Operations Management
1 One of the package of features that make up a service are:
Appearance
Facilitating goods
Packaging
Cost
Implied use
2 The Goods-Services Continuum consists of which set of the following categories?
No goods, some goods, even mix, some service, no service
Pure goods, core goods, core services, pure services
No service, some service, good service, excellent service
Self-service, help desk service, face-to-face service, service-with-a-simle
None of the above
3 A major competitive dimension that forms a company's strategic operational competitive position in their strategic planning is which of the following?
Cost or price
Focus
Automation
Straddling
Activity system mapping
4 When developing an operations and supply chain strategy, which of the following is an important product-specific criterion to consider?
Technical liason
Learning curve
Competitor's product performance
Production lot-size
Total quality management
5 An activity-system map is which of the following?
A network guide to route airlines
A listing of activities that make up a project
.A facility layout schematic noting what is done where
A timeline displaying major planned events
A diagram that shows how a company's strategy is delivered to customers
6 Which of the following is not a measure of operations and supply chain management efficiency used by Wall Street?
Inventory turnover
Revenue per employee
Receivable turnover
Earnings per share
Asset turnover
7 Which of the following is a characteristic of concurrent engineering?
Integrated computer-assisted design
Using automated guided vehicles
Separate development teams working at once
Having an excellent forecasting system
The design-build-test cycle
8 Design for manufacturing and assembly delivers product improvements by emphasizing which of the following?
Reducing product quality during the assembly process
Simplification of the product by reducing the number of separate parts
Reducing equipment in the production process
Design products so they can be manufactured by a virtual factory
Designing products that customers will want
9 Which of the following is a time-to-market performance measure used in judging product development performance?
Frequency of new product introductions
Product reliability
Customer loyalty
Yield
Value analysis
10 The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as:
Economies of scale
Economies of size
Economies of shape
Economies of scope
Economies of shipping
11 Capacity planning involving acquisition or disposal of fixed assets such as buildings, equipment or facilities is considered as which one of the following planning horizons?
Intermediate-range
Long-range
Short range
Current
Upcoming
12 If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity utilization rate?
.75
,33
100
1.00
1.25
13 The capacity focus concept can be put into practice through a mechanism called which of the following?
Best operating level (BOL)
Plant within a plant (PWP)
Total quality management (TQM)
Capacity utilization rate (CUR
Zero-changeover-time (ZXT)
14 The way to build in greater flexibility in your workers is to do which of the following?
Pay higher wages to motivate a willingness to do a variety to tasks
Use part-time employees with specialized skills as needed
Provide a wide variety of technology to augment workers skills
Institute a "pay for skills" program
Provide a broader range of training
15 An assumption of learning curve theory is which of the following?
Unit time will decrease at a decreasing rate
Unit time will increase at a decreasing rate
Unit time will decrease at an increasing rate
Unit time will increase at an increasing rate
Unit time will hold constant
16 Which of the following computational methods are used to calculate learning curve statistics?
Simple compounding
Exponential smoothing
Logarithms
Calculus
Negative recursive multiplication
17 The unit improvement factor for a 60% learning curve at 25 units is 0.0933. The first and second timings of a person doing a job are 5 minutes and 3 minutes respectively. Which of the below is the learning-adjusted time estimate for unit number 25?
0.4665 minutes
0.0933 minutes
4.665 minutes
9.33 minutes
3 minutes
18 You have just timed a person doing a job a four times. The first time it took the person 120 minutes, the second time it took 90 minutes, the third time it took 76.1 minutes, and the fourth time it took 67.5 minutes. Which Learning Curve Unit Improvement Factor should you use?
25 percent
75 percent
80 percent
85 percent
90 percent
19 You have determined that a 75 percent learning curve is appropriate for a task. If the initial timing of the person performing that job was 50 minutes, and if you need the job performed 500 times, how many minutes of work will be required?
25,000 minutes
3,184 minutes
3,184 minutes
1,379 minutes
636.8 minutes
20 A process flowchart uses symbols to represent which of the following?
Factory location
Warehouse space available
Work force schedules
Flows of material or customers
Data analysis
21 A process flowchart uses which of the following symbols to represent storage areas or queues in a flow diagram?
Rectangle
Arrow
Inverted Triangle
Diamond
A dashed line
22 A process flowchart uses which of the following symbols to represent flows of material or customers in a flow diagram?
Rectangle
Arrow
Inverted Triangle
Diamond
A dashed line
23 Which following production process term best describes the situation when activities in a stage of production must stop because there is no work?
Blocking
Buffering
Starving
Buffer
Setup time
24 An advantage of a make-to-stock process is which of the following?
Rapid delivery of a standard product
All units of output are unique
It responds directly to customer orders
It allows the firm to avoid inventory costs
It combines the best features of other processes
25 According to Little's Law, which of the following ratios is used to find flow time?
Cycle time/Process time
Throughput time/Process velocity
Process velocity/Throughput time
Inventory/Throughput rate
Value added time/Process velocity
26 To reduce process throughput time you might try which of the following actions?
Outsource activities
Change the sequence of activities
Improve teamwork
Reduce management interference
Introduce incentive pay
27 A difference between project and continuous flow categories of process flow structures is which of the following?
The size of the product
Discrete parts moving from workstation to workstation
Degree of equipment specialization
Being a "Virtual Factory"
Profit per unit
28 Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the following is the number of units that has to be produced and sold to break-even?
5,000 units
6,000 units
8,000 units
11,000 units
12,000 units
29 Which of the following is a basic type of process structure?
Process flow diagram
Product matrix
Process matrix
Workcenter
Manual Assembly
30 Which of the following basic types of process structures is one which equipment or work processes are arranged according to the progressive steps by which the product is made?
Project
Workcenter
Manufacturing Cell
Continuous process
Assembly line
31 Which of the following is a characteristic that can be used to guide the design of service systems?
Services cannot be inventoried
Services are all similar
Quality work means quality service
Services businesses are inherently entrepreneurial
Even service businesses have internal services
32 Which of the following refers to the physical presence of the customer in a service system?
Creation of the service
Customer contact
Intermittent production
Continuous production
None of the above
33 Which of the following is an alternative possible service encounter included in the service-system design matrix?
Face-to-face distance
Internet
Questionnaire response
Automated teller (ATM)
Response card encounter
34 In the service-system design matrix, a face-to-face loose specs service encounter is expected to have which of the following?
Low sales opportunity
High production efficiency
Low degree of customer/server contact
Low production efficiency
None of the above
35 The text mentions several common approaches to use when developing a strategy to close a capacity gap (where utilization of a resource exceeds capacity available). Which of the following is not among the common approaches mentioned?
Transferring capacity from other units
Increasing capacity through overtime
Subcontracting with other hospitals
Bottleneck reduction
New construction
36 The textbook mentions seven trends in health care. Which of the following is one of them?
Remote surgical treatment
Gene therapy
Increasing legal costs
Increasing cost of healthcare
Integrated medical care
37 The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran had the same general message about what it took to achieve outstanding quality. Which of the following was part of that message?
Fourteen steps for quality management
Quality is free
Customer focus
Zero defects
Six-sigma
38 A flow chart as part of a six-sigma quality improvement process might be found in which DMAIC category?
Define
Measure
Analyze
Improve
Control
39 Design of experiments is a statistical methodology often used in six-sigma projects. It aims to accomplish which of the following?
Keep careful track of the occurrences of each possible defect
Determine the cause and effect relationships between process variables and output
Report defects to management on a Pareto chart
Carefully change each individual process variable until the cause of a defect is found
Eliminate defects by finding out who or what is causing them