OBA 335 Lecture Quizes 1-8

OM studies how products and services are _____?

made or provided

Strategic Fit Read 2.4 Strategic Fit Now answer the following question: Higher volume in a process is generally associated with:

more capital intensity.

The process that includes the activities required to produce and deliver the service or product to the customer is called the:

order fulfillment process.

A single ticket taker can tear tickets and direct movie patrons to their seats at a rate of 90 per hour. Customers arrive every minute for assistance and always wait, regardless of how long the line gets. Arrivals are governed by the Poisson distribution and service is governed by the exponential distribution. What is the arrival rate? A. 90 per hour B. 2/3 minute C. 60 per hour D. 1 minute

C

Process Strategy Decisions Read the part after the opening vignette Now answer the following question:Several key decisions must be made in building an effective process design. Which one of the following best identifies them?

Capital intensity, resource flexibility, customer involvement, and process structure

After compiling a list of 15 reasons that might lead to a foot-long sandwich falling short of 12 inches, you want to identify a few most influential reasons. Which of the following tools is the best?

Pareto chart

Budgeting, recruiting, and scheduling are examples of these types of processes

Support process

Internal Supplier

The Receiving Department at ABC

Internal Customer Please select the correct answer.

The Shipping Department at ABC

All of the following are core competencies except

competitive priorities.

A set of activities that delivers value to external customers is a:

core process.

The process that facilitates the placement of orders and identifies, attracts, and builds relationships with external customers is called the

customer relationship process

A manufacturing plant is capable of producing 10 tons of product per day when running three shifts with no breakdowns and plenty of raw materials. Over the past week, the plant has produced an average of 7.3 tons per day because the third shift has devoted much of their time to preventive maintenance. What is the utilization of the plant?

73%

What is the difference between a histogram and a Pareto chart?

A histogram is about a continuous variable, while a Pareto chart is about categorical variable.

Operations are the most _____ part of any organization

costly

According to the above process chart, how long (in minutes) does this process take from the beginning to the end?

50

A McDonald restaurant can serve 5000 meals a day. However, on a regular day, only 4000 meals are sold. The market demand is an example of ___. Choose your answer first and then listen to this.

market constraint bottleneck

Corporate Strategy and Core Competencies Read 1.4 Operations Strategy, skip "1.4.2 Market Analysis" Watch Figure 1.5 Animation Now answer the following question:Core competencies are:

the unique resources and strengths that management considers when formulating strategy.

Finally solve problem 23 at the end of Supplement A. Draw your decision tree on paper. You are required to turn in this tree drawing. Compare your tree with the one on the last slide. Solve it. The company should buy two machine(s) initially and the expected payoff of this alternative is $162,000 .

two $162,000

According to the above swim lane flowchart, how many times this process is handed off between Sales department and Finance department?

1

Now read the rest of the section including Example A.8 Analyzing a Decision Tree and Figure A.5 Animation. Now answer the following question:Match the components of decision trees to the shapes used. 1) Decision Node 2) Event node 3) Alternative 4)Event (outcome) 5)Payoff

1) Square shape 2) circle shape 3)Branch leaving a square node 4) Branch leaving a circle node to the right 5)leaf (end) of tree

In the previous car wash example, the bottleneck of the standard wash process is A4, which takes 15 minutes. Therefore the cycle time of the standard wash process is 15 minutes per car and the throughput time of the standard wash process is 48 minutes .

1)15 minutes per car 2)48 minutes

Production and Inventory Strategies Read 2.2.3 Production and Inventory Strategies Now answer the following question:Match each product to the best inventory strategy. 1)A birthday cake with ingredients and decoration chosen by customer 2)A Subway Sandwhich 3)A chicken Cesar wrap sitting in the refrigerator of Lillis Cafe 4)Gasoline

1)Make-to-order 2)Assemble-to-order 3)Make-to-stock 4)make-to-stock

1)There are enough desks for 64 students. 2)There are 55 chairs. 3)The fire code allows 63 occupants. 4)This classroom can hold a class for 55 students with the current resources.

