MGT325 OP MGMT Exam 1 (ch: 1-5)
The fundamental purpose for the existence of any organization is described by it's:
mission statement
Outsourcing some production is a means of ________ a capacity constraint
overcoming
The ratio of actual output to design capacity is:
Utilization
Which of the following would be least important in the pursuit of a time-based strategy?
cost minimization
Which of the following is an example of a postponement tactic?
delayed differentiation
Which of the following is a primary input into capacity, sales, and production planning?
demand forecasts
For firms competing in worldwide markets, conducting _____ is much more complex, since what works in one country or region might not work in another.
environmental analysis
Measurements taken at various points in the transformation process for control purposes are called:
feedback
One way to increase reliability is to:
improve component design
Businesses consist of three major functional areas:
Marketing, Finance, and Operations
The ratio of actual output to effective capacity is:
Efficiency
Which of the following is not a step in the forecasting process?
Eliminate all assumptions
Capacity decisions are usually one-time decisions, once they have been made we know the limits of our operations.
False
Increasing capacity right before a bottleneck operation will improve the output of the process
False
Mission statements should be as specific as possible regarding how exactly they will be accomplished
False
Modular design increases the costs of purchasing and controlling inventory compared to non-modular design
False
Once accepted by managers, forecasts should be held firm regardless of new input since many plans have been made using the original forecast
False
One of the main advantages of standardization is that it increases the potential variety of products
False
Stating capacity in dollar units generally results in a consistent measure of capacity regardless of the actual units of measure
False
Putting forecast errors into perspective is best done using:
MAPE
Which of these pairs of functions would tend to be affected most by a product or service redesign?
Marketing and Operations
Which of the following is the case where capacity is measured in terms of inputs?
Number of seats that can be filled per day on an airline route
Managing the supply chain has become more difficult because of firms increasing their levels of:
Outsourcing
Two general approaches to forecasting are:
Qualitative and quantitative
The three R's are:
Reduce, Reuse, Recycle
Where a firm locates would not typically affect that firm's:
Strategy
A seasonal relative is expressed as a percentage of average or trend
True
An example of a strategic operations management decision is where to locate
True
An example of an operational operations management decision is inventory level management
True
An example of tactical operations management decision is determining employment levels
True
Design capacity refers to the maximum output rate that can be achieved under ideal conditions
True
Forecasting techniques generally assume an existing causal system that will continue to exist in the future
True
Product failures can be easier to remedy with modular design
True
Reliability refers to the ability of a product to perform its intended function under normal conditions
True
Standardization refers to the extent to which there is absence of variety in a product, service, or process
True
The purpose of the forecast should be established first so that the level of detail, amount of resources, and accuracy level can be understood.
True
The shorter the forecast period, the more accurately the forecasts tend to track what actually happens
True
The term capacity refers to the maximum quantity an operating unit can process over a given period of time
True
Operations managers are responsible for:
assessing customer wants and needs and selling and promoting the organization's goods or services
Designing for recycling helps facilitate:
compliance with regulatory environments
When choosing a forecasting technique, a critical trade-off that must be considered is between:
cost and accuracy
Supplying operations with parts and materials, performing work on products, and/or performing services are part of the firm's:
internal supply chain
Which of the following is not a key factor of competitiveness?
size of organization
