The transformation view of the operations function provides a unified approach for studying the manufacturing and service industries
True
The process view provides a basis for viewing an entire business as a system of interconnected processes
True
Lean operations refers to the task of reducing the defect rates in a firms products or services
false
As price increases and benefits remain constant, the value of a product increases
false
Product design supports the business strategy
True
Misalignments between operations and product design can occur in technology, infrastructure, and rewards systems
True
The first step in QFD is to determine the customer attributes. The second step in QFD is to translate the customer atributes into target values
false
One of the major benefits of concurrent enginering is the reduction in the project design times
true
Market pull is the best way to introduce new products
false
Modular design offers a fundamental way to change product design thinking
true
ISO 9000 requires that a new-product development process should be defined and followed by a company
true
With the technology push view of new-product introduction, technology and market equally determine which products a firm should make
false
A process view emphasizes that it is important for a business to function as independent silos
false
If there are n resources that process each transaction, then the process capacity is the sum of all the individual capacities of the resources
true
Any given process will have at least one bottleneck
true
A line of visibility separates the parts of a service that come in direct contact with customers from those that do not
true
Business process reengineering is cross-functional in nature and requires a complete overhaul of work methods, flows, and information systems
true
Major product redesign is often needed to make infrastructure improvements in the supply chain
false
The objective of infrastructure change is the same as structural change: to remove sources of uncertainty, to reduce replenishment time, and to reduce total cost of supplying the market
true
In supply chain improvement, it is often necessary to reduct the setup time of equipment dramatically so that smaller lot of the product can be economically produced
True
It is bad to have a
negative cash-to-cash cycle as the firm receives cash several days after selling
its products.
False
Final consumers can be
found farthest downstream in the supply chain.
True
Demand chain management
tries to match supply and demand.
False
Delivery has three
measures: on-time delivery, fill rate, and unit cost.
False
Forecasting demand in MRP
Systems is based on the past demand patterns recorded from previous
transactions.
False
A bill of materials is
usually replaced by a bill of labor if MRP systems are to be used in service
industries.
True
The Economic Order Quantity
model is extremely useful while making decisions on order quantities in MRP
systems.
False
Order
launching MRP systems are also known as Type II MRP systems.
False
In MRP
systems, inventories are managed according to their dollar usage values (i.e.,
high dollar usage inventories are carefully managed when compared to low dollar
usage inventories).
False
When a company uses an ERP
system, the different functional areas of the business will share a common
database.
True
MRP systems
work better in a line flow system compared to a job shop.
False
MRP is a type of pull
system
False
The master schedule is
prepared for product families.
False
The master schedule should
be frozen inside the production lead-time.
True
35. Why
is operations management a more encompassing term than production
management?
A. Operations
management is concerned with multiple products and services
B. Operations
management refers to service as well as manufacturing organizations
C. Operations
management is broader including the financing and marketing functions
D. Operations
management makes use of the tools of quantitative analysis and computer systems
B
36. Which
of the following functions is responsible for the actual movement of goods
and/or services across organizations?
of these
A.
37. Approximately,
what percentage of the American workforce works in service industries?
C.
38. The
four decision areas in operations management are:
A. Planning,
technology, inventory, and control
B. Process,
quality, capacity, and inventory
C. Process,
quality, technology, and capacity
D. None
of these
B
39. A
productive process approach:
A. Views
operations as a separate organizational function
B. Must
provide feedback information for control of process inputs and technology
C. Is
of limited use in service organizations
D. Disregards
human and social concerns
B
40. Capacity
decisions:
A. Include
staffing and scheduling
B. Include
inventory control
C. Include
defining product specifications
D. None
of these
A
41. Inventory
decisions and control systems involve:
A. Determining
what to order, how much to order, and when to order
B. Tracking
the flow of materials
C. Managing
the finished goods inventories
D. All
of these
D
42. The
contemporary operations themes signify that:
A. More
emphasis should be placed on manufacturing than on service industries
B. Every
operation should be externally directed to meet the customers' requirements
C. Operations
decisions should precede decisions in other functions in an organization
D. To
be competitive, strategies for operations should have a narrow focus such as
consideration of the effects of industry changes only
B
43. The
essence of operations management can be described by:
A. Process,
capacity, and people
B. Decisions,
function, and process
C. Planning,
control, and organization
D. Integrated
planning and control
B
44. Which
of the following is not a new theme in operations?
A. Globalization
of Operations
B. Lean
Operations
C. Quality
Teams
D. Environmental
Concerns
E. Supply
Chain Management
C
45. The
three primary functions that exist in most business organizations are:
A. Operations,
accounting, and finance
B. Operations,
production, and finance
C. Production,
marketing, and human resources
D. Operations,
finance, and marketing
E. None
of the above
D
46. The
three major functions of business organizations:
A. Are
mutually exclusive
B. Function
independently of each other
C. Interface
with each other
D. Do
not interface with each other
E. Both
b and c
E
47. Which
one of the following would not generally be classified under the heading of
input in a university system?
