Operations MGMT exam 1

The two most important factors in choosing a forecasting technique are: A. cost and time horizon B. accuracy and time horizon C. cost and accuracy D. quantity and quality E. objective and subjective components

C. cost and accuracy

Increasing the service offered to the customer makes it more difficult to compete on the basis of ______. A. order qualifiers B. customization C. quality D. price E. flexibility

D. price

Products or services with a high degree of similarity of features and components are called: A. generic B. copy-cat C. rip-offs D. product families E. product/service matrix

D. product families

Which is not a characteristic of simple moving averages applied to time series data? A. smoothes random variations in the data B. weights each historical value equally C. lags changes in the data D. requires only last period's forecast and actual data E. smoothes real variations in the data

D. requires only last period's forecast and actual data

Which of the following is not a reason for poor performance of our organization in the marketplace? A. placing too much emphasis on product/service design and too little on process design B. failing to take into account customer wants and needs C. putting too much emphasis on short-term financial performance D. taking advantage of strengths/opportunities, and recognizing competitive threats E. none of the above

D. taking advantage of strengths/opportunities, and recognizing competitive threats

Which of the following is not a type of operations? A. goods production B. storage/transportation C. entertainment D. communication E. all the above involve operations

E. all the above involve operations

A manager uses the following equation to predict monthly receipts: Yt = 40,000 + 150t. What is the forecast for July if t = 0 in April of this year? A. 40,450 B. 40,600 C. 42,100 D. 42,250 E. 42,400

A. 40,450 July would be period 3, so the forecast would be 40,000 + 150(3).

Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each 8-hour shift. If the production is increased to 1,200 pretzels each shift, then productivity will have increased by: A. 50% B. 33% C. 25% D. 67%

A. 50% Divide the difference in productivity by the original productivity.

Suppose a country's productivity last year was 84. If this country's productivity growth rate of 5% is to be maintained, this means that this year's productivity will have to be _______. A. 88.2 B. 79.8 C. 82.8 D. 78.9 E. 4.2

A. 88.2 Multiply 84 by 1.05 and then subtract 84 from this product

One step that isn't part of service blueprinting is: A. Eliminate boundaries for the service and decide on the level of interaction needed B. Identify and determine the sequence of customer and service actions and interactions C. Develop time estimates for each phase of the process D. Understand the time variability involved E. Identify potential failure points and develop a plan to minimize them

A. Eliminate boundaries for the service and decide on the level of interaction needed

A firm pursuing a strategy based on customization and variety will tend to structure and manage its supply chain to accommodate more _____________ than a firm pursuing a strategy based on low-cost and high-volume. A. Variation B. Streamlined flow C. Quality D. Capacity E. Productivity

A. Variation

In the past, a significant reason why U.S. productivity was the highest in the world was high: A. agricultural productivity B. manufacturing productivity C. labor productivity D. savings productivity E. governmental productivity

A. agricultural productivity

In trend-adjusted exponential smoothing, the trend adjusted forecast (TAF) consists of: A. an exponentially smoothed forecast and a smoothed trend factor B. an exponentially smoothed forecast and an estimated trend value C. the old forecast adjusted by a trend factor D. the old forecast and a smoothed trend factor E. a moving average and a trend factor

A. an exponentially smoothed forecast and a smoothed trend factor

One reason for using the Delphi method in forecasting is to: A. avoid premature consensus (bandwagon effect) B. achieve a high degree of accuracy C. maintain accountability and responsibility D. be able to replicate results E. prevent hurt feelings

A. avoid premature consensus (bandwagon effect)

A persistent tendency for forecasts to be greater than or less than the actual values is called: A. bias B. tracking C. control charting D. positive correlation E. linear regression

A. bias

Which is not a significant difference between manufacturing and service operations? A. cost per unit B. uniformity of output C. labor content of jobs D. customer contact E. measurement of productivity

