Operations management 1 PDF

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1 1.) • Which of the following tasks would NOT typically represent an operations management activity at Hard Rock Café? A. filing a tax return B. designing an efficient layout C. receiving a shipment of incoming food ingredients D. preparing an employee schedule Answer: A. filing a tax return 2.) • The creation of goods and services is referred to as: Answer: production. 3.) • Which of the following is NOT considered to be one of the three primary functions that all organizations perform? A. production/operations B. research and development C. marketing D. finance/accounting Answer: B. research and development 4.) • Which of the following activities at an airline is NOT an operations activity? A. Crew scheduling B. Sales C. flying D. Catering Answer: B. Sales 5.) • A global network of organizations and activities that supply a firm with goods and services is referred to as a Answer: supply chain. 6.) • Competition in the 21st century is no longer between companies; it is between Answer: Supply chains 7.) • A large percentage of the revenue of most firms is spent on which function? Answer: Operations 8.) • Which of these is NOT one of the basic functions of the management process? A. leading B. controlling C. staffing D. inspecting Answer: D. inspecting 9.) • Which of the following OM decisions determines how a good or service is produced and commits management to specific technology, quality, human resources, and capital investment? Answer: process and capacity design 10.) • The father of scientific management is Answer: Frederick W. Taylor. 11.) • The person who believed that management must do more to improve the work environment and processes so that quality can be improved was Answer: W. Edwards Deming 12.) • The economic activities that typically produce an intangible product are referred to as Answer: services. 13.) • Which of the following organizations does NOT belong to the service sector? A. San Diego Zoo B. Costco C. Southwest Airlines D. Ford Motor Company Answer: D. Ford Motor Company

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2 14.) • Productivity increases when Answer: inputs decrease while outputs remain the same. 15.) • What is the goal for mass customization? Answer: The goal is to produce customized products, whenever and wherever needed. 16.) • Which of the following is NOT considered to be a stakeholder? A. distributors B. customers C. competitors D. community members Answer: C. competitors 17.) • The stated purposed of NAFTA is to Answer: phase out all trade and tariff barriers among Canada, Mexico, and the U.S. 18.) • Which of the following is NOT a reason why domestic business operations decide to change to some form of international operation? A. attract and retain local talent B. improve the supply chain C. improve products D. improve operations Answer: A. attract and retain local talent 19.) • A strategy is Answer: an action plan to achieve a mission. 20.) • What is the purpose or rationale for an organization's existence? Answer: Mission 21.) • Competing on differentiation is Answer: concerned with uniqueness. 22.) • Which of the following does not represent competing on response? A. concerned with reliability of scheduling B. based on providing uniqueness C. based on quickness D. based on flexibility Answer: B. based on providing uniqueness 23.) • Maturing of a product: Answer: manufacturing process stabilizes, longer production runs are used, optimum capacity may be achieved. 24.) • Technology innovation in the manufacturing process: Answer: purchasing, product design, and maintenance needs to be revised. 25.) • Changes in laptop computer design that builds in wireless technology: Answer: new human skill resources, inventory and maintenance needs to be revised. 26.) • Which of the following is NOT one of the 10 strategic OM decisions listed in the text? A. layout B. finance/accounting C. location D. quality Answer: B. finance/accounting 27.) • Which of the following is NOT an OM strategy/issue during the growth stage of the product life cycle? A. shift towards product focus B. reduce capacity C. enhance distribution D. forecasting critical Answer: B. reduce capacity

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28.) • SWOT analysis refers to Answer: strengths, opportunities, weaknesses, and threats. 29.) • Which of these is NOT an advantage of outsourcing? A. potential creation of future competition B. gaining outside expertise C. cost savings D. accessing outside technology Answer: A. potential creation of future competition 30.) • An international business is a firm that Answer: engages in international trade or investment. 31.) • Which of the following international operations strategies uses decentralized authority with substantial autonomy at each business? Answer: multidomestic 32.) • The three phases involved in the management of large projects are Answer: planning, scheduling, and controlling 33.) • Which of the following does NOT belong to the planning phase of project management? A. team organization B. defining the project C. monitoring resources D. goal setting Answer: C. monitoring resources 34.) • The critical path of a network is the Answer: longest time path through the network. 35.) • How is the EF computed? Answer: ES + Activity time 36.) • Which of these time estimates is NOT used in PERT? A. most likely time B. pessimistic time C. standard time D. optimistic time Answer: C. standard time 37.) • What is the shortest duration required to complete an activity? Answer: Crash time 38.) • Which of the following is a limitation of PERT and CPM? Answer: There is the inherent danger of placing too much emphasis on the critical path. 39.) • Among the following, critical path and slack time analysis MOST help Answer: pinpoint activities that need to be closely watched. 40.) • A forecast that projects a company's sales is Answer: a demand forecast. 41.) • CPFR is Answer: collaborative, planning, forecasting, and replenishment.

