,Table of contents
CHAPTER 1 Operations and Productivity
CHAPTER 2 Operations Strategy in a Global Environment
CHAPTER 3 Project Management
CHAPTER 4 Forecasting
CHAPTER 5 Design of Goods and Services
CHAPTER 6 Managing Quality
CHAPTER 7 Process Strategy
CHAPTER 8 Location Strategies
CHAPTER 9 Layout Strategy
CHAPTER 10 Human Resources, Job Design, and Work Measurement
CHAPTER 11 Supply Chain Management
CHAPTER 12 Inventory Management
CHAPTER 13 Aggregate Planning
CHAPTER 14 Material Requirements Planning (MRP) and ERP
CHAPTER 15 Short-Term Scheduling
CHAPTER 16 Just-In-Time and Lean Operations
CHAPTER 17 Maintenance and Reliability
,Chapter 1: Operations and Productivity
Q1.
Which of the following best defines operations management?
A) The study of how firms use financial resources to maximize shareholder wealth
B) The set of activities that transforms inputs into outputs that provide value to customers
C) The design of promotional strategies to increase demand
D) The management of supply chain relationships alone
Answer: B
Rationale: Operations management (OM) is about creating goods and services through
input transformation processes. Finance, marketing, or supply chain are related but
narrower areas.
Q2.
Which of the following is not one of the three primary functions of an organization?
A) Marketing
B) Operations
C) Finance/Accounting
D) Research and Development
Answer: D
Rationale: Every organization has marketing, operations, and finance/accounting as its
three primary functions. R&D is supportive, but not universal.
Q3.
Which of the following is a single-factor productivity measure?
A) Output ÷ (Labor + Capital)
B) Output ÷ Labor hours
C) Output ÷ (Labor + Materials + Energy)
D) Output ÷ (Capital + Energy)
Answer: B
Rationale: Single-factor productivity uses one input (e.g., labor). Multifactor productivity
combines several inputs.
Q4.
A factory produced 8,000 units using 1,600 labor hours. Productivity is:
A) 4 units/hour
B) 5 units/hour
C) 6 units/hour
D) 8 units/hour
, Answer: B
Rationale: Productivity = Output ÷ Input = 8,000 ÷ 1,600 = 5 units/hour.
Q5.
Which statement best explains why productivity measurement is difficult in services?
A) Service outputs are tangible
B) Services often involve simultaneous production and consumption
C) Services require less customer interaction
D) Service quality is easy to quantify
Answer: B
Rationale: Service productivity is challenging because services are intangible, customized,
and consumed at the point of production, making them harder to standardize and measure.
Q6.
Which of the following is an example of a hidden production function?
A) Preparing meals in a restaurant
B) Classroom teaching
C) Online money transfers in banking
D) Auto assembly in a plant
Answer: C
Rationale: Customers often don’t see internal processes like bank transaction processing,
yet they are production functions.
Q7.
What proportion of annual productivity increases is generally attributed to management
practices?
A) About 10%
B) About 25%
C) More than 50%
D) Less than 5%
Answer: C
Rationale: Studies show management accounts for over half of productivity growth,
through better planning, organization, and process innovation.
Q8.
Which of the following is not one of the Ten Critical Decisions of Operations Management?
A) Process and capacity design
B) Managing quality
CHAPTER 1 Operations and Productivity
CHAPTER 2 Operations Strategy in a Global Environment
CHAPTER 3 Project Management
CHAPTER 4 Forecasting
CHAPTER 5 Design of Goods and Services
CHAPTER 6 Managing Quality
CHAPTER 7 Process Strategy
CHAPTER 8 Location Strategies
CHAPTER 9 Layout Strategy
CHAPTER 10 Human Resources, Job Design, and Work Measurement
CHAPTER 11 Supply Chain Management
CHAPTER 12 Inventory Management
CHAPTER 13 Aggregate Planning
CHAPTER 14 Material Requirements Planning (MRP) and ERP
CHAPTER 15 Short-Term Scheduling
CHAPTER 16 Just-In-Time and Lean Operations
CHAPTER 17 Maintenance and Reliability
,Chapter 1: Operations and Productivity
Q1.
Which of the following best defines operations management?
A) The study of how firms use financial resources to maximize shareholder wealth
B) The set of activities that transforms inputs into outputs that provide value to customers
C) The design of promotional strategies to increase demand
D) The management of supply chain relationships alone
Answer: B
Rationale: Operations management (OM) is about creating goods and services through
input transformation processes. Finance, marketing, or supply chain are related but
narrower areas.
Q2.
Which of the following is not one of the three primary functions of an organization?
A) Marketing
B) Operations
C) Finance/Accounting
D) Research and Development
Answer: D
Rationale: Every organization has marketing, operations, and finance/accounting as its
three primary functions. R&D is supportive, but not universal.
Q3.
Which of the following is a single-factor productivity measure?
A) Output ÷ (Labor + Capital)
B) Output ÷ Labor hours
C) Output ÷ (Labor + Materials + Energy)
D) Output ÷ (Capital + Energy)
Answer: B
Rationale: Single-factor productivity uses one input (e.g., labor). Multifactor productivity
combines several inputs.
Q4.
A factory produced 8,000 units using 1,600 labor hours. Productivity is:
A) 4 units/hour
B) 5 units/hour
C) 6 units/hour
D) 8 units/hour
, Answer: B
Rationale: Productivity = Output ÷ Input = 8,000 ÷ 1,600 = 5 units/hour.
Q5.
Which statement best explains why productivity measurement is difficult in services?
A) Service outputs are tangible
B) Services often involve simultaneous production and consumption
C) Services require less customer interaction
D) Service quality is easy to quantify
Answer: B
Rationale: Service productivity is challenging because services are intangible, customized,
and consumed at the point of production, making them harder to standardize and measure.
Q6.
Which of the following is an example of a hidden production function?
A) Preparing meals in a restaurant
B) Classroom teaching
C) Online money transfers in banking
D) Auto assembly in a plant
Answer: C
Rationale: Customers often don’t see internal processes like bank transaction processing,
yet they are production functions.
Q7.
What proportion of annual productivity increases is generally attributed to management
practices?
A) About 10%
B) About 25%
C) More than 50%
D) Less than 5%
Answer: C
Rationale: Studies show management accounts for over half of productivity growth,
through better planning, organization, and process innovation.
Q8.
Which of the following is not one of the Ten Critical Decisions of Operations Management?
A) Process and capacity design
B) Managing quality
