one reason for studying operations and supply chain management is…
all managers should understand the basic principles that guide the design of transformation processes
the goods-services continuum consists of what categories?
pure goods, core goods, core services, pure services
what is defined as a core good?
data storage systems
current issues in OSCM do not include:
increasing global supply chain employment
current issues are:
1. coordinating the relationships between mutually supportive but separate org. 2. optimizing global supplier, production, and distribution networks 3. managing customer touch points 4. raising senior management awareness of OSCM as a significant competitive weapon 5. sustainability and the triple bottom line
what is not a job in OSCM:
typical management and staff jobs in operations and supply chain management do no list data center manager
not a characteristic that distinguishes services from goods?
service jobs are unskilled
characteristics that distinguish goods from services are:
1. tangibility 2. interaction w/ the customer 3. services are heterogeneous 4. services are perishable and time dependent 5. services are seen as a package of features that affect the five senses
not a way that operations and supply processes are categorized?
operations and supply chain processes can be conveniently categorized as planning, coursing, making, deliver, and returning
one of the “package of features” that make up a service is
not a measure of operations and supply chain management efficiency used by Wall Street?
earnings per share
earning per share is not a measure of operations and supply chain efficiency
a measure of operations and supply management efficiency used by walls street?
not a major strategic operational competitive dimension that forms a company’s competitive position?
a major competitive dimensions that forms a company’s strategic operational competitive position in their strategic planning is..
cost or price
when developing an operations and supply chain strategy, what is an important product-specific criterion to consider?
in development of an operations and supply chain strategy, what may be an important product-specific criteria to consider?
supplier after-sale support
an important competitive dimension may be the ability of a firm to support its product after the sale
when a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called?
an activity-system map is…
a diagram that shows a company’s strategy is deliver to customers
what is a partial measure of productivity?
what is a multi factor measure of productivity?
a total measure of productivity?
if all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, what kind of productivity measure could you use to compute productivity?
(without measures of other inputs only a partial output measure is possible)
if all you knew about a production system was that total daily output was 400 unites and the total labor necessary to produce the 400 unites was 350 hours, and the total materials used were 425 unites, what kind of productivity measure could you use to compute productivity?
partial measure and multi-factor measure (either or both)
the total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours. using the appropriate productivity measure, what number represents the resulting productivity ratio?
1.428 (500 units/350 hours)
the total output from a production system in one day is 900 units and the total labor necessary to produce thee 900 units is 900 hours. using the appropriate productivity measure, what is the resulting productivity ratio?
1.000 (900 unites/900 hours=1.0 units per hour)
Larry’s Auto Body Repair Shop had revenues that averaged $60,000 per week in April and $50,000 per week in May. During both months, the shop employed six full-time (40 hours/week) workers. In April the firm also had four part-time workers working 25 hours per week, but in May there were only two part-time workers and they only worked 10 hours per week. What is the percentage change in labor productivity from April to May for Larry’s Auto Body Repair?
Labor productivity is output (revenue) divided by hours of labor input. For April, revenue was $60,000 and labor hours were 4 x [(40 x 6) + (25 x 4)]. This is 60,000/1,360 or 44.12 dollars per hour of labor. For May, revenue was $50,000 and labor hours were 4 x [(40 x 6) + (10 x 2)] This is 50,000/1,040 or 48.07 dollars per hour of labor a difference of $3.95 per hour. The percentage change in productivity between April and May, then, is 3.95/44.12 = 0.0895 x 100 = 8.95%. (Note: this analysis assumes four weeks in each month and equal productivity for each hour worked.)
what in not a typical phases of product development?
the six phases of GDP are:
phase1: concept development
phase4:testing and refinement
what is a characteristic of concurrent engineering
separate development teams working at once
what is primarily used to help design products that will connect product attributes with customer desires?
house of quality matrix
the house of quality is that it helps focus on building a product that satisfies customers
design for manufacturing and assembly delivers product improvements by emphasizing what?
simplification of product by reducing the number of separate parts
what is a time-to-market performance measure used in judging product development performance?
frequency of new-product introductions
what dimension of competitiveness does time-to-market performance in product design and process selection affect?
responsiveness to customer needs
what dimension of competitiveness does quality in product design affect?
the cost of ongoing service
a reason that firms must develop more new products than ever is…
product life cycles are shorter
concept development assumes a proven technology in which variant of the generic product development process?
the most basic categories of cash flow for a typical new product do not include:
the most basic categories of cash flow for a typical new-product-development project are:
marketing and support cost
economic analysis of product development projects is useful in what circumstance?
economic analysis is also useful in operational design and development decisions
economic analysis of product development projects must evaluate what
timing and amount of net cash flow
quality function deployment(QFD):
starts with studying and listening to customers
the aim of quality function deployment (QFD) is:
to get the voice of the customer into the design of a product
the purpose of value analysis/value engineering (VA/VE) is to:
simplify products and processes
a project can be subdivided into..
a group of activities combined to be assignable to a single organizational unit
a project starts out as..
a statement of work
what is a work breakdown structure
a definition of the hierarchy of project tasks, subtasks, and work packages
in a Gantt chart, the horizontal axis is usually..
what is a graphic report used in project management?
cost and performance tracking schedule
an advantage of a pure project where self-contained teams work full time on a project is
lines of communication are shortened
some of the advantages of a functional project where the project is housed in a functional division include..
a team member can work on several projects
a series of projects are organized in such a way that each project utilizes people from different functional area is union what organizational structure?
you are looking at a chart that has the terms BCWS,BCWP, and AC indicating lines on the chart.. what kind of chart are you looking at?
