Midterm
supply chain
A global network of organizations and activities that supplies a firm with goods and services.
knowledge societies
A society in which much of the labor force has migrated from manual work to work based on knowledge.
OM
Activities that relate to the creation of goods and services through the transformation of inputs to outputs.
10 Strategic OM Decisions
Design of goods and services Managing quality Process strategies Location strategies Layout strategies Human resources Supply-chain management Inventory management Scheduling Maintenance
multifactor productivity
Indicates the ratio of goods and services produced (outputs) to many or all resources (inputs).
single-factory productivity
Indicates the ratio of goods and services produced (outputs) to one resource (input).
Production
The creation of goods and services
productivity
The ratio of outputs (goods and services) divided by one or more inputs (such as labor, capital, or management).
productivity variables
The three factors critical to productivity improvement—labor, capital, and the art and science of management.
"Today's forecast equals yesterday's actual demand" is referred as A. the naive approach. B. a moving average. C. exponential smoothing. D. the Delphi method.
a
A global network of organizations and activities that supply a firm with goods and services is referred to as A. a supply chain. B. business functions. C. production. D. operations management.
a
Efficiency is given by A. actual output divided by effective capacity. B. actual output divided by design capacity. C. effective capacity divided by actual output. D. design capacity divided by utilization.
a
Listing products in descending order of their individual dollar contribution to the firm is called A. product-by-value analysis. B. product decision. C. brainstorming. D. product life cycle.
a
The economic activities that typically produce an intangible product are referred to as A. services. B. goods. C. phantoms. D. products.
a
When ordering a new zagflatz, customers must choose the style of three major components, each of which has about ten variations. This is an example of A. modular design. B. robust design. C. environmentally friendly design. D. CAD.
a
Which of the following is NOT a characteristic of services? A. standardized product B. unique C. produced and consumed simultaneously D. intangible
a
Which of the following is NOT true regarding layout decisions? A. To obtain flexibility in layout, operations managers could keep investments high. B. Layout designs need to be viewed as dynamic because of our increasingly short-life-cycle and mass-customized world. C. An effective layout can help an organization achieve a strategy that supports differentiation, low cost, or response. D. Layout is one of the key decisions that determines the long-run efficiency of operations.
a
Which of the following is the FIRST step in a forecasting system? A. Determine the use of the forecast. B. Select the forecast model(s). C. Determine the time horizon of the forecast. D. Select the items to be forecasted.
a
Which of the following layouts seeks the best personnel and machine utilization in repetitive or continuous production? A. Product-oriented layout B. Fixed-position layout C. Work-cell layout D. Process-oriented layout
a
n process-oriented and fixed-position layouts, it is important to minimize the costs of A. material handling. B. raw material. C. skilled labor. D. special-purpose machinery.
a
High-volume, low-variety production is best suited for which of the following process strategies? A. product focus B. process focus C. mass customization D. repetitive focus
a
A process-oriented layout A. addresses the layout requirements of large, bulky projects such as ships and buildings. B. deals with low-volume, high-variety production. C. deals with high-volume, low-variety production. D. seeks the best personnel and machine utilization in repetitive or continuous production.
b
A product-oriented layout A. allocates shelf space and responds to customer behavior. B. is organized around products or families of similar high-volume, low variety production. C. addresses the layout requirements of large, bulky projects such as ships and buildings. D. deals with low-volume, high-variety production.
b
Simultaneous performance of the various stages of product development is known as A. advanced engineering. B. concurrent engineering. C. business engineering. D. manufacturability and value engineering.
b
The objective of layout strategy is to A. improve the flow of information. B. develop an effective and efficient layout that will meet the firm's competitive requirements. C. improve customer interaction. D. improve employee morale.
b
What is a data pattern that repeats itself after a period of days, weeks, months, or quarters? A. trend B. seasonality .C. random variation D. cycle
b
What is a means of finding the point, in dollars and units, at which costs equal revenues? A. zero-sum analysis B. break-even analysis C. capacity analysis D. bottleneck analysis
b
What is the time of the slowest workstation in a production system? A. effective capacity B. bottleneck time C. utilization D. throughput time
b
Which of the following is NOT considered to be one of the three primary functions that all organizations perform? A. production/operations B. research and development C. marketing D. finance/accounting
b
Which of the following is a qualitative forecasting method? A. naive approach B. Delphi method C. linear regression D. trend projection
b
Which of the following statements is NOT true regarding forecasting? A. A forecast is usually classified by the future time horizon that it covers. B. Forecasting is exclusively an objective prediction. .C. Forecasting may involve taking historical data and projecting them into the future with a mathematical model. D. Forecasting is the art and science of predicting future events.
b
Which of the following statements is true regarding break-even analysis? Assume the break-even point in units is 500 units. A. If the firm produces less than 500 units, then it is in the profit corridor. B. If the firm produces more than 500 units, then it will be profitable. C. If the firm produces less than 500 units, then revenue is greater than cost. D. If the firm produces more than 500 units, then it is in the loss corridor.
b
Which of the following strategies helps to smooth utilization of facility, equipment, and personnel? A. Market aggressively when demand exceeds capacity. B. Offer products with complementary demand patterns (e.g., jet skis and snowmobiles). C. Hire only temporary part-time employees. D. Raise prices when capacity exceeds demand.
