MGT3332 FINAL
Accuracy in forecasting can be measured by: a. MSE. b. MPS. c. MRP. d. MTM. e. MTE
MSE
Which of these pairs of functions would tend to be affected most dramatically by a product or service redesign? a. Operations and Accounting b. Marketing and Operations c. Finance and Human Resources d. Engineering and Accounting e. Finance and Engineering
Marketing and Operations
The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the: a. Adam Smith phenomenon. b. Pareto phenomenon. c. Stevenson phenomenon. d. Irwin phenomenon. e. Tellier phenomenon.
Pareto phenomenon
Which of the following is not one of the assumptions of the basic EOQ model? a. Ordering and holding costs have been estimated reasonably accurately. b. Lead time does not vary. c. Each order is received in a single delivery. d. Annual demand requirements are known and constant. e. Quantity discounts are available.
Quantity discounts are available.
A characteristic that was once an order winner may become an order qualifier. T/F
T
A disadvantage of standardization is the possibility of standardizing designs too early, which may make them difficult to modify in the future. T/F
T
A major benefit of computer-aided design (CAD) is the increased productivity of designers. T/F
T
An example of a strategic operations management decision is the choice of where to locate. T/F
T
An example of a tactical operations management decision is determining employment levels. T/F
T
An example of an operational operations management decision is inventory level management. T/F
T
As a general rule, continuous processing systems produce products with very little variety. T/F
T
Carrying cost is a function of order size; the larger the order quantity, the higher the inventory carrying cost. T/F
T
Concurrent engineering brings people concerned with manufacturing into the design phase earlier than in the "over-the-wall" approach. T/F
T
Continuous production systems are typically very rigid and costly to change. T/F
T
Crosby's concept of "quality is free" means that it is less expensive to do it right initially than to do it over. T/F
T
Design for production takes into account the capabilities of the organization to produce or deliver a given product or service. T/F
T
Environmental scanning is a search for events or trends that present either threats or opportunities to the organization. T/F
T
For service and retail stores, a prime factor in location analysis is customer access. T/F
T
For service organizations, the dominant factors in location analysis usually are market-related. T/F
T
Forecasting techniques generally assume an existing causal system that will continue to exist in the future. T/F
T
Forecasts help managers both to plan the system itself and to provide valuable information for using the system. T/F
T
If a point on a control chart falls outside one of the control limits, this suggests that the process output is nonrandom and should be investigated. T/F
T
Interest, insurance, and opportunity costs are all associated with holding costs. T/F
T
Medical malpractice claims are an example of how poor quality can affect an organization through liability. T/F
T
One approach to extending a product's life cycle is to promote alternate uses of the product. T/F
T
One important use of inventories in manufacturing is to decouple operations through the use of work-in-process inventories. T/F
T
Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts. T/F
T
People who work in the field of operations should have skills that include both knowledge and people skills. T/F
T
Product failures can be easier to remedy with modular design. T/F
T
Productivity is defined as the ratio of output to input. T/F
T
Quality of conformance refers to the degree to which goods and services conform to the intent of the designers as documented in the specifications. T/F
T
Quality of design refers to the intention of the designers to include or exclude certain features in a product or service based on marketing and other information. T/F
T
Reducing consumer choices makes service more efficient. T/F
T
Reducing the variability in our product or service is an important key to quality. T/F
T
Service often requires relatively greater labor content when compared to manufacturing. T/F
T
Standardization has the advantage of reducing variability. T/F
T
TQM expands the traditional view of quality beyond looking only at the quality of the final product or service to looking at the quality of every aspect of the process. T/F
T
The Delphi approach involves the use of a series of questionnaires to achieve a consensus forecast. T/F
T
The greater the degree of customer involvement, the more challenging the design and management of operations. T/F
T
The hierarchy and sequence of planning and decision making is: mission, organizational strategy, tactics, and operational decisions. T/F
T
The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs reasonable. T/F
T
The rate of demand is an important factor in determining the ROP. T/F
T
The shorter the forecast horizon, the more accurate the forecast tends to be. T/F
T
The term capacity refers to the maximum quantity an operating unit can process over a given period of time. T/F
T
Three key philosophies in TQM are continuous improvement, involvement of everyone in the organization, and customer satisfaction. T/F
T
To provide satisfactory levels of customer service while keeping inventory costs within reasonable bounds, two fundamental decisions must be made about inventory: when to order and how much to order. T/F
T
Tracking productivity measures over time enables managers to judge organizational performance and decide where improvements are needed. T/F
T
Using the EOQ model, the higher an item's carrying costs, the more frequently it will be ordered. T/F
T
Variability in demand and/or lead time can be compensated for by safety stock. T/F
T
uran describes quality management as a trilogy that consists of quality planning, quality control, and quality improvement. T/F
T
Which of the following is not an advantage of standardization? a. Purchasing is more routine. b. Fewer parts to deal with in inventory. c. Reduced training cost and time. d. Inventory management is less complex. e. The opportunity to freeze design at a very early stage.
