ba360 exam 1

T/F: NAFTA (now called the USMCA) seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United States.

T

T/F: Productivity is generally more difficult to improve in the service sector than in the manufacturing sector.

T

T/F: Slack is the amount of time an activity can be delayed without delaying the entire project.

T

T/F:Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs

T

T/F:Outsourcing is the practice of transferring a firm's activities that have traditionally been internal to external suppliers.

T

What term is given to those individuals with a vested interest in an organization, including customers, distributors, suppliers, owners, lenders, employees, and community members? a. investors b. vestors c. stakeholders d. stockholders e. alumni

c

11: True Green lawn care installs synthetic lawns throughout southern California. One of the managers at True Green lawn care has tracked the crew's output over the past several weeks and has obtained these figures: Week: 1 2 3 4 5 Crew Size: 4 3 2 4 3 Yards Installed: 960 702 500 968 696 Given this information, which week was the team most productive? a. Week 2 b. Week 4 c. Week 1 d. Week 3 e. Week 5

d

A seasonal index for a monthly series is about to be calculated on the basis of three years' accumulation of data. The three previous July values were 110, 150, and 130. The average demand over all months during the three-year time period was 190. What is the approximate seasonal index for July? 0.487 cannot be calculated with the information given 2.053 0.684 1.462

d

A(n) ________ divides a project into more and more detailed components. PERT analysis Immediate Predecessor Critical Path Work Breakdown Structure (WBS) Forward and Backward Pass

d

Which of the following is true of maquiladoras? a. They assess tariffs only on the value-added work done. b. They originated in China. c. They discourage foreign businesses from outsourcing.

a

Forecasts are usually classified by time horizon into which three categories? exponential smoothing, regression, and time series departmental, organizational, and industrial strategic, tactical, and operational short-range, medium-range, and long-range finance/accounting, marketing, and operations

d

If an activity whose normal duration is 22 days can be shortened to 16 days for an added cost of $3,000, what is the crash cost per period? $187.50 $3,000 $18,000 $500 $400

d

Given an actual demand this period of 61, a forecast for this period of 58, and an alpha of 0.3, what would the forecast for the next period be using exponential smoothing? 61.0 65.5 58.9 57.1 45.5

c

Given forecast errors of -1, 4, 8, and -3, what is the mean absolute deviation? 8 2 4 3 16

c

The marketing function's main concern is with: a. producing goods or providing services. b. securing monetary resources. c. generating the demand for the organization's products or services. d. building and maintaining a positive image. e. procuring materials, supplies, and equipment.

c

One use of short-range forecasts is to determine: research and development plans. facility location. capital expenditures. job assignments. planning for new products.

d

Outsourcing is simply an extension of the long-standing practice of: A. importing. B. exporting. c. e-procurement. d. subcontracting. e postponement.

d

The two general approaches to forecasting are: mathematical and statistical. judgmental and associative. judgmental and qualitative. qualitative and quantitative. historical and associative.

d

What is the forecast for May using a four-month moving averag? nov: 39, dec:36, jan:40, feb:42, mar:48, april:46 47 43 42 44 38

d

Kona Coffee has numerous production facilities around the globe. Average monthly cost data and output levels are indicated the Table below. Labor productivity (single/partial measure) and Total productivity (multifactor productivity) of each facility are already calculated. If Kona Coffee was having cash flow issues and needed to close one of the facilities based on the worst productivity calculations, which plant should be closed?

(select the option with the lowest total productivity)

T/F: Forecasts of individual products tend to be more accurate than forecasts of product families.

False

T/F:The larger the standard error of the estimate, the more accurate the forecasting model.

False

T/F: Low-cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value.

F

T/F: Manufacturing now constitutes the largest economic sector in post industrial societies.

F

T/F: SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats.

F

T/F: Almost all organizations, including service firms such as banks and hospitals, have a production function

T

T/F: An example of a "hidden" production function is the transfer of funds between accounts at a bank.

