Quiz reviews

The process of comparing outputs to previously established standards to determine if corrective action is needed is called:

C. Controls are used to maintain performance

When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive.

C. Excess capacity

When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is ___________.

C. Factor rating

Which of the following is an advantage of E-business? (I) reduction of transaction costs (II) shortened supply chain response time (III) greater customer loyalty

C. I and II

The advantages of automation include: (I) Reduced output variability. (II) Reduced variable costs. (III) Machines don't strike or file grievances. (IV) Machines are always less expensive than human labor.

C. I, II, and III

Behavioral approaches to job design include:

C. Job Rotation

_________ has helped business concentrate on their core business.

C. Outsourcing

The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is __________.

C. Pareto analysis

One form of long term team that is increasingly being used, especially in lean production settings, is:

C. Self-directed

The ultimate goal of lean operations is to have:

C. a smooth, rapid flow of materials through the system

The management of supply chain inventories focuses on:

C. both internal and external inventories

The two most important factors in choosing a forecasting technique are:

C. cost and accuracy

If the output rate is increased but the average unit costs also increase we are experiencing:

C. diseconomies of scale.

10. One area to which aggregate planning decisions relate is:

C. inventory levels

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

C. line balancing

The mean absolute deviation (MAD) is used to:

C. measure forecast accuracy

In the lean philosophy, the ideal lot size is:

C. one unit

The purpose of "cycle counting" is to:

C. reduce discrepancies between inventory records and actual

In which type of operations are you likely to see, at most, only minor variations in the product or service being produced using the same process and the same equipment?

C. repetitive production

A control chart used to monitor the process mean is the:

C. x-bar chart

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. Skull's president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: Location Annual Fixed Variable Alpha 5000 200/person Beta 8000 150/person What would be total annual costs for either location at the point of indifference?

D. $17,000 5000+200X = 8000+150x and solve for X, then plug in

Small changes in consumer demand can result in large variations in orders placed because of the ...

D. Bullwhip effect

In which type of processing system would gasoline be produced from crude oil?

D. Continuous

Measurements taken at various points in the transformation process for control purposes are called:

D. Feedback is used to monitor and improve processes.

Which of the following is a barrier to integration of separate organizations in the supply chain? (I) conflicting objectives of the companies in the chain. (II) different level of capacity of the companies in the chain. (III) reluctance of the organizations in the chain to allow other organizations access to their data.

D. I and III

What is credited with gains in industrial productivity, increased standards of living and affordable products?

D. Mass production has played a prominent role in increasing standards of living.

Which of the following is not a benefit of using models in decision making?

D. Models are useful tools for making decisions without confronting the actual situation with all of its complexity.

Which of the following is not a characteristic of service operations?

D. The productivity of service operations is often hard to measure.

A quality circle is ________.

D. a voluntary group of employees

A basic question in capacity planning is:

D. all of the above

A potential obstacle to conversion to a lean system is:

D. all of the above

The design of work systems involves:

D. all of the above

Which of the following is a principle required for ethical behavior in purchasing?

D. all of the above.

The quality control improvement tool that resembles a "fishbone" is ________.

D. cause-and-effect diagrams

The purpose of control charts is to:

D. distinguish between random variation and assignable variation in the process

Which of the following is the last step in the procedure for making location decisions?

D. evaluate alternatives and make a selection

In a supermarket, a vendor's restocking the shelves every Monday morning is an example of:

D. fixed order interval

Which of the following is not a basic option for altering the availability of capacity in a service environment?

D. inventory

Which of the following is not generally considered an advantage of specialization?

D. low equipment costs

The direct result of disaggregating the aggregate plan is the:

D. master schedule

Productivity is expressed as:

D. output divided by input

A time-ordered plot of representative sample statistics is called a:

C. Control Chart

A control chart used to monitor the fraction of defectives generated by a process is the:

A. p-chart

The method of financial analysis which focuses on the length of time it takes to recover the initial cost of an investment is:

A. payback

Product design and choice of location are examples of _______ decisions

A. strategic

Examination of the sources of supply for purchased parts or materials in order to improve performance is called:

A. vendor analysis

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. Supply chain management takes a more systemic view of the firm, its operations, and its suppliers.

