, TESTBANK for Operations Management
Creating Value Along the Supply Chain, 2nd
Canadian Edition Roberta S. Russell
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, CHAPTER 1
OPERATIONS MANAGEMENT
CHAPTER LEARNING OBJECTIVES
1. Describe what the operations function is and how it relates to other business
functions. Operations can be viewed as a transformation process that converts inputs into
outputs of greater value. Operations management is the study of processes directly related to
the creation and distribution of goods and services. Increasingly, these operations are taking
place outside of the boundaries of a traditional enterprise. Thus, while today’s managers need
to understand how to efficiently manage operations within their own firm, they also need to
develop skills in coordinating operations across a global supply chain. This text teaches
students how to analyze processes, ensure quality, create value, and manage the flow of
information, products, and services across a network of customers, enterprises, and supply
chain partners. Operations is the technical core or “hub” of the organization, interacting with the
other functional areas and suppliers to produce goods and provide services for customers.
2. Discuss the key factors that have contributed to the evolution of operations and the
initiation of supply chain management. Operations management did not really begin until the
Industrial Revolution. Before then, products were made by skilled craftpersons and their
apprentices, one at a time. With the rise of factories, though, came an increased division of
labour, where workers were only responsible for one small part of the total production process.
For many years, factories were dominated by the concept of mass production, but this
eventually gave way to the realization that production should be tied to customer demands (the
quality revolution). The field of supply chain management was born to manage the flow of
information, products, and services across a network of customers, enterprises, and supply
chain partners.
3. Discuss how and why businesses operate globally and the rolesand the roles China
and India play in the current global market. Two-thirds of today’s businesses operate globally
through global markets, global operations, global financing, and global supply chains. Many
companies are now outsourcing much of their production and service functions to other
countries. China accounts for 20% of the world’s population and is the world’s largest
manufacturer. India, on the other hand, is known as the world’s service provider. India has an
enormous resource of highly skilled engineers, scientists, and technically trained workers
available at less than half the cost of those located in developed countries.
4. Calculate and interpret productivity measures used for measuring competitiveness.
Competitiveness has been defined by the OECD as “the degree to which a nation can produce
goods and services that meet the test of international markets while simultaneously maintaining
or expanding the real incomes of its citizens.” The most common measure of competitiveness is
productivity, which is the ratio of input to output.
Copyright © 2014 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
, Operations Management 1-2
5. Discuss the process of developing, deploying, and monitoring the success of an
operations strategy. Firms choose to compete in different ways. A firm’s strategy defines how
it will compete in the marketplace—its own best way. Strategy formulation involves defining the
primary task, assessing core competencies, determining order winners and order qualifiers, and
positioning the firm. An effective strategy meets the order qualifiers and excels on the order
winners. A competitive position is not sustainable unless the operating system that supports it is
configured and managed effectively.
Policy deployment is a planning system that helps align day-to-day operating decisions with the
company’s overall strategy. The balanced scorecard reinforces a firm’s strategy by providing
customer-oriented and process-oriented measures of performance, in addition to traditional
financial measures.
Decision making for the future can be scary at best. Fortunately, there are quantitative tools
available for making decisions under uncertain conditions. The supplement to this chapter
reviews several of them.
Copyright © 2020 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
,1-3 Test Bank for Operations Management: Creating Value Along the Supply Chain, Second Canadian Edition
TRUE-FALSE STATEMENTS
1. Operations management is concerned only with the day-to-day operations of a firm’s
productive systems.
Answer: False
Difficulty: Easy
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Knowledge
AACSB: Reflective Thinking
2. A warehouse operation is an example of a physical transformation process.
Answer: False
Difficulty: Easy
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Knowledge
AACSB: Reflective Thinking
3. A retail operation is an example of an exchange transformation process.
Answer: True
Difficulty: Easy
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Knowledge
AACSB: Reflective Thinking
4. Operations management designs, operates, and improves productive systems.
Answer: True
Difficulty: Easy
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Knowledge
AACSB: Reflective Thinking
Copyright © 20120 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
, Operations Management 1-4
5. The four primary functional areas of a firm are marketing, finance, operations, and human
resources.
