MQM 227 Exam 1 Questions
A reason that firms must develop more new products than ever is which of the following? Multiple Choice Product life cycles are shorter Commitments to joint venture partners They are replacing old customers with new ones To amortize heavy investments in development labs The increased difficulty of defending patents and trade names
Product life cycles are shorter
Which of the following is not a basic type of process structure? Multiple Choice Product-process matrix Work center Manufacturing cell Assembly line Continuous process
Product-process matrix
The goods-services continuum consists of which set of the following categories?
Pure goods, core goods, core services, pure services
Which of the following is not a way that operations and supply processes are categorized? Multiple Choice Planning Return Delivery Selecting Making
Selecting
One of the three approaches to delivering on-site service is _____ Multiple Choice Airline approach Self-service approach Fast food approach Do-it-yourself approach Internet approach
Self-service approach
Which of the following is a characteristic of concurrent engineering? Multiple Choice Integrated computer-assisted design Using automated guided vehicles Separate development teams working at once Having an excellent forecasting system The design-build-test cycle
Separate development teams working at once
You have just used the network planning model and found the critical path length is 30 days and the variance of the critical path is 25 days. The probability that the project will be completed in 33 days or less is equal to (2 decimal accuracy) Multiple Choice 0.73 0.55. 0.12 0.27 0.60.
0.73 Note that variance of 25 implies that the s.d. is sqrt(25) = 5. Z value corresponding to 33 is equal to Z=[(33-30)/5]= 0.6, which leads to the probability of 0.73.
Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even? Multiple Choice 500 units 667 units 790 units 900 units 1,000 units
1,000 units
The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure, what is the resulting productivity ratio? Multiple Choice 1.000 1.428 0.700 0.411
1.000
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? Multiple Choice 0.75 1.00 1.25 1.33 100
1.25
f the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity cushion? Multiple Choice 25 percent 100 units per hour 75 percent 125 percent 133 percent
100 units per hours
Various financial data for SunPath Manufacturing for 2012 and 2013 follow. What is the percentage change in the labor partial productivity measure for SunPath between 2012 and 2013? Multiple Choice -9.22 2.33 -0.53 2.88 10.39
2.33 The labor partial productivity measure for 2012 is $300,000 divided by $40,000 or 7.5. For 2013 it is $330,000 divided by $43,000 or 7.67. The percentage change between 2012 and 2013, then, is (7.67 - 7.5)/7.5 or 0.17 divided by 7.5 = 2.33%.
Various financial data for SunPath Manufacturing for 2012 and 2013 follow. What is the percentage change in SunPath's total productivity measure between 2012 and 2013? Multiple Choice -9.22 2.33 -0.53 2.88 10.39
2.88 Total productivity for 2012 is $300,000 divided by the sum $40,000 + $45,000 + $10,000 + $250,000 + $2,000 or 0.8646. Total productivity for 2013 is $330,000 divided by the sum of $43,000 + $51,000 + $9,000 + 262,000 + $6,000 or 0.8895. The difference between 2012 and 2013 is 0.0249 and the percentage difference is 0.0249 divided by 0.8646 = 0.0288 or 2.88%.
You have just used the network planning model for a county road resurfacing project and found the critical path length is 40 days and the standard deviation of the critical path is 10 days. Suppose you want to pick a time (in days) within which you will complete the project with 90% confidence level, what should be that time (in days and round to the nearest whole number.) Multiple Choice 40 13. 37 29 53
53
Which of the following are defined as core goods? Chemicals Airlines Data storage systems Hotels
Data storage systems
What is a work breakdown structure? Multiple Choice A list of the activities making up the higher levels of the project A definition of the hierarchy of project tasks, subtasks, and work packages A depiction of the activities making up a project A Gantt chart A structure that is incompatible with the critical path method
A definition of the hierarchy of project tasks, subtasks, and work packages
Some of the advantages of a functional project where the project is housed in a functional division include which of the following? Multiple Choice The project manager has full authority over the project. Team pride, motivation, and commitment are high. A team member can work on several projects. Needs of the client are secondary. None of these
A team member can work on several projects.
