Operations Management Final
What is the circular economy? A)It is about keeping and using resources for as long as possible and then recovering and regenerating to the maximum possible value at the end of service life. B)It refers to the ups and downs in an economic cycle. C)It means that social and environmental sustainability do not exist without economic sustainability. D)It refers to how companies remain in business. E)It refers to the resources held in the common.
A)It is about keeping and using resources for as long as possible and then recovering and regenerating to the maximum possible value at the end of service life.
Management and labor share the labor cost reductions in which of these compensation schemes? A)Scanlon plan B)Gilbreth plan C)measured day work plan D)bonus system E)quota system
A)Scanlon plan
"The employee cannot produce products that on average exceed the quality of what the process is capable of producing" expresses a basic philosophy in the writings of: A)W. Edwards Deming. B)Armand Feigenbaum. C)Joseph M. Juran. D)Philip B. Crosby. E)Vilfredo Pareto.
A)W. Edwards Deming.
Which of the following is an example of an external product development strategy? A)alliances B)new internally developed products C)migrations of existing products D)enhancements to existing products E)All of these are examples of internal product development strategy.
A)alliances
Which of the statements below best describes retail layout? A)allocates shelf space and responds to customer behavior B)positions workers, their equipment, and spaces/offices to provide for movement of information C)seeks the best personnel and machine utilization in repetitive or continuous production D)deals with low-volume, high-variety production E)addresses the layout requirements of large, bulky projects such as ships and buildings
A)allocates shelf space and responds to customer behavior
Labor standards are defined as the: A)amount of time required to perform a job or part of a job. B)standard labor agreements. C)standard set of procedures to perform the job. D)amount of space required by a specific crew to perform the job. E)preset activities required to perform a job.
A)amount of time required to perform a job or part of a job.
A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision. A)appearance/image of the location B)transportation costs C)cost of raw materials D)quality of life E)taxes
A)appearance/image of the location
A restaurant kitchen contains a wall poster that shows, for each sandwich on the menu, a sketch of the ingredients and how they are arranged to make the sandwich. This is an example of a(n): A)assembly drawing. B)work order. C)bill of material. D)route sheet. E)assembly chart.
A)assembly drawing.
Enterprise resource planning (ERP): A)automates and integrates the majority of business processes. B)does not integrate well with functional areas other than operations. C)is inexpensive to implement. D)seldom requires software upgrade or enhancement. E)all of these
A)automates and integrates the majority of business processes.
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)benchmarking. B)copycatting. C)patent infringement. D)employee empowerment. E)continuous improvement.
A)benchmarking.
Effective capacity is the: A)capacity a firm expects to achieve given the current operating constraints. B)maximum output of a system in a given period. C)minimum usable capacity of a particular facility. D)average output that can be achieved under ideal conditions. E)sum of all of the organization's inputs.
A)capacity a firm expects to achieve given the current operating constraints.
A successful TQM program incorporates all EXCEPT which of the following? A)centralized decision-making authority B)employee involvement C)benchmarking D)JIT E)continuous improvement
A)centralized decision-making authority
Which of the following represents a common way to manage capacity in the service sector? A)changes in staffing levels B)reservations C)first-come, first-served service rule D)"early bird" specials in restaurants E)appointments
A)changes in staffing levels
Cycle time is computed as: A)daily operating time divided by the scheduled output. B)desired output divided by the daily operating time. C)daily operating time divided by the product of desired output and the sum of job times. D)the product of desired output and the sum of job times divided by daily operating time. E)1.00 minus station time.
A)daily operating time divided by the scheduled output.
Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are all: A)elements of servicescapes. B)indicators of imbalance on an assembly line. C)elements of successful office layouts. D)elements of customization in a warehouse layout. E)indicators that cross-docking has been successful.
A)elements of servicescapes.
Corporate social responsibility involves managerial decision making that considers what three impacts? A)environmental, societal, and financial B)educational, environmental, and societal C)environmental, legal, and societal D)societal, legal, and financial E)environmental, legal, and financial
A)environmental, societal, and financial
The two most basic policies associated with employment stability are: A)follow demand exactly and hold employment constant. B)incentive plans and piece-rate plans. C)employment for life and guaranteed minimum wage. D)full-time and part-time. E)job enrichment and job enlargement.
A)follow demand exactly and hold employment constant.
Which of the following is NOT a key direct benefit from effective internal or external scheduling? A)higher quality B)added flexibility C)more dependable delivery D)lower cost E)greater use of assets
A)higher quality
Methods analysis focuses on: A)issues such as the movement of individuals or material. B)evaluating training programs to see if they are efficient. C)reducing the number of skills needed for the completion of a task. D)the design of the machines used to perform a task. E)establishing time standards.
