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Chapter 01 - Introduction to Operations Management

Chapter 01 Introduction to Operations Management
True / False Questions

1. Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services. True False

2. Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nations. True False

3. Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used. True False

4. Operations, marketing, and finance function independently of each other in most organizations. True False

5. The greater the degree of customer involvement, the more challenging the design and management of operations. True False

6. Goods producing organizations are not involved in service activities. True False

1-1

Chapter 01 - Introduction to Operations Management

7. Service operations require additional inventory because of the unpredictability of consumer demand. True False

8. The value of outputs is measured by the prices customers are willing to pay for goods or services. True False

9. The use of models will guarantee the best possible decisions. True False

10. People who work in the field of operations should have skills that include both knowledge and people skills. True False

11. Assembly lines achieved productivity but at the expense of standard of living. True False

12. The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities. True False

13. The word "technology" is used only to refer to "information technology". True False

14. ‘Value added' by definition is always a positive number since 'added' implies increases. True False

1-2

Chapter 01 - Introduction to Operations Management

15. Service often requires greater labor content, whereas manufacturing is more capital intensive. True False

16. Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials. True False

17. Special-purpose technology is a common way of offering increased customization in manufacturing or services without taking on additional labor costs. True False

18. One concern in the design of production systems is the degree of standardization. True False

19. Most people encounter operations only in profit-making organizations. True False

20. Service involves a much higher degree of customer contact than manufacturing. True False

21. A systems approach emphasizes interrelationships among subsystems, but its main theme is that the whole is greater than the sum of its individual parts. True False

22. The Pareto phenomenon is one of the most important and pervasive concepts that can be applied at all levels of management. True False

1-3

Chapter 01 - Introduction to Operations Management

23. Operations managers, who usually use quantitative approaches, are not really concerned with ethical decision-making. True False

24. The optimal solutions produced by quantitative techniques should always be evaluated in terms of the larger framework. True False

25. Managers should most often rely on quantitative techniques for important decisions since quantitative approaches result in more accurate decisions. True False

26. Many operations management decisions can be described as tradeoffs. True False

27. A systems approach means that we concentrate on efficiency within a subsystem and thereby assure overall efficiency. True False

28. Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom made parts. True False

29. Elton Mayo's "Hawthorne Experiment" was the focal point of the Human Relations Movement, which emphasized the importance of the human element in job design. True False

1-4

True False 32. Lean production systems use a highly skilled work force and flexible equipment. IT and human resources. finance. using the concept of interchangeable parts and division of labor. a model is a simplified version of a real phenomenon. Among Ford's many contributions was the introduction of mass production. True False 1-5 . As an abstraction of reality. Lean production systems incorporate the advantages of both mass production and craft production. True False 36. True False 33.Chapter 01 . The lean production philosophy has been slow to be adopted in service industries. True False 34. True False 31.Introduction to Operations Management 30. Operations management and marketing are the two functional areas that exist to support activities in other functions such as accounting. Operations Management activities will be less important in the future because many firms are becoming service-oriented operations rather than goods producing operations. True False 35.

Chapter 01 .Introduction to Operations Management 37. ideally: A.external links with suppliers and customers. the shipping container C. do not interface with each other 1-6 . none of the above 39. function independently of each other E. goods if a manufacturing organization E. minor in nature C. exist independently of each other D. and an internal network of flows to and between the operations function itself. redundant B. A modern firm has two supply chain considerations . are mutually exclusive C. informed D. True False Multiple Choice Questions 38. customer relations if a service organization 40. support one another B. the exterior wrapping B. quantitative E. hopefully most decisions made will be: A. A 'product package' consists of: A. a combination of goods and services D. Business organizations consist of three major functions which. Operations management involves continuous decision-making.

entertainment D. E. Measurements taken at various points in the transformation process for control purposes are called: A. union activity. costs. flexibility. feedback E.Chapter 01 . plans B. analysis of investment proposals. purchasing D. goods production B. Which of the following is not a type of operations? A. and provision of funds are activities associated with the _______ function. internal audit 1-7 . C. B. productivity. communication E. finance E. quality. A. storage/transportation C. marketing C. all the above involve operations 42. directions C. 43. operation B. D. budgets 44. Technology choices seldom affect: A. Budgeting.Introduction to Operations Management 41. controls D.

