1. The operations strategy for an organization:
a. must fit within the overall business strategy and does not impact other functional strategies.
b. is developed before the overall business strategy and other functional strategies.
c. is independent of the other functional strategies such as those of marketing and finance.
d. takes priority over other functional strategies such as those of marketing and finance.
e. must fit within the overall business strategy and link with other functional strategies.
2. Quality is defined as:
a. having the ability to produce products and services with minimal defects.
b. conducting focus groups to understand the needs of the customer.
c. consistently producing products and services that meet financial projections.
d. producing products and services that have zero defects.
e. consistently producing products and services that meet or exceed customer needs.
3. This type of innovation typically refers to a product modification that allows improved performance and benefits without changing either consumption patterns or behavior.
a. radical innovation
b. disruptive innovation
c. continuous innovation
d. blue ocean strategy
e. life cycle innovation
4. In the service process matrix the service factory is categorized by:
a. low customer involvement and high labor intensity.
b. low customer involvement and low labor intensity.
c. high customer involvement and high labor intensity.
d. high customer involvement and low labor intensity.
e. None of the above.
5. Qualitative forecasting methods are used when:
a. no quantitative data are available.
b. historical data is available.
c. the forecast time horizon is short term.
d. the forecast time horizon is long term.
e. the relationships between variables is known.
6. Safety stock inventory is:
a. the inventory that a company holds to guard against uncertainty in demand, lead time, and supply.
b. the inventory that a company holds to protect against price increases.
c. the inventory that a company holds to guard against uncertainty in supplier demand and lead time.
d. necessary for a company to take advantage of quantity discounts.
e. required for all organizations to maintain supplier agreements.
7. The demand for any item that is used as a part or component in another item is referred to as:
a. dependent demand.
b. independent demand.
c. material requirements plan (MRP).
d. master schedule.
e. enterprise resource plan (ERP).
8. The following are responsibilities of the project manager, EXCEPT:
a. participating directly in the activities that produce the end result.
b. serving as a point of contact for delivering the goals of a project to its customers.
c. adapting to the various project constraints quickly and effectively.
d. meeting project time and scope constraints.
e. ensuring that the project is executed within budget.
9. The following are justifications for using computer simulation models to aid in decision making, EXCEPT:
a. models increase consumer dissatisfaction since the new idea has only been tested through a simulation model.
b. it can be difficult to predict outcomes in complex, real-world operating environments because of the effects of chance.
c. testing proposed new operating procedures in an actual operation is often expensive, complicated, and risky.
d. models allow managers to evaluate multiple operations designs and perform what-if types of analyses.
e. models allow the user to try out different strategies or alternatives without actually implementing them in practice.
10. Systematic capacity planning includes the following steps EXCEPT:
a. estimating future capacity requirements.
b. identifying capacity gaps.
c. developing alternative strategies for addressing gaps.
d. selecting the strategy which minimizes the associated costs.
e. choosing appropriate alternatives.
11. The following are examples of customer feedback collected for quality improvement EXCEPT:
a. customer satisfaction surveys.
b. customer choice analysis.
c. blogs.
d. customer affinity diagrams.
e. customer panels.
12. This type of inventory system used to deliver the right amount of inventory at the right time during the production process is known as:
a. just-in-time (JIT).
b. a pull system.
c. a push system.
d. a capacity system.
e. a batch system.
13. Which of the following is a common risk in adopting new technology?
a. The technology doesn't work as expected.
b. The technology quickly becomes obsolete by newer technologies.
c. The company and its employees are not able to fully capitalize on all the benefits of a technology.
d. Customers do not buy the new technology.
e. All of the above.
14. The advantages of outsourcing include the following, EXCEPT:
a. achieving higher performance.
b. greater flexibility.
c. cost reductions.
d. knowledge increases.
e. enhanced marketing.
15. Examples of key supply chain management decisions at the Sony Corporation include:
a. financing the capital expenditures related to the manufacturing capacity and the selection of product markets.
b. determination of the manufacturing capacity and the logistic network to move product between plants and product markets.
c. development of new products and the production of the product mix.
d. financing the capital expenditures to produce the various product mixes.
e. marketing the product mix and the determination of the supplier network.
16. If an organization invests in prevention costs:
a. internal failure costs, external failure costs and assurance costs may also be reduced.
b. internal failure costs, external failure costs and assurance costs will increase.
c. internal failure costs, external failure costs and assurance costs will not be impacted.
d. internal failure costs and external failure costs will be reduced but appraisal cost will increase.
e. internal failure costs and external failure costs will increase and appraisal cost will decrease.
17. A typical product will go through the following stages in the product life cycle, EXCEPT:
a. introduction.
b. growth.
c. decline.
d. phase out.
e.maturity.
18. In the service process matrix the mass service is categorized by:
a. low customer involvement and high labor intensity.
b. low customer involvement and low labor intensity.
c. high customer involvement and high labor intensity.
d. high customer involvement and low labor intensity.
e. None of the above.
19. A ________ is scheduled when planned on-hand inventory is equal to or less than safety stock.
a. beginning inventory
b. gross requirements
c. planned receipts
d. scheduled receipts
e. projected on-hand inventory
20. If a project needs to be crashed, the manager will typically focus on activities which:
a. are not on the critical path.
b. are costly to crash.
c. are the least costly to crash.
d. are on the critical path and are the least costly to crash.
e. are on the critical path and are the most costly to crash.
21. The firms two best selling products sell at the following profit margin: $20 for product 1 and $40 for product 2. The marketing department recommends that at least 100 of each type of product be produced per day.
Product 1 requires 5 labor-hours in the fabrication department and 2 labor-hour in the assembly department. Product 2 requires 5 labor-hours in the fabrication department and 3 labor-hours in the assembly department. There are currently 150 workers in the fabrication department and 75 workers in the assembly department each shift. There are three 8-hour shifts per day (overtime is not permitted).
Formulate this information as a profit-maximizing linear programming problem with the following decision variables:
X1 = the number of units of product 1 produced
X2 = the number of units of product 2 produced
The assembly constraint should be expressed as:
a. X1 + X2 75
b. X1 + X2 1800
c. 2X1 + 3X2 75
d. 2X1 + 3X2 1800
e. 3X1 + 2X2 1800
22. The type of waste present in a production system is that associated with the unevenness of the processes is known as:
a. JIT.
b. mura.
c. muda.
d. muri.
e. kaizen.
23. Which type of manufacturing technology is used to assist in tracking information related to the manufacturing process?
a. processing technologies
b. design technologies
c. product technologies
d. administrative technologies
e. manufacturing technologies
24. Which type of international production facility's primary role is to collect information?
a. offshore factory
b. source factory
c. server factory
d. contributor factory
e. outpost factory
25. DMAIC stands for
a. Define, Measure, Analyze, Improve, and Control
b. Dog, Mail, Analyze, Insurance, Copy
c. Nothing
d. Define, Measure, Analyze, Intern, Control
e. Define, Measure, Analyze, Improve, Cost