Operations Management Exam #2

All processes and functional areas participate in the reengineering efforts of a firm. True or False

True

Customer contact is measured by the percentage of time the customer must be in the service-delivery system relative to the total time it takes to provide the service. True or False

True

In a process design, an activity refers to a group of tasks needed to create and deliver an intermediate or final output. True or False

True

In the context of sourcing, a single supplier often provides economies of scale and the ability to form close partnerships. True or False

True

Location is an important competitive priority in a service business. True or False

True

Supply chain optimization includes minimizing the total costs of manufacturing and transportation, which might consider sourcing, distribution, and placement of inventory throughout the supply chain. True or False

True

Third-party logistics providers can leverage business intelligence and analytics to create efficiencies and economies of scale in the supply chain. True or False

True

In the context of designing manufactured goods, socially responsible designs are the ones that follow the concept of: a. Design for Environment b. Design for Accuracy c. Design for reliability d. Design for manufacturability

a. Design for Environment

Which of the following statements is true of a process map? a. It documents how work either is or should be accomplished. b. It distorts the boundaries of a process. c. Including non-value-added activities in a process map is one of the important responsibilities of operations managers. d. Adding multiple approval requirements for all transactions in a process map is a crucial part in the creation of the process map.

a. It documents how work either is or should be accomplished.

In a process design, a__________is a specific unit of work required to create an output. a. task b. matrix c. portfolio d. value chain

a. task

Fourlotts Corp. provide integrated services that include storing manufactured goods, packaging, and delivering it to the dealers or customers. Given this information, Fourlotts Corp. is most likely a _____. a. third-party logistics provider b. distribution center c. contract manufacturer d. supplier

a. third-party logistics provider

In the context of quality function deployment, building a House of Quality begins by identifying the: a. voice of the customer. b. competitive priorities. c. service provider requirements. d. marketplace dynamics.

a. voice of the customer.

In the context of supply chain design trade-offs, which of the following is true of a push system? a. It works best with variable sales patterns. b. It has an advantage of immediate availability of goods to consumers. c. It works best when there are a large number of distribution centers. d. It is more appropriate for make-to-order items.

b. It has an advantage of immediate availability of goods to consumers.

Jones and Johnson, a law firm, is expanding to incorporate three conference rooms and two executive waiting lounges in its office. Which of the following dimensions of servicescape is the firm addressing? a. Market deployment and evaluation b. Spatial layout and functionality c. Signs, symbols, and artifacts d. Ambient conditions

b. Spatial layout and functionality

At Blyrie Apparels, the apparel stocks in the firm's outlets are changed every week. This is based on the changing fashion preferences of its customers. Its managers also coordinate in real-time among its other stores and satisfy its customers' requirements. In this case, Blyrie Apparels most likely uses _____. a. the push-pull boundary b. a responsive supply chain c. the center-of-gravity method d. an efficient supply chain

b. a responsive supply chain

In the context of the servicescape, in the service-delivery system design, building footprints are examples of: a. ambient conditions. b. signs and symbols. c. artifacts. d. spatial layout and functionality.

d. spatial layout and functionality.

Ambient conditions are the explicit signals that communicate an image about a firm and include examples such as mission statements and diplomas on a wall. True or False

False

An Energy Star dishwasher results in increased release of carbon dioxide to the air. True or False

False

Continuous flow processes are used to create custom goods and services. True or False

False

In the context of intellectual property of multinational enterprises, patents protect services. True or False

False

Service-delivery systems with high customer contact can be treated much like an assembly line. True False

False

The center-of-gravity model increases the weighted distance between the facility to be located and its supply and demand points. True or False

False

The most appropriate match between type of product and type of process occurs as one moves away from the diagonal in the product-process matrix. True or False

False

Utilization is the average time taken to complete one cycle of a process. True or False

False

A manufacturer's average work-in-process inventory for Part #1234 of a particular car model is 1,250 parts. The workstation produces parts at the rate of 150 parts per day. What is the average time a part spends at the workstation? a. More than 8 but less than or equal to 10 days b. More than 4 but less than or equal to 6 days c. More than 10 days d. More than 6 but less than or equal to 8 days

a. More than 8 but less than or equal to 10 days

Which of the following is true of reengineering? a. The goal of reengineering is to achieve quantum leaps in performance. b. The aim of reengineering is to focus on quality by adding multiple approval requirements for all transactions. c. Reengineering decreases throughput by adding process bottlenecks. d. Reengineering increases the number of non-value-added activities in a process design.

a. The goal of reengineering is to achieve quantum leaps in performance.

Mitch is the owner of GameOn, a popular sports bar. He personally trains his servers and then gives them autonomy to make on-the-spot decisions to resolve any customer complaints and issues. This is a form of _____. a. empowerment b. assurance c. flexibility d. service guarantee

a. empowerment

In the context of process design,__________is defined as the ability to produce the right types and amounts of products as customer demand or preferences change. a. flexibility b. utilization c. outsourcing d. throughput

a. flexibility

A difference between efficient supply chains and responsive supply chains is that responsive supply chains _____. a. focus on flexibility and responsive service b. focus on maximizing efficiencies in process flow c. seek to minimize cost of routing products from factory to customers d. seek to balance capacity and demand, resulting in low levels of inventory

a. focus on flexibility and responsive service

In the context of sourcing, multiple suppliers: a. lower the risk of supply disruption. b. often provide economies of scale. c. lower the chances of using a push or pull system. d. often provide the ability to form close partnerships.

a. lower the risk of supply disruption.

For manufactured goods, design blueprints specify a nominal value which is the: a. specified target dimension of the goods. b. range of permissible variation in the target dimension of the goods. c. dimension with the greatest variation from the target dimension. d. dimension with the least manufacturing cost.

a. specified target dimension of the goods.

David runs a bed and breakfast in the outskirts of a big city. His employees are allowed to spend up to $200 to resolve any customer complaints, with no questions asked. This is an example of: a. service guarantee. b. empowerment. c. flexibility. d. assurance.

b. empowerment.

In the context of service-encounter design, high-contact systems would most commonly be found in: a. construction services. b. front office operations. c. distribution systems. d. process designs.

b. front office operations.

Unlike firms that outsource, firms engaged in offshoring: a. manage to reduce travel expenses. b. maintain ownership of the facility in another country. c. are able to enforce intellectual property rights easily. d. have better control on quality.

b. maintain ownership of the facility in another country.

In the context of service-encounter design, giving discounts to employees is a form of _____. a. compensation b. recognition c. guarantee d. assurance

b. recognition

The _____ of the House of Quality shows the interrelationships between any pair of technical features. a. bottom b. roof c. left d. center

b. roof

For manufactured goods, design blueprints specify a target dimension, along with a range of permissible variation called the__________. a. nominal b. tolerance c. leeway d. buffer

b. tolerance

Non-value-added activities in a process design can be eliminated by: a. increasing process boundaries. b. using value stream mapping. c. limiting the throughput of all processes. d. adding multiple approval requirements for all transactions.

b. using value stream mapping.

Which of the following is an advantage of pull systems? a. They reduce transportation costs. b. They forecast changes in customer demand. c. They minimize inventory and production costs. d. They are efficient even when schedules are missed.

c. They minimize inventory and production costs.

Linda is the owner of Souvenirstop, a chain of souvenir shops. One of the shops is located at the City Centre Mall. Though the shop is popular, she does not get many tourists in the City Centre Mall branch. She is considering opening another store near a popular tourist attraction to attract more tourists to her shop. Which of the following elements of service-delivery system design is Linda addressing? a. Service process design b. The servicescape c. Facility location and layout d. The voice of the customer

c. Facility location and layout

An automobile emissions testing center has three inspectors and tests 35 vehicles per hour. What should the service rate be in order to achieve a target utilization of 95 percent? a. More than 5 but less than or equal to 10 vehicles per hour b. More than 15 but less than or equal to 20 vehicles per hour c. More than 10 but less than or equal to 15 vehicles per hour d. More than 1 but less than or equal to 5 vehicles per hour

