Chapter 1

In the future, operations management will be less important because the economy is becoming more service oriented, and less manufacturing oriented.

False

Sustainability refers to the ability of a firm to "keep its head above water."

False

Which of the following is not true about the systems approach, or are all true?

Helps to achieve efficiency within subsystems.

The fact that improvements in a few key factors will have a major impact on operations is associated with this name:

Pareto

A key difference between the production of goods and the performance of services is:

Services generally can't be stored.

The "father of scientific management" was:

Taylor

The Pareto phenomenon is best represented by which of these phrases?

The few and the many.

Measurements taken at various points in the transformation process for control purposes are called:

feedback

The key to mass production was

interchangeable parts

The need for supply chain management is increasing for all of the following reasons except:

labor laws

A key reason that companies resort to outsourcing is to:

reduce costs

Which one of the following is not an element of supply chain management, or are they all elements? A) Customers B) Inventory C) Location D) Design

A) Customers B) Inventory C) Location D) Design E) All are elements

Which one of these is not one of the ethical principles, or are they all principles? A) rights B) fairness C) utilitarian D) virtue E) All are principles

A) rights B) fairness C) utilitarian D) virtue E) All are principles

Operations Management includes all of these activities except:

Assessing consumer wants and needs.

A supply chain consists of the trucks, ships, or trains that deliver supplies to companies.

False

A systems approach refers to the systems in an organization, such as its accounting system, transportation system, and the like.

False

A key goal of business organizations is to achieve a matching of supply and demand.

True

All processes exhibit variation that must be managed.

True

Although there are some basic differences between services and products that must be taken into account from a managerial standpoint, there are also many similarities between the two.

True

Business processes are composed of a series of supplier/customer relationships.

True

Managers rely on metrics to help them manage and control operations.

True

The operations and sales functions are line functions, and all other functions are support functions.

True

The operations function is that part of every business organization that produces products and/or delivers services.

True

Viewing decisions in the context of the "big picture" is a key element of this approach.

systems

Which type of variation is the result of a deliberate choice of a business?

variety