Need help with Operations Management Assignment, Solve all Multiple Choice Questions

Question -
Multiple Choice1. Value can be added to an entity in all the following ways, EXCEPT:
a) Altering
b) Storing
c) Facilitating
d) Transporting
2. What are the two counteracting forces that impact economic offerings?
a) Customization and commoditization
b) Standardization and naturalization
c) Extraction and delivery
d) Experience and services
3. Which of the following is not considered a characteristic of a service?
a) Intangible
b) Labor-intense production
c) Delayed consumption
d) Quality difficult to measure
4. A distinction between physical and information outputs is that
a) Physical outputs wear out, but information outputs do not
b) Physical outputs exist in a single location, whereas information outputs can exist in ...Read More multiple locations
c) Information outputs are subject to diminishing returns, but physical outputs are subject to increasing returns
d) Both A and B
5. Inputs in a bank’s production system may include:
a) Loan default rates and the environment
b) Checks and deposits
c) Interest rates and wage rates
d) Federal Reserve decisions and the economy
6. A purposeful collection of people, objects, and procedures for operating within an environment is known as a(n):
a) Operation
b) System
c) Sub-system
d) Sub-operation
7. A type of output that commonly results from a production system is:
a) A product
b) A service
c) Both A and B
d) Neither A nor B
8. Which of the following is NOT one of the five major elements of a production system?
a) Inputs
b) Outputs
c) Monitoring and legislative compliance
d) Only A and B
9. Which of the following uses techniques from Toyota Production System and JIT to eliminate waste and non-value-added activities?
a) Enterprise and material requirements planning
b) Capacity Management
c) Quality Control
d) Lean Management
10. Many organizations are attempting to manage interdependent activities as one process referred to as:
a) Project management
b) Lean management
c) Supply chain management
d) Inventory management
11. Commoditization occurs when
a) Outputs become less differentiated based on their features
b) Inputs become less differentiated based in their features
c) Both A and B
d) Neither A nor B
12. Standardization is a key characteristic of which type of economic offering?
a) Commodities
b) Goods
c) Services
d) Experiences
13. A __ is commonly used to produce highly standardized outputs in extremely large volume.
a) Continuous transformation process
b) Flow shop
c) Job shop
d) Cellular production
14. The horizontal axis on the product-process matrix shows:
a) Output quantity
b) Variety of outputs
c) Quality
d) Breadth of outputs
15. Which of the following is NOT a major element of a service guarantee:a) Must be unconditional
b) Must be easy to communicate and for the customer to understand
c) Must be meaningful to the customer
d) Must include preventive measures for “fail-safing”
16. A gap in the service process that is considered the final gap on the customer’s side; representing the difference between what was actually delivered and the customer’s perception of that reality.
a) Gap 1
b) Gap 3
c) Gap 7
d) Gap 10
17. A/An ___ item is produced in batches of some size that is economical for the firm, and then stored in inventories.
a) Make-to-order
b) Make-to-stock
c) Order-to-make
d) Stock-to-order
18. Which of the following is NOT a type of manufacturing technology?
a) Artificial intelligence
b) CAMc) Robots
d) Numerical control
19. Which form of transportation system utilizes group technology?
a) Cellular production
b) Job flow
c) Project operations
d) Job Shop
20. In the Service Matrix, to which quadrant does retailing belong?
a) Service shop
b) Professional service
c) Mass service
d) Service factory
21. What is a well-known problem in flow shops? :
a) Boredom
b) Lack of specific skill
c) Absenteeism
d) Both a and c
22. Which form of transformation system has the highest output variety but the lowest batch size? :
a) Job shop
b) Cellular
c) Project
d) Flow shop
23. Process capability analysis does NOT depend on:
a) Location of the process mean
b) Natural variability inherent in the process.
