opma chap 4 ls, opma ch6 l.s., ch8 learnsmart
Which of the following are reasons for the volatility of demand on a service delivery system?
intangibility customer behavior customer interaction
Spoilage and obsolescence costs are considered what type of relevant cost?
inventory holding costs
Unused inventory that is carried over from the previous period is called?
inventory on hand
The ______ relationship identifies the restrictions imposed by product design and process technologies.
precedence
In a stable workforce-variable work hours plan, one varies the _______ rate by varying the number of _________ worked through flexible schedules and overtime.
production hours
To determine the required workstation cycle time, an analyst needs to know the _______________ _______________ per day and the required _______________ per day (in units).
production time output
Which of the following is not a step in the process to balance an assembly line?
randomly assign tasks to workstations
the calculated theoretical number of workstations should be ____________________.
rounded up to the next highest integer.
An external factor that influences a production plan is?
subcontractor capacity
True or false: Intermediate-range plan activities include forecasting.
t
In a project layout, a high degree of __________ is common.
task ordering
What happens as a plant gets larger and production volume increases?
the average cost per unit of output decreases
In plan 2 of our aggregate production plan, the constant number of workers is calculated by finding _____.
the average number of workers required each day over the horizon
True or false: Capacity can be looked at as both resource inputs and product outputs.
true
True or false: Capacity planning in the services industry has added pressure on location requirements versus that with manufacturing.
true
True or false: Distribution and logistics is typically involved in sales and operations planning.
true
True or false: Manufacturing processes are used to make tangible goods. True false question.
true
True or false: The longest required task time often defines the shortest possible workstation cycle time for production.
true
True or false: The presence of the customer in a service delivery system increases the volatility of demand.
true
True or false: Typically, there is a trade-off where quicker response to customer demand comes at the expense of greater inventory investment. True false question.
true
Which statement is true regarding differences between service and manufacturing organizations?
Manufacturing organizations must plan and hold inventory.
Which process layout is best used for manufacturing liquids?
continous
_____________ is used to avoid expensive shut downs by operating 24 hours a day.
continuous process
Yield management is defined as the process of allocating the right type of capacity to the right type of ___ at the right price and ___ to maximize profit.
customer time
Sales and operations planning typically requires an integrated effort and cooperation from the following:
distribution and logistics finance operations product development sales
Inventory turn is calculated by
dividing cost of goods sold by average inventory value.
True or false: The total work at a workstation is equal to the sum of all tasks to complete a product.
false
True or false: When changing capacity, a firm should ensure the output of one stage provides the exact input for the next stage
false
True or false: When plant production becomes too small, diseconomies of scale may occur.
false
Basic production costs consist of __ and __ costs incurred in producing a given product type in a given time period.
fixed variable
A facility designed around a limited set of production objectives is called a
focused factory
List the steps, from first to last, required to determine capacity requirement.
forecast to predict sales calculate eqpt and labor rqpmts project labor and equipment availabilites
Which of the following contribute to the development of economies of scale
higher capacity equipment typically has lower per unit costs higher production volumes can often be achieved without additional support personnel
Which of the following type of service organization should aim for low utilization because of the high level of uncertainty?
hospitals
The production rate is measured in units of time, such as per _________ or per _________
hour day
The time between successive units coming off the end of an assembly line is referred to as
workstation cycle time
True or false: When the size of a plant becomes too large, diseconomies of scale become a problem.
true
A____ line layout can increase operator access and improve workstation time.
u-shaped
Which of the following is not a way to reduce the required time for a task?
use a less skilled worker
Capacity flexibility is achieved by using
-Flexible processes -Flexible plants -Flexible workers
Long-range planning activities include
-designing the logistics activities that deliver products to the customer. -designing the manufacturing and service processes that produce the products of the firm.
There are _______dimensions depicted on a product-process matrix.
2
Last year a firm had an average inventory of $1,500,000 and the cost of goods sold was $3,750,000. What was the inventory turn last year?
2.5
An assembly line must produce 1,000 units in an 8 hour day. Assuming the line operates continuously, what is the required workstation cycle time?
28.8 seconds (8*60min*60sec)/1000 uts
If the sum of all task times is 100 seconds and the required cycle time is 21 seconds, what is the theoretical minimum number of workstations? Multiple choice question.
5 100/21=4.76=5 round up
Short-range planning covers a period from one day to ___ months.
6
A machine has a best operating level of 1,000 units per day. Yesterday, the machine produced 950 units. What was the capacity utilization rate yesterday
950/1000=95%
A production process map is built by
A production process map is built by
Which of the following is NOT true about a workcenter layout?
A workcenter layout is commonly used for systems with high production volumes.
The cut-and-try approach to aggregate planning may involve which of the following?
