5.1 True or False Quiz

Operations management only applies to the secondary (manufacturing) sector.

• True

• False

Operations management is the business function that deals with planning, organizing, and controlling the different elements and stages of the production process.

• True

• False

Productivity is a measure of an organization’s efficiency in terms of how well operations are done within the organization.

• True

• False

Value-added is the term used to describe the difference between the cost of factor inputs and the value or price of outputs from the production process.

• True

• False

Operations management is an integral part of an organization’s strategic decision-making process.

• True

• False

Goods or services are produced based on an input-output model as part of a production process.

• True

• False

Every organization has an operations management function, including those in the tertiary and quaternary sectors.

• True

• False

Taking human factors into consideration when making strategic business decisions which may affect workers and the local community is known as social sustainability.

• True

• False

Economic sustainability means minimizing waste in the production process, creating cost savings through greater efficiency and cutting unnecessary costs.

• True

• False

Operations management does not directly affect a firm's marketing.

• True

• False