Chapter 01 Test Bank Static xc xc xc xc
1. Efficiency means doing the right things to create the most value for the company.
xc xc xc xc xc xc xc xc xc xc xc xc xc
FALSE
Efficiency means doing something at the lowest possible cost.
xc xc xc xc xc xc xc xc
2. Effectiveness means doing the right things to create the most value for the company.
xc xc xc xc xc xc xc xc xc xc xc xc xc
TRUE
Effectiveness means doing the right things to create the most value for the company.
xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcRemembe
rx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-
04xcEvaluatexcthexcefficiencyxcofxcaxcfirm.x c To
pic:xcEfficiency,xcEffectiveness,xcandxcValue
3. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management term
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
s, we could refer to this doctor as being efficient but not effective.
xc xc xc xc xc xc xc xc xc xc xc xc
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. Th
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
e doctor performed the surgery without error. Because the patient died, no value was created.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcAnalyz
ex c Difficulty:xc2xcMe
dium
LearningxcObjective:xc01-
04xcEvaluatexcthexcefficiencyxcofxcaxcfirm.x c To
pic:xcEfficiency,xcEffectiveness,xcandxcValue
4. A worker can be efficient without being effective.
xc xc xc xc xc xc xc
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most valu
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
e. These are different things.
xc xc xc xc
AACSB:xcAnalyticalxcThinkin
gx c Blooms:xcUnderst
andx c Difficulty:xc2xc
Medium
LearningxcObjective:xc01-
04xcEvaluatexcthexcefficiencyxcofxcaxcfirm.x c To
pic:xcEfficiency,xcEffectiveness,xcandxcValue
1-1
Copyrightxc©2021xcMcGraw-
HillxcEducation.xcAllxcrightsxcreserved.xcNoxcreproductionxcorxcdistributionxcwithoutxcthexcpriorxcwrittenxcconsentxcofxcMcGraw-HillxcEducation.
,5. A process can be effective without being efficient.
xc xc xc xc xc xc xc
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at the
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc x
customer service counter at a local store or bank means using the fewest number of clerks possible at the counter. Being effecti
c xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
ve, though, means minimizing the amount of time customers need to wait in line.
xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinkin
gx c Blooms:xcUnderst
andx c Difficulty:xc2xc
Medium
LearningxcObjective:xc01-
04xcEvaluatexcthexcefficiencyxcofxcaxcfirm.x c To
pic:xcEfficiency,xcEffectiveness,xcandxcValue
6. Operations and supply chain management is defined as the design, operation, and improvement of the systems that creat
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
e and deliver the firm's primary products and services.
xc xc xc xc xc xc xc xc
TRUE
Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and de
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
liver the firm's primary products and services.
xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcRemembe
rx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-01xcIdentifyxcthexcelementsxcofxcoperationsxcandxcsupplyxcchainxcmanagement.xc(OSCM)
Topic:xcWhatxcIsxcOperationsxcandxcSupplyxcChainxcManagement?
7. The term "value" refers to the relationship between quality and the price paid by the consumer.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcRemembe
rx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-
04xcEvaluatexcthexcefficiencyxcofxcaxcfirm.x c To
pic:xcEfficiency,xcEffectiveness,xcandxcValue
8. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict bet
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
ween the two goals.xc xc xc
TRUE
Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcAnalyz
ex c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-
04xcEvaluatexcthexcefficiencyxcofxcaxcfirm.x c To
pic:xcEfficiency,xcEffectiveness,xcandxcValue
1-2
Copyrightxc©2021xcMcGraw-
HillxcEducation.xcAllxcrightsxcreserved.xcNoxcreproductionxcorxcdistributionxcwithoutxcthexcpriorxcwrittenxcconsentxcofxcMcGraw-HillxcEducation.
,9. Central to the concept of operations strategy are the notions of operations focus and trade-offs.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc
TRUE
Central to this thinking was the notion of factory focus and manufacturing trade-
xc xc xc xc xc xc xc xc xc xc xc xc
offs. Because a factory cannot excel on all performance measures, its management must devise a focused strategy, to perform a
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
limited set of tasks extremely well. This requires trade-offs.
xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcRemembe
rx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-03xcRecognizexcthexcmajorxcconceptsxcthatxcdefinexcthexcoperationsxcandxcsupplyxcchainxcmanagementxcfield.
Topic:xcHistoricalxcDevelopmentxcofxcOperationsxcandxcSupplyxcChainxcManagement
10. OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
FALSE
OSCM is concerned with the management of the entire system that produces a good or delivers a service.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcRemembe
rx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-01xcIdentifyxcthexcelementsxcofxcoperationsxcandxcsupplyxcchainxcmanagementxc(OSCM).
