MGT613 - Production Operations Management

1INCORRECT

Historically in most manufacturing organizations, operations was viewed as an internal function that is buffered from the external environment.

A)True

B)False

2 CORRECTRecently, there has been a decline in the interest in operations management.

A)True

B)False

3 CORRECTThe strategic issues of OM are broad in nature including how much capacity should be acquired.

A)True

B)False

4 INCORRECTWarehousing OM transformations are referred to as exchange transformations.

A)True

B)False

5 INCORRECTWho developed the use of standardization in large-scale mass production using a moving assembly line?

A)Frederick Winslow Taylor

B)Frank Gilbreth

C)Adam Smith

D)Charles Babbage

E)Henry Ford

6 INCORRECT Which of the following is NOT associated with the work of Taylor?

A)A one-best way of doing things.

B)The hierarchal needs of labor.

C)The scientific method.

D)Clear distinctions between the responsibilities of labor and management.

7 INCORRECT

Match the transformations:1. exchange A. manufacturing2. physical B. making a sick person well3. physiological C. retailing4. storage D. warehousing

A)1C, 2A, 3D, 4B

B)1D, 2A, 3C, 4B

C)1A, 2B, 3D, 4C

D)1B, 2C, 3D, 4A

E)1C, 2A, 3B, 4D

8 INCORRECT Which of the following is NOT an OM tactical issue?

A)How many workers do we need?

B)Where do we locate the facility or facilities?

C)When should we have material delivered?

D)Should we work overtime or put on a second shift?

9 CORRECTWhich of the following is NOT an example of the shift of power from producers to consumers?

A) increasingly higher quality products

B)a focus on shorter delivery times

C)less emphasis on reducing labor and material costs

D)better utilization of facilities

10 CORRECT Higher productivity derived from efficient operations leads to

A)more expensive goods and services

B) lower quality goods and services

C)higher discretionary incomes for consumers

D) increased dependence on expensive labor

11 INCORRECTWhich of the following is consistent with contemporary operations management?

A) limitation of expensive aluminum recycling efforts

B)raw waste disposal into waterways in acceptable quantities

C)restricting air pollutant production to areas where pollution is normal

D)replanting of forest land to reduce erosion

12 CORRECT Which of the following best describes the concept of the value chain?

A)adding financial value to an organization through the acquisition of other firms

B)the step-wise increases in product prices as raw materials are turned into goods/services

C)the steps in manufacturing that add value to finished products

D)all steps in the transformation process that add value even if they don't come from manufacturing

The correct answer for each question is indicated by a  .

1 CORRECT Corporate strategy refers to the overall strategy of the firm.

A)True

B)False

2 CORRECTOperations strategy can be divided into two major categories, structural elements and infrastructural elements.

A)True

B)False

3 CORRECTThe four basic competitive priorities are cost, quality, delivery and flexibility.

A)True

B)False

4 CORRECT Service warranties are becoming more important as order winners.

A)True

B)False

5 INCORRECTOperations management divides decisions into three broad categories. They are:

A)Strategic, operational and financial

B)Personnel, financial and operational

C)Strategic, tactical and operational planning and control

D)Planning, tactical and control

E)Planning, organizing and financial

6 INCORRECTWhich of the following has been added most recently to the four basic competitive priorities?

A)Service

B)Cost

C)Quality

D)Delivery

E)Flexibility

7 INCORRECTAccording to the authors, which of the following is becoming the newest competitive advantage?

A)Service

B)Delivery

C)Cost

D)Quality

E)Environmental friendliness

8 INCORRECT A market segmentation strategy refers to

A)Selling to everyone in a particular geographic area

B)Satisfying the needs of a particular market niche

C)Offering products/services that differ significantly from the competition

D)Offering a wide variety of products/services in a particular area

9 INCORRECTIf the perceived customer value is measured as the ratio of Total Benefits/Total Costs, a customer feels 'ripped off' if the ratio is

A)<

1

B)>1

C)=1

10 CORRECTDavis and Meyer (Blur) indicate three factors that are changing the way we do business today. The factors are:

A)Location, cheap labor, just-in-time systems

B)Connectivity, speed, and intangibility

C)Cost, quality, and flexibility

D)Financial capital, marketing, and transportation

11 INCORRECTWith respect to the Customer's Activity Cycle (CAC), a firm's position in the marketplace is strongest if it is involved in

A)The pre-purchase activities

B)The purchase activities

C)The post-purchase activities

D)All of these activities

12 CORRECTA service that consists of specific functions that are part of the product itself is called a(n)

A)Embedded service

B)Comprehensive service

C)Integrated solution

D)Distribution control

The correct answer for each question is indicated by a  .

1 INCORRECTFord's Model T car, nylon fabric, and Xerox copiers were examples of breakthrough products when they were introduced.

A)True

B)False

2 INCORRECTIn designing for manufacturability, it is desirable to keep the number of individual parts to a minimum.

A)True

B)False

3 CORRECTA service-system design matrix helps in relating sales opportunity with production efficiency, as contact with the customer goes up, production efficiency goes down.