A)issues such as the movement of individuals or material.
Which of the following phrases best describes process focus? A)low volume, high variety B)high fixed costs, low variable costs C)low inventory D)Operators are less broadly skilled. E)Finished goods are usually made to a forecast and stored.
A)low volume, high variety
Industrial location analysis typically attempts to: A)minimize costs. B)avoid countries with strict environmental regulations. C)ignore exchange rates and currency risks. D)focus more on human resources. E)maximize sales.
A)minimize costs.
If a sample of parts is measured and the mean of the measurements is outside the control limits, the process is: A)out of control and the process should be investigated for assignable variation. B)within the established control limits with only natural causes of variation. C)in control, but not capable of producing within the established control limits. D)monitored closely to see if the next sample mean will also fall outside the control limits. E)None of these.
A)out of control and the process should be investigated for assignable variation.
A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus? A)revenue focus B)labor focus C)environmental focus D)education focus E)cost focus
A)revenue focus
Which of the following are all strategies for improving productivity in services? A)separation, self-service, automation, and scheduling B)reduce inventory, reduce waste, reduce inspection, and reduce rework C)high interaction, mass customization, service factory, and just-in-time D)lean production, strategy-driven investments, automation, and process focus E)process focus, repetitive focus, product focus, and mass customization focus
A)separation, self-service, automation, and scheduling
An assembly drawing: A)shows an exploded view of the product. B)lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material. C)shows, in schematic form, how the product is assembled. D)describes the dimensions and finish of each component. E)provides detailed instructions on how to perform a given task.
A)shows an exploded view of the product.
Sequencing (or dispatching): A)specifies the order in which jobs should be done at each center. B)assigns dates to specific jobs or operations steps. C)assigns workers to jobs. D)assigns jobs to work centers. E)assigns workers to machines.
A)specifies the order in which jobs should be done at each center.
Break-even analysis can be used by a firm that produces more than one product, but: A)the break-even point depends upon the proportion of sales generated by each of the products. B)the results are estimates, not exact values. C)each product has its own break-even point. D)the firm must allocate some fixed cost to each of the products. E)None of these statements is true.
A)the break-even point depends upon the proportion of sales generated by each of the products.
Flow time represents the time: A)to complete an order, including time spent in processing and in waiting. B)an order spends being processed at a work center. C)an order spends waiting for processing at a work center. D)an order spends moving from one work center to another. E)none of the these
A)to complete an order, including time spent in processing and in waiting.
Based on his 14 Points, Deming is a strong proponent of: A)training and knowledge. B)inspection at the end of the production process. C)looking for the cheapest supplier. D)an increase in numerical quotas to boost productivity. E)all of these.
A)training and knowledge.
Which of the following is most likely to affect the location strategy of a manufacturing firm? A)utility costs B)parking availability C)appearance/image of the area D)competition in the area E)purchasing power of drawing area
A)utility costs
Which of the following statements regarding MRP in services is TRUE? A)MRP is for manufacturing only, and it is not applicable to services. B)Services such as restaurant meals illustrate dependent demand, and they require product structure trees, bills-of-material, and scheduling. C)MRP only works in services for demand that is independent. D)MRP can be used in services, but only in those that offer very limited customization. E)None of these is true.
B) Services such as restaurant meals illustrate dependent demand, and they require product structure trees, bills-of-material, and scheduling.
What is one of the tools that is particularly useful in reducing system nervousness in an MRP system? A)modular bills B)time fences C)lot sizing D)closed loop system E)time phasing
B) Time fences
A product-focused process is commonly used to produce: A) low-variety products at either high- or low-volume. Correct Answer B) high-volume, low-variety products. C) low-volume, high-variety products. D) high-volume products of either high- or low-variety. E) high-volume, high-variety products.
B) high-volume, low-variety products.
Which of the following is FALSE regarding repetitive processes? A)They use modules. B)They allow easy switching from one product to the other. C)They include the assembly of basically all automobiles. D)They have more structure and less flexibility than a job shop layout. E)They are the classic assembly lines.
B)They allow easy switching from one product to the other.
Currency risk is based on what assumption? A)Firms that do not continuously innovate will lose market share. B)Values of foreign currencies continually rise and fall in most countries. C)The value of one dollar today is greater than the value of one dollar to be received one year from now. D)The U.S. stock market fluctuates daily. E)Changing product lines by reacting to every current trend may alienate the customer base
B)Values of foreign currencies continually rise and fall in most countries.
