4B B)1D, 2A, 3C, 4B C)1A, 2B, 3D, 4C D)1B, 2C, 3D, 4A E)1C, 2A, 3B, 4D
8 INCORRECT
Which of the following is NOT an OM tactical issue? A)How many workers do we need? B)Where do we locate the facility or facilities? C)When should we have material delivered? D)Should we work overtime or put on a second shift?
9 CORRECT
Which of the following is NOT an example of the shift of power from producers to consumers? A)increasingly higher quality products B)a focus on shorter delivery times C)less emphasis on reducing labor and material costs D)better utilization of facilities
10 CORRECT
Higher productivity derived from efficient operations leads to A)more expensive goods and services B)lower quality goods and services C)higher discretionary incomes for consumers D)increased dependence on expensive labor
11 INCORRECT
Which of the following is consistent with contemporary operations management? A)limitation of expensive aluminum recycling efforts B)raw waste disposal into waterways in acceptable quantities C)restricting air pollutant production to areas where pollution is normal D)replanting of forest land to reduce erosion
12 CORRECT
Which of the following best describes the concept of the value chain? A)adding financial value to an organization through the acquisition of other firms B)the step-wise increases in product prices as raw materials are turned into goods/services C)the steps in manufacturing that add value to finished products D)all steps in the transformation process that add value even if
they don't come from manufacturing
The correct answer for each question is indicated by a
1 CORRECT
.
Corporate strategy refers to the overall strategy of the firm. A)True B)Fals e
2 CORRECT
Operations strategy can be divided into two major categories, structural elements and infrastructural elements. A)True B)Fals e
3 CORRECT
The four basic competitive priorities are cost, quality, delivery and flexibility. A)True B)Fals e
4 CORRECT
Service warranties are becoming more important as order winners. A)True B)Fals e
5 INCORRECT
Operations management divides decisions into three broad categories. They are: A)Strategic, operational and financial B)Personnel, financial and operational C)Strategic, tactical and operational planning and control D)Planning, tactical and control E)Planning, organizing and financial
6 INCORRECT
Which of the following has been added most recently to the four basic competitive priorities? A)Service B)Cost C)Quality D)Delivery E)Flexibility
7 INCORRECT
According to the authors, which of the following is becoming the newest competitive advantage? A)Service B)Delivery C)Cost D)Quality E)Environmental friendliness
8 INCORRECT
A market segmentation strategy refers to A)Selling to everyone in a particular geographic area B)Satisfying the needs of a particular market niche C)Offering products/services that differ significantly from the competition D)Offering a wide variety of products/services in a particular area
9 INCORRECT
If the perceived customer value is measured as the ratio of Total Benefits/Total Costs, a customer feels 'ripped off' if the ratio is A)<1 B)>1 C)=1
10 CORRECT
Davis and Meyer (Blur) indicate three factors that are changing the way we do business today. The factors are: A)Location, cheap labor, just-intime systems B)Connectivity, speed, and intangibility C)Cost, quality, and flexibility D)Financial capital, marketing, and transportation
11 INCORRECT
With respect to the Customer's Activity Cycle (CAC), a firm's position in the marketplace is strongest if it is involved in A)The pre-purchase activities B)The purchase activities C)The post-purchase activities D)All of these activities
12 CORRECT
A service that consists of specific functions that are part of the product itself is called a(n)
A)Embedded service B)Comprehensive service C)Integrated solution D)Distribution control
The correct answer for each question is indicated by a
1 INCORRECT
.
Ford's Model T car, nylon fabric, and Xerox copiers were examples of breakthrough products when they were introduced. A)True B)Fals e
2 INCORRECT
In designing for manufacturability, it is desirable to keep the number of individual parts to a minimum. A)True B)Fals e
3
CORRECT
A service-system design matrix helps in relating sales opportunity with production efficiency, as contact with the customer goes up, production efficiency goes down. A)True B)Fals e
4 CORRECT
In services, service production and consumption are often simultaneous. A)True B)Fals e
5 INCORRECT
A jail is given as an example of a: A)Facilities-based service business B)Field-based business C)Internal service business
6 INCORRECT
Which one of the following could best be run as an internal services system? A)A university billing office B)A dance studio C)A branch office of a professional employment agency D)A movie theater
7 INCORRECT
Which of the following types of processes will be used to produce gasoline and petroleum products? A)Job Shop B)Batch C)Assembly Line D)Continuous Processing E)Project
8 CORRECT
The product-process matrix illustrates that for firms operating above the diagonal, there is A)Greater flexibility, higher cost B)Less flexibility, lower cost C)Greater flexibility, lower cost D)Less flexibility, higher cost
9 CORRECT
Which of the following is a major reason for the significant increase in foreign competition? A)Advances in telecommunications B)A trend toward higher trade barriers C)Fewer numbers of trade organizations D)Increased tariffs on foreign goods
10 INCORRECT
Which of the following factors contributes to successful product design? A)Using engineers/designers exclusively in the design phase B)Eliminating prototype development as a part of the design phase C)Ignoring quality, cost, and delivery issues in the design phase D)Surprising the customer with extra features
11 INCORRECT
A new service with a high degree of content change and a high degree of delivery change is categorized as A)Breadth of offering B)Revolutionary C)Window dressing D)Channel development
12 INCORRECT
What is the correct order for the stages of the new service development process? 1. design 2. full launch 3. development 4. analysis A)1, 2, 3, 4 B)1, 4, 3, 2 C)4, 1, 3, 2 D)4, 3, 1, 2
The correct answer for each question is indicated by a
1 INCORRECT
.
