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1

INCORRECT

Historically in most manufacturing organizations, operations was viewed as an internal function that is buffered from the external environment. A)True B)Fals e

2 CORRECT

Recently, there has been a decline in the interest in operations management. A)True B)Fals e

3 CORRECT

The strategic issues of OM are broad in nature including how much capacity should be acquired. A)True B)Fals e

4 INCORRECT

Warehousing OM transformations are referred to as exchange transformations. A)True B)Fals e

5 INCORRECT

Who developed the use of standardization in large-scale mass production using a moving assembly line? A)Frederick Winslow Taylor B)Frank Gilbreth C)Adam Smith D)Charles Babbage E)Henry Ford

6 INCORRECT

Which of the following is NOT associated with the work of Taylor? A)A one-best way of doing things. B)The hierarchal needs of labor. C)The scientific method. D)Clear distinctions between the responsibilities of labor and management.

7 INCORRECT

Match the transformations: 1. exchange A. manufacturing 2. physical B. making a sick person well 3. physiological C. retailing 4. storage D. warehousing A)1C, 2A, 3D,

4B B)1D, 2A, 3C, 4B C)1A, 2B, 3D, 4C D)1B, 2C, 3D, 4A E)1C, 2A, 3B, 4D

8 INCORRECT

Which of the following is NOT an OM tactical issue? A)How many workers do we need? B)Where do we locate the facility or facilities? C)When should we have material delivered? D)Should we work overtime or put on a second shift?

9 CORRECT

Which of the following is NOT an example of the shift of power from producers to consumers? A)increasingly higher quality products B)a focus on shorter delivery times C)less emphasis on reducing labor and material costs D)better utilization of facilities

10 CORRECT

Higher productivity derived from efficient operations leads to A)more expensive goods and services B)lower quality goods and services C)higher discretionary incomes for consumers D)increased dependence on expensive labor

11 INCORRECT

Which of the following is consistent with contemporary operations management? A)limitation of expensive aluminum recycling efforts B)raw waste disposal into waterways in acceptable quantities C)restricting air pollutant production to areas where pollution is normal D)replanting of forest land to reduce erosion

12 CORRECT

Which of the following best describes the concept of the value chain? A)adding financial value to an organization through the acquisition of other firms B)the step-wise increases in product prices as raw materials are turned into goods/services C)the steps in manufacturing that add value to finished products D)all steps in the transformation process that add value even if

they don't come from manufacturing

The correct answer for each question is indicated by a

.

1 CORRECT

Corporate strategy refers to the overall strategy of the firm. A)True B)Fals e

2 CORRECT

Operations strategy can be divided into two major categories, structural elements and infrastructural elements. A)True B)Fals e

3 CORRECT

The four basic competitive priorities are cost, quality, delivery and flexibility. A)True B)Fals e

4 CORRECT

Service warranties are becoming more important as order winners. A)True B)Fals e

5 INCORRECT

Operations management divides decisions into three broad categories. They are: A)Strategic, operational and financial B)Personnel, financial and operational C)Strategic, tactical and operational planning and control D)Planning, tactical and control E)Planning, organizing and financial

6 INCORRECT

Which of the following has been added most recently to the four basic competitive priorities? A)Service B)Cost C)Quality D)Delivery E)Flexibility

7 INCORRECT

According to the authors, which of the following is becoming the newest competitive advantage? A)Service B)Delivery C)Cost D)Quality E)Environmental friendliness

8 INCORRECT

A market segmentation strategy refers to A)Selling to everyone in a particular geographic area B)Satisfying the needs of a particular market niche C)Offering products/services that differ significantly from the competition D)Offering a wide variety of products/services in a particular area

9 INCORRECT

If the perceived customer value is measured as the ratio of Total Benefits/Total Costs, a customer feels 'ripped off' if the ratio is A)<1 B)>1 C)=1

10 CORRECT

Davis and Meyer (Blur) indicate three factors that are changing the way we do business today. The factors are: A)Location, cheap labor, just-intime systems B)Connectivity, speed, and intangibility C)Cost, quality, and flexibility D)Financial capital, marketing, and transportation

11 INCORRECT

With respect to the Customer's Activity Cycle (CAC), a firm's position in the marketplace is strongest if it is involved in A)The pre-purchase activities B)The purchase activities C)The post-purchase activities D)All of these activities

12 CORRECT

A service that consists of specific functions that are part of the product itself is called a(n)

A)Embedded service B)Comprehensive service C)Integrated solution D)Distribution control The correct answer for each question is indicated by a .

