Professional Documents
Culture Documents
1. Operations Management is responsible for increasing the organization’s efficiency, which means the
2. What are long-term decisions that set the direction for the entire organization called?
a) tactical
b) operational
c) directional
d) distant
e) strategic
3. A key feature of scientific management is that workers are motivated only by __________________.
a) love
b) power
c) challenging work
d) money
e) fame
4. Which of the following would not be considered a core competency that a company might have?
a) process technology
b) information technology
c) environmental technology
d) safety technology
e) product technology
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6. A company’s product design supports it business strategies by
7. With respect to competitive priorities, intermittent operations compete more on _______________ compared
to repetitive operations.
8. The time between order placement and the receipt of goods is called _____________________________.
a) receipt time
b) lead time
c) allowance time
d) processing time
e) waiting time
a) Backward integration
b) Horizontal integration
c) Encapsulating integration
d) Forward integration
e) Subsuming integration
10. The definition of quality that involves the product functioning as expected without failure is
a) Performance
b) Conformance
c) Reliability
d) Standardization
e) Endurance
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11. Employees of the organization who receive goods or services from others in the company are
a) Internal customers
b) Ultimate customers
c) Downstream customers
d) Operators
e) External customers
12. Costs of quality inspections, testing, test equipment, and labs are examples of costs.
a) Internal failure
b) External failure
c) Appraisal
d) Prevention
e) Replacement
a) continuous variation
b) intermittent random variation
c) proportion of items in a sample that are defective
d) the count of defective parts
e) proportion of items in a sample that are good
14. On a control chart, what separates common from assignable causes of variation?
a) x-bar lines
b) Control limits
c) Specification limits
d) Production limits
e) Mean divided by standard deviation
15. What is a control chart that monitors changes in the dispersion or variability of a process?
a) x-bar chart
b) R-chart
c) p-chart
d) c-chart
e) OC chart
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16. The broad view of JIT is now often termed __________________________.
a) vendor-managed inventory
b) business process reengineering
c) lean production
d) cycle time management
e) e-distribution
a) 100 or fewer
b) N= (DT (1+X))/C
c) The inverse of the carrying cost
d) One
e) The capacity of the factory
18. Something you would not expect to see in a just-in-time work environment is
a) Order
b) Clutter
c) Ample space
d) Tools in their place
e) Cleanliness
19. At a factory, the transformation process is the physical change of raw materials and components into
products.
a) True
b) False
20. Companies that compete based on flexibility often cannot compete based on cost.
a) True
b) False
a) True
b) False
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22. Service organizations can also benefit from supply chain management.
a) True
b) False
23. In using quality function deployment, conducting focus groups is one way to find out precisely what
a) True
b) False
24. Upper and lower control limits are usually set at 6 standard deviations from the mean.
a) True
b) False
1. A firm produces 1500 units per day using four workers on a five-hour shift. On average, 12% of the
units produced are defective and must be scrapped. What is the labor productivity for non-defective
units?
2. Birdie Par owns a company that makes golf gloves. She is thinking about introducing a new glove,
which would require an additional fixed cost of $20,000 per year. The variable costs for the new glove
a) If she sells the new glove for $15, how many must she sell to break even?
b) If she sells 3,000 gloves at the $15 price, what will the contribution to profit be?
$45,000-$35,000 = $10,000
3. Insourcing incurs a fixed cost of $1000 and a $5 variable cost. Outsourcing incurs a fixed cost of