The opportunity to freeze design at a very early stage.
Which of these factors would be least likely to affect productivity? a. advertising b. workers c. methods and technology d. management
advertising
If one organization is better able than most to respond to changes in demands or opportunities, we say that organization exhibits higher: a. sustainability. b. marketability. c. agility. d. efficiency.
agility
A forecast based on the previous forecast plus a percentage of the forecast error is: a. an exponentially smoothed forecast. b. a centered moving average forecast. c. a naive forecast. d. an associative forecast. e. a simple moving average forecast.
an exponentially smoothed forecast.
Costs of inspectors, testing, test equipment, and labs are examples of a. replacement costs. b. external failure costs. c. prevention costs. d. appraisal costs. e. internal failure costs.
appraisal costs
Dairy items, fresh fruit, and newspapers are items that: a.have minimal holding costs. b. cannot be ordered in large quantities. c. do not require safety stocks. d. are subject to deterioration and spoilage. e. require that prices be lowered every two days.
are subject to deterioration and spoilage.
Some communities offer financial and other incentives to ______ new businesses. a. incorporate b. zone c. marginalize d. tax e. attract
attract
The substitution of machinery that has sensing and control devices for human labor is best described by the term: a. computer-integrated manufacturing. b. automation. c. flexible manufacturing system. d. feedback control. e. computer-aided manufacturing
automation
Unbalanced systems are evidenced by: a. assembly lines. b. bottleneck operations. c. labor unrest. d. increasing capacities. e. top-heavy operations.
bottleneck operations
Capacity in excess of expected demand that is intended to offset uncertainty is a: a. timing bubble. b. positioning hedge. c. capacity cushion. d. margin protect. e. line balance.
capacity cushion
Key aspects of the process selection challenge include _________ and __________. a. capacity planning; marketing strategy b. marketing strategy; operations strategy c. information technology; marketing strategy d. capital intensity; process flexibility e. process flexibility; marketing strategy
capital intensity; process flexibility
In regards to supply chain management and the location decision, a primary challenge is to address _______________ distribution. a. anticipatory vs. reactive b. local vs. global c. strategic vs. tactical d. insourced vs. outsourced e. centralized vs. decentralized
centralized and decentralized
Retail businesses often engage in ____________, the tendency to locate in close proximity to one another. a. clustering b. strategizing c. centering d. localcasting e. macromarketing
clustering
The type of processing system which is used for highly standardized products is: a. project. b. continuous. c. unit. d. batch. e. intermittent.
continuous
Which of the following would be least important in the pursuit of a time-based strategy? a. operational agility b. flexible technology c. reduced complaint resolution times d. quick changeover times e. cost minimization
cost minimization
In order to increase the responsiveness of a forecast made using the moving average technique, the number of data points in the average should be: a. eliminated if the MAD is greater than the MSE. b. decreased. c. multiplied by a larger alpha. d. increased. e. multiplied by a smaller alpha.
decreased
The need for safety stocks can be reduced by an operations strategy which: a. decreases ordering costs. b. increases lead time variability. c. decreases lead time variability. d. increases lead time. e. increases lot sizes.
decreases lead time variability.
he term "degrees of newness" is associated with: a. average length of time on the job. b. total years of business experience. c. average age of the capital equipment. d. degree of design change. e. average age of employees.
degree of design change
Process choice is _________ driven. a. capacity b. process c. demand d. marketing e. operations
demand
The purpose of control charts is to: a. distinguish between random variation and assignable variation in the process. b. determine if the output is within tolerances/specifications. c. weed out defective items. d. provide meaningful work for quality inspectors. e. estimate the proportion of output that is acceptable.
distinguish between random variation and assignable variation in the process.