One reason for studying operations and supply chain management (OSCM) is which of the following? OSCM is essential for understanding organizational behavior. Most business graduates do OSCM work regardless of their job title. All managers should understand the basic principles that guide the design of transformation processes. OSCM is a required course in all business degree programs. OSCM is the most rigorous business discipline.
All managers should understand the basic principles that guide the design of transformation processes.
In studying product-process matrix describing layout strategies, which of the following is most appropriate? Multiple Choice -As you move from project to manufacturing cell to continuous process, product volume increases while standardization increases. -As you move from project to manufacturing cell to continuous process, product volume decreases while standardization decreases. -As you move from project to manufacturing cell to continuous process, product volume increases while standardization decreases. -As you move from project to manufacturing cell to continuous process, product volume decreases while standardization increases. -A and B are true
As you move from project to manufacturing cell to continuous process, product volume increases while standardization increases.
Which of the following basic types of process structures is one in which equipment or work processes are arranged according to the progressive steps by which the product is made? Multiple Choice Project Work center Manufacturing cell Assembly line Continuous process
Assembly line
Which of the following refers to the physical presence of the customer in a service system? Multiple Choice Creation of the service Customer contact Intermittent production Continuous production None of these
Customer contact
The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as: Multiple Choice Economies of scale Economies of size Economies of shape Economies of scope Economies of shipping
Economies of Scope
The placement of which of the following is not determined by production process organization decisions? Multiple Choice Departments Work groups Workstations Machines Emergency exits
Emergency exits
Which of the following is not considered a major work flow structure? Multiple Choice Work center Project Assembly line Fabrication Continuous flow
Fabrication
T or F 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
T or F Automobiles and appliances are classified as "pure goods."
False
T or F One of the disadvantages of a pure project organizational structure is that the project manager has full authority over the project.
False
Which of the following is a time-to-market performance measure used in judging product development performance? Multiple Choice Frequency of new-product introductions Product reliability Customer loyalty Yield Value analysis
Frequency of new-product introductions
Economic analysis of product development projects is useful in which of the following circumstances? Multiple Choice Factory location Distribution decisions Go/no-go milestones Demand estimation Pricing
Go/no-go milestones
n the service-system design matrix, an Internet and on-site technology service encounter is expected to have which of the following? Multiple Choice High sales opportunity High degree of customer/server contact Low production efficiency High production efficiency None of these
High production efficiency
All other things remaining the same, if the sales revenue increases, asset turnover ratio will Multiple Choice Increase Decrease Stay the same may increase or decrease
Increase
Which of the following is an alternative possible service encounter included in the service-system design matrix? Multiple Choice Face-to-face distance Internet Questionnaire response Automated teller (ATM) Response card encounter
Internet
A listing of immediate predecessor activities is important information in a CPM analysis for which of the following reasons? Multiple Choice It specifies the relationships in the CPM network of activities. It provides useful timing information. It includes cost information. It is the probability information required in the final step of CPM. None of these
It specifies the relationships in the CPM network of activities.
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? Multiple Choice Intermediate range Long range Short range Current Upcoming
Long Range
In the service-system design matrix, a mail contact service encounter is expected to have which of the following? Multiple Choice High sales opportunity High degree of customer/server contact High production efficiency Low sales opportunity None of these
Low sales opportunity
Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position? Multiple Choice Cost or price Delivery speed Delivery reliability Management acumen Coping with changes in demand
Management acumen
ou have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project, and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used? Multiple Choice Pure project Task force Matrix project Functional project PERT
Matrix project
Which of the following is a total measure of productivity? Multiple Choice Output/Materials Output/(Labor + Capital + Energy) Output/Labor Output/Inputs All of these
Output/Inputs
Which of the following is a partial measure of productivity? Multiple Choice Output/Materials Output/(Labor + Capital + Energy) Output/All resources used Output/Inputs All of these
Output/Materials
If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity? Multiple Choice Partial measure Multifactor measure Total measure Partial measure and Multifactor measure Multifactor measure and Total measure
Partial measure and Multifactor measure
Performance measures discussed for development projects does not include Multiple Choice Frequency of new product introductions Yield Percentage sales coming from very old products Cost of materials and tooling conformance - reliability in use
Percentage sales coming from very old products
Consumer electronics is an example of a product developed in which variant of the generic product development process? Multiple Choice Technology-push products Customized products Platform products Quick-build products Process-intensive products
Platform products
Which of the following is not a characteristic that distinguishes services from goods? Service jobs are unskilled. A service is intangible. Services are perishable. Services are heterogeneous. None of these
Service jobs are unskilled.
