3020 Midterm
multifactor productivity
output/(labor+materials+overhead), output/(labor+energy+capital)
Productivity
output/input
Which of the following is not a characteristic that distinguishes services from goods? A. Service jobs are unskilled B. A service is intangible C. Services are perishable D. Services are heterogeneous E. None of these
. Service jobs are unskilled
Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1440 and the required output per day in units is 2000? A. 0.72 B. 1.388 C. 250 D. 500 E. Cannot be determined from the information above
.72
14. You have just determined the actual number of workstations 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 that tasks required on the line is 60 minutes. Which of the following is the correct value for the resulting line's efficiency? A. 0.500 B. 0.650 C. 0.750 D. 0.850 E. None of these
.750
For an infinite queuing situation, if the arrival rate for loading trucks is 5 trucks per hour, what is the mean time between arrivals? 0.1 hours 0.2 hours None of these 5 hours 2.5 hours
0.2 hours
Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1440 and the required output per day in units is 2000? 500 1.388 Cannot be determined from the information above 0.72 250
0.72
Which of the following is not considered a major work flow structure? Assembly line Project Continuous Flow Fabrication Work Center
Fabrication
You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure. The cycle time of the line is 5 minutes and the sum of all that tasks required on the line is 25 minutes. Which of the following is the correct value for the resulting line's efficiency? 0.973 0.990 0.833 None of these 0.500
0.833
If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate?
1.25
The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio? 0.700 1.428 1.000 None of these 0.411
1.428
Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4, 6, 7, 2, 6, and 5 minutes, and the cycle time is 10 minutes?
3
Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7, 4, 7, 8, 9, 4, 3, and 6 minutes, and the cycle time is 8 minutes? A. 3 B. 5 C. 6 D. 8 E. None of these
6
54a Planning service capacity involves consideration of the mean arrival rate and the mean service rate. When the mean arrival rate exceeds or gets too close to the mean service rate the quality of the service declines. The operating point is the ratio of mean service rate to mean arrival rate. According to the text, what is the best operating point for the typical service operation?
70
Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units? 9.6 Cannot be determined from the information above 0.104 480 50
9.6
A project starts out as which of the following? A latest-start-time estimate A Gantt chart A Statement of Work A series of milestones Critical Path Method (CPM)
A Statement of Work
What is the triple bottom line?
A change from being primarily financially driven to considering economics, environment, and social responsibility
Some of the advantages of a functional project where the project is housed in a functional division include which of the following? Team pride, motivation, and commitment are high The project manager has full authority over the project None of these Needs of the client are secondary A team member can work on several projects
A team member can work on several projects
A difference between project and continuous flow categories of process flow structures is which two of the following? A. The size and bulk of the product B. Discrete parts moving from workstation to workstation C. Degree of equipment specialization D. Being a "Virtual Factory" E. Profit per unit
A. The size and bulk of the product
What is an important difference between capacity planning in services as contrasted to capacity planning in manufacturing operations? Time Location Demand volatility Utilization impacts service All of these
All of these
What are core goods?
Appliances Cars Data storage
Those that combine a number of pre assembled models to meets specifications
Assemble to order
Which of the following basic types of process structures is one which equipment or work processes are arranged according to the progressive steps by which the product is made? Manufacturing cell Workcenter Project Continuous process Assembly line
Assembly line
What is a work breakdown structure? A. A list of the activities making up the higher levels of the project B. A definition of the hierarchy of project tasks, subtasks, and work packages C. A depiction of the activities making up a project D. A Gantt chart E. A structure that is incompatible with the Critical Path Method
B. A definition of the hierarchy of project tasks, subtasks, and work packages
The way to build in greater flexibility in your workers is to do which of the following? A. Pay higher wages to motivate a willingness to do a variety to tasks B. Provide a broader range of training D. Provide a wide variety of technology to augment workers skills E. Institute a "pay for skills" program F. Use part-time employees with specialized skills as needed
B. Provide a broader range of training
Inventory Turnover
COGS / avg inventory
Having the ability to rapidly increase or decrease production loads or to shift production capacity from one product to another
Capacity flexibility
Group of similar products are produced
Cell
What is operations effectiveness?
Core business processes needed to run a business
A major competitive dimension that forms a company's strategic operational competitive position in their strategic planning is which of the following? Activity-system mapping Straddling Cost or price Automation Focus
Cost or price
What is a order winner?
Criterion that differentiates the products or services on one from from another
WHich of the following are not listed in the text as jobs in OSCM? Project manager Call center manager Department store manager Hospital administrator Data center manager
Data center manager
Which of the following are defined as core goods? Airlines Hotels Chemicals Data storage systems
Data storage systems
Which of the following models uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step? Probability indexing Johnson's sequencing rule Decision trees Activity System Maps Decision mapping
Decision trees
What is effectiveness?
