CHAPTER 1: OPERATIONS AND PRODUCTIVITY
m m m m
TRUE/FALSE
1. Somemofmthemoperations-
relatedmactivitiesmofmHardmRockmCafémincludemdesigningmmealsmandmanalyzingmthemmformingredientm
costmandmlabormrequirements.
Truem(Globalmcompanymprofile,measy)
2. ThemproductionmprocessmatmHardmRockmCafémismlimitedmtommealmpreparationmandmservingmcustomers.
Falsem(Globalmcompanymprofile,measy)
3. Allmorganizations,mincludingmservicemfirmsmsuchmasmbanksmandmhospitals,mhavemamproductionmfunction.
Truem(Whatmismoperationsmmanagement?mmoderate)
4. Operationsmmanagementmismthemsetmofmactivitiesmthatmcreatemvalueminmthemformmofmgoodsmandmserv
icesmbymtransformingminputsmintomoutputs.
Truem(Whatmismoperationsmmanagement?measy)
5. Anmexamplemofmam"hidden"mproductionmfunctionmismmoneymtransfersmatmbanks.
Truem(Whatmismoperationsmmanagement?mmoderate)
6. Onemreasonmtomstudymoperationsmmanagementmismtomlearnmhowmpeoplemorganizemthemselvesm
formproductivementerprise.
Truem(WhymstudymOM,measy)
7. Themoperationsmmanagermperformsmthemmanagementmactivitiesmofmplanning,morganizing,mstaffi
ng,mleading,mandmcontrollingmofmthemOMmfunction.
Truem(Whatmoperationsmmanagersmdo,measy)
8. "Howmmuchminventorymofmthismitemmshouldmwemhave?"mismwithinmthemcriticalmdecisionmare
amofmmanagingmquality.
Falsem(Whatmoperationsmmanagersmdo,measy)
9. Inmordermtomhavemamcareerminmoperationsmmanagement,monemmustmhavemamdegreeminmstatistic
smormquantitativemmethods.
Falsem(Whatmoperationsmmanagersmdo,measy)
10. HenrymFordmismknownmasmthemFathermofmScientificmManagement.
Falsem(Themheritagemofmoperationsmmanagement,measy)
11. Shewhart’smcontributionsmtomoperationsmmanagementmcamemduringmthemScientificmManagementmEra.
Falsem(Themheritagemofmoperationsmmanagement,measy)
12. Studentsmwantingmtompursuemamcareerminmoperationsmmanagementmwillmfindmmultidisciplin
arymknowledgembeneficial.
Truem(WheremaremthemOMmjobs?measy)
1
,13. Customerminteractionmismoftenmhighmformmanufacturingmprocesses,mbutmlowmformservices.
Falsem(Operationsminmthemservicemsector,mmoderate)
14. Productivitymismmoremdifficultmtomimproveminmthemservicemsector.
Truem(Themproductivitymchallenge,mmoderate)
15. Manufacturingmnowmconstitutesmthemlargestmeconomicmsectorminmpostindustrialmsocieties.
Falsem(Operationsminmthemservicemsector,mmoderate)
16. Inmthempastmhalf-
century,mthemnumbermofmpeoplememployedminmmanufacturingmhasmmoremormlessmheldmsteady,mbutm
eachmmanufacturingmemployeemismmanufacturingmaboutm20mtimesmasmmuch.
Truem(Operationsminmthemservicemsector,measy)
17. Amknowledgemsocietymismonemthatmhasmmigratedmfrommworkmbasedmonmknowledgemtomonembase
dmonmmanualmwork.
Falsem(Themproductivitymchallenge,measy)
18. Productivitymismthemtotalmvaluemofmallminputsmtomthemtransformationmprocessmdividedmbymthemtotalmv
aluemofmthemoutputsmproduced.
Falsem(Themproductivitymchallenge,measy)
19. Measuringmthemimpactmofmamcapitalmacquisitionmonmproductivitymismanmexamplemofmmulti-
factormproductivity.
