BA 360 - chp 1 Operations Management Practice Questions

How is the EF (earliest finish) computed?

ES (earliest start) + activity time

Correct impacts a maturing product might have on OM strategy:

-Manufacturing process stabilizes -Cost cutting is instituted -Optimum capacity may be achieved

Correct impacts technology innovation in the manufacturing process might have on OM strategy:

-New human resource skills -Product design needs to be revised -Quality standards need to be revised

Correct impacts changes in laptop computer design that builds in wireless technology might have on OM strategy:

-New human resource skills -Purchasing needs to be revised -Inventory needs to be revised

A forecast that projects a company's sales is:

A demand forecast

A tracking signal is:

A measurement of how well a forecast is predicting actual values

A global network of organizations and activities that supply a firm with goods and services is referred to as:

A supply chain

Which of the following statements is NOT true about the forecasting in the service sector? A) Detailed forecasts of demand are not needed B) Forecasting in the service sector presents some unusual challenges C) Demand patterns are often different from those in non-service sectors D) Hourly demand forecasts may be necessary

A) Detailed forecasts of demand are not needed

Which of these is NOT one of the basic functions of the management process? A) Inspecting B) Staffing C) Leading D) Controlling

A) Inspecting

Which of the following does NOT belong to the planning phase of project management? A) Monitoring resources B) Defining the project C) Team organization D) Goal setting

A) Monitoring resources

Which of the following OM decisions determines how a good or service is produced and commits management to specific technology, quality, human resources, and capital investment?

A) Process and capacity design

Which of the following is NOT an OM strategy/issue during the growth stage of the product lifecycle? A) Reduce capacity B) Forecasting critica C) Enhance distribution D) Shift towards product focus

A) Reduce capacity

Which of the following is NOT considered to be one of the three primary functions that all organizations perform? A) Research and Development B) Production/Operations C) Finance/Accounting D) Marketing

A) Research and Development

Which of these time estimates is NOT used in PERT? A) Standard time B) Optimistic time C) Pessimistic time D) Most likely time

A) Standard time

Which of the following statements is NOT true? A) When capacity exists, cost can decrease B) When capacity is inadequate, customers can be lost C) When excess capacity exists, cost can increase D) When capacity is inadequate, market share can shrink

A) When capacity exists, cost can decrease

What is the percentage defective in an average lot of goods inspected through acceptance sampling?

AOQ

Inspections should NOT take place:

After costly or irreversible processes

A strategy is:

An action plan to achieve a mission

Which is the best statement regarding an operating characteristic curve?

As the AQL decreases, the producer's risk also decreases

Which of the following is NOT a reason why domestic business operations decide to change to some form of international operation? A) Improve operations B) Attract and retain local talent C) Improve the supply chain D) Improve products

B) Attract and retain local talent

Which of the following does NOT increase profit by improving quality? A) Flexible pricing B) Higher warranty costs C) Increased productivity D) Improved reputation

B) Higher warranty costs

Which of the following costs is NOT a cost of quality? A) Lost goodwill B) Research and development C) Scrap D) Rework

B) Research and development

Which of the following does NOT represent competing on response? A) Based on flexibility B) Concerned with reliability of scheduling C) Based on providing uniqueness D) Based on uniqueness

C) Based on providing uniqueness (this is differentiation)

Which of the following is NOT considered to be a stakeholder? A) Community members B) Distributors C) Competitors D) Customers

C) Competitors

Which of the following is NOT one of the techniques for building employee empowerment? A) Build communication networks that include employees B) Build high-morale organizations C) Eliminate formal organization structures such as teams and quality circles D) Develop open, supportive supervisors

C) Eliminate formal organization structures such as teams and quality circles

Which of the following tasks would NOT typically represent an operations management activity at Hard Rock Cafe? A) Receiving a shipment of incoming food ingredients B) Designing an efficient layout C) Filing a tax return D) Preparing an employee schedule

C) Filing a tax return

Which of the following is NOT a part of project controlling? A) Using feedback loop to revise the project plan B) Close monitoring of resources, costs, quality, and budgets C) Sequencing and allotting time to all project activities D) Shifting resources to where they are needed most

C) Sequencing and allotting time to all project activities

Which of the following is NOT true regarding the importance of the role that an operations manager play in addressing service quality? A) The tangible component of many services is important B) The operations manager should realize that the customer expectations are the standard against which the service is judged C) The manager may be able to influence the quality of the service but has little control over the customers' expectation D) Managers must expect exceptions

C) The manager may be able to influence the quality of the service but hast little control over the customers' expectation

Which type of control chart should be used when it is possible to have more than one mistake per item?

