Operations Management, 11e (Krajewski et al.)
Chapter 1: Using Operations to Create Value
1.1 Role of Operations in an Organization
1) Operations management refers to the direction and control of inputs that transform processes
into products and services.
Answer: TRUE
Reference: Role of Operations in an Organization
Difficulty: Easy
Keywords: operations management, inputs, process, transformation
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
2) As a functional area of a business, Operations translates materials and services into outputs.
Answer: TRUE
Reference: Role of Operations in an Organization
Difficulty: Easy
Keywords: operations management, inputs, process, transformation
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
3) The three main line functions of any business include Operations, Finance and Marketing.
Answer: TRUE
Reference: Role of Operations in an Organization
Difficulty: Easy
Keywords: operations, finance, marketing
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
4) Support functions in an organization include Accounting, Human Resources and Engineering.
Answer: TRUE
Reference: Role of Operations in an Organization
Difficulty: Easy
Keywords: accounting, human resources, engineering
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
1
Copyright © 2016 Pearson Education, Inc.
,5) Regardless of how departments like Accounting, Engineering, Finance, and Marketing
function in an organization, they are all linked together through:
A) management.
B) processes.
C) customers.
D) stakeholders.
Answer: B
Reference: Role of Operations in an Organization
Difficulty: Moderate
Keywords: departments, functions, processes
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
6) The foundations of modern manufacturing and technological breakthroughs were inspired by
the creation of the mechanical computer by:
A) Charles Babbage.
B) James Watt.
C) Eli Whitney.
D) Frederick Taylor.
Answer: A
Reference: Role of Operations in an Organization
Difficulty: Moderate
Keywords: Charles Babbage
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
7) Which of these Great Moments in Operations and Supply Chain Management did not occur in
the 20th century?
A) invention of the assembly line
B) publication of the Toyota Production Systems book
C) establishment of railroads
D) strategic planning for achieving product variety
Answer: C
Reference: Role of Operations in an Organization
Difficulty: Moderate
Keywords: history, railroad
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
2
Copyright © 2016 Pearson Education, Inc.
,8) Operations management refers to the systematic design, direction, and control of ________
that transform ________ into products and services.
Answer: processes, inputs
Reference: Role of Operations in an Organization
Difficulty: Moderate
Keywords: process, input, transform, product, service
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
9) The three mainline functions of any business are ________, ________, and ________.
Answer: operations, finance, marketing
Reference: Role of Operations in an Organization
Difficulty: Moderate
Keywords: operations, finance, marketing, functions of a firm
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
10) What are the three key functions of a firm and what is each responsible for?
Answer: The three main functions of a firm are operations, finance, and marketing. The
operations function transforms material and service inputs into product and service outputs. The
finance function generates resources, capital and funds from investors and sales of the firm's
goods and services in the marketplace. The marketing function is responsible for producing sales
revenue of the outputs.
Reference: Role of Operations in an Organization
Difficulty: Moderate
Keywords: manufacturing process, service process
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
1.2 A Process View
1) A process involves transforming inputs into outputs.
Answer: TRUE
Reference: A Process View
Difficulty: Easy
Keywords: process, inputs, outputs
Learning Outcome: Describe the main types of operations processes and layouts in
manufacturing and in services.
AACSB: Application of Knowledge
3
Copyright © 2016 Pearson Education, Inc.
, 2) Every process has a customer.
Answer: TRUE
Reference: A Process View
Difficulty: Easy
Keywords: process, customer relationship
Learning Outcome: Describe the main types of operations processes and layouts in
manufacturing and in services.
AACSB: Application of Knowledge
3) A nested process refers to a process within a process.
Answer: TRUE
Reference: A Process View
Difficulty: Easy
Keywords: nested process
Learning Outcome: Describe the main types of operations processes and layouts in
manufacturing and in services.
AACSB: Application of Knowledge
4) At the level of the firm, service providers offer just services and manufacturers offer just
products.
Answer: FALSE
Reference: A Process View
Difficulty: Moderate
Keywords: manufacturing, service, similarity, goods, services
Learning Outcome: Describe the main types of operations processes and layouts in
manufacturing and in services.
AACSB: Application of Knowledge
5) At the process level, it is much easier to distinguish whether the process is providing a service
or manufacturing a product.
Answer: TRUE
Reference: A Process View
Difficulty: Moderate
Keywords: manufacturing process, service process, goods, services
Learning Outcome: Describe the main types of operations processes and layouts in
manufacturing and in services.
AACSB: Application of Knowledge
6) Manufacturing processes tend to be capital intensive, while service processes tend to be more
labor intensive.
Answer: TRUE
Reference: A Process View
Difficulty: Easy
Keywords: manufacturing process, service process, capital intensive, labor intensive
Learning Outcome: Describe the main types of operations processes and layouts in
manufacturing and in services.
AACSB: Application of Knowledge
4
Copyright © 2016 Pearson Education, Inc.
