6500:330 Principles of Supply Chain & Operations Management Review Exam 1
10. A professor is expected to cover 16 chapters in an operations management text each semester. One semester the professor dismisses class 30 minutes early every Monday and Friday and is able to cover only 12 chapters. What is the professor's efficiency? A. 75% B. 4 C. 133% D. -4
A
10. Which of the following lists is in correct supply chain order? A. first tier supplier - manufacturer - distributor B. distributor - manufacturer - retailer C. first tier supplier - second tier supplier - third tier supplier D. customer - retailer - distributor
A
11. Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each 8-hour shift. If the production is increased to 1,200 pretzels each shift, then productivity will have increased by: A. 50% B. 33% C. 25% D. 67% E. 90%
A
11. The substitution of machinery that has sensing and control devices for human labor is best described by the term: A. automation B. feedback control C. computer-aided manufacturing D. computer-integrated manufacturing E. flexible manufacturing system
A
16. A control chart used to monitor the fraction of defectives generated by a process is the: A. p-chart B. R-chart C. x-bar chart D. c-chart E. Gantt chart
A
17. The type of layout which features departments or other functional groupings in which similar activities are performed is: A. functional B. product C. fixed-position D. mass E. unit
A
17. Which of these continuous improvement tools would be best suited for showing all of the steps required to change your major to operations management? A. process map B. cause-and-effect diagram C. Pareto chart D. scatter plot
A
22. The maximum allowable cycle time is computed as: A. daily operating time divided by the desired output B. desired output divided by the daily operating time C. daily operating time divided by the product of the desired output and the sum of job times D. the product of desired output and the sum of job times divided by daily operating time E. 1.00 minus station time
A
23. The point where the customer interfaces directly with the service organization is: A. the front room. B. the back room. C. onstage. D. the floor.
A
25. The point where the customer interfaces directly with the service organization is: A. the front room. B. the back room. C. onstage. D. the floor.
A
27. The process design team at a manufacturer has broken an assembly process into eight basic steps, each with a required time, and predecessor as shown in the table. They work a 7 hour day and want to produce at a rate of 360 units per day. What should their takt time be? Task Time (sec), Predecessor A 45,-- B 50,A C 40,A D 55, B, C E 40,D F 65, D G 25,E H 35, F, G A. 70 seconds B. 65 seconds C. 52 seconds D. 25 seconds
A
3. The time between completions of successive units on a production line is called: A. cycle time. B. takt time. C. elapsed time. D. work time.
A
3. Which of these continuous improvement tools would be best suited for showing all of the steps required to change your major to operations management? A. process map B. cause-and-effect diagram C. Pareto chart D. scatter plot
A
30. The process design team at a manufacturer has broken an assembly process into eight basic steps, each with a required time, and predecessor as shown in the table. There are 7.5 productive hours available in a day and the manufacturer wishes to produce 400 units. Balance the line by assigning tasks to workstations to fill up as much takt time as possible. Break ties by assigning the longest task first. What task(s) should be assigned at the third workstation? Task: Time, predecessors A: 45, - B: 50, A C: 20, A D: 55, A E: 15, D F: 65, D G: 25, E H: 35, BCFG A. B and E B. D C. C, E, and G D. F
A
4. An arrow in a process map represents a: A. move activity. B. start or finish point. C. delay. D. creation of a document.
A
4. On the first day of class at a new university you made judgments about the quality of the class before the professor had entered the room. You noted the comfort of the accommodations, the fine works of art in the halls and on the classroom wall and the soothing music piped in over the sound system. This dimension of quality is: A. aesthetic. B. performance. C. features. D. perceived quality.
A
6. Lost production time, scrap, and rework are examples of ___. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs
A
7. Which of the following is primarily a supply chain management decision? A. from whom to purchase materials B. how many of each item should be produced C. the mix of labor skill and automation D. plant location
A
8. The Devon Tower graces the Oklahoma City skyline and is officially the tallest building in the state. The manufacturing process used to produce this jewel is most probably: A. a fixed-position layout. B. a batch manufacturing process. C. a hybrid process. D. a job shop.
A
Closing the loop in the area of business strategy means that: A. core competencies at the functional level feed back into the business strategy. B. the mission statement is used to develop the business strategy. C. the business strategy is translated into operations and supply chain actions. D. other functional strategies, such as those of the marketing and finance functions are aligned with the operations and supply chain strategy.
A
The ability to produce a wide range of products or service is: A. mix flexibility. B. changeover flexibility. C. volume flexibility. D. run flexibility.