Topic:xcWhatxcIsxcOperationsxcandxcSupplyxcChainxcManagement?
11. OSCM is a functional field of business with clear line management responsibilities.
xc xc xc xc xc xc xc xc xc xc xc
TRUE
OSCM is a functional field of business with clear line management responsibilities.
xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcRemembe
rx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-02xcKnowxcthexcpotentialxccareerxcopportunitiesxcinxcoperationsxcandxcsupplyxcchainxcmanagement.
Topic:xcWhatxcIsxcOperationsxcandxcSupplyxcChainxcManagement?
12. The supply network can be thought of as a pipeline through which cash, material, and information flow.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
FALSE
Think of the supply network as a pipeline through which material and information flow.
xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinkin
gx c Blooms:xcUnderst
andx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-01xcIdentifyxcthexcelementsxcofxcoperationsxcandxcsupplyxcchainxcmanagementxc(OSCM).
Topic:xcWhatxcIsxcOperationsxcandxcSupplyxcChainxcManagement?
13. Supply networks cannot be constructed for every product or service.
xc xc xc xc xc xc xc xc xc
FALSE
Networks such as this can be constructed for any product or service.
xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinkin
gx c Blooms:xcUnderst
1-3
Copyrightxc©2021xcMcGraw-
HillxcEducation.xcAllxcrightsxcreserved.xcNoxcreproductionxcorxcdistributionxcwithoutxcthexcpriorxcwrittenxcconsentxcofxcMcGraw-HillxcEducation.
, andx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-01xcIdentifyxcthexcelementsxcofxcoperationsxcandxcsupplyxcchainxcmanagementxc(OSCM).
Topic:xcWhatxcIsxcOperationsxcandxcSupplyxcChainxcManagement?
1-4
Copyrightxc©2021xcMcGraw-
HillxcEducation.xcAllxcrightsxcreserved.xcNoxcreproductionxcorxcdistributionxcwithoutxcthexcpriorxcwrittenxcconsentxcofxcMcGraw-HillxcEducation.
1. Efficiency means doing the right things to create the most value for the company.
xc xc xc xc xc xc xc xc xc xc xc xc xc
FALSE
Efficiency means doing something at the lowest possible cost.
xc xc xc xc xc xc xc xc
2. Effectiveness means doing the right things to create the most value for the company.
xc xc xc xc xc xc xc xc xc xc xc xc xc
TRUE
Effectiveness means doing the right things to create the most value for the company.
xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcRemembe
rx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-
04xcEvaluatexcthexcefficiencyxcofxcaxcfirm.x c To
pic:xcEfficiency,xcEffectiveness,xcandxcValue
3. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management term
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
s, we could refer to this doctor as being efficient but not effective.
xc xc xc xc xc xc xc xc xc xc xc xc
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. Th
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
e doctor performed the surgery without error. Because the patient died, no value was created.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcAnalyz
ex c Difficulty:xc2xcMe
dium
LearningxcObjective:xc01-
04xcEvaluatexcthexcefficiencyxcofxcaxcfirm.x c To
pic:xcEfficiency,xcEffectiveness,xcandxcValue
4. A worker can be efficient without being effective.
xc xc xc xc xc xc xc
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most valu
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
e. These are different things.
xc xc xc xc
AACSB:xcAnalyticalxcThinkin
gx c Blooms:xcUnderst
andx c Difficulty:xc2xc
Medium
LearningxcObjective:xc01-
04xcEvaluatexcthexcefficiencyxcofxcaxcfirm.x c To
pic:xcEfficiency,xcEffectiveness,xcandxcValue
1-1
Copyrightxc©2021xcMcGraw-
HillxcEducation.xcAllxcrightsxcreserved.xcNoxcreproductionxcorxcdistributionxcwithoutxcthexcpriorxcwrittenxcconsentxcofxcMcGraw-HillxcEducation.
