Quiz 1

Question 1

Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization’s goods or services.

Answer 1

FALSE

Question 2

Often, the collective success or failure of companies’ operations functions will impact the ability of a nation to compete with other nations.

Answer 2

TRUE

Question 3

Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used.

Answer 3

FALSE

Question 4

Operations, marketing, and finance function independently of each other in most organizations.

Answer 4

FALSE

Question 5

The greater the degree of customer involvement, the more challenging the design and management of operations.

Answer 5

TRUE

Question 6

Goods-producing organizations are not involved in service activities.

Answer 6

FALSE

Question 7

Service operations require additional inventory because of the unpredictability of consumer demand.

Answer 7

FALSE

Question 7

The value of outputs is measured by the prices customers are willing to pay for goods or services.

Answer 7

TRUE

Question 8

The use of models will guarantee the best possible decisions.

Answer 8

FALSE

Question 9

People who work in the field of operations should have skills that include both knowledge and people skills.

Answer 9

TRUE

Question 10

Assembly lines achieved productivity but at the expense of the standard of living.

Answer 10

FALSE

Question 11

The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities.

Answer 11

FALSE

Question 12

The word “technology” is used only to refer to “information technology”.

Answer 12

FALSE

Question 13

‘Value added’ by definition is always a positive number since ‘added’ implies increases.

Answer 13

FALSE

Question 14

Service often requires greater labor content, whereas manufacturing is more capital intensive.

Answer 14

TRUE

Question 15

Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials.

Answer 15

FALSE

Question 16

Special-purpose technology is a common way of offering increased customization in manufacturing or services without taking on additional labor costs.

Answer 16

FALSE

Question 17

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

Answer 17

TRUE

Question 18

Most people encounter operations only in profit-making organizations.

Answer 18

FALSE

Question 19

Service involves a much higher degree of customer contact than manufacturing

Answer 19

TRUE