Analyzing a number of production planning alternatives Use of spreadsheets and charts Selecting the best alternative
Match the production planning strategies with their definition.Chase StrategyLevel StrategyStable Workforce-Variable work schedule
Chase Strategy - production rate is matched to order rate by hiring and firing employees Level Strategy - maintain a stable workforce and work schedule while using inventory to meet variation in demand Stable workforce - variable work schedule - production output is varied by changing work schedules to include overtime (when more production is needed) and idle time (when less production is needed).
Which if the following actions would be possible in a stable workforce-variable work hours plan?
Having workers take time off to reduce production. Asking workers to work overtime.
Which are characteristics of a continuous process line?
Highly automated machinery is used. Shutdowns can be expensive. May operate 24 hours a day.
Little's law relates inventory, throughput rate, and flow time as
Inventory = Throughput rate x Flow time
Sales and operations planning specifically helps businesses with the following:
Inventory management General management control Customer service and delivery lead times Production rate stabilization
Match the time duration with its definition:
Long range= Greater than 1 yr Intermediate range= The next 6-18 mos Short Range=Less than 1 month
Which of the following are issues that arise in managing yield?
Managing the service process so capacity can quickly be reallocated or added. The customer must feel the pricing structures are logical. Variability in arrival times, starting times, duration, and time between customers.
A chase strategy can create what major concern?
Motivational impacts due to fear of being laid off during time of low production.
Identify the true statements about assembly-line and continuous process layouts.
Often, the item being produced in a continuous process is a liquid or chemical that actually flows through the system. In an assembly line, a product goes through a progressive set of steps. In a continuous process, a product moves continuously through the process.
Rank the production process layouts from lowest- to highest-volume (top to bottom).
Project Workcenter Manufacturing cell Assembly line
What are some temporary measures to correct supply chain system imbalance?
Scheduling employees for overtime. Subcontracting for increased capacity. Leasing equipment to increase throughput.
Which of the following statements about aggregate operations plans is true?
The plan may be derived from the corporate plan The plan is generally stated in aggregate units rather than specifying particular products. The plan may be developed by simulating a number of master production schedules to choose the best option
In operations management, capacity must be stated relative to
a period of time
Workcenters with large amounts of interdepartmental traffic are often placed Multiple choice question.
adjacent to each other
During the sales and operations planning process, both marketing and operations focus on the _______ product and sales volumes.
aggregate
A flexible line layout may improve assembly-line balance by Multiple choice question.
allowing work sharing among employees
Which common layout format refers to the progressive build of a product?
assembly layout
An _______________ _______________ arranges processes according to the sequence of steps by which the product is manufactured.arranges processes according to the sequence of steps by which the product is manufactured.
assembly line
Which layout moves product from workstation to workstation at a controlled rate?
assembly line
Which the following describes the layout for items produced through a fixed sequence of workstations?
assembly line
Which relevant costs are often the most difficult to measure?
backordering: often unobservable or difficult to measure
The output level where average unit cost is minimized is known as the
best operating level
Which of the following are benefits of the sales and operations planning process?
better customer service stabilized production rates lower inventory
Which of the following products would use a project layout?
bridge
Which if the following actions would be possible in a level strategy plan?
building inventory during slow periods
The ability to hold, receive, store, or accommodate describes
capacity
Yield management is the process of allocating which of the following to maximize profit? Multiple choice question.
capacity
_______ is the output that a system is capable of achieving over a period of time.
capacity
capacity in excess of expected demand is known as
capacity cushion
The ability to rapidly increase or decrease production levels, or shift from one product or service to another is known as
capacity flexibility
The equation, Capacity used / Best operating level represents ____________.
capacity utilization rate
A major component of inventory holding costs is often the cost of ____ tied up in inventory.
capital
In production planning, adjusting the production rate by hiring and laying off employees to match the sales forecast is called a
chase strategy
The three production planning strategies are _____.
chase, stable, and level
With which of the following goods would a continuous process be used?
chemicals
A ______ product is one that may help smooth cyclical demand fluctuations.
complementary product
The point in the supply chain where inventory is positioned to allow the preceding processes to operate independently is the
customer order decoupling point.
Aggregation on the demand side is done by groups of
customers
Lead time can vary based on ______.
customization of the product being produced. location of the manufacturing facility.
One simple means of developing aggregate plans, which involves analyzing various alternative plans and selecting the best one, is called __ and
cut and try
When building a decision tree, one should use squares to represent which of the following?
decision points
A schematic model of the sequence of steps in a problem and the conditions and consequences of each step is called a
decision trees
Which of the following is not a step required to make a good?
decoupling
Customer order decoupling points
determine lead times can impact inventory investment
The required workstation cycle time is determined by
dividing the production time per day by the required output per day.