A. cost per unit

In order to increase the responsiveness of a forecast made using the moving average technique, the number of data points in the average should be: A. decreased B. increased C. multiplied by a larger alpha D. multiplied by a smaller alpha E. eliminated if the MAD is greater than the MSE

A. decreased

One way to increase reliability is to: A. improve component design B. increase the number of service stations C. increase mean repair time D. increase the number of dependent components E. none of the above

A. improve component design

Which of the following might be used to indicate the cyclical component of a forecast? A. leading variable B. Mean Squared Error (MSE) C. Delphi technique D. exponential smoothing E. Mean Absolute Deviation (MAD)

A. leading variable

Two widely used metrics of variation are the __________ and the _________. A. mean; standard deviation B. productivity ratio; correlation C. standardized mean; assignable deviation D. randomized mean; standardized deviation E. normal distribution; random variation

A. mean; standard deviation

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management. A. outsourcing; supply chain B. offshoring; lean C. downsizing; total quality D. optimizing; inventory E. internationalization; intercultural

A. outsourcing; supply chain

In the "additive" model for seasonality, seasonality is expressed as a ______________ adjustment to the average; in the multiplicative model, seasonality is expressed as a __________ adjustment to the average. A. quantity, percentage B. percentage, quantity C. quantity, quantity D. percentage, percentage E. qualitative, quantitative

A. quantity, percentage

Product design and choice of location are examples of _______ decisions. A. strategic B. tactical C. operational D. customer focused E. design

A. strategic

Business organizations consist of three major functions which, ideally: A. support one another B. are mutually exclusive C. exist independently of each other D. function independently of each other E. do not interface with each other

A. support one another

The primary difference between seasonality and cycles is: A. the duration of the repeating patterns B. the magnitude of the variation C. the ability to attribute the pattern to a cause D. the direction of the movement E. there are only 4 seasons but 30 cycles

A. the duration of the repeating patterns

Which of the following is used for constructing a control chart? A. mean absolute deviation (MAD) B. mean squared error (MSE) C. tracking signal (TS) D. bias E. none of the above

B. mean squared error (MSE)

Which of the following is the most valuable piece of information the sales force can bring into forecasting situations? A. what customers are most likely to do in the future B. what customers most want to do in the future C. what customers' future plans are D. whether customers are satisfied or dissatisfied with their performance in the past E. what the salesperson's appropriate sales quota should be

A. what customers are most likely to do in the future

A productivity increase in one operation that doesn't improve overall productivity of the business isn't A. worthwhile B. trivial C. competence-destroying D. an order winner E. an order qualifier

A. worthwhile

Given forecast errors of - 5, - 10, and +15, the MAD is: A. 0 B. 10 C. 30 D. 175 E. none of these

B. 10 Convert these errors into absolute value, then average.

Given forecast errors of 5, 0, - 4, and 3, what is the mean absolute deviation? A. 4 B. 3 C. 2.5 D. 2 E. 1

B. 3 Convert each error into an absolute value and then average.

Given forecast errors of 5, 0, - 4, and 3, what is the bias? A. - 4 B. 4 C. 5 D. 12 E. 6

B. 4 Sum the forecast errors

Designing for recycling helps facilitate ______. A. Reduced legal liability B. Compliance with regulatory environments C. Increased product reliability D. Reduced standardization costs E. None of the above

B. Compliance with regulatory environments

The Balanced Scorecard is a useful tool for helping managers translate their strategy into action in the following areas: A. Sustainability; Flexibility; Efficiency; Technology B. Customers; Financial; Internal Business Processes; Learning and Growth C. Customization; Standardization; Efficiency; Effectiveness D. The Environment; The Community; Suppliers; Other Stakeholders E. Strategy; Tactics; Productivity; Profitability

B. Customers; Financial; Internal Business Processes; Learning and Growth

For firms competing in worldwide markets, conducting __________________ is more complex, since what works in one country or region might not work in another. A. Productivity analysis B. Environmental analysis C. Strategy implementation D. Sustainability analysis E. Growth forecasting

