Operations Management

The type of processing system that has high product variety and moderate capital investment is: A. Line B. Continuous production C. Project D. Batch E. Mass production

D. Batch

Market pull is the best way to introduce new products.

False

Mass customization uses a make-to-stock process.

False

McDonald's distinctive competence has changed over time from continuous improvement of the transformation system and brand to the unique service and supply chain transformation system.

False

Most batch and job shop operations have throughput ratios of 90 to 100%.

False

Takt time is the available time for production divided by demand.

False

The Japanese term for waste is "gemba."

False

The first step in Quality Function Development is to determine the customer attributes. The second step in QFD is to translate the customer attributes into target values.

False

With the technology push view of new-product introduction, technology and the market equally determine which products a firm should make.

False

Toyota Production System is another term for a lean system.

True

Which of the following is/are among the factors that appear to influence process selection? A. Capital requirements B. Labor C. Technology D. a, b, and c

D. a, b, and c

An assembly line process requires high labor skills and high pay.

False

As price increases and benefits remain constant, the value of a product increases.

False

Best practices in operations are best for all organizations.

False

External setups refer to actions that require stoppage of the production process.

False

In a batch operation, each product must have the same flow path and must pass through all of the same work centers.

False

Kaizen events typically take between 1 to 2 months.

False

Lean is an example of a pull system while lean thinking is an example of a push system.

False

Preventive maintenance is another term for stabilizing the master schedule.

False

Continuous processes and assembly lines are very efficient but have little flexibility.

True

In a make-to-stock operation, the order penetration point is after fabrication and before final assembly.

False

In an assemble-to-order process, the sub-assemblies are made-to-order, while final assembly is made-to-stock.

False

Job shop operations typically use special-purpose equipment.

False

Process efficiency is usually highest in which type of process? A. Assembly line B. Batch C. Project D. Job shop

A. Assembly line

A _____ operation uses a process layout, while a ______ operation uses a product layout. A. Batch, line B. Line, batch C. Job shop, batch D. Continuous, line

A. Batch, line

A comprehensive decision-making framework for operations includes: A. Consideration of other organizational functions B. Consideration of operations in isolation of other functions C. Suppliers but not customers D. Customers but not suppliers

A. Consideration of other organizational functions

Capacity decisions: A. Include staffing and scheduling B. Include inventory control C. Include defining product specifications D. None of these

A. Include staffing and scheduling

Referring to the product-process matrix, if a company has a few major products with high demand and a jumbled flow (job shop) process, we know the company: A. Has a company strategy B. Is on the diagonal of the matrix C. Is further in its product life cycle than its process life cycle D. Is further in its process life cycle than its product life cycle

C. Is further in its product life cycle than its process life cycle

The type of processing system that is used for complex jobs with a unique or creative set of activities and where automation is virtually impossible is: A. Mass production B. Continuous production C. Project D. Batch

C. Project

Lean thinking can be applied to: A. Manufacturing B. Services C. Functions other than operations D. All of the above

D. All of the above

Supply Chain Strategy focuses, in part, on: A. Purchasing and logistics B. Customers C. Information flow D. All of the above

D. All of the above

The three primary functions that exist in most business organizations are: A. Operations, accounting, and finance B. Operations, production, and finance C. Production, marketing, and human resources D. Operations, finance, and marketing

D. Operations, finance, and marketing

A kanban card is used to signal that: A. The next work center is stopped B. A materials handler has run out of parts C. A machine has broken down D. Parts are needed by the subsequent work center E. A machine is ready for preventive maintenance

D. Parts are needed by the subsequent work center

"Gemba" refers to data collection using the company's information system.

False

"Lean Operations" refers to the task of reducing the defect rates in a firm's products or services.

False

A kanban system cannot be used in service industries.

False

A corporate strategy drives the business strategy, which in turn drives the operations strategy in an organization.

True

Which of the following is NOT a characteristic of a global corporation? A. Facilities and plants are located on a country-by-country basis. B. Global product design and process technology are used. C. Logistics and inventory control systems are global in nature. D. Organized into divisions that have global responsibility for the marketing, R&D, and operations functions.

A. Facilities and plants are located on a country-by-country basis.

Quality Function Deployment: A. Links customer requirements to technical specifications B. Eliminates customer attributes C. Depends only on engineering characteristics D. Assumes that interactions between engineering characteristics are unimportant

A. Links customer requirements to technical specifications

Which of the following functions is responsible for the actual movement of goods and/or services across organizations? A. Logistics B. Operations C. Purchasing D. None of these

A. Logistics

Service level and capacity utilization are performance measures of a _____ process. A. Make-to-stock B. Make-to-order C. Assemble-to-order D. All of the above

A. Make-to-stock

Supplier management in a lean system: A. May require co-location of supplier goods close to plants that receive delivery B. Means and increase in the number of suppliers for each component C. Generally involves short-term relationships with the buyer D. Usually requires additional paperwork, as compared with the non-lean system

A. May require co-location of supplier goods close to plants that receive delivery

Next year's goal is to fill 99% of all orders from stock. This is an example of which of the following? A. Objective B. Mission C. Distinctive competence D. Strategic decision

A. Objective

Which of the following illustrates a distinctive competence? A. Patented technology B. A successful business strategy C. Ten applications for each open position D. Low cost production

A. Patented technology

For production control, lean pull systems are best suited for: A. Repetitive manufacturing B. Job shop production C. Semi-repetitive batch manufacturing D. Unpredictable demand

A. Repetitive manufacturing

Three typical misalignments between product design and operations are: A. Technology, reward systems, and infrastructure B. Technology, process, and design C. Technology, culture, and hierarchy D. None of the above

A. Technology, reward systems, and infrastructure

Why is a uniform load desirable in a lean system? A. To balance the workload on all work centers B. To allow for production of safety stock C. To signal the need for more parts D. To increase the time for scheduled maintenance

A. To balance the workload on all work centers

A large office with a copy department, a drafting department with all of the engineers located together, and all of the managers located together in a large suite of offices is an example of: A. An assembly line process B. A batch process C. A project process D. A continuous process

B. A batch process

The type of processing system that is used for highly standardized products such as oil and gasoline is: A. Mass production B. Continuous process C. Project D. Batch

B. Continuous process

At Disney, "making people happy" is an example of: A. Operations Mission B. Corporate Strategy C. Business Strategy D. Operations Strategy

B. Corporate Strategy

The essence of operations management can be described by: A. Process, capacity, and people B. Decisions, function, and process C. Planning, control, and organization D. Integrated planning and control

B. Decisions, function, and process

A global corporation has which of the following characteristics? A. A separate subsidiary or division for each country where it does business. B. Demand based on a worldwide versus a local basis. C. Products designed for each individual marketplace. D. Both a and c.

B. Demand based on a worldwide versus a local basis.

The market-pull view of new product innovation is to: A. "Pull" the products into the market as fast as possible B. Develop products that the company can sell, based on customer needs C. Market whatever the company makes best D. Make new products appealing through innovative packaging

B. Develop products that the company can sell, based on customer needs

Mass customization makes use of the concept of: A. Economies of scale B. Economies of scope C. Economies of variety D. Economies of customization

B. Economies of scope

The contemporary operations themes signify that: A. More emphasis should be placed on manufacturing than on service industries B. Every operation should be externally directed to meet the customers' requirements C. Operations decisions should precede decisions in other functions in an organization D. To be competitive, strategies for operations should exclude broader supply chain issues

B. Every operation should be externally directed to meet the customers' requirements

An example of a business/industry that uses batch flow and makes to stock is: A. Oil refining B. Machine shop C. Customized paintings D. Hospital

B. Machine shop

A company makes necklaces with attached letters. Department A manufactures the necklace chains and letters ahead of demand. Department B assembles the necklaces for specific names when orders are received. Departments A and B are, respectively: A. Make-to-stock, make-to-stock B. Make-to-stock, assemble-to-order C. Make-to-order, make-to-stock D. Make-to-order, assemble-to-order

B. Make-to-stock, assemble-to-order

Which of the following is not an element of lean? A. Small-lot sizes B. Modularized master schedule C. Multifunction workers D. Kanban pull system E. Perfect or nearly perfect quality

B. Modularized master schedule

A productive systems approach: A. Views operations as a separate organizational function B. Must provide feedback information for control of process inputs and technology C. Is of limited use in service organizations D. Disregards human and social concerns

B. Must provide feedback information for control of process inputs and technology

An example under the capacity area of strategic decisions in operations would be: A. Centralize or decentralized warehouse B. One large or several small facilities C. Handmade or machine-made D. High levels or low levels of inventory

B. One large or several small facilities

Why is operations management a more encompassing term than production management? A. Operations management is concerned with multiple products and services B. Operations management refers to service as well as manufacturing organizations C. Operations management is broader including the financing and marketing functions D. Operations management makes use of the tools of quantitative analysis and computer systems

B. Operations management refers to service as well as manufacturing organizations

Make or buy is an example of what type of strategic decision? A. Inventory B. Process C. Quality D. Capacity

B. Process

The four decision areas in operations management are: A. Planning, technology, inventory, and control B. Process, quality, capacity, and inventory C. Process, quality, technology, and capacity D. None of these

B. Process, quality, capacity, and inventory

In which phase of the new-product design process should considerations about tradeoffs among product cost, quality, and schedule be made? A. Concept development B. Product design C. Preliminary process design D. Pilot production/testing

B. Product design

Which of the following statements about operations objectives is NOT true? A. Focusing attention on improving quality frequently results in lower costs B. Reducing costs often causes improvement in quality C. Each of the operations objectives can be improved nearly simultaneously D. Reducing the time necessary to produce and deliver a product will result in greater flexibility

B. Reducing costs often causes improvement in quality

External setup time refers to: A. The time it takes workers to set up a machine during scheduled maintenance B. The time to complete setup activities that do not require that the machine be stopped C. The time it takes equipment vendors to set up the machine D. None of the above

B. The time to complete setup activities that do not require that the machine be stopped

Supply chain management includes all of the following except: A. Purchasing B. Inventory control C. Advertising D. Customer service

C. Advertising

An example of an industry that produces a few major discrete products and uses a product layout is: A. Commercial printer B. Heavy equipment C. Automotive assembly D. Sugar refinery

C. Automotive assembly

Value analysis: A. Improves the usefulness of the product without increasing the cost B. Reduces the cost of a product without reducing its usefulness C. Both a and b D. None of the above

C. Both a and b

When marketing, engineering, and operations simultaneously develop a product, this approach is known as ________. A. Sequential process B. Traditional approach C. Concurrent engineering D. None of the above

C. Concurrent engineering

The operation objectives of quality, cost, delivery, and flexibility are: A. Mutually exclusive B. Independent of each other C. Connected D. Unique

C. Connected

Reduction of setup time is accomplished by separating internal and external setups and: A. Reducing inventory B. Implementing a kanban system C. Converting internal setup time to external setup time D. Reducing lot sizes

C. Converting internal setup time to external setup time

Which of the following is NOT part of the new-product development process? A. Concept development B. Product design C. Development of the marketing strategy D. Pilot production/testing

C. Development of the marketing strategy

Modular design involves: A. Dividing the production process into separate work units B. Dividing the products into product lines C. Dividing the products into their similar components D. Dividing the products into different cost categories

C. Dividing the products into their similar components

An important lesson from the product-process matrix is: A. Give importance to product choice decisions over process choice decisions B. Give importance to process choice decisions over product choice decisions C. Give importance to aligning product choice decisions and process choice decisions D. Most firms should operate off the diagonal to achieve competitive status

C. Give importance to aligning product choice decisions and process choice decisions

The three major functions of business organizations: A. Are mutually exclusive B. Function independently of each other C. Interface with each other D. Do not interface with each other

C. Interface with each other

The concept that a product should not only fit the market needs but have a technical advantage as well is known as the: A. Market pull approach to new-product introduction B. Technology push approach to new-product introduction C. Interfunctional view to new-product introduction D. Dual approach to new-product introduction

C. Interfunctional view to new-product introduction

Which of the following are the three forms of mass customization: A. Modular production, postponement, and efficient customer response B. Fast changeover, modular production, and make-to-stock C. Modular production, postponement, and fast changeover D. Assemble-to-order, modular production, and value analysis

C. Modular production, postponement, and fast changeover

Mass customization is defined as: A. Producing whatever the customer wants B. Making a small variety of products by use of mass production C. Producing a large variety of products at approximately the same cost as mass production D. Customizing products using economies of scale

C. Producing a large variety of products at approximately the same cost as mass production

Which of the following is not a contemporary theme in operations? A. Globalization of Operations B. Lean Operations C. Quality Teams D. Environmental Concerns and Sustainability

C. Quality Teams

The four common objectives of operations are: A. Quality, delivery, cost, and innovation B. Quality, cost, flexibility, and agility C. Quality, cost, delivery, and flexibility D. Cost, quality, capacity, and flexibility

C. Quality, cost, delivery, and flexibility

One of the main objectives of a lean system is: A. Striving for 'good enough' B. Reduction of takt time C. Reduction of waste D. Define value from the manufacturer's perspective

C. Reduction of waste

The throughput ratio (TR) is the ratio of the total processing time for the job divided by: A. Total waiting time B. Utilization C. Total waiting time plus total processing time D. 100

C. Total waiting time plus total processing time

Quality Function Deployment: A. Is a tool for linking customer requirements to technical specifications B. Facilitates inter-functional cooperation between marketing, engineering, and manufacturing C. Relates engineering characteristics to each other D. All of the above

D. All of the above

Reducing setup time is important because it: A. Increases available capacity B. Increases flexibility to meet schedule changes C. Reduces inventory D. All of the above

D. All of the above

Supply chain management includes the integration of: A. Suppliers B. Manufacturers C. Customers D. All of the above

D. All of the above

Identify the correct statement from the following. A. A batch process is characterized by jumbled flow while an assembly line process is characterized by a sequential flow. B. A project process is characterized by difficult planning and scheduling. C. A job shop process is used to produce to customer order. D. All of the above.

