BUS5 140 SG 2

A tortilla chip workstation produces 1,000 chips in 20 seconds. What is its bottleneck time? A) .02 seconds per chip B) 50 chips per second C) 20 seconds D) 6000 chips per minute E) 20,000 seconds

A) .02 seconds per chip

Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. What is the crossover point between process A and process B? A) 50 units B) 200 units C) $2,500 D) $5,000 E) $9,500

A) 50 units

Which of the following is FALSE regarding control charts? A) Values above the upper control limits imply that the product's quality is exceeding expectations. B) Control charts are built so that new data can be quickly compared to past performance data. C) Control charts graphically present data. D) Control charts plot data over time. E) None of the above is false.

A) Values above the upper control limits imply that the product's quality is exceeding expectations.

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. What is the center of gravity? A) X = 28.125; Y = 31.25 B) X = 22000; Y = 24000 C) X = 27.5; Y = 40 D) center of gravity = 28 E) X = 25; Y = 40

A) X = 28.125; Y = 31.25

A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from a variety of other causes. This manager is most likely using: A) a Pareto chart. B) a scatter diagram. C) a quality loss function. D) a cause-and-effect diagram. E) a flowchart.

A) a Pareto chart.

Utilization will always be lower than efficiency because: A) effective capacity is less than design capacity. B) effective capacity is greater than design capacity. C) effective capacity equals design capacity. D) expected output is less than actual output. E) expected output is less than rated capacity.

A) effective capacity is less than design capacity.

Effective capacity is the: A) maximum output of a system in a given period. B) capacity a firm expects to achieve given the current operating constraints. C) average output that can be achieved under ideal conditions. D) minimum usable capacity of a particular facility. E) sum of all of the organization's inputs.

A) maximum output of a system in a given period.

Goods made to order are typical of ________ and ________ approaches while goods made to forecast are typical of ________ and ________ approaches. A) process, mass customization; repetitive, product B) product, mass customization; repetitive, process C) product, process; repetitive, mass customization D) repetitive, product; mass customization, process E) repetitive, process; mass customization, product

A) process, mass customization; repetitive, product

A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. To analyze trends or patterns in these returns, she has organized these complaints into a small number of sources or factors. This is most closely related to the ________ tool of TQM. A) quality loss function B) cause-and-effect diagram C) scatter diagram D) histogram E) process control chart

B) cause-and-effect diagram

The transportation model, when applied to location analysis: A) minimizes total fixed costs. B) minimizes total production and transportation costs. C) minimizes total transportation costs. D) maximizes revenues. E) minimizes the movement of goods.

B) minimizes total production and transportation costs.

Frito-Lay is to ________ focus as Harley Davidson is to ________ focus. A) process, repetitive B) product, repetitive C) repetitive, product D) process, product E) product, mass customization

B) product, repetitive

Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is TRUE? A) The crossover point is approximately 6667 units. B) It is impossible for one process to have both of its costs lower than those of another process. C) Process Y is cheaper than process X at all volumes. D) Process X should be selected for very large production volumes. E) Process X is more profitable than process Y and should be selected.

C) Process Y is cheaper than process X at all volumes.

The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as: A) continuous improvement. B) employee empowerment. C) benchmarking. D) copycatting. E) patent infringement.

C) benchmarking.

A product-focused process is commonly used to produce: A) high-volume, high-variety products. B) low-volume, high-variety products. C) high-volume, low-variety products. D) low-variety products at either high- or low-volume. E) high-volume products of either high- or low-variety.

C) high-volume, low-variety products.

In location planning, environmental regulations, cost and availability of utilities, and taxes are: A) global factors. B) country factors. C) regional/community factors. D) site-related factors.E) none of the above.

C) regional/community factors.

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites. The score for Gary Mall is ________ and the score for Belt Line is ________. A) 120; 120 B) 22; 24 C) 18; 120 D) 34; 28 E) none of the above

D) 34; 28

A successful TQM program incorporates all EXCEPT which of the following? A) continuous improvement B) employee involvement C) benchmarking D) centralized decision-making authority E) JIT

D) centralized decision-making authority

All of the following costs are likely to decrease as a result of better quality EXCEPT: A) customer dissatisfaction costs. B) inspection costs. C) scrap costs. D) warranty and service costs. E) maintenance costs.

D) warranty and service costs.

