OPMT303Exam1

Efficiency in Line Balancing

100% - Percent Idle Time

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 based on low-cost and high-volume. A. Variation B. Streamlined flow C. Quality D. Capacity E. Productivity

A

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. The most likely choice for a Make-to-Order supply chain strategy.

A

Goods producing organizations are not involved in service activities.

False

Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials.

False

Most people encounter operations only in profit-making organizations.

False

Operations, marketing, and finance function independently of each other in most organizations.

False

Service operations require additional inventory because of the unpredictability of consumer demand.

False

Special-purpose technology is a common way of offering increased customization in manufacturing or services without taking on additional labor costs.

False

The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities.

False

The use of models will guarantee the best possible decisions.

False

The word "technology" is used only to refer to "information technolog

False

operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services.

False

An operations strategy for process selection should recognize that:

Flexibility is not always the best choice

Which of the following statements about Fixed-Position layouts is true? I. Used for Project process types, such as construction projects II. Lower skilled labor is usually required III. Lack of storage space can present problems IV. Administrative costs of coordinating activities can be significant

I, III, IV

fixed position layout

Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed

The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements is called:

Line balancing

Elton Mayo's "Hawthorne Experiment" was the focal point of the Human Relations Movement, which emphasized the importance of the human element in job design

True

Many operations management decisions can be described as tradeoffs.

True

Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nation

True

One concern in the design of production systems is the degree of standardization.

True

People who work in the field of operations should have skills that include both knowledge and people skills.

True

The greater the degree of customer involvement, the more challenging the design and management of operations

True

The value of outputs is measured by the prices customers are willing to pay for goods or services.

True

Union activity can affect a firm's technology choices, but not the other way around.

True

ervice often requires greater labor content, whereas manufacturing is more capital intensive.

True

A group of machines including supervisory computer control, automatic material handling, and possibly robots is called:

a flexible manufacturing system

In the context of line balancing, the line's capacity is

a function of its cycle time

The key aspects of an organization's process strategy are

capital intensity and flexibility

A systems approach means that we concentrate on efficiency within a subsystem and thereby assure overall efficiency.

false

Managers should most often rely on quantitative techniques for important decisions since quantitative approaches result in more accurate decisions.

false

Operations Management activities will be less important in the future because many firms are becoming service-oriented operations rather than goods producing operations.

false

Operations management and marketing are the two functional areas that exist to support activities in other functions such as accounting, finance, IT and human resources.

false

Operations managers, who usually use quantitative approaches, are not really concerned with ethical decision-making.

false

The lean production philosophy has been slow to be adopted in service industrie

false

Job Shop Process

low volume, customization, flexibility to produce a variety of products or services, intermittent

A modern firm has two supply chain considerations - external links with suppliers and customers, and an internal network of flows to and between the operations function itself.

true

A systems approach emphasizes interrelationships among subsystems, but its main theme is that the whole is greater than the sum of its individual parts.

true

Among Ford's many contributions was the introduction of mass production, using the concept of interchangeable parts and division of labor

true

As an abstraction of reality, a model is a simplified version of a real phenomenon.

true

Lean production systems incorporate the advantages of both mass production and craft production.

true

Lean production systems use a highly skilled work force and flexible equipment.

true

Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom made parts.

true

Service involves a much higher degree of customer contact than manufacturing

true

The Pareto phenomenon is one of the most important and pervasive concepts that can be applied at all levels of management.

true

The optimal solutions produced by quantitative techniques should always be evaluated in terms of the larger framework

true

Business organizations compete through some combination of: a. price, quality, delivery time, and product or service design. b. Innovation, value, order winners, and order qualifiers. c. Mission, objectives, strategic decisions, and distinctive competence. d. Quality, capacity, culture, and customers. e. Technology, culture, capacity, and inventory.

A

Business organizations consist of three major functions which, ideally: A. support one another B. are mutually exclusive C. exist independently of each other D. function independently of each other E. do not interface with each other

A

If a line is balanced with 80 percent efficiency, the "balance delay" would be: A. 20 percent B. 80 percent C. 100 percent D. unknown, since balance delay isn't related to efficiency E. depends on the next operation

A

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

Product design and choice of location are examples of _______ decisions. A. strategic B. tactical C. operational D. customer focused E. design

A

Two widely used metrics of variation are the __________ and the _________. A. mean; standard deviation B. productivity ratio; correlation C. standardized mean; assignable deviation D. randomized mean; standardized deviation E. normal distribution; random variation

A

Which is not a significant difference between manufacturing and service operations? A. cost per unit B. uniformity of output C. labor content of jobs D. customer contact E. measurement of productivity

A

Cellular layout is a term associated with: A. wireless telecommunication B. part families C. functional (or process) layouts D. assembly lines E. job shops

B

Manufacturing work sent to other countries is called: A. downsized B. outsourced C. internationalization D. vertical integration E. entrepreneurial ship

B

Marketing depends on operations for information regarding ___________. A. productivity B. lead time C. cash flow D. budgeting E. corporate intelligence

