OM Test 3

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Which of the following is false regarding capacity expansion?

Capacity may only be added in large chunks.

Which of the following statements regarding Dell Computer is false?

Dell builds its computers overseas in order to gain a low-cost advantage.

Starbucks Coffee's approach to choosing new café locations is largely based on executive intuition, not sophisticated models and site selection technology.

False

Successful process redesign focuses on departmental areas where small, continuous improvements can be made.

False

The Hawthorne studies, which showed that there is a dynamic social system in the workplace, took place in the 1960s

False

The allowance factor that increases normal time to standard time compensates for inadequate worker training and lack of worker dexterity.

False

The center-of-gravity method finds the location of a centralized facility, such as a distribution center, that will maximize the organization's revenue.

False

The classical stopwatch study, or time study, was originally proposed by Western Electric's Hawthorne Commission in the 1920s

False

The location decisions of goods-producing firms will generally pay more attention to parking, access, and traffic counts than will service location decisions.

False

The physical environment in which employees work may affect the quality of work life, but it does not affect their performance and safety.

False

The purpose of labor standards is to accurately define the skills required to complete a job.

False

The transportation model calculates an optimal shipping system between a central facility and several outlying customers.

False

The two extremes of employment stability policy are "follow demand exactly" and "keep demand constant"

False

The typical full-service restaurant uses a product-focused process.

False

Therblig is a very small amount of time, one hundred-thousandth of an hour.

False

UPS may run the "tightest ship in the shipping business," but they got that high level of efficiency without time standards, because their contract with the Teamsters Union forbids them.

False

Utilization is the number of units a facility can hold, receive, store, or produce in a period of time.

False

Work sampling and time studies are similar in that the analyst in both cases records the time taken by the worker to accomplish each step of the task.

False

Working around asbestos raised ethical concerns before its inherent dangers became known.

False

Which of the following statements regarding FedEx is true?

FedEx believes the hub system helps reduce mishandling and delays due to better controls.

Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor?

Few people will travel out-of state for a haircut.

_________ cost is the cost that continues even if no units are produced

Fixed

___________ involves the ability to respond with little penalty in time, cost, or customer value.

Flexibility

_____________ represent an organization's attempt to gain increased efficiency through specialization, which can include, for example, concentrating on certain classes of customers.

Focused processes

The two most complex motions in the methods time measurement (MTM) system are _________ and __________.

GET and PLACE

What describes a system that stores and displays information that can be linked to a geographic location?

GIS

Databases containing such variables as street maps, utilities, population age and income, and the software that analyzes such data for location decisions, are referred to as __________.

Geographic Information Systems or GIS

__________ costs are readily identifiable and can be measured with precision.

Tangible

One essential ingredient of mass customization is modular design.

True

One reason for a firm locating near its competitors is the presence of a major resource it needs.

True

One use of camera-and-computer-based vision systems is to replace humans doing tedious and error-prone visual inspection activities.

True

One use of labor standards is to determine what makes a fair day's work

True

Optical checkout scanners and ATMs are examples of technology's impact on services.

True

Price changes are useful for matching the level of demand to the capacity of a facility.

True

Process control is the use of information technology to monitor and control a physical process.

True

Processes can be environmentally friendly and socially responsible while still contributing to profitable strategies.

True

Rest allowances can include amounts for the effects of lighting, heat and humidity, and noise

True

Self-directed teams may mean having no supervision on the factory floor.

True

Service blueprinting is a process analysis technique that focuses on the customer and the provider's interaction with the customer.

True

Service firms choose locations based, in part, on the revenue potential of a site.

True

Standard time is always greater than normal time, due to the inclusion of allowances for personal time, delay, and fatigue

True

Standard time may be less than average observed time

True

Starbucks Coffee's use of geocoded demographic and consumer data in site selection decisions is an example of the use of a Geographic Information System, or GIS.

True

Technology, location, and layout decisions are all possible constraints on the human resource strategy

True

The assembly line is a classic example of a repetitive process.

True

The factor-rating method can consider both tangible and intangible costs.

True

The goal of a human resource strategy is to manage labor and design jobs so people are effectively and efficiently utilized.

True

The graphic approach to location break-even analysis displays the range of volume over which each location is preferable.