The responsibilities of the operations manager are: A. and controlling C. consulting 46. organizing. planning. Product design and process selection are examples of _______ decisions. internationalization D. system design D. directing. operating. entrepreneurial ship 47. organizing.Introduction to Operations Management 45. and reviewing B. procuring. organizing. and reviewing E. Which one of the following would not generally be classified under the heading of transformation? A. forecasting. staffing. downsized B. staffing. assembling B. farming E. designing and operating 1-8 .Chapter 01 . planning. and controlling D. tactical C. vertical integration E. forecasting 48. designing. outsourced C. teaching C. staffing D. system operation E. forecasting. Manufacturing work sent to other countries is called: A. planning. financial B. procuring. A. designing.

multi-level marketing 52. All of the above are true. Knowledge skills usually don't include: A. B. E. global knowledge E. C.Introduction to Operations Management 49. skilled workers 1-9 . What is credited with gains in industrial productivity. Which of the following is not true about systems approach? A. A systems approach is essential whenever something is being redesigned or improved. communication skills D. Production systems with customized outputs typically have relatively: A. high volumes of output B. A systems approach concentrates on efficiency within subsystems. personal computers B. low unit costs C. all of the above 50. increased standards of living and affordable products? A. assembly lines E. mass transportation D. high amount of specialized equipment D. A systems viewpoint is almost always beneficial in decision making. 51. process knowledge B. fast work movement E. accounting skills C. D. A systems approach emphasizes interrelationships among subsystems.Chapter 01 . the internet C.

a growth industry E. technological change 56. Which of the following is a recent trend in business? A.Introduction to Operations Management 53. total quality management C. Which of the following is not a characteristic of service operations? A. high labor content D. high customer contact C. low uniformity of output 55. measurement of productivity 54. Farming is an example of: A. a virtual organization C. supply chain management D. customized manufacturing 1-10 . Which is not a significant difference between manufacturing and service operations? A. easy measurement of productivity E.Chapter 01 . intangible output B. non-manufactured goods D. customer contact E. competition from foreign manufacturers E. labor content of jobs D. pollution control B. an obsolete activity B. cost per unit B. uniformity of output C.

analysis of variance E.Chapter 01 . Adam Smith phenomenon 59. decision table analysis 58. The process of comparing outputs to previously established standards to determine if corrective action is needed is called: A. analysis of tradeoffs B. Which of the following does not relate to system design? A. physical arrangement of departments 1-11 .Introduction to Operations Management 57. The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the: A. Dealing with the fact that certain aspects of any management situation are more important than others is called: A. Stevenson phenomenon D. Tellier phenomenon E. controlling D. Pareto phenomenon C. directing C. altering the system capacity B. inventory management D. selection and acquisition of equipment E. planning B. disciplining 60. location of facilities C. Irwin phenomenon B. budgeting E. sensitivity analysis C. recognition of priorities D.

threat of global warming D. flexibility. Illegal price discrimination B. Volume analysis D. A. 1-12 . They are easy to use and less expensive than dealing with the actual situation. flexibility and agility D. globalization B.Chapter 01 . pressure to be more efficient B. B. D. Which of the following is not a benefit of using models in decision making? A. E.Introduction to Operations Management 61. C. They provide a standardized format for analyzing a problem. Some companies attempt to maximize the revenue they receive from fixed operating capacity by influencing demands through price manipulation. This is an example of __________________: A. They serve as a consistent tool for evaluation. mass production for greater economies of scale E. technology. sustainability. quality improvement C. stabilization of demand 62. Outsourcing 63. offshoring. Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision-makers to consider ______________ in response to the ___________. Revenue management E. need to promote domestic production C. forecasting. Which of the following is not an ongoing trend in manufacturing? A. All of the above are benefits. Collusion C. None of the above is a benefit. impact of random variation E. technological advances 64.

value-adding E. internationalization. supply chain B. line 67. corporate intelligence 1-13 . inventory E. intercultural 66.Chapter 01 . lead time C. optimizing. productivity B. tactical C.Introduction to Operations Management 65. lean C. Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. outsourcing. offshoring. support D. budgeting E. Operations and sales are the two ________ functions in businesses. A. A. cash flow D. downsizing. strategic B. A. Marketing depends on operations for information regarding ___________. This increased level of _____________ is leading to increased emphasis on ____________ management. total quality D.

