INCORRECT

 Outputs that are exclusively tangible are not pure products.

 Operations management does not designs, operates, and improves productive systems.
 STATEMENT2:  Outputs that are exclusively intangible are pure products.
 The human resources function provides the information to help economic decision-
making and manages the financial resources of the organization.
 A process is not an arrangement of resources that produce some mixture of products and
services.
 Products are usually intangible.
 Support functions include Marketing function.
 The effectiveness of the whole operation can be improved by treating external customers with the
same degree of care as internal customers.
 STATEMENT2:  Services are usually tangible
  Products are usually intangible
 STATEMENT2:  Processes are not the building blocks of all operations.
 The most obvious difference of products and services is not in their respective tangibility
 STATEMENT2:  The accounting and finance function recruits and develops the
organization’s staff as well as looking after their welfare.
  A process is not an arrangement of resources that produce some mixture of products and
services.
 Technical function is not an example of support function.
 Typical process design objectives Less disruption , confusion and rescheduling within the
process.
 STATEMENT2:  Support functions include operations function
 benefits of good process design include Minimum throughput time
 STATEMENT2:  Processes are not the building blocks of all operations.
 Good design does not satisfies customers.
 Factors affecting product design does not include customer involvement.
 Professional services does not include management consultants.
 Research is the attempt to try to utilize and operationalize the ideas that come from
development.
 Professional services tend to be equipment-based  rather than people-based.
STATEMENT 2: All concepts which are generated will necessarily be capable of further
development into products and services.
  In project processes each product has to share the operation’s resources with many others.
STATEMENT 2: Car rental companies are example of Mass services.
 An effective design process increases the time required to design a new product or
service.
 Development usually means attempting to develop new knowledge and ideas in order to solve a
particular problem or to grasp an opportunity.
STATEMENT 2: Product design defines a service’s characteristics such as physical
elements, aesthetic & psychological benefits.
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STATEMENT 3: Service design is the process of deciding on the unique characteristics
and features of the company’s product.
 Jobbing processes are those which deal with discrete, usually highly customized products.
STATEMENT 3: Continuous processes usually operate for shorter periods of time.
 Shipbuilding is an example of jobbing processes.
STATEMENT 3: Product design is low risk concept as it involves commitment of capital
and man-power.
 Some benefits of good process design is high in-process inventory.

STATEMENT 3: Some benefits of good process design is high cost/ slow product and
service change
  Costly designs can result in underpriced products that lose market share.

STATEMENT 2: An effective design process does not minimizes the revisions necessary
to make a design workable.
 Achieving quality conformance do not depend on materials used
 Products and services are designed with intentional differences in quality to meet the same  wants
and needs of individual consumers. 

 II. As competition increased, profit margins have increased.

 Service quality is more directly related to time and the interaction between employees
and customer.

 II. Dimension of service quality includes do not include safety.

 Consistency refers to the service performed right every time.
 Completeness tells how long a customer should wait for a particular service and if it is completed
in time.
 Internal failure cost can be particularly damaging because customer faith and loyalty can be
difficult to regain
 The purpose of TQM is to provide a quality product and/or service to customers which will, in
turn, decrease productivity and increase cost
 The decreased complexity of the product means that every employee has to give his best if quality
is to be maintained.

 Prevention cost include the cost of product testing.

 American National Standards Institute and the American Society for Quality Control
defines quality as a degree or level of excellence.

 Statement 2: Oxford American Dictionary defines quality as the ability of features and
characteristics of a product or service that bears on its ability to satisfy given needs

 Accounting and finance function is not an example of support function.
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 III. Dimension of quality primarily for manufactured product do not include consistency.

  The final determination of quality is fitness for use which is the customer’s view of
quality.

 III. The rapid growth of technology and opening of new fields have created a great
demand for workers with specialized knowledge.

 Quality is an endless journey.

 III. Total Quality management is an art of managing the whole to achieve excellence.

 One type of internal failure cost is rework which is the cost of correcting the defective
items.

 Quality failure cost are the cost consequences of poor quality.

 III. Quality control cost are costs incurred in the hope of preventing internal and external
failure costs.


  The earlier defects are found, the less costly they are to correct.

 III. External failure cost tend to be particularly high in service organization.

 Product or service price is an important consideration from the customer’s perspective of

product quality.

 II. Achieving quality of conformance at an acceptable cost is an important consideration

from the producer’s perspective.

 III. Product cost is also an important design specification.

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 Responsiveness is how well the company reacts to unusual situations
 Total Quality Management is based on the following principle; Quality cannot be inspected in a
product, so make it right the first time, Quality should be customer focused and evaluated using
customer-based standards, The organization should strive for continuous improvements.
  The basic operating characteristic of a product is performance .

 Employees are key personnel in achieving conformance to specifications

 Statement 2: Managers  are key personnel in achieving conformance to specifications



 Quality conformance means quality during production focuses on making sure that the
product meets the specifications required by the design.

 II. Careless supervision will not meet design specification


  Involvement of customer in product design and testing can provide insight into the
direction of the project.
 A successful product design is a combination factors as follows: customer Involvement, External
Factors, Prototyping and testing
 STATEMENT 2: The ideas for new product or service concepts can come from sources
outside the organization.
 The overall purpose of process design is to meet the needs of customers through achieving
appropriate levels of quality, speed, dependability, flexibility and cost
 Factors affecting product design include Raw material.
 Product design should enable effective production of product through available
production methods.
 An effective design process ensures that customer requirements are met in the simplest and least
costly manner
STATEMENT 3: A good product design should enable product to be differentiate among
its competition.
 Evaluation in design means assessing the worth or value of each design option, so that a
choice can be made between them.
 Some benefits of good process design is short customer waiting time.
STATEMENT 2: It is important to understand that processes should at least be examined
in outline well before any product or service design is finalized.
 Process types are the general approaches to designing and managing processes.
STATEMENT 3: The whole point of process design is to make sure that the performance
of the process is appropriate for whatever it is trying to achieve.
 Designers need to be selective as to which concepts they progress to the next design stage.
 Outputs that are exclusively tangible are pure products.
 Operations management is about how organizations produce goods and services. 
 Services are usually intangible
 STATEMENT2: Operations management is the activity of managing the resources which
produce and deliver products and services.
 Operations management used, not just machines but also people.
 STATEMENT2:  Outputs that are exclusively intangible are pure services.
 Outputs that are exclusively tangible are not pure services.
 To design is to conceive the looks, arrangement, and workings of something before it is
created.

STATEMENT 2: Design is the process of satisfying people’s requirements through the
shaping or configuring products, services, and processes.

STATEMENT 3: Poor designs may not meet customer needs or may be so difficult to
make that quality suffers

 STATEMENT2:  Outputs that are exclusively intangible are pure services.

 Processes form an internal network within an operation.
 Operations management uses machines to efficiently assemble products that satisfy
current customer demands.

 STATEMENT2:  The most obvious difference of products and services is in their
respective tangibility.

 Technical function is an example of support function.
  Value chain is a series of activities from supplier to customer that add value to a product
or service . 

 STATEMENT2:  The input-transformation-output process is a characteristic of a wide
variety of operations systems.
 Prominence brings customers to an organization.

 STATEMENT2:  Ability of the organization tells who they are
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 Working effectively with the other parts of the organization is one of the most important
responsibilities of operations management
  ‘Operations’ as an activity, meaning the management of the processes within any of the
organization’s functions.

 STATEMENT2:  ‘Operations’ as a function, meaning the part of the organization which
produces the products and services for the organization’s external customers.
 Support functions  include Information System function.