Falsem(Themproductivitymchallenge,mmoderate)
20. Ethicalmandmsocialmdilemmasmarisembecausemstakeholdersmofmambusinessmhavemconflictingmperspectives.
Truem(Ethicsmandmsocialmresponsibility,measy)m{AACSB:mEthicalmReasoning}
MULTIPLE CHOICEm
21. AtmHardmRockmCafé,mtasksmthatmreflectmoperationsmormoperationsmmanagementminclude
a. designingmmeals
b. testingmmealsm(recipes)
c. analyzingmmealsmformthemcostmofmingredients
d. preparingmemployeemschedules
e. allmofmthemabove
em(Globalmcompanymprofile,measy)
22. AnmoperationsmtaskmperformedmatmHardmRockmCafémis
a. borrowingmfundsmtombuildmamnewmrestaurant
b. advertisingmchangesminmthemrestaurantmmenu
c. calculatingmrestaurantmprofitmandmloss
d. preparingmemployeemschedules
e. allmofmthemabove
dm(Globalmcompanymprofile,mmoderate)
2
,23. Operationsmmanagementmismapplicable
a. mostlymtomthemservicemsector
b. tomservicesmexclusively
c. mostlymtomthemmanufacturingmsector
d. tomallmfirms,mwhethermmanufacturingmandmservice
e. tomthemmanufacturingmsectormexclusively
dm(Whatmismoperationsmmanagement?mmoderate)
24. Whichmofmthemfollowingmaremthemprimarymfunctionsmofmallmorganizations?
a. operations,mmarketing,mandmhumanmresources
b. marketing,mhumanmresources,mandmfinance/accounting
c. sales,mqualitymcontrol,mandmoperations
d. marketing,moperations,mandmfinance/accounting
e. researchmandmdevelopment,mfinance/accounting,mandmpurchasing
dm(Organizingmtomproducemgoodsmandmservices,mmoderate)
25. Budgeting,mpayingmthembills,mandmcollectionmofmfundsmaremactivitiesmassociatedmwithmthe
a. managementmfunction
b. controlmfunction
c. finance/accountingm function
d. production/operationsm function
e. staffingmfunction
cm(Organizingmtomproducemgoodsmandmservices,mmoderate)
26. Whichmofmthemfollowingmwouldmnotmbemanmoperationsmfunctionminmamfast-foodmrestaurant?
a. advertisingmandmpromotion
b. designingmthemlayoutmofmthemfacility
c. maintainingmequipment
d. makingmhamburgersmandmfries
e. purchasingmingredients
am(Organizingmtomproducemgoodsmandmservices,mmoderate)
27. Themmarketingmfunction'smmainmconcernmismwith
a. producingmgoodsmormprovidingmservices
b. procuringmmaterials,msupplies,mandmequipment
c. buildingmandmmaintainingmampositivemimage
d. generatingmthemdemandmformthemorganization'smproductsmormservices
e. securingmmonetarymresources
dm(Organizingmtomproducemgoodsmandmservices,mmoderate)
28. ReasonsmtomstudymOperationsmManagementminclude
a. studyingmwhympeoplemorganizemthemselvesmformfreementerprise
b. knowingmhowmgoodsmandmservicesmaremconsumed
c. understandingmwhatmhumanmresourcemmanagersmdo
d. learningmaboutmamcostlympartmofmthementerprise
e. allmofmthemabove
dm(WhymstudymOM?mmoderate)
3
, 29. ReasonsmtomstudymOperationsmManagementmincludemlearningmabout
a. whympeoplemorganizemthemselvesmformproductivementerprise
b. howmgoodsmandmservicesmaremproduced
c. whatmoperationsmmanagersmdo
d. amcostlympartmofmthementerprise
e. allmofmthemabove
em(WhymstudymOM?measy)
30. Themfivemelementsminmthemmanagementmprocessmare
a. plan,mdirect,mupdate,mlead,mandmsupervise
b. accounting/finance,mmarketing,moperations,mandmmanagement
c. organize,mplan,mcontrol,mstaff,mandmmanage
d. plan,morganize,mstaff,mlead,mandmcontrol
e. plan,mlead,morganize,mmanage,mandmcontrol
dm(Whatmdomoperationsmmanagersmdo?measy)
31. Illiteracymandmpoormdietsmhavembeenmknownmtomcostmcountriesmupmtomwhatmpercentmofmt
heirmproductivity?
