Quiz #1 Chapters 1 & 2
1. Operations Management:
a. is a network of manufacturing and service options.
b. is an essential function for primarily for-profit organizations.
c. is narrowly dedicated to a single corporate function.
d. focuses on decisions about the production and delivery of a firm’s products and
services.
i. Correct
e. prioritizes sustainability over profits.
Which of the following is a recent trend in business?
f. pollution control
g. total quality management
h. supply chain management
i. Correct - Supply chain management involves a broader systemic view of
operations.
i. competition from foreign manufacturers
j. technological change
2. Which of the following is NOT a characteristic of service operations?
a. Intangibility of the offering.
b. Simultaneous production and consumption.
c. No finished goods inventory.
d. Quality problems can always be fixed easily in the service sector.
i. Correct
e. Variation in service operations is greater than in manufacturing operations.
For an organization to grow its market share, it must:
f. advertise using multimedia
g. lower prices
h. exceed minimum standards of acceptability for its products or services
i. Correct - Only by exceeding standards can an organization grow its market
share.
i. establish an internet website
j. broaden its mission statement
3. Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels
each 8-hour shift. If the production is increased to 1,200 pretzels each shift, then
productivity will have increased by:
a. 50%
i. Correct - Divide the difference in productivity by the original productivity.
b. 33%
c. 25%
d. 67%
4. A basic question in capacity planning is:
a. what kind is needed
b. how much is needed
c. when is it needed
d. all of the above
i. Correct - Type, quantity and timing are the essential elements of the
capacity decision.
e. none of the above
Quiz Chapters 4 & 5
5. A reason for the importance of capacity decisions is that capacity:
a. limits the rate of output possible
b. affects operating costs
c. is a major determinant of initial costs
d. is a long-term commitment of resources
e. all of the above
i. Correct - Capacity is a strategic decision that influences costs and the
firm's ability to satisfy customers.
6. An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit,
and revenue of $70 per unit. The break-even point volume is:
a. 100
b. 2,000
c. 500
i. Correct - A volume of 500 units leads to $10,000 in margin to offset fixed
costs.
d. 1,000
e. none of these
7. Given the following information, what would efficiency be?
Effective capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day
a. 40%
b. 50%
c. 60%
i. Efficiency is actual output divided by effective capacity.
d. 80%
e. 90%
8. If the output rate is increased but the average unit costs also increase we are
experiencing:
a. market share erosion.
b. economies of scale.
c. diseconomies of scale.
i. Correct - Diseconomies of scale involve producing above the optimal
production rate.
d. value added accounting.
e. step-function scale up.
9. A firm pursuing a strategy based on customization and variety will tend to structure and
manage its supply chain to accommodate more _____________ than a firm pursuing a
strategy based on low-cost and high-volume.
a. Variation
i. Correct- Customization and variety lead to variation that must be
accommodated.
b. Streamlined flow
c. Quality
d. Capacity
e. Productivity
10. Product design and choice of location are examples of _______ decisions.
a. Strategic
i. Correct - These decisions are made high in the hierarchy.
b. tactical
c. operational
d. customer focused
e. design
Quiz Chapter 6 part 1 & 2
11. A common goal in designing process layouts is:
a. minimizing the number of workers
b. minimizing idle time
c. minimizing transportation costs
i. Correct - An efficient process layout minimizes transportation costs.
d. maximizing work-station productive time
e. maximizing transportation distances
12. Laser technology used in surgical procedures is an example of technological advances in:
a. Product
b. Service
c. Process
i. Correct - Laser technology represents a change in the fundamental
surgical
d. Information
e. Reverse Engineering
13. In which type of processing system would gasoline be produced from crude oil?
a. Job Shop
b. Batch
c. Assembly
d. Continuous
i. Correct - Oil refining is an example of a continuous process.
e. Project
14. Which type of processing system tends to produce the most product variety?
a. Assembly
b. Job-Shop
i. Correct - A Job-Shop provides low volume of high-variety goods.
c. Batch
d. Continuous
e. Project
15. Assembly lines have a number of characteristics. Which of the following is typically NOT
a characteristic of assembly lines?
a. Flexible labor and equipment (for example, general purpose tools).
i. Correct
b. Large capital investment, use of automation.
c. High equipment utilization and efficiency rates.
d. Highly standardized product designs.
e. Assembly lines are the most likely choice for a Make-to-Stock supply chain
strategy.
