OPSY 5315: Chapter 1 Operations
Management Test Questions with
Complete Answers.
1) Some of the operations-related activities of Hard Rock Café include designing meals and
analyzing them for ingredient cost and labor requirements. - Answer TRUE
2) Because Hard Rock Cafes are themed restaurants, operations managers focus their layout
design efforts on attractiveness while paying little attention to efficiency. - Answer FALSE
3) All organizations, including service firms such as banks and hospitals, have a production
function. - Answer TRUE
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
5) An example of a "hidden" production function is money transfers at banks. - Answer TRUE
6) One reason to study operations management is to learn how people organize themselves for
productive enterprise. - Answer TRUE
7) The operations manager performs the management activities of planning, organizing,
staffing, leading, and controlling of the OM function. - Answer TRUE
8) "How much inventory of this item should we have?" is within the critical decision area of
managing quality. - Answer FALSE
9) In order to have a career in operations management, one must have a degree in statistics or
quantitative methods. - Answer FALSE
10) Henry Ford is known as the Father of Scientific Management. - Answer FALSE
11) Shewhart's contributions to operations management came during the Scientific
Management Era. - Answer FALSE
,12) Customer interaction is often high for manufacturing processes, but low for services. -
Answer FALSE
13) Productivity is more difficult to improve in the service sector. - Answer TRUE
14) Manufacturing now constitutes the largest economic sector in postindustrial societies. -
Answer FALSE
15) In the past half-century, while the number of people employed in manufacturing in the
United States has decreased slightly, the output per worker has increased significantly. - Answer
TRUE
16) A knowledge society is one that has migrated from work based on knowledge to one based
on manual work. - Answer FALSE
17) Productivity is the total value of all inputs to the transformation process divided by the total
value of the outputs produced. - Answer FALSE
18) Measuring the impact of a capital acquisition on productivity is an example of multifactor
productivity. - Answer FALSE
19) Ethical and social dilemmas arise because stakeholders of a business have conflicting
perspectives. - Answer TRUE
20) The critical path can be determined by use of either the "forward pass" or the "backward
pass" - Answer FALSE
21) The fundamental difference between PERT and CPM is that PERT uses beta distribution for
crashing projects while CPM uses cost estimates. - Answer FALSE
Productivity can be improved by
A) DECREASING input while HOLDING output steady
B) DECREASING output while HOLDING input steady
C) INCREASING inputs and outputs in the same proportion
D) INCREASING inputs while HOLDING outputs steady
E) None of the above - Answer A) DECREASING input while HOLDING output steady
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) determining the financial leverage
position
2) 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) all of the above - Answer D) preparing employee schedules
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) to all firms, whether manufacturing or
service
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) marketing,
production/operations, and finance/accounting
Which of the following pioneers was not making a professional impact during the Scientific
Management Era?
A) Frank Gilbreth
B) W. Edwards Deming
C) Henry L. Gantt
D) Lillian Gilbreth
Management Test Questions with
Complete Answers.
1) Some of the operations-related activities of Hard Rock Café include designing meals and
analyzing them for ingredient cost and labor requirements. - Answer TRUE
2) Because Hard Rock Cafes are themed restaurants, operations managers focus their layout
design efforts on attractiveness while paying little attention to efficiency. - Answer FALSE
3) All organizations, including service firms such as banks and hospitals, have a production
function. - Answer TRUE
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
5) An example of a "hidden" production function is money transfers at banks. - Answer TRUE
6) One reason to study operations management is to learn how people organize themselves for
productive enterprise. - Answer TRUE
7) The operations manager performs the management activities of planning, organizing,
staffing, leading, and controlling of the OM function. - Answer TRUE
8) "How much inventory of this item should we have?" is within the critical decision area of
managing quality. - Answer FALSE
9) In order to have a career in operations management, one must have a degree in statistics or
quantitative methods. - Answer FALSE
10) Henry Ford is known as the Father of Scientific Management. - Answer FALSE
11) Shewhart's contributions to operations management came during the Scientific
Management Era. - Answer FALSE
,12) Customer interaction is often high for manufacturing processes, but low for services. -
Answer FALSE
13) Productivity is more difficult to improve in the service sector. - Answer TRUE
14) Manufacturing now constitutes the largest economic sector in postindustrial societies. -
Answer FALSE
15) In the past half-century, while the number of people employed in manufacturing in the
United States has decreased slightly, the output per worker has increased significantly. - Answer
TRUE
16) A knowledge society is one that has migrated from work based on knowledge to one based
on manual work. - Answer FALSE
17) Productivity is the total value of all inputs to the transformation process divided by the total
value of the outputs produced. - Answer FALSE
18) Measuring the impact of a capital acquisition on productivity is an example of multifactor
productivity. - Answer FALSE
19) Ethical and social dilemmas arise because stakeholders of a business have conflicting
perspectives. - Answer TRUE
20) The critical path can be determined by use of either the "forward pass" or the "backward
pass" - Answer FALSE
21) The fundamental difference between PERT and CPM is that PERT uses beta distribution for
crashing projects while CPM uses cost estimates. - Answer FALSE
Productivity can be improved by
A) DECREASING input while HOLDING output steady
B) DECREASING output while HOLDING input steady
C) INCREASING inputs and outputs in the same proportion
D) INCREASING inputs while HOLDING outputs steady
E) None of the above - Answer A) DECREASING input while HOLDING output steady
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) determining the financial leverage
position
2) 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) all of the above - Answer D) preparing employee schedules
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) to all firms, whether manufacturing or
service
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) marketing,
production/operations, and finance/accounting
Which of the following pioneers was not making a professional impact during the Scientific
Management Era?
A) Frank Gilbreth
B) W. Edwards Deming
C) Henry L. Gantt
D) Lillian Gilbreth
