Question 1

What technique is based on computing the quantity of goods a company needs to sell to just cover its costs?

Accepted Answer

A)  net present value 
B)  break-even analysis 
C)  internal rate of return 
D)  activity based costing 
E)  variable costing 
A)  net present value 
B)  break-even analysis 
C)  internal rate of return 
D)  activity based costing 
E)  variable costing B

Question 2

What type of process is designed to produce a large volume of a standardized product for mass production, such as automobiles?

Accepted Answer

A)  project processes 
B)  batch processes 
C)  line processes 
D)  continuous processes 
E)  recycle processes 
A)  project processes 
B)  batch processes 
C)  line processes 
D)  continuous processes 
E)  recycle processes C

Question 3

Bazooka Company is thinking about introducing a new type of color printer. If they introduce it, their factory will incur additional fixed costs of $37,000,000 per year. The variable costs will be $261 per printer.
a) If Bazooka sells the new printer for $819, how many must they sell to break even?
b) If Bazooka sells 70,000 of the new printer at the $819 price, what will the contribution to profit be?

Accepted Answer

a) 66,308 printers (Q_BE = F/(SP - VC) = $37,000,000/($819 - $261) = 66,308)
b) $2,060,000 (Profit = total revenue - total cost = SP*A - [F+VC*Q] = $819 * 70,000 - [$37,000,000+ ($261*70,000)] = $2,060,000)

Question 4

There is a pure mathematical formula to making the decision to pursue a specific idea.

Accepted Answer

A) True 
 B)False

Question 5

What are the three different service designs that are described in the chapter?

Accepted Answer

A)  substitute people for technology; get the customer involved, high customer attention approach 
B)  customer-based market research, high customer attention approach, substitute technology for people 
C)  customer-based market research, high customer attention approach, gets the customer involved 
D)  substitute people for technology, customer-based market research, and high customer attention approach 
E)  substitute technology for people; get the customer involved, high customer attention approach 
A)  substitute people for technology; get the customer involved, high customer attention approach 
B)  customer-based market research, high customer attention approach, substitute technology for people 
C)  customer-based market research, high customer attention approach, gets the customer involved 
D)  substitute people for technology, customer-based market research, and high customer attention approach 
E)  substitute technology for people; get the customer involved, high customer attention approach

Question 6

Services with low customer contact are called _____________ .

Accepted Answer

A)  quasi-manufacturing 
B)  quasi-services 
C)  mixed services 
D)  pure services 
E)  mixed manufacturing 
A)  quasi-manufacturing 
B)  quasi-services 
C)  mixed services 
D)  pure services 
E)  mixed manufacturing

Question 7

Which of the following is not included in the preliminary design and testing stage?

Accepted Answer

A)  the product design idea is evaluated according to the needs of the major business functions 
B)  design engineers translate general performance specifications into technical specifications 
C)  "bugs" are worked out 
D)  revising the design based on test results 
E)  prototypes are built and tested 
A)  the product design idea is evaluated according to the needs of the major business functions 
B)  design engineers translate general performance specifications into technical specifications 
C)  "bugs" are worked out 
D)  revising the design based on test results 
E)  prototypes are built and tested

Question 8

Which of the following is a tool for evaluating an operation in terms of the sequence of steps from inputs to outputs with the goal of improving its design?

Accepted Answer

A)  operations analysis 
B)  operations sequencing 
C)  process flow analysis 
D)  input/output analysis 
E)  sequencing analysis 
A)  operations analysis 
B)  operations sequencing 
C)  process flow analysis 
D)  input/output analysis 
E)  sequencing analysis

Question 9

Net present value is based on computing the quantity of goods a company needs to sell to just cover its costs.

Accepted Answer

A) True 
 B)False

Question 10

Substituting technology for people has been argued to reduce what in the service delivery?

Accepted Answer

uncertaint

Question 11

A company's product design supports its business strategies by

Accepted Answer

A)  designing products that appeal to its customers 
B)  designing as many products as possible 
C)  including the company's mission somewhere in the product 
D)  designing products that aid strategic planning activities 
E)  designing the company's strategy 
A)  designing products that appeal to its customers 
B)  designing as many products as possible 
C)  including the company's mission somewhere in the product 
D)  designing products that aid strategic planning activities 
E)  designing the company's strategy

Question 12

Repetitive operations are used to produce many different products with varying process requirements in lower volumes.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not a guideline for design for manufacture?