1)constraint but not bottle neck 2)constraint and bottle neck 3)constraint but not bottleneck 4)capacity

Now answer the following question:In this decision tree, there are 3 decision nodes, 3 event nodes, 7 payoff/leaf nodes.

3 3 7

Compared to the industry average lead time of 6 months from design to shelf, it takes Zara only ______ to accomplish the same.

3 Weeks

The data in the above checklist was collected during a total of ______-minute time period (the total time it took to collect all the data).

80

A single ticket taker can tear tickets and direct movie patrons to their seats at a rate of 90 per hour. Customers arrive every minute for assistance and always wait, regardless of how long the line gets. Arrivals are governed by the Poisson distribution and service is governed by the exponential distribution. What is the service rate? A. 90 per hour B. 2/3 minute C. 60 per hour D. 1 minute

A

Which of the following activities is NOT part of the operations at LCB? Teaching a class Cleaning bathrooms Reserving a classroom Correct! All of the other choices are part of operations at LCB.

All of the other choices are part of operations at LCB.

Regarding this news story on the length of Subway's foot-long sandwichesLinks to an external site., what process analysis tool we learned could be the most relevant to identify if this problem is common?

Histogram

Which tool among the following is not used in Example 2.4 Identifying Causes of Poor Headliner Process Failures?

Histogram

Can you draw a flowchart to show the improved stewarding process according to the description in the video? In the video (4:38, 8:14, the POI team was seen working using a Histogram . The reason why stewards are idle was the LEAST likely metrics that was measured by that tool.

Histogram the reason why stewards are idle

Which one of the following is not mentioned as part of Hard Rock Cafe's operations management?

How to get the capital needed to open a new restaurant

Introduction Read 1.1 Role of Operations in an Organization Now answer the following question:Which one of the following is NOT one of the basic functions of an organization? Human Resources Finance Marketing Operations

Human Resources

Now answer the following question:Which if the following is true?

In a typical batch process, we try to identify bottleneck as one specific resource that might limit our ability to meet the demand.

Which one of the following is not mentioned as part of operations management at Frito Lay?

Reporting annual financial performance to share holders

Operations from a Process Perspective Read 1.2 A Process View - How Processes Work Now answer the following question:OM deals with ______. inputs outputs processes customers feedback all of the other options

all of the other options

Boulder should ______. (lecture quiz 3)

buy

Process Structure in Services - Customer Contact Read entire 2.1 Process Structure in Services Now answer the following question:A hair salon requires ______ because customers are ______.

high contact; present

Process analysis focuses on:

how work is actually done.

Hahn should ______.

make

According to the flowchart, what will happen if a product ordered is not in stock?

It depends.

Expansionist Strategy vs. Wait-and-See Strategy Read 5.2.2 Timing and Sizing Expansion and watch Figure 5. animation Be ready to give examples of expansionist vs. wait-and-see strategy. Answer the following question regarding cushion levels. 1)Higher level of variation in demand leads to 2)Higher level of capital intensity leads to 3)The higher level of emphasis on the importance of timely service leads to

1)higher level of cushion 2)lower level of cushion 3)higher level of cushion

Henry Ford's Model T could be built in ______ of the time it took to build previous models.

1/10

A local printing shop has a copier that had been running at 75% of its capacity yesterday, when about 3,000 pages were copied using that copier. The capacity of that copier is ______ pages per day. Hint: since utilization = output rate / max capacity, then max capacity = output rate / utilization.

4000

To help the students improve their grades, the class should work on the first ______ causes with the highest frequency.

5

Competitive Priorities Read 1.5 Competitive Priorities and Capabilities Now answer the following question:Which one of the following statements concerning competitive priorities is TRUE? -By providing customized toys, a firm is competing mainly on the basis of delivery speed. -All nine dimensions of competitive priorities should be given equal emphasis in order to survive in the increasingly competitive market. -A firm competing along the dimension of volume flexibility will generally be expected to do well with a product or service with a seasonal or cyclical demand pattern. -Federal Express has registered impressive increases in sales and profits by emphasizing development speed.

A firm competing along the dimension of volume flexibility will generally be expected to do well with a product or service with a seasonal or cyclical demand pattern.

