CHAPTER 1: OPERATIONS AND PRODUCTIVITY
g g g g
TRUE/FALSE
1. Somegofgthegoperations-
relatedgactivitiesgofgHardgRockgCafégincludegdesigninggmealsgandganalyzinggthemgforgingredientgcost
gandglaborgrequirements.
Trueg(Globalgcompanygprofile,geasy)
2. ThegproductiongprocessgatgHardgRockgCafégisglimitedgtogmealgpreparationgandgservinggcustomers.
Falseg(Globalgcompanygprofile,geasy)
3. Allgorganizations,gincludinggservicegfirmsgsuchgasgbanksgandghospitals,ghavegagproductiongfunction.
Trueg(Whatgisgoperationsgmanagement?gmoderate)
4. Operationsgmanagementgisgthegsetgofgactivitiesgthatgcreategvaluegingthegformgofggoodsgandgservicesg
bygtransformingginputsgintogoutputs.
Trueg(Whatgisgoperationsgmanagement?geasy)
5. Angexamplegofgag"hidden"gproductiongfunctiongisgmoneygtransfersgatgbanks.
Trueg(Whatgisgoperationsgmanagement?gmoderate)
6. Onegreasongtogstudygoperationsgmanagementgisgtoglearnghowgpeoplegorganizegthemselvesgforg
productivegenterprise.
Trueg(WhygstudygOM,geasy)
7. Thegoperationsgmanagergperformsgthegmanagementgactivitiesgofgplanning,gorganizing,gstaffing,g
leading,gandgcontrollinggofgthegOMgfunction.
Trueg(Whatgoperationsgmanagersgdo,geasy)
8. "Howgmuchginventorygofgthisgitemgshouldgweghave?"gisgwithingthegcriticalgdecisiongareagofg
managinggquality.
Falseg(Whatgoperationsgmanagersgdo,geasy)
9. Ingordergtoghavegagcareergingoperationsgmanagement,gonegmustghavegagdegreegingstatisticsgorg
quantitativegmethods.
Falseg(Whatgoperationsgmanagersgdo,geasy)
10. HenrygFordgisgknowngasgthegFathergofgScientificgManagement.
Falseg(Thegheritagegofgoperationsgmanagement,geasy)
11. Shewhart’sgcontributionsgtogoperationsgmanagementgcamegduringgthegScientificgManagementgEra.
Falseg(Thegheritagegofgoperationsgmanagement,geasy)
12. Studentsgwantinggtogpursuegagcareergingoperationsgmanagementgwillgfindgmultidisciplinaryg
knowledgegbeneficial.
Trueg(WheregaregthegOMgjobs?geasy)
1
,13. Customerginteractiongisgoftenghighgforgmanufacturinggprocesses,gbutglowgforgservices.
Falseg(Operationsgingthegservicegsector,gmoderate)
14. Productivitygisgmoregdifficultgtogimprovegingthegservicegsector.
Trueg(Thegproductivitygchallenge,gmoderate)
15. Manufacturinggnowgconstitutesgtheglargestgeconomicgsectorgingpostindustrialgsocieties.
Falseg(Operationsgingthegservicegsector,gmoderate)
16. Ingthegpastghalf-
century,gthegnumbergofgpeoplegemployedgingmanufacturingghasgmoregorglessgheldgsteady,gbutgeach
gmanufacturinggemployeegisgmanufacturinggaboutg20gtimesgasgmuch.
Trueg(Operationsgingthegservicegsector,geasy)
17. Agknowledgegsocietygisgonegthatghasgmigratedgfromgworkgbasedgongknowledgegtogonegbasedgong
manualgwork.
Falseg(Thegproductivitygchallenge,geasy)
18. Productivitygisgthegtotalgvaluegofgallginputsgtogthegtransformationgprocessgdividedgbygthegtotalgvalueg
ofgthegoutputsgproduced.
