BUSMGT 3130 - Foundations of Operations Management Midterm

List the steps, from first to last, required to determine capacity requirement. Forecast to predict sales Project labor and equipment availabilities Calculate equipment and labor requirements

1. Forecast to predict sales 2. Calculate equipment and labor requirements 3. Project labor and equipment availabilities

There are ____ dimensions depicted on a product-process matrix.

2

How many basic accommodation strategies exist for a service system?

4

Which of the following is an example of a product made with a project layout? A house A refrigerator A computer A car

A house

Which of the following is not a way to reduce process flow time? Reduce interruptions Change sequence of activities Add buffer to the process Perform activities in parallel

Add buffer to the process

Modern companies need to focus on which aspect of the triple bottom line?

All of them: social, economic, and environmental

Which of the following is an example of a goods-producing business? A hospital A call center A university An automobile manufacturer

An automobile manufacturer

Which of the following type of work flow is appropriate when production volume is high? Project layout Assembly line Workcenter Manufacturing cell

Assembly line

Which of the following describes a resource that limits the capacity or maximum output of a process? Buffer Starving Bottleneck Blocking

Bottleneck

____ is the output that a system is capable of achieving over a period of time.

Capacity

Which of the following is not a production management tool used in planning and designing manufacturing process flow? Control charts Route sheets Assembly charts Process flow charts

Control charts

The variation introduced by the customer into a service process causes a trade-off between which of the following? Cost and effort Cost and productivity Cost and quality Cost and efficiency

Cost and quality

Which of the following are reasons for the volatility of demand on a service delivery system? Customer interaction Intangibility Customer behavior Customer choice

Customer interaction Intangibility Customer behavior

In a process flow chart a diamond represents which of the following? Storage area Tasks Flow Decision point

Decision point

Which of the following is not a step required to make a good? Sourcing Delivering Making Decoupling

Decoupling

Which of the following is not a major activity in a typical strategic planning process? Define capabilities Develop the strategy Plan operations and supply Translate the strategy Implement the strategy

Define capabilities Implement the strategy

A service guarantee can be used for service improvement, but it can also be used during which of the following stages? Initiation Testing Design Delivery

Design

Which of the following is not a strategic use of the service-system matrix? Competitive advantage Determining worker skills Integrating operations and marketing Service delivery options

Determining worker skills

The performance metric that measures a ratio of the actual output of a process relative to some standard is which of the following? Operation time Flow time Velocity Efficiency

Efficiency

True of False: Each activity in the strategic planning process is conducted only once a year.

False

True or False: An operations and supply chain strategy is independent of the corporate strategy.

False

True or False: Service systems with a high degree of customer contact are easier to manage and control.

False

True or False: Stakeholders are individuals or companies that legally own a portion of the company and are not influenced by the actions of that company.

False

True or False: What is considered an order qualifier today will be an order winner in the future.

False

Which of the following are the basic elements of a process flowchart? Flows Storage areas Decision points People Tasks

Flows Storage areas Decision points Tasks

Which of the following are ways to convince customers that the self-service approach to service design is good for all? Sending coupons to promote deals Follow-up Developing customer trust Promoting benefits of cost and convenience

Follow-up Developing customer trust Promoting benefits of cost and convenience

Which of the following is not a strategy associated with operational effectiveness? Process redesign Quality assurance Hiring more employees Technology investments

Hiring more employees

Which of the following is a measure of the costs of goods sold divided by the total average value of inventory? Total average value in assets Inventory turn Total average value in inventory Days of supply

Inventory turn

What term describes the function of specifying work activities of an individual or a group?

Job design

What term describes an attempt to adjusting a specialized job to make it more interesting to the job holder?

Job enrichment

Which of the following is not used in a break-even calculation? Fixed costs Variable costs Unit price Labor costs

Labor costs

Which of the following states a mathematical relationship between throughput rate, flow time, and the amount of work-in-process inventory? Little's Law Inventory turn Delphi Method Days of supply

Little's Law

Which of the following is not a feature of a service package? Implicit services Information Explicit services Location

Location

Which of the following is not an element of the service triangle? Service Strategy Employees Maintenance Customer

Maintenance

A process that is activated only in response to an actual order is known as which of the following? Make-to-order Engineer-to-order Assemble-to-order Make-to-stock

Make-to-order

The issue of balancing the level of finished inventory against the level of service to the customer occurs in which type of firm?

Make-to-stock

Which type of firm invests in lean manufacturing programs in order to improve customer service levels for a given inventory investment?

Make-to-stock

Which layout uses a dedicated area where products that are similar in processing requirements are produced?

Manufacturing cell

Order winners and qualifiers represent a link between Operations and what other business function?

Marketing

A company known for delivering high-volume standardized services is...

McDonalds

Which of the following is not one of the reasons for work measurements? Measure time in system Provide benchmarks Measure worker performance Allocate capacity

Measure time in system

Which of the following terms describes a process that has several groups of activities linked through flows? Single-stage Multi-stage Single-channel Multi-channel

Multi-stage

When calculating productivity, if you compare the output to a group of inputs (but not all inputs), you are conducting which type of productivity measure?

Multifactor measure

Which of the following competitive dimensions relates to environmental impact? Other product-specific criteria Delivery reliability New-product introduction speed Cost

Other product-specific criteria

Which approach to service design empowers employees to be decision makers with regards to pleasing the customer?

