Operations Midterm

________ is the maximum rate of output of a process or a system. A) Output rate B) Capacity C) Throughput rate D) Utilization

B) Capacity

Which one of the following statements concerning capacity cushions is best? A) Large capacity cushions are used more often when future demand is level and known. B) Small capacity cushions are preferred in capital intensive firms. C) Capacity cushions are used primarily in manufacturing organizations, not in-service organizations. D) Small cushions are used in organizations where the products and services produced often change.

B) Small capacity cushions are preferred in capital intensive firms.

Large, infrequent jumps in capacity are characteristic of companies that: A) have an expansionist strategy. B) have a wait-and-see strategy. C) have low utilization. D) have high utilization.

B) have a wait-and-see strategy.

In​ general, a less​ capital-intensive industry such as a hotel chain would do well with a utilization rate of A. approximately​ 18%. B. 60-70%. C. 30-40%. D. 100%.

B. 60-70%.

​_________ is a rule that allows a customer of higher priority to interrupt the service of another customer. A. A scheduling discipline B. A preemptive discipline C. First-come-first-serve D. An emergency policy

B. A preemptive discipline

Which of the following conditions is generally associated with a job​ process? A. High product or service volume. B. High resource flexibility. C. Resources are allocated to specific products. D. Relatively standardized products.

B. High resource flexibility.

A primary enabler of process reengineering is: A. fixed automation. B. information technology. C. ISO 14001. D. the​ service-product matrix.

B. information technology.

Which core process includes the activities required to produce and deliver the service or product to the external​ customer? A. new​ service/product development process B. order fulfillment process C. customer relationship process D. supplier relationship process

B. order fulfillment process

Which one of the following statements concerning the role of process reengineering is best? A) Reengineering is the fundamental rethinking and radical redesign of business processes. B) Reengineering efforts should focus on one functional department at a time. C) Information technology should be kept separate from reengineering initiatives. D) Reengineering requires an attitude of incremental improvement.

A) Reengineering is the fundamental rethinking and radical redesign of business processes.

In constraints management, "exploit the bottleneck(s)," means that the analyst should: A) create a schedule that maximizes the throughput of the bottlenecks. B) repeat the analysis process to look for other bottlenecks. C) consider increasing capacity of the bottleneck. D) schedule non-bottleneck resources to support the bottleneck

A) create a schedule that maximizes the throughput of the bottlenecks.

In which stage of the product life cycle should product strategy focus on process modifications as the product is being "fine-tuned" for the market? A) introduction B) growth C) maturity D) decline

A) introduction

Long-term capacity plans deal with: A) investments in new facilities. B) workforce size. C) inventories. D) overtime budgets.

A) investments in new facilities.

Back offices typically emphasize: A) low cost operations and on-time delivery. B) high divergence and customization. C) on-time delivery and customization. D) high customer contact and low cost operations.

A) low cost operations and on-time delivery.

The key decisions to eliminate activities that do not add value while improving those that do are an important part of: A) managing processes. B) managing customer demand. C) managing supply chains. D) managing people.

A) managing processes.

Competitive priorities: A) may change over time. B) are the cost, quality, time and flexibility dimensions that a process or supply chain actually possesses and is able to deliver. C) are used to distinguish between a service that is considered and one that is actually purchased. D) are developed by a review of internal operations capabilities.

A) may change over time.

The three major elements of the product decision are: A) selection, definition, and design. B) goods, services, and hybrids. C) cost, differentiation, and speed of response. D) legislative, judicial, and executive.

A) selection, definition, and design.

What​ decision-making condition must exist for the decision tree to be a valuable​ tool? A. Risk B. Certainty C. Uncertainty D. It​ doesn't matter; the tool is appropriate for all environments.

A. Risk

Gymtastic was able to serve large crowds of customers and then adjust operations to serve very few customers thanks to their competitive capability related to A. flexibility. B. time. C. quality. D. cost.

A. flexibility.

Which service process structure typically involves work flows with steps that vary from one customer to the​ next? A. front office B. back office C. hybrid office D. automated office

A. front office

Throughput time is defined as A. the total elapsed time from the start to the finish of a job being processed at one or more work centers. B. the elapsed time from the start to the finish of a​ job, not including the time the job waits for processing. C. the elapsed time a job spends at a bottleneck. D. the average time between products completed on an assembly line.

A. the total elapsed time from the start to the finish of a job being processed at one or more work centers.

The difference between​ people-processing service and​ possession-processing services is that: A. services are provided for the customer in​ both, but the customer must be present only in​ people-processing. B. services are provided to the customer who must be present in​ people-processing; services are provided for the customer who does not need to be present in​ possession-processing services. C. services are provided to the customer in​ both, but the customer must be present only in​ people-processing. D. services are provided for the customer who must be present in​ people-processing; services are provided to the customer who does not need to be present in​ possession-processing services.