c. More than 10 but less than or equal to 15 vehicles per hour

A car rental company at a major airport on an average rents 70 percent of its fleet of 200 cars per day. The cars are rented for an average of 4 days. What is the average number of rentals processed per day? a. More than 150 but less than or equal to 200 cars per day b. More than 50 but less than or equal to 100 cars per day c. More than 10 but less than or equal to 50 cars per day d. More than 100 but less than or equal to 150 cars per day

c. More than 10 but less than or equal to 50 cars per day

At which of the following stages are the perceptions of a firm and its goods and services created? a. The customer benefit package configuration stage b. The process design stage c. The service-encounter design stage d. The market introduction and evaluation stage

c. The service-encounter design stage

Which of the following is true of flow shop processes? a. They produce low volumes of custom goods and services. b. They have high setup or changeover time. c. They are organized around a fixed sequence of activities and process steps. d. They are large-scale, customized initiatives with wide variations in tasks.

c. They are organized around a fixed sequence of activities and process steps.

Which of the following is a disadvantage of push systems? a. They are not effective when there are few distribution centers and products. b. They increase transportation costs in a supply chain. c. They result in higher costs when forecasting sales is difficult. d. They are not effective when sales patterns are consistent.

c. They result in higher costs when forecasting sales is difficult.

Which of the following is a difference between flow shops and job shops? a. Unlike flow shops, job shops are organized around a fixed sequence of process steps. b. Unlike flow shops, job shops require little or no setup time. c. Unlike flow shops, job shops require frequent machine changeovers and delays. d. Unlike flow shops, job shops produce many large-volume goods and services.

c. Unlike flow shops, job shops require frequent machine changeovers and delays.

A firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works for end users is called a _____. a. third-party logistics provider b. distribution center c. contract manufacturer d. vendor-managed inventory supplier

c. contract manufacturer

Management strategies to improve process designs of services focus on: a. decreasing process bottlenecks by adding non-value-added activities to a process. b. increasing agility by making service processes mechanistic and controlled. c. increasing product and service quality by reducing defects and service upsets. d. decreasing process costs by adding multiple approval requirements for all transactions.

c. increasing product and service quality by reducing defects and service upsets.

A _____ is the beginning or end of a process. a. process design b. process map c. process boundary d. process bottleneck

c. process boundary

A _____ is a characterization of product growth, maturity, and decline over time. a. value stream map b. product-process matrix c. product life cycle d. service blueprint

c. product life cycle

An automobile emissions testing center has six inspectors and tests 50 vehicles per hour. Each inspector can inspect 12 vehicles per hour. How many inspectors would the center require to have a target utilization of 90 percent? a. Three b. Seven c. Two d. Five

d. Five

An accounting firm is capable of processing 20 income tax forms per day. The average number of forms in various stages of processing at any one time in the firm is 64. What is the average processing time per income tax form? a. More than 5 days b. More than 4 but less than or equal to 5 days c. More than 2 but less than or equal to 3 days d. More than 3 but less than or equal to 4 days

d. More than 3 but less than or equal to 4 days

Which of the following is true of custom goods? a. They are made in anticipation of customer demand. b. They are usually available as they are stocked in inventory. c. They are made according to a fixed design. d. They are produced on demand.

d. They are produced on demand.

In the context of quality function deployment, one of the first steps to build the House of Quality is to: a. evaluate the marketplace. b. conduct prototype testing. c. advertise, market, and offer the product to customers. d. identify the technical features of the design of the product.

d. identify the technical features of the design of the product.

A__________produces only what is needed at upstream stages in the supply chain in response to customer demand signals from downstream stages. a. distribution center b. third-party logistics provider c. push system d. pull system

d. pull system

Greyon Suits, a company that specializes in making hand-made suits, moved its sourcing and operations from Lumeria back to its home country. This led to easier management and decreased carbon footprint. In this case, Greyon Suits is involved in _____. a. outsourcing b. insourcing c. offshoring d. reshoring

d. reshoring

Prior to designing and configuring a customer benefit package, a firm should understand and develop its: a. processes and service encounter design. b. marketplace deployment techniques. c. goods, services, and process design in detail. d. strategic mission and competitive priorities.

d. strategic mission and competitive priorities.