Quiz 1 

1. The primary way that Lean manufacturing accomplishes quick setups and small lot sizes is to focus on reducing setup costs. Which type of setup time occurs while the process is running (does not limit production)?

   1. internal

   2. external

   3. variable

2. When one differentiates between the necessary and the unnecessary, which step of the 5S is being practiced?

• sort

• set In order

• shine

• standardize

• sustain

3. In a competitive marketplace, the last design to the marketplace tends to fall in which stage of the product life cycle?

• growth

• introduction

• maturity

4. XYZ Manufacturing is attempting to find its break even point. The company's estimated fixed cost before the first unit is produced is $100,000. The anticipated selling price is $3/unit while the company estimates that the variable costs per unit will be $2.50. What is the breakeven point?

• 200,000 units

• 100,000 units

• 50,000 units

5. Sam's Steakhouse is interested in finding a productivity measure for his business. The average revenue from a meal is $15. Labor costs for cooking and serving the meal is $2/meal, the material costs are $4/meal and overhead is estimated to be $3/meal. What is the labor productivity calculation for the restaurant?

• $2.5

• $7.50

• $3.00

• $3.75

6. In order to find a breakeven point, the "contribution margin" is typically calculated. The "contribution margin" is used to cover the fixed costs that must be invested prior to starting production (and to accumulate profit after fixed costs are covered). The contribution margin is

• variable - selling

• selling - variable

7. The transformation process of changing inputs (human resources, facilities, technology, materials) into outputs (goods and services) centers on

• adding value to the customer without making profit

• adding value to the customer while also making a profit

• using inputs to make outputs

8. There are many benefits that justify the move from traditional systems to a Lean system. Which of the following is NOT a typical benefit of implementing Lean?

• smaller inventory

• longer lead times

• improved quality

9. A forecast error that measures the direction of the error (Bias) would be?

• error of magnitude

• error of direction

10. Which of the following is NOT one of the five principles of lean manufacturing?

• accurately specify value for the company

• strive for perfection

• identify the value stream

11. Successful lean implementation typically results in many bottom line benefits. Enhancing capacity without expanding or purchasing facilities is a critical operations management issue. What is the typical capacity improvement achieved through first year lean implementation?

• 99

• 10

• 50

12. XYZ Manufacturing is attempting to find its break even point. The company's estimated fixed cost before the first unit is produced is $100,000. The anticipated selling price is $3/unit while the company estimates that the variable costs per unit will be $2.50. At the present time, the marketing department is estimating that total sales will be 300,000 units. What would be the expected profit level if that estimate is correct?

• 150000

• 200000

• 50000

13. forcast accuracy is higher for?

• longer time horizons

• online weather vs tv weather

• someone with less experience

• shorter time horisons

Operating "efficiency" means

If you were producing a product whose demand was very high with no customization at all, which of the following process types would be the most suitable choice?

• line

• batch

• project

• continuous

Operations management is the business function that plans, coordinates, and controls the resources needed to produce a company's

Question 6 options:

Step # 2 of the Product or Service design sequence is Selecting a Potential Product or Service (from among many that have been suggested by different product/service development teams. Marketing, Operations and Finance all need to be involved in this stage. Each of the three functions of the business has questions that should be asked and answered. The question "Do we have or can we acquire the required labor skills & raw materials needed?" would be a question typical of which functional area?

Question 7 options:

The primary way that Lean manufacturing accomplishes quick setups and small lot sizes is to focus on reducing setup costs. Which type of setup time occurs while the process is running (does not limit production)?

Question 8 options:

Question 9 (1 point)

In order to find a breakeven point, the "contribution margin" is typically calculated. The "contribution margin" is used to cover the fixed costs that must be invested prior to starting production (and to accumulate profit after fixed costs are covered). The contribution margin is

Question 9 options:

Question 10 (1 point)

In a competitive marketplace, the last design to the marketplace tends to fall in which stage of the product life cycle?

Question 10 options: