CH 01

Chapter 1 Introduction to Operations
Chapter 1
Introduction to Operations Management
True/False
1. Operations managers, marketing managers, and financial managers have much in common, and the
decisions they make are very similar.
ANSWER F
2. An entry-level position in the POM field would be a job such as plant manager.
ANSWER F
3. POM today is an interesting blend of time-tested practices combined with a search for new ways to
manage production systems.
ANSWER T
4. Production systems prior to the 1700s are often referred to as the cottage system.
ANSWER T
5. Adam Smith’s THE WEALTH OF NATIONS preached the benefits of the division of labor.
ANSWER T
6. Eli Whitney developed the concept of interchangeable parts.
ANSWER T
7. The post-Civil War period witnessed the beginnings of modern forms of capital that separated
capitalist from employer.
ANSWER T
8. Frederick Taylor is known as the father of industrial engineering, as well as the father of scientific
management.
ANSWER T
9. Taylor’s shop system was directed mainly at the shop-floor level of organizations.
ANSWER T
10. The Hawthorne Studies were the first time that it was recognized that psychological and sociological
factors affected production as well as motivation and attitude.
ANSWER T
1- 1
Test Bank, OPERATIONS MANAGEMENT, 9e
11. Linear programming and PERT/CPM are techniques that are most often thought of as being from the
scientific management era.
ANSWER F
12. Less than one-half the U.S. work force is employed in services.
ANSWER F
13. A country’s borders offer the best protection from global competition.
ANSWER F
14. To succeed in global competition, companies must make a commitment to customer responsiveness
and continuous improvement.
ANSWER T
15. The traditional ways of studying POM include as a production system, as an organization function,
and as a decision-making activity.
ANSWER T
16. Inputs to a production system that directly support the production of goods and services are called
external inputs.
ANSWER F
17. The primary function of the organization’s production system is to provide manufacturing capacity.
ANSWER F
18. Tangible goods, as direct outputs of the production system, are the services a company provides.
ANSWER F
19. Where the conversion process is carried out in a company does not vary greatly among organizations.
ANSWER F
20. In general, the term “operations” tends to be used in manufacturing companies and the term
“production” in service companies.
ANSWER F
21. Strategic decisions in POM concern the planning of production to meet customers’ demands for
products and services.
ANSWER F
1-2
22. The human relations movement began at the Midvale Steel Company in Pennsylvania.
ANSWER F
23. Control decisions concern operations strategies and the long-run game plan for the firm.
ANSWER F
24. Deciding when new factories are needed or where they should be built are examples of operating
decisions.
ANSWER F
25. Deciding what the quality control acceptance criteria for a product should be is an example of a
control decision.
ANSWER T
Multiple Choice
1. Which one of the following is NOT considered a primary business function:

a. finance
b. marketing
c. management
d. production
ANSWER c
2. Which of the following is NOT a key reason given by operations managers for liking their work:
a. interesting and challenging work
b. opportunities for advancement
c. high salaries
d. opportunity to work with high-tech equipment
ANSWER d
3. Which of the following is an entry-level job in the POM field:

a. purchasing buyer
b. inventory analyst
c. quality specialist
d. All of the alternatives are correct.
ANSWER d
4. The industrial revolution involved two principal elements:

a. personnel training and supervision training
b. labor unions and governmental regulation
1- 3
c. machine power and the factory system

d. craftsmanship and the cottage system
ANSWER c
5. What was the first great industry in the United States?

a. railroads
b. textiles
c. newspapers
d. firearms
ANSWER b
6. The second great industry in the United States was:

a. railroads
b. textiles
c. automobiles
d. newspapers
ANSWER a
7. Which of the following events provided a large work force for rapidly developing industrial centers
after the Civil War:
a. the abolition of slave labor
b. the exodus of farm laborers to cities
c. the massive influx of immigrants
ANSWER d
8. Increased capital and production capacity, the expanding of the urban work force, new Western
markets, and an effective national transportation system were all developments that took place within
which era?
a. Post-World War II period
b. post-Civil War period
c. the human relations movement
d. the industrial revolution
ANSWER b
9. Who is known as the father of scientific management?

