Operations Management Study Set 5

Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nations.

Service typically involves a much higher degree of customer contact than manufacturing.

Goods-producing organizations are not involved in service activities.

Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used.

In for-profit organizations, the value of outputs is measured by the prices customers are willing to pay for goods or services.

Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials.

Service operations require additional inventory because of the unpredictability of consumer demand.

People who work in the field of operations should have skills that include both knowledge and people skills.

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

The word "technology" is used only to refer to "information technology."

"Value added" by definition is always a positive number since "added" implies increases.

Most people encounter operations only in profit-making organizations.

A systems approach emphasizes interrelationships among subsystems, but its main theme is that the whole is greater than the sum of its individual parts.

Specialized machinery or equipment is a common way of offering increased customization in manufacturing or services without taking on additional labor costs.

The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities.

The greater the degree of customer involvement, the more challenging the design and management of operations.

The use of models will guarantee the best possible decisions.

Assembly lines improved productivity by using interchangeable parts and craft production.

Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services.

Service often requires relatively greater labor content when compared to manufacturing.