A company is deciding if it should design an advertising system for use on Twitter©. The first option is to skip out on designing, with no net costs or gains. The second option is System A, which would result in additional sales of either $50,000 under good conditions or $10,000 under bad conditions. The final choice is System B, which would increase sales by $20,000 under both good and bad conditions. Suppose that good conditions are twice as likely as bad conditions. Which option should the company pursue if developing a system costs $25,000?

Develop System A

A factory produces 1000 units a month. If design capacity is 3000 and efficiency is 50%, what are utilization and effective capacity? A) 66.6%; 1500 B) 50%; 2200 C) 33.3%; 3000 D) 50%; 2500 E) 33.3%; 2000

E) 33.3%; 2000

In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except: A) automation. B) standardization. C) tight quality control. D) removing some services. E) customization.

E) customization.

All of the following costs are likely to decrease as a result of better quality EXCEPT: A) customer dissatisfaction costs. B) inspection costs. C) scrap costs. D) warranty and service costs. E) maintenance costs.

E) maintenance costs.

Activity times should not be included in a service blueprint. (T/F)

F

An example of the postponement strategy for improving service productivity is having the customer wait until you have sufficient time to serve the customer. (T/F)

F

Benchmarking requires the comparison of your firm to other organizations; it is not appropriate to benchmark by comparing one of your divisions to another of your divisions. (T/F)

F

Enlarging employee jobs so that the added responsibility and authority is moved to the highest level possible in the organization is called employee empowerment (T/F)

F

Harley-Davidson, because it has so many possible combinations of products, utilizes the process strategy of mass customization. (T/F)

F

In location decisions, intangible costs are easier to measure than tangible costs. (T/F)

F

In the maturity stage of the product life cycle, operations managers will be particularly concerned with adding capacity or enhancing existing capacity to accommodate the increase in product demand. (T/F)

F

Modular design exists only in tangible products; it makes no sense in services. (T/F)

F

Most companies get certified on ISO 9000 by 1st party audits. (T/F)

F

Service operations exist only within the area of direct region. (T/F)

F

The bottleneck time is always at least as long as the throughput time. (T/F)

F

The center-of-gravity method finds the location of a centralized facility, such as a distribution center, that will maximize the organization's revenue. (T/F)

F

The enhancement of existing products is an external product development strategy.(T/F)

F

The typical full-service restaurant uses a product-focused process. (T/F)

F

To find the throughput time with simultaneous processes, compute the time overall paths and choose the shortest path through the system. (T/F)

F

Zoning rule/regulation is one of the top considerations in choosing a country for a facility location. (T/F)

F

________ and ________ are to key country success factors as ________ and ________ are to key region success factors.

Labor cost, currency risk; land costs, proximity to customers

Products or services designed in easily segmented components are known as ________ designs.

Modular

____________ is used to rank a company's products to determine which products represent the best use of the firm's resources, or, perhaps, to determine which products are to be eliminated.

Product-by-value analysis

A location decision for an appliance manufacturer would tend to have cost focus.(T/F)

T

Design capacity is the theoretical maximum output of a system in a given period under ideal conditions. (T/F)

T

Efficiency is actual output as a percent of design capacity. (T/F)

T

If 10 million passengers pass through the San Jose Airport with checked baggage each month, a total of 50 misplaced bags would successfully meet Six Sigma program for baggage handling. (T/F)

T

In process-focused facilities, the utilization of facilities is low. (T/F)

T

Internal failure costs are associated with scrap, rework, and downtime. (T/F)

T

Pareto charts are a graphical way of identifying the few critical items from the many less important ones. (T/F)

T

Quality circles empower employees to improve productivity by finding solutions to work-related problems in their work area. (T/F)

T

Robust design ensures that small variations in production or assembly do not adversely affect the product. (T/F)

T

Service blueprinting is a process analysis technique that focuses on the customer and the provider's interaction with the customer. (T/F)

T

The factor rating method is popular because a wide variety of factors, from education to recreation to labor skills, can be objectively included. (T/F)

T

The quality loss function identifies all costs connected with poor quality and shows how these costs increase as the product quality moves away from being exactly what the customer wants. (T/F)

T

Which of the following is true regarding value engineering?

Value engineering is oriented toward the improvement of design.

When should product strategy focus on forecasting capacity requirements?

at the growth stage

A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus?

revenue focus

According to PCN analysis, service operations exist only within the area(s) of:

surrogate interaction and direct interaction.

Which of the following is usually NOT one of the top considerations in choosing a country for a facility location?

zoning regulations