Operations Management, 5th Canadian Edition Test Bank

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1Student: ___________________________________________________________________________1.As a service business, the operations management activities of an airline company have nothingin common with the operations management activities within abicycle manufacturing company.TrueFalse2.Operations managers are responsible for managing activities and resources that produce goodsand/or provide services.TrueFalse3.Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing cost andtime.TrueFalse4.Operations, marketing, and finance function independently of each other in most organizations.TrueFalse5.The operations function exists only in firms that are goods-oriented.TrueFalse6.Operations management pertains almost exclusively to the management of manufacturingoperations.TrueFalse7.Value-added refers to the cost of the inputs required to produce goods and services.TrueFalse8.Aslong as a product is ready in advance of when customers demand it, the timing of when aproduct is manufactured does not influence the value-added.TrueFalse9.Storing an item earlier than the scheduled delivery date is an example of a value adding activity.TrueFalse

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10.Management information systems (MIS) are concerned with providing management with theinformation it needs to effectively manage.TrueFalse11.Operations management involves both system design and planning/control decisions.TrueFalse12.System design decisions have very little impact on planning/control decisions.TrueFalse13.An example of an operations control decision is the choice of location.TrueFalse14.Scheduling jobs is a system design decision and not a planning decision.TrueFalse15.Design decisions are usually strategic and long term, while planning decisions are tactical andmedium term.TrueFalse16.Managing inventory levels is considered a planning/control operations decision area.TrueFalse17.A basic difference between manufacturing and service organizations is that services are action-oriented and manufacturing is goods-oriented.TrueFalse18.Service involves a much higher degree of customer contact than the production of goods.TrueFalse19.Service often requires a higher labour content, whereas the production of goods is more capitalintensive.TrueFalse20.Measurement of productivity in service is more straightforward than in goods production due tothe high degree of uniformity of inputs.TrueFalse

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21.Models are simplified representations of something and thus ignore important aspects of asituation.TrueFalse22.Quantitative techniques are often quick and practical techniques for many decisions.TrueFalse23.A systems approach emphasizes interrelationships among subsystems, but its main theme is thatthe whole isgreater than the sum of its individual parts.TrueFalse24.Queuing techniques are useful for analyzing situations in which waiting lines form.TrueFalse25.It is essential to use the systems approach when something is being designed, redesigned,implemented, improved, or otherwise changed.TrueFalse26.A systems approach is to concentrate on efficiency within a subsystem and thereby achieveoverall efficiency.TrueFalse27.Many operations management decisions can be described as trade-offs.TrueFalse28.The Pareto phenomenon is one of the most important and pervasive concepts that can be appliedat all levels of management.TrueFalse29.Operations managers, who usually usequantitative approaches, have no responsibility to makeethical decisions.TrueFalse30.Prior to the Industrial Revolution, goods were produced primarily by craftsmen or theirapprentices using custom made parts.TrueFalse31.Frederick Taylor is often referred to as the "father of scientific management".TrueFalse

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32.The Human Relations Movement, which emphasized the importance of the human element in jobdesign, was replaced by the more technical aspects of Scientific Management.TrueFalse33.The moving assembly line introduced by Henry Ford is an example of the development of massproduction based on large volumes of standardized goods produced using low or semi-skilledworkers and highly specialized equipment.TrueFalse34.The impact of globalization for manufacturing companies has been reduced reliance on longinternational supply chains because of the increasing cost to ship components and finished goodsto foreign markets.TrueFalse35.Operations management encompasses all of the following EXCEPT:A.buying materials.B.capacity planning.C.scheduling.D.motivating employees and training.E.preparing financial statements.36.Which of the following is areason for studying operations management?A.A large percentage of a company's expenses occur in the operations management activitiesthat are at the core of all business organizations.B.Activities in all of the other areas of business organizations, such as accounting and marketingare interrelated with operations management activities.C.Many management jobs are in operations management-related areas, such as productionplanning, inventory management, and more.D.All of thechoices are reasons.E.None of the choices are correct.37.The three primary functions that exist in most business organizations are:A.manufacturing, production, and operations.B.operations, marketing, and finance.C.operations, accounting, and marketing.D.operations, production, and finance.E.none of the choices are correct.