Chapter 1: Using Operations to Create Value
1.1 Role of Operations in an Organization
1) Operations management refers to the direction and control of inputs that transform processes
into products and services.
Answer: TRUE
Reference: Role of Operations in an Organization
Difficulty: Easy
Keywords: operations management, inputs, process, transformation
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
2) As a functional area of a business, Operations translates materials and services into outputs.
Answer: TRUE
Reference: Role of Operations in an Organization
Difficulty: Easy
Keywords: operations management, inputs, process, transformation
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
3) The three main line functions of any business include Operations, Finance and Marketing.
Answer: TRUE
Reference: Role of Operations in an Organization
Difficulty: Easy
Keywords: operations, finance, marketing
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
4) Support functions in an organization include Accounting, Human Resources and Engineering.
Answer: TRUE
Reference: Role of Operations in an Organization
Difficulty: Easy
Keywords: accounting, human resources, engineering
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
1
Copyright © 2016 Pearson Education, Inc.
,5) Regardless of how departments like Accounting, Engineering, Finance, and Marketing
function in an organization, they are all linked together through:
A) management.
B) processes.
C) customers.
D) stakeholders.
Answer: B
Reference: Role of Operations in an Organization
Difficulty: Moderate
Keywords: departments, functions, processes
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
6) The foundations of modern manufacturing and technological breakthroughs were inspired by
the creation of the mechanical computer by:
A) Charles Babbage.
B) James Watt.
C) Eli Whitney.
D) Frederick Taylor.
Answer: A
Reference: Role of Operations in an Organization
Difficulty: Moderate
Keywords: Charles Babbage
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
7) Which of these Great Moments in Operations and Supply Chain Management did not occur in
the 20th century?
A) invention of the assembly line
B) publication of the Toyota Production Systems book
C) establishment of railroads
D) strategic planning for achieving product variety
Answer: C
Reference: Role of Operations in an Organization
Difficulty: Moderate
Keywords: history, railroad
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
2
Copyright © 2016 Pearson Education, Inc.
,8) Operations management refers to the systematic design, direction, and control of ________
that transform ________ into products and services.
Answer: processes, inputs
Reference: Role of Operations in an Organization
Difficulty: Moderate
Keywords: process, input, transform, product, service
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
9) The three mainline functions of any business are ________, ________, and ________.
Answer: operations, finance, marketing
Reference: Role of Operations in an Organization
Difficulty: Moderate
Keywords: operations, finance, marketing, functions of a firm
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
10) What are the three key functions of a firm and what is each responsible for?
Answer: The three main functions of a firm are operations, finance, and marketing. The
operations function transforms material and service inputs into product and service outputs. The
finance function generates resources, capital and funds from investors and sales of the firm's
goods and services in the marketplace. The marketing function is responsible for producing sales
revenue of the outputs.
Reference: Role of Operations in an Organization
Difficulty: Moderate
Keywords: manufacturing process, service process
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization.
AACSB: Application of Knowledge
1.2 A Process View
1) A process involves transforming inputs into outputs.
Answer: TRUE
Reference: A Process View
Difficulty: Easy
Keywords: process, inputs, outputs
Learning Outcome: Describe the main types of operations processes and layouts in
manufacturing and in services.
AACSB: Application of Knowledge
3
Copyright © 2016 Pearson Education, Inc.
, 2) Every process has a customer.
Answer: TRUE
Reference: A Process View
Difficulty: Easy
Keywords: process, customer relationship
Learning Outcome: Describe the main types of operations processes and layouts in
manufacturing and in services.
AACSB: Application of Knowledge
3) A nested process refers to a process within a process.
Answer: TRUE
Reference: A Process View
Difficulty: Easy
Keywords: nested process
Learning Outcome: Describe the main types of operations processes and layouts in
manufacturing and in services.
AACSB: Application of Knowledge
4) At the level of the firm, service providers offer just services and manufacturers offer just
products.
Answer: FALSE
Reference: A Process View
Difficulty: Moderate
Keywords: manufacturing, service, similarity, goods, services
Learning Outcome: Describe the main types of operations processes and layouts in
manufacturing and in services.
AACSB: Application of Knowledge
5) At the process level, it is much easier to distinguish whether the process is providing a service
or manufacturing a product.
Answer: TRUE
Reference: A Process View
Difficulty: Moderate
Keywords: manufacturing process, service process, goods, services
Learning Outcome: Describe the main types of operations processes and layouts in
manufacturing and in services.
AACSB: Application of Knowledge
6) Manufacturing processes tend to be capital intensive, while service processes tend to be more
labor intensive.
Answer: TRUE
Reference: A Process View
Difficulty: Easy
Keywords: manufacturing process, service process, capital intensive, labor intensive
Learning Outcome: Describe the main types of operations processes and layouts in
manufacturing and in services.
AACSB: Application of Knowledge
4
Copyright © 2016 Pearson Education, Inc.
