Operations Management Practice Flashcards

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Which of the following tasks would NOT typically represent an operations management activity at Hard Rock Cafe? A) Receiving a shipment of incoming food ingredients B) Designing an efficient layout C) Filing a tax return D) Preparing an employee schedule
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C) Filing a tax return
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The creation of goods and services is referred to as:
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Production
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Which of the following is NOT considered to be one of the three primary functions that all organizations perform? A) Research and Development B) Production/Operations C) Finance/Accounting D) Marketing
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A) Research and Development
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Which of the following activities at an airline is NOT an operations activity? A) Catering B) Crew Scheduling C) Flying D) Sales
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D) Sales
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A global network of organizations and activities that supply a firm with goods and services is referred to as:
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A supply chain
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Competition in the 21st century is no longer between companies; it is between:
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Supply chains
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A large percentage of the revenue of most firms is spent of which function?
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Operations
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Which of these is NOT one of the basic functions of the management process? A) Inspecting B) Staffing C) Leading D) Controlling
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A) Inspecting
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Which of the following OM decisions determines how a good or service is produced and commits management to specific technology, quality, human resources, and capital investment?
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A) Process and capacity design
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The father of scientific management is:
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Frederick Taylor
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The person who believed that management must do more to improve the work environment and processes so that quality can be improved was:
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W. Edwards Deming
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The economic activities that typically produce an intangible product are referred to as:
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Services
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Which of the following organizations does NOT belong to the service sector? A) Costco B) Southwest Airlines C) San Diego Zoo D) Ford Motor Company
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D) Ford Motor Company
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Productivity increases when:
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Inputs decrease while outputs remain the same
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What is the goal for mass customization?
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The goal is to product customized products, whenever and wherever needed
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Which of the following is NOT considered to be a stakeholder? A) Community members B) Distributors C) Competitors D) Customers
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C) Competitors
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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 U.S.
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Which of the following is NOT a reason why domestic business operations decide to change to some form of international operation? A) Improve operations B) Attract and retain local talent C) Improve the supply chain D) Improve products
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B) Attract and retain local talent
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A strategy is:
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An action plan to achieve a mission
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Which of the following is the purpose or rationale for an organization’s existence?
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Mission
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What is a correct example of differentiation?
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Safeskin Corporation, as it’s number one in latex exam gloves that were designed to prevent all allergic reactions
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What is a correct example of cost leadership?
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Southwest Airlines, as it fulfills a need for low-cost and short-hop flights
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What is a correct example or response?
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Johnson Electric, as it competes on speed-speed in design, production, and delivery
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Competing on differentiation is:
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Concerned with uniqueness
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Which of the following does NOT represent competing on response? A) Based on flexibility B) Concerned with reliability of scheduling C) Based on providing uniqueness D) Based on uniqueness
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C) Based on providing uniqueness (this is differentiation)
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Which of the following is NOT one of the 10 strategic OM decisions listen in the text? A) Location B) Quality C) Layout D) Finance/Accounting
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D) Finance/Accounting
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Which of the following is NOT an OM strategy/issue during the growth stage of the product lifecycle? A) Reduce capacity B) Forecasting critica C) Enhance distribution D) Shift towards product focus
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A) Reduce capacity
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Correct impacts a maturing product might have on OM strategy:
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-Manufacturing process stabilizes -Cost cutting is instituted -Optimum capacity may be achieved
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Correct impacts technology innovation in the manufacturing process might have on OM strategy:
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-New human resource skills -Product design needs to be revised -Quality standards need to be revised
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Correct impacts changes in laptop computer design that builds in wireless technology might have on OM strategy:
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-New human resource skills -Purchasing needs to be revised -Inventory needs to be revised
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SWOT analysis refers to:
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Strengths, opportunities, weaknesses, and threats
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Which of these is NOT an advantage of outsourcing? A) Gaining outside expertise B) Accessing outside technology C) Cost savings D) Potential creation of future compeition
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D) Potential creation of future competition
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An international business is a firm that:
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Engages in international trade or investment
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Which international operations strategies uses 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, and controlling
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Which of the following does NOT belong to the planning phase of project management? A) Monitoring resources B) Defining the project C) Team organization D) Goal setting
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A) Monitoring resources
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The project organization may be LESS helpful when:
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The job is familiar to the existing organization
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What is the THIRD level in work breakdown structure? (WBS)
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Subtasks in major tasks
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Gantt charts are:
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Planning charts used to schedule resources and allocate time
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Which of the following is NOT a part of project controlling? A) Using feedback loop to revise the project plan B) Close monitoring of resources, costs, quality, and budgets C) Sequencing and allotting time to all project activities D) Shifting resources to where they are needed most
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C) Sequencing and allotting time to all project activities
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The critical path of a network is the:
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Longest time path through the netowrk
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How is the EF (earliest finish) computed?
