OM 300 Final Exam
Process redesign: is the fundamental rethinking of business processes is sometimes called process reengineering. tries to bring about dramatic improvements in performance. All listed
All listed
The 10 strategic operations management decisions include: - layout strategy. - maintenance. - process and capacity design. - All listed
All listed
Which of the following is TRUE regarding vision systems? They are consistently accurate. They are modest in cost. They do not become bored. All listed
All listed
Which of the following is a function of inventory? to decouple various parts of the production process to take advantage of quantity discounts to hedge against inflation All listed
All listed
Control charts for variables are based on data that come from: acceptance sampling. individual items. averages of small samples. averages of large samples.
averages of small samples.
Which of the following activities takes place most after the mission has been developed? - The firm develops alternative or back-up missions - The functional areas develop their area strategies. - The functional areas develop their supporting missions. - The ten OM decision areas are prioritized.
The functional areas develop their supporting missions.
Natural variations: affect almost every production process. are tolerated, within limits, when a process is in control when grouped, form a pattern, or distribution. All listed
All listed
Time-series data may exhibit which of the following behaviors? trend random variations seasonality All listed
All listed
A Six Sigma program has how many defects per million? 3.4 34 1000 6 times the standard deviation
3.4
Which of the following has made the LEAST progress along its product life cycle? Video physical rentals Boeing 787 3D printing Xbox 360
3D printing
Cost cutting in international operations can take place because of: - lower taxes and tariffs. - lower wage scales. - lower indirect costs. - All listed
All listed
Which of the following is an element of inventory holding costs? housing costs material handling costs investment costs All listed
All listed
Which of the following represents an opportunity for generating a new product? understanding the customer changes in professional standards economic change, such as rising household incomes All listed
All listed
What is the use of information technology to control machinery? CAM CAD QFD DFMA
CAM
Which of the following would NOT be an operations function in a commercial bank? - auditing - teller scheduling - maintenance - collection
auditing
Which of the following is NOT a step in the forecasting process? Determine the use of the forecast. Eliminate any assumptions. Determine the time horizon of the forecast. Select the forecasting model.
Eliminate any assumptions.
Which of the following statements is true? - Corporate mission is shaped by functional strategies. - Corporate strategy is shaped by functional strategies. - Functional strategies are shaped by corporate strategy. - External conditions are shaped by corporate mission.
Functional strategies are shaped by corporate strategy.
What is a system that stores & displays information that can be linked to a geographic location AIS LOC GLOC GIS
GIS
Why is Northern Mexico used as a cluster for electronics firms? high traffic flows venture capitalists located nearby natural resources of land and climate NAFTA
NAFTA
Which of the following statements regarding PERT analysis is true? Each activity has two estimates of its duration. Project variance is the sum of all activity variances. Only critical activities contribute to the project variance. Most likely time is equivalent to the expected activity time
Only critical activities contribute to the project variance.
The process improvement technique that sorts the vital few from the trivial many is: Taguchi analysis. Pareto analysis. benchmarking. Deming analysis.
Pareto analysis.
Which technologies could enable a cashier to scan the entire contents of a shopping cart ASRS AGV CAD/CAM RFID
RFID
Every network has at least one critical path. TRUE FALSE
TRUE
Which of the following statements regarding critical paths is true? shortest of paths through the network is the critical path Some activities on the critical path may have slack. Every network has only one critical path. There could be multiple critical paths with the same length
There could be multiple critical paths with the same length
Which of the following statements best characterizes delivery reliability? a company that always delivers on the same day of the week a company that always delivers at the promised time company that delivers more frequently than its competitors a company that has a computerized delivery scheduling system
a company that always delivers at the promised time
"Quality lies in the eyes of the beholder" is: an unrealistic definition of quality. a user-based definition of quality a manufacturing-based definition of quality. a product-based definition of quality.
