OMIS EXAM 2
Which of the following organizations used its geographic information system to create a demographic profile of what a typically successful neighborhood for its location looks like—mostly in terms of income and ages?
Carvel Ice Cream
Which of the following methods is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas?
Center-of-gravity method
What term refers to the location of competing companies near each other?
Clustering
Which of the following is NOT a tool for process analysis and design? A. Pareto chart B. flowchart C. process mapping D. process chart
Pareto chart
Low-volume, high-variety production is best suited for which of the following process strategies?
Process focus
What is a successful technique used by companies such as Ingall Ship Building Corporation to avoid some of the difficult problems producing items in fixed-position layouts?
complete as much of the project as possible offsite
In manufacturing, excess capacity can be used to
do more setups, shorten production runs, and drive down inventory costs.
What does EMV stand for?
expected monetary value
The objective of warehouse layout is to
find the optimum trade-off between handling cost and costs associated with warehouse space.
What is a drawing of the movement of material, product or people?
flowchart
Which of the following moves production to a large work cell that remains part of the present facility? Part 2 A. focused factory B. fixed-position layout C. cross-docking D. focused work center
focused work center
In acceptance sampling, the producer's risk is the risk of having a
good lot rejected.
Which of the following DOES NOT increase profit by improving quality? A. increased productivity B. improved reputation C. higher warranty costs Your answer is correct. D. flexible pricing
higher warranty costs
Which of the following approaches makes new capacity a larger increase at the beginning of the period?
leading demand with a one-step expansion
Which of the following approaches makes new capacity a larger increase at the beginning of the period? Part 2 A. lagging demand with incremental expansion B. attempts to have an average capacity that straddles demand with incremental expansion C. leading demand with incremental expansion D. leading demand with a one-step expansion
leading demand with a one-step expansion
The most aggressive and risky approach to capacity planning is
leading demand with one-step expansion.
What is a means of determining the discounted value of a series of future cash receipts?
net present value
To obtain flexibility in layout, managers may implement all EXCEPT which of the following tactics? Part 2 A. place workstations far apart B. use small equipment C. keep investments low D. cross train workers
place workstations far apart
A device or technique that ensures production of a good unit every time is a
poka-yoke.
Which of the following measures the proportion of variation (3σ) between the center of the process and the nearest specification limit?
process capability index
What is a flowchart with time added on the horizontal axis?
process mapping
What is the fundamental rethinking of business processes to bring about dramatic improvements in performance?
process redesign
Which of the following approaches is also called a "job shop?"
process-oriented layout
Which of the following approaches is also called a "job shop?" A. product-oriented layout B. work-cell layout C. process-oriented layout D. fixed-position layout
process-oriented layout
Which of the quadrants in the service process matrix has high labor intensity and high customization?
professional service
Workspace can inspire informal and productive encounters if it balances three physical and social aspects:
proximity, privacy, and permission.
Taguchi's quality loss function is based on a
quadratic equation
Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its promises?
reliability
Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its promises? A. credibility B. competence C. reliability D. responsiveness
reliability
Which of the following arranges machinery and equipment to focus on production of a single product or group of related products? Part 2 A. work-cell layout B. fixed-position layout C. process-oriented layout D. product-oriented layout
work-cell layout
Which value in an office relationship chart represents "Not desirable?"
x
Which of the following organizations used its geographic information system to create an ideal customer profile of female homeowners with families?
Jo-Ann Stores
Which of the following is an example of technology's impact on wholesale/retail trade industry? Part 2 A. automatic teller machines B. interactive TV C. automatic toll booths D. bar-coded data
bar-coded data
Managing quality helps build successful strategies of
differentiation, low cost and response.
What is the expected production for each department next quarter? Design effective capacity = 90,000 and recent efficiency = .90 Design department =
81000
What is an electronically guided and controlled cart used to move materials?
AGV
What is the percentage defective in an average lot of goods inspected through acceptance sampling?
AOQ
Which of the following statements is NOT true? A. Selection of a particular process strategy requires decisions about equipment and technology. B. The selection of equipment requires considering cost, cash flow, market stability, quality, capacity, and flexibility. C. Selecting the best equipment requires understanding the specific industry and available processes and technology. D. Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually inexpensive, but difficult.
Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually inexpensive, but difficult.
Which is the best statement regarding an operating characteristic curve?
As the AQL decreases, the producer's risk also decreases.
Which of the following is NOT one of the tasks of random stocking systems? Part 2 A. Maintaining accurate records of existing inventory and its locations. B. Maintaining a list of "open" locations. C. Sequencing items to minimize the travel time required to "pick" orders. D. Assigning certain items or classes of items to particular warehouse areas so that the total distance traveled within the warehouse is maximized.
Assigning certain items or classes of items to particular warehouse areas so that the total distance traveled within the warehouse is maximized.
Which type of control chart should be used when it is possible to have more than one mistake per item?