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38.The three major functions of business organizations:A.perform different but related activities.B.arerelated indirectly only.C.must work together, but not very closely.D.function independently of each other.E.perform similar and related activities.39.Which of the following isnota type of service operations?A.Retail tradeB.Transportation and warehousingC.Fabrication of metalsD.BankingE.Hotels and restaurants40.Measurements taken at various points in the transformation process for controlpurposes arecalled:A.plans.B.directions.C.controls.D.feedback.E.proposals.41.Measuring process outputs at various points in order to compare outputs to previouslyestablished standards to determine if correctiveaction is needed is called:A.planning and directing.B.directing and conversion.C.feedback and control.D.controlling and leading.E.leading and transformation.42.Value-added refers to:A.the cost of inputs.B.the price of outputs.C.the difference between cost of inputs and what customers are willing to pay.D.the extra profit obtained from increased productivity.E.all of the choices are correct.

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43.Economic analysis of investmentproposals, and provision of funds are activities associated withthe:A.operation function.B.marketing function.C.purchasing function.D.finance function.E.industrial engineering function.44.The marketingfunction's main concern is with:A.producing goods or providing services.B.assessing customer wants and needs.C.procuring materials, supplies, and equipment.D.performing economic analysis of investment proposals.E.securingmonetary resources.45.Planning decisions are usually __________ and __________ term.A.strategic; longB.tactical; mediumC.forecasting; shortD.strategic; shortE.tactical; long46.Which of the following doesnotrelate to system design?A.Long term capacityB.Location of facilitiesC.Inventory managementD.Process designE.Departmental layout47.Tactical planning and control activities involvemaking decisions about all of the followingEXCEPT:A.location of facilities.B.scheduling.C.material requirements planning.D.project management.E.inventory management.

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48.System capacity and location of facilities areexamples of:A.financial decisions.B.tactical decisions.C.systems design decisions.D.operational planning decisions.E.forecasting decisions.49.The responsibilities of operations managers classified as planningactivities include:A.inventory, production pace, quality, and costs.B.organizing departments, subcontracting, supplier contracts, and staffing.C.forecasting, planning, organizing, and directing.D.scheduling, job assignments, purchasing, and logistics.E.capacity, location, layout, and mix of products.50.Which of the following responsibilities of operations managers is considered a directing activityrather than a planning or control activity?A.selectingproduction equipmentB.product mix decisionsC.scheduling workersD.inventory managementE.layout of production facilities51.Of the following, which aspect of the evolution of operations management is affiliated withJapanesemanufacturing companies?A.total quality managementB.scientific managementC.the human relations movement.D.the industrial revolution.E.craft production52.Which isnota significant difference between manufacturing and service operations?A.Cost per unitB.Uniformity of output.C.Labour content of jobs.D.Amount of customer contact.E.Measurement of productivity.

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53.Which of the following isnota characteristic of service operations?A.Intangible output.B.High customer contact.C.High labour content.D.Easy measurement of productivity.E.Low uniformity of output.54.Theresponsibilities of operations managers classified as controlling activities are:A.inventory, production pace, quality, and costs.B.organizing departments, subcontracting, supplier contracts, and staffing.C.forecasting, planning,organizing, and directing.D.scheduling, job assignments, purchasing, and logistics.E.capacity, location, layout, and mix of products.55.Which of the following isnota general approach to decision-making?A.EstablishingprioritiesB.Subjective approachC.Analysis of trade-offsD.Systems approachE.Quantitative approaches56.Which of the following isnota characteristic of models used to support decision making?A.They provide a simplified representation of a design problem.B.They ignore unimportant details, concentrating on the most important aspects of a situation.C.They may be based on mathematical representations or graphical schematics.D.They provide abstract representations of a design problem.E.They are limited to representations of objective quantitative factors.57.Which of the following isnottrue about the systems approach?A.It recognizes the importance of taking into account the impact on all parts of the system.B.It emphasizes interrelationships among subsystems.C.It concentrates onefficiency within subsystems.D.It becomes essential whenever something is being redesigned or improved.E.The objectives of the whole take precedence over those of any one part.

