MGMT 330 Exam 1

The theory of competitive advantage implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can. True False

F

The theory of comparative advantage implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can.

T

Productivity is generally more difficult to improve in the service sector than in the manufacturing sector. True or False

True

Which of the following is one of the 10 strategic operations management decisions? A) advertising B) debt/equity ratio C) depreciation policy for tax returns D) process and capacity strategies E) pricing

D

An effective operations management effort must have a strategy so it knows where it is going and a mission so it knows how to get there. True False

F

Every network has at most one critical path. True False

F

In the product life cycle, the best stage to increase market share is maturity. True False

F

Lean manufacturing means designing green products and packaging that minimize resource use, can be recycled or reused, and are generally environmentally friendly. True False

F

NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia. True False

F

SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats. True False

F

Shewhart's contributions to operations management came during the Scientific Management Era. True False

F

Technology combined with rapid international communication of news, entertainment, and lifestyles is dramatically increasing the life span of products. True False

F

The PERT pessimistic time estimate is an estimate of the minimum time an activity will require. True False

F

The critical path can be determined by use of either the "forward pass" or the "backward pass." True False

F

The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function.

F

Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 1920 valves per shift, labor productivity will increase by: A) 17%. B) 20%. C) 40%. D) 25%. E) 50%.

(B) 20%

The purchasing function is concerned with: A) securing monetary resources. B) producing goods or providing services. C) generating the demand for the organization's products or services. D) procuring materials, supplies, and equipment. E) building and maintaining a positive image.

(D) Procuring materials, suplies, and equipment

Which of the following is NOT a strategic operations management decision? A) maintenance B) inventory C) layout D) quality E) price

(E) Price

Which of the following is NOT one of the phases of project management? A) scheduling B) budgeting C) controlling D) planning E) All of these are project management phases.

B

A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity decreases by 20% due to a process change, it would then be: A) 9.6 covers/hr. B) 144 covers/hr. C) 11.8 covers/hr. D) 14.4 covers/hr. E) 96 covers/hr.

A

An operations manager is performing a factor-rating analysis to help her choose an outsourcing provider. She is focusing on three factors: A, B, and C, with weights of .30, .20, and .50, respectively. She has scored one potential outsourcer, Ling Services, on each of the factors using a scale of 10-50. Ling Services received a score of 30 for factor A, 46 for factor B, and 22 for factor C. What is the factor-rating score for Ling Services? A) 29.2 B) 98.0 C) 21.8 D) 32.7 E) 30.8

A

Which of the following fosters specialization and worldwide supply chains? A) instant communication B) more expensive transportation C) economies of scope D) high trade tariffs E) managers with a broad knowledge of many things

A

Which of the following statements about Bechtel is TRUE? A) Bechtel is the world's premier manager of massive construction and engineering projects. B) Bechtel's competitive advantage is supply chain management. C) While its projects are worldwide, its network of suppliers is largely in the United States D) Even though Bechtel is over 100 years old, the Kuwaiti oil fields was its first "project." E) All of these are true.

A

Which of the following statements is most correct? A) KSFs are often necessary, but not sufficient for competitive advantage. B) KSFs are both necessary and sufficient for competitive advantage. C) KSFs are often sufficient, but not necessary for competitive advantage. D) KSFs are neither necessary nor sufficient for competitive advantage. E) None of these statements are correct.

A

Which of the following statements regarding PERT times is true? A) The expected time estimate is calculated as t = (a + 4m + b)/6. B) The optimistic time estimate is an estimate of the maximum time an activity will require. C) The pessimistic time estimate is an estimate of the minimum time an activity will require. D) The expected time is an estimate of the time an activity will require if everything goes as planned. E) The most likely time estimate is an estimate of the maximum time an activity will require.

A

Which of the following statements regarding critical paths is TRUE? A) On a specific project, there can be multiple critical paths, all with exactly the same duration. B) Some activities on the critical path may have slack. C) The shortest of all paths through the network is the critical path. D) The duration of the critical path is the average duration of all paths in the project network. E) Every network has only one critical path.

A

Which of the international operations strategies uses import/export or licensing of existing products? A) international strategy B) multidomestic strategy C) worldwide strategy D) transnational strategy E) global strategy

A

Which of the international operations strategies uses the existing domestic model globally?

A

A project organization: A) is appropriate only in construction firms. B) is effective for companies with multiple large projects. C) is most helpful for ongoing projects with no termination date. D) often fails when the project cuts across organizational lines. E) is most helpful when the work contains simple and unrelated tasks.

B

Illiteracy and poor diets have been known to cost countries up to what percent of their productivity? A) 5% B) 20% C) 50% D) 2% E) 10%

B

The purpose of NAFTA is to: A) provide fair and equitable tariff rates for trade between the United States, Canada, and Mexico. B) phase out all trade and tariff barriers between the United States, Canada, and Mexico. C) phase out all trade and tariff barriers between North America and South America. D) curb illegal immigration from Mexico to the United States. E) substitute cheap labor in Mexico for expensive labor in the United States.

B

Walter Shewhart is listed among the important people of operations management because of his contributions to: A) assembly line production. B) statistical quality control. C) information technology. D) measuring productivity in the service sector. E) just-in-time inventory methods.

