Chapter One QM3345
d) The percentage increase in productivity is ___________% (enter your response as a percentage rounded to two decimal places).
((New productivity-old Productivity)/old Productivity)*100 ((25-20)/20)*100= 25%
Which of the following best defines scheduling? A. Determines and implements long- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. B. Determines and implements long- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. C. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. D. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands.
D
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to be changed. (Productivity remains the same.) (Hint: Each worker works 160 hours per month.) If the bakery currently makes 1,500 loaves per month with labor productivity of 2.344 loaves per labor hour, then Lackey will need to add __________worker(s) to meet the increased demand.
1 2.344=1500/160x x=4 2.334=1875/160x x=5 5-4=1
The percentage increase in productivity is ___________%
10% ((2.75-2.5)/2.5)*100
Carbondale Casting produces cast bronze valves on a 10-person assembly line. On a recent day, 200 valves were produced during an 8-hour shift. a) Labor productivity of the line = _________valves/labor hour (round your response to two decimal places).
2.5 200/(8*10)
John Goodale, the manager at Carbondale, changed the layout and was able to increase production to 220 units per 8-hour shift. The new labor productivity equals ________ valves/labor hour (round your response to two decimal places).
2.75 220/(8*10)
If Lori redesigns the package, the productivity increases by __________
40%
Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 20 hours per day making the 400 boxes. a) Their productivity = _________ boxes/hour (round your response to two decimal places).
400/20=20
c) The unit increase in productivity is ________ boxes/hour (round your response to two decimal places).
5
Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 20 hours per day making the 400 boxes. Chuck and his employees have discussed redesigning the process to improve efficiency. Suppose they can increase the rate to 500 boxes per day.b) Their new productivity = __________ boxes/hour (round your response to two decimal places).
500/20= 25
The creation of goods and services is referred to as: A. production. B. formation. C. design. D. transformation.
A
The father of scientific management is A. Frederick W. Taylor. B. Henry L. Gantt. C. Henry Ford. D. Eli Whitney.
A
The person who introduced standardized, interchangeable parts was A. Eli Whitney. B. W. Edwards Deming. C. Frederick W. Taylor. D. Henry Ford.
A
The service sector constitutes what percentage of employment in the United States? A. between 80% to 90% B. between 50% to 60% C. between 70% to 80% D. between 60% to 70%
A
Which of the following is NOT considered to be one of the three primary functions that all organizations perform? A. research and development B. finance/accounting C. production/operations D. marketing
A
Which of the following tasks would NOT typically represent an operations management activity at Hard Rock Cafe? A. filing a tax return B. preparing an employee schedule C. designing an efficient layout D. receiving a shipment of incoming food ingredients
A
Which of these is NOT one of the 10 strategic OM decisions? A. marketing B. managing quality C. layout strategies D. scheduling
A
Which of these statements accurately captures a current trend in operations? A. Rapid product development. B. Mass production at the expense of product variety. C. Jobs are increasingly specialized as workers focus on basic assembly tasks. D. There is increased focus on local market and local competition.
A
A large percentage of the revenue of most firms is spent on which function? A. research and development B. operations C. marketing D. finance
B
Which of the following activities at a commercial bank is NOT an operations activity? A. maintenance B. auditing C. check clearing D. security
B
Which of the following activities at an airline is NOT an operations activity? A. catering B. sales C. flying D. crew scheduling
B
Which of the following is NOT a characteristic of services? A. produced and consumed simultaneously B. standardized product C. unique D. intangible
B
Which of the following is NOT considered to be a stakeholder? A. customers B. competitors C. community members D. distributors
B
Which of the following is NOT one of the reasons operations managers want to work with their supply chains to viciously cut inventories at every level? A. Inventory requires financial resources. B. Inventory provides safety against higher-than expected demand. C. Inventory hides quality issues. D. Inventory constrains response to ever-shorter product life cycles
B
Which operations function at a manufacturing facility strives for the efficient use of machines, space, and personnel? A. design B. industrial engineering C. production and inventory control D. process analysis
B
A global network of organizations and activities that supply a firm with goods and services is referred to as A. operations management. B. business functions. C. a supply chain. D. production.
C
In general, the supply chain starts with A. research and development. B. a distributor. C. the provider of basic raw materials. D. final customers at the retail store.
C
The economic activities that typically produce an intangible product are referred to as A. phantoms. B. goods. C. services. D. products.
