CHAPTER 1: OPERATIONS AND PRODUCTIVITY
d d d d
TRUE/FALSE
1. Somedofdthedoperations-
relateddactivitiesdofdHarddRockdCafédincludeddesigningdmealsdanddanalyzingdthemdfordingredientdcost
danddlabordrequirements.
Trued(Globaldcompanydprofile,deasy)
2. ThedproductiondprocessdatdHarddRockdCafédisdlimiteddtodmealdpreparationdanddservingdcustomers.
Falsed(Globaldcompanydprofile,deasy)
3. Alldorganizations,dincludingdservicedfirmsdsuchdasdbanksdanddhospitals,dhavedadproductiondfunction.
Trued(Whatdisdoperationsdmanagement?dmoderate)
4. Operationsdmanagementdisdthedsetdofdactivitiesdthatdcreatedvaluedindthedformdofdgoodsdanddservicesd
bydtransformingdinputsdintodoutputs.
Trued(Whatdisdoperationsdmanagement?deasy)
5. Andexampledofdad"hidden"dproductiondfunctiondisdmoneydtransfersdatdbanks.
Trued(Whatdisdoperationsdmanagement?dmoderate)
6. Onedreasondtodstudydoperationsdmanagementdisdtodlearndhowdpeopledorganizedthemselvesdford
productivedenterprise.
Trued(WhydstudydOM,deasy)
7. Thedoperationsdmanagerdperformsdthedmanagementdactivitiesdofdplanning,dorganizing,dstaffing,d
leading,danddcontrollingdofdthedOMdfunction.
Trued(Whatdoperationsdmanagersddo,deasy)
8. "Howdmuchdinventorydofdthisditemdshoulddwedhave?"disdwithindthedcriticalddecisiondareadofd
managingdquality.
Falsed(Whatdoperationsdmanagersddo,deasy)
9. Indorderdtodhavedadcareerdindoperationsdmanagement,donedmustdhavedaddegreedindstatisticsdord
quantitativedmethods.
Falsed(Whatdoperationsdmanagersddo,deasy)
10. HenrydForddisdknowndasdthedFatherdofdScientificdManagement.
Falsed(Thedheritagedofdoperationsdmanagement,deasy)
11. Shewhart’sdcontributionsdtodoperationsdmanagementdcamedduringdthedScientificdManagementdEra.
Falsed(Thedheritagedofdoperationsdmanagement,deasy)
12. Studentsdwantingdtodpursuedadcareerdindoperationsdmanagementdwilldfinddmultidisciplinaryd
knowledgedbeneficial.
Trued(WheredaredthedOMdjobs?deasy)
1
,13. Customerdinteractiondisdoftendhighdfordmanufacturingdprocesses,dbutdlowdfordservices.
Falsed(Operationsdindthedservicedsector,dmoderate)
14. Productivitydisdmoreddifficultdtodimprovedindthedservicedsector.
Trued(Thedproductivitydchallenge,dmoderate)
15. Manufacturingdnowdconstitutesdthedlargestdeconomicdsectordindpostindustrialdsocieties.
Falsed(Operationsdindthedservicedsector,dmoderate)
16. Indthedpastdhalf-
century,dthednumberdofdpeopledemployeddindmanufacturingdhasdmoredordlessdhelddsteady,dbutdeach
dmanufacturingdemployeedisdmanufacturingdaboutd20dtimesdasdmuch.
Trued(Operationsdindthedservicedsector,deasy)
17. Adknowledgedsocietydisdonedthatdhasdmigrateddfromdworkdbaseddondknowledgedtodonedbaseddond
manualdwork.
Falsed(Thedproductivitydchallenge,deasy)
18. Productivitydisdthedtotaldvaluedofdalldinputsdtodthedtransformationdprocessddivideddbydthedtotaldvalued
ofdthedoutputsdproduced.
