Supply Chain Midterm

18. At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%; the expected benefit of selecting machine B is $80,000 with a probability of 50% and the expected benefit of selecting machine C is $60,000 with a probability of 75%? A. Machine A B. Machine B C. Machine C D. You would be indifferent between machines A and C E. You would be indifferent between machines A and

machine c

11. Which of the following is a multifactor measure of productivity? A. Output / (Materials) B. Output / (Labor + Capital + Energy) C. Output / All resources used D.Output / Inputs E.All of these

output/(labor+capital+energy)

16. The capacity focus concept can be put into practice through a mechanism called which of the following? A. Best operating level (BOL) B. Plant within a plant (PWP) C. Total quality management (TQM) D. Capacity utilization rate (CUR) E. Zero-changeover-time (ZXT)

plant within a plant

Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1440 and the required output per day in units is 2000? 0.72 1.388 250 500 Cannot be determined from the information above

.72

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? 0.500 0.650 C. 0.750 0.850 None of these

.750

12. The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio? A. 1.000 B. 1.428 C. 0.700 D.0.411 E.None of these

1.428

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? A. 3 B. 5 C. 6 D. 8 E. None of these

6

3. Operations and supply management changes constantly because of the dynamic nature of competing in global business and the constant evolution of information technology. a) True b) False

True

A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below: Using CPM, which activities make up the critical path? A. A, B, D, F, G B. A, C, E, F, G C. A, C, B, F, E D. A, D, E E. None of these

a

Getting an autograph from a famous person might involve standing in which type of queuing line structure? A. Single channel, single phase B. Single channel, multiphase C. Multichannel, single phase D. Multichannel, multiphase E. None of these

a

Which of the following basic types of process structures is one which equipment or work processes are arranged according to the progressive steps by which the product is made? Project Workcenter Manufacturing cell Assembly line Continuous process

assembly line

5. A simple project listing of five activities and their respective time estimates are presented below: Using CPM, which activities make up the critical path? A. A, C, D, E B. A, B, D, E C. A, C, B, D, E D. A, D, E E. None of these

b

For an activity in a CPM analysis the Early Finish time is 20 and the Late Finish time is 20. Which of the following statements is true? A. The activity's late start must happen before its early start B. The activity is on the critical path C. The slack for this activity is 20 D. The duration of this task is zero E. The duration of this task is 20

b

What is a work breakdown structure? A. A list of the activities making up the higher levels of the project B. A definition of the hierarchy of project tasks, subtasks, and work packages C. A depiction of the activities making up a project D. A Gantt chart E. A structure that is incompatible with the Critical Path Method

b

3. PERT is an abbreviation for which of the following methodologies? A. Product Evaluation, Result, and Treatment B. Programming and Evaluation Realization Technology C. Program Evaluation and Review Technique D. Process Evaluation and Review Technology E. It is a name, not an abbreviation for anything

c

4. You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used? A. Pure Project B. Task force C. Matrix Project D. Functional Project E. PERT

c

Buying a ticket for a college football game where there are multiple windows to buy the ticket at features which type of queuing system line structure? A. Single channel, single phase B. Single channel, multiphase C. Multichannel, single phase D. Multichannel, multiphase E. None of these

c

Using the CPM, which activities have slack in this project? A. A B. B C. C D. D E. C and E

c

15. If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate? A. 0.75 B. 1.00 C. 1.25 D. 1.33 E. 100

c. 1.25

9. A major competitive dimension that forms a company's strategic operational competitive position in their strategic planning is which of the following? A. Cost or price B. Focus C. Automation D. Straddling E. Activity-system mapping

cost or price

. A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below: Using CPM, which activities have slack in this project? A. A, B, C B. B, D C. Only C D. C, E E. F, G

d

Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)? A. 10 days B. 7 days C. 8 days D. 12 days E. 9 days

d

8. Which of the following is not a measure of operations and supply chain management efficiency used by Wall Street? A. Inventory turnover B. Revenue per employee C. Receivable turnover D. Earnings per share E. Asset turnover

earnings per share

13. The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as: A) Economies of scale B) Economies of size C) Economies of shape D) Economies of scope E) Economies of shipping

economies of scope

4. Automobiles and appliances are classified as "pure goods." a) True b) False

false

7. Sustainability is the ability to maintain profits in a system. a) True b) False

false

A make-to-order firm will work with the customer to design the product, and then make it from purchased materials, parts, and components. true or false

false

The closer the customer is to the customer order decoupling point the longer it takes the customer to receive the product. true or false

false

Work center layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements. true or false

false

According to Little's Law, which of the following ratios is used to find throughput rate? Cycle time/Process time Throughput time/Process velocity Process velocity/Throughput time Inventory /Flow time Value added time/Process velocity

inventory/flow time

14. Capacity planning involving acquisition or disposal of fixed assets such as buildings, equipment or facilities is considered as which one of the following planning horizons? A. Intermediate-range B. Long-range C. Short-range D. Current E. Upcoming

long-range

17. The way to build in greater flexibility in your workers is to do which of the following? A. Pay higher wages to motivate a willingness to do a variety to tasks B. Provide a broader range of training D. Provide a wide variety of technology to augment workers skills E. Institute a "pay for skills" program F. Use part-time employees with specialized skills as needed

provide a broader range of training

20. Which of the following is not a way that operations and supply processes are categorized? A. Planning B. Returning C. Delivering D. Selecting E. Making

selecting

19. Which of the following is not a characteristic that distinguishes services from goods? A. Service jobs are unskilled B. A service is intangible C. Services are perishable D. Services are heterogeneous E. None of these

service jobs are unskilled

10. When a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called? A. Operations capability analysis B. Straddling C. Order qualifying D. Order winning E. Inter-functional analysis

straddling

A difference between project and continuous flow categories of process flow structures is which two of the following? The size and bulk of the product Discrete parts moving from workstation to workstation Degree of equipment specialization Being a "Virtual Factory" Profit per unit

the size and bulk of the product

1. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective. a) True b) False

true

2. 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. a) True b) False

true

5. In contrast to careers in finance and marketing, careers in OSCM involve hands-on involvement with people and processes. a) True b) False

true

6. Just in time (JIT) production was a major breakthrough in manufacturing philosophy pioneered by the Japanese. a) True b) False

true

A project layout is characterized by a relatively low number of units produced in comparison with process and product layout formats. true or false

true

Earned Value Management (EVM) has the capability to combine measurements of scope, schedule, and cost in a project. true or false

true

Engineer-to-order firms will work with the customer to design the product, and then make it from purchased materials, parts, and components. true or false

true

In designing a production layout, a flexible line layout might have the shape of a "U". true or false

true

One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous. true or false

true

Poka-Yokes are procedures that block the inevitable mistake from becoming a service defect. true or false

true

The closer the customer is to the customer order decoupling point the more quickly the customer receives the product. true or false

true

The product-process matrix shows the relationship between process structures and product volume and variety characteristics. true or false

true

The term "assembly line" refers to progressive assembly linked by some material handling device. true or false

true

The volume requirements for the product are one determinant of the choice of which process structure to select. true or false

true