Operations Management

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

Poka-yoke is roughly translated from Japanese as "avoid mistakes."

True

The phenomenon that magnifies the variability in order quantities for goods as orders move through the supply chain from the customer to the producer is called the bullwhip effect.

True

The social impact of the triple bottom line concept pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm conducts its business.

True

The total cost of ownership (TCO) can be categorized into three areas: acquisition costs, ownership costs, and post-ownership costs.

True

Two common measures to evaluate supply chain efficiency are the inventory turnover and weeks-of-supply ratios.

True

Variation in production systems that is caused by factors that can be clearly identified and possibly even managed is called assignable variation.

True

Variation that is inherent in a production process itself is called common variation.

True

weeks of supply formula

Weeks of supply = (Average aggregate inventory value / Cost of goods sold) × 52 weeks

Which of these is matched up in the traditional 3-way match:

invoice from supplier, PO, receiving report

In a statistical process control (SPC) chart, which type of variation should cause you to stop the process and initiate corrective action:

Assignable variation

A doctor might place their medical school diplomas on the wall in an attempt to convey which element of service quality?

Assurance

Looking outside the organization to examine what industry competitors and excellent performers outside of your industry are doing in a particular process is called:

External benchmarking

"Quality at the source" refers to the degree to which a product or service design specifications are met.

False

Automobiles and appliances are classified as "pure goods."

False

Firms producing functional products are forced to introduce a steady stream of innovations in order to survive.

False

ISO 9000 is primarily concerned with environmental management.

False

Retailer behavior when stocking up during promotion periods (where the prices of goods are reduced) is called backward buying.

False

The optimal strategy for functional products is to use a responsive supply chain.

False

Variation that is inherent in a production process itself is called assignable variation.

False

Make-to-stock is primarily which type of business model:

Push

A document from a company to prospective suppliers asking for a price for a specified job.

RFQ

Company XYZ has error-free records

Reliability

I like my new carpet because it looks like new for many years.

Reliability/durability

Company XYZ give customers prompt service and don't make them wait long.

Responsiveness and empathy

I like my new car because of its trendy body style and color.

Aesthetics

The dimension of design quality that concerns the sensory characteristics of the product is which of the following?

Aesthetics

A fishbone diagram as part of a six-sigma quality improvement process might be found in which DMAIC category?

Analyze

The company hired to transport a shipment from one company to another.

Carrier

Which of the following are defined as core goods?

Data storage systems

The Malcolm Baldrige National Quality Award is given to organizations that have done which of the following?

Demonstrated outstanding quality in their products and process

If a new car appeals to customers because of its performance and features, that is

Design quality

Another name for the 3-way match process:

Invoice verification

A defect of some kind. A process has failed to meet customer (either internal or external) requirements in some way:

Non-conformance

Choose the most accurate description in the context of operations and supply chain from the following list.

Order qualifier is a screening criteria while order winner is a differentiating criteria.

I like my steak dinner because it is from one of the most famous steak restaurants in the nation.

Perceived quality

A quality guru named Joseph M. Juran defined quality as fitness for use.

True

The philosophical goal of a six sigma program is that processes are so good that _________ standard deviations either side of the process mean are within customer requirements:

Six

Shipping by truck, directly from point of origin to destination, without picking up other people's loads.

TL

If I bought my wife a new diamond ring for our 40th anniversary and I was able to know the entire supply chain all the way back to the diamond and gold mines, that is an example of this.

Traceability/ Chain of custody

A financially-driven reason for outsourcing is that it can turn fixed costs into variable costs.

True

It is impossible to have zero variability in production processes.

True

Which of the following is the best statement about the purpose of quality function deployment (QFD):

Helps you analyze how possible product design features meet (or don't meet) various customer requirements

An Ishikawa fish-bone chart is for what purpose:

Helps you understand various potential causes of process failures

An order qualifier is a screening criterion that permits a firm's products to even be considered as possible candidates for purchase.