1 INCORRECT

Ford's Model T car, nylon fabric, and Xerox copiers were examples of breakthrough products when they were introduced. A)True B)Fals e

2 INCORRECT

In designing for manufacturability, it is desirable to keep the number of individual parts to a minimum. A)True B)Fals e

3

CORRECT

A service-system design matrix helps in relating sales opportunity with production efficiency, as contact with the customer goes up, production efficiency goes down. A)True B)Fals e

4 CORRECT

In services, service production and consumption are often simultaneous. A)True B)Fals e

5 INCORRECT

A jail is given as an example of a: A)Facilities-based service business B)Field-based business C)Internal service business

6 INCORRECT

Which one of the following could best be run as an internal services system? A)A university billing office B)A dance studio C)A branch office of a professional employment agency D)A movie theater

7 INCORRECT

Which of the following types of processes will be used to produce gasoline and petroleum products? A)Job Shop B)Batch C)Assembly Line D)Continuous Processing E)Project

8 CORRECT

The product-process matrix illustrates that for firms operating above the diagonal, there is A)Greater flexibility, higher cost B)Less flexibility, lower cost C)Greater flexibility, lower cost D)Less flexibility, higher cost

9 CORRECT

Which of the following is a major reason for the significant increase in foreign competition? A)Advances in telecommunications B)A trend toward higher trade barriers C)Fewer numbers of trade organizations D)Increased tariffs on foreign goods

10 INCORRECT

Which of the following factors contributes to successful product design? A)Using engineers/designers exclusively in the design phase B)Eliminating prototype development as a part of the design phase C)Ignoring quality, cost, and delivery issues in the design phase D)Surprising the customer with extra features

11 INCORRECT

A new service with a high degree of content change and a high degree of delivery change is categorized as A)Breadth of offering B)Revolutionary C)Window dressing D)Channel development

12 INCORRECT

What is the correct order for the stages of the new service development process? 1. design 2. full launch 3. development 4. analysis A)1, 2, 3, 4 B)1, 4, 3, 2 C)4, 1, 3, 2 D)4, 3, 1, 2

The correct answer for each question is indicated by a

.

1 INCORRECT

The work breakdown structure is used to identify tasks to be performed in a project. A)True B)Fals e

2 INCORRECT

The two main components in project management are behavior of people and the technology of the method. A)True B)Fals e

3 CORRECT

Resources from one parallel activity can rarely be transferred to the other parallel activity. A)True B)Fals e

4 CORRECT

The Beta distribution is always the best distribution for estimating the distribution of activity times. A)True B)Fals e

5 INCORRECT

In CPM charts A)Squares designate events, arrows designate activities

B)Circles designate events, arrows designate activities C)Circles designate activities, arrows designate nodes D)Circles designate activities, arrows designate precedence

6 INCORRECT

The earliest expected completion date of the project is which of the following? A)27 B)19 C)17 D)15 E)12

7 INCORRECT

The variance for activity C is which of the following? A)4 B)2 C)1/3 D)1/6 E)1/9

8 CORRECT

The variance of the critical path is which of the following? A)1/9 B)1/3 C)2/3 D)1/6 E)4/9

9 INCORRECT

The EF for activity C is which of the following? A)4 B)13 C)15 D)17 E)27

10 INCORRECT

The activity slack for activity D is which of the following? A)0 B)4 C)12 D)13 E)17

11 INCORRECT

Which of the following is a major difference in managing projects as opposed to managing ongoing processes? A)Project teams are permanent B)Projects are typically managed with the organization's formal structure C)Projects require flexibility because they are not repeated D)Project tasks can always be perfectly defined

12 CORRECT

Which of the following would NOT be considered a crash cost? A)Overtime pay B)Vacation pay C)Special shipping costs

D)Pay for extra labor The correct answer for each question is indicated by a .

1 CORRECT

Advances in technology are affecting every aspect of business, except operations management. A)True B)Fals e

2 CORRECT

To properly integrate technology into an organization, managers must recognize the capabilities and shortcomings of that technology. A)True B)Fals e

3 INCORRECT

The traditional tradeoffs between operations strategies are no longer valid due to improvements in technology. A)True B)Fals e

4 INCORRECT

Successful implementation of new technology never requires you to train your customers. A)True B)Fals e

5 INCORRECT

To properly integrate new technology into their organization, a firm should realize A)that there are no limitations on the usefulness of that technology B)that customer training in the use of the technology will typically be unnecessary

C)that customer 'fear of the unknown' is still a real issue D)that it will only work for tangible products

6 CORRECT

An operation where machine tools are changed automatically are known as A)a machine center B)computer integrated manufacturing C)a flexible manufacturing system D)computer-aided design

7 INCORRECT

Integration of all aspects of manufacturing through computers is known as A)using machine centers B)computer integrated manufacturing C)a flexible manufacturing system D)computer-aided design and manufacturing

8 CORRECT

A software system providing a common software infrastructure and database is called A)enterprise resource planning B)supply chain management C)new product development D)customer relationship management

9 INCORRECT

ERP is an outgrowth of A)MRP B)EDI C)JIT D)CRM

10 INCORRECT

One of the current technology trends in services is A)the growth of full-service operations B)the increased importance of location C)the shift away from time-dependent transactions D)decreases in disintermediation

11 INCORRECT

A key consideration for integrating new technology into services is A)the potential for slower service B)the lack of knowledge about customers associated with the new technology C)the inability to offer a wide variety of services D)the potential for labor cost reduction

12 INCORRECT

The most secure way of providing information to people within an organization is the use of which type of e-service network? A)internet B)intranet C)extranet D)EDI

The correct answer for each question is indicated by a

.

