline. E. None of above.

13. Which one of the following statements is TRUE? A. Poka-yoke refers to training and empowering frontline workers to solve a problem immediately. B. Of the several determinants of service quality, access is the one that relates to keeping customers informed in language they can understand. C. Before the product is shipped to the customer is a typical inspection point. D. Attribute inspection measures such dimensions as weight, speed, size, or strength to see if an item falls within an acceptable range. E. None of above.

14. Which one of the following statements is TRUE? A. Regarding control charts, values above the upper control limits imply that the product's quality is exceeding expectations. B. The process improvement technique that sorts the vital few from the trivial many is Taguchi analysis C. Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a check sheet. D. The "four Ms" of cause-and-effect diagrams are material, machinery/equipment, manpower, and methods. E. None of above.

15. Which one of the following statements is TRUE? A. The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as benchmarking. B. Suppose that a firm has historically been achieving Three Sigma" quality. If the firm later changes its quality management practices such that it begins to achieve "Six Sigma" quality, the average number of defects will be cut in half. C. Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product. D. Internal failure costs are associated with testing, labs, and inspectors. E.Noneofabove.