a user-based definition of quality
Which of the following is not a typical inspection point? upon receipt of goods from your supplier when production or service is complete before the product is shipped to the customer after a costly process
after a costly process
Reasons to study operations management include learning about: - how people organize themselves for productive enterprise. - how goods and services are produced. - a costly part of the enterprise. - All listed
all listed
Which of the following shows in schematic form how a product is assembled? an engineering drawing an assembly routing an assembly chart a process sheet
an assembly chart
ABC analysis divides on-hand inventory into three classes, usually based on what? item quality unit price the number of units on hand annual dollar volume
annual dollar volume
A store is more likely than a manufacturer to consider___in making a location decision transportation costs cost of raw materials appearance/image of the location taxes
appearance/image of the location
When should product strategy focus on forecasting capacity requirements? at the introduction stage of the product life cycle at the growth stage of the product life cycle at the maturity stage of the product life cycle at the decline stage of the product life cycle
at the growth stage of the product life cycle
Which of the following is LEAST likely to be a low-cost leadership competitive advantage? - effective capacity use - low overhead - inventory management - broad product line
broad product line
Which of the following is NOT one of the phases of project management? planning scheduling budgeting All listed
budgeting
What is the statistical process chart used to control the number of defects per unit of output? x-bar chart R-chart p-chart c-chart
c-chart
A fishbone chart is also known as a: cause-and-effect diagram. poka-yoke diagram. Kaizen diagram Kanban diagram
cause-and-effect diagram.
The c-chart signals whether there has been a: gain or loss in uniformity. change in the number of defects per unit. change in the central tendency of the process output. change in the percent defective in a sample.
change in the number of defects per unit.
A location decision for an appliance manufacturer would tend to have what type of focus? cost focus focus on finding very highly skilled technicians revenue focus environmental focus
cost focus
All of the following decisions fall within the scope of operations management EXCEPT for: - creating the company income statement. - design of goods and services. - location strategy. - managing quality.
creating the company income statement
An engineering drawing shows the: dimensions, tolerances, materials, and finishes of a part dimensions, tolerance, cost, & sales or use volume of a part cost, materials, tolerances, and lead-time for a component. cost, dimensions, and machining operations for a component.
dimensions, tolerances, materials, and finishes of a part
The center-of-gravity method is used primarily to determine what type of locations? service locations manufacturing locations distribution center locations call center locations
distribution center locations
The three major types of forecasts used by organizations in planning future operations are: strategic, tactical, and operational. economic, technological, and demand. exponential smoothing, Delphi, and regression. causal, time-series, and seasonal.
economic, technological, and demand.
Which of the four major categories of quality costs is particularly hard to quantify? external failure costs appraisal costs internal failure costs prevention costs
external failure costs
Which of the following methods best considers intangible costs related to a location decision? crossover methods locational cost-volume analysis factor-rating method the transportation method
factor-rating method
What is a drawing of the movement of material, product, or people? flowchart process chart service blueprint process map
flowchart
The usual purpose of an R-chart is to signal whether there has been a: gain or loss in dispersion. change in the percent defective in a sample. change in the central tendency of the process output. change in the consumer's risk.
gain or loss in dispersion.
Which of the following is NOT one of the major categories of costs associated with quality? prevention costs garbage costs internal failure costs external failure costs
garbage costs
A product-focused process is commonly used to produce: high-volume, high-variety products. low-volume, high-variety products. high-volume, low-variety products. low-variety products at either high- or low-volume.
high-volume, low-variety products.
Globalization of the location decision is the result of all EXCEPT which of the following? market economics higher quality of labor overseas ease of capital flow between countries high differences in labor costs
higher quality of labor overseas
When sample measurements falls inside the statistical process control limits, it means that: each unit manufactured is good enough to sell. the process limits cannot be determined statistically. the process output exceeds the requirements. if there is no pattern in the samples, it is in control
if there is no pattern in the samples, it is in control
A product in the maturity stage of its life cycle be LEAST concerned with at the present time? increase capacity long production runs standardization cost cutting
increase capacity
Which of the following is NOT a service design technique used to increase service efficiency? increase customer interaction delay customization automation limit the options
increase customer interaction
A job shop is an example of a(n): repetitive process. continuous process. line process. intermittent process.
intermittent process.