In the single-server model: A. the probability of n arrivals in T time periods comes from a normal distribution. B. customers are assumed to arrive at constant intervals of time. C. the variability of customer arrivals is most often described by a Poisson distribution. D. the mean of the distribution of customer arrivals must be greater than the variance of customer arrivals to get meaningful results.

C

Chapter 5 Constraint Management, read "Microsoft Corporation" and the introduction section. Now answer the following question:What is this lecture going to be talking about?

How to identify the bottleneck of a process and how to improve it

Read 1.2 A Process View - How Processes Work Now answer the following question:Operations management is part of a production system that can be described in the following manner:Organization: inputs-->processes-->outputs.Which one of the following correctly describes a production system? Hint: processes should involve actions, so please look for verbs in the middle part.

Furniture manufacturer: wood --> sanding --> chair

Six Sigma Process Improvement Model Read 2.5.3 Process Analysis Now answer the following question:We will NOT cover which steps of the Six Sigma Process Improvement Model in this lecture?

Generates a list of ideas for improvements. After implementing the improvements, monitor the process to make sure that high performance levels are maintained.

Given the above analysis, will adding another employee be beneficial in lowering the overall maintenance costs? One would like to use a finite-source model that has multiple servers to calculate the new average number of customers in the system. If the reduced idle robot costs outweigh the extra labor costs, then we should add another repair person on call. Another improvement could be to start doing preventive maintenance, which is a lot cheaper than repairing broken robots and would reduce the frequency of robots breaking down unexpectedly. Now answer the following question:What changes would happen to the waiting line system if preventive maintenance is adopted?

The arrival rate of broken robots would decrease.

Strategic Fit Which of the following statements about a high customer contact​ front-office service process is​ true?

The customer​ (internal or​ external) is​ present, actively​ involved, and receives personal attention.

Read the first paragraph in Supplement A.4 Now answer the following question:What are the common features of problems that decision tree model is good for? Choose all that apply.

There is uncertainty involved. There are decisions that need to be made in sequence.

Now answer the following question:In the decision tree for Solved Problem 4, there is(are) 1 decision node(s), 2 event node(s), and 6 payoff/leaf nodes. There are 2 alternatives and 3 events/outcomes.

1 2 6 2 3

Read the opening case in the textbook to get a sense what process strategies consist of and how they can impact the quality of service of a business. Now answer the following question:The CVS task force team were trying to address all the following problems except: -The information system didn't track refill limits. -The drug utilization review system would delay the prescription fulfillment. -The insurance checking system malfunctioned. -All of these are the problems that the CVS task force team was trying to address.

All of these are the problems that the CVS task force team was trying to address.

Now answer the following question:What is NOT a capacity decision that 3M made regarding the N95 masks according to the reading?

Where to sell these masks?

Another Gantt Chart Exercise Now let's do another Gantt chart exercise to make sure you got it. Draw a Gantt chart for the following process and then answer the questions. The throughput time of this process is 12 minutes. The cycle time of this process is 5 minutes. The bottleneck is step B . The capacity of this process is 12 units per hour.

12 5 B 12

Test your understanding with the following question. Students arrive at a university business library during peak evening hours at a rate of 40 students every half hour. Each student stays an average of two hours. On average, how many students are in the library at any given moment during the peak evening hours? Hover for hint.Links to an external site. The answer would be very useful when deciding how big a study area this library should have.

160

Now here is another situation. Let's assume again we have unlimited machine time at each workstation. Also we have a shortage of working capital. However, we do have stocked up enough raw materials that we don't have purchase them for the foreseeable future. We only need to purchase parts using our limited working capital. What is the contribution margin for A and B now? (Hover to check your answerLinks to an external site.) Which product should have higher priority now?

A

Key Principles of the TOC This is a quite lengthy part in the etext. Go ahead and read about it and also the 5 steps of the practical application of the TOC. What is the single most important concept in TOC? Hint: which word appears over and over again in this section?

Bottleneck

Now answer the following question:Accoring to the above flow chart of Arnold Palmer Hospital, what should be done if the mother is NOT pre-registered and the birth is NOT eminent?

