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BUS 316

Which of the following is not one of the processes included in operations management?
A supply chain is a global network of organizations and activities involved in:
Designing, transforming, consuming, and disposing of goods and services
Operations managers answer questions of what, how, when, where and who by defining both the _____ and ___ aspects of the operations management system
Structural and infrastructural
Structural operations management decisions include:
Capacity, facilities, and technology (structural decisions include capacity, facilities, technology and the supply chain network – the other decisions are infrastructural decisions
Joe Jones was asked to undertake a project to determine the resources and capacity his firm would need in the next three to ten years. These types of decisions are considered to be:
Structural aspects of operations management
Physical goods can be differentiated form services in the operations management process by:
Longer lead times and they can be inventoried
Which of the following functions would not have to think about “processes”?
All listed functions must think about “processes”.
Which of the following statements about operations management processes is NOT true?
Outputs of operations management processes are always tangible goods
Growth of the supply-chain management perspective in operations management results form the advent of:
All of the listed options
During the “mass production” era, operations management focused primarily on:
Internal production
While there is overlap between operations management and supply chain management, the two are different in that:
Operations management focuses on processes, supply chain management focuses on relationships and flows
Johnson Company makes widgets which it then sends to Smith Company. Smith Company puts the widgets in packages. Smith Company is considered by Johnson to be a:
Downstream product supplier
To an operations manager the “critical customer” is:
The person who has the greatest impact on design, sales and growth opportunities for the product.
Which functional activities are the most related to operations management attempts to manage the flow of materials and information in a firm?
Logistics, supply, and customer management
Jones Manufacturing sells a part to Lear Corporation. Lear puts this part into a radio which Lear them sells to Ford. From Ford’s point of view, Jones Manufacturing is a ___ supplier
Tier 2
Corporate strategic planning involves decisions related to:
What businesses should we be in?
Functional strategic planning involves decisions related to:
What metrics should be used to ensure progress in operations management?
A well-designed value proposition possesses four characteristics. Which of the following is NOT one of those characteristics
It offers the highest product quality in each quality dimension
Which of the following is the most appropriate definition of an “order winner”?
A product characteristic that causes customers to choose the product over that of a competitor
Which of the following is not true about “order qualifiers”?
All listed options are true about order qualifiers
Xanadu makes HD televisions. It claims that its HD televisions have the clearest picture clarity in the industry. Xanadu is emphasizing which dimension of quality?
Scantron Inc. claims that its competitors have to recall 10% of their products to fix defects while it only has to recall 5%. Scantron is emphasizing which dimension of quality?
Which of the following is considered a “process-related” competitive priority?
Xanadu Inc. claims that its manufacturing processes result in less green-house gasses than those of its primary competitors. This suggests that Xanadu has a focus on:
Which of the following is NOT considered a key characteristic of a core capability
It does not need to be extendable to many market opportunities
When operational capabilities are consistent with and supportive of the value proposition and the outcomes desired by critical customers best describes the concept of
A Vice President of Operations is interested in evaluating the ipact of reducing expenses in manufacturing on the firm’s Return on Assets. A measurement approach that he might consider for this is the:
Strategic Profit Model
You are an upper level manager in a firm and are concerned that corporate objectives are not effectively disseminated throughout the organization and that line level managers do not take them account in making their decisions. Which of the following would best help you to try to correct this problem?
The balances Scorecard
Which of the following is a measure common to both the Strategic Profit Model and the SCOR model?
Return on Assets
The performance measurement approach that would be most useful in measuring and describing supply chain processes would be:
SCOR Model
You, as a supply chain analyst, have been approached by the Vice President of Supply Chain Operations to come up with a recommendation for improving the throughput time for the manufacture of Widget A. You quickly realize that you need a process map before you proceed. What is the first step you should undertake to map the process?
Identify the desired outcomes of the process
After you have drawn the “current state” process map, you decide that you need a tool for showing the actual moves of material (and their locations) that take place int he manufacture of Widget A. Which of the following tools would be most appropriate?
A Physical Layout Diagram
You realize that you need a tool for recording all the move distances, process flow symbols, people involved, value add designations, and the time required for each step to get an overall grasp for where waste exists in the process. The best tool for this would be:
A process flow table
“Bounding” a process is necessary because”
Without bonding, it is difficult to determine the beginning and ending points for the analysis
The process of ‘stapling yourself to an order” refers to
Pretending you are the workpiece moving through a process.
The symbol –> indicates what type of activity in a process?
The upside down triangle symbol indicates what type of activity in a process?