A
Whether the product was made or service performed to specifications is a question of: A. conformance quality. B. performance quality. C. reliability quality. D. value indices.
A
1. A set of tasks or activities that addresses the main value-added activities of an organization is a: A. process. B. primary process. C. support process. D. development process.
B
10. Which type of processing system tends to produce the most product variety? A. Assembly B. Job-Shop C. Batch D. Continuous E. Project
B
14. An electronic commerce system: A. is used to transmit information only upstream. B. can improve the speed and quality of business communication. C. is used to transmit information only downstream. D. links everyone in the supply chain except customers.
B
14. Management behaviors supporting an organizational culture that encourages continuous improvement include which of the following? (I) develop a vision statement for the organization (II) develop a reward system that promotes the philosophy (III) institute continuous training programs (IV) make decisions that adhere to the philosophy A. I, II, and IV B. I, II, III, and IV C. I and III D. II, III, and IV E. II and IV
B
14. Products that are customized only at the very end of the manufacturing process are known as: A. make-to-stock. B. assemble-to-order. C. make-to-order. D. engineer-to-order.
B
15. Focusing a supply chain on ________________ is a modern way of ensuring high quality inputs and a ready supply of process-improvement ideas. A. lowest cost-per unit sourced B. close, collaborative ties with suppliers C. suppliers that emphasized continuous-flow production D. ISO 14000 customers E. partners pursuing similar strategies
B
19. A service organization (for example, a hospital) is likely to use a ________ layout because of variability in customer processing requirements. A. project B. functional C. flow D. assembly E. non-repetitive
B
2. Highly automated batch processes that can reduce the cost of making similar groups of products are: A. functional layouts. B. flexible manufacturing systems. C. make-to-stock. D. adjacent processes.
B
24. The greater the emphasis on intangible activities, the more management's attention will be directed to: A. buildings and property. B. training employees. C. truck fleets. D. material costs.
B
4. Manufacturing work sent to other countries is called: A. downsized B. outsourced C. internationalization D. vertical integration E. entrepreneurial ship
B
5. Costs incurred by defects that occur prior to delivery to the customer are called: A. external failure costs. B. internal failure costs. C. appraisal costs. D. prevention costs.
B
5. Which tool should be used to track the movement of a customer's complaint from one department to the next until it is resolved? A. Process map. B. Swim lane map. C. Entity map. D. Data flow map.
B
7. A sporting apparel manufacturer that produces t-shirts to commemorate significant athletic achievements for proud students and alumni probably uses: A. a fixed position layout. B. batch manufacturing. C. a continuous flow process. D. a production line.
B
7. Warranty service, processing of complaints, and costs of litigation are examples of ___. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs
B
9. A car wash services 200 customers in an hour on a lovely Saturday afternoon. The car wash employs 5 washers at $6 per hour and uses $50 of water and $5 of electricity per hour. An appropriate measure of productivity is: A. 80% B. 2.35 cars/$ C. 8 cars/$ D. 0.425 $/car
B
9. Cellular layout is a term associated with: A. wireless telecommunication B. group technologies C. functional (or process) layouts D. assembly lines E. job shops
B
A(n) __________ is an example of an infrastructural element. A. building B. organizational structure C. office equipment D. fleet of delivery trucks
B
Damron Inc., wants to purchase a shear for their sheet metal shop and chooses dimensions of cost, reliability, and flexibility as critical to their long term success. They evaluate four different shears and rate their performance on each criterion on a scale from 1 (poor) to 5 (excellent). Which shear should be purchased? Dimensions' Importance: Cost: 4 Reliability: 2 Flexibility: 3 Belsky Mfg.: 4,3,2 Reber Ind.: 4,2,3 Estelle LLC: 3,3,3 Floyd Co.: 3,1,4 A. Belsky B. Reber C. Estelle D. Floyd
B
For an organization to grow its market share, it must: A. advertise using multi-media B. meet minimum standards of acceptability for its products or services C. establish an internet website D. broaden its mission statement
B
The table depicts an assembly line that has been balanced with a takt time of 2 minutes. What is the percent idle time of this balance? Workstation #: Steps; Times Workstation 1: A,B; 1,1 Workstation 2: C; 1.8 Workstation 3: DEF; 1,0.5,0.4 Workstation 4: GH; 0.9, 0.8 Workstation 5: I; 1.8 Workstation 6: JKL; 0.5, 0.5, 0.6 A. 5% B. 10% C. 15% D. Cannot be determined from the information provided.
