OPS571 Operations Management Question

OPS571 Operations Management Question

Week 1 Quiz

1Why would a company want to supply a product to preferred customers during product ramp-up?

Help develop a marketing plan
Test the shipping process
Identify any remaining flaws
Get choice shelf positioning

2What is a company trying to optimize in the most common approach to developing a workcenter layout?

Number of defects
Amount of required staff
Work shift hours
Movement of material

3 Using a project layout for building an aircraft, why would you want to place rivets close to or even in the fuselage?

Rivets should actually be placed farthest away from the fuselage.
Rivets are small and you don’t want to lose them
Rivets are used one time only in the construction process
Rivets are used consistently throughout the construction process

4Some may argue that the production-line approach may not treat the process as a service process, but as what type of process?

An operational approach
A marketing approach
A manufacturing approach
A quality approach

5 Which of the following is a good example of a continuous process layout?

A sit-down restaurant
A gas refinery
A home construction site
An automobile manufacturing plant

6Even though they use different models, both the Ritz-Carlton Hotel Group and Nordstrom Department Stores are known for what?

The personal attention they provide their customers
Customer-facing employees who only talk to rich customers
A self-service approach to customer service
Poor customer service

7For which key organizational functions are tasks and responsibilities identified for all the steps of the generic product development process?

marketing, design, manufacturing, other
marketing, operations, training, development
strengths, weaknesses, opportunities, threats
operations, quality, personnel, finance

8Why is the planning phase often referred to as Phase 0 (Zero) of the generic product development process?

This phase requires $0 to complete.
This phase is not necessary.
This phase happens before the project is approved.
This phase is not completed until after the project has been funded.

9What happens to production efficiency as the customer exerts more influence on the system?

Production efficiency is decreased
Production efficiency is increased
There is no effect on production efficiency
Production efficiency is eliminated

10Poka-yoke is a Japanese term for a procedure that blocks an inevitable mistake from becoming what?

A service defect
A reason for over-production
An unidentifiable waste
A new process design flaw

11If an automotive service center has an issue with a car not being clean when returned to a customer, the poka-yoke corrective action might include what?

Leaving the plastic on the seat when returning the car to the customer.
Letting the customer make this determination
Leaving it up to the service tech who took care of the repair to determine if the car is clean
An inspection by the person returning the car before the car is seen by the customer.

12Why do many customers like the self-service approach to service design?

The customer is always right in this type of system.
It gives the customer more opportunity to steal from a company
It puts the customer in control
It provides the customer with the greatest amount of personal service.

13Permeable systems are characterized by being penetrable by customers via what two forms of contact?

Face-to-face and internet contact
Internet and mail contact
Internet and phone contact
Phone and face-to-face contact

14A service process design flowchart is referred to as a service blueprint to emphasize what?

The impact of blueprints
The impact of customer service
The importance of system engineering
The importance of process design

15 According to the Service-System Design Matrix, sales opportunity has what sort of relationship to production efficiency?

Equal Relationship
Inverse Relationship
No Relationship
Direct Relationship

………………………………………………………………………………………………………………

Week 2 Quiz

1 Which of the following is a principle of reengineering?

· Organize around the tasks

· Capture information many times, at the source and where it is interpreted

· Integrate the outcomes of parallel activities

· Treat geographically dispersed resources as though they were centralized

2 Which of the following is a key metric associated with value stream mapping?

· Defects per million operations

· Lead time

· Product demand

· Fixed costs

3 Which of the following is one of the major types of stakeholders impacted by most consulting projects?

· Other consultants

· International government regulators

· Board of directors

· Suppliers

4 Which of the following production process terms best describes the situation when activities in a stage of production must stop because there is no work?

· Blocking

· Starving

· Buffering

· Multiple-stage processing

5 The basic notion of economies of scale assumes which of the following?

· Two plants can be operated at the same cost as a single plant

· Average cost per unit of output drops as a plant gets larger and volume increases

· Total cost of output drops as volume increases

· A piece of equipment with twice the capacity of another piece typically costs twice as much to purchase and to operate

6 According to Little’s law, which of the following can be used to estimate inventory?

· Throughput rate times flow time

· Process velocity times flow time

· Set up time times throughput rate

· Process time times cycle time

7 In setting up a kanban control system, you need to determine the number of kanban card sets needed. If the average number of units demanded is 1,000 per hour, the lead time to replenish the order for this item is 10 hours, the container size is 5 units, and the safety stock is estimated to be 5% of the expected demand, what is the number of kanban card sets needed?