Answer: True
Difficulty: Easy
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Knowledge
AACSB: Reflective Thinking
6. A transformation process is a series of activities from supplier to customer that add value to a
product or service.
Answer: False
Difficulty: Medium
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Comprehension
AACSB: Reflective Thinking
7. Human resources management provides demand estimates that are used in production
decisions.
Answer: False
Difficulty: Medium
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Comprehension
AACSB: Reflective Thinking
8. To be effective an operations manager needs an integrated view of business organizations.
Answer: True
Difficulty: Easy
Learning Objective: Discuss the key factors that have contributed to the evolution of operations
and the initiation of supply chain management.
Section Reference: 1.2 The Evolution of Operations and Supply Chain Management
Blooms: Knowledge
AACSB: Reflective Thinking
Copyright © 2020 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
,1-5 Test Bank for Operations Management: Creating Value Along the Supply Chain, Second Canadian Edition
9. The systematic analysis of work methods is known as scientific management.
Answer: True
Difficulty: Easy
Learning Objective: Discuss the key factors that have contributed to the evolution of operations
and the initiation of supply chain management.
Section Reference: 1.2 The Evolution of Operations and Supply Chain Management
Blooms: Knowledge
AACSB: Reflective Thinking
10. Operations research is concerned with the systematic analysis of work methods.
Answer: False
Difficulty: Medium
Learning Objective: Discuss the key factors that have contributed to the evolution of operations
and the initiation of supply chain management.
Section Reference: 1.2 The Evolution of Operations and Supply Chain Management
Blooms: Comprehension
AACSB: Reflective Thinking
11. Mass production refers to high-volume production of a standardized product.
Answer: True
Difficulty: Easy
Learning Objective: Discuss the key factors that have contributed to the evolution of operations
and the initiation of supply chain management.
Section Reference: 1.2 The Evolution of Operations and Supply Chain Management
Blooms: Knowledge
AACSB: Reflective Thinking
12. The adaptation of mass production to emphasize efficiency, rather than quality is known as
lean production.
Answer: False
Difficulty: Medium
Learning Objective: Discuss the key factors that have contributed to the evolution of operations
and the initiation of supply chain management.
Section Reference: 1.2 The Evolution of Operations and Supply Chain Management
Blooms: Comprehension
AACSB: Reflective Thinking
Copyright © 20120 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
, Operations Management 1-6
13. The set of activities that create and deliver products to the customer is known as the supply
chain.
Answer: True
Difficulty: Medium
Learning Objective: Discuss the key factors that have contributed to the evolution of operations
and the initiation of supply chain management.
Section Reference: 1.2 The Evolution of Operations and Supply Chain Management
Blooms: Knowledge
AACSB: Reflective Thinking
14. The process of producing high-volume, standardized products for a large market is known
as craft production.
Answer: False
Difficulty: Medium
Learning Objective: Discuss how and why businesses operate globally and the roles and the
roles China and India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Comprehension
AACSB: Reflective Thinking
15. The European Union requires that strict quality and environmental standards be met before
companies can do business with member countries.
Answer: True
Difficulty: Medium
Learning Objective: Discuss how and why businesses operate globally and the roles and the
roles China and India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Knowledge
AACSB: Reflective Thinking
16. Globalization has affected both manufacturing and service operations.
Answer: True
Difficulty: Easy
Learning Objective: Discuss how and why businesses operate globally and the roles and the
roles China and India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Knowledge
AACSB: Reflective Thinking
Copyright © 2020 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
,1-7 Test Bank for Operations Management: Creating Value Along the Supply Chain, Second Canadian Edition
17. Two-thirds of today’s businesses operate globally.
Answer: True
Difficulty: Medium
Learning Objective: Discuss how and why businesses operate globally and the roles and the
roles China and India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Knowledge
