Ops Management Exam 1 - Bumblauskas
Supply Chain Management
decides how to integrate the supply chain into the firm's strategy, including decisions that determine what is to be purchased from whom, and under what conditions
empowered employees
workplace requires more competence so ops managers enrich jobs and give more decision making power
If an activity whose normal duration is 15 days can be shortened to 10 days for an added cost of $2,000, the crash cost per period is: - $2,000 - $20,000 - $30,000 - $400 - $10,000
$400
Hard Rock Cafe
-`first opened in 1971, now have 110 restaurants in 40 countries -great inventory management with rock music memorabilia -create value with good food and entertainment -retail makes up 50% of profit3500 meals per day in Orlando alone -processes and modeling for putting items on menu and pricing them -all role of operations management
why study OM?
-how people organize themselves for productive enterprise-how goods and services are produced-understand what operations managers do-it's a costly part of an organization
What do operations managers do?
-planning -organizing -staffing -leading -controlling
Starbucks
-wanted to increase productivity by decreasing the time it takes to do things: don't require signatures for card payments under $25, change size of ice scoop, new espresso machines -productivity improved 27% -Howard Schultz was CEO, left, then came back to save them
A forecasting method has produced the following over the past five months. What is the mean absolute deviation? - -1.0 - -0.2 - 0.0 - 1.2 - 8.6
1.2
A foundry produces circular utility access hatches (manhole covers). If 120 covers are produced in a 10-hour shift, the productivity of the line is: - 1200 covers/hr - 2 covers/hr - 1.2 covers/hr - 12 covers/hr - none of the above
12 covers/hr
A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it would then be: - 14.4 covers/hr - 1200 covers/hr - 24 covers/hr - 240 valves/hr
14.4 covers/hr
Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labor productivity will increase by: - 20% - 50% - 40% - 25% - 10%
25%
John's House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5 to the previous month's demand, 3 to demand two months ago, and 1 to demand three months ago. If sales amounted to 1000 pancakes in May, 2200 pancakes in June, and 3000 pancakes in July, what should be the forecast for August? - 1622 - 2400 - 2067 - 3767 - 2511
2511
A time series trend equation is 25.3 + 2.1 X. What is your forecast for period 7? - 25.3 - 27.4 - 40.0 - 23.2 - cannot be determined
40.0
What is the approximate forecast for May using a four-month moving average? - 43 - 44 - 47 - 38 - 42
44
Which of the following is an example of globalization of operations strategy? - Ford's new auto models have dent-resistant panels. - A Chinese manufacturer, Haier, now operates plants in the United States. - Hard Rock Café provides an "experience differentiation" at its restaurants. - Boeing's Dreamliner has engines with higher fuel/payload efficiency. - All of the above are examples.
A Chinese manufacturer, Haier, now operates plants in the United States.
Which of the following is the best example of competing on low-cost leadership? - A firm produces its product with less raw material waste than its competitors. - A firm advertises more than its competitors. - A firm's research and development department generates many ideas for new products. - A firm offers more reliable products than its competitors. - A firm's products are introduced into the market faster than its competitors' products.
A firm produces its product with less raw material waste than its competitors
The critical path for the network activities shown below is ________ with duration ________. - A-D-E; 13 - A-B-E; 11 - A-B-C-D-E; 22 - A-B-D; 10 - C-E; 12
A-D-E; 13
The critical path for the network activities shown below is ________ with duration ________. - B-E; 13 - A-D-E; 19 - A-C; 12 - A-B-C-D-E; 29 - none of the above
A-D-E; 19
Which of the following statements regarding CPM is true? - All activities on the critical path have their LS equal their predecessor's EF. - The critical path is the shortest of all paths through the network. - The critical path is that set of activities that has positive slack. - Some networks have no critical path. - All of the above are false
All activities on the critical path have their LS equal their predecessor's EF
Examples of response to the global environment include: - Boeing's worldwide sales and production - a Chinese manufacturer, Haier, opening plants in the United States - Ford's partnerships with Volvo and Mazda - Benneton's flexibility in design, production, and distribution - All of the above are examples.
All of the above are examples.
One new trend in operations management is: - mass customization - rapid product development - global focus - empowered employees - All of the above are new trends in operations management.
All of the above are new trends in operations management.
Which of the following statements regarding Bechtel is true? - Its competitive advantage is project management. - Bechtel was the construction contractor for the Hoover Dam. - Bechtel's procurement program is global in nature. - While helping to rebuild Iraq, Bechtel's crews had to travel under armed escort. - All of the above are true
All of the above are true
Which of the following statements is true? - There is no such thing as a pure good. - Almost all services and almost all goods are a mixture of a service and a tangible product. - A pure service has only a tangible product component. - A pure good has no tangible product component. - None of the above is a true statement.
Almost all services and almost all goods are a mixture of a service and a tangible product
process and capacity design
Determines how a good or service is produced and commits management to specific technology, quality, human resources, and capital investments that determine much of the firm's basic cost structure.
human resources and job design
Determines how to recruit, motivate, and retain personnel with the required talent and skills. People are an integral and expensive part of the total system design.