Which of the following is a characteristic that can be used to guide the design of service systems? Multiple Choice Services cannot be inventoried. Services are all similar. Quality work means quality service. Services businesses are inherently entrepreneurial. Even service businesses have internal services.
Services cannot be inventoried.
Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations? Multiple Choice Intermediate range Long range Short range Current Upcoming
Short range
Design for manufacturing and assembly delivers product improvements by emphasizing which of the following? Multiple Choice Reducing product quality during the assembly process Simplification of the product by reducing the number of separate parts Reducing equipment in the production process Designing products so they can be manufactured by a virtual factory Designing products that customers will want
Simplification of the product by reducing the number of separate parts
When a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called? Multiple Choice Operations capability analysis Straddling Order qualifying Order winning Inter-functional analysis
Straddling
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? Multiple Choice Task Time Teamwork Trust Talent
Task
A difference between project and continuous flow categories of process flow structures is which of the following? Multiple Choice The size and bulk of the product Discrete parts moving from workstation to workstation Degree of equipment specialization Being a "virtual factory" Profit per unit
The size and bulk of the product
The aim of quality function deployment (QFD) is: Multiple Choice To facilitate house of quality analysis To provide value analysis/value engineering input To integrate design for manufacturing and assembly (DFMA) To facilitate better cooperation between business functions To get the voice of the customer into the design of a product
To get the voice of the customer into the design of a product
T or F Effectiveness means doing the right things to create the most value for the company.
True
T or F The Gantt chart is an example of a project control chart.
True
T or F The term "assembly line" refers to progressive assembly linked by some material handling device.
True
Which of the following is not a typical phases of product development? Multiple Choice Concept development Value engineering System-level design Testing and refinement Production/ramp-up
Value engineering
Which of the following basic types of process structures is one in which similar equipment or functions are grouped together? Multiple Choice Project Work center Manufacturing cell Assembly line Continuous process
Work center
A project can be subdivided into which of the following? Multiple Choice Job orders Sub-jobs Work packages Sub-paths Events and decisions
Work packages
Which of the following is not a typical phases of product development? Multiple Choice Concept development Planning System-level design early market feedback Production/ramp-up
early market feedback
n a firm, if the employees attend a training program, then the time to assemble one unit reduces by 10%. Training program will Multiple Choice increase the labor productivity only increase the multifactor productivity only increase both labor and multifactor productivity decrease capital productivity have no effect on productivity.
increase both labor and multifactor productivity
In a firm, all other things remaining the same, if the material usage per unit of final product decreases to half of the current usage, then the firm will Multiple Choice double the material productivity increase the multifactor productivity increase the multifactor productivity and double the material productivity decrease capital productivity have no effect on productivity.
increase the multifactor productivity and double the material productivity
The correct order in the good-services continuum is Multiple Choice pure services - core Services - core goods - pure goods pure goods - pure services - core services - core goods pure goods - pure services - core goods - core services pure goods - core goods - core services - pure services core goods - core services - pure goods - pure services
pure goods - core goods - core services - pure services
In designing service systems, as you go from mail contact to phone contact to face to face total customization, which of the following is most appropriate? Multiple Choice sales opportunity decreases while degree of customer/server contact increases. sales opportunity decreases while degree of customer/server contact decreases. sales opportunity increases while degree of customer/server contact decreases. sales opportunity increases while degree of customer/server contact increases. None of the above
sales opportunity increases while degree of customer/server contact increases.