MAR 3203 Final
Percentage Invested in Inventory
(average inventory investment / total assets) x 100
Service attributes
- reliability - responsiveness - assurance - empathy - tangibles
Process analysis and design tools
1. Identify Opportunities 2. Define the scope 3. Document the process 4. Evaluate performance 5. Redesign the Process 6. Implement changes
Four process strategies
1. Process 2.Repetitive 3.Product 4.Mass customization
Product Focused
A facility organized around products; a product-oriented, high-volume, low-variety process. Continuous processes because they have very long, continuous production runs.
Repetitive Process
A product-oriented production process that uses modules. More structure and less flexibility than process-focused.
Process Focused
A production facility organized around processes to facilitate low-volume, high-variety production.
Which of the following is NOT a valid principle of bottleneck management? A. Increasing the capacity of a non-bottleneck station increases the capacity for the whole system. B. Release work orders to the system at the pace set by the bottleneck's capacity. C. Lost time at the bottleneck represents lost capacity for the whole system. D. Increasing the capacity of a non-bottleneck station is a mirage.
A. Increasing the capacity of a non-bottleneck station increases the capacity for the whole system.
Toyota attempts to have at least two suppliers, each in a different geographical region, for each component to mitigate which type of supply chain risk? A. Natural catastrophes B. Distribution C. Political D. Economic
A. Natural catastrophes
Which of the following statements is TRUE? A. When multiple suppliers are used, having geographically dispersed suppliers could lessen the probability of all failing simultaneously. B. The risk mitigation effectiveness of using multiple suppliers has nothing to do with the probability of a super-event occurring. C. It is usually less risky to use single suppliers rather than multiple suppliers. D. When multiple suppliers are used, having geographically centralized suppliers could lessen the probability of all failing simultaneously.
A. When multiple suppliers are used, having geographically dispersed suppliers could lessen the probability of all failing simultaneously.
Most bank teller services are operated with what kind of system? A. multiple-server, single-phase B. single-server, single-phase C. single-server, multiphase D. multiple-server, multiphase
A. multiple-server, single-phase
Weeks of Supply
Average inventory investment / (Annual cost of goods sold / 52 weeks)
Which of the following is the LEAST likely reason to crash a project? A. A critical path activity is behind schedule B. A non-critical path activity is behind schedule C. The project is behind schedule D. The project completion date has been moved sooner
B. A non-critical path activity is behind schedule
Competing on cost is A. concerned with uniqueness. B. achieving maximum value as perceived by the customer. C. concerned with reliability of scheduling. D. based upon flexibility.
B. achieving maximum value as perceived by the customer.
A strategy is A. a functional area of the firm. B. an action plan to achieve a mission. C. established prior to establishing a mission. D. the purpose for which an organization is established.
B. an action plan to achieve a mission.
A set of skills, talents, and capabilities in which a firm is particularly strong is referred to as A. differentiation B. core competencies. C. key success factors (KSFs). D. experience differentiation.
B. core competencies.
Which of the following activities does NOT belong to the controlling phase of project management? A. shift resources B. define the project C. monitor resources, costs, quality, and budgets D. revise plans
B. define the project
Which of these is a reason why outsourcing continues to expand? A. more expensive transportation B. increased technological expertise and specialization C. less reliable transportation D. rapid development and deployment of advancements in automation
B. increased technological expertise and specialization
Which of the following industries has the highest supply chain cost as a percentage of sales? A. metals B. petroleum C. automobile D. restaurants
B. petroleum
With regard to the cost-based price model negotiation strategy, which of the following is true? A. Prices are based in some way upon market standards agreed to by both supplier and purchaser. B. Prices float based on what the customer is willing to pay. C. Prices are based upon supplier costs. D. Potential suppliers each submit quotations as to price, delivery, and so on.
C. Prices are based upon supplier costs.
Which of the following is NOT true about the bullwhip effect? A. Channel coordination means determining lot sizes as though the full supply chain was one company. B. "Bullwhip" fluctuations create unstable production schedules, resulting in expensive capacity change adjustments. C. The bullwhip effect can occur only when orders increase. D. The bullwhip effect describes the tendency for larger order size fluctuations as orders are relayed to the supply chain from retailers.