B. Environmental analysis

"Must have", "expected" and "excitement" characteristics are categories in the ____ model. A. Bi-polar B. Kano C. Pareto D. Quality E. Service Matrix

B. Kano

Putting forecast errors into perspective is best done using A. Exponential smoothing B. MAPE C. Linear decision rules D. MAD E. Hindsight

B. MAPE

The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the: A. Irwin phenomenon B. Pareto phenomenon C. Stevenson phenomenon D. Tellier phenomenon E. Adam Smith phenomenon

B. Pareto phenomenon

Service design generally differs from product design in which of the following ways? A. Service design tends to focus on tangible factors. B. There is less latitude in detecting and correcting errors prior to delivery. C. There is a lesser requirement to be aware of competitors' offerings. D. There is less visibility to customers. E. There is no difference.

B. There is less latitude in detecting and correcting errors prior to delivery.

Using the latest observation in a sequence of data to forecast the next period is: A. a moving average forecast B. a naive forecast C. an exponentially smoothed forecast D. an associative forecast E. regression analysis

B. a naive forecast

In the area of product and service design, the acronym CAD refers to: A. conceptually appropriate design B. computer aided design C. commercial applications design D. competitive advantage design E. completely automated design

B. computer aided design

Mobile phones have evolved from devices intended to place and receive phone calls into handheld multimedia communications devices, but in the eyes of some customers these new features make the phones less desirable. This is an example of _________. A. robust design B. creeping featurism C. sustainable design D. quality function deployment E. component commonality

B. creeping featurism

Which of the following is not a step in the forecasting process? A. determine the purpose and level of detail required B. eliminate all assumptions C. establish a time horizon D. select a forecasting model E. monitor the forecast

B. eliminate all assumptions

In services, flowcharts are useful for _______________. A. translating basic research into applied research B. identifying and determining the sequence of customer and service actions and interactions C. developing time estimates for each phase of the service process D. evaluating ways of standardizing service elements with component commonality E. estimating customer satisfaction with the service process

B. identifying and determining the sequence of customer and service actions and interactions

One way to increase reliability is to: A. eliminate backup component B. improve preventive maintenance procedures C. increase mean repair time D. increase the number of independent components E. none of the above

B. improve preventive maintenance procedures

Which of the following changes would tend to shorten the time frame for short term forecasting? A. bringing greater variety into the product mix B. increasing the flexibility of the production system C. ordering fewer weather-sensitive items D. adding more special-purpose equipment E. none of the above

B. increasing the flexibility of the production system

Marketing depends on operations for information regarding ___________. A. productivity B. lead time C. cash flow D. budgeting E. corporate intelligence

B. lead time

The degree of management involvement in short range forecasts is: A. none B. low C. moderate D. high E. total

B. low

Which of the following is not typically considered a cure for poor competitiveness? A. remove communications barriers within organizations B. minimize attention to the operations function C. put less emphasis on short-term financial results D. recognize labor as a valuable asset and act to develop it E. improve quality

B. minimize attention to the operations function

Scheduling personnel is an example of an operations management: A. mission implementation B. operational decision C. organizational strategy D. functional strategy E. tactical decision

B. operational decision

Manufacturing work sent to other countries is called: A. downsized B. outsourced C. internationalization D. vertical integration E. entrepreneurial ship

B. outsourced

The responsibilities of the operations manager are: A. planning, organizing, staffing, procuring, and reviewing B. planning, organizing, staffing, directing, and controlling C. forecasting, designing, planning, organizing, and controlling D. forecasting, designing, operating, procuring, and reviewing E. designing and operating

B. planning, organizing, staffing, directing, and controlling

A managerial approach toward forecasting which seeks to actively influence demand is: A. reactive B. proactive C. influential D. protracted E. retroactive

B. proactive

The ratio of good output to quantity of raw material input is called A. non-defective productivity B. process yield C. worker quality measurement D. total quality productivity E. quantity/quality ratio

B. process yield

The two general approaches to forecasting are: A. mathematical and statistical B. qualitative and quantitative C. judgmental and qualitative D. historical and associative E. precise and approximation

