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c. How many manufacturing plants should the company operate? Strategic planning deals with long term issues (years) at a business level, including making changes to a physical network of facilities.

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What kinds of question does an operations manager who is responsible for strategic planning address? a. Which employees should work the day shift tomorrow? b. Should we make this part or buy it? c. How many manufacturing plants should the company operate? d. How should this process be organized?

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b. Designing, transforming, consuming, and disposing of goods and services. The organizations and activities in a supply chain are involved in designing, transforming, consuming, and disposing of goods and services.

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A supply chain is a global network of organizations and activities involved in: a. Designing, financing, selling, and disposing of goods and services. b. Designing, transforming, consuming, and disposing of goods and services. c. Producing, buying, servicing, and disposing of goods and services. d. Financing, producing, and marketing of goods and services.

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a. Technology has facilitated globalization. Communications and transportation technologies have made global outsourcing easier, thus raising the need to focus on supply chains.

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Supply chain management has grown as a prevalent perspective on operations management because: a. Technology has facilitated globalization. b. Firms have become more vertically integrated. c. Governments have become less open to trade. d. Purchasing managers now have stronger roles in companies.

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b. All of these have to think about "processes." All functions must think about processes.

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Which of the following functions would NOT have to think about "processes"? a. Supply management b. All of these have to think about "processes." c. Production management d. Logistics management e. Accounting

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d. The management of processes. "Processes" comprehends all of the aspects of operations management. The other answers are just possible components of operations management.

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Operations management is: a. The management of production. b. The management of services. c. The management of physicians. d. The management of processes.

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d. All of the above are likely to be stakeholders A bank must consider the needs of its customers and employees, while also complying with government and other regulators.

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Which of the following groups are NOT likely to be stakeholders for operations in a local bank? a. Customers b. Regulators c. Employees d. All of the above are likely to be stakeholders

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a. Tier 2 A supplier's supplier is known as a Tier 2 supplier.

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Jones Manufacturing sells a part to Lear Corporation. Lear puts this part into a radio, which Lear then sells to Ford. From Ford's point of view, Jones Manufacturing is a(n) __________ supplier. a. Tier 2 b. Echelon 1 c. Tier 1 d. Echelon 2

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c. Longer lead times and they can be inventoried. Physical goods typically have longer lead times than services and can be inventoried (services typically cannot). See Table 1-1.

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Physical goods can be differentiated from services in the operations management process by: a. More labor intensive and longer lead times. b. More expensive and easier to control. c. Longer lead times and they can be inventoried. d. More capital intensive and short lead times.

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a. Customers are more directly involved in service processes, so their perceptions need to be consideredIt is a way to categorize elements of work activities Customers are often intimately a part of the operations process. The process is the product, and customers directly and immediately observe the process.

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Which of the following challenges are more likely to be faced by service operations managers, rather than manufacturing operations manager? a. Customers are more directly involved in service processes, so their perceptions need to be consideredIt is a way to categorize elements of work activities b. The "total product experience" is more important in services c. Pure service operations need to be separated from pure goods producing operations d. Operations is typically less financially important in service businesses

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a. It is a way to view business as a system of inter-related activities. Process thinking looks at all operations as systems of activities that are related by material, information, and people flows, and by shared resources.

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Which of the following statements best describes "process thinking"? a. It is a way to view business as a system of inter-related activities. b. It is a way to manage thought processes to make better decisions. c. It is a way to approach work systematically d. It is a way to categorize elements of work activities

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c. Internal production Over the last 50 years, globalization and outsourcing have caused a shift in operations management from an internal focus to a combined internal and external focus.

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Up until the latter parts of the 20th century, operations management mainly focused on: a. Design b. Globalization c. Internal production d. External Outsourcing

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c. People, Profit, Planet. Simple definition.

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Which three elements make up the triple bottom line? a. Pollution, Equality, People. b. Planet, Pollution, Profit. c. People, Profit, Planet. d. Profit, Equality, Pollution.

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c. What businesses should we be in? Corporate strategic planning is very broad and relates to what businesses the company should be involved in.

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Corporate strategic planning involves decisions related to: a. All of these. b. What measures should we use to control strategic initiatives? c. What businesses should we be in? d. What specific product- and market-based initiatives and goals should we establish?

