TEST BANK
Operations and Supply Chain Management,
17th Edition by F. Robert Jacobs, Chapters 1 - 22
, TABLE OF CONTENTS
Chapter 1: Introduction
Chapter 2: Strategy
Chapter 3: Design of Products and Services
Chapter 4: Projects
Chapter 5: Strategic Capacity Management
Chapter 6: Learning Curves
Chapter 7: Manufacturing Processes
Chapter 8: Facility Layout
Chapter 9: Service Processes
Chapter 10: Waiting Line Analysis and Simulation
Chapter 11: Process Design and Analysis
Chapter 12: Quality Management
Chapter 13: Statistical Quality Control
Chapter 14: Lean Supply Chains
Chapter 15: Logistics and Distribution Management
Chapter 16: Global Sourcing and Procurement
Chapter 17: The Internet of Things and ERP
Chapter 18: Forecasting
Chapter 19: Sales and Operations Planning
Chapter 20: Inventory Management
Chapter 21: Material Requirements Planning
Chapter 22: Workcenter Scheduling
,Chapter 01
Efficiency means doing the right things to create the most value for the company.
FALSE
Efficiency means doing something at the lowest possible cost.
1. Effectiveness means doing the right things to create the most value for the company.
TRUE
Effectiveness means doing the right things to create the most value for the company.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-04 Evaluate the efficiency of
a firm.Topic: Efficiency,
Effectiveness, and Value
2. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations
management terms, wecould refer to this doctor as being efficient but not effective.
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the
most value. Thedoctor performed the surgery without error. Because the patient died, no value was created.
AACSB: Analytical Thinking
Blooms:
Analyze Difficulty:
2 Medium
Learning Objective: 01-04 Evaluate the efficiency of
a firm.Topic: Efficiency,
Effectiveness, and Value
3. A worker can be efficient without being effective.
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the
most value.These are different things.
, AACSB: Analytical
Thinking Blooms:
Understand
Difficulty: 2
Medium
Learning Objective: 01-04 Evaluate the efficiency of
a firm. Topic: Efficiency,
Effectiveness, and Value
,4. A process can be effective without being efficient.
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being
efficient" at the customer service counter at a local store or bank means using the fewest number of clerks possible at
the counter. Being effective,though, means minimizing the amount of time customers need to wait in line.
AACSB: Analytical
Thinking Blooms:
Understand
Difficulty: 2
Medium
Learning Objective: 01-04 Evaluate the efficiency of
a firm. Topic: Efficiency,
Effectiveness, and Value
5. Operations and supply chain management is defined as the design, operation, and improvement of the
systems that create anddeliver the firm's primary products and services.
TRUE
Operations and supply chain management is defined as the design, operation, and improvement of the systems that
create and deliverthe firm's primary products and services.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management. (OSCM)
Topic: What Is Operations and Supply Chain Management?
6. The term "value" refers to the relationship between quality and the price paid by the consumer.
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided
by price.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-04 Evaluate the efficiency of
a firm.Topic: Efficiency,
Effectiveness, and Value
7. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create
conflict betweenthe two goals.
TRUE
,Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
AACSB: Analytical Thinking
Blooms:
Analyze
Difficulty: 1
Easy
Learning Objective: 01-04 Evaluate the efficiency of
a firm.Topic: Efficiency,
Effectiveness, and Value
,8. Central to the concept of operations strategy are the notions of operations focus and trade-offs.
TRUE
Central to this thinking was the notion of factory focus and manufacturing trade-offs. Because a factory cannot excel
on all performance measures, its management must devise a focused strategy, to perform a limited set of tasks
extremely well. This requirestrade-offs.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
9. OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.
FALSE
OSCM is concerned with the management of the entire system that produces a good or delivers a service.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
10. OSCM is a functional field of business with clear line management responsibilities.
TRUE
OSCM is a functional field of business with clear line management responsibilities.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-02 Know the potential career opportunities in operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
11. The supply network can be thought of as a pipeline through which cash, material, and information flow.
FALSE
Think of the supply network as a pipeline through which material and information flow.
AACSB: Analytical
Thinking Blooms:
Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
, Topic: What Is Operations and Supply Chain Management?
12. Supply networks cannot be constructed for every product or service.
FALSE
Networks such as this can be constructed for any product or service.
AACSB: Analytical
Thinking Blooms:
Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
, 13. "Operations" refers to manufacturing and service processes used to transform resources employed by a firm into
products desiredby customers.
TRUE
Operations refers to manufacturing, service, and health care processes that are used to transform the resources
employed by a firm intoproducts desired by customers.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
14. "Supply chain" refers to processes that move information and material to and from the manufacturing and
service processes of thefirm.
TRUE
Supply chain refers to processes that move information and material to and from the manufacturing and service
processes of the firm.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
15. "Supply chain" includes only inbound freight and inventory.
FALSE
Supply chain refers to processes that move information and material to and from the manufacturing and service
processes of the firm.
AACSB: Analytical
Thinking Blooms:
Understand
Difficulty: 2
Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
16. It is critical that a sustainable strategy meet the needs of shareholders and employees first, and then focus
on preserving theenvironment.
FALSE
A sustainable strategy that meets the needs of shareholders and employees while preserving the environment is
critical.
