True / False Questions

1. Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services. True    False

 2. Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nations. True    False

3. An example of a strategic operations management decision is the choice of where to locate. True    False4. An example of an operational operations management decision is inventory level management. True    False5. Global teams provide diversity while eliminating conflicts and miscommunication. True    False6.  A ‘House of Quality' is achieved when no department in a single location has more than 15% rejects. True    False7. The term capacity refers to the maximum quantity an operating unit can process over a given period of time. True    False8. Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations. True    False9.  Continuous processing is the best way to produce customized output. True    False10. As a general rule, continuous processing systems produce products for inventory rather than for customer order. True    False11. Ergonomics is the use of computers and robots in the workplace. True    False12. Specialization is one of the sources of disagreement between the efficiency and behavioral approaches to job design. True    False13. Location decisions are basically one-time decisions usually made by new organizations. True    False

14.  The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another. True    False

15. Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations. True    False

16. An organization achieves quality by consistently meeting their competitor's standards. True    False

17. One important use of inventories in manufacturing is to decouple operations through the use of work in process inventories. True    False

18. The objective of inventory management is to minimize the cost of holding inventory. True    False

19.  In lean operations, input resources arrive for processing only after the preceding batch has been completed. True    False

20. A functioning MRP system is required prior to adopting lean planning and control systems. True    False

21. A company's supply chain involves the flow of materials and information from suppliers, through production, to the end users. True    False

22.  In supply chain organizations, functions must operate independently of each other. True    False

23.  "Flow-shop scheduling" is used in high volume systems. True    False

24. . Line balancing is a major factor in the design and scheduling of low volume systems because of batch processing. True    False

Multiple Choice Questions

25. Operations management involves continuous decision-making; hopefully most decisions made will be: A. redundantB. minor in natureC. informedD. quantitativeE. none of the above

26. A 'product package' consists of: A. the exterior wrappingB. the shipping containerC. a combination of goods and servicesD. goods if a manufacturing organizationE. customer relations if a service organization

27.  Competitiveness doesn't include: A. ProductivityB. EffectivenessC. ProfitabilityD. Operations StrategyE. Operations Management

28.  Product design and choice of location are examples of _______ decisions. A. strategicB. tacticalC. operationalD. customer focusedE. design

29. The goal of value analysis is to find ways of _______. A. I. Reducing the cost of parts and materialsB. II. Improving the performance of the product or serviceC. III. Incorporating multiple cultural values in global system designD. Both I and IIIE. Both I and II

30. When considering re-use issues for a given product, an important factor to take into account is that product's _______. A. Ethical impactB. ReliabilityC. DurabilityD. Design for assemblyE. None of the above

31. Outsourcing some production is a means of _________ a capacity constraint. A. IdentifyingB. ModifyingC. SupportingD. OvercomingE. Repeating

32. A basic question in capacity planning is: A. what kind is neededB. how much is neededC. when is it neededD. all of the aboveE. none of the above

33. Which of the following is not a process commonly considered in making products or delivering services? A. continuousB. batchC. repetitiveD. job shopE. subcontracting

34. The type of processing system which is used for highly standardized products is: A. continuousB. intermittentC. projectD. batchE. unit

35. Behavioral approaches to job design include: A. SpecializationB. ErgonomicsC. Job RotationD. Flow Process ChartsE. SIMO Charts

36.  A major advantage of job specialization in business is increased _________. A. motivationB. opportunity for advancementC. opportunity for self-fulfillmentD. productivityE. job enrichment

37.  Nearness to raw materials would be most important to a  A. grocery storeB. tax preparation serviceC. manufacturing companyD. post officeE. hospital

38.  A one-hour photo processing machine in a Wal-Mart store is an example of a _________. A. micro-factoryB. downsize strategyC. diversified strategyD. lean production systemE. falling price strategy

39.  A tool that is not used for quality management is ________. A. FlowchartB. HistogramC. Perato AnalysisD. RedesignE. Check sheets

40. The four dimensions of quality that are sometimes used to determine fitness for use of a product are ______. A. performance, special features, durability, and service after saleB. performance, special features, conformance, and reliabilityC. special features, conformance, reliability, and durabilityD. performance, conformance, reliability, and durabilityE. special features, conformance, durability, and service after sale

41. Which of the following is not one of the assumptions of the basic EOQ model? A. Annual demand requirements are known and constant.B. Lead time does not vary.C. Each order is received in a single delivery.D. Quantity discounts are available.E. All of the above are necessary assumptions.

42. Which of the following interactions with vendors would potentially lead to inventory reductions? A. reduce lead timesB. increase safety stockC. less frequent purchasesD. larger batch quantitiesE. longer order intervals

43.  For a company with a product mix of 40% of product A and 30% each of products B and C, which of the following mixed-model sequences most reflects the lean philosophy? A. AABBCCAABCB. ABCABCABCAC. AAAABBBCCCD. BCABCABCABE. BBBAACCCAA

44.  The lean philosophy suggests that workers are _________. A. AssetsB. LiabilitiesC. InterchangeableD. ReplaceableE. To be phased out

45. Which of the following is not a goal of supply chain management? A. fewer suppliers and long-term relationshipB. small lot sizesC. on time deliveriesD. lowest possible transportation costsE. delivery often to the place of use

46. Logistics includes all of these except: A. the movement of materials within a production facilityB. incoming shipments of goods or materialsC. outgoing shipments of goods or materialsD. customer selectionE. returned goods processing

47. Scheduling pertains to: A. hiring workersB. process selectionC. buying machineryD. timing the use of specific resourcesE. determining the lowest cost

48. Which of the following is the last step in the capacity/scheduling chain? A. product planningB. process planningC. capacity planningD. aggregate planningE. scheduling

Essay Questions

49. The weekly output of a production process is shown below, together with data for labor and material inputs. The standard inventory value of the output is $125 per unit. Overhead is charged weekly at the rate of $1500 plus .5 times direct labor cost. Assume a 40-hour week and an hourly wage of $16. Material cost is $10 per running foot. What is the average multi-factor productivity for this process?

    

50. Given the following data for a make or buy decision:

   

What are total costs to buy a quantity of 15,000 units per year? 

51. An analyst has observed 28 work cycles, for which the average cycle time was five minutes and the performance rating was 1.05. Allowances for the department are 25 percent of job time. What standard time is appropriate for this job? 

52. A firm stocks a seasonal item that it buys for $22/unit and sells for $29 unit. During the season, daily demand can be described using a Poisson distribution with a mean of 2.4. Because of the nature of the item, units remaining at the close of business each day must be removed at a cost of $2 each. What is the optimum stocking level, and what is the effective service level? 

53. The All Seasonings Company uses 3,200 glass jars at one of its jar-filling workstations each eight hours of production. The cycle time for a standard container, which holds 90 jars, averages 45 minutes. If management uses an efficiency factor of twenty percent, how many containers should be used?