MGT 295

To show the amount of time associated with an activity, as well as the sequence of activities, a project manager could use a ____________ chart

Gantt

Which of the following is not one of the differences between planning capacity for services versus manufacturing?

Cost

The point in the supply chain where inventory is positioned to allow the preceding processes to operate independently is the

customer order decoupling point.

project manager

planning, directing, controlling

Place the steps associated with the production process into order (from first to last). making sourcing delivering

sourcing making delivering

intermediate range

the next 6 to 18 months

Slack

time and activity can be delayed with out delaying entire project

Percentage of projects that are behind schedule or over budget

70%

SVC

Customer served

over capacity is a ________ thing

bad

decision tree

visual or graphic

time

when does the customer need it? Now

Strategy of Work (SOW)

-document objectives -what's to be done -key milestones -metrics -schedule start/stop

project

-set of unique activities -end goal -time frame -1X

capacity strategy

1. Proactive (lead) 2. Wait and see (follow) 3. Tracking

capacity requirements

1. forecast 2. capacity utilization - calculate 3. prospect over planning horizon

Last year a firm had an average inventory of $1,500,000 and the cost of goods sold was $3,750,000. What was the days-of-supply last year?

146

Last year a firm had an average inventory of $1,500,000 and the cost of goods sold was $3,750,000. What was the inventory turn last year?

2.5

A machine has a best operating level of 1,000 units per day. Yesterday, the machine produced 950 units. What was the capacity utilization rate yesterday?

95%

Which of the following are attributes that are used to define a project? A series of related jobs Requires a significant time period to perform Directed toward some major output Has no specific beginning or end

A series of related jobs Requires a significant time period to perform Directed toward some major output

Pure project

A structure for organizing a project where a self-contained team works full time on the project.

Matrix project

A structure that blends the functional and pure project structures. Each project uses people from different functional areas. A dedicated project manager decides what tasks need to be performed and when, but the functional managers control which people to use.

Functional project

A structure where team members are assigned from the functional units of the organization. The team members remain a part of their functional units and typically are not dedicated to the project.

Lead Strategy

Capacity in excess of expected demand (capacity cushion) -demand volatility -service organization

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

Customer interaction Customer behavior Intangibility

Which of the following is not a step required to make a good?

Decoupling

Cost Variance (CV)

EV - AC

Schedule variance (SV)

EV - PV

CPI

EV/AC

SPI

EV/PV

A schedule that lists all activities by their early start times is a(n)?

Early start schedule

Which technique combines measures of scope, schedule and cost for evaluating project progress?

Earned value management

True or false: Service capacity is subject to less volatile demand fluctuations.

False

True or false: When plant production becomes too small, diseconomies of scale may occur.

False

Work Breakdown Structure (WBS)

Hierarchy of all things that need to happen -coordinating medium -graphic -foster agreement

Which of the following contribute to the development of diseconomies of scale? Higher capacity equipment that requires more maintenance support. Overproduction to keep equipment busy. Equipment that efficiently produces high volumes of product. New equipment that requires less employees to operate.

Higher capacity equipment that requires more maintenance support. Overproduction to keep equipment busy.

Which of the following type of service organization should aim for low utilization because of the high level of uncertainty? Amusement Parks Restaurants Hospitals

Hospitals

Little's law relates inventory, throughput rate, and flow time as

Inventory = Throughput rate x Flow time

A project has how many critical paths?

It is possible to have multiple critical paths.

Every company decides between these two strategies

Proactive and Wait & see

A computer manufacturer has a large order and decides to purchase extra hard drives that will be required from another company at a lower cost rather than increase their capacity; this is an example of?

Outsourcing

What are the two strategies an organization can use when adding in-house capacity is not cost effective?

Outsourcing and shared capacity

AC

cumulative actual cost of the project

Which of the following are advantages of the matrix project structure? Resource duplication is minimized. Team members are less concerned about their future employment after the project is completed. Team members report to two bosses, and the functional manager will be listened to first. There is enhanced communication between functional areas.

Resource duplication is minimized. Team members are less concerned about their future employment after the project is completed. There is enhanced communication between functional areas.

