operations first exam
When sample measurements falls inside the control limits, it means that:
if there is no other pattern in the samples, the process is in control.
Porter's Five Forces Model contains which of the following? immediate rivals, potential entrants, customers, suppliers, and substitute products all of the above
immediate rivals, potential entrants, customers, suppliers, and substitute products
Porter's Five Forces Model is used to evaluate competition based on which 5 aspects? a) immediate rivals, potential entrants, customers, suppliers, and substitute products, b) immediate rivals potential entrants, costs, subsitityte and legal regulations c) cost legal regulations advertising effectiness potential enratnts and immeditae, d) potential enrtants customer suppliers legal regulations and cost e) research and development cost legal regulations suppliers customers
immediate rivals, potential entrants, customers, suppliers, and substitute products
A job shop is an example of a(n): specialized process. intermittent process. continuous process. line process. repetitive process.
intermittent process.
An SWOT analysis determines:
internal strengths and weaknesses and external opportunities and threats.
Which of the following is a similarity between goods and services? consistency Both can usually be kept in inventory. mass production automation Both have quality standards.
Both have quality standards.
t or f Pareto charts are a graphical way of identifying the few critical items from the many less important ones.
True
t or f The factor-rating method can consider both tangible and intangible costs.
True
Among the characteristics of an intermittent production process is: a. high and even machine utilizationb. low work-in-process inventoriesc. ability to produce a variety of productsd. quality leadership
ability to produce a variety of products
Consumer's risk is the probability of:
accepting a bad lot.
A strategy is a(n): ) Set of opportunities in the marketplace. B) Broad statement of purpose. C) Simulation used to test various product line options. D) Plan for cost reduction. E) Action plan to achieve the mission.
action plan to achieve the mission.
A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision.
appearance/image of the location
Assignable causes: are causes of variation that can be identified and investigated. are within the limits of a control chart. are also referred to as "chance" causes. are not as important as natural causes. depend on the inspector assigned to the job.
are causes of variation that can be identified and investigated.
Which of the following is NOT one of the Seven Wastes? transportation defective product overproduction assignment motion
assignment
Which of the following would NOT be an operations function in a commercial bank?
auditing
Which of the following products is likely to be assembled on a repetitive process line? A) automobilesB) custom personal computersC) custom cakesD) steelE) beer
automobiles
how to find r bar
average of all rs
how to find x double bar
average of all x bars
To set x-bar chart upper and lower control limits, one must know the process central line, which is the:
average of the sample means.
Control charts for variables are based on data that come from:
averages of small samples.
Kanban is associated with all EXCEPT which of the following? A) small lot sizes.B) signals, such as cards, lights, or flags.C) moving inventory only as needed.D) increased material handling.
increased material handling
Which of the following is NOT a goal of JIT partnerships? A) removal of unnecessary activitiesB) removal of in-plant inventoryC) removal of in-transit inventoryD) inspect all incoming shipments to ensure zero defectsE) All of the above are goals of JIT partnerships.
inspect all incoming shipments to ensure zero defects
which of the following is not a goal of JIT partnerships? inspect all incoming shipments to ensure zero defects removal of in-transit inventory removal of unnecessary activities removal of in-plant inventory All of the above are goals of JIT partnerships.
inspect all incoming shipments to ensure zero defects
Which of the following fosters specialization and worldwide supply chains? a) more expensive transportation b) instant communication c) economies of scope d) managers with a broad knowledge of many things e) high trade tariffs
instant communication
When making a location decision at the country level, which of these would be considered? a. corporate desiresb. land/construction costsc. air, rail, highway, waterway systemsd. zoning restrictionse. location of markets
location of markets
Which of the following is characteristic of lean operations? low space requirements inventory buffers between each workstation to minimize system downtime specialty workers with no cross-training no supplier partnerships easy, mindless jobs
low space requirements
What is the practice of transferring a firm's activities that have traditionally been internal to external suppliers?
outsourcing
LCLp
p bar- z* op bar
The number of late insurance claim payouts per 100 should be measured with what type of control chart?
p-chart
Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm? parking and access labor costscost of shipping finished goodsenergy and utility costsattitude toward unions
parking and access
UCLp
pbar+ z * op bar
Which of the following is generally found in most Lean environments? a push system for high margin items and a pull system for low margin items B. pull systems C. a push or pull system, depending upon the rate of demand D. push systems E. a push system for purchased parts and a pull system for manufactured parts
pull systems
Which of the following is NOT an attribute of lean operations? educating suppliers to accept responsibility for helping meet customer needs, pushing responsibility to the highest level possible through centralized decision making, minimizing space requirements by reducing the distance a part travels, eliminating almost all inventory through just-in-time techniques, building worker flexibility through cross-training and reducing job classifications
pushing responsibility to the highest level possible through centralized decision making
Which of the following is NOT a strategic operations management decision?
quality price layout design inventory maintenance
According to the manufacturing-based definition of quality: a. quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost b. quality depends on how well the product fits patterns of consumer preferences c. even though quality cannot be defined, you know what it is d. quality is the degree to which a specific product conforms to standards
quality is the degree to which a specific product conforms to standards.