C.
48. The
four major decision responsibilities of operations management are:
A. Process,
quality, capacity, and human resources
B. Process,
quality, human resources, and inventory
C. Quality,
inventory, human resources, and capacity
D. Quality,
capacity, inventory, and human resources
E. Process,
capacity, quality, and inventory
E
49. Which
of the following does not come under the process category of the operations
decision framework?
A. Layout
of the facility
B. Job
design
C. The
type of equipment and technology
D. Product
or service inspection
E. Workforce
policies
D
50. Supply
chain management includes the integration of:
A. Suppliers
B. Manufacturers
C. Customers
D. Both
a and b
E. a,
b and c
E
51. The
supply chain extends from:
A. Supplier
to manufacturing
B. Supplier
to supplier
C. Dealer
to customer
D. Supplier
to customer
D
52. Supply
chain management includes all of the following except:
A. Purchasing
B. Inventory
control
C. Advertising
D. Customer
service
C
53. The market-pull view of new product innovation is to:
A.
54. Which
of the following is not part of the new-product development process?
A. Concept
development
B. Product
design
C. Development
of the marketing strategy
D. Pilot
production/testing
C
55. An
example of a prototype is:
A. A
military aircraft
B. The
personal computer
C. A
Broadway play
D. The
original McDonald's restaurant
D
56. Process
design:
A. Is
the way new product ideas are developed
B. Is
the next stage after product design
C. Is
considered less important to a company than product design
D. Should
occur at the same time as product design
D
57. A
restaurant offers a "customer's choice" sandwich where the customer
specifies the types of bread, meat, cheese and topping he or she wants. There
are three types of bread, three types of meat, three types of cheese and four
types of topping. How many different sandwiches can the restaurant make?
C.
58. Modular
design involves:
A. Dividing
the production process into separate work units
B. Dividing
the products into product lines
C. Dividing
the products into their similar components
D. Dividing
the products into different cost categories
C
59. Quality
Function Deployment:
A. Links
customer requirements to technical specifications
B. Does
not consider customer attributes important
C. Depends
only on engineering characteristics
D. Assumes
interactions between engineering characteristics are unimportant
A
60. Quality
Function Deployment includes which of the following: (1) relative importance of
customer attributes, (2) tolerance stack-up, (3) a comparison to the
competitor's product, (4) engineering characteristics, (5) customer
perceptions, (6) customer attributes, (7) variation around a target, (8) value
analysis.
A. 3,
5, 6, 7, 8
B. 1,
3, 4, 5, 6
C. 1,
2, 4, 6, 7
D. 2,
5, 6, 7, 8
B
61. The
concept that a product should not only fit the market needs but have a
technical advantage as well is known as the:
A. Market
pull approach to new-product introduction
B. Technology
push approach to new-product introduction
C. Interfunctional
view to new-product introduction
D. Dual
approach to new-product introduction
E. Innovative
approach to new-product introduction
C
62. In
which phase of the new-product design process are considerations about
tradeoffs among product cost, quality, and schedule made?
A. Concept
development
B. Product
design
C. Preliminary
process design
D. Pilot
production/testing
E. Final
process design
B
63. When
marketing, engineering, and operations simultaneously develop a product, this
approach is known as _______ _________.
A. Sequential
process
B. Traditional
approach
C. Concurrent
engineering
D. Both
a and b
E. None
of the above
C
64. Quality
Function Deployment:
A. Is
a tool for linking customer requirements to technical specifications
B. Facilitates
inter-functional cooperation between marketing, engineering, and manufacturing
C. Relates
engineering characteristics to each other
D. a
and b only
E. a,
b, and c
E
65. Design
for manufacturing involves:
A. Simplification
of products
B. Development
of successive generations of products
C. Manufacture
of multiple products using common parts, processes, and modules
D. Both
a and b
E. Both
a and c
E
66. Value
analysis:
A. Improves
the usefulness of the product without increasing the cost
B. Reduces
the cost without reducing the usefulness of the product
C. Both
a and b
D. None
of the above
C
67. In
using the process view of the business, which of the following should be
identified when defining the system?
A. Customers
and suppliers
B. The
process-flow analysis approach to be used
C. Of
all the functional areas, only the operations function
D. Boundary
of the system
E. Two
of the above
D
68. If 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 Little's
Law:
A. I
= T/R
B. T
= I + R
C. I
= R/T
D. R
= I/T
E. R
= I * T
D
69. If a
factory has 100,000 units of raw materials waiting 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:
A. 0.5
days
B. 20
days
C. 0.05
days
D. 100
days
E. 10
days
B
70. A numerically controlled machining center has an average processing capacity of 5000 units per day. It receives an average of 3000 units of semi-finished goods 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 huge sum of money for carrying finished goods supplied to the packaging section, the flow rate of the machining process is:
C.
