MANG3402 Operations Management HW questions
The expected value of perfect information is the same as the expected value with perfect information.
False
The expected value with perfect information assumes that all states of nature are equally likely.
False
which of the following is the best example of competing on low-cost leadership?
a firm produces its product with less raw material waste than its competitors do
Which of the statements below best describes office layout?
positions workers, their equipment, and spaces/offices to provide for movement of information
Operations management is applicable:
to all firms, whether manufacturing or service
Balancing low-cost storage with low-cost material handling is important in which of the following?
warehouse layout
Which of the following is NOT a retail layout practice?
All of the above are retail layout practices (locate the high-draw items around the periphery of the store, use end-aisle locations to maximize product exposure, use prominent locations for high-impulse and high-margin items, distribute power items throughout the store)
which of the following is a qualitative forecasting method?
Delphi method
"Making it right the first time" is the focus of the user-based definition of quality.
False
An improvement in quality must necessarily increase costs.
False
Conforming to standards is the focus of the product-based definition of quality.
False
Customer interaction is often high for manufacturing processes, but low for services.
False
Henry Ford is known as the Father of Scientific Management.
False
If a decision maker can assign probabilities of occurrences to the states of nature, then the decision-making environment is Decision Making under Uncertainty.
False
In trend projection, a negative regression slope is mathematically impossible.
False
Regression lines graphically depict "cause-and-effect" relationships.
False
Which of the following are among the 10 strategic operations management decisions? I. design of goods and services II. managing quality III. layout strategy IV. marketing V. pricing of goods and services
I, II, III
Which is not true regarding differences between goods and services?
Tangible goods are generally produced and consumed simultaneously; services are not.
All organizations, including service firms such as banks and hospitals, have a production function.
True
An example of a "hidden" production function is the transfer of funds between accounts at a bank.
True
Internal failure costs are associated with scrap, rework, and downtime.
True
One guideline for determining the arrangement and space allocation of a retail store is to place high-impulse and high-margin items in prominent locations.
True
Operations management is the set of activities that creates value in the form of goods and services by transferring inputs into outputs.
True
Servicescape refers to the physical surrounding in which the service is delivered.
True
Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements.
True
The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process, product, or service capability; the other is a comprehensive system for achieving and sustaining business success.
True
A strategy is
an action plan to achieve a mission
ABC analysis divides an organization's on-hand inventory into three classes based upon
annual dollar volume
Demand for a certain product is forecast to be 800 units per month, averaged over all 12 months of the year. The product follows a seasonal pattern, for which the January monthly index is 1.25. What is the seasonally-adjusted sales forecast for January?
800*1.25= 1,000 units
The service sector makes up approximately what percentage of all jobs in the United States?
85%
A fishbone chart is also known as:
A cause-and-effect diagram
Which of the following is a similarity between goods and services?
Both have quality standards
The process improvement technique that sorts the vital few from the trivial many is:
Pareto analysis
What is the primary reason why retailers tend to locate high-draw items around the periphery of the store?
This arrangement will help to maximize customer exposure to other items in the store.
demand forecasts serve as inputs to financial, marketing, and personnel planning.
True
production processes are being disbursed to take advantage of national differences in labor costs.
True
Total quality management emphasizes:
a commitment to quality that goes beyond internal company issues to suppliers and customers
Competing on cost is
achieving maximum value as perceived by the customer
Inspections should NOT take place
after costly or irreversible processes
Branch banks want to serve customers with more technology in less space to
all of the above (avoid going the way of Blockbuster, slash expenses, and more closely resemble an Apple store)
cost cutting in international operations can take place because of:
all of the above (less stringent regulations, lower taxes and tariffs, lower indirect costs, lower wage scales)
A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include:
all of the above (suppliers, owners, lenders, employees)
"Souped up" ATM kiosks
are safer than traditional ATMs
which of the following is not a reason why domestic business operations decide to change to some form of international operation?
attract and retain local talent
which of the following is least likely to be a low-cost leadership competitive advantage?
broad product line
A problem that involves a sequence of decisions
can be better analyzed with a decision tree than by a decision table
Which of the TQM tools would be best suited for determining why a student's course registration is never correct?