In location planning, environmental regulations, cost and availability of utilities, and taxes are: a. global factorsb. country factorsc. regional/community factorsd. site-related factorse. none of the above
regional/community factors.
Producer's risk is the probability of:
rejecting a good lot.
Which of the determinants of service quality involves performing the service right the first time? responsiveness reliability credibility access courtesy
reliability
Which one of the following is a characteristic of a JIT partnership? a. large number of suppliersb. maximal product specifications imposed on supplierc. active pursuit of vertical integrationd. removal of incoming inspectione. frequent deliveries in large lot quantities
removal of incoming inspection
A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus?A. labor focus B. revenue focus C. cost focus D. environmental focus E. education focus
revenue focus
factors to include r chart
sample range UCLr R bar LCLr
factors to include x bar chart
sample, sample mean, UCLx x double bar LCLx
t or f An example of an intangible cost, as it relates to location decisions, is the quality of education.
true
t or f Averages of small samples, not individual measurements, are generally used in statistical process control.
true
t or f Continuous improvement is based on the philosophy that any aspect of an operation can be improved.
true
t or f Improved quality can increase profitability via allowing flexible pricing.
true
t or f Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult.
true
t or f Mean charts and range charts complement one another, one detecting shifts in process average, the other detecting shifts in process dispersion.
true
t or f Mistakes stemming from workers' inadequate training represent an assignable cause of variation.
true
t or f One goal of JIT partnerships is the removal of in-plant inventory by delivery in small lots directly to the using department as needed.
true
t or f One reason for a firm locating near its competitors is the presence of a major resource it needs
true
t or f Product storage is an example of waste in the sense that no value is added.
true
t or f Service firms choose locations based, in part, on the revenue potential of a site.
true
t or f Some degree of variability is present in almost all processes.
true
t or f The 5Ss—sort/segregate, simplify/straighten, shine/sweep, standardize, and sustain/self-discipline—are important to lean production because they act as a means to reduce waste.
true
t or f The assembly line is a classic example of a repetitive process.
true
t or f The definition of quality adopted by The American Society for Quality is a customer-oriented (i.e., user based) definition.
true
t or f The factor-rating method can consider both tangible and intangible costs.
true
t or f The first step in reducing setup times is the separation of setup into preparation activities and actual setup, so that as much work as possible can be done while the machine or process is operating.
true
t or f The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process, product, or service capability; the other is a comprehensive system for achieving and sustaining business success.
true
t or f Unfavorable exchange rates can offset other savings in a location decision.
true
t or f Waste is anything that does not add value from the consumer's perspective.
true
t or f problems bevome more obvious in a pull system
true
t or fHidden problems are generally uncovered during the process of reducing inventory.
true
true or false Competition in the 21st century is no longer between companies; it is between supply chains.
true
true or false Internal failure costs are associated with scrap, rework, and downtime.
true
true or false Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.
true
t or f A process range chart illustrates the amount of dispersion within the samples.
true
If 1 million passengers pass through the St. Louis Airport with checked baggage each month, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage?
3.4
Which one of the following scenarios represents the use of a kanban to reduce inventories? A supervisor tells the operators to stay busy and start producing parts for next month.B) A "supplier" work center signals the downstream workstation that a batch has been completed.C) A supervisor signals to several work centers that the production rate should be changed.D) A "customer" work center signals to the "supplier" workstation that more parts are needed.E) An operator asks the next station's operator to help him fix his machine.
A "customer" work center signals to the "supplier" workstation that more parts are needed.
Which of the following is the best example of competing on low-cost leadership? A. A firm's research and development department generates many ideas for new products B. A firm's research and development department generates many ideas for new products C. A firm produces its product with less raw material waste than its competitors. D. A firm offers more reliable products than its competitors E. A firm's products are introduced into the market faster than its competitors
A firm produces its product with less raw material waste than its competitors do.
Which of the following is an example of competing on quick response?A) A firm produces its product with less raw material waste than its competitors do. B) A firm offers more reliable products than its competitors do. C) A firm's products are introduced into the market faster than its competitors' products. D) A firm utilizes its capacity more effectively than its competitors do. E) A firm advertises more than its competitors do.
