MQM 227 Exam 1 Questions and Answers 100% Correct
Why is operations management a more encompassing term than production management? —
Answer: Operations management refers to service as well as manufacturing organizations
The transformation view of the Operations function provides a unified approach for studying
the manufacturing and service industries. —Answer: TRUE
Which of the following functions is responsible for the actual movement of goods and/or
services across organizations? —Answer: A. Logistics
The four decision areas in operations management are: —Answer: B. Process, quality, capacity,
and inventory
A productive systems approach: —Answer: B. Must provide feedback information for control
of process inputs and technology
Capacity decisions: —Answer: A. Include staffing and scheduling
Inventory decisions involve: —Answer: D. All of these
The contemporary operations themes signify that: —Answer: B. Every operation should be
externally directed to meet the customers' requirements
The essence of operations management can be described by: —Answer: B. Decisions, function,
and process
Which of the following is not a contemporary theme in operations? —Answer: C. Quality
Teams
The three primary functions that exist in most business organizations are: —Answer: D.
Operations, finance, and marketing
The three major functions of business organizations: —Answer: C. Interface with each other
The four major decision responsibilities of operations management are: —Answer: D. Process,
capacity, quality, and inventory
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,Which of the following is not in the process category of the operations decision framework? —
Answer: D. Product or service inspection
Supply chain management includes the integration of: —Answer: D. All of the above
The supply chain extends from: —Answer: D. Supplier to customer
Supply chain management includes all of the following except: —Answer: C. Advertising
A comprehensive decision-making framework for operations includes: —Answer: A.
Consideration of other organizational functions
The process view provides a basis for viewing an entire business as a system of interconnected
processes. —Answer: TRUE
"Lean Operations" refers to the task of reducing the defect rates in a firm's products or services.
—Answer: FALSE
As price increases and benefits remain constant, the value of a product increases. —Answer:
FALSE
Best practices in operations are best for all organizations. —Answer: FALSE
McDonald's distinctive competence has changed over time from continuous improvement of
the transformation system and brand to the unique service and supply chain transformation
system. —Answer: FALSE
At Disney, "making people happy" is an example of —Answer: B. Corporate Strategy
The four elements that form the heart of operations strategy include: —Answer: D. Mission,
distinctive competence, objectives, and strategic decisions
The four common objectives of operations are: —Answer: C. Quality, cost, delivery, and
flexibility
An example under the capacity area of strategic decisions in operations would be: —Answer:
B. One large or several small facilities
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, The operation objectives of quality, cost, delivery, and flexibility are: —Answer: C. Connected
In the product imitator strategy, the order winner is usually ____, while in the product
innovator strategy, the order winner is usually _____. —Answer: D. Price, flexibility
Make or buy is an example of what type of strategic decision? —Answer: B. Process
Which of the following is NOT a characteristic of a global corporation? —Answer: A. Facilities
and plants are located on a country-by-country basis.
Which of the following illustrates a distinctive competence? —Answer: A. Patented technology
Supply Chain Strategy focuses, in part, on: —Answer: D. All of the above
A decision is made that suppliers will be chosen based on quality rather than cost. This is an
example of which of the following? —Answer: D. Strategic decision
Next year's goal is to fill 99% of all orders from stock. This is an example of which of the
following? —Answer: A. Objective
Which of the following statements about operations objectives is NOT true? —Answer: B.
Reducing costs often causes improvement in quality
Which of the following is NOT a characteristic of a distinctive competence? —Answer: D. None
of the above.
A global corporation has which of the following characteristics? —Answer: B. Demand based
on a worldwide versus a local basis.
