Productions and Operations Management Final

9. ___ charts are most effective when they are used together as a matched pair. a) Controls b) Pareto c) Pair d) Matching

a) Controls

3. ___ is the inventory expected to be sold based on demand forecasts. a) Cycle inventory b) Pipeline inventory c) Both a and b d) None of the above

a) Cycle inventory

2. Job shop produces a low volume of customized products such as ___. a) Eyeglasses b) Salt c) Natural gas d) Sugar

a) Eyeglasses

8. Which of the following is true of the steps involved in earning the Malcolm Baldrige National Quality Award? a) Feedback reports are provided to the applicant organizations as part of the assessment process. b) The applicant organization should find a reviewer who has international credibility. c) Both a and b d) None of the above

a) Feedback reports are provided to the applicant organizations as part of the assessment process.

7. The ___ diagram is a graphical technique for grouping people's ideas about the causes of a problem. a) Fishbone b) Idea-generating c) Scatter d) Grouping

a) Fishbone

6. A ___ project is housed and controlled within a single functional department during each project stage. a) Functional b) Pure c) Matrix d) Hybrid

a) Functional

4. ___ can be produced in advance and stored in inventory until a customer buys or consumes them. a) Goods b) Services c) Both a and b d) None of the above

a) Goods

4. Which of the following is true of Joseph M. Juran? a) He applied the Pareto principle to quality issues. b) He changed the perspective of quality by correlating quality with cost and loss in dollars. c) Both a and b d) None of the above

a) He applied the Pareto principle to quality issues.

4. The ___ nature of services also presents a problem for customers because they should just rely on the reputation of the service firm. a) Intangible b) Preventive c) Both a and b d) None of the above

a) Intangible

2. Which of the following is true of traditional quality control? a) It focuses on inspecting products that have already been produced. b) It involves the integration of quality control into each production stage. c) Both a and b d) None of the above

a) It focuses on inspecting products that have already been produced.

8. Which of the following is true of the Hawthorne effect? a) It focuses on the human aspects of workers. b) It was named after Dr. Hawthorne. c) Both a and b d) None of the above

a) It focuses on the human aspects of workers.

9. Which of the following is true of SERVQUAL? a) It includes five service quality dimensions. b) It can measure the gap between government officials and citizens. c) Both a and b d) None of the above

a) It includes five service quality dimensions.

9. Which of the following is true of the EFQM Excellence Award? a) Its goal is to recognize the best performing organizations. b) It allows companies to be familiar with the MBNQA process. c) Both a and b d) None of the above

a) Its goal is to recognize the best performing organizations.

7. Valdosta Catering specializes in box lunch catering for business meetings. Under ideal conditions, it can handle a peak demand of 200 orders in a single day. Under normal conditions, it can handle up to 120 orders. Orders processed for last month averaged 150 per day. Which of the following is true? a) Last month, the utilization rate relative to the maximum capacity is 75% b) If the company needs to handle 150 orders per day for more than a few months, it should consider reducing its effective capacity. c) Both a and b d) None of the above

a) Last month, the utilization rate relative to the maximum capacity is 75%

10. In the basic EOQ model, only __ is a decision variable. a) Lot size b) Ordering cost c) Both a and b d) None of the above

a) Lot size

7. In ___, finished products are made in advance of customer orders and held in inventory. a) Make-to-stock b) Assemble-to-order c) Make-to-order d) Ready-to-order

a) Make-to-stock

2. In ___ operations, it is possible to rely on inventory as a buffer to absorb fluctuations in demand. a) Manufacturing b) Service c) Both a and b d) None of the above

a) Manufacturing

8. In __ process structure, two or more activities do the same task simultaneously. a) Parallel b) Sequential c) Vertical d) Multiple

a) Parallel

9. ___ is the process of collecting, analyzing and reporting the data regarding the performance of a process. a) Performance measurement b) Utilization rate c) Both a and b d) None of the above

