, TABLEOFCONTENTS b b
Chapter 1: Introduction
b b
Chapter 2: Strategy
b b
Chapter 3: Design of Products and Services
b b b b b b
b Chapter 4: Projects
b b
Chapter 5: Strategic Capacity Management
b b b b
b Chapter 6: Learning Curves
b b b
Chapter 7: Manufacturing Processes Chapter
b b b b
8: Facility Layout
b b b
Chapter 9: Service Processes
b b b
Chapter 10: Waiting Line Analysis and Simulation
b b b b b b
b Chapter 11: Process Design and Analysis
b b b b b
Chapter 12: Quality Management Chapter
b b b b
13: Statistical Quality Control Chapter 14:
b b b b b b
Lean Supply Chains
b b b
Chapter 15: Logistics and Distribution Management
b b b b b
b Chapter 16: Global Sourcing and Procurement
b b b b b
b Chapter 17: The Internet of Things and ERP Chapter 18:
b b b b b b b b b b
Forecasting
b
Chapter 19: Sales and Operations Planning
b b b b b
b Chapter 20: Inventory Management
b b b
Chapter 21: Material Requirements Planning Chapter
b b b b b
22: Workcenter Scheduling
b b b
,Chapter 01 b
Efficiency means doing the right things to create the most value for the company.
b b b b b b b b b b b b b
FALSE
Efficiency means doing something at the lowest possible cost.
b b b b b b b b
1. Effectiveness means doing the right things to create the most value for the company.
b b b b b b b b b b b b b
TRUE
Effectiveness means doing the right things to create the most value for the company.
b b b b b b b b b b b b b
AACSB: Analytical Thinking b b
Blooms: Remember b
Difficulty: 1 Easy b b b
Learning Objective: 01-04 Evaluate the efficiency of a firm.
b b b b b b b b
Topic: Efficiency, Effectiveness, and Value
b b b b b
2. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we
b b b b b b b b b b b b b b b b b b b
bcould refer to this doctor as being efficient but not effective.
b b b b b b b b b b
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. The
b b b b b b b b b b b b b b b b b b b b
bdoctor performed the surgery without error. Because the patient died, no value was created.
b b b b b b b b b b b b b
AACSB: Analytical Thinking b b
Blooms: Analyze b
Difficulty: 2 Medium b b b
Learning Objective: 01-04 Evaluate the efficiency of a firm.
b b b b b b b b
Topic: Efficiency, Effectiveness, and Value
b b b b b
3. A worker can be efficient without being effective.
b b b b b b b
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value.
b b b b b b b b b b b b b b b b b b b
bThese are different things.
b b b
AACSB: Analytical Thinking b b
Blooms: b
Understand b
Difficulty: 2 Medium b b b
Learning Objective: 01-04 Evaluate the efficiency of a firm.
b b b b b b b b
Topic: Efficiency, Effectiveness, and Value
b b b b b
, 4. A process can be effective without being efficient.
b b b b b b b
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at the
b b b b b b b b b b b b b b b b b b
bcustomer service counter at a local store or bank means using the fewest number of clerks possible at the counter. Being effective,
b b b b b b b b b b b b b b b b b b b b b
bthough, means minimizing the amount of time customers need to wait in line.
b b b b b b b b b b b b
AACSB: Analytical Thinking b b
Blooms: b
Understand b
Difficulty: 2 Medium b b b
Learning Objective: 01-04 Evaluate the efficiency of a firm.
b b b b b b b b
Topic: Efficiency, Effectiveness, and Value b b b b b
5. Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and
b b b b b b b b b b b b b b b b b b
bdeliver the firm's primary products and services.
b b b b b b
TRUE
Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver
b b b b b b b b b b b b b b b b b b b
bthe firm's primary products and services.
b b b b b
AACSB: Analytical Thinking b b
Blooms: Remember b
Difficulty: 1 Easy b b b
Learning Objective: 01-01 Identify the elements of operations and supply chain management. (OSCM)
b b b b b b b b b b b b
Topic: What Is Operations and Supply Chain Management? b b b b b b b
6. The term "value" refers to the relationship between quality and the price paid by the consumer.
b b b b b b b b b b b b b b b
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.
b b b b b b b b b b b b b b b b b b b
AACSB: Analytical Thinking b b
Blooms: Remember b
Difficulty: 1 Easy b b b
Learning Objective: 01-04 Evaluate the efficiency of a firm.
b b b b b b b b
Topic: Efficiency, Effectiveness, and Value b b b b b
7. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between
b b b b b b b b b b b b b b b b b b
bthe two goals.
b b
TRUE
Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
b b b b b b b b b b b b b b
AACSB: Analytical Thinking b b
Blooms: Analyze b
Difficulty: 1 Easy b b b
Learning Objective: 01-04 Evaluate the efficiency of a firm.