16. A company needs to locate three departments (A, B, and C) in the three areas (1, 2, and
3) of a new facility. They want to minimize interdepartmental transportation costs, which
are expected to be $.50 per load per Yard moved. An analyst has prepared the following
distances and flow matrices:
What is the distance (in Yards) from area 3 to area 1 in this new facility?
a. 100
b. 125
c. 350
i. Correct - This information is presented in the distance matrix.
d. 450
e. 475
17. A company needs to locate three departments (A, B, and C) in the three areas (1, 2, and
3) of a new facility. They want to minimize interdepartmental transportation costs, which
are expected to be $.50 per load per Yard moved. An analyst has prepared the following
distances and flow matrices:
What is the total flow (loads per week) between departments B and C?
a. 250
i. Correct - This information is presented in the flow matrix.
b. 70
c. 100
d. 150
e. 220
18. Operation X feeds into Operation Y. Operation X has an effective capacity of 35 units per
hour. Operation Y has an effective capacity of 60 units per hour. Increasing X's effective
capacity to 45 units per hour will increase the system capacity by _____ units.
a. five units
b. Ten units
i. Correct - Increase the effective capacity of an operation that precedes a
constraint is an example of supporting the constraint.
c. zero units
d. 60 units
e. 35 units
19. If a line is balanced with 80 percent efficiency, the "balance delay" would be:
a. 20 percent
i. Correct - Efficiency equals 100% minus balance delay.
b. 80 percent
c. 100 percent
d. unknown, since balance delay isn't related to efficiency
e. depends on the next operation
20. A company is designing a product layout for a new product. It plans to use this
production line eight hours a day in order to meet projected demand of 240 units per
day. The tasks necessary to produce this product:
Without regard to demand, what is the minimum possible cycle time (in seconds) for this
situation?
a. 108
i. Correct - the longest task time represents the minimum cycle time.
b. 12
c. 324
d. 60
e. 180
21. A company is designing a product layout for a new product. It plans to use this
production line eight hours a day in order to meet projected demand of 240 units per
day. The tasks necessary to produce this product:
If the company desires that output rate equal demand, what is the desired cycle time (in
seconds)?
a. 108
b. 324
c. 120
i. Correct - Divide the number of hours per day (8) by the demand rate
(240) . This means we need one unit every 2 minutes
d. 60
e. 90
22. A company is designing a product layout for a new product. It plans to use this
production line eight hours a day in order to meet projected demand of 240 units per
day. The tasks necessary to produce this product:
If the company desires that output rate equal demand, what is the minimum number of
workstations needed?
a. 2
b. 3
i. Correct - Divide the summed task times by the minimum necessary cycle
time. Round up to find the theoretical minimum.
c. 4
d. 5
e. 6
23. A company is designing a product layout for a new product. It plans to use this
production line eight hours a day in order to meet projected demand of 240 units per
day. The tasks necessary to produce this product:
If the company desires that output rate equal demand, what would be the efficiency of
this line with the minimum number of workstations?
a. 100%
b. 92.5%
c. 90%
i. Correct - Use the efficiency formula.
d. 87.5%
e. 80%
24. A company is designing a product layout for a new product. It plans to use this
production line eight hours a day in order to meet projected demand of 240 units per
day. The tasks necessary to produce this product:
If the company desires that output rate equal demand, what is the last task performed
at the second workstation in the balance which uses the minimum number of
workstations? Note, Use trial and error to find the answer.
a. B
b. C
c. D
d. E
i. Correct
e. F
i. Incorrect