Variation can either be assignable or random. random variability E. 70.Introduction to Operations Management 68. Which of the following statements about variation is FALSE? A. A. randomized mean. Any variation makes a production process less productive. Random variation generally cannot be influenced by managers. Some variation can be prevented. normal distribution. C. Variation prevents a production process from being as efficient as it can be. random variation 69. productivity ratio. mean. correlation C. standardized deviation E. D. standard deviation B. E. all of the above 1-14 . standardized mean. Two widely used metrics of variation are the __________ and the _________. demand forecasts C. strategy B. capacity D. B.Chapter 01 . assignable deviation D. Which of the following is essential to consider with respect to managing a process to meet demand? A.

AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-01 Define the term operations management. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services. TRUE A nation is often only as competitive as its companies. FALSE Operation managers are not responsible for promoting goods/services.Introduction to Operations Management Chapter 01 Introduction to Operations Management Answer Key True / False Questions 1. Topic Area: Operations Today 1-15 . Often.Chapter 01 . the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nations. Topic Area: The Scope of Operations Management 2.

FALSE Most systems involve a blend of goods and services. FALSE Operations. marketing and finance are naturally dependent upon one another. Topic Area: Introduction 1-16 . Companies are either producing goods or delivering services. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-03 Identify similarities and differences between production and service operations. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-02 Identify the three major functional areas of organizations and describe how they interrelate. This means that only one of the two types of operations management strategies are used.Chapter 01 . and finance function independently of each other in most organizations. marketing. Topic Area: Introduction 4. Operations.Introduction to Operations Management 3.

AACSB: Reflective Thinking Bloom's: Understand Difficulty: Easy Learning Objective: 01-03 Identify similarities and differences between production and service operations. the more challenging the design and management of operations.Chapter 01 . Topic Area: Introduction 6.Introduction to Operations Management 5. Service operations require additional inventory because of the unpredictability of consumer demand. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-03 Identify similarities and differences between production and service operations. Topic Area: Introduction 1-17 . FALSE Service operations cannot use inventory as a hedge against unpredictable demand. The greater the degree of customer involvement. Topic Area: Introduction 7. TRUE Greater customer involvement leads to more complexity in the design and management of operations. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. FALSE Most systems involve a blend of goods and services. Goods producing organizations are not involved in service activities.

AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-06 Explain the key aspects of operations management decision making. TRUE Operations management requires a blend of knowledge and people skills. Topic Area: Introduction 9. People who work in the field of operations should have skills that include both knowledge and people skills. The value of outputs is measured by the prices customers are willing to pay for goods or services. but their use does not guarantee the best decisions. Topic Area: Operations Management and Decision Making 10. FALSE Models are useful. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. Topic Area: The Scope of Operations Management 1-18 . TRUE Customers' willingness to pay for goods or services sets the value of these outputs. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job.Introduction to Operations Management 8.Chapter 01 . The use of models will guarantee the best possible decisions.

The word "technology" is used only to refer to "information technology".Chapter 01 . Assembly lines achieved productivity but at the expense of standard of living. FALSE The operations manager plays a role in these decisions but is not primarily responsible for them. such as system capacity and location of facilities. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-08 Characterize current trends in business that impact operations management. Topic Area: The Scope of Operations Management 13. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Hard Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. Topic Area: The Historical Evolution of Operations Management 12. Topic Area: Operations Today 1-19 . The operations manager has primary responsibility for making operations system design decisions.Introduction to Operations Management 11. FALSE Technology also refers to the technology involved in resource transformations. FALSE Productivity and standard of living go hand in hand. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Hard Learning Objective: 01-07 Briefly describe the historical evolution of operations management.

Introduction to Operations Management 14. ‘Value added' by definition is always a positive number since 'added' implies increases. FALSE Materials cost must be considered in services as well. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials. Service often requires greater labor content. TRUE Service operations tend to be more labor-intensive than manufacturing. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-03 Identify similarities and differences between production and service operations. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-03 Identify similarities and differences between production and service operations. Topic Area: Introduction 15. FALSE Some transformations result in the output being worth less than the inputs.Chapter 01 . whereas manufacturing is more capital intensive. Topic Area: Introduction 16. Topic Area: Introduction 1-20 .