1 INCORRECT

Every set of activities represents a process that needs to be managed. A)True B)Fals e

2 INCORRECT

"If you can't measure it, you can't manage it." A)True B)Fals e

3 CORRECT

Competitive benchmarking involves comparing an organization's performance with that of its best competitors. A)True B)Fals e

4 CORRECT

Reengineering means literally starting from the beginning with a clean sheet of paper. A)True B)Fals e

5 CORRECT

Which of the following is NOT a characteristic of a reengineering process. A)Small incremental changes. B)Several jobs are combined into one. C)Workers make decisions. D)Work is performed where it makes most sense.

What is the sequence of steps used in service blue printing?

6 INCORRECT

1. 2. 3. 4.

Isolate fail points Establish a time fence Analyze profitability Identify the process A)1-2-3-

4 B)4-1-23 C)2-4-13 D)3-2-14

7 INCORRECT

A business process is a logical set of tasks or activities that A)Are specific to the operations function B)Are specific to the marketing function C)Are interdependent with other processes D)Have exactly the same performance measures for any kind of process

8 INCORRECT

The degree of detail that is used in business process analysis is often referred to as A)Functional benchmarking B)Modularization C)Utilization D)Granulation

9 INCORRECT

Performance measures concerned with specific work processes that are virtually the same for all industries refer to A)Internal benchmarks B)Competitive benchmarks C)Functional benchmarks D)Generic benchmarks

10 INCORRECT

Agile manufacturing is most closely associated with A)Productivity B)Capacity C)Quality D)Speed E)Flexibility

11 INCORRECT

Relative productivity increases only if A)Your process outputs go up B)Your process inputs go down C)Your process outputs go up faster than your process inputs D)Your productivity goes up faster than your competition's

12 INCORRECT

Which of the following is NOT a classic process performance measure as

discussed in the book? A)Productivity B)Profitability C)Quality D)Flexibility

The correct answer for each question is indicated by a

.

1 INCORRECT

Sunk costs are expenses which have no effect on a decision and therefore, should not be taken into account in considering investment alternatives. A)True B)Fals e

2 INCORRECT

Depreciation refers to the allocation of cost due to deterioration of tangible assets. A)True B)Fals e

3 CORRECT

Activity-based costing allocates overhead costs using actual estimates of direct labor consumed by an activity. A)True B)Fals e

4 INCORRECT

The net present value refers to the total stream of payments that an asset will generate in the future discounted to the present. A)True B)Fals e

5 CORRECT

An asset is purchased at a $10,000 value. The estimated salvage value of the asset at the end of 10 years is $1,000 and the useful life is 10 years. Which of the following is the straight line depreciation sum? A)800 B)900 C)1000 D)1100 E)1200

6 INCORRECT

A cost that must be incurred if an investment is not made is a(n): A)Sunk cost B)Fixed cost C)Avoidable cost

D)Opportunity cost

7 CORRECT

A benefit foregone which results from choosing one investment over a better investment is an example of: A)Fixed costs B)opportunity costs C)avoidable costs D)semivariable costs

8 INCORRECT

Investment A has a payback period of 3 years and a present value of $40,000. Investment B has a payback period of 4 years and present value of $50,000. A)Investment A should be chosen. B)Investment B should be chosen. C)Both should be chosen with half invested in each. D)Neither should be chosen. E)It's a managerial decision with no clearly defined choice.

9 INCORRECT

Which of the following is NOT an underlying assumption of linear breakeven analysis: A)Selling price per unit is constant. B)Variable costs per unit remain constant. C)Fixed costs remain constant. D)The volume of units sold affects the per unit costs.

10

INCORRECT

If process 1 has fixed costs of $10,000 and variables costs of $50 per unit, and process 2 has fixed costs of $20,000 and variable costs of $30 per unit, what is the break-even point between these two processes? A)500 B)667 C)2,000 D)3,750 E)5,000

11 INCORRECT

Which of the following is NOT an economic investment decision? A)Purchasing new facilities B)Improving labor efficiency C)Make or buy D)Closing a plant

12 INCORRECT

Which of the following is NOT an Excel financial function?

A)Break-even B)Future value C)Net-present value D)Internal rate of return The correct answer for each question is indicated by a .

1 INCORRECT

The quality movement can trace its roots back to Walter Shewhart. A)True B)Fals e

2 CORRECT

In the US, the importance of quality in the success of an organization didn't begin to be recognized until the late 1970's. A)True B)Fals e

3 INCORRECT

External failure costs in quality refer to costs that are incurred after the product has been delivered to the customer. A)True B)Fals e

4 INCORRECT

Only Japanese firms can apply for the Deming Award. A)True B)Fals e

5 CORRECT

Which of the following firms has not won the Baldrige Award? A)Ford B)IBM C)Milliken and Co. D)Federal Express

6 CORRECT

Deming would argue that as much as 94% of poor quality is the responsibility of: A)Management B)The process C)Workers D)Engineering

7 INCORRECT

Which of the following is an example of a stereo amplifier's features? A)Signal-to-noise ratio

