mang 4000 test 1 quizzes

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A firms business practices toward its labor force pertain mainly to the economic aspect of the triple bottom line concept

FALSE

You have just determined the actual number of work stations 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 the tasks required on the line is 60 min. Which of the following is the correct value for the resulting lines efficiency?

.75 (60/8x10)

The generic development process outlined in the textbook is followed by many, if not most, of the firms in the Fortune 500

FALSE

Having a lot of interstage storage of materials is considered a good layout design for a manufacturing plant

FALSE ( Marks of a good layout for manufacturing/ back office operations include straight-line flow pattern, backtracking kept to a minimum, production time predictable, little interstage storage of materials)

Sustainability means meeting a firm's current needs without excessively compromising the ability of future generations to meet their own needs

FALSE (Excessively is not mentioned in the real definition)

In a multi factor measure of productivity, the numerator of the ratio would include all resources used or all inputs

FALSE (In a multi factor measure of productivity, the denominator includes several but not all inputs)

One goal of having a core competency is to do something better than anyone else.

FALSE (The goal is to yield a long term competitive advantage to the company)

capturing information directly from the source through such systems as point of sale, radio frequency ID tags, bar code scanners, & automatic recognition has had little impact on operations and supply chain management

FALSE (These technologies have shifted the focus to understanding both what all the info is saying & also how goods are the decisions that can be made using it)

in the generic product development process, phase 2 (system level design) begins with corporate strategy and incorporates market objectives

FALSE (This is Phase 0: planning)

The service system design matrix identifies five alternative forms of service encounters

FALSE (there are 6 forms identified)

a general purpose machine is less capable than a special purpose machine in certain tasks but can perform a broader variety of tasks

TRUE

an explicit service is readily observable by the senses

TRUE

an operations and supply chain strategy must be integrated with the organizations corporate strategy

TRUE

service guarantees can be used at the service design stage to focus the firm's delivery system on the things it must do well to satisfy the customer

TRUE

services often take the form of repeated encounters involving face to face interactions

TRUE

"Operations" refers to manufacturing and service processes used to transform RESOURCES employed by a firm into PRODUCTS desired by customers

TRUE ("Supply chain" refers to processes that move INFO and MATERIAL to and from the firm)

when recovering from a defective service encounter, a botched task calls for material compensation

TRUE (A botched task calls for material compensation while poor treatment calls for an apology)

which of the following approaches to service design is characterized by having the customer take a greater role in the production of the service? A) quality approach B) self service approach C) production line approach D) personal attention approach E) do it yourself approach

b

Which of the following are alternative possible service encounters included in the service system design matrix? A) Warranty B) field service C) sales call D) mail contact E) none

d

The placement of which of the following is not determined by production process organization decisions? A) emergency exits B) departments C)machines D) work stations E) Work groups

emergency exits

Which of the following is primarily used to help design products that will connect product attributes with customer desires? A) system level design B) house of quality matrix C) Phase 0: planning D) Value analysis/ value engineering E)concurrent engineering

house of quality matrix (most important benefit of HQM is that it helps focus on building a product that satisfies customers)

All other things remaining the same, if the sales revenue increases, asset turnover ratio will

increase (since sales revenue is in the numerator of the equation, inventory turnover will increase)

Service innovations can be patented

FALSE

The total output from a production system in one day is 500 units and the total labor necessary to produce 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio?

500/350 hours= 1.428

A manufacturing process has a fixed cost of $180,000 per month. Each unit of product being produced contains $30 worth of material and takes $40 of labor. How many units are needed to break even if each completed unit has a value of $100?

6000

In the service system design matrix, a face to face total customization service encounter is expected to have which of the following? A) low production efficiency B) Low sales opportunity C) none D) low degree of customer/server contact E) high production efficiency

A

Sensitivity analysis of the base case financial model is a useful tool for which of the following reasons? A) To help understand the basic trade offs of resources committed and cash received B) To identify the necessary product launch date C) To set marketing and sales budgets D) To understand how many technical people are needed to make the project a success E) To determine how long the development process can profitably last

A (Sensitivity analysis uses the financial model to answer "What if" questions by calculating the change in NPV corresponding to a change in the factors included in the model)

Which of the following is not a step in developing a manufacturing cell layout? A) Grouping parts into families that follow a common sequence of steps B) Disposing of leftover machinery and outsourcing ungrouped processes C) Identifying dominant flow patterns of parts families as a basis of location of processes D) Physically grouping machines and processes into cells

B

Which of the following is a basic type of production layout format? A) workcell center B) manufacturing cell C) systematic plan D) process flow diagram E) sumo charts

B (There are three basic types: work center, assembly line & project layout & one hybrid type: manufacturing cell)

Which of the following is not among the suggestions for a good layout for manufacturing and back office operations? A) Open plant floors so every an see what is happening B) workstations close together C) brightly colored walls and good lighting D) production time predictable E) Straight line flow pattern

C

In a concurrent engineering approach to product design and development, an integration team ensures that various parts of the product are compatible with the needs of the target customer

FALSE

Audiocables inc. is currently manufacturing an adapter that has a variable cost of .50/ unit & a selling price of 1.50/ unit. Foxed Costs are $14000. Current sales volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6000. Variable costs would increase to .60, but sales volume should jump to 50,000 units due to a higher quality product. What is the current profit & the proposed profit of the sales of audio cables? Should abdicable buy the new equipment?

Current: 16000 Proposed: 25000 They should buy it

Which of the following is not a major factor distinguishing SERVICE design and development from MANUFACTURING design and development? A) the service package, rather than a definable good, is the output of the development process B) many parts of the service package are often defined by the training that individuals receive before they become part of the service organization C) Many service organizations can change their service offerings virtually overnight D) the process and product must be developed at the same time E) service operations can be protected by patents; manufacturing operations cannot

E

A service system with a high degree of customer contact is less difficult to control than a low degree of customer contact service system

FALSE

Because eco design products are innovative and have better environmental performance, they can be of a slightly lesser quality than the market standard

FALSE

Performance measures discussed for development projects does not include A) cost of materials and tooling B) frequency of new product introductions C) yield D) conformance- reliability in use E) Percentage sales coming from very old products

Percentage sales coming from very old products

The correct order in the good services continuum

Pure goods, core goods, core services, pure services

A high level map or diagram of a supply chain process can be useful to understand how material flows and where inventory is held

TRUE

Specialized design firms tend to have highly developed processes that support the needs of particular industries

TRUE

economic analysis if product development projects must evaluate which of the following?

timing and amount of net cash flow


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