ID Class MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Transcription

1 Exam: Operations Management Name Total Scors: ID Class MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The EOQ formula has been criticised in a number of areas. Which of the following is not an area of common criticism? A) The real costs of stock in operations. B) The assumptions included in the models. C) The use of the models as prescriptive devices. D) Small errors in estimating will result in a significant deviation. 1) 2) Structured interviews are considered to be the most effective means of generating ideas. 2) 3) In this question you need to match the competitive factor that customers value with the performance objective that the operation needs to excel at. If the customers value a wide range of products and services then the operation will need to excel at: A) Cost B) Flexibility (mix) C) Flexibility (products/service) D) Flexibility (volume and/or delivery) E) Dependability F) Speed G) Quality 3) 4) Buffer inventory is required as: A) Material cannot be transported instantaneously between the point of supply and the point of demand B) One or more stages in the operation cannot supply all the items it produces simultaneously C) Compensation for the uncertainties inherent in supply and demand D) Compensation for differences in the timing of supply and demand 4) 5) The approach to loading which does not limit accepting work, but instead tries to cope with it, is called: A) Determined loading B) Classic loading C) Infinite loading D) Finite loading 5) 6) Which is the correct order for process types starting with low volume/high variety and moving to high volume/low variety? A) Project processes, jobbing processes, batch processes, mass processes, continuous processes B) Project processes, batch processes, mass processes, jobbing processes, continuous processes C) Jobbing processes, batch processes, mass processes, continuous processes, project processes D) Batch processes, project processes, jobbing processes, mass processes, continuous processes 6) 1

2 7) Which of the following costs will NOT decrease as order size is increased? A) Stock-out costs B) Working capital costs C) Price discount costs D) Cost of placing the order 7) 8) Which of the following is NOT an implication of high visibility? A) Time lag between production and consumption. B) High unit cost. C) Satisfaction governed by customer perception. D) Customer contact skills needed. 8) 9) An advantage of a capacity-lagging strategy is that: A) There is always sufficient capacity to meet demand B) There is no ability to exploit short-term increases in demand C) Utilisation of the plants is always relatively low D) Over-capacity problems are minimised if forecasts are optimistic 9) 10) The cost of being prevented from seeing the full extent of the problems within an operation is known as: A) Cost of placing an order B) Obsolescence costs C) Price discount costs D) Working capital costs E) Storage costs F) Stock out costs G) Production inefficiency costs 10) 11) Characteristics of line or continuous process types usually include: A) The ability to handle high variety B) High capacity C) Short process times D) Dedicated processes E) The ability to handle high volumes 11) 12) Specifying the component products and services in the package is normally part of: A) Screening B) Preliminary design C) Prototyping and final design D) Evaluation and improvement E) Concept generation 12) 13) Which of the following is an indirect benefit of improved quality? A) Reduced cost of inspection B) Improved image C) Reduced scrap D) Reduced inventory 13) 14) Enterprise Resource Planning (ERP) is one of the most significant developments of the basic MRP philosophy. Determine whether this statement is a feature of ERP: It is often linked to external extranet systems. A) Feature of ERP B) Not a feature of ERP 14) 2

3 15) Which of the following is true of continuous improvement? A) Results for profit evaluation B) Individualism C) Concentrated risks D) Effort orientation focused on people 15) 16) In periods of high demand, an operation might buy capacity from other organisations. This is called: A) Third party logistics B) Subcontracting C) Value creation D) Annualised hours 16) 17) Match the performance objectives with one of the influences of good process design: Can ensure high utilisation of resources. A) Quality B) Flexibility C) Speed D) Cost E) Dependability 17) 18) What is operations management? A) The process of satisfying the needs of internal and external customers. B) An organisational function which produces products and services. C) What all managers do when they deal with day-to-day activities. D) The activity of producing products and services. 18) 19) Most operations use one layout type throughout. 19) 20) Which of the following is least likely to be an issue for employee stakeholders? A) Economic value from investment B) Fair pay C) Good working conditions D) All of the above 20) 21) Considering if an operation has the skills to cope with a design option, relates to what evaluation criteria? A) Acceptability B) Vulnerability C) Feasibility D) Risk 21) 22) Which of the following is usually considered a characteristic of a line or product layout? A) Transforming resources are costly to maintain. B) This layout tends to be very flexible. C) This layout can easily handle high variety but low volume. D) Transforming resources move to the work. E) This layout can easily handle high volume but low variety. 22) 23) Average batch size is a measure of: A) Quality B) Speed C) Dependability D) Flexibility E) Cost 23) 3