A firm's products are introduced into the market faster than its competitors' products
A successful quality strategy features which of the following elements?A) an organizational culture that fosters qualityB) an understanding of the principles of qualityC) engaging employees in the necessary activities to implement qualityD) A and CE) A, B, and C
A, B, and C
t or f Acceptance sampling accepts or rejects an entire lot based on the information contained in the sample.
true
t or f An example of an intangible cost, as it relates to location decisions, is the quality of education
true
Which of the following statements concerning process management is true? High customer involvement usually means more capital intensity and less resource flexibility Capital intensity depends on the mix of equipment and human skills in a production process: the greater the relevant cost of equipment to human labor, the greater the capital intensity. With a customized-services process, the workforce and the customer rarely interact. A project process is utilized when multiple units of a standard product are to be made. High resource flexibility is required when high volumes are to be produced at low costs.
Capital intensity depends on the mix of equipment and human skills in a production process: the greater the relevant cost of equipment to human labor, the greater the capital intensity.
Which of the following statements about process choice is best? A) A batch process typically has a standard sequence of operations through the facility. B) Automobiles and appliances are examples of products created using a continuous flow process. C) Continuous flow processes are very capital intensive. D) A custom cake operation is an example of a batch process
Continuous processes are very capital intensive.
LCLr
D3 x R bar
UCLr
D4 x R bar
Which of the following is NOT a source of variability? A) Employees, machines, and suppliers produce units late.B) Customer demand is unknown.C) Employees, machines, and suppliers produce units that conform to standards.D) Engineering drawings are inaccurate.E) Drawings or specifications are incomplete.
Employees, machines, and suppliers produce units that conform to standards.
t or f In location decisions, intangible costs are easier to measure than tangible costs.
False
Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor? A. Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source. B. Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances. C. Furniture makers choose to locate near the source of goodhardwoods, even though it means locating near other furniture manufacturers. D. Few people will travel out-of state for a routine haircut. E. Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital.
Few people will travel out of state for a routine haircut.
Which of the following statements about customer involvement is best? When customer involvement is highly customized, a process is more likely to use a standardized-services process rather than a customized-services process. For services that directly involve the customer, the customer often dictates the time of the service. A firm that products standardized products often seeks customer specifications. In service industries, customer contact is of minor importance. Empowered employees are not necessary when there is high customer involvement.
For services that directly involve the customer, the customer often dictates the time of the service.
Which is NOT true regarding differences between goods and services? a. Services are generally produced and consumed simultaneously; tangible goods are not.b. Services tend to be more knowledge-based than products.c. Services tend to have a more inconsistent product definition than goods.d. Goods tend to have higher customer interaction than services.e. None of the above is true.
Goods tend to have higher customer interaction than services.
What is a set of quality standards developed by the International Organization for Standardization?
ISO 9000
If the goals of JIT partnerships are met, which of the following is a result? A For incoming goods, receiving activity and inspection are outsourced. B) In-transit inventory falls as suppliers are located closer to facilities C) The number of suppliers increases D) In-plant inventory replaces in transit inventory. E) All of the above are consequences of meeting the IT partnership goals.
In-transit inventory falls as suppliers are located closer to facilities.
Which of the following statements regarding the center-of-gravity method is FALSE? The weights used are the quantity of goods moved to or from each location. The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water. It is designed to minimize the maximum possible travel distance to any of the locations. The origin of the coordinate system and the scale used are arbitrary, just as long as the relative distances are correctly represented. The optimal x- and y-coordinates are calculated separately.
It is designed to minimize the maximum possible travel distance to any of the locations.
A manufacturer took the following actions to reduce inventory. Which of these is generally not accepted as a JIT action? it is used a pull system to move inventory it produced in ever smaller lots it required deliveries diretly to the point of use it worked to reduce the companys in transit invetory It picked the supplier that offered the lowest price based on quantity discounts.
It picked the supplier that offered the lowest price based on quantity discounts.
Which of the following characteristics best describes repetitive focus? It uses sophisticated scheduling to accommodate custom orders. Its output is a standardized product produced from modules. Operators are broadly skilled. It is widely used for the manufacture of steel. Its costs are often known only after a job is done.
Its output is a standardized product produced from modules.
Which of the following is FALSE regarding the links between JIT and quality? jit redueces the number of potential sources of error by shrinking queues and lead times, if consitent qualogy exists jit allos firms to rduce all costs associated with inventory inveotry hides bad quality jit immeiatly exposes it, JIT increases the cost of obtaining good quality, as quality improves fewer invetory buffers are needed in turn JIT performs better
JIT increases the cost of obtaining good quality.
JIT makes quality cheaper because: A.the cost of low quality can be hidden in inventory.B.JIT prevents long runs of defects.C.JIT adds more buffers to the system.D.B and CE.A, B and C
JIT prevents long runs of defects.
