Operations Management-Test ONE – Flashcards
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What is Production?
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The creation of goods and services
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What is Operations management?
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The set of activities that creates value in the form of goods and services by transforming inputs into outputs
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Why do we study operations management?
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-One of the 3 major functions of any organization -Want and need to know how goods and services are produced -Understand what operations managers do -OM is costly
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What are the 10 critical decisions of an Operations Manager?
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-Design of goods and services -Managing quality -Process and capacity design -Location strategy -Layout strategy -Human resources and job design -Supply Chain management -Inventory, material requirements planning, JIT - Intermediate and short-term scheduling -Maintenance
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Who came up with the concept of interchangeable parts?
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Eli Whitney
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Who is known as the 'father of scientific management'?
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Frederick W. Taylor
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Who first used a moving assembly line?
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Henry Ford
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Who believed that management must do more to improve the work environment and processes so that quality can be improved?
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W. Edwards Deming
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What are some New Challenges/trends to OM?
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-Global Focus - Just-in-time -Supply chain partnering -Rapid product development -Mass customization -Empowered employees -Environmentally sensitive production -Ethics
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Which of the following is NOT one of the factors that fosters specialization and worldwide supply chains: -Instant Communication -marketing -cheaper transportation -specialized expert knowledge
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Marketing
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Which of the following is NOT one of the reasons operations managers want to work with their supply chains to viciously cut inventories at every level: -Inventory hides quality issues -Inventory provides safety against higher-than executed demand -Inventory requires financial resources -Inventory constrains response to ever shorter product life cycles
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Inventory provides safety against higher-than expected demand.
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Reasons to globalize:
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1. Reduce Costs 2. Improve Supply chain 3. Provide better goods and services 4. Understand markets 5. Learn to improve operations 6. Attract and retain global talent
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The stated purpose of NAFTA is to:
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Phase out all trade and tariff barriers among Canada, Mexico, and the US.
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What will globalization strategies do to the operations manager's job?
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Make them more difficult.
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What is a strategy?
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It is an action plan to achieve a mission.
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TRUE OR FALSE: Each functional area within the firm may develop its own strategy, but not its own supporting mission.
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False. Functional areas can develop a supporting mission as well.
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What are the 3 strategic approaches to competitive advantage?
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Response Differentiation Cost Leadership
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What is an organization's mission?
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The purpose or rationale for an organizations existence.
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Which of the following is NOT an OM strategy/issue during the introduction stage of the product life cycle? -limited models -frequent product and process design changes -long production runs -high production costs
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long production runs
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Which of the following is NOT an OM strategy/issue during the growth stage of the product life cycle? -forecasting critical -shift towards product focus -enhance distribution -reduce capacity
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Reduce capacity
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What is Value chain analysis?
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A way to identify those elements in the product/service chain that uniquely add value.
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What is the resources view?
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A method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage.
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What does a SWOT analysis refer to?
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Strengths, opportunities, weaknesses, and threats
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What is an activity map?
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A graphical link of competitive advantage, KSF/s and supporting activities.
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What are core competencies?
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Set of skills, talents, and capabilities in which a firm is particularly strong
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What 3 phases are involve in the the management of large projects?
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Planning, scheduling, and controlling
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Which of the following does NOT belong to the planning phase of project management? -goal setting -team organization -defining the project -monitoring resources
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monitoring resources
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Name 3 techniques that allow managers to plan, schedule, and control projects:
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Gantt charts, CPM, PERT
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Which of the following does NOT belong to the controlling phase of project management?
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-monitor resources, costs, quality, budgets -revise plans -shift resources -define the project
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The project organization may be LESS helpful when: -the work contains complex interrelated tasks requiring specialized skills -the job is familiar to the existing organization -the project cuts across organizational lines work tasks can be defined with a specific goal and deadline
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-the job is familiar to the existing organization
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What are Gantt charts used for?
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to schedule resources and allocate time
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Project planning includes:
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Setting the goals defining the project develop work breakdown schedule Identify team/resources (Time/cost estimates, budgets, cash flow charts, material availability)
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Project scheduling includes:
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Identifying precedence relationships Sequencing activities Determining activity times and costs Estimating material and worker requirements Determining critical activities (Budgets, delayed activities report, slack activities)
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Project controlling includes:
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Revise and change plans Monitor resources, costs, quality Shift resources (CPM/PERT, Gantt charts, Milestone charts, Cash flow schedules0
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Project organization works best when:
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1. Work can be defined with a specific goal and deadline 2. The job is unique or somewhat unfamiliar to the existing organization 3. The work contains complex interrelated tasks requiring specialized skills 4. The project is temporary but critical to the organization 5. The project cuts across organizational lines
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Responsibilities of the Project Manager is:
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1. All necessary activities are finished in order and on time 2. The project comes in within budget 3. The project meets quality goals 4. The people assigned to the project receive motivation, direction, and information.