An activity identified by a “?” is typically a:
None of these options are correct
You observe three different people doing the same task using three different approaches (with differing levels of quality, output, and lead time). Which of the following disposition options is most appropriate for this situation?
Which of the following is not a principle of process improvement?
Change process design to facilitate product improvements
A tool used to quickly communicate proposed process changes effectively is called a:
Work process flow chart
The principles of process improvement suggest that an effective, efficient process:
Minimizes the number of entry points of a workpiece into the processs
The principles of process improvement suggests that an ineffective, inefficient process:
Produce products in large batch sizes
Value stream mapping:
Is more comprehensive than typical process mapping
Joe’s Quick Oil Change shop is interested in improving its ability to satisfy customers. The most appropriate mapping tool for a company such as this is called:
Service blueprinting
Process thinking causes managers to address critical process elements including:
All of the options are correct
Which of the following is not a basic activity type in processes?
You walk into a hair stylist shop. All stylists are busy and you sit in the waiting are. You are in which of the following process activities?
Most processes involved two basic types of flows:
Information flows and physical flows
A manager is currently unhappy with the capabilities of a particular process and wants to improve its capabilities. To accomplish this, the manager needs to focus on the process:
Joe Jones, Plant Manager at Waco Industries, told a friend that if it was necessary his plant could produce 1.000 items a day if all conditions were just right. Joe is describing his plant’s”
Maximum Capacity
Adam Smith described his company’s process as follows. “Under ideal conditions we can produce 10,00 units a day. However, our normal production is 6,000 units a day. Today, we actually produced 8,000 units.”
Utilization was 133% of effective capacity
The sequence below shows four operations for a computer chip assembly process and the effective capacity of each. Which step is the bottleneck?
Step 1: 500 chips/hr
Step 2: 250 chips/hr
Step 3: 200 chips/hr
Step 4: 550 chips/hr
Step 3
A bottlebeck activity in a process is generally the activity with:
The least capacity
Little’s Law suggests that the key to increased throughput is
Shorter flow times
A short-term, highly focused effort for improving a process is known as a
Kaizen event
Suppose you learn that a process has a very long waiting time. Which of the following would decrease the waiting time?
Decrease utilization
One implication of increased utilization in a process is that:
Waiting time typically will go up
If a company is able to eliminate all sources of variance in a process:
None of the options are true
An example of a short-term capacity decision is:
Adding low-skilled labor
Which of the following statements about economies of scale is not true?
Economies of scale refers to the fact that as volume increases total cost of production decreases.
Which of the following process structures can produce the widest variety of products?
Job Shop
Which process type is not correctly matched with its descriptive characteristic?
Repetitive process – customized products
Zanda Corp. desires to have a process structure that has cost advantages similar to continuous or repetitive processes, but wants to produce greater variety that those processes normally allow. Zanda should consider:
Mass customization
Wanda Corp. currently uses a job shop process. It wants to maintain the advantages of this but increase efficiency. Wanda should investigate:
Cellular manufacturing
Jones Company has a make to order orientation. It most likely does not use:
Continuous process structure
Companies with a make to stock orientation are most likely to use which of the following process structures?
Repetitive process
Choose the service type which is correctly matched with one of its key characteristics.
Service Factory – facilities and equipment represent a large proportion of total costs.
Zanadu Corp. has dedicated equipment and workers in a regularly occurring sequence of activitees. Zanadu has which type of operations layout?
Product layout
John Jones, CEO of Joes Corp, is unhappy because each product his company makes takes a unique route though the facility processing times, which tend to be high. His company most likely has a
Process layout
A company needs to produce 400 units per day (the day is defined as 12 hours of production) There are 3 tasks to be completed, with a total task time for all 3 tasks of 6 minutes. The company should have: (Round your answer to the next whole number.)
3 workstations
A company needs to produce 1000 units per day (the day is defined as 8 hours of production) There are 6 tasks to be completed, with a total task time of 12 minutes. The company should have:
25 workstations
A bakery has a choice of leasing different types of ovens. Oven A will cost $1000 per year to lease and operate, plus $.50 per cake baked. Oven B will cost $3000 per year to lease and operate, plus $.40 per cake baked. Find the break-even point at which the annual costs of the two ovens are equal.
20,000 cakes
Three processes have the following costs:
Process A has fixed cost of $2000 and variable cost of $3/unit.
Process B fixed cost is $4000 and variable cost is $2.60/unit.
Process C fixed cost is $8000 and variable cost is $2.40/unit
If the projected total demand is for 6000 units, which process should be used?