True

An order winner is a set of criterion that differentiates the products or services of one firm from another.

True

Developed 14 major points and the plan-do-check-act (PDCA) cycle and did not believe in telling the factory workers that they should improve their quality without changing the process:

"None of these"

If customers for my 12" rulers will accept rulers with a minimum length 11.9" and a maximum length 12.1" and my process standard deviation has been estimated to be .05 inches and has a process mean of 11.95, then the Cpk is about:

.333

Income Statement Units sold 10,000 Sales Revenue $10,000,000 Cost of Goods Sold (COGS) $5,000,000 All other costs $3,000,000 Net Income $2,000,000 Balance Sheet: Cash and Accounts Receivable $1,000,000 Inventory $ 500,000 Fixed Assets $8,000,000 What is the asset turnover ratio?

1.05

Income Statement Units sold 10,000 Sales Revenue $10,000,000 Cost of Goods Sold (COGS) $5,000,000 All other costs $3,000,000 Net Income $2,000,000 Balance Sheet: Cash and Accounts Receivable $1,000,000 Inventory $ 500,000 Fixed Assets $8,000,000 What is the inventory turns?

10

Income Statement Units sold 10,000 Sales Revenue $10,000,000 Cost of Goods Sold (COGS) $5,000,000 All other costs $3,000,000 Net Income $2,000,000 Balance Sheet: Cash and Accounts Receivable $1,000,000 Inventory $ 500,000 Fixed Assets $8,000,000 What is the percent profit margin?

20%

Income Statement Units sold 10,000 Sales Revenue $10,000,000 Cost of Goods Sold (COGS) $5,000,000 All other costs $3,000,000 Net Income $2,000,000 Balance Sheet: Cash and Accounts Receivable $1,000,000 Inventory $ 500,000 Fixed Assets $8,000,000 What is the percent return on investment (ROI)?

21%

If the average aggregate inventory value is $45,000 and the cost of goods sold is $10,000, which of the following is weeks of supply?

234

If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?

4.5

Quality control charts usually have a central line and upper and lower control limit lines. Which of the following are reasons that the process being monitored with the chart should be investigated?

A single plot falls above or below the control limits

An organizationally-driven reason for outsourcing is that it can improve effectiveness by focusing on what the firm does best.

True

When using the supply chain uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following?

Agile

Which of the following is the cost of quality classification for costs such as inspection, testing, and other tasks to ensure that the product or process is acceptable?

Appraisal cost

Attributes are those quality characteristics that are classified as either conforming or not conforming to specification.

True

The document from the company wishing to ship something to the company hired to ship it, which specifies the contents of the shipment, etc. It used as the basis of any damages claims if the truck and all its contents were destroyed in a wreck.

Bill of lading

The effect of the lack of synchronization among supply chain members is referred to as which of the following?

Bullwhip effect

The product realization cycle, as shown on the drawing in our week 1 document, begins and ends with:

Customers and other stakeholders

Core service providers integrate tangible goods into their product.

True

If a new car makes its buyer angry because of several manufacturing defects, that is a lack of

Conformance quality

The person or company that a shipment is being shipped to:

Consignee

The plan-do-check-act cycle is used for:

Continual improvement

A company that provides manufacturing as a service for other companies is called

Contract manufacturer

Inventory is valued at its:

Cost (materials, labor, mfg overhead) per unit

If customers for my 12" rulers will accept rulers with a minimum length 11.9" and a maximum length 12.1" and my process standard deviation has been estimated to be .05 inches, then which is true:

Cp=.66

My trust in my dentist that she is an expert in root canals is what type of attribute:

Credence

Something that matters most to a customer. A feature of your product or service whose variation has the greatest impact on the fit, performance, or service life of the finished product from the perspective of the customer:

Critical to Quality (CTQ) or vital few

A process in which products from multiple suppliers are brought into a central facility, re-sorted by destination, and then shipped out to different locations in the same day and not put in storage.

Cross Docking

When considering outsourcing, what should firms be sure to avoid?