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ES (earliest start) + activity time
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Which of these time estimates is NOT used in PERT? A) Standard time B) Optimistic time C) Pessimistic time D) Most likely time
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A) Standard 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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Which of the following is a limitation of PERT and CPM?
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There is the inherent danger of placing too much emphasis on the critical path
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Among the following, the critical path and slack time analysis MOST help:
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Pinpoint activities that need to be closely watched
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What is the most popular example of specialized software for managing projects?
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Microsoft project
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The forecasting time horizon that would typically be easiest to predict for would be the:
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Short range
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A forecast that projects a company’s sales is:
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A demand forecast
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CPFR is:
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Collaborative, planning, forecasting, and replenishment
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Which of the following statements is NOT true? A) When capacity exists, cost can decrease B) When capacity is inadequate, customers can be lost C) When excess capacity exists, cost can increase D) When capacity is inadequate, market share can shrink
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A) When capacity exists, cost can decrease
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Which of the following is the FIRST step in a forecasting system?
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Determine the use of the forecast
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Which of the following forecasting steps comes directly after determining the time horizon of the forecast?
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Gather the data
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Which of the following is a quantitative forecasting method?
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Exponential smoothing
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Which forecasting model is based upon 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 forecasting method considers several variables that are related to the variable being predicted?
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Multiple regression
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A tracking signal is:
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A measurement of how well a forecast is predicting actual values
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Which of the following statements is NOT true about the forecasting in the service sector? A) Detailed forecasts of demand are not needed B) Forecasting in the service sector presents some unusual challenges C) Demand patterns are often different from those in non-service sectors D) Hourly demand forecasts may be necessary
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A) Detailed forecasts of demand are not needed
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Managing quality helps build successful strategies of:
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Differentiation, low cost and response
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Which of the following does NOT increase profit by improving quality? A) Flexible pricing B) Higher warranty costs C) Increased productivity D) Improved reputation
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B) Higher warranty costs
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The American Society for Quality defines quality as:
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The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
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Which of the following costs is NOT a cost of quality? A) Lost goodwill B) Research and development C) Scrap D) Rework
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B) Research and development
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Which of the following is the Japanese term used to describe continuous improvement efforts?
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Kaizen
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Which of the following is NOT one of the techniques for building employee empowerment? A) Build communication networks that include employees B) Build high-morale organizations C) Eliminate formal organization structures such as teams and quality circles D) Develop open, supportive supervisors
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C) Eliminate formal organization structures such as teams and quality circles
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Cause-and-effect diagrams are also known as:
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Fish-bone charts
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A device or technique that ensure production of a good unit every time is a:
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Poka-yoke
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Inspections should NOT take place:
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After costly or irreversible processes
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Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its promises?
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Reliability
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Which of the following is NOT true regarding the importance of the role that an operations manager play in addressing service quality? A) The tangible component of many services is important B) The operations manager should realize that the customer expectations are the standard against which the service is judged C) The manager may be able to influence the quality of the service but has little control over the customers’ expectation D) Managers must expect exceptions
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C) The manager may be able to influence the quality of the service but hast little control over the customers’ expectation
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Which type of control chart should be used when it is possible to have more than one mistake per item?
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C-Chart
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Process capability:
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Means that the natural variation of the process must be small enough to produce products that meet the standard
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Which of the following measures the proportion of variation (3 standard dev.) between the center of the process and the nearest specification limit?
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Process capability index
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What is the percentage defective in an average lot of goods inspected through acceptance sampling?
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AOQ
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Which is the best statement regarding an operating characteristic curve?
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As the AQL decreases, the producer’s risk also decreases

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