True

The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit.

True

The rest allowances that convert normal time to standard time have three components: personal time allowances, delay allowances, and fatigue allowances.

True

The term focused processes refers to the quest for increased efficiency, whether in goods or services, that results from specialization.

True

The tool that calculates which process has the lowest cost at any specified production volume is a crossover chart. (T/F)

True

Time-function mapping is a flow diagram with time added to the horizontal axis.

True

Two uses of labor standards are to determine the labor content of items produced and to determine staffing needs

True

Unfavorable exchange rates can offset other savings in a location decision.

True

When innovation replaces cost as a firm's focus for location decisions, the presence of other state-of-the-art firms is a plus, not a negative, for the firm's competitiveness.

True

Work sampling estimates the percent of time that a worker spends on various tasks

True

Workers in which of the following countries probably experience the least amount of job expansion, on average?

United States

____________ is actual output as a percent of design capacity

Utilization

If demand exceeds capacity at a new facility, an organization can use which of the following to move demand to an existing facility?

aggressive marketing

When making a location decision at the region/community level, which of these would be considered?

all the above (government rules, attitudes, stability, incentives, cultural and economic issues, cost and availability of utilities)

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per unit. The break-even point for machine A is

15,000 units

Sample observations of a claims processor made over a 160-hour work month reveal that the worker produced a total of 384 completed claims forms. The performance rating was 80%. The worker was idle 20% of the time (so that idle time should be subtracted from the total time when computing the average observed time). The allowance factor is 8%. What is the normal time per unit?

16.0 minutes

Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. The crossover point between process A and process B is

50 units

Which one of the following technologies is used only for material handling, not actual production or assembly?

AGVs

"Automatic placement and withdrawal of parts and products into and from designated places in a warehouse" describes

ASRS

Value Stream Mapping

ATA (is a variation on time function mapping, examines the supply chain to determine where value is added, extends time function mapping back to the supplier, starts with the customer and works backwards)

Process redesign

ATA (is the fundamental rethinking of business processes, can focus on any process, tries to bring about dramatic improvements in performance, focuses on activities that cross functional lines)

The tally sheet data from a work sampling study provides information regarding

the percent of time spent on various tasks

Therbligs are

the smallest unit of basic motion used in methods time measurement exercises

An advantage of work sampling is that

the time spent observing the employee is relatively short

Shadow boards and foot printing are elements of

the visual workplace

Predetermined time standards are an outgrowth of basic motions called

therbligs

All of the following are advantages of predetermined time standards except

they are customized to your company

Among the advantages of predetermined time standards are all of the following except

they can only be determined after work actually takes place

On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which

total costs are equal for two alternative locations

The crossover point is that production quantity where

total costs for one process equal total costs for another process

Break-even is the number of units at which

total revenue equals total cost

In transportation​ modeling, what has as its purpose to summarize all relevant data and to keep track of algorithm​ computations?

transportation matrix

Production and/or shipping costs are always considered in which of the following location decision methods?

transportation method

The ______________ is used to determine the best pattern of shipments from several points of supply to several points of demand.

transportation method

Which of the following is a location analysis technique typically employed by a manufacturing organization?

transportation method

Which of the following is usually not one of the top considerations in choosing a country for a facility location?

zoning regulations

Which of these factors would be considered when making a location decision at the site level?

zoning regulations

A regional bookstore chain is about to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis?

center-of-gravity model

FedEx schedules its aircraft using a __________ system, which it credits with reducing package mishandling and delay in transit.

central hub

Which of the following represents a common way to manage capacity in the service sector?

changes in staffing levels

One fundamental difference between a process chart and a process map is that

chart is a table, while the process map is more like a schematic diagram

Operations managers will need to consider ethical and social responsibility issues when location decisions involve

child labor issues, sweatshop conditions, allegiance to the firm's current location, corruption

Geographic Information Systems can assist the location decision by

combining geography with demographic analysis

Computer-integrated manufacturing (CIM) includes manufacturing systems that have

computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated

Which of the following is true regarding vision systems?

consistently accurate, modest in cost, do not become bored.