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What is Bid rigging?
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divulging confidential information to give some bidders an unfair advantage
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What is low balling?
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contractors try to buy the project by bidding low and hope to renegotiate or cut corners
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What are the SIX steps to PERT and CPM?
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1. Define the project and prepare the work breakdown structure 2. Develop relationships among the activities- decide which activities must precede and which must follow others 3. Draw the network connecting all of the activities 4. Assign time and/or cost estimates to each activity 5. Compute the critical path(longest time path through the network) Use the network to help plan, schedule, monitor, and control the project
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What is project crashing?
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shortening the duration of the the project
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Which of the following is NOT considered to be a stakeholder? -community members -customers -competitors -distributors
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competitors
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Which appears to provide the best opportunity for increases in productivity? -labor -capital -management -raw materials
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management
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The supply chain generally starts with what?
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the provider of the basic raw materials
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Which of the following activities at a commercial bank is NOT an operations activity? -security -maintenance -check clearing -auditing
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auditing
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Which of the following is an example of a hidden production function? -assembling a motorcycle -transplanting a liver - manufacturing a television -producing a computer
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transplanting a liver
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Which of these is not a disadvantage of outsourcing? -negative impact on employees -loss of control -decreased logistics and inventory costs -risks may not manifest themselves for years
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-decreased logistics and inventory costs
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Which of the following are OM strategy/issue during the introduction stage of the product life cycle? -frequent product and process design changes -long production runs -high production costs -limited models
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all but long production runs
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What is competitive advantage?
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the creation of a unique advantage over competitors
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What international operations strategy involves a high degree of centralization?
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global
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An operations task performed at Hard Rock Cafe is: -preparing employee schedules -borrowing funds to build a new restaurant -advertising changes in the restaurant menu -calculating restaurant profit and loss -All of the above.
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preparing employee schedules
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Which of the following activities is NOT part of project scheduling? -Make sure all necessary activities are finished in proper sequence and on time. -Compute resources needed at each stage of production -Make sure all necessary activities are finished in proper sequence and on time. -Chart separate schedules for personnel needs by type of skill and material needs
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Make sure all necessary activities are finished in proper sequence and on time
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Computerized PERT/CPM reports and charts do NOT include: -detailed cost breakdowns for each task -probability estimates for on-time completion -variance reports -cost distribution tables
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probability estimates for on-time completion
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Which of the following is NOT true about Gantt charts? -are planning charts used to schedule resources and allocate time -adequately illustrate the interrelationships between activities and the resources -can be used for scheduling repetitive operations -low cost means of helping managers make sure that activities are planned
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adequately illustrate the interrelationships between activities and the resources
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Which of the following is an advantage of PERT and CPM? -useful in monitoring only schedules -precedence relationships must be specified and networked together -straightforward concept and not mathematically complex -project activities have to be clearly defined, independent, and stable in their relationships.
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Straightforward concept and not mathematically complex
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Which of the following is used for computations in CPM? -normal time -most likely game -optimistic time -pessimistic time
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normal time
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When using exponential smoothing, the smoothing constant: -can be determined using MAD -indicates the accuracy of the previous forecast -should be chosen to maximize positive bias -is typically between .75 and .95 for most business applications
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can be determined using MAD
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What are the five quantitative approaches? which of the five are Time series and which are associative?
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Naive approach Moving averages exponential smoothing trend projection (Linear Regression)-associative
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Which are true of Forecasting? -Is exclusively an objective prediction -may involve taking historical data and projecting them into the future with a mathematical model -is the art and science of predicting future events -usually classified by the future time horizon that it covers
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all but "exclusively an objective prediction"
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What is an example of a qualitative forecasting method?
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Delphi method
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What does a process and capacity design decision determine?
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It determines how a good or service is produced and commits management to specific technology, quality, human resources, and capital investment.
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What strategy has a decentralized authority with substantial autonomy at each business?
