Quiz 1 - Operation Management PDF

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Operation Management...

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Question 1

Which of the international operations strategies uses the existing domestic model globally? international strategy global strategy transnational strategy multidomestic strategy transdomestic strategy Question 2

Which of the following is the best example of competing on low-cost leadership? A firm produces its product with less raw material waste than its competitors A firm offers more reliable products than its competitors A firm's products are introduced into the market faster than its competitors' products A firm's research and development department generates many ideas for new products A firm advertises more than its competitors Question 3

Which of the following is an example of globalization of operations strategy? Boeing's Dreamliner has engines with higher fuel/payload efficiency Ford's new auto models have dent-resistant panels A Chinese manufacturer, Haier, now operates plants in the United States Hard Rock Café provides an "experience differentiation" at its restaurants Porter Airlines focuses on short-haul flights Question 4

New trends in operations management include global focus mass customization empowered employees rapid product development All of the above are new trends in operations management Question 5

Which of the following is true about business strategies? An organization should stick with its strategy for the life of the business All firms within an industry will adopt the same strategy Well defined missions make strategy development much easier Strategies are formulated independently of SWOT analysis Organizational strategies depend on operations strategies Question 6

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is referred to as mass production time-based competition competing on productivity competing on flexibility competing on differentiation Question 7

Which of the international operations strategies involves a focus on high cost reductions and low local responsiveness? international strategy global strategy transnational strategy multidomestic strategy transdomestic strategy Question 8

The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to productivity? It has not changed It has increased by 37.5 boxes/hr It has increased by 20% It has decreased by 8.3%. It has decreased by 9.1% Question 9

Which of the following statements about process choice is BEST? A batch process typically has a standard sequence of operations through the facility Automobiles and appliances are examples of products created using a continuous flow process Continuous flow processes are very capital intensive A custom cake operation is an example of a batch process Question 10

One of the similarities between process focus and mass-customization is the volume of outputs the process layout the standard cost the variety of outputs location of facilities Question 11

A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labour productivity can be increased by 20%, it would then be 24 covers/hr 240 covers/hr 1200 covers/hr 14.4 covers/hr 144 covers/hr Question 12

One of the similarities between repetitive focus and mass customization is the wide variety of outputs module inputs the process layout the standard cost the high volume of outputs Question 13

Which of the following company(ies) use a mass customization approach? Dell and Arnold Palmer Hospital

Align Technology Frito-Lay Arnold Palmer Hospital and Frito-Lay Dell and Align Technology Question 14

Which of the international operations strategies involves a focus on low cost reductions and high local responsiveness? international strategy global strategy transnational strategy multidomestic strategy transdomestic strategy Question 15

All of the following decisions fall within the scope of operations management except for design of goods and processes location of facilities creating the company income statement managing quality layout of facilities Question 16

Standardization is an appropriate strategy in which stage of the product life cycle? introduction growth maturity decline retirement Question 17

Which is not true regarding differences between goods and services? Most goods are common to many customers; services are often unique to the final customer Services tend to have a more inconsistent product definition than goods

Services tend to have higher customer interaction than goods Goods can be inventoried; services are not easily inventoried Tangible goods are generally produced and consumed simultaneously; services are not Question 18

Which of the following nets the largest productivity improvement? increase output 15% decrease input 15% increase both output and input by 5% increase output 10%, decrease input 3% decrease input 10%, increase output 3% Question 19

A company is considering two options for the production of a part needed downstream in the manufacturing process. Particulars are as follows: Fixed Costs = $9,000 / month Fixed Costs = $3,000 / General automation: month Specialized automation

Variable Cost / Unit = $2 Variable Cost / Unit = $5

What is the monthly break-even quantity for choosing between the two automation approaches? 1,000 units 2,000 units 6,000 units 12,000 units Question 20

Standardization is an appropriate strategy in which stage of the product life cycle? introduction growth maturity decline retirement

Question 21

A firm's product is in the maturity stage of its life cycle. Which of the following OM strategies or issues should the firm be least concerned with at this time? increasing capacity long production runs standardization cost cutting fewer rapid product changes Question 22

Which of the following statements about organizational missions is false? They reflect a company's purpose They indicate what a company intends to contribute to society They are formulated after strategies are known They define a company's reason for existence They provide guidance for functional area missions Question 23

Cost minimization is an appropriate strategy in which stage of the product life cycle? introduction growth adolescence decline Retirement

Question 24

Flexible equipment with rapid changeovers is most closely associated with which approach? product process mass customization repetitive continuous

Question 25

A job shop is an example of a(n) repetitive process continuous process line process intermittent process specialized process Question 26

Before establishing and implementing strategy, a resources view would ensure that which of the following resources is/are available financial physical human technological all of the above Question 27

High fixed costs and low variable costs are typical of which approach(es)? product and process process mass customization repetitive product and mass customization

Question 28

Which of the following is sometimes called mass production? batch process and make-to-order strategy line process and make-to-stock strategy continuous flow process and assemble-to-order strategy job process and make-to-order strategy Question 29

Which of the following tasks within an Airline Company are related to Operations? Crew Scheduling

International Monetary Exchange Sales Advertising Accounts Payable Question 30

A company is considering two options for the production of a part needed downstream in the manufacturing process. Particulars are as follows: Fixed Costs = $9,000 / month Fixed Costs = $3,000 / General automation: month Specialized automation

Variable Cost / Unit = $2 Variable Cost / Unit = $5

For a monthly volume of 3,000 units, which automation approach should be chosen? specialized automation general automation Either approach is acceptable, because costs are the same for either option at 3,000 units Can't be determined with information given...