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58.Which isnota quantitative technique to problem solving?A.Linear programmingB.Queuing techniquesC.Statistical techniquesD.Heuristic approachE.All of the choices are quantitative approaches.59.Dealing with the fact that certain aspects of any management situation are moreimportant thanothers is called:A.analysis of trade-offs.B.sensitivity analysis.C.establishing priorities.D.analysis of variance.E.decision analysis.60.The fact that improvements in a few key areas of operations willhave more impact than manyimprovements in less significant areas is referred to as the ___________.A.forecasting approachB.Pareto phenomenonC.productivity challengeD.analysis of trade-offsE.ethical dilemma61.Which ofthe following developments related to the historical evolution of operations managementis the oldest?A.The human relations movement advocated by Mayo, Maslow, and Hertzberg.B.The introduction of the moving assembly line by Henry Ford.C.Scientific management principles espoused by Frederick Taylor.D.The principle of division of labour documented in Adam Smith's bookTheWealthofNations.E.The influence of Japanese management practices.62.Which of the following isnotproperly matched?A.Mathematical model for inventory management-Elton MayoB.Division of labour-Adam SmithC.Scientific Management-F. W. TaylorD.Motion study-Frank and Lillian GilbrethE.Moving assembly line-Henry Ford

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63.Which of the following isnota major trend influencing the strategies of manufacturingorganizations?A.GlobalizationB.The Internet and e-commerceC.Introduction of mass productionD.Supply chain managementE.Technological advances

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1Key1.As a service business, the operations management activities of an airline company havenothing in common with the operations management activities within a bicycle manufacturingcompany.FALSEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-01 Define the term operations management and identify operations management jobs.Stevenson-Chapter 01 #1Topic: 01-01 Introduction2.Operations managers areresponsible for managing activities and resources that producegoods and/or provide services.TRUEAccessibility: Keyboard NavigationDifficulty: EasyLearning Objective: 01-01 Define the term operations management and identify operations management jobs.Stevenson-Chapter 01 #2Topic: 01-01 Introduction3.Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing costand time.TRUEAccessibility: Keyboard NavigationDifficulty: MediumLearningObjective: 01-01 Define the term operations management and identify operations management jobs.Stevenson-Chapter 01 #3Topic: 01-01 Introduction4.Operations, marketing, and finance function independently of each other in mostorganizations.FALSEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-02 Identify the three major functional areas of organizations and describe how they interrelate.Stevenson-Chapter 01 #4Topic: 01-04 Functions within Organizations5.The operations function exists only in firms that are goods-oriented.FALSEAccessibility: Keyboard NavigationDifficulty: EasyLearning Objective: 01-02 Identify the three major functional areas of organizations anddescribe how they interrelate.Stevenson-Chapter 01 #5Topic: 01-04 Functions within Organizations

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6.Operations management pertains almost exclusively to the management of manufacturingoperations.FALSEAccessibility: KeyboardNavigationDifficulty: EasyLearning Objective: 01-01 Define the term operations management and identify operations management jobs.Stevenson-Chapter 01 #6Topic: 01-01 Introduction7.Value-added refers to the cost of the inputs required to produce goods and services.FALSEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-02 Identify the three major functional areas of organizations and describe how they interrelate.Stevenson-Chapter 01 #7Topic: 01-05Operations8.As long as a product is ready in advance of when customers demand it, the timing of when aproduct is manufactured does not influence the value-added.FALSEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-02 Identify the three major functional areas of organizations and describe how they interrelate.Stevenson-Chapter 01 #8Topic: 01-05 Operations9.Storing an item earlier than the scheduled delivery date is an example of a value addingactivity.FALSEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-02 Identify the three major functional areas of organizations and describe how they interrelate.Stevenson-Chapter 01 #9Topic: 01-05 Operations10.Management information systems (MIS) are concerned with providing management with theinformation it needs to effectively manage.TRUEAccessibility: Keyboard NavigationDifficulty: EasyLearning Objective: 01-02 Identify the three major functional areas of organizations and describe how they interrelate.Stevenson-Chapter 01 #10Topic: 01-08 Other Functions