Doing the right things to create the most value for your customer
You are looking at a chart that has the terms BCWS, BCWP, and AC indicating lines on the chart. What kind of chart are you looking at?
EVM
What does "EVM" stand for?
Earned Value Management-a technique for measuring project progress objectively.
Which of the following is not a measure of operations and supply chain management efficiency used by wall street? Revenue per employee inventory turnover earnings per share receivable turnover asset turnover
Earnings per share
Idea that as the plant gets larger and volume increases the average cost per unit output drops
Economies of scale
The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as:
Economies of scope
The placement of which of the following is not determined by production process organization decisions? Emergency exits Departments Workgroups Workstations Machines
Emergency exits
What is the manufacturing strategy paradigm?
Emphasized how manufacturing executives could use their factories as weapons in strategy
True or false A make-to-order firm will work with the customer to design the product, and then make it from purchased materials, parts, and components.
False
True or false A firm's business practices toward its labor force pertain mainly to the economic aspect of the triple bottom line concept.
False
True or false Automobiles and appliances are classified as "pure goods."
False
True or false In a partial measure of productivity the denominator of the ratio would include all resources used or all inputs.
False
True or false Infrastructure decisions within operations strategy include the selection of the appropriate technology, the role of inventory, and the location of facilities.
False
True or false Sustainability is the ability to maintain profits in a system.
False
True or false The closer the customer is to the customer order decoupling point the longer it takes the customer to receive the product.
False
True or false The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio it is called straddling.
False
True or false: Service innovations can be patented
False
true or false Work center layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements.
False
Managing customer touch points becomes a concern under current issues in OSCM when: Complaints arise about shaking hands with customers in cultures that is frowned upon Senior executives fail to recognize the contribution OCSM can make to their success Firms striving to become superefficient begin to skimp on staffing and training with customer service A firm has a workforce trained in specifically diverse situations and the correct level of service Firms market global products
Firms striving to become superefficient begin to skimp on staffing and training with customer service
What are pure goods?
Food products Chemicals Mining
What are core services?
Hotels Internet Airlines
When deciding to add capacity to a factory which of the following need not be considered Maintaining system balance The frequency of capacity additions Use of external capacity Immediate product demand Availability of raw materials
Immediate product demand
Which of the following is not a queue discipline discussed in the textbook? Best customer first Limited needs First come, first served Shortest processing time Last in, first out
Last in, first out
In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following? Low degree of customer/server contact None of these High production efficiency Low production efficiency Low sales opportunity
Low production efficiency
Describe JIT
Major production breakthrough By Japanese Achieve high volume production with minimal inventories
What are operations?
Manufacturing and services that are used to transform the sources employed by a firm into desired products
Buying a ticket for a college football game where there are multiple windows to buy the ticket at features which type of queuing system line structure? None of these Multichannel, single phase Single channel, multiphase Multichannel, multiphase Single channel, single phase
Multichannel, single phase
What is a partial measure of activity?
Output/ materials
Total measure of productivity
Outputs / Inputs ...or... goods and services produced / All resources used
The capacity focus concept can be put into practice through a mechanism called which of the following?
PWP Plant within a plant
What is a order qualifier?
Permits a firms products to even be considered as possible candidates for purchase
PERT is an abbreviation for which of the following methodologies? A. Product Evaluation, Result, and Treatment B. Programming and Evaluation Realization Technology C. Program Evaluation and Review Technique D. Process Evaluation and Review Technology E. It is a name, not an abbreviation for anything
Program Evaluation and Review Technique
Innovation and speed are priorities small and focused
Pure project
Value=
Quality/ price
Describe total quality control
Seeks to eliminate causes of potential defects
Which of the following is a suggestion for managing queues that is mentioned in the textbook? Segment the customers Assure customers that the wait is fair and inform them of the queue discipline Tell people in the queue that each will be served as soon as possible Put up a serpentine lane to keep people from jumping ahead in line Use humor to defuse a potentially irritating situation
Segment the customers
Which of the following is not a way that operations and supply processes are categorized? Making Returning Planning Delivering Selecting
Selecting
Which of the following is a characteristic that can be used to guide the design of service systems? Services are all similar Quality work means quality service Services cannot be inventoried Services businesses are inherently entrepreneurial Even service businesses have internal services
Services cannot be inventoried
What are differences between services and goods?
Services cannot be physically weighed Service requires interaction services are time dependant and perishable
What is operations and supply chain strategy?
