Ops Exam 1

Place these steps in the strategic analysis phase of formulating an operations and supply chain strategy in the correct order.

1. Define Mission 2. Conduct Strategic Analysis 3. Define Strategic Priorities

The Buckeye Trampoline Shop produces one size of trampolines. Out of the 100 trampolines that begin in production each month, only 75 percent pass inspection and are considered good enough to sell. The other 25 percent are scrapped due to quality problems that are identified after they have completed the production process. Each trampoline sells for $418. Each trampoline only requires 8 hours of labor because much of the process is automated. Every employee works an average of 150 hours per month. Employees are paid at $12 per hour, the materials cost is $60 per trampoline, and overhead cost is $3,500. What is the multifactor productivity ratio for Buckeye Trampoline Shop? (Enter your response rounded to one decimal place.)

1.6

Total Quality Management (TQM) became popular during what time frame

1980s

Zara sells 13% of its fast fashion items at a 15% markdown. If the value of each item is $35 and the cost to make each item is $16, then what is the productivity ratio if Zara sells 1,500 units? (Enter your response rounded to two decimal places.)

2.14

Buckeye Corporation produces footballs for NCAA teams. They are considering downsizing their operations into a less expensive facility. Their only criteria are the multifactor productivity ratio. Currently, they are making 150 footballs per week. Each football sells for $99 and has $15 of material cost. Buckeye Corp. employs 8 people, each working 40 hours per week and earning $10 per hour. Overhead costs in the current facility are $370 per week. The new facility is slightly smaller. This would result in overhead costs of $250 per week and producing only 100 footballs per week because the facility only has space to employ 6 people. What is the higher multifactor productivity ratio out of the two options? (Enter your response rounded to 2 decimal places.)

2.55

The productivity ratio of the supplier is 4. The productivity ratio of the manufacturer is 7/4. For every $3 of input, what is the final output value of this interconnected process from supplier to manufacturer? (Enter your response rounded to whole number.)

21

A chocolate bar manufacturer has been monitoring and trying to improve its productivity. The plant runs one 10-hour shift per day in a 5-day workweek. 15 employees work in the plant. In Week 1, 1250 units were produced. Management made some changes in the next two weeks, including hiring 2 more employees. In Week 4, 1,555 units were produced. What percent improvement in labor productivity (units/hr) did the plant achieve from Week 1 to Week 4? (DO NOT ROUND UNTIL END) Enter your response without the % sign & rounded to 1 decimal place.

9.8

Triple bottom line

A business strategy that includes social, economic, and environmental criteria.

Value

A customer's subjective assessment of benefits relative to costs in determining the worth of a product

Product-process matrix

A framework depicting when the different production process types are typically used, depending on product volume and how standardized the product is.

Which of the following is an example of a product made with a project layout?

A house

Continuous process

A process that converts raw materials into finished product in one continuous process.

Assemble-to-order

A production environment where pre-assembled components, subassemblies, and modules are put together in response to a specific customer order.

Make-to-stock

A production environment where the customer is served "on-demand" from finished goods inventory.

Make-to-order

A production environment where the product is built directly from raw materials and components in response to a specific customer order.

Efficiency

A ratio of the actual output of a process relative to some standard. Also, being "efficient" means doing something at the lowest possible cost.

Assembly line

A setup in which an item is produced through a fixed sequence of workstations, designed to achieve a specific production rate.

Operations Management is defined as "The systematic design, direction, and control of processes that transform inputs into services and products for internal, as well as external, customers". Therefore, operations management only apply in these industries:

All Industries

Operational effectiveness relates to processes that span which of the following parts of the business?

All business functions

Which of the following is an example of a goods producing business? Please select all that apply.

An automobile manufacturer A car manufacturer

A network can be added for which of the following?

Any manufacturing Any service

_______ _______ is where work processes are arranged according to the progressive steps by which the

Assembly Line

What involves the analysis of data to better solve business problems?

Business analytics

It takes a fresh look at what the organization is trying to do in all its business processes, and then eliminating non-value-added steps and computerizing the remaining ones to achieve the desired outcome.

Business process reengineering

Supply chain analytics involves leveraging the information for making decisions related to resources. Those resources include all of the following except...

Cash Flow

The __________ is the focal point of all decisions and actions of the service organization.

Client

Which of the following would be recommended by the product-process matrix for the highest product standardization?

Continuous

Where does an automobile manufacturer fall on the goods-service continuum?

Core goods

The term that refers to the physical presence of the customer in the system is known as

Customer contact

What does selection of decoupling points determine? Select all that apply.

Customer lead times Inventory investment

Effectiveness

Doing the things that will create the most value for the customer.

The use of the Internet as an essential element of business activity.

Electronic commerce

Operationally, which of the following distinguishes one service system from another?

Extent of customer contact

In regards to the service package, the material purchased or consumed by the buyer or the items provided to the customer.

Facilitating goods

The role of operations in The Service Triangle is a major one. Which of the following are part of operations responsibility? Check all that apply.

Facilities Procedures Equipment Service systems Managing the workforce

True or false: All firms compete on the same dimensions.

