Exam 1 Operations Management
Which of the following statements about vertical integration is true?
As a firm performs more processes itself, from acquiring materials to final delivery to customers, the more vertically integrated it is.
Studying a company that is considered a world leader in distribution logistics in order to improve your company's distribution process is an example of:
Benchmarking
Which of the following statement concerning process management is true?
Capital intensity depends on the mix of equipment and human skills in a production process; the greater the relevant cost of equipment to labor, the greater the capital intensity.
Which of the following statements on acceptance sampling and process control methods is TRUE?
Complete inspection is preferred over sampling for products that could be critical to human life
Which of the following statements about process choice is best?
Continuous process is very capital intensive
Which of the following statements regarding operations management are true?
Customer participation and information on performance are two special types of inputs to a production system
A product-oriented layout is characterized by:
Equipment arrangement based on the sequence of operations
Just-In-Time inventory is a zero inventory system
False
Reducing lot sizes is of little help in reducing inventory costs
False
Which of the following statements concerning flow diagrams is not true?
Flow diagrams are useful only in a reengineering a process, but defiantly not for continuous improvement
Which of the following statements about customer involvement is best?
For services that directly involve the customer, the customer often indicates the time of the service
Operations Management
Inputs into and operation that produces an output i.e. good or service
Which of the following is not a trend in operations management?
Job Specialization
Which of the following is NOT a service or manufacturing strategy?
Make-to-Assemble
Firms that produce high volumes of relatively few standardized products, for which reasonably accurate forecasts are available, are most likely to use a
Make-to-Stock
Which of the following statements is true?
No two products are exactly alike because the production process contained many sources of variation, even if the process is a machine.
Which of the following tools of Quality Management is used to organize & quantify problems?
Pareto Analysis
Which of the following is not an element of JIT?
Push Production
Which of the following statements on a continuous improvement and reengineering is best?
Reengineering starts with a "clean slate" whereas continuous improvement looks for ways to incrementally improve
Frequent deliveries of small quantities are a characteristic of JIT partnerships
True
Hidden problems are generally uncovered during the process of reducing inventory
True
In the Just-In-Time framework, waste is anything that does not add value
True
Just-In-Time is a philosophy that works well with continuous improvement philosophies
True
When using SPC, a process is said to be in control if none of the sample points fall outside the control limits
True
Which of the following statements about process management is best?
When customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties
Analysis of a process is most likely to be economically beneficial if the process is
a bottleneck operation
Total Quality Management emphasizes
a commitment to quality that goes beyond internal company issues to suppliers and customers
Which of the following statements best characterize on-time delivery?
a company that always delivers at the promised time
Which of the following is an example of competing on the basis of customization?
a firm offers more variations of its products than its competitors
Among the characteristics of an intermittent production process is
ability to produce a variety of products
Which of the following is/are NOT fundamental to operations management?
advertising tactics
Which of the following represent issues of culture and ethics in International Operations?
all of the above are cultural and ethics issues
Which of the following represent reasons for globalizing operations?
all of the above are reasons to globalize
The "standards of global competition" include all of the following except
all of the above are standards of global competition
In which of the following phases of a product should quality be considered?
all phases
Costs associated with inspection, testing, and data gathering to determine the actual quality of product throughout all phases of the production process is what type of quality cost?
appraisal costs
A national fast food restraunt will most likely compete on which of the following dimensions of quality?
conformance
In a sampling plan, if n, the sample size, is held constant while c, the acceptance number is decrease then?
consumer risk decreases
Which of the following are of special importance to the managing of global service operations?
culture, ethics and educational level of workforce
Productivity can be improved by
decreasing inputs while holding outputs steady
The difference between process focus and product focus is in:
degree of flexibility of production system, extent of product customization and volume of production per product and product varriety
Which of the following is not an advantage of on-site expansion compared to building a new facility in a foreign country?
direct access to new markets
Which of the following is NOT a goal of JIT partnerships?
elimination of unnecessary activities , in-plant inventories, and engineering changes
An approach to location analysis that includes both qualitative and quantitative considerations is a. locational cost-volume b. factor rating c. transportation model d. assignment method e. make or buy analysis
factor rating
Which of the following statements is true?
functional strategies are shaped by corporate strategy
Attribute inspection is appropriate for measuring
if a product is conforming or non-conforming
Which of the following is not a trend in operations management?
increased presence in the manufacturing sector
When production volumes are high, process decision are made more likely to favor?
less resource flexibility
Reduction of in-transit inventory can be encouraged through use of a. supplier location near plants b. low setup costs c. low carrying costs d. use of trains, not trucks e. low-cost, global suppliers
low carrying costs
Products built in anticipation of demand and sold from inventory are classified as
make-to-stock
According to the quality literature, which of the following is NOT included in the cost of quality?
marketing costs
Optimizing capacity would be most appropriate for which stage in the product life cycle?
maturity
A firm can effectively use its operations function to yield advantage via all of the following except
maximization of equipment utilization, even if it means increasing inventory levels
Which of the following is NOT necessarily an essential element of a TQM program?
obtaining the Malcolm Bal Ridge National Quality award
A job shop process requires
organizing the resources around the process
Low-volume, high-variety production is best undertaken by?
process focused manufacturing and job shop type operations
Which of the following is not an operations decision?
product price
Operations Management techniques that can be used to reduce costs of goods and services include all of the following except
purchasing quantity discounts, even if not all materials are needed since excess inventory is an asset
Which of the following is true?
quality is related to profitability and poor quality results in scrap, rework and equipments downtime as a internal failure cost
In the quest for competitive advantage, which of the following is a JIT requirement?
reduce number of vendors, reduce space for inventory, quality by suppliers, and small number of job classifications
A quick change oil service franchise operation would most likely compete on which of the following dimensions of quality?
responsiveness
What is not a major difference between goods and services
services are always consistent due to heterogeneity
The two internal elements of SWOT analysis are
strengths and weaknesses
In a sampling plan specified by n and c, the value of deviation indicates
the risk of rejecting a good lot
The center of gravity method does NOT take into consideration
the value of goods shipped to the markets of population size
A manufacturer took the following steps to reduce inventory, which one is NOT a JIT action?
they picked the supplier that offered the lowest price based on quantity discounts
Which of the following is not one of the eight competitive priorities?
volume delivery