B. qualitative and quantitative

A formal way to document customer requirements is: A. consumer surveys B. quality function deployment (QFD) C. focus groups D. Delphi technique E. sales/marketing matrix

B. quality function deployment (QFD)

The primary method for associative forecasting is: A. sensitivity analysis B. regression analysis C. simple moving averages D. centered moving averages E. exponential smoothing

B. regression analysis

Averaging techniques are useful for: A. distinguishing between random and non-random variations B. smoothing out fluctuations in time series C. eliminating historical data D. providing accuracy in forecasts E. average people

B. smoothing out fluctuations in time series

Which of the following is not a reason for redesigning a product or service? A. to reduce labor or material cost B. to increase the level of employee satisfaction C. to increase the level of customer satisfaction D. to attract and increase customer demand E. to increase quality

B. to increase the level of employee satisfaction

Which is not a characteristic of exponential smoothing? A. smoothes random variations in the data B. weights each historical value equally C. has an easily altered weighting scheme D. has minimal data storage requirements E. smoothes real variations in the data

B. weights each historical value equally

Simple exponential smoothing is being used to forecast demand. The previous forecast of 66 turned out to be four units less than actual demand. The next forecast is 66.6, implying a smoothing constant, alpha, equal to: A. .01 B. .10 C. .15 D. .20 E. .60

C. .15 A previous period's forecast error of 4 units would lead to a change in the forecast of 0.6 if alpha equals 0.15.

Given an actual demand of 105, a forecasted value of 97, and an alpha of .4, the simple exponential smoothing forecast for the next period would be: A. 80.8 B. 93.8 C. 100.2 D. 101.8 E. 108.2

C. 100.2 Multiply the previous period's forecast error (8) by alpha and then add to the previous period's forecast.

In an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per 5-day week. What is the labor productivity of this operation? A. 90 chairs/worker/day B. 20 chairs/worker/day C. 15 chairs/worker/day D. 75 chairs/worker/day E. none of the above

C. 15 chairs/worker/day Divide the output of 450 chairs by the inputs of 30 worker-days.

Given forecast errors of 4, 8, and - 3, what is the mean absolute deviation? A. 4 B. 3 C. 5 D. 6 E. 12

C. 5 Convert each error into an absolute value and then average.

Which of the following is not true about systems approach? A. A systems viewpoint is almost always beneficial in decision making. B. A systems approach emphasizes interrelationships among subsystems. C. A systems approach concentrates on efficiency within subsystems. D. A systems approach is essential whenever something is being redesigned or improved. E. All of the above are true.

C. A systems approach concentrates on efficiency within subsystems.

Detecting non-randomness in errors can be done using: A. MSEs B. MAPs C. Control Charts D. Correlation Coefficients E. Strategies

C. Control Charts

One of these is not a characteristic of a well-designed service system: A. User friendly B. Robust C. Distributed computer networks D. Cost effective E. Easy to sustain

C. Distributed computer networks

Which of the following is true? A. Corporate strategy is shaped by functional strategies. B. Corporate mission is shaped by corporate strategy. C. Functional strategies are shaped by corporate strategy. D. External conditions are shaped by corporate mission. E. Corporate mission is shaped by functional strategies.

C. Functional strategies are shaped by corporate strategy.

Which of the following features would not generally be considered common to all forecasts? A. Assumption of a stable underlying causal system. B. Actual results will differ somewhat from predicted values. C. Historical data is available on which to base the forecast. D. Forecasts for groups of items tend to be more accurate than forecasts for individual items. E. Accuracy decreases as the time horizon increases.

C. Historical data is available on which to base the forecast.

Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage. Now, all firms must offer this capability simply to be in this line of business. This is an example of ______________ becoming ____________ over time. A. Tactical implications; strategic B. Strategic implications; tactical C. Order winners; order qualifiers D. Profitability factors; productivity factors E. Order qualifiers; order winners

C. Order winners; order qualifiers

Competitiveness doesn't include: A. Productivity B. Effectiveness C. Profitability D. Operations Strategy E. Operations Management

C. Profitability

Incorporating design for disassembly (DFD) principles in product design helps firms with ___________ design issues. A. Legal B. Social C. Re-use D. Reverse engineering E. Re-engineering

C. Re-use

Which of the following would be an advantage of using a sales force composite to develop a demand forecast? A. The sales staff is least affected by changing customer needs. B. The sales force can easily distinguish between customer desires and probable actions. C. The sales staff is often aware of customers' future plans. D. Salespeople are least likely to be influenced by recent events. E. Salespeople are least likely to be biased by sales quotas.

C. The sales staff is often aware of customers' future plans.

A 'product package' consists of: A. the exterior wrapping B. the shipping container C. a combination of goods and services D. goods if a manufacturing organization E. customer relations if a service organization

C. a combination of goods and services

Elements of the service process in which there is little to no contact with the customer are referred to as ____________. A. robust B. delayed differentiators C. back-of-the-house D. user-friendly E. mission-consistent

C. back-of-the-house

Knowledge skills usually don't include: A. process knowledge B. accounting skills C. communication skills D. global knowledge E. all of the above

C. communication skills

The process of comparing outputs to previously established standards to determine if corrective action is needed is called: A. planning B. directing C. controlling D. budgeting E. disciplining

C. controlling

The research and development activity which starts after positive research results are available and attempts to turn these results into useful commercial applications is: A. basic research B. applied research C. development D. redesign E. commercial research

C. development

For an organization to grow its market share, it must: A. advertise using multimedia B. lower prices C. exceed minimum standards of acceptability for its products or services D. establish an internet website E. broaden its mission statement

C. exceed minimum standards of acceptability for its products or services

Which of the following corresponds to the predictor variable in simple linear regression? A. regression coefficient B. dependent variable C. independent variable D. predicted variable E. demand coefficient

C. independent variable

Operations management involves continuous decision-making; hopefully most decisions made will be: A. redundant B. minor in nature C. informed D. quantitative E. none of the above

C. informed

Which of the following does not relate to system design? A. altering the system capacity B. location of facilities C. inventory management D. selection and acquisition of equipment E. physical arrangement of departments

C. inventory management

In the 1970's and 1980's in the USA, organizations concentrated on: A. operations strategies B. improving quality C. marketing and financial strategies D. revising mission statements E. environmental issues

C. marketing and financial strategies

The mean absolute deviation (MAD) is used to: A. estimate the trend line B. eliminate forecast errors C. measure forecast accuracy D. seasonally adjust the forecast E. all of the above

C. measure forecast accuracy

Which of the following factors would tend to reduce productivity? A. improvements in workplace safety B. reductions in labor turnover C. more inexperienced workers D. reductions in the scrap rate E. none of the above

C. more inexperienced workers

Farming is an example of: A. an obsolete activity B. a virtual organization C. non-manufactured goods D. a growth industry E. customized manufacturing

C. non-manufactured goods

One possible disadvantage of modular design is that: A. replacement and repair is more difficult B. failure diagnosis is more complex C. number of configurations of modules decreases D. individual parts lose their identities E. inventory problems arise

C. number of configurations of modules decreases

The external elements of SWOT analysis are: A. strengths and weaknesses B. strengths and threats C. opportunities and threats D. weaknesses and opportunities E. strengths and opportunities

C. opportunities and threats

The structural approach for integrating customer requirements into every aspect of product development is known as: A. total quality management B. customer satisfaction C. quality function deployment D. customer integration E. a product development team

C. quality function deployment

Dealing with the fact that certain aspects of any management situation are more important than others is called: A. analysis of tradeoffs B. sensitivity analysis C. recognition of priorities D. analysis of variance E. decision table analysis

C. recognition of priorities

The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas is called: A. design by imitation B. product analysis C. reverse engineering D. benchmarking E. disassembly