Which of the following is not a characteristic of service operations? a. high labor content b. low uniformity of input c. high customer contact d. intangible output e. easy measurement of productivity
easy measurement of productivity
Which of the following is not among the chief reasons organizations fail? a. not investing in capital and human resources b. emphasizing labor productivity in labor-intensive environments c. overemphasis on product (or service) design d. poor internal communications e. overemphasis on short-term financial performance
emphasizing labor productivity in labor-intensive environments
Warranty service, processing of complaints, and costs of litigation are examples of: a. appraisal costs. b. replacement costs. c. prevention costs. d. internal failure costs. e. external failure costs.
external failure costs
When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is: a. consumer surveys. b. transportation models. c. center of gravity methods. d. linear programming. e. factor rating.
factor rating
In a supermarket, a vendor's restocking the shelves every Monday morning is an example of: a. economic order quantities. b. fixed order intervals. c. safety stock replenishment. d. blanket ordering. reorder points.
fixed order intervals
The tool that is useful in documenting the current process is a: a. check sheet. b. flowchart. c. control chart. d. cause-and-effect diagram. e. Pareto chart.
flowchart
Which is not an area of significant difference between manufacturing and service operations? a. forecasting demand b. measurement of productivity c. customer contact d. labor content of jobs e. uniformity of input
forecasting demand
One way to increase reliability is to: a. use a global supply chain. b. increase the number of independent components. c. increase mean repair time. d. eliminate backup components. e. improve preventive maintenance procedures.
improve preventive maintence procedures
The term "standardization" is closely associated with: a. high cost. b. customization. c. variety. d. interchangeability. e longer lead times.
interchangability
Lost production time, scrap, and rework are examples of: a. prevention costs. b. internal failure costs. c. external failure costs. d. appraisal costs. e. replacement costs.
internal failure costs
The estimation of costs is generally most difficult when the ___________ process has been chosen. a. project b. job shop c. batch d. continuous e. repetitive
job shop
Marketing depends on operations for information regarding: a. lead time b. cash flow c. productivity d. corporate intelligence
lead time
The decision to outsource opens the firm up to certain risks, among them _________ and ________. a. lower costs; fewer task-specific investments b. greater capacity rigidity; tight knowledge control c. loss of direct control over operations; need to disclose proprietary information d. access to greater expertise; greater demand variability e. higher marketing costs; small orders
loss of direct control over operations; need to disclose proprietary information
Six sigma programs involve both __________ and __________ components. a. statistical; probabilistic b. logistical; managerial c. managerial; technical d. probabilistic; deterministic e. local; global
managerial; technical
Nearness to raw materials would be most important to a: a. hospital. b. manufacturing company. c. grocery store. d. tax preparation service. e. post office.
manufacturing company
For service firms such as banks and supermarkets, location decisions are critical elements of __________ strategy. a. efficiency b. effectiveness c. promotional d. marketing e. pricing
marketing
Which of the following is a system in which low-skilled workers use specialized equipment to produce high volumes of standardized goods? a. lean systems b. supply chain c. mass production d. craft production e. the Internet
mass production
Before a dimension of quality can be made operationally useful, it must be restated in some ___________ form. a. marketable b. measurable c. qualitative d. manipulative e. certifiable
measurable
The center of gravity method is used to _______ travel time or shipping costs. a. minimize b. document c. normalize d. eliminate e. average
minimize
The fundamental purpose for the existence of any organization is described by its: a. mission statement. b. corporate charter. c. policies. d. bylaws. e. procedures.