T

4: Noted below is various financial data for Green Valley Farming in 20Y1 and 20Y2. Given this info, what is the percentage change in the labor productivity for Green Valley Farming between 20Y1 & 20Y2? output: 2021-300000, 2022-330000 labor: 2021-40000, 2022-43000 a. 2.33 b. 10.39 c. - 0.53 d. - 9.22 e. 2.88

a

A fundamental distinction between trend projection and linear regression is that: in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power. trend projection uses two smoothing constants, not just one. trend projection can be a function of several variables, while linear regression can only be a function of one variable. only linear regression can have a negative slope. trend projection uses least squares while linear regression does not.

a

A project being analyzed by PERT has 38 activities, 16 of which are on the critical path. If the estimated time along the critical path is 90 days with a variance of 25, what is the probability that the project will be completed in 88 days or less? 0.3446 18 0.0228 0.9772 0.6554

a

A time-series trend equation is 25.3 + 2.1x. What is your forecast for period 7? 40.0 27.4 25.3 179.2 23.2

a

An activity on a PERT network has these time estimates: optimistic = 2, most likely = 5, and pessimistic = 9. What is its expected activity time? 5.17 5.67 6.00 5.33 5.00

a

Eli Whitney, in the 1900s, provided the foundations for ________ in operations management. a. interchangeable parts b. mass production c. logistics d. queuing theory e. statistical sampling

a

Goods/Service features and performance characteristics that cause customers to choose those over its competitors business are: a. Order Winners b. Dissatisfiers c. Exciters & Delighters d. Satisfiers e. Order Qualifiers

a

Johnny's Carpet cleaning service had revenues that averaged $70,000 per week in April and $60,000 per week in May. During both months, the company employed 6 full-time (40 hours/week) workers. In April the firm also had 4 part-time workers working 25 hours per week but in May there were only 3 part-time workers and they only worked 10 hours per week. What is the percentage change in labor productivity from April to May for Johnny's Carpet cleaning service? a. +7.9% b. +19.23% c. -15.84% d. There was no change in productivity e. +12.09%

a

What theory implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can? a. theory of comparative advantage b. theory of offshoring c. theory of core competencies d. theory of outsourcing e. theory of competitive advantage

a

Which of the following best describes experience differentiation? a. All of these are elements of experience differentiation. b. consumers may become active participants in the product or service c. immerses consumers in the delivery of a service d. uses people's five senses to enhance the service e. complements physical elements with visual and sound elements

a

Which of the following statements about challenges in operations management is FALSE? a. sustainable production is giving way to a low cost focus b. rapid product development is partly the result of short product cycles c. job specialization is giving way to employees who are cross trained d. local or national focus is giving way to global focus e. the goal of mass customization is to produce customizes products, whenever and where-ever needed

a

You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values. What can you conclude? You have multiple critical paths Only one path is optimal The project will not be completed by the desired time You have incorrectly performed the analysis

a

Ethical issues that may arise in projects large and small include: exaggerated expense reports. gifts from contractors. All of these. compromised quality standards to meet bonuses or avoid penalties related to schedules. pressure to mask delays with false status reports.

c

T/F:The larger the number of periods in the simple moving average forecasting method, the greater the method's responsiveness to changes in demand.

false

13: Genetek is a specialty genetic testing laboratory that makes reagents used for hospital laboratory tests. They can make 1,000 test kits per day using the following inputs: Building energy: $5,000 per day Capital costs: $10,000 per dayReagent supplies: $1 per bag @ 20,000 bags per day Technician labor: $12.50 per hour @ 400 hours per day What is the percent change in multifactor productivity if Genetek can reduce the energy bill by $2,000 per day without cutting production or changing any of the other inputs? a. 2.41% b. 5.26% c. 1.66% d. 2.56% e. 2.63%

b

16: Noted below is various financial data for Green Valley Farming in 20Y1 and 20Y2. Given this info, what is the percentage change in the total/multiple factor productivity for Green Valley Farming between 20Y1 & 20Y2? output: 2021-300000, 2022-330000 labor: 2021-40000, 2022-43000 material: 2021-45000, 2022-51000 energy: 2021-10000, 2022-9000 capital: 2021-250000, 2022-262000 other: 2021-2000, 2022-6000 a. 10.39 b. 2.88 c. - 9.22 d. - 0.53 e. 2.33

b

Advantages of outsourcing do NOT include: a cost savings. b potential creation of future competition. c maintaining a focus on core competencies. d gaining outside expertise. e accessing outside technology.