B

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

Which type of processing system tends to produce the most product variety? A. Assembly B. Job-Shop C. Batch D. Continuous E. Project

B

he responsibilities of the operations manager are: A. planning, organizing, staffing, procuring, and reviewing B. planning, organizing, staffing, directing, and controlling C. forecasting, designing, planning, organizing, and controlling D. forecasting, designing, operating, procuring, and reviewing E. designing and operating

B

38. Operations management involves continuous decision-making; hopefully most decisions made will A. redundant B. minor in nature C. informed D. quantitative E. none of the above

C

A 'product package' consists of: A. the exterior wrapping B. the shipping container C. a combination of goods and services D. goods if a manufacturing organization E. customer relations if a service organization

C

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

Dealing with the fact that certain aspects of any management situation are more important than others is called: A. analysis of tradeoffs B. sensitivity analysis C. recognition of priorities D. analysis of variance E. decision table analysis

C

Farming is an example of: A. an obsolete activity B. a virtual organization C. non-manufactured goods D. a growth industry E. customized manufacturing

C

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

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

Knowledge skills usually don't include: A. process knowledge B. accounting skills C. communication skills D. global knowledge E. all of the above

C

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

Product design and process selection are examples of _______ decisions. A. financial B. tactical C. system design D. system operation E. forecasting

C

Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision-makers to consider ______________ in response to the ___________. A. flexibility; pressure to be more efficient B. offshoring; need to promote domestic production C. sustainability; threat of global warming D. technology; impact of random variation E. forecasting; stabilization of demand

C

The process of comparing outputs to previously established standards to determine if corrective action is needed is called: A. planning B. directing C. controlling D. budgeting E. disciplining

C

Which of the following does not relate to system design? A. altering the system capacity B. location of facilities C. inventory management D. selection and acquisition of equipment E. physical arrangement of departments

C

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

Which of the following is not true about systems approach? A. A systems viewpoint is almost always beneficial in decision making. B. A systems approach emphasizes interrelationships among subsystems. C. A systems approach concentrates on efficiency within subsystems. D. A systems approach is essential whenever something is being redesigned or improved. E. All of the above are true

C

Which one of the following would not generally be classified under the heading of transformation? A. assembling B. teaching C. staffing D. farming E. consulting

C

Measurements taken at various points in the transformation process for control purposes are called: A. plans B. directions C. controls D. feedback E. budgets

D

What parallel operations management activity is performed concurrently with process selection, the decisions for which are strategic, long-lasting, and difficult to change after implementation?

Capacity Planning

Which types of manufacturing tend to have low or very low variable costs?

Continuous, repetitive

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

Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function. A. operation B. marketing C. purchasing D. finance E. internal audit

D

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

Operations Management (OM) 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

Some companies attempt to maximize the revenue they receive from fixed operating capacity by influencing demands through price manipulation. This is an example of __________________: A. Illegal price discrimination B. Collusion C. Volume analysis D. Revenue management E. Outsourcing

D

What is credited with gains in industrial productivity, increased standards of living and affordable products? A. personal computers B. the internet C. mass transportation D. assembly lines E. multi-level marketing

D

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

Which of the following is not a benefit of using models in decision making? A. They provide a standardized format for analyzing a problem. B. They serve as a consistent tool for evaluation. C. They are easy to use and less expensive than dealing with the actual situation. D. All of the above are benefits. E. None of the above is a benefit.

D

Which of the following is not a characteristic of service operations? A. intangible output B. high customer contact C. high labor content D. easy measurement of productivity E. low uniformity of output

D

Which of the following is not an ongoing trend in manufacturing? A. globalization B. quality improvement C. flexibility and agility D. mass production for greater economies of scale E. technological advances

D

Which of the following statements about variation is FALSE? A. Variation prevents a production process from being as efficient as it can be. B. Some variation can be prevented. C. Variation can either be assignable or random. D. Any variation makes a production process less productive. E. Random variation generally cannot be influenced by managers.

D

A manager wants to know the range of output in UNITS PER DAY for a given product given the individual task times. How does she calculate the range?

Divide operating time per day by the cycle time- first maximum cycle time, then minimum cycle time.

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

Operations and sales are the two ________ functions in businesses. A. strategic B. tactical C. support D. value-adding E. line

E

Production systems with customized outputs typically have relatively: A. high volumes of output B. low unit costs C. high amount of specialized equipment D. fast work movement E. skilled workers

E

Which of the following is essential to consider with respect to managing a process to meet demand? A. strategy B. demand forecasts C. capacity D. random variability E. all of the above

E

Which of the following is not a type of operations? A. goods production B. storage/transportation C. entertainment D. communication E. all the above involve operations

E

'Value added' by definition is always a positive number since 'added' implies increases.

False

Assembly lines achieved productivity but at the expense of standard of living.

False

Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used.

False

What is the basic objective of Layout Planning?

To facilitate a smooth flow of work, material, and information through the system

A measure of effectiveness that measures the percentage of idle time of the line is known as

balance delay