Which of the following is specifically characterized by continuous and forced problem solving via a focus on throughput and reduced inventory?
Just-in-time (JIT)
________ and currency risks are to key country success factors as land costs and ________ are to key region success factors. A.Labor cost; proximity to customers B.Exchange rates; environmental impact C.Land costs; air and rail systems D.Cultural issues; zoning restrictions E.All of the above are accurate relationships.
Labor cost; proximity to customers
Current challenges in operations management include all of the following except rapid product development. just-in-time performance. empowered employees. mass customization. None of the above are exceptions, i.e., all are current challenges.
None of the above are exceptions, i.e., all are current challenges.
PDCA, developed by Shewhart, stands for which of the following?
Plan-Do-Check-Act
Which of the following statements regarding a pull system is TRUE? Work is pulled to the downstream stations before it is actually needed. Large lots are pulled from upstream stations. Manufacturing cycle time is increased. Problems become more obvious. None of the above is true of a pull system.
Problems become more obvious.
Which is NOT true regarding differences between goods and services? Most goods are common to many customers; services are often unique to the final customer. Tangible goods are generally produced and consumed simultaneously; services are not. Services tend to have higher customer interaction than goods. Services tend to have a more inconsistent product definition than goods. None, i.e., all of the above are true.
Tangible goods are generally produced and consumed simultaneously; services are not.
Which of the following activities takes place most immediately once the mission has been developed? The functional areas develop their supporting missions. Operational tactics are developed. The functional areas develop their functional area strategies. The firm develops alternative or back-up missions in case the original mission fails. The ten OM decision areas are prioritized.
The functional areas develop their supporting missions.
Which of the following is true of a p-chart? ) The lower control limit is found by subtracting a fraction from the average number of defects.B) The lower control limit indicates the minimum acceptable number of defects.C) The lower control limit equals D3 times p-bar.D) The lower control limit may be at zero.E) The lower control limit is the same as the lot tolerance percent defective.
The lower control limit may be at zero.
A grocery store is attempting to implement a kanban system. Which of the following would NOT be an application of kanbans? An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts.A line of 5 people in the Chinese department signaling the department to heat 5 Crab Rangoon. A red light on top of the cashier's lane signals that the cashier needs additional change replenished.The meat department stocking up on turkeys before Thanksgiving.All of these are kanban applications.
The meat department stocking up on turkeys before Thanksgiving.
Which of the following statements regarding "Six Sigma" is TRUE? A. The Six Sigma program was developed by Toyota in the 1970s. B. Six Sigma means that about 94 percent of a firm's output is free of defects. C. The Six Sigma program is for manufacturing firms and is not applicable to services. D. Six Sigma certification is granted by the International Standards Organization (ISO). E. The term has two distinct meanings - one is statistical; the other is a comprehensive quality system.
The term has two distinct meanings-one is statistical; the other is a comprehensive quality system.
Which of the following statements about organizational missions is FALSE? A) They reflect a company's purpose. B) They indicate what a company intends to contribute to society. C) They are formulated after strategies are known. D) They define a company's reason for existence. E) They provide guidance for functional area missions.
They are formulated after strategies are known.
Which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices? Lean operations Material requirements planning (MRP) kanban Toyota Production System (TPS) Just-in-time (JIT)
Toyota Production System (TPS)
Which of the following is FALSE regarding control charts? Control charts graphically present data. Control charts are built so that new data can be quickly compared to past performance data. Values above the upper control limits imply that the product's quality is exceeding expectations. Control charts plot data over time. None of the above is false.
Values above the upper control limits imply that the product's quality is exceeding expectations.
Currency risk is based on what assumption? The U.S. stock market fluctuates daily. Values of foreign currencies continually rise and fall in most countries. Firms that do not continuously innovate will lose market share. Changing product lines by reacting to every current trend may alienate the customer base. The value of one dollar today is greater than the value of one dollar to be received one year from now.
Values of foreign currencies continually rise and fall in most countries.
Plots of sample ranges indicate that the most recent value is below the lower control limit. What course of action would you recommend?
Variation is not in control; investigate what created this condition.
Which of the following statements about process management is best? a. When customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties. b. The traditional relationship between capital intensity and resource flexibility is that if one is high, so is the other. c. Economies of scope mean that a process should be devoted to a single product or service to achieve high volumes. d. Creating a more capital-intensive process tends to reduce the fixed cost and raise the variable unit cost.
When customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties.
Which of the following statements about process management is best? conomies of scale mean that a process should be devoted to a variety of products or services to achieve customization. Economies of scope mean that a process should be devoted to a single product or service to achieve high volumes. The traditional relationship between capital intensity and resource flexibility if that if one is high, so is the other. When customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties. Creating a more capital intensive process tends to reduce the fixed cost and raise the variable unit cost.
When customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties.
UCLx
X bouble bar + A2R
LCLx
X double bar- A2R
A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from a variety of other causes. This manager is most likely using:
a Pareto chart.
Total quality management emphasizes: A) the responsibility of the quality control staff to identify and solve all quality-related problems.B) a commitment to quality that goes beyond internal company issues to suppliers and customers.C) a system where strong managers are the only decision makers.D) a process where mostly statisticians get involved.E) ISO 14000 certification
a commitment to quality that goes beyond internal company issues to suppliers and customers.
Which of the following statements best characterizes delivery reliability? a 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 a company that always delivers on the same day of the week a company that delivers faster than its competitors
a company that always delivers at the promised time
Traffic counts and purchasing power analysis of drawing area are techniques associated with: A) locational cost-volume analysis.B) a manufacturing location decision.C) a retail or professional service location decision.D) the factor-rating method.E) the transportation model.
a retail or professional service location decision.
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 at the supplier's plant while the supplier is producing after a costly process
after a costly process
FedEx chose Memphis, Tennessee, as its U.S. hub because: A) the city is in the center of the United States, geographically.B) the airport has relatively few hours of bad weather closures.C) it needed a means to reach cities to which it did not have direct flights.D) the firm believed that a hub system was superior to traditional city-to-city flight scheduling.E) All of the above are true.
all of the above
Intangible costs include which of the following? A)quality of educationB)availability of public transportationC)quality of prospective employeesE) all of the above
all of the above
Just-in-time systems make demands on layouts, including the need for increased flexibility. cross-trained, flexible employees. distance reduction. reduced space and inventory. all of the above
all of the above
Location decisions are often being based on which of the following? interstate highways airports all of the above rail hubs ports and rivers
all of the above
Natural variations: are tolerated within lijmits when a process is under control, are the many sources of variation that occur when a process is under control, when groiuped for a pattern or distribution affect almost every production process, all of the above
all of the above
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. what operations managers do. all of the above.
all of the above
The 10 strategic operations management decisions include: managing quality. layout strategy. maintenance. process and capacity design. all of the above.
all of the above
The difference between process focus and product focus is in: the degree of flexibility of the production system the volume of production per product product variety the extent of product customization all of the above
all of the above
acceptance sapling is: more economical than 100% inspection, may involve inspectors taking random samples of incoming raw materials, may involve inspectors taking radnom samples of finished products, may be either a variable of attribute type, all of the above
all of the above
The Central Limit Theorem: A. allows managers to use the normal distribution as the basis for building some control charts. B. states that the average range can be used as a proxy for the standard deviation. C. controls the steepness of an operating characteristic curve. D. is the theoretical foundation of the c-chart. E. states that the average of assignable variations is zero.
allows managers to use the normal distribution as the basis for building some control charts.
Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking? based on costof doing business, based on corruption, based on magnitude of government social programs based on competitiveness based on average duration between presidential/prime minister elections
based on corruption
The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as:
benchmarking
An x-bar control chart was examined and no data points fell outside of the limits. Can this process be considered in control? not yet but could be a pattern to the points, not yet the r chart must be checked, yes, not ey the number of samples must be known, both a and b
both a and b
Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 oz. Which type of chart(s) would you recommend?
both an x-bar chart and an R-chart
What does the Japanese word "kanban" mean?
card
A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. To analyze trends or patterns in these returns, she has organized these complaints into a small number of sources or factors. This is most closely related to the ________ tool of TQM.
cause-and-effect diagram
A fishbone chart is also known as a:
cause-and-effect diagram.
A regional bookstore chain wants to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis?
center-of-gravity method
The purpose of an x-bar chart is to determine whether there has been a: change in the central tendency of the process output. change in the number of defects in a sample. change in the percent defective in a sample. change in the AOQ. change in the dispersion of the process output.
change in the central tendency of the process output.
Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT? distant relationships with skepticism, close relationships with trust, distant relationships with trust, close relationships with skepticism, none of these
close relationships with trust
The ability of an organization to produce goods or services that have some uniqueness in their characteristics is
competing on differentiation.
The philosophy of zero defects is: A. the result of Deming's research.B. prohibitively costly.C. an ultimate goal; in practice, 1 to 2% defects is acceptable.D. consistent with the commitment to continuous improvement.E. unrealistic.
consistent with the commitment to continuous improvement.
PDCA is most often applied with regard to which aspect of TQM
continuous improvement
Kaizen is a Japanese term meaning:
continuous improvement.
Functional strategies are shaped by
corporate strategy.