Setting broad policies and plans for using the resources of a firm and must be integrated in corporate strategy
Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations? Intermediate-range Long-range Short-range Current Upcoming
Short-range
When balancing an assembly line, which of the following is not a way to reduce the longest task time below the required workstation cycle time? Use a more skilled worker Assign a roaming helper to support the line Upgrade the equipment Split the task between two workstations Speed up the assembly line transfer mechanism
Speed up the assembly line transfer mechanism
What is straddling?
Straddling occurs when a company seeks to match the benefits of a successful position while maintaining its existing position.
What is involved in capacity planning?
System balance frequency of capacity additions external sources o operation and supply capacity Determining capacity requirements Capacity cushion
According to Little's Law, which of the following can be used to estimate work-in-process inventory? Process time/Cycle time Set up time/Throughput rate Process velocity/Flow time Throughput rate times Flow time Value added time/Process velocity
Throughput rate times Flow time
Which of the following is a suggestion for managing queues presented in the textbook? Tell customers that the line should encourage them to come during slack periods Give each customer a number Train your servers to be friendly Periodically close the service channel to temporarily disperse the line Use humor to defuse a potentially irritating situation
Train your servers to be friendly
True or false A project layout is characterized by a relatively low number of units produced in comparison with process and product layout formats.
True
True or false One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.
True
True or false Poka-Yokes are procedures that block the inevitable mistake from becoming a service defect.
True
True or false An operations and supply chain strategy must be integrated with the organization's corporate strategy.
True
True or false Earned Value Management (EVM) has the capability to combine measurements of scope, schedule, and cost in a project.
True
True or false Engineer-to-order firms will work with the customer to design the product, and then make it from purchased materials, parts, and components.
True
True or false In designing a production layout, a flexible line layout might have the shape of a "U".
True
True or false Just in time (JIT) production was a major breakthrough in manufacturing philosophy pioneered by the Japanese.
True
True or false Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.
True
True or false Operations and supply management changes constantly because of the dynamic nature of competing in global business and the constant evolution of information technology.
True
True or false Process design includes selecting the appropriate technology, sizing the process over time, determining the role of inventory in the process, and locating the process.
True
True or false The closer the customer is to the customer order decoupling point the more quickly the customer receives the product.
True
True or false The product-process matrix shows the relationship between process structures and product volume and variety characteristics.
True
True or false The term "assembly line" refers to progressive assembly linked by some material handling device.
True
True or false The volume requirements for the product are one determinant of the choice of which process structure to select.
True
True or false: Activity system maps show a company's strategy is delivered through a set of tailored activities
True
True or false: Efficiency means doing something at the lowest possible cost.
True
What are pure services?
University Investment Medical
Defines the hierarchy of project tasks, subtasks and work packages
Work breakdown structure
Job shop a process with great flexibility to product a variety of projects lower volume
Workcenter
Which of the following is a basic type of process structure? Product matrix Process matrix Process flow diagram Manual assembly Workcenter
Workcenter
You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values. What can you conclude? Only one path is optimal You have incorrectly performed the analysis You have multiple critical paths The project will not be completed by the desired time More than one path is optimal
You have multiple critical paths
What is benchmarking?
a process by which a company compares its performance with that of high-performing organizations
Recevables Turnover
annual credit sales/ average accounts receivable
At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%; the expected benefit of selecting machine B is $80,000 with a probability of 50% and the expected benefit of selecting machine C is $60,000 with a probability of 75%? Machine A Machine B Machine C You would be indifferent between machines A and C You would be indifferent between machines A and B
c
What is efficiency?
doing something at the lowest possible cost
True or false: Efficiency means doing the right things to create the most value for the company.
false
True or false Operations and supply chain processes can be conveniently categorized as planning, sourcing, making and delivering.
false, also returning
A structure where team members are assigned from the functional unit dedicated to project
functional project
What are shareholders?
individuals or other businesses that have invested their money to provide capital for a company
Capacity planning involving acquisition or disposal of fixed assets such as buildings, equipment or facilities is considered as which one of the following planning horizons?
long range
You have been placed in charge of a large project. Shortened communication lines are required to ensure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management structure should you use in this situation? Functional Project Pure Project Task force PERT Matrix Project
pure projuct
Asset Turnover
revenue (or sales)/ total assets
The amount of time that a task can be delayed without delaying the entire project
slack time
There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes? Trust Teamwork Time Task Talent
task
What is sustainability?
the ability of the environment to meet the needs of organisms that live there over long periods of time
What are stakeholders?
the people whose interests are affected by an organization's activities
In a Gantt chart the horizontal axis is usually which of the following? Profit Cost Time Milestones Activities
tim
OSCM is a functional field of business with clear line management responsibilities
true
True or false In contrast to careers in finance and marketing, careers in OSCM involve hands-on involvement with people and processes.
true
true or false A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective.
true