A)True

B)False

4 CORRECT In services, service production and consumption are often simultaneous.

A)True

B)False

5 INCORRECT A jail is given as an example of a:

A)Facilities-based service business

B)Field-based business

C)Internal service business

6 INCORRECTWhich one of the following could best be run as an internal services system?

A)A university billing office

B)A dance studio

C)A branch office of a professional employment agency

D)A movie theater

7 INCORRECTWhich of the following types of processes will be used to produce gasoline and petroleum products?

A) Job Shop

B)Batch

C)Assembly Line

D)Continuous Processing

E)Project

8 CORRECTThe product-process matrix illustrates that for firms operating above the diagonal, there is

A)Greater flexibility, higher cost

B)Less flexibility, lower cost

C)Greater flexibility, lower cost

D)Less flexibility, higher cost

9 CORRECTWhich of the following is a major reason for the significant increase in foreign competition?

A)Advances in telecommunications

B)A trend toward higher trade barriers

C)Fewer numbers of trade organizations

D) Increased tariffs on

foreign goods

10 INCORRECT Which of the following factors contributes to successful product design?

A)Using engineers/designers exclusively in the design phase

B)Eliminating prototype development as a part of the design phase

C)Ignoring quality, cost, and delivery issues in the design phase

D)Surprising the customer with extra features

11 INCORRECTA new service with a high degree of content change and a high degree of delivery change is categorized as

A)Breadth of offering

B)Revolutionary

C)Window dressing

D)Channel development

12 INCORRECT

What is the correct order for the stages of the new service development process?1. design2. full launch3. development4. analysis

A)1, 2, 3, 4

B)1, 4, 3, 2

C)4, 1, 3, 2

D)4, 3, 1, 2

The correct answer for each question is indicated by a  .

1 INCORRECTThe work breakdown structure is used to identify tasks to be performed in a project.

A)True

B)False

2 INCORRECTThe two main components in project management are behavior of people and the technology of the method.

A)True

B)False

3 CORRECTResources from one parallel activity can rarely be transferred to the other parallel activity.

A)True

B)False

4 CORRECTThe Beta distribution is always the best distribution for estimating the distribution of activity times.

A)True

B)False

5 INCORRECT In CPM charts

A)Squares designate events, arrows designate activities

B)Circles designate events, arrows designate activities

C)Circles designate activities, arrows designate nodes

D)Circles designate activities, arrows designate precedence

6 INCORRECTThe earliest expected completion date of the project is which of the following?

A)27

B)19

C)17

D)15

E)12

7 INCORRECT The variance for activity C is which of the following?

A)4

B)2

C)1/3

D)1/6

E)1/9

8 CORRECT The variance of the critical path is which of the following?

A)1/9

B)1/3

C)2/3

D)1/6

E)4/9

9 INCORRECT The EF for activity C is which of the following?

A)4

B)13

C)15

D)17

E)27

10 INCORRECT The activity slack for activity D is which of the following?

A)0

B)4

C)12

D)13

E)17

11 INCORRECTWhich of the following is a major difference in managing projects as opposed to managing ongoing processes?

A)Project teams are permanent

B)Projects are typically managed with the organization's formal structure

C)Projects require flexibility because they are not repeated

D)Project tasks can always be perfectly defined

12 CORRECT Which of the following would NOT be considered a crash cost?

A)Overtime pay

B)Vacation pay

C)Special shipping costs

D)Pay for extra labor

The correct answer for each question is indicated by a  .

1 CORRECTAdvances in technology are affecting every aspect of business, except operations management.

A)True

B)False

2 CORRECTTo properly integrate technology into an organization, managers must recognize the capabilities and shortcomings of that technology.

A)True

B)False

3 INCORRECTThe traditional tradeoffs between operations strategies are no longer valid due to improvements in technology.

A)True

B)False

4 INCORRECTSuccessful implementation of new technology never requires you to train your customers.

A)True

B)False

5 INCORRECTTo properly integrate new technology into their organization, a firm should realize

A)that there are no limitations on the usefulness of that technology

B)that customer training in the use of the technology will typically be unnecessary

C)that customer 'fear of the unknown' is still a real issue

D)that it will only work for tangible products

6 CORRECTAn operation where machine tools are changed automatically are known as

A)a machine center

B)computer integrated manufacturing

C)a flexible manufacturing system

D)computer-aided design

7 INCORRECTIntegration of all aspects of manufacturing through computers is known as

A)using machine centers

B)computer integrated manufacturing

C)a flexible manufacturing system

D)computer-aided design and manufacturing

8 CORRECTA software system providing a common software infrastructure and database is called

A)enterprise resource planning

B)supply chain management

C)new product development

D)customer relationship management

9 INCORRECT ERP is an outgrowth of

A)MRP

B)EDI

C)JIT

D)CRM

10 INCORRECT One of the current technology trends in services is

A)the growth of full-service operations

B)the increased importance of location

C)the shift away from time-dependent transactions

D)decreases in disintermediation

11 INCORRECT A key consideration for integrating new technology into services is

A)the potential for slower service

B)the lack of knowledge about customers associated with the new technology

C)the inability to offer a wide variety of services

D)the potential for labor cost reduction

12 INCORRECTThe most secure way of providing information to people within an organization is the use of which type of e-service network?

