Test Bank For Operations Management, 11th Edition

Name: Test Bank For Operations Management, 11th Edition
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Find everything you need to prepare for your exams in Test Bank For Operations Management, 11th Edition, a comprehensive guide filled with solved questions.

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Chapter 01 - Introduction to Operations Management
1-1
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

Chapter 01 - Introduction to Operations Management
1-2
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

Chapter 01 - Introduction to Operations Management
1-3
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

Chapter 01 - Introduction to Operations Management
1-4
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

Chapter 01 - Introduction to Operations Management
1-5
30. Among Ford's many contributions was the introduction of mass production, using the
concept of interchangeable parts and division of labor.
True False
31. 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.
True False
32. Lean production systems incorporate the advantages of both mass production and craft
production.
True False
33. As an abstraction of reality, a model is a simplified version of a real phenomenon.
True False
34. Lean production systems use a highly skilled work force and flexible equipment.
True False
35. The lean production philosophy has been slow to be adopted in service industries.
True False
36. 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

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Chapter 01 - Introduction to Operations Management
1-6
37. 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 False
Multiple Choice Questions
38. 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
39. 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
40. 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

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Chapter 01 - Introduction to Operations Management
1-7
41. 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
42. Technology choices seldom affect:
A. costs.
B. productivity.
C. union activity.
D. quality.
E. flexibility.
43. Measurements taken at various points in the transformation process for control purposes
are called:
A. plans
B. directions
C. controls
D. feedback
E. budgets
44. 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

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Chapter 01 - Introduction to Operations Management
1-8
45. 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
46. Manufacturing work sent to other countries is called:
A. downsized
B. outsourced
C. internationalization
D. vertical integration
E. entrepreneurial ship
47. Product design and process selection are examples of _______ decisions.
A. financial
B. tactical
C. system design
D. system operation
E. forecasting
48. 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

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Chapter 01 - Introduction to Operations Management
1-9
49. Knowledge skills usually don't include:
A. process knowledge
B. accounting skills
C. communication skills
D. global knowledge
E. all of the above
50. 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.
51. 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
52. 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

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Chapter 01 - Introduction to Operations Management
1-10
53. 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
54. 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
55. 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
56. Farming is an example of:
A. an obsolete activity
B. a virtual organization
C. non-manufactured goods
D. a growth industry
E. customized manufacturing

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Chapter 01 - Introduction to Operations Management
1-11
57. 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
58. 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
59. 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
60. 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

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Chapter 01 - Introduction to Operations Management
1-12
61. 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
62. 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
63. 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
64. 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.

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Chapter 01 - Introduction to Operations Management
1-13
65. 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
66. Operations and sales are the two ________ functions in businesses.
A. strategic
B. tactical
C. support
D. value-adding
E. line
67. Marketing depends on operations for information regarding ___________.
A. productivity
B. lead time
C. cash flow
D. budgeting
E. corporate intelligence

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

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Chapter 01 - Introduction to Operations Management
1-15
Chapter 01 Introduction to Operations Management Answer Key
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
Operation managers are not responsible for promoting goods/services.
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
2. Often, the collective success or failure of companies' operations functions will impact the
ability of a nation to compete with other nations.
TRUE
A nation is often only as competitive as its companies.
AACSB: Reflective Thinking
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-01 Define the term operations management.
Topic Area: Operations Today

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