EXAM UPDATE.
pg. 1
, CHAPTER 1: OPERATIONS AND PRODUCTIVITY
TRUE/FALSE
1. Some of the operations-related activities of Hard Rock Café include
designing meals and analyzing them for ingredient cost and labor
requirements.
True (Global company profile, easy)
2. The production process at Hard Rock Café is limited to meal preparation and
serving customers. False (Global company profile, easy)
3. All organizations, including service firms such as banks and hospitals, have a
production function. True (What is operations management? moderate)
4. Operations management is the set of activities that create value in the form of
goods and services by transforming inputs into outputs.
True (What is operations management? easy)
5. An example of a "hidden" production function is money transfers at banks.
True (What is operations management? moderate)
6. One reason to study operations management is to learn how people organize
themselves for productive enterprise.
True (Why study OM, easy)
7. The operations manager performs the management activities of planning,
organizing, staffing, leading, and controlling of the OM function.
pg. 2
, True (What operations managers do, easy)
8. "How much inventory of this item should we have?" is within the critical
decision area of managing quality.
False (What operations managers do, easy)
9. In order to have a career in operations management, one must have a degree
in statistics or quantitative methods.
False (What operations managers do, easy)
10. Henry Ford is known as the Father of Scientific Management. False (The
heritage of operations management, easy)
11. Shewhart’s contributions to operations management came during the
Scientific Management Era. False (The heritage of operations
management, easy)
12. Students wanting to pursue a career in operations management will find
multidisciplinary knowledge beneficial.
True (Where are the OM jobs? easy)
13. Customer interaction is often high for manufacturing processes, but low for
services. False (Operations in the service sector, moderate)
14. Productivity is more difficult to improve in the service sector. True (The
productivity challenge, moderate)
15. Manufacturing now constitutes the largest economic sector in postindustrial
societies. False (Operations in the service sector, moderate)
pg. 3
, 16. 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. True (Operations in the service sector, easy)
17. A knowledge society is one that has migrated from work based on knowledge
to one based on manual work.
False (The productivity challenge, easy)
18. Productivity is the total value of all inputs to the transformation process
divided by the total value of the outputs produced.
False (The productivity challenge, easy)
19. Measuring the impact of a capital acquisition on productivity is an example of
multi-factor
productivity.
False (The productivity challenge, moderate)
20. Ethical and social dilemmas arise because stakeholders of a business have
conflicting perspectives. True (Ethics and social responsibility, easy)
{AACSB: Ethical Reasoning}
MULTIPLE CHOICE
21. 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
pg. 4