C. reverse engineering

Forecasts based on judgment and opinion don't include A. executive opinion B. salesperson opinion C. second opinions D. customer surveys E. Delphi methods

C. second opinions

Which phrase most closely describes the Delphi technique? A. associative forecast B. consumer survey C. series of questionnaires D. developed in India E. historical data

C. series of questionnaires

Which of the following helps improve supply chain forecasting performance? A. contracts that require supply chain members to formulate long term forecasts B. penalties for supply chain members that adjust forecasts C. sharing forecasts or demand data across the supply chain D. increasing lead times for critical supply chain members E. increasing the number of suppliers at critical junctures in the supply chain

C. sharing forecasts or demand data across the supply chain

Customer service levels can be improved by better: A. mission statements B. control charting C. short term forecast accuracy D. exponential smoothing E. customer selection

C. short term forecast accuracy

Moving average forecasting techniques do the following: A. immediately reflect changing patterns in the data B. lead changes in the data C. smooth variations in the data D. operate independently of recent data E. assist when organizations are relocating

C. smooth variations in the data

Which one of the following would not generally be classified under the heading of transformation? A. assembling B. teaching C. staffing D. farming E. consulting

C. staffing

Which of the following is a recent trend in business? A. pollution control B. total quality management C. supply chain management D. competition from foreign manufacturers E. technological change

C. supply chain management

Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision-makers to consider ______________ in response to the ___________. A. flexibility; pressure to be more efficient B. offshoring; need to promote domestic production C. sustainability; threat of global warming D. technology; impact of random variation E. forecasting; stabilization of demand

C. sustainability; threat of global warming

Product design and process selection are examples of _______ decisions. A. financial B. tactical C. system design D. system operation E. forecasting

C. system design

The forecasting method which uses anonymous questionnaires to achieve a consensus forecast is: A. sales force opinions B. consumer surveys C. the Delphi method D. time series analysis E. executive opinions

C. the Delphi method

Technology choices seldom affect: A. costs. B. productivity. C. union activity. D. quality. E. flexibility.

C. union activity.

A software company is weighing whether to release a new version of its software. The company can go ahead and release the version now and correct flaws with subsequent patches or upgrades, or it can wait until the new version is reasonably bug-free. This is an example of _____. A. life-cycle analysis B. value analysis C. vaporware D. concurrent engineering E. design for production

C. vaporware

Given an actual demand of 59, a previous forecast of 64, and an alpha of .3, what would the forecast for the next period be using simple exponential smoothing? A. 36.9 B. 57.5 C. 60.5 D. 62.5 E. 65.5

D. 62.5 Multiply the previous period's forecast error (-5) by alpha and then add to the previous period's forecast

Which of the following is not a benefit of using models in decision making? A. They provide a standardized format for analyzing a problem. B. They serve as a consistent tool for evaluation. C. They are easy to use and less expensive than dealing with the actual situation. D. All of the above are benefits. E. None of the above is a benefit.

D. All of the above are benefits.

Which of the following statements about variation is FALSE? A. Variation prevents a production process from being as efficient as it can be. B. Some variation can be prevented. C. Variation can either be assignable or random. D. Any variation makes a production process less productive. E. Random variation generally cannot be influenced by managers.

D. Any variation makes a production process less productive.

Unique attributes of firms that give them a competitive edge are called ______________. A. Functional strategies B. Balanced scorecards C. Supply chains D. Core competencies E. Sustainable initiatives

D. Core competencies

A disadvantage of global teams for product design is that: A. Customers may have different needs in different countries B. The product designed may have increased marketability and utility C. The diversity of an international team may be a detriment D. Ease of face to face meetings is absent since members are located everywhere E. Technology allows constant contact with team members

D. Ease of face to face meetings is absent since members are located everywhere

The advantages of standardization include which of the following? (I.) The opportunity to freeze design at a very early stage (II.) Fewer parts to deal with in inventory (III.) Reduced training cost and time (IV.) Purchasing is more routine A. I, II B. I, IV C. I, II, III D. II, III, IV E. I, II, III, IV

D. II, III, IV

Which of the following is not true about re-manufacturing? A. Re-manufactured products can be sold at lower cost. B. The process requires mostly unskilled and semiskilled workers. C. There is less depletion of natural resources. D. It produces high quality products easily. E. Re-manufacturing is mainly carried out by small and mid-sized companies.