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Multidomestic
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The three phases involved in the management of large projects are:
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Planning Scheduling Controlling
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Which of the following does NOT belong to the planning phase of project management? -Defining the project -monitoring resources -goal setting -team organization
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monitoring resources
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Which of the following is the THIRD level in work breakdown structure? -subtasks in major tasks -major tasks -the project -activities to be completed
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subtasks in major tasks
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How is the EF computed?
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ES + Activity TIme
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What is the shortest duration required to complete an activity?
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Crash time
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What is an example of a limitation of PERT and CPM?
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There is inherent danger of placing too much emphasis on the critical path.
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Among the the following, critical path and slack time analysis MOST help -point out who is responsible for various activities -mangers define the project activities -pinpoint activities that need to be closely watched -highlight relationships among project activites
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pinpoint activities that need to be closely watched
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Which forecasting time horizon would be easiest to predict for? -long range -short range -intermediate range -medium range
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short range
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What forecast projects the company's sales?
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a demand forecast
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CPFR is what:
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Collaborative, planning, forecasting, replenishment
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What is the FIRST step in forecasting system? -Determine the time horizon of the forecast. -Select the forecast model. -Determine the use of the forecast. Select the items to be forecasted.
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Determine the use of the forecast
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Exponential smoothing is an example of (quantitative,qualitative) smoothing.
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quantitative
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What forecasting model uses a group process to allow experts to make forecast?
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Delphi Method
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What forecasting model is based upon a salespersons' estimates of expected sales?
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Sales force composite
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What is a data pattern that repeats itself after a period of days, weeks, months, or quarters?
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Seasonality
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Which of the following is a characteristics of the maturity phase of the product life cycle? -Products are "fine-tuned" -Competitors are well established. -Products are considered for termination. -Product designs begin to stabilize.
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Competitors are well established.
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The term "products" refers to tangible goods only. True or false.
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False
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Robust design means:
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small variations in production do not adversely affect the product.
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When ordering a new zagflatz, customers must choose the style of three major components, each of which has about ten variations. This is an example of:
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Modular design
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What technology is particularly useful for prototype development and small lot production?
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3-D printing
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Which of the following is an external product development strategy? -migrations of existing products -joint ventures -new internally developed products -enhancements to existing products
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joint ventures
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What does defining a product mean:
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to define the new good's or service's function
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Group technology identifies components by what?
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a coding scheme
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Most manufacturing items and their components are defined by what?
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an engineering drawing
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What is a route sheet?
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it lists the operations necessary to produce the component
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What is created when a "make-to-order" system, when a customer places a request for a product or service with a producer?
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a work order is created
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What kind of analysis focuses on the ways in which processes can be designed to optimize interaction between firms and their customers?
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process-chain-network analysis
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Operation of a hair salon is an example of what?
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delayed customization
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Moving a product from development to production is referred to as what?
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transition to production
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What appears to provide the best opportunity for increases in productivity?
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management
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What operations function at a manufacturing facility strives for the efficient use of machines, space, and personnel?
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industrial engineering
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What is an advantage of PERT and CPM?
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Straightforward concept and not mathematically complex.
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Computerized PERT/CPM reports and charts include what?
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cost distribution tables, variance reports, and detailed const breakdown for each task
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What is used for computations in CPM?
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normal time
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Which of the following is NOT a technique that allows managers to plan, schedule, and control projects: -Gantt Charts -PERT -Factor rating method -CPM
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Factor rating method
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Listing products in descending order of their individual dollar contribution to the firm is called:
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product-by-value-analysis
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What is a review of successful products that takes place during the production process?
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Value analysis
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What kind of design can be produced to requirements even with unfavorable conditions in the production process?
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robust design
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What is an assembly chart?
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a schematic showing how the product is assembled
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What cooperaerative agreement allows a firm to stay independent, but pursue strategies consistent with their individual missions?
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alliances
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What is the first step to build a house of quality?
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identifiy customer wants
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Which of the following represents an internal product development strategy? -joint ventures -alliances -migration to existing products -purchase technology or expertise by acquiring the developer
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migration of existing products
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Self checkout at a grocery store is an example of what?
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customer participation in service delivery
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Which of the following regions of a process chain includes the process steps that involve interaction between participants?
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direct interaction region
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Which of the following are false regarding the construction of a decision tree for product design: -to determine the expected value of each course of action, we need to start at the beginning of the tree and work toward the end of the tree -the possible alternatives include an alternative of "doing nothing" -payoffs are entered at the beginning of the appropriate branch -be sure that all possible alternatives and states of nature are included in the true
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all but "doing nothing"