Falsed(Thedproductivitydchallenge,deasy)
19. Measuringdthedimpactdofdadcapitaldacquisitiondondproductivitydisdandexampledofdmulti-
factordproductivity.
Falsed(Thedproductivitydchallenge,dmoderate)
20. Ethicaldanddsocialddilemmasdarisedbecausedstakeholdersdofdadbusinessdhavedconflictingdperspectives.
Trued(Ethicsdanddsocialdresponsibility,deasy)d{AACSB:dEthicaldReasoning}
MULTIPLE CHOICEd
21. AtdHarddRockdCafé,dtasksdthatdreflectdoperationsdordoperationsdmanagementdinclude
a. designingdmeals
b. testingdmealsd(recipes)
c. analyzingdmealsdfordthedcostdofdingredients
d. preparingdemployeedschedules
e. alldofdthedabove
ed(Globaldcompanydprofile,deasy)
22. AndoperationsdtaskdperformeddatdHarddRockdCafédis
a. borrowingdfundsdtodbuilddadnewdrestaurant
b. advertisingdchangesdindthedrestaurantdmenu
c. calculatingdrestaurantdprofitdanddloss
d. preparingdemployeedschedules
e. alldofdthedabove
dd(Globaldcompanydprofile,dmoderate)
2
,23. Operationsdmanagementdisdapplicable
a. mostlydtodthedservicedsector
b. todservicesdexclusively
c. mostlydtodthedmanufacturingdsector
d. todalldfirms,dwhetherdmanufacturingdanddservice
e. todthedmanufacturingdsectordexclusively
dd(Whatdisdoperationsdmanagement?dmoderate)
24. Whichdofdthedfollowingdaredthedprimarydfunctionsdofdalldorganizations?
a. operations,dmarketing,danddhumandresources
b. marketing,dhumandresources,danddfinance/accounting
c. sales,dqualitydcontrol,danddoperations
d. marketing,doperations,danddfinance/accounting
e. researchdandddevelopment,dfinance/accounting,danddpurchasing
dd(Organizingdtodproducedgoodsdanddservices,dmoderate)
25. Budgeting,dpayingdthedbills,danddcollectiondofdfundsdaredactivitiesdassociateddwithdthe
a. managementdfunction
b. controldfunction
c. finance/accountingd function
d. production/operationsd function
e. staffingdfunction
cd(Organizingdtodproducedgoodsdanddservices,dmoderate)
26. Whichdofdthedfollowingdwoulddnotdbedandoperationsdfunctiondindadfast-fooddrestaurant?
a. advertisingdanddpromotion
b. designingdthedlayoutdofdthedfacility
c. maintainingdequipment
d. makingdhamburgersdanddfries
e. purchasingdingredients
ad(Organizingdtodproducedgoodsdanddservices,dmoderate)
27. Thedmarketingdfunction'sdmaindconcerndisdwith
a. producingdgoodsdordprovidingdservices
b. procuringdmaterials,dsupplies,danddequipment
c. buildingdanddmaintainingdadpositivedimage
d. generatingdtheddemanddfordthedorganization'sdproductsdordservices
e. securingdmonetarydresources
dd(Organizingdtodproducedgoodsdanddservices,dmoderate)
28. ReasonsdtodstudydOperationsdManagementdinclude
a. studyingdwhydpeopledorganizedthemselvesdfordfreedenterprise
b. knowingdhowdgoodsdanddservicesdaredconsumed
c. understandingdwhatdhumandresourcedmanagersddo
d. learningdaboutdadcostlydpartdofdthedenterprise
e. alldofdthedabove
dd(WhydstudydOM?dmoderate)
3
, 29. ReasonsdtodstudydOperationsdManagementdincludedlearningdabout
a. whydpeopledorganizedthemselvesdfordproductivedenterprise
b. howdgoodsdanddservicesdaredproduced
c. whatdoperationsdmanagersddo
d. adcostlydpartdofdthedenterprise
e. alldofdthedabove
ed(WhydstudydOM?deasy)
30. Thedfivedelementsdindthedmanagementdprocessdare
a. plan,ddirect,dupdate,dlead,danddsupervise
b. accounting/finance,dmarketing,doperations,danddmanagement
c. organize,dplan,dcontrol,dstaff,danddmanage
d. plan,dorganize,dstaff,dlead,danddcontrol
e. plan,dlead,dorganize,dmanage,danddcontrol
dd(Whatddodoperationsdmanagersddo?deasy)
31. Illiteracydanddpoorddietsdhavedbeendknowndtodcostdcountriesdupdtodwhatdpercentdofdtheird
productivity?