Falseg(Thegproductivitygchallenge,geasy)
19. Measuringgthegimpactgofgagcapitalgacquisitiongongproductivitygisgangexamplegofgmulti-
factorgproductivity.
Falseg(Thegproductivitygchallenge,gmoderate)
20. Ethicalgandgsocialgdilemmasgarisegbecausegstakeholdersgofgagbusinessghavegconflictinggperspectives.
Trueg(Ethicsgandgsocialgresponsibility,geasy)g{AACSB:gEthicalgReasoning}
MULTIPLE CHOICEg
21. AtgHardgRockgCafé,gtasksgthatgreflectgoperationsgorgoperationsgmanagementginclude
a. designinggmeals
b. testinggmealsg(recipes)
c. analyzinggmealsgforgthegcostgofgingredients
d. preparinggemployeegschedules
e. allgofgthegabove
eg(Globalgcompanygprofile,geasy)
22. AngoperationsgtaskgperformedgatgHardgRockgCafégis
a. borrowinggfundsgtogbuildgagnewgrestaurant
b. advertisinggchangesgingthegrestaurantgmenu
c. calculatinggrestaurantgprofitgandgloss
d. preparinggemployeegschedules
e. allgofgthegabove
dg(Globalgcompanygprofile,gmoderate)
2
,23. Operationsgmanagementgisgapplicable
a. mostlygtogthegservicegsector
b. togservicesgexclusively
c. mostlygtogthegmanufacturinggsector
d. togallgfirms,gwhethergmanufacturinggandgservice
e. togthegmanufacturinggsectorgexclusively
dg(Whatgisgoperationsgmanagement?gmoderate)
24. Whichgofgthegfollowinggaregthegprimarygfunctionsgofgallgorganizations?
a. operations,gmarketing,gandghumangresources
b. marketing,ghumangresources,gandgfinance/accounting
c. sales,gqualitygcontrol,gandgoperations
d. marketing,goperations,gandgfinance/accounting
e. researchgandgdevelopment,gfinance/accounting,gandgpurchasing
dg(Organizinggtogproduceggoodsgandgservices,gmoderate)
25. Budgeting,gpayinggthegbills,gandgcollectiongofgfundsgaregactivitiesgassociatedgwithgthe
a. managementgfunction
b. controlgfunction
c. finance/accountingg function
d. production/operationsg function
e. staffinggfunction
cg(Organizinggtogproduceggoodsgandgservices,gmoderate)
26. Whichgofgthegfollowinggwouldgnotgbegangoperationsgfunctiongingagfast-foodgrestaurant?
a. advertisinggandgpromotion
b. designinggtheglayoutgofgthegfacility
c. maintaininggequipment
d. makingghamburgersgandgfries
e. purchasinggingredients
ag(Organizinggtogproduceggoodsgandgservices,gmoderate)
27. Thegmarketinggfunction'sgmaingconcerngisgwith
a. producingggoodsgorgprovidinggservices
b. procuringgmaterials,gsupplies,gandgequipment
c. buildinggandgmaintaininggagpositivegimage
d. generatinggthegdemandgforgthegorganization'sgproductsgorgservices
e. securinggmonetarygresources
dg(Organizinggtogproduceggoodsgandgservices,gmoderate)
28. ReasonsgtogstudygOperationsgManagementginclude
a. studyinggwhygpeoplegorganizegthemselvesgforgfreegenterprise
b. knowingghowggoodsgandgservicesgaregconsumed
c. understandinggwhatghumangresourcegmanagersgdo
d. learninggaboutgagcostlygpartgofgthegenterprise
e. allgofgthegabove
dg(WhygstudygOM?gmoderate)
3
, 29. ReasonsgtogstudygOperationsgManagementgincludeglearninggabout
a. whygpeoplegorganizegthemselvesgforgproductivegenterprise
b. howggoodsgandgservicesgaregproduced
c. whatgoperationsgmanagersgdo
d. agcostlygpartgofgthegenterprise
e. allgofgthegabove
eg(WhygstudygOM?geasy)
30. Thegfivegelementsgingthegmanagementgprocessgare
a. plan,gdirect,gupdate,glead,gandgsupervise
b. accounting/finance,gmarketing,goperations,gandgmanagement
c. organize,gplan,gcontrol,gstaff,gandgmanage
d. plan,gorganize,gstaff,glead,gandgcontrol
e. plan,glead,gorganize,gmanage,gandgcontrol
dg(Whatgdogoperationsgmanagersgdo?geasy)
31. Illiteracygandgpoorgdietsghavegbeengknowngtogcostgcountriesgupgtogwhatgpercentgofgtheirg
productivity?
