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DSCI 303 Exam 1 Study Guide

One of the major benefits of concurrent engineering is the reduction in time to complete the new product development process
In MRP systems, inventories are managed according to their dollar usage value (high dollar usage inventories are more carefully managed compared to low dollar usage inventories)
MRP System
is a production planning and inventory control system used to manage manufacturing process.
Meet three objectives:
Ensure materials are available for production and products are available for delivery to customers.
Maintain the lowest possible material and product levels in store
Plan manufacturing activities, delivery schedules and purchasing activities.
The master schedules is prepared for product families
If there are multiple resources that process each transaction, then the process apacity is the sum of all the individual capacities of the resources
In supply chain improvement, it is often necessary to reduce the setup time of equipment dramatically so that smaller lots of the product can be economical produced
The process view provides a basis for viewing an entire business as a system of interconnected processes
A line of visibility separates the parts of a service that come in direct contact with customers from those that do not
With the technology push view of new product introduction, technology and the market equally determine which products a firm should make
The objective of structural and infrastructure changes is the same: to remove sources of uncertainty, to reduce replenishment time, and to reduce total cost of supplying the market
Delivery has three performance measures: on-time delivery, fill rate, unit cost
Product design supports the business strategy
Market pull is the best way to introduce new products
The first step in Quality Function Development is to determine the customer attributes. The second step in QFD is to translate the customer attributes into target values
Major product redesign is often needed to make infrastructure improvements in the supply chain
Process redesign tends to be cross functional in nature and requires a complete overhaul of work methods, flows and information systems
Final consumers can be found farthest downstream in the supply chain
Order launching MRP systems are also known as type II MRP systems
The Economic Order Quantity model is extremely useful while making decisions on order quantities in MRP systems
MRP is a type of pull system
Forecasting demand in MRP systems is based on the past demand patterns for components
A bill of materials can be coupled with a bill of labor if MRP systems are to be used in service industries
MRP systems work better in a line flow system compared to a job shop
When a company uses an ERP system, the different functional areas of business will share a common database
A process will generally have at least one bottleneck
The master schedule should be frozen inside the production lead-time
Demand chain management tries to match supply and demand
As price increases and benefits remain constant, the value of a product increases
A process view emphasizes that it is important for a business to function as independent silos
Best practices in operations are best for all organization
It is bad to have a negative cash-to-cash cycle in which the firm receives payment before it pays its suppliers
“Lean operations” refers to the task of reducing the defect rates in a firms products or services
Modular design offers new opportunities for product and process design
ISO 9000 requires that a new-product development process be defined and followed by a company
Misalignments between operations an product design can occur in technology, infrastructure, and rewards systems
The transformation view of operations function provides a unified approach for studying the manufacturing and service industries
What are the two fundamental processes in all supply chains that are most affected by the internet?
Order fulfillment and order placement
If a factory has 100,000 units of materials in the system and if the average flow rate of the system is 5000 units per day, then according to Little’s Law, the average throughput time is
20 days
Which of the following does the Supply Chain Operations Reference model NOT include?
All of the above: Make, Deliver, Return
The five measures of supply chain performance are
cost, quality, flexibility, delivery and time
the four major decisions responsibilities of operations management are
process, capacity, quality and inventory
Which of the following is a way to improve the infrastructure in the supply chain
setup time reduction
in the process view of business, which of the following should be identified when defining the system
inter-connected processes across functional areas
an example of a prototype is
the original mcdonalds restaurant
analysis flow of information…
…should always accompany an analysis of materials flow
a diamond symbol in a flowchart indicates
both a and b: evaluation with more than one possible outcome, and decision
the first step in process flow analysis is
to select an appropriate transformation process for analysis
Which of the following is NOT a form of structural change of the supply chain
creating cross-functional teams
The master production schedule for Product A shows a need for 30 units, and product B shows a need of 25 units. Tomanufacture a unit of Product A, three units of component C are requires. To manufacture a unit of Product B, four units of component C are required. Determind the gross requirements for component c to complete production
190 units
The parts explosion results in the following outputs:
purchase orders and shop orders
Design for manufacturing involves
both a and c: simplification of products and manufacture of multiple products using common parts, processes and modules
Which is of the following is NOT true about supply chain dynamics?
the best way to improve the supply chain is to increase the total replenishment time and to feed back actual demand information to all levels
Which of the following is a form of infrastructure change
changes in information systems
Quality Function Deployment includes which of the following…
Materials handling, transportation and warehousing are elements of
successful MRP system elements include
all of the above: implementation planning, accurate data, and user knowledge
which of the following is NOT a prerequisite to process flowcharting
identifying te maneger overseeing the process
Which of the following statements about littles law is NOT included
little’s law cannot be applied to service operations
The capacity of a process is determined by:
a bottleneck
a replenishment-based system derives orders from
forecast or customer request
which of the following is NOT true of vertical integration
leads to greater flexibility to changing technology
successful MRP implementation requires
management support, accurate data, and adequate customer support
Which of the following statements is NOT true about process flow analysis
process flows must always be forward, and cannot “loop back” to previous operations
the design and management of seamless, value-added processes across organizational boundaries to mer thte real needs of the end customer is called
supply chain management
a comprehensive decision-making framework for operations include
consideration of other organizational functions
a service blueprint:
all of the above: shows all points of interaction between the customer and the service providers, contains a ‘line of visibility’, includes front office and back office process flows
backward or upstream supply chain flows include:
all of the above: information, monetary payments and materials
which of the following would NOT be changed due to process flow analysis
capacity decisions:
linclude staffing and scheduling
which of the following functions is responsible for the actual movement of goods and/or services across organizations?