A) internet

B) intranet

C)extranet

D)EDI

The correct answer for each question is indicated by a  .

1 INCORRECT Every set of activities represents a process that needs to be managed.

A)True

B)False

2 INCORRECT "If you can't measure it, you can't manage it."

A)True

B)False

3 CORRECTCompetitive benchmarking involves comparing an organization's performance with that of its best competitors.

A)True

B)False

4 CORRECTReengineering means literally starting from the beginning with a clean sheet of paper.

A)True

B)False

5 CORRECT Which of the following is NOT a characteristic of a reengineering process.

A)Small incremental changes.

B)Several jobs are combined into one.

C)Workers make decisions.

D)Work is performed where it makes most sense.

6 INCORRECT

What is the sequence of steps used in service blue printing?1. Isolate fail points2. Establish a time fence3. Analyze profitability

4. Identify the process

A)1-2-3-4

B)4-1-2-3

C)2-4-1-3

D)3-2-1-4

7 INCORRECT A business process is a logical set of tasks or activities that

A)Are specific to the operations function

B)Are specific to the marketing function

C)Are interdependent with other processes

D)Have exactly the same performance measures for any kind of process

8 INCORRECTThe degree of detail that is used in business process analysis is often referred to as

A)Functional benchmarking

B)Modularization

C)Utilization

D)Granulation

9 INCORRECTPerformance measures concerned with specific work processes that are virtually the same for all industries refer to

A) Internal benchmarks

B)Competitive benchmarks

C)Functional benchmarks

D)Generic benchmarks

10 INCORRECT Agile manufacturing is most closely associated with

A)Productivity

B)Capacity

C)Quality

D)Speed

E)Flexibility

11 INCORRECT Relative productivity increases only if

A)Your process outputs go up

B)Your process inputs go down

C)Your process outputs go up faster than your process inputs

D)Your productivity goes up faster than your competition's

12 INCORRECTWhich of the following is NOT a classic process performance measure as discussed in the book?

A)Productivity

B)Profitability

C)Quality

D)Flexibility

The correct answer for each question is indicated by a  .

1 INCORRECTSunk costs are expenses which have no effect on a decision and therefore, should not be taken into account in considering investment alternatives.

A)True

B)False

2 INCORRECTDepreciation refers to the allocation of cost due to deterioration of tangible assets.

A)True

B)False

3 CORRECTActivity-based costing allocates overhead costs using actual estimates of direct labor consumed by an activity.

A)True

B)False

4 INCORRECTThe net present value refers to the total stream of payments that an asset will generate in the future discounted to the present.

A)True

B)False

5 CORRECTAn asset is purchased at a $10,000 value. The estimated salvage value of the asset at the end of 10 years is $1,000 and the useful life is 10 years. Which of the following is the straight line depreciation sum?

A)800

B)900

C)1000

D)1100

E)1200

6 INCORRECT A cost that must be incurred if an investment is not made is a(n):

A)Sunk cost

B)Fixed cost

C)Avoidable cost

D)Opportunity cost

7 CORRECTA benefit foregone which results from choosing one investment over a better investment is an example of:

A)Fixed costs

B)opportunity costs

C)avoidable

costs

D)semivariable costs

8 INCORRECT

Investment A has a payback period of 3 years and a present value of $40,000.Investment B has a payback period of 4 years and present value of $50,000.

A) Investment A should be chosen.

B)Investment B should be chosen.

C)Both should be chosen with half invested in each.

D)Neither should be chosen.

E)It's a managerial decision with no clearly defined choice.

9 INCORRECTWhich of the following is NOT an underlying assumption of linear break-even analysis:

A)Selling price per unit is constant.

B)Variable costs per unit remain constant.

C)Fixed costs remain constant.

D)The volume of units sold affects the per unit costs.

10 INCORRECTIf process 1 has fixed costs of $10,000 and variables costs of $50 per unit, and process 2 has fixed costs of $20,000 and variable costs of $30 per unit, what is the break-even point between these two processes?

A)500

B)667

C)2,000

D)3,750

E)5,000

11 INCORRECT Which of the following is NOT an economic investment decision?

A)Purchasing new facilities

B)Improving labor efficiency

C)Make or buy

D)Closing a plant

12 INCORRECT Which of the following is NOT an Excel financial function?

A)Break-even

B)Future value

C)Net-present value

D) Internal rate of return

The correct answer for each question is indicated by a  .

1 INCORRECT The quality movement can trace its roots back to Walter Shewhart.

A)True

B)False

2 CORRECTIn the US, the importance of quality in the success of an organization didn't begin to be recognized until the late 1970's.

A)True

B)False

3 INCORRECTExternal failure costs in quality refer to costs that are incurred after the product has been delivered to the customer.

A)True

B)False

4 INCORRECT Only Japanese firms can apply for the Deming Award.

A)True

B)Fals

e

5 CORRECT Which of the following firms has not won the Baldrige Award?

A)Ford

B)IBM

C)Milliken and Co.