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b. A product characteristic that causes customers to choose the product over that of a competitor. Order winners are traits that cause customers to actually choose a specific product.

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Which of the following is the most appropriate definition of an "order winner"? a. A product characteristic that permits the product to compete in a market. b. A product characteristic that causes customers to choose the product over that of a competitor. c. A product that generates the highest dollar sales volume. d. A product that has the highest profit margin.

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c. Performance Picture clarity is a basic performance dimension of HD televisions.

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Xanadu makes HD televisions. It claims that its HD televisions have the clearest picture clarity in the industry. Xanadu is emphasizing which dimension of quality? a. Features b. Conformance c. Performance d. Reliability

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d. All of the items are true. The characteristics described are all characteristics of order qualifiers, not order winners or losers.

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Which of the following is NOT true about "order qualifiers"? a. These are product traits that must meet a certain level in order for the product to even be considered by customers. b. Customers may not be aware of any level of performance in excess of those minimum levels that they have established. c. The firm must perform acceptably on these traits, usually at least as well as competitors' offerings. d. All of the items are true.

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a. Desired outcome statement This is based on the discussion of the business model.

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Which of the following is NOT a component of the business model? a. Desired outcome statement b. System capabilities c. Value proposition d. Critical customer

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b. Production/design processes unique to the firm. Core capabilities are skills, processes, and systems that are unique to the firm and desired by the customer.

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Which of the following is the most appropriate definition of a core capability? a. A set of products unique to a firm. b. Production/design processes unique to the firm. c. Technical capabilities of a firm. d. Reputation.

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a. Sustainability. Maintaining operations that are profitable and nondamaging to the environment is sustainability.

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Xanadu Inc. claims that its manufacturing processes result in fewer greenhouse gases than those of its primary competitors. This suggests that Xanadu has a focus on: a. Sustainability. b. Flexibility. c. Profitability. d. Risk management.

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a. Conformance Defects are an indication of lack of conformance.

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Scantron Inc. claims that its competitors have to recall 10 percent of their products to fix defects, while it only has to recall 5 percent. Scantron is emphasizing which dimension of quality? a. Conformance b. Durability c. Reliability d. Performance

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a. IoT The Internet of Things (IoT) allows products and machines to connect to the Internet and share data with other devices.

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The connection of products and machines for sharing data with other devices is: a. IoT b. ERP c. RFID d. UAV

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d. the time at each workstation is driven by actual customer demand When designing a process, the time at each workstation is what is needed to meet customer demand.

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In line balancing, _______ rev:a. efficiency is not affected by the takt time b. the number of actual workstations should always equal the theoretical number of workstations c. once determined, the balanced line should not be changed d. the time at each workstation is driven by actual customer demand

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d. 80% The takt time is the [time available]/customer demand which is [60 minutes/hour]/30 units per hour = 2 minutes. The efficiency is [Sum of all task times/(Actual work stations × takt time)] × 100 which is ((8 minutes)/(5 workstations x 2 minutes)) x 100 = 80%

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A company must make 30 units per hour. What is the efficiency if the total time to complete all tasks is 8 minutes and the company is using 5 workstations? a. 63% b. 75% c. 20% d. 80% The takt time is the [time available]/[customer demand]. The efficiency is [Sum of all task times/(Actual work stations × takt time)] × 100.

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b. 1.9 minutes The takt time is the [time available]/customer demand. In this case [2 shifts per day x 8 hours per shift x 60 minutes per hour]/500 units = 1.9 minutes.

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What is the takt time in minutes, if 500 units are needed per day? The company works 2, 8-hour shifts per day. a. 0.5 minutes b. 1.9 minutes c. 31.3 minutes d. 62.5 minutes

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c. 71% The takt time is the [time available]/customer demand which is [1 shifts per day x 12 hours per shift x 60 minutes per hour]/400 units = 1.8 minutes. The efficiency is [Sum of all task times/(Actual work stations × takt time)] × 100 which is ((23 minutes)/(18 workstations x 1.8 minutes)) x 100 = 71%

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A company must make 400 units per day. The company works one 12-hour shift. What is the efficiency if the total time to complete all tasks is 23 minutes and the company is using 18 workstations? a. 88% b. 22% c. 71% b. 50%

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c. Cellular manufacturing. Cellular manufacturing attempts to maintain flexibility of job shops but at lower costs.