a. 2%
b. 5%
c. 10%
d. 20%
e. 50%
dg(Productivitygvariables,gmoderate)g{AACSB:gMulticulturegandgDiversity}
32. Whichgofgthegfollowinggisgnotgangelementgofgthegmanagementgprocess?
a. controlling
b. leading
c. planning
d. pricing
e. staffing
dg(Whatgdogoperationsgmanagersgdo?geasy)
33. Angoperationsgmanagergisgnotglikelygtogbeginvolvedgin
a. thegdesigngofggoodsgandgservicesgtogsatisfygcustomers'gwantsgandgneeds
b. thegqualitygofggoodsgandgservicesgtogsatisfygcustomers'gwantsgandgneeds
c. thegidentificationgofgcustomers'gwantsgandgneeds
d. workgschedulinggtogmeetgthegduegdatesgpromisedgtogcustomers
e. maintenancegschedules
cg(Whatgdogoperationsgmanagersgdo?geasy)
34. Allgofgthegfollowinggdecisionsgfallgwithingthegscopegofgoperationsgmanagementgexceptgfor
a. financialganalysis
b. designgofggoodsgandgprocesses
c. locationgofgfacilities
d. managinggquality
e. Allgofgthegabovegfallgwithingthegscopegofgoperationsgmanagement.
ag(Whatgdogoperationsgmanagersgdo?geasy)
4
g g g g
TRUE/FALSE
1. Somegofgthegoperations-
relatedgactivitiesgofgHardgRockgCafégincludegdesigninggmealsgandganalyzinggthemgforgingredientgcost
gandglaborgrequirements.
Trueg(Globalgcompanygprofile,geasy)
2. ThegproductiongprocessgatgHardgRockgCafégisglimitedgtogmealgpreparationgandgservinggcustomers.
Falseg(Globalgcompanygprofile,geasy)
3. Allgorganizations,gincludinggservicegfirmsgsuchgasgbanksgandghospitals,ghavegagproductiongfunction.
Trueg(Whatgisgoperationsgmanagement?gmoderate)
4. Operationsgmanagementgisgthegsetgofgactivitiesgthatgcreategvaluegingthegformgofggoodsgandgservicesg
bygtransformingginputsgintogoutputs.
Trueg(Whatgisgoperationsgmanagement?geasy)
5. Angexamplegofgag"hidden"gproductiongfunctiongisgmoneygtransfersgatgbanks.
Trueg(Whatgisgoperationsgmanagement?gmoderate)
6. Onegreasongtogstudygoperationsgmanagementgisgtoglearnghowgpeoplegorganizegthemselvesgforg
productivegenterprise.
Trueg(WhygstudygOM,geasy)
7. Thegoperationsgmanagergperformsgthegmanagementgactivitiesgofgplanning,gorganizing,gstaffing,g
leading,gandgcontrollinggofgthegOMgfunction.
Trueg(Whatgoperationsgmanagersgdo,geasy)
8. "Howgmuchginventorygofgthisgitemgshouldgweghave?"gisgwithingthegcriticalgdecisiongareagofg
managinggquality.
Falseg(Whatgoperationsgmanagersgdo,geasy)
9. Ingordergtoghavegagcareergingoperationsgmanagement,gonegmustghavegagdegreegingstatisticsgorg
quantitativegmethods.