a. 2%
b. 5%
c. 10%
d. 20%
e. 50%
dm(Productivitymvariables,mmoderate)m{AACSB:mMulticulturemandmDiversity}
32. Whichmofmthemfollowingmismnotmanmelementmofmthemmanagementmprocess?
a. controlling
b. leading
c. planning
d. pricing
e. staffing
dm(Whatmdomoperationsmmanagersmdo?measy)
33. Anmoperationsmmanagermismnotmlikelymtombeminvolvedmin
a. themdesignmofmgoodsmandmservicesmtomsatisfymcustomers'mwantsmandmneeds
b. themqualitymofmgoodsmandmservicesmtomsatisfymcustomers'mwantsmandmneeds
c. themidentificationmofmcustomers'mwantsmandmneeds
d. workmschedulingmtommeetmthemduemdatesmpromisedmtomcustomers
e. maintenancemschedules
cm(Whatmdomoperationsmmanagersmdo?measy)
34. Allmofmthemfollowingmdecisionsmfallmwithinmthemscopemofmoperationsmmanagementmexceptmfor
a. financialmanalysis
b. designmofmgoodsmandmprocesses
c. locationmofmfacilities
d. managingmquality
e. Allmofmthemabovemfallmwithinmthemscopemofmoperationsmmanagement.
am(Whatmdomoperationsmmanagersmdo?measy)
4
m m m m
TRUE/FALSE
1. Somemofmthemoperations-
relatedmactivitiesmofmHardmRockmCafémincludemdesigningmmealsmandmanalyzingmthemmformingredientm
costmandmlabormrequirements.
Truem(Globalmcompanymprofile,measy)
2. ThemproductionmprocessmatmHardmRockmCafémismlimitedmtommealmpreparationmandmservingmcustomers.
Falsem(Globalmcompanymprofile,measy)
3. Allmorganizations,mincludingmservicemfirmsmsuchmasmbanksmandmhospitals,mhavemamproductionmfunction.
Truem(Whatmismoperationsmmanagement?mmoderate)
4. Operationsmmanagementmismthemsetmofmactivitiesmthatmcreatemvalueminmthemformmofmgoodsmandmserv
icesmbymtransformingminputsmintomoutputs.
Truem(Whatmismoperationsmmanagement?measy)
5. Anmexamplemofmam"hidden"mproductionmfunctionmismmoneymtransfersmatmbanks.
Truem(Whatmismoperationsmmanagement?mmoderate)
6. Onemreasonmtomstudymoperationsmmanagementmismtomlearnmhowmpeoplemorganizemthemselvesm
formproductivementerprise.
Truem(WhymstudymOM,measy)
7. Themoperationsmmanagermperformsmthemmanagementmactivitiesmofmplanning,morganizing,mstaffi
ng,mleading,mandmcontrollingmofmthemOMmfunction.
Truem(Whatmoperationsmmanagersmdo,measy)
8. "Howmmuchminventorymofmthismitemmshouldmwemhave?"mismwithinmthemcriticalmdecisionmare
amofmmanagingmquality.
Falsem(Whatmoperationsmmanagersmdo,measy)
9. Inmordermtomhavemamcareerminmoperationsmmanagement,monemmustmhavemamdegreeminmstatistic
smormquantitativemmethods.
