Pre Assessment - Operations Management - FINAL

Which definition used for quality evaluates how well a product performs its intended function?

Fitness for use

Support services

Value for price paid

Psychological criteria

Fitness for use

Which total quality management (TQM) process was developed to stress management's responsibility for quality?

Statistical quality control charts

Fitness quality for use

14 points for quality improvement

Product design quality

14 points for quality improvement

Which total quality management (TQM) process consists of 13 published standards and guidelines?

ISO 1400

ISO 9002

ISO 9001

ISO 9000

ISO 9000

A company manufactures shoes using a quality management system. The company needs to put a process in place to measure any defects. The company would like to measure the number of defects and observe the number of occurrences to isolate the particular defect.Which quality tool should the company use to focus on correcting this particular issue?

Scatter diagram

Control chart

Flowchart

Checklist

Checklist

Which quality control tool should be used to monitor the current status or end result of a process?

Checklist

Flowchart

Control chart

Scatter diagram

Control chart

Which group of keywords or phrases describes the critical role that marketing plays in the total quality management (TQM) process?

Baseline for managing quality process; investment in preventative costs; budgeting

Enhance competition; understand consumer preferences; maintain communication with operations

Review and recommend product changes; satisfy customer needs; open communication

Reward employees; motivate staff performance; manage operations planned changes

Enhance competition; understand consumer preferences; maintain communication with operations

What is the common theme in total quality management (TQM) across all functions in an organization?

To satisfy customer needs

To enhance management software

To reward people rather than teams

To ensure profit from product changes

To satisfy customer needs

Which concept of variation measures the central tendency of a set of data?

Mean

Range

Standard deviation

Variable

Mean

What do assignable causes of variation indicate?

A computer virus was found in the system.

Out-of-control signals were found in the process.

Human resources found an operator was at fault.

Equipment was found to be out of control.

Out-of-control signals were found in the process.

Which continuous improvement method does C pk measure?

The most common measurement process

How close one is to a target and how consistent one is with the average performance

What a process is capable of and how long it will take to conclude

Parts per million on the capability index

How close one is to a target and how consistent one is with the average performance

What are two important aspects of Six Sigma?

Choose 2 answers

Technical tools

People involvement

Job design

Facility location

Technical toolsPeople involvement

Which strategy is used by some emergency rooms to overcome customer frustrations about long waiting times?

Screen patients and schedule follow-up appointments for those who have the most serious injuries

Screen patients and fast-track those with minor ailments

Screen patients and send the last 25 to another facility

See each patient in the order in which they arrived

Screen patients and fast-track those with minor ailments

Which two factors affect a service location decision?Choose 2 answers

Closeness to manufacturing facilities

Proximity to customers

Warehouse storage

Quality-of-life issues

Proximity to customers

Quality-of-life issues

What is a key factor of a location analysis for a service company?

Relations with community

Best operation level

Effective capacity

Proximity to customers

Proximity to customers

What helps an organization identify and plan the actions necessary to meet current and future customer demands?

Production capacity

Software development

Capacity planning

Current economic conditions

Capacity planning

Which capacity planning measurement tells how much capacity a company is using?

Design capacity

Effective capacity

Capacity focus

Capacity utilization

Capacity utilization

Which two statements are true about effective capacity?

Choose 2 answers

An effective capacity is lower than design capacity.

An effective capacity is a permanent measure used to achieve design capacity.

An effective capacity is a temporary measure used to achieve design capacity.

An effective capacity maintains a minimum output rate under normal conditions.

An effective capacity is lower than design capacity.

An effective capacity is a permanent measure used to achieve design capacity.

When is capacity measurement at the best operating level?

At the minimum point of the cost curve

At maximum capacity

When the average unit cost is minimized

When the total cost is minimized

When the average unit cost is minimized

Which two capacity measurement concepts should a firm consider when conducting a location analysis?

Choose 2 answers

Throughput time

Proximity to sources of supply

Building employee relations

Site considerations

Proximity to sources of supply

Site considerations

What is a major factor in the decision to locate a business near its primary market territory?

