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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. FALSE
Difficulty: Easy TLO: 4 Taxonomy: Knowledge
2. Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nations. TRUE
Difficulty: Easy TLO: 1 Taxonomy: Knowledge
3. Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used. FALSE
Difficulty: Medium TLO: 3 Taxonomy: Application
Operations. The greater the degree of customer involvement. Goods producing organizations are not involved in service activities FALSE Difficulty: Medium TLO: 3 Taxonomy: Knowledge 7.Chapter 01 .Introduction to Operations Management 4. marketing. FALSE Difficulty: Easy TLO: 3 Taxonomy: Knowledge 1-2 . and finance function independently of each other in most organizations. Service operations require additional inventory because of the unpredictability of consumer demand. TRUE Difficulty: Easy TLO: 4 Taxonomy: Application 6. the more challenging the design and management of operations. FALSE Difficulty: Medium TLO: 2 Taxonomy: Knowledge 5.
TRUE Difficulty: Easy TLO: 4 Taxonomy: Knowledge 9. The value of outputs is measured by the prices customers are willing to pay for goods or services.Chapter 01 .Introduction to Operations Management 8. The use of models will guarantee the best possible decisions. People who work in the field of operations should have skills that include both knowledge and people skills. Assembly lines achieved productivity but at the expense of standard of living. FALSE AACSB: RT Difficulty: Hard TLO: 7 Taxonomy: Synthesis 1-3 . TRUE AACSB: RT Difficulty: Medium TLO: 4 Taxonomy: Synthesis 11. FALSE Difficulty: Medium TLO: 6 Taxonomy: Synthesis 10.
such as system capacity and location of facilities. whereas manufacturing is more capital intensive. FALSE AACSB: UIT Difficulty: Easy TLO: 8 Taxonomy: Knowledge 14. Service often requires greater labor content. FALSE Difficulty: Hard TLO: 4 Taxonomy: Knowledge 13. The operations manager has primary responsibility for making operations system design decisions. The word "technology" is used only to refer to 'information technology'.Introduction to Operations Management 12.Chapter 01 . FALSE Difficulty: Medium TLO: 4 Taxonomy: Synthesis 15. ‘Value added' by definition is always a positive number since 'added' implies increases. TRUE Difficulty: Medium TLO: 3 Taxonomy: Knowledge 1-4 .
Most people encounter operations only in profit-making organizations. Service involves a much higher degree of customer contact than manufacturing.Introduction to Operations Management 16. One method of classifying production systems is the degree of standardization. FALSE Difficulty: Medium TLO: 3 Taxonomy: Synthesis 17. TRUE Difficulty: Easy TLO: 4 Taxonomy: Knowledge 19. FALSE Difficulty: Medium TLO: 4 Taxonomy: Knowledge 20.Chapter 01 . TRUE Difficulty: Easy TLO: 3 Taxonomy: Knowledge 1-5 . FALSE AACSB: RT Difficulty: Hard TLO: 4 Taxonomy: Synthesis 18. Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials. Special-purpose technology is a common way of offering increased customization in manufacturing or services without taking on additional labor costs.
but its main theme is that the whole is greater than the sum of its individual parts. who usually use quantitative approaches. The Pareto phenomenon is one of the most important and pervasive concepts that can be applied at all levels of management. are not really concerned with ethical decision-making. A systems approach emphasizes interrelationships among subsystems. FALSE AACSB: EU Difficulty: Medium TLO: 4 Taxonomy: Synthesis 24. TRUE AACSB: RT Difficulty: Medium TLO: 6 Taxonomy: Application 1-6 .Introduction to Operations Management 21. TRUE Difficulty: Medium TLO: 6 Taxonomy: Knowledge 22.Chapter 01 . TRUE Difficulty: Medium TLO: 6 Taxonomy: Knowledge 23. The optimal solutions produced by quantitative techniques should always be evaluated in terms of the larger framework. Operations managers.
Managers should most often rely on quantitative techniques for important decisions since quantitative approaches result in more accuratedecisions.Introduction to Operations Management 25. Many operations management decisions can be described as tradeoffs. FALSE Difficulty: Medium TLO: 6 Taxonomy: Synthesis 28.Chapter 01 . TRUE Difficulty: Medium TLO: 6 Taxonomy: Knowledge 27. Prior to the Industrial Revolution. FALSE Difficulty: Hard TLO: 6 Taxonomy: Synthesis 26. A systems approach means that we concentrate on efficiency within a subsystem and thereby assure overall efficiency. goods were produced primarily by craftsmen or their apprentices using custom made parts. TRUE Difficulty: Medium TLO: 7 Taxonomy: Knowledge 1-7 .