False

True or false: Each activity in the strategic planning process is conducted only once a year.

False

True or false: Stakeholders are individuals or companies that legally own a portion of the company and are not influenced by the actions of of that company.

False

Which of the following is not one of the five basic work flow structures?

Flow line

Engineer-to-order

Here the firm works with the customer to design the product, which is then made from purchased materials, parts, and components.

In regards to the service package, the psychological benefits that the customer may sense only vaguely, or the extrinsic features of the service.

Implicit services

Services generally vary from day to day and even hour to hour as a function of the attitudes of the customers and the servers. Which of the following are exceptions to this?

Info // Hard Tech

In regards to the service package, the operations data that is provided to the customer, to enable efficient and customized services.

Information

_______ time is the time needed to respond to a customer order.

Lead

Which of the following is not a feature of a service package?

Location

Which of the following is not an element of the service triangle?

Maintenance

The issue of balancing the level of finished inventory against the level of service to the customer occurs in which type of firm?

Make-to-stock

Which type of firm invests in lean manufacturing programs in order to improve customer service levels for a given inventory investment?

Make-to-stock

A company known for delivering high-volume standardized goods and services is

Mcdonalds

When can a service innovation be patented?

Never

Process

One or more activities that transform inputs into outputs.

Order winners

One or more specific marketing-oriented dimensions that clearly differentiate a product from competing products.

Identify the two terms that describe marketing-oriented dimensions that are key to competitive success. (Check all that apply.)

Order qualifier Order winner

Which of the following is not used in a break-even calculation?

Overhead costs

Which of the following is are the production management tool used in planning and designing manufacturing process flow?

Process flow charts Assembly charts Route sheets

Which of the following is one of the dimensions depicted on a product-process matrix?

Product standardization

Headquartered in Germany, Aldi is one of the fastest growing discount supermarkets in the United States. In a recent advertisement aired on local television (Links to an external site.), Aldi claims: "you will like our products but love our prices." Which of the following is most true for Aldi?

Products are order qualifiers, price is an order winner

In the case of services, this may involve all types of follow-up activities required for after-sales support.

Returning

Break-even analysis is most suitable when all of the following conditions are met except for which one?

Revenue is much larger than variable cost

_____ involves the selection of suppliers that will deliver the goods and services needed to create the firm's product.

Sourcing

The _____ are individuals or organizations that legally own one or more shares of stock in the company.

Stockholders

Places these phases of formulating an operations and supply chain strategy in the correct order.

Strategic analysis Initiatives Implementation

Which of the following is an major corporate function that a firm should not outsource?

Strategic planning

Sustainability

The ability to meet current resource needs without compromising the ability of future generations to meet their needs.

high degree of customer contact

The physical presence of the customer in the system and the percentage of time the customer must be in the system relative to the total time it takes to perform the service.

low degrees of customer contact

The physical presence of the customer in the system and the percentage of time the customer must be in the system relative to the total time it takes to perform the service.

Based on the operational decisions discussed in the in-class video (Links to an external site.), what appear to be the competitive priorities for Jeni's?

Top quality product and top quality experience

True or false: Carrying finished goods inventory is more expensive than carrying raw material inventory.

True

True or false: Operations and supply chain management is focused on the systems that create and deliver an organization's products and services.

True

True or false: The customer order decoupling point is where inventory is positioned in the supply chain

True

True or false: The first step in analyzing any production system is to map the flow and operations.

True

Which of the following is one of the dimensions depicted on a product-process matrix?

Volume

Service package

a bundle of goods and services that is provided in some environment

A standard approach to choosing among alternative processes or equipment that uses fixed cost, variable costs, and revenue is known as

break-even analysis

Order qualifiers

characteristics that customers perceive as minimum standards of acceptability to be considered as a potential for purchase

Professor Newsom purchases paint from Sherwin-Williams Store when redecorating her home. She is therefore a customer of Sherwin-Williams and is ___________________________ in the supply chain.

downstream

Doing something at the lowest possible cost is known as

efficiency

The number of finished products is usually substantially ___________ han the number of components combined to produce the finished product.

higher

Getting a haircut is more like a service process because

if the appointment is missed, it can not be stored for another time.

Firms that service customers from finished goods inventory are known as

make-to-stock firms

Within every industry, there is usually a segment of the market that buys solely on the basis of low __________

price

Building service activities into a firm's product offering is known as

product-service bundling

A bundle of goods and services that is provided in some environment is known as a

service package

Which of the following describes the step where parts are procured from one of more suppliers?

sourcing

In the make-to-order and engineer-to-order environments, the customer order decoupling point could be in either raw materials at the manufacturing site or possibly even with the ________ inventory

supplier

Operations and supply chain management (OSCM)

the design, operations, and improvement of the systems that create and deliver the firm's primary products and services

Operations and supply chain strategy

the setting of board policies and plans that will guide the use of the resources needed by the firm to implement its corporate strategy

Lead time

the time needed to respond to a customer order

When you want to express the ratio of all outputs to all inputs, you should use a ________ productivity measure.

total

Customer order decoupling point

where inventory is positioned in the supply chain