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ISDS 3115 Ch. 1

True
Some of the operations-related activities of Hard Rock Cafe include designing meals and analyzing them for ingredient cost and labor requirements
False
The production process at Hard Rock Cafe is limited to meal preparation and serving customers
True
All organizations, including service firms such as banks and hospitals, have a good production function.
True
Operations management is the set of activities that create value in the form of goods and services by transforming inputs to outputs.
True
An example of a “hidden” production function is money transfers at banks.
True
One reason to study operations management is to learn how people organize themselves for productive enterprise
True
The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function.
False
“How much inventory of this item should we have?” is within the critical decision area of managing quality.
False
In order to have a career in operations management, one must have a degree in statistics or quantitative methods.
False
Henry Ford is known as the Father of Scientific Management
False
Shewhart’s contributions to operations management came during the Scientific Management Era.
True
Students wanting to pursue a career in operations management will find multidisciplinary knowledge beneficial.
False
Customer interaction is often high for manufacturing processes, but low for services.
True
Productivity is more difficult to improve in the service sector
False
Manufacturing now constitutes the largest economic sector in postindustrial societies.
True
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.
False
A knowledge society is one that has migrated from work based on knowledge to one based on manual work.
False
Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced.
False
Measuring the impact of a capital acquisition on productivity is an example of multi-factor productivity.
True
Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives.
All of the above
At Hard Rock Cafe, 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

Preparing employee Schedules
An operations task performed at Hard Rock Cafe 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

To all firms, whether manufacturing and service
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 exclusively

Marketing, Operations, and finance/accounting
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

Finance/accounting function
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

Advertising and promotion
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

Generating the demand for the organization’s products or services
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

Learning about a costly part of the enterprise
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

All of the above
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

Plan, organize, staff, lead, and control
The five elements in the management process are
20%
Illiteracy and poor diets have been known to cost countries up to what percent of their productivity?
Pricing
Which of the following is not an element of the management process?

a. controlling
b. leading
c. planning
d. pricing
e. staffing

The identification of customers’ wants and needs
An operations manager is not likely to be involved in

a. the design of goods and services to satisfy customers’ wants and needs
b. the quality of goods and services to satisfy customers’ wants and needs
c. the identification of customers’ wants and needs
d. work scheduling to meet the due dates promised to customers
e. maintenance schedules

Financial Analysis
All of the following decisions fall within the scope of operations management except for

a. financial analysis
b. design of goods and processes
c. location of facilities
d. managing quality
e. All of the above fall within the scope of operations management.

All of the Above
The Ten Critical Decisions of Operations Management include

a. Layout strategy
b. Maintenance
c. Process and capacity design
d. Managing quality
e. all of the above

Mass Customization
Which of the following is not one of The Ten Critical Decisions of Operations Management?

a. Layout strategy
b. Maintenance
c. Process and capacity design
d. Mass customization
e. Supply chain management

Process and capacity design
The Ten Critical Decisions of Operations Management include

a. Finance/accounting
b. Advertising
c. Process and capacity design
d. Pricing
e. all of the above

Statistical Quality Control
Walter Shewhart is listed among the important people of operations management because of his
contributions to

a. assembly line production
b. measuring the productivity in the service sector
c. just-in-time inventory methods
d. statistical quality control
e. all of the above

1920s; statistical sampling
Walter Shewhart, in the _____, provided the foundations for ______ in operations management.
Nineteenth century; interchangeable parts
Eli Whitney, in the _____, provided the foundations for ______ in operations management.
Eli Whitney
The person most responsible for popularizing interchangeable parts in manufacturing was
Frederick W. Taylor
The “Father of Scientific Management” is
Assembly line operations
Henry Ford is noted for his contributions to
W. Edwards Deming
Who among the following is associated with contributions to quality control in operations
management?

a. Charles Babbage
b. Henry Ford
c. Frank Gilbreth
d. W. Edwards Deming
e. Henri Fayol

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