OMIS EXAM 2

Which of the following organizations used its geographic information system to create a demographic profile of what a typically successful neighborhood for its location looks like—mostly in terms of income and​ ages?

Carvel Ice Cream

Which of the following methods 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

What term refers to the location of competing companies near each​ other?

Clustering

Which of the following is NOT a tool for process analysis and​ design? A. Pareto chart B. flowchart C. process mapping D. process chart

Pareto chart

​Low-volume, high-variety production is best suited for which of the following process​ strategies?

Process focus

What is a successful technique used by companies such as Ingall Ship Building Corporation to avoid some of the difficult problems producing items in​ fixed-position layouts?

complete as much of the project as possible offsite

In​ manufacturing, excess capacity can be used to

do more​ setups, shorten production​ runs, and drive down inventory costs.

What does EMV stand​ for?

expected monetary value

The objective of warehouse layout is to

find the optimum​ trade-off between handling cost and costs associated with warehouse space.

What is a drawing of the movement of​ material, product or​ people?

flowchart

Which of the following moves production to a large work cell that remains part of the present​ facility? Part 2 A. focused factory B. ​fixed-position layout C. ​cross-docking D. focused work center

focused work center

In acceptance​ sampling, the​ producer's risk is the risk of having a

good lot rejected.

Which of the following DOES NOT increase profit by improving​ quality? A. increased productivity B. improved reputation C. higher warranty costs Your answer is correct. D. flexible pricing

higher warranty costs

Which of the following approaches makes new capacity a larger increase at the beginning of the​ period?

leading demand with a​ one-step expansion

Which of the following approaches makes new capacity a larger increase at the beginning of the​ period? Part 2 A. lagging demand with incremental expansion B. attempts to have an average capacity that straddles demand with incremental expansion C. leading demand with incremental expansion D. leading demand with a​ one-step expansion

leading demand with a​ one-step expansion

The most aggressive and risky approach to capacity planning is

leading demand with​ one-step expansion.

What is a means of determining the discounted value of a series of future cash​ receipts?

net present value

To obtain flexibility in​ layout, managers may implement all EXCEPT which of the following​ tactics? Part 2 A. place workstations far apart B. use small equipment C. keep investments low D. cross train workers

place workstations far apart

A device or technique that ensures production of a good unit every time is a

poka-yoke.

Which of the following measures the proportion of variation ​(3σ​) between the center of the process and the nearest specification​ limit?

process capability index

What is a flowchart with time added on the horizontal​ axis?

process mapping

What is the fundamental rethinking of business processes to bring about dramatic improvements in​ performance?

process redesign

Which of the following approaches is also called a​ "job shop?"

process-oriented layout

Which of the following approaches is also called a​ "job shop?" A. ​product-oriented layout B. ​work-cell layout C. ​process-oriented layout D. ​fixed-position layout

process-oriented layout

Which of the quadrants in the service process matrix has high labor intensity and high​ customization?

professional service

Workspace can inspire informal and productive encounters if it balances three physical and social​ aspects:

proximity, privacy, and permission.

Taguchi's quality loss function is based on a

quadratic equation

Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its​ promises?

reliability

Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its​ promises? A. credibility B. competence C. reliability D. responsiveness

reliability

Which of the following arranges machinery and equipment to focus on production of a single product or group of related​ products? Part 2 A. ​work-cell layout B. ​fixed-position layout C. ​process-oriented layout D. ​product-oriented layout

work-cell layout

Which value in an office relationship chart represents​ "Not desirable?"

x

Which of the following organizations used its geographic information system to create an ideal customer profile of female homeowners with​ families?

​Jo-Ann Stores

Which of the following is an example of​ technology's impact on​ wholesale/retail trade​ industry? Part 2 A. automatic teller machines B. interactive TV C. automatic toll booths D. ​bar-coded data

​bar-coded data

Managing quality helps build successful strategies of

​differentiation, low cost and response.