Elton Mayo's "Hawthorne Experiment" was the focal point of the Human Relations Movement. FALSE Difficulty: Medium TLO: 2 Taxonomy: Synthesis 32. Lean production systems incorporate the advantages of both mass production and craft production. TRUE Difficulty: Easy TLO: 7 Taxonomy: Knowledge 31. TRUE Difficulty: Medium TLO: 7 Taxonomy: Knowledge 30.Chapter 01 .Introduction to Operations Management 29. 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. IT and human resources. Among Ford's many contributions was the introduction of mass production. finance. using the concept of interchangeable parts and division of labor. TRUE Difficulty: Medium TLO: 8 Taxonomy: Knowledge 1-8 .
Lean production systems use a highly skilled work force and flexible equipment.Chapter 01 . FALSE Difficulty: Medium TLO: 8 Taxonomy: Knowledge 36. TRUE Difficulty: Easy TLO: 8 Taxonomy: Knowledge 35. FALSE Difficulty: Medium TLO: 8 Taxonomy: Synthesis 37. As an abstraction of reality. The lean production philosophy has been slow to be adopted in service industries. TRUE Difficulty: Easy TLO: 6 Taxonomy: Knowledge 34. and an internal network of flows to and between the operations function itself. A modern firm has two supply chain considerations – external links with suppliers and customers. Operations Management activities will be less important in the future because many firms are becoming service-oriented operations rather than goods producing operations.Introduction to Operations Management 33. TRUE Difficulty: Easy TLO: 4 Taxonomy: Knowledge 1-9 . a model is a simplified version of a real phenomenon.
Operations management involves continuous decision-making. goods if a manufacturing organization E. informed D. redundant B. the exterior wrapping B. none of the above Difficulty: Easy TLO: 6 Taxonomy: Knowledge 39. are mutually exclusive C. minor in nature C.Introduction to Operations Management Multiple Choice Questions 38. ideally: A. support one another B. do not interface with each other Difficulty: Medium TLO: 2 Taxonomy: Knowledge 1-10 . customer relations if a service organization AACSB: RT Difficulty: Medium TLO: 3 Taxonomy: Knowledge 40.Chapter 01 . hopefully most decisions made will be: A. function independently of each other E. the shipping container C. quantitative E. exist independently of each other D. A 'product package' consists of: A. a combination of goods and services D. Business organizations consist of three major functions which.
directions C. E. D. quality. union activity. plans B. C.Introduction to Operations Management 41. B. Technology choices seldom affect: A. Which of the following is not a type of operations? A. budgets Difficulty: Hard TLO: 4 Taxonomy: Knowledge 1-11 . Measurements taken at various points in the transformation process for control purposes are called: A. controls D. goods production B.Chapter 01 . storage/transportation C. productivity. flexibility. entertainment D. communication E. costs. feedback E. all the above involve operations Difficulty: Medium TLO: 1 Taxonomy: Knowledge 42. AACSB: UIT Difficulty: Medium TLO: 8 Taxonomy: Application 43.
Introduction to Operations Management 44. operation B. finance E. farming E.Chapter 01 . staffing D. Budgeting. marketing C. and provision of funds are activities associated with the _______ function. purchasing D. internal audit Difficulty: Easy TLO: 2 Taxonomy: Knowledge 45. outsourced C. Which one of the following would not generally be classified under the heading of transformation? A. A. analysis of investment proposals. assembling B. downsized B. consulting Difficulty: Hard TLO: 4 Taxonomy: Synthesis 46. teaching C. internationalization D. Manufacturing work sent to other countries is called: A. vertical integration E. entrepreneurial ship AACSB: MD Difficulty: Medium TLO: 8 Taxonomy: Knowledge 1-12 .
accounting skills C. financial B. organizing. organizing. and controlling D. system design D.Chapter 01 . and reviewing B. directing. planning. forecasting. operating. procuring. procuring. all of the above Difficulty: Medium TLO: 4 Taxonomy: Synthesis 1-13 . planning. communication skills D. and controlling C. system operation E. staffing. designing. designing and operating Difficulty: Medium TLO: 4 Taxonomy: Knowledge 49. tactical C. designing. The responsibilities of the operations manager are: A. global knowledge E. planning.Introduction to Operations Management 47. Product design and process selection are examples of decisions that are: A. staffing. organizing. and reviewing E. process knowledge B. forecasting. forecasting Difficulty: Hard TLO: 5 Taxonomy: Knowledge 48. Knowledge skills usually don't include: A.