Multiproduct break-even analysis calculates the __________ of each product, __________ it in proportion to each product's share of total sales

contribution; weighting

A location decision for an appliance manufacturer would tend to have a(n)

cost focus

In transportation​ modeling, what do we do if total supply is greater than total​ demand?

create a dummy destination

In mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except

customization

The difference between job enrichment and job enlargement is that

enriched jobs involve vertical expansion, while enlarged jobs involve horizontal expansion

An organization whose capacity is on that portion of the average unit cost curve that falls as output rises

has a facility that is below optimum operating level and should build a larger facility

Advances in technology

have had dramatic impact on customer interaction with services and with products

Which of the following is not a work environment issue with ethical implications?

hazardous materials in the workplace, equal opportunity, equal pay for equal work, danger on the job

Which of the following phrases best describes product focus?

high fixed costs, low variable costs

Which of the following is not one of the essential ingredients for mass customization?

high machine utilizations

A product-focused process is commonly used to produce

high-volume, low-variety products

Which of the following is not a limitation of job expansion?

higher capital cost, higher wage rates, smaller labor pool, higher training costs

Globalization of the location decision is the result of all of the following except

higher quality of labor overseas

Which of the following techniques may not provide reliable and accurate time standards?

historical example

In mass service and professional service, the operations manager should focus on

human resources

Managers should seek to control such work environment factors as

illumination, noise and vibration, temperature, air quality

Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched?

inexpensive rates for weekend phone calls

Properly set labor standards represent the amount of time that it should take an average employee to perform specific job activities under

normal working conditions

Identify two methods that can be used to establish an initial feasible solution for the transportation​ problem:

northwest-corner rule and intuitive​ lowest-cost method

Which of the following is used by methods analysis in analyzing body movement at the workstation level?

operations chart

Adding a complementary product to what is currently being produced is a demand management strategy used when

the existing product has seasonal or cyclical demand

Which of the following is NOT a requirement for using the transportation​ model?

the fixed cost of operating each origin point

A useful tactic for increasing capacity is to redesign a product in order to get more throughput.

True

A value-stream map includes both (1) inventory quantities, and (2) symbols for customers and suppliers.

True

An advantage of predetermined time standards is that the standard can be set before a task is actually performed.

True

An example of an intangible cost, as it relates to location decisions, is the quality of education.

True

An operations chart, or right-hand/left-hand chart, points out wasted motion and idle time.

True

Automated storage and retrieval systems are commonly used in distribution facilities of retailers.

True

Changes in capacity may lead, lag, or straddle the demand.

True

Design capacity is the theoretical maximum output of a system in a given period under ideal conditions.

True

Equitable pay alone cannot achieve a reasonable quality of work life in an organization.

True

Expected output is sometimes referred to as rated capacity.

True

Fixed costs are those costs that continue even if no units are produced.

True

Flexible manufacturing systems, because of easily changed control programs, are able to perform such tasks as manufacturing one-of-a-kind parts economically.

True

Flextime is a system that allows employees, within limits, to determine their own work schedules.

True

Hackman and Oldham's five desirable characteristics of job design include job significance and autonomy

True

In process-focused facilities, equipment utilization is low.

True

In selecting new equipment and technology, decision-makers look for flexibility—the ability to respond with little penalty in time, cost, or customer value.

True

Intermittent processes are organized around processes.

True

Job rotation is an example of job enlargement.

True

Kanbans and andons are both elements of the visual workplace, because they are visual signals that replace printouts and paperwork.

True

Labor cost and labor availability often drive the location decision in the call center industry.

True

Labor planning determines employment stability.

True

Labor standards based on historical experience are relatively inexpensive to obtain

True

Lists have been developed that rank countries on issues such as "competitiveness" and "corruption."