B)Remote control C)Mean time to failure D)Useful life

8 INCORRECT

Which of the following is an example of a stereo amplifier's durability? A)Signal-to-noise ratio B)Remote control C)Mean time to failure D)Useful life

9 INCORRECT

Which of the following is an example of a firm's reputation? A)Ease of repair B)Courtesy C)Oak-finished cabinet D)Consumer Reports ranking

10 CORRECT

ISO 9000 quality standards are targeted at organizations in A)America B)Japan C)Europe D)The international economic community

11 CORRECT

Which of the following is NOT consistent with the concept of TQM? A)Organizational leadership B)Quality control departments C)Continuous improvement D)Customer focus

12 INCORRECT

Which of the following is appropriate for Six Sigma quality? A)Defects per hundred B)Defects per thousand C)Defects per hundred thousand

D)Defects per million The correct answer for each question is indicated by a

.

1 CORRECT

The achievement of maximum capacity denotes a highly efficient process. A)True B)Fals e

2 INCORRECT

A GIS is a graph of a geographic area displaying demographics or other information to support decision making. A)True B)Fals e

3 CORRECT

Factor rating systems are the least frequently used of the techniques presented for plant location analysis. A)True B)Fals e

4 CORRECT

For manufacturers, the facility location problem can be categorized as factory location and warehouse location. A)True B)Fals e

5 INCORRECT

According to the authors, two reasons that capacity and location problems are interrelated are (choose the best answer): A)Increased networking and information needs B)The need for producers to locate near customers and the growth of the network firm C)Legal requirements and safety requirements D)Logistics and information needs

6 INCORRECT

The best operating level is: A)The maximum point of the cost curve B)The level of capacity for which average unit cost is minimized C)Maximum capacity D)The level of capacity for which total cost is minimized

7 INCORRECT

The capability to deliver what the customer want within a lead time shorter than the competitors is referred to as: A)Process flexibility B)Worker flexibility C)External flexibility D)Capacity flexibility E)Plant flexibility

8 INCORRECT

Long-range capacity planning should be the responsibility of: A)Analysis B)Middle management C)Top management

D)Marketing management

9 INCORRECT

Which of the following is NOT a method which is used in location analysis? A)linear Programming-transportation model B)best location method C)cost analysis D)center of gravity method

10 INCORRECT

Flexible workers are typically: A)Receive little training B)Stay on task C)Prefer standardized work assignments D)Better educated

11 INCORRECT

Which of the following is NOT a qualitative factor in location decisions? A)Local infrastructure B)Worker education and skills C)Product content requirements D)Exchange rates E)Political/economic stability

12 INCORRECT

A brick and mortar operation is A)A facility that deals directly with the customer B)A facility that deals indirectly with the customer C)A facility that has no contact with the customer D)Also known as a back-of-the-house operation

1._______ allows the manager to anticipate the future so then can plan accordingly. • Forecasting • Planning • Organizing • Leading 2. Forecasts are rarely perfect because of: • Internal factors • Randomness • External factors • All of the given options 3. Forecast accuracy ________ as time horizon increases. • Increases

• Decreases • Remains the same • None of the given options 4. __________ use explanatory variables to predict the future. • Judgmental forecasts • Time series forecasts • Associative models • All of the given options 5. All of the following are examples of judgmental forecasts except: • Executive opinions • Consumer surveys • Delphi method • Naïve forecasts 6. _________ requires completing a series of questionnaires, each developed from the previous one, to achieve a consensus forecast. • Naïve forecast • Time series analysis • Associative models • Delphi method 7. One of the drawbacks of naïve forecasts is: • Low accuracy • High cost • No ease at using • None of the given options 8. All of the following are responsible for irregular variations except: • Severe weather • Earthquake • Worker strikes • Cultural changes 9. _______ is a technique that averages a number of recent actual values, updated as new values. • Moving average • Weighted moving average • Simple moving average • Exponential smoothing 10. MAPE stands for: • Measure Actual Performance Error • Mean Absolute Percent Error • Mean Actual Percent Error • Mean Absolute Performance Error

1. a) b) c)

The prime determinants of choosing a sampling plan include: Cost Time Environment

d) Both cost and time 2. The ideal sampling plan requires ______ inspection of each lot. a) 100% b) 50% c) 10% d) 25% 3. As the lot quality decreases, the probability _________. a) Increases b) Decreases c) Remains neutral d) None of the given options 4. ________ represents maximum AOQ for a range of fractions defective. a) Acceptable Quality Level (AQL) b) Average Outgoing Quality Limit (AOQL) c) Lot Tolerance Percent Defective (LTPD) d) None of the given options 5. ___________ refers to intermediate range capacity planning, usually covering 2 to 12 months. a) Aggregate planning b) Moderate planning c) Long rang planning d) Short range planning 6. _________ is an optimizing technique that seeks to minimize combined costs, using a set of cost-approximating functions to obtain a single quadratic equation. a) Linear programming b) Linear decision rule c) Aggregate planning d) Lot Tolerance Percent Defective (LTPD) 7. ________ takes physical count of items at periodic intervals. a) Periodic inventory system b) Perpetual inventory system c) Two-bin system d) Universal bar code system 8. _______ refers to the cost to carry an item in inventory for a length of time. a) Shortage cost b) Ordering cost c) Holding cost d) None of the given options

9. Inputs to MRP include all of the following except: a) Master schedule plan b) Bill of materials c) Inventory records d) Control charts 10. ________ represents the process of determining short-range capacity requirements. a) Capacity requirements planning b) Aggregate planning c) Capacity planning d) Schedule planning

1.

