Week 3 OMGT 5003

A job shop is an example of a(n): A) repetitive process. B) continuous process. C) line process. D) intermittent process. E) specialized process.

D) intermittent process.

A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called: a flexible manufacturing system. an automatic guided vehicle (AGV) system. robotics. a manufacturing cell. an adaptive control system.

a flexible manufacturing system.

Effective capacity is the: capacity a firm expects to achieve given the current operating constraints. sum of all of the organization's inputs. maximum output of a system in a given period. average output that can be achieved under ideal conditions. minimum usable capacity of a particular facility.

capacity a firm expects to achieve given the current operating constraints.

Which of the following represents a common way to manage capacity in the service sector? reservations "early bird" specials in restaurants appointments changes in staffing levels first-come, first-served service rule

changes in staffing levels

Adding a complementary product to what is currently being produced is a demand management strategy used when: demand exceeds capacity. the existing product has seasonal or cyclical demand. price increases have failed to bring about demand management. efficiency exceeds 100 percent. capacity exceeds demand for a product that has stable demand.

demand exceeds capacity.

Net present value will be greater: as a fixed set of cash receipts occurs later rather than earlier. if the future value of a cash flow is smaller. for one end-of-year receipt of $1200 than for twelve monthly receipts of $100 each. for a 4% discount rate than for a 6% discount rate. All of these are true.

for a 4% discount rate than for a 6% discount rate.

Break-even is the number of units at which: total revenue equals total cost. total profit equals total cost. total revenue equals total fixed cost. total revenue equals total variable cost. total revenue equals price times quantity.

total revenue equals total cost.

A retailer is considering building a large store. If the local economy experiences expansion, the firm expects the store to earn a $2,000,000 profit next year. If the local economy experiences a contraction, the firm expects the store to lose $400,000 next year. Analysts estimate a 20% chance for the local economy to experience an expansion next year (hence an 80% chance for contraction). What is the expected monetary value (EMV) of building the large store? $1,520,000 $720,000 $80,000 $2,000,000 $1,600,000

$80,000 = (.2*2,000,000)-(.8*400,000)

A tortilla chip workstation produces 1,000 chips in 20 seconds. What is its bottleneck time? 20 seconds .02 seconds per chip 50 chips per second 6000 chips per minute 20,000 seconds

.02 seconds per chip

A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm's total of $60,000. When performing multiproduct break-even analysis, what is the weighted contribution of this product?

0.133

A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the throughput time of the system? 7 4 35 9 18

35

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals 90% of design capacity. If the number of students who actually got their orientation session is 1500, what is the efficiency of the system? 1710 students 90% 1350 students 78.9% 87.7%

87.7% = 1500/(1900*.9)

The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put into use, the program has become more complex, so that 1050 now represents the most employees that can be trained per year. In the past year, 950 employees were trained. The efficiency of this system is approximately ________ and its utilization is approximately ________. 950 employees; 1050 employees 79.2 percent; 90.5 percent 110.5 percent; 114.3 percent 90.5 percent; 79.2 percent 87.5 percent; 950 employees

90.5 percent; 79.2 percent

Which of the following techniques is NOT a technique for dealing with a bottleneck? Schedule throughput to match the capacity of the bottleneck. Increase the capacity of the constraint. Have cross-trained employees available to keep the constraint at full operation. Develop alternate routings. All are techniques for dealing with bottlenecks.

All are techniques for dealing with bottlenecks.

Additive manufacturing can use which of the following materials? plastics ceramics living cells chocolate All of these

All of these

An iso-profit line: can be used to help solve a profit maximizing linear programming problem. is parallel to all other iso-profit lines in the same problem. is a line with the same profit at all points. All of these None of these

All of these

In which of the following has LP been applied successfully? minimizing distance traveled by school buses carrying children minimizing 911 response time for police patrols minimizing labor costs for bank tellers while maintaining service levels determining the distribution system for multiple warehouses to multiple destinations All of these

All of these

Process redesign: is the fundamental rethinking of business processes. is sometimes called process reengineering. tries to bring about dramatic improvements in performance. often focuses on activities that cross functional lines. All of these

All of these

The advantage of additive manufacturing includes supporting: innovative product design. minimal custom tooling. low inventory. speed to market. All of these

All of these

Value-stream mapping: is a variation of time-function mapping. examines the supply chain to determine where value is added. extends time function mapping back to the supplier. starts with the customer and works backwards. All of these are true.

All of these are true.

Which of the following is TRUE regarding vision systems? They are consistently accurate. They are modest in cost. They do not become bored. All of these are true. None of these is true.

All of these are true.