c) Stability of the process
d) Business product design
24. The relationship between the natural variation in the production system and the product’s design specifications can be quantified using:
a) A process capability index
b) Control charts
c) Six sigmad) Fishbone diagrams
25. One aspect that differentiates Six Sigma from other earlier process improvement programs including total quality management and reengineering is that with Six Sigma
a) Quality can realistically be improved
b) It is easier to alter the corporate culture of a firm
c) Specific roles and titles have been identified and generally accepted.
d) Control charts are used exhaustively
26. ISO 9000 differs from the Deming Prize or the Malcolm Baldrige National Quality Award in that:
a) Is not for companies to compete
b) Customers of organizations thus recognized have some assurance that accepted business practices are followed
c) It is intended as more of a checklist of good business practices than as a prize
d) Both A and C
27. Which of the following was identified by Leigh Thompson as a threat to team creativity?
a) Conformity
b) Idea generation through brainstorming
c) Individual blocking
d) “Window Dressing”
28. Which of the following is NOT a category of Quality Costs?
a) Prevention cost
b) Appraisal cost
c) Internal and external cost of defects
d) Manufacturing cost
29. DMAIC stands for:
a) Define, Measure, Analyze, Improve, Control
b) Define, Maintain, Assure, Implement, Control
c) Define, Measure, Analyze, Implement, Control
d) Design, Maintain, Analyze, Improve, Control
30. A literal interpretation of six-sigma is:
a) 4.3 defects per million opportunities (DPMO)
b) 3.4 defects per billion opportunities (DPBO)
c) 3.1 defects per million opportunities (DPMO)
d) 3.4 defects per million opportunities (DPMO)
31. Which term compares an organization’s processes with the best practices to be found?
a) Value
b) Performance
c) Benchmark
d) Bias
32. The following are shortcomings associated with analyzing problems “one factor at a time” (also known as OFAT and 1FAT) EXCEPT:
a) In real life it is almost impossible to hold all other factors constant
b) It is very hard to account for interactions or joint variation between factors
c) Taguchi methods suggest that quality is determined at the design stage
d) Though graphing results is helpful to observe different factors, it is hard to graph more than two or three variables at the time
33. In order to leverage the location decision to enhance the development of long-term capabilities, the first step is to:
a) Identify the key organizational capabilities
b) Identify the sources of value the company will deliver
c) Assess implications for the location of organizational units.
d) Evaluate the key decision makers
34. Which of the following is/are (a) technique(s) used for increasing short-run capacitya) Increase resources
b) Improve resource use
c) Modify the output
d) All of the above
35. In planning the long-term capacity of an operation, one should take into account:
a) Economies of scope
b) Economies of scale
c) Bottlenecks
d) Both A and B
36. The most important factor(s) effecting the learning curve rate include(s):
a) Complexity of the task
b) Percentage of human input
c) Percentage of mechanical input
d) Only A and B
37. Assume that Company X produces a variety of cell-phones sequentially on 3 machines. The times required on each machine for one typical racket are as follows: M1: 3 minutes M2: 8 minutes, M3: 2 minutes. The throughput time for a cell-phone is :a) 2 minutes