C-Chart

CPFR is:

Collaborative, planning, forecasting, and replenishment

Competing on differentiation is:

Concerned with uniqueness

What is the shortest duration required to complete an activity?

Crash time

Which of the following is NOT one of the 10 strategic OM decisions listen in the text? A) Location B) Quality C) Layout D) Finance/Accounting

D) Finance/Accounting

Which of the following organizations does NOT belong to the service sector? A) Costco B) Southwest Airlines C) San Diego Zoo D) Ford Motor Company

D) Ford Motor Company

Which of these is NOT an advantage of outsourcing? A) Gaining outside expertise B) Accessing outside technology C) Cost savings D) Potential creation of future compeition

D) Potential creation of future competition

Which of the following activities at an airline is NOT an operations activity? A) Catering B) Crew Scheduling C) Flying D) Sales

D) Sales

Which of the following is the FIRST step in a forecasting system?

Determine the use of the forecast

Managing quality helps build successful strategies of:

Differentiation, low cost and response

An international business is a firm that:

Engages in international trade or investment

Which of the following is a quantitative forecasting method?

Exponential smoothing

Cause-and-effect diagrams are also known as:

Fish-bone charts

The father of scientific management is:

Frederick Taylor

Which of the following forecasting steps comes directly after determining the time horizon of the forecast?

Gather the data

Productivity increases when:

Inputs decrease while outputs remain the same

Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its promises?

Reliability

What is a correct example or response?

Johnson Electric, as it competes on speed-speed in design, production, and delivery

Which of the following is the Japanese term used to describe continuous improvement efforts?

Kaizen

The critical path of a network is the:

Longest time path through the netowrk

Process capability:

Means that the natural variation of the process must be small enough to produce products that meet the standard

What is the most popular example of specialized software for managing projects?

Microsoft project

Which of the following is the purpose or rationale for an organization's existence?

Mission

Which international operations strategies uses decentralized authority with substantial autonomy at each business?

Multidomestic

Which forecasting method considers several variables that are related to the variable being predicted?

Multiple regression

A large percentage of the revenue of most firms is spent of which function?

Operations

The stated purpose of NAFTA is to:

Phase out all trade and tariff barriers among Canada, Mexico, and the U.S.

Among the following, the critical path and slack time analysis MOST help:

Pinpoint activities that need to be closely watched

Gantt charts are:

Planning charts used to schedule resources and allocate time

The three phases involved in the management of large projects are:

Planning, scheduling, and controlling

A device or technique that ensure production of a good unit every time is a:

Poka-yoke

Which of the following measures the proportion of variation (3 standard dev.) between the center of the process and the nearest specification limit?

Process capability index

The creation of goods and services is referred to as:

Production

What is a correct example of differentiation?

Safeskin Corporation, as it's number one in latex exam gloves that were designed to prevent all allergic reactions

Which forecasting model is based upon salespersons' estimates of expected sales?

Sales force composite

What is a data pattern that repeats itself after a period of days, weeks, months, or quarters?

Seasonality

The economic activities that typically produce an intangible product are referred to as:

Services

The forecasting time horizon that would typically be easiest to predict for would be the:

Short range

What is a correct example of cost leadership?

Southwest Airlines, as it fulfills a need for low-cost and short-hop flights

SWOT analysis refers to:

Strengths, opportunities, weaknesses, and threats

What is the THIRD level in work breakdown structure? (WBS)

Subtasks in major tasks

Competition in the 21st century is no longer between companies; it is between:

Supply chains

What is the goal for mass customization?

The goal is to product customized products, whenever and wherever needed

The project organization may be LESS helpful when:

The job is familiar to the existing organization

The American Society for Quality defines quality as:

The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs

Which of the following is a limitation of PERT and CPM?

There is the inherent danger of placing too much emphasis on the critical path

The person who believed that management must do more to improve the work environment and processes so that quality can be improved was:

W. Edwards Deming