D. It produces high quality products easily.

Some companies attempt to maximize the revenue they receive from fixed operating capacity by influencing demands through price manipulation. This is an example of __________________: A. Illegal price discrimination B. Collusion C. Volume analysis D. Revenue management E. Outsourcing

D. Revenue management

Use of simple linear regression analysis assumes that: A. Variations around the line are random. B. Deviations around the line are normally distributed. C. Predictions are to be made only within the range of observed values of the predictor variable. D. all of the above E. none of the above

D. all of the above

A forecast based on the previous forecast plus a percentage of the forecast error is: A. a naive forecast B. a simple moving average forecast C. a centered moving average forecast D. an exponentially smoothed forecast E. an associative forecast

D. an exponentially smoothed forecast

What is credited with gains in industrial productivity, increased standards of living and affordable products? A. personal computers B. the internet C. mass transportation D. assembly lines E. multi-level marketing

D. assembly lines

Which technique is used in computing seasonal relatives? A. double smoothing B. Delphi C. Mean Squared Error (MSE) D. centered moving average E. exponential smoothing

D. centered moving average

The term 'degrees of newness' is associated with: A. average age of employees B. average length of time on the job C. total years of business experience D. degree of design change E. average age of the capital equipment

D. degree of design change

Which of the following is not a characteristic of service operations? A. intangible output B. high customer contact C. high labor content D. easy measurement of productivity E. low uniformity of output

D. easy measurement of productivity

Measurements taken at various points in the transformation process for control purposes are called: A. plans B. directions C. controls D. feedback E. budgets

D. feedback

. Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function. A. operation B. marketing C. purchasing D. finance E. internal audit

D. finance

Which of the following mechanisms for enhancing profitability is most likely to result from improving short term forecast performance? A. increased inventory B. reduced flexibility C. higher-quality products D. greater customer satisfaction E. greater seasonality

D. greater customer satisfaction

Minimizing the sum of the squared deviations around the line is called: A. mean squared error technique B. mean absolute deviation C. double smoothing D. least squares estimation E. predictor regression

D. least squares estimation

Which of the following is not necessarily an element of a good forecast? A. estimate of accuracy B. timeliness C. meaningful units D. low cost E. written

D. low cost

Which of the following is not an ongoing trend in manufacturing? A. globalization B. quality improvement C. flexibility and agility D. mass production for greater economies of scale E. technological advances

D. mass production for greater economies of scale

The fundamental purpose for the existence of any organization is described by its: A. policies B. procedures C. corporate charter D. mission statement E. bylaws

D. mission statement

Productivity is expressed as: A. output plus input B. output minus input C. output times input D. output divided by input E. input divided by output

D. output divided by input

Gradual, long-term movement in time series data is called: A. seasonal variation B. cycles C. irregular variation D. trend E. random variation

D. trend

Which one of the following is not a factor of successful product and service design? A. be aware of what the competitors are doing B. be aware of what customers want C. know what government regulations are D. use computerized design techniques E. know what new technologies are available

D. use computerized design techniques

Which of the following possible values of alpha would cause exponential smoothing to respond the most quickly to forecast errors? A. 0 B. .01 C. .05 D. .10 E. .15

E. .15 Larger values for alpha correspond with greater responsiveness.

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast? A. 0 B. .01 C. .1 D. .5 E. 1.0

E. 1.0 An alpha of 1.0 leads to a naïve forecast

Accuracy in forecasting can be measured by: A. MSE B. MRP C. MAPE D. MTM E. A & C

E. A & C

The goal of value analysis is to find ways of _______. A. I. Reducing the cost of parts and materials B. II. Improving the performance of the product or service C. III. Incorporating multiple cultural values in global system design D. Both I and III E. Both I and II

E. Both I and II

Which of the following statements about CAD is not true? A. It increases the productivity of designers. B. It uses computer graphics. C. It requires a good data base. D. Some systems permit engineering or cost analysis of proposed designs. E. It is used successfully by all manufacturing companies.

