Chapter 1 Operations Management

“Value added” by definition is always a positive number since “added” implies increases.
T or F
False
The word “technology” is used only to refer to “information technology.”
T or F
False
People who work in the field of operations should have skills that include both knowledge and people skills.
T or F
True
Often, the collective success or failure of companies’ operations functions will impact the ability of a nation to compete with other nations.

T or F

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

D
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.

D
Farming is an example of:

A. an obsolete activity.

B. a virtual organization.

C. nonmanufactured goods.

D. a growth industry.

E. customized manufacturing.

C
Marketing depends on operations for information regarding:

A. productivity.

B. lead time.

C. cash flow.

D. budgeting.

E. corporate intelligence.

B
Product design and process selection are examples of _______ decisions.

A. financial

B. tactical

C. system design

D. system operation

E. forecasting

C
Dealing with the fact that certain aspects of any management situation are more important than others is called:

A. analysis of trade-offs.

B. sensitivity analysis.

C. recognition of priorities.

D. analysis of variance.

E. decision table analysis.

C
Which is not an area of 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

A
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

A
Which of the following principles emphasizes that actions should make the community as a whole better off?

A. The Rights Principle

B. The Fairness Principle

C. The Virtue Principle

D. The Common Good Principle

E. The Utilitarian Principle

D
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

C