The work breakdown structure is used to identify tasks to be performed in a project. A)True B)Fals e
2 INCORRECT
The two main components in project management are behavior of people and the technology of the method. A)True B)Fals e
3 CORRECT
Resources from one parallel activity can rarely be transferred to the other parallel activity. A)True B)Fals e
4 CORRECT
The Beta distribution is always the best distribution for estimating the distribution of activity times. A)True B)Fals e
5 INCORRECT
In CPM charts A)Squares designate events, arrows designate activities
B)Circles designate events, arrows designate activities C)Circles designate activities, arrows designate nodes D)Circles designate activities, arrows designate precedence
6 INCORRECT
The earliest expected completion date of the project is which of the following? A)27 B)19 C)17 D)15 E)12
7 INCORRECT
The variance for activity C is which of the following? A)4 B)2 C)1/3 D)1/6 E)1/9
8 CORRECT
The variance of the critical path is which of the following? A)1/9 B)1/3 C)2/3 D)1/6 E)4/9
9 INCORRECT
The EF for activity C is which of the following? A)4 B)13 C)15 D)17 E)27
10 INCORRECT
The activity slack for activity D is which of the following? A)0 B)4 C)12 D)13 E)17
11 INCORRECT
Which of the following is a major difference in managing projects as opposed to managing ongoing processes? A)Project teams are permanent B)Projects are typically managed with the organization's formal structure C)Projects require flexibility because they are not repeated D)Project tasks can always be perfectly defined
12 CORRECT
Which of the following would NOT be considered a crash cost? A)Overtime pay B)Vacation pay C)Special shipping costs D)Pay for extra labor
The correct answer for each question is indicated by a
1 CORRECT
.
Advances in technology are affecting every aspect of business, except operations management. A)True B)Fals e
2 CORRECT
To properly integrate technology into an organization, managers must recognize the capabilities and shortcomings of that technology. A)True B)Fals e
3 INCORRECT
The traditional tradeoffs between operations strategies are no longer valid due to improvements in technology. A)True B)Fals e
4 INCORRECT
Successful implementation of new technology never requires you to train your customers. A)True B)Fals e
5 INCORRECT
To properly integrate new technology into their organization, a firm should realize A)that there are no limitations on the usefulness of that technology B)that customer training in the use of the technology will typically be unnecessary
C)that customer 'fear of the unknown' is still a real issue D)that it will only work for tangible products
6 CORRECT
An operation where machine tools are changed automatically are known as A)a machine center B)computer integrated manufacturing C)a flexible manufacturing system D)computer-aided design
7 INCORRECT
Integration of all aspects of manufacturing through computers is known as A)using machine centers B)computer integrated manufacturing C)a flexible manufacturing system D)computer-aided design and manufacturing
8 CORRECT
A software system providing a common software infrastructure and database is called A)enterprise resource planning B)supply chain management C)new product development D)customer relationship management
9 INCORRECT
ERP is an outgrowth of A)MRP B)EDI C)JIT D)CRM
10 INCORRECT
One of the current technology trends in services is A)the growth of full-service operations B)the increased importance of location C)the shift away from time-dependent transactions D)decreases in disintermediation
11 INCORRECT
A key consideration for integrating new technology into services is A)the potential for slower service B)the lack of knowledge about customers associated with the new technology C)the inability to offer a wide variety of services D)the potential for labor cost reduction
12 INCORRECT
The most secure way of providing information to people within an organization is the use of which type of e-service network? A)internet B)intranet C)extranet D)EDI
The correct answer for each question is indicated by a
1 INCORRECT
.
Every set of activities represents a process that needs to be managed. A)True B)Fals e
2 INCORRECT
"If you can't measure it, you can't manage it." A)True B)Fals e
3 CORRECT
Competitive benchmarking involves comparing an organization's performance with that of its best competitors. A)True B)Fals e
4 CORRECT
Reengineering means literally starting from the beginning with a clean sheet of paper. A)True B)Fals e
5 CORRECT
Which of the following is NOT a characteristic of a reengineering process. A)Small incremental changes. B)Several jobs are combined into one. C)Workers make decisions. D)Work is performed where it makes most sense.
What is the sequence of steps used i n service blue printing?
6
INCORRECT
1. Isol Isolat ate e fail fail poin points ts 2. Esta Establ blis ish h a time time fenc fence e 3. Analyz Analyze e profi profita tabil bility ity 4. Iden Identi tify fy the the pro proce cess ss A)1-2-3-
4 B)4-1-23 C)2-4-13 D)3-2-14
7 INCORRECT
A business process is a logical set of tasks or activities that A)Are specific to the operations function B)Are specific to the marketing function C)Are interdependent with other processes D)Have exactly the same performance measures for any kind of process
8 INCORRECT
The degree of detail that is used in business process analysis is often referred to as A)Functional benchmarking B)Modularization C)Utilization D)Granulation
9 INCORRECT
Performance measures concerned with specific work processes that are virtually the same for all industries refer to A)Internal benchmarks B)Competitive benchmarks C)Functional benchmarks D)Generic benchmarks
10 INCORRECT
Agile manufacturing is most closely associated with A)Productivity B)Capacity C)Quality D)Speed E)Flexibility
11 INCORRECT
Relative productivity increases only if A)Your process outputs go up B)Your process inputs go down C)Your process outputs go up faster than your process inputs D)Your productivity goes up faster than your competition's
12 INCORRECT
Which of the following is NOT a classic process performance measure as
discussed in the book? A)Productivity B)Profitability C)Quality D)Flexibility
The correct answer for each question is indicated by a
1 INCORRECT
.
Sunk costs are expenses which have no effect on a decision and therefore, should not be taken into account in considering investment alternatives. A)True B)Fals e
2 INCORRECT
Depreciation refers to the allocation of cost due to deterioration of tangible assets. A)True B)Fals e
3 CORRECT
Activity-based costing allocates overhead costs using actual estimates of direct labor consumed by an activity. A)True B)Fals e
4 INCORRECT
The net present value refers to the total stream of payments that an asset will generate in the future discounted to the present. A)True B)Fals e
5 CORRECT
An asset is purchased at a $10,000 value. The estimated salvage value of the asset at the end of 10 years is $1,000 and the useful life is 10 years. Which of the following is the straight line depreciation sum? A)800 B)900 C)1000 D)1100 E)1200
6 INCORRECT
A cost that must be incurred if an investment is not made is a(n): A)Sunk cost B)Fixed cost C)Avoidable cost
D)Opportunity cost
7 CORRECT
A benefit foregone which results from choosing one investment over a better investment is an example of: A)Fixed costs B)opportunity costs C)avoidable costs D)semivariable costs
8 INCORRECT
Investment A has a payback period of 3 years and a present value of $40,000. Investment B has a payback period of 4 years and present value of $50,000. A)Investment A should be chosen. B)Investment B should be chosen. C)Both should be chosen with half invested in each. D)Neither should be chosen. E)It's a managerial decision with no clearly defined choice.