True

A(n) __________ uses an automated work cell controlled by electronic signals from a common centralized computer facility.

flexible manufacturing system or FMS

"Operators simply load new programs, as necessary, to produce different products" describes

flexible manufacturing systems

"Schematic used to investigate movement of people or material" describes a(n)

flow diagram

A drawing of the movement of material, product, or people is a

flow diagram

Methods analysis employs which of the following charts in its analysis of the movement of workers and materials?

flow diagram

In a large aerospace company, it has been discovered that some insulators have been damaged. A methods specialist is sent out to follow the insulators through the production and storage processes and to try to find out where in the process they are damaged. The specialist should use

flow diagrams

Service blueprinting

focuses on the provider's interaction with the customer

The two most basic policies associated with employment stability are

follow demand exactly and hold employment constant

In time studies, average observed time for an element is

for all observations, the sum of all times recorded divided by the number of observations

A quasi-custom product

gets its apparent customization from the combinations available from a small number of modules, is often the output of repetitive focus facilities, is a valid description of a fast food sandwich

Standard Register

groups people and machines into departments that perform specific activities

Which of the following is not one of the four approaches to capacity expansion?

lag demand with one-step expansion

When making a location decision at the country level, which of these would be considered?

location of markets

Which of the following phrases best describes process focus?

low volume, high variety

The objective of a human resource strategy is to

manage labor and design jobs so people are effectively and efficiently utilized

he objective of a human resource strategy is to

manage labor and design jobs so people are effectively and efficiently utilized.

Labor standards can help a firm determine expected production, which in turn enables

managers and workers to know what constitutes a fair day's work

The transportation method, when applied to location analysis

minimizes total production and transportation costs

Flexibility can be achieved with

movable, inexpensive, sophisticated, and modular equipment

Which of the following is not an analytical target of methods analysis?

movement of capital

Flow diagrams are used to analyze

movement of people and materials

For a time study, the three factors that determine how large a sample size to take are

needed accuracy, desired confidence, and absolute amount of error

A fabrication company wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $75,000. The variable cost for A is $15.00 per unit and for B, $18.00. The revenue generated by the units processed on these machines is $21 per unit. If the estimated output is 5000 units, which machine should be purchased?

no purchase because neither machine yields a profit at that volume

A shop wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $75,000. The variable cost for A is $15.00 per unit and for B, $18.00. The revenue generated by the units processed on these machines is $22 per unit. If the estimated output is 9,000 units, which machine should be purchased

no purchase because neither machine yields a profit at that volume

A manager who is conducting a time study now needs an accuracy of ±0.1 minutes, rather than ±0.2 minutes as in the past. Because of this change in accuracy, the adequate sample size becomes

none of the above

Which of the following transformations generally has the highest equipment utilization?

product-focused process

Which of these factors would be considered when making a location decision at the region/community level?

proximity to raw materials and customers

Which of the following is a location analysis technique typically employed by a service organization?

purchasing power analysis

Intangible costs include which of the following?

quality of prospective employees, quality of education, availability of public transportation

Industrial location analysis typically attempts to

reduce costs

Mutual trust is

reflected in reasonable, documented employment policies, honestly and equitably implemented to the satisfaction of both management and the employees

In location planning, environmental regulations, cost and availability of utilities, and taxes are

regional/community factors

An assembly line is an example of a

repetitive process

Which of the following industries is likely to have low equipment utilization?

restaurants

A location decision for a traditional department store (Macy's) would tend to have a(n)

revenue focus

Industrial firms choose locations that minimize cost, but service firms look for locations with good demographics and traffic count because these variables are indicators of good __________.

revenue or volume of business

A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called a(n)

FMS

Location decisions are based on many things, including costs, revenues, incentives, attitudes, and intangibles, but not on ethical considerations.

False

Maintaining a stable workforce generally results in the firm paying higher wages than a firm that follows demand

False

Most unions do not accept the use of predetermined time standards.

False

Mutual trust means that both management and employee strive to meet common objectives.

False

Normal time equals the average observed time multiplied by the allowance factor

False

Normal time is always less than the average observed time

False

Process maps use distance, but not time, to show the movement of material, product, or people through a process.

False

Production technology has had a major impact on services, but as yet there has been little reduction in service labor requirements.

False

Professional services typically require low levels of labor intensity.

False

Profit-sharing is a motivation and incentive system where executives receive stock options.

False

Psychological factors have little relevance in the design of assembly line jobs since they involve physical products and production technology.

False

Self-directed teams tend to be successful in work environments where there is little employee empowerment

False

Break-even analysis is a powerful analytical tool, but is useful only when the organization produces a single product.

False

Building an additional warehouse is an incremental expansion, not a one-step expansion.

False

Capacity decisions are based on technological concerns, not demand forecasts.

