Exam 1: Using Operations to Create Value

Table 1.2 The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing the process with new assembly methods that increase output to 300 units per hour, but will require 14 workers. Particulars are as follows: Workers are paid at a rate of $10 per hour, and overhead is charged at 140% (or 1.4 times) labor costs. Finished switches sell for $20 / unit. -Use the information provided in Table 1.2. What is the multifactor productivity of the current process?

Manufacturing processes tend to be capital intensive.

Which of the following statements is more of a general characteristic of a manufacturing organization, as compared to a service organization?

A company realizes that recent layoffs at its primary company reflect potential falling demands for its customers' products, and hence for its own products. The company has engaged in:

One distinction between core processes and support processes is that core process can cut across the organization while support processes do not.

Which of these Great Moments in Operations and Supply Chain Management did not occur in the 20th century?

The increased global presence of many firms has lessened the burden to behave ethically.

Quality is more easily measured in a service process than in a manufacturing process.

The key decisions to eliminate activities that do not add value while improving those that do are an important part of:

A firm's core competencies should determine its core processes.

Which of these statements about processes is not True?

The foundations of modern manufacturing and technological breakthroughs were inspired by the creation of the mechanical computer by:

One form of strategic alliance is the ________, in which two firms agree to cooperate to produce a product or service together.

A manufacturing process requires 12 minutes of labor to make 10 units of product. Which of the following actions will increase productivity? 1. Increase labor per 10 units of production 2) Decrease labor per 10 units of production 3) Increase number of units per 10 minutes of labor 4) Decrease number of units per 12 minutes of labor

For students not wanting a traditional major in marketing or accounting, for example, the college decided to create a general business major, which allowed any combination of the easiest business courses to comprise the program. The competitive priority achieved in this example is:

Name the three competitive priorities for time and give an example of each.

Which of the following is an example of a core competency?

A core process is a set of activities that delivers value to external customers.

A company's ability to quickly introduce a new service or product would be best described as:

The first three cars I bought all fell apart around 50,000 miles. It was called planned obsolescence and no one seemed to care until companies entered the market that promised 70,000, then 80,000, and finally 100,000 mile warranties. What sets a great car apart from a good one now is not the quality, which is assumed, but performance, safety and fuel economy. A car that can achieve all three is highly sought after. In the automotive market, performance, safety and fuel economy are sterling examples of: