Operations and Supply Chain Management

Supply networks cannot be constructed for every product or service

False

The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete.

False

The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.

False

A process map shows the physical location of the various processes within a supply chain.

False.

In a practical sense, an infinite queue is one that includes every possible member of the served population.

False. An infinite population is large enough in relation to the service system so that the change in population size caused by subtractions or additions to the population does not significantly affect the system probabilities.

Pricing for a service should primarily relate to the cost of providing the service and has little to do with capacity issues the service provider might face

False. Costs should also relate to addressing specific capacity problems

Is it critical that a sustainable strategy meet the needs of shareholders and employees. It is also highly desirable that it preserves the environment.

False. It is critical that they preserve the environment, not desirable.

Effective management of services required a clear focus on understanding operations, so much so, that it may even require the exclusion of consideration of marketing or personnel

False. It is difficult to separate the operations management functions from marketing in services.

In a multifactor of productivity the numerator of the ratio would include all resources used or all inputs.

False. It would use a group of inputs.

The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio is called flexibility.

False. It's called straddling.

Little's Law states that supply chain processes can be regarded as unrelated and thus treated and analyzed separately.

False. Little's Law is a relationship between units and time

Process selection refers to the strategic decision of choosing the volume of output to produce in a manufacturing facility depending upon the way that facility produces.

False. Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.

The second step in managing a project is writing the Statement of Work.

False. The Statement of Work is the first step in managing a project.

Aggregate Planning Techniques is developed from the master schedule and the strategic capacity plan.

False. The aggregate plan precedes the master schedule.

The valuations in an Earned Value Management analysis must be either profits or revenue.

False. The measure could be either value or cost measurements.

The sales and operations planning process is made up of a variety of analytical techniques that interact to produce short and intermediate term goals.

False. The sales and operations planning process consists of a series of meetings, finishing with a high-level meeting where key intermediate-term decisions are made

An input to the material requirements planning (MRP) system is an exception report

False. The three inputs are BOM, the master schedule, and the inventory records file).

Subcontracting is viewed as a risky strategy because the firm may lose control of product design and pricing.

False. They could lose control over schedule and quality.

Activity-system maps depict the geographic reach of a company's business strategies

False. They have nothing to do with geographic location

The time-phased plan specifying how many and when the firm plans to build each end item is called the Materials Requirements Plan (MRP.)

False. This the the master production schedule (MPS)

Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position?

Management Acumen. These are major strategic operational competitive dimensions: cost or price, delivery speed, delivery reliability, and coping with changes in demand.

If all you knew about a production system was that the total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, what kind of productivity measure could you use to compute productivity?

Partial measure

What is meant by the term "operations effectiveness?"

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

In an overview of the major operations planning activities in a typical organization, which of the following activities precedes aggregate sales and operations planning?

Process planning

Operations and supply strategy can be viewed as part of a planning process that coordinates operational goals with those of a larger organization

True

The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand.

True

The master production schedule states the number of items to be produced during specific time periods.

True

The term "electronic commerce" refers to the use of the internet as an essential element of business activity

True

Yield management is the process of allocating the right type of capacity to the right type of customer at the right prices at the right time to maximize revenue or yield.

True

In the service-system design matrix, an internet and on-site technology service encounter is expected to have which of the following?

High production efficiency

Which of the following are alternative possible service encounters include in the Service-System Design Matrix?

Mail contact

Earned Value Management is a technique for measuring project progress in an objective manner.

True

Just in time inventory was a major breakthrough in manufacturing philosophy pioneered by the Japanese

True

Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services

True

Services are intangible processes that cannot be weighed or measured

True

Which of the following is a partial measure of productivity?

Output / materials

Which of the following is considered a primary report in an MRP system?

Planned order scheduling

You have just determined the actual number of workstations that will be used on an assembly line to be 8 using the assembly-line balancing procedure. The cycle time of the line is 10 minutes and the sum of all that tasks required on the line is 60 minutes. Which of the following is the correct value for the resulting line's efficiency?

0.750. 60 / (8 * 10) = 0.75

Which of the following industry types have high expected benefits from the application of MRP?

Assemble-to-order

Which of the following industry types have high expected benefits from the application of MRP?

Assemble-to-stock

A bank branch manager is not an OSCM-type of job

False

A work breakdown structure is used in project management but it is not used when the critical path method is involved.

False

Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7, 4, 7, 8, 9, 4, 3, and 6 minutes, and the cycle time is 8 minutes?

(7 + 4 + 7 + 8 + 9 + 4 + 3 + 6) / 8 = 6

You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure. The cycle time of the line is 5 minutes and the sum of all that tasks required on the line is 25 minutes. Which of the following is the correct value for the resulting line's efficiency?

25 / (6 * 5) = 0.833

Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600?

70 (670 - 600)

Which of the following is not a suggestion for managing queues presented in the textbook?

Determine an acceptable waiting time for your customers

You are looking at a chart that has the terms BCWS, BCWP, and AC indicating lines on the chart. What kind of chart are you looking at?

EVM chart

ERP stands for

Enterprise resource planning - a data base of that ties together all application programs in a firm

Decisions that relate to the design of the process and the infrastructure needed to support these processes relate to which OSCM concept?

Integrating operations and supply chain strategy with a firm's operational capabilities

Which of the following is an alternative possible service encounter included in the service-system design matrix?

Internet

According to Little's Law, which of the following ratios is used to find throughput rate?

Inventory / Flow Time

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal?

Least total cost

In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following?

Low production efficiency

Roller coaster ride is what kind of queuing line structure?

Single channel, single phase

When balancing an assembly line, which of the following is not a way to reduce the longest task time below the required workstation cycle time?

Speed up the assembly line transfer mechanism

Which of the following is considered a "pure" production planning strategy?

Stable workforce, variable work hours

There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes?

Task. The other two are Tangible and Treatment

The economic order quantity (EOQ) lot sizing technique uses the "square root formula" to balance setup cost, carrying cost and cost of stock-outs.

The EOQ model balances setup and holding costs

The lot-for-lot (L4L) lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations

The L4L technique: sets planned orders to exactly match the net requirements, produces exactly what is needed each week with non carried over into future periods, minimizes carrying costs, and does not take into account setup costs or capacity limitations

Which of the following is an input to the master production schedule (MPS)?

The aggregate plan

From an operational perspective yield management is least effective under which of the following circumstances?

The product can be kept to be sold when demand is stronger

In essence, a queuing system includes several major components. Which of the following is not one of them?

The queue discipline

Which of the following are the three major components of a queuing system?

The source population and the way customers arrive at the system, the serving systems, and how customer exit the system

In an overview of the major operations planning activities in a typical service organization, which of the following activities follows aggregate sales and operations planning?

Workforce scheduling

One trade-off illustrated by the product-process matrix is between flexibility and cost.

True

A matrix project is often referred to as "sunkworks."

True

A process can be effective without being efficient

True

Assembling-to-order means moving the customer order decoupling point from finished goods to components.

True

In services, once the aggregate staffing level is determined, the focus is on short-term workforce and customer scheduling.

True

Longest wait time in line is a queue discipline discussed in the textbook

True

One of the advantages of a functional project structure is that a team member can work on several projects.

True