Operations and Supply Chain Management,
17th Edition by F. Robert Jacobs, Chapters 1 - 22
, TABLE OF CONTENTS
Chapter 1: Introduction
Chapter 2: Strategy
Chapter 3: Design of Products and Services
Chapter 4: Projects
Chapter 5: Strategic Capacity Management
Chapter 6: Learning Curves
Chapter 7: Manufacturing Processes
Chapter 8: Facility Layout
Chapter 9: Service Processes
Chapter 10: Waiting Line Analysis and Simulation
Chapter 11: Process Design and Analysis
Chapter 12: Quality Management
Chapter 13: Statistical Quality Control
Chapter 14: Lean Supply Chains
Chapter 15: Logistics and Distribution Management
Chapter 16: Global Sourcing and Procurement
Chapter 17: The Internet of Things and ERP
Chapter 18: Forecasting
Chapter 19: Sales and Operations Planning
Chapter 20: Inventory Management
Chapter 21: Material Requirements Planning
Chapter 22: Workcenter Scheduling
,Chapter 01
Efficiency means doing the right things to create the most value for the company.
FALSE
Efficiency means doing something at the lowest possible cost.
1. Effectiveness means doing the right things to create the most value for the company.
TRUE
Effectiveness means doing the right things to create the most value for the company.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-04 Evaluate the efficiency of
a firm.Topic: Efficiency,
Effectiveness, and Value
2. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations
management terms, wecould refer to this doctor as being efficient but not effective.
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the
most value. Thedoctor performed the surgery without error. Because the patient died, no value was created.
AACSB: Analytical Thinking
Blooms:
Analyze Difficulty:
2 Medium
Learning Objective: 01-04 Evaluate the efficiency of
a firm.Topic: Efficiency,
Effectiveness, and Value
3. A worker can be efficient without being effective.
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the
most value.These are different things.
, AACSB: Analytical
Thinking Blooms:
Understand
Difficulty: 2
Medium
Learning Objective: 01-04 Evaluate the efficiency of
a firm. Topic: Efficiency,
Effectiveness, and Value
,4. A process can be effective without being efficient.
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being
efficient" at the customer service counter at a local store or bank means using the fewest number of clerks possible at
the counter. Being effective,though, means minimizing the amount of time customers need to wait in line.
AACSB: Analytical
Thinking Blooms:
Understand
Difficulty: 2
Medium
Learning Objective: 01-04 Evaluate the efficiency of
a firm. Topic: Efficiency,
Effectiveness, and Value
5. Operations and supply chain management is defined as the design, operation, and improvement of the
systems that create anddeliver the firm's primary products and services.
TRUE
Operations and supply chain management is defined as the design, operation, and improvement of the systems that
create and deliverthe firm's primary products and services.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management. (OSCM)
Topic: What Is Operations and Supply Chain Management?
6. The term "value" refers to the relationship between quality and the price paid by the consumer.
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided
by price.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-04 Evaluate the efficiency of
a firm.Topic: Efficiency,
Effectiveness, and Value
7. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create
conflict betweenthe two goals.
TRUE
,Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
AACSB: Analytical Thinking
Blooms:
Analyze
Difficulty: 1
Easy
Learning Objective: 01-04 Evaluate the efficiency of
a firm.Topic: Efficiency,
Effectiveness, and Value
,8. Central to the concept of operations strategy are the notions of operations focus and trade-offs.
TRUE
Central to this thinking was the notion of factory focus and manufacturing trade-offs. Because a factory cannot excel
on all performance measures, its management must devise a focused strategy, to perform a limited set of tasks
extremely well. This requirestrade-offs.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
9. OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.
FALSE
OSCM is concerned with the management of the entire system that produces a good or delivers a service.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
10. OSCM is a functional field of business with clear line management responsibilities.
TRUE
OSCM is a functional field of business with clear line management responsibilities.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-02 Know the potential career opportunities in operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
11. The supply network can be thought of as a pipeline through which cash, material, and information flow.
FALSE
Think of the supply network as a pipeline through which material and information flow.
AACSB: Analytical
Thinking Blooms:
Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
, Topic: What Is Operations and Supply Chain Management?
12. Supply networks cannot be constructed for every product or service.
FALSE
Networks such as this can be constructed for any product or service.
AACSB: Analytical
Thinking Blooms:
Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
, 13. "Operations" refers to manufacturing and service processes used to transform resources employed by a firm into
products desiredby customers.
TRUE
Operations refers to manufacturing, service, and health care processes that are used to transform the resources
employed by a firm intoproducts desired by customers.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
14. "Supply chain" refers to processes that move information and material to and from the manufacturing and
service processes of thefirm.
TRUE
Supply chain refers to processes that move information and material to and from the manufacturing and service
processes of the firm.
AACSB: Analytical Thinking
Blooms:
Remember
Difficulty: 1
Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
15. "Supply chain" includes only inbound freight and inventory.
FALSE
Supply chain refers to processes that move information and material to and from the manufacturing and service
processes of the firm.
AACSB: Analytical
Thinking Blooms:
Understand
Difficulty: 2
Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
16. It is critical that a sustainable strategy meet the needs of shareholders and employees first, and then focus
on preserving theenvironment.
FALSE
A sustainable strategy that meets the needs of shareholders and employees while preserving the environment is
critical.
