Operations and Production Management MGMT 405 Answer set 1

MGMT 405 Operations and Production Management

Answer set 1

(Reference chapters 1 William J. Stevenson-2007, ninth edition)

Discussion Questions
1. What do you understand by the term Operations Management?

2. Identify the three major functional areas of business organizations and

briefly describe how they interrelate.

3. Describe the nature of operations function.

4. List five important differences between goods production

(Manufacturing) and service operation.

5. Briefly discuss each of these terms related to the historical evolution

of operations management?
a. Industrial Revolution
b. Science management
c. Interchangeable parts
d. Division of Labor

6. What are the main differences between manufacturing and services

sectors? Use examples to justify your answer.

7. Can you think of a business that does not have operation

management?

8. Describe each of these systems: craft production, mass production,

and lean production?

2010/11, Sami Fethi, EMU, All Right Reserved, Stevenson, Mcgraw-Hill, 2007, 9th. Ed. 1
Operations and Production Management MGMT 405 Answer set 1

Multiple Choice Questions

Choose the one alternative that best completes the statement or answers the question.
1) Production/Operations Management is
A) responsible for producing goods
B) responsible for providing services
C) system that create goods or services
D) often referred to as the core of scientific management

2) Operations Management does not affect

A) The collective success or failure of companies POM

B) companies financial resources
C) Nations ability to compete internationally
D) Companies ability to compete

3) Which of the following part indicates the three Basic Functions?

A) Finance, marketing and management

B) Finance, human resources and management
C) Marketing, operations and finance
D) Operations, finance and scientific management

4) The steps of the conversion of inputs into outputs are:

A) Input, process, transformation
B) Labor, control, goods
C) capital, land, service
D) Input, conversion process, output

5) The operations function involves __________

A) The transformation process of inputs into outputs
B) Feedback control
C) Value added process
D) Only goods process

6) Which of the following is not one of the input concepts?

A) Labor
B) Information
C) Services
D) Legal constraints

7) In profit organization, value-added of output __________

2010/11, Sami Fethi, EMU, All Right Reserved, Stevenson, Mcgraw-Hill, 2007, 9th. Ed. 2
Operations and Production Management MGMT 405 Answer set 1

A) is measured by prices that customers are willing to pay for only those goods
B) is measured by prices that customers are willing to pay for those goods and services.
C) is their value to society.
D) none of the above

8) Which of the following shows that it is the roots of the Industrial Revolution?
A) Egyptian pyramids
B) Ancient Roads
C) Ancient aqueduct
D) The great wall.

9) The steam engine and advanced the use of mecanical power to increase productivity
indicate__________

A) The concepts of standardised parts and interchangeable parts.

B) The handicraft era
C) The Industrial revolution era
D) The advantages of the division of labor

10) Lean production indicates__________

A) efficiency
B) quantity
C) The Industrial revolution era
D) The Industrial globalization era

2010/11, Sami Fethi, EMU, All Right Reserved, Stevenson, Mcgraw-Hill, 2007, 9th. Ed. 3