Exam 1: Operations and Productivity

Martin Manufacturing has implemented several programs to improve its productivity. They have asked you to evaluate the firm's productivity by comparing this year's performance with last year's. The following data are available: Has Martin Manufacturing improved its productivity during the past year?

The Dulac Box plant produces wooden packing boxes to be used in the local seafood industry. Current operations allow the company to make 500 boxes per day, in two 8-hour shifts (250 boxes per shift). The company has introduced some moderate changes in equipment, and conducted appropriate job training, so that production levels have risen to 350 boxes per shift. Labor costs average $15 per hour for each of the 5 full-time workers on each shift. Capital costs were previously $3,000 per day and rose to $3,200 per day with the equipment modifications. Energy costs were unchanged by the modifications, at $400 per day. What is the firm's multifactor productivity before and after the changes?

A cleaning company uses 10 lbs each of chemicals A, B and C for each house it cleans. After some quality complaints, the company has decided to increase its use of chemical A by an additional 10 lbs for each house. By what % has productivity (houses per pound of chemical) fallen?

"Considers inventory ordering and holding decisions" is within the strategic operations management decision area of managing quality.

Which of the following is NOT an element of the management process?

All of the following decisions fall within the scope of operations management EXCEPT for:

A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity decreases by 20% due to a process change, it would then be:

Current challenges in operations management include all of the following EXCEPT:

A small metal shop operates 10 hours each day, producing 100 parts/hour. If productivity were increased 20%, how many hours would the plant have to work to produce 1000 parts?

Brandon Production is a small firm focused on the assembly and sale of custom computers. The firm is facing stiff competition from low-priced alternatives, and is looking at various solutions to remain competitive and profitable. Current financials for the firm are shown in the table below. In the first option, marketing will increase sales (and costs) by 50%. The next option is Vendor (Supplier) changes, which would result in a decrease of 12% in the cost of inputs. Finally, there is an OM option, which would reduce production costs by 25%. Which of the options would you recommend to the firm if it can only pursue one option? In addition, comment on the feasibility of each option. Business Function Current Value Cost of Inputs $50,000 Production Costs $30,000 Revenue $83,000

Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced.

Eli Whitney, in the ________, provided the foundations for ________ in operations management.

Operations management is the set of activities that creates value in the form of tangible goods, not services, by transforming inputs into outputs.

As the administrative manager in a law office, you have been asked to develop a system for evaluating the productivity of the 15 lawyers in the office. What difficulties are you going to have in doing this, and how are you going to overcome them?

Which of the following fosters specialization and worldwide supply chains?

Which of the following attributes is most typical of a service?

What are some of the ethical and social challenges faced by operations managers?

Which of the following is one of the 10 strategic operations management decisions?

Competition in the 21st century is no longer between companies; it is between ________.

Henry Ford and ________ are credited with the development of the moving assembly line.