Operations Management – Test Bank Page 1
OPERATIONS MANAGEMENT
TESTBANK
CHAPTER 1: Introduction to Operations Management
TRUE /FALSE
1. Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for
ingredient cost and labor requirements.
True (Global company profile, easy)
2. The production process at Hard Rock Café is limited to meal preparation and serving customers.
False (Global company profile, easy)
3. All organizations, including service firms such as banks and hospitals, have a production function.
True (What is operations management? moderate)
4. Operations management is the set of activities that create value in the form of goods and services by transforming
inputs into outputs.
True (What is operations management? easy)
5. An example of a "hidden" production function is money transfers at banks.
True (What is operations management? moderate)
6. One reason to study operations management is to learn how people organize themselves for productive enterprise.
True (Why study OM, easy)
7. The operations manager performs the management activities of planning, organizing, staffing, leading, and
controlling of the OM function.
True (What operations managers do, easy)
8. "How much inventory of this item should we have?" is within the critical decision area of managing quality.
False (What operations managers do, easy)
9. In order to have a career in operations management, one must have a degree in statistics or quantitative methods.
False (What operations managers do, easy)
10. Henry Ford is known as the Father of Scientific Management.
False (The heritage of operations management, easy)
11. Shewhart’s contributions to operations management came during the Scientific Management Era.
False (The heritage of operations management, easy)
12. Students wanting to pursue a career in operations management will find multidisciplinary knowledge beneficial.
True (Where are the OM jobs? easy)
13. Customer interaction is often high for manufacturing processes, but low for services.
False (Operations in the service sector, moderate)
14. Productivity is more difficult to improve in the service sector.
True (The productivity challenge, moderate)
15. Manufacturing now constitutes the largest economic sector in postind ustrial societies.
False (Operations in the service sector, moderate)
16. In the past half-century, the number of people employed in manufacturing has more or less held steady, but each
manufacturing employee is manufacturing about 20 times as much.
True (Operations in the service sector, easy)
