OMGT 6213 Midterm

The goods-services continuum consists of which set of the following categories?

Pure goods, core goods, core services, pure services

Which of the following is a measure of operations and supply management efficiency used by Wall Street?

Receivable turnover

Which of the following is not a way that operations and supply processes are categorized? Planning Return Delivery Selecting Making

Selecting

Which of the following approaches to service design is characterized by having the customer take a greater role in the production of the service?

Self-service approach

Which of the following is one of the three contrasting approaches to delivering on-site service?

Self-service approach

Which of the following is not part of "the service triangle"?

Service encounter

Which of the following is not a characteristic that distinguishes services from goods?

Service jobs are unskilled

In studying positioning of inventory in supply chains, which, if any, of the following is most appropriate?

- as order decoupling point moves towards source inventory investment goes down - as order decoupling point moves towards the source customer lead time gets longer

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even?

1,000 units

The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio?

1.428

Inventory turnover is an operations efficiency measure and which of the following is the most appropriate answer. measures efficiency in turning inventory into sales purpose is to measure liquidity A or B but not both A and B Neither A nor B

A and B

In studying product-process matrix describing layout strategies, which of the following is most appropriate?

As you move from project to manufacturing cell to continuous process, product volume increases while standardization increases.

Dell Computers' primary consumer business takes orders from customers for specific configurations of desktop and laptop computers. Customers must select from a certain model line of computer, and choose from available parts, but within those constraints may customize the computer as they desire. Once the order is received, Dell assembles the computer as ordered and delivers it to the customer. What type of manufacturing process is described here?

Assemble-to-order

Major quality failure

Carefully select and monitor suppliers

What is the term used to describe product attributes that attract certain customers and can be used to form the competitive position of a firm?

Competitive dimensions

Country risks

Currency hedging, local sourcing

Logistics failure

Detailed tracking, alternate suppliers

A ride at an amusement park is an example of a service operation where there is direct contact between the customer and server, but little variation in the service process -- neither the customer nor server has much discretion in how the service will be provided. As shown on the Service System Design Matrix, which type of service is being delivered?

Face-to-face, tight specs

T/F: "Combine the pain" is an application of behavioral science to service encounters. It means that, when something is going wrong for a group of customers, it is better to totally enrage one or a very few customers rather than slightly annoying a large number of customers.

False

T/F: A continuous process indicates production of discrete parts moving from workstation to workstation at a controlled rate.

False

T/F: A service system with a high degree of customer contact is less difficult to control than a low degree of customer contact service system.

False

T/F: 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

T/F: Choosing how to accommodate customer induced variability in a service business is the decision of the front-line service provider.

False

T/F: Once an operations strategy is adopted and articulated, the primary emphasis becomes perfecting the system of activities that make up the strategy through detailed refinements over a long period of time.

False

T/F: Sustainability is the ability to maintain profits in a system.

False

T/F: The closer the customer is to the customer order decoupling point, the longer it takes the customer to receive the product.

False

T/F: Within a sustainability framework, the environmental dimension of the triple bottom line concept has to do with labor, the community, and the region in which a firm conducts its business.

False

In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following?

Low production efficiency

Regulatory Risk

Good legal advice, compliance

If the fixed cost increased, the variable cost and product price stay the same, the new break-even point would be ____________.

Higher

Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position?

Management acumen

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, what kind of productivity measure could you use to compute productivity?

Partial measure

Which of the following is considered a high-contact service operation?

Physician practice

Which one of the following is NOT a major factor distinguishing service design and development from manufacturing design and development?

Service operations can be protected by patents; manufacturing operations cannot.

When a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called?

Straddling

You are hired as a consultant to decide if your client should purchase a new, highly specialized piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15, and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing?

The company's total margin will be less than its investment

T/F : The central idea of supply chain management is to apply a total system approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer.

True

T/F: "Operations" refers to manufacturing and service processes used to transform resources employed by a firm into products desired by customers.

True

T/F: A general-purpose machine is less capable than a special-purpose machine in certain tasks but can perform a broader variety of tasks.

True

T/F: A process can be effective without being efficient.

True

T/F: Service guarantees can be used at the service design stage to focus the firm's delivery system on the things it must do well to satisfy the customer.

True

T/F: The "triple bottom line" relates to the economic, employee, and environmental impact of a firm's strategy.

True

T/F: The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.

True

Which of the following basic types of process structures is one which similar equipment or functions are grouped together?

Work center

Which of the following basic types of process structures is one in which equipment or work processes are arranged according to the progressive steps by which the product is made?

assembly line

natural disaster

contingency planning, insurance

Doing something at the lowest possible cost is called ______________.

efficiency

Which of the following is NOT considered a major process flow structure?

fabrication

Flowcharts are a common process design and analysis tool used in both manufacturing and services. What is a key feature on flowcharts used in service operations that differentiates between the front-office and back-office aspects of the system?

line of visibility

Which of the following about order winners and order qualifiers is true?

order winner is a differentiating criterion and order qualifier is a screening criterion

In designing service systems, as you go from mail contact to phone contact to face to face total customization, which of the following is most appropriate?

sales opportunity increases while degree of customer/server contact increases.