B. services are provided to the customer who must be present in​ people-processing; services are provided for the customer who does not need to be present in​ possession-processing services.

Graphically, what occurs at the​ break-even quantity? A. the total revenue line is parallel with the total cost line B. the total revenue line crosses the total cost line C. the fixed cost line and the total revenue line cross D. the fixed cost line crosses the variable cost line

B. the total revenue line crosses the total cost line

Which of the following is an example of a nested process? A) At the start of the new semester, a student first pays tuition and then goes to the bookstore. B) A customer service representative verifies a caller's account information. C) A candidate's intent to graduate is checked for financial holds by the Bursar and for degree requirements by Advising before the diploma mill prints their sheepskin. D) A stockbroker calls a client and advises her to sell silver short.

C) A candidate's intent to graduate is checked for financial holds by the Bursar and for degree requirements by Advising before the diploma mill prints their sheepskin.

A politician conducting a town hall meeting, face-to-face with her constituents, is an example of: A) back office. B) passive contact. C) active contact. D) hybrid office.

C) active contact.

In constraints management, "elevate the bottleneck(s)," means that the analyst should: A) create a schedule that maximizes the throughput of the bottlenecks. B) repeat the analysis process to look for other bottlenecks. C) consider increasing capacity of the bottleneck. D) schedule non-bottleneck resources to support the bottleneck.

C) consider increasing capacity of the bottleneck.

When future demand is uncertain and sequential decisions are involved in capacity planning, a manager should use a: A) waiting line model. B) cash flow analysis. C) decision tree. D) gap analysis.

C) decision tree.

With flexible automation, the ability to reprogram instructions can be useful in: A) line flow, but not flexible flow, operations. B) flexible flow, but not line flow, operations. C) either line flow or flexible flow operations. D) situations in which top efficiency is mandatory, but only if volumes are high.

C) either line flow or flexible flow operations.

The process that includes the activities required to produce and deliver the service or product to the external customer is called the: A) customer relationship process. B) new service development process. C) order fulfillment process. D) supplier relationship process.

C) order fulfillment process.

Input measures include such metrics as: A) the number of customers served per hour. B) the number of trucks produced per day. C) the number of machine hours available. D) the number of bills processed in a week.

C) the number of machine hours available.

​Long-term capacity planning deals with which of the following​ factors? A. Overtime budgets B. Workforce size C. Investment in new facilities D. Inventories

C. Investment in new facilities

A major supplier to an auto manufacturer would most likely adopt which production and inventory​ strategy? A. Postponement strategy B. Assemble-to-order strategy C. Make-to-stock strategy D. Make-to-order strategy

C. Make-to-stock strategy

Core competencies reflect the collective learning of the organization. Core competencies include: A. employee benefits. B. an abundance of competitors. C. a​ well-trained, flexible workforce. D. an abundance of customers.

C. a​ well-trained, flexible workforce.

The criteria used in a preference matrix A. cannot be based on costs. B. must be based on costs. C. can be scored on any scale. D. cannot have a score greater than 100.

C. can be scored on any scale.

The common denominator for decisions on service processes is​ _______, but for manufacturing processes it is​ _______. A. customer​ variety; output volume B. customer​ contact; product variety C. customer​ contact; output volume D. customer​ variety; product variety

C. customer​ contact; output volume

Economies of scope are characterized by: A. high capital intensity and low resource flexibility. B. low capital intensity and high resource flexibility. C. high capital intensity and high resource flexibility. D. low capital intensity and low resource flexibility.

C. high capital intensity and high resource flexibility.

A workstation in a process is a bottleneck if A. it processes the smallest total workload. B. it has the smallest average capacity. C. it has the highest total time per unit processed. D. it has the lowest average utilization.

C. it has the highest total time per unit processed.

The three mainline functions of any business are: A. operations, accounting, and management. B. operations, marketing, and management. C. operations, marketing, and finance. D. operations, marketing, and information technology.

C. operations, marketing, and finance.

A diseconomy of scale is realized when A. the average cost per unit decreases as the​ facility's size increases. B. it becomes cheaper to produce fewer items per production period. C. the average cost per unit increases as the​ facility's size increases. D. the average cost per unit increases as the​ facility's size decreases.