mission statement
A risk avoider would want ______ safety stock. a. more b. the same c. 50 percent d. zero e. less
more
The external elements of SWOT analysis are: Multiple Choice a. strengths and threats. b. strengths and weaknesses. c. strengths and opportunities. d. weaknesses and opportunities. e. opportunities and threats
opportunities and threats
Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage. Now, all firms must offer this capability simply to be in this line of business. This is an example of ______________ becoming ____________ over time a. tactical implications; strategic b. order winners; order qualifiers c. profitability factors; productivity factors d. order qualifiers; order winners e. strategic implications; tactical
order winners; order qualifiers
Productivity is expressed as: a. output-input b. output x input c. ouput + input d. output/input
output/input
Buying goods or services instead of producing or providing them in-house is called: a. internationalization. b. entrepreneurship. c. outsourcing. d. downsizing
outsourcing
Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management. a. downsizing; total quality b. outsourcing; supply chain c. optimizing; inventory d. internationalization; intercultural
outsourcing; supply chain
A control chart used to monitor the fraction of defectives generated by a process is the: a. p-chart. b. Gantt chart. c. x-bar chart. d. R-chart. e. c-chart.
p-chart
Which of the following is least likely to affect the cost an organization incurs in producing its products or services? a. location b. productivity c. inventory management d. quality e. price
price
Which one of the following is not generally a determinant of the reorder point? a. stockout risk b. lead time variability c. rate of demand d. length of lead time e. purchase cost
purchase cost
hich of the following is typically the largest of all inventory costs? a. holding cost b. ordering cost c. purchase cost d. shortage cost
purchase cost
A formal way to ensure customer requirements are factored into the product and service development process is: a. a sales/marketing matrix. b. quality function deployment. c. consumer surveys. d. focus groups. e. the Delphi technique.
quality function deployment.
One structured approach for integrating customer requirements into every aspect of product development is: a. customer integration. b. customer satisfaction. c. quality function deployment. d. total quality management. e. a product development team.
quality function deployment.
The two general approaches to forecasting are: a. historical and associative b. precise and approximation. c. qualitative and quantitative. d. mathematical and statistical. e. judgmental and qualitative.
quantitative and qualitative
Which of the following interactions with vendors would potentially lead to inventory reductions? a. larger batch quantities b. increased safety stock c. longer order intervals d. less frequent purchases e. reduced lead times
reduced lead times
The primary method for associative forecasting is: a. regression analysis. b. simple moving averages. c. exponential smoothing. d. sensitivity analysis. e. centered moving averages.
regression analysis
In which type of operation are you likely to see, at most, only minor variations in the product or service being produced using the same process and the same equipment? a. repetitive production b. intermittent production c. batch processing d. a project e. a job shop
repetitive production
Which of the following is not one of the 3 Rs? a. remanufacture b. recycle c. reduce d. reposition e. reuse
reposition
If customer satisfaction does not always lead to customer loyalty, firms may need to focus additional effort on __________ strategies. a. reprocessing b. repatriation c. retention d. rework e. remediation
retention
The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas is called: a. design by imitation. b. reverse engineering. c. disassembly. d. benchmarking. e. product analysis
reverse engineering
Production systems with customized outputs typically have relatively: a. high amounts of specialized equipment b. high volumes of output c. low unit costs d. skilled workers e. fast work movement
skilled workers
Job shops tend to be __________ while continuous processes tend to be __________. a. standardized; customized b. low cost-per-unit; high cost-per-unit c. short-term and capital intensive; long-term and labor intensive d. small scale and flexible; large-scale and inflexible e. in services; in manufacturing
small scale and flexible; large-scale and inflexible
Product design and choice of location are examples of _______ decisions. a. operational b. strategic c. tactical d. design e. customer-focusd
strategic
Which of the following refers to service and production processes that use resources in ways that do not harm ecological systems? a. transportability b. perishability c. supportability d. marketability e. sustainability
susaintability
The amount of inspection needed depends on __________ and __________. a. the costs of inspection; the costs of passing on defective items b. the quality of the supplier; the target market of the process c. the amount of automation; the reliability of inspectors d. where in the process the inspection occurs; the volume of the process e. the cost of the item being inspected; the use of the item being inspected
the costs of inspection; the costs of passing on defective items
The primary difference between seasonality and cycles is: a. there are only four seasons but 30 cycles. b. the direction of the movement. c. the magnitude of the variation. d. the duration of the repeating patterns. e. the ability to attribute the pattern to a cause.
the duration of the repeating patterns.