Register mother on 1st floor, then take her to labor & delivery triage department.

An ATM machine requires ______ because ______.

a mixture of high contact and low contact; one dimension of the process -the customer- must be present while the other dimension of the process -what is processed- is not people but information.

A class at an elementary school requires no more than two students sharing a computer in a classroom with 30 computers set up. As a result, the class size is set to 60. So the number of computers is a ___.

constraint bottleneck

Now do an exercise with the data given in this spreadsheet: 335.productivity.xlsxDownload 335.productivity.xlsx Do your calculation first following the video and then compare your results to the answers. Now answer the following question:What is your conclusion?

-Both labor productivity and multifactor productivity increased between week 2 and week 3. -Both labor productivity and multifactor productivity stayed virtually the same between week 1 and week 2.

Now answer the following question:If it costs $250,000 to construct a new unloading bay, how many years does it take for this investment to pay itself off, if this terminal works 24 hours a day, 7 days a week, and 52 weeks a year? (Enter the closest whole number of years)

1

Process Structure in Manufacturing - Product-Process Matrix Read entire 2.2 Process Structure in Manufacturing Watch Figure 2.3 Animation Watch the following clip for a discussion of this matrix. Now answer the following question:Match each product to the best choice of process structure 1) A Subway sandwich 2) 50 posters printed for a student club 3) An Iphone 4) Gasoline

1) Job Proces 2) Batch Process 3) Line Process 4) Continuous Process

Process Structure in Services - Customer-Contact Matrix and Service Process Structuring Watch Figure 2.2 Animation Read 2.1.2 service Process Structuring Now answer the following question: Match each process to the best structure choice. 1) Serving customers at a restaurant 2)Electricity generation 3)A financial consultant working with clients to set up their retirement plans

1)Hybrid Office 2) Back Office 3) Front Office

A fast-food restaurant featuring hamburgers is adding salads to the menu The price to the customer will be the same Fixed costs are estimated at $12,000 and variable costs totaling $1.50 per salad Preassembled salads could be purchased from a local supplier at $2.00 per salad Preassembled salads would require additional refrigeration with an annual fixed cost of $2,400 Expected demand is 25,000 salads per year What is the break-even quantity?

19,200

A single ticket taker can tear tickets and direct movie patrons to their seats at a rate of 90 per hour. Customers arrive every minute for assistance and always wait, regardless of how long the line gets. Arrivals are governed by the Poisson distribution and service is governed by the exponential distribution. What is the average combined time a customer waits in line and spends being seated by the ticket taker? A. 1.50 minutes B. 2.00 minutes C. 3.00 minutes D. 1.00 minute

B

To compile a list of the most likely reasons for a Subway foot-long sandwich to be shorter than 12 inches, which of the following tools is the best?

Cause-and-effect diagram

Strategies for Change Read 2.5 Strategies for Change and 2.5.2 Process Improvement Was the change of how the cat was killed in the process in the following cartoon a process improvement or a process reengineering? (viewer discretion is advised for cartoon violence and blood)

It was a process improvement because it changed only one part of the entire process.

When will sales be lost (choose the best answer)?

When a product is not in stock, and customers do not want to backorder, and customers do not want the alternative.

The process you are in right now - taking this lecture - requires ______ (from the perspective of the instructor) because the contact intensity is ______.

low contact; passive, out of sight

Given the break-even quantity and the demand in the previous question, they should ______ the salads.

make

Read the opening vignette "Apple Inc". According to the reading, Apple was able to achieve the highest quarterly revenue in history even during the pandemic due to its world-class skills in ______ practices. manufacturing operations supply chain management accounting and finance marketing

manufacturing operations supply chain management

Order Winners and Qualifiers Order winner is very much related to competitive priority. Now answer the following question:The first three cars I bought all fell apart around 50,000 miles. It was called planned obsolescence and no one seemed to care until companies entered the market and promised 70,000, then 80,000, and finally 100,000 warranties. What sets a great car apart from a good one now is not the quality, which is assumed, but performance, safety and fuel economy. A car that can achieve all three is highly sought after. In the automotive market, performance, safety and fuel economy are sterling examples of:

order winners.