a. Henry Gantt
b. Frederick Taylor
c. Morris Cooke
d. Henry Ford
ANSWER b
10. Frederick Winslow Taylor’s shop system included all of the following steps EXCEPT:
a. production of products were broken up into small, specialized tasks that were assigned to
workers along the production lines
1-4
b. skill, strength, and learning ability were determined for each worker so that individuals could
be placed in jobs for which they were best suited
c. stopwatch studies were used to precisely set standard output per worker on each task
d. incentive pay systems were initiated to increase productivity and to relieve foremen of their
traditional responsibility of driving the workers
ANSWER a
11. The analysts who followed Taylor’s methods were finally known as:
a. efficiency experts
b. industrial engineers
c. mechanical engineers
d. management scientists
ANSWER b
12. The high-water mark of scientific management occurred at:

a. Hawthorne Works
b. General Electric
c. Ford Motor Company
d. Edison Electric
ANSWER c
13. The Ford Motor Company was the first organization to employ all the chief elements of scientific
management. All of the following are considered elements of scientific management EXCEPT:
a. standardized product designs
b. specialization of labor
c. mass production and interchangeable parts
d. None of the alternatives is correct; they all are elements
ANSWER d
14. The beginning of the human relations movement is linked to:

a. Peter Drucker
b. Taylor’s shop system
c. Abraham Maslow
d. the Hawthorne studies
ANSWER d
15. Chester Barnard, Abraham Maslow, Frederick Herzberg, and Elton Mayo are often described as:
a. efficiency experts
b. operations researchers
c. behavioralists or human relationists
d. management scientists
ANSWER c
16. The main focus of the human relations movement was:
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a. the Hawthorne studies

b. the ways in which to get the most work out of the workers
c. the emphasis on the fact that workers were human beings and should be treated with dignity
d. the emphasis upon productivity and efficiency
ANSWER c
17. Early operations research teams utilized:

a. a departmental approach
b. very little mathematics
c. engineering and computer science
d. many of the academic disciplines
ANSWER d
18. Operations research is used extensively in today’s firms. All of the following statements are true of
operations research EXCEPT:
a. operations research’s primary focus is optimization of manufacturing systems
b. computers are used extensively in operations research
c. operations research approaches problem solving and decision making from the total
system’s perspective
d. model building and mathematical manipulation provide the methodology that has
been key to operations research
ANSWER a
19. Operations research seeks mainly to:

a. use an intuitive, gut-feeling type of decision making process
b. provide scientific methodology that allows for extensive analysis before a decision is made
c. assist the decision making on large, complex problems with an approach that identifies the
optimal alternative
d. find quick solutions to urgent problems
ANSWER c
20. About how much of the U.S. Gross Domestic Product (GDP) originates in the service sector?
a. 1/4
b. 1/3
c. 1/2
d. 2/3
ANSWER d
21. Which area has most of the U.S. workers and is the largest contributor to the GDP?
a. government
b. manufacturing
c. services
d. military
ANSWER c
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22. Toward the goal of quickly developing innovative products, companies must use the best combination
of:
a. exceptional quality
b. fast and on time delivery
c. low prices and cost
ANSWER d
23. The outputs of a production system are monitored by the:

a. conversion subsystem
b. planning subsystem
c. control subsystem
d. operations system
ANSWER c
24. Inputs into a production system are classified into three general classes. These are:
a. market, technology, and capital
b. external, social, and legal
c. external, market, and primary resources
d. economic, capital, competition
ANSWER c
25. All of the following are external inputs to a production system EXCEPT:
a. personnel
b. legal/political
c. economic
d. technological
ANSWER a
26. The type of input to a production system that is informational in character with regards to
competition, product design, and customer desires is:
a. technological input
b. market input
c. social input
d. political input
ANSWER b
27. Indirect outputs of the production system include all of the following EXCEPT:
a. services
b. wages and salaries
c. technological advances
d. pollution
ANSWER a
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28. An operations manager has three general types of decisions that he/she must make. They are:
a. production decisions, management decisions and strategic decisions
b. operating decisions, management decisions and production decisions
c. strategic decisions, operating decisions and control decisions
d. production decisions, management decisions and control decisions
ANSWER c
29. Decisions that concern the day-to-day activities of workers, quality of products and services,
production and overhead costs, and maintenance of machines are known as:
a. operating decisions
b. control decisions
c. production decisions
d. management decisions
ANSWER b
30. Adam Smith is to THE WEALTH OF NATIONS as _________________ is to THE PRINCIPLES