C Chart
Which of the following is an award for quality achievement in Japan
Deming Prize
Which of the following is NOT one of the techniques for building employee empowerment? A. Build high-morale organizations. B. Build communication networks that include employees. C. Eliminate formal organization structures such as teams and quality circles. D. Develop open,supportive supervisors
Eliminate formal organization structures such as teams and quality circles.
What is the ability to respond with little penalty in time, cost, or customer value?
Flexibility
Which of the following statements is NOT true regarding production technologies? A. Flexible manufacturing systems and computer-integrated manufacturing are increasing the distinction between low-volume/high-variety and high-volume/low-variety production. B. CNC is machinery with its own computer and memory. C. Vision systems combine video cameras and computer technology and are often used in inspection roles. D. Robots are mechanical devices that use electronic impulses to activate motors and switches.
Flexible manufacturing systems and computer-integrated manufacturing are increasing the distinction between low-volume/high-varietyand high-volume/low-variety production
What is a system that stores and displays information that can be linked to a geographic location?
GIS
Which of the following DOES NOT increase profit by improving quality? A. flexible pricing B. increased productivity C. higher warranty costs. D. improved reputation
Higher warranty costs
If one was to prepare a function map for the above identified functions and assign them between "Customer" and "Operator" then: Select the functions that will be the responsibility of the "Customer" (check all that apply): A.Instruction for color B. Pay and tip C. Approval of work done D. Buff E. Clean shoes
Instruction for color, Pay and tip, Approval of work done
Which of the following is the Japanese term used to describe continuous improvement efforts?
Kaizen
Which of the following is NOT helpful for retail layout? Part 2 A. Keep end-aisle locations empty to facilitate traffic flow. B. Distribute what are known in the trade as "power items" to both sides of an aisle. C. Locate the high-draw items around the periphery of the store. D. Use prominent locations for high-impulse and high-margin items.
Keep end-aisle locations empty to facilitate traffic flow.
Which of the following is NOT identified in the text as one of the eight major determinants of volume and revenue for the service firm? A operating policies of the firm B. competition in the area C. level of advertising expenditures D. quality of management
Level of advertising expenditures
Where is the "superhub" for FedEx located?
Memphis, Tennessee
Which of the following statements is NOT true regarding location decisions? Part 2 A. Once management is committed to a specific location, many costs become relatively easy to reduce. B. Location often has the power to make or break a company's business strategy. C. Location decisions are important because location has a major impact on the overall risk and profit of the company. D. Location decisions to support a low-cost strategy require particularly careful consideration.
Once management is committed to a specific location, many costs become relatively easy to reduce.
Which of the following statements is NOT true regarding process redesign? Part 2 A. Process redesign also focuses on those activities that cross functional lines. B. Process redesign is also called process reinvention. C. Process redesign is also called process reengineering. D. Effective process redesign works only if the basic process and its objectives are reexamined.
Process redesign is also called process reinvention.
Which of the following is NOT an example of technology's impact on the financial services industry? A. Internet stock trading B. electronic funds transfer C. RFID D. debit cards
RFID
Which of the following is NOT an example of technology's impact on the financial services industry? A. RFID Your answer is correct. B. Internet stock trading C. debit cards D. electronic funds transfer
RFID
Which of the following costs is NOT a cost of quality? A. scrap B. rework C. lost goodwill D. research and development
Research and Development
Which of the following allocates display space and responds to customer behavior?
Retail layout
Which of the following is NOT an external failure cost? A. costs to society B. scrap C. returned goods D. lost goodwill
Scrap
What is the major difference in focus between a location decision in the service sector vs. the manufacturing sector?
The focus in service is on revenue maximization, while the focus in manufacturing is on cost minimization.
Which of the following statements is NOT true regarding the importance of the role that an operations manager plays in addressing service quality? A. The manager may be able to influence the quality of the service but has little control over the customers' expectation. B. The tangible component of many services is important. C. The operations manager should realize that the customer' expectations are the standard against which the service is judged. D. Managers must expect exceptions.
The manager may be able to influence the quality of the service but has little control over the customers' expectation.
Which of the following is NOT one of the reasons that the techniques for addressing fixed-position layout are complicated? Part 2 A. Different items become critical as the project develops. B. The volume of materials needed is constant. C. There is limited space at virtually all sites. D. At different stages of a project, different materials are needed.
The volume of materials needed is constant.
Which of the following is NOT true regarding layout decisions? A. An effective layout can help an organization achieve a strategy that supports differentiation, low cost, or response. B. Layout is one of the key decisions that determines the long-run efficiency of operations. C. Layout designs need to be viewed as dynamic because of our increasingly short-life-cycle and mass-customized world. D. To obtain flexibility in layout, operations managers could keep investments high.
To obtain flexibility in layout, operations managers could keep investments high.
To provide better access and possibly reduce the number of workers needed, work cells may be designed in the shape of what letter of the alphabet?
U
In many applications, human quality inspectors can be replaced effectively by
Vision Systems
The requirements of work cells do NOT include Part 2 A. testing at each station in the cell. B. being self-contained, with its own equipment and resources. C. a high level of training and a low level of flexibility. D. identification of families of products.
a high level of training and a low level of flexibility.
