Introduction to Operations Management Question

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
 

  1. 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
 

  1. 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
 

  1. Operations, marketing, and finance function independently of each other in most organizations. 
    FALSE


Difficulty: Medium
TLO: 2
Taxonomy: Knowledge
 

  1. The greater the degree of customer involvement, the more challenging the design and management of operations. 
    TRUE


Difficulty: Easy
TLO: 4
Taxonomy: Application
 

  1. Goods producing organizations are not involved in service activities 
    FALSE


Difficulty: Medium
TLO: 3
Taxonomy: Knowledge
 

  1. Service operations require additional inventory because of the unpredictability of consumer demand. 
    FALSE


Difficulty: Easy
TLO: 3
Taxonomy: Knowledge
 

  1. The value of outputs is measured by the prices customers are willing to pay for goods or services. 
    TRUE


Difficulty: Easy
TLO: 4
Taxonomy: Knowledge
 

  1. The use of models will guarantee the best possible decisions. 
    FALSE


Difficulty: Medium
TLO: 6
Taxonomy: Synthesis
 

  1. People who work in the field of operations should have skills that include both knowledge and people skills. 
    TRUE


AACSB: RT
Difficulty: Medium
TLO: 4
Taxonomy: Synthesis
 

  1. Assembly lines achieved productivity but at the expense of standard of living. 
    FALSE


AACSB: RT
Difficulty: Hard
TLO: 7
Taxonomy: Synthesis
 

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


Difficulty: Hard
TLO: 4
Taxonomy: Knowledge
 

  1. The word "technology" is used only to refer to 'information technology'. 
    FALSE


AACSB: UIT
Difficulty: Easy
TLO: 8
Taxonomy: Knowledge
 

  1. ‘Value added' by definition is always a positive number since 'added' implies increases. 
    FALSE


Difficulty: Medium
TLO: 4
Taxonomy: Synthesis
 

  1. Service often requires greater labor content, whereas manufacturing is more capital intensive. 
    TRUE


Difficulty: Medium
TLO: 3
Taxonomy: Knowledge
 

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


Difficulty: Medium
TLO: 3
Taxonomy: Synthesis
 

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


AACSB: RT
Difficulty: Hard
TLO: 4
Taxonomy: Synthesis
 

  1. One method of classifying production systems is the degree of standardization. 
    TRUE


Difficulty: Easy
TLO: 4
Taxonomy: Knowledge
 

  1. Most people encounter operations only in profit-making organizations. 
    FALSE


Difficulty: Medium
TLO: 4
Taxonomy: Knowledge
 

  1. Service involves a much higher degree of customer contact than manufacturing. 
    TRUE


Difficulty: Easy
TLO: 3
Taxonomy: Knowledge
 

  1. 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


Difficulty: Medium
TLO: 6
Taxonomy: Knowledge
 

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


Difficulty: Medium
TLO: 6
Taxonomy: Knowledge
 

  1. Operations managers, who usually use quantitative approaches, are not really concerned with ethical decision-making. 
    FALSE


AACSB: EU
Difficulty: Medium
TLO: 4
Taxonomy: Synthesis
 

  1. The optimal solutions produced by quantitative techniques should always be evaluated in terms of the larger framework. 
    TRUE


AACSB: RT
Difficulty: Medium
TLO: 6
Taxonomy: Application
 

  1. Managers should most often rely on quantitative techniques for important decisions since quantitative approaches result in more accuratedecisions. 
    FALSE


Difficulty: Hard
TLO: 6
Taxonomy: Synthesis
 

  1. Many operations management decisions can be described as tradeoffs. 
    TRUE


Difficulty: Medium
TLO: 6
Taxonomy: Knowledge
 

  1. A systems approach means that we concentrate on efficiency within a subsystem and thereby assure overall efficiency. 
    FALSE


Difficulty: Medium
TLO: 6
Taxonomy: Synthesis
 

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


Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
 

  1. 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


Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
 

  1. Among Ford's many contributions was the introduction of mass production, using the concept of interchangeable parts and division of labor.
     
