OPRE 3310 Exam 1 (Quiz 1-3 & Review)
37. Managing the supply chain has become more important as a result of firms increasing their levels of: a. Overtime b. Outsourcing c. Marketing d. Promotions e. Shipping
b. Outsourcing
7. Analysis of time-series data requires the analyst to identify the underlying behavior of the series. This can often be accomplished simply by merely; a. Using Excel spreadsheet analysis b. Plotting the data and visually examining the plot c. Collecting data and conducting pareto analysis d. Ascertaining degree of variation and amount of randomness e. None of the above
b. Plotting the data and visually examining the plot
13. The ratio of good output to quantity of raw material input is called a. Non-defective productivity b. Process yield c. Worker quality measurement d. Total quality productivity e. Quantity/quality ratio
b. Process yield
5. Executive opinions, salesforce opinions, consumer surveys and the Delphi method are all examples of; a. Quantitative forecasting b. Qualitative forecasting c. Time-series forecasts d. Associative models e. Trend and Cycles forecasting
b. Qualitative forecasting
6. Two factors that tend to have universal strategic operations importance are: a. Cost and value b. Quality and time c. Cost and return on assets d. Order fulfillment and on time delivery e. Speed to market and on time shipment
b. Quality and time
1. The two Line functions in a business organization are: a. Sales and Marketing b. Operations and Sales c. Operations and Finance d. Finance and Sales e. Accounting and IT
Operations & Sales
26. The President of State University wants to forecast student enrollments for this academic year based on the following historical data. What is the forecast for 2016 using a four-year simple moving average? Year Enrollments 2011 15,000 2012 16,000 2013 18,000 2014 20,000 2015 21,000 a. 18,750 b. 19,500 c. 21,000 d. 22,650 e. 22,800
a. 18,750
8. Which is not an area of significant difference between manufacturing and service operations? a. Cost per unit b. Uniformity of output c. Labor content of jobs d. Customer contact e. Measurement of productivity
a. Cost per unit
3. 3. The essence of operations management is to add Value during the transformation process. Value-added is the term used to describe; a. Difference between the cost of inputs and the value or price of outputs b. Difference between function and value c. Difference between value perceived by customer and price customer had to pay d. Function over value e. Value over function
a. Difference between the cost of inputs and the value or price of outputs
2. What two aspects of Forecasts are most important? a. Expected level of demand and degree of accuracy b. Supply and Demand c. Anticipated cost and amount of time to collect data d. Time period horizon and amount of variation e. Degree of nervousness and amount of uncertainty
a. Expected level of demand and degree of accuracy
6. A linear trend equation where a is the value of F(t) at t = o and b is the slope of the line has the form of; a. F(t) = a + bt b. F(t) = 2b + at c. F(t) = ab + bt d. F(t) = at + bt e. F(t) = a + b
a. F(t) = a + bt
31. One way to increase reliability is to; a. Improve component design b. Increase mean repair time c. Increase the number of service stations d. Increase the number of components e. Reduce production capacity
a. Improve component design
9. A key aspect of Operations Management is Process Management. The basic flow chart for any business process is; a. Input > transformation > ouput b. Demand > sales > delivery c. Order > build > ship d. Return > remanufacture > ship again e. Accept > ship > install
a. Input > transformation > ouput
40. Accuracy in forecasting can be measured by; a. MSE b. MRP c. MPS d. MTM e. MTE
a. MSE
38. Which of the following is least likely to affect the cost an organization incurs in producing its products or services? a. Price b. Productivity c. Location d. Quality e. Inventory management
a. Price
3. The two internal measures when using a SWOT analysis for environmental scanning are; a. Strengths and weaknesses b. Opportunities and threats c. Products and services d. Quality and order fulfillment e. Shipping and receiving
a. Strengths and weaknesses
4. Business organizations consist of three major functions which, ideally: a. Support one another b. Are mutually exclusive c. Exist independently of each other d. Function independently of each other e. Do not interface with each other
a. Support one another
16. The weekly output of a fabrication process is shown below, together with data for labor and material inputs. Standard selling price is $125 per unit. Overhead is charged weekly at the rate of $1,500 plus .5 times direct labor cost. Assume a 40-hour week and an hourly wage of $16. Material cost is $10 per foot. What is the average multifactor productivity? Wk-Output-#Workers-Material 1 - 392 - 5 - 2720 2 - 408 - 6 - 2790 a. 1.463 b. 1.457 c. 1.431
b. 1.457
25. Given forecast errors of 5, 0, -4 and 3, what is the mean absolute deviation? a. 4 b. 3 c. 2.5 d. 2 e. 0 (Sum the forecast errors and divide the total by the mean absolute deviation. The mean absolute deviation is the sum of the absolute deviations divided by the number of observations.)
