Operations Management Test 1 Additional Questions

A basic question in capacity planning is: a) what kind is needed b) how much is needed c) when is it needed d) all of the above e) none of the above

d) all of the above

In which type of processing system would gasoline be produced from crude oil? a) job shop b) batch c) assembly d) continuous e) project

d) continuous

If a line is balanced with 80% efficiency, the "balance delay" would be: a) 20% b) 80% c) 100% d) unknown, since balance delay isn't related to efficiency e) depends on the next operation

a) 20% Efficiency = 100% - Balance Delay 80% = 100% - B 80% + B = 100% B = 20%

Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each 8-hour shift. If the production is increase to 1,200 pretzels each shift, then productivity will have increased by: a) 50% b) 33% c) 25% d) 67%

a) 50% 1,200 - 800 = 400 400 / 800 = 0.5

What are the typical operations objectives? a) cost, quality, delivery time, and product or service design b) innovation, value, order winners, and order qualifiers c) mission, aggregate planning, and distinctive competence d) quality block, capacity, inventory, and customer supply chain e) technology, culture, capacity, and inventory

a) cost, quality, delivery time, and product or service design

Assembly lines have a number of characteristics. Which of the following is typically NOT a characteristic of assembly lines? a) flexible labor and equipment (for example, general purpose tools) b) large capital investment, use of automation c) high equipment utilization and efficiency rates d) highly standardized product designs e) assembly lines are the most likely choice for a Make-to-Stock supply chain strategy

a) flexible labor and equipment (for example, general purpose tools)

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) outsourcing; supply chain b) offshoring; lean c) downsizing; total quality d) optimizing; inventory e) internationalization; intercultural

a) outsourcing; supply chain

Product design and choice of location are examples of _______________ decisions. a) strategic b) tactical c) operational d) customer focused e) design

a) strategic

A firm pursuing a strategy based on customization and variety will tend to structure and manage its supply chain to accommodate more ________________ than a firm pursuing a strategy on low-cost and high-volume. a) variation b) streamlined flow c) quality d) capacity e) productivity

a) variation

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) Irwin phenomenon b) Pareto phenomenon c) Stevenson phenomenon d) Tellier phenomenon e) Adam Smith phenomenon

b) Pareto phenomenon

Which type of processing system tends to produce the most product variety? a) assembly b) job-shop c) batch d) continous e) project

b) job-shop

An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of $70 per unit. The break-even point volume is: a) 100 b) 2,000 c) 500 d) 1,000 e) none of these

c) 500 FC/(R - v) 10,000 / (70 - 50) 10,000 / 20 = 500

Given the following information, what would efficiency be? Effective Capacity = 50 units per day Design Capacity = 100 units per day Actual Output = 30 units per day a) 40% b) 50% c) 60% d) 80% e) 90%

c) 60% Efficiency = actual output / effective capacity = 30 / 50 = 0.6

If the output rate is increased but the average unit costs also increase we are experiencing: a) market share erosion b) economies of scale c) diseconomies of scale d) value added accounting e) step-function scale up

c) diseconomies of scale

For an organization to grow its market share, it must: a) advertise using multimedia b) lower prices c) exceed minimum standards of acceptability for its products or services d) establish an internet website e) broaden its mission statement

c) exceed minimum standards of acceptability for its products or services

A common goal in designing process layouts is: a) minimizing the number of workers b) minimizing idle time c) minimizing transportation costs d) maximizing work-station productive time e) maximizing transportation distances

c) minimizing transportation costs

Laser technology used in surgical procedures is an example of technological advances in: a) product b) service c) process d) information e) reverse engineering

c) process

Which of the following is a recent trend in business? a) pollution control b) total quality management c) supply chain management d) competition from foreign manufacturers e) technological change

c) supply chain management

Operations Management: a) is a network of manufacturing and service options b) is an essential function for primarily for-profit organizations c) is narrowly dedicated to a single corporate function d) focuses on decisions about the production and delivery of a firm's products and services e) prioritizes sustainability over profits

d) focuses on decisions about the production and delivery of a firm's products and services

Which of the following is NOT a characteristic of service operations? a) intangibility of the offering b) simultaneous production and consumption c) no finished goods inventory d) quality problems can always be fixed easily in the service sector e) variation in service operations is greater than in manufacturing operations

d) quality problems can always be fixed easily in the service sector

A reason for the importance of capacity decisions is that capacity: a) limits the rate of output possible b) affects operating costs c) is a major determinant of initial costs d) is a long-term commitment of resources e) all of the above

e) all of the above

Operations and sales are the two ___________ functions in business. a) strategic b) tactial c) support d) value-adding e) line

e) line