Test Bank on Operations Management 5th Canadian Edition by Stevenson et al.

Test Bank on Operations Management 5th Canadian Edition by Stevenson et al. Chapter 01 1. As a service business, the operations management activities of an airline company have nothing in common with the operations management activities within a bicycle manufacturing company. True False 2. Operations managers are responsible for managing activities and resources that produce goods and/or provide services. True False 3. Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing cost and time. True False 4. Operations, marketing, and finance function independently of each other in most organizations. True False 5. The operations function exists only in firms that are goods-oriented. True False 6. Operations management pertains almost exclusively to the management of manufacturing operations. True False 7. Value-added refers to the cost of the inputs required to produce goods and services. True False 8. As long as a product is ready in advance of when customers demand it, the timing of when a product is manufactured does not influence the value-added. True False 9. Storing an item earlier than the scheduled delivery date is an example of a value adding activity. True False 10. Management information systems (MIS) are concerned with providing management with the information it needs to effectively manage. True False 11. Operations management involves both system design and planning/control decisions. True False 12. System design decisions have very little impact on planning/control decisions. True False 13. An example of an operations control decision is the choice of location. True False 14. Scheduling jobs is a system design decision and not a planning decision. True False 15. Design decisions are usually strategic and long term, while planning decisions are tactical and medium term. True False 16. Managing inventory levels is considered a planning/control operations decision area. True False 17. A basic difference between manufacturing and service organizations is that services are action-oriented and manufacturing is goods-oriented. True False Operations Management - 5th Canadian Edition - Stevenson et al. 18. Service involves a much higher degree of customer contact than the production of goods. True False 19. Service often requires a higher labour content, whereas the production of goods is more capital intensive. True False 20. Measurement of productivity in service is more straightforward than in goods production due to the high degree of uniformity of inputs. True False 21. Models are simplified representations of something and thus ignore important aspects of a situation. True False 22. Quantitative techniques are often quick and practical techniques for many decisions. True False 23. A systems approach emphasizes interrelationships among subsystems, but its main theme is that the whole is greater than the sum of its individual parts. True False 24. Queuing techniques are useful for analyzing situations in which waiting lines form. True False 25. It is essential to use the systems approach when something is being designed, redesigned, implemented, improved, or otherwise changed. True False 26. A systems approach is to concentrate on efficiency within a subsystem and thereby achieve overall efficiency. True False Operations Management - 5th Canadian Edition - Stevenson et al. 27. Many operations management decisions can be described as trade-offs. True False 28. The Pareto phenomenon is one of the most important and pervasive concepts that can be applied at all levels of management. True False 29. Operations managers, who usually use quantitative approaches, have no responsibility to make ethical decisions. True False 30. Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom made parts. True False 31. Frederick Taylor is often referred to as the "father of scientific management". True False 32. The Human Relations Movement, which emphasized the importance of the human element in job design, was replaced by the more technical aspects of Scientific Management. True Fals