2022-2023

Spring Semester

POM- SECTION 01

Assistant lecturer: Abdullah Gazia

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 Chapter One
Introduction to Operations
Management
 TRUE / FALSE QUESTIONS
1. Operations managers are responsible for assessing consumer wants and needs
and selling and promoting the organization's goods or services.
Answer: FALSE
2. Often, the collective success or failure of companies' operations functions will
impact the ability of a nation to compete with other nations.
Answer: TRUE
3. Companies are either producing goods or delivering services. This means that
only one of the two types of operations management strategies are used.
Answer: FALSE
4. Operations, marketing, and finance function independently of each other in
most organizations.
Answer: FALSE

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 TRUE / FALSE QUESTIONS
5. Goods producing organizations are not involved in service activities
Answer: FALSE
6. Service operations require additional inventory because of the unpredictability
of consumer demand.
Answer: FALSE
7. People who work in the field of operations should have skills that include
both knowledge and people skills.
Answer: TRUE
8. ‘Value added' by definition is always a positive number since 'added' implies
increases.
Answer: FALSE

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 TRUE / FALSE QUESTIONS
9. Service often requires greater labor content, whereas manufacturing is more capital
intensive.
Answer: TRUE
10. Measurement of productivity in service is more straightforward than in
manufacturing since it is not necessary to take into account the cost of materials.
Answer: FALSE
11.Service involves a much higher degree of customer contact than manufacturing.
Answer: TRUE
12. A modern firm has two supply chain considerations – external links with suppliers
and customers, and an internal network of flows to and between the operations function
itself.
Answer: TRUE

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MULTIPLE CHOICE QUESTIONS
13. A 'product package' consists of:
A. the exterior wrapping
B. the shipping container
C. a combination of goods and services
D. goods if a manufacturing organization
E. customer relations if a service organization

ANSWER: C

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MULTIPLE CHOICE QUESTIONS
14. Business organizations consist of three
major functions which, ideally:
A. support one another
B. are mutually exclusive
C. exist independently of each other
D. function independently of each other
E. do not interface with each other

ANSWER: A

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 MULTIPLE CHOICE QUESTIONS
15. Which of the following is not a type of
operations?
A. goods production
B. storage/transportation
C. entertainment
D. communication
E. all the above involve operations

ANSWER: E

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 MULTIPLE CHOICE QUESTIONS
16. Measurements taken at various points in the
transformation process for control purposes are
called:
A. plans
B. directions
C. controls
D. feedback
E. budgets
ANSWER: D
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 MULTIPLE CHOICE QUESTIONS
17. Budgeting, analysis of investment proposals, and provision
of funds are activities associated with the _______ function.
A. operation
B. marketing
C. purchasing
D. finance
E. internal audit
ANSWER: D

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 MULTIPLE CHOICE QUESTIONS
18. Which one of the following would not generally be
classified under the heading of transformation?
A. assembling
B. teaching
C. staffing
D. farming
E. consulting
ANSWER: C

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 MULTIPLE CHOICE QUESTIONS
19. The responsibilities of the operations manager
are:
A. planning, organizing, staffing, procuring, and reviewing
B. planning, organizing, staffing, directing, and controlling
C. forecasting, designing, planning, organizing, and controlling
D. forecasting, designing, operating, procuring, and reviewing
E. designing and operating
ANSWER: B

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 MULTIPLE CHOICE QUESTIONS
20. Which is not a significant difference between
manufacturing and service operations?
A. cost per unit
B. uniformity of output
C. labor content of jobs
D. customer contact
E. measurement of productivity
ANSWER: A

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 MULTIPLE CHOICE QUESTIONS
21. Which of the following is not a characteristic of
service operations?
A. intangible output
B. high customer contact
C. high labor content
D. easy measurement of productivity
E. low uniformity of output
ANSWER: D

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 MULTIPLE CHOICE QUESTIONS
22. The process of comparing outputs to previously established
standards to determine if corrective action is needed is called:
A. planning
B. directing
C. controlling
D. budgeting
E. disciplining
ANSWER: C

