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

Transcription

1 1 Historically in most manufacturing organizations, operations was viewed as an internal function that is buffered from the external environment. ) True ) False 2 Recently, there has been a decline in the interest in operations management. ) True ) False 3 The strategic issues of OM are broad in nature including how much capacity should be acquired. ) True ) False 4 Warehousing OM transformations are referred to as exchange transformations. ) True ) False 5 Who developed the use of standardization in large-scale mass production using a moving assembly line? ) Frederick Winslow Taylor ) Frank Gilbreth ) dam Smith ) harles abbage E) Henry Ford

2 6 Which of the following is NOT associated with the work of Taylor? ) one-best way of doing things. ) The hierarchal needs of labor. ) The scientific method. ) lear distinctions between the responsibilities of labor and management. 7 Match the transformations: 1. exchange. manufacturing 2. physical. making a sick person well 3. physiological. retailing 4. storage. warehousing ) 1, 2, 3, 4 ) 1, 2, 3, 4 ) 1, 2, 3, 4 ) 1, 2, 3, 4 E) 1, 2, 3, 4 8 Which of the following is NOT an OM tactical issue? ) How many workers do we need? ) Where do we locate the facility or facilities? ) When should we have material delivered? ) Should we work overtime or put on a second shift? 9 Which of the following is NOT an example of the shift of power from producers to consumers?

3 ) increasingly higher quality products ) a focus on shorter delivery times ) less emphasis on reducing labor and material costs ) better utilization of facilities 10 Higher productivity derived from efficient operations leads to ) more expensive goods and services ) lower quality goods and services ) higher discretionary incomes for consumers ) increased dependence on expensive labor 11 Which of the following is consistent with contemporary operations management? ) limitation of expensive aluminum recycling efforts ) raw waste disposal into waterways in acceptable quantities ) restricting air pollutant production to areas where pollution is normal ) replanting of forest land to reduce erosion 12 Which of the following best describes the concept of the value chain? ) adding financial value to an organization through the acquisition of other firms ) the step-wise increases in product prices as raw materials are turned into goods/services ) the steps in manufacturing that add value to finished products ) all steps in the transformation process that add value even if they don't come from manufacturing nswer of MQ

4 1-a 2-b 3-a 4-d 5-e 6-b 7-e 8-b 9-c 10-b 11-d 12-d 1 The concept of firm specific knowledge refers to: Knowledge associated with a particular technology within the firm The combined knowledge bases of those firms that have contributed to the development of a technology None of the above The unique knowledge base within a firm 2 Technology trajectories refer to the: The technology capability of the firm and how its past influences its future The technology capability of the firm and the role of external technology knowledge Long term development of technology and the impact of R& on its direction Long term direction of technology and how some firms influence its direction 3 ore competencies are said to represent: Skills and knowledge that represent a firm's intellectual property Those activities that are unique to the firm Those activities that lie at the heart of a firm's long-term success ll of the above 4 Technology S-curves illustrate, what? The progress of technology over time The relationship between technology and knowledge

5 The development of competing technologies in a market How firms compete with other in terms of technology 5 The theory that sees the management of an organisation's knowledge and the internal process of change together with an understanding of the changes in the external environment is known as: ynamic systems theory of the firm The theory of the firm ynamic competence-based theory of the firm The evolutionary theory of the firm 6 n organisation's ability to evaluate and utilise external knowledge is related to its: E Prior R& investment Quality management techniques None of the above urrent R& investment Internal quality procedures and systems 7 Until the 1990s many firms viewed R& as a factor aimed at, what? ontributing to the firm's knowledge base Helping the organisation to learn eveloping the firm's organisational heritage reating a new product 8 The concept of organisational knowledge is based on the notion of: Knowledge that is distinctive to the firm

6 None of the above Shared knowledge embedded in relationships ll of the above 9 It was who put forward the notion of 'architecture' as a source of distinctive capability. Fill in the blank. Michael Tushman Michael Porter John Kay Keith Pavitt 10 The success of the "imitative" innovation strategy is dependent on achieving what? Economies of scale high market share gility in manufacturing ll of the above nswer of MQ 1-d 2-a 3-d 4-a 5-c 6-a 7-d 8-d 9-c 10-d 1 Which one of these is not a determinant of effective capacity, or are they all determinants? ) Facilities ) Quality capabilities ) Job esign

7 ) ll are factors 2 Which one of these does not enhance developing capacity alternatives? ) esigning flexibility into the system. ) Taking a "big picture" approach. ) Staying focused on quantitative factors. ) Smoothing capacity requirements. 3 Which one of these is the primary input in capacity planning? ) Overall cost estimates. ) Supply chain capabilities. ) ompetitors' strengths. ) emand forecasts. 4 Which one of these is not always an important factor in planning service capacity? ) The inability to store services. ) The need to be near customers. ) emand forecasts. ) emand volatility. 5 Which one of these is not a reason for diseconomies of scale? ) Fixed costs are spread over more units. ) istribution costs increase. ) omplexity increases costs. ) Inflexibility may be an issue.

