C720 - Mulitple Choice
Using a bottle of water as the example. 1 = Actual output is the point at the top of the bottle that begins to taper up toward the cap. 2 = Effective Capacity is the area of the bottle located between level one and the bottle cap. 3 = Design Capacity is the cap. Which capacity level is the actual amount produced.
1 = Actual output
Using a bottle of water as the example. 1. The first level is the point at the top of the bottle that begins to taper up toward the cap. 2. The second level is the area of the bottle located between level one and the bottle cap. 3. The third level is the cap. Match levels to the capacity: design capacity effective capacity actual output
1 = Actual output 2 = Effective Capacity 3 = Design Capacity
Using a bottle of water as the example. 1 = Actual output is the point at the top of the bottle that begins to taper up toward the cap. 2 = Effective Capacity is the area of the bottle located between level one and the bottle cap. 3 = Design Capacity is the cap. Which capacity level is a realistic estimate of output, less than design capacity
2 = Effective Capacity
Using a bottle of water as the example. 1 = Actual output is the point at the top of the bottle that begins to taper up toward the cap. 2 = Effective Capacity is the area of the bottle located between level one and the bottle cap. 3 = Design Capacity is the cap. Which capacity level is the maximum designed output rate for a system?
3 = Design Capacity
A small civil engineering firm has decided to invest in a Bobcat tractor to assist in clearing land and preparing the ground for its projects. The effect on society of the new tractor is that it will A. benefit because more work is completed with less resources. b. suffer because workers will be displaced c. suffer because the standard of living will go down
A. benefit because more work is completed with less resources.
Which of the following would be an external measurement of quality? A. customer satisfaction B. increased costs of product production C. customer feedback and complaints D. product defect percentage
A. customer satisfaction
AthleticQuest Shoes needs upstream and downstream partners that can respond quickly to changing exercise trends and customer styles. Which of the following would best meet AthleticQuest's need? Insourcing Outsourcing Agile supply chain Lean supply chain
Agile supply chain
Many constraints affect the forecast that companies make for the upcoming season. Constraints are evaluated during which of the five stages of forecast development. Revise the forecast Develop the model Determine objectives Apply the model
Apply the model
Flexibility in operations is best described as: A. new procedures to meet international regulations. B. policies that reduce the need for job re-training. C. the ability to modify production from one product to another in response to customer demands with minimal costs and delays. D. responding to technology threats as soon as possible.
C. the ability to modify production from one product to another in response to customer demands with minimal costs and delays.
What type of decision making can result in more cross-functional teams? Random Algorithmic Decentralized Centralized
Decentralized
Is the following a characteristic of a fast food or Four-star restaurant. Having a large selection on the menu.
Four-star
Which key process within an organization obtains customers' orders, enters them into the organization's information system, and finally delivers the order to satisfy customers? Inventory management Order fulfillment Purchasing
Order fulfillment
The technician attends a training class and learns some tips for preventive maintenance. He is now able to complete preventive maintenance on four machines in an eight-hour day. His percent change in productivity is 30% 50% 33.3%
Post training, the technician's productivity is 4 / 8, or 50%. The formula to determine the percent change in productivity is (new productivity - old productivity) / old productivity, or in this case, (50% - 37.5%) / 37.5% = 33.3% 33.3%
In an effort to obtain its ISO standard certification, XYZ Consulting has arranged its structure so that its consultants specialize in specific areas of activity such as strategic planning, product development and supply chain management. XYZ's organizational structure would be classified as which of the following? Process Centralized Product Functional
Process
Based on providing preventive maintenance to three espresso machines per day, this technician's rate of productivity is 3% 267% 37.5% 8%
Productivity = output / input. In this scenario, the input is eight hours, and the output is three machines or 37.5%. 37.5%
Which of the following explains the shift in the nature of work, from manufacturing to service-based work? First Revolution Second Revolution Third Revolution
Second Revolution
The Plan-Do-Act-Check cycle is known as the Deming Wheel or the _____________. Juran Open Circle Quality Circle Shewhart cycle 14 point plan
Shewhart cycle
Functional silos that do not allow for sharing of information exist in what type of organization? Traditional Agile Process Decentralized
Traditional
What issue has impacted the need for global logistics? a. Expansion in global competition and trade b. Extended product life cycles c. Increased times for return on investment
a. Expansion in global competition and trade
Increases in farming productivity resulting from the development of better methods and machinery have caused farm labor in the United States to decline from 95% in the early 1800s to less than 3% today. a. First Revolution b. Second Revolution c. Third Revolution
a. First Revolution
The work week was reduced to only 40 hours per week. a. First Revolution b. Second Revolution c. Third Revolution
a. First Revolution
Which qualitative factors are considered when making manufacturing location decisions? a. Labor climate, quality of life, proximity to customers and markets, proximity to suppliers and resources. b. Government incentives, labor climate, and proximity to suppliers and resources. c. Labor costs, materials costs, transportation costs, utilities, taxes, real estate costs, construction costs and government incentives.
a. Labor climate, quality of life, proximity to customers and markets, proximity to suppliers and resources.