D)Federal Express

6 CORRECTDeming would argue that as much as 94% of poor quality is the responsibility of:

A)Management

B)The process

C)Workers

D)Engineering

7 INCORRECT Which of the following is an example of a stereo amplifier's features?

A)Signal-to-noise ratio

B)Remote control

C)Mean time to failure

D)Useful life

8 INCORRECT Which of the following is an example of a stereo amplifier's durability?

A)Signal-to-noise ratio

B)Remote control

C)Mean time to failure

D)Useful

life

9 INCORRECT Which of the following is an example of a firm's reputation?

A)Ease of repair

B)Courtesy

C)Oak-finished cabinet

D)Consumer Reports ranking

10 CORRECT ISO 9000 quality standards are targeted at organizations in

A)America

B)Japan

C)Europe

D)The international economic community

11 CORRECT Which of the following is NOT consistent with the concept of TQM?

A)Organizational leadership

B)Quality control departments

C)Continuous improvement

D)Customer focus

12 INCORRECT Which of the following is appropriate for Six Sigma quality?

A)Defects per hundred

B)Defects per thousand

C)Defects per hundred thousand

D)Defects per million

The correct answer for each question is indicated by a  .

1 CORRECTThe achievement of maximum capacity denotes a highly efficient process.

A)True

B)False

2 INCORRECTA GIS is a graph of a geographic area displaying demographics or other information to support decision making.

A)True

B)False

3 CORRECTFactor rating systems are the least frequently used of the techniques presented for plant location analysis.

A)True

B)False

4 CORRECTFor manufacturers, the facility location problem can be categorized as factory location and warehouse location.

A)True

B)False

5 INCORRECTAccording to the authors, two reasons that capacity and location problems are interrelated are (choose the best answer):

A) Increased networking and information needs

B)The need for producers to locate near customers and the growth of the network firm

C)Legal requirements and safety requirements

D)Logistics and information needs

6 INCORRECT The best operating level is:

A)The maximum point of the cost curve

B)The level of capacity for which average unit cost is minimized

C)Maximum capacity

D)The level of capacity for which total cost is minimized

7 INCORRECTThe capability to deliver what the customer want within a lead time shorter than the competitors is referred to as:

A)Process flexibility

B)Worker flexibility

C)External flexibility

D)Capacity flexibility

E)Plant flexibility

8 INCORRECT Long-range capacity planning should be the responsibility of:

A)Analysis

B)Middle management

C)Top management

D)Marketing management

9 INCORRECTWhich of the following is NOT a method which is used in location analysis?

A) linear Programming-transportation model

B)best location method

C)cost analysis

D)center of gravity method

10 INCORRECT Flexible workers are typically:

A)Receive little training

B)Stay on task

C)Prefer standardized work assignments

D)Better educated

11 INCORRECT Which of the following is NOT a qualitative factor in location decisions?

A)Local infrastructure

B)Worker education and skills

C)Product content requirements

D)Exchange rates

E)Political/economic stability

12 INCORRECT A brick and mortar operation is

A)A facility that deals directly with the customer

B)A facility that deals indirectly with the customer

C)A facility that has no contact with the customer

D)Also known as a back-of-the-house operation

1._______ allows the manager to anticipate the future so then can plan accordingly. Forecasting

Planning Organizing Leading

2. Forecasts are rarely perfect because of: Internal factors Randomness External factors All of the given options

3. Forecast accuracy ________ as time horizon increases. Increases Decreases Remains the same None of the given options

4. __________ use explanatory variables to predict the future. Judgmental forecasts Time series forecasts Associative models All of the given options

5. All of the following are examples of judgmental forecasts except: Executive opinions Consumer surveys Delphi method Naïve forecasts

6. _________ requires completing a series of questionnaires, each developed from the previous one, to achieve a consensus forecast.

Naïve forecast Time series analysis Associative models Delphi method

7. One of the drawbacks of naïve forecasts is: Low accuracy High cost No ease at using None of the given options

8. All of the following are responsible for irregular variations except: Severe weather Earthquake Worker strikes Cultural changes

9. _______ is a technique that averages a number of recent actual values, updated as new values.

Moving average Weighted moving average Simple moving average Exponential smoothing

10. MAPE stands for: Measure Actual Performance Error Mean Absolute Percent Error Mean Actual Percent Error Mean Absolute Performance Error

1. The prime determinants of choosing a sampling plan include:a) Costb) Timec) Environmentd) Both cost and time

2. The ideal sampling plan requires ______ inspection of each lot.a) 100%b) 50%c) 10%d) 25%3. As the lot quality decreases, the probability _________.a) Increasesb) Decreasesc) Remains neutrald) None of the given options4. ________ represents maximum AOQ for a range of fractions defective.a) Acceptable Quality Level (AQL)b) Average Outgoing Quality Limit (AOQL)c) Lot Tolerance Percent Defective (LTPD)d) None of the given options5. ___________ refers to intermediate range capacity planning, usually covering 2 to 12 months.a) Aggregate planningb) Moderate planningc) Long rang planningd) Short range planning6. _________ is an optimizing technique that seeks to minimize combined costs, using a set of cost-approximating functions to obtain a single quadratic equation.a) Linear programmingb) Linear decision rulec) Aggregate planningd) Lot Tolerance Percent Defective (LTPD)7. ________ takes physical count of items at periodic intervals.a) Periodic inventory systemb) Perpetual inventory systemc) Two-bin systemd) Universal bar code system8. _______ refers to the cost to carry an item in inventory for a length of time.a) Shortage costb) Ordering costc) Holding costd) None of the given options