b b b b b b b b
Topic: Efficiency, Effectiveness, and Value b b b b b
Chapter 1: Introduction
b b
Chapter 2: Strategy
b b
Chapter 3: Design of Products and Services
b b b b b b
b Chapter 4: Projects
b b
Chapter 5: Strategic Capacity Management
b b b b
b Chapter 6: Learning Curves
b b b
Chapter 7: Manufacturing Processes Chapter
b b b b
8: Facility Layout
b b b
Chapter 9: Service Processes
b b b
Chapter 10: Waiting Line Analysis and Simulation
b b b b b b
b Chapter 11: Process Design and Analysis
b b b b b
Chapter 12: Quality Management Chapter
b b b b
13: Statistical Quality Control Chapter 14:
b b b b b b
Lean Supply Chains
b b b
Chapter 15: Logistics and Distribution Management
b b b b b
b Chapter 16: Global Sourcing and Procurement
b b b b b
b Chapter 17: The Internet of Things and ERP Chapter 18:
b b b b b b b b b b
Forecasting
b
Chapter 19: Sales and Operations Planning
b b b b b
b Chapter 20: Inventory Management
b b b
Chapter 21: Material Requirements Planning Chapter
b b b b b
22: Workcenter Scheduling
b b b
,Chapter 01 b
Efficiency means doing the right things to create the most value for the company.
b b b b b b b b b b b b b
FALSE
Efficiency means doing something at the lowest possible cost.
b b b b b b b b
1. Effectiveness means doing the right things to create the most value for the company.
b b b b b b b b b b b b b
TRUE
Effectiveness means doing the right things to create the most value for the company.
b b b b b b b b b b b b b
AACSB: Analytical Thinking b b
Blooms: Remember b
Difficulty: 1 Easy b b b
Learning Objective: 01-04 Evaluate the efficiency of a firm.
b b b b b b b b
Topic: Efficiency, Effectiveness, and Value
b b b b b
2. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we
b b b b b b b b b b b b b b b b b b b
bcould refer to this doctor as being efficient but not effective.
b b b b b b b b b b
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. The
b b b b b b b b b b b b b b b b b b b b
bdoctor performed the surgery without error. Because the patient died, no value was created.
b b b b b b b b b b b b b
AACSB: Analytical Thinking b b
Blooms: Analyze b
Difficulty: 2 Medium b b b
Learning Objective: 01-04 Evaluate the efficiency of a firm.
b b b b b b b b
Topic: Efficiency, Effectiveness, and Value
b b b b b
3. A worker can be efficient without being effective.
b b b b b b b
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value.
b b b b b b b b b b b b b b b b b b b
bThese are different things.
b b b
AACSB: Analytical Thinking b b
Blooms: b
Understand b
Difficulty: 2 Medium b b b
Learning Objective: 01-04 Evaluate the efficiency of a firm.
b b b b b b b b
Topic: Efficiency, Effectiveness, and Value
b b b b b
, 4. A process can be effective without being efficient.
b b b b b b b
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at the
b b b b b b b b b b b b b b b b b b
bcustomer service counter at a local store or bank means using the fewest number of clerks possible at the counter. Being effective,
b b b b b b b b b b b b b b b b b b b b b
bthough, means minimizing the amount of time customers need to wait in line.
b b b b b b b b b b b b
AACSB: Analytical Thinking b b
Blooms: b
Understand b
Difficulty: 2 Medium b b b
Learning Objective: 01-04 Evaluate the efficiency of a firm.
b b b b b b b b
Topic: Efficiency, Effectiveness, and Value b b b b b
5. Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and
b b b b b b b b b b b b b b b b b b
bdeliver the firm's primary products and services.
b b b b b b
TRUE
Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver
b b b b b b b b b b b b b b b b b b b
bthe firm's primary products and services.
b b b b b
AACSB: Analytical Thinking b b
Blooms: Remember b
Difficulty: 1 Easy b b b
Learning Objective: 01-01 Identify the elements of operations and supply chain management. (OSCM)
b b b b b b b b b b b b
Topic: What Is Operations and Supply Chain Management? b b b b b b b
6. The term "value" refers to the relationship between quality and the price paid by the consumer.
b b b b b b b b b b b b b b b
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.
b b b b b b b b b b b b b b b b b b b
AACSB: Analytical Thinking b b
Blooms: Remember b
Difficulty: 1 Easy b b b
Learning Objective: 01-04 Evaluate the efficiency of a firm.
b b b b b b b b
Topic: Efficiency, Effectiveness, and Value b b b b b
7. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between
b b b b b b b b b b b b b b b b b b
bthe two goals.
b b
TRUE
Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
b b b b b b b b b b b b b b
AACSB: Analytical Thinking b b
Blooms: Analyze b
Difficulty: 1 Easy b b b
Learning Objective: 01-04 Evaluate the efficiency of a firm.
b b b b b b b b
Topic: Efficiency, Effectiveness, and Value b b b b b