A location decision for an appliance manufacturer would tend to have what type of focus? cost focus education focus focus on finding very highly skilled technicians revenue focus environmental focu
cost focus
Which of the following is the best example of a pure service? A. Counseling B. Oil Change C. Heart Transplant D. Amusement Park E. restaraunt
counseling
All of the following decisions fall within the scope of operations management EXCEPT for: A) creating the company income statement B) design of goods and processes C) location of facilities D) managing quality E) All of the above fall within the scope of operations management.
creating the company income statement.
Which of the determinants of service quality involves having the customer's best interests at heart? a. accessb. courtesyc. credibilityd. responsivenesse. tangibles
credibility
Which one of the following products is most likely made in a job shop environment? A) rolls of newsprintB) custom furnitureC) television setsD) cigarettesE) canned vegetables
custom furniture
factors to include for p chart
day, proportion, UCL, P bar, LCL
Acceptance sampling's primary purpose is to: a. estimate process qualityb. estimate lot qualityc. detect and eliminate defectivesd. decide if a lot meets predetermined standardse. determine whether defective items found in sampling should be replaced
decide if a lot meets predetermined standards.
Productivity can be improved by: decreasing inputs while holding outputs steady. decreasing outputs while holding inputs steady. increasing inputs while holding outputs steady. increasing inputs and outputs in the same proportion. none of the above.
decreasing inputs while holding outputs steady.
The fundamental purpose of an organization's mission statement is to:
define the organization's purpose in society.
Which of the following are among the 10 strategic operations management decisions? pricing of goods and services design of goods and services marketing managing quality layout strategy
design of goods and services .managing quality layout strategy
The goal of inspection is to:
detect a bad process immediately.
Acceptance sampling: is used to
determine whether to accept or reject a lot of material based on the evaluation of a sample.
According to the authors, which of the following strategic concepts allow firms to achieve their missions? productivity, efficiency, and quality leadership distinctive competency, cost leadership, and experience differentiation, cost leadership, and response differentiation, distinctive competency, quality leadership, and capacity differentiation, quality leadership, and response
differentiation, cost leadership, and response
Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?
factor-rating method
Statistical process control charts: display upper and lower limits for process variables or attributes and signal when a process is no longer in control. display the measurements on every item being produced. indicate to the process operator the average outgoing quality of each lot. are a graphic way of classifying problems by their level of importance, often referred to as the 80-20 rule. indicate to the operator the true quality of material leaving the process.
display upper and lower limits for process variables or attributes and signal when a process is no longer in control.
Which of the following is NOT a typical service attribute? a. intangible productb. easy to storec. customer interaction is highd. simultaneous production and consumptione. difficult to resell
easy to store
Which of the following services is LEAST likely to be unique, i.e., customized to a particular individual's needs? a. dental careb. hairdressingc. legal servicesd. elementary educatione. computer consulting
elementary education
A product-oriented layout is characterized by: a high level of materials handling grouping of similar machines in work centers low and uneven machine utilization equipment arrangement based on the sequence of operations high product variety
equipment arrangement based on the sequence of operations
One of Britain's largest children's hospitals working with a Ferrari racing team is an example of:
external benchmarking.
Which of the four major categories of quality costs is particularly hard to quantify?
external failure costs
Evaluating location alternatives by comparing their composite (weighted-average) scores involves which of the following?
factor-rating analysis
Which of the following is an approach to location analysis that includes both qualitative and quantitative considerations?
factor-rating method
t or f "Considers inventory ordering and holding decisions" is within the strategic operations management decision area of managing quality.
false
t or f A normal distribution is generally described by its two parameters: the mean and the range.
false
t or f A p-chart is appropriate to plot the number of typographic errors per page of text.
false
t or f A process is said to be in statistical control when assignable causes are the only sources of variation.
false
t or f A push system means providing the next station with exactly what is needed when it is needed.
false
t or f An improvement in quality must necessarily increase costs.
false
t or f An operations manager is involved in the identification of customers' wants and needs.
false
t or f An organization's strategy is the purpose or rationale for its existence.
false
t or f An x-bar chart is used when we are sampling attributes.
false
t or f Because most services cannot be inventoried, there is little place for JIT to help service organizations achieve competitive advantage.
false
t or f Benchmarking requires the comparison of your firm to other organizations; it is not appropriate to benchmark by comparing one of your divisions to another of your divisions.
false
t or f If the process average is in control, then the process range must also be in control.
false
t or f In a JIT system, product inspection adds value by identifying defective items.
false
t or f Increasing inventory exposes variability in production processes.
false
t or f JIT is designed to minimize the maximum possible travel distance to any of the locations.
false
t or f Level scheduling means producing at a constant rate, regardless of customer demands.
