1. Operations managers are responsible for assessing consumer wants and needs and selling and promoting the
organization's goods or
... [Show More] services.
FALSE
Operation managers are not responsible for promoting goods/services.
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-04 Describe the operations function and the nature of the operations managers job.
Stevenson - Chapter 01 #1
Topic Area: The Scope of Operations Management
2. Often, the collective success or failure of companies' operations functions will impact the ability of a nation
to compete with other nations.
TRUE
A nation is often only as competitive as its companies.
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define the term operations management.
Stevenson - Chapter 01 #2
Topic Area: Operations Today
3. Companies are either producing goods or delivering services. This means that only one of the two types of
operations management strategies are used.
FALSE
Most systems involve a blend of goods and services.
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-03 Identify similarities and differences between production and service operations.
Stevenson - Chapter 01 #3
Topic Area: Introduction
4. Operations, marketing, and finance function independently of each other in most organizations.
FALSE
Operations, marketing and finance are naturally dependent upon one another.
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Identify the three major functional areas of organizations and describe how they interrelate.
Stevenson - Chapter 01 #4
Topic Area: Introduction
5. The greater the degree of customer involvement, the more challenging the design and management of
operations.
TRUE
Greater customer involvement leads to more complexity in the design and management of operations.
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-04 Describe the operations function and the nature of the operations managers job.
Stevenson - Chapter 01 #5
Topic Area: Introduction
6. Goods producing organizations are not involved in service activities.
FALSE
Most systems involve a blend of goods and services.
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-03 Identify similarities and differences between production and service operations.
Stevenson - Chapter 01 #6
Topic Area: Introduction
7. Service operations require additional inventory because of the unpredictability of consumer demand.
FALSE
Service operations cannot use inventory as a hedge against unpredictable demand.
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-03 Identify similarities and differences between production and service operations.
Stevenson - Chapter 01 #7
Topic Area: Introduction
8. The value of outputs is measured by the prices customers are willing to pay for goods or services.
TRUE
Customers' willingness to pay for goods or services sets the value of these outputs.
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-04 Describe the operations function and the nature of the operations managers job.
Stevenson - Chapter 01 #8
Topic Area: Introduction
9. The use of models will guarantee the best possible decisions.
FALSE
Models are useful, but their use does not guarantee the best decisions.
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-06 Explain the key aspects of operations management decision making.
Stevenson - Chapter 01 #9
Topic Area: Operations Management and Decision Making
10. People who work in the field of operations should have skills that include both knowledge and people
skills.
TRUE
Operations management requires a blend of knowledge and people skills.
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-04 Describe the operations function and the nature of the operations managers job.
Stevenson - Chapter 01 #10
Topic Area: The Scope of Operations Management
11. Assembly lines achieved productivity but at the expense of standard of living.
FALSE
Productivity and standard of living go hand in hand.
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: Hard
Learning Objective: 01-07 Briefly describe the historical evolution of operations management.
Stevenson - Chapter 01 #11
Topic Area: The Historical Evolution of Operations Management
12. The operations manager has primary responsibility for making operations system design decisions, such as
system capacity and location of facilities.
FALSE
The operations manager plays a role in these decisions but is not primarily responsible for them.
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: Hard
Learning Objective: 01-04 Describe the operations function and the nature of the operations managers job.
Stevenson - Chapter 01 #12
Topic Area: The Scope of Operations Management
13. The word "technology" is used only to refer to "information technology".
FALSE
Technology also refers to the technology involved in resource transformations.
AACSB: Reflective Thinking
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-08 Characterize current trends in business that impact operations management.
Stevenson - Chapter 01 #13
Topic Area: Operations Today
14. ‘Value added' by definition is always a positive number since 'added' implies increases.
FALSE
Some transformations result in the output being worth less than the inputs.
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-04 Describe the operations function and the nature of the operations managers job.
Stevenson - Chapter 01 #14
Topic Area: Introduction
15. Service often requires greater labor content, whereas manufacturing is more ca [Show Less]