Chapter 01 Test Bank Static
1. Efficiency means doing the right things to create the most value for the company.
FALSE
Efficiency means doing something at the lowest possible cost.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
2. Effectiveness means doing the right things to create the most value for the company.
TRUE
Effectiveness means doing the right things to create the most value for the company.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
3. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we
could refer to this doctor as being efficient but not effective.
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. The
doctor performed the surgery without error. Because the patient died, no value was created.
AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
4. A worker can be efficient without being effective.
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value.
These are different things.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
1-1
Copyright © 20176 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,5. A process can be effective without being efficient.
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at the
customer service counter at a local store or bank means using the smallest number of clerks possible at the counter. Being effective,
though, means minimizing the amount of time customers need to wait in line.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
6. Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and
deliver the firm's primary products and services.
TRUE
Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver
the firm's primary products and services.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
7. The term "value" refers to the relationship between quality and the price paid by the consumer.
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
8. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between
the two goals.
TRUE
Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
AACSB: Analytic
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
1-2
Copyright © 20176 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,9. Central to the concept of operations strategy are the notions of operations focus and trade-offs.
TRUE
Central to their thinking was the notion of factory focus and manufacturing trade-offs. Because a factory cannot excel on all
performance measures, its management must devise a focused strategy, (to perform) a limited set of tasks extremely well. This
requires trade-offs.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
10. OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.
FALSE
OSCM is concerned with the management of the entire system that produces a good or delivers a service.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
11. OSCM is a functional field of business with clear line management responsibilities.
TRUE
OSCM is a functional field of business with clear line management responsibilities.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Know the potential career opportunities in operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
12. The supply network as can be thought of as a pipeline through which cash, material and information flows.
FALSE
Think of the supply network as a pipeline through which material and information flows.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
13. Supply networks cannot be constructed for every product or service.
FALSE
Networks such as this can be constructed for any product or service.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
1-3
Copyright © 20176 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 14. "Operations" refers to manufacturing and service processes used to transform resources employed by a firm into products desired
by customers.
TRUE
Operations refers to manufacturing, service, and health care processes that are used to transform the resources employed by a firm into
products desired by customers.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
15. "Supply chain" refers to processes that move information and material to and from the manufacturing and service processes of the
firm.
TRUE
Supply chain refers to processes that move information and material to and from the manufacturing and service processes of the firm.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
16. "Supply chain" includes only inbound freight and inventory.
FALSE
Supply chain refers to processes that move information and material to and from the manufacturing and service processes of the firm.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
17. It is critical that a sustainable strategy meet the needs of shareholders and employees first, and then focus on preserving the
environment.
FALSE
A sustainable strategy that meets the needs of shareholders and employees while preserving the environment is critical.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
1-4
Copyright © 20176 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
1. Efficiency means doing the right things to create the most value for the company.
FALSE
Efficiency means doing something at the lowest possible cost.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
2. Effectiveness means doing the right things to create the most value for the company.
TRUE
Effectiveness means doing the right things to create the most value for the company.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
3. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we
could refer to this doctor as being efficient but not effective.
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. The
doctor performed the surgery without error. Because the patient died, no value was created.
AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
4. A worker can be efficient without being effective.
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value.
These are different things.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
1-1
Copyright © 20176 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,5. A process can be effective without being efficient.
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at the
customer service counter at a local store or bank means using the smallest number of clerks possible at the counter. Being effective,
though, means minimizing the amount of time customers need to wait in line.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
6. Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and
deliver the firm's primary products and services.
TRUE
Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver
the firm's primary products and services.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
7. The term "value" refers to the relationship between quality and the price paid by the consumer.
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
8. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between
the two goals.
TRUE
Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
AACSB: Analytic
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
1-2
Copyright © 20176 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,9. Central to the concept of operations strategy are the notions of operations focus and trade-offs.
TRUE
Central to their thinking was the notion of factory focus and manufacturing trade-offs. Because a factory cannot excel on all
performance measures, its management must devise a focused strategy, (to perform) a limited set of tasks extremely well. This
requires trade-offs.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
10. OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.
FALSE
OSCM is concerned with the management of the entire system that produces a good or delivers a service.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
11. OSCM is a functional field of business with clear line management responsibilities.
TRUE
OSCM is a functional field of business with clear line management responsibilities.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Know the potential career opportunities in operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
12. The supply network as can be thought of as a pipeline through which cash, material and information flows.
FALSE
Think of the supply network as a pipeline through which material and information flows.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
13. Supply networks cannot be constructed for every product or service.
FALSE
Networks such as this can be constructed for any product or service.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
1-3
Copyright © 20176 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 14. "Operations" refers to manufacturing and service processes used to transform resources employed by a firm into products desired
by customers.
TRUE
Operations refers to manufacturing, service, and health care processes that are used to transform the resources employed by a firm into
products desired by customers.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
15. "Supply chain" refers to processes that move information and material to and from the manufacturing and service processes of the
firm.
TRUE
Supply chain refers to processes that move information and material to and from the manufacturing and service processes of the firm.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
16. "Supply chain" includes only inbound freight and inventory.
FALSE
Supply chain refers to processes that move information and material to and from the manufacturing and service processes of the firm.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
17. It is critical that a sustainable strategy meet the needs of shareholders and employees first, and then focus on preserving the
environment.
FALSE
A sustainable strategy that meets the needs of shareholders and employees while preserving the environment is critical.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
1-4
Copyright © 20176 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