Which of the following is not a step in the forecasting process? - Eliminate any assumptions. - Determine the use of the forecast. - Determine the time horizon. - Select forecasting model. - Validate and implement the results
Eliminate any assumptions
Which is not true regarding differences between goods and services? - Services tend to have a more inconsistent product definition than goods. - Services are generally produced and consumed simultaneously; tangible goods are not. - Goods tend to have higher customer interaction than services. - Services tend to be more knowledge-based than products. - None of the above is true.
Goods tend to have higher customer interaction than services
The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to production? - It has decreased by 8.3%. - It has increased by 50 sets/shift. - It has decreased by 9.1%. - It has increased by 37.5 sets/hr. - It has increased by 20%.
It has increased by 20%.
Which of the following statements regarding critical paths is true? - The duration of the critical path is the average duration of all paths in the project network. - Some activities on the critical path may have slack. - On a specific project, there can be multiple critical paths, all with exactly the same duration. - The shortest of all paths through the network is the critical path. - Every network has exactly one critical path.
On a specific project, there can be multiple critical paths, all with exactly the same duration
Which of the following statements regarding project management is false? - Gantt charts give a timeline for each of a project's activities, but do not adequately show the interrelationships of activities. - Gantt charts and PERT/CPM provide different information and thus can be used together. - A project organization works best for a project that is temporary but critical to the organization. - Project organization works well when the work contains simple, independent tasks. - None of the above is true.
Project organization works well when the work contains simple, independent tasks
layout strategy
Requires integrating capacity needs, personnel levels, technology, and inventory requirements to determine the efficient flow of materials, people, and information.
location strategy
Requires judgements regarding nearness to customers, suppliers, and talent, while considering costs, infrastructure, logistics, and government
A simple CPM network has three activities, D, E, and F. D is an immediate predecessor of E and of F. E is an immediate predecessor of F. The activity durations are D=4, E=3, F=8. - Slack at D is 3 units - The critical path is D-E-F, duration 15. - The critical path is D-F, duration 12. - Slack at E is 3 units - Both A and C are true
The critical path is D-E-F, duration 15.
Which of the following statements concerning CPM activities is false? - The late finish of an activity is the earliest late start of all preceding activities. - The early finish of an activity is the early start of that activity plus its duration. - The early start of an activity is the latest early finish of all preceding activities. - The late finish is the earliest of the late start times of all successor activities. - The late start of an activity is its late finish less its duration.
The late finish of an activity is the earliest late start of all preceding activities
Time series data may exhibit which of the following behaviors? - trend - cycles - random variations - seasonality - They may exhibit all of the above.
They may exhibit all of the above
Inorganic growth
a force outside the firm drives growth
operations management
activities that relate to the creation of goods and services through the transformation of inputs to outputs
Cost cutting in international operations can take place because of: - lower taxes and tariffs - lower indirect labor costs - lower wage scales - less stringent regulations - all of the above
all of the above
Multinational organizations can shop from country to country and cut costs through: - less stringent regulations - lower taxes and tariffs - lower wage scales - lower indirect labor costs - all of the above
all of the above
The Ten Critical Decisions of Operations Management include: - Maintenance - Layout strategy - Managing quality - Process and capacity design - all of the above
all of the above
prodividing variables
areas in which managers can take action to improve productivity labor, capital, management
contribution margin
can increase this by increasing sales (marketing), decreasing finance costs, or reducing production costs
The ability of an organization to produce goods or services that have some uniqueness in their characteristics is: - competing on productivity - competing on flexibility - competing on differentiation - time-based competition - mass production
competing on differentiation
Inventory Management
considers inventory ordering and holding decisions and how to optimize them as customer satisfaction, supplier capability, and production schedules are considered
growth
product life cycle: practical to change in price or quality image, strengthen niche
Productivity can be improved by: - decreasing outputs while holding inputs steady - decreasing inputs while holding outputs steady - increasing inputs while holding outputs steady - increasing inputs and outputs in the same proportion - none of the above
decreasing inputs while holding outputs steady
Design of goods and services
defines much of what is required of operations in the other OM decisions, usually determines the lower limit of cost and upper limit of quality, implications for sustainability and human resources
critical OM decisions
design of goods and services, managing quality, process and capacity design, location strategy, layout strategy, human resources and job design, supply-chain management, inventory management, scheduling, maintenance
scheduling
determines and implements intermediate and short term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands
managing quality
determines customer's quality expectations and establishes policies and procedures to identify and achieve that quality
According to the authors, which of the following strategic concepts allow firms to achieve their missions? - distinctive competency, cost leadership, and experience differentiation, distinctive competency, quality leadership, and capacity - productivity, efficiency, and quality leadership - differentiation, quality leadership, and quick response - differentiation, cost leadership, and quick response
differentiation, cost leadership, and quick response
Pepsico
diversified in brands: pepsi, frito-lay, tropicana, quaker, gatorade
The three major types of forecasts used by business organizations are: - exponential smoothing, Delphi, and regression - departmental, organizational, and territorial - economic, technological, and demand - causal, time-series, and seasonal - strategic, tactical, and operational