8 6 The first steps of capacity planning and control do not include: Identifying the alternative capacity plans? hoosing the most appropriate capacity plan? Measuring aggregate demand and capacity? Studying the effect of queueing theory 7 Which of the following alternative methods of responding to demand fluctuations is not appropriate: Ignore the fluctuations and apply a level capacity plan? Increase marketing activity and develop a chase demand plan? ttempt to change demand to fit available capacity using demand management? djust capacity to reflect the fluctuations through a chase demand plan? 8 Yield management is not especially useful where: The service cannot be sold in advance apacity is relatively fixed The service/product can be stored The market can be fairly clearly segmented 9 Which of the following is not a measure of utilisation? Number of hours available for production Uptime in a factory Load factor for aircraft Room occupancy level in hotels

9 10 What is meant by yield management? Overbooking capacity to ensure that all capacity is filled at all times Expanding the operation at periods of high demand in order to yield more sales revenue The maximisation of profit through capacity, demand and pricing policies Encouraging growth in demand during periods of low demand and restraining it during periods of high demand nswer of MQ 1-d 2-c 3-d 4-b 5-a 6-d 7-b 8-c 9-a 10-c 1 Long-term capacity planning deals with which of the following factors? Inventories Investment in new facilities Workforce size Overtime budgets 2 Input measures of capacity are preferred when there is/are: Low customization. service processes. high-volume processes. flexible flow processes.

10 3 measure of the reserve capacity a process has to handle in unexpected increases in demand is the: capacity constraint limit. capacity cushion. capacity bottleneck. capacity utilization rate. 4 In general, a less capital-intensive industry such as a hotel chain would do well with a utilization rate of: 30-40% %. approximately 18%. 100%. 5 n expansionist capacity strategy is NOT indicated when: capacity expansion is consistently ahead of demand. Expansion will lead to economies of scale. Expansion is made in large increments. a preemptive marketing strategy is used. 6 hang and hang observe that the competition is increasing the size of its warehouses. They have decided to do the same. They are following a strategy. expansionist follow the leader wait-and-see

11 Theory of onstraints 7 Jorge Ortega has been using a 10 percent capacity cushion, servicing 60 customers an hour. There is a good deal of customer contact, and customer service has been poor due to random fluctuations in demand. If he increases his capacity cushion to 20%, what will be the new capacity requirement? When evaluating alternative capacity decisions, qualitative concerns exclude: technology change. competitive reaction. cash flow. uncertainties about demand. 9 Under ideal conditions, a picture frame manufacturing facility can produce 480 frames per day. Under normal conditions, the company schedules 135 frames per day. urrent market conditions and production strategy have combined to limit production to 120 frames per day. What is the approximate utilization rate for current capacity? 112% 25% 89% 75% 10 nna s landscaping business has a capacity gap; which alternative can best be described as simply to do nothing?

12 ase-case strategy Expansionist strategy Follow-the leader strategy Wait-and-see strategy nswer of MQ 1-b 2-d 3-b 4-b 5-b 6-b 7-a 8-c 9-c 10-a 1 One use of inventory is to decouple production and distribution processes to provide a hedge against inflation to enable an organization to take advantage of quantity discounts all of the above are uses of inventory 2 analysis divides an organization's on-hand inventory into three classes based upon unit price the number of units on hand annual demand annual dollar values 3 ycle counting provides a measure of inventory turnover

13 assumes that all inventory records must be verified with the same frequency is a process by which inventory records are periodically verified all of the above 4 The major advantage of cycle counting is accurate inventory dispensing with the annual physical inventory the audit activity that accompanies cycle counting analysis 5 The difference(s) between the basic EOQ model and the production order quantity model is (are) that the production order quantity model does not require the assumption of known, constant demand the EOQ model does not require the assumption of known, constant lead time the production order quantity model does not require the assumption of instantaneous delivery all of the above 6 Extra units that are held in inventory to reduce stockouts are called F reorder point safety stock just-in-time inventory all of the above 7 Inventory record accuracy can be improved by

14 cycle counting reorder points analysis all of the above 8 The two most important inventory-based questions answered by the typical inventory model are when to place an order and what is the cost of the order when to place an order and how many of an item to order how many of an item to order and what is the cost of this order how many of an item to order and with whom the order should be placed 9 The appropriate level of safety stock is typically determined by minimizing expected stockout cost choosing the level of safety stock that assures a given service level carrying sufficient safety stock so as to eliminate all stockouts all of the above 10 Which of the following is not a type of inventory? raw material work-in-process MRP finished goods