The idea that multiple products can be combined and produced at one facility at a lower cost than they can be produced separately is known as
economies of scope
A firm that works with the customer to design a product but has less control over materials and steps in manufacturing until the product has been designed is known as a(n)
engineer
True or false: Economies of scope can be achieved when a company focuses on a single product.
false
True or false: Service capacity is subject to less volatile demand fluctuations.
false
Basic production costs consist mainly of charges related to
labor
The time required to respond to a customer order is known as
lead time
In production planning, a ___ strategy is executed by maintaining a stable workforce and producing output at a constant rate.
level
The long-term relationship between inventory, throughput, and flow time is mathematically related using _________'s law.
little
Cross-functional teams from which of the following are involved in the sales and operations planning (S&OP) process?
logistics product development marketing
Activities such as designing of manufacturing and service processes or designing logistics activities are part of the ________-range planning process.
long
When product shortages occur, which of the following costs may be incurred?
loss of sales rev expediting costs loss of goodwill
Which of the following are important issues to consider when changing capacity
maintaining system balance frequency of additions or reductions use of external capacity
A map showing the flow of materials through a manufacturing system is known as a _______________-to-_______________ process map.A map showing the flow of materials through a manufacturing system is known as a -to- process map.
make to stock
Firms that service customers from finished goods inventory are known as which of the following
make to stock
The issue of balancing the level of finished inventory against the level of service to the customer occurs in which type of firm? Multiple choice question.
make to stock
Which of the follow is not an operations and supply chain task performed in an intermediate-range plan?
make vs. buy assessment
A _________ layout uses dedicated areas for production of similar products.
manufacturing cell
Which layout format groups machines to work on products that have similar processing requirements?
manufacturing cell
When attempting to balance an assembly-line, the amount of idle time across workstations should be _________________. Multiple choice question.
minimized
If an organization is using overtime, hiring/firing employees, and subcontracting to modify production plans, it is likely deploying which type of production strategy?
mixed
Intermediate-range plans cover a period from 3 to 18 months, and can use increments of time such as
monthly weekly quarterly
Workcenters are often focused on
one type of operation
A computer manufacturer has a large order and decides to purchase extra hard drives that will be required from another company at a lower cost rather than increase their capacity; this is an example of?
outsourcing
What are the two strategies an organization can use when adding in-house capacity is not cost effective?
outsourcing and shared capacity
which of the following contribute to the development of diseconomies of scale
over production to keep equipment busy higher capacity equipment that requires more maintenance support
The capacity utilization rate is expressed as a
percentage
Aggregate plans vary from company to company based on size and need, formal reports generally contain
planning premises that lead to planning objectives.
On an assembly-line, the order in which tasks must be performed is called the __________.
precedence relationship
The aggregate operations plan _______ the master schedule
precedes
Inventory on-hand is the amount of inventory carried over from the_____ period
previous
A production manager may ___________ to prevent bottlenecks and ensure employees always have work to do.
produce buffer inv
Which of the following can be used to operationalize the focused factory concept?
produce buffer inventories
on the supply side of the business, aggregate planning is done by
product families
The aggregate operations plan's objective is to set _____ rates for the intermediate term, from 3 to 18 months
production
The number of units completed per unit of time is called the ___ rate
production
Hiring, training, and laying off personnel are costs associated with
production rate changes
Before investigating alternative production plans, demand forecasts should be converted into
production requirements
The workforce level can be determined by which calculation?
production/production rate
In which production system does the product remain in one place while resources (such as workers or equipment) travel to the product when needed? Multiple choice question.
project layout
________ techniques are typically used to manage production processes that follow a project layout structure.
project managment
When an organization consistently uses a single variable only to modify production plans, such as, hiring/firing employees or building/depleting inventory, it is likely deploying a _____ strategy
pure
The planning process that helps firms provide better customer service, shorter lead times, and allows top management to get a handle on the business is known as ____ planning.
sales and operations
What process gives senior management a better handle on meeting customer demand over a 3 to 18 month time horizon? Multiple choice question.
sales and operations planning
A key issue in operating a yield management system is managing the ___ process.
service
The average number of customers that can be processed over a period of time, when the facility is operating at maximum capacity, is known as the
service rate
Planning for the next week is referred to as
short range capacity management.
Which of the following describes the step where parts are procured from one or more suppliers?
sourcing
Hiring temporary employees is a way to avoid the costs of training and laying off personnel.
true
A common approach to developing an aggregate operations plan is from
the corporate annual plan
Capacity has a time dimensional aspect for operations and supply chain management. A manager must consider capacity planning in how many time durations?
three time durations
When parts are moved on a conveyor that passes a series of workstations in a uniform time interval, this is called the ___________________.
work station cycle time
Which work flow structure is appropriate for a process with great flexibility to produce a variety of products? In a _______________ layout, machines are grouped according to type or function and parts travel to the appropriate location for processing.layout, machines are grouped according to type or function and parts travel to the appropriate location for processing.
workcenter
The number of workers needed to meet production requirements is called?
workforce level
The aggregate operations plan is mainly concerned with optimal
workforce levels production rates