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Wanda Corp. currently uses a job shop process. It wants to maintain the advantages of this but increase efficiency. Wanda should investigate: a. Job shop processes. b. Mass customization. c. Cellular manufacturing. d. Project process.

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b. If you don't like the outcome, change the process. This is strict definition and it comes from the textbook.

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Process thinking causes managers to address critical process elements, including: a. If you don't like the outcome, focus on the people. b. If you don't like the outcome, change the process. c. Processes are guidelines to thinking about to best staff activities. d. Processes drive measurement.

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c. Functional layout. Unique routes and high processing times are characteristics of functional layouts.

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John Jones, CEO of Joes Corp., is unhappy because each product his company makes takes a unique route through the facility, so processing times tend to be high. His company most likely has a: a. Fixed-position layout. b. Sequential action layout. c. Functional layout. d. Product layout.

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d. An upholstered sofa For an upholstered sofa using an assemble-to-order orientation, the premade frames are held in inventory but the fabric is not added until a customer order is placed. Sofas can also be make to stock.

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Which of the following products is most likely to use an assemble-to-order market orientation? a. Shampoo b. A mobile phone c. A race car d. An upholstered sofa

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e. Kaizen Event. Short-term efforts to improve process performance are called Kaizen Events.

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A short-term, highly focused effort for improving a process is known as a: a. Poka-yoke Event. b. Enchilada Event. c. Jidoka Event. d. Chaebol Event. e. Kaizen Event.

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d. Economies of scale refers to the fact that as volume increases, total cost of production decreases. Economies of scale refer to cost per unit of production, not total cost of production (which increases as volume goes up).

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Which of the following statements about economies of scale is NOT true? a. One reason economies of scale occur is because employees become more efficient as volume increases. b. Economies of scale may not exist at all levels of production. c. One reason economies of scale occur is because fixed costs can be spread over more units of production as output increases. d. Economies of scale refers to the fact that as volume increases, total cost of production decreases.

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c. A computer repair shop A computer repair shop tends to have a high degree of customization and customer interaction and relatively low labor intensive since much of the diagnosis is automated making it the best example of a service shop.

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Which of the following is the best example of a service shop? a. A dentist b. A fast food restaurant such as McDonald's c. A computer repair shop d. An electrical utility company

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a. Continuous process structure. Continuous process structures are used for make-to-stock orientations. The others are primarily make-to-order.

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Jones Company has a make-to-order orientation. It most likely does NOT use: a. Continuous process structure. b. Cellular manufacturing process structure. c. Job shop process structure. d. Batch process structure.

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d. Shorter flow times. According to Little's Law, decreasing flow times results in increased throughput.

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Little's Law suggests that the key to increased throughput is: a. Eliminating waste. b. Fewer defects. c. Increased inspection. d. Shorter flow times.

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c. Precedence diagram A precedence diagram shows the relationships among tasks in a process.

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In line-balancing, the relationships between tasks in a process is shown in a: a. Service blueprint b. Followers diagram c. Precedence diagram d. Product families diagram

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b. Fixed-position layout In a fixed-position layout, all of the necessary resources must come to the work site.

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Ensuring that all the right people, equipment, and materials arrive on time is especially challenging when using which layout? a. Functional layout b. Fixed-position layout c. Product layout d. Service factory layout

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a. Scrapping defective raw material. Scrapping raw material is an internal failure cost. The others are external failure costs.

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All of the following represent external failure cost EXCEPT the cost of: a. Scrapping defective raw material. b. Repairing items covered by warranty. c. Replacing defective items found by customers. d. Loss of goodwill and reputation.

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b. Reliability. Reliability is the length of time (or number of instances) a product performs as planned before a failure occurs.

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If a tangible good or service performs the promised function dependably, we say that it has high: a. Conformance. b. Reliability. c. Durability. d. Perceived quality.

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d. All these answers are correct. Quality has both objective and subjective elements. Operations managers tend to emphasize conformance, marketing managers tend to emphasize features, engineering managers tend to emphasize performance, reliability, and durability.

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Why is product quality sometimes poorly defined in a firm? a. Managers are not clear on what characteristics customer care most about. b. Holistic measures of quality are difficult to develop. c. Managers in different functional areas tend to emphasize different dimensions of quality. d. All these answers are correct.

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d. Appraisal cost Inspection is an appraisal cost.

