, Chapter 01
Introduction
True / False Questions
1. Efficiency means doing the right things to create the most value for the company.
True False
2. Effectiveness means doing the right things to create the most value for the company.
True False
3. A doctor completes a surgical procedure on a patient without error. The patient dies
anyway. In operations management terms, we could refer to this doctor as being
efficient but not effective.
True False
4. A worker can be efficient without being effective.
True False
5. A process can be effective without being efficient.
True False
6. Operations and supply chain management is defined as the design, operation, and
improvement of the systems that create and deliver the firm's primary products and
services.
True False
7. The term "value" refers to the relationship between quality and the price paid by the
consumer.
True False
1-1
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
,8. Attempting to balance the desire to efficiently use resources while providing a highly
effective service may create conflict between the two goals.
True False
9. Central to the concept of operations strategy are the notions of operations focus and
trade-offs.
True False
10. OSCM is concerned with management of the trickiest parts of the system that
produces a good or delivers a service.
True False
11. OSCM is a functional field of business with clear line management responsibilities.
True False
12. The supply network as can be thought of as a pipeline through which cash, material
and information flows.
True False
13. Supply networks cannot be constructed for every product or service.
True False
14. "Operations" refers to manufacturing and service processes used to transform
resources employed by a firm into products desired by customers.
True False
15. "Supply chain" refers to processes that move information and material to and from
the manufacturing and service processes of the firm.
True False
16. "Supply chain" includes only inbound freight and inventory.
True False
17. It is critical that a sustainable strategy meet the needs of shareholders and
employees. It is also highly desirable that it preserves the environment.
True False
1-2
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
, 18. Planning is where a firm must determine how anticipated demand will be met with
available resources.
True False
19. Although planning involves determining how the various supply chain processes
(sourcing, making, delivering, and returning) will be met, planning itself is not
considered a supply chain process.
True False
20. The supply chain processes mentioned in the textbook are planning, sourcing,
delivering, and returning.
True False
21. All managers should understand the basic principles that guide the design of
transformation processes.
True False
22. Operations and supply management changes constantly because of the dynamic
nature of competing in global business and the constant evolution of information
technology.
True False
23. Internet technology has made the sharing of reliable real-time information expensive.
True False
24. Capturing information directly from the source through such systems as point-of-sale,
radio-frequency identification tags, bar-code scanners, and automatic recognition has
had little impact on operations and supply chain management.
True False
25. Use of systems like point-of-sale, radio-frequency identification tags, bar-code
scanners, and automatic recognition has made it more difficult to understand what all
the information is saying.
True False
26. Operations and supply chain processes can be conveniently categorized as planning,
sourcing, making, and delivering.
True False
1-3
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