False

Dell's approach to personal computer manufacturing is to use a product focus, which gives the company its low-cost competitive advantage.

False

Ergonomics is a branch of economics that deals with costs of scheduling workers.

False

FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

False

For a location decision, labor productivity may be important in isolation, but low wage rates are a more important criterion.

False

Fredrick W Taylor is credited with introducing psychology into the workplace.

False

Generally, the objective of the location decision is to maximize the firm's profit.

False

Harley-Davidson, because it has so many possible combinations of products, utilizes the process strategy of mass customization.

False

If a manager conducting a time study needed an accuracy of ± 0.1 minutes, rather than ± 0.2 minutes, the adequate sample size would have to be twice as large.

False

In constructing the standard time for a task, the elements that make up the task must use the same performance ratings factor.

False

In location decisions, intangible costs are easier to measure than tangible costs.

False

Industrial location decisions often assume that costs are relatively constant for a given area.

False

Job expansion can lead to increased labor cost because of the extra workers hired in the expansion.

False

Labor specialization includes the development of specialized tools to reduce labor costs.

False

Labor standards based on historical experience are the preferred method of choice

False

__________________ is a cost-volume analysis to make an economic comparison of location alternatives.

Locational break-even analysis

Which of these is the most common predetermined time standard?

MTM

____________ is a rapid, low-cost production process that caters to constantly changing unique customer desires.

Mass customization

FedEx chose Memphis, Tennessee, as its U.S. hub because

- center of the U.S. - airport has few hours of bad weather closures - reach cities w/ no direct flights - the firm believed hub system > city-to-city flight scheduling

When done correctly, mass customization

- increases pressure on supply chain performance, - helps eliminate the guesswork that comes with sales forecasting - drives down inventories - increases pressure on scheduling

A Time Measurement Unit, or TMU, is

0.00001 hour

The data below represent time study observations for an assembly operation. Assume a 7% allowance factor. What is the normal time for element 3? Observations (times in minutes) Element Performance Rating12345 1100%1.51.61.41.51.5 290%2.32.22.12.22.4 3115%1.71.91.91.41.6 4100%3.53.63.63.63.2

1.96 min.

A work sampling study requires an acceptable error level of 10 percent and z = 2 for 95.45 percent confidence. The adequate sample size is _______ if the sample proportion is thought to be as large as 50 percent, but ________ if the sample proportion is thought to be about 20 percent.

100; 64

Sample observations of a claims processor made over a 160-hour work month reveal that the worker produced a total of 384 completed claims forms. The performance rating was 80%. The worker was idle 20% of the time (so that idle time should be subtracted from the total time when computing the average observed time). The allowance factor is 8%. What is the standard time per unit?

17.4 minutes

In work measurement, personal time allowances are often established in the range of

4 - 7%

Fred's Fabrication, Inc. wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $70,000. The variable cost for A is $9.00 per unit and for B, $14.00. The revenue generated by the units processed on these machines is $20 per unit. The crossover between machine A and machine B is

4,000 units, with B more profitable at low volumes

Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 85%. What is the expected weekly output of cranks for this company?

4845

The actual average observed time for a given job is 10 minutes. The performance rating is 80%, and allowances are set by contract at 10%. What is the time standard?

8.88 minutes

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the capacity of the system is 1900 students per semester and the utilization is 90%. If the number of students who actually got their orientation session is 1500, what is the efficiency of the system?

87.7%

The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put in use, the program has become more complex, so that 1050 now represents the most employees that can be trained per year. In the past year, 950 employees were trained. The efficiency of this system is approximately _____ and its utilization is approximately _____.

90.5 percent; 79.2 percent

The accuracy of a labor standard is to be within 5%, and the confidence level is 95%. The standard deviation of the sample is 2 and the mean is 8. What sample size should be used?

96

An organization's process strategy

ATA (will have long-run impact on efficiency and flexibility of production, is the same as its transformation strategy, must meet various constraints, including cost, is concerned with how resources are transformed into goods and services)

___________ is a computer-controlled warehouse that provides for the automatic placement of parts into and from designated places within the warehouse.

Automated storage and retrieval system or ASRS

_______________ analysis finds the point at which cost equals revenues

Break-even

__________ occurs when competing companies locate near each other because of a critical mass of information, talent, venture capital, or natural resources.