Which of the following activities is unnecessary ,when an organization decides to design its new product or service or refine its existing product or service: a Translate customer wants and needs into product and service requirements b Refine existing products and services c Develop new products and services d Manage the purchasing activities religiously and diligently.

2.

While focusing on capacity planning, organizations look for which of the following alternatives. a. b. c. d. How much will it cost How much holidays the workers can enjoy. How much compensation they need to pay to their CEO. None of the above

3.

Which of the following is not one of the assumptions for Cost Volume Analysis a. b. c. d. One product is not involved Everything produced can be sold Variable cost per unit is the same regardless of volume Fixed costs do not change with volume

4.

Which of the following does not fall under Economic Production Quantity ( EPQ) a. b. c. d. Only two or more item are involved Annual demand is known Usage rate is constant Usage occurs continually

5.

Advantages of Process Layout Include a. b. c. d. Equipment used is less costly Low unit cost. Labor specialization. Low material handling cost

6.

Common types of Operations include a. Continuous Processing. b. Intermittent Processing. c. Automation

d. All of the above 7.

System performance is measured by a. Average number of customers being refused service b. Average time customers wait c. System utilization d. b and c. Inventory carrying costs are influenced by: a. Order Quantity in Units b. Holding carrying cost per unit. c. Demand d. a and b only.

8.

9.

Bar coding helps in determining the : a. Status of the inventory of an item in warehouse b. Price of the product c. Size of the lot as well as the size and specifications of the product d. All of the above

10.

Therbligs are basic elemental motions which include: a. Search b. Select c. Throw d. a and b only

11. 12. 13. 14. 15. 16. 17.

Key issues in inspection include where to inspect, how often to inspect and whether to inspect on site or in a lab. Total Quality Management TQM has two important aspects first being problem solving and second being process improvement Sampling Plans specify lot size, sample size, number of samples and acceptance/rejection criteria. Aggregate planning establishes general level of employment, output and inventories for periods of 2 to 12 Months. Master schedule is prepared by desegregating the Aggregate Plan. Inventory levels must be carefully planned in order to balance the Holding Costs of inventory and cost of providing levels of customer service Economic Order Quantity (EOQ) and Economic Production Quantity (EPQ) make use of the same set of assumptions except orders are received incrementally during production. .

18. 19.

To be successful MRP requires a computer program, accurate master schedule, bills of material, and inventory data. Manufacturing Resources Planning (MRP II) and Enterprise Resource Planning (ERP) are natural extensions of MRP, which cover broader scopes as well as Supply Chain Managements.

20.

Process Layouts group similar activities into departments or other work centers.

21. 22. 23.

Fixed Position Layouts are used when size, fragility, cost or other factors make it undesirable or impractical to move a product through a system. The design of work systems involves job design, work measurements and compensation The primary location options available to an existing organization include expanding the existing location, move to a new location, maintain existing facilities while adding additional facility or do nothing.

24.

Most organizations are influenced by location of raw materials, labor supply, market considerations, community related factors, site related factors and climate.

25. 26. 27.

ISO 9000 and ISO 14000 represent quality standards and environment standards respectively. Two basic tools of process control are control charts and run tests. The decision to shift or convert from Traditional Manufacturing System to Just in Time or Lean Systems could be sequential in order to help management have better control, first hand learning experience and more time for conversion from one system type to another.

28. 29. 30.

The ultimate goal of a Just in Time System is to achieve a balanced, smooth flow of production. Logistics involve movement of materials to and from the organization including shipment and distribution. Electronic Data Interchange has increased productivity and accuracy in Supply Chain Management Systems.

Virtual University of Pakistan
Production Operations Management MGT 613 Quiz 01 Solution
Fill in the Blanks 1. strategy that focuses on reduction of time needed to accomplish tasks is called

time based strategy
2. Mission is the reason for existence of an organization 3. Judgmental forecasts are the forecasts that use subjective inputs such as opinions from consumer surveys, sales staff, managers, executives and experts. 4. A long term upward or downward movement in data is called trend 5. The forecast for any period that equals the previous period’s actual value is called naive forecast 6. A decision tree is a schematic representation of the available alternatives and their possible consequences. 7. A measure of the effective use of resources, usually expressed as the ratio of output to input is called productivity 8. The ability to adapt quickly to changes is called flexibility 9. The operations function involves the conversion of inputs into output 10. The considering of events and trends that present threats or opportunities for a company are called environmental scanning 1. -------------------- is the maximum output rate or service capacity an operation, process or facility. a. Efficiency b. Effective Capacity c. Design Capacity 2. -------------- is the rate of output actually achieved.