One of the elements of ergonomics is: A)assembly line balancing. B)analyzing human motions and efforts. C)the establishment of time standards. D)allocating work time based on economic studies. E)the cost justification of technology.
B)analyzing human motions and efforts.
In time studies, normal time is: A)converted to standard time by the performance rating factor. B)average observed time multiplied by a performance rating factor. C)determined by historical experience. D)one hour later during the summer months. E)larger than standard time.
B)average observed time multiplied by a performance rating factor.
Which of the following costs would be incurred even if no units were produced? A)transportation costs B)building rental costs C)purchasing costs D)raw material costs E)direct labor costs
B)building rental costs
The correct sequence from longest to smallest duration scheduling is: A)master schedule, capacity planning, aggregate planning, short-term scheduling. B)capacity planning, aggregate planning, master schedule, short-term scheduling. C)master schedule, aggregate planning, capacity planning, short-term scheduling. D)aggregate planning, capacity planning, master schedule, short-term scheduling. E)capacity planning, master schedule, aggregate planning, short-term scheduling.
B)capacity planning, aggregate planning, master schedule, short-term scheduling.
Which of the following methods best considers intangible costs related to a location decision? A)center-of-gravity method B)factor-rating method C)crossover methods D)locational cost-volume analysis E)the transportation method
B)factor-rating method
Service blueprinting: A)provides the basis to negotiate prices with suppliers. B)focuses on the provider's interaction with the customer. C)determines the best time for each step in the process. D)mimics the way people communicate. E)uses the schematic of a house to diagram a service process.
B)focuses on the provider's interaction with the customer.
Advances in technology: A)have failed to change the level of customer interaction with an organization. B)have had a dramatic impact on customer interaction with services and with products. C)have had only a limited impact on services. D)have dramatically changed health care, but have not changed retailing. E)have impacted the manufacturing sector only.
B)have had a dramatic impact on customer interaction with services and with products.
Four of the components of job design are: A)labor specialization and enrichment, motivation and incentive systems, employment stability, and work sampling. B)job specialization, job expansion, psychological components, and self-directed teams. C)ergonomics and work methods, method time measurement, work schedules, and incentive systems. D)labor specialization, time studies, work sampling, and pre-determined time standards. E)employment stability, work schedules, work sampling, and motivation & incentive systems.
B)job specialization, job expansion, psychological components, and self-directed teams.
The reason fast-food restaurants often are found in close proximity to each other is: A)availability of skilled labor. B)location clustering near high traffic flows. C)they enjoy competition. D)low cost. E)all of these.
B)location clustering near high traffic flows.
Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched? A)first-come, first-served rule B)lower resort hotel room prices on Wednesdays C)appointments D)reservations E)none of these
B)lower resort hotel room prices on Wednesdays
Reducing the complexity of a product and improving a product's maintainability are activities of: A)organizing for product development. B)manufacturability and value engineering. C)product lifecycle management (PLM). D)design for destruction (DFD). E)product-by-value analysis.
B)manufacturability and value engineering.
Which of the following is a service design technique used to increase service efficiency? A)expand the options B)modularize C)early customization D)all of these E)none of these
B)modularize
What is the objective of scheduling? A)minimize lead time B)prioritize and allocate demand to available facilities C)minimize response time D)minimize cost E)maximize quality
B)prioritize and allocate demand to available facilities
Three of the four types of processes are: A)manual, automated, and service. B)process focus, repetitive focus, and product focus. C)input, transformation, and output. D)modular, continuous, and technological. E)goods, services, and hybrids.
B)process focus, repetitive focus, and product focus.
Mutual trust is: A)when employees have gained the trust of management. B)reflected in reasonable, documented employment policies that are honestly and equitably implemented to the satisfaction of both management and employee. C)when management has gained the trust of the employees. D)when management and the employees both agree on common objectives. E)when management recognizes that the employees are competent, motivated people both able and willing to perform at the level required to produce a quality product.
B)reflected in reasonable, documented employment policies that are honestly and equitably implemented to the satisfaction of both management and employee.
The crossover point is that production quantity where: A)total costs equal total revenues for a process. B)total costs for one process equal total costs for another process. C)variable costs of one process equal the variable costs of another process. D)fixed costs of a process are equal to its variable costs. E)the process no longer loses money.
B)total costs for one process equal total costs for another process.
Which of the following lot-sizing techniques results in the lowest holding costs? A)EOQ B)the quantity discount model C)lot-for-lot D)POQ E)Wagner-Whitin algorithm
C) Lot-for-lot
Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor? A)Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances. B)Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source. C)Few people will travel out of state for a routine haircut. D)Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. E)Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers.