What is credited with gains in industrial productivity. fast work movement E. high amount of specialized equipment D. A systems viewpoint is almost always beneficial in decision making. C. D. mass transportation D. All of the above are true. E. high volumes of output B. A systems approach concentrates on efficiency within subsystems. Difficulty: Medium TLO: 6 Taxonomy: Synthesis 51. assembly lines E. A systems approach is essential whenever something is being redesigned or improved. B. Production systems with customized outputs typically have relatively: A. Which of the following is not true about systems approach? A. personal computers B. multi-level marketing AACSB: EU Difficulty: Hard TLO: 8 Taxonomy: Knowledge 52.Introduction to Operations Management 50. skilled workers Difficulty: Hard TLO: 6 Taxonomy: Knowledge 1-14 . A systems approach emphasizes interrelationships among subsystems.Chapter 01 . low unit costs C. the internet C. increased standards of living and affordable products? A.
Which of the following is not a characteristic of service operations? A. total quality management C. Which of the following is a recent trend in business? A. easy measurement of productivity E. intangible output B. pollution control B. high customer contact C. labor content of jobs D. technological change Difficulty: Medium TLO: 8 Taxonomy: Knowledge 1-15 . Which is not a significant difference between manufacturing and service operations? A. customer contact E. uniformity of output C. measurement of productivity AACSB: AS Difficulty: Hard TLO: 3 Taxonomy: Knowledge 54. supply chain management D.Chapter 01 . low uniformity of output AACSB: AS Difficulty: Medium TLO: 3 Taxonomy: Knowledge 55.Introduction to Operations Management 53. high labor content D. competition from foreign manufacturers E. cost per unit B.
a virtual organization C. analysis of tradeoffs B. Tellier phenomenon E. Pareto phenomenon C. customized manufacturing Difficulty: Medium TLO: 3 Taxonomy: Knowledge 57. a growth industry E.Introduction to Operations Management 56. decision table analysis AACSB: RT Difficulty: Hard TLO: 6 Taxonomy: Knowledge 58. non-manufactured goods D. 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. sensitivity analysis C. analysis of variance E. an obsolete activity B. Dealing with the fact that certain aspects of any management situation are more important than others is called: A. Stevenson phenomenon D.Chapter 01 . Farming is an example of: A. Irwin phenomenon B. recognition of priorities D. Adam Smith phenomenon AACSB: AS Difficulty: Medium TLO: 6 Taxonomy: Knowledge 1-16 .
impact of random variation E. altering the system capacity B. forecasting. pressure to be more efficient B. physical arrangement of departments Difficulty: Medium TLO: 5 Taxonomy: Knowledge 61. stabilization of demand AACSB: EU Difficulty: Hard TLO: 6 Taxonomy: Knowledge 1-17 . need to promote domestic production C. location of facilities C. threat of global warming D. flexibility.Introduction to Operations Management 59. The process of comparing outputs to previously established standards to determine if corrective action is needed is called: A. budgeting E. sustainability. inventory management D. directing C. technology. planning B. A. Which of the following does not relate to system design? A. disciplining Difficulty: Hard TLO: 4 Taxonomy: Knowledge 60. offshoring. selection and acquisition of equipment E. controlling D. Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision-makers to consider ______________ in response to the ____________.Chapter 01 .
Revenue management E. Collusion C. Outsourcing AACSB: EU Difficulty: Medium TLO: 8 Taxonomy: Knowledge 63. technological advances Difficulty: Medium TLO: 8 Taxonomy: Knowledge 64. Some companies attempt to maximize the revenue they receive from fixed operating capacity by influencing demands through price manipulation. None of the above is a benefit. quality improvement C. They are easy to use and less expensive than dealing with the actual situation. They provide a standardized format for analyzing a problem. Which of the following is not a benefit of using models in decision making? A. Which of the following is not an ongoing trend in manufacturing? A. globalization B. B. This is an example of _________________: A.Introduction to Operations Management 62. D. All of the above are benefits. AACSB: CA Difficulty: Hard TLO: 6 Taxonomy: Synthesis 1-18 .Chapter 01 . They serve as a consistent tool for evaluation. E. mass production for greater economies of scale E. C. Volume analysis D. Illegal price discrimination B. flexibility and agility D.
supply chain B. inventory E. offshoring. optimizing. downsizing. lean C. outsourcing.Chapter 01 . internationalization. This increased level of _____________ is leading to increased emphasis on ____________ management. A. total quality D. intercultural Difficulty: Medium TLO: 8 Taxonomy: Knowledge 1-19 .Introduction to Operations Management 65. Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves.
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