9. Inputs to MRP include all of the following except:a) Master schedule planb) Bill of materials

c) Inventory recordsd) Control charts10. ________ represents the process of determining short-range capacity requirements.a) Capacity requirements planningb) Aggregate planningc) Capacity planningd) Schedule planning

1. Which of the following activities is unnecessary ,when an organization decides to design its new product or service or refine its existing product or service:a Translate customer wants and needs into product and service requirementsb Refine existing products and servicesc Develop new products and services

d Manage the purchasing activities religiously and diligently. 2. While focusing on capacity planning, organizations look for which of the

following alternatives.

a. How much will it cost b. How much holidays the workers can enjoy.c. How much compensation they need to pay to their CEO.d. None of the above

3. Which of the following is not one of the assumptions for Cost Volume Analysis

a. One product is not involved b. Everything produced can be soldc. Variable cost per unit is the same regardless of volumed. Fixed costs do not change with volume

4. Which of the following does not fall under Economic Production Quantity ( EPQ)

a. Only two or more item are involvedb. Annual demand is knownc. Usage rate is constantd. Usage occurs continually

5. Advantages of Process Layout Include

a. Equipment used is less costly b. Low unit cost.

c. Labor specialization.d. Low material handling cost

6. Common types of Operations includea. Continuous Processing.b. Intermittent Processing.c. Automation

d. All of the above7. System performance is measured by

a. Average number of customers being refused serviceb. Average time customers waitc. System utilization

d. b and c. 8. Inventory carrying costs are influenced by:

a. Order Quantity in Unitsb. Holding carrying cost per unit.c. Demand

d. a and b only. 9. Bar coding helps in determining the :

a. Status of the inventory of an item in warehouseb. Price of the productc. Size of the lot as well as the size and specifications of the product

d. All of the above10. Therbligs are basic elemental motions which include:

a. Searchb. Selectc. Throw

d. a and b only11. Key issues in inspection include where to inspect, how often to inspect and

whether to inspect on site or in a lab.

12. Total Quality Management TQM has two important aspects first being

problem solving and second being process improvement

13. Sampling Plans specify lot size, sample size, number of samples and

acceptance/rejection criteria.

14. Aggregate planning establishes general level of employment, output and

inventories for periods of 2 to 12 Months.

15. Master schedule is prepared by desegregating the Aggregate Plan.

16. Inventory levels must be carefully planned in order to balance the Holding

Costs of inventory and cost of providing levels of customer service

17. Economic Order Quantity (EOQ) and Economic Production Quantity (EPQ)

make use of the same set of assumptions except orders are received

incrementally during production. .

18. To be successful MRP requires a computer program, accurate master

schedule, bills of material, and inventory data.

19. Manufacturing Resources Planning (MRP II) and Enterprise Resource

Planning (ERP) are natural extensions of MRP, which cover broader scopes as

well as Supply Chain Managements.

20. Process Layouts group similar activities into departments or other work

centers.

21. Fixed Position Layouts are used when size, fragility, cost or other factors

make it undesirable or impractical to move a product through a system.

22. The design of work systems involves job design, work measurements and

compensation

23. The primary location options available to an existing organization include

expanding the existing location, move to a new location, maintain existing

facilities while adding additional facility or do nothing.

24. Most organizations are influenced by location of raw materials, labor supply,

market considerations, community related factors, site related factors and

climate.

25. ISO 9000 and ISO 14000 represent quality standards and environment

standards respectively.

26. Two basic tools of process control are control charts and run tests.

27. The decision to shift or convert from Traditional Manufacturing System to

Just in Time or Lean Systems could be sequential in order to help

management have better control, first hand learning experience and more time

for conversion from one system type to another.

28. The ultimate goal of a Just in Time System is to achieve a balanced, smooth

flow of production.

29. Logistics involve movement of materials to and from the organization

including shipment and distribution.

30. Electronic Data Interchange has increased productivity and accuracy in

Supply Chain Management Systems.

Virtual University of PakistanProduction Operations Management

MGT 613Quiz 01

SolutionFill in the Blanks

1. strategy that focuses on reduction of time needed to accomplish tasks is called

time based strategy

2. Mission is the reason for existence of an organization

3. Judgmental forecasts are the forecasts that use subjective inputs such as

opinions from consumer surveys, sales staff, managers, executives and experts.

4. A long term upward or downward movement in data is called trend

5. The forecast for any period that equals the previous period’s actual value is called

naive forecast

6. A decision tree is a schematic representation of the available alternatives and

their possible consequences.