PERT is an abbreviation for what methodologies?
program evaluation and review technique
you have just been assigned to oversee a series of projects. Functional areas will loan personnel for each project, and separate project managers will be responsible for separate projects. This project managers will report to you. What project management structure is being used?
you have been placed n charge of a large project. Shortened communication lines are required to ensure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management structure should you use in this situation?
for an activity in a CPM analysis, the early start time is 8 and the late start time is 10. what is true?
the slack for this activity is 2
for an activity in a CPM analysis, the early finish time is 20 and the late finish time is 20. what is true?
the activity is on the critical path
a listing of immediate predecessor activities is important information in a CPM analysis is for what reason?
int specifies the relationships in the CPM network of activities
you have just performed a CPM analysis and have found that more than one path through the project network has zero slack values. what can you conclude?
you have multiple critical paths
you know when you have arrived at the optimal solution in using the time-cost CPM scheduling model analysis when what happens?
you have reach the minimum total cost
in CPM analysis, it is generally expected that the relationship between activity direct costs and project indirect costs will be..
popular project management software used in mid-sized projects is
the ability to rapidly and inexpensively switch production from one product to another enable what are sometime referred to as:
economies of scope
capacity planning that involves hiring, layoffs, some new tooling, minor equipment purchases, and subcontracting is considered as what planning horizon?
capacity planning involving acquisition or disposal of fixed assets such as buildings, equipment or facilities is considered as what planning horizon?
if the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, what is the capacity utilization rate?
0.75 (300 units of output/400 units)
if the actual output of a piece of equipment during an hour is 500 unites and its best operating level is a rate of 400 unites per hour, what is the capacity utilization rate?
1.25 (500 units of output/400 units)
if the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, what is the capacity cushion?
100 units per hour (a capacity cushion is an amount of capacity in excess of expected demand)
the capacity focus concept can be put into practice through a mechanism called…
plant within a plant (PWP)
the way to build in greater flexibility in your workers is to do what..
provide a broader range of training
when deciding to add capacity to a factory, what need not be considered?
immediate product demand
three important issues that must be considered when adding or decreasing capacity.. maintaining system balance, frequency of capacity additions or reductions, and the use of external capacity
not a step used in determining production capacity requirements?
forecasting raw material usage..
the steps are
to use forecasting techniques to predict sales for individual products within each product line, calculate equipment and labor requirements to meet product line forecasts, project labor and equipment availabilities over the planning horizon
what model uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step?
compared with a service operation, a manufacturing operation’s capacity is what?
demand can be smoothed by inventory fluctuations
at a decisions point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%; the expected benefit of selecting machine B is $80,000 with a probability of 50%; and the expected benefit of selecting machine C is $60,000 with a probability of 75%?
EMV of machine A=0.9×45,000=40,500
EMV of machine B= 0.5×80,000=40,000; and
EMV of machine C=0.75×60,000=45,000.
Since $45,000>$40,500>$40,000, you would select machine C.
what is an important difference between capacity planning in services and capacity planning in manufacturing operations
time, location, demand volatility, utilization affects service; all of these
capacity planning involving consideration of production scheduling and inventory position is characterized by what time duration?
what isn’t a step in developing a manufacturing cell layout?
disposing of leftover machinery and outsourcing ungrouped processes
shifting to a cellular layout entail 3 steps: 1. grouping parts into families that follow a common sequence of steps. 2. identifying dominant flow patterns of parts families as a basis for location of processes. 3. physically grouping machines and processes into cells
what is not considered a major work flow structure?
a difference between project and continuous flow categories of process flow structures is what..
the size and bulk of the product
assume a fixed costs for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. What number of units has to be produces and sold to break even?
assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. what number of units has to be produced and sold to break even?
($50-$35=$15; $120,000/$15=8,000 units.
you are hired as a consultant to decide if your client should purchase a new, highly specialized piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15, and the selling price for the finished product will be $30. What best describes the situation the firm is facing?
the company’s total margin will be less than its investment
margin per unit= $30-$15=$15;
$15 x 15,000 units= $225,000. Because $225,000<$256,000, the total projected margin for this product will be less than the investment required.
In a work center, machine A has a 10-minute set-up time per batch and a 2-minute per unit run time. Machine B performs the identical function but has a set-up time of 30 minutes and a 1-minute run time per unit. The work center makes products in batches ranging from 1 unit to 100 units. Assuming capacity is not a limitation on either machine, in order to minimize the total processing time, on which batches should machine B be used?
batches of more than 20 units should be run on machine B.
Total processing time for a batch of size Q: In Machine A: 10 + 2Q. In Machine B: 30 + 1Q. Point of indifference is where 10 + 2Q = 30 + Q or Q = 20. That is, for batches of size less than 20, total processing time is smaller in Machine A and for batches of size greater than 20, total processing time is smaller in Machine B. Thus, B is the most correct answer.
what is a basic type of process structure
what is not a basic type of process structure?
what is a basic type of process structures is one in which equipment or work processes are arranged according to the progressive steps by which the product is made?
what is a basic type of process structure with similar equipment or functions are grouped together
the placement of which is not determined by production process organization decisions?`
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