a) Performance measurement

2. A ___ is a system of activities that transforms inputs into valuable outputs. a) Process b) Procurement c) Designing d) Disposal

a) Process

4. ___ can be defined as the specific levels of performance that a process can generate. a) Process capabilities b) Process thinking c) Performance measurement d) Flows

a) Process capabilities

1. ___ is a way of viewing activities in an organization as a collection of processes. a) Process thinking b) A customer's perspective c) An operation d) Process capacity

a) Process thinking

9. Lawyers, doctors, consultants, and accountants are examples of ___. a) Professional service b) Service factory c) Service shop d) Mass service

a) Professional service

1. A ___ is a series of activities that need to be completed in order to achieve specific outcomes. a) Project b) Constraint c) Flow d) Capacity

a) Project

7. A company that sells products like newspapers should use a ___ model as an inventory model. a) Single-period b) Multi-period c) Continuous review d) Periodic review

a) Single-period

3. The First Industrial Revolution was stimulated by technological breakthroughs such as: a) Spinning Jenny b) Assembly line c) Both a and b d) None of the above

a) Spinning Jenny

8. A ___ is a network of organizations and activities involved in designing, transforming, consuming and disposing of goods and services. a) Supply chain b) Total customer experience c) Quality control d) All of the above

a) Supply chain

10. Refer to the computer manufacturer's case above. The company can use the actual output of each machine last month to determine: a) The utilization rate of each operation relative to its maximum capacity b) The effective capacity of each operation c) Both a and b d) None of the above

a) The utilization rate of each operation relative to its maximum capacity

9. Which of the following is true of the basic EOQ model? a) This model assumes that demand is constant over time. b) This model can be considered a single period model. c) Both a and b d) None of the above

a) This model assumes that demand is constant over time.

6. The ___ shows the process average (central tendency) changes. a) X bar chart b) R chart c) Histogram d) Normal distribution

a) X bar chart

3. The ___, which provide a path to continuing quality improvement, can be used in a logical order. a) Process maps b) Basic seven tools c) Check sheets d) Sequential tools of quality

b) Basic seven tools

3. ___ produces a moderate volume of products in groups (batches) and not in a continuous stream. a) Job shop b) Batch c) Continuous process d) Service factory

b) Batch

7. A ___ is an activity that limits the overall output of a process. a) Stoppage b) Bottleneck c) Clog d) Blockage

b) Bottleneck

5. The ___ is the highest output rate that a process can achieve under normal conditions. a) Maximum capacity b) Effective capacity c) Minimum capacity d) Efficient capacity

b) Effective capacity

6. The ___ is the highest output rate that a process can achieve under normal conditions. a) Maximum capacity b) Effective capacity c) Minimum capacity d) Efficient capacity

b) Effective capacity

7. In the U.S., mass production through the use interchangeable parts has led to: a) Strong demand for skilled and specialized workers b) Emphasis on the open-mindedness of the professional manager c) Both a and b d) None of the above

b) Emphasis on the open-mindedness of the professional manager

6. Which of the following is true of the Deming Prize? a) The recipient is awarded by the U.S. Department of Commerce. b) It is designed to reward firms that successfully apply quality principles. c) Both a and b d) None of the above

b) It is designed to reward firms that successfully apply quality principles.

7. Which of the following is true of the Malcolm Baldrige National Quality Award? a) The award is valid for 3 years and is renewable upon a quality audit. b) It is not given for specific products/services. c) Both a and b d) None of the above

b) It is not given for specific products/services.

2. Which of the following is true of Taylor's scientific management? a) It sought to integrate planning with execution. b) It was criticized for ignorance of human elements. a) Both a and b d) None of the above

b) It was criticized for ignorance of human elements.

4. Which of the following is true of Taylor's scientific management? a) It sought to integrate planning with execution. b) It was criticized for ignorance of human elements. c) Both a and b d) None of the above

b) It was criticized for ignorance of human elements.