· 2,100

· 440

· 210

· 1,050

8 Lean production seeks to achieve high volume production using which of the following?

· Maximize capacity

· Minimize inventory of raw materials

· Maximize inventory of work-in-process

· Minimize utilization

9 Which of the following is a factor that causes a diseconomy of scale?

· Increased transportation costs

· Increased product value and prices

· Increased utilization

· Increased total operating costs

10 What is the term that refers to “the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed” (as cited in Jacobs & Chase, 2011, p. 461).

· Continuous improvement

· Operations consulting process

· Reengineering

· TQM

11 Which of the following operations consulting tools provide summary performance updates for specific processes and are generally presented in graphical form with color-coding of trend lines and alarms?

· Stakeholder analysis

· Process dashboards

· Decision trees

· Responsibility charts

12 In contrast to TQM, what approach seeks radical change through innovation?

· JIT distribution

· Project management

· Reengineering

· Lean manufacturing

13 Which of the following is a situation that likely will yield economies of scale?

· Company with factories in multiple countries that produces products for local demand

· Large factory with dedicated capacity that is able to produce twice the number of units as locally demanded

· Factory that fully utilizes dedicated resources for information technology, material handling, and administrative support

· Factory that produces low volume, customized products

14 To implement a flow process in developing a lean system, a firm might do which of the following?

· Eliminate some fixed costs

· Improve capacity utilization

· Build product in anticipation of demand

· Reduce setup/changeover time

15 Which of the following are possible examples of cycle times?

· Time to set up a new assembly line

· Time it takes for an instructor to grade an exam

· Time required to produce a batch of parts

· Time that a part waits in queue

16 Which of the following operations consulting tools are used in the cost impact and payoff analysis stage in the operations consulting process?

· SPC tools and bottleneck analysis

· Plant audits and statistical tools

· Customer surveys and gap analysis

· Decision trees and stakeholder analysis

17 Which of the following terms refers to a special type of flowcharting tool that is valuable for the development of lean processes?

· Kaizen

· Kanban production control system

· JIT production

· Value stream mapping

18 Which of the following production process terms best describes a stage in a multiple-stage process that limits the capacity of the overall process?

· Buffer

· Blocking

· Starving

· Bottleneck

19 An advantage of a make-to-stock process is which of the following?

· It allows the firm to avoid inventory costs

· Rapid delivery of a standard product

· It responds directly to customer orders

· All units of output are unique

20 In the pull system, which of the following is the partner that begins the process of pulling?

· Vendors

· Quality control personnel

· Customers

· Executive management

21 If the run time for a batch of parts is 25 minutes on a machine, and the setup time is 75 minutes, which of the following is the operation time?

· 25 minutes

· 75 minutes

· 3 minutes

· 100 minutes

………………………………………………………………..

Week 3 Quiz

1 What is the important starting point in developing a capacity plan?

Predicting the ability of suppliers to meet needs
Determining the effective capacity of a resource over some period of time.
Understanding key components of the supply chain
Predicting the needs of customers

2 Which of the following is an input file necessary to run an MRP program?

Bill of materials (BOM) file
Planned-order schedules
Exception reports
Quality management report

3 Which is the most challenging kind of supply chain to manage according to Hau Lee?

Erratic
Risk-hedging
Efficient
Agile

4 Which of the following is one of the categories of manufacturing inventory?

Economic Order Inventory
Work-in-process
Quality units
JIT Inventory

5 Which of the following forecasting methods is very dependent on selection of the right individuals who will judgmentally be used to actually generate the forecast?