C)Few people will travel out of state for a routine haircut.
Which of the following is one of the four principles of bottleneck management? A)Increasing capacity at bottleneck stations is a mirage. B)Increased non-bottleneck capacity is increased system capacity. C)Release work orders to the system at the bottleneck's capacity pace. D)Lost time at a non-bottleneck is lost system capacity. E)Bottlenecks should be moved to the end of the system process.
C)Release work orders to the system at the bottleneck's capacity pace.
What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? A)There will be less congestion of customers than there would be in the middle. B)More shelf space for those popular items is available around the periphery. C)This arrangement will help to maximize customer exposure to other items in the store. D)It is easier to put large advertisement signs on the outside walls right next to the items. E)This arrangement allows customers to travel through the store as quickly as possible.
C)This arrangement will help to maximize customer exposure to other items in the store.
The fixed-position layout would be MOST appropriate in which of the following settings? A)a doctor's office B)a fast-food restaurant C)a cruise ship assembly facility D)a washing machine assembly line E)a casual dining restaurant
C)a cruise ship assembly facility
What refers to looking at a product's life from design to disposal, including all the resources required? A)shared value B)the commons C)a systems view D)carbon footprint E)the triple bottom line
C)a systems view
A location decision for an appliance manufacturer would tend to have what type of focus? A)environmental focus B)revenue focus C)cost focus D)focus on finding very highly skilled technicians E)education focus
C)cost focus
The goal of inspection is to: A)correct system deficiencies. B)add value to a product or service. C)detect a bad process immediately. D)correct deficiencies in products. E)all of these
C)detect a bad process immediately.
Value analysis takes place: A)during the initial stages of production when something needs to be done to assure product success. B)when the product is selected and designed. C)during the production process when it is clear that the new product is a success. D)when the product is first conceived. E)when the product cost is very low.
C)during the production process when it is clear that the new product is a success.
Working four shifts of ten hours each instead of five shifts of eight hours each is known as which of the following? A)part-time status B)constant employment C)flexible workweek D)flexwork E)flextime
C)flexible workweek
Which of the following is NOT a key benefit of MRP? A)reduced inventory levels B)better response to customer orders C)increased quality D)improved utilization of facilities and labor E)faster response to market changes
C)increased quality
In assembly-line balancing, cycle time (the ratio of available production time to scheduled production) is the: A)equivalent of the maximum task time among all tasks. B)sum of all the task times divided by the maximum number of workstations. C)maximum time that a product is allowed at each workstation. D)minimum time that a product is allowed at each workstation. E)inverse of the minimum number of workstations needed.
C)maximum time that a product is allowed at each workstation.
What is the most critical phase in product life cycle assessment? A)production B)disposal C)product design D)purchasing E)shipping
C)product design
For the lot-sizing technique known as lot-for-lot to be appropriate: A)item unit cost should be relatively small. B)future demand should be known for several weeks. C)setup cost should be relatively small. D)annual volume should be rather low. E)the independent demand rate should be very stable.
C)setup cost should be relatively small.
Tangible costs include which of the following? A)availability of public transportation B)climatic conditions C)taxes D)zoning regulations E)quality and attitude of prospective employees
C)taxes
Three broad categories of definitions of quality are: A)low-cost, response, and differentiation. B)internal, external, and prevention. C)user based, manufacturing based, and product based. D)Pareto, Shewhart, and Deming. E)product quality, service quality, and organizational quality.
C)user based, manufacturing based, and product based.
Products are more "environmentally friendly" when they are made: A)where environmental regulations are lax. B)more difficult to disassemble. C)using less energy. D)using cheaper materials. E)according to OSHA standards.
C)using less energy.
One study found that companies with the highest levels of quality are how many times more productive than their competitors with the lowest quality levels? A)2 B)3 C)4 D)5 E)None of these because quality has no impact on productivity (units/labor hr.).
D)5
Which of the following is an advantage of the FCFS dispatching rule when used in services? A)FCFS maximizes utilization. B)FCFS minimizes the average lateness of all jobs. C)FCFS maximizes the number of jobs completed on time. D)FCFS seems fair to customers. E)FCFS minimizes the average number of jobs in the system.
D)FCFS seems fair to customers.
Which of the following is TRUE regarding services scheduling? A)The emphasis is on materials rather than staffing levels. B)Reservations and appointments are often used to manipulate the supply of services. C)The critical ratio sequencing rule is widely used to provide fairness to customers. D)Labor use can be intensive, and labor demand can be highly variable. E)All of these are true.
D)Labor use can be intensive, and labor demand can be highly variable.