D. All of the above.

Inventory decisions involve: A. Determining what to order, how much to order, and when to order B. Tracking the flow of materials C. Managing the finished goods inventories D. All of these

D. All of these

Design for manufacturing involves: A. Simplification of products B. Development of successive generations of products C. Manufacture of multiple products using common parts, processes, and modules D. Both a and c

D. Both a and c

Lean emphasizes all of the following except: A. Setup time reductions B. Cross training of workers C. Lot size reduction D. Increased utilization of machines

D. Increased utilization of machines

A make-to-order operation would be primarily concerned with: A. Forecasting demand B. Production planning C. Balancing inventory and service D. Lead-time

D. Lead-time

With regards to suppliers, lean systems typically require: A. Delivery of large lots at frequent intervals B. Buyer inspection of goods and materials C. Multiple sources from which to purchase D. Long-term relationships and commitments

D. Long-term relationships and commitments

The four elements that form the heart of operations strategy include: A. Mission, distinctive competence, objectives, and internal analysis B. Mission, distinctive competence, internal analysis, and external analysis C. Mission, objectives, internal analysis, and external analysis D. Mission, distinctive competence, objectives, and strategic decisions

D. Mission, distinctive competence, objectives, and strategic decisions

Which of the following is NOT a characteristic of a distinctive competence? A. Could be based on human resources that are difficult to imitate. B. Could be based on proprietary technology. C. Cannot be copied easily. D. None of the above.

D. None of the above.

In the product imitator strategy, the order winner is usually ____, while in the product innovator strategy, the order winner is usually _____. A. Flexibility, price B. Flexibility, quality C. Quality, price D. Price, flexibility

D. Price, flexibility

The four major decision responsibilities of operations management are: A. Process, quality, capacity, and human resources B. Process, quality, human resources, and inventory C. Quality, inventory, human resources, and capacity D. Process, capacity, quality, and inventory

D. Process, capacity, quality, and inventory

Which of the following is not in the process category of the operations decision framework? A. Layout of the facility B. Job design C. The type of equipment and technology D. Product or service inspection

D. Product or service inspection

Managing quality in a lean system: A. Is easy B. Means that product and service defects are never defined as waste C. Is done by suppliers D. Requires continuously exposing and correcting quality problems

D. Requires continuously exposing and correcting quality problems

Process design: A. Is the way new product ideas are developed B. Is the next stage after product design C. Is considered less important to a company than product design D. Should occur at the same time as product design

D. Should occur at the same time as product design

If a work center has no empty kanban containers, the workers at the work center should do which of the following? A. Continue to produce as much inventory as they can B. Produce enough inventory to meet the following day's demand C. Produce enough inventory to satisfy the master production schedule D. Stop production

D. Stop production

A decision is made that suppliers will be chosen based on quality rather than cost. This is an example of which of the following? A. Objective B. Mission C. Distinctive Competence D. Strategic decision

D. Strategic decision

The supply chain extends from: A. Supplier to manufacturing B. Supplier to supplier C. Dealer to customer D. Supplier to customer

D. Supplier to customer

An example of a prototype is: A. A military aircraft B. The personal computer C. A Broadway play D. The original McDonald's restaurant

D. The original McDonald's restaurant

According to the lean philosophy, a stable master production schedule is desirable to reduce the work-in-process inventories.

True

Imitative products have low profit margins and fairly predictable demand.

True

In an assemble-to-order operation, the order penetration point is after fabrication and before final assembly.

True

Misalignments between operations and product design can occur in technology, infrastructure, and rewards systems.

True

Mixing a variety of products with different volumes and different levels of standardization leads to a lack of focus.

True

Modular design offers new opportunities for product and process design.

True

One of the keys to reducing inventory is reducing lead-time.

True

One of the major benefits of concurrent engineering is the reduction in time to complete the new-product development process.

True

Product design supports the business strategy.

True

The business strategy can be derived from a firm's distinctive competence that is difficult for competitors to copy or imitate.

True

The key performance measure of a make-to-order process is the lead-time.

True

The process view provides a basis for viewing an entire business as a system of interconnected processes.

True

The transformation view of the Operations function provides a unified approach for studying the manufacturing and service industries.

True

Value stream maps are similar to flowcharts and are used for identifying the waste and non-value-added steps in the current process.

True

With lean thinking, a firm's operations layout should evolve to a cellular manufacturing layout.

True