b) 3 minutes
c) 12 minutes
d) 13 minutes
38. The four major considerations in selecting a national or overseas region for the facility are:
a) Labor supply, availability of inputs, foreign management, and environment
b) Proximity, environment, facility size, and foreign management styles
c) Proximity, labor supply, availability of inputs, and environment
d) Proximity, environment, facility size, and labor supply
39. Utilization can be defined as:
a) Output divided input
b) Input divided by output
c) Actual output relative to some expected, designed, or normal output
d) Output in proportion to the actual input
40. When a resource is scheduled as if it had unlimited capacity to handle any and all jobs, its schedule is called
a) Finite loading
b) Infinite loading
c) Bottleneck
d) Cycle time
41. Learning curve effect is
a) The ability to increase a machine’s productive capacity through usage
b) The ability to improve a process capacity through the usage of a machine
c) The human ability to increase their productive capacity through learning
d) The human ability to adjust their productive capacity through learning
42. Which of the following is a method of causal, quantitative forecasting?
a) Econometric
b) Simple regression
c) Moving average
d) Delphi method
43. Which of the following is a way of changing capacity that is available to a manager to meet demand at minimum cost?
a) Training
b) Oversupplying the Market
c) Subcontracting
d) De-expediting
44. Yield or revenue management would NOT be so appropriate if which of the following circumstances is present?
a) Uncertain demand
b) The market is homogeneous
c) Perishable capacity
d) Capacity is sold in advance
45. The role of sales, as opposed to operations, in setting the master schedule includes:
a) Maintain efficient utilization of work centers
b) Schedule finished goods to meet delivery
c) Not overloading work centers
d) Not under-loading work centers
46. Which of the following is an advantage of level production?
a) Steady employment with no workforce extra expenses
b) There are no costs incurred by inventories of finished service outputs
c) Use of overtime, split shifts, overlapping shifts, and part-time workers
d) Poor utilization of the workforce
47. The primary approach to the scheduling of resources is to:
a) Match availability to demand
b) Match supply to availability
c) Match demand with supply
d) Ensure supply during full periods
48. The __________ plan is a preliminary, approximate schedule of an organization’s overall operations that will satisfy the demand forecast at minimum cost.
a) Production
b) Rough-cut capacity
c) Aggregate
d) Efficiency
48. __________ means deciding which jobs to assign to which work centers. :
a) MRP
b) Sequencing
c) Loading
d) Facility planning
49. Which of the following are aggregate planning strategies?
a) Level production and certain demand
b) Level production and chase demand
c) Flexible production and chase demand
d) Only flexible production
50. Which of the following is conducted within the process of checking feasibility of the master schedule?
a) Capacity planning
b) Rough-cut capacity planning
c) Priority planning
d) Detailed scheduling
51. Revenue or Yield Management may also be thought of as:
a) The process of trying to manage the entire production based on the expected revenue
b) The attempt to allocate the fixed capacity of the service to match the highest revenue demand in the marketplace
c) Trying to get a fixed source of revenue for the organization
d) The notion that revenue can be generated though managing only a certain set of operations.
52. Logistics consist(s) of the following, EXCEPT:
a) Compensation and incentives
b) Storage and warehousing
c) Transportation and information processing
d) Inventories and distribution
53. Purchasing tends to follow three practices; which of the following is NOT one of them?
a) They leverage their buying power
b) To be fair, they cannot work with and help suppliers reduce costs
c) They commit to a small number of dependable suppliers
d) Both A and B
54. Organizations that process natural or basic resources as raw materials or other essential inputs to obtain their outputs will locate near their resources if one of the following conditions holds:
a) High economies of scale do not exist for the product
b) The raw material can be shipped long distance before being processed
c) There is a large loss in size or weight during processing.
d) Both A and C
55. Which of the following statements about Supply Chain Management (SCM) is/are correct?
a) SCM programs are putting ever greater emphasis on the marketing function
b) SCM coordinates and integrates several activities into a process and links a few of the partners in the chain.
c) SCM enables manufacturers to actively plan and collaborate across a distributed supply chain.
d) The goal of SCM is to deliver a good product at the right time, simultaneously sub-optimizing profits
55. Suppose that you have found the AAIV (aggregate inventory value on average for the year) to be $400 million. The daily cost of good sold was estimated at $80 million, what is the estimated days of supply?
a) 32,000
b) 480
c) 5
d) 8
56. Moore’s law states that:
a) Computing power doubles every 18-24 months
b) The value of a network increases with the square of the number of elements connected to the internet
c) If anything can go wrong, it will, and usually at the most inopportune moment
d) A project will always take longer than expected, even when you take into account Hofstadter's Law.