8. ___ charts, which are aided by the 80/20 rule, are used to identify and prioritize problems to be solved. a) Multiple b) Pareto c) Cause-and-effect d) Bar chart

b) Pareto

2. ___ is the combination of planning, directing, and controlling resources in a project to achieve specific goals within budget and time constraints. a) Process principle b) Project management c) Capacity management d) Constraint principle

b) Project management

7. In a ___ project, the project team is made up of functional representatives that are fully dedicated to the project for the duration of the project's life. a) Functional b) Pure c) Matrix d) Hybrid

b) Pure

6. ___ is more difficult for services, as it is not always easy to objectively measure a service product's attributes. a) Inventory management b) Quality control c) Both a and b d) None of the above

b) Quality control

4. ___ produces a huge volume of discrete products through the same sequence of activities. a) Job shop b) Repetitive process c) Mass service d) Professional service

b) Repetitive process

5. Service operations managers often use ___ systems to help customers avoid long wait times. a) Energy efficient lighting b) Reservation c) Both a and b d) None of the above

b) Reservation

10. ___ provides a standardized service with high capital investment. a) Professional service b) Service factory c) Service shop d) Mass service

b) Service factory

7. The ___ is defined as a bundle of goods and services that is provided in some environment. a) Service combination b) Service package c) SERVQUAL d) Total experience

b) Service package

6. Service quality can be measured after delivery mainly because ___: a) Governments have mandated it. b) Services cannot be stored in advance. c) Product quality can be inspected before delivery. d) Services are heterogeneous.

b) Services cannot be stored in advance.

2. Which of the following is true of Deming's JIT purchasing? a) Getting the lowest possible price b) Small lots with frequent deliveries c) Both a and b d) None of the above

b) Small lots with frequent deliveries

6. Which of the following is true of interchangeable parts? a) It is also called the British system of manufacturing. b) The Ford Motor Company's Model T was the automobile that used interchangeable parts. c) Both a and b d) None of the above

b) The Ford Motor Company's Model T was the automobile that used interchangeable parts.

8. The ___ is a hierarchical listing of project activities. a) Project network deliverable b) Work breakdown structure c) Project chart d) Critical path

b) Work breakdown structure

6. Refer to the previous question. the company's days in inventory is about ___. a) 7.98 b) 29.11 c) 45.77 d) 2912.7

c) 45.77

2. ___ is any activity that transforms an input. a) Process thinking b) A customer's perspective c) An operation d) Process capacity

c) An operation

1. Major types of inventory can be categorized by its ____. a) Stage b) Function c) Both a and b d) None of the above

c) Both a and b

1. Prior to the Industrial Revolution, work was carried out under ___. a) Domestic system b) Craft guilds c) Both a and b d) None of the above

c) Both a and b

1. The product process matrix shows that the choice of production process depends on two dimensions, including ___. a) Production volume per model b) Product variety c) Both a and b d) None of the above

c) Both a and b

10. Technologies that are likely to be influential in manufacturing in the future include: a) Internet of Things b) Radio frequency identification c) Both a and b d) None of the above

c) Both a and b

10. To complete the wing assembly for an experimental aircraft, Scott has laid out the seven major activities involved. Based on this information, Scott plans to conduct a PERT analysis. Which of the following is true of a project network for this project? Activity Immediate predecessors Time A - 2 B - 3 C A 5 D B 9 E C, D 5 F D 5 G E 2 a) A dummy starting activity should be created. b) A dummy finishing activity should be created. c) Both a and b d) None of the above

c) Both a and b

10. Which of the following is true of the two-dimensional difference technique in SERVQUAL? a) It is useful if there is enough variation in the response given to different dimensions. b) Service quality dimensions located in the second quadrant should be emphasized to improve customer services. c) Both a and b d) None of the above

c) Both a and b

10. ___ shows when the variation of a process has changed. a) Process variation chart b) R chart c) Both a and b d) None of the above

c) Both a and b

2. ___ is an additional quantity of an item held by a company in inventory in order to reduce the risk that the item will be out of stock. a) Safety inventory b) Buffer inventory c) Both a and b d) None of the above