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 quality loss function. B)a scatter diagram. C)a cause-and-effect diagram. D)a Pareto chart. E)a flowchart.
D)a Pareto chart.
Total quality management emphasizes: A)the responsibility of the quality control staff to identify and solve all quality-related problems. B)a process where mostly statisticians get involved. C)ISO 14000 certification. D)a commitment to quality that goes beyond internal company issues to suppliers and customers. E)a system where strong managers are the only decision makers.
D)a commitment to quality that goes beyond internal company issues to suppliers and customers.
Intangible costs include which of the following? A)quality of education B)quality of prospective employees C)availability of public transportation D)all of these E)none of these
D)all of these
In a product-oriented layout, what is the process of deciding how to assign tasks to workstations? A)work allocation B)process balancing C)task allocation D)assembly-line balancing E)station balancing
D)assembly-line balancing
The short-term scheduling activity called "loading": A)specifies the order in which jobs should be done at each center. B)assigns workers to machines. C)assigns workers to jobs. D)assigns jobs to work centers. E)assigns dates to specific jobs or operations steps.
D)assigns jobs to work centers.
Geographic information systems can assist the location decision by: A)automating center-of-gravity problems. B)providing good Internet placement for virtual storefronts. C)updating transportation method solutions. D)combining geography with demographic analysis. E)computerizing factor-rating analysis.
D)combining geography with demographic analysis.
Effective use of MRP and other dependent demand models does NOT require which of the following? A)inventory availability B)lead times C)master production schedule D)cost of individual components E)bill of materials
D)cost of individual components
The main issue in designing process-oriented layouts concerns the relative positioning of: A)supervisors to their employees. B)entrances, loading docks, etc. C)safety devices. D)departments or work centers. E)raw materials.
D)departments or work centers.
Which of the following constitutes a major trend influencing office layouts? A)globalization B)environmental issues C)downsizing D)dynamic needs for space and services E)health issues
D)dynamic needs for space and services
Utilization will typically be lower than efficiency because: A)expected output is less than actual output. B)effective capacity is greater than design capacity. C)effective capacity equals design capacity. D)effective capacity is less than design capacity. E)expected output is less than rated capacity.
D)effective capacity is less than design capacity.
Poka-yoke is the Japanese term for: A)card. B)just-in-time production. C)fishbone diagram. D)foolproof. E)continuous improvement.
D)foolproof.
Short-term schedules are prepared: A)directly from the aggregate plans. B)from the purchasing plans. C)directly from the capacity plans. D)from master schedules, which are derived from aggregate plans. E)from inventory records for items that have been used up.
D)from master schedules, which are derived from aggregate plans
Which of the following is NOT a service design technique used to increase service efficiency? A)delay customization B)limit the options C)automation D)increase customer interaction E)modularization
D)increase customer interaction
What is the behavioral approach to job design that involves giving the worker more tasks requiring similar skills? A)job enhancement B)job enrichment C)job rotation D)job enlargement E)job involvement
D)job enlargement
All of the following costs are likely to decrease as a result of better quality EXCEPT: A)warranty and service costs. B)customer dissatisfaction costs. C)scrap costs. D)maintenance costs. E)inspection costs.
D)maintenance costs.
In MRP, system nervousness is caused by: A)management's attempt to evaluate alternative plans before making a decision. B)the use of phantom bills of material. C)management's marking part of the master production schedule as "not to be rescheduled." D)management's attempt to continually respond to minor changes in production requirements. E)the use of the lot-for-lot approach.
D)management's attempt to continually respond to minor changes in production requirements.
One way to think of sustainability is to consider the systems necessary to support the triple bottom line of the three Ps, which are: A)people, pollution, and profit. B)price, promotion, and product. C)price, promotion, and profit. D)people, planet, and profit. E)people, places, and products.
D)people, planet, and profit.
Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon? A)democratic risk B)legislative risk C)bureaucratic risk D)political risk E)judicial risk
D)political risk
An assembly line is an example of a: A)product-focused process. B)process-focused process. C)specialized process. D)repetitive process. E)line process.
D)repetitive process.
A process sheet is a type of: A)assembly drawing. B)work order. C)bill of material. D)route sheet. E)assembly chart.
D)route sheet.
Retail layouts are based on the notion that: A)average customer visit duration should be maximized. B)space used should be minimized. C)handling costs should be minimized. D)sales and profitability vary directly with customer exposure to products. E)storage costs should be minimized.
D)sales and profitability vary directly with customer exposure to products.
