BUS3020 PRODUCTION AND
OPERATIONS MANAGEMENT QUIZ
QUESTIONS WITH CORRECT ANSWERS
The following are the four basic sources of process variation or variability ...
1. Product mix or the variety of goods and services offered
2. Demand variations.
3. Natural or inherent variability in a process, also called random variation
4. Assignable variations caused by defective materials, incorrect processes, out-of-
adjustment equipment, people errors, and environmental factors such as extreme
weather. T/F - True
Operations managers generally do not like variability or variations in production or
service requirements for the following reasons:
1. Variations are disruptive
2. Variations may result in additional costs or delays
3. Variations do not facilitate the uninterrupted production of larger quantities using the
same setup.
T/F - True
Coordinating the activities among various organizations, including suppliers,
manufacturers, distributors, and retailers is called... - Supply Chain Management
All of the following are higher in manufacturing operations compared to service
operations.
1. Uniformity of inputs
2. Customer contact
3. Labor content of jobs
T/F - False
Service operations, such as movie theaters, provide "psychological utility" for
customers. T/F - True
All of the following are operations that convert some form of inputs into desired outputs:
1. Manufacturing operations, such as laptop assembly, food processing, etc.
2. Service operations, such as banks, hospitals, airlines, hair salons, etc.
T/F - True
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