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Operations Management, Global Edition 12Th Edition By William Stevenson - Test Bank
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, Chapter 01Introduction to Operations Management
True / False Questions
1. Operations managers are responsible for assessing consumer wants and needs and
selling and promoting the organization's goods or services.
True False
2. Often, the collective success or failure of companies' operations functions will impact
the ability of a nation to compete with other nations.
True False
3. Companies are either producing goods or delivering services. This means that only
one of the two types of operations management strategies are used.
True False
4. Operations, marketing, and finance function independently of each other in most
organizations.
True False
5. The greater the degree of customer involvement, the more challenging the design
and management of operations.
True False
6. Goods-producing organizations are not involved in service activities.
True False
7. Service operations require additional inventory because of the unpredictability of
consumer demand.
True False
8. The value of outputs is measured by the prices customers are willing to pay for goods
or services.
True False
9. The use of models will guarantee the best possible decisions.
True False
1-1
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,10. People who work in the field of operations should have skills that include both
knowledge and people skills.
True False
11. Assembly lines achieved productivity but at the expense of standard of living.
True False
12. The operations manager has primary responsibility for making operations system
design decisions, such as system capacity and location of facilities.
True False
13. The word "technology" is used only to refer to "information technology."
True False
14. "Value added" by definition is always a positive number since "added" implies
increases.
True False
15. Service often requires greater labor content, whereas manufacturing is more capital
intensive.
True False
16. Measurement of productivity in service is more straightforward than in manufacturing
since it is not necessary to take into account the cost of materials.
True False
17. Special-purpose technology is a common way of offering increased customization in
manufacturing or services without taking on additional labor costs.
True False
18. One concern in the design of production systems is the degree of standardization.
True False
19. Most people encounter operations only in profit-making organizations.
True False
20. Service involves a much higher degree of customer contact than manufacturing.
True False
21. A systems approach emphasizes interrelationships among subsystems, but its main
theme is that the whole is greater than the sum of its individual parts.
True False
1-2
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 22. The Pareto phenomenon is one of the most important and pervasive concepts that
can be applied at all levels of management.
True False
23. Operations managers, who usually use quantitative approaches, are not really
concerned with ethical decision making.
True False
24. The optimal solutions produced by quantitative techniques should always be
evaluated in terms of the larger framework.
True False
25. Managers should most often rely on quantitative techniques for important decisions
since quantitative approaches result in more accurate decisions.
True False
26. Many operations management decisions can be described as trade-offs.
True False
27. A systems approach means that we concentrate on efficiency within a subsystem and
thereby assure overall efficiency.
True False
28. Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their
apprentices using custom-made parts.
True False
29. Elton Mayo's Hawthorne experiments were the focal point of the human relations
movement, which emphasized the importance of the human element in job design.
True False
30. Among Ford's many contributions was the introduction of mass production, using the
concepts of interchangeable parts and division of labor.
True False
31. Operations management and marketing are the two functional areas that exist to
support activities in other functions such as accounting, finance, IT, and human
resources.
True False
32. Lean production systems incorporate the advantages of both mass production and
craft production.
True False
1-3
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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