    TRUE


Difficulty: Easy
TLO: 7
Taxonomy: Knowledge
 

  1. Operations management and marketing are the two functional areas that exist to support activities in other functions such as accounting, finance, IT and human resources. 
    FALSE


Difficulty: Medium
TLO: 2
Taxonomy: Synthesis
 

  1. Lean production systems incorporate the advantages of both mass production and craft production. 
    TRUE


Difficulty: Medium
TLO: 8
Taxonomy: Knowledge
 

  1. As an abstraction of reality, a model is a simplified version of a real phenomenon. 
    TRUE


Difficulty: Easy
TLO: 6
Taxonomy: Knowledge
 

  1. Lean production systems use a highly skilled work force and flexible equipment.
     
    TRUE


Difficulty: Easy
TLO: 8
Taxonomy: Knowledge
 

  1. The lean production philosophy has been slow to be adopted in service industries. 
    FALSE


Difficulty: Medium
TLO: 8
Taxonomy: Knowledge
 

  1. Operations Management activities will be less important in the future because many firms are becoming service-oriented operations rather than goods producing operations. 
    FALSE


Difficulty: Medium
TLO: 8
Taxonomy: Synthesis
 

  1. A modern firm has two supply chain considerations – external links with suppliers and customers, and an internal network of flows to and between the operations function itself. 
    TRUE


Difficulty: Easy
TLO: 4
Taxonomy: Knowledge
 


Multiple Choice Questions
 

  1. Operations management involves continuous decision-making; hopefully most decisions made will be: 
    A.redundant
    B. minor in nature
    C. informed
    D. quantitative
    E. none of the above


Difficulty: Easy
TLO: 6
Taxonomy: Knowledge
 

  1. A 'product package' consists of: 
    A.the exterior wrapping
    B. the shipping container
    C. a combination of goods and services
    D. goods if a manufacturing organization
    E. customer relations if a service organization


AACSB: RT
Difficulty: Medium
TLO: 3
Taxonomy: Knowledge
 

  1. Business organizations consist of three major functions which, ideally: 
    A.support one another
    B. are mutually exclusive
    C. exist independently of each other
    D. function independently of each other
    E. do not interface with each other


Difficulty: Medium
TLO: 2
Taxonomy: Knowledge
 

  1. Which of the following is not a type of operations? 
    A.goods production
    B. storage/transportation
    C. entertainment
    D. communication
    E. all the above involve operations


Difficulty: Medium
TLO: 1
Taxonomy: Knowledge
 

  1. Technology choices seldom affect: 
    A.costs.
    B. productivity.
    C. union activity.
    D. quality.
    E. flexibility.


AACSB: UIT
Difficulty: Medium
TLO: 8
Taxonomy: Application
 

  1. Measurements taken at various points in the transformation process for control purposes are called: 
    A.plans
    B. directions
    C. controls
    D. feedback
    E. budgets


Difficulty: Hard
TLO: 4
Taxonomy: Knowledge
 

  1. Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function. 
    A.operation
    B. marketing
    C. purchasing
    D. finance
    E. internal audit


Difficulty: Easy
TLO: 2
Taxonomy: Knowledge
 

  1. Which one of the following would not generally be classified under the heading of transformation? 
    A.assembling
    B. teaching
    C. staffing
    D. farming
    E. consulting


Difficulty: Hard
TLO: 4
Taxonomy: Synthesis
 

  1. Manufacturing work sent to other countries is called: 
    A.downsized
    B. outsourced
    C. internationalization
    D. vertical integration
    E. entrepreneurial ship


AACSB: MD
Difficulty: Medium
TLO: 8
Taxonomy: Knowledge
 

  1. Product design and process selection are examples of decisions that are: 
    A.financial
    B. tactical
    C. system design
    D. system operation
    E. forecasting


Difficulty: Hard
TLO: 5
Taxonomy: Knowledge
 

  1. The responsibilities of the operations manager are: 
    A.planning, organizing, staffing, procuring, and reviewing
    B. planning, organizing, staffing, directing, and controlling
    C. forecasting, designing, planning, organizing, and controlling
    D. forecasting, designing, operating, procuring, and reviewing
    E. designing and operating


Difficulty: Medium
TLO: 4
Taxonomy: Knowledge
 

  1. Knowledge skills usually don't include: 
    A.process knowledge
    B. accounting skills
    C. communication skills
    D. global knowledge
    E. all of the above


Difficulty: Medium
TLO: 4
Taxonomy: Synthesis
 

  1. Which of the following is not true about systems approach? 
    A.A systems viewpoint is almost always beneficial in decision making.
    B. A systems approach emphasizes interrelationships among subsystems.
    C. A systems approach concentrates on efficiency within subsystems.
    D. A systems approach is essential whenever something is being redesigned or improved.
    E. All of the above are true.


