The person who introduced standardized, interchangeable parts was – ELI WHITNEY

The three major business functions necessary to all organizations are – MARLETING.
FINANCE/ACCTNG, PRODUCTION/OPERATIONS
Intangible products, Few or no inventories, Higher customer interaction, Labor intensive (typically),
Shorter response time to customer satisfaction – CHARACTERISTICS OF SERVICE OPERATION
(TRANSFORMATION PROCESS)
Managing transformation processes. Operations management transforms INPUTS into Value Added
OUTPUTS and continuously improve the process using consumer feedback and performance data.
– OP MANAGEMENT’S ROLE
human capital, buildings, processes, various technologies, and raw materials. – INPUTS IN OPM
Must be coordinated to facilitate the strategic decisions, are more short-term in nature and more
specific with operational objectives. – TACTICAL DECISIONS
Developed Human Relations and Theory X/Y – DOUGLAS MCGREGOR
Developed the concept of motion economy and work design. – FRANK AND LILIAN
Establish the BROAD direction of the company and are general in scope with a LONG-TERM
horizon – STRATEGIC DECISIONS
Planning, Coordinating, Controlling, Leading – 4 FUNCTIONS

The person who developed plant-wide quality control systems was – W. EDWARDS DEMING
The "father" of scientific management is – FREDERICK TAYLOR
Which of these is NOT one of the basic functions of the management process? – INSPECTING
1700's; artisans replaced by machines, labor is divided and parts are standardized. (James Watt,
Adam Smith, Eli Whitney) – THE INDUSTRIAL REVOLUTION ERA
Mid 1900's; developed new quantitative techniques for OM problems, supported American military in
WWII and cold war. Major contributions include: inventory modeling, linear programming, project
mgmt., forecasting, statistical sampling, and quality control techniques. – MANAGEMENT SCIENCE
ERA
When a tangible product is NOT included in the service, it is called – PURE SERVICE
Cooperating with suppliers and customers to reduce overall costs of the supply chain and increase
responsiveness to customers. – SUPPPLY CHAIN
Developed the first steam engine – JAMES WATT
Early 1900's; planning became distinct from doing and the manager's job was to discover physical
limits of worker through measurement, analysis, and observation. (Fredrick Taylor, Frank and Lillian
Gilbreth, Henry Ford) – SCIENTIFIC MANAGEMENT ERA
Increases in productivity are difficult to achieve if – THE TASK IS MORE INTELLECTUAL AND
PERSONAL
For fixed costs of $2,000, revenue per unit of $2, and variable cost per unit of $1.60, the break-even
quantity is: - 5,000
______________ is typically characterized by a strong growth in sales and profits, and because the
company can start to benefit from economies of scale in production, the profit margins, as well as
the overall amount of profit, will increase. This makes it possible for businesses to invest more
money in the promotional activity to maximize the potential of this growth stage. – GROWTH
Is a form of standardization in which component parts are subdivided into modules that are easily
replaced or interchanged – MODULAR DESIGN

Design capacity refers to the maximum output rate that can be achieved under ideal conditions. –
TRUE
Efficiency is defined as the ratio of: - ACTUAL OUTPUT TO EFFECTIVE CAPACITY

Utilization is defined as the ratio of: - ACTUAL OUTPUT TO DESIGN CAPACITY

At a restaurant, which of the following is a ‘core’ part of the service? – THE MEAL
Extent to which there is an absence of variety in a product, service or process –
STANDARDIZATION
At the break-even point: - TOTAL COST EQUALS TO TOTAL REVENUE
The goal of strategic capacity planning is to achieve a match between the long-term supply
capabilities of an organization and the predicted level of long-term demand. – TRUE
This is a reason of product or service design that focuses on government changes, safety issues
and new regulations. – POLITICAL, LIABILITY OR LEGAL
Three types of researches that are conducted by Research team except – SOCIAL RESEARCH
_______________ is an investigative activity that a business choose to conduct, with the intention of
making a discovery that can lead to either the development of new products or process, or the
improvement of existing products or process. – R&D

With product and process specifications complete, one (or few) units are made to see if there are
any problems with the product or process specifications. – PROTOTYPE DEVELOPMENT
. _______________ is the activity of planning and organizing people, infrastructure, communication
and material components of a service in order to improve its quality and the interaction between the
service provider and its customers – SERVICE DESIGN
____________ is a series of steps that includes the conceptualization, design, development and
marketing of newly created or newly re branded goods or services – PRODUCT INNOVATION

A basic question in capacity planning is: - ALL OF THE ABOVE

From a marketing perspective, the amount of market share a product or service stands to gain
relates to ‘acceptability’ of a concept. – TRUE
The following is the source(s) for developing new or improved product – ALL OF THE ABOVE
Why is good product and service design important? – PRODUCT AND SERVICES ARE USUALLY
THE FIRST THING CUSTOMERS SEE OF A COMPANY…
Given the following information, what would efficiency be? Effective capacity = 50 units per day
Design capacity = 100 units per day Actual output = 30 units per day – 60%
Companies recycle for a variety of reason except... – CUSTOMER PREFERENCES
Design that results in products or services that can function over a broad range of conditions.
ROBUST DESIGN
The term capacity refers to the maximum quantity an operating unit can process over a period of
time. – TRUE

This stage of the cycle could be the most expensive for a company launching a new product. The
size of the market for the product is small, which means sales are low, although they will be
increasing. On the other hand, the cost of things like research and development, consumer testing,
and the marketing needed to launch the product can be very high, especially if it’s a competitive
sector. – INTRODUCTION
An investment proposal will have annual fixed costs of $60,000, variable costs of $35 per unit of
output, and revenue of $55 per unit of output. What volume of output will be necessary for an annual
profit of $60,000? – 6000

Where should product or service design start? – WITH THE CUSTOMER

______ helps in establishing the interchangeability of products – STANDARDIZATION
The assessment of environmental impact of a product or service throughout its useful life – CRADLE
TO GRAVE
Which of the following is a disadvantage of Standardization? – DESIGNS MAY BE FROZEN WITH
TOO MANY…
‘Ideas’ are essentially the same as ‘concepts. – FALSE
Which of the following is correct? – SCREENING COMES BEFORE
Concept Product Life Cycle is used by __________________ and ____________________
professionals as a factor in deciding when it is appropriate to increase advertising, reduce prices,
expand to new markets, or redesign packaging – MANAGEMENT, MARKETING
Main Focus objective of product or service design. – CUSTOMER SATISFACTION
The further on in the design activity: - THE HIGHER THE COST
Which of the following is the correct order of Life Cycle Stages of Product/Service Design? –
I,G,MS,D
Major Factors in Design Strategy except – CUSTOMER ADVANTAGE
Which of the following is NOT an advantage of standardization? – HIGH COST OF DESIGN…

An investment proposal will have annual fixed costs of $60,000, variable costs of $35 per unit of
output, and revenue of $55 per unit of output. Determine the break-even quantity. – 3000
Product Design determine the success or failure of products in marketplace. Product design is
_____________ - PROCESS OF CREATING A NEW PRODUCT TO BE SOLD BU A BUSINESS
TO ITS CUSTOMER.