What is the expected production for each department next​ quarter? Design effective capacity = 90,000 and recent efficiency = .90 Design department​ =

81000

What is an electronically guided and controlled cart used to move​ materials?

AGV

What is the percentage defective in an average lot of goods inspected through acceptance​ sampling?

AOQ

Which of the following statements is NOT​ true? A. Selection of a particular process strategy requires decisions about equipment and technology. B. The selection of equipment requires considering​ cost, cash​ flow, market​ stability, quality,​ capacity, and flexibility. C. Selecting the best equipment requires understanding the specific industry and available processes and technology. D. Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually​ inexpensive, but difficult.

Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually​ inexpensive, but difficult.

Which is the best statement regarding an operating characteristic​ curve?

As the AQL​ decreases, the​ producer's risk also decreases.

Which of the following is NOT one of the tasks of random stocking​ systems? Part 2 A. Maintaining accurate records of existing inventory and its locations. B. Maintaining a list of​ "open" locations. C. Sequencing items to minimize the travel time required to​ "pick" orders. D. Assigning certain items or classes of items to particular warehouse areas so that the total distance traveled within the warehouse is maximized.

Assigning certain items or classes of items to particular warehouse areas so that the total distance traveled within the warehouse is maximized.

Which type of control chart should be used when it is possible to have more than one mistake per​ item?

C Chart

Which of the following is an award for quality achievement in​ Japan

Deming Prize

Which of the following is NOT one of the techniques for building employee​ empowerment? A. Build​ high-morale organizations. B. Build communication networks that include employees. C. Eliminate formal organization structures such as teams and quality circles. D. Develop​ open,supportive supervisors

Eliminate formal organization structures such as teams and quality circles.

What is the ability to respond with little penalty in​ time, cost, or customer​ value?

Flexibility

Which of the following statements is NOT true regarding production​ technologies? A. Flexible manufacturing systems and​ computer-integrated manufacturing are increasing the distinction between​ low-volume/high-variety and​ high-volume/low-variety production. B. CNC is machinery with its own computer and memory. C. Vision systems combine video cameras and computer technology and are often used in inspection roles. D. Robots are mechanical devices that use electronic impulses to activate motors and switches.

Flexible manufacturing systems and​ computer-integrated manufacturing are increasing the distinction between​ low-volume/high-varietyand​ high-volume/low-variety production

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

GIS

Which of the following DOES NOT increase profit by improving​ quality? A. flexible pricing B. increased productivity C. higher warranty costs. D. improved reputation

Higher warranty costs

If one was to prepare a function map for the above identified functions and assign them between​ "Customer" and​ "Operator" then: Select the functions that will be the responsibility of the​ "Customer" ​(check all that​ apply): A.Instruction for color B. Pay and tip C. Approval of work done D. Buff E. Clean shoes

Instruction for color, Pay and tip, Approval of work done

Which of the following is the Japanese term used to describe continuous improvement​ efforts?

Kaizen

Which of the following is NOT helpful for retail​ layout? Part 2 A. Keep​ end-aisle locations empty to facilitate traffic flow. B. Distribute what are known in the trade as​ "power items" to both sides of an aisle. C. Locate the​ high-draw items around the periphery of the store. D. Use prominent locations for​ high-impulse and​ high-margin items.

Keep​ end-aisle locations empty to facilitate traffic flow.

Which of the following is NOT identified in the text as one of the eight major determinants of volume and revenue for the service​ firm? A operating policies of the firm B. competition in the area C. level of advertising expenditures D. quality of management

Level of advertising expenditures

Where is the​ "superhub" for FedEx​ located?

Memphis, Tennessee

Which of the following statements is NOT true regarding location​ decisions? Part 2 A. Once management is committed to a specific​ location, many costs become relatively easy to reduce. B. Location often has the power to make or break a​ company's business strategy. C. Location decisions are important because location has a major impact on the overall risk and profit of the company. D. Location decisions to support a​ low-cost strategy require particularly careful consideration.

Once management is committed to a specific​ location, many costs become relatively easy to reduce.