FALSE Special-purpose technology typically reduces costs through standardization.Chapter 01 . TRUE How standardized outputs will be is a critical consideration in the system design question. FALSE Operations are also relevant to not-for-profit organizations such as the Red Cross. Topic Area: Operations Management and Decision Making 19. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Hard Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. Topic Area: Introduction 1-21 . One concern in the design of production systems is the degree of standardization. Special-purpose technology is a common way of offering increased customization in manufacturing or services without taking on additional labor costs. Most people encounter operations only in profit-making organizations. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. Topic Area: Operations Today 18.Introduction to Operations Management 17.

Service involves a much higher degree of customer contact than manufacturing. TRUE Optimizing the performance of individual subsystems does not guarantee optimal performance from the overall system. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-06 Explain the key aspects of operations management decision making. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-03 Identify similarities and differences between production and service operations. TRUE Customer contact tends to be much higher in services.Introduction to Operations Management 20. TRUE Pareto phenomena can be observed in a wide variety of organization situations. A systems approach emphasizes interrelationships among subsystems. but its main theme is that the whole is greater than the sum of its individual parts. Topic Area: Introduction 21. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-06 Explain the key aspects of operations management decision making.Chapter 01 . Topic Area: Operations Management and Decision Making 22. The Pareto phenomenon is one of the most important and pervasive concepts that can be applied at all levels of management. Topic Area: Operations Management and Decision Making 1-22 .

AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-06 Explain the key aspects of operations management decision making. FALSE Just as other techniques do. FALSE Ethics issues are touching on all areas of management. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Hard Learning Objective: 01-06 Explain the key aspects of operations management decision making. who usually use quantitative approaches. quantitative techniques have limitations.Chapter 01 . are not really concerned with ethical decision-making. Topic Area: Operations Management and Decision Making 1-23 . TRUE Quantitative techniques have limitations that must be considered. The optimal solutions produced by quantitative techniques should always be evaluated in terms of the larger framework. Managers should most often rely on quantitative techniques for important decisions since quantitative approaches result in more accurate decisions.Introduction to Operations Management 23. Topic Area: Key Issues for Today's Business Operations 24. Topic Area: Operations Management and Decision Making 25. Operations managers. AACSB: Ethics Bloom's: Understand Difficulty: Medium Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. including operations.

Topic Area: The Historical Evolution of Operations Management 1-24 . TRUE After the Industrial Revolution. Many operations management decisions can be described as tradeoffs. Prior to the Industrial Revolution. FALSE Subsystem efficiency doesn't necessarily translate into overall efficiency. Topic Area: Operations Management and Decision Making 27. more standardized approaches became common.Chapter 01 . goods were produced primarily by craftsmen or their apprentices using custom made parts. A systems approach means that we concentrate on efficiency within a subsystem and thereby assure overall efficiency. Topic Area: Operations Management and Decision Making 28. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-06 Explain the key aspects of operations management decision making.Introduction to Operations Management 26. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-06 Explain the key aspects of operations management decision making. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-07 Briefly describe the historical evolution of operations management. TRUE Managing tradeoffs is the essence of operations management.

Topic Area: The Historical Evolution of Operations Management 31. IT and human resources. which emphasized the importance of the human element in job design. Operations management and marketing are the two functional areas that exist to support activities in other functions such as accounting. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-02 Identify the three major functional areas of organizations and describe how they interrelate. using the concept of interchangeable parts and division of labor.Introduction to Operations Management 29. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-07 Briefly describe the historical evolution of operations management. TRUE The Hawthorne Experiments were the beginning of the Human Relations Movement. Elton Mayo's "Hawthorne Experiment" was the focal point of the Human Relations Movement. Topic Area: Introduction 1-25 . finance.Chapter 01 . TRUE Ford made mass production a practical success. Topic Area: The Historical Evolution of Operations Management 30. FALSE Operations management and marketing are supported by these functions. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-07 Briefly describe the historical evolution of operations management. Among Ford's many contributions was the introduction of mass production.