Process B
The two types of data involved in quality control are
Variables and attributes
“Pass/fail” and “go/no go” are both examples of
Attribute Data
The width of a histogram showing a distribution of data indicates the ____ of the process that generated the distribution
Zanda Corp. has determined that it has too many products returned from customers. Zanda is interested in determining what factors or elements could contribute to the large number of returns. Which of the following quality tools would Zanda use to achieve this objective?
Fishbone diagram
You are involved in teh implementation of a quality improvement program. Your immediate goal is to identify what problems you should focus on (ideally you want to focus on those that give you the biggest bang for the buck). Which of the following quality control procedures is the most appropriate?
Pareto Analysis
Suppose that you are a process manager in a manufacturing plant, and you suspect that there is a relationship between the rom temp of the plant and the weights of the plastic caps produced by an injection molding process. What quality improvement tool would you use to investigate this claim?
Scatter diagram
The specifications for the diameter of a molded part are 10 mm +/- 0.5 mm. The actual average and standard deviation from 250 parts sampled is 10.1 mm and 0.1 mm respectively. What is process capability as measured by Cp?
The specifications for the diamter of a molded part are 10 mm +/- 0.5 mm. The actual average and standard deviation from 250 parts sampled is 10.1 mm and 0.1 mm respectively. What is CPK?
The specifications for the diameter of a molded part are 10 mm +/- 0.5 mm. The actual average and standard deviation from 250 parts sampled is 10.1 mm and 0.1 mm respectively. This process can be characterized as:
A firm has an existing process which it would like to use for producing a part i will sell to an industrial customer. The customer requires that defective (out of specification) parts be kept to 3000 parts per million (3/10 of one percent) or less. A process capability study done on the process revealed that it has a process capability index (cpk) of 1.00 for this part. What should the firm conclude from the study?
The process is capable, but just barely, and will require careful monitoring in order to meet customer requirements
Sample means and ranges were obtained for five samples of 10 units per sample from a production process. Assume the process was considered to be in control during the period the samples were collected. The results are as follows:
Sample means and ranges were obtained for five samples of 10 unites per sample from a production process. Assume the process was considered to be in control during the period the samples were collected. The results are as follows:
The objective of statistical process control (SPC) is to :
Detect assignable cause variations versus normal random variations in the process
Hugging in a control chart usually indicates
Something is occurring that is masking natural variation
The Taguchi methods link process design to:
Process capability
In its promotional material for bed linens, Scarsdale Corporation states that all sheets and pillowcases sold to customers should have and actually do have a thread count of exactly 600 threads per inch. Scarsdale is apparently emphasizing:
Conformance quality
Which of the following statements is false?
Quality dimensions for tangible goods are easy to measure while they are difficult to measure for services.
Stu Johnson, CEO of Johnson, Inc., attended a seminar on Total Quality Management. Which of the following is NOT something he is likely to have learned at that seminar?
Quality is primarily the responsibility of operations management
Variability as the source of most quality problems was a major contribution to quality management of which thought leader?
“Zero defects” is a concept of quality management of which though leader?
Sanford Corp bough new technological systems to inspect the quality of products as they come off the production line. The expense of operation these systems would be an example of which of the following types of quality-realted costs?
Appraisal cost
Xanadu Inc. decided to increase the training received by new employees. The expense of this training is an example of which the following costs of quality:
Prevention costs
The TQM view of organizational structure states that
Management must support employees
All of the following represent external failure cost except the cost of
Scrapping defective raw material
“Quality at the source” suggests quality should be:
Built into the product
Phil Bord is a CEO for a large auto manufacturer an dis interested in improving the product quality. Phil had overheard his friend mention 6 Sigma. Considering that Phil has no idea what 6 Sigma is, what are some key points to help Phil out?
Six-sigma quality is the result of a well-defined and structured process
At the heart of the six sigma program is a 5 step process called DMAIC. These letters denote a major activity that must be completed to achieve the objectives of six sigma. These activities are:
Define, Measure, Analyze, Improve, and Control
ISO 9000 defines a set of internationally accepted standards for
Business quality management
Which is the most important category (as evaluated in terms of weightings used by the outside assessors) of the Malcolm Baldrige National Quality Award Program?
None of these options are the most important for the award
Which of the following statements that might be made by a business executive best expresses the overall philosophy of Total Quality Management?
“There’s always room for improvement”
All of the following are supply management goals EXCEPT
Purchase at the lowest price
Zanda Corp. had outsourced its production to a company located in Asia. Recently it decided to continue to outsource by bring the production back to a company located in the US. This decision was likely made after Zanda.