57. Which of the following is NOT a basic area of consideration in supplier management?
a) Supplier relationships
b) Cross-docking
c) Selection of suppliers
d) Certification and auditing
58. What term describes the execution of business transactions in a paperless environment, primarily through the Internet?
a) E-commerce
b) Electronic data interchange
c) E-business
d) Bar coding
59. What is the least expensive transportation mode?
a) Water
b) Railroads
c) Trucking
d) Air
60. __________ is defined as the ability of one organization’s computer to communicate with another’s computer.
a) E-business
b) E-commerce
c) Electronic data interchange
d) Both A and B
61. Which of the following costs includes taxes, insurance on buildings, depreciation of buildings, and maintenance and repairs?
a) Capital costs
b) Risk costs
c) Ordering costs
d) Storage costs
62. Which of the following question(s) need(s) to be answered to maintain appropriate level of inventory?
a) How much should be ordered?
b) When should an order be placed to replenish the inventory?
c) What is the total demand of the good?
d) Both A and B
63. A/an ___ requires keeping detailed real-time records of usage and stock levels.
a) Two-bin system
b) Perpetual inventory system
c) Periodic review system
d) Both A and C
64. Which of the following statement(s) about economic order quantity (EOQ) is/are true:
a) EOQ is a computed minimum-cost order quantity
b) EOQ relies mostly on order cost
c) Very small EOQ values will not usually be valid
d) Both A and C
65. This situation is faced by vendors who stock a certain amount of material for an upcoming period of uncertain demand and then must re-supply for the next period.
a) The newsboy problem
b) ABC identity
c) Economic order quantity problem
d) Buffer inventory problem
66. __________ inventories exist because materials must be moved from one location to another.
a) Transit
b) Anticipation
c) Transport
d) Cycle
67. Which of the following is NOT an assumption of the basic EOQ model? :
a) Rate of demand is constant
b) Shortages are allowed
c) Items are ordered independently of each other
d) Only B and C
68. What is defined as the time between placement of an order and receipt of the shipment?
a) Lead time
b) Prep time
c) Reorder time
d) Slack time
69. A simplified and much-used variation of the reorder point system is the __________. :
a) Zero-bin system
b) One-bin system
c) Two-bin system
d) Three-bin system
70. All inventory systems can be classified as one of the following three varieties, EXCEPT:
a) Reorder point systems
b) Periodic review systems
c) Materials requirements planning systems
d) Decision support system
Chapter: Chapter 09: Enterprise Resource Planning
71. The final, direct cost of implementing an ERP is NOT driven by:
a) The number of modules that will be implemented
b) The number of employees that will be using the system
c) The need to comply with legislation like Sarbanes-Oxley
d) The amount of consulting and training required
72. This approach to implementing an ERP system is by far the most ambitious and most difficult.
a) “Big Bang” approachb) “United Federation” approachc) “Test the waters” approach
d) “Industrial IMP” approach
73. The bill of materials file does NOT include:
a) Raw materials
b) Manpower required
c) Subassemblies and assemblies
d) Components
74. One of the key drivers for the strong interest in enterprise resource planning has been:
a) The need to comply with legislation such as the Sarbanes-Oxley act.
b) The desire to customize business processes
c) The desire to partition the organization’s existing information system
d) Both A and C
75. A report that indicates which orders are to be released during the current time period and which orders are to be canceled is the:
a) Planned-order release report
b) Open orders report
c) Order action report
d) Distribution requirement report
76. Which of the following is NOT one of the primary inputs to the MRP system? :
a) Master production schedule
b) Order action report
c) Bill of materials file
d) Inventory master file
77. The availability and practicality of MRP systems are directly related to:
a) The introduction of expansive computer power
b) The willingness of top managers to implement the system
c) The advent of relatively inexpensive computer power
d) The market area covered by the organization
78. Ordering in each week, what will be needed rather than EOQ amount is called _____ ordering.
a) Lot-for-lot
b) Just-in-time
c) Accurate
d) Exact
79. The inventory master file contains:
a) Orders to be released during the current time period
b) Detailed information regarding the number or quantity of each item on hand
c) A time-phased plan for orders to be released in future time periods
d) Actual customer orders and predicted demand
80. When scheduling activities are computerized and tied in with purchasing, accounting, sales, engineering, and other similar functional areas, the result is known as:
a) Materials resource planning
b) Distribution requirements planning
c) Manufacturing resource planning
d) Enterprise resource planning
81. Which of the following is NOT one of the five lean principles identified by Womack and Jones?
a) Specify value from the supplier’s point of view
b) Pursue perfection
c) Have the customer pull maximum value through the value stream
d) Identify the value stream
82. Which of the following is/are (a) primary tenet(s) in the Japanese work systems?
a) Waste is minimized
b) Six sigma implementation
c) Continuous improvement in process and systems
d) Both A and C
83. The step in the 5s approach in which unnecessary steps are eliminated is called:
a) Sort
b) Straighten
c) Scrub
d) Systemize
84. The goal of this approach is to mistake-proof work activities in a way that prevents errors from being committed in the first place:
a) Poka Yoke
b) Kaizen blitz
c) 5s
d) Six sigma85. Which of the following is NOT a direct benefit of lean?
a) Cost savings
b) Improved financial investments
c) Uncovering problems
d) Revenue increases
86. Which of the following is NOT one of the seven categories of waste?
a) Underproduction
b) Inventory
c) Waiting
d) Defects
87. A patient diagnosis is an example of what type of activity?
a) Nonvalue-added but necessary
b) Value-added
c) Nonvalue-added and not necessary
d) Necessary and value-neutral
88. The __________ offers a systematic way to view and analyze process flows.
a) Theory of constraints
b) Pull system
c) Progression theory
d) OPT
89. The lean tool to reduce setup times is SMED; this acronym stands for
a) Sample minute exchange of dry
b) Simple minute exchange of die
c) Single minute exchange of die
d) Simple minute exchange of dry
90. Takt time is calculated as
a) Available work time divided by customer required volume
b) Customer required volume divided by available work time
c) Demand volume divided by customer required volume
d) Available work time divided by demand volume
Multiple Choice91. Which of the following is NOT a basic form of transformation systems?
a) Job shop
b) Flow shop
c) Continuous transformation process
d) All of the above are basic forms of transformation systems
92. Layout analysis is usually performed for the following purposes:
a) Maximize operational efficiency
b) Reduce safety hazard or health hazards
c) Minimize interference or noise between areas
d) All of the above
93. A __ is commonly used to produce highly standardized outputs in extremely large volume
a) Job shop
b) Flow shop
c) Continuous transformation process
d) Cellular production
94. Continuous processes typically run 24 hours a day, seven days a week because:
a) There is a need to spread their huge fixed cost over as large a volume as possible
b) Price is often the single most important factor in competing with their products
c) Facilities are a maze of pipes, conveyors, tanks, valves, vats, and bins
d) Both A and B
95. Which of the following is a major difference between continuous processes and flow shops?
a) Inputs are fixed for the former and the flow of work is continuous for the latter
b) In flow shops, there is a discrete product or service instead of products not naturally divisible
c) Degree of automation is higher for flow shops
d) Both B and C
96. Which of the following is NOT a well-known problem in flow shops?
a) Boredom
b) Workers may be dehumanized by manufacturing lines
c) Absenteeism
d) All of the above are well-known problems in flow shops
97. Balancing a production line includes the following tasks, EXCEPT:
a) Finding a cycle time in which each workstation can complete its tasks
b) Take into account precedence relationships among tasks
c) Identify the task with the longest operation time
d) Calculate the number of workstations that completes the job in the minimum amount of time
98. Which of the following is FALSE for job shops?
a) Unique jobs must be produced
b) Output batch size is moderately large, to make it cost effective
c) The flow of work through facilities tends to be intermittent
d) Groupings of staff and equipment are done according to function
99. Which form of transportation system utilizes group technology?
a) Flow shop
b) Job shop
c) Cellular production
d) Project operations
100. A/An ___ item is produced in batches of some size that is set by the customer, and then delivered upon its completion.