a. 2%
b. 5%
c. 10%
d. 20%
e. 50%
dd(Productivitydvariables,dmoderate)d{AACSB:dMulticulturedanddDiversity}
32. Whichdofdthedfollowingdisdnotdandelementdofdthedmanagementdprocess?
a. controlling
b. leading
c. planning
d. pricing
e. staffing
dd(Whatddodoperationsdmanagersddo?deasy)
33. Andoperationsdmanagerdisdnotdlikelydtodbedinvolveddin
a. theddesigndofdgoodsdanddservicesdtodsatisfydcustomers'dwantsdanddneeds
b. thedqualitydofdgoodsdanddservicesdtodsatisfydcustomers'dwantsdanddneeds
c. thedidentificationdofdcustomers'dwantsdanddneeds
d. workdschedulingdtodmeetdtheddueddatesdpromiseddtodcustomers
e. maintenancedschedules
cd(Whatddodoperationsdmanagersddo?deasy)
34. Alldofdthedfollowingddecisionsdfalldwithindthedscopedofdoperationsdmanagementdexceptdfor
a. financialdanalysis
b. designdofdgoodsdanddprocesses
c. locationdofdfacilities
d. managingdquality
e. Alldofdthedabovedfalldwithindthedscopedofdoperationsdmanagement.
ad(Whatddodoperationsdmanagersddo?deasy)
4
d d d d
TRUE/FALSE
1. Somedofdthedoperations-
relateddactivitiesdofdHarddRockdCafédincludeddesigningdmealsdanddanalyzingdthemdfordingredientdcost
danddlabordrequirements.
Trued(Globaldcompanydprofile,deasy)
2. ThedproductiondprocessdatdHarddRockdCafédisdlimiteddtodmealdpreparationdanddservingdcustomers.
Falsed(Globaldcompanydprofile,deasy)
3. Alldorganizations,dincludingdservicedfirmsdsuchdasdbanksdanddhospitals,dhavedadproductiondfunction.
Trued(Whatdisdoperationsdmanagement?dmoderate)
4. Operationsdmanagementdisdthedsetdofdactivitiesdthatdcreatedvaluedindthedformdofdgoodsdanddservicesd
bydtransformingdinputsdintodoutputs.
Trued(Whatdisdoperationsdmanagement?deasy)
5. Andexampledofdad"hidden"dproductiondfunctiondisdmoneydtransfersdatdbanks.
Trued(Whatdisdoperationsdmanagement?dmoderate)
6. Onedreasondtodstudydoperationsdmanagementdisdtodlearndhowdpeopledorganizedthemselvesdford
productivedenterprise.
Trued(WhydstudydOM,deasy)
7. Thedoperationsdmanagerdperformsdthedmanagementdactivitiesdofdplanning,dorganizing,dstaffing,d
leading,danddcontrollingdofdthedOMdfunction.
Trued(Whatdoperationsdmanagersddo,deasy)
8. "Howdmuchdinventorydofdthisditemdshoulddwedhave?"disdwithindthedcriticalddecisiondareadofd
managingdquality.
Falsed(Whatdoperationsdmanagersddo,deasy)
9. Indorderdtodhavedadcareerdindoperationsdmanagement,donedmustdhavedaddegreedindstatisticsdord
quantitativedmethods.