7. A measure of the effective use of resources, usually expressed as the ratio of

output to input is called productivity

8. The ability to adapt quickly to changes is called flexibility

9. The operations function involves the conversion of inputs into output

10. The considering of events and trends that present threats or opportunities for a

company are called environmental scanning

1. -------------------- is the maximum output rate or service capacity an operation, process or facility.

a. Efficiencyb. Effective Capacityc. Design Capacity

2. -------------- is the rate of output actually achieved.a. Actual Outputb. Design Capacityc. Utilization

3. A knowledge of economies and diseconomies of scale is -----------a. Important for operations managerb. Not Important for operations managerc. It makes no difference

4. If the output rate is less than the optimal level, increasing output rate results in -------------------- average unit cost

a. Increasingb. Decreasingc. Stabilizing

5. As the output is increased, the unit cost is decreased becausea. Of external factorsb. Because there are more units to absorb the fixed costsc. None of the above

6. as the general capacity of the plant increased, the optimal output rate increases and the minimal cost for the optimal rate

a. Decreasesb. Increasesc. It has no effect with the output rate

7. The primary purpose of cost- volume analysis isa. To estimate the income of an organizationb. To analyze initial costs incurred under different operating conditionsc. Both A and B

8. variable costs vary ---------------- with volume of outputa. Inverselyb. Directly

9. -------------- refers to the way, an organization chooses to produce its goods or services

a. Process selectionb. Capacity planningc. Cost volume analysis

10. Ice cream is an example of a. Batch processingb. Job shopc. Repetitive processing

Fill in the blanks.

1. Eliminating the disruptions and making the system flexible are __________goals

of the JIT. (supporting)

2. Incremental Holding Cost incurred by using slower alternative is computed

through Incremental Holding Cost =________________.( H*(d/365) )

3. One of the basic elements of the Supply Chain Management is ____________ for

evaluating suppliers and supporting operations.( purchasing)

4. CPFR stands for______________________________.(Collaborative Planning

Forecasting and Replacement)

5. ________________reflects company’s efforts to achieve response from EDI and

bar codes.(Efficient Consumer Response(ECR) )

6. The rate at which inventory goes through the supply chain is

____________(Inventory velocity)

7. In ____________we establish the timing of the use of equipment, facilities and

human activities in an organization.( Scheduling)

8. Scheduling for high-volume flow system is referred to as _______________.

(Flow-shop Scheduling)

9. ____________ is used as a visual aid for loading and scheduling.(Gantt chart)

10. Executive responsibilities, project selection, project manager selection, and

organizational structure are major administrative issues of _________________.

(Project Management)

QUIZ # 01MGT-613PRODUCTIONS & OPERATIONS MANAGEMENT

INSTRUCTIONS:

You are required to put answers in the following format. Solutions not following this format will be marked as ‘ZERO’.

1. B 11. C2. B 12. B

3. C 13. A

4. C 14. C

5. C 15. C

6. B 16. A

7. C 17. D

8. C 18. B

9. D 19. B

10. B 20. B

Question: Highlight the correct options.

1. ________ is a procedure for acquiring informed judgments and opinions from knowledgeable individuals to sue as subjective forecast.

a. Naïve forecasting methodb. Delphi method c. Associative method d. Judgmental forecasting

2. ______ is an oscillating movement in demand that occurs periodically in the

short run and is repetitive.

a. Trend b. Seasonal pattern c. Cyclic pattern d. Irregular pattern

3. ________ is an averaging method of forecasting which weights the most recent data more strongly than the distant data.

a. Linear regression b. Moving average c. Exponential smoothingd. Adjusted exponential smoothing

4. Which of the following demand pattern does not define any underlying time pattern of demand of product / service

a. Horizontal demand b. Systematic demand c. Random variation d. Repeatable pattern variation

5. Which of the following is forecasting method which relies on historical demand data and recognizes trends and seasonal patterns?

a. Judgmental methods b. Regression methods c. Time series methods d. Averaging methods

6. ______ are the characteristics of products and services that qualify it to be considered for purchase.

a. Order winner b. Order qualifier c. Order runner d. Order competitor

7. In automotive industry, high quality has become an order ____ and innovative design is order ________ .

a. Winner, Qualifier b. Winner, Runner c. Qualifier, Winner d. Qualifier, Runner

8. Which of the following includes the ability of organization to produce a wide variety of products, to introduce new products and modify existing ones quickly?

a. Organization’s standardization b. Organization’s agility c. Organization’s flexibility d. None of the above

9. In decision trees, Circular nodes represent which of the following?

a. Decision points b. Alternatives c. Consequences d. None of the above

10. In decision tree, ‘Branches’ should be read from:

a. Right to left b. Left to right c. Center to left d. Center to right

11. Which of the following is the Second step in forecasting process?

a. Identification of forecasting purpose b. Selecting a forecasting model c. Collecting historic data d. Identification of demand pattern

12. Which of the following is a schematic model of alternatives available to the decision maker along with possible consequences and alternatives?

a. Decision making model b. Decision tree c. Decision preference matrix d. None of the above

13. A textile company is contemplating the future of one of its plants. Following payoff table describes the situation:

Decision State of Nature

Good conditions Poor conditions

To expand Rs. 800,000 500,000

To maintain status quo 1,300,000 -150,000To sell now 320,000 320,000

Under Minimax-regret criteria, what would be the decision makers decision would be?.

a. To expand b. To maintain status quoc. To sell plant d. Decision would be made using some other criterion