Which of the following is true regarding the concept of flexibility? It is the ability to respond with little penalty in time, cost, or customer value. It may be accomplished with digitally controlled equipment. It may involve modular or movable equipment. All of these are true. None of these is true.

All of these are true.

Which of the following is not one of the four principles of bottleneck management? Bottlenecks should be moved to the end of the system process. Increasing capacity at non-bottleneck stations is a mirage. Increased bottleneck capacity is increased system capacity. Lost time at the bottleneck is lost system capacity. Release work orders to the system at the bottleneck's capacity pace.

Bottlenecks should be moved to the end of the system process.

Which of the following is FALSE regarding capacity expansion? "Average" capacity sometimes leads demand, sometimes lags it. If "lagging" capacity is chosen, excess demand can be met with overtime or subcontracting. Total cost comparisons are a rather direct method of comparing capacity alternatives. Capacity may only be added in large chunks. In manufacturing, excess capacity can be used to do more setups, shorten production runs, and drive down inventory costs.

Capacity may only be added in large chunks.

Of the four approaches to capacity expansion, the approach that "straddles" demand: uses incremental expansion. uses one-step expansion. at some times leads demand, and at other times lags. works best when demand is not growing but is stable. Choices uses incremental expansion and at some times leads demand, and at other times lags are both correct.

Choices uses incremental expansion and at some times leads demand, and at other times lags are both correct.

The theory of constraints has its origins in: material requirements planning. linear programming theory. the theory of finite capacity planning. Goldratt and Cox's book, The Goal: A Process of Ongoing Improvement. the theory of economies of scale.

Goldratt and Cox's book, The Goal: A Process of Ongoing Improvement.

The Theory of Constraints (TOC) was popularized by: Ford. Goldratt and Cox. Taguchi. Motorola and GE. Deming.

Goldratt and Cox.

Which of the following technologies could enable a cashier to scan the entire contents of a shopping cart in seconds? FMS CAD/CAM RFID ASRS AGV

RFID

Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. Station 3 has two identical machines, each of which can process a unit in 12 minutes (each unit only needs to be processed on one of the two machines. Station 4 can produce a unit in 5 minutes. Station 5 can produce a unit in 8 minutes. Which station is the bottleneck station? Station 1 Station 2 Station 3 Station 4 Station 5

Station 2

Which of the following is FALSE regarding repetitive processes? They are the classic assembly lines. They allow easy switching from one product to the other. They use modules. They include the assembly of basically all automobiles. They have more structure and less flexibility than a job shop layout.

They allow easy switching from one product to the other.

Which of the following products is likely to be assembled on a repetitive process line? automobiles steel beer custom personal computers custom cakes

automobiles

Effective capacity is the a. maximum output of a system in a given period b. capacity a firm expects to achieve given the current operating constraints c. average output that can be achieved under ideal conditions d. minimum usable capacity of a particular facility e. sum of all of the organization's inputs

b. capacity a firm expects to achieve given the current operating constraints

Basic break-even analysis typically assumes that a. revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases b. variable costs and revenues increase in direct proportion to the volume of production c. both costs and revenues are made up of fixed and variable portions d. costs increase in direct proportion to the volume of production, while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts e. All of the above are assumptions in the basic break-even model.

b. variable costs and revenues increase in direct proportion to the volume of production

Which of the following costs would be incurred even if no units were produced? transportation costs purchasing costs raw material costs direct labor costs building rental costs

building rental costs

Computer-integrated manufacturing (CIM) includes manufacturing systems that have: computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated. transaction processing, management information systems, and decision support systems integrated. automated guided vehicles, robots, and process control integrated. all of their computers integrated with the marketing department. robots, automated guided vehicles, and transfer equipment integrated.

computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated.

In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except: tight quality control. standardization. removing some services. automation. customization.

customization.

Utilization will always be lower than efficiency because: effective capacity is greater than design capacity. effective capacity is less than design capacity. effective capacity equals design capacity. expected output is less than actual output. expected output is less than rated capacity.

effective capacity is less than design capacity

Effective capacity × Efficiency equals: utilization. actual capacity. efficient capacity. expected output. design capacity.

expected output.

What is a drawing of the movement of material, product, or people? process chart vision system flowchart service blueprint process map

flowchart

Service blueprinting: uses the schematic of a house to diagram a service process. focuses on the provider's interaction with the customer. provides the basis to negotiate prices with suppliers. determines the best time for each step in the process. mimics the way people communicate.

focuses on the provider's interaction with the customer

A product-focused process is commonly used to produce: high-volume, high-variety products. high-volume products of either high- or low-variety. low-variety products at either high- or low-volume. low-volume, high-variety products. high-volume, low-variety products.

high-volume, low-variety products.