Gradual, long-term movement in time series data is called: a. trend. b. cycles. c. seasonal variation. d. irregular variation. e. random variation.
trend
A control chart used to monitor the process mean is the: a. Gantt chart. b. p-chart. c. c-chart. d. x-bar chart. e. R-chart.
x-bar
Productivity growth can be calculated by: Multiple Choice a. outputs minus inputs. b. (current productivity - previous productivity) x 100 / (previous productivity) c. outputs divided by the inputs. d. input plus output divided by two. e. inputs divided by the outputs.
(current productivity - previous productivity) x 100 / (previous productivity)
_____ variation is a variation whose cause can be identified. a. Controllable b. Statistical c. Assignable d. Random e. Theoretical
Assignable
The Balanced Scorecard is a useful tool for helping managers translate their strategy into action in the following areas: a. Customization; Standardization; Efficiency; Effectiveness b. (The Environment; The Community; Suppliers; Other Stakeholders) c. (Strategy; Tactics; Productivity; Profitability) d. (Customers; Financial; Internal Business Processes; Learning and Growth) e. (Sustainability; Flexibility; Efficiency; Technology)
Customers; Financial; Internal Business Processes; Learning and Growth
A control chart is a visual representation of the steps in a process. T/F
F
A job-shop processing system generally requires less-skilled workers than a continuous processing system. T/F
F
A process that exhibits random variability would be judged to be out of control. T/F
F
A quality circle is a management team focused on implementing major changes to improve quality. T/F
F
An organization achieves quality by consistently meeting its competitors' standards. T/F
F
An organization that is twice as productive as its competitor will be twice as profitable. T/F
F
Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations. T/F
F
Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations. T/F
F
Concurrent engineering is another term for sequential development. T/F
F
Continuous processing is the best way to produce customized output. T/F
F
Cost of inspectors, testing, test equipment, and labs are examples of prevention costs. T/F
F
Deming stresses that workers are primarily responsible for poor quality because very often they fail to follow instructions. T/F
F
Exponential smoothing adds a percentage (called alpha) of the last period's forecast to estimate the next period's demand. T/F
F
Forecasts based on time-series (historical) data are referred to as associative forecasts. T/F
F
Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don't include as many influencing factors. T/F
F
Goods-producing organizations are not involved in service activities. T/F
F
If people would only work harder, productivity would increase. T/F
F
If the majority of service customers are satisfied, it is likely that all service customers will be satisfied. T/F
F
In general, job-shop systems have a lower unit cost than continuous systems do because continuous systems use costly specialized equipment. T/F
F
One of the main advantages of standardization is that it increases the potential variety of products. T/F
F
Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services. T/F
F
Preventive maintenance is additional maintenance done immediately after a breakdown has occurred to help prevent any further breakdowns. T/F
F
Service operations require additional inventory because of the unpredictability of consumer demand. T/F
F
The center of gravity method uses the earth's center to establish starting grid coordinates (i.e., the 0,0,0 point) in three dimensions (x, y and z). T/F
F
The objective of inventory management is to minimize the cost of holding inventory. T/F
F
The process of dismantling and inspecting a competitor's product to discover product improvement is called benchmarking. T/F
F
Time-series techniques involve the identification of explanatory variables that can be used to predict future demand. T/F
F
Web-based, retail businesses should be located near the customer to reduce their long distance phone charges. T/F
F
You cannot make a mistake by locating where labor costs are low. T/F
F
Excitement characteristics are categories in the _________ model. a. Pareto b. Kano c. bipolar d. service matrix e. quality
Kano
