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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.
E) decision table analysis.

F) A) and D)
G) A) and E)

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The greater the degree of customer involvement, the more challenging the design and management of operations.

A) True
B) False

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Operations managers, who usually use quantitative approaches, are not really concerned with ethical decision making.

A) True
B) False

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The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities.

A) True
B) False

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Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom-made parts.

A) True
B) False

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Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management.


A) outsourcing; supply chain
B) offshoring; lean
C) downsizing; total quality
D) optimizing; inventory
E) internationalization; intercultural

F) A) and B)
G) C) and D)

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Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials.

A) True
B) False

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A "product package" consists of


A) the exterior wrapping.
B) the shipping container.
C) a combination of goods and services.
D) goods if a manufacturing organization.
E) customer relations if a service organization.

F) B) and C)
G) None of the above

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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
E) Random variation generally cannot be influenced by managers.

F) C) and E)
G) A) and B)

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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.
E) analyzing investment proposals.

F) B) and C)
G) A) and E)

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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.
E) Adam Smith phenomenon.

F) B) and E)
G) A) and C)

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Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used.

A) True
B) False

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A systems approach means that we concentrate on efficiency within a subsystem and thereby assure overall efficiency.

A) True
B) False

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Supplying operations with parts and materials, performing work on products, and/or performing services are part of the firm's


A) division of labor.
B) market development.
C) outsourcing.
D) external process orientation.
E) internal supply chain.

F) A) and B)
G) None of the above

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Which of the following would tend to increase the importance of supply chain management?


A) increased supply chain stability
B) lower levels of outsourcing
C) reduced competitive pressures
D) increased globalization
E) greater emphasis on local markets

F) A) and B)
G) All of the above

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People who work in the field of operations should have skills that include both knowledge and people skills.

A) True
B) False

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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
E) troubleshooter/problem-solver

F) A) and B)
G) A) and C)

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Operations, marketing, and finance function independently of each other in most organizations.

A) True
B) False

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_____ is considered to be more challenging for _____ due to the higher variation in input.


A) Labor content of jobs; operations
B) Uniformity of input; inventory management
C) Measurement of productivity; managers
D) Wages; manufacturing
E) Quality assurance; services

F) All of the above
G) D) and E)

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Among Ford's many contributions was the introduction of mass production, using the concepts of interchangeable parts and division of labor.

A) True
B) False

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