Proximity to customers

Proximity to a community center

Proximity to parks

Proximity to labor

Proximity to customers

A manufacturing company decides to open a new distribution center location in order to minimize distribution costs to warehouses or stores.What tool should the manufacturing company use to determine where the new distribution center should be located?

By using the load-distance model

By using the transportation method

By using the center-of-gravity approach

By using the break-even analysis

By using the center-of-gravity approach

Which two types of operations include repetitive processes?

Choose 2 answers

Project process

Line process

Batch process

Continuous process

Line process

Continuous process

A comprehensive automobile collision shop offers body and engine repair as well as custom vehicle paint options. Which two operational processes would suit this shop?

Choose 2 answers

Project process

Line process

Batch process

Continuous process

Project process

Batch process

What is a bottleneck in a flowchart?

Two stages operating independently

The longest task in the process

The point where production is evened out

Multiple storage areas

The longest task in the process

Which formula would compute process velocity?

Time a resource is used/time a resource is available

Actual output/standard output

Throughput time/value-added time

Output/input

Throughput time/value-added time

Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark?

Time a resource is used/time a resource is available

Actual output/standard output

Throughput time/value-added time

Output/input

Actual output/standard output

In which organizational layout would one expect to see items arranged by type?

Hybrid

Fixed

Process

Product

Process

A construction company produces furnished pre-fabricated manufactured homes. The production manager has discovered the following challenges within one of the facilities:

• Production qualities are low and only a small number of homes are built efficiently.

• The facility space allows for low handling of materials

• There is limited space available for employees to operate.

Which hybrid layout should be used to address the company's needs?

Group technology

Process performance metrics

Manufacturing technology

Statistical reduction control

Group technology

Which instrument would use an allocation process for space requirements in an industry scenario?

Block plan

From-to matrix

Relationship chart (REL)

Rectilinear distance

Block plan

What would be an organization's next step after it has revised or implemented new operations?

Follow up to make sure the new operation resolves quality problems

Reverse the order of the operation to determine that all workers know how to complete the operation

Revise the order of the operation before putting it into service to ensure the order of the operation

Conduct a final analysis of the existing operation one more time

Follow up to make sure the new operation resolves quality problems

Why is it beneficial for an organization to designate employees to communicate alternative ways to complete a job in a methods analysis?

They may have suggestions for improving the operation.

They know how an operation has always been done with no need to change.

They are experts in their field.

They may resist training on new machines.

They may have suggestions for improving the operation.

Which factor determines how long it takes a qualified operator to perform a duty of the job requirements under the assumption that the operator is working at a sustainable pace with the proper tools for the process?

Performance time

Observed time

Normal time

Standard time

Standard time

Which design work system minimizes repetitiveness in tasks by assigning employees the role of planning and scheduling?

Job entitlement

Job enrichment

Job rotation

Job rating

Job enrichment

Which work system acknowledges the benefits of employee proficiency?

Employee longevity

Enhanced employee relations

Labor specialization

Lower operating cost

Labor specialization

Which term means to schedule a job that starts immediately, regardless of the due date?

Forward scheduling

Finite loading

Infinite loading

Backward scheduling

Forward scheduling

What is the third basic element in the just-in-time (JIT) system if the first element is total quality management (TQM) and the second is JIT manufacturing?

Simply organized inventory

Quality circles

Respect for people

Capacity utilization

Respect for people

How do just-in-time (JIT) and lean systems add value?

By improving lighting

By increasing simplicity

By reducing waste

By enhancing responsibility

By reducing waste

Which concept takes a total system approach to creating an efficient operation and combines concepts such as just-in-time (JIT), total quality management (TQM), and continuous improvement?

Lean systems

Customer relationship management (CRM)

Enterprise resource planning (ERP)

ISO 9001 standards

Lean systems

Why is kanban significant to the "pull" system?

It requires that all work items are sized the same.

It specifies the exact quantity of a product that needs to be produced.

It is a process that is only for support or maintenance.

It is a process that highlights the highest-performing organization.

It specifies the exact quantity of a product that needs to be produced.

What are two product system differences between the push and pull processes?Choose 2 answers

Push moves the product forward in anticipation for demand.

