,Operations and Supply Chain Management: The Core, 5e (Jacobs)
Chapter 1 Operations and Supply Chain Management
1) Efficiency means doing the right things to create the most value for the company.
Answer: FALSE
Explanation: Efficiency means doing something at the lowest possible cost.
Difficulty: 1 Easy
Topic: Efficiency, Effectiveness, and Value
Learning Objective: 01-02 Evaluate the efficiency of the firm.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) Effectiveness means doing the right things to create the most value for the company.
Answer: TRUE
Explanation: Effectiveness means doing the right things to create the most value for the
company.
Difficulty: 1 Easy
Topic: Efficiency, Effectiveness, and Value
Learning Objective: 01-02 Evaluate the efficiency of the firm.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
3) 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.
Answer: TRUE
Explanation: Efficiency means doing something at the lowest possible cost. Effectiveness means
doing the right things to create the most value. The doctor performed the surgery without error.
Because the patient died, no value was created.
Difficulty: 2 Medium
Topic: Efficiency, Effectiveness, and Value
Learning Objective: 01-02 Evaluate the efficiency of the firm.
Bloom's: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
,4) A worker can be efficient without being effective.
Answer: TRUE
Explanation: Efficiency means doing something at the lowest possible cost. Effectiveness means
doing the right things to create the most value. These are different things.
Difficulty: 2 Medium
Topic: Efficiency, Effectiveness, and Value
Learning Objective: 01-02 Evaluate the efficiency of the firm.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
5) A process can be effective without being efficient.
Answer: TRUE
Explanation: Often, maximizing effectiveness and efficiency at the same time creates conflict
between the two goals. "Being efficient" at the customer service counter at a local store or bank
means using the smallest number of clerks possible at the counter. Being effective, though,
means minimizing the amount of time customers need to wait in line.
Difficulty: 2 Medium
Topic: Efficiency, Effectiveness, and Value
Learning Objective: 01-02 Evaluate the efficiency of the firm.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
6) Operations and supply chain management is defined as the design, operation, and
improvement of the systems that create and deliver the firm's primary products and services.
Answer: TRUE
Explanation: Operations and supply chain management is defined as the design, operation, and
improvement of the systems that create and deliver the firm's primary products and services.
Difficulty: 1 Easy
Topic: What is Operations and Supply Chain Management?
Learning Objective: 01-01 Identify the elements of operations and supply chain management
(OSCM).
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
, 7) The term "value" refers to the relationship between quality and the price paid by the
consumer.
Answer: TRUE
Explanation: Related to efficiency and effectiveness is the concept of value, which can be
metaphorically defined as quality divided by price.
Difficulty: 1 Easy
Topic: Efficiency, Effectiveness, and Value
Learning Objective: 01-02 Evaluate the efficiency of the firm.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
8) Attempting to balance the desire to efficiently use resources while providing a highly effective
service may create conflict between the two goals.
Answer: TRUE
Explanation: Often maximizing effectiveness and efficiency at the same time creates conflict
between the two goals.
Difficulty: 1 Easy
Topic: Efficiency, Effectiveness, and Value
Learning Objective: 01-02 Evaluate the efficiency of the firm.
Bloom's: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) Central to the concept of operations strategy are the concepts of operations focus and trade-
offs.
Answer: TRUE
Explanation: Central to their thinking was the notion of factory focus and manufacturing trade-
offs. Because a factory cannot excel on all performance measures, its management must devise a
focused strategy, (to perform) a limited set of tasks extremely well. This requires trade-offs.
Difficulty: 1 Easy
Topic: Historical Development of Operations and Supply Chain Management
Learning Objective: 01-04 Recognize the major concepts that define the operations and supply
chain management field.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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