Difficulty: Medium
TLO: 6
Taxonomy: Synthesis
 

  1. What is credited with gains in industrial productivity, increased standards of living and affordable products? 
    A.personal computers
    B. the internet
    C. mass transportation
    D. assembly lines
    E. multi-level marketing


AACSB: EU
Difficulty: Hard
TLO: 8
Taxonomy: Knowledge
 

  1. Production systems with customized outputs typically have relatively: 
    A.high volumes of output
    B. low unit costs
    C. high amount of specialized equipment
    D. fast work movement
    E. skilled workers


Difficulty: Hard
TLO: 6
Taxonomy: Knowledge
 

  1. Which is not a significant difference between manufacturing and service operations? 
    A.cost per unit
    B. uniformity of output
    C. labor content of jobs
    D. customer contact
    E. measurement of productivity


AACSB: AS
Difficulty: Hard
TLO: 3
Taxonomy: Knowledge
 

  1. Which of the following is not a characteristic of service operations? 
    A.intangible output
    B. high customer contact
    C. high labor content
    D. easy measurement of productivity
    E. low uniformity of output


AACSB: AS
Difficulty: Medium
TLO: 3
Taxonomy: Knowledge
 

  1. Which of the following is a recent trend in business? 
    A.pollution control
    B. total quality management
    C. supply chain management
    D. competition from foreign manufacturers
    E. technological change


Difficulty: Medium
TLO: 8
Taxonomy: Knowledge
 

  1. Farming is an example of: 
    A.an obsolete activity
    B. a virtual organization
    C. non-manufactured goods
    D. a growth industry
    E. customized manufacturing


Difficulty: Medium
TLO: 3
Taxonomy: Knowledge
 

  1. Dealing with the fact that certain aspects of any management situation are more important than others is called: 
    A.analysis of tradeoffs
    B. sensitivity analysis
    C. recognition of priorities
    D. analysis of variance
    E. decision table analysis


AACSB: RT
Difficulty: Hard
TLO: 6
Taxonomy: Knowledge
 

  1. 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.Irwin phenomenon
    B. Pareto phenomenon
    C. Stevenson phenomenon
    D. Tellier phenomenon
    E. Adam Smith phenomenon


AACSB: AS
Difficulty: Medium
TLO: 6
Taxonomy: Knowledge
 

  1. The process of comparing outputs to previously established standards to determine if corrective action is needed is called: 
    A.planning
    B. directing
    C. controlling
    D. budgeting
    E. disciplining


Difficulty: Hard
TLO: 4
Taxonomy: Knowledge
 

  1. Which of the following does not relate to system design? 
    A.altering the system capacity
    B. location of facilities
    C. inventory management
    D. selection and acquisition of equipment
    E. physical arrangement of departments


Difficulty: Medium
TLO: 5
Taxonomy: Knowledge
 

  1. Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision-makers to consider ______________ in response to the ____________. 
    A.flexibility; pressure to be more efficient
    B. offshoring; need to promote domestic production
    C. sustainability; threat of global warming
    D. technology; impact of random variation
    E. forecasting; stabilization of demand


AACSB: EU
Difficulty: Hard
TLO: 6
Taxonomy: Knowledge
 

  1. 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.Illegal price discrimination
    B. Collusion
    C. Volume analysis
    D. Revenue management
    E. Outsourcing


AACSB: EU
Difficulty: Medium
TLO: 8
Taxonomy: Knowledge
 

  1. Which of the following is not an ongoing trend in manufacturing? 
    A.globalization
    B. quality improvement
    C. flexibility and agility
    D. mass production for greater economies of scale
    E. technological advances


Difficulty: Medium
TLO: 8
Taxonomy: Knowledge
 

  1. Which of the following is not a benefit of using models in decision making? 
    A.They provide a standardized format for analyzing a problem.
    B. They serve as a consistent tool for evaluation.
    C. They are easy to use and less expensive than dealing with the actual situation.
    D. All of the above are benefits.
    E. None of the above is a benefit.


AACSB: CA
Difficulty: Hard
TLO: 6
Taxonomy: Synthesis
 

  1. Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management. 
    A.outsourcing; supply chain
    B. offshoring; lean
    C. downsizing; total quality
    D. optimizing; inventory
    E. internationalization; intercultural


Difficulty: Medium
TLO: 8
Taxonomy: Knowledge
 

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