Push lowers cost due to overproduction.

Pull develops additional products.

Pull eliminates excessive inventory.

Push enhances employee relations.

Pull initiates quality control.

Push moves the product forward in anticipation for demand.

Pull eliminates excessive inventory.

Which function does marketing play in a just-in-time (JIT) organization?

JIT marketing focuses on producer-driven quality.

JIT marketing simplifies inventory flow.

JIT marketing focuses on customer-driven quality.

JIT marketing synchronizes product demand with assembly.

JIT marketing focuses on customer-driven quality.

How does a just-in-time (JIT) system influence all functional areas within a company?

Choose 2 answers

Companies are able to reduce waste.

Companies develop new ways to generate revenue.

Companies enhance workers' ability to perform.

Companies' workers demonstrate intrinsic values.

Companies can participate when it is convenient.

Companies are able to reduce waste.

Companies develop new ways to generate revenue.

What are two ways management can assist employees' focus in a just-in-time (JIT) processing environment?

Choose 2 answers

Ensure that workers receive multifunctional training

Separate the cultures in the organization so there will be no conflicts

Require workers to use free time to do quality control charting

Develop an incentive system to reward workers for their efforts

Ensure that workers receive multifunctional training

Develop an incentive system to reward workers for their efforts

Which tier-level supplier directly supplies materials or services to a processing and packaging plant?

Tier one suppliers

Tier two suppliers

Tier three suppliers

Tier four suppliersTier five suppliers

Tier one suppliers

Which role do third-party logistics providers play in the supply chain?

Internal distributors

External distributors

Tier two distributors

Tier three distributors

External distributors

A company manufactures and distributes its own products.When should the company consider outsourcing its distribution?

When the company can no longer accurately forecast its transportation costs

When the company's distribution costs are the lowest in the industry

When the company determines that distribution is no longer a core function

When new federal regulations give the company a competitive advantage

When the company determines that distribution is no longer a core function

What is the measure of how much supply chain is owned or operated by the manufacturer?

Vertical integration

Horizontal integration

Insource integration

Outsource integration

Vertical integration

Which two areas should managers consider in order to adapt to the business dynamics affecting their company?

Choose 2 answers

Their control over internal operations

Their influence and leverage over supplies

Their influence over future legislation and regulations

Their advertising costs

Their control over internal operations

Their influence and leverage over supplies

What are two strategic objectives for every member of the supply chain?

Choose 2 answers

Increasing cost effectiveness

Becoming more efficient

Increasing end-customer demand

Finding the best distribution location

Reducing production and delivery times

Increasing cost effectiveness

Becoming more efficient

How does the status of overall customer satisfaction support supply chain objectives?

It measures space requirements.

It measures efficiency.

It measures compliance.

It measures capacity utilization.

It measures efficiency.

What is the name of the model that has been created to examine the four different supply chain perspectives of reliability, flexibility, expenses, and assets/utilization?

SCOR (Supply Chain Operations Reference)

RFEAU (Reliability Flexibility Expenses and Asset Utilization)

SCAM (Supply Chain Accreditation Model)

SCM (Supply Chain Metrics)

SCOR (Supply Chain Operations Reference)

The annual cost of goods sold for a company is $8,400,000 and the average inventory is $1,200,000.What is the number of weeks of supply?

5

6

7

8

9

7

A manufacturing firm uses warehouses and shippers in their supply chain.At which stage of the firm's inventory management system would the statement "percentage of line items shipped on schedule" be used?

Work-in-progress

Raw materials

Finished goods

Sold goods

Finished goods

How does inventory management differ for manufacturing organizations compared to service organizations?

Service organizations must maintain work in progress types of inventory.

Manufacturing organizations must maintain tangible inventory.

Manufacturing organizations must keep large amounts of product on hand at all times, regardless of demand.

Service organizations are concerned with managing idle time due to material and component shortages.

Manufacturing organizations must maintain tangible inventory.

What is one advantage of a periodic review system?

All items are reviewed during the same time interval.

Items are handled individually.

Less inventory is needed to protect against stockouts.

Inventory balances are updated after every transaction.

All items are reviewed during the same time interval.