A corporate strategy drives the business strategy, which in turn drives the operations strategy
in an organization. —Answer: TRUE
The business strategy can be derived from a firm's distinctive competence that is difficult for
competitors to copy or imitate. —Answer: TRUE
Imitative products have low profit margins and fairly predictable demand. —Answer: TRUE
Product design supports the business strategy. —Answer: TRUE
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Why is operations management a more encompassing term than production management? —
Answer: Operations management refers to service as well as manufacturing organizations
The transformation view of the Operations function provides a unified approach for studying
the manufacturing and service industries. —Answer: TRUE
Which of the following functions is responsible for the actual movement of goods and/or
services across organizations? —Answer: A. Logistics
The four decision areas in operations management are: —Answer: B. Process, quality, capacity,
and inventory
A productive systems approach: —Answer: B. Must provide feedback information for control
of process inputs and technology
Capacity decisions: —Answer: A. Include staffing and scheduling
Inventory decisions involve: —Answer: D. All of these
The contemporary operations themes signify that: —Answer: B. Every operation should be
externally directed to meet the customers' requirements
The essence of operations management can be described by: —Answer: B. Decisions, function,
and process
Which of the following is not a contemporary theme in operations? —Answer: C. Quality
Teams
The three primary functions that exist in most business organizations are: —Answer: D.
Operations, finance, and marketing
The three major functions of business organizations: —Answer: C. Interface with each other
The four major decision responsibilities of operations management are: —Answer: D. Process,
capacity, quality, and inventory
© 2025 All rights reserved
,Which of the following is not in the process category of the operations decision framework? —
Answer: D. Product or service inspection
Supply chain management includes the integration of: —Answer: D. All of the above
The supply chain extends from: —Answer: D. Supplier to customer
Supply chain management includes all of the following except: —Answer: C. Advertising
A comprehensive decision-making framework for operations includes: —Answer: A.
Consideration of other organizational functions
The process view provides a basis for viewing an entire business as a system of interconnected
processes. —Answer: TRUE
"Lean Operations" refers to the task of reducing the defect rates in a firm's products or services.
—Answer: FALSE
As price increases and benefits remain constant, the value of a product increases. —Answer:
FALSE
Best practices in operations are best for all organizations. —Answer: FALSE
McDonald's distinctive competence has changed over time from continuous improvement of
the transformation system and brand to the unique service and supply chain transformation
system. —Answer: FALSE
At Disney, "making people happy" is an example of —Answer: B. Corporate Strategy
The four elements that form the heart of operations strategy include: —Answer: D. Mission,
distinctive competence, objectives, and strategic decisions
The four common objectives of operations are: —Answer: C. Quality, cost, delivery, and
flexibility
An example under the capacity area of strategic decisions in operations would be: —Answer:
B. One large or several small facilities
© 2025 All rights reserved
, The operation objectives of quality, cost, delivery, and flexibility are: —Answer: C. Connected
In the product imitator strategy, the order winner is usually ____, while in the product
innovator strategy, the order winner is usually _____. —Answer: D. Price, flexibility
Make or buy is an example of what type of strategic decision? —Answer: B. Process
Which of the following is NOT a characteristic of a global corporation? —Answer: A. Facilities
and plants are located on a country-by-country basis.
Which of the following illustrates a distinctive competence? —Answer: A. Patented technology
Supply Chain Strategy focuses, in part, on: —Answer: D. All of the above
A decision is made that suppliers will be chosen based on quality rather than cost. This is an
example of which of the following? —Answer: D. Strategic decision
Next year's goal is to fill 99% of all orders from stock. This is an example of which of the
following? —Answer: A. Objective
Which of the following statements about operations objectives is NOT true? —Answer: B.
Reducing costs often causes improvement in quality
Which of the following is NOT a characteristic of a distinctive competence? —Answer: D. None
of the above.
A global corporation has which of the following characteristics? —Answer: B. Demand based
on a worldwide versus a local basis.
A corporate strategy drives the business strategy, which in turn drives the operations strategy
in an organization. —Answer: TRUE
The business strategy can be derived from a firm's distinctive competence that is difficult for
competitors to copy or imitate. —Answer: TRUE
Imitative products have low profit margins and fairly predictable demand. —Answer: TRUE
Product design supports the business strategy. —Answer: TRUE
© 2025 All rights reserved