economic, technological, and demand
operations
essential function that creates the product
executives
essential function that deals with leadership, strategy, mission/vision
human resources
essential function that deals with staffing, development, retention, recruitment, training
marketing
essential function that generates demand
finance / accounting
essential function that tracks how well the organization is doing, pays bills, collects money
The term maquiladora is most synonymous with: - Chinese forced labor camps - areas that do not meet U.S. standards for workplace safety and pollution - home-based or cottage industry - free trade zones - none of the above
free trade zones
challenges in OM
global focus, supply chain partnering, sustainability, rapid product development, mass customization, just in time performance, empowered employees
supply chain
global network of organizations and activities that supplies a firm with goods and services
International Strategy
global operations strategy: global markets are penetrated using exports and licenses, low cost reduction and local responsiveness
global strategy
global operations strategy: operating decisions are centralized and headquarters coordinates the standardization and learning between facilities, high cost reduction and low responsiveness
multidomestic strategy
global operations strategy: operating decisions are decentralized to each country to enhance local responsiveness, low cost reduction and high local responsiveness
organic growth
growth from within the business
characteristics of services
intangible, produced and consumed at same time, often unique, high customer interaction, inconsistent product definition, often knowledge based, frequently dispersed
global operations strategies
international, multi-domestic, global, transnational
product life cycle
introduction, growth, maturity, decline
rapid product development
life span of products is becoming increasingly shorter, so we need to be more responsive and effective
essential functions across industries
marketing, operations, finance/accounting, human resources, executives
A forecast with a time horizon of about 3 months to 3 years is typically called a: - long-range forecast - medium-range forecast - weather forecast - strategic forecast - short-range forecast
medium-range forecast
Which of the following is not a type of qualitative forecasting? - executive opinions - consumer surveys - sales force composites - moving average - the Delphi method
moving average
just in time performance
moving away from batch shipments to save money
mass customization
moving away from standardized products bc consumers are increasingly aware of innovation and options
global focus
moving from local or national focus bc of rapid decline in communication and transportation costs
Eli Whitney, in the ________, provided the foundations for ________ in operations management. - United Kingdom; mass production - 1920s; statistical sampling - nineteenth century; interchangeable parts - U.S. Army; logistics - none of the above
nineteenth century; interchangeable parts
supply chain partnering
operations managers increasingly outsourcing and building long term partnerships with these people bc they can contribute unique expertise on the needs of end users
sustainability
ops managers concerned with designing products and processes that are ecologically sustainable
NAFTA seeks to: - phase out all trade and tariff barriers between the United States and Mexico - curb illegal immigration from Mexico to the United States - substitute cheap labor in Mexico for expensive labor in the United States - phase out all trade and tariff barriers between the United States, Canada, and Mexico - All of the above are NAFTA goals.
phase out all trade and tariff barriers between the United States, Canada, and Mexico
The phases of project management are: - planning, programming, and budgeting - planning, organizing, staffing, leading, and controlling - different for manufacturing projects than for service projects - GANTT, CPM, and PERT - planning, scheduling, and controlling
planning, scheduling, and controlling
introduction
product life cycle: best period to increase market share, R&D critical
decline
product life cycle: cost control critical
maturity
product life cycle: poor time to chance image, price, or quality, competitive costs become critical, defend market position
The two general approaches to forecasting are: - mathematical and statistical - qualitative and quantitative - judgmental and associative - historical and associative - judgmental and qualitative
qualitative and quantitative
productivity measurement problems
quality changes while input/output constant, external elements, lacking precise units of measure
productivity
ratio of outputs divided by one or more inputs, measure of process improvement
attract and retain global talent
reason to globalize: can recruit better employees bc they offer better growth opportunities and less chance of being laid off
attract and understand new markets
reason to globalize: chances for new products and services, extend life of the product
improve products
reason to globalize: firms can build relationships with others for mutual benefit
improve supply chain
reason to globalize: locate facilities where unique resources are available (i.e. expertise, low cost labor, raw materials)
reduce costs
reason to globalize: other countries often have less stringent government regulations on operation practices, can help lower taxes and tariffs, shifting low skilled jobs
improve operations
reason to globalize: reduced response time to customers, take advantage of advances in other countries
reasons to globalize
reduce costs, improve supply chain, improve products, attract and understand new markets, learn to improve operations, attract and retain global talent
Which of the following does not represent reasons for globalizing operations? - improve supply chain - reduce costs - reduce responsiveness - attract and retain global talent - All of the above are valid reasons for globalizing operations.
reduce responsiveness
maintainence
requires decisions that consider facility capacity, production demands, and personnel necessary to maintain a reliable and stable process
characteristics of goods
tangible, can be kept in inventory, consistent product definition, low customer interaction, production separate from consumption
production
the creation of goods and services, a measure of output
globalization
the process by which businesses or other organizations develop international influence or start operating on an international scale.
multifactor productivity
the ratio of many or all resources to the goods and services produced
Single-factor productivity
the ratio of one resources to the goods and services produced