C. The bullwhip effect can occur only when orders increase.
Most organizations operate A. above their design capacity. B. at their design capacity. C. below their design capacity. D. below the theory of constraints.
C. below their design capacity.
Competing on differentiation is A. based upon low-cost leadership. B. concerned with reliability of scheduling. C. concerned with uniqueness. D. based upon flexibility.
C. concerned with uniqueness.
The advantage of having few suppliers is to A. look for short-term attributes. B. pursue low cost. C. form a long-term relationship. D. take advantage of diseconomies of scale.
C. form a long-term relationship.
Which of these is NOT an advantage of outsourcing? A. cost savings B. gaining outside expertise C. potential creation of future competition D. accessing outside technology
C. potential creation of future competition
High-volume, low-variety production is best suited for which of the following process strategies? A. mass customization B. process focus C. product focus D. repetitive focus
C. product focus
Core competencies
COMPETITIVE ADVANTAGE A factor that a business see's as a key to their success.
Which of the following hypothetical critical path activities would be most beneficial to crash? A. Crash cost = high, normal time - crash time = high B. Crash cost = low, normal time - crash time = low C. Crash cost = high, normal time - crash time = low D. Crash cost = low, normal time - crash time = high
D. Crash cost = low, normal time - crash time = high
Which of the following strategies helps to smooth utilization of facility, equipment, and personnel? A. Raise prices when capacity exceeds demand. B. Market aggressively when demand exceeds capacity. C. Hire only temporary part-time employees. D. Offer products with complementary demand patterns (e.g., jet skis and snowmobiles).
D. Offer products with complementary demand patterns (e.g., jet skis and snowmobiles).
A large quantity and large variety of products are produced in A. product focus. B. process focus. C. repetitive focus. D. mass customization.
D. mass customization.
Among the following, critical path and slack time analysis MOST help A. point out who is responsible for various activities. B. managers define the project activities. C. highlight relationships among project activities. D. pinpoint activities that need to be closely watched.
D. pinpoint activities that need to be closely watched.
Which of the following is NOT one of the major causes of the bullwhip effect? A. demand forecast errors B. price fluctuations C. order batching D. shared demand information
D. shared demand information
Which of the following is the core competence for Honda? A. sustainable design B. advertising C. product flexibility D. gas-powered engines
D. gas-powered engines
Outsourcing
Hiring another organization to perform service to save costs, gain expertise, free up management time, & refocus on core competencies
Slack Time
Late Start (LS) - Early Start (ES)
Logistics management
Management of the movement and storage of materials at lowest cost while still meeting customer requirements
Percent Change Formula
New - Old / Old
Mass Customization
Rapid, low-cost production that caters to constantly changing unique customer desires.
Six Sigma
a customer focused, well defined problem solving methodology supported by a handful of powerful analytical tools (99.9997% perfection)
Bottleneck Time
a process in a chain of processes, such that its limited capacity reduces the capacity of the whole chain.
Effective Capacity Formula
actual capacity / efficiency
Utilization Rate
actual output / design capacity
Efficiency Rate
actual output / effective capacity
Project manager responsibilities
assigned by the performing organization to lead the team that is responsible for achieving the project objectives
Upside down y (lambda)
average arrival rate
L
average number of units in the whole system
mu
average service rate at each server (channel)
W
average time a unit spends in the whole system
Inventory Turnover
cost of goods sold / average inventory
Supply Chain Management
flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.
Process redesign
focuses on activities that cross functional lines, basic process and its objectives must be reexamined
Multifactor Productivity Formula
output / (labor + materials + overhead)
Primary functions of organizations
planning, organizing, leading, and controlling.
The three phases of project management
planning, scheduling, and controlling
Project crashing
reducing project duration by increasing direct costs Crash cheapest first (crash cost/duration)
Critical path
the computed longest time path(s) through a network.
Bullwhip effect
the variability in demand is magnified as we move from the customer to the producer in the supply chain (moving upstream)