false
t or f Location decisions are based on many things, including costs, revenues, incentives, attitudes, and intangibles, but not on ethical considerations.
false
t or f Quality is mostly the business of the quality control staff, not ordinary employees.
false
t or f The center-of-gravity method finds the location of a centralized facility, such as a distribution center, that will maximize the organization's revenue.
false
t or f The probability of rejecting a good lot is known as consumer's risk.
false
t or f The purpose of process control is to detect when natural causes of variation are present.
false
t or f The typical full-service restaurant uses a product-focused process.
false
t or f The x-bar chart indicates that a gain or loss of uniformity has occurred in dispersion of a production process.
false
t or f To measure the voltage of batteries, one would sample by attributes.
false
true or false Customer interaction is often high for manufacturing processes, but low for services.
false
true or false Manufacturing now constitutes the largest economic sector in postindustrial societies.
false
true or false SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats.
false
how to find center of gravity with two factors
find each individual x and y and then assign weight to each factor sum product of first factor with weight (x) and then second factor with weight (y)
Which one of the following is NOT a layout tactic in a JIT environment? a. work cells for families of productsb. fixed equipmentc. minimizing distanced. little space for inventorye. poka-yoke devices
fixed equipment
Which one of the following is NOT a layout tactic in a JIT environment? little space for inventory poka-yoke devices work cells for families of products minimizing distance fixed equipment
fixed equipment
Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements? flexible pricing increased productivity lower rework lower warrenty costs lower scrap costs
flexible pricing
Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a:
flowchart
Poka-yoke is the Japanese term for:
foolproof.
center of gravity formula
for both x and y coorinates sumproduct of coordinates total, factor / sum of factor
The usual purpose of an R-chart is to signal whether there has been a: a. gain or loss in dispersion.b. change in the percent defective in a sample.c. change in the central tendency of the process output.d. change in the number of defects in a sample.e. change in the consumer's risk.
gain or loss in dispersion.
A product-focused process is commonly used to produce: low-volume, high-variety products. high-volume products of either high- or low-variety. high-volume, low-variety products. high-volume, high-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? a. market economiesb. more rapid, reliable travel and shippingc. high quality of labor overseasd. high difference in labor coste. ease of capital flow between countries
higher quality of labor overseas
Excess bags of basic commodities such as flour and sugar that are stored in a restaurant's kitchen represent which of the following wastes?
inventory
The cook in a fast-food restaurant knows that 2 hamburger patties and an order of fries should be started for each car that is waiting in line. This is best an example of:
kanban
Characteristics of just-in-time partnerships do NOT include: a. removal of in-transit inventoryb. large lot sizes to save on setup costs and to gain quantity discountsc. long-term contractsd. few supplierse. buyer helps supplier to meet the quality requirements
large lot sizes to save on setup costs and to gain quantity discounts.
If a sample of items is taken and the mean of the sample is outside the control limits, the process is:
likely out of control and the cause should be investigated.
dimensionless method and how to choose best location
location a/b (etc...) to the rating weight power best location is if over 1 drop demoninator if under 1 drop numerator
The reason fast food restaurants often are found in close proximity to each other is: a. they enjoy competition b. location clustering near high traffic flows c. low cost d. availability of skilled labor e. all of the above
location clustering near high traffic flows.
If a sample of parts is measured and the mean of the measurements is outside the control limits, the process is:
out of control and the process should be investigated for assignable variation.
Which of the following phrases best describes process focus? a.low volume, high variety b. finished goods are usually made to a forecast and stored c.operators are modestly skilled d. high fixed costs, low variable costs e.raw material inventories are high relative to the value of the producta
low volume, high variety
Products built in anticipation of demand and sold from inventory are classified as:
make-to-stock
Which of the following are the primary functions of all organizations? marketing, human resources, and finance/accounting marketing, production/operations, and finance/accounting research and development, finance/accounting, and purchasing production/operations, marketing, and human resources sales, quality control, and production/operations
marketing, production/operations, and finance/accounting
The "four Ms" of cause-and-effect diagrams are: material, management, manpower, and motivation. material, methods, men, and mental attitude. material, machinery/equipment, manpower, and methods. named after four quality experts. mentality, motivation, management, and manpower.
material, machinery/equipment, manpower, and methods.
Industrial location analysis typically attempts to: A.maximize sales.B.minimize costs.C.avoid countries with strict environmental regulations.D.focus more on human resources.E.ignore exchange rates and currency risks.
minimize costs.
The causes of variation in statistical process control are:
natural causes and assignable causes.
Up to three standard deviations above or below the centerline is the amount of variation that statistical process control allows for
natural variation.