14. Mr. A determined that his service employees have used a total of 2400 hours of labor this week to process 560 insurance forms. Last week the same crew

used only 2000 hours of labor to process 480 forms. Which productivity measure should be used?

a. Total productivity measure b. Partial productivity measure c. Both a and b d. None of the above

15. An operations and supply strategy is concerned with which of the following?

a. Setting specific policies and plans b. Short term competitive strategies c. Coordination of operational goals d. All of the above

16. A travel agency processed 240 customers on Day 1 with a staff of 12, and 360 customers the on Day 2 with a staff of 15. What can be said about the productivity shift from Day 1 to Day 2?

a. An increase in productivity from Day 1 to Day 2b. A decrease in productivity from Day 1 to Day 2c. The same productivity from Day 1 to Day 2d. Can not be computed from data above

17. Which of the following behaviors is exhibited by a time series having an up-and-down movement in a variable that repeats itself over a long period of time?

a. Random variationb. Trendc. Seasonalityd. Cycle

18. Which one of the following reasons account for using moving average in forecasting?

a. It eliminates the trendb. It smoothes the random fluctuationsc. It counteracts the seasonal variationsd. It approximates the period average

19. Which of the following statements corresponds to an order-winning characteristic?

a. A factor which may be significant in other parts of the organizationb. A factor which gives an organization a competitive edgec. A factor which serves as a minimum standard for purchased. A factor which increases the profitability of the organization

20. Which of the following is a characteristic of linear regression?

a. It is superior to a moving averageb. It is a causal forecasting modelc. It compensates for both trend and seasonal variations in demandd. It is superior to a exponential smoothing

BEST OF LUCK!

1. d 11. a2. a 12. c3. c 13. b4. b 14. d5. b 15. b6. b 16. a7. a 17. d8. c 18. b9. b 19. a10. d 20. c

1. Which one of the following is the overall objective of product and service design? a) Customer satisfaction and variety b) Reliability and variety c) Quality and reliability d) Customer satisfaction and profitability

2. Which one of the following statements is true about OSHA? a) To safeguard against potential hazards b) To develop cost effective processes c) To implement legal standards d) To carry out implication of manufacturability and fitness

3. Which one of the following is the most significant disadvantage of standardization? a) Frozen designs b) Interchangeable parts c) Reduced variety d) Customized parts

4. Which one of the following is the final stage of product life cycle? a) Growth b) Decline c) Maturity d) Planning

5. _______________ is the bringing together of engineering design and manufacturing personnel early in the design phase.

a) Reverse engineering b) Concurrent engineering c) Manufacturability d) Serviceability

6. Robustness of a product is _____________ related with the probability of failure. a) Directly b) Inversely c) Linearly d) Positively

7. Which one of the following mathematical expressions can be used to compute availability?

a) (MTBF)/ (MTBF+MTR) b) (MTBF)/ (MTBF‐MTR) c) (MTR)/ (MTBF+MTR) d) (MTR)/ (MTBF‐MTR)

8. A product ‘A’ is specified to work well up to 30 degree Celsius temperature and 30% humidity. What would these specifications represent?

a) Reliability factor b) Standard conditions c) Normal operating conditions d) Standard operating procedure

9. Which one of the following is a curve showing failure rate over time? a) Cost curve b) Bath tub curve c) Fish bone diagram d) Reliability curve

10. The frequency of capacity choice decisions is influenced by all of the following factors EXCEPT:

a) Stability of demand b) Technological changes c) Competitive forces d) Cost factor

11. Which one of the following refers to the maximum output that a firm can produce under ideal conditions?

a) Design capacity b) Effective capacity c) Capacity planning d) Utilization rate

12. The process selection should take into account all of the following EXCEPT: a) Capacity planning b) Design of work systems c) Production forecasts d) Selection of technology

13. The type of processing structure that is used for producing discrete products at higher volume is:

a) Continuous Flow b) Assembly Line c) Batch d) Job Shop

14. The type of processing structure that is used to produce gasoline, chemicals, and steel is known as.

a) Job Shop b) Batch c) Assembly Line d) Continuous Flow

15. In which of the following layouts, work stations are arranged according to the general function they perform without regard to any particular product?

a) Product b) Process c) Fixed‐position d) Storage

16. Which one of the following is the correct order of layout types from low volume/high variety to high volume/low variety?

a) Fixed position, process, cell, product b) Fixed position, cell, process, product c) Fixed position, process, product, cell d) Process, fixed position, cell, product

17. Which one of the following statements is NOT correct about cycle time? a) It represents daily operating time divided by desired production b) It is the maximum allowable time at each work station c) It determines the time often items take to roll off in assembly line d) It is the time required to complete a product from start to finish

18. What would be the required cycle time for a process that operates 9 hours daily with a desired output of 300 units per day?

a) 0.03 minutes b) 1.8 minutes c) 2700 minutes d) 33.33 minutes

19. What would be the output capacity if an assembly line operates for 7 hours per day with a cycle time of 2.0 minutes?

a) 210 units per day b) 3.5 units per day c) 0.004 units per day d) 14 units per day