B
Which of these statements about time performance is BEST? A. A supplier with high delivery speed must have high delivery reliability. B. A customer with a narrow delivery window should have a supplier with high delivery reliability. C. A supplier with low delivery reliability must have low delivery speed. D. A customer with a wide delivery window should have a supplier with low delivery reliability.
B
Which one of the following would not generally be considered an aspect of operations management? A. Work methods B. Secure financial resources C. Maintain quality D. Product or service design E. Manage inventories
B
1. Which isn't a cost of quality? A. Prevention cost B. External failure C. Extended Service Contracts D. Internal failure E. Appraisal costs
C
11. Which of these statements about recent trends in operations and supply chain management is best? A. A lower level of competition exists thanks to an increased level of globalization. B. The rate of change in markets is actually lower than 10-15 years ago once inflation is factored in. C. Managers tend to make decisions with less information than they used to D. Customers demand increased standardization in goods and services.
C
12. A maintenance worker maintains an alibi sheet of all work activities performed in an 8 hour shift. If the work standard is such that 90% efficiency is expected, what is the actual amount of time that should be documented? A. 8.9 hours B. 111% C. 7.2 hours D. 0.8 hours
C
13. A man in midlife crisis places his order for a custom chopper from OC Choppers on September 1, but the work on the bike doesn't actually begin until October 1. The actual work on the bike, from design, through fabrication and assembly takes the entire month of October. The entire month of November is spent learning to ride a trainer bike, adding another garage bay to the house, and updating his will. Finally on November 30, the customer takes possession of his dream chopper and happily smokes his tires out of the lot and rides back to Oklahoma. This period of 91 days, besides being labeled "the longest three months of his life" would be more accurately labeled: A. efficiency. B. value-added time. C. cycle time. D. productivity.
C
13. The advantages of automation include: (I) Reduced output variability (II) Reduced variable costs (III) Machines don't strike or file grievances. (IV) Machines are always less expensive than human labor. A. I and IV B. II and III C. I, II, and III D. I and III E. II and IV
C
13. Which of the following statements about the operations function is NOT correct? A. Inputs to operations can take many different forms. B. Nearly all operations activities require coordination with other business functions. C. The outputs of an operations function are always tangible. D. Operations management activities are information intensive.
C
14. Which of the following approaches to process improvement could be described as competitive benchmarking? A. Employees at XEROX ignore the way they have always processed customer orders and design an entirely new way to do so. B. Employees at XEROX visit GM to pick up ideas on processing customer orders. C. Employees at XEROX purchase a Canon copier and take it apart to get design ideas for their next generation of copiers. D. Employees at XEROX take classes in quality improvement and make small, incremental changes to their order filling processes.
C
15. Products that use standard components but the final configuration of those components is customer-specific are known as: A. make-to-stock. B. assemble-to-order. C. make-to-order. D. engineer-to-order.
C
18. The type of layout in which workers, materials, and equipment are moved to the product as needed is: A. functional B. product C. fixed-position D. batch E. mass
C
19. An automobile windshield manufacturer wants to verify that their process is producing windshields of an appropriate thickness. The best tool to determine this information is a(n): A. process capability ratio. B. process capability index. C. x-bar chart. D. operating characteristics curve.
C
2. A quality perspective that focuses on whether or not a product was made or a service was performed as intended is the: A. performance perspective. B. value perspective. C. conformance perspective. D. intention perspective.
C
21. A production line is to be designed for a job with three tasks. The task times are 0.3 minutes, 1.4 minutes, and 0.7 minutes. The minimum cycle time in minutes, is: A. 0.3 B. 0.7 C. 1.4 D. 2.4 E. 0.8
C
26. A legal service in a corporate acquisition probably scores: A. low on customization and high on physical activities. B. high on customer contact and low on intangible activities. C. high on customization and high on intangible activities. D. low on customer contact and low on intangible activities.
C
4. An advantage of a production line process is: A. the volume of output needed to justify the investment. B. the degree of flexibility of the process. C. the per unit cost of items produced on the line. D. the range of output typically produced on such a process.
C
6. The manufacturing process used to make a wide variety of highly customized products in quantities as small as one is a: A. production line. B. continuous flow process. C. job shop. D. fixed position.