Which quantitative factors are considered when making manufacturing location decisions? a. Labor costs, materials costs, transportation, utilities, taxes, real estate and construction costs and government incentives. b. Labor climate, quality of life, proximity to customer and markets, and proximity to suppliers and resources. c. Labor costs and labor climate.
a. Labor costs, materials costs, transportation, utilities, taxes, real estate and construction costs and government incentives.
When McDonald's started offering specialty coffee drinks, it was hoping to increase its market share in its industry. What is the definition of market share? a. Market share is a company's sales divided by the sales of all companies in its industry. b. Market share is defined as the number of products a company offers divided by all the products in an industry. c. The percentage of store locations a company operates in an entire market constitutes its market share. d. The competitive advantage a company possesses is its market share.
a. Market share is a company's sales divided by the sales of all companies in its industry.
The growth of F. W. Woolworths & Company's five- and ten-cent stores occurred as a result of productivity changes attributed to the __________. a. Second Revolution b. retail sector c. rise of computers d. First Revolution
a. Second Revolution
Which list below represents the four elements of a SWOT analysis? a. Strengths, weaknesses, opportunities, and threats. b. Strengths, weaknesses, opportunities, and teamwork. c. Specifications, weaknesses, opportunities, and threats.
a. Strengths, weaknesses, opportunities, and threats.
Some scholars use the acronym VIRAL as a framework for competitive advantage. VIRAL is: a. Value, Inimitable, Rare, Aptitude, Lifespan b. Visual, Intouch, Rare, Attitude, Likeable c. Value, Intouch, Rare, Advanced, Likable
a. Value, Inimitable, Rare, Aptitude, Lifespan
In order for a company to achieve long term success, the output of operations must be worth more to the customer than the: a. cost of inputs. b. company's negative reputation. c. large number of product choices. d. stockholders' ownership value.
a. cost of inputs.
Businesses are shifting from organizing by _________, to organizing by business _______ a. from organizing by functions to organizing by processes. b. from organizing from processes to organizing by functions.
a. from organizing by functions to organizing by processes.
Today, employees in many countries in Europe have __________ and more generous vacation time than employees in the United States. a. shorter work weeks b. longer work weeks
a. shorter work weeks
Product design for life insurance requires an estimate of life expectancy. Is an example of: a. specialization b. technology c. process redesign
a. specialization
For the statistician, what is the acceptable standard deviation for errors under six sigma? a. 1% to 3% b. 3.4 defects per one million units c. 99.74% error free d. 3.4 defects per one thousand units
b. 3.4 defects per one million units
Why do the operations of organizations seek to form important strategic alliances? a. Because when supplier bases become larger, managing supplier alliances becomes more strategic. b. Because collaborations or partnerships are needed when operations increases outsourcing which contributes to the need for supplier development. c. Because successful strategic alliances can improve existing capabilities that are more significant than the opportunity to learn and develop new capabilities. d. Because strategic alliances develop one time solutions to problems.
b. Because collaborations or partnerships are needed when operations increases outsourcing which contributes to the need for supplier development.
Why are team-oriented operations essential today? a. Because management and labor are constantly at odds. b. Because cooperation is necessary to solve quality and productivity problems to remain competitive increasingly global marketplace. c. Because the labor force demands it.
b. Because cooperation is necessary to solve quality and productivity problems to remain competitive increasingly global marketplace.
Which of the following is often a key aspect in capacity planning for services, unlike capacity planning for goods? a. Customers are more likely to be dissatisfied by services. b. Inventory cannot be built ahead for most services. c. Customer demand for services is seasonal. d. Employees require specialized training to produce services.
b. Inventory cannot be built ahead for most services.
An order fulfillment system manages customers orders in several steps. Select the one that is NOT part of the process. a. Delivering the order to satisfy customers. b. Marketing to the customer. c. Entering orders into the organization's information system. d. Obtaining customer orders.
b. Marketing to the customer.