,5. A process can be effective without being efficient.
xc xc xc xc xc xc xc
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at the
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc x
customer service counter at a local store or bank means using the fewest number of clerks possible at the counter. Being effecti
c xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
ve, though, means minimizing the amount of time customers need to wait in line.
xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinkin
gx c Blooms:xcUnderst
andx c Difficulty:xc2xc
Medium
LearningxcObjective:xc01-
04xcEvaluatexcthexcefficiencyxcofxcaxcfirm.x c To
pic:xcEfficiency,xcEffectiveness,xcandxcValue
6. Operations and supply chain management is defined as the design, operation, and improvement of the systems that creat
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
e and deliver the firm's primary products and services.
xc xc xc xc xc xc xc xc
TRUE
Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and de
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
liver the firm's primary products and services.
xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcRemembe
rx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-01xcIdentifyxcthexcelementsxcofxcoperationsxcandxcsupplyxcchainxcmanagement.xc(OSCM)
Topic:xcWhatxcIsxcOperationsxcandxcSupplyxcChainxcManagement?
7. The term "value" refers to the relationship between quality and the price paid by the consumer.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcRemembe
rx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-
04xcEvaluatexcthexcefficiencyxcofxcaxcfirm.x c To
pic:xcEfficiency,xcEffectiveness,xcandxcValue
8. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict bet
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
ween the two goals.xc xc xc
TRUE
Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcAnalyz
ex c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-
04xcEvaluatexcthexcefficiencyxcofxcaxcfirm.x c To
pic:xcEfficiency,xcEffectiveness,xcandxcValue
1-2
Copyrightxc©2021xcMcGraw-
HillxcEducation.xcAllxcrightsxcreserved.xcNoxcreproductionxcorxcdistributionxcwithoutxcthexcpriorxcwrittenxcconsentxcofxcMcGraw-HillxcEducation.
,9. Central to the concept of operations strategy are the notions of operations focus and trade-offs.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc
TRUE
Central to this thinking was the notion of factory focus and manufacturing trade-
xc xc xc xc xc xc xc xc xc xc xc xc
offs. Because a factory cannot excel on all performance measures, its management must devise a focused strategy, to perform a
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
limited set of tasks extremely well. This requires trade-offs.
xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcRemembe
rx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-03xcRecognizexcthexcmajorxcconceptsxcthatxcdefinexcthexcoperationsxcandxcsupplyxcchainxcmanagementxcfield.
Topic:xcHistoricalxcDevelopmentxcofxcOperationsxcandxcSupplyxcChainxcManagement
10. OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
FALSE
OSCM is concerned with the management of the entire system that produces a good or delivers a service.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcRemembe
rx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-01xcIdentifyxcthexcelementsxcofxcoperationsxcandxcsupplyxcchainxcmanagementxc(OSCM).
Topic:xcWhatxcIsxcOperationsxcandxcSupplyxcChainxcManagement?
11. OSCM is a functional field of business with clear line management responsibilities.
xc xc xc xc xc xc xc xc xc xc xc
TRUE
OSCM is a functional field of business with clear line management responsibilities.
xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinking
Blooms:xcRemembe
rx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-02xcKnowxcthexcpotentialxccareerxcopportunitiesxcinxcoperationsxcandxcsupplyxcchainxcmanagement.
Topic:xcWhatxcIsxcOperationsxcandxcSupplyxcChainxcManagement?
12. The supply network can be thought of as a pipeline through which cash, material, and information flow.
xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc xc
FALSE
Think of the supply network as a pipeline through which material and information flow.
xc xc xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinkin
gx c Blooms:xcUnderst
andx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-01xcIdentifyxcthexcelementsxcofxcoperationsxcandxcsupplyxcchainxcmanagementxc(OSCM).
Topic:xcWhatxcIsxcOperationsxcandxcSupplyxcChainxcManagement?
13. Supply networks cannot be constructed for every product or service.
xc xc xc xc xc xc xc xc xc
FALSE
Networks such as this can be constructed for any product or service.
xc xc xc xc xc xc xc xc xc xc xc
AACSB:xcAnalyticalxcThinkin
gx c Blooms:xcUnderst
1-3
Copyrightxc©2021xcMcGraw-
HillxcEducation.xcAllxcrightsxcreserved.xcNoxcreproductionxcorxcdistributionxcwithoutxcthexcpriorxcwrittenxcconsentxcofxcMcGraw-HillxcEducation.
, andx c Difficulty:xc1xc
Easy
LearningxcObjective:xc01-01xcIdentifyxcthexcelementsxcofxcoperationsxcandxcsupplyxcchainxcmanagementxc(OSCM).
Topic:xcWhatxcIsxcOperationsxcandxcSupplyxcChainxcManagement?
1-4
Copyrightxc©2021xcMcGraw-
HillxcEducation.xcAllxcrightsxcreserved.xcNoxcreproductionxcorxcdistributionxcwithoutxcthexcpriorxcwrittenxcconsentxcofxcMcGraw-HillxcEducation.
