True/False: Some of the operations-related activities of Hard Rock Café include designing
meals and analyzing them for ingredient cost and labor requirements. - Answers True
True/False: The production process at Hard Rock Café is limited to meal preparation and
serving customers. - Answers False
True/False: All organizations, including service firms such as banks and hospitals, have a
production function. - Answers True
True/False: Operations management is the set of activities that create value in the form of
goods and services by transforming inputs into outputs. - Answers True
True/False: An example of a "hidden" production function is money transfers at banks. -
Answers True
True/False: One reason to study operations management is to learn how people organize
themselves for productive enterprise. - Answers True
True/False: The operations manager performs the management activities of planning,
organizing, staffing, leading, and controlling of the OM function. - Answers True
True/False: "How much inventory of this item should we have?" is within the critical decision
area of managing quality. - Answers False
True/False: In order to have a career in operations management, one must have a degree in
statistics or quantitative methods. - Answers False
True/False: Henry Ford is known as the Father of Scientific Management. - Answers False
True/False: Shewhart's contributions to operations management came during the Scientific
Management Era. - Answers False
True/False: Students wanting to pursue a career in operations management will find
multidisciplinary knowledge beneficial. - Answers True
True/False: Customer interaction is often high for manufacturing processes, but low for
services. - Answers False
True/False: Productivity is more difficult to improve in the service sector. - Answers True
True/False: Manufacturing now constitutes the largest economic sector in postindustrial
societies. - Answers False
True/False: In the past half-century, the number of people employed in manufacturing has more
or less held steady, but each manufacturing employee is manufacturing about 20 times as
,much. - Answers True
True/False: A knowledge society is one that has migrated from work based on knowledge to
one based on manual work. - Answers False
True/False: Productivity is the total value of all inputs to the transformation process divided by
the total value of the outputs produced. - Answers False
True/False: Measuring the impact of a capital acquisition on productivity is an example of multi-
factor productivity. - Answers False
True/False: Ethical and social dilemmas arise because stakeholders of a business have
conflicting perspectives. - Answers True
At Hard Rock Café, tasks that reflect operations or operations management include
a. designing meals
b. testing meals (recipes)
c. analyzing meals for the cost of ingredients
d. preparing employee schedules
e. all of the above - Answers e. all of the above
An operations task performed at Hard Rock Café is
a. borrowing funds to build a new restaurant
b. advertising changes in the restaurant menu
c. calculating restaurant profit and loss
d. preparing employee schedules
e. all of the above - Answers d. preparing employee schedules
Operations management is applicable
a. mostly to the service sector
b. to services exclusively
c. mostly to the manufacturing sector
d. to all firms, whether manufacturing and service
e. to the manufacturing sector exclusivel - Answers d. to all firms, whether manufacturing and
,service
Which of the following are the primary functions of all organizations?
a. operations, marketing, and human resources
b. marketing, human resources, and finance/accounting
c. sales, quality control, and operations
d. marketing, operations, and finance/accounting
e. research and development, finance/accounting, and purchasing - Answers d. marketing,
operations, and finance/accounting
Budgeting, paying the bills, and collection of funds are activities associated with the
a. management function
b. control function
c. finance/accounting function
d. production/operations function
e. staffing function - Answers c. finance/accounting function
Which of the following would not be an operations function in a fast-food restaurant?
a. advertising and promotion
b. designing the layout of the facility
c. maintaining equipment
d. making hamburgers and fries
e. purchasing ingredients - Answers a. advertising and promotion
The marketing function's main concern is with
a. producing goods or providing services
b. procuring materials, supplies, and equipment
c. building and maintaining a positive image
d. generating the demand for the organization's products or services
e. securing monetary resources - Answers d. generating the demand for the organization's
, products or services
Reasons to study Operations Management include
a. studying why people organize themselves for free enterprise
b. knowing how goods and services are consumed
c. understanding what human resource managers do
d. learning about a costly part of the enterprise
e. all of the above - Answers d. learning about a costly part of the enterprise
Reasons to study Operations Management include learning about
a. why people organize themselves for productive enterprise
b. how goods and services are produced
c. what operations managers do
d. a costly part of the enterprise
e. all of the above - Answers e. all of the above
The five elements in the management process are
a. plan, direct, update, lead, and supervise
b. accounting/finance, marketing, operations, and management
c. organize, plan, control, staff, and manage
d. plan, organize, staff, lead, and control
e. plan, lead, organize, manage, and control - Answers d. plan, organize, staff, lead, and control
Illiteracy and poor diets have been known to cost countries up to what percent of their
productivity?
a. 2%
b. 5%
c. 10%
d. 20%