Which of the following is NOT one of the major categories of costs associated with quality? a. prevention costs b. appraisal costs c. internal failures d. external failures e. none of the above, they are all major categories of costs associated with quality
none of the above
A job shop process requires perfectly predictable customer demands high equipment utilization the same sequence of steps for each job organizing the resources around the process a line flow strategy
organizing the resources around the process
A checklist is a type of:
poka-yoke.
Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon? judicial risk democratic risk legislative risk bureaucratic risk political risk
political risk
Which of the following is NOT a strategic operations management decision? quality layout design inventory price maintenance
price
Which of the following is one of the 10 strategic operations management decisions? advertising debt/equity ratio, depreciation polocy fpr tax refunds pricing process and capacity design
process and capacity design
Three of the four types of processes are: input, transformation, and output. goods, services, and hybrids. process focus, repetitive focus, and product focus. manual, automated, and service. modular, continuous, and technological.
process focus, repetitive focus, and product focus.
Goods made to order are typical of ________ and ________ approaches while goods made to forecast are typical of ________ and ________ approaches. product, mass customization; repetitive, process repetitive, product; mass customization, process product, process; repetitive, mass customization repetitive, process; mass customization, product process, mass customization; repetitive, product
process, mass customization; repetitive, product
High fixed costs and low variable costs are typical of which approachs? product repetitive mass customization process A and C
product and mass customization
Frito-Lay is to ________ focus as Harley Davidson is to ________ focus. process, repetitive repetitive, product product, repetitive product, mass customization process, product
product, repetitive
Which of the following attributes is most typical of a service? A) production and consumption occur simultaneously B) tangible C) mass production D) consistency E) easy to automate
production and consumption occur simultaneously
Which one is NOT an application of lean principle in services? A. securing more inventory to prepare for disruption in production B. scheduling personnel availability at 15 minute increments to meet demand fluctuations C. JIT in food supply management D. improving kitchen layout at McDonald's to drive seconds out of the production process E. inventory sharing among members of the pharmaceutical network
securing more inventory to prepare for disruption in production
Which one is NOT an application of lean principle in services? scheduling personnel availability at 15 minute increments to meet demand fluctuations improving kitchen layout at McDonald's to drive seconds out of the production process JIT in food supply management inventory sharing among members of the pharmaceutical network securing more inventory to prepare for disruption in production
securing more inventory to prepare for disruption in production
Traffic counts and demographic analysis of drawing area are associated with: A) the center-of-gravity method.B) manufacturing location decisions.C) service location decisions.D) the transportation model.E) locational cost-volume analysis.
service location decisions.
A firm can effectively use its operations function to yield competitive advantage through all of the following EXCEPT: constant innovation of new products.setting equipment utilization goals below the industry average.maintaining a variety of product options.customization of the product.speed of delivery.
setting equipment utilization goals below the industry average.
t or f A cause-and-effect diagram helps identify the sources of a problem.
true
op bar
squareroot of (p bar(1-p bar)/ n)
What term is given to those individuals with a vested interest in an organization, including customers, distributors, suppliers, owners, lenders, employees, and community members?
stakeholders
factor rating method formula
sum product function with rating weight and location for each location
How can a reduction of in-transit inventory be encouraged?
supplier location near plants
What is a global network of organizations and activities that supply a firm with goods and services?
supply chain
t or f A kanban system requires that the process has little variability in lead time because shortages impact the entire production system.
true
what to do for dimensionless if the same factor was dropped both times ex. dropped a both times leaving decision between b and c
take the weighted score of a/b and divided it by the weighted score of a/c to get b/c
Tangible costs include which of the following? a) taxes B)quality and attitude of prospective employeesC)availability of public transportationE)climatic conditions
taxes
One of the similarities between process focus and mass-customization is:
the variety of outputs.
Manufacturing cycle time is best defined as the: length of the work shift, expressed in minutes per daytime it takes a unit to move from one workstation to the nexttime between the start of one unit and the start of the next unit time from raw materials receipt to finished product exit
time from raw materials receipt to finished product exit.
Operations management is applicable:
to all firms, whether manufacturing or service.
p bar
total number of defectives/total number inspected (sample times days)
Based on his 14 Points, Deming is a strong proponent of: inspection at the end of the production process.an increase in numerical quotas to boost productivity.looking for the cheapest supplier.training and knowledge.All of these.
training and knowledge.
"Quality lies in the eyes of the beholder" is: a ______ definition of quality.
user-based
Which of the following is most likely to affect the location strategy of a manufacturing firm? appearance/image of the area utility costs competition in the area purchasing power of drawing area parking availability
utility costs
Which one of the following is not a benefit of JIT implementation? A) cost reductionB) variability increaseC) rapid throughputD) quality improvementE) rework reduction
variability increase
