Operation Management

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Operations Management, 10e (Heizer/Render)
Chapter 1 Operations and Productivity

True/False

1) Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements. Answer: TRUE
Diff: 1
Topic: Global company profile
Objective: LO1-1

2) Because Hard Rock Cafes are themed restaurants, operations managers focus their layout design efforts on attractiveness while paying little attention to efficiency. Answer: FALSE
Diff: 1
Topic: Global company profile
Objective: no LO

3) All organizations, including service firms such as banks and hospitals, have a production function. Answer: TRUE
Diff: 2
Topic: What is operations management?
Objective: LO1-1

4) Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Answer: TRUE
Diff: 1
Topic: What is operations management?
Objective: LO1-1

5) An example of a "hidden" production function is money transfers at banks. Answer: TRUE
Diff: 2
Topic: What is operations management?
Objective: LO1-1

6) One reason to study operations management is to learn how people organize themselves for productive enterprise. Answer: TRUE
Diff: 1
Topic: Why study OM?
Objective: LO1-1

7) The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. Answer: TRUE
Diff: 1
Topic: What operations managers do
Objective: LO1-1

8) "How much inventory of this item should we have?" is within the critical decision area of managing quality. Answer: FALSE
Diff: 1
Topic: What operations managers do
Objective: LO1-1

9) In order to have a career in operations management, one must have a degree in statistics or quantitative methods. Answer: FALSE
Diff: 1
Topic: What operations managers do
Objective: LO1-1

10) Henry Ford is known as the Father of Scientific Management. Answer: FALSE
Diff: 1
Topic: The heritage of operations management
Objective: LO1-1

11) Shewhart's contributions to operations management came during the Scientific Management Era. Answer: FALSE
Diff: 1
Topic: The heritage of operations management
Objective: LO1-1

12) Customer interaction is often high for manufacturing processes, but low for services. Answer: FALSE
Diff: 2
Topic: Operations in the service sector
Objective: LO1-2

13) Productivity is more difficult to improve in the service sector. Answer: TRUE
Diff: 2
Topic: The productivity challenge
Objective: LO1-6

14) Manufacturing now constitutes the largest economic sector in postindustrial societies. Answer: FALSE
Diff: 2
Topic: Operations in the service sector
Objective: LO1-2

15) In the past half-century, while the number of people employed in manufacturing in the United States has decreased slightly, the output per worker has increased significantly.

Answer: TRUE
Diff: 1
Topic: Operations in the service sector
Objective: LO1-2

16) A knowledge society is one that has migrated from work based on knowledge to one based on manual work. Answer: FALSE
Diff: 1
Topic: The productivity challenge
Objective: LO1-3

17) Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced. Answer: FALSE
Diff: 1
Topic: The productivity challenge
Objective: LO1-3

18) Measuring the impact of a capital acquisition on productivity is an example of multifactor productivity. Answer: FALSE
Diff: 2
Topic: The productivity challenge
Objective: LO1-5

19) Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives. Answer: TRUE
Diff: 1
Topic: Ethics and social responsibility
AACSB: Ethical Reasoning
Objective: no LO

Multiple Choice

1) Which of the following is not one of the Ten Critical Decisions of Operations Management? A)...
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