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11.Operations management involves both system design and planning/control decisions.TRUEAccessibility: KeyboardNavigationDifficulty: EasyLearning Objective: 01-03 Describe the scope of operations management and provide an overview of this book including differentiating between designand planning/control decisions.Stevenson-Chapter 01 #11Topic: 01-09 The Scope of Operations Management12.System design decisions have very little impact on planning/control decisions.FALSEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-03 Describe the scope of operations management and provide an overview of this book including differentiating between designand planning/control decisions.Stevenson-Chapter 01 #12Topic: 01-09 The Scope of Operations Management13.An example of an operations control decision is the choice oflocation.FALSEAccessibility: Keyboard NavigationDifficulty: HardLearning Objective: 01-03 Describe the scope of operations management and provide an overview of this book including differentiating between designandplanning/control decisions.Stevenson-Chapter 01 #13Topic: 01-09 The Scope of Operations Management14.Scheduling jobs is a system design decision and not a planning decision.FALSEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-03 Describe the scope of operations management and provide an overview of this book including differentiating between designand planning/control decisions.Stevenson-Chapter 01 #14Topic: 01-09 The Scope of Operations Management15.Design decisions are usually strategic and long term, while planning decisions are tactical andmedium term.TRUEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-03 Describe the scope of operations management and provide an overview of this book including differentiating between designand planning/control decisions.Stevenson-Chapter 01 #15Topic: 01-09 The Scope of Operations Management16.Managing inventory levels is considered aplanning/control operations decision area.TRUEAccessibility: Keyboard Navigation

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Difficulty: EasyLearning Objective: 01-03 Describe the scope of operations management and provide an overview of this book including differentiating between designand planning/control decisions.Stevenson-Chapter 01 #16Topic: 01-09 The Scope of Operations Management17.A basic difference between manufacturing and service organizations is that services areaction-oriented and manufacturing isgoods-oriented.TRUEAccessibility: Keyboard NavigationDifficulty: EasyLearning Objective: 01-04 Compare goods and services.Stevenson-Chapter 01 #17Topic: 01-10 Differentiating Production of Goods and Services18.Service involves a much higher degree of customer contact than the production of goods.TRUEAccessibility: Keyboard NavigationDifficulty: EasyLearning Objective: 01-04 Compare goods and services.Stevenson-Chapter 01 #18Topic: 01-10 Differentiating Production ofGoods and Services19.Service often requires a higher labour content, whereas the production of goods is morecapital intensive.TRUEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-04 Compare goods andservices.Stevenson-Chapter 01 #19Topic: 01-10 Differentiating Production of Goods and Services20.Measurement of productivity in service is more straightforward than in goods production due tothe high degree of uniformity of inputs.FALSEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-04 Compare goods and services.Stevenson-Chapter 01 #20Topic: 01-10 Differentiating Production of Goods and Services21.Models are simplified representations ofsomething and thus ignore important aspects of asituation.FALSEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-06 Describe the key aspects of operations management decision making.Stevenson-Chapter 01 #21Topic: 01-13 Models

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22.Quantitative techniques are often quick and practical techniques for many decisions.FALSEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-06 Describe the key aspects of operations management decision making.Stevenson-Chapter 01 #22Topic: 01-14 Quantitative Techniques23.A systems approach emphasizes interrelationships among subsystems, but its main theme isthat the whole is greater than the sum of its individual parts.TRUEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-06 Describe the key aspects of operations management decision making.Stevenson-Chapter 01 #23Topic: 01-16 The Systems Approach24.Queuing techniques are useful for analyzing situations in which waiting lines form.TRUEAccessibility: Keyboard NavigationDifficulty: EasyLearning Objective: 01-06 Describe the key aspects of operations management decision making.Stevenson-Chapter 01 #24Topic: 01-14Quantitative Techniques25.It is essential to use the systems approach when something is being designed, redesigned,implemented, improved, or otherwise changed.TRUEAccessibility: Keyboard NavigationDifficulty: EasyLearning Objective: 01-06 Describe the key aspects of operations management decision making.Stevenson-Chapter 01 #25Topic: 01-16 The Systems Approach26.A systems approach is to concentrate on efficiency within a subsystem and thereby achieveoverall efficiency.FALSEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-06 Describe the key aspects of operations management decision making.Stevenson-Chapter 01 #26Topic: 01-16 The Systems Approach27.Many operationsmanagement decisions can be described as trade-offs.TRUEAccessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 01-06 Describe the key aspects of operations management decision making.

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