Falsem(Whatmoperationsmmanagersmdo,measy)
10. HenrymFordmismknownmasmthemFathermofmScientificmManagement.
Falsem(Themheritagemofmoperationsmmanagement,measy)
11. Shewhart’smcontributionsmtomoperationsmmanagementmcamemduringmthemScientificmManagementmEra.
Falsem(Themheritagemofmoperationsmmanagement,measy)
12. Studentsmwantingmtompursuemamcareerminmoperationsmmanagementmwillmfindmmultidisciplin
arymknowledgembeneficial.
Truem(WheremaremthemOMmjobs?measy)
1
,13. Customerminteractionmismoftenmhighmformmanufacturingmprocesses,mbutmlowmformservices.
Falsem(Operationsminmthemservicemsector,mmoderate)
14. Productivitymismmoremdifficultmtomimproveminmthemservicemsector.
Truem(Themproductivitymchallenge,mmoderate)
15. Manufacturingmnowmconstitutesmthemlargestmeconomicmsectorminmpostindustrialmsocieties.
Falsem(Operationsminmthemservicemsector,mmoderate)
16. Inmthempastmhalf-
century,mthemnumbermofmpeoplememployedminmmanufacturingmhasmmoremormlessmheldmsteady,mbutm
eachmmanufacturingmemployeemismmanufacturingmaboutm20mtimesmasmmuch.
Truem(Operationsminmthemservicemsector,measy)
17. Amknowledgemsocietymismonemthatmhasmmigratedmfrommworkmbasedmonmknowledgemtomonembase
dmonmmanualmwork.
Falsem(Themproductivitymchallenge,measy)
18. Productivitymismthemtotalmvaluemofmallminputsmtomthemtransformationmprocessmdividedmbymthemtotalmv
aluemofmthemoutputsmproduced.
Falsem(Themproductivitymchallenge,measy)
19. Measuringmthemimpactmofmamcapitalmacquisitionmonmproductivitymismanmexamplemofmmulti-
factormproductivity.
Falsem(Themproductivitymchallenge,mmoderate)
20. Ethicalmandmsocialmdilemmasmarisembecausemstakeholdersmofmambusinessmhavemconflictingmperspectives.
Truem(Ethicsmandmsocialmresponsibility,measy)m{AACSB:mEthicalmReasoning}
MULTIPLE CHOICEm
21. AtmHardmRockmCafé,mtasksmthatmreflectmoperationsmormoperationsmmanagementminclude
a. designingmmeals
b. testingmmealsm(recipes)
c. analyzingmmealsmformthemcostmofmingredients
d. preparingmemployeemschedules
e. allmofmthemabove
em(Globalmcompanymprofile,measy)
22. AnmoperationsmtaskmperformedmatmHardmRockmCafémis
a. borrowingmfundsmtombuildmamnewmrestaurant
b. advertisingmchangesminmthemrestaurantmmenu
c. calculatingmrestaurantmprofitmandmloss
d. preparingmemployeemschedules
e. allmofmthemabove
dm(Globalmcompanymprofile,mmoderate)
2
,23. Operationsmmanagementmismapplicable
a. mostlymtomthemservicemsector
b. tomservicesmexclusively
c. mostlymtomthemmanufacturingmsector
d. tomallmfirms,mwhethermmanufacturingmandmservice
e. tomthemmanufacturingmsectormexclusively
dm(Whatmismoperationsmmanagement?mmoderate)