Banking, healthcare, insurance, retail, and other service industries grew because of the labor freed by mechanizing operations. a. First Revolution b. Second Revolution c. Third Revolution
b. Second Revolution
Improvements in manufacturing productivity freed resources for the rapid expansion of service operations a. First Revolution b. Second Revolution c. Third Revolution
b. Second Revolution
The six sigma expert uses a project charter to define a problem or improvement opportunity. What is included in a project charter? a. The name of the company and the project cost b. The scope of the project, problem statement, time frame, boundaries, and team members c. Inventory sheets and production details d. Customer lists and contact information
b. The scope of the project, problem statement, time frame, boundaries, and team members
Why are strategic alliances important in operations management? a. They are important because they allow the management of activities along the entire supply chain. b. They are important because they allow organizations to focus on their core competencies, rather than trying to manage activities along the entire supply chain. c. They are important because once firmly established, they do not have to be modified.
b. They are important because they allow organizations to focus on their core competencies, rather than trying to manage activities along the entire supply chain.
What is the purpose of benchmarking? a. To determine a company's market share b. To set a performance standard for a business activity c. To identify an organization's primary competitor d. To analyze the stability or instability of a process or procedure
b. To set a performance standard for a business activity
What question might be asked when analyzing a company's internal strengths? a. What are competitors doing? b. What unique or lowest-cost resources are controlled? c. What could be improved?
b. What unique or lowest-cost resources are controlled?
Where are check sheets generated? a. at the site where the data is interpreted b. at the site where the data is generated. c. at a company headquarters. d. at a computer center.
b. at the site where the data is generated.
As indicated with flat-screen televisions, when a firm makes improvements to product quality, product costs a. increase significantly. b. decrease significantly c. remain the same
b. decrease significantly
When people work together in organizations instead of working alone or in isolated groups, overall productivity tends to increase, which leads to _________. a. the use of automation b. improved standards of living c. work specialization d. coordination toward a common set of goals
b. improved standards of living
Pooling the resources of partners can contribute to important strategic alliances _____________. a. only when there is a resource or opportunity that partners cannot access b. that can create economies of scale and synergy of shared expertise c. but create less value for the customer
b. that can create economies of scale and synergy of shared expertise
Product characteristics that are essential to the customer are determined through __________. a. histograms. b. the Voice of the Customer c. a fishbone diagram. d. Value Stream Analysis
b. the Voice of the Customer
A histogram, or box chart, demonstrates ___________________. a. the lowest values for a repeated experiment b. the frequency of values in a given range c. statistical results for a recurring production error. d. the highest values for a repeated experiment
b. the frequency of values in a given range
A technician who performs preventive maintenance on commercial espresso machines can typically complete maintenance on three machines per eight-hour day. In calculating the technician's productivity, the input is a. 3 espresso machines b. capacity c. 8 hours
c. 8 hours
What question might be asked when looking for threats that exist in the external environment? a. What do good opportunities look like? b. What could be improved? c. Are quality standards or specifications for products or services changing?
c. Are quality standards or specifications for products or services changing?
The Coca-Cola Company has published two versions of its Code of Business Conduct, its worldwide code of conduct, and a code of conduct specific to Coca-Cola France, Refreshment Services and Coca-Cola Midi. What is the most likely reason that Coca-Cola employees in France and in the United States have different codes of conduct? a. The government of France dictated that Coca-Cola Company develop a separate document for employees in France. b. Consumers in France and the United States have different expectations for product quality, and these differences led to different operational requirements. c. Differences in ethical and legal requirements for doing business between France and the United States led to differences in the company's code of conduct.
c. Differences in ethical and legal requirements for doing business between France and the United States led to differences in the company's code of conduct.
Which quantitative factors usually impact manufacturing and service operations equally as they make location decisions? a. Labor climate, quality of life, proximity to customers and markets, and proximity to suppliers and resources. b. Utility costs and material costs. Labors costs, taxes, real estate costs, construction costs, and government incentives. c. Labor costs, taxes, real estate costs, construction costs, and government incentives
c. Labors costs, taxes, real estate costs, construction costs, and government incentives.
What is the 5S process for improved control when implementing six sigma? a. Sort, straighten, standardize, shine, sustain b. Select, sell, straighten, sustain, shine c. Sort, straighten, shine, standardize, sustain d. Shuffle, sort, shift, straighten, select
c. Sort, straighten, shine, standardize, sustain
Organizations such as Apple must execute on their competitive capabilities in order to achieve customer satisfaction, which in turn drives the organization's success. Apple famously focuses on style, creates innovative and unique products, and delivers them through retail channel partners including its own online and physical stores. Which combination of key process or processes does and organization such as Apple leverage to impact its operations? a. Strategy development and product development. b. Product development and order fulfillment. c. Strategy development, product development, development of systems, and order fulfillment. d. Product development and strategy development.
c. Strategy development, product development, development of systems, and order fulfillment.
Which of the following best describes the SCOR model? a. The SCOR model is a supply chain performance management system. b. The SCOR model is a set of best practices for managing suppliers. c. The SCOR model is a framework of processes and metrics companies can use to develop a supply chain performance management system.
c. The SCOR model is a framework of processes and metrics companies can use to develop a supply chain performance management system.
