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Part 1 True or False

_____ 1. Operations managers are responsible for assessing consumer wants and needs and selling and promoting the
organization's goods or services.
_____ 2. Operations, marketing, and finance function independently of each other in most organizations.
_____ 3. Goods-producing organizations are not involved in service activities.
_____ 4. The use of models will guarantee the best possible decisions.
_____ 5. Service often requires relatively greater labor content when compared to manufacturing.
_____ 6. Most people encounter operations only in profit-making organizations.
_____ 7. The Pareto phenomenon is one of the most important and pervasive concepts that can be applied at all levels
of management.
_____ 8. Operations and sales are the two functional areas that exist to support activities in other functions such as
accounting, finance, IT, and human resources.
_____ 9. As an abstraction of reality, a model is a simplified version of a real phenomenon.
_____ 10. Often, the collective success or failure of companies' operations functions will impact the ability of a nation
to compete with other nations.
_____ 11. Operations managers, who usually use quantitative approaches, are not really concerned with ethical
decision making.
_____ 12. Many operations management decisions can be described as trade-offs.
_____ 13. One reason to study operations management is to learn how people organize themselves for productive
enterprise.
_____ 14. Operations Management is the management of systems or processes that create goods and/or provide
services. Its focus is on efficiency and effectiveness of processes.
_____ 15. A key aspect of operations management is process management.

Part II: Multiple Choice. Choose the best answer. Write the CAPITAL LETTER of your answer on the blank space
provided.
_____ 1. Marketing personnel and product designers must work closely with operations to successfully develop and
produce new products because operations personnel can best judge how _____________ new product designs will be.

A. marketable
B. segmentable
C. manufacturable
D. profitable

_____ 2. Business organizations consist of three major functional areas which, ideally:

A. support one another.


B. are mutually exclusive.
C. exist independently of each other.
D. function independently of each other.

_____ 3. In their chief role of _________, operations managers exert considerable influence over the degree to which
the goals and objectives of the organization are realized.

A. promoter/salesman
B. designer/builder
C. planner/decision maker
D. recruiter/trainer

_____ 4. Product design and process selection are examples of _______ decisions.

A. financial
B. tactical
C. system design
D. system operation

_____ 5. The responsibilities of the operations manager include:

A. allocating financial resources throughout the organization.


B. the creation of goods or provision of services.
C. promoting the organization’s goods or services.
D. assessing consumer wants and needs.

_____ 6. Dealing with the fact that certain aspects of any management situation are more important than others is
called:

A. analysis of trade-offs.
B. sensitivity analysis.
C. recognition of priorities.
D. analysis of variance.

_____ 7. The fact that a few improvements in a few key areas of operations will have more impact than many
improvements in many other areas is consistent with the:

A. Irwin phenomenon.
B. Pareto phenomenon.
C. Stevenson phenomenon.
D. Tellier phenomenon.

_____ 8. Which of the following does not relate to system design?

A. altering the system capacity


B. location of facilities
C. inventory management
D. selection and acquisition of equipment

_____ 9. Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision
makers to consider ______________ in response to the ___________.

A. flexibility; pressure to be more efficient


B. off shoring; need to promote domestic production
C. sustainability; threat of global warming
D. technology; impact of random variation

_____ 10. Which of the following statements about variation is false?

A. Variation prevents a production process from being as efficient as it can be.


B. Some variation can be prevented.
C. Variation can either be assignable or random.
D. Any variation makes a production process less productive

_____ 11. Which of the following principles emphasizes that actions should make the community as a whole better
off?

A. The Rights Principle


B. The Fairness Principle
C. The Virtue Principle
D. The Common Good Principle

_____ 12. Operations management is applicable

A. mostly to the service sector


B. to services exclusively
C. mostly to the manufacturing sector
D. to all firms, whether manufacturing and service

_____ 13. Which of the following are the primary functions of all organizations?

A. operations, marketing, and human resources


B. marketing, human resources, and finance/accounting
C. sales, quality control, and operations
D. marketing, operations, and finance/accounting

_____ 14. Reasons to study operations management include

A. studying why people organize themselves for free enterprise


B. knowing how goods and services are consumed
C. understanding what human resource managers does
D. learning about a costly part of the enterprise

_____ 15. An operations manager is not likely to be involved in

A. the design of goods and services to satisfy customers' wants and needs
B. the quality of goods and services to satisfy customers' wants and needs
C. the identification of customers' wants and needs
D. work scheduling to meet the due dates promised to customers

_____ 16. Which of the following statements is true?


A. Almost all services and almost all goods are a mixture of a service and a tangible product.
B. A pure good has no tangible product component.
C. A pure service has only a tangible product component.
D. There is no such thing as a pure good.

_____ 17. Typical differences between goods and services do not include

A. cost per unit


B. ability to inventory items
C. timing of production and consumption
D. customer interaction
_____ 18. Which is not true regarding differences between goods and services?

A. Services are generally produced and consumed simultaneously; tangible goods are not.
B. Services tend to be more knowledge-based than products.
C. Services tend to have a more inconsistent product definition than goods.
D. Goods tend to have higher customer interaction than services.

_____ 19. Which of the following services is least likely to be unique, i.e., customized to a particular individual's
needs?

A. dental care
B. hairdressing
C. legal services
D. elementary education

_____ 20. Among the ethical and social challenges facing operations managers are

A. honoring financial commitments


B. maintaining a clean environment
C. developing low-cost products
D. providing an efficient workplace

_____ 21. Productivity tends to be more difficult to improve in the service sector because the work is

A. often difficult to automate


B. typically labor-intensive
C. frequently processed individually
D. often an intellectual task performed by professionals
E. all of the above

_____ 22. Which of the following is not a typical service attribute?

A. intangible product
B. easy to store
C. customer interaction is high
D. simultaneous production and consumption

_____ 23. Which of the following is not a typical attribute of goods?

A. output can be inventoried

B. often easy to automate


C. aspects of quality difficult to measure
D. output can be resold

_____ 24. Typical differences between goods and services do not include

A. cost per unit


B. ability to inventory items
C. timing of production and consumption
D. customer interaction
_____ 25. An operations manager is not likely to be involved in

A. the design of goods and services to satisfy customers' wants and needs
B. the quality of goods and services to satisfy customers' wants and needs
C. the identification of customers' wants and needs
D. work scheduling to meet the due dates promised to customers