OF SCIENTIFIC MANAGEMENT.
a. Henry Gantt
b. Frank Gilbreth
c. Henry Ford
d. None of the alternatives is correct.
ANSWER d
31. ____________ decisions involve decisions about planning production to meet demand.
a. Operating
b. Control
c. Strategic
d. Critical
ANSWER a
32. ___________ decisions have long-term significance for the organization.

a. Operating
b. Control
c. Strategic
d. Critical
ANSWER c
33. Which one doesn’t belong? Chester Barnard, Abraham Maslow, Frederick Taylor, Frederick Herzberg
a. Chester Barnard
b. Abraham Maslow
c. Frederick Taylor
d. Frederick Herzberg
ANSWER c
34. Which one doesn’t belong? Benchmarking, JIT, interchangeable parts, ISO standards
1-8
a. Benchmarking
b. JIT
c. interchangeable parts
d. ISO standards
ANSWER c
35. Which one doesn’t belong? Robotics, statistical process control, assembly lines, computer-assisted
design
a. robotics
b. statistical process control
c. assembly lines
d. computer-assisted design
ANSWER c
36. Deciding whether to develop a new product or not is an example of a(n) _______________ decision.
a. marketing
b. control
c. strategic
d. operating
ANSWER c
37. All of the following played a role in the development of scientific management EXCEPT:
a. Lillian Gilbreth
b. Henry Gantt
c. Abraham Maslow
d. Frederick Taylor
ANSWER c
Short Answer
1. Define POM.
ANSWER The management of an organization’s production system, which converts inputs into the
organization’s products and services.
2. Describe the responsibilities of the managers in the three primary business functions.
ANSWER
a. marketing—creating a demand for an organization’s products and services
b. finance—achieving the financial objects of the firm
c. production—managing the organization’s production system
3. What are three key reasons given by operations managers for liking their work?
ANSWER
a. interesting and challenging work
1- 9
b. opportunities for advancement

c. high salaries
4. What are some mid-career jobs in the POM field?
ANSWER
a. manufacturing manager
b. operations manager
c. plant manager
d. factory manager
e. production control manager
f. inventory manager
g. manager of production analysis
h. quality control manager
5. What are some entry-level jobs in the POM field?
ANSWER
a. production supervisor
b. purchasing buyer
c. inventory analyst
d. production controller
e. production analyst
f. quality specialist
6. What are the six historical milestones in POM?
ANSWER
a. the industrial revolution
b. the post-Civil War period
c. scientific management
d. human relations and behavioralism
e. operations research
f. the service revolution
7. What are the two principal elements associated with the “industrial revolution?”
ANSWER
a. the substitution of machine power for human and water power
b. the establishment of the factory system
8. List the four developments of the post-Civil War period
ANSWER
a. increased capital and production capacity
b. the expanded urban work force
c. new Western markets
d. an effective national transportation system
9. List the players and their parts in the scientific management era.
1 - 10
ANSWER
a. Frederick Winslow Taylor—scientific management principles, exception principle, time
study
b. Frank B. Gilbreth—motion study, methods, therbligs, construction contracting
c. Lillian M. Gilbreth—fatigue studies, human factor in work, employee selection and
training
d. Henry L. Gantt—Gantt charts, incentive pay systems, humanistic approach to labor,
training
e. Carl G. Barth—mathematical analysis, slide rule, feeds and speeds studies
f. Harrington Emerson—principles of efficiency, methods of control
g. Morris L. Cooke—scientific management applications to education and government
10. Briefly describe the five steps of Taylor’s shop system.
ANSWER
a. skill, strength, and learning ability determined for each worker
b. precisely set standard output per worker for each task using stopwatch studies
c. instruction cards, routing sequences, and material specifications used to coordinate and organize
the shop
d. supervision improved through careful selection and training
e. incentive pay systems initiated to increase efficiency
11. What are the chief elements of scientific management as applied at Ford Motor Company?
ANSWER
a. standardized product designs
b. mass production
c. low manufacturing costs
d. mechanized assembly lines
e. specialization of labor
f. interchangeable parts
12. What is the basic philosophy behind the human relations movement?
ANSWER
That workers were human beings and should be treated with dignity while on the job.
13. Describe the characteristics of operations research.
ANSWER
a. approaches problem solving and decision making from the total system’s perspective
b. does not necessarily use interdisciplinary teams, but it is interdisciplinary
c. does not experiment with the system itself but constructs a model of the system on which to
conduct experiments
d. model building and mathematical manipulation provide the methodology that has perhaps been
the key contribution
e. primary focus is on decision making
f. computers are used extensively
14. What is the purpose of operations research?
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ANSWER
To replace intuitive decision making for large complex problems
with an approach that identifies the optimal, or best, alternative
through analysis.
15. List the six major factors affecting POM today.
ANSWER
a. reality of global competition
b. U.S. quality, customer service, and cost challenges
c. rapid expansion of advanced production technology
d. continued growth of the U.S. service sector
e. scarcity of production resources
f. social responsibility issues
16. To succeed in global competition, what must companies do?
ANSWER
They must make a commitment to customer responsiveness and
continuous improvement toward the goal of quickly developing
innovative products that have the best combination of exceptional
quality, fast and on-time delivery, and low prices and costs.
17. What are the traditional approaches to studying POM?
ANSWER
a. as a production system
b. as an organization function
c. as a decision making activity
18. Describe the term “system.”
ANSWER
A system is a whole that cannot be taken apart without loss
of its essential characteristics, and hence it must be
studied as a whole. Now, instead of a whole in terms of its
parts, parts began to be explained in terms of the whole.
19. Describe the major components of a production system.
ANSWER
a. inputs—external, market, and primary resources
b. conversion subsystem—changes inputs into outputs; the heart of the production system
c. control subsystem—portion of outputs is monitored for feedback signals to provide corrective
action if required
d. outputs—direct and indirect
20. Describe the types of decisions made by operations managers.
ANSWER
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a. strategic decisions—concern operations strategies and the long-range game plan for the firm
b. operating decisions—concern all the issues about planning production to meet customers’
demands for products and services
c. control decisions—concern a variety of day-to-day activities in operations
21. Match the person and the idea or publication.