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 MULTIPLE CHOICE QUESTIONS
23. Which of the following is an example of a supporting
process?
A. marketing
B. purchasing
C. strategy
D. sales
E. information technology
ANSWER: E

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 MULTIPLE CHOICE QUESTIONS
24.Which of the following is NOT one of the processes included in operations manage
ment?
A. Design
B. Finance
C. Produce
D. Deliver
ANSWER: B

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 MULTIPLE CHOICE QUESTIONS
25. A supply chain is a global network of organizations and activities involved in:
A. Producing, buying, servicing, and disposing of goods and services.
B. Designing, transforming, consuming, and disposing of goods and services
C. Financing, producing, and marketing of goods and services.
D. Designing, financing, selling, and disposing of goods and services
ANSWER: B

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 MULTIPLE CHOICE QUESTIONS
26. Operations managers answer questions of what, how, when, where, and who by
defining both the ___________ and _____________ aspects of the operations
management system.
A. Financing and capacity
B. Marketing and delivery
C. Structural and infrastructural
D. Production and accounting

ANSWER: C

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 MULTIPLE CHOICE QUESTIONS
27. Which of the following functions would not have to think about processes?
A.Logistics managements .
B.Production management.
C. Supply management.
D. Accounting.
E. All of the above have to think about processes
ANSWER: E

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 MULTIPLE CHOICE QUESTIONS
28. Which of the following statement are reason why operations management is
important?
A.Efficient and productive operation drive the economic well-being of nations.
B.Operations management is responsible for much of the value created by organizations.
C. Operations management is key source of competitive differentiations among firms.
D.All of these are reasons why are operation management is important.
ANSWER: D

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 MULTIPLE CHOICE QUESTIONS
29. A process is?
A.A set of planned steps used to achieve an objective.
B.A system of activities that transform inputs into outputs.
C.A system of decisions.
D.A combined effort by people who wants to get something done.
ANSWER: B

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 MULTIPLE CHOICE QUESTIONS
30. While there is overlap between operations management and supply chain
management the two are different in that?
A.Operation management focuses on production, supply chain focuses on supply and
logistics.
B.Operation management focuses on tangible goods, supply chain focuses on services.
C.Operations management focuses on process, supply chain management focuses on
relationships and flows.
D.All of theses.
ANSWER: C

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 MULTIPLE CHOICE QUESTIONS
31. Physical goods can be differentiated from services in the operations management
process by?
A. Longer lead times and they can be inventoried.
B. shorter lead times and they can be inventoried.
C.Operations management focuses on process, supply chain management focuses on
More labor intensive and longer lead times and flows.
D. More expensive and easier to control.
ANSWER: A

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 MULTIPLE CHOICE QUESTIONS
32. there are three categories of business processes
A. Upper-management processes.
B. Operational processes.
C.Supporting processes.
D. All of theses
ANSWER: D

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ESSAY QUESTIONS
Draw TheTransformationProcess graph and give example for the process

Ex: 1- input: raw material(water,metals,wood),human(physical labor, intellectual labor) etc

2-Transformation: processes (cutting,transporation,mixing,packing,copying,analyzing,developing,etc)
3-Value added:Thedifference between the cost of inputs and the value or price of outputs
4-Output:clothing,tvs,houses,automobiles,computers,etc
Then as a measurement for the processes
5-Feedback= measuring performance at various points in the transformation process.
6-Control= The comparison of performance against previously established standards to determine if corrective action is needed

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ESSAY QUESTIONS
Compare between goods and services.
Goods : Are physical items produced by business organizations
Services: Are activities that provide some combination of time, location, form, and psychological value.

Point of comparison Goods Services

1. Output Tangible Intangible
2.Degree of customer Low degree High degree
contact
3.Labor content of jobs. Lower labor content than Most services have higher
services labor content than goods
4.Uniformity of inputs High uniformity of inputs High variability of inputs
5.Inventory Most goods can be Services cannot be
inventoried inventoried
6.Quality control Defects can be detected Difficult to correct problems
before delivery before delivery

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