Chapter 1 Operations and Productivity
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.
Answer: TRUE
Diff: 1
Topic: Global company profile
Objective: LO1-1
2) Because Hard Rock Cafes are themed restaurants, operations managers focus their layout design efforts on attractiveness while paying little attention to efficiency.
Answer: FALSE
Diff: 1
Topic: Global company profile
Objective: no LO
3) All organizations, including service firms such as banks and hospitals, have a production function.
Answer: TRUE
Diff: 2
Topic: What is operations management?
Objective: LO1-1
4) Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.
Answer: TRUE
Diff: 1
Topic: What is operations management?
Objective: LO1-1
5) An example of a "hidden" production function is money transfers at banks.
Answer: TRUE
Diff: 2
Topic: What is operations management?
Objective: LO1-1
6) One reason to study operations management is to learn how people organize themselves for productive enterprise.
Answer: TRUE
Diff: 1
Topic: Why study OM?
Objective: LO1-1
7) The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function.
Answer: TRUE
Diff: 1
Topic: What operations managers do
Objective: LO1-1
8) "How much inventory of this item should we have?" is within the critical decision area of managing quality.
Answer: FALSE
Diff: 1
Topic: What operations managers do
Objective: LO1-1
9) In order to have a career in operations management, one must have a degree in statistics or quantitative methods.
Answer: FALSE
Diff: 1
Topic: What operations managers do
Objective: LO1-1
10) Henry Ford is known as the Father of