Operations Management

What is Raissa's cookie company revenue if she sells 200 chocolate chip cookies at $1.50 each?

$300 Explanation: 200*1.50

What is the maximum variable cost per unit a firm to break even with a fixed cost of $400,000.00 if they project they can sell 25,000 units at a selling price of $75.00?

$59 Explanation: Let x be the variable cost. Hence, for breakeven, Revenue= Cost 75*25000=400000 + 25000x

What is it called when the production of a good is broken down into a series of small tasks, each performed by a different worker?

Division of labor

What was Frederick W. Taylor's background?

Engineering

According to Dr. Taguchi's view of quality,

as conformance values move away from the target, loss increases as a quadratic function.

Decisions within the operations management function must

be linked to the other business functions.

Studying business practices of companies considered "best in class" is called

benchmarking

A chart used in TQM that identifies potential causes of particular quality problems is called a

cause-and-effect diagram.

Order winners and qualifiers

change over time.

One common definition of quality is __________, which focuses on measuring how well the product or service meets targets and tolerances determined by its designers.

conformance to specifications

Compared to past robotic systems, the new generation of intelligent assembly robots

cost less

The four categories of competitive priorities are

cost, time, quality, and flexibility.

When designing a service concept, the service package should target the wants of

customers.

The expected operational life of a product is called its

durability

TQM team meetings take place

during time in the workday set aside for them.

If Anna's Cookies can make 200 batches of cookies using $40 of labor and $150 of materials, what is their productivity?

1.05 batches/$ Explanation:

If inputs increase by 30% and outputs decrease by 15%, what is the percentage of change in productivity?

34.62% decrease Explanation: input increased by 30%= 100%+30%=1.30 output decreased by 15%= 100%-15%=0.85 Productivity= output/input =0.85/1.30=0.6538 =1-0.6538=.3462*100 =34.62%

If Joe's Diner serves 150 meals in one day using 3 kitchen staff, what is the kitchen staff's daily productivity?

50 meals/staff Explanation: Productivity= output/input =150/3

_________ is a grouping of physical, sensual and psychological benefits that are purchased together as part of the service.

A service package

What must operations management achieve in order to be successful?

Add value during the transformation process.

In a pure service, what is the term for the segment of the operation that has low customer contact?

Back Room

Which of the following process types would be best for a bakery that needs a high degree of specialization?

Batch

___________ is the longest task in the process.

Bottleneck

Which technique is based on computing the quantity of goods a company needs to sell to just cover its costs?

Break-even analysis

_______ is a system that uses computer graphics to design new products.

CAD

Which of the following statements is TRUE for a company investing in technology?

Companies that invest in new technologies tend to improve their financial position over those that do not; and selected technology needs to support the organization's competitive priorities, core competencies, and add to its competitive advantage.

Which of the following is best defined as the unique strengths of a business?

Core competencies

Which software solution allows firms to collect customer-specific data?

Customer relationship management

_____________ is a series of guidelines to follow in order to produce a product easily and profitably.

Design for manufacture

Which one of these refers to reducing the number of parts and features of the product whenever possible?

Design simplification

What refers to the use of common and interchangeable parts?

Design standardization

Every business is managed through what three major functions?

Finance, marketing, and operations management

Which of the following competitive priorities typically requires the use of more general-purpose equipment?

Flexibility

Which of the following are the steps in the product design process?

Idea development, product screening, preliminary design & testing, and final design

Which type of technology has had a profound impact on business?

Information technology

What processes are used to produce a variety of products with different processing requirements in lower volumes?

Intermittent

What type of operations focus on products in the early stage of the life cycle?

Intermittent

What are the stages of the product life cycle?

Introduction, growth, maturity, and decline

What is the decision made in capacity planning for operations management?

It determines how large a facility should be.

What is fitness for use?

It evaluates how well the product performs for its intended use.

Why is the human relations movement a major historical development in operations management?

It focused on understanding human elements of job design, such as worker motivation and job satisfaction.

What is the purpose of a company's mission?

It is a statement defining what business an organization is in, who its customers are, and how its core beliefs shape its business.

Which of the following is true of 3D printing?

It makes desktop manufacturing possible.

During the 1970s and 1980s, firms from which country provided the MOST serious competitive threat to U.S. companies?

Japan

Which term describes the approach of giving workers a larger portion of the total task to do?

