Chapter 1 - Core Global SC - BMT870

Efficiency means doing the right things to create the most value for the company.

• true
• false

Effectiveness means doing the right things to create the most value for the company.

• true
• false

A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective.

• true
• false

A process can be effective without being efficient.

• true
• false

Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between the two goals.

• true
• false

One reason for studying operations and supply chain management (OSCM) is which of the following?

• OSCM is essential for understanding organizational behavior
• Most business graduates do OSCM work regardless of their job title
• All managers should understand the basic principles that guide the design of transformation processes.
• OSCM is a required course in all business degree programs
• OSCM is the most rigorous business discipline

Which of the following are defined as core goods?

• Chemicals
• Airlines
• Data storage systems
• Hotels
• None of these

Managing customer touch points becomes a concern under current issues in OCSM when

• complaints arise about shaking hands with customers in cultures that is frowned upon.
• firms striving to become superefficient begin to scrimp on staffing and training customer support personnel.
• a firm has a workforce trained in specifically diverse situations and the correct level of service may be hard to discern.
• firms market global products.
• senior executives fail to recognize the contribution OCSM can make to their success.

All other things remaining the same, if the revenue or sales decreases, asset turnover ratio will

• Decrease
• Increase
• Stay the same
• Will decrease, but the amount of change will depend on the profit margin
• Decrease and Will decrease, but the amount of change will depend on the profit margin