c) Both a and b

3. While inventory control is a major issue in manufacturing operations, the corresponding problem is ___ in service operations. a) Customer waiting b) Queuing c) Both a and b d) None of the above

c) Both a and b

4. Inventory carrying costs include: a) Shrinkage costs b) Obsolescence costs c) Both a and b d) None of the above

c) Both a and b

4. ___ is the German vision for the future of manufacturing. a) Industry 4.0 b) The Fourth Industrial Revolution c) Both a and b d) None of the above

c) Both a and b

5. Faced with variable demand and a time-perishable capacity to provide the service, a manager has several options such as: a) Reservations b) Price incentives c) Both a and b d) None of the above

c) Both a and b

5. Popular quality principles from JIT include: a) Process control b) Continual improvement c) Both a and b d) None of the above

c) Both a and b

6. The purpose of operational management activities is to produce ___. a) Tangible goods b) Intangible services c) Both a and b d) None of the above

c) Both a and b

8. In a ____ model, the trigger for placing an order occurs at regular interval. a) Order-up-to b) Periodic review c) Both a and b d) None of the above

c) Both a and b

9. Job titles that represent operations managers include: a) Enterprise Integration Leader b) Materials Planning Manager c) Both a and b d) None of the above

c) Both a and b

9. Which of the following is true of PERT? a) It stands for the project evaluation and review technique. b) It is a project management planning tool. c) Both a and b d) None of the above

c) Both a and b

9. ___ is the German vision for the future of manufacturing. a) Industry 4.0 b) The Fourth Industrial Revolution c) Both a and b d) None of the above

c) Both a and b

5. The ___ are simple documents that are used for collecting the data in real-time and at the location where the data is generated. a) Pareto charts b) Real-time error sheets c) Check sheets d) Error-checking charts

c) Check sheets

8. Suppose that your tooth pain went away after visiting a dentist. In the service package, this feature can be considered ___. a) Supporting facility b) Facilitating goods c) Explicit services d) Implicit services

c) Explicit services

4. Which of the following is NOT true of a process map? a) It is a picture of a process. b) It helps us understand the entire process in a company. c) It can be used to identify and prioritize problems to be solved. d) A value stream map is a special type of process maps.

c) It can be used to identify and prioritize problems to be solved.

8. In ___, final products are made entirely after a customer places an order. a) Make-to-stock b) Assemble-to-order c) Make-to-order d) Ready-to-order

c) Make-to-order

10. According to a case study "The organization of the catering process for the production of airline meals", an airline meal preparation process is similar to a ___ process. a) Designing b) Souring c) Manufacturing d) Maintenance

c) Manufacturing

6. ___ is a process for producing goods to meet individual customer's needs with near mass production efficiency. a) Service shop b) Continuous process c) Mass customization d) Professional service

c) Mass customization

5. ___ refers to the limit on the amount of output that a process can produce given an amount of inputs and resources available to the process. a) Absorptive capacity b) Resource capacity c) Process capacity d) Constraint capacity

c) Process capacity

7. The ___ refers to all the interaction a customer has with a business, from the time the customer first made contact with the company up to the present day. a) Full exposure b) Customer cycling c) Total customer experience d) Customer satisfaction path

c) Total customer experience

5. A company reported cost of goods sold at $358.1 billion and inventory valued at $44.9 billion in 2014. The company's inventory turnover is about ___ in that year. a) 0.13 b) 0.18 c) 5.62 d) 7.98

d) 7.98

1. Basically, operations management activities aim to create and enhance the value of goods and services by increasing their ___: a) Economic value b) Functional value c) Psychosocial value d) All of the above

d) All of the above

1. Distinctive aspects of service operations include: a) Simultaneity b) Perishability c) Intangibility d) All of the above

d) All of the above

10. Basic TOC principles include: a) Every process has a constraint. b) Every process must be managed as a system. c) Every process must continuously improve. d) All of the above