C
Which of the following is NOT one of the four reasons that we study OM? A. It is one of the three major functions of any organization. B. We want to know how goods and services are produced. C. We want to understand what marketing managers do. D. It is such a costly part of an organization.
C
Competition in the 21st century is no longer between companies; it is between A. countries. B. technologies. C. individuals. D. supply chains.
D
The person who believed that management must do more to improve the work environment and processes so that quality can be improved was A. Henry Ford. B. Eli Whitney. C. Walter Shewhart. D. W. Edwards Deming
D
The production process at Hard Rock Cafe does NOT include which of the following activities? A. cooking B. placing raw materials in cold storage C. receiving D. advertising
D
What is the goal for mass customization? A. The goal is to seek creative designs, efficient production, and high-quality goods via international collaboration. B. The goal is to let operations managers work with their supply chain to viciously cut inventories at every level. C. The goal is to enrich jobs and move more decision making to the individual contributor. D. The goal is to produce customized products, whenever and wherever needed.
D
Which of the following OM decisions determines how a good or service is produced and commits management to specific technology, quality, human resources, and capital investment? A. managing quality B. design of goods and services C. human resources and job design D. process and capacity design
D
Which of the following does NOT contribute to OM? A. other disciplines including industrial engineering, statistics, management, and economics B. information technology C. innovations from physical sciences D. unsystematic processing of data
D
Which of the following is NOT one of the factors that fosters specialization and worldwide supply chains? A. instant communication B. specialized expert knowledge C. cheaper transportation D. marketing
D
Which of the following is an example of a "hidden" production function? A. producing a computer B. manufacturing a television C. assembling a motorcycle D. transplanting a liver
D
Which of the following organizations does NOT belong to the service sector? A. Costco B. San Diego Zoo C. Southwest Airlines D. Ford Motor Company
D
Which of the following trends is NOT part of the exciting OM challenges currently facing operations managers? A. rapid product development B. sustainability C. supply chain partnering D. local focus
D
Which of these is NOT one of the basic functions of the management process? A. staffing B. leading C. controlling D. inspecting
D
George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year: Last Year Now Units Produced 1,200 1,200 Labor (hours) 300 260 Resin (pounds) 60 48 Capital Invested ($) 9,000 12,500 Energy (BTU) 2,950 2,850 The productivity change for each of the inputs (Labor, Resin, Capital, and Energy) is:
Labor Productivity Change = 15.38% Resin Productivity Change = 25% Capital Invested Productivity Change = -27.99% Energy Productivity Change = 3.51%
Lori Cook produces Final Exam Care Packages for resale by her sorority. She is currently working a total of 5 hours per day to produce 100 care packages.
Lori's productivity = 20 packages/hour (round your response to two decimal places). 100/5
This year, Druehl, Inc., will produce 57,600 hot water heaters at its plant in Delaware, in order to meet expected global demand. To accomplish this, each laborer at the plant will work 160 hours per month. If the labor productivity at the plant is 0.25 hot water heaters per labor hour, how many laborers are employed at the plant?
Number of laborers employed by the plant = 120 laborers 0.25=(57600/12)/160x
George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year: Last Year Now Cost Per Input Unit Units Produced 1,200 1,200 Labor (hours) 300 275 $12 per hour Resin (pounds) 48 43 $5 per pound Capital Invested ($) 10,000 11,000 2% per month Energy (BTU) 3,000 2,850 $0.50 per BTU
The percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator = 7.36% 1200/((300*12)+(48*5)+(10000*0.02)+(3,000*0.05))=0.22 1200/((275*12)+(43*5)+(11000*0.02)+(2850*0.05)=0.023 ((0.2326-0.2166)/0.2166)*100=7.36
Hokey Min's Kleen Karpet cleaned 65 rugs in October, consuming the following resources: Labor: 520 hours at $13 per hour Solvent: 100 gallons at $8 per gallon Machine Rental: 24 days at $60 per day
a) Labor productivity per dollar = 0.0096 rugs/dollar b) Multifactor productivity = 0.0072 rugs/dollar
Lori thinks that by redesigning the package she can increase her total productivity to 140 care packages per day.
b) Lori's new productivity = 28 packages/hour (round your response to two decimal places).
The 10 strategic OM decisions are:
design of goods and services, managing quality, process strategy, location strategies, layout strategies, human resources, supply chain management, inventory management, scheduling, and maintenance.