Topic Area: Operations Management and Decision Making 34.Chapter 01 . complex phenomena.Introduction to Operations Management 32. Lean production systems incorporate the advantages of both mass production and craft production. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-08 Characterize current trends in business that impact operations management. a model is a simplified version of a real phenomenon. Topic Area: The Historical Evolution of Operations Management 1-26 . As an abstraction of reality. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-06 Explain the key aspects of operations management decision making. Lean production systems use a highly skilled work force and flexible equipment. Topic Area: The Historical Evolution of Operations Management 33. TRUE Lean depends on a skilled workforce. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-08 Characterize current trends in business that impact operations management. TRUE Lean production blends the best of both worlds. TRUE Models are valuable abstractions and simplifications of real.

Topic Area: Key Issues for Today's Business Operations 37. and an internal network of flows to and between the operations function itself. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-08 Characterize current trends in business that impact operations management.external links with suppliers and customers. FALSE Operations management is just as important for service firms. Topic Area: The Historical Evolution of Operations Management 36.Chapter 01 . FALSE Lean concepts apply very well in service industries. TRUE Supply chain considerations are at play both in and beyond the modern firm. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-08 Characterize current trends in business that impact operations management.Introduction to Operations Management 35. The lean production philosophy has been slow to be adopted in service industries. Operations Management activities will be less important in the future because many firms are becoming service-oriented operations rather than goods producing operations. Topic Area: Key Issues for Today's Business Operations 1-27 . A modern firm has two supply chain considerations .

Topic Area: Introduction 1-28 .Chapter 01 . quantitative E. redundant B. hopefully most decisions made will be: A. none of the above Informed decisions incorporate all relevant issues. the shipping container C. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-03 Identify similarities and differences between production and service operations. minor in nature C. customer relations if a service organization Most firms are not pure service or manufacturing firms. Operations management involves continuous decision-making. they produce combinations of goods and services. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-06 Explain the key aspects of operations management decision making. the exterior wrapping B.Introduction to Operations Management Multiple Choice Questions 38. goods if a manufacturing organization E. A 'product package' consists of: A. Topic Area: Operations Management and Decision Making 39. informed D. a combination of goods and services D.

Business organizations consist of three major functions which. Marketing and Operations are these major functions. are mutually exclusive C. entertainment D. support one another B. Which of the following is not a type of operations? A. exist independently of each other D. storage/transportation C. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-02 Identify the three major functional areas of organizations and describe how they interrelate. communication E. Topic Area: Introduction 1-29 .Chapter 01 .Introduction to Operations Management 40. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-01 Define the term operations management. goods production B. function independently of each other E. all the above involve operations All of these involve taking inputs and transforming them. ideally: A. do not interface with each other Finance. Topic Area: Introduction 41.

Measurements taken at various points in the transformation process for control purposes are called: A. directions C. Technology choices seldom affect: A. Union activity can affect a firm's technology choices. E. Topic Area: Introduction 1-30 . union activity. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-08 Characterize current trends in business that impact operations management.Chapter 01 . B. plans B. productivity. flexibility. Topic Area: Operations Today 43. costs. C. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Hard Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. D. budgets Feedback is used to monitor and improve processes. quality. but not the other way around. feedback E.Introduction to Operations Management 42. controls D.

Topic Area: Introduction 45. and provision of funds are activities associated with the _______ function. purchasing D. Which one of the following would not generally be classified under the heading of transformation? A. marketing C. Topic Area: Process Management 1-31 . farming E. Budgeting. operation B. A. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Hard Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. analysis of investment proposals. assembling B.Chapter 01 . consulting Staffing doesn't involve transforming resources so much as it involves acquiring them.Introduction to Operations Management 44. finance E. internal audit These are the primary tasks for the finance function. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-02 Identify the three major functional areas of organizations and describe how they interrelate. staffing D. teaching C.

vertical integration E. Manufacturing work sent to other countries is called: A. Product design and process selection are examples of _______ decisions. Topic Area: The Scope of Operations Management 47. financial B. A. internationalization D. outsourced C.Chapter 01 . downsized B. tactical C. system design D. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-08 Characterize current trends in business that impact operations management. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Hard Learning Objective: 01-05 Summarize the two major aspects of process management.Introduction to Operations Management 46. system operation E. forecasting These major decisions affect decisions made at lower levels. entrepreneurial ship Outsourcing is increasingly a part of operations management. Topic Area: The Scope of Operations Management 1-32 .