C. the average cost per unit increases as the​ facility's size increases.

Of the seven key principles of the theory of​ constraints, which is the first​ principal? A. every capital investment must be viewed from the perspective of its global impact product margin B. maximizing the output and efficiency of every resource is required to maximize the throughput of the entire system C. the focus should be on balancing​ flow, not on balancing capacity D. the focus should be on balancing​ capacity, not on balancing flow

C. the focus should be on balancing​ flow, not on balancing capacity

Which of the following is an assumption of the​ single-server model? A. all customers are impatient B. the customer population is finite C. the mean service rate exceeds the mean arrival rate D. the length of the waiting line is limited

C. the mean service rate exceeds the mean arrival rate

Which one of the following statements about line balancing is best? A) If a precedence relationship exists between A and B, they cannot be assigned to the same station. B) If the desired output rate increases, the cycle time also tends to increase. C) The theoretical minimum number of stations can never be achieved, hence the name "theoretical." D) If a line's balance delay is minimized, its efficiency is maximized.

D) If a line's balance delay is minimized, its efficiency is maximized.

The Japanese method of organizing for product design features: A) teams. B) product managers (champions). C) distinct departments with assigned tasks. D) a single organization without subdivision or individual teams.

D) a single organization without subdivision or individual teams.

Brainstorming sessions must have: A) all participants together in the same room. B) a mechanism for evaluation of the ideas as they are surfaced. C) a means of implementing ideas as they are surfaced. D) a way for all participants to communicate.

D) a way for all participants to communicate.

Transition to production refers to the act of moving a product to production from what? A) inventory B) the supplier C) the market D) development

D) development

Which of the following product development strategies has the highest product development risk? A) acquiring the developer B) alliances C) joint ventures D) new internally developed products

D) new internally developed products

Service processes usually have: A) physical, durable output. B) low levels of customer contact. C) output that can be inventoried. D) shorter response times.

D) shorter response times.

Work should be released into the system when: A) a customer order is received. B) the first step in the process is idle. C) a customer order is completed. D) the bottlenecks need work.

D) the bottlenecks need work.

Bottlenecks exist in which type of manufacturing​ processes? A. job process B. batch process C. line process D. All of the above.

D. All of the above.

Which of the following is a way that managers may attempt to affect the rate of customer​ arrivals? A. advertising B. special promotions C. differential pricing D. All of the above.

D. All of the above.

Anna's landscaping business has a capacity​ gap; which alternative can best be described as​ "simply to do​ nothing"? A. Follow-the leader strategy B. Wait-and-see strategy C. Expansionist strategy D. Base-case strategy

D. Base-case strategy

Which of the following scenarios illustrates an order​ winner? A. safety conscious customer considers only vehicles that have side air bags and​ anti-lock brakes. B. As part of her initial​ search, Janice screened mutual funds based on a​ five-year return of twenty percent and the manager tenure of at least ten years. She planned to study the prospectus for each of those funds before investing her nest egg. C. A company specifies that they will purchase materials only from suppliers that have achieved a specific certification. D. Ken had always been fascinated by shiny​ objects, so he plucked the​ chrome-plated thermos from the shelf and raced to the nearest checkout line.

D. Ken had always been fascinated by shiny​ objects, so he plucked the​ chrome-plated thermos from the shelf and raced to the nearest checkout line.

Low manufacturing volumes typically dictate the following process​ decision: A. Less resource flexibility. B. More vertical integration. C. A line process. D. Less capital intensity and automation.

D. Less capital intensity and automation.

Which of the following are characteristics of service provider​ operations? A. Low labor requirements B. Tangible output C. Low customer contact D. Perishable outputs

D. Perishable outputs

A measure of the reserve capacity a process has to handle in unexpected increases in demand is the: A. capacity utilization rate. B. capacity constraint limit. C. capacity bottleneck. D. capacity cushion.

D. capacity cushion.

The theory of constraints methods increase the​ firm's profits more effectively by focusing on​ what? A. eliminating processing variation B. eliminating defects C. cutting system costs D. making materials flow rapidly through the entire system

D. making materials flow rapidly through the entire system

The foundation for managing processes and value chains is: A. project management. B. globalization. C. a market orientation. D. operations strategy.

D. operations strategy.

Waiting-line models often are used in capacity planning in order to A. analyze the payoff of a series of​ events, such as​ competitors' actions, which requires a sequence of decisions regarding capacities. B. evaluate different capacity expansion alternatives when demand is uncertain. C. understand why forecast accuracy declines as the forecasting horizon lengthens. D. select an appropriate capacity cushion for a high​ customer-contact process.

D. select an appropriate capacity cushion for a high​ customer-contact process.

What is the name of the product mix decision method that produces the products with the highest contribution margins and ignores fixed​ costs? A. DBR. B. the bottleneck method C. the Goal method D. the traditional method

D. the traditional method

After drawing a decision​ tree, we solve it by working from right to left. When calculating the expected payoff for each event​ node, A. we pick the alternative that has the average expected payoff. B. we pick the alternative that has the best expected payoff. C. we add the payoff of each event branch to the​ event's probability and then multiply these sums. D. we multiply the payoff of each event branch by the​ event's probability and then add these products.

D. we multiply the payoff of each event branch by the​ event's probability and then add these products.