Exam (elaborations) Test Bank For Operations Management-Stevenson 11th Edition

1. Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services. True False 2. Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nations. True False 3. Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used. True False 4. Operations, marketing, and finance function independently of each other in most organizations. True False 5. The greater the degree of customer involvement, the more challenging the design and management of operations. True False 6. Goods producing organizations are not involved in service activities. True False 7. Service operations require additional inventory because of the unpredictability of consumer demand. True False 8. The value of outputs is measured by the prices customers are willing to pay for goods or services. True False 9. The use of models will guarantee the best possible decisions. True False 10. People who work in the field of operations should have skills that include both knowledge and people skills. True False 11. Assembly lines achieved productivity but at the expense of standard of living. True False 12. The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities. True False 13. The word "technology" is used only to refer to "information technology". True False 14. ‘Value added' by definition is always a positive number since 'added' implies increases. True False 15. Service often requires greater labor content, whereas manufacturing is more capital intensive. True False 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. True False 17. Special-purpose technology is a common way of offering increased customization in manufacturing or services without taking on additional labor costs. True False 18. One concern in the design of production systems is the degree of standardization. True False 19. Most people encounter