Clustering

Which of the following statements regarding "proximity" in the location decision is false?

Clustering among fast food chains occurs because they need to be near their labor supply.

Political risk, cultural issues, and exchange rates are among those __________ that affect which country will be selected for a location decision.

Critical Success Factors

____________ is actual output as a percent of effective capacity

Efficiency

"Visual workplace" is a term coined by Hawthorne, and refers to the need for proper lighting at employee workstations.

False

A decision tree for analyzing capacity would have future demands or market favorability as the decision alternatives.

False

A decision tree indicates at what quantity profit changes from negative to positive.

False

A process map with the addition of a time axis becomes a process chart.

False

Activity times should not be included in a service blueprint.

False

An advantage of work sampling is that it completely breaks down work elements

False

An enlarged job has more responsibility than the same job enriched.

False

An example of the postponement strategy for improving service productivity is having the customer wait until you have sufficient time to serve the customer.

False

Because service jobs are so much more variable than manufacturing jobs, time measurement standards similar to MTM do not exist for most services.

False

Because various employment laws now require it, "equal pay for equal work" is no longer an ethical concern in the work environment.

False

Break-even analysis identifies the volume at which fixed costs and revenue are equal.

False

uses work cells to feed its assembly line

Harley Davidson

Which of these assumptions is not associated with strategies for goods-producing location decisions?

High customer contact issues are critical.

Which of the following statements is NOT​ true?

Implementing a flexible workweek often moves employees to​ part-time status.

Which of the following is true regarding work sampling?

It can be used to estimate the percentage of time workers spend in unavoidable delays.

Which of the following is true regarding the concept of flexibility?

It is the ability to change production rates with little penalty in time, cost, or customer value., It can be accomplished with sophisticated electronic equipment., It may involve modular, movable, even cheap equipment.

Which of the following characteristics best describes repetitive focus?

Its output is a standardized product produced from modules.

_____________ is a means of determining the discounted value of a series of future cash receipts.

Net present value or NPV

Which of the following is true regarding opportunities to improve service processes?

None of the above is true.

Which of the following statements regarding ethical and environmentally friendly processes is true?

Operations managers can be environmentally sensitive and still follow a low cost strategy.

allowances are those that depend upon the distance from employees to restrooms, water fountains, and other facilities

Personal time

A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs 0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. If demand is expected to be 10 million units, which plant offers the lowest total cost?

Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units

divide(s) manual work into small basic elements that have established and widely accepted times.

Predetermined time standards

Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is true?

Process Y is cheaper than process X at all volumes; there is no crossover point.

__________ is the use of information technology to control a physical process.

Process control

_______________ is the fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance.

Process reengineering

Which of the following technologies would enable a cashier to scan the entire contents of a shopping cart in seconds?

RFID

______________ is a process strategy that uses a product-oriented production process that uses modules.

Repetitive focus

Management and labor share the labor cost reductions in which of these compensation schemes?

Scanlon plan

______________ is a process analysis technique that focuses on the customer and the producer's interaction with the customer.

Service blueprinting

Which of the following statements regarding incentive systems is false?

The Scanlon plan is based on team productivity.

Which of the following statements regarding Starbucks Coffee is false?

The firm's cafes are exclusively in traditional settings: malls, tourist areas, and airports.

Manufacturers may want to locate close to their customers, if the transportation of finished goods is expensive or difficult.

True

Which of the following statements describes job rotation?

The operator is allowed to move, for example, from one type of CNC machine to the other.

Which of the following is false regarding repetitive processes?

They allow easy switching from one product to the other.

A time-study procedure involves timing a sample of worker's performance and using it to set a standard.

True

Which of the following are true regarding allowances in time studies?

They have a "constant" and a "variable" component, are adjusted for work conditions such as heating, lighting, and noise, include allowances for personal time, delay, and fatigue, represent the adjustment between normal time and standard time

Which of the following are typical of process control systems?

They have sensors., The digitized data are analyzed by computer, which generates feedback., Their sensors take measurements on a periodic basis., The sensors' measurements are digitized.

