Supply Chain

The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio is called flexibility.

False

The second step in managing a project is writing the Statement of Work.

False

It is critical that a sustainable strategy meet the needs of shareholders and employees. It is also highly desirable that it preserves the environment.

False,A sustainable strategy that meets the needs of shareholders and employees while preserving the environment is critical.

Supply networks cannot be constructed for every product or service.

False,Networks such as this can be constructed for any product or service

In the service-system design matrix, an internet and on-site technology service encounter is expected to have which of the following?

High production efficiency

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

Internet

According to Little's Law, which of the following ratios is used to find throughput rate?

Inventory /Flow time

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal?

Least total cost

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal?

Least total cost

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

Low production efficiency Correct

Which of the following are alternative possible service encounters included in the Service-System Design Matrix?

Mail contact

a A firm fills its customer's orders from finished goods inventory. It is a:

Make to stock firm

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

Management acumen

Which of the following is a partial measure of productivity?

Output / Materials

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

a What is meant by the term "operations effectiveness?"

Performing activities in a manner that best implements strategic priorities at minimum cost

Which of the following is considered a primary report in an MRP system?

Planned order schedule

A roller coaster ride in an amusement park employs which type of queuing system line structure?

Single channel, single phase

When balancing an assembly line, which of the following is not a way to reduce the longest task time below the required workstation cycle time?

Speed up the assembly line transfer mechanism

An important aspect of service products is that they cannot be inventoried.

TRUE

One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.

TRUE A continuous process is similar to an assembly line in that production follows a predetermined sequence of steps, but the flow is continuous such as with liquids, rather than discrete.

Services are intangible processes that cannot be weighed or measured.

TRUE There are five essential differences between services and goods. The first is that a service isan intangible process that cannot be weighed or measured, whereas a good is a tangibleoutput of a process that has physical dimensions.

The term "assembly line" refers to progressive assembly linked by some material handling device.

TRUEAn assembly line is a layout design for the special purpose of building a product by going through a progressive set of steps. The assembly steps are done in areas referred to as "stations," and typically the stations are linked by some form of material handling device.

Assembling-to-order means moving the customer order decoupling point from finished goods to components.

TRUEAssembling-to-order derives significant advantages from moving the customer order decoupling point from finished goods to components.

An example of an assemble-to-order firm is Dell Computer.

TRUEIn the assemble-to-order environment, a primary task is to define a customer's order in terms of alternative components and options since it is these components that are carried in inventory. A good example is the way Dell Computer makes desktop computers

Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.

True

Operations and supply strategy can be viewed as part of a planning process that coordinates operational goals with those of the larger organization.

True

The term "electronic commerce" refers to the use of the internet as an essential element of business activity.

True

The time-phased plan specifying how many and when the firm plans to build each end item is called the Materials Requirements Plan (MRP.)

false

The valuations in an Earned Value Management analysis must be either profits or revenue.

false

The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.

false

Decisions that relate to the design of the processes and the infrastructure needed to support these processes relate to which OSCM concept?

integrating operations and supply chain strategy with a firm's operational capabilities

In an overview of the major operations planning activities in a typical organization, which of the following activities precedes aggregate sales and operations planning?

process planning

Which of the following is considered a "pure" production planning strategy?

stable workforce, variable work hours

Ideally in waiting line or queuing analysis we want to balance the cost of service capacity with the cost of waiting.

true

In services, once the aggregate staffing level is determined, the focus is on short-term workforce and customer scheduling.

true

Longest waiting time in line is a queue discipline discussed in the textbook.

true

Poka-Yoke is roughly translated from Japanese as "Avoid Mistakes."

true

The Aggregate Operations Plan variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.

true

The Aggregate Operations Planning variable "workforce level" refers to the number of workers needed to accomplish the planned production.

true

The focus in the make-to-stock environment is on providing finished goods where and when the customers want them.

true

The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand.

true

The master production schedule states the number of items to be produced during specific time periods.

true

Yield management is the process of allocating the right type of capacity to the right type of customer at the right prices at the right time to maximize revenue or yield.

true

The critical path in a CPM analysis is found by locating the activities times with zero slack.

trueThe critical path is the longest sequence of connected activities through the network and is defined as the path with zero slack time

In an overview of the major operations planning activities in a typical service organization, which of the following activities follows aggregate sales and operations planning?

workforce scheduling

Process selection refers to the strategic decision of choosing the volume of output to produce in a manufacturing facility depending upon the way that facility produces.

FALSE Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.

In a practical sense, an infinite queue is one that includes every possible member of the served population.

FALSEAn infinite population is large enough in relation to the service system so that the change in population size caused by subtractions or additions to the population does not significantly affect the system probabilities.

A process map shows the physical location of the various processes within a supply chain.

FALSESee exhibit 6.2, Make-to-Stock Process Map

The closer the customer is to the customer order decoupling point the longer it takes the customer to receive the product.

FALSESelection of decoupling points is a strategic decision that determines customer lead times and can greatly impact inventory investment. The closer this point is to the customer, the quicker the customer can be served.

Subcontracting is viewed as a risky strategy because the firm may lose control of product design and pricing.

FALSESome level of subcontracting can be desirable to accommodate demand fluctuations. However, unless the relationship with the supplier is particularly strong, a manufacturer can lose some control over schedule and quality.

Little's law states that supply chain processes can be regarded as unrelated and thus treated and analyzed separately.

FALSEWe can think of Little's law as a relationship between units and time.

A bank branch manager position is not an OSCM-type of job.

False

A matrix project structure is often referred to as a "skunkworks."

False

A work breakdown structure is used in project management but it is not used when the critical path method is involved.

False

Activity-system maps depict the geographic reach of a company's business strategies.