AACSB: Reflective Thinking
18. China is reshaping the way firms compete globally.
Answer: True
Difficulty: Easy
Learning Objective: Discuss how and why businesses operate globally and the roles and the
roles China and India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Knowledge
AACSB: Reflective Thinking
19. Globalization requires that firms compete on cost and not quality, speed, or flexibility.
Answer: False
Difficulty: Medium
Learning Objective: Discuss how and why businesses operate globally and the roles China and
India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Knowledge
AACSB: Reflective Thinking
20. Globalization of the supply chain for many products has many pros and few, if any, cons.
Answer: False
Difficulty: Medium
Learning Objective: Discuss how and why businesses operate globally and the roles China and
India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Comprehension
AACSB: Reflective Thinking
21. A major challenge and opportunity for many firms is the globalization of the supply chain.
Answer: True
Copyright © 20120 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
, Operations Management 1-8
Difficulty: Easy
Learning Objective: Discuss how and why businesses operate globally and the roles China and
India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Knowledge
AACSB: Reflective Thinking
22. Productivity increases enable a nation to raise its standard of living.
Answer: True
Difficulty: Easy
Learning Objective: Calculate and interpret productivity measures used for measuring
competitiveness.
Section Reference: 1.4 Productivity and Competitiveness
Blooms: Knowledge
AACSB: Reflective Thinking
23. A nation’s productivity is unrelated to its standard of living.
Answer: False
Difficulty: Easy
Learning Objective: Calculate and interpret productivity measures used for measuring
competitiveness.
Section Reference: 1.4 Productivity and Competitiveness
Blooms: Knowledge
AACSB: Reflective Thinking
24. Productivity is the most common measure of competitiveness.
Answer: True
Difficulty: Easy
Learning Objective: Calculate and interpret productivity measures used for measuring
competitiveness.
Section Reference: 1.4 Productivity and Competitiveness
Blooms: Knowledge
AACSB: Reflective Thinking
25. Single factor productivity compares output to an individual input.
Answer: True
Difficulty: Medium
Copyright © 2020 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
Creating Value Along the Supply Chain, 2nd
Canadian Edition Roberta S. Russell
Hello all ,
We have all what you need with best price
Our email :
Our website :
testbanks-store.com
, CHAPTER 1
OPERATIONS MANAGEMENT
CHAPTER LEARNING OBJECTIVES
1. Describe what the operations function is and how it relates to other business
functions. Operations can be viewed as a transformation process that converts inputs into
outputs of greater value. Operations management is the study of processes directly related to
the creation and distribution of goods and services. Increasingly, these operations are taking
place outside of the boundaries of a traditional enterprise. Thus, while today’s managers need
to understand how to efficiently manage operations within their own firm, they also need to
develop skills in coordinating operations across a global supply chain. This text teaches
students how to analyze processes, ensure quality, create value, and manage the flow of
information, products, and services across a network of customers, enterprises, and supply
chain partners. Operations is the technical core or “hub” of the organization, interacting with the
other functional areas and suppliers to produce goods and provide services for customers.
2. Discuss the key factors that have contributed to the evolution of operations and the
initiation of supply chain management. Operations management did not really begin until the
Industrial Revolution. Before then, products were made by skilled craftpersons and their
apprentices, one at a time. With the rise of factories, though, came an increased division of
labour, where workers were only responsible for one small part of the total production process.
For many years, factories were dominated by the concept of mass production, but this
eventually gave way to the realization that production should be tied to customer demands (the
quality revolution). The field of supply chain management was born to manage the flow of
information, products, and services across a network of customers, enterprises, and supply
chain partners.
3. Discuss how and why businesses operate globally and the rolesand the roles China
and India play in the current global market. Two-thirds of today’s businesses operate globally
through global markets, global operations, global financing, and global supply chains. Many
companies are now outsourcing much of their production and service functions to other
countries. China accounts for 20% of the world’s population and is the world’s largest
manufacturer. India, on the other hand, is known as the world’s service provider. India has an
enormous resource of highly skilled engineers, scientists, and technically trained workers
available at less than half the cost of those located in developed countries.