designing. Topic Area: The Scope of Operations Management 1-33 . organizing. and reviewing B. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. procuring. accounting skills C. organizing. and controlling C. planning. and controlling D. staffing. process knowledge B. operating. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. forecasting. designing and operating The scope of operations management ranges across the organization. staffing. Topic Area: The Scope of Operations Management 49. and reviewing E. The responsibilities of the operations manager are: A. global knowledge E. directing.Chapter 01 . all of the above Communication skills generally are considered to be people skills. procuring. planning. organizing. planning. designing. Knowledge skills usually don't include: A. communication skills D.Introduction to Operations Management 48. forecasting.

mass transportation D. All of the above are true. assembly lines E. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Hard Learning Objective: 01-08 Characterize current trends in business that impact operations management. A systems approach emphasizes interrelationships among subsystems. multi-level marketing Mass production has played a prominent role in increasing standards of living. C. E. the internet C. Subsystem efficiency doesn't necessarily translate into overall system efficiency. A systems approach concentrates on efficiency within subsystems.Chapter 01 . D. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-06 Explain the key aspects of operations management decision making. Topic Area: Operations Management and Decision Making 51. A systems approach is essential whenever something is being redesigned or improved.Introduction to Operations Management 50. increased standards of living and affordable products? A. Topic Area: The Historical Evolution of Operations Management 1-34 . What is credited with gains in industrial productivity. personal computers B. B. Which of the following is not true about systems approach? A. A systems viewpoint is almost always beneficial in decision making.

high amount of specialized equipment D. low unit costs C. Topic Area: Operations Management and Decision Making 53. fast work movement E. customer contact E. Topic Area: Introduction 1-35 . AACSB: Reflective Thinking Bloom's: Remember Difficulty: Hard Learning Objective: 01-06 Explain the key aspects of operations management decision making.Introduction to Operations Management 52. Production systems with customized outputs typically have relatively: A. skilled workers Skilled workers are necessary to accommodate the variation inherent in customized outputs. measurement of productivity Manufacturing operations aren't necessarily more or less efficient than service operations. labor content of jobs D. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Hard Learning Objective: 01-03 Identify similarities and differences between production and service operations.Chapter 01 . Which is not a significant difference between manufacturing and service operations? A. high volumes of output B. uniformity of output C. cost per unit B.

Topic Area: Key Issues for Today's Business Operations 1-36 . easy measurement of productivity E. total quality management C. technological change Supply chain management involves a broader systemic view of operations. competition from foreign manufacturers E. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-03 Identify similarities and differences between production and service operations. supply chain management D. Which of the following is not a characteristic of service operations? A. high labor content D. Topic Area: Introduction 55. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-08 Characterize current trends in business that impact operations management. pollution control B. intangible output B. low uniformity of output The productivity of service operations is often hard to measure. high customer contact C.Chapter 01 . Which of the following is a recent trend in business? A.Introduction to Operations Management 54.

Chapter 01 . AACSB: Reflective Thinking Bloom's: Remember Difficulty: Hard Learning Objective: 01-06 Explain the key aspects of operations management decision making. recognition of priorities D. an obsolete activity B. a growth industry E. sensitivity analysis C. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-03 Identify similarities and differences between production and service operations. analysis of tradeoffs B. customized manufacturing Farm operations are not manufacturing operations.Introduction to Operations Management 56. decision table analysis Solutions tend to be targeted toward higher priority aspects of a situation. analysis of variance E. Topic Area: Operations Management and Decision Making 1-37 . Dealing with the fact that certain aspects of any management situation are more important than others is called: A. Topic Area: Introduction 57. Farming is an example of: A. non-manufactured goods D. a virtual organization C.

Chapter 01 . The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the: A. directing C. controlling D." AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-06 Explain the key aspects of operations management decision making. disciplining Controls are used to maintain performance.Introduction to Operations Management 58. planning B. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Hard Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. Tellier phenomenon E. Adam Smith phenomenon Pareto phenomena direct our attention to the difference between the "important few" and the "trivial many. Topic Area: The Scope of Operations Management 1-38 . Pareto phenomenon C. Stevenson phenomenon D. The process of comparing outputs to previously established standards to determine if corrective action is needed is called: A. Topic Area: Operations Management and Decision Making 59. Irwin phenomenon B. budgeting E.