C
8. Costs of inspectors, testing, test equipment, and labs are examples of ___. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs
C
8. ______________ is an example of an output of the transformation process. A. Material B. Information C. Satisfied customers D. Intangible needs
C
9. Loss of business, liability, productivity and costs are consequences of ___. A. Labor Unions B. Globalization C. Poor Quality D. Robotics E. Micro-factories
C
9. Which of the following statements regarding the supply chain is TRUE? A. A second tier supplier is downstream from a first tier supplier. B. A first tier supplier is upstream from a second tier supplier. C. A first tier supplier is downstream from a second tier supplier. D. A customer is upstream from a first tier supplier.
C
Damron Inc., wants to purchase a shear for their sheet metal shop and chooses dimensions of cost, reliability, and flexibility as critical to their long term success. They evaluate three different shears and rate their performance on each criterion on a scale from 1 (poor) to 5 (excellent). What is the value index for the shear made by Belsky Manufacturing? Dimensions' Importance Cost: 4, Reliability:2, Flexibility: 3 Belsky Mfg.: 1,5,3 Reber Ind.: 5,2,3 Floyd Co.: 3,1,4 A. 9 B. 18 C. 23 D. 81
C
The firm's targeted customers, time frames, and performance objectives are identified by their: A. mission statement. B. core competencies. C. business strategy. D. functional strategy.
C
The latex division of Vandelay Industries provided support after the sale that could not be matched by any of the other players in the latex industry. This unique attribute was responsible for perhaps 60% of their sales volume and could be described as: A. a trade-off. B. a core competency. C. an order winner. D. externally neutral.
C
Which of the following statements about functional strategy is best? A. Functional strategies are not impacted by the mission statement; instead they are impacted by the overall business strategy. B. Functional strategies determine the overall business strategy. C. Many functional level strategies could readily be described as cross-functional. D. A firm's marketing and finance is more important than their operations and supply chain strategies.
C
1. A manufacturing process decision affects: A. the type of workforce needed. B. the type of equipment needed. C. the type of products that can be made. D. All of the above are correct.
D
10. Quality planning and administration, quality training, and quality control procedures are examples of ___. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs
D
10. Which of the following is NOT a generic performance dimension of operations and supply chain activities? A. quality B. time C. flexibility D. social responsibility
D
11. The purpose of the Malcolm Baldrige National Quality Award is to ___. A. stimulate efforts to improve quality B. recognize quality achievements of U.S. companies C. publicize successful quality programs D. all of the above E. distribute the grant money available for improved quality
D
12. An operations strategy for process selection should recognize that: A. process selection seldom requires technical expertise B. engineering "white elephants" are uncommon C. there is little need to manage technology D. flexibility is not always the best choice E. most technical skills can be contracted out to consultants
D
12. The quality control improvement tool that resembles a "fishbone" is ___. A. brainstorming B. check sheets C. Pareto analysis D. cause-and-effect diagrams E. fail-safe methods
D
12. Which of the following is NOT a trend in operations management? A. increased use of electronic commerce B. increased globalization C. decreased delivery times D. decreased customization
D
15. The procedure of rethinking and radical redesign of business processes to achieve dramatic organizational improvements is called: A. competitive benchmarking. B. continuous improvement. C. process benchmarking. D. business process reengineering.
D
15. Which of the following statements is (are) true? I. A second-tier supplier is downstream from a first-tier supplier in the supply chain. II. Most organizations function as part of larger supply chain that are linked through physical, monetary, and information flows. III. Of the three flows linking organizations in a supply chain, information and monetary flows always move upstream and physical flows always move downstream. IV. The SCOR model is used to define relationships in supply chain management. A. I only B. I and IV only C. II and III only D. II and IV only. E. III only
D
16. Every morning the married couple waged a war over the available laptop computer. Jeff was always eager to get started on the task at hand but Liza felt the need to first download her podcasts, which infuriated Jeff. He decided to track the time he spent waiting for podcasts to download every day for a month to see whether things were getting worse. The best tool for displaying these results to the divorce court judge would be a: A. swim lane chart. B. flow chart. C. cause and effect diagram. D. run chart.
D
16. Which one of the following is not common to product layouts? A. a high rate of output B. specialization of labor C. low unit costs D. ability to adjust to changes in demand E. all are common
D
18. The range chart (R-chart) is most likely to detect a change in: A. proportion B. mean C. number defective D. variability E. sample size
D
2. Which of the following statements best describes current thinking regarding processes? A. If companies concentrate on how functional areas like marketing, finance, and operations are organized, then everything will be fine. B. Managing functional areas like marketing, finance, and operations is essentially the same thing as managing what a business does. C. If the individual functional strategies of marketing, finance, and accounting are aligned with the overall business strategy, then everything will be fine. D. Developing superior business processes requires a cross-functional and cross-organizational perspective.
