BUAD 3020 Test 1
Which of the following is an input file necessary to run an MRP system? (a) Bill of materials (BOM) file (b) Quality management report (c) Exception reports (d) Planned-order schedules (e) Purchasing contracts
(a) Bill of materials (BOM) file
Which of the following are alternative possible service encounters included in the Service-System Design Matrix? (a) Mail contact (b) Warranty (c) Sales call (d) Field service (e) None of these
(a) Mail contact
Which of the following is a partial measure of productivity? (a) Output/Materials (b) Output/(Labor + Capital + Energy) (c) Output/All Resources Used (d) Outputs/Inputs (e) All of These
(a) 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? (a) Partial Measure (b) Multifactor Measure (c) Total Measure (d) Global Measure (e) All of These
(a) Partial Measure
Which of the following is considered a primary report in an MRP system? (a) Planned order schedule (b) Peg report (c) Planning report (d) Inventory accuracy report (e) Aggregate production plan report
(a) Planned order schedule
In an overview of the major operations planning activities in a typical organization, which of the following activities precedes aggregate sales and operations planning? (a) Process planning (b) Workforce scheduling (c) Master production scheduling (d) Materials requirements planning (e) Order scheduling
(a) Process planning
A roller coaster ride in an amusement park employs which type of queuing system line structure? (a) Single channel, single phase (b) Single channel, multiphase (c) Multichannel, single phase (d) Multichannel, multiphase (e) None of these
(a) Single channel, single phase
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? (a) Task (b) Time (c) Teamwork (d) Trust (e) Talent
(a) Task
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? (a) 0.500 (b) 0.833 (c) 0.973 (d) 0.990 (e) None of these
(b) 0.833
Which of the following is an alternative possible service encounter included in the service-system design matrix? (a) Face-to-face distance (b) Internet (c) Questionnaire response (d) Automated teller (ATM) (e) Response card encounter
(b) Internet
In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following? (a) Low sales opportunity (b) Low production efficiency (c) High production efficiency (d) Low degree of customer/server contact (e) None of these
(b) Low production efficiency
Which of the following is an input to the master production schedule (MPS)? (a) Inventory records file (b) The aggregate plan (c) The bill of materials (d) The exception report (e) Planned order schedules
(b) The aggregate plan
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? (a) Process planning (b) Workforce scheduling (c) Master scheduling (d) Materials requirements planning (e) Order scheduling
(b) Workforce scheduling
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? (a) 3 (b) 5 (c) 6 (d) 8 (e) None of these
(c) 6
Some of the advantages of a functional project where the project is housed in a functional division include which of the following? (a) The project manager has full authority over the project (b) Team pride, motivation, and commitment are high (c) A team member can work on several projects (d) Needs of the client are secondary (e) None of these
(c) A team member can work on several projects
Which of the following industry types have high expected benefits from the application of MRP? (a) Fabricate-to-stock (b) Fabricate-to-order (c) Assemble-to-stock (d) Continuous process (e) Service and repair parts
(c) Assemble-to-stock
Which of the following is not a suggestion for managing queues presented in the textbook? (a) Train your servers to be friendly (b) Segment the customers (c) Determine an acceptable waiting time for your customers (d) Inform your customers of what to expect (e) Encourage customers to come during slack periods
(c) Determine an acceptable waiting time for your customers
The acronym ERP stands for: (a) Executive Reliability Profile—A Human Resources program that identifies fast-track middle managers (b) Erratic Response Parameter—A quality metric indicating that a process is in or out of statistical control (c) Enterprise Resource Planning—A data base of that ties together all application programs in a firm. (d) Emergency Response Plan—A document required by government indicating planned responses to emergency situations (e) Elevated Reply Protocol—A list of executives authorized to deal with difficult customer concerns
(c) Enterprise Resource Planning—A data base of that ties together all application programs in a firm.