Simple moving average
Time series analysis
Delphi method
Weighted moving average

6 Which of the following is an input to the master production schedule?

Prototype products from product development
Peg reports from factory records
Forecasts of customer demand
Aggregate component schedule

7 Which of the following is a perpetual system for inventory management?

Fixed-time period
Fixed-order quantity
P model
First-in-first-out

8 The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?

Workforce levels and inventory on hand
Inventory on hand and financing costs for that inventory
The strategic plan and the products available for sale
The workforce level and the degree of automation

9 In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand?

Cyclical elements
Past demand
Inconsistent demand
Future demand

10 What is another name for the fixed-order quantity inventory model?

Cycle counting model
The ABC model
Economic order quantity model
Periodic replenishment model

11 Which of the following is an input to the master production schedule (MPS)?

Exception report
The aggregate plan
Bill of materials
Inventory records file

12 What is the effect of the lack of synchronization among supply-chain members?

Continuous replenishment
Forward buying
Bullwhip effect
Metcalf’s Law

13 In business forecasting, what is usually considered a short-term time period?

Less than three months
More than three months
Four weeks or less
Six months or more

14 Which of the following is an essential resource that flows through a hospital supply chain?

Patients
Medicine
Doctors and Nurses
Information

15 When considering outsourcing, what should firms tend to avert?

Giving the outsourcing partner opportunities to become a strong competitor
Losing control of non-core activities
Allowing outsourcing to develop into a substitute for innovation
Allowing employees transferred to the outsourcing partner to rejoin the firm

16 In conducting aggregate operations planning there are a number of required inputs. Which of the following are inputs considered most external to the firm?

Raw material availability and competitor’s behavior
Subcontractor capacity and inventory levels
Current physical capacity of the organization
Internal inventory levels and market demand

17 Which of the following is an input file necessary to run an MRP system?

Planned order schedule
Exception report
Inventory records file
Computer-aided-design files

18 Which of the following is one of the main purposes of a MRP system?

Determine the materials needed
Educate personnel in basic work rules.
Stimulate the work force
Decrease labor requirements

19 The text mentions several common approaches to use when developing a strategy to close a capacity gap (where utilization of a resource exceeds capacity available). Which of the following is among the common approaches mentioned?

Closing a related department
New construction
Hire more employees
Transferring capacity from other units

20 Which of the following is considered a pure production planning strategy?

Variable workforce, stable work hours
Stable workforce, variable work hours
Level playing field
Lag demand

21 Which of the following is most closely related to the reason a firm might implement MRP?

To assure appropriate quality levels
So they can order the right parts
So they can insure that parts to arrive D. To assure appropriate quality levels
So they can order parts sufficient for immediate use

……………………………………………….

Week 4 Quiz

1 Consulting firms typically use which of the following techniques to plan and monitor the engagements of the firm or specific projects?

Materials requirements planning (MRP)
Quantitative layout
CPM/PERT
Qualitative forecasting

2 Which of the following would be the result of subdividing a project?

Tasks
Job orders
Work events
Job categories

3 A work breakdown structure is

a Cost and Performance tracking schedule
a hierarchy of tasks, subtasks, and work packages
a structure that is incompatible with the Critical Path Method
a simple list of the activities making up a project

4 A Responsibility Chart specifically identifies which of the following?

Commitment to quality
Planning the tasks for a project
Customer satisfaction
Level of inventory

5 At the onset, a project originates as which of the following?

A series of milestones
Critical path method (CPM)
A statement of work (SOW
A Gantt chart

6 The vertical axis on a Gantt chart is usually which of the following?

Time
Profit
Activities
Cost

7 Which of the following identifies a key principle of Reengineering?

· Downsize (lay-off) workers and do the same amount of work as before.

· Merge information-processing work into the real work that produces the information.

· Capture information both at the source and where it is interpreted.

· Organize around tasks.

8 An example of a graphic project report utilized within project management is:

Humphrey chart
Equipment and supplies chart
Project proposal
Cost and performance tracking schedule

9 Which project progress technique includes the essential features of a project plan, budgeted cost of work scheduled and budgeted cost of work performed?

Earned value management
Critical path method
Gantt chart
Cost analysis

……………………………………….

Week 5 Quiz

1) Which is the international standard for quality management for automotive industry suppliers of production parts, materials, and services?

AI 9000
TL 9000
QS 9000
AS 9000

2) What is one analytical tool common to all quality improvement programs?

Pareto charts
Continuous improvement
Management by fact
Kaizen

3) What is the certification when a qualified national or international standards body or similar certifying agency audits and certifies that a company is ISO 9000-compliant?

