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

sort
set In order
shine
standardize
sustain

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

growth
introduction
maturity

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

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

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

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

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

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

error of magnitude
error of direction

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

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?

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

forcast accuracy is higher for?

longer time horizons
online weather vs tv weather
someone with less experience
shorter time horisons

Operating "efficiency" means

getting the most output for the least input.
doing the right thing, that is, being on target with your plans, strategies, mission, etc.
the same thing as operating effectiveness.

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:

information and marketing plans.
products and services.
financial statements and products.
information and financial statements.

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:

Operations
Marketing
Finance

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:

Variable set-up time
External set-up time
Internal set-up time

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:

(Selling price – variable cost) – fixed cost
Variable cost – selling price
Selling price - variable cost

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:

maturity
growth
introduction