Chapter 1
Introduction to Operations Management
True/False
1. Operations managers are responsible for assessing consumer wants and needs
and selling and promoting the organization's goods or services.
Answer: False
2. Often, the collective success or failure of companies' operations functions will
impact the ability of a nation to compete with other nations.
Answer: True
3. Companies are either producing goods or delivering services. This means that
only one of the two types of operations management strategies is used.
Answer: False
4. Operations, marketing, and finance function independently of each other in most
organizations.
Answer: False
5. The greater the degree of customer involvement, the more challenging the design
and management of operations.
Answer: True
6. Goods producing organizations are not involved in service activities
Answer: False
7. Service operations require additional inventory because of the unpredictability of
consumer demand.
Answer: False
8. The value of outputs is measured by the prices customers are willing to pay for
goods or services.
Answer: True
9. The use of models will guarantee the best possible decisions.
Answer: False
10. People who work in the field of operations should have skills that include both
knowledge and people skills.
1
, Answer: True
11. Assembly lines achieved productivity but at the expense of standard of living.
Answer: False
12. The operations manager has primary responsibility for making operations system
design decisions, such as system capacity and location of facilities.
Answer: False
13. The word 'technology' is used only to refer to 'information technology'.
Answer: False
14. ‘Value added’ by definition is always a positive number since 'added' implies
increases.
Answer: False
15. Service often requires a greater labor content, whereas manufacturing is more
capital intensive.
Answer: True
16. Measurement of productivity in service is more straightforward than in
manufacturing since it is not necessary to take into account the cost of materials.
Answer: False
17. Outsourcing often involves collaboration with our competitors to prevent partners
from taking unfair advantage of us.
Answer: False
18. One method of classifying production systems is the degree of standardization.
Answer: True
19. Most people encounter operations only in profit-making organizations.
Answer: False
20. Service involves a much higher degree of customer contact than manufacturing.
Answer: True
21. A systems approach emphasizes interrelationships among subsystems, but its
main theme is that the whole is greater than the sum of its individual parts.
2
Introduction to Operations Management
True/False
1. Operations managers are responsible for assessing consumer wants and needs
and selling and promoting the organization's goods or services.
Answer: False
2. Often, the collective success or failure of companies' operations functions will
impact the ability of a nation to compete with other nations.
Answer: True
3. Companies are either producing goods or delivering services. This means that
only one of the two types of operations management strategies is used.
Answer: False
4. Operations, marketing, and finance function independently of each other in most
organizations.
Answer: False
5. The greater the degree of customer involvement, the more challenging the design
and management of operations.
Answer: True
6. Goods producing organizations are not involved in service activities
Answer: False
7. Service operations require additional inventory because of the unpredictability of
consumer demand.
Answer: False
8. The value of outputs is measured by the prices customers are willing to pay for
goods or services.
Answer: True
9. The use of models will guarantee the best possible decisions.
Answer: False
10. People who work in the field of operations should have skills that include both
knowledge and people skills.
1
, Answer: True
11. Assembly lines achieved productivity but at the expense of standard of living.
Answer: False
12. The operations manager has primary responsibility for making operations system
design decisions, such as system capacity and location of facilities.
Answer: False
13. The word 'technology' is used only to refer to 'information technology'.
Answer: False
14. ‘Value added’ by definition is always a positive number since 'added' implies
increases.
Answer: False
15. Service often requires a greater labor content, whereas manufacturing is more
capital intensive.
Answer: True
16. Measurement of productivity in service is more straightforward than in
manufacturing since it is not necessary to take into account the cost of materials.
Answer: False
17. Outsourcing often involves collaboration with our competitors to prevent partners
from taking unfair advantage of us.
Answer: False
18. One method of classifying production systems is the degree of standardization.
Answer: True
19. Most people encounter operations only in profit-making organizations.
Answer: False
20. Service involves a much higher degree of customer contact than manufacturing.
Answer: True
21. A systems approach emphasizes interrelationships among subsystems, but its
main theme is that the whole is greater than the sum of its individual parts.
2