What refers to meeting the needs of the present without compromising the ability of future generations to meet their needs? A)closed-loop supply chains B)corporate social responsibility C)economic sustainability D)sustainability E)carbon footprint
D)sustainability
The smaller the percentage established for allowances: A)the larger is the number of observations in the work sampling. B)the larger is the performance rating factor. C)the closer is average observed time to normal time. D)the closer is normal time to standard time. E)the larger is the required sample size.
D)the closer is normal time to standard time.
Resources held by the public are also said to be held in what? A)perpetuity B)the system C)contempt D)the common E)escrow
D)the common
A graphic technique for defining the relationship between customer desires and product (or service) is: A)the assembly drawing. B)modular design. C)the moment of truth. D)the house of quality. E)product lifecycle management
D)the house of quality.
Break-even is the number of units at which: A)total revenue equals total fixed cost. B)total revenue equals price times quantity. C)total profit equals total cost. D)total revenue equals total cost. E)total revenue equals total variable cost.
D)total revenue equals total cost.
Consider the following product structure.If the demand for product A is 50 units, how many units of component G will be needed? A)150 B)50 C)4 D)300 E)100
E) 100
Which of the following techniques is NOT a technique for dealing with a bottleneck? A)Have cross-trained employees available to keep the constraint at full operation. B)Increase the capacity of the constraint. C)Schedule throughput to match the capacity of the bottleneck. D)Develop alternate routings. E)All are techniques for dealing with bottlenecks.
E)All are techniques for dealing with bottlenecks.
Which of the following is a limitation of rules-based dispatching systems? A)Rules need to be revised to adjust to changes in orders, product mix, and so forth. B)Rules may not be able to prioritize two jobs with identical due dates. C)Rules may not recognize idle resources. D)Rules may not recognize bottleneck resources. E)All of the these are limitations.
E)All of the these are limitations.
Which of the following represents an opportunity for generating a new product? A)demographic change, such as decreasing family size B)changes in professional standards C)economic change, such as rising household incomes D)understanding the customer E)All of these are such opportunities.
E)All of these are such opportunities.
Techniques for building employee empowerment include: A)building high-morale organizations. B)building communication networks that include employees. C)developing open, supportive supervisors. D)moving responsibility from both managers and staff to production employees. E)All of these are techniques for employee empowerment.
E)All of these are techniques for employee empowerment.
Which of the following is TRUE about ISO 14000 certification? A)It deals with environmental management. B)It offers a good systematic approach to pollution prevention. C)One of its core elements is life cycle assessment. D)It can reduce exposure to liability. E)All of these are true.
E)All of these are true.
Which of the following is NOT a use of labor standards? A)cost and time estimates prior to production B)labor content of items produced C)basis of wage-incentive plans D)crew size and work balance E)All of these are uses of labor standards.
E)All of these are uses of labor standards.
What is a set of quality standards developed by the International Organization for Standardization? A)IOS 2009 B)Malcolm Baldrige National Quality Award C)Deming Prize D)Six Sigma E)ISO 9000
E)ISO 9000
Which of the following is FALSE concerning enterprise resource planning (ERP)? A)It provides and accesses information in a real-time environment. B)ERP software promises reduced transaction costs. C)It attempts to automate and integrate the majority of business processes. D)It shares common data and practices across the enterprise. E)It is inexpensive to implement
E)It is inexpensive to implement
Arnold Palmer Hospital uses which of the following quality management techniques? A)just-in-time B)benchmarking C)flowcharts D)Pareto charts E)The hospital uses all of these techniques.
E)The hospital uses all of these techniques.
Which one of the following is NOT common to repetitive and product-oriented layouts? A)a high rate of output B)low unit costs C)standardized products D)specialized equipment E)ability to adjust to changes in demand
E)ability to adjust to changes in demand
The major problem addressed by the warehouse layout strategy is: A)requiring frequent close contact between forklift drivers and item pickers. B)balancing product flow from one work station to the next. C)minimizing difficulties caused by material flow varying with each product. D)locating the docks near a convenient access point to the closest highway. E)addressing trade-offs between space and material handling.
E)addressing trade-offs between space and material handling.
