1. Some of the operations-related activities of Hard Rock Café include designing meals and analyzing
them for ingredient cost and labor requirements.
2. The production process at Hard Rock Café is limited to meal preparation and serving customers.
3. All organizations, including service firms such as banks and hospitals, have a production function.
4. Operations management is the set of activities that create value in the form of goods and services
by transforming inputs into outputs.
5. An example of a “hidden” production function is money transfers at banks.
6. One reason to study operations management is to learn how people organize themselves for
7. The operations manager performs the management activities of planning, organizing, staffing,
leading, and controlling of the OM function.
8. “How much inventory of this item should we have?” is within the critical decision area of
9. In order to have a career in operations management, one must have a degree in statistics or
10. Henry Ford is known as the Father of Scientific Management.
11. Shewhart’s contributions to operations management came during the Scientific Management Era.
12. Students wanting to pursue a career in operations management will find multidisciplinary
13. Customer interaction is often high for manufacturing processes, but low for services.
14. Productivity is more difficult to improve in the service sector.
15. Manufacturing now constitutes the largest economic sector in postindustrial societies.
16. In the past half-century, the number of people employed in manufacturing has more or less held
steady, but each manufacturing employee is manufacturing about 20 times as much.
17. A knowledge society is one that has migrated from work based on knowledge to one based on
18. Productivity is the total value of all inputs to the transformation process divided by the total value
of the outputs produced.
19. Measuring the impact of a capital acquisition on productivity is an example of multi-factor
20. Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives.