Chapter 1

Question 1

The creation of goods and
services.

Answer 1

Production

Question 2

Activities that relate to the creation
of goods and services through
the transformation of inputs to
outputs.

Answer 2

Operations management (OM)

Question 3

is one of the
three functions that every
organization performs.

Answer 3

Operations

Question 4

A global network of organizations
and activities that supplies a firm
with goods and services.

Answer 4

Supply chain

Question 5

Coke supply chain

Answer 5

Farmer - Syrup
producer - Bottler -Distributor - Retailer

Question 6

Good OM managers are
_______ and, as a result,
career opportunities and
pay are excellent.

Answer 6

scarce

Question 7

We study OM for four reasons:

Answer 7

how people organize themselves for productive enterprise . to know how goods and services are produced , to understand what operations managers do, because it is such a costly part of an organization

Question 8

All organizations perform three functions to create goods and services:
1. Marketing , which generates demand
2. Production/operations, which creates the product
3. Finance/accounting, which tracks how well the organization is doing, pays the
bills, and collects the money

Answer 8

TRUE

Question 9

All good managers perform the basic functions of the management process. The management
process consists of planning , organizing , staffing , leading , and controlling

Answer 9

TRUE

Question 10

About 40% of all jobs are in OM. Operations managers possess job titles such as
plant manager, quality manager, process improvement consultant, and operations
analyst.

Answer 10

True

Question 11

Economic activities that typically produce an intangible product
(such as education, entertainment, lodging, government, financial, and health
services). Almost all services and almost all goods are a mixture of a service and
a tangible product.

Answer 11

Services

Question 12

The segment of the economy that includes trade, financial, lodging, education, legal, medical, and other professional occupations. Services now
constitute the largest economic sector in postindustrial societies. The huge productivity increases in agriculture and manufacturing have allowed more of our
economic resources to be devoted to services. Many service jobs pay very well.

Answer 12

Service Sector

Question 13

The ratio of outputs (goods and services) divided by one or more
inputs (such as labor, capital, or management)

Answer 13

Productivity

Question 14

High production means producing many units, while high productivity means
producing units efficiently.

Answer 14

True

Question 15

Indicates the ratio of goods and services produced
(outputs) to one resource (input).

Answer 15

Single-factor productivity

Question 16

Indicates the ratio of goods and services produced
(outputs) to many or all resources (inputs).

Answer 16

Multifactor productivity

Question 17

Measurement problems with productivity include: (1) the quality may change,
(2) external elements may interfere, and (3) precise units of measure may be lacking

Answer 17

True

Question 18

A society in which much of the labor force has migrated
from manual work to work based on knowledge

Answer 18

Knowledge society

Question 19

Some of the current challenges for operations managers include:
j Global focus; international collaboration
j Supply chain partnering; joint ventures; alliances
j Sustainability; green products; recycle, reuse
j Rapid product development; design collaboration
j Mass customization; customized products
j Lean operations; continuous improvement and elimination of waste

Question 20

Among the many ethical challenges facing operations managers are (1) efficiently
developing and producing safe, quality products; (2) maintaining a clean environment; (3) providing a safe workplace; and (4) honoring stakeholder commitments.

Question 21

Those with a vested interest in an organization

Answer 21

Stakeholders

Question 22

Services are especially
important because almost 80%
of all jobs are in service firms.

Answer 22

TRUE

Question 23

t is responsible for ensuring that labor and capital are effectively used to increase productivity

Answer 23

Management