a. Actual Output b. Design Capacity c. Utilization 3. A knowledge of economies and diseconomies of scale is ----------a. Important for operations manager b. Not Important for operations manager c. It makes no difference 4. If the output rate is less than the optimal level, increasing output rate results in -------------------- average unit cost a. Increasing b. Decreasing c. Stabilizing 5. As the output is increased, the unit cost is decreased because a. Of external factors b. Because there are more units to absorb the fixed costs c. None of the above 6. as the general capacity of the plant increased, the optimal output rate increases and the minimal cost for the optimal rate a. Decreases b. Increases c. It has no effect with the output rate 7. The primary purpose of cost- volume analysis is a. To estimate the income of an organization b. To analyze initial costs incurred under different operating conditions c. Both A and B 8. variable costs vary ---------------- with volume of output a. Inversely b. Directly 9. -------------- refers to the way, an organization chooses to produce its goods or services a. Process selection b. Capacity planning c. Cost volume analysis 10. Ice cream is an example of a. Batch processing b. Job shop c. Repetitive processing

Fill in the blanks.
1. Eliminating the disruptions and making the system flexible are __________goals of the JIT. (supporting) 2. Incremental Holding Cost incurred by using slower alternative is computed through Incremental Holding Cost =________________.( H*(d/365) ) 3. One of the basic elements of the Supply Chain Management is ____________ for evaluating suppliers and supporting operations.( purchasing)

4. CPFR stands for______________________________.(Collaborative Planning Forecasting and Replacement) 5. ________________reflects company’s efforts to achieve response from EDI and bar codes.(Efficient Consumer Response(ECR) ) 6. The rate at which inventory goes through the supply chain is ____________(Inventory velocity) 7. In ____________we establish the timing of the use of equipment, facilities and human activities in an organization.( Scheduling) 8. Scheduling for high-volume flow system is referred to as _______________. (Flow-shop Scheduling) 9. ____________ is used as a visual aid for loading and scheduling.(Gantt chart) 10. Executive responsibilities, project selection, project manager selection, and organizational structure are major administrative issues of _________________. (Project Management)

QUIZ # 01 MGT-613 PRODUCTIONS & OPERATIONS MANAGEMENT INSTRUCTIONS:
You are required to put answers in the following format. Solutions not following this format will be marked as ‘ZERO’. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. B B C C C B C C D B 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. C B A C C A D B B B

Question:

Highlight the correct options.

1. ________ is a procedure for acquiring informed judgments and opinions from knowledgeable individuals to sue as subjective forecast.

a. Naïve forecasting method b. Delphi method c. Associative method d. Judgmental forecasting 2. ______ is an oscillating movement in demand that occurs periodically in the short run and is repetitive.

a. Trend b. Seasonal pattern c. Cyclic pattern d. Irregular pattern 3. ________ is an averaging method of forecasting which weights the most recent data more strongly than the distant data.

a. Linear regression b. Moving average c. Exponential smoothing d. Adjusted exponential smoothing 4. Which of the following demand pattern does not define any underlying time pattern of demand of product / service

a. Horizontal demand

b. Systematic demand c. Random variation d. Repeatable pattern variation 5. Which of the following is forecasting method which relies on historical demand data and recognizes trends and seasonal patterns?

a. Judgmental methods b. Regression methods c. Time series methods d. Averaging methods

6. ______ are the characteristics of products and services that qualify it to be considered for purchase.

a. Order winner b. Order qualifier c. Order runner d. Order competitor 7. In automotive industry, high quality has become an order ____ and innovative design is order ________ .

a. Winner, Qualifier b. Winner, Runner c. Qualifier, Winner d. Qualifier, Runner

8. Which of the following includes the ability of organization to produce a wide variety of products, to introduce new products and modify existing ones quickly?

a. Organization’s standardization b. Organization’s agility c. Organization’s flexibility d. None of the above 9. In decision trees, Circular nodes represent which of the following?

a. Decision points b. Alternatives c. Consequences d. None of the above 10. In decision tree, ‘Branches’ should be read from:

a. Right to left b. Left to right c. Center to left d. Center to right

11. Which of the following is the Second step in forecasting process?

a. Identification of forecasting purpose b. Selecting a forecasting model c. Collecting historic data

d. Identification of demand pattern 12. Which of the following is a schematic model of alternatives available to the decision maker along with possible consequences and alternatives?

a. Decision making model b. Decision tree c. Decision preference matrix d. None of the above

13. A textile company is contemplating the future of one of its plants. Following payoff table describes the situation:

Decision To expand To maintain status quo To sell now

State of Nature Good conditions Rs. 800,000 1,300,000 320,000 Poor conditions 500,000 -150,000 320,000

Under Minimax-regret criteria, what would be the decision makers decision would be? . a. To expand b. To maintain status quo c. To sell plant d. Decision would be made using some other criterion