Personal-attention approach

Which of the following are indirect observational methods for measuring work and setting standards? Time study data Work sampling Predetermined motion-time data Element data

Predetermined motion-time data Element data

Efficiency is the focus of which of the following approaches to service design? Self-service approach Production-line approach Personal-attention approach Customer-attention approach

Production-line approach

Which of the following is not one of the basic types of customer-introduced variability? Arrival variability Effort variability Purchase variability Capability variability

Purchase variability

What tool involves assessing the probability or relative frequency of an event against the aggregate severity of the loss?

Risk mapping

Which of the dimension of the triple bottom line considers such stakeholders as employees, the local community and other entities that are impacted by the firm's existence?

Social

Which of the following describes the step where parts are produced from one or more suppliers? Sourcing Delivering Making Decoupling

Sourcing

Which of the following processes involves the selection of suppliers? Making Returning Sourcing Delivering

Sourcing

Which of the following is not one of the basic accommodation strategies for handling customer-introduced variability into a service system? Uncompromised Super Low-cost Classic

Super

Which of the following are the applications of poka-yokes to services or the Three T's? Tangible Threat Task Treatment

Tangible Task Treatment

True of False: An operations strategy must consider the risk in a supply chain.

True

True or False: A process is made up of one or more activities that transform inputs into outputs

True

True or False: Carrying finished goods inventory is more expensive than carrying raw material inventory.

True

True or False: Effective management of customer-introduced variability requires a service firm to influence customer behavior.

True

True or False: Many product offerings are a combination of goods and services

True

True or False: Operations and Supply chain management is focused on the systems that create and deliver an organization's products and services

True

True or False: Operations effectiveness is related directly to the costs of doing business.

True

True or False: The customer order decoupling point is where inventory is positioned in the supply chain.

True

True or False: The first step in analyzing any production system is to map the flow and operations.

True

True or False: The first step in analyzing the flow of material through a production process is known as process mapping.

True

True or False: The objective of job design structures is to meet the requirements of the organization and satisfy workers' personal requirements.

True

Which of the following is not of the characteristics of a well-designed service system? Cost-effective User-friendly Unstructured Robust

Unstructured

Which of the following terms describes the ratio of the time that a resource is activated, relative to the time that it is available for use? Utilization Cycle time Throughput time Flow time

Utilization

Which of the following is an element of a good service guarantee? I. unconditional (no small print) II. meaningful to the customer III. easy to understand IV. painless to invoke V. all of the above

V. all of the above

Which of the following is not one of the approaches to delivering a service? Self-service approach Production-line approach Personal-attention approach Word-of-mouth approach

Word-of-mouth approach

What is the term that describes the action of setting time standards for a job?

Work measurement

When work is infrequent or entails a long cycle time, which of the following is the tool of choice? Work sampling Motion-time data Element data Time study

Work sampling

A tool that shows how a company's strategy is delivered through a set of tailored activities is called a(n)...

activity-system map

The term that refers to the average number of customers that come to a facility during a specific period of time is known as the...

arrival rate

The ratio of revenue to total assets is known as...

asset turnover

A process in which one company studies the processes of another company for best practices is known as...

benchmarking

Comparing the metrics of one company to another is often referred to as ____.

benchmarking

A standard approach to choosing among alternative processes or equipment is known as...

break-even analysis

Which of the following is not a step in the risk management process? develop plans to mitigate risk create an activity-system map identify sources of potential disruptions assess the potential impact of the risk

create an activity-system map

The term that refers to the physical presence of the customer in the system is known as...

customer contact

The entries within the service-system matrix list the ways in which a service can be ____.

delivered

Doing the things that will create the most value for the customer is known as...

effectiveness

Doing something at the lowest possible cost is known as...

efficiency

Which of the following is not an efficiency measure used by Wall Street asset turnover receivables turnover inventory turnover employee turnover

employee turnover

Which of the following is not a type of process in the supply chain? sourcing evaluating making planning

evaluating

Each of the following is one of the five differences between services and goods except intangible customer interaction homogeneous package of features perishable

homogeneous

The ratio of cost of goods sold to average inventory value is known as...

inventory turnover

On a service blueprint, the line that shows the distinction between the high customer aspects of the service and those activities that the customer does not see is known as the...

line of visibility

The type of service where customers interact with one another in a server-moderated environment is known as...

mixed virtual customer contact

Productivity is defined as the ratio of...

outputs to inputs

A ____ is any part of an organization that takes inputs and transforms them into outputs.

process

Building service activities into a firm's product offering is known as...

product-service bundling

The type of service where companies enable customers to interact with one another in an open environment is known as...

pure virtual customer contact

Supply chain disruption risks are...

random and difficult to predict

All of the following are competitive dimensions that form a firm's competitive position except... retail store delivery speed flexibility cost

retail store

The dominant issue in service design is...

service capacity

When a company seeks to match the benefits of a successful position and maintain their current position in the marketplace it is attempting a(n) ____ approach.

straddling

Which of the following are the aspects of the service encounter that Chase and Dasu suggest applying behavioral concepts? the flow of the service experience judging customer arrivals judging encounter performance

the flow of the service experience judging encounter performance

When you want to express the ration of all outputs to all inputs, you should use a ____ productivity measure.

total

The term that defines when some activities are incompatible and that necessitates less of another activity is...

trade-off

The attractiveness of a product relative to its cost is known as...

value