9 INCORRECT
Which of the following is NOT an underlying assumption of linear breakeven analysis: A)Selling price per unit is constant. B)Variable costs per unit remain constant. C)Fixed costs remain constant. D)The volume of units sold affects the per unit costs.
10
INCORRECT
If process 1 has fixed costs of $10,000 and variables costs of $50 per unit, and process 2 has fixed costs of $20,000 and variable costs of $30 per unit, what is the break-even point between these two processes? A)500 B)667 C)2,000 D)3,750 E)5,000
11 INCORRECT
Which of the following is NOT an economic investment decision? A)Purchasing new facilities B)Improving labor efficiency C)Make or buy D)Closing a plant
12 INCORRECT
Which of the following is NOT an Excel financial function?
A)Break-even B)Future value C)Net-present value D)Internal rate of return
The correct answer for each question is indicated by a
1 INCORRECT
.
The quality movement can trace its roots back to Walter Shewhart. A)True B)Fals e
2 CORRECT
In the US, the importance of quality in the success of an organization didn't begin to be recognized until the late 1970's. A)True B)Fals e
3 INCORRECT
External failure costs in quality refer to costs that are incurred after the product has been delivered to the customer. A)True B)Fals e
4 INCORRECT
Only Japanese firms can apply for the Deming Award. A)True B)Fals e
5 CORRECT
Which of the following firms has not won the Baldrige Award? A)Ford B)IBM C)Milliken and Co. D)Federal Express
6 CORRECT
Deming would argue that as much as 94% of poor quality is the responsibility of: A)Management B)The process C)Workers D)Engineering
7 INCORRECT
Which of the following is an example of a stereo amplifier's features? A)Signal-to-noise ratio
B)Remote control C)Mean time to failure D)Useful life
8 INCORRECT
Which of the following is an example of a stereo amplifier's durability? A)Signal-to-noise ratio B)Remote control C)Mean time to failure D)Useful life
9 INCORRECT
Which of the following is an example of a firm's reputation? A)Ease of repair B)Courtesy C)Oak-finished cabinet D)Consumer Reports ranking
10 CORRECT
ISO 9000 quality standards are targeted at organizations in A)America B)Japan C)Europe D)The international economic community
11 CORRECT
Which of the following is NOT consistent with the concept of TQM? A)Organizational leadership B)Quality control departments C)Continuous improvement D)Customer focus
12 INCORRECT
Which of the following is appropriate for Six Sigma quality? A)Defects per hundred B)Defects per thousand C)Defects per hundred thousand D)Defects per million
The correct answer for each question is indicated by a
1 CORRECT
.
The achievement of maximum capacity denotes a highl y efficient process. A)True B)Fals e
2 INCORRECT
A GIS is a graph of a geographic area displaying demographics or other information to support decision making. A)True B)Fals e
3 CORRECT
Factor rating systems are the least frequently used of the techniques presented for plant location analysis. A)True B)Fals e
4 CORRECT
For manufacturers, the facility location problem can be categorized as factory location and warehouse location. A)True B)Fals e
5 INCORRECT
According to the authors, two reasons that capacity and location problems are interrelated are (choose the best answer): A)Increased networking and information needs B)The need for producers to locate near customers and the growth of the network firm C)Legal requirements and safety requirements D)Logistics and information needs
6 INCORRECT
The best operating level is: A)The maximum point of the cost curve B)The level of capacity for which average unit cost is minimized C)Maximum capacity D)The level of capacity for which total cost is minimized
7 INCORRECT
The capability to deliver what the customer want within a lead time shorter than the competitors is referred to as: A)Process flexibility B)Worker flexibility C)External flexibility D)Capacity flexibility E)Plant flexibility
8 INCORRECT
Long-range capacity planning should be the responsibility of: A)Analysis B)Middle management C)Top management
D)Marketing management
9 INCORRECT
Which of the following is NOT a method which is used in location analysis? A)linear Programming-transportation model B)best location method C)cost analysis D)center of gravity method
10 INCORRECT
Flexible workers are typically: A)Receive little training B)Stay on task C)Prefer standardized work assignments D)Better educated
11 INCORRECT
Which of the following is NOT a qualitative factor in location decisions? A)Local infrastructure B)Worker education and skills C)Product content requirements D)Exchange rates E)Political/economic stability
12 INCORRECT
A brick and mortar operation is A)A facility that deals directly with the customer B)A facility that deals indirectly with the customer C)A facility that has no contact with the customer D)Also known as a back-of-the-house operation
1._______ allows the manager to anticipate the future so then can plan accordingly. Forecasting • Planning • Organizing • Leading • 2. Forecasts are rarely perfect because of: Internal factors • Randomness • External factors • All of the given options • 3. Forecast accuracy ________ as time horizon increases. Increases •
Decreases Remains the same • None of the given options • 4. __________ use explanatory variables to predict the future. Judgmental forecasts • Time series forecasts • Associative models • All of the given options • 5. All of the following are examples of judgmental forecasts except: Executive opinions • Consumer surveys • Delphi method • Naïve forecasts • 6. _________ requires completing a series of questionnaires, each developed from the previous one, to achieve a consensus forecast. Naïve forecast • Time series analysis • Associative models • Delphi method • 7. One of the drawbacks of naïve forecasts is: Low accuracy • High cost • No ease at using • None of the given options • 8. All of the following are responsible for irregular variations except: Severe weather • Earthquake • Worker strikes • Cultural changes • 9. _______ is a technique that averages a number of recent actual values, updated as new values. Moving average • Weighted moving average • Simple moving average • Exponential smoothing • 10. MAPE stands for: Measure Actual Performance Error • Mean Absolute Percent Error • Mean Actual Percent Error • Mean Absolute Performance Error • •
1.
