Test Bank Operations Management Sustainability And Supply Chain Managament

Operations Management, Cdn. Ed., 3e (Heizer/Render/Griffin)
Chapter 1 Operations and Productivity

1) Some of the operations-related activities of Hard Rock Café include designing meals and
analyzing them for ingredient cost and labour requirements.
Answer: TRUE
Diff: 1 Type: TF
Skill: comprehension
Objective: LO1 Define operations management

2) Because Hard Rock Cafés are themed restaurants, operations managers focus their layout
design efforts on attractiveness while paying little attention to efficiency.
Answer: FALSE
Diff: 1 Type: TF
Skill: comprehension
Objective: LO1 Define operations management

3) All organizations, including service firms such as banks and hospitals, have a production
function.
Answer: TRUE
Diff: 2 Type: TF
Skill: knowledge
Objective: LO1 Define operations management

4) Operations management is the set of activities that creates value in the form of goods and
services by transforming inputs into outputs.
Answer: TRUE
Diff: 1 Type: TF
Skill: knowledge
Objective: LO1 Define operations management

5) An example of a "hidden" production function is money transfers at banks.
Answer: TRUE
Diff: 3 Type: TF
Skill: comprehension
Objective: LO1 Define operations management

6) One reason to study operations management is to learn how people organize themselves for
productive enterprise.
Answer: TRUE
Diff: 1 Type: TF
Skill: knowledge
Objective: LO1 Define operations management




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,7) The operations manager performs the management activities of planning, organizing, staffing,
leading, and controlling of the OM function.
Answer: TRUE
Diff: 1 Type: TF
Skill: knowledge
Objective: LO1 Define operations management

8) "How much inventory of this item should we have?" is within the critical decision area of
managing quality.
Answer: FALSE
Diff: 1 Type: TF
Skill: comprehension
Objective: LO1 Define operations management

9) In order to have a career in operations management one must have a degree in statistics or
quantitative methods.
Answer: FALSE
Diff: 1 Type: TF
Skill: knowledge
Objective: LO1 Define operations management

10) Henry Ford is known as the Father of Scientific Management.
Answer: FALSE
Diff: 1 Type: TF
Skill: knowledge
Objective: LO1 Define operations management

11) Shewhart's contributions to operations management came during the Scientific Management
Era.
Answer: FALSE
Diff: 1 Type: TF
Skill: knowledge
Objective: LO1 Define operations management

12) Customer interaction is often high for manufacturing processes, but low for services.
Answer: FALSE
Diff: 2 Type: TF
Skill: knowledge
Objective: LO2 Explain the distinction between goods and services

13) Productivity is more difficult to improve in the service sector.
Answer: TRUE
Diff: 2 Type: TF
Skill: knowledge
Objective: LO6 Identify the critical variables in enhancing productivity


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,14) Manufacturing now constitutes the largest economic sector in postindustrial societies.
Answer: FALSE
Diff: 2 Type: TF
Skill: knowledge
Objective: LO2 Explain the distinction between goods and services

15) Productivity in Canada has increased significantly every year since 1973.
Answer: FALSE
Diff: 1 Type: TF
Skill: comprehension
Objective: LO3 Explain the difference between production and productivity

16) A knowledge society is one that has migrated from work based on knowledge to one based
on manual work.
Answer: FALSE
Diff: 1 Type: TF
Skill: knowledge
Objective: LO3 Explain the difference between production and productivity

17) Productivity is the total value of all inputs to the transformation process divided by the total
value of the outputs produced.
Answer: FALSE
Diff: 1 Type: TF
Skill: comprehension
Objective: LO3 Explain the difference between production and productivity

18) Measuring the impact of a capital acquisition on productivity is an example of multifactor
productivity.
Answer: FALSE
Diff: 3 Type: TF
Skill: application
Objective: LO5 Compute multifactor productivity

19) Ethical and social dilemmas arise because stakeholders of a business have conflicting
perspectives.
Answer: TRUE
Diff: 1 Type: TF
Skill: application
Objective: Ethics and social responsibility




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, 20) Which of the following is not one of the Ten Critical Decisions of Operations Management?
A) location strategy
B) human resources and job design
C) managing quality
D) design of goods and services
E) determining the financial leverage position
Answer: E
Diff: 2 Type: MC
Skill: knowledge
Objective: LO1 Define operations management

21) An operations task performed at Hard Rock Café is
A) borrowing funds to build a new restaurant.
B) advertising changes in the restaurant menu.
C) calculating restaurant profit and loss.
D) preparing employee schedules.
E) paying suppliers.
Answer: D
Diff: 2 Type: MC
Skill: knowledge
Objective: LO1 Define operations management

22) Operations management is applicable
A) mostly to the service sector.
B) to services exclusively.
C) mostly to the manufacturing sector.
D) to all firms, whether manufacturing or service.
E) to the manufacturing sector exclusively.
Answer: D
Diff: 2 Type: MC
Skill: comprehension
Objective: LO1 Define operations management

23) Which of the following are the primary functions of all organizations?
A) production/operations, marketing, and human resources
B) marketing, human resources, and finance/accounting
C) sales, quality control, and production/operations,
D) marketing, production/operations, and finance/accounting
E) research and development, finance/accounting, and purchasing
Answer: D
Diff: 2 Type: MC
Skill: knowledge
Objective: LO1 Define operations management




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