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Sanford Corp. bought new technological systems to inspect the quality of products as they come off the production line. The expense of operating these systems would be an example of which of the following types of quality-related costs? a. Internal failure cost b. Prevention cost c. External failure cost d. Appraisal cost

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d. None of these statements is true. ISO 9000 certification can be applied to almost all industries. It guides managers in what to do but not how to do it.

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Which of the following statements is most true regarding ISO 9000? a. ISO 9000 was designed specifically for the electronics industry b. ISO 9000 is a quality award given by the U.S. government c. ISO 9000 tells management specifically how to ensure quality d. None of these statements is true.

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a. Failure costs will go down. Appraisal costs are a choice, independent of prevention costs, whereas failure costs are likely to go down with well-framed prevention efforts. Some costs need to be impacted, otherwise the investment in prevention cost is not of any value.

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If a company spends more on prevention, what would be the expected impact on other costs of quality? a. Failure costs will go down. b. Other costs will be unaffected. c. Appraisal costs will go up. d. Failure costs will go up.

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c. To prevent an improved process from becoming highly variable again. In the control step, workers devise ways to monitor the process and prevent variation from rising to unacceptable levels.

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The objective of the "control" step in the DMAIC process is: a. To create controlled experiments to analyze sources of variation b. To consider differing opinions regarding the root causes of problems c. To prevent an improved process from becoming highly variable again. d. To be rigourous in following the DMAIC steps

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a. Prevention is better than rework PDCA is a tool, not a core value (underlying belief).

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Ted wants to hire more inspection personnel to insure that all products shipped are free of defects. What TQM core value would this action violate? a. Prevention is better than rework b. Workers are more valuable than managers c. Better quality leads to long term success d. A PDCA cycle should always be followed

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d. Define, Measure, Analyze, Improve, Control. The acronym DMAIC stands for: Define, Measure, Analyze, Improve, and Control.

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At the heart of the Six Sigma program is a five-step process called D-M-A-I-C. These letters denote a major activity that must be completed to achieve the objectives of Six Sigma. These activities are: a. Define, Measure Analyze, Improve, and Compare. b. Define, Measure, Analyze, Inquire, and Compare. c. Define, Measure, Analyze, Involve, and Cost. d. Define, Measure, Analyze, Improve, Control.

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a. An approach that develops culture and tools with a focus on quality Quality management combines philosophy, culture, tools and techniques to ensure that high quality products and services are produced.

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"Quality management" is: a. An approach that develops culture and tools with a focus on quality b. The achievement of all dimensions of quality c. A measure of how well managers achieve goals d. Six sigma

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a. Built into the product. The other choices all imply "quality through inspection."

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"Quality at the source" suggests quality should be: a. Built into the product. b. Inspected at multiple points. c. Ensured by the quality control lab. d. An inspector's function.

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c. Costs associated with defects Failure costs are both internal and external expenses incurred when a product or service has defects.

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In a Cost of Quality analysis, "failure costs" refers to: a. Costs of not considering customer needs b. Costs of not achieving goals c. Costs associated with defects d. Costs associated with mistakes

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a. Business quality management. ISO 9000 is a broad set of standards applied to business quality management, not just product quality, quality control, or operations management.

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ISO 9000 defines a set of internationally accepted standards for: a. Business quality management. b. Quality control. c. Operations management quality. d. Product quality.

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d. Conformance quality. Conformance quality is meeting design specifications.

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In its promotional material for bed linens, Scarsdale Corporation states that all sheets and pillowcases sold to customers should have and actually do have a thread count of exactly 600 threads per inch. Scarsdale is apparently emphasizing: a. Design quality. b. Total quality management. c. Reliability. d. Conformance quality. e. Product quality.

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c. Design quality. Design quality occurs when product features meet customers' desires and needs.

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If a product includes features that customers care most about, we would say that it has high: a. Conformance quality. b. Aesthetics. c. Design quality. d. Reliability.

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b. 3.4 defects per million opportunities Six Sigma quality means 3.4 defects per million opportunities.

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A process with Six Sigma quality is expected to produce how many defects? a. 66,807 defects per million opportunities b. 3.4 defects per million opportunities c. 6 defects per million opportunities d. Zero defects

Operations Management Exam One Practice (Chapters 1-6s) – Flashcards

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