Third party
First party
Fourth party
Second party

4) Who is responsible for performing the first-party certification audit for a supplier firm?

Firm
Certifying agency
Suppliers
Customer

5) An opportunity flow diagram would best fit in which DMAIC category?

Define
Analyze
Improve
Measure

6) ISO 9000 is primarily concerned with what type of quality management standards?

Business-to-consumer transactions
Environmental
Suppliers to the automotive or telecommunication industries

· Business-to-business commerce

7) A fishbone diagram might be found in which DMAIC category?

· Define

Improve
Measure

· Analyze

8) What is the international quality management standard for quality management and assurance that is primarily concerned with quality of air, water, and soil?

ISO 14000
ISO 2000
ISO 9000
QS 9000

9) What is a reason that a company may pursue ISO-9000 certification?

Certification provides a company with unlimited legal liability protection
Certification is required by most insurance agencies
Certification is required by the European Community to show that a firm has used appropriate standards
Certification provides competitive advantage in the global markets for suppliers

10) What form of ISO 9000-certification is the final requirement before a company may be registered and recorded as having achieved ISO 9000 status?

First party
Second party
Fourth party
Third party

……………………………………

Week 6 Quiz

1) A bottleneck in a manufacturing process may be targeted and eliminated by employing which of the following?

Increase the capacity of a nonbottleneck resource.
Install more efficient equipment where capacity is less than the demand.
Increase labor equally throughout the system.
Increase the idle time of a capacity-constrained resource in the system.

2) The Shingo approach to quality control depends on which of the following?

Extensive use of control charts
Use of source inspection on 100% of the items produced
Use of statistically based approaches to quality control
Use of a sophisticated method of acceptance sampling

3) According to the theory of constraints which of the following can be a CCR?

· An employee

Product design
Factory layout

· A customer

4) According to the theory of constraints, which of the following is an OPERATIONAL measurement that can be used to measure the firm’s ability to make money?

Inventory
Unit cost
Operating revenue

· Net Profit

5) Which of the following is a focusing step of Dr. Eli Goldratt’s theory of constraints?

Isolate constraints to reduce the constraint’s capacity.
Do not modify a process after improvement of a constraint is achieved.
Identify system constraints that prevent the system from achieving its goal.

· Align the whole system to support processes prior to the constraint.

6) Identifying critical-to-quality characteristics (CTQs) takes place in which step of the DMAIC methodology?

Analyze
Define
Measure
Improve

7) According to the theory of constraints, which of the following would be included in the Throughput operational measurement?

Goods sold
Raw materials
Work in process
Finished goods

8) The Shingo system of quality control relies heavily on fail-safe procedures or devices called what?

CTQs
Poka-yokes
DPMO’s

· Checklists

9) Goldratt’s theory of constraints (TOC) could be restated using which of the following?

· Continuous adjustments after a constraint problem is solved will cause more problems

A system constraint cannot be identified and thus cannot be improved

· Any system is limited in achieving more of its goals by a very small number of constraints

· A system with constraints will not be able to achieve its goals

10) Which of the following are examples of Goldratt’s Rules of Production Scheduling?

· Nonbottlenecks govern throughput

Utilization and activation are the same
An hour saved at a bottleneck is a mirage

· Balance flow, not capacity

11) The DMAIC cycle of Six Sigma is similar to which of the following quality management topics?

Continuous improvement
ISO 9000
SERQUAL

· External benchmarking

12) Statistical Process Control (SPC) and data from the actual process to statistically monitor the process over time are employed during which step of the DMAIC cycle?

Improve
Define
Control
Measure

13) The idea that statistical methods of quality control, including six-sigma, does not prevent defects, is central to what alternative quality system?

Shingo System
SQC methods
Deming PDCA cycle
DMAIC cycle

14) According to Goldratt, which of the following is defined as “any resource whose capacity is less than the demand placed on it”?

Capacity-constrained resource
Buffer resource
Bottleneck resource
Nonbottleneck resource

15) According to the theory of constraints which of the following is a FINANCIAL measurement that can be used to measure the firm’s ability to make money?

Inventory
Sales
Operating expenses
Cash flow

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