The prime determinants nts of choosing a sampling plan include ude: a) Cost b) Time c) Environment
d) Both cost and time 2. The ideal sampling plan requires ______ inspection of each lot. a) 100% b) 5 0% c) 1 0% d) 2 5% 3. As the lot quality decreases, the probability _________. a) Increases b) Dec Decreases ses c) Rema Remain inss neut neutra rall d) None None of the the give given n opti option onss 4. ________ represents maximum AOQ for a range of fractions defective. a) Acceptable Quality Level (AQL) b) Ave Average Ou Outgo tgoing Quality ity Lim Limiit (AO (AOQ QL) c) Lot Tol Toleerance nce Pe Percent Defective (L (LTPD) d) None of the given options 5. ___________ refers to intermediate range capacity planning, usually covering 2 to 12 months. a) Aggregate planning b) Moderate pl planning c) Long rang planning d) Short range planning 6. _________ is an optimizing technique that seeks to minimize combined costs, using a set of cost-approximating functions to obtain a single quadratic equation. a) Line Linear ar progr program ammi ming ng b) Linea Linearr dec decisi ision on rule rule c) Aggr Aggreg egat atee plann plannin ing g d) Lot Toler Toleranc ancee Percent Percent Defect Defective ive (LTPD (LTPD)) 7. ________ takes physical count of items at periodic intervals. a) Peri Periodi odicc invent inventory ory sys syste tem m b) Perpet Perpetual ual invent inventory ory system system c) TwoTwo-bi bin n syst system em d) Univer Universal sal bar code code syst system em 8. _______ refers to the cost to carry an item in inventory for a length of time. a) Shor hortage age cos costt b) b) Orde Orderi ring ng cost cost c) Hold olding cost d) None None of of the the given given opti option onss
9. Inputs to MRP include all of the following except: a) Mast Master er sched schedul ulee plan plan b) Bill Bill of mate materi rial alss c) Inve Invent ntor ory y reco record rdss d) Cont Contro roll char charts ts 10. ________ represents the process of determining short-range capacity requirements. a) Capacity requirements planning b) Aggr Aggreg egat atee pla planni nning ng c) Capa Capaci city ty pla plann nnin ing g d) Sche Schedu dule le plan planni ning ng
1.
Which hich of the fol followi lowing ng act activit ivitiies is unne unnece cess ssar ary y ,when when an orga organi niza zattion decides to design its new product or service or refine its existing product or service: a Translate Translate customer customer wants and needs needs into product and servic servicee require requirements ments b Refi Refine ne exis existi ting ng prod product uctss and ser servi vice cess c Devel Develop op new new pro produ duct ctss and and serv servic ices es d
2.
Whil Whilee foc focus usin ing g on capac capacit ity y plan planni ning ng,, orga organi niza zati tions ons look look for for whi which ch of the the following alternatives. a. b. c. d.
3.
Only Only two two or or more more ite item m are are invo invollved Annua Annuall dem deman and d is is kno known wn Usag Usagee rate rate is is cons consta tant nt Usag Usagee occu occurs rs cont contin inua uall lly y
Adv Advantages of of Proce ocess La Layout Inclu clude a. b. b. c. d.
6.
One One produ product ct is not invo involv lved ed Everyt Everythin hing g produc produced ed can be sold sold Variable Variable cost cost per per unit unit is the same same regardl regardless ess of of volume volume Fixed Fixed costs costs do not not chang changee with with volume volume
Whic Which h of the the fol follo lowi wing ng does does not fall fall under under Econ Econom omic ic Produ Product ctio ion n Qua Quant ntit ity y ( EPQ) a. b. c. d.
5.
How How muc much h wil willl it it cos costt How much much holid holidays ays the the worker workerss can enjo enjoy. y. How much much compe compensa nsatio tion n they need need to to pay to to their their CEO. CEO. None None of the abov abovee
Whic Which h of the the fol follo lowi wing ng is not one one of of the the ass assum umpt ptio ions ns for for Cos Costt Vol Volum umee Analysis a. b. c. d.
4.
Manage Manage the purch purchasi asing ng activit activities ies relig religiou iously sly and and diligen diligently tly..
Equi Equipm pment ent use used d is les lesss cost costly ly Low Low uni unitt cos costt. Labo Laborr spec specia iali lizat zatio ion. n. Low Low mate materi rial al hand handli ling ng cost cost
Comm ommon types pes of Oper perations include a. Cont Contin inuou uouss Proc Proces essi sing ng.. b. Interm Intermitt ittent ent Proces Processin sing. g. c. Automati ation
d. All All of of the the abov abovee 7.
8.
System pe performance is is me measured by by a. Averag Averagee number number of custo customer merss being being refuse refused d servic servicee b. Averag Averagee time time custom customers ers wait wait c. Syst System em uti utili liza zati tion on d. b and c. Inve Invent ntor ory y car carry ryiing cos costs are are inf influ luen ence ced d by by: a. Orde Orderr Quant Quantit ity y in in Uni Units ts b. Holdin Holding g carryi carrying ng cost cost per unit. unit. c. Demand d. a an and b only.
9.
Bar coding help elps in determining th the : a. Status Status of of the inve invento ntory ry of an an item item in wareho warehouse use b. Pric Pricee of of the the pro produ duct ct c. Size of the lot as well well as the size and and specificat specifications ions of the the product product d. All All of of the the abov abovee
10.
Ther Therbl blig igss are are basi basicc ele eleme ment ntal al moti motions ons which which incl include ude:: a. Search b. Select c. Throw d. a an and b only
11.
Key issues issues in inspec inspectio tion n inclu include de wher wheree to inspec inspect, t, how how often often to to insp inspect ect and whether to inspect on site or in a lab.
12.
Tota Totall Qual Qualit ity y Manag Managem emen entt TQM TQM has has two two impo import rtan antt aspec aspects ts fir first st bei being ng problem solving and second being process improvement
13.
Sampli Sampling ng Plans Plans specif specify y lot lot size, size, sample sample size, size, number number of sample sampless and acceptance/rejection criteria.
14.
Aggregat Aggregatee plan plannin ning g esta establi blishe shess gener general al level level of employ employmen ment, t, output output and inventories for periods of 2 to 12 Months.
15.
Mast Master er sch sched edul ulee is pre prepa pare red d by dese desegr greg egat atin ing g the the Aggre Aggregat gatee Plan. Plan.
16.
Invent Inventory ory levels levels must must be be care careful fully ly planne planned d in order order to balanc balancee the the Hold Holding ing Costs of inventory and cost of providing levels of customer service
17.
Econom Economic ic Order Order Quanti Quantity ty (EOQ) (EOQ) and Econom Economic ic Product Production ion Quanti Quantity ty (EPQ) (EPQ) make use of the same set of assumptions except orders are received incrementally during production. .
18.
To be succ succes essf sful ul MRP MRP req requi uire ress a comp comput uter er pro progr gram am,, accur accurat atee mast master er schedule, bills of material, and inventory data.