14. Mr. A determined that his service employees have used a total of 2400 hours of labor this week to process 560 insurance forms. Last week the same crew used only 2000 hours of labor to process 480 forms. Which productivity measure should be used?

a. Total productivity measure b. Partial productivity measure c. Both a and b d. None of the above 15. An operations and supply strategy is concerned with which of the following?

a. Setting specific policies and plans b. Short term competitive strategies c. Coordination of operational goals d. All of the above 16. A travel agency processed 240 customers on Day 1 with a staff of 12, and 360 customers the on Day 2 with a staff of 15. What can be said about the productivity shift from Day 1 to Day 2?

a. An increase in productivity from Day 1 to Day 2 b. A decrease in productivity from Day 1 to Day 2 c. The same productivity from Day 1 to Day 2 d. Can not be computed from data above

17. Which of the following behaviors is exhibited by a time series having an up-and-down movement in a variable that repeats itself over a long period of time?

a. Random variation

b. Trend c. Seasonality d. Cycle

18. Which one of the following reasons account for using moving average in forecasting?

a. It eliminates the trend

b. It smoothes the random fluctuations c. It counteracts the seasonal variations d. It approximates the period average

19. Which of the following statements corresponds to an order-winning characteristic?

a. A factor which may be significant in other parts of the organization b. A factor which gives an organization a competitive edge c. A factor which serves as a minimum standard for purchase d. A factor which increases the profitability of the organization

20. Which of the following is a characteristic of linear regression?

a. It is superior to a moving average b. It is a causal forecasting model c. It compensates for both trend and seasonal variations in demand

d. It is superior to a exponential smoothing

BEST OF LUCK!

1. d 2. a 3. c 4. b 5. b 6. b 7. a 8. c 9. b 10. d

11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

a c b d b a d b a c

1. Which one of the following is the overall objective of product and service design? a) Customer satisfaction and variety b) Reliability and variety c) Quality and reliability d) Customer satisfaction and profitability 2. Which one of the following statements is true about OSHA? a) To safeguard against potential hazards b) To develop cost effective processes c) To implement legal standards d) To carry out implication of manufacturability and fitness 3. Which one of the following is the most significant disadvantage of standardization? a) Frozen designs b) Interchangeable parts c) Reduced variety d) Customized parts

4. Which one of the following is the final stage of product life cycle? a) Growth b) Decline c) Maturity d) Planning 5. _______________ is the bringing together of engineering design and manufacturing personnel early in the design phase. a) Reverse engineering b) Concurrent engineering c) Manufacturability d) Serviceability 6. Robustness of a product is _____________ related with the probability of failure. a) Directly b) Inversely c) Linearly d) Positively 7. Which one of the following mathematical expressions can be used to compute availability? a) (MTBF)/ (MTBF+MTR) b) (MTBF)/ (MTBF‐MTR) c) (MTR)/ (MTBF+MTR) d) (MTR)/ (MTBF‐MTR) 8. A product ‘A’ is specified to work well up to 30 degree Celsius temperature and 30% humidity. What would these specifications represent? a) Reliability factor b) Standard conditions c) Normal operating conditions d) Standard operating procedure 9. Which one of the following is a curve showing failure rate over time? a) Cost curve b) Bath tub curve c) Fish bone diagram d) Reliability curve 10. The frequency of capacity choice decisions is influenced by all of the following factors EXCEPT: a) Stability of demand b) Technological changes c) Competitive forces d) Cost factor 11. Which one of the following refers to the maximum output that a firm can produce under ideal conditions? a) Design capacity b) Effective capacity c) Capacity planning d) Utilization rate 12. The process selection should take into account all of the following EXCEPT: a) Capacity planning b) Design of work systems

c) Production forecasts d) Selection of technology 13. The type of processing structure that is used for producing discrete products at higher volume is: a) Continuous Flow b) Assembly Line c) Batch d) Job Shop 14. The type of processing structure that is used to produce gasoline, chemicals, and steel is known as. a) Job Shop b) Batch c) Assembly Line d) Continuous Flow 15. In which of the following layouts, work stations are arranged according to the general function they perform without regard to any particular product? a) Product b) Process c) Fixed‐position d) Storage 16. Which one of the following is the correct order of layout types from low volume/high variety to high volume/low variety? a) Fixed position, process, cell, product b) Fixed position, cell, process, product c) Fixed position, process, product, cell d) Process, fixed position, cell, product 17. Which one of the following statements is NOT correct about cycle time? a) It represents daily operating time divided by desired production b) It is the maximum allowable time at each work station c) It determines the time often items take to roll off in assembly line d) It is the time required to complete a product from start to finish 18. What would be the required cycle time for a process that operates 9 hours daily with a desired output of 300 units per day? a) 0.03 minutes b) 1.8 minutes c) 2700 minutes d) 33.33 minutes 19. What would be the output capacity if an assembly line operates for 7 hours per day with a cycle time of 2.0 minutes? a) 210 units per day b) 3.5 units per day c) 0.004 units per day d) 14 units per day 20. Which one of the following is TRUE about work sampling?

