Chapter 01 The Operations Function Chapter 01 The Operations Function Answer Key Multiple Choice Questions 1 Why is operations management a more encompassing term than production management A Operations management is concerned with multiple products and services B Operations management refers to service as well as manufacturing organizations C Operations management is broader including the financing and marketing functions D Operations management makes use of the tools of quantitative analysis and computer systems LO 1 1 Topic Definition of Operations and Supply Chain Management Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Production management was changed to operations management to include services 2 Which of the following functions is responsible for the actual movement of goods and or services across organizations A Logistics B Operations C Purchasing D None of these LO 1 1 Topic Definition of Operations and Supply Chain Management Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback Logistics is responsible for the movement of goods services 3 Approximately what percentage of the American workforce works in service industries A 20 B 40 C 80 D 90 LO 1 1 Topic Definition of Operations and Supply Chain Management Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback The U S Census reports more than 80 of the workforce is employed in services 1 1 Chapter 01 The Operations Function 4 The five decision areas in operations management are A planning technology inventory control and services B process quality capacity inventory and supply chain C process quality technology capacity and production D none of these LO 1 2 Topic Operations Decisions Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback Process quality capacity inventory and supply chain are the five decision areas 5 A productive process approach A views operations as a separate organizational function B must provide feedback information for control of process inputs and technology C is of limited use in service organizations D disregards human and social concerns LO 1 4 Topic Operations as a Process Difficulty 3 Hard AACSB Reflective thinking Bloom s Understand Feedback The model of operations as a productive system includes a feedback loop 6 Capacity decisions A include staffing and scheduling B include inventory control C include defining product specifications D are none of these LO 1 2 Topic Operations Decisions Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Capacity decisions include staffing levels and scheduling but not inventory or specifications 1 2 Chapter 01 The Operations Function 7 Inventory decisions involve A determining what to order how much to order and when to order B tracking the flow of materials C managing the finished goods inventories D all of these LO 1 2 Topic Operations Decisions Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback Ordering decisions finished goods inventory decisions and inventory tracking are all included in the inventory decision area 8 Challenges facing operations and supply chain managers signify that A more emphasis should be placed on manufacturing than on service industries B every operation should be externally directed to meet the customers requirements C operations decisions should precede decisions in other functions in an organization D to be competitive strategies for operations should have a narrow focus such as consideration of the effects of industry changes only LO 1 5 Topic Challenges Facing Operations and Supply Chain Managers Difficulty 3 Hard AACSB Reflective thinking Bloom s Understand Feedback A C and D are not correct increasing need to meet customer requirements is a current challenge 9 The essence of operations management can be described by A process capacity and people B decisions function and process C planning control and organization D integrated planning and control LO 1 1 Topic Definition of Operations and Supply Chain Management Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Operations decisions operations as a function and process orientation are the heart of operations 1 3 Chapter 01 The Operations Function 10 Which of the following is NOT a new challenge facing operations A Globalization of operations B Responding to the voice of the customer C Quality teams D Environmental concerns LO 1 5 Topic Challenges Facing Operations and Supply Chain Managers Difficulty 3 Hard AACSB Reflective thinking Bloom s Understand Feedback A B and C are included along with integration of decisions and services in the list of five challenges 11 The three primary functions that exist in most business organizations are A operations accounting and finance B operations production and finance C production marketing and human resources D operations finance and marketing LO 1 3 Topic Cross Functional Decision Making Difficulty 2 Moderate AACSB Reflective thinking Bloom s Remember Feedback Operations finance and marketing are the core functions in most businesses 12 The three major functions of business organizations A are mutually exclusive B function independently of each other C interface with each other D do not interface with each other LO 1 3 Topic Cross Functional Decision Making Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback Each core function must integrate decisions with each other 1 4 Chapter 01 The Operations Function 13 Which one of the following would NOT generally be classified under the heading of input in a university system A Staff B Equipment C Facilities D Knowledge E Research LO 1 4 Topic Operations as a Process Difficulty 3 Hard AACSB Reflective thinking Bloom s Understand Feedback Research would be an output of a university system 14 The five major decision responsibilities of operations management are A process quality capacity sourcing and human resources B process quality human resources logistics and inventory C quality inventory human resources capacity and supply chain D process capacity quality supply chain and inventory LO 1 2 Topic Operations Decisions Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback The five decision areas are process quality capacity inventory and supply chain 15 Which of the following does NOT come under the process category of the operations decision framework A Layout of the facility B Job design C The type of