19.
Manufac Manufactur turing ing Resour Resources ces Planni Planning ng (MRP (MRP II) and Enterp Enterpris risee Resour Resource ce Planning (ERP) are natural extensions of MRP, which cover broader scopes as well as Supply Chain Managements.
20.
Proces Processs Layo Layouts uts group group sim simila ilarr activ activiti ities es into into depart department mentss or other other work work centers.
21.
Fixed Fixed Posi Positio tion n Layou Layouts ts are used used when when size size,, fragi fragili lity, ty, cost cost or other other fact factors ors make it undesirable or impractical to move a product through a system.
22.
The design design of work work syst systems ems involv involves es job design design,, work work measur measureme ements nts and compensation
23.
The primar primary y loca locatio tion n optio options ns avai availab lable le to to an an exis existi ting ng orga organiz nizati ation on incl include ude expanding the existing location, move to a new location, maintain existing facilities while adding additional facility or do nothing.
24.
Most Most organi organizat zation ionss are are influ influenc enced ed by by locat location ion of raw raw mate materia rials, ls, labor labor suppl supply, y, market considerations, community related factors, site related factors and climate.
25.
ISO ISO 9000 9000 and ISO ISO 140 14000 00 rep repre rese sent nt qua quali lity ty sta standa ndard rdss and and envir environ onme ment nt standards respectively.
26.
Two Two basic basic tool toolss of pro proce cess ss con contr trol ol are are contr control ol cha chart rtss and run run tes tests ts..
27.
The decisio decision n to shift shift or conv convert ert from from Tradi Traditio tional nal Manuf Manufact acturi uring ng Syst System em to to Just in Time or Lean Systems could be sequential sequ ential in order to help management have better control, first hand learning experience and more time for conversion from one system type to another.
28.
The ultima ultimate te goal goal of a Just Just in in Time Time Syst System em is is to to achiev achievee a bala balanced nced,, smoot smooth h flow of production.
29.
Logisti Logistics cs involv involvee move movemen mentt of of mate materia rials ls to and from from the organi organizat zation ion including shipment and distribution.
30.
Electr Electronic onic Data Data Inte Interch rchange ange has increa increased sed product productivi ivity ty and accura accuracy cy in Supply Chain Management Systems.
Virtual University of Pakistan Production Operations Management MGT 613 Quiz 01 Solution Fill in the Blanks 1. strategy strategy that that focuses focuses on reduction reduction of time time needed needed to accomplish accomplish tasks tasks is called called
time based strategy 2. Mission is the reason for existence of an organization 3. Judgmental forecasts are the forecasts that use subjective inputs such as opinions from consumer surveys, sales staff, managers, executives and experts. 4. A long term upward or downward downward movement movement in data data is is called called trend 5. The forecast forecast for for any period period that equals equals the the previous previous period’s period’s actual actual value value is called called naive forecast
6. A decision tree is a schematic representation of the available alternatives and their possible consequences. 7. A measure measure of the effectiv effectivee use of resources, resources, usuall usually y expressed expressed as the ratio ratio of output to input is called productivity 8. The abili ability ty to adapt adapt quick quickly ly to chang changes es is calle called d flexibility 9. The operat operations ions function function involves involves the convers conversion ion of inputs into output 10. The considering of events and trends trends that present threats or opportunities for a company are called environmental scanning
1. ------------------------------------ is is the maximum maximum output rate rate or service service capacity capacity an operation, operation, process or facility. a. Efficiency ency b. Effe Effect ctiv ivee Capac Capacit ity y c. Desi Design gn Capa Capaci city ty 2. ------------------------- is is the rate rate of output actually actually achieved achieved..
a. Actu Actual al Outpu utputt b. b. Desi Design gn Capa Capaci city ty c. Utilizat zation 3. A knowledge knowledge of economi economies es and diseconomi diseconomies es of scale scale is -------------------a. Importan Importantt for operatio operations ns manage managerr b. Not Impo Importa rtant nt for for operat operation ionss manag manager er c. It mak makes es no no diff differ eren ence ce 4. If the output output rate rate is less than than the optimal optimal level, level, increasi increasing ng output rate rate results results in in --------------------------------------- average unit cost a. Increasing b. Decreas easing ing c. Stabilizin zing 5. As the the output output is increased, increased, the the unit unit cost is decrease decreased d because because a. Of exte extern rnal al fact factor orss b. Bec Because ause there there are are more more units units to absorb absorb the the fixed fixed costs costs c. None None of the abov abovee 6. as the general general capacity capacity of the the plant increas increased, ed, the optimal optimal output output rate rate increases increases and the minimal cost for the optimal rate a. Decreases b. Increases c. It has has no no effec effectt with with the the outp output ut rate rate 7. The prima primary ry purpos purposee of cost- volume volume analysi analysiss is is a. To estim estimate ate the the incom incomee of an an organiz organizatio ation n b. To analyze analyze initial initial costs costs incurred incurred under different different operatin operating g conditions conditions c. Both A and B 8. variable variable costs costs vary ----------------------------- with volume volume of output a. Inversely b. Directly 9. ------------------------- refers refers to the the way, an organizat organization ion chooses chooses to produce produce its goods goods or services a. Proc Proces esss sele select ctio ion n b. b. Capa Capaci city ty pla plann nnin ing g c. Cost Cost volu volume me ana analy lysi siss 10. Ice cream cream is an an example example of a. Batc Batch h proc proces essi sing ng b. Job shop c. Repe Repeti titi tive ve proc proces essi sing ng
Fill in the blanks. 1. Eliminati Eliminating ng the disruption disruptionss and making making the system system flexible flexible are are __________goals __________goals of the JIT. (supporting) 2. Incremental Incremental Holding Holding Cost inc Cost incurr urred ed by using using slower slower altern alternati ative ve is comput computed ed through Incremental Holding Cost =________________.( H*(d/365) ) 3. One of the the basic basic elements elements of the the Supply Supply Chain Chain Management Management is _________ ____________ ___ for evaluating suppliers and supporting operations.( purchasing)
4. CPFR CPFR stands stands for____ for_______ _______ ________ ________ ________ ________ _______ ___.(C .(Coll ollabo aborat rative ive Planni Planning ng Forecasting and Replacement) 5. _______________ ________________refl _reflects ects company company’s ’s efforts efforts to to achieve achieve response response from EDI and bar codes.(Efficient Consumer Response(ECR) ) 6. The
rate
at
which
inventory
goes
through
the
supply
chain
is
____________(Inventory velocity) 7. In ________ ____________ ____we we establis establish h the timing timing of the use of equipme equipment, nt, facili facilitie tiess and human activities in an organization.( Scheduling) 8. Schedul Scheduling ing for for high-vol high-volume ume flow flow syste system m is referr referred ed to as _______ ___________ ________ ____.. (Flow-shop Scheduling) 9. ____________ ____________ is used as a visual visual aid for for loading loading and schedul scheduling.( ing.(Gantt Gantt chart) chart) 10. Execut Executive ive respon responsib sibil iliti ities, es, projec projectt select selection ion,, projec projectt manager manager select selection ion,, and organizational structure are major administrative issues of _________________. (Project Management)
QUIZ # 01 MGT-613 PRODUCTIONS & OPERATIONS MANAGEMENT INSTRUCTIONS: You are required to put answers in the following format. Solutions not following this format will be marked as ‘ZERO’. 1. 2.