B

A PERT project has 45 activities, 19 of which are on the critical path. The estimated time for the critical path is 120 days. The sum of all activity variances is 64, while the sum of variances along the critical path is 36. What is the probability that the project can be completed between days 114 and 120? A) 0.47725 B) 0.27337 C) 0.34134 D) 0.22663 E) 0.84134

C

Current challenges in operations management include all of the following EXCEPT: A) mass customization. B) lean operations. C) increased communication cost. D) sustainability. E) rapid product development.

C

Internet of Things is associated with which operations management time period? A) Just-In-Time Focus B) Customization Focus C) Globalization Focus D) Quality Focus E) Cost Focus.

C

Which of the following is NOT an example of competing on the basis of differentiation? A) A firm offers a much broader product line than its competitors do. B) A movie theater distinguishes itself by offering cinema suites and dine-in options. C) A firm advertises more than its competitors do. D) A firm designs its smart phone product with unique features. E) A car manufacturer offers the best warranty in the automobile industry.

C

Which of the following projects was NOT completed by Bechtel? A) Channel Tunnel B) Boston Central Artery/Tunnel C) Getty Center D) Trans-Arabian Pipeline E) Hoover Dam

C

Which of these statements regarding time-cost tradeoffs in CPM networks is TRUE? A) The crash time always exceeds the normal time. B) Crashing is possible even if there are multiple critical paths. C) Crashing shortens the project duration by assigning more resources to one or more of the noncritical tasks. D) Crashing a project often reduces the length of long-duration, but noncritical, activities. E) Activities not on the critical path can never be on the critical path, even after crashing.

C

A project being analyzed by PERT has 38 activities, 16 of which are on the critical path. If the estimated time along the critical path is 90 days with a project variance of 25, what is the probability that the project will be completed in 88 days or less? A) 0.65542 B) 0.02275 C) 0.34458 D) 18 E) 0.97725

C)

Henry Ford and ________ are credited with the development of the moving assembly line.

Charles Sorensen

A project organization that becomes permanent is often referred to as a: A) fixed project organization. B) permanent project organization. C) normal organization. D) matrix organization. E) standard organization.

D

An operations manager is performing a factor-rating analysis to help him choose an outsourcing provider. He is focusing on two factors: A and B, using a weight of 75% for factor A and 25% for factor B. He has scored five different potential providers on both factors, using a scale of 1-5, with 1 representing the BEST score. Based on the scores provided in the table below, which provider should be chosen?ProviderFactor AFactor BAlpha15Beta33Gamma41Phi-31Omega35 A) Beta B) Omega C) Phi D) Alpha E) Gamma

D

Boeing's new 787 Dreamliner: A) is assembled in Washington, D.C. B) has its fuselage sections built in Australia. C) results from a partnership of about a dozen companies. D) has increased efficiency from new engine technology. E) uses engines from Japan.

D

Response-based competitive advantage can be: A) flexible response. B) quick response. C) reliable response. D) all of these. E) none of the these.

D

Standardization is an appropriate strategy in which stage of the product life cycle? A) introduction B) retirement C) growth D) maturity E) decline

D

The beta distribution is used in project management to: A) calculate expected activity times. B) calculate the probability that a project will be completed within its budget. C) determine which activity should be crashed. D) calculate slack for activities on the critical path. E) none of these.

D

Agile project management is a type of work breakdown structure (WBS). True False

F

Which of the following statements regarding the Dreamliner 787 is NOT true? A) The new aircraft incorporates a wide range of aerospace technologies. B) Boeing has found partners in over a dozen countries. C) The new aircraft uses engines from not one, but two manufacturers. D) Boeing is only sourcing 787 components from suppliers in countries that have agreed not to purchase planes from Airbus. E) Boeing's enormous global supply chain delivers more than a billion parts and subassemblies to Boeing plants every year.

D

At Hard Rock Café, tasks that reflect operations or operations management include: A) providing meals. B) designing efficient layouts. C) receiving ingredients. D) preparing effective employee schedules. E) all of these.

E

In project management, crashing an activity must consider the impact on all paths in the network. True False

T

The expected activity time in PERT analysis is calculated as: A) the sum of the optimistic, pessimistic, and most likely times. B) the simple average of the optimistic, pessimistic, and most likely times. C) the sum of the optimistic, pessimistic, and most likely times, divided by six. D) the sum of the activity variances, divided by six. E) the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b.

E

The marketing function is concerned with: A) generating the demand for the organization's products or services. B) securing monetary resources. C) building and maintaining a positive image. D) procuring materials, supplies, and equipment. E) producing goods or providing services.

E

Which of the following represents a reason for globalizing operations? A) to attract and retain global talent B) to improve operations C) to expand a product's life cycle D) to improve the supply chain E) all of these

E

Which of the following statements regarding time-cost tradeoffs in CPM networks is FALSE? A) A negative crash cost per period would imply that either crashing is cheaper than not crashing or that the crash time was slower than the normal time. B) Activities not on the critical path can become critical after crashing takes place. C) Crashing shortens project duration by assigning more resources to critical tasks. D) Crashing must consider the impact of crashing an activity on all paths in the network. E) Crashing sometimes has the reverse result of lengthening the project duration.

E

A product will always be in the same stage of its product life cycle regardless of the country. True False

F

A(n) ________ is an organization formed to ensure that programs (projects) receive the proper management and attention. Answer:Project Organization

Project Organization

The ________ is how an organization expects to achieve its missions and goals.

Strategy

Competition in the 21st century is no longer between companies; it is between supply chains. True False

T

In PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time. True False

T