____________ is the amount a facility can hold, store, receive, or produce in a period of time

Throughput or Capacity

Timing a sample of a worker's performance and using it to set a standard is the work measurement technique of

Time studies

involves timing a sample of a worker's performance and using it as a basis for setting a standard time.

Time study

A firm's process strategy is its approach to transforming resources into goods and services.

True

A modern "stopwatch" study can be conducted using a special-purpose PDA, one which can digitally capture events, times, and other variables for later analysis on a spreadsheet.

True

Which of the following statements regarding fixed costs is true?

While fixed costs are ordinarily constant with respect to volume, they can "step" upward if volume increases result in additional fixed costs.

Which of the following is an ergonomics issue with ethical implications?

a noisy workplace

Traffic counts and purchasing power analysis of drawing area are techniques associated with

a retail or professional service location decision

Standard time

accounts for performance rating factors and for allowances

Ergonomics is not concerned with

adequate compensation schemes

The visual workplace

all the above (uses low-cost visual devices to share information, is an effective means of rapid communication in a dynamic workplace, helps with both "big picture" and "housekeeping" issues in the workplace, eliminates non-value added activities by making problems and standards visual)

Labor standards are defined as the

amount of time required to perform a job or part of a job

"Designed to show economy of motion by pointing out waste motion and idle time" describes

an operations chart

Product Focused processes

are processes that are specialized for relatively few products or customer groups

Activity charts

are used to study and improve the utilization of an operator and a machine.

Which of the following worker characteristics would likely be least important for U.S. firms looking to open up call centers in different countries?

are young

Which of the following products is likely to be assembled on a repetitive process line?

automobiles, personal computers, dishwashers, television sets

When a worker has a say in the work methods that he/she wishes to utilize, his/her job is characterized by

autonomy

In a stopwatch time study, the average time it takes a given worker to perform a task a certain number of times, without correction for performance rating or allowances, is the

average observed time

In time studies, normal time is

average observed time multiplied by a performance rating factor

The capacity planning strategy that delays adding capacity until capacity is below demand, then adds a capacity increment so that capacity is above demand, is said to____________ demand

average or straddle

Which of the following best describes mutual commitment in an organization?

both management and the employees are committed to the same objective

When firms build supply chains that include foreign firms, __________ and __________ are issues that raise ethical and legal concerns with operations managers.

bribery, corruption

Which of the following costs would be incurred even if no units were produced?

building rental costs

When a worker obtains clear and timely information about his/her performance, his/her job is characterized by

feedback

Making environmentally sound products through efficient processes

can still be profitable

Effective capacity is the

capacity a firm expects to achieve given the current operating constraints

The ____________ is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas.

center-of-gravity method

In the service sector, scheduling customers is ____________, and scheduling the workforce is ____________

demand management; capacity management

One of the elements of ergonomics is

designing tools and machines that facilitate human work

The center-of-gravity method is used primarily to determine what type of locations?

distribution center locations

Ethical and environmentally friendly processes include which of the following?

emission controls, recycling, efficient use of resources, reduction of waste by-products

A firm is seeking a new factory location, and is considering several countries worldwide. In some of these countries, child labor is prevalent; in others, working conditions and worker safety are inferior to conditions in the U.S. An operations manager paying attention to __________ will factor these issues into the location decision.

ethical and social responsibility issues

Utilization in process-oriented facilities is frequently low because

excess capacity for peak demands is desirable

What is sometimes referred to as rated capacity?

expected output

An approach to location analysis that includes both qualitative and quantitative considerations is

factor rating

Evaluating location alternatives by comparing their composite (weighted-average) scores involves

factor rating analysis

Which of the following methods best considers intangible costs related to a location decision?

factor rating analysis

Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?

factor rating method

Location analysis techniques typically employed by service organizations include

factor rating method, center-of-gravity method, purchasing power analysis of area, traffic counts

The ___________ method is popular because a wide variety of factors, from education to recreation to labor skills, can be objectively included.

factor-rating

A manufacturing firm finds a location that has a significant cost advantage over alternatives, but rejects that location because the educational infrastructure was insufficient to train the firm's workers in its special production technologies. The firm's action illustrates the link between __________ and location.

innovation

When _________, in addition to creativity and R&D investments, is critical to operations strategy, cost may cease to be the primary focus of location criteria.

