Chapter 01
Introduction to Operations Management
True / False Questions
1. As a service business, the operations management activities of an airline company have
nothing in common with the operations management activities within a bicycle manufacturing
company.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Define the term operations management and identify operations management jobs.
Topic: 01-01 Introduction
2. Operations managers are responsible for managing activities and resources that produce
goods and/or provide services.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Define the term operations management and identify operations management jobs.
Topic: 01-01 Introduction
3. Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing
cost and time.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Define the term operations management and identify operations management jobs.
Topic: 01-01 Introduction
1-1
,4. Operations, marketing, and finance function independently of each other in most
organizations.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify the three major functions of organizations and describe how they interact.
Topic: 01-04 Functions within Organizations
5. The operations function exists only in firms that are goods-oriented.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Identify the three major functions of organizations and describe how they interact.
Topic: 01-04 Functions within Organizations
6. Operations management pertains almost exclusively to the management of manufacturing
operations.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Define the term operations management and identify operations management jobs.
Topic: 01-01 Introduction
7. Value-added refers to the cost of the inputs required to produce goods and services.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify the three major functions of organizations and describe how they interact.
Topic: 01-05 Operations
1-2
,8. As long as a product is ready in advance of when customers demand it, the timing of when
a product is manufactured does not influence the value-added.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify the three major functions of organizations and describe how they interact.
Topic: 01-05 Operations
9. Storing an item earlier than the scheduled delivery date is an example of a value adding
activity.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify the three major functions of organizations and describe how they interact.
Topic: 01-05 Operations
10. Management information systems (MIS) are concerned with providing management with
the information it needs to effectively manage.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Identify the three major functions of organizations and describe how they interact.
Topic: 01-08 Other Functions
11. Operations management involves both system design and planning/control decisions.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Describe the scope of operations management and provide an overview of this textbook; including differentiating
between design and planning/control decisions.
Topic: 01-09 The Scope of Operations Management
1-3
, 12. System design decisions have very little impact on planning/control decisions.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Describe the scope of operations management and provide an overview of this textbook; including differentiating
between design and planning/control decisions.
Topic: 01-09 The Scope of Operations Management
13. An example of an operations control decision is the choice of location.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-03 Describe the scope of operations management and provide an overview of this textbook; including differentiating
between design and planning/control decisions.
Topic: 01-09 The Scope of Operations Management
14. Scheduling jobs is a system design decision and not a planning decision.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Describe the scope of operations management and provide an overview of this textbook; including differentiating
between design and planning/control decisions.
Topic: 01-09 The Scope of Operations Management
15. Design decisions are usually strategic and long term, while planning decisions are tactical
and medium term.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Describe the scope of operations management and provide an overview of this textbook; including differentiating
between design and planning/control decisions.
Topic: 01-09 The Scope of Operations Management
1-4
Introduction to Operations Management
True / False Questions
1. As a service business, the operations management activities of an airline company have
nothing in common with the operations management activities within a bicycle manufacturing
company.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Define the term operations management and identify operations management jobs.
Topic: 01-01 Introduction
2. Operations managers are responsible for managing activities and resources that produce
goods and/or provide services.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Define the term operations management and identify operations management jobs.
Topic: 01-01 Introduction
3. Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing
cost and time.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Define the term operations management and identify operations management jobs.
Topic: 01-01 Introduction
1-1
,4. Operations, marketing, and finance function independently of each other in most
organizations.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify the three major functions of organizations and describe how they interact.
Topic: 01-04 Functions within Organizations
5. The operations function exists only in firms that are goods-oriented.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Identify the three major functions of organizations and describe how they interact.
Topic: 01-04 Functions within Organizations
6. Operations management pertains almost exclusively to the management of manufacturing
operations.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Define the term operations management and identify operations management jobs.
Topic: 01-01 Introduction
7. Value-added refers to the cost of the inputs required to produce goods and services.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify the three major functions of organizations and describe how they interact.
Topic: 01-05 Operations
1-2
,8. As long as a product is ready in advance of when customers demand it, the timing of when
a product is manufactured does not influence the value-added.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify the three major functions of organizations and describe how they interact.
Topic: 01-05 Operations
9. Storing an item earlier than the scheduled delivery date is an example of a value adding
activity.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify the three major functions of organizations and describe how they interact.
Topic: 01-05 Operations
10. Management information systems (MIS) are concerned with providing management with
the information it needs to effectively manage.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Identify the three major functions of organizations and describe how they interact.
Topic: 01-08 Other Functions
11. Operations management involves both system design and planning/control decisions.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Describe the scope of operations management and provide an overview of this textbook; including differentiating
between design and planning/control decisions.
Topic: 01-09 The Scope of Operations Management
1-3
, 12. System design decisions have very little impact on planning/control decisions.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Describe the scope of operations management and provide an overview of this textbook; including differentiating
between design and planning/control decisions.
Topic: 01-09 The Scope of Operations Management
13. An example of an operations control decision is the choice of location.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-03 Describe the scope of operations management and provide an overview of this textbook; including differentiating
between design and planning/control decisions.
Topic: 01-09 The Scope of Operations Management
14. Scheduling jobs is a system design decision and not a planning decision.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Describe the scope of operations management and provide an overview of this textbook; including differentiating
between design and planning/control decisions.
Topic: 01-09 The Scope of Operations Management
15. Design decisions are usually strategic and long term, while planning decisions are tactical
and medium term.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Describe the scope of operations management and provide an overview of this textbook; including differentiating
between design and planning/control decisions.
Topic: 01-09 The Scope of Operations Management
1-4
