exam1
An important aspect of service products is that they cannot be inventoried.
TRUE
In a forecasting model using simple moving average, the shorter the time span used for calculating the moving average, the closer the average follows volatile trends.
TRUE
One characteristic of a well-designed service system is that it is cost-effective.
TRUE
One difference between an assembly line process flow and a continuous process flow is that on the assembly line, the flow is discrete rather than continuous.
TRUE
f you want to reduce process flow time, it has been suggested that you can perform activities in the process in parallel.
TRUE
If the actual output of a piece of equipment during an hour is 400 units and its best operating level is at a rate of 500 units per hour, which of the following is the capacity utilization rate?
0.80
The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. What is the resulting partial productivity ratio for the data provided?
1.000. 900 units divided by 900 hours equals 1.0 units per hour.
Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the following is the number of units that has to be produced and sold to break even?
8,000 units. Find the margin: $50 - $35 = $15. Use the margin to offset the fixed costs: $120,000/$15 = 8,000 units.
o reduce process flow time, you might try which of the following actions?
A. Perform activities in parallel. B. Change the sequence of activities. C. Reduce interruptions. D. Acquire additional equipment. E. All of these
The exponential smoothing method (without trend) requires which of the following data to forecast the future?
A. The most recent forecast
Which of the following best describes the term "cycle time"?
Average time between completions of successive units
Which of the following forecasting methodologies is considered a qualitative forecasting technique?
B. Market research
The general guidelines provided in the textbook on improving individual learning based on learning curves include which of the following?
Do one or very few jobs at a time.
An assumption of learning curves is that the time required to complete a unit will increase at an increasing rate as the cumulative number of units completed increases.
FALSE
An operations strategy must resist change because of the long-term nature of equipment and personnel investments.
FALSE
Because little or no inventory is carried in a service operation, it is easy to separate the operations management functions from marketing in services.
FALSE
Break-even analysis can only be used in production equipment decision making when dealing solely with variable costs.
FALSE
Economies of scale and the learning curve have opposite effects on capacity.
FALSE
The objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities, equipment, and overall labor force size) that best supports the company's short-range competitive strategy.
FALSE
Throughput rate of a production process is the amount of time a unit spends actually being worked on.
FALSE
Trend lines are usually the last things considered when developing a forecast.
FALSE
Utilization of a production process is the ratio of output to input.
FALSE
Work-center layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements.
FALSE
Which of the following is not considered a major work flow structure?
Fabrication
When a service system is running at 80% of capacity, the system is said to be:
In the "Critical Zone"
Which of the following is *not* a major strategic operational competitive dimension that forms a company's competitive position?
Management acumen
Which of the following is a total measure of productivity?
Output/Inputs
If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity?
Partial measure and Multifactor measure
Which of the following is one of the three contrasting approaches to delivering on-site service?
Production-line approach
Which of the following is not a characteristic of a well-designed service system?
Puts customers in charge
Which of the following is *not* a characteristic that distinguishes services from goods?
a.Service jobs are unskilled.
The goods-services continuum consists of which set of the following categories?
b.Pure goods, core goods, core services, pure servicesc.
You have just timed a person doing a haircut for the first time. The haircut took 50 minutes. What unit improvement factor learning curve would you use if the person took 35 minutes on the second hair cut?
c.70 percent
A central premise of exponential smoothing is that more recent data are less indicative of the future than data from the distant past.
false
A piece of equipment with twice the capacity of another piece typically costs twice as much to purchase and to operate.
false
Capacity can be defined as the input that a system is capable of achieving over some unit of time.
false
Efficiency means doing the right things to create the most value for the company.
fasle
"Operations" refers to manufacturing and service processes used to transform resources employed by a firm into products desired by customers.
true
A process can be effective without being efficient.
true
A restriction in using linear regression is that it assumes that past data and future projections fall on or near a straight line.
true
An operations and supply chain strategy must be integrated with the organization's corporate strategy.
true
Productivity is a relative measure.
true
The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio it is called straddling.
true