What are some temporary measures to correct supply chain system imbalance? Scheduling employees for overtime. Leasing equipment to increase throughput. Subcontracting for increased capacity. Change customer orders to what is available.

Scheduling employees for overtime. Leasing equipment to increase throughput. Subcontracting for increased capacity.

Gantt Chart

Shows in a graphic manner the amount of time involved and the sequence in which activities can be performed. Often referred to as a bar chart.

When breaking down a project into smaller elements, what terms are used to describe the subdivisions?

Tasks and Subtasks

Which of the following is NOT an advantage of the functional project structure?

Team members report to a dedicated project manager.

Earn Value Management (EVM)

Technique that combines measures of scope, schedule, and cost for evaluating project progress

Critical Path Method (CPM)

The longest path through the network diagram, indicating the shortest amount of time in which a project can be completed

Capacity

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

Critical Path (CP)

The sequence(s) of activities in a project that form(s) the longest chain in terms of their time to complete

True or false: Another name for the learning curve is the experience curve.

True

True or false: Capacity planning in the services industry has added pressure on location requirements versus that with manufacturing.

True

True or false: The presence of the customer in a service delivery system increases the volatility of demand.

True

True or false: Typically, there is a trade-off where quicker response to customer demand comes at the expense of greater inventory investment.

True

True or false: When the size of a plant becomes too large, diseconomies of scale become a problem.

True

Mfg

Units produced

Planned Value (PV)

Valuation of each activity work. In the case of the project that generate revenue

Which of the following is a term used to refer to pieces of work that consume time?

activity

Utilization

actual output/design capacity

Efficiency

actual output/effective capacity

the early finish time of a task is calculated by ________

adding the early start and expected duration.

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

Firms that combine a number of preassembled modules to meet customers' specifications are called

assemble-to-order.

Crash

basic assumption in minimum cost scheduling

The output level where average unit cost is minimized is known as the

best operating level.

Effective capacity

break/set up/lunch

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

capacity

Capacity in excess of expected demand is known as

capacity cushion

The ability to rapidly increase or decrease production levels, or shift from one product or service to another is known as

capacity flexibility

Strategic capacity planning involves: capital-intensive acquisitions. the weekly employee schedule. impacting the firm's cost structure. long-term production.

capital-intensive acquisitions impacting the firm's cost structure long-term production

Location

convenient and easy to use

Lead time can vary based on ______________ the total inventory costs. customization of the product being produced. the amount of customer satisfaction. location of the manufacturing facility.

customization of the product being produced. location of the manufacturing facility.

When building a decision tree, one should use squares to represent which of the following?

decision points

Lag Strategy

demand cushion -volatility is low -high inventory or backlog

Customer order decoupling points determine lead times. are not a necessary supply chain production process. allow manufacturers to see every customer purchase. can impact inventory investment.

determine lead times. can impact inventory investment.

Inventory turn is calculated by

dividing cost of goods sold by average inventory value.

The idea that as a plant volume increases, the average cost per unit drops is known as

economies of scale

The idea that multiple products can be combined and produced at one facility at a lower cost than they can be produced separately is known as

economies of scope

Capital Intensive Resources

facilities, equipment, labor

Capacity speaks to

facility, equipment, and labor

A facility designed around a limited set of production objectives is called a

focused factory

In a ____________ project structure, team members do not report to a dedicated manager, but remain part of their functional units.

functional

Long range

greater than one year

short range

less than one month

capacity focus

limited set of objectives/projects

The long-term relationship between inventory, throughput, and flow time is mathematically related using _____________'s law

little

Firms whose product is built directly from raw materials and components in response to a customer are known as

make-to-order.

Design capacity

max, ideal conditions

CAP

maximum output of process/system

If inventory turn is known, days-of-supply is calculated by

multiplying the inverse of inventory turn by 365 days.

A specific event that should be reached at a certain point in time is often referred to as?

project milestone

The average number of customers that can be processed over a period of time, when the facility is operating at maximum capacity, is known as the ___.

service rate

When there is some leeway regarding when an activity can start, this is referred to as ______________

slack time

What term describes the group of activities assigned to a single organizational unit?

work package