Question 1

Operations management gathers materials and resources to transform them into products and services.

Accepted Answer

Operations management involves the process of acquiring inputs such as materials, labor, and machinery, and transforming them into goods and services that meet customer demand.

Question 2

As a functional area of a business, operations is concerned with delivering products and services to the customer.

Accepted Answer

False

Question 3

Operations managers are in charge of managing inventory, suppliers, and product and service quality.

Accepted Answer

This is true. Operations managers are responsible for overseeing the production and delivery of goods or services and are responsible for managing inventory, suppliers, and ensuring quality control.

Question 4

Operations management only ensures that a business is very productive.

Accepted Answer

While operations management does strive to increase productivity, it also focuses on many other aspects of running a business, such as quality control, supply chain management, and customer satisfaction.

Question 5

Operations drive revenues only.

Accepted Answer

Operations can also impact costs, customer satisfaction, and brand reputation, which can all affect revenue generation.

Question 6

Operations affect and influence every aspect of the organizational structure.

Accepted Answer

Operations involve the coordination and management of resources, processes, and systems to achieve organizational goals. As such, operations can impact and shape the structure, culture, and strategies of the organization. Operations affect areas such as supply chain management, production, distribution, product design, quality control, and customer service, which all play a role in the overall success of the organization.

Question 7

Functional strategies are not executed via operational practices.

Accepted Answer

Functional strategies are executed via operational practices. Operational practices are the actions and activities necessary to implement a functional strategy. Therefore, functional strategies are closely intertwined with operational practices.

Question 8

Operational strategies should be aligned with the business-level strategies for maximum efficiency.

Accepted Answer

Operational strategies are the means to achieve the business-level strategies. Therefore, for maximum efficiency, operational strategies should be aligned with the business-level strategies.

Question 9

Operations managers are lower-level managers.

Accepted Answer

Operations managers can be mid-level or even top-level managers depending on the size and structure of the organization.

Question 10

Key performance indicators (KPIs) help in business decision making.

Accepted Answer

KPIs provide measurable and quantitative data that allows businesses to evaluate their performance and make informed decisions based on the results.

Question 11

Operational key performance indicators (KPIs) provide only an overview of operations.

Accepted Answer

Operational KPIs not only provide an overview of operations but also measure the efficiency and effectiveness of those operations, helping organizations to monitor, analyze, and improve their processes.

Question 12

Productivity is measured as the value of inputs relative to the value of outputs.

Accepted Answer

Productivity is measured as the value of outputs relative to the value of inputs.

Question 13

There are only two types of productivity: single-factor and multi-factor.

Accepted Answer

There are actually three types of productivity: single-factor, multi-factor, and total factor productivity.

Question 14

The value of the output relative to the value of the input is measured by productivity.

Accepted Answer

The definition of productivity is the ratio of output (goods and services) to inputs (such as labor and capital). Therefore, productivity is a measure of the value of the output relative to the value of the input.

Question 15

Productivity metrics can be manipulated in the short run by running a short-staffed operation for instance.

Accepted Answer

Short-staffing can lead to temporary improvements in certain productivity metrics, such as output per employee, but it can also lead to negative consequences in the long run, such as increased errors, decreased quality, and burnout among employees. In the end, true productivity encompasses many factors beyond a simple output-to-labor ratio, and simply manipulating staffing levels is not a sustainable or effective strategy for improving productivity.

Question 16

Comparisons of productivity using only labor hours may be misleading.

Accepted Answer

Productivity can also be affected by factors such as technology, skill level, and resources used. Focusing only on labor hours does not provide a complete picture of productivity.

Question 17

Only productivity and quality are important aspects of business performance.

Accepted Answer

While productivity and quality are important aspects of business performance, they are not the only ones. Other factors such as customer satisfaction, financial performance, innovation, and employee engagement also play a critical role in overall business success.

Question 18

Every business should be overly focused on efficiency and cost control.

Accepted Answer

While efficiency and cost control are important, businesses also need to balance these with innovation, customer satisfaction, and long-term strategic goals. Overemphasis on efficiency and cost control can stifle growth and innovation.

Question 19

Supply chain management (SCM) is a current trend in operations management.

Accepted Answer

SCM is a current trend in operations management as businesses aim to efficiently manage the flow of goods, services, and information from the point of origin to the point of consumption.

Question 20

Supply chain design today also needs to satisfy other criteria such as ethics and sustainability.

Accepted Answer

With increasing concerns about environmental impact and ethical sourcing, supply chain design must account for these considerations in addition to traditional factors such as cost and efficiency. Companies are under pressure to ensure that their supply chains are sustainable, socially responsible, and environmentally friendly.

Quiz 1: Operations Management and You