A company's monthly widgets demand has been consistent for the past few years but now a variable shift in demand is forecasted. The demands are predicted to be:

• January 20,000 units

• February 17,000 units

• March 19,000 units

• April 21,000 units

• May 22,000 units

• June 24,000 units

Beginning inventory of 10,000 units should be maintained. What is the average monthly net widget production demand for the company?

20,000

20,500

21,667

22,167

20,500

A company suddenly finds demand has increased to 140% of its previous capacity. It has been able to hire only a fraction of the employees previously laid off, and a warehouse fire destroyed 80% of its inventory. Which two options does the company have to rapidly meet the new demand?

Choose 2 answers

Hire temporary workers

Build new production facilities

Subcontract a portion of production capacity

Hire and train new full-time employees

Hire temporary workers

Subcontract a portion of production capacity

What are two reasons a company might be hesitant to provide overtime as a capacity-based option?

Choose 2 answers

Overtime results in a buildup of excess inventory.

Overtime is not a long-term solution.

Overtime is typically a 50% wage premium.

Overtime decreases the labor cost per unit.

Overtime is not a long-term solution.

Overtime is typically a 50% wage premium.

Why might a company avoid using demand-based options such as inventory and backorders over a long period of time?

It is more risky.

It is time consuming.

It negatively affects subcontracting.

It negatively affects hiring and firing.

It is more risky.

Which element is part of a financial plan?

Budget projections

SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis

Product pricing

Compensation planning

Budget projections

Why is the marketing plan essential to the creation of the aggregate plan?

The actual market demand in the marketing plan is required to make adjustments to other plans.

Accurate cash flow objectives in the marketing plan are needed to achieve profitability levels.

The marketing plan provides insight into operations goals and activities for the year.

Research and development in the marketing plan drives new products.

The marketing plan provides insight into operations goals and activities for the year.

What is meant by "duration of the change"?

The length of time one expects to need the different level of capacity

The size of the change needed

The percentage of normal operating capacity

The fiscal impact of the change on the strategic plan

The length of time one expects to need the different level of capacity

Which type of aggregate plan is preferable when a company produces custom or special purpose equipment, one-of-a-kind items, or highly perishable products?

A level aggregate plan

A chase aggregate plan

A hybrid aggregate plan

A modified sales and operations plan

A chase aggregate plan

What are two common drawbacks of implementing an enterprise resource planning (ERP) solution?

Choose 2 answers

It takes a long time to implement and to see any benefits.

It requires extensive, often complex, training.

The cost savings and/or payback is impossible to measure in terms of bottom line.

It must always be customized and too much customization may slow down projects.

It takes a long time to implement and to see any benefits.

It requires extensive, often complex, training.

What is the primary purpose in using the master production schedule (MPS) in the marketing department of an organization?

To manage the demand for promised deliveries

To create demand for promised deliveries

To identify new product demand

To control the production department

To manage the demand for promised deliveries

A company is experiencing an unusual amount of deliveries that are either late or an incorrect quantity.Which type of system is used to identify and manage this type of problem?

ERP (enterprise resource planning)

CRP (capacity requirements planning)

FMS (flexible manufacturing system)

MRP (material requirements planning)

MRP (material requirements planning)

Which statement is true about capacity requirements planning (CRP)?

Production capacity is created for future production items.

Human capital adequacy is analyzed for given work centers and production items.

Each product item is individually addressed regardless of relevant holistic processes.

Available capacity is compared to calculated workloads of relevant items.

Available capacity is compared to calculated workloads of relevant items.

Why is capacity requirements planning (CRP) important?

It provides the ability to compare available production capabilities to the planned workload.

It enables an assessment of employee production efficiency.

It creates a transparent view of lead time and overtime usage in work centers.

It coordinates availability of materials for production processes.

It provides the ability to compare available production capabilities to the planned workload.

Which project life cycle phase includes identifying the need for a project?

Planning

Conception

Feasibility analysis

Execution

Conception

A company decides and makes plans to enter into a new market.Which project life cycle phase does this strategy directly relate to?

Feasibility analysis

Planning

Conception

Execution

Conception