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OPERATIONS MANAGEMENT EXAM QUESTIONS WITH ANSWERS #10.
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OPERATIONS MANAGEMENT EXAM QUESTIONS WITHANSWERS #10
Operations managers are responsible for assessing consumer wants and needs and
selling and promoting the organization's goods or services. - correct answer FALSE
Operation managers are not responsible for promoting goods/services.
Often, the collective success or failure of companies' operations functions will impact
the ability of a nation to compete with other nations. - correct answer TRUE
A nation is often only as competitive as its companies.
Companies are either producing goods or delivering services. This means that only one
of the two types of operations management strategies are used. - correct answer
FALSE
Most systems involve a blend of goods and services.
Operations, marketing, and finance function independently of each other in most
organizations. - correct answer FALSE
Operations, marketing and finance are naturally dependent upon one another.
The greater the degree of customer involvement, the more challenging the design and
management of operations. - correct answer TRUE
Greater customer involvement leads to more complexity in the design and management
of operations.
Goods producing organizations are not involved in service activities. - correct answer
FALSE
Most systems involve a blend of goods and services.
Service operations require additional inventory because of the unpredictability of
consumer demand. - correct answer FALSE
Service operations cannot use inventory as a hedge against unpredictable demand.
The value of outputs is measured by the prices customers are willing to pay for goods or
services. - correct answer TRUE
Customers' willingness to pay for goods or services sets the value of these outputs.
The use of models will guarantee the best possible decisions. - correct answer FALSE
Models are useful, but their use does not guarantee the best decisions.
People who work in the field of operations should have skills that include both
knowledge and people skills. - correct answer TRUE
Operations management requires a blend of knowledge and people skills.
Assembly lines achieved productivity but at the expense of standard of living. - correct
answer FALSE
,Productivity and standard of living go hand in hand.
The operations manager has primary responsibility for making operations system
design decisions, such as system capacity and location of facilities. - correct answer
FALSE
The operations manager plays a role in these decisions but is not primarily responsible
for them.
The word "technology" is used only to refer to "information technology." - correct answer
FALSE
Technology also refers to the technology involved in resource transformations.
'Value added' by definition is always a positive number since 'added' implies increases.
- correct answer FALSE
Some transformations result in the output being worth less than the inputs.
Service often requires greater labor content, whereas manufacturing is more capital
intensive. - correct answer TRUE
Service operations tend to be more labor-intensive than manufacturing.
Measurement of productivity in service is more straightforward than in manufacturing
since it is not necessary to take into account the cost of materials. - correct answer
FALSE
Materials cost must be considered in services as well.
Special-purpose technology is a common way of offering increased customization in
manufacturing or services without taking on additional labor costs. - correct answer
FALSE
Special-purpose technology typically reduces costs through standardization.
One concern in the design of production systems is the degree of standardization. -
correct answer TRUE
How standardized outputs will be is a critical consideration in the system design
question.
Most people encounter operations only in profit-making organizations. - correct answer
FALSE
Operations are also relevant to not-for-profit organizations such as the Red Cross.
Service involves a much higher degree of customer contact than manufacturing. -
correct answer TRUE
Customer contact tends to be much higher in services.
A systems approach emphasizes interrelationships among subsystems, but its main
theme is that the whole is greater than the sum of its individual parts. - correct answer
TRUE
, Optimizing the performance of individual subsystems does not guarantee optimal
performance from the overall system.
The Pareto phenomenon is one of the most important and pervasive concepts that can
be applied at all levels of management. - correct answer TRUE
Pareto phenomena can be observed in a wide variety of organization situations.
Operations managers, who usually use quantitative approaches, are not really
concerned with ethical decision-making. - correct answer FALSE
Ethics issues are touching on all areas of management, including operations.
The optimal solutions produced by quantitative techniques should always be evaluated
in terms of the larger framework. - correct answer TRUE
Quantitative techniques have limitations that must be considered.
Managers should most often rely on quantitative techniques for important decisions
since quantitative approaches result in more accurate decisions. - correct answer
FALSE
Just as other techniques do, quantitative techniques have limitations.
Many operations management decisions can be described as tradeoffs. - correct
answer TRUE
Managing tradeoffs is the essence of operations management.
A systems approach means that we concentrate on efficiency within a subsystem and
thereby assure overall efficiency. - correct answer FALSE
Subsystem efficiency doesn't necessarily translate into overall efficiency.
Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their
apprentices using custom made parts. - correct answer TRUE
After the Industrial Revolution, more standardized approaches became common.
Elton Mayo's "Hawthorne Experiment" was the focal point of the Human Relations
Movement, which emphasized the importance of the human element in job design. -
correct answer TRUE
The Hawthorne Experiments were the beginning of the Human Relations Movement.
Among Ford's many contributions was the introduction of mass production, using the
concept of interchangeable parts and division of labor. - correct answer TRUE
Ford made mass production a practical success.
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. - correct answer FALSE
Operations management and marketing are supported by these functions.
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