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This document contains 59 multiple choice questions about operations management concepts and techniques. The questions cover topics such as business process reengineering, productivity measurement, just-in-time systems, quality management, aggregate planning, linear programming, and supply chain management. The correct answers to each question are provided.
This document contains 59 multiple choice questions about operations management concepts and techniques. The questions cover topics such as business process reengineering, productivity measurement, just-in-time systems, quality management, aggregate planning, linear programming, and supply chain management. The correct answers to each question are provided.
This document contains 59 multiple choice questions about operations management concepts and techniques. The questions cover topics such as business process reengineering, productivity measurement, just-in-time systems, quality management, aggregate planning, linear programming, and supply chain management. The correct answers to each question are provided.
Revolutionary changes in operations are advocated by
proponents of which of the following? Business process reenigeering 2. When a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called? Straddling 3. An activity-based map is which of the following? A network that shows how a company's strategy is delivered to customers 4. In the operations strategy framework proposed in the textbook, which of the following is a support platform? Information management 5. Capabilities of a service organization that are derived from activities that transform material or information and tend to provide low cost and high quality advantages are classified as which of the following Process-based capabilities 6. A reason for studying operations management (OM) is which of the following? Concepts and tools of OM are useful in other functions of business 7. Operations Management does not involve which of the following? Portfolio management 8. In the production system of a hospital, a patient is considered a primary input. A primary transformation function of the same system is which of the following? Health care 9. In viewing a department store as a production system a department is considered a primary input into that system. A primary transformation function of the same system is which of the following? Filling orders 10. Operations management decisions can be classified into which of the following broad areas? Operational planning and control decisions 11. Capabilities of a service organization that are derived from the ability to master new technologies design and introduce new products, and bring new plants on line significantly faster than one's competitors are classified as which of the following? Organization-based capabilities 12. Which of the following is a partial measure of productivity? Output/ Materials 13. Which of the following is a total measure of productivity? Output/ Inputs 14. If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity? Partial measure and Multifactor measure 15. Larry's Auto Body Repair Shop had revenues that averaged $60,000 per week in April and $50,000 per week in May. During both months, the shop employed six full- time (40 hours/week) workers. In April the firm also had four part time workers working 25 hours per week but in May there were only 2 part time workers and they only worked 10 hours per week. What is the percentage change labor productivity from April to May for Larry's Auto Body Repair? 8.97 16. The effect of the lack of synchronization among supply-chain members is referred to as which of the following? Bullwhip effect 17. Which of the following is organizationally driven reason for outsourcing? Enhance effectiveness by focusing on what you do best 18. Which of the following is an improvement-driven reason for outsourcing Improve operating performance 19. When considering outsourcing, what should firms be sure to avoid? Giving the outsourcing partner the opportunity to become a strong competitor 20. Which of the following terms best describes the ability of a company to deliver highly customized products and services to different customers around the world? Mass customization 21. Which of the following of Fisher's product categories includes fashionable clothing, personal computers and other products that typically have a very brief life cycle? Innovative products 22. When implementing a JIT production system a stabilized schedule is achieved using which of the following? Level scheduling 23. To implement a kanban pull system the firm would do which of the following? Reduce lot sizes 24. In trying to implement a JIT production system you should work with vendors to do which of the following? Reduce lead times 25. To implement a flow process in developing a JIT system a firm might do which of the following? Reduce setup/changeover time 26. To implement a flow process in developing a JIT system a firm might do which of the following? Balance workstation capacities 27. In an overview of the major operations planning activities in a typical organization, which of the following activities precedes aggregate sales and operations planning? Process planning 28. Which of the following are related to JIT? A philosophy of waste elimination 29. In the textbook Toyota's Fujio Cho expanded the definition of JIT by identifying which of the following types of waste to be eliminated? Overproduction 30. In the textbook Toyota Fujion Cho expanded the definition of JIT identifying whcih of the following types of waste to be eliminated? Product defects 31. In the textbook Toyota's Fujio Cho expanded the definition of JIT by identifying which of the following types of waste to be eliminated? Motion 32. Which of the following are key inventory reduction targets under JIT? Hidden inventory 33. Which of the following address elimination of waste under JIT? Quality at the source 34. One of the characteristics that distinguish a manufactured product from a service product is which of the following? A manufactured product is a tangible, physical item 35. Which of the following product attributes is a value added service? Field support 36. Which of the following is a core service attribute? Price 37. Which of the following gurus are credited with helping to develop total quality management (TQM)? J.M. Juran 38. Which of the following individuals are credited with helping to transplant Japanese methods of total quality management to the United States? Deming 39. A total systems approach to managing the flow of information, materials and services from raw material suppliers to end customer is called what? Supply chain management 40. What percentage change in SunPath's total productivity measure between 2002 & 2003? 