Two widely used metrics of variation are the __________ and the _________.

A. The mean and standard deviation summarize important facets regarding the variation in a process.

The substitution of machinery that has sensing and control devices for human labor is best described by the term:

A. automation

A persistent tendency for forecasts to be greater than or less than the actual values is called:

A. bias

Which one of the following is not considered an important factor in service layout design?

A. cost minimization and product flow

The method for evaluating location alternatives which uses their total cost curves is:

A. cost-volume analysis

In doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with:

A. just gallons of paint, without concern for the different colors and sizes

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. Skull's president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: Location Annual Fixed Variable Alpha 5000 200/person Beta 8000 150/person If it is estimated that thirty persons will be living in this new chapter house, what would be the Skull's annual cost savings by selecting the less costly location, rather than the more costly?

B. $1,500 (5000+200*30)-(8000+150*30)= 1500

The Balanced Scorecard is a useful tool for helping managers translate their strategy into action in the following areas:

B. Customers; Financial; Internal Business Processes; Learning and Growth

Which of the following is not a benefit of small lot sizes in lean systems?

B. Each product is produced less

The activity which begins with a request from within the organization is:

B. Purchasing cycle

The responsibilities of the operations manager are:

B. The scope of operations management ranges across the organization.

Utilization is defined as the ratio of:

B. actual output to design capacity

Production units have an optimal rate of output where:

B. average unit costs are minimum

A process results in a few defects occurring in each unit of output. Long-run, these defects should be monitored with ___________.

B. c-charts

If no variations in demand or lead time exist, the ROP will equal:

B. expected usage during lead time

A factor that makes it desirable for business organizations to actively manage their supply chains is:

B. increasing globalization

The two general approaches to forecasting are:

B. qualitative and quantitative

Averaging techniques are useful for:

B. smoothing out fluctuations in time series

In a service setting, the aggregate plan results in a time-phased projection of __________ requirements.

B. staff

Aggregate planning is capacity planning for:

B. the intermediate range

At the break-even point:

B. total cost equals total revenue

Which is not a characteristic of exponential smoothing?

B. weights each historical value equally

Aggregate planners seek to match supply and demand:

C. (a) and (b)

A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:

D. reject both locations

In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will:

D. remain the same

The optimum level of inspection is where the:

D. total cost of inspection and defectives is minimum

Gradual, long-term movement in time series data is called:

D. trend

Organizations should work to improve process capability so that quality control efforts can become more ________.

D. unnecessary

In order to use the "level capacity strategy," variations in demand are met by:

D. using combination of inventories, overtime, part time, and back orders

Which of the following is not a characteristic of layout decisions in system design?

D. usually well-received by operative personne

The range chart (R-chart) is most likely to detect a change in:

D. variability

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results: Instructor A B C D # of Failures 13 0 11 16 What is the sample proportion of failures (p) for Prof. D?

E. .16

Accuracy in forecasting can be measured by:

E. A & C

Which of the following is not a location option that management can consider in location planning?

E. All are possible options.

Which of the following is a factor that affects service capacity planning?

E. All of the above

Which of the following contributes to the competitive advantage enjoyed by firms using lean production?

E. Greater flexibility to cope with change

Which of the following is not an information requirement for the design of a process layout?

E. a list of product cycle times for every product manufactured

A reason for the importance of capacity decisions is that capacity:

E. all of the above

In business, forecasts are the basis for:

E. all of the above

Which of the following is an element of TQM?

E. all of the above

Aggregate planners attempt to balance:

E. capacity and demand

The EOQ model is most relevant for which one of the following?

E. determining fixed order quantities

Value added can be calculated by:

E. outputs minus inputs

Standard times derived from a firm's historical data are known as:

E. standard elemental times

A technique for estimating the proportion of time a worker spends on various activities is:

E. work sampling