4 24) Just-in-time principles, which once were a radical departure from traditional operations practice, have now themselves become orthodox. 24) 25) Operations typically differ in terms of volume of output, variety of output, variation in demand or the degree of ʹvisibilityʹ (i.e. customer contact) that they give to customers of the production process. Please match the following element with the most appropriate of the above dimensions. Low unit costs are most closely matched to: A) Visibility B) Variety C) Variation D) Volume 25) 26) Community factors are those influences on an operationʹs cost that derive from the social, political and economic environment of its site. 26) 27) Match the following statement to the layout type: Allows for many process routes of batches of products. A) Line layout B) Fixed-position layout C) Cell layout D) Functional layout 27) 28) What is the evaluation criteria for the following evaluation question: How much will we have to reorganise our activities to produce it? A) Acceptability B) Feasibility C) Vulnerability 28) 29) In operations, inventory or stock is defined as the stored accumulation of material resources in a transformation system. 29) 30) The people and groups of people who have an interest in the operation and who may be influenced by, or influence, the operationʹs activities, are called: A) Stakeholders B) Operation owners C) Key accounts D) Pressure groups 30) 31) The location decision is determined by the relative strength of supply-side and demand-side factors. Are Convenience for customers supply-side or demand-side. A) Supply-side factor B) Demand-side factor 31) 32) One of the basic design criteria would not include: A) Vulnerability B) Acceptability C) Feasibility D) Variability E) Improved performance 32) 33) Cleaning materials would be a far more important item of inventory for an industrial cleaning company compared with a television plant. 33) 4

5 34) Materials management is a broader term than supply chain management. 34) 35) The strategy of expanding on the demand side of the network is sometimes called backward integration. 35) 36) Is the following design activity more suited to low volume/high variety or high volume/low variety: ʹTaskʹ staff skills. A) Low volume/high variety B) High volume/low variety 36) 37) The planning horizon tends to be short in a low-volume, high-variety operation. 37) 38) Match the following statement to the layout type: Plant and staff move to the work. A) Line layout B) Functional layout C) Cell layout D) Fixed-position layout 38) 39) Transferring a design idea into a concept does not include: A) Purpose B) Benefits C) Function D) Form E) Prototype 39) 40) What is the perspective on strategy that stresses the importance of capabilities in determining sustainable competitive advantage? A) Disconfirmation Theory B) System Theory C) Resource Based View D) Agency Theory 40) 41) Which of the following is seen as an internal benefit of emphasis on the speed objective? A) The increase in product flexibility B) The increase in quality C) The reduction in inventory D) The reduction of complexity 41) 42) The most common method of scheduling is by use of a Gantt Chart. 42) 43) Which of the following is a criticism of the TQM approach? A) It is incompatible with more radical approaches such as business process re-engineering. B) It focuses too much on external failure costs. C) It results in the loss of jobs. D) It results in higher costs of internal failure. 43) 44) Capacity planning and control involves: A) Dealing with difficult suppliers B) Dealing with fluctuations in demand over 1-7 days, but not over any longer period C) Setting capacity levels over the short and medium term in aggregated terms D) Setting capacity levels in the long term 44) 45) One of the great advantages of EDI is that it usually means that greater quantities of goods can be ordered with more confidence that they will meet the needs of the operation. 45) 5

6 46) The traditional approach sees inventory as a ʹblanket of obscurityʹ that lies over the production system, preventing problems being noticed. 46) 47) A restaurant would usually have a variety of layouts as opposed to a single layout type. 47) 48) Which of the following is NOT a process input? A) Sales staff for a department store B) Aircraft for an airline C) Transported passengers for a train service D) Information for the police 48) 49) In a supply chain for products with low profit margins, it is important to ensure products move down the chain quickly rather than building up as inventory. 49) 50) What measure is an increasingly popular method of judging the effectiveness of operations equipment? A) Fishbone analysis B) Overall equipment effectiveness measure C) Operational effectiveness measure D) Total production method 50) 6

7 Answer Key Testname: UNTITLED3 1) D 2) B 3) B 4) C 5) C 6) A 7) B 8) A 9) D 10) G 11) A 12) B 13) B 14) A 15) D 16) B 17) D 18) D 19) B 20) A 21) C 22) E 23) D 24) A 25) D 26) A 27) D 28) A 29) A 30) A 31) B 32) D 33) A 34) B 35) B 36) A 37) A 38) D 39) E 40) C 41) C 42) A 43) A 44) C 45) B 46) B 47) A 48) C 7

8 Answer Key Testname: UNTITLED3 49) A 50) B 8