Operational Management Test 1 – Flashcards
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Every business is managed through what three major functions?
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Finance, marketing, and operations management
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Which business function is responsible for managing cash flow, current assets, and capital investments?
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Fiance
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Which business function is responsible for managing cash flow, current assets, and capital investments?
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Finance
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Which business function is responsible for sales, generating customer demand, and understanding customer wants and needs?
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Marketing
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Which business function is responsible for planning, coordinating, and controlling the resources needed to produce a company's products and services?
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Operations management
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Which of the following is true for business process reengineering?
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-It can increase efficiency -It can reduce costs -It involves asking why things are done in a certain way -It involves redesigning processes
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At the GAP, which function plans and coordinates all the resources needed to design, produce, and deliver the merchandise to its various retail locations?
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Operations management
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Which of the following is not true for business process reengineering?
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It cannot be used to improve quality
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A company with a low customer contact that is capital intensive is called:
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Quasi-manufacturing
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What are long-term decisions that set the direction for the entire organization called?
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Strategic
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What concept involves breaking down the production of a product into a series of small, elementary tasks, each of which is performed by a different worker?
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Division of labor
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What is a concept that takes a total system approach to creating efficient operations?
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Lean systems
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The process of monitoring the external environment is called what?
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Environmental scanning
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Which of the following would not be considered a core competency that a company might have?
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An inefficient distribution system
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Environmental scanning would not provide information on:
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The firm's internal inefficient distribution system
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What term describes the process of obtaining goods or services from an outside provider?
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Outsourcing
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Once a business strategy has been developed:
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An operations strategy must be formulated
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What are the three primary types of technology?
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Produce technology, process technology, and information technology
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Technology should be acquired because:
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The new technology supports the company's chosen competitive priorities
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A firm produces 100 units using 800 labor hours. What is its labor productivity?
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0.125 units/hour
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A machine shop produces metal frames on two different machines. The average daily production on machine 1 is 300 frames, and the average daily production on machine 2 is 180 frames. What is the daily machine productivity?
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240 frames/machine
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What technique is based on computing the quantity of goods a company needs to sell to just cover its costs?
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Break-even analysis
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Costs that are proportional to the amount of units produced, such as materials and labor, are
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Variable costs
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In break-even analysis, in order to make a profit the company must
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sell above the break-even point
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Which product and service strategy is used to produce standard components that can be combined to customer specification?
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assemble-to-order
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Information Technology does NOT assist the firm in:
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Information creation
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The ease with which the product can be made is its
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Manufacturability
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Service design differs from the product design by including _______
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The esthetic and psychological benefits of the product
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Which of the following is not a step in product design
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Conceptual design
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Which are steps in product design
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-final design -preliminary design and testing -idea development -product screening
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_______ is a vital link between customers and product design
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Marketing
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All product designs begin with _____
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An idea
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Which of the following typically represents the beginning of a supply chain:
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qExternal suppliers
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Supply chain management is the vital business function which does NOT coordinate and manage:
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Human resource interviews
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Which term refers to inaccurate or distorted demand information created in the supply chain?
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Bullwhip effect
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Prie fluctuations follow all but which of the following marketing promotions?
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Advertisting
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The time between order placement and the receipt of the goods is called ________
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Lead time
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What is a network internal to an organization called?
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Intrant
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What is an extension of an intranet to include suppliers and customers called?
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Extranet
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Which of the following is open to the most users?
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The internet
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What refers to owning or controlling sources of raw materials and components?
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Backward integration
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What term refers to processes or activities that are completed in-house?
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Insource
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One common definition of quality is, which focuses on measuring how well the product or service meet targets and tolerances determined by its designers.
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Conformance to specifications
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Which of the following specifically relates to Service Organizations dimensions of quality?
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Atmosphere
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In six-sigma the level of defects is reduced to approximately
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3.4 parts per million
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The expected operational life of a product is called its _____
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Durability
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Quality has gained such prominence because organizations
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Have gained an understanding of the high cost of poor quality
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Not only does TQM encompass the entire organization but it
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Stresses quality is customer driven
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Which of the following is not characteristic of TQM?
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Inspecting products after they have been made
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The Japanese term for continuous improvement is
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Kaizen
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Giving workers responsibility for seeking out quality problems and correcting them is
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Employee empowerment
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Employees of the organization who receive goods or services from other in the company are
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Internal customers
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Proper training of employees in the understanding of quality tools includes all of the following except
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How to develop new quality tools
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TQM team meetings take place
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During time in the workday set aside for them
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A quality circle is:
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A team of volunteer production employees and their supervisors who meet regularly to solve quality problems
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Studying business practices of companies considered "best in class" is called
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Benchmarking
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When using SPC if you plot the variable of interest against a timeline you are using
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Control charts
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Which of the following is not an important cost of poor quality?
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Overhead
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Quality planning, employee training in quality measurement, and cost of minting records of information and data related to quality are costs.
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Prevention
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Costs of quality inspections, testing, test equipment, and labs are examples of costs.
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Appraisal
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Machine downtime due to failures in the process, scrap, and rework are examples of costs.
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Internal Failures
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External failure costs include
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Litigation costs resulting form product liability issues
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External failure costs include
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Litigation costs resulting form product liability issues
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External failure costs include
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Litigation costs resulting form product liability issues