AACSB: Reflective Thinking Bloom's: Understand Difficulty: Hard Learning Objective: 01-06 Explain the key aspects of operations management decision making. pressure to be more efficient B. sustainability. Which of the following does not relate to system design? A. technology. physical arrangement of departments Inventory management is a system operation decision area. forecasting. Topic Area: The Scope of Operations Management 61.Chapter 01 . need to promote domestic production C. altering the system capacity B. offshoring. Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision-makers to consider ______________ in response to the ___________. flexibility. selection and acquisition of equipment E. inventory management D. threat of global warming D. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-05 Summarize the two major aspects of process management. stabilization of demand Sustainability is a relatively recent operations management consideration. A. location of facilities C. Topic Area: Operations Management and Decision Making 1-39 . impact of random variation E.Introduction to Operations Management 60.

globalization B.Introduction to Operations Management 62. quality improvement C. Topic Area: Key Issues for Today's Business Operations 1-40 .Chapter 01 . technological advances Manufacturers are moving away from mass production for economies of scale. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-08 Characterize current trends in business that impact operations management. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 01-08 Characterize current trends in business that impact operations management. Some companies attempt to maximize the revenue they receive from fixed operating capacity by influencing demands through price manipulation. Volume analysis D. Topic Area: Operations Today 63. Illegal price discrimination B. Revenue management E. Collusion C. This is an example of __________________: A. mass production for greater economies of scale E. flexibility and agility D. Which of the following is not an ongoing trend in manufacturing? A. Outsourcing Revenue management is used to ensure that as much perishable capacity as possible is sold.

AACSB: Reflective Thinking Bloom's: Remember Difficulty: Hard Learning Objective: 01-06 Explain the key aspects of operations management decision making. outsourcing. C. and its suppliers. B. They serve as a consistent tool for evaluation. They provide a standardized format for analyzing a problem. Models are useful tools for making decisions without confronting the actual situation with all of its complexity. Which of the following is not a benefit of using models in decision making? A. total quality D. inventory E. None of the above is a benefit. supply chain B. Topic Area: Operations Management and Decision Making 65. its operations. Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. downsizing. All of the above are benefits. They are easy to use and less expensive than dealing with the actual situation.Introduction to Operations Management 64. This increased level of _____________ is leading to increased emphasis on ____________ management. E. internationalization. offshoring. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-08 Characterize current trends in business that impact operations management.Chapter 01 . lean C. A. optimizing. Topic Area: Key Issues for Today's Business Operations 1-41 . D. intercultural Supply chain management takes a more systemic view of the firm.

line Others are support functions. support D. Operations and sales are the two ________ functions in businesses. productivity B. lead time C. value-adding E.Introduction to Operations Management 66. cash flow D. Topic Area: Why Learn about Operations Management? 67. Topic Area: Why Learn about Operations Management? 1-42 . tactical C. corporate intelligence Marketing uses lead time information to make promises to customers. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. A. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-02 Identify the three major functional areas of organizations and describe how they interrelate.Chapter 01 . A. budgeting E. strategic B. Marketing depends on operations for information regarding ___________.

Topic Area: Process Management 69. The choice to offer customers greater variety might increase variation but increase productivity even more. C. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 01-04 Describe the operations function and the nature of the operations manager's job. correlation C. normal distribution. randomized mean. mean. productivity ratio. assignable deviation D. Variation prevents a production process from being as efficient as it can be. Random variation generally cannot be influenced by managers. standard deviation B. Some variation can be prevented. standardized mean. Two widely used metrics of variation are the __________ and the _________. Topic Area: Process Management 1-43 . Any variation makes a production process less productive. random variation The mean and standard deviation summarize important facets regarding the variation in a process.Introduction to Operations Management 68. D. standardized deviation E. Which of the following statements about variation is FALSE? A. AACSB: Reflective Thinking Bloom's: Understand Difficulty: Hard Learning Objective: 01-05 Summarize the two major aspects of process management. A. Variation can either be assignable or random. E.Chapter 01 . B.

Topic Area: Process Management 1-44 . demand forecasts C. all of the above All of these play a role in determining whether a process can meet demand.Introduction to Operations Management 70.Chapter 01 . AACSB: Reflective Thinking Bloom's: Understand Difficulty: Medium Learning Objective: 01-05 Summarize the two major aspects of process management. random variability E. strategy B. capacity D. Which of the following is essential to consider with respect to managing a process to meet demand? A.

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