a. behavioralist 1. Russell Ackoff
b. interchangeable parts 2. James Watt
c. time and motion studies 3. Frederick Taylor
d. scientific management 4. Abraham Maslow
e. pioneer in systems theory 5. Eli Whitney
f. steam engine 6. Henry Gantt
g. Principles of Scientific Management 7. Elton Mayo
h. assembly lines 8. Adam Smith
i. The Wealth of Nations 9. Frank Gilbreth
j. Western Electric Company 10. Henry Ford
ANSWER 1.e; 2.f; 3.g; 4.a; 5.b; 6.d; 7.j; 8.i; 9.c; 10.h
22. Arrange the items “a” through “j” in chronological order, from the oldest to the most recent.
a. Hawthorne studies
b. The Wealth of Nations
c. Whitney’s interchangeable parts
d. Taylor’s scientific management
e. ISO standards
f. Ford’s assembly line
g. Watt’s steam engine
h. linear programming
i. cottage system
j. joint stock companies
ANSWER i, g, b, c, j, d, f, a, h, e
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Chapter 1 Introduction to Operations

6. Eli Whitney developed the concept of interchangeable parts.

1. Which one of the following is NOT considered a primary business function:

3. Which of the following is an entry-level job in the POM field:

4. The industrial revolution involved two principal elements:

c. machine power and the factory system

5. What was the first great industry in the United States?

6. The second great industry in the United States was:

9. Who is known as the father of scientific management?

12. The high-water mark of scientific management occurred at:

14. The beginning of the human relations movement is linked to:

16. The main focus of the human relations movement was:

a. the Hawthorne studies

17. Early operations research teams utilized:

19. Operations research seeks mainly to:

23. The outputs of a production system are monitored by the:

30. Adam Smith is to THE WEALTH OF NATIONS as _________________ is to THE PRINCIPLES

32. ___________ decisions have long-term significance for the organization.

b. opportunities for advancement

4. What are some mid-career jobs in the POM field?

5. What are some entry-level jobs in the POM field?

6. What are the six historical milestones in POM?

8. List the four developments of the post-Civil War period

10. Briefly describe the five steps of Taylor’s shop system.

13. Describe the characteristics of operations research.

14. What is the purpose of operations research?

15. List the six major factors affecting POM today.

16. To succeed in global competition, what must companies do?

17. What are the traditional approaches to studying POM?

18. Describe the term “system.”

19. Describe the major components of a production system.

20. Describe the types of decisions made by operations managers.

21. Match the person and the idea or publication.

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