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ISDS 3115 chapter 1

Some of the operations-related activities of Hard Rock Cafe include designing meals and analyzing them for ingredient cost and labor requirements.
All organizations, including service firms such as banks and hospitals, have a production function.
Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs.
An example of a “hidden” production function is money transfers at banks.
One reason to study operations management is to learn how people organize themselves for productive enterprise.
The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function.
Students wanting to pursue a career in operations management will find multidisciplinary knowledge beneficial.
Productivity is more difficult to improve in the service sector.
In the past half-century, the number of people employed in manufacturing has more or less held steady, but each manufacturing employee is manufacturing 20 times as much.
Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives.
At Hard Rock Cafe, tasks that reflect operations or operations management include:
designing meals, testing meals, analyzing meals for the cost of ingredients, preparing employee schedules
Operations management is applicable:
to all firms, whether manufacturing or service
Which of the following are the primary functions of ALL organizations?
marketing, operations, and finance/accounting
Budgeting, paying the bills, and collection of funds are associated with the:
finance/accounting function
Which of the following would NOT be an operations function in a fast-food restaurant?
advertising and promotion
The marketing function’s main concern is with:
generating the demand for the organization’s products or services
Reasons so study operations management include learning about
why people organize themselves for productive enterprise, how goods and services are produced, what operations managers do, a costly part of the enterprise
The five elements in the management process are:
plan, organize, staff, lead, and control
Illiteracy and poor diets have been known to cost countries up to what percent of their productivity?
An operations manager is NOT likely to be involved in:
the identification of customers’ wants and needs
The 10 critical decisions of operations management include:
layout strategy, maintenance, process and capacity design, managing quality, finance/accounting, advertising, pricing

*not mass customization

Walter Shewhart is listed among the important people of operations management because of his contributions to
statistical quality control
The person most responsible for popularizing interchangeable parts in manufacturing was
Eli Whitney
The “Father of Scientific Management” is :
Frederick W. Taylor
Henry Ford is noted for his contributions to
assembly line operations
Who among the following is associated with contributions to quality control in operations management?
W. Edwards Deming
Which is true?
Almost all services and almost all goods are a mixture of a service and a tangible product.
The service industry makes up approx what percentage of all jobs in the U.S.?
Typical differences between goods and services do NOT include:
cost per unit
Which is NOT true regarding differences between goods and services?
Goods tend to have higher customer interaction than services
Which of the following is not a typical attribute of goods?
aspects of quality difficult to measure
Which of the following services is least likely to be unique, i.e., customized to a particular individual’s needs?
elementary education
Which of the following is NOT a typical service attribute?
east to store
Which of the following statements concerning growth of services is true?
Services now constitute the larges economic sectors in the postindustrial societies, the number of people employed in manufacturing has more or less held steady since 1950, each manufacturing employee now produces about 20 times more than in 1950
Current trends in operations management include:
just-in-time performance, rapid product development, mass customization, empowered employees, global focus, supply chain partnering
Which of the following statements about trends in operations management is false?
Environmentally-sensitive production is giving way to low-cost focus.
Productivity measurement is complicated by
the fact that precise units of measure are often unavailable
The total of all outputs produced by the transformation process divided by the total of the inputs is
multifactor productivity
Which of the following inputs has the greatest potential to increase productivity?
Productivity can be improved by
decreasing inputs while holding outputs steady
The largest contributor to productivity increases is ________, estimated to be responsible for _____ of the annual increase.
management; over one-half
Three commonly used productivity variables are
labor, capital, and management
The service sector has lower productivity improvements than the manufacturing sector because
services usually are labor-intensive
Productivity tends to be more difficult to improve in the service sector because the work is
often difficult to automate, typically labor intensive, frequently processed individually, often an intellectual task performed by professionals
Among the ethical and social challenges facing operations managers are
honoring community commitments, maintaining a clean environment, efficiently developing and producing safe quality products, providing a safe/efficient workplace, developing low-cost products, honoring financial commitments

**not increasing executive pay

A business’s stakeholders, whose conflicting perspectives cause ethical and social dilemmas. include:
lenders, suppliers, owners, employees

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