b

Assume the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $55 per visit, the frequency of repurchase is 12 times per year, the contribution margin is 20%, and the average customer defection rate is 30%. If the customer defection rate changed to 25%, what is the percent change in the average VLC? a. 33% b. 20% c. 10% d. 50% e. 25%

b

On average, customers purchase a new bicycle every seven years at an average cost of $1,300. The bike manufacturer has an 80 percent customer retention rate. Their accounting department estimates the incremental contribution to profit and overhead as 40 percent. Determine the average value of a loyal customer. a. $1,248.00 b. $371.43 c. $728.50 d. $18,200.00

b

The ________ is how an organization expects to achieve its missions and goals. a. Tactics b. Strategy c. Vision d. Mission

b

The degree or strength of a relationship between two variables is shown by the: mean absolute deviation. coefficient of correlation. cumulative error. mean. alpha.

b

The phases of project management are: GANTT, CPM, and PERT. planning, scheduling, and controlling. planning, programming, and budgeting. planning, organizing, staffing, leading, and controlling. different for manufacturing projects than for service projects.

b

Two critical path activities are candidates for crashing on a CPM network. Activity details are in the table below. To cut one day from the project's duration, activity ________ should be crashed first, adding ________ to project cost. Activity b Normal Time 6 days Normal Cost 4000 Crash Time 4 days Crash Cost 6000 activity c Normal Time 4 days Normal Cost 6000 Crash Time 3 days Crash Cost 8000 B; $6,000 B; $1,000 C; $3,000 C; $1,000 B; $2,000

b

Which of the following is LEAST likely to be a low-cost leadership competitive advantage? a. mass production b. broad product line c. effective capacity use d. low overhead e inventory management

b

Which of the following statements is true? a. External conditions are shaped by corporate mission. b. Functional strategies are shaped by corporate strategy. c. Corporate strategy is shaped by functional strategies. d. Functional area missions are merged to become the organizational mission. e. Corporate mission is shaped by functional strategies.

b

Which of the following statements regarding PERT analysis is true? a Each activity has two estimates of its duration. b Only critical activities contribute to the project variance. c Project standard deviation is the sum of all critical activity standard deviations. d The most likely time is equivalent to the expected activity time. e Project variance is the sum of all activity variances.

b

Which of the following statements regarding critical paths is true? Every network has only one critical path. On a specific project, there can be multiple critical paths, all with exactly the same duration. The shortest of all paths through the network is the critical path. Some activities on the critical path may have slack. The duration of the critical path is the average duration of all paths in the project network.

b

Which of these statements regarding time-cost tradeoffs in CPM networks is true? Crashing a project often reduces the length of long-duration, but noncritical, activities. Crashing shortens the project duration by assigning more resources to one or more of the critical tasks. Activities not on the critical path can never be on the critical path, even after crashing. The crash time always exceeds the normal time. Crashing is not possible unless there are multiple critical paths.

b

2: Due to some new features, a satellite manufacturer (Cyberspace Electronics) is seeing much higher demand. They have decided to change production scheduling to accommodate the higher demand. Originally Cyberspace Electronics produced 500 satellites in two 10-hour shifts. After the change to scheduling, they now operate three 8-hour shifts instead. Because of this change, they are now able to produce 600 satellites per day.What has happened to productivity? a. It has decreased by 9.1% b. It has increased by 6.25% c. There was no change in productivity d. It has increased by 20% e. it has increased by 37.5 boxes/hr

c

A manufacturer of laptop computers has a 70 percent customer retention rate. Their accounting department estimates the incremental contribution to profit and overhead as 40 percent. On average, customers purchase the laptop every three years at an average cost of $950. Determine the average value of a loyal customer. a. $506 b. $3,800 c. $422 d. $342 e. $798

c

A project organization that becomes permanent is often referred to as a: permanent project organization. standard organization. matrix organization. fixed project organization. normal organization.

