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Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing cost and time.

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Measurement of productivity in service is more straightforward than in goods production due to the high degree of uniformity of inputs.

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Many operations management decisions can be described as trade-offs.

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Which is not a significant difference between manufacturing and service operations?


A) Cost per unit
B) Uniformity of output.
C) Labour content of jobs.
D) Amount of customer contact.
E) Measurement of productivity.

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Measuring process outputs at various points in order to compare outputs to previously established standards to determine if corrective action is needed is called:


A) planning and directing.
B) directing and conversion.
C) feedback and control.
D) controlling and leading.
E) leading and transformation.

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Which of the following developments related to the historical evolution of operations management is the oldest?


A) The human relations movement advocated by Mayo, Maslow, and Hertzberg.
B) The introduction of the moving assembly line by Henry Ford.
C) Scientific management principles espoused by Frederick Taylor.
D) The principle of division of labour documented in Adam Smith's book The Wealth of Nations.
E) The influence of Japanese management practices.

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Managing inventory levels is considered a planning/control operations decision area.

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Which of the following is not a major trend influencing the strategies of manufacturing organizations?


A) Globalization
B) The Internet and e-commerce
C) Introduction of mass production
D) Supply chain management
E) Technological advances

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Design decisions are usually strategic and long term,while planning decisions are tactical and medium term.

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As a service business,the operations management activities of an airline company have nothing in common with the operations management activities within a bicycle manufacturing company.

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Models are simplified representations of something and thus ignore important aspects of a situation.

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Value-added refers to:


A) the cost of inputs.
B) the price of outputs.
C) the difference between cost of inputs and what customers are willing to pay.
D) the extra profit obtained from increased productivity.
E) all of the choices are correct.

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The moving assembly line introduced by Henry Ford is an example of the development of mass production based on large volumes of standardized goods produced using low or semi-skilled workers and highly specialized equipment.

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

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Value-added refers to the cost of the inputs required to produce goods and services.

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Operations managers,who usually use quantitative approaches,have no responsibility to make ethical decisions.

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Tactical planning and control activities involve making decisions about all of the following EXCEPT:


A) location of facilities.
B) scheduling.
C) material requirements planning.
D) project management.
E) inventory management.

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Measurements taken at various points in the transformation process for control purposes are called:


A) plans.
B) directions.
C) controls.
D) feedback.
E) proposals.

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The operations function exists only in firms that are goods-oriented.

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The Pareto phenomenon is one of the most important and pervasive concepts that can be applied at all levels of management.

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