Business Quiz
You are planning a manufacturing line with three processes. The processes will run simultaneously with parts moving from one process to the next in an assembly line manner. The cycle time (time to produce one unit) for two processes is three minutes. The cycle time for the other process is five minutes. How many units can the line produce in an hour?
12
A machine has throughput of 12 pieces an hour. What is the machine's cycle time in minutes? Reminder: Cycle time = ( 1 / throughput) x 60 minutes/hour)
5
Currently, one of your employees must walk four minutes to get parts that he then assembles in two minutes. If you rearrange stockpiles to cut his walking time to two minutes, how much more can he produce?
50%
You have a machine which can paint 20 bikes per hour. You purchase two additional, identical machines. How many bikes can you now paint per hour?
60
You have a popular product. You decide to set its price at 3 times cost. What is your percentage margin on the product?
67%
A metal stamping machine can process 34 sheets of metal per hour. You have 3,128 sheets of metal to process. How many hours will it take to process all of them?
92
Work measurement is the science of determining how much an employee earns per unit produced. True or false?
False
A graphical representation of a process is known by which term?
Flowchart
What starts the bidding process?
Invitation to Bid
What is the term for the process of planning production by ensuring that raw materials get to the factory floor on time, and finished products get to customers in a timely manner?
Materials requirements planning
An operations manager can be likened to which other occupation?
Orchestra conductor
Which aspect of operations management takes a broader, a more macro view of the organization, seeking out ways for it to function more effectively?
Organization design
You own three welding machines that can each produce three bikes per hour. You have a single painting station that can paint eight bikes per hour. Which process is your bottleneck?
Painting
Manufacturing companies compete primarily on what factor?
Price
What is the term used to describe the art and science of creating processes within an organization
Process design
A company may need security clearance is a possible reason for offering which type of tender?
Restricted tender
Which type of bid is restricted to a select group of prescreened manufacturers?
Restricted tender
What is defined as the people, parts, and processes involved in getting products or services from suppliers, on through to manufacturing and production, and then on to customers?
Supply chain
You are looking at two rooms in your building. One is 70 ft x 30 ft. The other is 50 ft x 50 ft. Which offers more floor area?
The 50 ft x 50 ft room
You have a product that sells for $100, and costs you $60 to make. A customer normally orders 1,000 units, but will order 2,000 if you drop the price 20%. Would you make more or less on the larger order?
The same
You prepare to enter a bid. You intend to bid a price 30% over your cost of $23 per unit. What price should you bid?
$29.90
You just received word that you lost a major bid. The customer told you that a competitor underbid you by 30%. Your bid price was $45 per unit. What did your competitor bid?
$31.50
To figure out a good price for your product, you try to estimate the full cost to make it. You know that materials cost $15. It takes two hours of labor at $10 per hour to assemble the product. What is the full cost of materials plus labor?
$35
Your furniture-making company has a policy of increasing prices 3% per year to keep up with inflation. Last year your luxury chairs were priced at $525. How much should they be priced at this year?
$540.75
A machine has cycle time of 3 minutes per piece. What is the machine's throughput in pieces per hour? Reminder: Throughput = (1 / cycle time) x 60 minutes/hour)
20
You have a manufacturing process requiring a square area of 400 square feet. How long will the sides of the area be?
20 feet
You are the production manager for a skateboard maker. Over the past 60 days, you've gotten orders for 500 boards, 300 boards, 700 boards, and 240 boards. What is the average daily production capacity that you need to fill these orders over 60 days?
29 boards/day
You want to purchase inventory for 14 days of production. You typically consume 313 units per day. How much inventory should you order?
4,382 units
You price a product at $100. Its cost you $60 to make. What is your percentage margin?
40%
Making sure the company has enough production capability to meet demand is an example of which concept?
Capacity planning
What is the name for a legally binding agreement in which the company agrees to provide products and services?
Contract
What is the term used to describe the cost to produce, package, and deliver one item?
Cost of goods
Which of the following is not used to calculate the cost of goods sold in a manufacturing business?
Delivered cost, packaged cost, and manufactured cost
Which of the following is a key objective of operations management?
Dependability, quality, and flexibility
What is the economic concept that states that the more of something a company buys or produces, the cheaper each unit becomes?
Economies of scale
A project background and timetables are typical bid proposal elements. True or false?
True
An example of a job design technique is job rotation. True or false?
True
What is the term used to describe the science of determining how much time an employee needs in order to complete a given task?
Work measurement
You own a lacrosse stick manufacturer. You are contemplating trying to win two sizable orders. One order is for 900 sticks. The other order is for 700 sticks. Both orders must be delivered within 10 days. You can produce 225 lacrosse sticks per day. Can you take these orders and deliver both on time?
Yes
Your handbag business normally produces 70 bags per day. You have an opportunity to take on a larger order for 800 bags due in 2 weeks. There are no other orders. Can you fill the order on time if you work 7 days a week?
Yes