Which of the following is NOT a typical inspection point? A)at the supplier's plant while the supplier is producing B)upon receipt of goods from your supplier C)before the product is shipped to the customer D)when production or service is complete E)after a costly process
E)after a costly process
Labor standards can help to determine which of the following? A)efficiency B)labor content of a product C)staffing needs D)incentive plans E)all of these
E)all of these
Process redesign: A)tries to bring about dramatic improvements in performance. B)is sometimes called process reengineering. C)often focuses on activities that cross functional lines. D)is the fundamental rethinking of business processes. E)all of these
E)all of these
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)histogram B)process control chart C)quality loss function D)scatter diagram E)cause-and-effect diagram
E)cause-and-effect diagram
Transition to production refers to the act of moving a product to production from what? A)inventory B)the market C)the supplier D)the wholesaler E)development
E)development
EDD stands for what? A)earliest detrimental date B)economic date determination C)earliest decision date D)earliest design date E)earliest due date
E)earliest due date
The dimensions, tolerances, materials, and finishes of a component are typically shown on a(n): A)route sheet. B)assembly chart. C)bill of material. D)assembly drawing. E)engineering drawing
E)engineering drawing
Orders are processed in the sequence in which they arrive if (the) ________ rule sequences the jobs. A)critical ratio B)earliest due date C)slack time remaining D)Johnson's E)first come, first served
E)first come, first served
Which of the following techniques may NOT provide reliable and accurate labor standards? A)work sampling B)methods time measurement (MTM) C)time studies D)predetermined time standards E)historical experience
E)historical experience
A product's life cycle is divided into four stages, which are: A)incubation, growth, maturity, and decline. B)introduction, growth, saturation, and maturity. C)introduction, growth, maturity, and decline. D)introduction, growth, stability, and decline. E)introduction, maturity, saturation, and decline.
E)introduction, maturity, saturation, and decline.
Which of the following terms implies an increase in responsibility and control in the vertical direction? A)job enlargement B)job satisfaction C)job re-design D)job rotation E)job enrichment
E)job enrichment
The typical goal used when developing a process-oriented layout strategy is to: A)minimize the distance between adjacent departments. B)maximize job specialization. C)minimize the level of operator skill necessary. D)maximize the number of different tasks that can be performed by an individual machine. E)minimize the material handling costs.
E)minimize the material handling costs.
Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm? A)cost of shipping finished goods B)energy and utility costs C)attitude toward unions D)labor costs E)parking and access
E)parking and access
The three major elements of the product decision are: A)cost, differentiation, and speed of response. B)goods, services, and hybrids. C)legislative, judicial, and executive. D)strategy, tactics, and operations. E)selection, definition, and design.
E)selection, definition, and design.
Traffic counts and demographic analysis of drawing area are associated with: A)locational cost-volume analysis. B)the center-of-gravity method. C)manufacturing location decisions. D)the transportation model. E)service location decisions.
E)service location decisions.
A product-oriented layout would be MOST appropriate for which one of the following businesses? A)insurance sales B)fast-food C)clothing alterations D)a grocery store E)steel making
E)steel making
"Making it right the first time" is the focus of the user-based definition of quality. True False
False
A dependent demand item is so called because its demand is dependent on customer preferences. True False
False
A work cell, a special arrangement of machinery and personnel to focus on the production of a single product or group of related products, is for manufacturing applications and has no relevance to services. True False
False
An example of the postponement strategy for improving service productivity is having the customer wait until you have sufficient time to serve the customer. True False
False
An improvement in quality must necessarily increase costs. True False
False
Break-even analysis is a powerful analytical tool, but is useful only when the organization produces a single product. True False
False
Continuous improvement is based on the philosophy that not every aspect of an operation can be improved. True False
False
Design capacity is the theoretical average output of a system in a given period under ideal conditions. True False
False
Dispatching rules are typically judged by four effectiveness criteria: average completion time, utilization, average number of jobs in the system, and average customer satisfaction. True False
False
Ergonomics is a branch of economics that deals with costs of scheduling workers. True False
False
Flexible workweek is a system that allows employees, within limits, to determine their own work schedules. True False
False
For a location decision, labor productivity may be important in isolation, but low wage rates are a more important criterion. True False
False
In our increasingly short-life-cycle, mass-customized world, operations managers need to consider large, fixed, and specialized equipment in layout designs. True False
False
In process-focused facilities, utilization of facilities is high. True False
False
In services, the scheduling emphasis is usually on materials rather than staffing levels. True False
False
MRP is generally applicable to items with independent demand. True False
False
Meeting the needs of the present without compromising the ability of future generations to meet their needs is known as corporate social responsibility. True False
False
Modular design exists only in tangible products; it makes no sense in services. True False
False
One criterion for developing effective schedules is maximizing completion time. True False
False
One guideline for determining the arrangement and space allocation of a retail store is to place high-impulse and high-margin items in the very back of the store. True False
False
Professional services typically require low levels of labor intensity. True False
False
Psychological factors have little relevance in the design of assembly line jobs because those jobs involve physical products and production technology. True False
False