15 nswer of MQ 1-d 2-d 3-c 4-b 5-c 6-b 7-d 6-b 9-b 10-c 1 The list of quantities of components, ingredients, and materials required to produce a product is the bill-of-materials. master schedule. engineering change notice. purchase order. 2 allows a segment of the master schedule to be designated as "not to be rescheduled." Regenerative MRP Pegging System nervousness Time fence 3 lot-sizing technique that generates exactly what was required to meet the plan is lot-for-lot. part period balancing. economic order quantity. the Wagner-Whitin algorithm. 4 reaking up the order and running part of it ahead of schedule is known as

16 overlapping. lot splitting. pegging. operations splitting. 5 The difference between a gross material requirements plan (gross MRP) and a net material requirements plan (net MRP) is the gross MRP includes consideration of the inventory on hand, whereas the net MRP does not. the gross MRP may not be computerized, but the net MRP must be computerized. the net MRP includes consideration of the inventory on hand, whereas the gross MRP does not. the gross MRP doesn't take taxes into account, whereas the net MRP includes the tax considerations. 6 phantom bill-of-materials is a bill-of-materials developed for a subassembly that exists only temporarily. the purpose of grouping subassemblies when we wish to issue "kits" for later use. a final product for which production is to be discontinued. a module that is a major component of a final product. 7 Which of the following lot-sizing techniques is likely to prove the most complex to use? the Wagner-Whitin algorithm part period balancing (PP) lot-for-lot economic order quantity (EOQ)

17 8 When a bill-of-materials is used in order to assign an artificial parent to a bill-of-materials, it is usually called a modular bill-of-materials. pick list. planning bill-of-materials. phantom bill-of-materials. 9 The operations manager has several tools available to deal with MRP system nervousness. Those tools are buckets with back flush. pseudo bills and kits. time fences and pegging. net and gross requirements. 10 n MRP system that provides feedback to the capacity plan, master production schedule, and production plans is called system nervousness. closed-loop MRP. load report. lot-sizing. nswer of MQ 1-a 2-d 3-a 4-b 5-c 6-a 7-a 8-c 9-c 10-b

18 1 Over the years different approaches to job design have developed. Put these 4 approaches in chronological order. Scientific Management, ivision of Labour, Ergonomics, ehavioural pproach ivision of Labour, Scientific Management, ehavioural pproach, Ergonomics ivision of Labour, Scientific Management, Ergonomics, ehavioural pproach Ergonomics, Scientific Management, ehavioural pproach, ivision of Labour 2 Frederick Winslow Taylor is best known for the introduction of which approach to job design? Ergonomics Scientific Management ivision of Labour ehavioural pproach 3 In Work Measurement terms Standard Performance is defined as: The rate of output which average workers will achieve without over-exertion as an average over a working day The rate of output which qualified workers will achieve without over-exertion as an average over a working day provided they are motivated to apply themselves to their work The rate of output which qualified workers will achieve as an average over a working day provided they are motivated to apply themselves fully during the whole day The rate of output which trained workers will achieve as an average over a working day provided they are motivated to apply themselves to their work 4 Ergonomics is not concerned with which of the following aspects: Illumination levels Working temperatures Supervisory skills

19 Noise levels 5 In ehavioural pproaches to Job esign which approach adds greater tasks and greater control over the job? Job enrichment Job rotation Empowerment Job enlargement nswer of MQ 1-c 2-b 3-b 4-c 5-a 1 If EOQ = 360 units, order costs are $5 per order, and carrying costs are $.20 per unit, what is the usage in units?. 129,600 units. 2,592 units. 25,920 units. 18,720 units 2. osts of not carrying enough inventory include:. lost sales.. customer disappointment.. possible worker layoffs.. all of these. 3. Which of the following relationships hold true for safety stock?

20 . the greater the risk of running out of stock, the smaller the safety of stock.. the larger the opportunity cost of the funds invested in inventory, the larger the safety stock.. the greater the uncertainty associated with forecasted demand, the smaller the safety stock.. the higher the profit margin per unit, the higher the safety stock necessary. 4. Increasing the credit period from 30 to 60 days, in response to a similar action taken by all of our competitors, would likely result in:. an increase in the average collection period.. a decrease in bad debt losses.. an increase in sales.. higher profits. 5. The credit policy of Spurling Products is "1.5/10, net 35." t present 30% of the customers take the discount, 62% pay within the net period, and the rest pay within 45 days of invoice. What would receivables be if all customers took the cash discount?. Lower than the present level.. No change from the present level.. Higher than the present level.. Unable to determine without more information. 6. n increase in the firm's receivable turnover ratio means that:. it is collecting credit sales more quickly than before.. cash sales have decreased.. it has initiated more liberal credit terms.. inventories have increased. 7. Receiving a required inventory item at the exact time needed... JIT. FO. PERT

21 8 EOQ is the order quantity that over our planning horizon.. minimizes total ordering costs. minimizes total carrying costs. minimizes total inventory costs. the required safety stock nswer of MQ 1-b 2-d 3-d 4-a 5-a 6-a 7-b 8-c