a) Make-to-order
b) Make-to-stock
c) Order-to-make
d) Stock-to-order
101. The product-process matrix developed by Hayes and Wheeelwright (1979) explains how transformation systems vary from project –on the top left corner-to continuous processes –on the bottom right corner. Its vertical axis illustrates:
a) Output quantity
b) Variety of outputs
c) Quality
d) Breadth of outputs
102. Of the following, which form of transformation system has the lowest output variety but the highest batch size?
a) Job shop
b) Cellular
c) Project
d) Flow shop
103. In the Service Matrix, to which quadrant does recreation belong?
a) Service shop
b) Professional service
c) Mass service
d) Service factory
104. A gap in the service process that is considered the misperception by the service provider of what the customer truly needs.
a) Gap 1
b) Gap 3
c) Gap 4
d) Gap 10
105. Which of the following is NOT a major element of a service guarantee?
a) Must be unconditional
b) Must be easy to communicate and for the customer to understand
c) Must include preventive measures for “fail-safe”
d) Must be meaningful to the customer
File: ch01, Chapter 1: Operations Strategy and Global Competitiveness
106. A purposeful collection of people, objects, and procedures for operating within an environment is known as a(n):
a) Operation
b) Sub -system
c) System
d) Sub-operation
107. Which of the following is among the six major elements of a production system?
a) Inputs
b) Output
c) Monitoring and legislative compliance
d) Only A and B
108. Value can be added to an entity in all the following ways, EXCEPT:
a) Altering
b) Facilitating
c) Storing
d) Transporting
109. A type of output that commonly results from a production system is:
a) A product
b) A service
c) Neither A nor B
d) Both A and B
110. Which of the following is NOT considered a characteristic of a service?
a) Intangible
b) Labor-intense production
c) Quality difficult to measure
d) Delayed consumption
111. A distinction between normal goods and information/knowledge is that
a) Normal goods wear out, but information/knowledge does not
b) Information/knowledge can be given or sold to many others
c) Information/knowledge is subject to diminishing returns, but physical outputs are subject to increasing returns
d) Both A and B
112. Inputs in a bank’s production system may include:
a) Loan default rates and the environment
b) Interest rates and wage rates
c) Checks and deposits
d) Federal Reserve decisions and the economy
113. Which of the following uses techniques from Toyota Production System and JIT to eliminate waste and nonvalue-added activities?
a) Enterprise and material requirements planning
b) Lean Management
c) Quality Control
d) Capacity Management
114. Learning how to plan and control project activities to meet specifications for performance, schedule, and cost are among the subjects of:
a) Project management
b) Lean management
c) Supply chain management
d) Inventory management
115. Customization occurs when
a) Products or services are world-class, suitable for most markets
b) Products or services are offered on a made-to-order basis
c) Products or services are developed with several options
d) Both A and C
116. What are the two trends in the range of accommodation to customers’ needs?
a) Extraction and delivery
b) Standardization and flexibility
c) Customization and standardization
d) Experience and flexibility
117. Which of the following is NOT a mass customization strategy?
a) Adaptive customizers
b) Transparent customizers
c) Cosmetic customizers
d) Flexible customizers
118. Which of the following is NOT an advantage of rapid response?
a) First-mover advantage
b) Elimination of overhead
c) Improved morale and communication
d) Sharper focus on the customer
119. Which business strategy waits for the product to become fairly standardized and is demanded in large volumes?
a) First-to-market
b) Cost minimization or late-to-market
c) Second-to-market
d) Market Segmentation
119. Bartmess and Cerny (1996) identify three elements of a core capability that hinders imitation; which of the following is NOT one of these elements?
a) It is complex and requires organizational learning over a period of time
b) It is based on multiple functional areas, both internal and external to the organization
c) It is a result of how the functions interact
d) It is based on the skills/knowledge within the functions themselves
True/False
1. Key aspects of the theory of constraints include identifying the bottlenecks in the process and balancing the work flows in the system.
2. Lean enterprises rely on the push system, whereby company supply drives the production process.
3. The idea behind the Kanban system is to authorize materials for production only if there is a need for them.
4. The goal of Kaizen blitz is to mistake-proof work activities in a way that prevents errors from being committed in the first place.