B B
11. 12.
C B
3.
C
13.
A
4.
C
14.
C
5.
C
15.
C
6.
B
16.
A
7.
C
17.
D
8.
C
18.
B
9.
D
19.
B
10.
B
20.
B
Question:
Highlight th the co correct op options.
1. ________ ________ is a procedure procedure for acquiring acquiring informed informed judgments judgments and opinions from knowledgeable individuals to sue as subjective forecast.
a. Naïve Naïve fore forecas castin ting g metho method d b. Delp Delphi hi met metho hod d c. As Asso soci ciati ative ve met metho hod d d. Judgme Judgmenta ntall fore forecast casting ing
2. ______ is is an oscillating oscillating movement movement in demand demand that that occurs periodically in the short run and is repetitive.
a. Trend b. Seas Season onal al patt patter ern n c. Cycl Cyclic ic pat patte tern rn d. Irre Irregu gula larr patter pattern n
3. ________ ________ is an averaging averaging method method of forecasting forecasting which which weights the most recent data more strongly than the distant data.
a. Line Linear ar regr regres essi sion on b. Movi Moving ng aver averag age e c. Expone Exponenti ntial al smooth smoothing ing d. Adjusted Adjusted exponenti exponential al smoothing smoothing
4. Which of the following following demand demand pattern pattern does not define define any underlying time pattern of demand of product / service
a. Hori Horizo zont ntal al dema demand nd
b. Syst System emat atic ic dema demand nd c. Rand Random om vari variat atio ion n d. Repeat Repeatabl able e pattern pattern variati variation on
5. Which of the following following is forecasting forecasting method method which which relies on historical demand data and recognizes trends and seasonal patterns?
a. Judg Judgme ment ntal al meth method ods s b. Regr Regres essi sion on metho methods ds c. Time Time ser serie ies s meth method ods s d. Av Aver eragi aging ng meth method ods s
6. ______ are are the characterist characteristics ics of products products and services services that qualify it to be considered for purchase.
a. Orde Orderr win winne nerr b. Orde Orderr qual qualif ifie ierr c. Orde Orderr runn runner er d. Orde Orderr compe competi tito torr
7. In automotive automotive industry, industry, high quality quality has has become an order ____ and innovative design is order ________ .
a. Winn Winner er,, Quali Qualifi fier er b. Winn Winner er,, Runn Runner er c. Qual Qualif ifie ier, r, Winn Winner er d. Qual Qualif ifie ier, r, Runn Runner er
8. Which of the following following includes includes the ability of organizati organization on to produce a wide variety of products, to introduce new products and modify existing ones quickly?
a. Organi Organizat zation ion’s ’s standar standardiz dizati ation on b. Organi Organizat zation ion’s ’s agil agility ity c. Organi Organizat zation ion’s ’s flexi flexibil bility ity d. None None of the the abo above ve
9. In decision decision trees, Circular Circular nodes nodes represent represent which of the following?
a. Deci Decisi sion on poin points ts b. Alte Altern rnat ativ ives es c. Cons Conseq eque uenc nces es d. None None of the the abo above ve
10.. 10
In decision sion tree, ‘B ‘Bran ranches’ shou should ld be rea read fro from m:
a. Righ Rightt tto o lef leftt b. Left Left to righ rightt c. Cent Center er to left left d. Cent Center er to righ rightt
11. Which of of th the fo following is is th the Se Second ond st step in in forecasting process?
a. Identific Identification ation of forec forecasting asting purpose purpose b. Select Selecting ing a forec forecasti asting ng model model c. Collec Collectin ting g hi histo storic ric data data
d. Identi Identific ficatio ation n of demand demand patter pattern n
12.. 12 Which of the foll ollowi owing is a schemati atic mod model of alternatives available to the decision maker along with possible consequences and alternatives?
a. Decisi Decision on making making model model b. Deci Decisi sion on tre tree e c. Decisi Decision on prefe prefere rence nce matr matrix ix d. None None of the the abo above ve
13.. 13 A te textile compan pany is is con conttemplat lating th the fu future of on one of its plants. Following payoff table describes the situation:
Decision
State of Nature Good conditions
To expand To maintain status quo To sell now
Rs. 800,000 1,300,000 320,000
Poor conditions 500,000 -150,000 320,000
Under Minimax-regret criteria, criteria, what would be the decision makers decision would be? . a. To ex expand and b. To mainta maintain in status status quo c. To sell sell plan plantt d. Decision Decision would would be made made using some some other other criterio criterion n
14.. 14 Mr. A determi rmined ned th that his se service vice employe loyee es hav have e used a total of 2400 hours of labor this week to process 560 insurance forms. Last week the same crew used only 2000 hours of labor to process 480 forms. Which productivity measure should be used?
a. Total Total produc productiv tivity ity meas measure ure b. Partia Partiall producti productivi vity ty measure measure c. Both a and and b d. None None of the the abo above ve
15.. 15 An ope operatio ation ns an and su suppl pply st strate ategy is is co concerned ned wit with h which of the following?