Which of the following would NOT be produced or offered using a fixed-position layout? Part 2 A. a highway B. a ship C. a hospital operating room D. a hospital emergency room
a hospital emergency room
Which of the following would NOT be produced or offered using a fixed-position layout? Part 2 A. a ship B. a hospital operating room C. a highway D. a hospital emergency room
a hospital emergency room
The "A" on an office relationship chart means
absolutely necessary
Which of the following determinants of service quality means approachability and ease of contact? A. courtesy B. tangibles C. security D. access
access
A fixed-position layout
addresses the layout requirements of large, bulky, projects such as ships and buildings.
Inspections should NOT take place
after costly or irreversible processes
The book Aerotropolis describes cities that develop around which of the following?
airports
Stacked Resaurants lets customers choose ingredients for their sandwhiches using
an iPad menu.
A successful quality strategy begins with
an organizational culture that fosters quality.
Which service strategy describes separating services that may lend themselves to some type of automation?
automation
Cross-docking
avoids placing the materials or supplies in storage by processing them as they are received for shipment.
What process uses warehousing to add value to a product through component modification, repair, labeling, and packaging?
customizing
To develop a standard or benchmark, firms need to start with
determining what to benchmark.
The objective of layout strategy is to
develop an effective and efficient layout that will meet the firm's competitive requirements
Attribute inspection measures
if the product is good or bad.
Which of the following could reduce costs and increase profit? A. flexible pricing B. increased productivity C. improved reputation D. improved response
increased productivity
A product-oriented layout
is organized around products or families of similar high-volume, low variety production.
The R-chart
is used to indicate gains or losses in uniformity.
What are groups or batches of parts processed together? Part 2
job lots
Which of the following approaches may use subcontracting to accommodate excess demand? Part 2 A. leading demand with a one-step expansion B. leading demand with incremental expansion C. lagging demand with incremental expansion D. Subcontracting should never be used to accommodate excess demand.
lagging demand with incremental expansion
Which of the following is an example of ambient conditions? Part 2 A. Best Buy's wide center aisle B. Hard Rock cafe's wall of guitars C. Walmart's greeter at the door D. leather chairs at Starbucks
leather chairs at Starbucks
Which of the following is NOT identified in the text as one of the eight major determinants of volume and revenue for the service firm? Part 2 A. level of advertising expenditures B. operating policies of the firm C. quality of management D. competition in the area
level of advertising expenditures
A fast food restaurant is an example of
low customization and low degree of labor.
In process-oriented and fixed-position layouts, it is important to minimize the costs of
material handling.
The main objective of retail layout is to
maximize profitability per square foot of floor space
One hundred percent inspection
means that every part is checked to see whether or not it is defective.
Process capability
means that the natural variation of the process must be small enough to produce products that meet the standard.
Which of the following allocates display space and responds to customer behavior? A. office layout B. warehouse layout C. product-oriented layout D. retail layout
retail layout
Which of the following is NOT one of the five elements for each city that geographic information systems use to analyze location decision factors? Part 2 A. cultural and entertainment centers B. residential areas C. transportation options D. rivers, mountains, lakes, and forests
rivers, mountains, lakes, and forests
Which of the following is NOT a production technology that enhances production and productivity? A. vision systems B. process control C. service blueprinting D. automatic identification systems
service blueprinting
Which of the quadrants in the service process matrix has low labor intensity and low customization?
service factory
What is training and empowering frontline employees to solve a problem immediately?
service recovery
Which of the following terms describes the physical surroundings in which a service takes place, and how they affect customers and employees?
servicescape
The defect rate for data entry of insurance claims has historically been about 1.00%. This exercise contains only parts a, b, c, d, and e. What happens to σp when the sample size is larger? When the sample size is larger, σp is
smaller
Which of the following is NOT one of the four predictive variables in La Quinta Inn's regression model that predicts motel selection behavior and success of a site? Part 2 A. the location of nearby colleges B. the number of hotel rooms in the vicinity C. median income levels D. the state population per inn
the number of hotel rooms in the vicinity
Which of the following is a requirement to be able to compute expected monetary value? Part 2 A. each state of nature is equally likely to occur B. the probability of each decision alternative is known C. the probability of each state of nature is known D. each decision alternative needs at least two states of nature
the probability of each state of nature is known
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.
Which of the following is NOT one of the three seating sections that McDonald's is creating in its redesigned restaurants? Part 2 A. the "linger" zone B. the "family" zone C. the "flexible" zone D. the "grab and go" zone
the "family" zone
In companies such as Intel, what is the PRIMARY motivation behind the trend of shrinking office space and lower cubicle walls for individuals?
to get people to work more in groups
Which of the following techniques might a service or retail organization use to make a location decision? Part 2 A. locational cost-volume analysis B. crossover charts C. traffic counts D. transportation method
traffic counts
A goods-producing location decision would likely emphasize the importance of which of the following?
utility and labor costs