1-1
Copyrightn!©2021n!McGraw-Hilln!Education.n!Alln!rightsn!reserved.n!Non!reproductionn!orn!distributionn!withoutn!then!priorn!writtenn!consentn!ofn!McGraw-
Hilln!Education.
,TEST BANK FOR n! n!
Operations and Supply Chain Management 17th Edition By F. Robert Jacobs
n! n! n! n! n! n! n! n! n! n!
Chapter 1-22 n!
Chapter 01 Test Bank Static n! n! n! n!
1. Efficiency means doing the right things to create the most value for the company.
n! n! n! n! n! n! n! n! n! n! n! n! n!
FALSE
Efficiency means doing something at the lowest possible cost.
n! n! n! n! n! n! n! n!
2. Effectiveness means doing the right things to create the most value for the company.
n! n! n! n! n! n! n! n! n! n! n! n! n!
TRUE
Effectiveness means doing the right things to create the most value for the company.
n! n! n! n! n! n! n! n! n! n! n! n! n!
AACSB:n!Analyticaln!Thinking
Blooms:n!Remembe
rn ! Difficulty:n!1n!
Easy
Learningn!Objective:n!01-
04n!Evaluaten!then!efficiencyn!ofn!an!firm.n ! To
pic:n!Efficiency,n!Effectiveness,n!andn!Value
3. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms,
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
we could refer to this doctor as being efficient but not effective.
n! n! n! n! n! n! n! n! n! n! n!
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. The
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
doctor performed the surgery without error. Because the patient died, no value was created.
n! n! n! n! n! n! n! n! n! n! n! n! n!
AACSB:n!Analyticaln!Thinking
Blooms:n!Analyz
en ! Difficulty:n!2n!Med
ium
Learningn!Objective:n!01-
04n!Evaluaten!then!efficiencyn!ofn!an!firm.n ! To
pic:n!Efficiency,n!Effectiveness,n!andn!Value
4. A worker can be efficient without being effective.
n! n! n! n! n! n! n!
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value.
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n
These are different things.
! n! n! n!
AACSB:n!Analyticaln!Thinkin
gn ! Blooms:n!Underst
andn ! Difficulty:n!2n!
Medium
Learningn!Objective:n!01-
04n!Evaluaten!then!efficiencyn!ofn!an!firm.n ! To
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Hilln!Education.
, pic:n!Efficiency,n!Effectiveness,n!andn!Value
1-3
Copyrightn!©2021n!McGraw-Hilln!Education.n!Alln!rightsn!reserved.n!Non!reproductionn!orn!distributionn!withoutn!then!priorn!writtenn!consentn!ofn!McGraw-
Hilln!Education.
, 5. A process can be effective without being efficient.
n! n! n! n! n! n! n!
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at the c
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
ustomer service counter at a local store or bank means using the fewest number of clerks possible at the counter. Being effective, t
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
hough, means minimizing the amount of time customers need to wait in line.
n! n! n! n! n! n! n! n! n! n! n! n!
AACSB:n!Analyticaln!Thinkin
gn ! Blooms:n!Underst
andn ! Difficulty:n!2n!
Medium
Learningn!Objective:n!01-
04n!Evaluaten!then!efficiencyn!ofn!an!firm.n ! To
pic:n!Efficiency,n!Effectiveness,n!andn!Value
6. Operations and supply chain management is defined as the design, operation, and improvement of the systems that create
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
and deliver the firm's primary products and services.
n! n! n! n! n! n! n!
TRUE
Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deli
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
ver the firm's primary products and services.
n! n! n! n! n! n!
AACSB:n!Analyticaln!Thinking
Blooms:n!Remembe
rn ! Difficulty:n!1n!
Easy
Learningn!Objective:n!01-01n!Identifyn!then!elementsn!ofn!operationsn!andn!supplyn!chainn!management.n!(OSCM)
Topic:n!Whatn!Isn!Operationsn!andn!Supplyn!Chainn!Management?
7. The term "value" refers to the relationship between quality and the price paid by the consumer.
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
AACSB:n!Analyticaln!Thinking
Blooms:n!Remembe
rn ! Difficulty:n!1n!
Easy
Learningn!Objective:n!01-
04n!Evaluaten!then!efficiencyn!ofn!an!firm.n ! To
pic:n!Efficiency,n!Effectiveness,n!andn!Value
8. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict betw
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
een the two goals.
n! n! n!
TRUE
Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
n! n! n! n! n! n! n! n! n! n! n! n! n! n!
AACSB:n!Analyticaln!Thinking
Blooms:n!Analyz
en ! Difficulty:n!1n!
Easy
Learningn!Objective:n!01-
04n!Evaluaten!then!efficiencyn!ofn!an!firm.n ! To
pic:n!Efficiency,n!Effectiveness,n!andn!Value
1-4
Copyrightn!©2021n!McGraw-Hilln!Education.n!Alln!rightsn!reserved.n!Non!reproductionn!orn!distributionn!withoutn!then!priorn!writtenn!consentn!ofn!McGraw-
Hilln!Education.