d) All of the above

3. Common challenges that project managers face include: a) Projects are not routine. b) Projects involve many functional specialists. c) Projects often involve lots of conflicts. d) All of the above

d) All of the above

3. Common inputs include: a) Materials b) Capital c) People d) All of the above

d) All of the above

3. The operations of an airport include: a) Flight-scheduling processes b) Ticketing processes c) Security processes d) All of the above

d) All of the above

4. Social factors important to the success of projects include: a) Team culture b) Team members' enthusiasm c) The influence of other team members d) All of the above

d) All of the above

5. A good project objective statement contains ___ in clear terms. a) Major deliverables b) Schedule c) Resources required d) All of the above

d) All of the above

(9-10) The following table shows a computer manufacturer's overall production process information for last month. The overall production sequence is A -> B -> C -> D. Some operations (A and C) use only a single machine, while the other operations (B and D) use multiple machines that perform the same job simultaneously. For the company's overall production process: Operation Machine Maximum capacity of each machine (units/hour) Actual output of each machine last month (units/hour) A A1 400 189 B B1 100 47 B2 80 41 B3 150 70 B4 125 59 C C1 350 177 D D1 190 80 D2 235 102 9. Which of the following is true of this process? a) The maximum capacity of this process is 400. b) The bottleneck of this process is Machine B2. c) Both a and b d) None of the above

d) None of the above

1. Which of the following is true of SPC? a) It stands for standard product control. b) Dr. Kaoru Ishikawa applied SPC methods in the United States during World War II. c) Both a and b d) None of the above

d) None of the above

1. Which of the following is true of product/service quality dimensions? a) Product reliability represents the degree to which a product tolerates stress without failing. b) Aesthetics represents the physical appearance of the service facility. c) Both a and b d) None of the above

d) None of the above

1. Which of the following is true of the First Industrial Revolution? a) Craft guilds were established to produce goods. b) Putting-out system facilitated many technological breakthroughs. c) Both a and b d) None of the above

d) None of the above

10. Which of the following is true of the steps involved in obtaining an ISO 9001 certification? a) The International Organization for Standardization assigns a reviewer to conduct an onsite audit. b) A team of six reviewers discusses their evaluation of each application. c) Both a and b d) None of the above

d) None of the above

2. Which of the following is true of the First Industrial Revolution? a) Craft guilds were established to produce goods. b) Putting-out system facilitated many technological breakthroughs. c) Both a and b d) None of the above

d) None of the above

3. Which of the following is true of Henry Ford? a) He published the Principles of Scientific Management in 1911. b) He highlighted the importance of the Hawthorne effect on the assembly line. c) Both a and b d) None of the above

d) None of the above

3. Which of the following is true the red bead experiment? a) White beads are considered as defective products. b) Juran developed it to point out poor management practices. c) Both a and b d) None of the above

d) None of the above

5. Which of the following is true of Henry Ford? a) He published The Principles of Scientific Management in 1911. b) He highlighted the importance of the Hawthorne effect on the assembly line. c) Both a and b d) None of the above

d) None of the above

5. Which of the following is true of a continuous process? a) Examples made from this process include refrigerators and cell phones. b) It is concerned with discrete products. c) Both a and b d) None of the above

d) None of the above

8. Suppose that you are a manager of a sandwich restaurant, which offers extensive catering services for large groups of people. You are interested in improving a process for making a "ham & cheese sandwich with chips" in your restaurant. There are three operations and the overall production sequence is A -> B -> C. There are four employees in this process: • Operation A - Mary• Operation B - Jane and Elaena (they do the same task)• Operation C - Olivia You checked the maximum capacity of each operation and obtained the following results: • Operation A - Mary: 1000• Operation B - Jane: 600; Elaena: 500 (Together: 1100)• Operation C - Olivia: 900 Which of the following is true? a) The maximum capacity of this process is 1100. b) The effective capacity of this process is 900. c) Both a and b d) None of the above

d) None of the above