a. Setting Setting specifi specific c polici policies es and and plans plans b. Short term term competit competitive ive strategie strategies s c. Coordi Coordinat nation ion of opera operatio tional nal goals goals d. All All of of the the abov above e
16.. 16 A tr trave avel ag agency proc rocessed sed 240 240 cust custo omer mers on on Day Day 1 with a staff of 12, and 360 customers the on Day 2 with a staff of 15. What can be said about the productivity shift from Day 1 to Day 2?
a. An increase increase in producti productivity vity from from Day Day 1 to Day Day 2 b. A decrease decrease in in productiv productivity ity from from Day 1 to Day 2 c. The same same product productivit ivity y from Day 1 to Day 2 d. Can not not be computed computed from from data above
17.. 17 Which of th the fol folllowi owing be behavio aviors rs is ex exhibit bited by by a time series having an up-and-down movement in a variable that repeats itself over a long period of time?
a. Rand Random om vari variat atio ion n
b. Trend c. Sea Seasona sonallity ity d. Cycle
18.. 18 Which one of the followi lowin ng reason asons s acc account ount for for using moving average in forecasting?
a. It eliminates the trend
b. It smoot smoothes hes the the random fluctuation fluctuations s c. It counteract counteracts s the the seasonal seasonal variations variations d. It approx approximate imates s the the period period average average
19.. 19 Which of th the fol folllowi owing st state atemen ments corre orres spon ponds to to an order-winning characteristic?
a. A factor factor which which may be signifi significant cant in other other parts parts of the organization b. A factor factor which which gives an organi organizatio zation n a competiti competitive ve edge c. A factor factor which which serves serves as a minimum minimum standard standard for purchase purchase d. A factor factor which which increases increases the the profitabili profitability ty of the organization
20.. 20 Which of th the fol folllowi owing is is a ch charac racterist ristiic of of lin line ear regression?
a. It is supe superi rior or to a movi moving ng avera average ge b. It is a caus causal al forec forecasti asting ng model model c. It compensat compensates es for both both trend trend and season seasonal al variatio variations ns in demand
d. It is superior superior to to a exponen exponential tial smooth smoothing ing
BEST OF LUCK!
1. d 2. a 3. c 4. b 5. b 6. b 7. a 8. c 9. b 10. d
11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
a c b d b a d b a c
1. Which one of the following is the overall objective of product and service design? a) Customer satisfaction and variety b) Reliability and variety c) Quality and reliability reliability d) Customer satisfaction and profitability 2. Which one of the following statements is true about OSHA? a) To safeguard safeguard against potential hazards b) To develop cost effective processes processes c) To implement legal standards d) To carry out implication of manufacturability and fitness 3. Which one of the following is the most significant disadvantage of standardization? a) Frozen designs b) Interchangeable parts c) Reduced variety d) Customized parts
4. Which one of the following is the final stage of product life cycle? a) Growth b) Decline c) Maturity d) Planning 5. _______________ is the bringing together of engineering design and manufacturing personnel early in the design phase. a) Reverse engineering b) Concurrent engineering c) Manufacturability Manufacturability d) Serviceability 6. Robust Robustnes ness s of a produc productt is _____ ________ ______ _____ __ relate related d with with the probability of failure. a) Directly b) Inversely c) Linearly d) Positively 7. Which one of the following mathematical expressions can be used to compute availability? a) (MTBF)/ (MTBF+MTR) (MTBF+MTR) b) (MTBF)/ (MTBF‐MTR) c) (MTR)/ (MTBF+MTR) (MTBF+MTR) d) (MTR)/ (MTBF‐MTR) 8. A prod produc uctt ‘A’ ‘A’ is spec specif ifie ied d to work work well well up to 30 degr degree ee Celsius temperature and 30% humidity. What would these specifications represent? a) Reliability factor b) Standard conditions c) Normal operating conditions d) Standard operating procedure 9. Which one of the following is a curve showing failure rate over time? a) Cost curve b) Bath tub curve c) Fish bone diagram d) Reliability curve 10. The frequency of capacity choice decisions is influenced by all of the following factors EXCEPT: a) Stability of demand b) Technological changes c) Competitive forces d) Cost factor 11. Which one of the following refers to the maximum output that a firm can produce under ideal conditions? a) Design capacity b) Effective capacity c) Capacity planning d) Utilization rate 12. The process selection should take into account all of the following EXCEPT: a) Capacity planning b) Design of work systems
c) Production forecasts forecasts d) Selection of technology 13. The type of processing structure that is used for producing discrete products at higher volume is: a) Continuous Flow b) Assembly Line c) Batch d) Job Shop 14. The type of processing structure that is used to produce gasoline, chemicals, chemicals, and steel is known as. a) Job Shop b) Batch c) Assembly Line d) Continuous Flow 15.. In whic 15 which h of the the foll follow owin ing g layo layout uts, s, work work stat statio ions ns are are arran arranged ged accord according ing to the gener general al functi function on they they perfor perform m without regard to any particular product? a) Product b) Process c) Fixed‐position Fixed‐position d) Storage 16. Which one of the following is the correct order of layout type types s from from low low volu volume me/h /hig igh h vari variet ety y to high high volu volume me/l /low ow variety? a) Fixed position, process, cell, product b) Fixed position, cell, process, product c) Fixed position, process, product, cell d) Process, fixed position, cell, product 17. Which one of the following statements is NOT correct about cycle time? a) It repr repres esen ents ts dail daily y oper opera ating ting tim time divi divide ded d by desi desire red d production b) It is the maximum allowable time at each work station c) It determines the time often items take to roll off in assembly line d) It is the time required to complete a product from start to finish 18. What would be the required cycle time for a process that operates 9 hours daily with a desired output of 300 units per day? a) 0.03 minutes b) 1.8 minutes c) 2700 minutes d) 33.33 minutes 19. What What would would be the output output capac capacity ity if an assem assembly bly line oper operat ates es for for 7 hours ours per per day with with a cycl cycle e time time of 2.0 2.0 minutes? a) 210 units per day b) 3.5 units per day c) 0.004 units per day d) 14 units per day 20. Which one of the following is TRUE about work sampling?