cause-and-effect diagram
The creation of a unique advantage over competitors is referred as
competitive advantage
Competing on differentiation is
concerned with uniqueness
GE's recall of 3.1 million dishwashers cost the company more in repairs than the value of the actual dishwashers. This is an example of which quality principle?
cost of poor quality is underestimated
As compared to long-range forecasts, short-range forecasts:
deal with less comprehensive issues supporting management decisions
cost minimization is an appropriate strategy in which stage of the product life cycle?
decline
The fundamental purpose of an organization's mission statement is to:
define the organization's purpose in society
which of the following is the first step in a forecasting system?
determine the use of the forecast
To develop a standard or benchmark, firms need to start with
determining what to benchmark
The objective of layout strategy is to
develop an efficient and effective system that meets competitive requirements
Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are all:
elements of servicescapes.
which of the following is not one of the techniques for building employee empowerment?
eliminate formal organization structures such as teams and quality circles
The objective of warehouse layout is to
find the optimum trade-off between handling cost and costs associated with warehouse space.
cause-and-effect diagrams are also known as
fish-bone charts
Which of the following statements is incorrect regarding globalization and globalization strategies?
globalization strategies could simplify the operations manager's job
Which of the following TQM tools would be best suited for displaying the number of students majoring in each business discipline?
histogram
which of the following OM strategy/issues should a firm with a product in the maturity stage of its life cycle be at least concerned with at the present time?
increase capacity
which of the following could reduce costs and increase profit?
increased productivity
Which of the following does NOT belong to ordering costs?
interest payments
Which appears to provide the best opportunity for increases in productivity?
management
A product-oriented layout
is organized around products or families of similar high-volume, low variety production.
Three commonly used productivity variables are:
labor, capital, management
Which of the following is an example of ambient conditions?
leather chairs at Starbucks
Which of the following trends is not part of the exciting OM challenges currently facing operations managers?
local focus
which of the following is not an OM strategy/issue during the introduction stage of the product life cycle?
long production runs
Which of these is not one of the 10 strategic OM decisions?
marketing
which of the following is not one of the 10 strategic operations management decisions?
mass customization
The "four M's" of cause-and-effect diagrams are:
material, machinery/equipment, manpower, and methods
The main goal of retail layout is:
maximizing profitability per square foot of floor space
A forecast with a time horizon of about three months to three years is typically called a
medium-range forecast
Generally the goal of assembly line balancing is to
minimize imbalance between machines or personnel while meeting a required output from the line.
Which of the following is the purpose or rationale for an organization's existence?
mission
Policies based on ABC analysis might include investing
more in supplier development for A items
Bank customers want
more simplicity
which forecasting method considers several variables that are related to the variable being predicted?
multiple regression
which of the following is not a time-series model?
multiple regression
The two general approaches to forecasting are:
qualitative and quantitative
which of the following is not an OM strategy/issue during the growth stage of the product life cycle?
reduced capacity
Which of the following costs is not a cost of quality?
research and development
Which of the following activities at an airline is not an operations activity?
sales
which of the following forecasting steps comes directly after determining the time horizon of the forecast?
selecting the forecasting model(s)
Which of the following terms describes the physical surroundings in which a service takes place, and how they affect customers and employees?
servicescape
The forecasting time horizon that would typically be easiest to predict for would be the
short range
Banks of the future will be
smaller
Which of the following is not a characteristic of services?
standardized product
The objective of inventory management is to
strike a balance between inventory investment and customer service
Productivity measurement is complicated by:
the fact that precise units of measure are often unavailable
"Today's forecast equals yesterday's actual demand" is referred as
the naive approach
The American Society for Quality defines quality as
the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
linear regression is most similar to which of the following?
the trend projection method of forecasting
which of the following statements about organizational missions is false?
they are formulated after strategies are known
If Brandon Edward were working to develop a forecast using a moving averages approach, but he noticed a detectable trend in the historical data, he should:
use weights to place more emphasis on recent data
Three broad categories of definitions of quality are
user based, manufacturing based, and product based
Which of the following arranges machinery and equipment to focus on production of a single product or group of related products?
work-cell layout