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42.) • Which of the following statements is NOT true? A. When excess capacity exists, cost can increase. B. When excess capacity exists, cost can decrease. C. When capacity is inadequate, market share can shrink. D. When capacity is inadequate, customers can be lost. Answer: B. When excess capacity exists, cost can decrease. 43.) • Which of the following is the FIRST step in a forecasting system? Answer: Determine the use of the forecast 44.) • Which of the following forecasting steps comes directly after determining the time horizon of the forecast? Answer: Select the forecasting model(s) 45.) • Which of the following is a quantitative forecasting method? Answer: Exponential smoothing 46.) • Which forecasting model is based upon salespersons' estimates of expected sales? Answer: Sales force composite. 47.) • What is a data pattern that repeats itself after a period of days, weeks, months, or quarters? Answer: Seasonality 48.) • Which forecasting method considers several variables that are related to the variable being predicted? Answer: Multiple regression 49.) • A tracking signal is Answer: a measurement of how well a forecast is predicting actual values. 50.) • Which one of the following statements is NOT true about the forecasting in the service sector? A. Hourly demand forecasts may be necessary. B. Detailed forecasts of demand are not needed. C. Demand patterns are often different from those in non-service sectors. D. Forecasting in the service sector presents some unusual challenges. Answer: B. Detailed forecasts of demand are not needed 51.) • Which of the following statements is NOT true? A. The term "products" refers to tangible goods only. B. The product decision includes the selection, definition, and design of products. C. The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage. D. Many service firms refer to their offerings as "products." Answer: A. The term "products" refers to tangible goods only. 52.) • A house of quality would depict the strength of the relationship between which of the following two items? Answer: The customer's desire for a durable wallet and the company's choice of material for the wallet. 53.) • Which of the following is NOT a benefit generated by manufacturability and value engineering? A. reduction of environmental impact B. improved job design and job safety C. reduced standardization of components D. reduced complexity of the product Answer: C. reduced standardization of components 54.) • When ordering a new zagflatz, customers must choose the style of three major components, each of which has about ten variations. This is an example of

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Answer: modular design. 55.) • Which of the following is an external product development strategy? Answer: joint ventures 56.) • Defining a product means Answer: to define the new good's or service's function 57.) • Most manufacturing items and their components are defined by Answer: an engineering drawing. 58.) • A route sheet lists Answer: the operations necessary to produce the component. 59.) • In a make-to-order system, when a customer places a request for a product or service with a producer, Answer: a work order is created. 60.) • What is analysis that focuses on the ways in which processes can be designed to optimize interaction between firms and their customers? Answer: process-chain-network analysis 61.) • Which of the following statements is NOT true regarding decision trees? A. Decision trees are particularly helpful when there are a series of decisions and various outcomes that lead to subsequent decisions followed by other outcomes. B. A decision tree is a great tool for thinking through a problem. C. Decision trees can be used for other management problems besides product design. D. Decision trees should only be used for new-product decisions when no uncertainty is present. Answer: D. Decision trees should only be used for new-product decisions when no uncertainty is present. 62.) • Which of the following is NOT true regarding corporate social responsibility? A. Corporate social responsibility means "doing what's right" and doing it properly, which can be beneficial to all stakeholders. B. Corporate social responsibility only requires firms to focus on environmentally friendly product disposal. C. Companies that practice corporate social responsibility introduce policies that consider environmental, societal, and financial impacts in their decision making. D. The operations function plays a profound role in meeting corporate social responsibility. Answer: B. Corporate social responsibility only requires firms to focus on environmentally friendly product disposal. 63.) • Which of the following statements is NOT true about sustainability? A. Sustainability focuses only on environmental resources. B. Sustainability refers to meeting the needs of the present without compromising the ability of future generations to meet their needs. C. Green manufacturing is part of sustainability. D. Sustainability is often associated with corporate social responsibility. Answer: A. Sustainability focuses only on environmental resources. 64.) • What are the three Ps in the triple bottom line of the three Ps? Answer: people, planet, and profit 65.) • The 3Rs for sustainability are Answer: reduce, reuse, and recycle. 66.) • What is the most critical phase in product life cycle assessment?

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6 Answer: product design 67.) • Which of the following DOES NOT increase profit by improving quality? A. flexible pricing B. improved reputation C. increased productivity D. higher warranty costs Answer: D. higher warranty costs 68.) • The American Society for Quality defines quality Answer: as the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. 69.) • Which of the following costs is NOT a cost of quality? A. Rework B. Scrap C. research and development D. lost goodwill Answer: C. research and development 70.) • Which of the following is the Japanese term used to describe continuous improvement efforts? Answer: Kaizen 71.) • Cause-and-effect diagrams are also known as Answer: Fish-bone charts 72.) • A device or technique that ensures production of a good unit every time is a Answer: poka-yoke. 73.) • Inspections should NOT take place Answer: after costly or irreversible processes. 74.) In general, the supply chain starts with A. a distributor. B. the provider of basic raw materials. C. final customers at the retail store. D. research and development. Answer: B. the provider of basic raw materials. 75.) Which of the following is the core competence for Honda? A. sustainable design B. advertising C. gas-powered engines D. product flexibility Answer: C. gas-powered engines 76.) The control of projects involves close monitoring of which of the following?

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7 A. costs B. resources C. budgets D. quality E. All of the above. Answer: E. All of the above. 77.) A local project being analyzed by PERT has 42 activities, 13 of which are on the critical path. If the estimated time along the critical path is 105 days with a project variance of 25, what is the probability that the project will be completed in 95 days or less? A. minus−0.4 B. 0.9772 C. 0.0228 D. 4.2 E. 0.3444 Answer: C. 0.0228 78.) Demand for a certain product is forecast to be 800 units per month, averaged over all 12 months of the year. The product follows a seasonal pattern, for which the January monthly index is 1.25. What is the seasonally-adjusted sales forecast for January? A. 801.25 units B. 83.33 units C. 798.75 units D. 640 units E. 1,000 units Answer: E. 1,000 units 79.) The hierarchy of components, their description, and the quantity of each required to make one unit of a product are documented on: A. a group technology listing. B. a bill of material. C. an engineering drawing. D. a work order. E....