a) It describes individual human motions that are used in a job task b) It involves determining the length of time it will take to undertake a particular task c) It involves determining the amount of time a worker spends on various activities d) It providing standard times for micro motions such as reach, move and release

1. All of the following are the major factors affecting design strategy except: • Cost • Market • Time-to-market • Revenue 2. All of the following are the primary reasons for design process except: • Economic • Social and demographic • Political, liability, or legal • Personal 3. ______ refers to a manufacturer being liable for an injury or damage caused by a faulty product. • Product liability • Manufacturer’s liability • Organizational liability • All of the given options 4. _________ is the postponement tactic. • Product differentiation • Delayed differentiation • Service differentiation • All of the given options 5. The situation in which a product, part or system does not perform as intended is referred to as: • Reliability • Durability • Failure • Maturity 6. DFA stands for: • Design for Assurance • Design for Accuracy • Design for Authenticity • Design for Assembly 7. Taguchi approach helps in determining: • Controllable factors only • Un -controllable factors only • Both controllable factors and un -controllable factors • None of the given options 8. ________ is the bringing together of engineering, design and manufacturing personnel together early in the design phase.

• • • •

• Robust design • Concurrent engineering • Canabalization • Design for Manufacturing (DFM) 9. Reliability can be measured effectively by using: • Probability • Durability • Failure • Forecasting 10. _____________ determines the best possible outcome. • Maximum • Minimax • Maximax • Laplace 11. Decision tree is analyzed from: • Left to right • Right to left • Any side • All of the above 12. Judgmental forecasts include all of the following except: • Executive opinion • Consumer surveys • Delphi method • Regression analysis 13. In order to design a new product or service, an organization takes into account: • External factors • Internal factors •a&b • Economic, social and demographic conditions 14. FDA, OSHA and CRS resolve: • Legal issues • Political issues • Ethical issues • Environmental issues 15. Design that results in products or services that can function over a broad range of conditions is called: Computer Aided Design Robust design Design for remanufacturing Modular design 16. Which of the following is wrong with respect to Naïve forecast? • Quick and easy to prepare • Provides high accuracy • Simple to use • Can be a standard for accuracy 17. Steps in CPFR include all of the following except:

• Creation of a front end partnership agreement • Sharing forecast • Inventory replenishment • Development of supply forecasts 18. Identify the right sequence in product or service life cycle. • Introduction, Maturity, Growth, Decline, Saturation • Introduction, Growth, Maturity, Saturation, Decline • Introduction, Growth, Saturation, Maturity, Decline • Introduction, Saturation, Growth, Maturity, Decline 19. In the absence of enough time, ________ forecasts are preferred. • Qualitative • Quantitative • Naïve forecasts • None of the given options 20. ___________ are based on samples taken from potential customers. • Executive opinion • Consumer surveys • Delphi method All of the given options

1. The goal of Total Quality Management is: a) Customer satisfaction b) Product differentiation c) Brand equity d) Acting globally 2. The most common form of quality control includes: a) Planning b) Organizing c) Inspection d) Directing 3. Process selection is primarily considered during: a) Planning b) Organizing c) Leading d) Controlling 4. The type of operation being carried out by an organization depends upon: a) Degree of standardization b) Volume of output c) Demand d) Both (a) and (b) 5. Repetitive processing results in output that is: a) Highly standardized b) Highly customized c) Partially customized d) None of the given options 6. Job shop and batch processing are differentiated on the basis of: a) Job requirements b) Degree of standardization

a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b)

c) Volume of output d) Both (b) and (c) 7. Automation is preferred because it: a) Offers lesser dependence on workers b) Results in reduction in variable cost c) Offers easy handling of repetitive work d) All of the given options 8. Product layout is preferably used for: Repetitive processing Intermittent processing Both (a) and (b) Neither (a) nor (b) 9. Process layout is used for: Repetitive processing Intermittent processing Both (a) and (b) Neither (a) nor (b) 10. The most significant advantage of U-shaped layout is: Cost minimization Easy handling of process Increased flexibility in work All of the given options 11. The goal of motion study is to achieve: Cost minimization Maximum efficiency Profitability All of the given options 12. Location decisions are viewed primarily as part of: Marketing strategy Growth factors Financial aspect Both (a) and (b) 13. Regional factors for location planning include all of the following except: Raw materials Markets Labor considerations Attitudes 14. Transportation method is a __________ approach. Quantitative Qualitative Scientific All of the given options 15. Fredrick Taylor’s concern for quality includes: Product inspection Gauging system Statistical control chart Both (a) and (b) 16. Kaoru Ishikawa is famous for: Statistical quality control Fish bone diagram

c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d)

Loss function concept All of the given options 17. Poor quality adversely affects: Costs Productivity Profitability All of the given options 18._________ is intended to assess a company’s performance In terms of environmental performance: ISO 14000 ISO 9000 Six sigma All of the given options 19. The purpose of ISO 9000 is to: Promote quality standards to improve efficiency and productivity Earn high profit Avoid unfavorable outcomes Gain high market share 20. A product performing consistently refers to which of the following dimensions of quality: Safety Conformance Durability Reliability