BUSOBA 3230 Exam 1

One MAD is approximately how many standard deviations?

0.8

An approach to improving business processes that seeks to make revolutionary changes as opposed to evolutionary (small) changes

Business process reengineering (BPR)

One standard deviation is approximately how many MADs?

1.25

What amount of historical data does the linear regression method require?

10-20 observations

Which method produces the best forecast? Naïve forecast Exponential smoothing It depends on error diagnostics Weighted moving average Simple moving average

It depends on error diagnostics

To achieve high customer service with minimum levels of inventory investment

Lean manufacturing

A forecasting technique that fits a straight line to past demand data.

Linear regression forecasting

The role of operations in The Service Triangle is a major one. Which of the following are part of operations responsibility? Check all that apply.

Managing the workforce Equipment Service systems Facilities Procedures

The process of identifying and separating time series data into fundamental components such as trend and seasonality.

Decomposition

An Internet tool to coordinate forecasting, production, and purchasing in a firm's supply chain.

Glossary Collaborative planning, forecasting, and replenishment (CPFR)

Based on the operational decisions discussed in the in-class video, what appear to be the competitive priorities for Jeni's? Top quality product and top quality experience Low cost product and on time delivery High variety product and speed of experience Consistent quality product and fast delivery speed

Top quality product and top quality experience

aka logistics processes

delivering

Adjusting the value of alpha to more closely track actual demand is called _____________________________forecasting.

adaptive

The main disadvantage of the moving average is that

all individual data elements must be carried as data.

Professor Newsom purchases paint from Sherwin-Williams Store when redecorating her home. She is therefore a customer of Sherwin-Williams and is ___________________________ in the supply chain. strategic competitive upstream downstream

downstream

Professor Steve likes to mix things up at Jeni's by ordering three different kinds of ice cream in one cup. In other words, he wants a high variety and fast delivery. The production strategy that allows Jeni's Scoop Shop employees to give Professor Steve what he wants is called __________.

assemble to order

A setup in which an item is produced through a fixed sequence of workstations, designed to achieve a specific production rate.

assembly line

The use of current business data to solve business problems using mathematical analysis.

business analytics

A ratio of the actual output of a process relative to some standard. Also, being "efficient" means doing something at the lowest possible cost.

efficiency

The use of the Internet as an essential element of business activity.

electronic commerce

A process that converts raw materials into finished product in one continuous process.

continuous process

the service triangle has the _________________ surrounded by the _______________, _____________, and _______________.

customer, service strategy, support systems, employees

In regards to the service package, the benefits that are readily observable by the senses and that consist of the essential or intrinsic features of the service. Multiple choice question.

explicit services

When the most recent occurrences are more indicative of the future than those in the distant past, one should use which time series model?

exponential

The material purchased by the buyer or the items provided to the customer

facilitating goods

The difference between actual demand and what was forecast.

forecast error

Using the customer-contact matrix, the customer-facing processes (i.e., serving ice cream) in Jeni's Scoop Shops has __________variety or customization and ______________volume, so it would be classified as a ____________operation.

high low front office

Getting a haircut is more like a service process because: the haircut is tangible. the quality is very objective and easy to measure. if the appointment is missed, it can not be stored for another time. there is very little customer involvement.

if the appointment is missed, it can not be stored for another time.

In regards to the service package, the psychological benefits that the customer may sense only vaguely, or the extrinsic features of the service.

implicit services

T or F: Cyclical trends are less predictable than season trends

T

The attractiveness of a product relative to its price.

value

A ____________________ layout is sometimes referred to as a job shop.

workcenter

A ____________________ layout is where similar equipment or functions are grouped together,

workcenter

Often referred to as a job shop, a process structure suited for low-volume production of a great variety of nonstandard products. sometimes are referred to as departments and are focused on a particular type of operation.

workcenter

consists of the processes needed to operate an existing supply chain strategically. Here a firm must determine how anticipated demand will be met with available resources

planning

One or more activities that transform inputs into outputs.

processes

Are aggregate forecasts or product-level forecasts more difficult?