b
Break-even analysis for the single-product case requires an estimation of fixed costs, variable costs, and A. price, along with the percent of total dollar sales for each product. B. revenue. C. price. D. the percent of total dollar sales for each product.
b
A big advantage of a process-oriented layout is A. the ability to employ low-skilled labor. B. its low levels of work-in-process inventory. C. its flexibility in equipment and labor assignments. D. the simplified scheduling problem presented by this layout strategy.
c
A large quantity and large variety of products are produced in A. product focus. B. repetitive focus. C. mass customization. D. process focus.
c
A tracking signal A. is computed as the mean absolute deviation (MAD) divided by the running sum of the forecast errors (RSFE). B. cannot be used with exponential smoothing. C. is a measurement of how well a forecast is predicting actual values. D. that is negative indicates that demand is greater than the forecast.
c
Generally the goal of assembly line balancing is to A. determine the maximum time that an item is allowed at a workstation. B. minimize the efficiency of the line. C. minimize imbalance between machines or personnel while meeting a required output from the line. D. maximize the number of workstations.
c
In general, the supply chain starts with A. a distributor. B. final customers at the retail store. C. the provider of basic raw materials. D. research and development.
c
Low-volume, high-variety production is best suited for which of the following process strategies? A. mass customization B. repetitive focus C. process focus D. product focus
c
Productivity increases when A. inputs and outputs increase proportionately. B. inputs increase while outputs remain the same. C. inputs decrease while outputs remain the same. D. outputs decrease while inputs remain the same.
c
The ratio of all resources to the goods and services produced is referred as A. single-factor productivity. B. labor productivity. C. multifactor productivity. D. productivity growth.
c
The set of activities that relate to the creation of goods and services through the transformation of inputs to outputs is referred to as A. marketing. B. supply chain management. C. operations management. D. finance.
c
What is the objective of the product decision? A. To develop and implement a product strategy that positions the firm as an industry leader. B. To develop and implement a product strategy that minimizes the product life cycle. C. To develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage. D. To develop and implement a product strategy that exceeds the demands of the supply chain with a competitive advantage.
c
What is the term for the process of obtaining output at each workstation on a production line so delay is minimized? A. Focused production B. Work cell formation C. Assembly-line balancing D. Bottlenecking
c
Which forecast error measure provides an error percentage? A. MAD B. MSE C. MAPE D. MD
c
Which of the following is NOT a valid principle of bottleneck management? A. Release work orders to the system at the pace set by the bottleneck's capacity. B. Increasing the capacity of a non-bottleneck station is a mirage. C. Increasing the capacity of a non-bottleneck station increases the capacity for the whole system. D. Lost time at the bottleneck represents lost capacity for the whole system.
c
Which of the following is a characteristic of the maturity phase of the product life cycle? A. Products are "fine-tuned." B. Competitors are well established. C. Products are considered for termination. D. Product designs begin to stabilize.
c
Which of the following is a quantitative forecasting method? A. sales force composite B. exponential smoothing C. market survey D. jury of executive opinion
c
A consistent tendency for forecasts to be greater or less than the actual values is called ________ error. A. an unbalanced B. a trend C. an extreme D. a bias
d
A house of quality would depict the strength of the relationship between which of the following two items? A. The customer's need for a sealable change pocket and the customer's need for plastic inserts to display pictures. B. The design team's choice of material for a wallet and the materials that were considered but rejected by the design team. C. The stitching used in your company's new product and the stitching used in a competitor's wallet. D. The customer's desire for a durable wallet and the company's choice of material for the wallet.
d
The difference between selling price and variable cost is called A. the bottleneck. B. the break-even point. C. fixed cost. D. contribution.
d
The forecasting time horizon that would typically be easiest to predict for would be the A. long range. B. medium range. C. intermediate range. D. short range.
d
What is the primary benefit of creating a product family or aggregated forecast? A. Determining the best forecasting method B. Maximizing the number of forecasts needed C. Minimizing the time horizon of the forecast D. Minimizing forecast errors
d
What is the theoretical maximum output of a system in a given period under ideal conditions? A. efficiency B. effective capacity C. utilization D. design capacity
d
Which of the following approaches is also called a "job shop?" A. product-oriented layout B. fixed-position layout C. work-cell layout D. process-oriented layout
d
Which of the following best represents the role of operations management (OM)? A. OM plays a vital role in manufacturing, and a minor role in services B. OM only plays an important role in manufacturing C. OM only plays an important role in services D. OM plays an equally important role in both manufacturing and services
d
Which of the following is required to calculate the cost of material handling for process layout design? A. Number of employees B. Number of loads moved between departments C. Cost to move loads between departments D. Both B and C
d
Which of the following organizations does NOT belong to the service sector? A. Southwest Airlines B. Costco C. San Diego Zoo D. Ford Motor Company
d
Which of the following statements is NOT true about the quality function deployment (QFD)? A. QFD is used early in the design process B. QFD is used to determine what will satisfy the customer C. QFD is used to translate customer desires into the target design D. QFD is used to determine why the customer requires specific product attributes
d