b. 3
39. Which of the following is not a step in the forecasting process? a. Determine the purpose and level of detail required b. Eliminate all assumptions c. Establish a time horizon d. Select a forecasting model e. Monitor the forecast
b. Eliminate all assumptions
10. Which of the following is not among the chief reasons organizations fail? a. Overemphasis on short-term performance b. Emphasizing labor productivity in labor-intensive environments c. Poor internal communications d. Not investing in capital and human resources e. Overemphasis on product or service design
b. Emphasizing labor productivity in labor-intensive environments
30. What is the primary focus of Value Analysis for cost reduction and/or improvement of the performance of the product? a. Engineering b. Function c. Competition d. Service e. Assembly
b. Function
33. Excitement characteristics are categories in the ________ model. a. Bipolar b. Kano c. Pareto d. Quality e. Service matrix
b. Kano
2. The three primary business strategies are; a. Cost, quality and cycle time b. Low cost, responsiveness and differentiation from competitors c. Price, price, price d. Customer satisfaction, on time shipment, no returns e. Competiveness, strategy and productivity
b. Low cost, responsiveness and differentiation from competitors
5. The central role of all management is process management. Process variation occurs in all business processes. Two widely used metrics that deal with process variation are; a. Random and assignable variation b. Mean and standard deviation c. Cost of inputs and cost of outputs d. Product mix and volume e. Variety and Flexibility
b. Mean and standard deviation
1. Managing the supply chain has become more important as a result of firms increasing their levels of: a. Overtime b. Outsourcing c. Marketing d. Promotions e. Shipping
b. Outsourcing
4. Process Yield is a useful measure closely related to Productivity. Where products are involved, Process Yield, is defined as the; a. Difference in output and input b. Ration of output of good product to the quantity of raw material input c. Ration of defective products to overall quality d. Difference between products shipped and products inspected e. Difference in orders shipped and orders not shipped
b. Ration of output of good product to the quantity of raw material input
15. In an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per five-day week. What is the labor productivity of this operation? a. 90 chairs/worker/day b. 20 chairs/worker/day c. 15 chairs/worker/day d. 75 chairs/worker/day e. 60 chairs/worker/day
c. 15 chairs/worker/day
1. A project job had been forecast to take 12 months and an estimated 41,600 man hours of work. How many persons working one shift would be needed to complete this project? a. 5 b. 10 c. 20 d. 25 e. 30
c. 20
2. Production of Goods results in a tangible output. Delivery of a Service generally implies an act. Production of Services results in; a. Acts of professional services b. Non-manufactured goods c. Both tangible and intangible outputs d. Shipping and delivery e. Transportation and logistics
c. Both tangible and intangible outputs
34. In the area of product and service design, the acronym CAD refers to: a. Conceptually appropriate design b. Commercial application design c. Computer-aided design d. Competitive advantage design e. Completely automated design
c. Computer-aided design
7. A standard of behavior that guides how one should act in various situations is called; a. Management b. Leadership c. Ethics d. Operations e. Responsibility
c. Ethics
3. Operations management involves continuous decision making; hopefully, most decisions made will be: a. Redundant b. Minor in nature c. Informed d. Quantitative e. Qualitative
c. Informed
36. Knowledge about challenges specific to the operations function can help marketing personnel to judge how __________________________ new product designs will be. a. Marketable b. Segmentable c. Manufacturable d. Measurable e. Nameable
c. Manufacturable
18. Which of the following factors would tend to reduce productivity? a. Improvements in workplace safety b. Reductions in labor turnover c. More inexperienced workers d. Reductions in scrap rate e. Less variety in the product mix
c. More inexperienced workers
9. Farming is an example of: a. An obsolete activity b. A virtual organization c. Non-manufactured goods d. A growth industry e. Customized manufacturing
c. Non-manufactured goods
19. The external elements of SWOT analysis are: a. Strengths and weaknesses b. Strengths and threats c. Opportunities and threats d. Weaknesses and opportunities e. Strengths and opportunities
c. Opportunities and threats
17. Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage. Now, all firms must offer this capability simply to be in this line of business. This is an example of ______________ becoming ____________ over time. a. Tactical implications; strategic b. Strategic implications; tactical c. Order winners: order qualifiers d. Profitability factors; productivity factors e. Order qualifiers; order winners
c. Order winners: order qualifiers
5. Productivity is an index that measures; a. Input/output b. Input/rejects c. Output/input d. Rejects/input e. Shipments/rejects
c. Output/input
6. The 80/20 rule states that, for many events, roughly 80% of the effects come from 20% of the causes and is widely used in establishing priorities. The 80/20 rule is also known as the; a. Da Vinci principle b. Vernoulli principle c. Pareto principle d. Scientific management e. Statistical process control
c. Pareto principle
28. Which one of the following is not one of the three R's of sustainability? a. Reuse b. Reduce c. Reposition d. Recycle
c. Reposition
22. Which phrase most closely describes the Delphi technique? a. Associative forecast b. Consumer survey c. Series of questionnaires d. Developed in India e. Historical data
c. Series of questionnaires