24. Whichmofmthemfollowingmaremthemprimarymfunctionsmofmallmorganizations?
a. operations,mmarketing,mandmhumanmresources
b. marketing,mhumanmresources,mandmfinance/accounting
c. sales,mqualitymcontrol,mandmoperations
d. marketing,moperations,mandmfinance/accounting
e. researchmandmdevelopment,mfinance/accounting,mandmpurchasing
dm(Organizingmtomproducemgoodsmandmservices,mmoderate)
25. Budgeting,mpayingmthembills,mandmcollectionmofmfundsmaremactivitiesmassociatedmwithmthe
a. managementmfunction
b. controlmfunction
c. finance/accountingm function
d. production/operationsm function
e. staffingmfunction
cm(Organizingmtomproducemgoodsmandmservices,mmoderate)
26. Whichmofmthemfollowingmwouldmnotmbemanmoperationsmfunctionminmamfast-foodmrestaurant?
a. advertisingmandmpromotion
b. designingmthemlayoutmofmthemfacility
c. maintainingmequipment
d. makingmhamburgersmandmfries
e. purchasingmingredients
am(Organizingmtomproducemgoodsmandmservices,mmoderate)
27. Themmarketingmfunction'smmainmconcernmismwith
a. producingmgoodsmormprovidingmservices
b. procuringmmaterials,msupplies,mandmequipment
c. buildingmandmmaintainingmampositivemimage
d. generatingmthemdemandmformthemorganization'smproductsmormservices
e. securingmmonetarymresources
dm(Organizingmtomproducemgoodsmandmservices,mmoderate)
28. ReasonsmtomstudymOperationsmManagementminclude
a. studyingmwhympeoplemorganizemthemselvesmformfreementerprise
b. knowingmhowmgoodsmandmservicesmaremconsumed
c. understandingmwhatmhumanmresourcemmanagersmdo
d. learningmaboutmamcostlympartmofmthementerprise
e. allmofmthemabove
dm(WhymstudymOM?mmoderate)
3
, 29. ReasonsmtomstudymOperationsmManagementmincludemlearningmabout
a. whympeoplemorganizemthemselvesmformproductivementerprise
b. howmgoodsmandmservicesmaremproduced
c. whatmoperationsmmanagersmdo
d. amcostlympartmofmthementerprise
e. allmofmthemabove
em(WhymstudymOM?measy)
30. Themfivemelementsminmthemmanagementmprocessmare
a. plan,mdirect,mupdate,mlead,mandmsupervise
b. accounting/finance,mmarketing,moperations,mandmmanagement
c. organize,mplan,mcontrol,mstaff,mandmmanage
d. plan,morganize,mstaff,mlead,mandmcontrol
e. plan,mlead,morganize,mmanage,mandmcontrol
dm(Whatmdomoperationsmmanagersmdo?measy)
31. Illiteracymandmpoormdietsmhavembeenmknownmtomcostmcountriesmupmtomwhatmpercentmofmt
heirmproductivity?
a. 2%
b. 5%
c. 10%
d. 20%
e. 50%
dm(Productivitymvariables,mmoderate)m{AACSB:mMulticulturemandmDiversity}
32. Whichmofmthemfollowingmismnotmanmelementmofmthemmanagementmprocess?
a. controlling
b. leading
c. planning
d. pricing
e. staffing
dm(Whatmdomoperationsmmanagersmdo?measy)
33. Anmoperationsmmanagermismnotmlikelymtombeminvolvedmin
a. themdesignmofmgoodsmandmservicesmtomsatisfymcustomers'mwantsmandmneeds
b. themqualitymofmgoodsmandmservicesmtomsatisfymcustomers'mwantsmandmneeds
c. themidentificationmofmcustomers'mwantsmandmneeds
d. workmschedulingmtommeetmthemduemdatesmpromisedmtomcustomers
e. maintenancemschedules
cm(Whatmdomoperationsmmanagersmdo?measy)
34. Allmofmthemfollowingmdecisionsmfallmwithinmthemscopemofmoperationsmmanagementmexceptmfor
a. financialmanalysis
b. designmofmgoodsmandmprocesses
c. locationmofmfacilities
d. managingmquality
e. Allmofmthemabovemfallmwithinmthemscopemofmoperationsmmanagement.
am(Whatmdomoperationsmmanagersmdo?measy)
4
