OM EXAM 1

In an assembly operation at a furniture factory, six employees assembled an average of 450 custom cabinet drawers per 5-day week. What is the labor productivity of this operation? a. 90 chairs per worker per day b. 20 chairs per worker per day c. 15 chairs per worker per day d. 75 chairs per worker per day

15 chairs per worker per day

Which statement on MRP explosion is best? A) It calculates the total number of subassemblies, components, and raw materials needed for each parent item. B) It calculates the total number of raw materials to be purchased from all suppliers. C) It calculates the total number of parts to be produced for each parent item. D) It calculates the total number of parts needed to be produced less the number of parts on hand for each parent item.

A: it calculates the total number of subassemblies, components, and raw materials for each parent item

At the level of the firm, service providers offer just services and manufacturers offer just products.

False

Companies that fully customize their ERP implementation reap the greatest rewards from such systems since they can continue to use the same processes to which all employees are accustomed.

False

Quality is more easily measured in a service process than in a manufacturing process.

False

The supplier relationship process selects the suppliers of services, materials and information, while the order fulfillment process facilitates the timely and efficient flow of these items into the firm.

False

30. An ERP system revolves around a single comprehensive database that is made available across the entire organization.

True

A process involves transforming inputs into outputs.

True

A supply chain is the cumulative work of a firm's processes.

True

As a functional area of a business, Operations translates materials and services into outputs.

True

At the process level, it is much easier to distinguish whether the process is providing a service or manufacturing a product.

True

Manufacturing processes tend to be capital intensive, while service processes tend to be more labor intensive.

True

Manufacturing processes usually have long response times compared to service processes.

True

Operations management refers to the direction and control of inputs that transform processes into products and services.

True

The three main line functions of any business include Operations, Finance and Marketing.

True

The manager of a landscaping company is trying to determine the best crew size to use for laying sod for new construction homes. She has tried various crew sizes, with the results shown below. Based on productivity, which crew size averages the greatest productivity in square yards installed per week? Crew Size 2 4 3 3 4 2 Square Yards Installed Per Week 716 1298 1017 1002 1278 702 a. 2-person crew b. 3-person crew c. 4-person crew d. Either a 3- or 4-person crew can be selected; their productivities are both higher than the 2-person crew .

a: 2-person crew

Use the information provided in Table 1.2. Based on your productivity calculations, what decision should you make? a. implement the new process b. stay with the current process c. need more information to make a decision d. either process is acceptable (since the multi-factor productivities are the same)

a: implement the new process

The first three cars I bought all fell apart around 50,000 miles. It was called planned obsolescence and no one seemed to care until companies entered the market and promised 70,000, then 80,000, and finally 100,000 warranties. What sets a great car apart from a good one now is not the quality, which is assumed, but performance, safety and fuel economy. A car that can achieve all three is highly sought after. In the automotive market, performance, safety and fuel economy are sterling examples of: a. order winners. b. the voice of the engineer. c. order qualifiers. d. the voice of the customer.

a: order winners

A process produces 5000 units of output that yield $6 per unit. Resources contributed to this output are 200 hours of labor at $15 per hour, materials at $700 and overhead at $300. What is the labor productivity? a. 20 units per hour b. 25 units per hour c. 30 units per hour d. 40 units per hour

b: 25 units per hour

Admission to the prestigious school had become so competitive that a high GPA was no longer enough to separate one fresh-faced high school student from another. Today's outstanding candidate must also demonstrate their involvement in a myriad of extracurricular activities in order to be admitted. It seems that good grades are now: a. the voice of the engineer. b. order qualifiers. c. order winners. d. the voice of the customer.

b: order qualifiers

Regardless of how departments like Accounting, Engineering, Finance, and Marketing function in an organization, they are all linked together through: a. management. b. processes. c. customers. d. stakeholders.

b: processes

Operations management is part of a production system that can be described in the following manner: Organization: inputs-processes-outputs. Which one of the following correctly describes a production system? a. Airline: pilots-planes-transportation b. Bank: tellers-computer equipment-deposits c. Furniture manufacturer: wood-sanding-chair d. Telephone company: satellites-cables-communication

c: furniture manufacturer: wood-sanding-chair

Use the information provided in Table 1.2. What is the multi-factor productivity of the current process? a. Less than or equal to 8.0 b. Greater than 8.0 but less than or equal to 10.0 c. Greater than 10.0 but less than or equal to 12.0 d. Greater than 12.0

c: greater than 10 but less than or equal to 12

Using the information in Table 15.7 and the first-come, first-served (FCFS) rule, what is the average days past due? A) fewer than or equal to 6 days B) greater than 6 days but fewer than or equal to 10 days C) greater than 10 days but fewer than or equal to 14 days D) greater than 14 days

c: greater than 10 days but fewer than or equal to 14 days

Using the information in Table 15.7 and the earliest due date (EDD) rule, what is the average days past due? A) fewer than or equal to 5 days B) greater than 5 days but fewer than or equal to 9 days C) greater than 9 days but fewer than or equal to 13 days D) greater than 13 days

c: greater than 9 days but fewer than or equal to 13 days

Which one of the following conditions favors a level strategy for manufacturing firms? A) high availability of workers B) short shelf life of inventory C) highly automated equipment and a make-to-stock strategy D) high inventory-holding cost

c: highly automated equipment and make-to-stock strategy

You are interested in buying a laptop computer. Your list of considerations include the computer's speed in processing data, its weight, screen size, and price. You consider a number of different models, and narrow your list based on speed and monitor screen size, then finally select a model to buy based on its weight and price. In this decision, weight and price are examples of: a. order qualifiers. b. the voice of the supplier. c. order winners. d. the voice of the customer. Answer: c

c: order winners

Companies perform aggregation along the three dimensions of: A) products, labor, customers. B) time, suppliers, services. C) products / services, labor, time. D) time, products, customers.

c: products/ services, labor, time

Which one of the following statements regarding operations management is true? a. Inputs to a production system include capital and materials, but not human resources. b. Operations management deals only with manufacturing organizations because service organizations do not have tangible outputs. c. Typical inputs to a production system are processes and consumer goods. d. Customer participation and information on performance are two special types of inputs to a production system.

d: customer participation and information on performance are two special types of inputs to a production system

Use the information provided in Table 1.2. What is the multi-factor productivity of the new process? a. Less than or equal to 8.0 b. Greater than 8.0 but less than or equal to 10.0 c. Greater than 10.0 but less than or equal to 12.0 d. Greater than 12.0

d: greater than 12

Which of the following is NOT an example of dependent demand items? A) shoelaces, shoes B) wheels, car C) carafes, coffeemakers D) ice skates, roller skates

d: ice skates, roller skates

Which of the following would be considered an advantage of global competition? a. ability to safeguard proprietary technology in working with offshore suppliers b. a recent climate of low political risk and lessening nationalization c. high levels of worker skills in foreign countries mean less required training d. strong global competition and increased worldwide demand

d: strong global competition and increased worldwide demand

25. & 26. Either First Come First Serve or Earliest Due Date (pretty self explanatory)

definitions