The development and commercial application of computers. a. First Revolution b. Second Revolution c. Third Revolution
c. Third Revolution
What question might be asked when analyzing a company's internal weaknesses? a. What advantages does the organization have? b. Which demographics are under-served in the competitive landscape? c. What factors result in lost sales?
c. What factors result in lost sales?
What question might be asked when looking at opportunities that exist in the external environment? a. Does the industry experience seasonal cash-flow problems? b. What should be avoided? c. What interesting trends might influence an organization's products or services?
c. What interesting trends might influence an organization's products or services?
The management of inventory is important to producers of goods and producers of services but ______________. a. there exists no physical inventories in a service business. b. the physical attributes of both require engineering talent c. a service is intangible and thus involves no finished products
c. a service is intangible and thus involves no finished products
A combination of improvements in managerial practices, increased productivity by American workers, and the expansion of U.S. natural gas production may reduce the cost to make steel in the United States. The U.S. steel industry may soon become more competitive in global trade due to a. increasing productivity of its worker b. sincreasing the quality of its products c. becoming a more efficient producer
c. becoming a more efficient producer
A pharmaceutical sales company needs to replace its company cars. One car company quoted a price 15% lower than its competitor. The pharmaceutical company took into account total expected costs of ownership, including purchase price, fuel efficiency, ergonomic comfort, end-of-life resale value, and warranty costs, and went with the higher-priced competitor to achieve a. Effective management of equipment b. Operational capacity c. long-term benefits
c. long-term benefits
Historically, the responsibility for quality control fell on which of the following? a. the company CEO b. every employee in a company c. the quality control department d. the company suppliers
c. the quality control department
Historically, different manufacturing systems have been employed to improve productivity. How can companies attain economies of scope? a. By producing only one type of product. b. By purchasing more equipment to increase production volumes. c. By reducing output to avoid hiring more workers. d. By diversifying their product line using the same equipment.
d. By diversifying their product line using the same equipment.
Job markets have shifted between countries for manufacturing, technology, engineering, and management jobs over the past decades. Which of the following has been a driving force in the global job market? a. Movement of production facilities b. Free trade agreements c. Market domination by multinational firms d. Labor costs
d. Labor costs
If a company manufactures a product that experiences stable, predictable demand in an industry with little innovation,_________ would improve efficiency and minimize costs. a. Insourcing b. Agile supply chain c. Reverse logistics d. Lean supply chain
d. Lean supply chain
Why have IBM, Ford, and Bank of America recently cut hundreds of thousands of white-collar workers? a. To be able to merge with another company b. To comply with government regulations c. To dramatically cut costs d. To be able to respond quicker to opportunities
d. To be able to respond quicker to opportunities
Helix Auto Supply, a national chain of retail outlets, owns two of its upstream suppliers, Ready Tires and Driex, a division that makes wiper blades. This is an example of: a. reverse logistics b. global outsourcing c. forward vertical integration d. backward vertical integration
d. backward vertical integration
Making operational decisions often involves creating an _____ that ensures both short-term profits and long-term sustainability for the organization. a. the bottom line b. employee wellness c. the environment d. ethical balance
d. ethical balance
Strategic alliances are important in operations management because they can create value in many ways, except by a. creating a higher return on investment b. accessing new markets c. learning new competencies d. lowering market penetration
d. lowering market penetration
Companies must adhere to rules and policies that have ethical implications. The ability to keep those ethical standards high, is an ongoing issue. Ethical standards can be: a. inexpensive to administer in most cases. b. ignored when legal standards are in place. c. handled through legal standards. d. stricter than legal standards.
d. stricter than legal standards.
Organizations might seek to form strategic alliances by sharing financial risks among partners to ______ investments. decrease increase
decrease
A Pareto chart represents data values, in what order, to visualize the most frequent occurrences? duplicate ascending negative descending
descending
The manufacturer plans to produce 400 doors per day. On average, it tends to actually produce 380 to 390 doors. In ideal conditions, the manufacturer can produce 500 doors per day. "400 doors per day" is the manufacturer's _______. design capacity system capacity capacity effective capacity
effective capacity
Organizations might seek to form strategic alliances to ________ growth of another partner by leveraging a partner's brand image. decrease increase
increase
Organizations might seek to form strategic alliances to ________ speed to the marketplace by aligning with a partner that has an established network. decrease increase
increase
In a scatter plot, the controlled variable is called the________ variable. indendent dependent measured
independent
Organizations might seek to form strategic alliances to create access to ________ markets by using a partner's international network. existing new
new