Falseg(Whatgoperationsgmanagersgdo,geasy)
10. HenrygFordgisgknowngasgthegFathergofgScientificgManagement.
Falseg(Thegheritagegofgoperationsgmanagement,geasy)
11. Shewhart’sgcontributionsgtogoperationsgmanagementgcamegduringgthegScientificgManagementgEra.
Falseg(Thegheritagegofgoperationsgmanagement,geasy)
12. Studentsgwantinggtogpursuegagcareergingoperationsgmanagementgwillgfindgmultidisciplinaryg
knowledgegbeneficial.
Trueg(WheregaregthegOMgjobs?geasy)
1
,13. Customerginteractiongisgoftenghighgforgmanufacturinggprocesses,gbutglowgforgservices.
Falseg(Operationsgingthegservicegsector,gmoderate)
14. Productivitygisgmoregdifficultgtogimprovegingthegservicegsector.
Trueg(Thegproductivitygchallenge,gmoderate)
15. Manufacturinggnowgconstitutesgtheglargestgeconomicgsectorgingpostindustrialgsocieties.
Falseg(Operationsgingthegservicegsector,gmoderate)
16. Ingthegpastghalf-
century,gthegnumbergofgpeoplegemployedgingmanufacturingghasgmoregorglessgheldgsteady,gbutgeach
gmanufacturinggemployeegisgmanufacturinggaboutg20gtimesgasgmuch.
Trueg(Operationsgingthegservicegsector,geasy)
17. Agknowledgegsocietygisgonegthatghasgmigratedgfromgworkgbasedgongknowledgegtogonegbasedgong
manualgwork.
Falseg(Thegproductivitygchallenge,geasy)
18. Productivitygisgthegtotalgvaluegofgallginputsgtogthegtransformationgprocessgdividedgbygthegtotalgvalueg
ofgthegoutputsgproduced.
Falseg(Thegproductivitygchallenge,geasy)
19. Measuringgthegimpactgofgagcapitalgacquisitiongongproductivitygisgangexamplegofgmulti-
factorgproductivity.
Falseg(Thegproductivitygchallenge,gmoderate)
20. Ethicalgandgsocialgdilemmasgarisegbecausegstakeholdersgofgagbusinessghavegconflictinggperspectives.
Trueg(Ethicsgandgsocialgresponsibility,geasy)g{AACSB:gEthicalgReasoning}
MULTIPLE CHOICEg
21. AtgHardgRockgCafé,gtasksgthatgreflectgoperationsgorgoperationsgmanagementginclude
a. designinggmeals
b. testinggmealsg(recipes)
c. analyzinggmealsgforgthegcostgofgingredients
d. preparinggemployeegschedules
e. allgofgthegabove
eg(Globalgcompanygprofile,geasy)
22. AngoperationsgtaskgperformedgatgHardgRockgCafégis
a. borrowinggfundsgtogbuildgagnewgrestaurant
b. advertisinggchangesgingthegrestaurantgmenu
c. calculatinggrestaurantgprofitgandgloss
d. preparinggemployeegschedules
e. allgofgthegabove
dg(Globalgcompanygprofile,gmoderate)
2
,23. Operationsgmanagementgisgapplicable
a. mostlygtogthegservicegsector
b. togservicesgexclusively
c. mostlygtogthegmanufacturinggsector
d. togallgfirms,gwhethergmanufacturinggandgservice
e. togthegmanufacturinggsectorgexclusively
dg(Whatgisgoperationsgmanagement?gmoderate)