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? (a) Economic Order Quantity (b) Lot for lot (c) Least total cost (d) Least unit cost (e) ABC analysis
(c) Least total cost
A firm fills its customer's orders from finished goods inventory. It is a: (a) Make to order firm (b) Engineer to order firm (c) Make to stock firm (d) Customer service firm (e) Assemble to order firm
(c) Make to stock firm
From an operational perspective yield management is least effective under which of the following circumstances? (a) Demand can be segmented by customer (b) The product can be sold in advance (c) The product can be kept to be sold when demand is stronger (d) Fixed costs are high and variable costs are low (e) Demand is highly variable
(c) The product can be kept to be sold when demand is stronger
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? (a) 670 (b) 600 (c) 530 (d) 70 (e) None of these
(d) 70
In the service-system design matrix, an internet and on-site technology service encounter is expected to have which of the following? (a) High sales opportunity (b) High degree of customer/server contact (c) Low production efficiency (d) High production efficiency (e) None of these
(d) High production efficiency
Decisions that relate to the design of the processes and the infrastructure needed to support these processes relate to which OSCM concept? (a) Sustainability (b)Competitive dimensions of OSCM (c)Making trade-offs (d) Integrating operations and supply chain strategy with a firm's operational capabilities (e) Supply chain risk
(d) Integrating operations and supply chain strategy with a firm's operational capabilities
According to Little's Law, which of the following ratios is used to find throughput rate? (a) Cycle time/Process time (b) Throughput time/Process velocity (c) Process velocity/Throughput time (d) Inventory /Flow time (e) Value added time/Process velocity
(d) Inventory /Flow time
Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position? (a) Cost or Price (b). Delivery Speed (c)Delivery Reliability (d) Management Acumen (e) Coping With Changes in Demand
(d) Management Acumen
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? (a) Upgrade the equipment (b) Assign a roaming helper to support the line (c) Split the task between two workstations (d) Speed up the assembly line transfer mechanism (e) Use a more skilled worker
(d) Speed up the assembly line transfer mechanism
Which of the following is considered a "pure" production planning strategy? (a) Variable workforce, stable work hours (b) Lag demand (c) Level playing field (d) Stable workforce, variable work hours (e) Product warehouse
(d) Stable workforce, variable work hours
In essence, a queuing system includes several major components. Which of the following is not one of them? (a) Source population (b) Servicing system (c) How the customer exits the system (d) The queue discipline (e) None of these
(d) The queue discipline
Which of the following are the three major components of a queuing system? (a) The source population, how customers exit the system, and the queuing discipline (b) The number of servers, the service speed and the waiting line (c) The source population, how the customer exits the system, and the servicing system. (d) The source population and the way customers arrive at the system, the serving systems, and how customers exit the system. (e) The service speed, the queue discipline and the waiting line
(d) The source population and the way customers arrive at the system, the serving systems, and how customers exit the system.
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? (a) Gantt Chart (b) PERT Chart (c) Bar/Milestone Chart (d) Total Program Cost Breakdown (e) EVM Chart
(e) EVM Chart
What is meant by the term "operations effectiveness?" (a) Products produced in sufficient volume to meet demand (b) Products produced at the lowest price in the industry (c) Operations that run without error and with no surprises for top management (d) Operations that can adapt quickly and efficiently to new and evolving conditions (e) Performing activities in a manner that best implements strategic priorities at minimum cost
(e) Performing activities in a manner that best implements strategic priorities at minimum cost
Various financial data for SunPath Manufacturing for 2015 and 2016 follow. 2015 2016 Output: Sales $300,000 $330,000 Inputs: 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 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?
.750 (60/(8*10))
Various financial data for SunPath Manufacturing for 2015 and 2016 follow. 2015 2016 Output: Sales $300,000 $330,000 Inputs: 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
A bank branch manager position is not an OSCM-type of job ( T or F).
False
A process map shows the physical location of the various processes within a supply chain (T or F).
False
Activity-system maps depict the geographic reach of a company's business strategies (T or F).
