OM: Chapter 1

As an abstraction of reality, a model is a simplified version of a real phenomenon.

TRUE: models are valuable abstractions and simplifications of real, complex phenomena.

One concern in the design of production systems is the degree of standardization.

TRUE: how standardized outputs will be is a critical consideration in the system design question.

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.

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

FALSE: subsystem efficiency doesn't necessarily translate into overall efficiency.

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

FALSE: just as other techniques do, quantitative techniques have limitations. Qualitative information must also be considered.

The use of models will guarantee the best possible decisions.

FALSE: models are useful, but their use does not guarantee the best decisions.

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

FALSE: ethics issues are touching on all areas of management, including operations.

Business organizations consist of three major functional areas which, ideally:

SUPPORT ONE ANOTHER: finance, marketing and operations are these major functional areas. In practice, there is significant interfacing and collaboration between these areas.

Which of the following principles emphasizes that actions should make the community as a whole better off?

THE COMMON GOOD PRINCIPLE: the Common Good Principle is that actions should contribute to the common good of the community.

The responsibilities of the operations manager include:

THE CREATION OF GOODS OR PROVISION OF SERVICES: the scope of operations management ranges across the organization. The operations manager is the key figure in the system with the ultimate responsibility for the creation of goods or provision of services.

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

THE FORCE THE DECISION MAKER TO TAKE INTO ACCOUNT QUALITATIVE ISSUES SUCH AS PERSONALITIES AND EMOTIONS: while models are useful tools for making decisions without confronting the actual situation with all of its complexity, there is the risk that important qualitative information may be overlooked.

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

EASY MEASUREMENT OF PRODUCTIVITY: the productivity of service operations is often hard to measure.

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

INTERNAL SUPPLY CHAIN: the internal parts of a supply chain are part of the operations function itself, supplying operations with parts and materials, performing work on products, and/or performing services.

Which of the following does not relate to system design?

INVENTORY MANAGEMENT: inventory management is a system operation decision area.

Two widely used metrics of variation are the __________ and the _________.

MEAN; STANDARD DEVIATION: the mean and standard deviation summarize important facts regarding the variation in a process.

Farming is an example of:

NONMANUFACTURED GOODS PRODUCTION: farm operations are not manufacturing operations.

Managing the supply chain has become more important as a result of firms increasing their levels of:

OUTSOURCING: by buying more goods and services rather than producing them themselves, firms are increasing their levels of outsourcing, thereby increasing the need to manage the supply chain.

Buying goods or services instead of producing or providing them in-house is called:

OUTSOURCING: outsourcing is increasingly a part of operations management and is contributing to the increased attention on supply chain management.

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 MANAGMENT: revenue management is used to ensure that as much perishable capacity as possible is sold.

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

TRUE: lean production blends the high volume and low unit cost of mass production with the variety and flexibility of craft production.