A project organization: is effective for companies with multiple large projects. appropriate only in construction firms. often fails if the project cuts across organizational lines most helpful for ongoing projects with no termination date.
is effective for companies with multiple large projects.
A 6-month MA forecast is generally better than a 3-month MA forecast if demand: is rather stable. follows a downward trend. follows an upward trend. exceeds one million units per year.
is rather stable.
Assignable variation: is a sign that a process is under control. is to be identified and investigated. is the same as random variation. is variation that cannot be traced to a specific cause.
is to be identified and investigated.
According to the manufacturing-based definition of quality: even though quality cannot be defined, you know what it is. quality lies in the eyes of the beholder. it is the degree to which a product conforms to standards depends on how well the product fits consumer preferences
it is the degree to which a product conforms to standards
One use of short-range forecasts is to determine: planning for new products. capital expenditures. facility location. job assignments.
job assignments.
The forecasting technique that pools the opinions of a group of experts or managers is known as the expert judgment model. multiple regression. jury of executive opinion. market survey.
jury of executive opinion.
The reason fast food restaurants often are found in close proximity to each other is: they enjoy competition. location clustering near high traffic flows. low cost. availability of skilled labor.
location clustering near high traffic flows.
Which of the following phrases best describes process focus? low volume, high variety Finished goods are usually made to a forecast and stored. Operators are less broadly skilled high fixed costs, low variable costs
low volume, high variety
Reducing the complexity of a product & improving a product's maintainability are activities of: product lifecycle management (PLM). product-by-value analysis. manufacturability and value engineering. organizing for product development.
manufacturability and value engineering.
Which of the following are primary functions of all organizations? - production/operations, marketing, and human resources - marketing, human resources, and finance/accounting - sales, quality control, and production/operations - marketing, production/operations, and finance/accounting
marketing, production/operations, and finance/accounting
Which of the following is not one of the strategies for improving service productivity? self-service automation scheduling mass customization
mass customization
The "four Ms" of cause-and-effect diagrams are: material, machinery/equipment, manpower, and methods. material, methods, men, and mental attitude. named after four quality experts material, management, manpower, and motivation.
material, machinery/equipment, manpower, and methods.
The primary purpose of the mean absolute deviation (MAD) in forecasting is to: estimate the trend line. eliminate forecast errors. measure forecast accuracy. remove random variations.
measure forecast accuracy.
Industrial location analysis typically attempts to: minimize costs. maximize sales. focus more on human resources avoid countries with strict environmental regulations.
minimize costs.
The transportation model, when applied to location analysis: minimizes total fixed costs. minimizes total production and transportation costs. minimizes total transportation costs. maximizes revenues.
minimizes total transportation costs.
The total outputs produced by the transformation process divided by the total of the inputs is: - utilization. - greater in manufacturing than in services. - defined only for manufacturing firms. - multifactor productivity
multifactor productivity
Which of the following product development strategies has the highest product development risk? acquiring the developer alliances joint ventures new internally developed products
new internally developed products
Which of the following is not an advantage of outsourcing? cost savings gaining outside expertise improving operations and service outsourcing core competencies
outsourcing core competencies
The # of late insurance claim payouts per 100 should be measured w/ what type of control chart? x-bar chart R-chart p-chart c-chart
p-chart
What is the most critical phase in product life cycle assessment? product design purchasing production shipping
product design
Which of the following attributes is most typical of a service? - production and consumption occur simultaneously - tangible - mass production - easy to automate
production and consumption occur simultaneously
The two general approaches to forecasting are: qualitative and quantitative. mathematical and statistical judgmental and qualitative. judgmental and associative.
qualitative and quantitative.