Examined total cost of ownership
Outsourcing is often a good choice when
A product is in the mature phase of the life cycle
Which one of the following would NOT be a step in conduction a make/buy analysis?
Conduction a detailed internal audit of purchasing practices
The process of understanding how a firm is spending its money and with which suppliers is called:
Spend analysis
Aspen Corporation has discovered that it uses 10 different suppliers for a particular type of item, has bought 20 different models of that item, and total expenditures last year for the item was $100000. Aspen most likely is conducting
Spend analysis
Jones Company has identified an item for which the supply risk is high and the value of the purchase to the firm is low. A recommended sourcing strategy for Jones is to:
Multiple source
Benefits of single sourcing include all of the following EXCEPT
Less supply risk
Which of the following are advantages of full partnerships with suppliers, as compared to traditonal adversarial relationships?
1. They help reduce uncertainties for both buyer and supplier
2 .The full partnership is easier to establish and maintain than other relationships, so more suppliers can be dealt with
3. The full partnership assures the lowest material price
1 only
Zanda Corp. is considering trying to develop a full partnership with a particular supplier. This suggests that the item Zanda buys from the supplier is
A strategically important part
A relationship with a supplier that is characterized by distrust, little communication, and short-term transactions is called:
Adversarial relationship
Advanced Manufacturing Company is evaluating 2 suppliers for a component sourcing. After much internal discussion, AMC’s management has determined that the critical factors in choosing suppliers are: quality, delivery, price, and service. Further, management has rated the importance of these factors as 4. 3. 2 and 1 respectively. On a scale of 1 to 5, supplier A is rated at 5, 3, 3 and 3 respectively. Supplier B’s ratings are 4.4. 3. and 4. Which supplier has the best weighted score?
Neither, they both have the same weighted score
Preparing an RFQ or RFP is an important step in:
Competitive bidding
A company has decided that it no longer needs to extensively count and inspect the products it receives from a particular supplier. This suggests that the purchasing company has begun:
Supplier certification
Johnson Inc. has acquired software to help manage interactions with its supply base. This suggest that Johnson Inc. is involved in”
Supplier relationship management
Zanda Corp. made a decision to use a more expensive mode of transportation to deliver orders to customers. This decision was likely made after examination of
Cost to service tradeoffs
With respect to transportation on regulation today in the US
There is more safety/social regulation than ever before
Jones Company has decided to limit deliveries to selected areas to specific days of teh week to obtain transportation savings. This is an example of:
Scheduled delivery consolidation
Jones Company learned that several other shippers in its hometown had customers located in the same markets that is serves. With this information, Jones should investigate the possibility of:
Pooled delivery consolidation
Zanda Corp can make three individual deliveries to three different customers at a cost of $500 each or can consolidate them into 1 shipment with a cost of $1300 and a stop off charge of $100 per stop. Should Zanda do this?
No, it will increase cost by $100
With respect to the following operating service characteristics of the modes transportation, which combination is incorrectly specified?
Capability: pipeline is best; water is worst
Generally, the most expensive transportation mode (form among the following choices) is:
Bill’s glass store needs to ship an order of 10 chandeliers to a builder about 1000 miles away. The chandeliers cost about $10,000 each, and Bill will be paid upon delivery. Bill plans to ship the order by truck at a cost of $1000. The delivery will take 10 days. Bill uses a 30% annual inventory carrying cost. What will be the approximate total shipping and transit inventory carrying cost of the shipment?
Suppose you were the logistics manager for Way Off Manufacturing and Marketing, a manufacturer of mosquito repellant. Further suppose that Way Off markets its products in the entire US. However, in each geographic region of the country, way Off only needs to warehouse products for two months during each year. Way off probably would use what type of warehousing?
One function of warehouses or distribution centers is “consolidation”. this means that the warehouse/distribution center is used to:
Group small inbound loads into larger outbound loads
Zanda Corporation’s CEO watched in amazement and frustration as she watched workers handling and loading individual products onto trucks. She felt handling the individual items was very cumbersome. She should investigate the possibility of
The Center of gravity is
X* = 52.5; Y* = 57.5
In determining the number of facility locations, the lowest total cost is typically:
Not the lowest cost of either transportation or inventory
A company decides to reduce its number of warehouse locations (logistically postpone). This decision would result in ____ or _____
Poorer service to customers or higher transportation costs
Random Corp. is a company which offers logistics services such as storage, transportation and information processing to its customers. Companies like Random Corp. are called
Integrated Service providers

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