Operations Management 3200 CH. 1

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.

outsourcing; supply chain

Many operations management decisions can be described as trade-offs.

true

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

True: mass production a practical success.

Which of the following is not a characteristic of service operations?

easy measurement of productivity (hard to measure)

Goods-producing organizations are not involved in service activities.

False

Operations and sales are the two functional areas that exist to support activities in other functions such as accounting, finance, IT, and human resources.

False

Specialized machinery or equipment is a common way of offering increased customization in manufacturing or services without taking on additional costs.

False

Managers should often rely on quantitative techniques for important decisions since quantitative approaches result in more accurate decisions.

False: just as other tech. do, quantitative techniques have limitations. Qualitative info must also be considered.

Which of the following refers to service and production processes that use resources in ways that do not harm ecological systems?

Sustainability

Which of the following is not a benefit of using models in decisions making?

They force the decision maker to take into account the qualitative issues such as personalities and emotions.

A systems approach emphasizes interrelationships among subsystems, but its main themes is that the whole is greater than the sum of its individual parts.

True

Lean production systems incorporate the advantages of both mass production and craft production.

True

Service typically involves a much higher degree of customer contact than manufacturing.

True

The Pareto phenomenon is one of the most important and pervasive concepts that can be applied at all levels of management.

True

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.

b. the creation of goods or provision of services.

Farming is an example of: A. an obsolete activity B. a virtual organization C. non-manufactured goods D. a growth industry E. customized manufacturing

c. non-manufactured goods.

Knowledge skills don't include: a. Process knowledge b. accounting skills c. communication skills d. global knowledge e. financial skills

communication skills: generally considered to be people skills

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

internal supply chain.

Some companies attempt to maximize the revenue they receive from fixed operating capacity by influencing demands through price manipulation. This is an example of

revenue management

Business organizations consist of three major functional areas which, ideally

support one another.