c

Which of the following did the authors NOT suggest as a reason for globalizing operations? a. attract and retain global talent b. improve the supply chain c. understand markets d. pursue stockholder approval ratings e. reduce costs

d

Which of the following most requires long-range forecasting (as opposed to short-range or medium-range forecasting) for its planning purposes? purchasing production levels job scheduling capital expenditures cash budgeting

d

Which of the following statements about organizational missions is FALSE? a. They define a company's reason for existence. b. They provide guidance for functional area missions. c. They reflect a company's purpose. d. They are formulated after strategies are known. e. They indicate what a company intends to contribute to society.

d

Which of the following statements regarding CPM networks is true? The late start of an activity is its late finish plus its duration. There can be multiple critical paths on the same project, all with different durations. The early finish of an activity is the latest early start of all preceding activities. If a specific project has multiple critical paths, all of them will have the same duration.

d

________ is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. a. service management b. production c. supply chain managment d. operations management e. sustainability

d

A project being analyzed by PERT has 60 activities, 13 of which are on the critical path. If the estimated time along the critical path is 204 days with a project variance of 100, what is the probability that the project will take 224 days or more to complete? .8413 .97725 .1587 Not enough info provided to answer this question .0228

e

For an activity in a CPM analysis, the Early Start time is 8 and the Late Start time is 10. Which of the following statements is true? a. The Late Finish is 12 b. The Early Finish is 10 c. The activity is on the critical path d. The duration of this activity is 2 e. The slack for this activity is 2

e

Given the following historical data and weights of 0.55, 0.3, and 0.15, what is the three-period weighted moving average forecast for period 6? period 3:152 period 4: 150 oeriod 5:142 145.40 142 148 149.40 145.90

e

Sonya's Sweater Co. performed an RFP (request for proposal) to try and determine the best possible fabric manufacturing partner. The criteria and weighting used in the decision was provided to each vendor. After using the matrix to calculate the RFP winner, the new business was awarded to Fantastic Fabrics. The Silky Smooth Mfg company was disturbed to lose the business, especially because they appeared to perform so well in many of the RFP categories. Why did Silky Smooth Manufacturing lose the business to Fantastic Fabrics? a. Because Silky Smooths overall score of 6.4 was not as high as Fantastic Fabrics overall score. b. Because Silky Smooth Manufacturing is a dumb company name. c. Because Fantastic Fabrics beat Silky Smooth in 3 of the 4 weighted sections. d. None of the statements listed are accurate. e. Because Distribution capability had a high weighting and Silky Smooth performed poorly in that category.

e

The "Father of Scientific Management" is: a. W. Edwards Deming. b. iust a figure of speech, not a reference to a person. c. Henry Ford. d. Frank Gilbreth. e. Frederick W. Taylor.

e

The forecasting technique that pools the opinions of a group of experts or managers is known as: weighted averages. the expert judgment model. market survey. multiple regression. jury of executive opinion.

e

Which of the following is NOT a step in the forecasting process? Validate and implement the results. Select the forecasting model. Determine the time horizon of the forecast. Determine the use of the forecast. Eliminate any assumptions.

e

Which of the following is NOT true when explaining why productivity tends to be lower in the service sector than in the manufacturing sector? a. services are often an intellectual task performed by pros b. services are difficult to automate c. services are labor intensive d. services are difficult to evaluate for quality e. service operations are typically capital intensive

e

Which of the following nets the largest productivity improvement? a. increase output 15% b. increase both output and input by 5% c. decrease input 10%, increase output 3% d. increase output 10%, decrease input 3% e. decrease input 15%

e

Which of the following statements regarding Gantt charts is true? Gantt charts give a timeline and precedence relationships for each activity of a project. All of these are true. Gantt charts use the four standard spines of Methods, Materials, Manpower, and Machinery. Gantt charts are expensive. Gantt charts are visual devices that show the duration of activities in a project.

e

T/F:A naïve forecast for September sales of a product would be equal to the forecast for August.

false

T/F: A time-series model uses a series of past data points to make the forecast.

true