product-level

Which of the following would be recommended by the product-process matrix for low volumes?

project

Which of the following would be recommended by the product-process matrix for the lowest product standardization?

project

A setup in which the product remains at one location, and equipment is moved to the product.

project layout

where the major product is produced or the service is provided

making

Groups dissimilar machines to work on products that have similar shapes and processing requirements.

manufacturing cell

Which layout uses a dedicated area where products that are similar in processing requirements are produced?

manufacturing cell

Emphasizes how a factory's capabilities could be used strategically to gain advantage over a competing company.

manufacturing strategy

When a firm seeks to match what a competitor is doing by adding new features, services, or technologies to existing activities. This often creates problems if trade-offs need to be made.

straddling

Medium and long-term forecasts that are used for decisions related to strategy and aggregate demand.

strategic forecasts

You generally use medium-term forecasts for planning a ________________ for meeting demand over the next six months to a year and a half.

strategy

The physical resources that must be in place before a service can be offered

supporting facility

The ability to meet current resource needs without compromising the ability of future generations to meet their needs.

sustainability

Short-term forecasts used for making day-today decisions related to meeting demand.

tactical forecasts

When demand for a product is neither growing nor declining rapidly, and if it does not have seasonal characteristics, a __________________________________ can be useful in removing the random fluctuations for forecasting.

moving average

involves processes for receiving worn-out, defective and excess products back from customers and support for customers who have problems with delivered products

returning

The single exponential smoothing equation states that the current_______________________is equal to the ____________________forecast plus a portion of the _____________________.

new, old, error

As the moving average period becomes _____________________ and _________________-periods are used, there is more oscillation and there is a closer following of the trend.

shorter, fewer

A statistical term to describe the quality goal of no more than 3.4 defects out of every million units. Also refers to a quality improvement philosophy and program.

six sigma

One or more specific marketing-oriented dimensions that clearly differentiate a product from competing products.

order winners

With single exponential smoothing forecasting, the forecast __________________________________ when a change in direction occurs.

overshoots

involves the selection of suppliers that will deliver the goods and services needed to create the firms product

sourcing

What amount of historical data does the simple moving average method require?

6-12. months, weekly data are often used

Customer involvement is a distinctive characteristic of service processes. Advantages are many, including the opportunity for firm's to reduce expenses by having customers do the work. How might customer involvement be disadvantageous?

Customers might NOT do it correctly. Customers might NOT want to do what you want them to do. Customers might NOT be able to do what you want them to do.

Operations Management is defined as "The systematic design, direction, and control of processes that transform inputs into services and products for internal, as well as external, customers". Therefore, operations management only apply in these industries: Healthcare All Industries Government Manufacturing Financial Services Non-Profit Organizations

All Industries

stakeholders

Those individuals or organizations that are influenced, either directly or indirectly, by the actions of the firm

Which work flow structures is appropriate for a process with great flexibility to produce a variety of products?

Workcenter

those individuals or companies that legally own one or more shares of stock in the company

shareholders

Fill in the blanks of the common forecasting caveats. 1. assess the integrity of the _________________ 2. demand is not the same as ________________ 3. The forecast can and must _______________ based on the big picture, economic outlook, etc. 4. beware of _________ 5. Do not undervalue __________ gained from people collaborating and communicating well and do not simply rely on using the most ______________ forecasting technique or model.

1. data collection process 2. sales data 3. make sense 4. bias 5. insights, advanced

list the four criteria for selecting times-series method

1. least detectable bias 2. lowest variability 3. using a holdout sample analysis 4. meeting managerial expectations of changes in the components of demand

list the 5 supply chain processes

1. planning 2. Sourcing 3. Making 4. Delivering 5. Returning

judgmental forecasts use contextual knowledge gained through experience, such as

1. salesforce estimates 2. executive opinions 3. market research 4. delphi method

list the 6 steps of CPFR

1. set goals 2. collaborate and plan 3. develop demand forecast 4. share forecasts 5. replenish inventory 6. repeat

If a firm produced a product where they were expecting growth, what alpha value would you expect them to use?