5. The goal of single minute exchange of die is to reduce setup times to less than 10 minutes.
6. Bottlenecks govern shop throughput and work-in-process inventories.
7. Not much emphasis is placed on quality in most lean systems.
8. A diagram where the physical flows of the parts are mapped onto the shop floor is referred to as muda.
9. The order action report indicated which orders are to be released during the current time period and which orders are to be canceled.
10. The objective of enterprise systems is to provide seamless, real-time information to all employees who need it, throughout the entire organization, and to those outside the organization.
11. The focus of the “united federation” approach is on implementing a few key processes. Typically, a subset of the available modules is implemented to support these key processes.
12. When the scheduling activities are computerized and ties in with purchasing, accounting, sales, engineering, and other such functional areas, the result is known as material requirement planning.
13. With the enterprise resource planning (ERP) approach, information is entered once at the source and made available to all stakeholders needing it.
14. Many items, particularly finished products, experience independent demand; that is, demand unrelated to that for other items.
15. Only some crucial items in the master production schedule require a bill of materials.
8. In implementing ERP systems, the most significant challenge that organizations face is the difficulty of customizing an ERP system to meet an organization’s unique needs and processes.
16. Transit inventories exist because materials must be moved from one location to another.
17. Risk costs include interest on money invested in inventory and in the land, buildings, and equipment necessary to hold and maintain the inventory.
18. Periodic review systems are especially appropriate for retailers ordering families of goods
19. Medium-value items used in the ABC system include the 40 to 50 percent of the items that account for 10 to 15 percent of the annual inventory value.
20. A problem that is recognized with holding inventory is that product defects become hidden in the inventory, thereby increasing scrap and rework later in the production system.
6. The major components of inventory holding/carrying costs include capital costs, storage costs, and risk costs.
21. Anticipation inventories serve to cushion the effect of unpredictable events.
8. The ABC classification system is based on the annual dollar purchases of an inventoried item.
22. The goal of supply chain management is to optimally deliver the right product to the right place at the right time, while yielding the greatest possible profit.
23. The inventory turnover is calculated using the annual cost of goods sold and the aggregate inventory value.
24. Logistics includes the responsibility for acquiring the goods and services the organization needs, by any means.
25. Some benefits of electronic data interchange include less redundancy, improved customer service, and better order tracing.
26. Enterprise resource plans are systems designed to collect and interpret customer-based data.
27. Water is a good transportation mode for small, high-value, or perishable items.
28. Intranets are private networks to allow the organization to securely interact with external parties.
29. A bullwhip effect occurs more often when there are long lead times between the stages of the supply chain.
30. Level zero items are planned outputs broken down into individually scheduled items the customers actually want.
31. Priority planning refers to giving priorities to jobs.
32. The two pure aggregate planning strategies are referred to as chase demand and chase production.
33. In the traditional functional organization, the main players in creating the master schedule are finance and logistics.
34. In the allocation of capacity, overbooking is an attempt to reduce costs through better schedule management.
35. In chase demand, production is identical to the expected demand for the period in question.
36. Scheduling must be built into the flow transformation process when the facility is designed and therefore need not be constantly changed.
37. Master scheduling is a dynamic but stable process.
38. Forecasting is represented by the rate at which a transformation system can create outputs.
39. Some of the most significant decisions made by organizations, frequently strategic decisions, are made on the basis of qualitative forecasts.
40. Bottlenecks are places in the production process where production slows down because of a slow or insufficient number of resources.
41. Scheduling function is oriented primarily toward the acquisition of productive resources, whereas capacity concerns the timing of their use.
42. The learning curve is the ability of humans to increase their productive capacity through learning.
43. The amount of output of acceptable quality emerging from a production system compared with the amount that entered it is called economies of scale.