10.39 41. The inventory turnover ratio used in measuring supply-chain efficiency is found by the ratio of which of the following? Cost of goods sold/Aveerage aggregate inventory value 42. The total value of all items held in inventory for the firm at costs is which of the following? Average aggregate inventory value 43. If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is weeks of supply? 104 44. IF the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is inventory turnover? 0.5 45. In an overview of the major operations planning activities in a typical organization, which of the following activities immediately follows aggregate sales and operations planning in a manufacturing operations? Master scheduling 46. Which of the following methodologies is used to verify that production and warehouse facilities, equipment, and labor are available when needed? Rough-cut capacity planning 47. Which of the following methodologies takes the end product requirements from the master production schedule and breaks them down into their component parts and subassemblies to create a materials plan? Materials requirement planning 48. The main purpose of aggregate operations planning is to specify the optimal combination of which of the following? PRoduction rates, workforce levels and inventory on hand 49. In conducting aggregate operations planning there are a number of required inputs. Which of the following are considered inputs internal to the firm Current physical capacity and current workforce 50. Which of the following is considered a "pure" production planning strategy Stable workforce, variable work hours 51. Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies? Chase 52. Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuation inventory levels, order backlogs and allowing lost sales is which of the following production planning strategies? Level 53. Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 500 units, the demand forecast is 1,000, and the necessary safety stock is 10% of the demand forecast, which of the following is the production requirement? 600 54. From an operational perspective yield management is most effective under which of the following circumstances? Inventory is perishable 55. Which of the following is not a common application of linear programming in operations management? Waiting time analysis 56. Which of the following is a common application of linear programming in operations management? Plant location studies 57. There are other related mathematical programming techniques that can be used instead of linear programming if the problem has a unique characteristic. If the problem prevents divisibility of products or resources we should use which of the following methodologies? Integar programming 58. A company wants to determine how many units of each of 2 products, A and B, they should produce. The profit on product A is $50 and the profit on product B is $45. Applying linear programming to this problem, which of the following is the objective function if the firm wants to make a much money as possible? Maximize Z= 50A +45B 59. An agribusiness company mixes and sells chicken feed to farmers. The costs of the chicken feed ingredients vary throughout the chicken feeding season but the selling price of chicken feed is independent of ingredients. On August 1, management needs to know how many units of each of three grains (Q, R, and S) should be included in their chicken feed in order to produce the product most economically. The cost of each grain is, for unit of Q, $30; for a unit of R, $37; and for a unit of S, $78. Applying linear programming to this problem, which of the following is the objective function? Minimize Z= 30Q+37R+78S 60. Apply linear programming to this problem. David and Harry operate a discount jewelry store. They want to determine the best mix of customers to serve each day. There are 2 types of customers for their store, retail (R) and wholesale (W). The cost to serve a retail customer is $70 and the cost to serve a wholesale customer is $89. The average profit from either kind of customer is the same. To meet headquarters' expectations, they must serve at least 8 retail customers and 12 wholesale customers daily. In addition, in order to cover their salaries, they must at least serve 30 customers each day. Which of the following is one of the constraints for this model? 1R+1W=>30 61. Which of the following are elements that address elimination of waste under JIT? Kanban production control system 62. Group technology (GT) is credited with which of the following benefits? Reducing waiting time between process operations 63. You have been called in as a consultant to set up a kanban control system. The first thing to do is to determine the number of kanban card sets needed. Your research shows that the expected demand during lead time for a particular component is 150 per housr. You estimate the safety stock should be set at 25% of the demand during lead time. The tote trays used as containers can hold 8 units of stock and the lead time it takes to replenish an order is 2 hours. Which of the following is the number of kanban card sets necessary to support this situation? 47 64. In a quality circle one would expect to find which of the following? Employees meeting weekly to discuss their jobs and problems 65. In designing a JIT plant layout a designer should do which of the following? Design for work flow balance