4. Calculate and interpret productivity measures used for measuring competitiveness.
Competitiveness has been defined by the OECD as “the degree to which a nation can produce
goods and services that meet the test of international markets while simultaneously maintaining
or expanding the real incomes of its citizens.” The most common measure of competitiveness is
productivity, which is the ratio of input to output.
Copyright © 2014 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
, Operations Management 1-2
5. Discuss the process of developing, deploying, and monitoring the success of an
operations strategy. Firms choose to compete in different ways. A firm’s strategy defines how
it will compete in the marketplace—its own best way. Strategy formulation involves defining the
primary task, assessing core competencies, determining order winners and order qualifiers, and
positioning the firm. An effective strategy meets the order qualifiers and excels on the order
winners. A competitive position is not sustainable unless the operating system that supports it is
configured and managed effectively.
Policy deployment is a planning system that helps align day-to-day operating decisions with the
company’s overall strategy. The balanced scorecard reinforces a firm’s strategy by providing
customer-oriented and process-oriented measures of performance, in addition to traditional
financial measures.
Decision making for the future can be scary at best. Fortunately, there are quantitative tools
available for making decisions under uncertain conditions. The supplement to this chapter
reviews several of them.
Copyright © 2020 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
,1-3 Test Bank for Operations Management: Creating Value Along the Supply Chain, Second Canadian Edition
TRUE-FALSE STATEMENTS
1. Operations management is concerned only with the day-to-day operations of a firm’s
productive systems.
Answer: False
Difficulty: Easy
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Knowledge
AACSB: Reflective Thinking
2. A warehouse operation is an example of a physical transformation process.
Answer: False
Difficulty: Easy
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Knowledge
AACSB: Reflective Thinking
3. A retail operation is an example of an exchange transformation process.
Answer: True
Difficulty: Easy
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Knowledge
AACSB: Reflective Thinking
4. Operations management designs, operates, and improves productive systems.
Answer: True
Difficulty: Easy
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Knowledge
AACSB: Reflective Thinking
Copyright © 20120 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
, Operations Management 1-4
5. The four primary functional areas of a firm are marketing, finance, operations, and human
resources.
Answer: True
Difficulty: Easy
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Knowledge
AACSB: Reflective Thinking
6. A transformation process is a series of activities from supplier to customer that add value to a
product or service.
Answer: False
Difficulty: Medium
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Comprehension
AACSB: Reflective Thinking
7. Human resources management provides demand estimates that are used in production
decisions.
Answer: False
Difficulty: Medium
Learning Objective: Describe what the operations function is and how it relates to other
business functions.
Section Reference: 1.1 The Operations Function
Blooms: Comprehension
AACSB: Reflective Thinking
8. To be effective an operations manager needs an integrated view of business organizations.
Answer: True
Difficulty: Easy
Learning Objective: Discuss the key factors that have contributed to the evolution of operations
and the initiation of supply chain management.
Section Reference: 1.2 The Evolution of Operations and Supply Chain Management
Blooms: Knowledge
AACSB: Reflective Thinking
Copyright © 2020 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
,1-5 Test Bank for Operations Management: Creating Value Along the Supply Chain, Second Canadian Edition
9. The systematic analysis of work methods is known as scientific management.
Answer: True
Difficulty: Easy
Learning Objective: Discuss the key factors that have contributed to the evolution of operations
and the initiation of supply chain management.
Section Reference: 1.2 The Evolution of Operations and Supply Chain Management
Blooms: Knowledge
AACSB: Reflective Thinking
10. Operations research is concerned with the systematic analysis of work methods.
Answer: False
Difficulty: Medium
Learning Objective: Discuss the key factors that have contributed to the evolution of operations
and the initiation of supply chain management.
Section Reference: 1.2 The Evolution of Operations and Supply Chain Management
Blooms: Comprehension
AACSB: Reflective Thinking
11. Mass production refers to high-volume production of a standardized product.
Answer: True
Difficulty: Easy
Learning Objective: Discuss the key factors that have contributed to the evolution of operations
and the initiation of supply chain management.