71. Which of the following would not be changed due to process flowchart analysis?
D.
72. One step in process flow analysis is to describe the existing process. If a new system is being developed, (there is no existing system):
A.
73. Which of the following statements about Little's Law is incorrect?
A.
74. The average flow rate into a bank teller station is 50 checks per hour. The clerk at this teller station can process 60 checks per hour. The utilization of the clerk is:
E.
75. Analysis of the flow of information:
C.
76. Which of the following is not one of the four principles of business process reengineering (BPR)?
C.
77. Business process reengineering (BPR) has encountered some implementation problems because:
D.
78. Which of the following components need not be defined as a prerequisite to process-flow analysis?
C.
79. Which of the following statements is incorrect about flowchart analysis?
C.
80. Process elements that might be changed when improving the efficiency of productive processes include:
D.
81. Which of the following statements regarding business process reengineering (BPR) is incorrect?
C.
82. A service blueprint:
D.
83. A service blueprint is used to analyze and manage the service process because it involves:
C.
84. The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer is called:
B.
85. Which of the following statements is NOT true regarding supply chain operations?
C.
86. The five measures of supply chain performance are:
C.
87. The average cash-to-cash cycle is defined as:
C.
88. When labor and overhead costs are held constant while revenues increase, the efficiency of the supply chain:
C.
89. Which of the following is NOT a characteristic of changes in structure?
A.
90. Which of the following is a form of infrastructure change?
C.
91. Which of the following is NOT true of vertical integration?
D.
92. Which of the following statements is NOT true about supply chain dynamics?
C.
93. ______ _______ _______ is a partnership of retailers, wholesalers, and manufacturers aimed at managing both demand and the supply chain.
D.
94. Which of the following is NOT a specific measure of supply chain performance?
A.
95. Which of the following is NOT a form of structural change of the supply chain?
D.
96. Which of the following is a way to improve the infrastructure in the supply chain?
B.
97. Which of the following is NOT a type of e-procurement?
C.
98. What are the two fundamental processes in all supply chains that are being affected by the Internet?
B.
99. Order placement via the Internet does NOT include:
C.
100. The flow of materials from upstream nodes into a company is called:
A.
101. Which
of the following does the SCOR model NOT include?
of the above are included
E.
102. Materials handling, transportation, and warehousing fall under:
A.
103. A Type II MRP system:
B.
104. The three inputs for every MRP parts explosion are:
B.
105. A requirements-based system derives orders from:
D.
106. A replenishment-based
system derives orders from:
A. Capacity
available
B. Forecast
or customer request
C. Bill
of materials
D. Master
schedule
B
107. An MRP system is designed to cope with the following type of demand:
A.
108. Planned
lead times:
A. Usually
are longer than actual working times
B. Usually
reflect the actual working times
C. Usually
are smaller than the actual working times
D. Consider
interference from other jobs
E. Two
of the above
E
109. The
parts explosion results in the following outputs:
A. Purchase
orders
B. Purchase
orders and bill of materials
C. Purchase
orders and shop orders
D. Shop
orders and inventory orders
C
110. An inflated master production schedule:
B.
111. The bill of materials:
C.
112. Successful MRP implementation requires:
C.
113. Cycle counting:
A.
114. Bills of materials are kept current with changes using:
C.
115. Which type of MRP system is used as an information system to plan and control inventories and capacities?
B.
116. Which of the following is true about MRP Systems?
E.
117. Which system specifies the output of the operations function?
C.
118. Material requirements planning systems:
B.
119. Which of the following is NOT a way of handling uncertainty when operating an MRP system?
A.
120. Successful MRP system elements include:
A.
121. Which of the following most closely describes net material requirements?
A.
122. The
gross requirements of a given component part in a MRP system are determined
from:
A. Net
requirements + on-hand
B. Net
requirements of end item
C. Gross
requirements of the immediate part
D. Planned
order releases of the end item
E. Planned
order releases of the immediate parent item
A
123. _______
system uses requirements order philosophy, while _____ system uses
replenishment order philosophy.
A. Order
point, MRP
B. MRP,
order point
C. EOQ,
Quantity Discount
D. P,
Q
E. None
of the above
B
124. In
MRP "scheduled receipts" are:
A. Identical
to "planned order receipts"
B. Identical
to "planned order releases"
C. Identical
to "net requirements"
D. Open
orders not delivered yet
E. None
of the above
E
125. The
master production schedule for two products, A and B, is shown below. To
manufacture item A, three units of component C are required. To manufacture
item B, four units of component C are required. Using this information,
determine the gross requirements for component C to start week 1.
Master
Production Schedule: Wk 1