15 to 30

What amount of historical data do the trend and seasonal model methods require?

2-3 observations per season

m produced a standard item with relatively stable demand, what alpha value would you expect them to use?

5 or 10

What amount of historical data do the weighted moving average and exponential smoothing methods require?

5-10 observations needed to start

Forecasting using independent variables other than time to predict future demand.

Causal relationship forecasting

CPFR stands for

Collaborative Planning, Forecasting, and Replenishment

Doing the things that will create the most value for the customer.

Effectiveness

A term that refers to the billions of devices that are connected to the Internet.

Internet of Things

An integrated set of activities designed to achieve high-volume production using minimal inventories of parts that arrive exactly when they are needed.

Just-in-time (JIT)

Which type of firm invests in lean manufacturing programs in order to improve customer service levels for a given inventory investment?

Make-to-stock

The ability to produce a unique product exactly to a particular customer's requirements.

Mass customization

Forecast Errors that measure variability are as follows: (check all that apply) Mean Forecast Bias (Mean Bias) Cumulative Sum Forecast Error (CSE or CFE) Mean Absolute Error (MAD) Mean Absolute Percent Error (MAPE)

Mean Absolute Error (MAD) Mean Absolute Percent Error (MAPE)

Forecast Errors that measure bias are as follows: (check all that apply) Mean Absolute Error (MAD) Mean Forecast Bias (Mean Bias) Cumulative Sum Forecast Error (CSE or CFE) Mean Absolute Percent Error (MAPE)

Mean Forecast Bias (Mean Bias) Cumulative Sum Forecast Error (CSE or CFE)

The design, operation, and improvement of the systems that create and deliver the firm's primary products and services.

Operations and supply chain management (OSCM)

The setting of broad policies and plans that will guide the use of the resources needed by the firm to implement its corporate strategy.

Operations and supply chain strategy

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

Operations effectiveness

Dimensions used to screen a product or service as a candidate for purchase.

Order qualifiers

A framework depicting when the different production process types are typically used, depending on product volume and how standardized the product is.

Product-process matrix

When a firm builds service activities into its product offerings to create additional value for the customer.

Product-service bundling

Headquartered in Germany, Aldi is one of the fastest growing discount supermarkets in the United States. In a recent advertisement aired on local television, Aldi claims: "you will like our products but love our prices." Which of the following is most true for Aldi? Neither products or price are order winners Both products and price are order winners Products are order qualifiers, price is an order winner Price is an order qualifier, products are order winners

Products are order qualifiers, price is an order winner

The parameter in the exponential smoothing equation that controls the speed of reaction to differences between forecasts and actual demand.

Smoothing constant alpha (α)

Which is the larger measure, the standard deviation or MAD?

Standard deviation

In regards to the service package, the physical resources that must be in place before a service can be offered.

Supporting facility

Aggressively seeks to eliminate causes of production defects.

Total quality control (TQC)

Managing the entire organization so it excels in all dimensions of products and services important to the customer.

Total quality management (TQM)

Single exponential smoothing has the shortcoming of ______________________changes in demand.

lagging

Honda generally employs ____________ process choice due to high volume, high capital intensity and low product diversity.

line

The Meat consumption by selected country chart represents average annual consumption per person. Why does China and UK have a positive increasing trend? mean and standard deviation is fixed mean is increasing and standard deviation is fixed trend is horizontal trend is negative trend is seasonal

mean is increasing and standard deviation is fixed

In business forecasting, what time frame usually refers to three months to two years?

medium

A forecast in which past demand data is used to predict future demand.

time series analysis

A measure of whether the forecast is keeping pace with any genuine upward or downward changes in demand. This is used to detect forecast bias.

tracking signal

A business strategy that includes social, economic, and environmental criteria.

triple bottom line

Long-term forecasting models detect general trends and are especially useful in identifying major

turning points

When the Cumulative Sum Forecast Error (CSE or CFE) is very large, the forecast consistently? underestimates true demand. is seasonal. overestimates true demand. is accurate.

underestimates true demand.