a) It describes individual human motions that are used in a job task b) It invo involv lves es dete determ rmin inin ing g the the leng length th of time time it will will take take to undertake a particular task c) It involves determining the amount of time a worker spends on various activities d) It providing standard times for micro motions such as reach, move and release
1. All of the the following following are the the major factor factorss affecting affecting design design strategy strategy except: except: Cost • Market • Time-to-market • Revenue • 2. All of the followin following g are the the primary primary reasons reasons for for design design process process except: except: Economic • Social and demographic • Political, liability, or legal • Personal • 3. ______ refers refers to to a manufacturer manufacturer being being liable liable for an injury injury or or damage caused caused by a faulty faulty product. Product liability • Manufacturer’s liability • Organizational liability • All of the given options • 4. _______ _________ __ is the post postpon poneme ement nt tacti tactic. c. Product differentiation • Delayed differentiation • Service differentiation • All of the given options • 5. The situatio situation n in which a product, product, part part or system system does not not perform perform as intended intended is referred to as: Reliability • Durability • Failure • Maturity • 6. DFA DFA sta stand ndss for for:: Design for Assurance • Design for Accuracy • Design for Authenticity • Design for Assembly • 7. Taguch Taguchii approa approach ch helps helps in in determ determini ining: ng: Controllable factors only • Un -controllable factors only • Both controllable factors and un -controllable factors • None of the given options • 8. ________ ________ is the bringing bringing together together of enginee engineering, ring, design design and manufact manufacturing uring personnel personnel together early in the design phase.
Robust design Concurrent engineering • Canabalization • Design for Manufacturing (DFM) • 9. Reliabili Reliability ty can can be measured measured effecti effectively vely by using: Probability • Durability • Failure • Forecasting • 10. _____________ determines the best possible outcome. Maximum • Minimax • Maximax • Laplace • 11. Decision tree is analyzed from: Left to right • Right to left • Any side • All of the above • 12. Judgmental forecasts include all of the following except: Executive opinion • • Consumer surveys • Delphi method • Regression analysis 13. In order to design a new product or service, an organization takes into account: • External factors • Internal factors • a & b • Economic, social and demographic conditions 14. FDA, OSHA and CRS resolve: Legal issues • Political issues • Ethical issues • Environmental issues • 15. Design that results in products or services that can function over a broad range of conditions is called: Computer Aided Design Robust design Design for remanufacturing Modular design •
• • • •
•
16. Which of the following is wrong with respect to Naïve forecast? Quick and easy to prepare • Provides high accuracy • Simple to use • Can be a standard for accuracy 17. Steps in CPFR include all of the following except:
Creation of a front end partnership agreement Sharing forecast • Inventory replenishment • Development of supply forecasts • 18. Identify the right sequence in product or service life cycle. Introduction, Maturity, Growth, Decline, Saturation • Introduction, Growth, Maturity, Saturation, Decline • Introduction, Growth, Saturation, Maturity, Decline • Introduction, Saturation, Growth, Maturity, Decline • 19. In the absence of enough time, ________ forecasts are preferred. Qualitative • Quantitative • Naïve forecasts • None of the given options • 20. ___________ are based on samples taken from potential customers. Executive opinion • Consumer surveys • Delphi method • All of the given options •
1. The goal goal of of Total Total Qual Qualit ity y Managem Management ent is: is: a) Custo Custome merr sat satisf isfac actio tion n b) Product Product differ different entiat iation ion c) Bran Brand d equi equitty d) Acti Acting ng glo globa ball lly y 2. The most most common form of qualit quality y control control includes: includes: a) Planning b) b) Orga Organi nizi zing ng c) Insp Inspeecti ction d) Directing 3. Process Process selection selection is is primari primarily ly conside considered red during: during: a) Planning b) b) Orga Organi nizi zing ng c) Leading d) Cont Contrroll olling 4. The type type of operati operation on being carrie carried d out by an an organizati organization on depends upon: a) Degr Degree ee of stan standa dard rdiz izat atio ion n b) b) Volu Volume me of of out outpu putt c) Demand d) Both Both (a) (a) and and (b) (b) 5. Repetitive Repetitive processing processing results results in in output output that that is: is: a) Highl Highly y stand standar ardi dize zed d b) Highl Highly y custo customi mize zed d c) Parti Partial ally ly custo customi mize zed d d) None None of of the the give given n opti options ons 6. Job shop and batch processing are differentiated on the basis of: a) Job Job req requi uire reme ment ntss b) Degree Degree of standa standardi rdizat zation ion
a) b) c) d)
a) b) c) d)
a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d)
a) b) c) d) a) b)
c) Volu Volume me of outp output ut d) Both Both (b) (b) and and (c) (c) 7. Automation is preferred because it: a) Offers Offers lesser lesser dependen dependence ce on work workers ers b) Result Resultss in reduct reduction ion in vari variabl ablee cost c) Offers Offers easy easy handl handling ing of repe repetit titive ive work work d) All All of the the give given n optio options ns 8. Product layout is preferably used for: Repetitive processing Intermittent pr processing Both (a) and (b) Neither (a) nor (b) 9. Process layout is used for: Repetitive processing Intermittent processing Both (a) and (b) Neither (a) nor (b) 10. The most significant advantage of U-shaped layout is: Cost minimization Easy handling of process Increased fl flexibility in in wo work All of the given options 11. The goal of motion study is to achieve: Cost minimization Maximum ef efficiency Profitability All of the given options 12. Location decisions are viewed primarily as part of: Marketing strategy Growth factors Financial aspect Both (a) and (b) 13. Regional factors for location planning include all of the following except: Raw materials Markets Labor considerations Attitudes 14. Transportation method is a __________ approach. Quantitative Qualitative Scientific All of the given options 15. Fredrick Taylor’s concern for quality includes: Product inspection Gauging system Statistical control chart Both (a) and (b) 16. Kaoru Ishikawa is famous for: Statistical quality control Fish bone diagram
c) d) a) b) c) d)
a) b) c) d) a) b) c) d)
a) b) c) d)
Loss function concept All of the given options 17. Poor quality adversely affects: Costs Productivity Profitability All of the given options 18._________ is intended to assess a company’s performance In terms of environmental performance: ISO 14000 ISO 9000 Six sigma All of the given options 19. The purpose of ISO 9000 is to: Prom Promot otee qual qualit ity y stan standa dard rdss to imp impro rove ve eff effic icie ienc ncy y and and prod produc ucti tivi vity ty Earn high profit Avoid un unfavorable ou outcomes Gain high market share 20. A product performing consistently refers to which of the following dimensions of quality: Safety Conformance Durability Reliability