Job enlargement

Johnny employs five painters. He collected the following data from last week. Painter Hours Walls Completed Julius 40 60 Margaret 32 68 Dave 50 78 Suzy 36 70 Fawn 44 74 Which painter was least productive last week?

Julius

Which of the following is NOT a cause of the bullwhip effect?

Just-in-time ordering practices

What takes a total system approach to creating efficient operations?

Lean systems

In environmental scanning, political trends include which of the following?

Local, national, and international political climate

Which strategy produces products to customer specification after an order has been received?

Make-to-order

Which business function is responsible for sales, generating customer demand, and understanding customer wants and needs?

Marketing

What three factors must be considered when developing a business strategy?

Mission, environmental scanning, and core competencies

What type of machine is controlled by a computer and can do a variety of tasks, such as drilling, boring, or turning parts of different sizes and shapes?

Numerically controlled

What are quasi-manufacturing organizations?

Organizations that have some characteristics of both manufacturing and services.

Who coined the saying "quality is free"?

Philip Crosby

Which of the following represents two process design tools?

Process flow analysis and flowcharts

___________ is the process of deciding on the unique characteristics and features of the company's product.

Product design

What are the three primary types of technology?

Product technology, process technology, and information technology

What is a make-to-stock strategy?

Products are produced for immediate delivery.

Which of the following choices of process types shows the degree of product standardization from lowest to highest?

Project, batch, line, continuous

Which tool is used for translating the voice of the customer into specific technical requirements?

Quality function deployment

What do you call companies that have low customer contact and are capital intensive, yet provide a service?

Quasi-manufacturing organizations

_______ is a wireless technology that uses memory chips equipped with radio antennas attached to objects used to transmit streams of data.

RFID

What type of operations focus on products in the late stage of the life cycle?

Repetitive

Which of the following are examples of pure services?

Restaurants, schools, and hospitals

____________ is the process of establishing all the characteristics of the service.

Service design

Productivity in the service sector faces what challenge?

Services produce intangible products.

The operations strategy will specify the design and use of the organization's resources into which two categories?

Structure and infrastructure

What service design is used to develop a production-line approach to a service?

Substitute technology for people

Which is true about tactical decisions?

They are bound by strategic decisions.

Which is true about strategic decisions?

They are long-term in nature.

What is a philosophy that aggressively seeks to improve product quality by eliminating causes of product defects and making quality an all-encompassing organizational philosophy?

Total quality management

__________________ is the philosophy that seeks to improve quality by eliminating the causes of product defects.

Total quality management

If a company's competitive priority is lowest cost, which of the following is TRUE?

Trade-offs in the other competitive priorities are required.

Productivity is

a measurement of how well a company uses its resources.

Efficiency is

a measurement of performance relative to a standard.

All product designs begin with

an idea.

Big data analytics refers to the

application of mathematics and statistics to large volumes of structured and unstructured data to gain unprecedented business insights.

Costs of quality inspections, testing, auditing, and test equipment are examples of _____________ costs.

appraisal

Warranty claims, customer complaints, and costs of litigation are examples of __________ costs.

external failure

Cross-functional decision making replaces ___________ by having coordinated interaction and decision making among different functions.

functional silos

The cost of defect correction

is less costly the earlier defects are found.

Of all the business functions, operations

is the most diverse in terms of tasks performed.

The Japanese term for continuous improvement is

kaizen

Enterprise resource planning systems can be described as

large, sophisticated software.

The ease with which the product can be made is its

manufacturability

The primary difference between operational efficiency and strategy is that

operational efficiency is performing tasks well or better than the competitors, while strategy is a plan for competing in the marketplace.

Operational efficiency is

performing operations tasks well.

Included in prevention costs are

planning costs.

Intermittent operations are designed to focus on

producing lower volumes of products with differing characteristics.

Building a bridge over the Mississippi River for a new highway uses a _______ process.

project

Highly labor intensive services are called

pure services.

Vertical integration decisions are a better strategic decision for

repetitive operations.

Concurrent engineering is

simultaneously designing the product and the process.

Throughput time is

the average amount of time a product takes to move through the system.

Operations management is

the business function that plans, organizes, coordinates, and controls the resources needed to produce a company's goods and services.

The technology a company acquires needs to support

the organization's competitive priorities.

Electronic commerce is

the use of the Internet to conduct business activities.

Highly successful firms develop a business strategy that takes advantage of

their core competencies or strengths.

To meet customer needs, marketing managers need to

understand and know what operations can produce and what due dates it can and cannot meet.