D
20. A production line is to be designed for a job with three tasks. The task times are 0.4 minutes, 1.2 minutes, and 0.5 minutes. The maximum cycle time in minutes is: A. 0.3 B. 0.7 C. 1.4 D. 2.1 E. 0.8
D
20. The purpose of control charts is to: A. estimate the proportion of output that is acceptable B. weed out defective items C. determine if the output is within tolerances/specifications D. distinguish between random variation and assignable variation in the process E. provide meaningful work for quality inspectors
D
28. The process design team at a manufacturer has broken an assembly process into eight basic steps, each with a required time, and predecessor as shown in the table. There are 8 productive hours available in a day and the manufacturer wishes to produce 400 units. What is the theoretical minimum number of workstations needed to balance this line? Task: Time, Predecessor J: 45, - K: 50, J L: 40, J M: 55, K, L N: 40, M O: 65, M P: 25, N Q: 35, O, P A. two station B. three stations C. four stations D. five stations
D
3. The __________ dimension of quality asks how long a product can go between failures or the need for maintenance. A. warranty B. lifetime C. serviceability D. reliability
D
6. Productivity is expressed as: A. output plus input B. output minus input C. output times input D. output divided by input E. input divided by output
D
6. Which of the following is not a characteristic of service operations? A. intangible output B. high customer contact C. high labor content D. easy measurement of productivity E. low uniformity of output
D
8. A car wash services 200 customers in a 4 hour span on a lovely Saturday afternoon. The car wash employs 5 washers at $6 per hour. An appropriate measure of productivity is: A. 200 cars/hour B. 0.6 $/car C. 8.3 cars/$ D. 1.7 cars/$
D
Mutt's Amazing Dogs offers a hot dog with mustard and a hot dog with relish and mustard. The difference between the two (the relish) is achieved by flipping a single lever, which changes the dispenser from mustard, to a perfectly proportioned mix of relish and mustard. This lever responds instantly to the feathery touch of Mutt, who has achieved a high level of: A. mix flexibility. B. volume flexibility. C. delivery flexibility. D. changeover flexibility.
D
Performance dimensions on which customers expect a minimum level of performance are called: A. order winners. B. minimum performers. C. recommended daily allowances. D. order qualifiers.
D
Structural elements of a business include: A. policies. B. people. C. decision rules. D. computer systems.
D
The fundamental purpose for the existence of any organization is described by its: A. policies B. procedures C. corporate charter D. mission statement E. bylaws
D
Which of the following statements is (are) true? I. Infrastructural elements are tangible resources such as buildings, equipment, and computer systems. II. Structural elements are the people, policies, and organizational structure choices made by a firm. III. A mechanism that identifies a firm's targeted customers and sets time frames and performance objectives for the business is called a mission statement. IV. The mission statement addresses a company's reason for existence, core values, and domain. A. I only B. I and IV only C. II and III only D. IV only. E. III only
D
Which of these is NOT one of the primary objectives of an operations and supply chain strategy? A. To help management choose the right mix of structural and infrastructural elements, based on a clear understanding of the performance dimensions valued by customers and the trade-offs involved. B. To ensure that the firm's structural and infrastructural choices are strategically aligned with the firm's business strategy. C. To support the development of core competencies in the firm's operations and supply chains. D. To align structural and infrastructural elements to convert order winners into order qualifiers as determined by the mission statement.
D
13. Which of the following is an element of TQM? A. continual improvement B. competitive benchmarking C. operations Manager empowerment D. team approach E. all of the above
E
17. A c-chart is used for: A. means B. ranges C. percent defective D. fraction defective per unit E. number of defects per unit
E
2. Which one of the following is not a typical question dealt with by an operations manager? A. How much capacity will be needed in the months ahead? B. What is a satisfactory location for a new facility? C. Which products/services should be offered? D. How to motivate employees? E. How much to sell a product for?
E
3. Which of the following does not use operations management? A. A CPA firm B. A bank C. A hospital D. A supermarket E. None of the above; they all use it (or should use it, at least)
E
5. Which of the following is not a process commonly considered in making products or delivering services? A. continuous B. batch C. repetitive D. job shop E. subcontracting
E
5. Which of the following is not a type of operations? A. goods production B. storage/transportation C. entertainment D. communication E. all the above involve operations
E
7. Which of these factors affects productivity? A. methods and technology B. workers C. management D. a and b only E. all of the above
E