Section Reference: 1.2 The Evolution of Operations and Supply Chain Management
Blooms: Knowledge
AACSB: Reflective Thinking
12. The adaptation of mass production to emphasize efficiency, rather than quality is known as
lean production.
Answer: False
Difficulty: Medium
Learning Objective: Discuss the key factors that have contributed to the evolution of operations
and the initiation of supply chain management.
Section Reference: 1.2 The Evolution of Operations and Supply Chain Management
Blooms: Comprehension
AACSB: Reflective Thinking
Copyright © 20120 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
, Operations Management 1-6
13. The set of activities that create and deliver products to the customer is known as the supply
chain.
Answer: True
Difficulty: Medium
Learning Objective: Discuss the key factors that have contributed to the evolution of operations
and the initiation of supply chain management.
Section Reference: 1.2 The Evolution of Operations and Supply Chain Management
Blooms: Knowledge
AACSB: Reflective Thinking
14. The process of producing high-volume, standardized products for a large market is known
as craft production.
Answer: False
Difficulty: Medium
Learning Objective: Discuss how and why businesses operate globally and the roles and the
roles China and India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Comprehension
AACSB: Reflective Thinking
15. The European Union requires that strict quality and environmental standards be met before
companies can do business with member countries.
Answer: True
Difficulty: Medium
Learning Objective: Discuss how and why businesses operate globally and the roles and the
roles China and India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Knowledge
AACSB: Reflective Thinking
16. Globalization has affected both manufacturing and service operations.
Answer: True
Difficulty: Easy
Learning Objective: Discuss how and why businesses operate globally and the roles and the
roles China and India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Knowledge
AACSB: Reflective Thinking
Copyright © 2020 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
,1-7 Test Bank for Operations Management: Creating Value Along the Supply Chain, Second Canadian Edition
17. Two-thirds of today’s businesses operate globally.
Answer: True
Difficulty: Medium
Learning Objective: Discuss how and why businesses operate globally and the roles and the
roles China and India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Knowledge
AACSB: Reflective Thinking
18. China is reshaping the way firms compete globally.
Answer: True
Difficulty: Easy
Learning Objective: Discuss how and why businesses operate globally and the roles and the
roles China and India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Knowledge
AACSB: Reflective Thinking
19. Globalization requires that firms compete on cost and not quality, speed, or flexibility.
Answer: False
Difficulty: Medium
Learning Objective: Discuss how and why businesses operate globally and the roles China and
India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Knowledge
AACSB: Reflective Thinking
20. Globalization of the supply chain for many products has many pros and few, if any, cons.
Answer: False
Difficulty: Medium
Learning Objective: Discuss how and why businesses operate globally and the roles China and
India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Comprehension
AACSB: Reflective Thinking
21. A major challenge and opportunity for many firms is the globalization of the supply chain.
Answer: True
Copyright © 20120 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
, Operations Management 1-8
Difficulty: Easy
Learning Objective: Discuss how and why businesses operate globally and the roles China and
India play in the current global market.
Section Reference: 1.3 Globalization
Blooms: Knowledge
AACSB: Reflective Thinking
22. Productivity increases enable a nation to raise its standard of living.
Answer: True
Difficulty: Easy
Learning Objective: Calculate and interpret productivity measures used for measuring
competitiveness.
Section Reference: 1.4 Productivity and Competitiveness
Blooms: Knowledge
AACSB: Reflective Thinking
23. A nation’s productivity is unrelated to its standard of living.
Answer: False
Difficulty: Easy
Learning Objective: Calculate and interpret productivity measures used for measuring
competitiveness.
Section Reference: 1.4 Productivity and Competitiveness
Blooms: Knowledge
AACSB: Reflective Thinking
24. Productivity is the most common measure of competitiveness.
Answer: True
Difficulty: Easy
Learning Objective: Calculate and interpret productivity measures used for measuring
competitiveness.
Section Reference: 1.4 Productivity and Competitiveness
Blooms: Knowledge
AACSB: Reflective Thinking
25. Single factor productivity compares output to an individual input.
Answer: True
Difficulty: Medium
Copyright © 2020 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
