Chapter 01 Introduction to Operations
Management
True / False Questions
1. As a service business, the operations management activities of an airline companyanalysis
have nothing in common with the operations management activities within a bicycle
manufacturing company.
FALSE
2. Operations managers are responsible for managing activities and resources that produce
goods and/or provide services.
TRUE
3. Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing
cost and time.
TRUE
4. Operations, marketing, and finance function independently of each other in most
organizations.
FALSE
5. The operations function exists only in firms that are goods-oriented.
FALSE
6. Operations management pertains almost exclusively to the management of manufacturing
operations.
FALSE
7. Value-added refers to the cost of the inputs required to produce goods and services.
FALSE
8. As long as a product is ready in advance of when customers demand it, the timing of when
a product is manufactured does not influence the value-added.
FALSE
9. Storing an item earlier than the scheduled delivery date is an example of a value adding
activity.
FALSE
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