Which of the following statements is NOT true regarding process​ redesign? Part 2 A. Process redesign also focuses on those activities that cross functional lines. B. Process redesign is also called process reinvention. C. Process redesign is also called process reengineering. D. Effective process redesign works only if the basic process and its objectives are reexamined.

Process redesign is also called process reinvention.

Which of the following is NOT an example of​ technology's impact on the financial services​ industry? A. Internet stock trading B. electronic funds transfer C. RFID D. debit cards

RFID

Which of the following is NOT an example of​ technology's impact on the financial services​ industry? A. RFID Your answer is correct. B. Internet stock trading C. debit cards D. electronic funds transfer

RFID

Which of the following costs is NOT a cost of​ quality? A. scrap B. rework C. lost goodwill D. research and development

Research and Development

Which of the following allocates display space and responds to customer​ behavior?

Retail layout

Which of the following is NOT an external failure​ cost? A. costs to society B. scrap C. returned goods D. lost goodwill

Scrap

What is the major difference in focus between a location decision in the service sector vs. the manufacturing​ sector?

The focus in service is on revenue​ maximization, while the focus in manufacturing is on cost minimization.

Which of the following statements is NOT true regarding the importance of the role that an operations manager plays in addressing service​ quality? A. The manager may be able to influence the quality of the service but has little control over the​ customers' expectation. B. The tangible component of many services is important. C. The operations manager should realize that the​ customer' expectations are the standard against which the service is judged. D. Managers must expect exceptions.

The manager may be able to influence the quality of the service but has little control over the​ customers' expectation.

Which of the following is NOT one of the reasons that the techniques for addressing​ fixed-position layout are​ complicated? Part 2 A. Different items become critical as the project develops. B. The volume of materials needed is constant. C. There is limited space at virtually all sites. D. At different stages of a​ project, different materials are needed.

The volume of materials needed is constant.

Which of the following is NOT true regarding layout​ decisions? A. An effective layout can help an organization achieve a strategy that supports​ differentiation, low​ cost, or response. B. Layout is one of the key decisions that determines the​ long-run efficiency of operations. C. Layout designs need to be viewed as dynamic because of our increasingly​ short-life-cycle and​ mass-customized world. D. To obtain flexibility in​ layout, operations managers could keep investments high.

To obtain flexibility in​ layout, operations managers could keep investments high.

To provide better access and possibly reduce the number of workers​ needed, work cells may be designed in the shape of what letter of the​ alphabet?

U

In many​ applications, human quality inspectors can be replaced effectively by

Vision Systems

The requirements of work cells do NOT include Part 2 A. testing at each station in the cell. B. being​ self-contained, with its own equipment and resources. C. a high level of training and a low level of flexibility. D. identification of families of products.

a high level of training and a low level of flexibility.

Which of the following would NOT be produced or offered using a​ fixed-position layout? Part 2 A. a highway B. a ship C. a hospital operating room D. a hospital emergency room

a hospital emergency room

Which of the following would NOT be produced or offered using a​ fixed-position layout? Part 2 A. a ship B. a hospital operating room C. a highway D. a hospital emergency room

a hospital emergency room

The​ "A" on an office relationship chart means

absolutely necessary

Which of the following determinants of service quality means approachability and ease of​ contact? A. courtesy B. tangibles C. security D. access

access

A​ fixed-position layout

addresses the layout requirements of​ large, bulky, projects such as ships and buildings.

Inspections should NOT take place

after costly or irreversible processes

The book Aerotropolis describes cities that develop around which of the​ following?

airports

Stacked Resaurants lets customers choose ingredients for their sandwhiches using

an iPad menu.

A successful quality strategy begins with

an organizational culture that fosters quality.

Which service strategy describes separating services that may lend themselves to some type of​ automation?

automation

​Cross-docking

avoids placing the materials or supplies in storage by processing them as they are received for shipment.

What process uses warehousing to add value to a product through component​ modification, repair,​ labeling, and​ packaging?

customizing

To develop a standard or​ benchmark, firms need to start with

determining what to benchmark.

