Chapter 01 – Introduction to Operations Management
1. Operations managers are responsible for assessing consumer wants and needs and selling
and promoting the organization’s goods or services.
2. Often, the collective success or failure of companies’ operations functions will impact the
ability of a nation to compete with other nations.
Chapter 01 – Introduction to Operations Management
3. Companies are either producing goods or delivering services. This means that only one of
the two types of operations management strategies are used.
4. Operations, marketing, and finance function independently of each other in most
organizations.
Chapter 01 – Introduction to Operations Management
5. The greater the degree of customer involvement, the more challenging the design and
management of operations.
6. Goods producing organizations are not involved in service activities.
7. Service operations require additional inventory because of the unpredictability of consumer
demand.
Chapter 01 – Introduction to Operations Management
8. The value of outputs is measured by the prices customers are willing to pay for goods or
services.
9. The use of models will guarantee the best possible decisions.
10. People who work in the field of operations should have skills that include both knowledge
and people skills.
Chapter 01 – Introduction to Operations Management
11. Assembly lines achieved productivity but at the expense of standard of living.
12. The operations manager has primary responsibility for making operations system design
decisions, such as system capacity and location of facilities.
13. The word “technology” is used only to refer to “information technology”.
Chapter 01 – Introduction to Operations Management
14. ‘Value added’ by definition is always a positive number since ‘added’ implies increases.
15. Service often requires greater labor content, whereas manufacturing is more capital
intensive.
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.
Chapter 01 – Introduction to Operations Management
17. Special-purpose technology is a common way of offering increased customization in
manufacturing or services without taking on additional labor costs.
18. One concern in the design of production systems is the degree of standardization.
19. Most people encounter operations only in profit-making organizations.
Chapter 01 – Introduction to Operations Management
20. Service involves a much higher degree of customer contact than manufacturing.
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.
22. The Pareto phenomenon is one of the most important and pervasive concepts that can be
applied at all levels of management.
Chapter 01 – Introduction to Operations Management
23. Operations managers, who usually use quantitative approaches, are not really concerned
with ethical decision-making.
24. The optimal solutions produced by quantitative techniques should always be evaluated in
terms of the larger framework.
25. Managers should most often rely on quantitative techniques for important decisions since
quantitative approaches result in more accurate decisions.
Chapter 01 – Introduction to Operations Management
26. Many operations management decisions can be described as tradeoffs.
27. A systems approach means that we concentrate on efficiency within a subsystem and
thereby assure overall efficiency.
28. Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their
apprentices using custom made parts.
Chapter 01 – Introduction to Operations Management
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.
30. Among Ford’s many contributions was the introduction of mass production, using the
concept of interchangeable parts and division of labor.
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.
Chapter 01 – Introduction to Operations Management
32. Lean production systems incorporate the advantages of both mass production and craft
production.
33. As an abstraction of reality, a model is a simplified version of a real phenomenon.
34. Lean production systems use a highly skilled work force and flexible equipment.
Chapter 01 – Introduction to Operations Management
35. The lean production philosophy has been slow to be adopted in service industries.
36. Operations Management activities will be less important in the future because many firms
are becoming service-oriented operations rather than goods producing operations.
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.
Chapter 01 – Introduction to Operations Management
38. Operations management involves continuous decision-making; hopefully most decisions
made will be:
39. A ‘product package’ consists of:
Chapter 01 – Introduction to Operations Management
40. Business organizations consist of three major functions which, ideally:
41. Which of the following is not a type of operations?