Copyrightn!©2021n!McGraw-Hilln!Education.n!Alln!rightsn!reserved.n!Non!reproductionn!orn!distributionn!withoutn!then!priorn!writtenn!consentn!ofn!McGraw-
Hilln!Education.
,TEST BANK FOR n! n!
Operations and Supply Chain Management 17th Edition By F. Robert Jacobs
n! n! n! n! n! n! n! n! n! n!
Chapter 1-22 n!
Chapter 01 Test Bank Static n! n! n! n!
1. Efficiency means doing the right things to create the most value for the company.
n! n! n! n! n! n! n! n! n! n! n! n! n!
FALSE
Efficiency means doing something at the lowest possible cost.
n! n! n! n! n! n! n! n!
2. Effectiveness means doing the right things to create the most value for the company.
n! n! n! n! n! n! n! n! n! n! n! n! n!
TRUE
Effectiveness means doing the right things to create the most value for the company.
n! n! n! n! n! n! n! n! n! n! n! n! n!
AACSB:n!Analyticaln!Thinking
Blooms:n!Remembe
rn ! Difficulty:n!1n!
Easy
Learningn!Objective:n!01-
04n!Evaluaten!then!efficiencyn!ofn!an!firm.n ! To
pic:n!Efficiency,n!Effectiveness,n!andn!Value
3. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms,
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
we could refer to this doctor as being efficient but not effective.
n! n! n! n! n! n! n! n! n! n! n!
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. The
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
doctor performed the surgery without error. Because the patient died, no value was created.
n! n! n! n! n! n! n! n! n! n! n! n! n!
AACSB:n!Analyticaln!Thinking
Blooms:n!Analyz
en ! Difficulty:n!2n!Med
ium
Learningn!Objective:n!01-
04n!Evaluaten!then!efficiencyn!ofn!an!firm.n ! To
pic:n!Efficiency,n!Effectiveness,n!andn!Value
4. A worker can be efficient without being effective.
n! n! n! n! n! n! n!
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value.
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n
These are different things.
! n! n! n!
AACSB:n!Analyticaln!Thinkin
gn ! Blooms:n!Underst
andn ! Difficulty:n!2n!
Medium
Learningn!Objective:n!01-
04n!Evaluaten!then!efficiencyn!ofn!an!firm.n ! To
1-2
Copyrightn!©2021n!McGraw-Hilln!Education.n!Alln!rightsn!reserved.n!Non!reproductionn!orn!distributionn!withoutn!then!priorn!writtenn!consentn!ofn!McGraw-
Hilln!Education.
, pic:n!Efficiency,n!Effectiveness,n!andn!Value
1-3
Copyrightn!©2021n!McGraw-Hilln!Education.n!Alln!rightsn!reserved.n!Non!reproductionn!orn!distributionn!withoutn!then!priorn!writtenn!consentn!ofn!McGraw-
Hilln!Education.
, 5. A process can be effective without being efficient.
n! n! n! n! n! n! n!
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at the c
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
ustomer service counter at a local store or bank means using the fewest number of clerks possible at the counter. Being effective, t
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
hough, means minimizing the amount of time customers need to wait in line.
n! n! n! n! n! n! n! n! n! n! n! n!
AACSB:n!Analyticaln!Thinkin
gn ! Blooms:n!Underst
andn ! Difficulty:n!2n!
Medium
Learningn!Objective:n!01-
04n!Evaluaten!then!efficiencyn!ofn!an!firm.n ! To
pic:n!Efficiency,n!Effectiveness,n!andn!Value
6. Operations and supply chain management is defined as the design, operation, and improvement of the systems that create
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
and deliver the firm's primary products and services.
n! n! n! n! n! n! n!
TRUE
Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deli
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
ver the firm's primary products and services.
n! n! n! n! n! n!
AACSB:n!Analyticaln!Thinking
Blooms:n!Remembe
rn ! Difficulty:n!1n!
Easy
Learningn!Objective:n!01-01n!Identifyn!then!elementsn!ofn!operationsn!andn!supplyn!chainn!management.n!(OSCM)
Topic:n!Whatn!Isn!Operationsn!andn!Supplyn!Chainn!Management?
7. The term "value" refers to the relationship between quality and the price paid by the consumer.
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
AACSB:n!Analyticaln!Thinking
Blooms:n!Remembe
rn ! Difficulty:n!1n!
Easy
Learningn!Objective:n!01-
04n!Evaluaten!then!efficiencyn!ofn!an!firm.n ! To
pic:n!Efficiency,n!Effectiveness,n!andn!Value
8. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict betw
n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n! n!
een the two goals.
n! n! n!
TRUE
Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
n! n! n! n! n! n! n! n! n! n! n! n! n! n!
AACSB:n!Analyticaln!Thinking
Blooms:n!Analyz
en ! Difficulty:n!1n!
Easy
Learningn!Objective:n!01-
04n!Evaluaten!then!efficiencyn!ofn!an!firm.n ! To
pic:n!Efficiency,n!Effectiveness,n!andn!Value
1-4
Copyrightn!©2021n!McGraw-Hilln!Education.n!Alln!rightsn!reserved.n!Non!reproductionn!orn!distributionn!withoutn!then!priorn!writtenn!consentn!ofn!McGraw-
Hilln!Education.