Giving the outsourcing partner opportunities to become a strong competitor

Design of experiments is a statistical methodology often used in Six Sigma projects. It aims to accomplish which of the following?

Determine the cause and effect relationships between process variables and output

What happens to a television at the end of its useful life.

Dispose

I am talking with my friends about where to eat dinner tonight. We assume that the restaurant will be clean, therefore we do not think or talk about that. This type of customer requirement is known as:

Dissatisfier

Which statement is most true about the expectations of the Six Sigma program:

Dpmo is about 3

When using the supply chain uncertainty framework to classify supply chains, a supply chain for functional products with a stable supply process is called which of the following?

Efficient

Designed for efficiency and low cost by minimizing inventory and maximizing efficiencies in process flow:

Efficient supply chains

Which has the longest lead time for the consumer?

Engineer-to-order

I believe my rulers are the best. They are produced within plus or minus .0000001" deviation from 12 inches.

Engineering/manufacturing precision based

One of the "package of features" that make up a service is:

Facilitating goods

The humanitarian movement which certifies products has having been produced in conditions which are safe and profitable for the workers in a developing country:

Fair trade

A quality guru named Philip Crosby defined quality as fitness for use.

False

According to the economic aspect of the triple bottom line concept, the firm is required to compensate shareholders by paying dividends and growing the value of their common stock faster than their competitors.

False

An order winner is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase.

False

Returning involves processes for receiving worn-out, defective, and excess products back from customers but does not involve support for customers who have problems with the product.

False

Services are homogeneous.

False

The capability index is used to gauge economic changes in service systems.

False

The total cost of ownership (TCO) is an estimate of the cost of an item that includes all the costs related to the procurement and use of an item, but does not include any of the costs related to disposing of the item after it is no longer useful.

False

Design quality refers to the inherent value of the product in the marketplace.

True

The following statement from the KitchenAid website about their mixers ....."incredible versatility".......refers to what type of requirement:

Function

Very few products are moved without at least part of their journey being by which mode of transportation?

Highway/trucking

Which of the following product categories includes fashionable clothing, personal computers, and other products that typically have a very brief life cycle?

Innovative products

Moving containers from ship to train to truck.... to get the shipment to its destination.

Intermodal

Which of the following is the cost of quality classification for costs such as scrap, rework, or repair?

Internal failure costs

Which of the following is an alternative possible service encounter included in the service-system design matrix?

Internet

Moving and combining loads that are less than full truck loads in size. Loads from multiple sources are consolidated into a more full load, driven as far as possible, and then un-consolidated somewhere near the destinations for the loads.

LTL

The total cost of having something manufactured offshore and shipped to a destination in the U.S., including all costs for shipping, insurance, customs, etc.

Landed cost

Functional products include staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations.

True

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

Low production frequency

Which of the following are alternative possible service encounters included in the service-system design matrix?

Mail contact

Child labor in factory making wigs

Make

Which is expensive capital equipment, as ordered from a catalog, in which no parts are made before an order is received?

Make-to-order

Document showing the entire contents of a shipment in a truck or container.

Manifest, also called bill of lading

Which type of supply chain is most appropriate for an innovative product like an iPad:

Responsive supply chains

Customers customizing athletic shoes at the www.nike.com website is an example of:

Mass customization

Conflict minerals are:

Mostly metal ores, mined for use in electronics, from mines controlled by terrorist groups in and around the Congo.

A hospital advertises waiting times in the emergency room of < 30 minutes. This is what service quality element?

Responsiveness

Company XYZ give customers individual attention.

Responsiveness and empathy

A TV commercial talking about the towing capacity of a Dodge pickup truck is emphasizing which element of product quality?

Performance

In Robert Cooper's new product development (NPD) process flow chart, the word 'stage' refers to:

Phases of activity in the design and implementation of a new product and process

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

Physician practice

What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?