In time series, which of the following cannot be predicted? large increases in demand cycles seasonal fluctuations random variations
random variations
In location planning, environmental regulations, cost & availability of utilities, & taxes are: global factors. country factors. regional/community factors. site-related factors.
regional/community factors.
An assembly line is an example of a: product-focused process. process-focused process. repetitive process. specialized process.
repetitive process.
Which of the following industries is most likely to have low equipment utilization? auto manufacturing commercial baking television manufacturing restaurants
restaurants
A location decision for a department store (eg, Macy's) would tend to have what type of focus? cost focus labor focus revenue focus environmental focus
revenue focus
Which of the following is NOT one of the four main types of inventory? raw material inventory work-in-process inventory maintenance/repair/operating supply inventory safety stock inventory
safety stock inventory
Increasing the number of periods in a MA will accomplish more smoothing, but at the expense of manager understanding. accuracy stability sensitivity to real changes in the data.
sensitivity to real changes in the data.
The service sector has lower productivity improvements than the manufacturing sector because: - service sector uses less skilled labor than manufacturing. - quality of output is lower in services than manufacturing. - services usually are labor-intensive. - service sector productivity is hard to measure.
services usually are labor-intensive.
An assembly chart: shows graphically how the product is assembled. shows an exploded view of the product. describes the dimensions and finish of each component. provides detailed instructions on how to perform a task
shows graphically how the product is assembled.
What term is given to those individuals with a vested interest in an organization? - alumni - investors - vestors - stakeholders
stakeholders
What is a network of organizations and activities that supply a firm with goods & services? - supply tree - provider network - supply chain - vendor network
supply chain
An operations manager is NOT likely to be involved in: - the design of goods and services - the quality of goods and services - the identification of customers' wants and needs. - work scheduling to meet the due dates promised to customers.
the design of goods and services
One of the similarities between process focus and mass-customization is: the volume of outputs. the use of modules. many departments and many routings. the variety of outputs.
the variety of outputs.
The two most basic inventory questions answered by the typical inventory model are: timing of orders and cost of orders. order quantity and cost of orders. timing of orders and order quantity. order quantity and service level.
timing of orders and order quantity.
Which of the following would NOT generally be a motive for a firm to hold inventories? to decouple various parts of the production process to take advantage of quantity discounts to minimize holding costs to hedge against inflation
to take advantage of quantity discounts
Most inventory models attempt to minimize: the likelihood of a stockout. the number of items ordered. total inventory-based costs. the number of orders placed.
total inventory-based costs.
Three broad categories of definitions of quality are: product quality, service quality, and organizational quality user based, manufacturing based, and product based. low-cost, response, and differentiation. Pareto, Shewhart, and Deming.
user based, manufacturing based, and product based.
ABC analysis is based upon the principle that: all items in inventory must be monitored very closely. usually a few critical items, & many less critical items an item is critical if its usage is high. more time should be spent on class "C" items
usually a few critical items, & many less critical items
The expected activity time in PERT analysis is calculated as: average of the optimistic, pessimistic, & most likely times weighted average of a, m, and b sum of the optimistic, pessimistic, and most likely times. the sum of the activity variances, divided by six.
weighted average of a, m, and b
Which of the following is NOT a characteristic of exponential smoothing? smoothes random variations in the data uses an easily altered weighting scheme weights each historical value equally has minimal data storage requirements
weights each historical value equally
Projects such as road building and plane building are: 20 sec ill-defined well-defined agile None listed
well-defined
Which of the following statements describes job rotation? The job contains a larger number of similar tasks. The operator works on different shifts on a regular basis. worker is allowed to move from one machine to another. The operator's schedule is flexible.
worker is allowed to move from one machine to another.
Which is NOT a top consideration in choosing a country for a facility location? availability of labor and labor productivity exchange rates attitude of governmental units zoning regulations
zoning regulations
According to the text, what is the most common choice of limits for control charts? ±1 standard deviation ±2 standard deviations ±3 standard deviations ±6 standard deviations
±3 standard deviations