Falsed(Whatdoperationsdmanagersddo,deasy)
10. HenrydForddisdknowndasdthedFatherdofdScientificdManagement.
Falsed(Thedheritagedofdoperationsdmanagement,deasy)
11. Shewhart’sdcontributionsdtodoperationsdmanagementdcamedduringdthedScientificdManagementdEra.
Falsed(Thedheritagedofdoperationsdmanagement,deasy)
12. Studentsdwantingdtodpursuedadcareerdindoperationsdmanagementdwilldfinddmultidisciplinaryd
knowledgedbeneficial.
Trued(WheredaredthedOMdjobs?deasy)
1
,13. Customerdinteractiondisdoftendhighdfordmanufacturingdprocesses,dbutdlowdfordservices.
Falsed(Operationsdindthedservicedsector,dmoderate)
14. Productivitydisdmoreddifficultdtodimprovedindthedservicedsector.
Trued(Thedproductivitydchallenge,dmoderate)
15. Manufacturingdnowdconstitutesdthedlargestdeconomicdsectordindpostindustrialdsocieties.
Falsed(Operationsdindthedservicedsector,dmoderate)
16. Indthedpastdhalf-
century,dthednumberdofdpeopledemployeddindmanufacturingdhasdmoredordlessdhelddsteady,dbutdeach
dmanufacturingdemployeedisdmanufacturingdaboutd20dtimesdasdmuch.
Trued(Operationsdindthedservicedsector,deasy)
17. Adknowledgedsocietydisdonedthatdhasdmigrateddfromdworkdbaseddondknowledgedtodonedbaseddond
manualdwork.
Falsed(Thedproductivitydchallenge,deasy)
18. Productivitydisdthedtotaldvaluedofdalldinputsdtodthedtransformationdprocessddivideddbydthedtotaldvalued
ofdthedoutputsdproduced.
Falsed(Thedproductivitydchallenge,deasy)
19. Measuringdthedimpactdofdadcapitaldacquisitiondondproductivitydisdandexampledofdmulti-
factordproductivity.
Falsed(Thedproductivitydchallenge,dmoderate)
20. Ethicaldanddsocialddilemmasdarisedbecausedstakeholdersdofdadbusinessdhavedconflictingdperspectives.
Trued(Ethicsdanddsocialdresponsibility,deasy)d{AACSB:dEthicaldReasoning}
MULTIPLE CHOICEd
21. AtdHarddRockdCafé,dtasksdthatdreflectdoperationsdordoperationsdmanagementdinclude
a. designingdmeals
b. testingdmealsd(recipes)
c. analyzingdmealsdfordthedcostdofdingredients
d. preparingdemployeedschedules
e. alldofdthedabove
ed(Globaldcompanydprofile,deasy)
22. AndoperationsdtaskdperformeddatdHarddRockdCafédis
a. borrowingdfundsdtodbuilddadnewdrestaurant
b. advertisingdchangesdindthedrestaurantdmenu
c. calculatingdrestaurantdprofitdanddloss
d. preparingdemployeedschedules
e. alldofdthedabove
dd(Globaldcompanydprofile,dmoderate)
2
,23. Operationsdmanagementdisdapplicable
a. mostlydtodthedservicedsector
b. todservicesdexclusively
c. mostlydtodthedmanufacturingdsector
d. todalldfirms,dwhetherdmanufacturingdanddservice
e. todthedmanufacturingdsectordexclusively
dd(Whatdisdoperationsdmanagement?dmoderate)