the supply chain extends from
supplier to customer
the gross requirements of a part in an MRP system are determined from
planned order releases of the immediate parent item
supply chain management includes all of the following except
in MRP “scheduled receipts” are
open orders not delivered yet
one step in process flow analysis is to describe the existing process. If a new system is being developed (there is no exiting system):
this step is simply omitted
why is operations management a more encompassing term than production management
op management refers to service as well as manufacturing organizations
the market-pull view of new product innovation is to
develop products that the company can sell, baed on customer needs
when marketing, engineering and operations simultaneously develop a product, this approach is known as
concurrent engineering
the contemporary operations themes signify that
every operation should be externally directed to meet the customers requirements
supply chain management includes the integration of:
all of the above: suppliers, manufactures, and customers
planned lead times:
usually are longer than actual working times
the three major functions of business organiztions
interface with each other
which of the following statements regarding business process re-engineering is not true
BPR is synonymous to the total quality management approach of process improvement
which of the following is not one of the four principles of process redesign
automate the remaining steps in the process
which of the following is not a contemporary theme in operations
wuality teams
approximately what percentage of American workforce works in service industries
which one of the following would not generally be classified as a input in a university sytem
a service blueprint is used to analyze and manage the service process because it involves:
the identification of flows, bottlenecks and customer interaction points
____ systems uses requirements order philosophy, while_____ systems uses replenishment order philosophy
MRP, order point
in which phase of the new product design process should considerations about tradeoffs among product cost, quality and schedule be made?
product design
a numerically controlled machining centers has an average processing capacity of 500 units per day. It receives an average pf 3— units of inventory from another machining center and it has to supply an average of 1000 units of finished goods to the packaging section> assuming that the company incurs a significant cost for carrying finished goods supplied to packing section, the flow rate of machining process is:
1000 units/day
a type II MRP system:
has feedback to control capacity
a restaurant offers a “customer choice” sandwich for which the customer specifies the brea, meat, cheeses and topping he or she wants. there are three types of brea, three types of meat, three types of chest and four types of topping. How many different sandwiches can the restaurant make?
the three inputs for an MRP parts explosion are:
inventory, master schedule and bill of materials
which of the following is nOT a specific measure of supply chain performance
the concept that a product should not only fit the market needs but have a technical advantage as well is known as the
inter functional view to new product introduction
an MRP system is designed to deal with
lumpy demand
which of the following is NOT a type of e-procurement
B2B marketplaces
a requirements-based system derives orders from
master schedule
order placement via the internet does NOT include
use of an rep system to schedule production
which type of MRP system is used as an information system to plan and control inventories and capacities
type II
which of the following is true about MRP systems
objective is to meet manufacturing needs
a productive systems approach
must provide feedback information for control process inputs and technology
the flow of materials from upstream nodes into a firm is called
physical supply
all of the following help to handle uncertainty when operating an MRP system except
back up suppliers
end item A requires three components parts B,C and D. the bill of materials indicates that for each completed….
the three primary functions that exist in most business organizations are
operations, finance and marketing
which of the following is not in the process category of the operations decision framework
product or service inspection
Quality function deployment:
all of the above: is a tool for linking customer requirements to technical specifications, facilitates inter-functional cooperation between marketing, engineering and manufacturing AND relates engineering characteristics to each other
the average cash-to-cash cycle is defined as:
days in inventory+days in accounts receivable-days in accounts payable
which of the following most closely describes net material requirements in an MRP system
gross requirements- (on hand+scheduled receipts)
bills of materials are kept current with changes using
engineering change order systems
process elements that might be changed when improving a process include:
all of the above: job design, product or service design, and equipment or tools
inventory decisions involve:
all of the above: determining what to order, how much to order, and when to order, tracking flows of materials, and managing the finished goods inventories
cycle counting:
is counting a fraction of inventory each day
Quality Function Deployment
links customer requirements to technical specifications
safety stock in an MRP system
is used to provide flexibility to meet changing customer requirements
modular design involves
dividing the products into their similar components
the bills of materials
is a list of materials required to product a part
which of the following statements is NOT true regarding supply chain operations
demand changes by the end user can create a bullwhip effect in the supply chain
which of the following is NOT part of the new-product development process
development of the marketing strategy
is I denotes the average inventory in the system, T denotes the average throughput time, and R denotes the average flow rate of the system, then by Littles Law:
Process design
should occur at the same time as product design
three typical misalignments between product design and operations are
technology, reward systems and inrastructure
the essence of operations management can be described by
decisions, function and process
which of the following is NOT a characteristic of changes in structure
lead to changes in information systems
type I material requirements planning systems:
all of the above: are push production systems, assume infinite capacity while scheduling the jobs in a factory, and schedule backward in time starting with the due date of the job
Value analysis:
both a and b: improves the usefulness of the product without increasing the cost AND reduces the cost of a product without reducing its usefulness
which system specifies the output of the operations functions
master scheduling
what does a square or rectangle symbol indicate in a flowchart

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