E. It is used successfully by all manufacturing companies

When considering re-use issues for a given product, an important factor to take into account is that product's _______. A. Ethical impact B. Reliability C. Durability D. Design for assembly E. None of the above

E. None of the above

___________ is generally used to facilitate an organization strategy that emphasizes low cost. A. Speed to market B. Flexibility C. Customization D. Sustainability E. None of the above

E. None of the above

Core competencies in organizations generally relate to: A. cost B. quality C. time D. flexibility E. all of the above

E. all of the above

Current information on _________ can have a significant impact on forecast accuracy: A. prices B. promotion C. inventory D. competition E. all of the above

E. all of the above

Ideas for new or improved designs can come from: A. customers B. competitors C. research and development departments D. production departments E. all of the above

E. all of the above

In business, forecasts are the basis for: A. capacity planning B. budgeting C. sales planning D. production planning E. all of the above

E. all of the above

Inaccuracies in forecasts along the supply chain lead to: A. shortages or excesses of materials B. reduced customer service C. excess capacity D. missed deliveries E. all of the above

E. all of the above

Which of the following is an issue that designers must take into account in product and service design? A. legal, environmental, and ethical issues B. reliability C. standardization D. range of operating conditions E. all of the above

E. all of the above

Which of the following is considered to be a cause of poor U.S. global competitiveness? A. the tendency to view labor as a cost factor to be minimized B. decision-making based on short-term horizons C. weaknesses in technological practice D. powerful trading partners E. all of the above

E. all of the above

Which of the following is essential to consider with respect to managing a process to meet demand? A. strategy B. demand forecasts C. capacity D. random variability E. all of the above

E. all of the above

Which of these factors affects productivity? A. methods and technology B. workers C. management D. a and b only E. all of the above

E. all of the above

Which of the following is not a key step toward improving productivity? A. developing productivity measures for all operations B. improving the bottleneck operations C. establishing reasonable goals for improvement D. considering incentives to reward workers E. converting bond debt to stock ownership

E. converting bond debt to stock ownership

The term 'standardization' is closely associated with: A. customization B. high cost C. longer lead times D. variety E. interchangeability

E. interchangeability

Time-based approaches of business organizations focus on reducing the time to accomplish certain necessary activities. Time reductions seldom apply to: A. product/service design time B. processing time C. delivery time D. response time for complaints E. internal audits

E. internal audits

Operations and sales are the two ________ functions in businesses. A. strategic B. tactical C. support D. value-adding E. line

E. line

Value added can be calculated by: A. average productivity gains over time B. inputs divided by the outputs C. outputs divided by the inputs D. input plus output divided by two E. outputs minus inputs

E. outputs minus inputs

Which of the following is not one of the phases of product design and development? A. specify product specifications B. conduct market test C. specify process specifications D. conduct design review E. performance applied research

E. performance applied research

Which term most closely relates to associative forecasting techniques? A. time series data B. expert opinions C. Delphi technique D. consumer survey E. predictor variables

E. predictor variables

Which of the following is not a key factor of competitiveness? A. price B. product differentiation C. flexibility D. after-sale service E. size of organization

E. size of organization

Production systems with customized outputs typically have relatively: A. high volumes of output B. low unit costs C. high amount of specialized equipment D. fast work movement E. skilled workers

E. skilled workers

Which of the following is not a type of judgmental forecasting? A. executive opinions B. sales force opinions C. consumer surveys D. the Delphi method E. time series analysis

E. time series analysis

Which of the following is not a factor that affects productivity? A. computer viruses B. design of the workspace C. use of the Internet D. standardizing processes E. wireless cellular phones

E. wireless cellular phones