24. Whichgofgthegfollowinggaregthegprimarygfunctionsgofgallgorganizations?
a. operations,gmarketing,gandghumangresources
b. marketing,ghumangresources,gandgfinance/accounting
c. sales,gqualitygcontrol,gandgoperations
d. marketing,goperations,gandgfinance/accounting
e. researchgandgdevelopment,gfinance/accounting,gandgpurchasing
dg(Organizinggtogproduceggoodsgandgservices,gmoderate)
25. Budgeting,gpayinggthegbills,gandgcollectiongofgfundsgaregactivitiesgassociatedgwithgthe
a. managementgfunction
b. controlgfunction
c. finance/accountingg function
d. production/operationsg function
e. staffinggfunction
cg(Organizinggtogproduceggoodsgandgservices,gmoderate)
26. Whichgofgthegfollowinggwouldgnotgbegangoperationsgfunctiongingagfast-foodgrestaurant?
a. advertisinggandgpromotion
b. designinggtheglayoutgofgthegfacility
c. maintaininggequipment
d. makingghamburgersgandgfries
e. purchasinggingredients
ag(Organizinggtogproduceggoodsgandgservices,gmoderate)
27. Thegmarketinggfunction'sgmaingconcerngisgwith
a. producingggoodsgorgprovidinggservices
b. procuringgmaterials,gsupplies,gandgequipment
c. buildinggandgmaintaininggagpositivegimage
d. generatinggthegdemandgforgthegorganization'sgproductsgorgservices
e. securinggmonetarygresources
dg(Organizinggtogproduceggoodsgandgservices,gmoderate)
28. ReasonsgtogstudygOperationsgManagementginclude
a. studyinggwhygpeoplegorganizegthemselvesgforgfreegenterprise
b. knowingghowggoodsgandgservicesgaregconsumed
c. understandinggwhatghumangresourcegmanagersgdo
d. learninggaboutgagcostlygpartgofgthegenterprise
e. allgofgthegabove
dg(WhygstudygOM?gmoderate)
3
, 29. ReasonsgtogstudygOperationsgManagementgincludeglearninggabout
a. whygpeoplegorganizegthemselvesgforgproductivegenterprise
b. howggoodsgandgservicesgaregproduced
c. whatgoperationsgmanagersgdo
d. agcostlygpartgofgthegenterprise
e. allgofgthegabove
eg(WhygstudygOM?geasy)
30. Thegfivegelementsgingthegmanagementgprocessgare
a. plan,gdirect,gupdate,glead,gandgsupervise
b. accounting/finance,gmarketing,goperations,gandgmanagement
c. organize,gplan,gcontrol,gstaff,gandgmanage
d. plan,gorganize,gstaff,glead,gandgcontrol
e. plan,glead,gorganize,gmanage,gandgcontrol
dg(Whatgdogoperationsgmanagersgdo?geasy)
31. Illiteracygandgpoorgdietsghavegbeengknowngtogcostgcountriesgupgtogwhatgpercentgofgtheirg
productivity?
a. 2%
b. 5%
c. 10%
d. 20%
e. 50%
dg(Productivitygvariables,gmoderate)g{AACSB:gMulticulturegandgDiversity}
32. Whichgofgthegfollowinggisgnotgangelementgofgthegmanagementgprocess?
a. controlling
b. leading
c. planning
d. pricing
e. staffing
dg(Whatgdogoperationsgmanagersgdo?geasy)
33. Angoperationsgmanagergisgnotglikelygtogbeginvolvedgin
a. thegdesigngofggoodsgandgservicesgtogsatisfygcustomers'gwantsgandgneeds
b. thegqualitygofggoodsgandgservicesgtogsatisfygcustomers'gwantsgandgneeds
c. thegidentificationgofgcustomers'gwantsgandgneeds
d. workgschedulinggtogmeetgthegduegdatesgpromisedgtogcustomers
e. maintenancegschedules
cg(Whatgdogoperationsgmanagersgdo?geasy)
34. Allgofgthegfollowinggdecisionsgfallgwithingthegscopegofgoperationsgmanagementgexceptgfor
a. financialganalysis
b. designgofggoodsgandgprocesses
c. locationgofgfacilities
d. managinggquality
e. Allgofgthegabovegfallgwithingthegscopegofgoperationsgmanagement.
ag(Whatgdogoperationsgmanagersgdo?geasy)
4