MGT325 OP MGMT Exam 1 (ch: 1-5)

The fundamental purpose for the existence of any organization is described by it's:

mission statement

Outsourcing some production is a means of ________ a capacity constraint

overcoming

The ratio of actual output to design capacity is:

Utilization

Which of the following would be least important in the pursuit of a time-based strategy?

cost minimization

Which of the following is an example of a postponement tactic?

delayed differentiation

Which of the following is a primary input into capacity, sales, and production planning?

demand forecasts

For firms competing in worldwide markets, conducting _____ is much more complex, since what works in one country or region might not work in another.

environmental analysis

Measurements taken at various points in the transformation process for control purposes are called:

feedback

One way to increase reliability is to:

improve component design

Businesses consist of three major functional areas:

Marketing, Finance, and Operations

The ratio of actual output to effective capacity is:

Efficiency

Which of the following is not a step in the forecasting process?

Eliminate all assumptions

Capacity decisions are usually one-time decisions, once they have been made we know the limits of our operations.

False

Increasing capacity right before a bottleneck operation will improve the output of the process

False

Mission statements should be as specific as possible regarding how exactly they will be accomplished

False

Modular design increases the costs of purchasing and controlling inventory compared to non-modular design

False

Once accepted by managers, forecasts should be held firm regardless of new input since many plans have been made using the original forecast

False

One of the main advantages of standardization is that it increases the potential variety of products

False

Stating capacity in dollar units generally results in a consistent measure of capacity regardless of the actual units of measure

False

Putting forecast errors into perspective is best done using:

MAPE

Which of these pairs of functions would tend to be affected most by a product or service redesign?

Marketing and Operations

Which of the following is the case where capacity is measured in terms of inputs?

Number of seats that can be filled per day on an airline route

Managing the supply chain has become more difficult because of firms increasing their levels of:

Outsourcing

Two general approaches to forecasting are:

Qualitative and quantitative

The three R's are:

Reduce, Reuse, Recycle

Where a firm locates would not typically affect that firm's:

Strategy

A seasonal relative is expressed as a percentage of average or trend

True

An example of a strategic operations management decision is where to locate

True

An example of an operational operations management decision is inventory level management

True

An example of tactical operations management decision is determining employment levels

True

Design capacity refers to the maximum output rate that can be achieved under ideal conditions

True

Forecasting techniques generally assume an existing causal system that will continue to exist in the future

True

Product failures can be easier to remedy with modular design

True

Reliability refers to the ability of a product to perform its intended function under normal conditions

True

Standardization refers to the extent to which there is absence of variety in a product, service, or process

True

The purpose of the forecast should be established first so that the level of detail, amount of resources, and accuracy level can be understood.

True

The shorter the forecast period, the more accurately the forecasts tend to track what actually happens

True

The term capacity refers to the maximum quantity an operating unit can process over a given period of time

True

Operations managers are responsible for:

assessing customer wants and needs and selling and promoting the organization's goods or services

Designing for recycling helps facilitate:

compliance with regulatory environments

When choosing a forecasting technique, a critical trade-off that must be considered is between:

cost and accuracy

Supplying operations with parts and materials, performing work on products, and/or performing services are part of the firm's:

internal supply chain

Which of the following is not a key factor of competitiveness?

size of organization