False

Effective management of services requires a clear focus on understanding operations, so much so, that it may even require the exclusion of consideration of marketing or personnel.

False

In a multifactor measure of productivity the numerator of the ratio would include all resources used or all inputs.

False

Which of the following industry types have high expected benefits from the application of MRP?

Assemble-to-order

Which of the following industry types have high expected benefits from the application of MRP?

Assemble-to-stock

Various financial data for SunPath Manufacturing for 2015 and 2016 follow. 20152016Output:Sales$300,000$330,000Inputs:Labor$40,000$43,000 Raw Materials:$45,000$51,000 Energy:$10,000$9,000 Capital Employed:$250,000$262,000 Other:$2,000$6,000 What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between 2015 and 2016?

-.53

You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure. The cycle time of the line is 5 minutes and the sum of all that tasks required on the line is 25 minutes. Which of the following is the correct value for the resulting line's efficiency?

.833

You have just determined the actual number of workstations that will be used on an assembly line to be 8 using the assembly-line balancing procedure. The cycle time of the line is 10 minutes and the sum of all that tasks required on the line is 60 minutes. Which of the following is the correct value for the resulting line's efficiency?

0.750

A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below: Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)? rev: 07_05_2017_QC_CS-92907

11 day

You have collected the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the project "direct costs" are given below.The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. At what day do we achieve the lowest total project cost (i.e., direct plus indirect costs)?

15 days

Various financial data for SunPath Manufacturing for 2015 and 2016 follow. 20152016Output:Sales$300,000$330,000Inputs:Labor$40,000$43,000 Raw Materials:$45,000$51,000 Energy:$10,000$9,000 Capital Employed:$250,000$262,000 Other:$2,000$6,000 What is the percentage change in the labor partial productivity measure for SunPath between 2015 and 2016?

2.33

Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7, 4, 7, 8, 9, 4, 3, and 6 minutes, and the cycle time is 8 minutes?

6

Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600?

70

Some of the advantages of a functional project where the project is housed in a functional division include which of the following?

A team member can work on several projects

A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below: Activity Designation ImmediatePredecessor Time in days Break down both machines A None 3 Clean machine1 B A 3 Clean machine 2 C A 3 Re-set machine 1 D B 4 Re-set machine 2 E C 2 Re-calibrate both machines F D &E 1 Final test G F 2 Using CPM, which activities make up the critical path?

A, B, D, F, G

You have the following time and cost information below for use in a Time-Cost CPM Scheduling model.What are the three costs per unit of time to expedite each activity? activity Normal time Crash Time Normal Cost Crash Cost A 3 2 $400 $600 B 5 3 $600 $1,200 C 4 1 $300 $1,500

A=$200, B=$300, C=$400

Which of the following is an input file necessary to run an MRP system?

Bill of materials (BOM) file

A simple project listing of five activities, their predecessors, and their respective time estimates are presented below: Activity Immediate Predecessor Time in Days A None 2 B A 2 C A 1 D B & C 3 E D 1 Using the CPM, which activities have slack in this project?

C

Which of the following is not a suggestion for managing queues presented in the textbook?

Determine an acceptable waiting time for your customers

You are looking at a chart that has the terms BCWS, BCWP, and AC indicating lines on the chart. What kind of chart are you looking at?

EVM Chart

The acronym ERP stands for:

Enterprise Resource Planning—A data base of that ties together all application programs in a firm.

One trade-off illustrated by the product-process matrix is between flexibility and cost.

TRUETo produce nonstandard products at relatively low volumes, work centers (flexible) should be used. A highly standardized product (low-cost commodity) produced at high volumes should be produced using an assembly line or a continuous process

There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes?

Task

Which of the following is an input to the master production schedule (MPS)?

The aggregate plan

From an operational perspective yield management is least effective under which of the following circumstances?

The product can be kept to be sold when demand is stronger

In essence, a queuing system includes several major components. Which of the following is not one of them?

The queue discipline

Which of the following are the three major components of a queuing system?

The source population and the way customers arrive at the system, the serving systems, and how customers exit the system. Correct

Below are the data for a Time-Cost CPM Scheduling analysis. The time is in days and the costs include both direct and indirect costs.If you crash this project to reduce the total time by four days, what is the total time of the project and total cost? Immediate Normal Crash Normal Crash Activity Predecessor Time Time Cost Cost A None 3 2 $ 200.00 $ 400.00 B A 4 3 $ 300.00 $ 600.00 C A 1 1 $ 300.00 $ 300.00 D B & C 3 2 $ 500.00 $ 550.00 E D 2 1 $ 500.00 $ 900.00

Total time is 8 days, total cost is $2750

A process can be effective without being efficient.

True

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

True

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

True

Complex projects are often subdivided into a series of tasks that are typically configured to be not longer than several months in duration.

True

Earned Value Management (EVM) is a technique for measuring project progress in an objective manner.

True

Just in time (JIT) production was a major breakthrough in manufacturing philosophy pioneered by the Japanese.

True

One of the advantages of a functional project organizational structure is that a team member can work on several projects.

True

One of the assumptions made using CPM is that project activities can be identified with clear beginning and ending points.

True

Aggregate Planning Techniques is developed from the master schedule and the strategic capacity plan.

false

An input to the material requirements planning (MRP) system is an exception report.

false

In a net change MRP system requirements and schedules are considered rigid and never updated.

false

Pricing for a service should primarily relate to the cost of providing the service and has little to do with capacity issues the service provider might face.

false

The economic order quantity (EOQ) lot sizing technique uses the "square root formula" to balance setup cost, carrying cost and cost of stock-outs.

false

The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete.

false

The lot-for-lot (L4L) lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.

false

The sales and operations planning process is made up of a variety of analytical techniques that interact to produce short and intermediate term goals.

false