24. Whichdofdthedfollowingdaredthedprimarydfunctionsdofdalldorganizations?
a. operations,dmarketing,danddhumandresources
b. marketing,dhumandresources,danddfinance/accounting
c. sales,dqualitydcontrol,danddoperations
d. marketing,doperations,danddfinance/accounting
e. researchdandddevelopment,dfinance/accounting,danddpurchasing
dd(Organizingdtodproducedgoodsdanddservices,dmoderate)
25. Budgeting,dpayingdthedbills,danddcollectiondofdfundsdaredactivitiesdassociateddwithdthe
a. managementdfunction
b. controldfunction
c. finance/accountingd function
d. production/operationsd function
e. staffingdfunction
cd(Organizingdtodproducedgoodsdanddservices,dmoderate)
26. Whichdofdthedfollowingdwoulddnotdbedandoperationsdfunctiondindadfast-fooddrestaurant?
a. advertisingdanddpromotion
b. designingdthedlayoutdofdthedfacility
c. maintainingdequipment
d. makingdhamburgersdanddfries
e. purchasingdingredients
ad(Organizingdtodproducedgoodsdanddservices,dmoderate)
27. Thedmarketingdfunction'sdmaindconcerndisdwith
a. producingdgoodsdordprovidingdservices
b. procuringdmaterials,dsupplies,danddequipment
c. buildingdanddmaintainingdadpositivedimage
d. generatingdtheddemanddfordthedorganization'sdproductsdordservices
e. securingdmonetarydresources
dd(Organizingdtodproducedgoodsdanddservices,dmoderate)
28. ReasonsdtodstudydOperationsdManagementdinclude
a. studyingdwhydpeopledorganizedthemselvesdfordfreedenterprise
b. knowingdhowdgoodsdanddservicesdaredconsumed
c. understandingdwhatdhumandresourcedmanagersddo
d. learningdaboutdadcostlydpartdofdthedenterprise
e. alldofdthedabove
dd(WhydstudydOM?dmoderate)
3
, 29. ReasonsdtodstudydOperationsdManagementdincludedlearningdabout
a. whydpeopledorganizedthemselvesdfordproductivedenterprise
b. howdgoodsdanddservicesdaredproduced
c. whatdoperationsdmanagersddo
d. adcostlydpartdofdthedenterprise
e. alldofdthedabove
ed(WhydstudydOM?deasy)
30. Thedfivedelementsdindthedmanagementdprocessdare
a. plan,ddirect,dupdate,dlead,danddsupervise
b. accounting/finance,dmarketing,doperations,danddmanagement
c. organize,dplan,dcontrol,dstaff,danddmanage
d. plan,dorganize,dstaff,dlead,danddcontrol
e. plan,dlead,dorganize,dmanage,danddcontrol
dd(Whatddodoperationsdmanagersddo?deasy)
31. Illiteracydanddpoorddietsdhavedbeendknowndtodcostdcountriesdupdtodwhatdpercentdofdtheird
productivity?
a. 2%
b. 5%
c. 10%
d. 20%
e. 50%
dd(Productivitydvariables,dmoderate)d{AACSB:dMulticulturedanddDiversity}
32. Whichdofdthedfollowingdisdnotdandelementdofdthedmanagementdprocess?
a. controlling
b. leading
c. planning
d. pricing
e. staffing
dd(Whatddodoperationsdmanagersddo?deasy)
33. Andoperationsdmanagerdisdnotdlikelydtodbedinvolveddin
a. theddesigndofdgoodsdanddservicesdtodsatisfydcustomers'dwantsdanddneeds
b. thedqualitydofdgoodsdanddservicesdtodsatisfydcustomers'dwantsdanddneeds
c. thedidentificationdofdcustomers'dwantsdanddneeds
d. workdschedulingdtodmeetdtheddueddatesdpromiseddtodcustomers
e. maintenancedschedules
cd(Whatddodoperationsdmanagersddo?deasy)
34. Alldofdthedfollowingddecisionsdfalldwithindthedscopedofdoperationsdmanagementdexceptdfor
a. financialdanalysis
b. designdofdgoodsdanddprocesses
c. locationdofdfacilities
d. managingdquality
e. Alldofdthedabovedfalldwithindthedscopedofdoperationsdmanagement.
ad(Whatddodoperationsdmanagersddo?deasy)
4