4. The sequence of organizations, their facilities, functions and activities, that are involved in producing and delivering a product or service is called; a. Transportation and logistics b. Shipping and delivery c. Supply chain d. Operations management
c. Supply chain
7. Product design and process selection are examples of _______ decisions. a. Financial b. Tactical c. System design d. System operation e. forecasting
c. System design
2. Technology choices seldom affect: a. Costs b. Productivity c. Union activity d. Quality e. flexibility
c. Union activity
20. Suppose a three-period weighted average is being used to forecast demand. Weights for the periods are as follows: wt-3 = 0.2, wt-2 = 0.3 and wt-1 = 0.5. Demand observed in the previous three periods was as follows: At-3 = 2,200, At-2 = 1,950, At-1 = 2,050. What will be the demand forecast for period t? a. 2,000 b. 2,095 c. 1,980 d. 2,050 e. 1,875
d. 2,050
1. What is the labor productivity for a company that produces 400 cases canned peaches in one-half hour with 4 workers. a. 50 cases/hour b. 100 cases/hour c. 150 cases/hour d. 200 cases/hour e. 250 cases/hour
d. 200 cases/hour
23. For the data given below, what would be the naïve forecast for period 5? Period Demand 1 48 2 49 3 50 4 51 a. 58 b. 52 (*answer is 52, when data shows a trend) c. 49.5 d. 51 (answer is same as last period, if data does not show a trend) e. 53
d. 51 (answer is same as last period, if data does not show a trend)
24. Given an actual demand of 59, a previous forecast of 64, and an alpha of .3, what would be the forecast for the next period using simple exponential smoothing? a. 36.9 b. 57.5 c. 60.5 d. 62.5 e. 65.5
d. 62.5
4. Supply Chain forecast accuracy can be improved through collaboration and information sharing among business partners. One of the best ways to improve demand and supply communication is through; a. MAD b. MSE c. MAPE d. CPFR e. SPC
d. CPFR
29. Which one is an example of a postponement technique? a. Mass customization b. Standardization c. Process mapping d. Delayed differentiation e. Service blueprinting
d. Delayed differentiation
6. Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function. a. Operation b. Marketing c. Purchasing d. Finance e. Internal audit
d. Finance
7. The hierarchy of organizational Strategies and Tactics moving left to right in top down descending order or flowing left to right looks like; a. Operating procedures > tactics > functional goals > organizational strategies > organizational goals > mission b. Tactics > organizational goals > functional strategies > organizational plans > mission c. Mission > organizational strategies > functional tactics > functional goals > plans d. Mission > organizational goals > organizationalstrategies > functional goals > tactics > operating procedures e. Operating procedures > organizational goals > organizational strategies > tactics > mission
d. Mission > organizational goals > organizationalstrategies > functional goals > tactics > operating procedures
12. Productivity is expressed as: a. Output plus input b. Output minus input c. Output times input d. Output divided by input e. Input divided by output
d. Output divided by input
32. Which of the following is not an advantage of standardization? a. Fewer parts to deal with in inventory b. Reduced training cost and time c. Purchasing is more routine d. The opportunity to freeze design at a very early stage e. Inventory management is less complex
d. The opportunity to freeze design at a very early stage
11. Which of these factors would be least likely to affect productivity? a. Methods and technology b. Workers c. Management d. Product mix e. Advertising
e. Advertising
10. Frederick Taylor is known as the "father of scientific management." His methods emphasized maximizing output. His methods were based on observation, measurement, analysis and improvement of work methods, and economic incentives, and led to the following practice/s; a. Management should be responsible for planning b. Workers should be carefully selected and trained c. Management should find the best way to perform a job d. Cooperation should be achieved between workers and management, separating management and worker activities e. All of the above
e. All of the above
3. Inaccurate forecasts for the Supply Chain can lead to; a. Shortages and excesses b. Missed deliveries c. Work disruptions d. Poor customer service e. All of the above
e. All of the above
8. The Scope of Operations Management includes; a. Forecasting, capacity planning and scheduling b. Facilities location and layout c. Managing inventories and quality assurance d. Motivating and training employees e. All of the above
e. All of the above
27. Which is least likely to result in product innovations that have near-term commercial application? a. Process blueprinting b. Development c. Applied research d. Quality function deployment e. Basic research
e. Basic research
21. When choosing a forecasting technique, a critical trade-off that must be considered is that between: a. Time series and associative b. Seasonality and cyclicality c. Simplicity and complexity d. Length and duration e. Cost and accuracy
e. Cost and accuracy
35. The assessment of the environmental impact of a product or service throughout its useful life is called; a. Flow diagramming b. Service blueprinting c. Quality function deployment d. Process mapping e. Cradle-to-grave assessment
e. Cradle-to-grave assessment
14. Time-based approaches of business organizations focus on reducing the time to accomplish certain necessary activities. Time reductions seldom apply to: a. Product/service design time b. Processing time c. Delivery time d. Response time for complaints e. Internal audits
e. Internal audits
5. In addition to operations, which of the following is considered a "line" function? a. Accounting b. Finance c. IT d. Procurement e. Sales
e. Sales