False
Aggregate Planning Techniques is developed from the master schedule and the strategic capacity plan (T or F).
False
An input to the material requirements planning (MRP) system is an exception report (T or F).
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 (T or F).
False
In a multifactor measure of productivity the numerator of the ratio would include all resources used or all inputs (T or F).
False
In a net change MRP system requirements and schedules are considered rigid and never updated (T or F).
False
In a practical sense, an infinite queue is one that includes every possible member of the served population (T or F).
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 ( T or F).
False
Little's law states that supply chain processes can be regarded as unrelated and thus treated and analyzed separately (T or F).
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 (T or F).
False
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 (T or F).
False
Subcontracting is viewed as a risky strategy because the firm may lose control of product design and pricing (T or F).
False
Supply networks cannot be constructed for every product or service (T or F)
False
The closer the customer is to the customer order decoupling point the longer it takes the customer to receive the product (T or F).
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 (T or F).
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 (T or F).
False
The lot-for-lot (L4L) lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations (T or F).
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 (T or F).
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 (T or F).
False
The valuations in an Earned Value Management analysis must be either profits or revenue (T or F).
False (Can also be based on cost measures)
A matrix project structure is often referred to as a "skunkworks" (T or F).
False (Pure Project = Skunkworks)
The time-phased plan specifying how many and when the firm plans to build each end item is called the Materials Requirements Plan (MRP) (T or F).
False (That is the master production schedule)
The second step in managing a project is writing the Statement of Work (T or F).
False (That's what starts a project)
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 ( T or F).
False (The process is called Straddling)
A process can be effective without being efficient (T or F).
True
A work breakdown structure is used in project management but it is not used when the critical path method is involved (T or F).
True
An example of an assemble-to-order firm is Dell Computer (T or F).
True
An important aspect of service products is that they cannot be inventoried (T or F).
True
An order qualifier is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase (T or F).
True
An order winner is a set of criteria that differentiates the products or services of one firm from another (T or F).
True
Assembling-to-order means moving the customer order decoupling point from finished goods to components (T or F).
True
Complex projects are often subdivided into a series of tasks that are typically configured to be not longer than several months in duration (T or F).
True
Earned Value Management (EVM) is a technique for measuring project progress in an objective manner (T or F).
True
Ideally in waiting line or queuing analysis we want to balance the cost of service capacity with the cost of waiting (T or F).
True
In services, once the aggregate staffing level is determined, the focus is on short-term workforce and customer scheduling (T or F).
True
Just in time (JIT) production was a major breakthrough in manufacturing philosophy pioneered by the Japanese ( T or F).
True
Longest waiting time in line is a queue discipline discussed in the textbook (T or F).
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 (T or F).
True
One of the advantages of a functional project organizational structure is that a team member can work on several projects (T or F).
True
One of the assumptions made using CPM is that project activities can be identified with clear beginning and ending points (T or F).
True
One trade-off illustrated by the product-process matrix is between flexibility and cost (T or F).
True
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 (T or F).
True
Operations and supply strategy can be viewed as part of a planning process that coordinates operational goals with those of the larger organization (T or F).
True
Poka-Yoke is roughly translated from Japanese as "Avoid Mistakes" (T or F).
True
Services are intangible processes that cannot be weighed or measured ( T or F)
True
The Aggregate Operations Plan variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period (T or F).
True
The Aggregate Operations Planning variable "workforce level" refers to the number of workers needed to accomplish the planned production (T or F).
True
The critical path in a CPM analysis is found by locating the activities times with zero slack (T or F).
True
The focus in the make-to-stock environment is on providing finished goods where and when the customers want them (T or F).
True
The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand (T or F).
True
The master production schedule states the number of items to be produced during specific time periods (T or F).
True
The term "assembly line" refers to progressive assembly linked by some material handling device (T or F).
True
The term "electronic commerce" refers to the use of the internet as an essential element of business activity (T or F).
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 (T or F).
True