20. Which one of the following is TRUE about work sampling? a) It describes individual human motions that are used in a job task b) It involves determining the length of time it will take to undertake a particular

task c) It involves determining the amount of time a worker spends on various

activities d) It providing standard times for micro motions such as reach, move and

release

1. All of the following are the major factors affecting design strategy except: Cost Market Time-to-market Revenue

2. All of the following are the primary reasons for design process except: Economic Social and demographic Political, liability, or legal Personal

3. ______ refers to a manufacturer being liable for an injury or damage caused by a faulty product. Product liability Manufacturer’s liability Organizational liability All of the given options

4. _________ is the postponement tactic. Product differentiation Delayed differentiation Service differentiation All of the given options

5. The situation in which a product, part or system does not perform as intended is referred to as: Reliability Durability Failure Maturity

6. DFA stands for: Design for Assurance Design for Accuracy Design for Authenticity Design for Assembly

7. Taguchi approach helps in determining: Controllable factors only Un -controllable factors only

Both controllable factors and un -controllable factors None of the given options

8. ________ is the bringing together of engineering, design and manufacturing personnel together early in the design phase. Robust design Concurrent engineering Canabalization Design for Manufacturing (DFM)

9. Reliability can be measured effectively by using: Probability Durability Failure Forecasting

10. _____________ determines the best possible outcome. Maximum Minimax Maximax Laplace

11. Decision tree is analyzed from: Left to right Right to left Any side All of the above

12. Judgmental forecasts include all of the following except: Executive opinion

Consumer surveys Delphi method Regression analysis

13. In order to design a new product or service, an organization takes into account: External factors Internal factors a & b Economic, social and demographic conditions

14. FDA, OSHA and CRS resolve: Legal issues Political issues Ethical issues Environmental issues

15. Design that results in products or services that can function over a broad range of conditions is called:

Computer Aided Design Robust design Design for remanufacturing Modular design

16. Which of the following is wrong with respect to Naïve forecast? Quick and easy to prepare

Provides high accuracy Simple to use Can be a standard for accuracy

17. Steps in CPFR include all of the following except: Creation of a front end partnership agreement Sharing forecast Inventory replenishment Development of supply forecasts

18. Identify the right sequence in product or service life cycle. Introduction, Maturity, Growth, Decline, Saturation Introduction, Growth, Maturity, Saturation, Decline Introduction, Growth, Saturation, Maturity, Decline Introduction, Saturation, Growth, Maturity, Decline

19. In the absence of enough time, ________ forecasts are preferred. Qualitative Quantitative Naïve forecasts None of the given options

20. ___________ are based on samples taken from potential customers. Executive opinion Consumer surveys Delphi method

All of the given options

1. The goal of Total Quality Management is:a) Customer satisfactionb) Product differentiationc) Brand equityd) Acting globally

2. The most common form of quality control includes:a) Planningb) Organizingc) Inspectiond) Directing

3. Process selection is primarily considered during:a) Planningb) Organizingc) Leadingd) Controlling

4. The type of operation being carried out by an organization depends upon:a) Degree of standardizationb) Volume of outputc) Demandd) Both (a) and (b)

5. Repetitive processing results in output that is:a) Highly standardizedb) Highly customizedc) Partially customizedd) None of the given options

6. Job shop and batch processing are differentiated on the basis of:a) Job requirementsb) Degree of standardization

c) Volume of outputd) Both (b) and (c)

7. Automation is preferred because it:a) Offers lesser dependence on workersb) Results in reduction in variable costc) Offers easy handling of repetitive workd) All of the given options

8. Product layout is preferably used for:a) Repetitive processingb) Intermittent processingc) Both (a) and (b)d) Neither (a) nor (b)

9. Process layout is used for:a) Repetitive processingb) Intermittent processingc) Both (a) and (b)d) Neither (a) nor (b)

10. The most significant advantage of U-shaped layout is:a) Cost minimizationb) Easy handling of processc) Increased flexibility in workd) All of the given options

11. The goal of motion study is to achieve:a) Cost minimizationb) Maximum efficiencyc) Profitabilityd) All of the given options

12. Location decisions are viewed primarily as part of:a) Marketing strategyb) Growth factorsc) Financial aspectd) Both (a) and (b)

13. Regional factors for location planning include all of the following except:a) Raw materialsb) Marketsc) Labor considerationsd) Attitudes

14. Transportation method is a __________ approach.a) Quantitativeb) Qualitativec) Scientificd) All of the given options

15. Fredrick Taylor’s concern for quality includes:a) Product inspectionb) Gauging systemc) Statistical control chartd) Both (a) and (b)

16. Kaoru Ishikawa is famous for:a) Statistical quality controlb) Fish bone diagram

c) Loss function conceptd) All of the given options

17. Poor quality adversely affects:a) Costsb) Productivityc) Profitabilityd) All of the given options

18._________ is intended to assess a company’s performance In terms of environmental performance:

a) ISO 14000b) ISO 9000c) Six sigmad) All of the given options

19. The purpose of ISO 9000 is to:a) Promote quality standards to improve efficiency and productivityb) Earn high profitc) Avoid unfavorable outcomesd) Gain high market share

20. A product performing consistently refers to which of the following dimensions of quality:

a) Safetyb) Conformancec) Durabilityd) Reliability