In mass service and professional service, the operations manager should focus extensively on: cost-cutting initiatives. sophisticated scheduling. equipment maintenance. automation. human resources.

human resources.

What have restaurants such as Steakhouses and Stacked Restaurants used to replace their traditional paper menus? singing descriptions spoken descriptions index cards containing a picture of each item menus painted on the walls iPad menus

iPad menus

The advantage of additive manufacturing includes supporting: innovative product design. ASRS and AGVs. information numeric control. flexible manufacturing systems (FMS). All of these

innovative product design.

Net present value: is profit after taxes. is gross domestic product less depreciation. is sales volume less sales and excise taxes. ignores the time value of money. is the discounted value of a series of future cash receipts.

is the discounted value of a series of future cash receipts.

A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5 percent, the net present value of this investment is: greater than $80,000 but less than $130,000. greater than $130,000. less than $30,000. impossible to calculate, because no interest rate is given. impossible to calculate, because variable costs are not known.

less than $30,000. (4*(20,000-(50,000*.95)))-50,000 = 20,000

Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched? lower resort hotel room prices on Wednesdays appointments reservations first-come, first-served rule None of these

lower resort hotel room prices on Wednesdays

Which of the following is not one of the strategies for improving service productivity? self-service mass customization separation automation scheduling

mass customization

A difference between minimization and maximization problems is that minimization problems cannot be solved with the corner-point method. maximization problems often have unbounded regions. minimization problems often have unbounded regions. minimization problems cannot have shadow prices. minimization problems are more difficult to solve than maximization problems.

minimization problems often have unbounded regions.

Using the iso-profit line solution method to solve a maximization problem requires that we: find the value of the objective function at the origin. move the iso-profit line away from the origin until it barely touches some part of the feasible region. move the iso-cost line to the lowest level that still touches some part of the feasible region. test the objective function value of every corner point in the feasible region. None of these

move the iso-profit line away from the origin until it barely touches some part of the feasible region.

In a linear programming formulation, a statement such as "maximize contribution" becomes a(n): decision variable. constraint. violation of linearity. objective function. slack variable.

objective function.

The Theory of Constraints (TOC) strives to reduce the effect of constraints by: offloading work from constrained workstations. increasing constrained workstation capability. changing workstation order to reduce throughput time. offloading work from constrained workstations and increasing constrained workstation capability offloading work from constrained workstations, increasing constrained workstation capability, and changing workstation order to reduce throughput time

offloading work from constrained workstations and increasing constrained workstation capability

Which of the following is not a requirement of a linear programming problem? an objective function to be maximized or minimized one constraint or resource limit for each decision variable an objective function, expressed in linear terms alternative courses of action constraints, expressed as linear equations or inequalities

one constraint or resource limit for each decision variable

What is a common method used to increase capacity with a lag strategy? overtime subcontracting new facilities new machinery overtime and subcontracting

overtime and subcontracting

Goods made to order are typical of ________ and ________ approaches while goods made to forecast are typical of ________ and ________ approaches. repetitive, process; mass customization, product product, process; repetitive, mass customization process, mass customization; repetitive, product repetitive, product; mass customization, process product, mass customization; repetitive, process

process, mass customization; repetitive, product

High fixed costs and low variable costs are typical of which approach? product process mass customization repetitive product and mass customization

product and mass customization

An assembly line is an example of a: line process. product-focused process. process-focused process. specialized process. repetitive process.

repetitive process.

Break-even analysis can be used by a firm that produces more than one product, but: the results are estimates, not exact values. the firm must allocate some fixed cost to each of the products. each product has its own break-even point. the break-even point depends upon the proportion of sales generated by each of the products. None of these statements is true.

the break-even point depends upon the proportion of sales generated by each of the products.

One fundamental difference between a process chart and a flowchart is that: the process chart adds a time dimension to the horizontal axis, while a flowchart is not time-oriented. the process chart includes the supply chain, while the flowchart stays within an organization. the process chart is more like a table, while the flowchart is more like a schematic diagram. the process chart focuses on the customer and on the provider's interaction with the customer, while the flowchart does not deal directly with the customer. None of these is true, because a process chart and a flowchart are the same thing.

the process chart is more like a table, while the flowchart is more like a schematic diagram.

The main disadvantage of introducing constraints into a linear program that enforce some or all of the decision variables to be either integer or binary is that: the programs may take longer to solve. Excel can no longer be used to solve the program. we cannot have "yes-or-no" decisions in the linear program. the constraints are difficult to formulate. the solutions will no longer be optimal.

the programs may take longer to solve.