The objective of layout strategy is to

develop an effective and efficient layout that will meet the firm's competitive requirements

Attribute inspection measures

if the product is good or bad.

Which of the following could reduce costs and increase​ profit? A. flexible pricing B. increased productivity C. improved reputation D. improved response

increased productivity

A​ product-oriented layout

is organized around products or families of similar​ high-volume, low variety production.

The R​-chart

is used to indicate gains or losses in uniformity.

What are groups or batches of parts processed​ together? Part 2

job lots

Which of the following approaches may use subcontracting to accommodate excess​ demand? Part 2 A. leading demand with a​ one-step expansion B. leading demand with incremental expansion C. lagging demand with incremental expansion D. Subcontracting should never be used to accommodate excess demand.

lagging demand with incremental expansion

Which of the following is an example of ambient​ conditions? Part 2 A. Best​ Buy's wide center aisle B. Hard Rock​ cafe's wall of guitars C. ​Walmart's greeter at the door D. leather chairs at Starbucks

leather chairs at Starbucks

Which of the following is NOT identified in the text as one of the eight major determinants of volume and revenue for the service​ firm? Part 2 A. level of advertising expenditures B. operating policies of the firm C. quality of management D. competition in the area

level of advertising expenditures

A fast food restaurant is an example of

low customization and low degree of labor.

In​ process-oriented and​ fixed-position layouts, it is important to minimize the costs of

material handling.

The main objective of retail layout is to

maximize profitability per square foot of floor space

One hundred percent inspection

means that every part is checked to see whether or not it is defective.

Process capability

means that the natural variation of the process must be small enough to produce products that meet the standard.

Which of the following allocates display space and responds to customer​ behavior? A. office layout B. warehouse layout C. ​product-oriented layout D. retail layout

retail layout

Which of the following is NOT one of the five elements for each city that geographic information systems use to analyze location decision​ factors? Part 2 A. cultural and entertainment centers B. residential areas C. transportation options D. ​rivers, mountains,​ lakes, and forests

rivers, mountains,​ lakes, and forests

Which of the following is NOT a production technology that enhances production and​ productivity? A. vision systems B. process control C. service blueprinting D. automatic identification systems

service blueprinting

Which of the quadrants in the service process matrix has low labor intensity and low​ customization?

service factory

What is training and empowering frontline employees to solve a problem​ immediately?

service recovery

Which of the following terms describes the physical surroundings in which a service takes​ place, and how they affect customers and​ employees?

servicescape

The defect rate for data entry of insurance claims has historically been about 1.00​%. This exercise contains only parts​ a, b,​ c, d, and e. What happens to σp when the sample size is​ larger? When the sample size is​ larger, σp is

smaller

Which of the following is NOT one of the four predictive variables in La Quinta​ Inn's regression model that predicts motel selection behavior and success of a​ site? Part 2 A. the location of nearby colleges B. the number of hotel rooms in the vicinity C. median income levels D. the state population per inn

the number of hotel rooms in the vicinity

Which of the following is a requirement to be able to compute expected monetary​ value? Part 2 A. each state of nature is equally likely to occur B. the probability of each decision alternative is known C. the probability of each state of nature is known D. each decision alternative needs at least two states of nature

the probability of each state of nature is known

The American Society for Quality defines quality as

the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs.

Which of the following is NOT one of the three seating sections that​ McDonald's is creating in its redesigned​ restaurants? Part 2 A. the​ "linger" zone B. the​ "family" zone C. the​ "flexible" zone D. the​ "grab and​ go" zone

the​ "family" zone

In companies such as​ Intel, what is the PRIMARY motivation behind the trend of shrinking office space and lower cubicle walls for​ individuals?

to get people to work more in groups

Which of the following techniques might a service or retail organization use to make a location​ decision? Part 2 A. locational​ cost-volume analysis B. crossover charts C. traffic counts D. transportation method

traffic counts

A​ goods-producing location decision would likely emphasize the importance of which of the​ following?

utility and labor costs