ISDS 3115 chapter 1

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Some of the operations-related activities of Hard Rock Cafe include designing meals and analyzing them for ingredient cost and labor requirements.


All organizations, including service firms such as banks and hospitals, have a production function.


Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs.


An example of a "hidden" production function is money transfers at banks.


One reason to study operations management is to learn how people organize themselves for productive enterprise.


The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function.


Students wanting to pursue a career in operations management will find multidisciplinary knowledge beneficial.


Productivity is more difficult to improve in the service sector.


In the past half-century, the number of people employed in manufacturing has more or less held steady, but each manufacturing employee is manufacturing 20 times as much.


Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives.


At Hard Rock Cafe, tasks that reflect operations or operations management include:

designing meals, testing meals, analyzing meals for the cost of ingredients, preparing employee schedules

Operations management is applicable:

to all firms, whether manufacturing or service

Which of the following are the primary functions of ALL organizations?

marketing, operations, and finance/accounting

Budgeting, paying the bills, and collection of funds are associated with the:

finance/accounting function

Which of the following would NOT be an operations function in a fast-food restaurant?

advertising and promotion

The marketing function’s main concern is with:

generating the demand for the organization’s products or services

Reasons so study operations management include learning about

why people organize themselves for productive enterprise, how goods and services are produced, what operations managers do, a costly part of the enterprise

The five elements in the management process are:

plan, organize, staff, lead, and control

Illiteracy and poor diets have been known to cost countries up to what percent of their productivity?


An operations manager is NOT likely to be involved in:

the identification of customers’ wants and needs

The 10 critical decisions of operations management include:

layout strategy, maintenance, process and capacity design, managing quality, finance/accounting, advertising, pricing *not mass customization

Walter Shewhart is listed among the important people of operations management because of his contributions to

statistical quality control

The person most responsible for popularizing interchangeable parts in manufacturing was

Eli Whitney

The "Father of Scientific Management" is :

Frederick W. Taylor

Henry Ford is noted for his contributions to

assembly line operations

Who among the following is associated with contributions to quality control in operations management?

W. Edwards Deming

Which is true?

Almost all services and almost all goods are a mixture of a service and a tangible product.

The service industry makes up approx what percentage of all jobs in the U.S.?


Typical differences between goods and services do NOT include:

cost per unit

Which is NOT true regarding differences between goods and services?

Goods tend to have higher customer interaction than services

Which of the following is not a typical attribute of goods?

aspects of quality difficult to measure

Which of the following services is least likely to be unique, i.e., customized to a particular individual’s needs?

elementary education

Which of the following is NOT a typical service attribute?

east to store

Which of the following statements concerning growth of services is true?

Services now constitute the larges economic sectors in the postindustrial societies, the number of people employed in manufacturing has more or less held steady since 1950, each manufacturing employee now produces about 20 times more than in 1950

Current trends in operations management include:

just-in-time performance, rapid product development, mass customization, empowered employees, global focus, supply chain partnering

Which of the following statements about trends in operations management is false?

Environmentally-sensitive production is giving way to low-cost focus.

Productivity measurement is complicated by

the fact that precise units of measure are often unavailable

The total of all outputs produced by the transformation process divided by the total of the inputs is

multifactor productivity

Which of the following inputs has the greatest potential to increase productivity?


Productivity can be improved by

decreasing inputs while holding outputs steady

The largest contributor to productivity increases is ________, estimated to be responsible for _____ of the annual increase.

management; over one-half

Three commonly used productivity variables are

labor, capital, and management

The service sector has lower productivity improvements than the manufacturing sector because

services usually are labor-intensive

Productivity tends to be more difficult to improve in the service sector because the work is

often difficult to automate, typically labor intensive, frequently processed individually, often an intellectual task performed by professionals

Among the ethical and social challenges facing operations managers are

honoring community commitments, maintaining a clean environment, efficiently developing and producing safe quality products, providing a safe/efficient workplace, developing low-cost products, honoring financial commitments **not increasing executive pay

A business’s stakeholders, whose conflicting perspectives cause ethical and social dilemmas. include:

lenders, suppliers, owners, employees

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