44. Efficiency is defined as output divided by input.
45. The actual output relative to some expected, designed, or normal output rate is known as throughput time.
46. Appraisal costs are incurred in the process of trying to prevent defects and errors from occurring.
47. During the quality control process, customers are identified and products that meet their needs are developed.
48. Developing and evaluating solutions to reduce the gap between desired process performance and current performance is the final step in the six sigma DMAIC approach for process improvement.
49. Durability refers to the probability that a product or service will perform the intended on any given trial.
50. A green belt has a broad knowledge of the six sigma toolkit, but not nearly as much in the tools as Black belts and Master Black Belts.
51. The Six Sigma approach is said to have originated at Motorola.
52. ISO 9000 is a quality award provided to the best company in a calendar year.
53. In services, a product defect is analogous to a defecting customer –a customer who takes their business elsewhere.
54. A general characteristic of a job shop is that it requires a small variety of inputs, and minimal variations in the time it takes for a complete “job”.
55. A logical, nominal, or virtual cell refers to a situation where the equipment is not physically adjoining but is still reserved for production of only one part family.
56. In the product-process matrix, when the size of a batch increases significantly, with a corresponding decrease in variety, then the flow shop is appropriate
57. According to the service matrix developed by Schmenner, services with low contact and customization attain profitability through high volumes rather than high prices.
58. In cellular production the cellular form allows for a level of customization usually found in job shops.
59. Flow shops are characterized by low to moderate output variety and many in batch size.
60. Numerical control allows machine to operate automatically through coded instructions.
61. Business Process Design (BPD) or “reengineering” attempts to make gradual and continuous improvements in the organization’s operations.
62. A system is defined as a purposeful collection of people, objects, and procedures for operating within an environment.
63. A renovation activity is any physical entity accompanying a transformation that adds value.
64. Operations only include those activities associated specifically with the production system.
65. One way to counteract commoditization is by decreasing the amount of customization
66. As competition becomes fiercer, organizations are now adopting organizational structures based on specific value-creating processes rather than simply using the value chain to coordinate separated functional groups.
67. The value-chain approach to organizational structure includes support functions.
68. Generally speaking, products are characterized with immediate consumption.
69. Sub-optimization occurs when one part of the system is improved to the detriment of other parts of the system.
70. Because systems can be divided into component subsystems, it is impossible to combine them into larger systems.
71. Paced lines use some sort of conveyor to move output along the production line at a variable rate, so that operators do their work as they need.
72. A general characteristic of a job shop is that it requires a small variety of inputs, and minimal variations in the time it takes for a complete “job”.
73. Experienced staff needed to run job shops tends to increase its direct labor costs.
74. The cost-volume-distance (CVD) model is suitable for layouts in which moving materials or people between departments is a major consideration.
75. A logical, nominal, or virtual cell refers to a situation where the equipment is physically adjoining and reserved for production of only one part family.
76. In cellular production the cellular form allows for a level of customization usually found in job shops.
77. Continuous processes are characterized by low to moderate output variety and one to few in batch size.
78. In the product-process matrix, when the size of a batch increases significantly, with a corresponding decrease in output variety, then the flow shop is appropriate
79. As the costs of fixed equipment investments rise with the volume produced, companies move from project to job, flow, and then cell transformation systems.
80. According to the service matrix developed by Schmenner, services with low contact intensity and customization attain profitability through high prices rather than high volumes.
81. A system is defined as a purposeful collection of people, objects, and procedures for operating within an environment.
82. Sub-optimization occurs when one part of the system is improved to the detriment of other parts of the system.
83. Generally speaking, products are characterized by immediate consumption.
84. A renovation activity is any physical entity accompanying a transformation that adds value.
85. Operations only include those activities associated specifically with the production system.
86. The mortality curve is also referred to as the fallout rate.
87. As an alternative to research, industries where bringing a product to market is extremely expensive (for example, high technology or pharmaceuticals) tend to adapt the imitation strategy.
88. Quality typically implies reliability.
89. The resource-based view considers the set of resources available to the organization as a secondary driver of the business strategy.
90. Vision statements express the organization’s purpose or reason for existence.
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