1. A purposeful collection of people, objects, and procedures for operating within an environment is known as a(n):

a) Operation

b) Sub -system

c) System

d) Sub-operation

2. Which of the following is among the six major elements of a production system?

a) Inputs

b) Output

c) Monitoring and legislative compliance

d) Only A and B

3. Value can be added to an entity in all the following ways, EXCEPT:

a) Altering

b) Facilitating

c) Storing

d) Transporting

4. A type of output that commonly results from a production system is:

a) A product

b) A service

c) Neither A nor B

d) Both A and B

5. Which of the following is NOT considered a characteristic of a service?

a) Intangible

b) Labor-intense production

c) Quality difficult to measure

d) Delayed consumption

6. A distinction between normal goods and information/knowledge is that

a) Normal goods wear out, but information/knowledge does not

b) Information/knowledge can be given or sold to many others

c) Information/knowledge is subject to diminishing returns, but physical outputs are subject to increasing returns

d) Both A and B

7. Inputs in a bank's production system may include:

a) Loan default rates and the environment

b) Interest rates and wage rates

c) Checks and deposits

d) Federal Reserve decisions and the economy

8. Which of the following uses techniques from Toyota Production System and JIT to eliminate waste and nonvalue-added activities?

a) Enterprise and material requirements planning

b) Lean Management

c) Quality Control

d) Capacity Management

9. Learning how to plan and control project activities to meet specifications for performance, schedule, and cost are among the subjects of:

a) Project management

b) Lean management

c) Supply chain management

d) Inventory management

10. Customization occurs when

a) Products or services are world-class, suitable for most markets

b) Products or services are offered on a made-to-order basis

c) Products or services are developed with several options

d) Both A and C