innovation

A job shop is an example of a(n)

intermittent process

Methods analysis focuses on

issues such as the movement of individuals or materials

A disadvantage of work sampling is that

it tends to be less accurate, particularly when task times are short

Job rotation is an example of

job enlargement

The behavioral approach to job design that involves giving the worker a larger portion of the total task is

job enlargement

Which of the following terms implies an increase in responsibility and control?

job enrichment

Four of the components of job design are

job specialization, job expansion, psychological components, and self-directed teams

Labor cost per unit is also referred to as __________.

labor content

What are uses of labor standards?

labor content of items produced, cost and time estimates prior to production, crew size and work balance, basis of wage-incentive plans

Human resource strategy includes the decision areas of

labor​ planning, job​ design, and labor standards.

The visual workplace includes

painted symbols to indicate the proper place for tools and equipment, labeling of parts, bins, and tools to reduce waste, kanbans, andons, and statistical process control (SPC) charts, color-coded lights and signs to indicate that there is a problem

Which one of the following products is most likely made in a job shop environment?

paper forms

A jewelry store is more likely than a jewelry manufacturer to consider __________ in making a location decision.

parking and access

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?

parking and access

In transportation​ modeling, how do we handle​ degeneracy?

placing a zero in one of the unused squares.

Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. The term associated with this phenomenon is

political risk

The strategy for improving service productivity that customizes at delivery, rather than at production, is _____________.

postponement

The basic break-even model can be modified to handle more than one product. This extension of the basic model requires

price and variable cost for each product, and the percent of sales that each product represents

A(n) _______________ uses symbols to analyze the movement of people or material.

process chart

The use of information technology to monitor and control a physical process is known as

process control

The process strategy that is organized around processes to facilitate low-volume, high-variety processes is called a(n) ________________.

process focus

Three types of processes are

process focus, repetitive focus, and product focus

An organization's approach to transforming resources into goods and services is called its _____________.

process strategy

Strategies for improving productivity in services are

separation, self-service, automation, and scheduling

Traffic counts and demographic analysis of drawing areas are associated with

service location decisions

Which of the following is not among the eight components of revenue and volume for a service firm?

shipment cost of finished goods

A job characterized by _______ allows a worker to use his/her dexterity, physical strength, and skills to do his/her work.

skill variety

What is an alternative name for origin points within transportation​ modeling?

sources

Ethical work environment decisions by managers may be guided by

state agencies, trade associations, insurers, employees

What is an iterative technique for moving from an initial feasible solution to an optimal solution in the transportation​ method?

stepping-stone method

Tangible costs include which of the following?

taxes

What is​ "normal time," as it relates to labor​ standards?

the average observed time adjusted for pace

A time study is being conducted to determine the standard time for a job that is made up of several elements. This standard time requires as input(s)

the average observed time for each element

Break-even analysis can be used by a firm that produces more than one product, but

the break-even point depends upon the proportion of sales generated by each of the products

The smaller the percentage established for allowances

the closer is normal time to standard time

Which of the following is among the eight components of revenue and volume for a service firm?

uniqueness of the firm's and the competitor's locations, quality of the competition, quality of management, purchasing power of the customer-drawing area

The​ northwest-corner rule requires that we start in the​ ________ cell of the table and then begin to allocate units to shipping routes.

upper-left-hand

A flow diagram is

used to analyze the movement of people or material.

Of the four approaches to capacity expansion, the approach that "straddles" demand

uses incremental expansion & at some times leads demand, and at other times lags

LaQuinta Motor Inns has a competitive edge over its rivals because it

uses regression analysis to determine which variables most influence profitability

Which of the following is most likely to affect the location strategy of a manufacturing firm?

utility costs

Activity charts help analyze

utilization of an operator and machine

The center-of-gravity method does not take into consideration the

value of the goods shipped

A special form of time-function mapping, which goes beyond the organization into its supply chain, is _____________.

value stream mapping

Basic break-even analysis typically assumes that

variable costs and revenues increase in direct proportion to the volume of production

Therbligs

were named by Frank Gilbreth

A technique for estimating the proportion of time a worker spends on various activities is

work sampling

estimates, by sampling, the percent of time that a worker spends on various tasks.

work sampling


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