Pipeline

Performing the final assembly of a product at the last moment possible, after the customer has ordered which combination of optional features they desire:

Postponement or delayed differentiation

I like my digital camera because it has a 40 mega pixel image.

Product features-based

The Goods-Services Continuum consists of which set of the following categories?

Pure goods, core goods, core services, pure services

Income Statement Units sold 10,000 Sales Revenue $10,000,000 Cost of Goods Sold (COGS) $5,000,000 All other costs $3,000,000 Net Income $2,000,000 Balance Sheet: Cash and Accounts Receivable $1,000,000 Inventory $ 500,000 Fixed Assets $8,000,000 If this firm invested another $5,000,000 in automation (fixed assets) and reduced its annual labor cost (in COGS) by $2,000,000 and thereby increased its net income by this amount, then which of these statements is true?

ROI Increases

The tracking number of each item at a distributor or retailer.

SKU

The size of the screen, weight of the camera, and the optical zoom would be what type of attributes for a person considering buying a camera:

Search

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

Service jobs are unskilled

Fundamental to any quality program is the determination of quality specifications and the costs of achieving (or not achieving) those specifications.

True

Company XYZ appearance of facilities and uniforms is attractive.

Tangibles

Which of these statements is most true about Malcolm Baldrige National Quality Award:

The award is based on a broad set of criteria for a good business that address all areas of business and is awarded to organizations each year in categories of manufacturing, service, health care, ...

You have just used the capability index (Cpk) formulas to compute the two values "min [1, 1]." Which of the following is the proper interpretation of these numbers?

The mean has not shifted at all

ISO 14000 is primarily concerned with environmental management.

True

In variables sampling the actual measurements of the variable observed are used regardless of whether the unit is good or bad.

True

"Product-service bundling" refers to a company building service activities into its product offerings for its customers.

True

"Supply Chain" refers to processes that move information and material to and from the manufacturing and service processes of the firm.

True

A financially-driven reason for outsourcing is that it can help gain access to new markets, especially in developing countries.

True

A quality guru named Philip Crosby defined quality as conformance to requirements.

True

A quality guru named Philip Crosby suggested that a general approach to quality management should involve prevention, not inspection.

True

An example of assignable variation in a production system may be that a machine is not adjusted properly.

True

An important aspect of service products is that they cannot be inventoried or inspected/examined after a customer complaint.

True

Logistics is a term that refers to the management functions that support the complete cycle of material flow, from the purchase and internal control of production materials; to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product.

True

Services are defined and evaluated as a package of features that affect the five senses.

True

Statistical process control involves testing random samples of output from a process to determine whether the process is producing items within a preselected range.

True

TL trucking is faster than LTL.

True

TQM was defined in the textbook as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.

True

The "triple bottom line" relates to the economic, employee, and environmental impact of a firm's strategy.

True

The International Organization for Standardization (ISO) is a specialized international agency recognized by affiliates in more than 160 countries.

True

The term "encounter" is defined by Webster's Dictionary as "meeting in conflict or battle" and is used to also designate meetings between consumers and service systems.

True

Within a sustainability framework, the economic dimension of the triple bottom line concept goes beyond just profit for the firm but also provides lasting economic benefit to society.

True

In the sourcing/purchasing design matrix, there are three variables: contract duration, transaction costs and specificity (assume levels as short, medium and long for contract duration and for the rest, low, medium and high). Vendor managed inventory belongs to

long contract duration, low transaction costs and high specificity.

A method of bringing together portions of a product from multiple suppliers into a single shipment to the customer. Done while all of this is in transit to the customer.

merge in transit


Ensembles d'études connexes

Combo with "Ch 20: The Lymphatic System" and 5 others

View Set

Animal Farm Book Test Study Guide

View Set

CH 15: Introduction to Gait and Footwear

View Set

Chapter 24 Nursing Care of the Newborn and Family Lowdermilk

View Set

personal finance management chapter 9 personal loans

View Set

AP-ENVIR A | K-Selected and R-Selected Species

View Set