Quality is mostly the business of the quality control staff, not ordinary employees. True False
False
Service firms choose locations based mostly on the cost of a site. True False
False
Short-term scheduling is important to efficiency and to cost reduction, but its impact is not of strategic importance. True False
False
Sustainability is not associated with corporate social responsibility. True False
False
The objective of a human resource strategy is to manage labor and design jobs so factory space is effectively and efficiently utilized. True False
False
The purpose of labor standards is to accurately define the skills required to complete a job. True False
False
To increase service efficiency, the product should be designed so that customization is allowed as early in the process as possible. True False
False
Variable costs are those costs that continue even if no units are produced. True False
False
A Gantt load chart shows the loading and idle time of several departments, machines, or facilities. True False
True
A design for disassembly cost-benefit analysis compares the amount of revenue that might be reclaimed against the cost of disposing of the product at its end-of-life. True False
True
A firm's process strategy is its approach to transforming resources into goods and services. True False
True
A useful tactic for increasing capacity is to redesign a product in order to facilitate more throughput. True False
True
An advantage of predetermined time standards is that the standard can be set before a task is actually performed. True False
True
Automated storage and retrieval systems are commonly used in distribution facilities of retailers. True False
True
Because of the significance of labor in the scheduling of services, behavioral and social issues, wage and hour laws, and union contracts all complicate the scheduling process. True False
True
Cross-docking processes items as they are received, rather than placing them in storage. True False
True
Economic sustainability means appropriately allocating scarce resources to make a profit. True False
True
Equitable pay alone cannot achieve a reasonable quality of work life in an organization. True False
True
Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software. True False
True
Firms that do not consider the impact of their decisions on all of their stakeholders see reduced sales and profits. True False
True
In manufacturing scheduling, physical inventories of goods can buffer variations in demand, but service scheduling normally lacks that buffer because services are generally consumed at the same time they are delivered. True False
True
Line employees need the knowledge of TQM tools. True False
True
Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult. True False
True
One drawback of a product-oriented layout is that work stoppage at any one point ties up the whole operation. True False
True
One environmentally friendly approach to product design is to use lighter components. True False
True
One of the ways that just-in-time (or JIT) influences quality is that by reducing inventory, bad quality is exposed. True False
True
One use of labor standards is to determine what constitutes a fair day's work. True False
True
Price changes are useful for matching the level of demand to the capacity of a facility. True False
True
Quality circles empower employees to improve productivity by finding solutions to work-related problems in their work area. True False
True
Rapidly developing products and moving them to the market is part of time-based competition. True False
True
Retinal security scanners and cashless payments are examples of technology's impact on services. True False
True
Robust design ensures that small variations in production or assembly do not adversely affect the product. True False
True
Social and environmental sustainability do not exist without economic sustainability. True False
True
Some governments are implementing laws that mandate the outright reduction of GHG emissions by forcing companies to pay taxes based on the amount of GHG emissions that are emitted. True False
True
Standard time is always greater than normal time, due to the inclusion of allowances for personal time, delay, and fatigue. True False
True
TQM is important because each of the ten decisions made by operations managers deals with some aspect of identifying and meeting customer expectations. True False
True
Technologies today allow consumers, communities, public interest groups, and regulators to be well informed about an organization's performance. True False
True
The "make-or-buy" decision distinguishes between what an organization chooses to produce and what it chooses to purchase from suppliers. True False
True
The allowances that convert normal time to standard time have three components: personal time allowances, delay allowances, and fatigue allowances. True False
True
The assembly line is a classic example of a repetitive process. True False
True
The benefits of effective scheduling include lower cost, faster throughput, and dependable delivery. True False
True
The customer may participate in the design of, and in the delivery of, services. True False
True
The location decisions of service firms will generally pay more attention to parking, access, and traffic counts than will goods-producing location decisions. True False
True
The moment-of-truth is the crucial moment between the service provider and the customer that exemplifies, enhances, or detracts from the customer's expectations. True False
True
The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage. True False
True
The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used. True False
True
The theory of constraints is a body of knowledge that deals with anything that limits an organization's ability to achieve its goals. True False
True
The time-phased product structure, unlike the bill of material, adds the concept of lead times. True False
True
The transportation model calculates an optimal shipping system between several points of supply and several outlying customers. True False
True
The typical full-service restaurant uses a process-focused process. True False
True
The work cell improves layouts by reducing both floor space and direct labor cost. True False
True
Those resources held in the common are often misallocated. True False
True
Time-function mapping is a flowchart with time added to the horizontal axis. True False
True
When selecting new equipment and technology, decision makers look for flexibility—the ability to respond with little penalty in time, cost, or customer value. True False
True
Within environmental regulation, the "cap-and-trade" principle essentially allows companies to buy and sell emission allowances. True False
True