Accepted Answer

A)  use modular design 
B)  design parts for different products 
C)  minimize parts 
D)  rely on automated equipment 
E)  simplify operations 
A)  use modular design 
B)  design parts for different products 
C)  minimize parts 
D)  rely on automated equipment 
E)  simplify operations

Question 14

In the product screening stage of new product development, what are some questions that may need to be explored by the operations function? By marketing? By finance?

Accepted Answer

Operations: What are the production need

Question 15

What is an automated material handling system that basically is an automated warehouse?

Accepted Answer

A)  CAD 
B)  AGV 
C)  AS/RS 
D)  FMS 
E)  CAM 
A)  CAD 
B)  AGV 
C)  AS/RS 
D)  FMS 
E)  CAM

Question 16

Which type of operation is used to produce many different products with varying process requirements in lower volumes?

Accepted Answer

A)  intermittent 
B)  repetitive 
C)  continuous 
D)  downstream 
E)  gateway 
A)  intermittent 
B)  repetitive 
C)  continuous 
D)  downstream 
E)  gateway

Question 17

If a firm has fixed costs of $200,000, variable costs of $100 per unit, and it hopes to sell 1000 units, what selling price must it charge in order to break even?

Accepted Answer

$300 (SP = F/ Q_BE+ VC

Question 18

Which type of operational function represents an Assemble-to-Order?

Accepted Answer

A)  wedding invitations 
B)  corporate training 
C)  airline flights 
D)  legal services 
E)  vacation packages 
A)  wedding invitations 
B)  corporate training 
C)  airline flights 
D)  legal services 
E)  vacation packages

Question 19

If the third stage of a repetitive line process cannot complete its activities as fast as stage one or two it has become a:

Accepted Answer

A)  key work location 
B)  bottle neck 
C)  place not to work 
D)  project process location 
E)  none of these 
A)  key work location 
B)  bottle neck 
C)  place not to work 
D)  project process location 
E)  none of these

Question 20

When designing the Taurus model, what did Ford Motor Company do with regard to BMW and Toyota?

Accepted Answer

A)  benchmarking 
B)  hired some of their employees 
C)  reverse engineering 
D)  copied their quality management techniques 
E)  bought some of their dealerships 
A)  benchmarking 
B)  hired some of their employees 
C)  reverse engineering 
D)  copied their quality management techniques 
E)  bought some of their dealerships

What technique is based on computing the quantity of goods a company needs to sell to just cover its costs?

What type of process is designed to produce a large volume of a standardized product for mass production, such as automobiles?

There is a pure mathematical formula to making the decision to pursue a specific idea.

What are the three different service designs that are described in the chapter?

Services with low customer contact are called _____________ .

Which of the following is not included in the preliminary design and testing stage?

Which of the following is a tool for evaluating an operation in terms of the sequence of steps from inputs to outputs with the goal of improving its design?

Net present value is based on computing the quantity of goods a company needs to sell to just cover its costs.

Substituting technology for people has been argued to reduce what in the service delivery?

A company's product design supports its business strategies by

Repetitive operations are used to produce many different products with varying process requirements in lower volumes.

Which of the following is not a guideline for design for manufacture?

In the product screening stage of new product development, what are some questions that may need to be explored by the operations function? By marketing? By finance?

What is an automated material handling system that basically is an automated warehouse?

Which type of operation is used to produce many different products with varying process requirements in lower volumes?

If a firm has fixed costs of $200,000, variable costs of $100 per unit, and it hopes to sell 1000 units, what selling price must it charge in order to break even?

Which type of operational function represents an Assemble-to-Order?

If the third stage of a repetitive line process cannot complete its activities as fast as stage one or two it has become a:

When designing the Taurus model, what did Ford Motor Company do with regard to BMW and Toyota?

Introduction to Operations Management

Operations Strategy and Competitiveness

Supply Chain Management

Total Quality Management

Statistical Quality Control

Just-In-Time and Lean Systems

Forecasting

Capacity Planning and Facility Location

Facility Layout

Work System Design

Inventory Management

Aggregate Planning

Resource Planning

Scheduling

Project Management

Spreadsheet Modeling: An Introduction

Introduction to Optimization

Waiting Line Models

Master Scheduling and Rough-Cut Capacity Planning

Filters

Exam 3: Product Design and Process Selection

What technique is based on computing the quantity of goods a company needs to sell to just cover its costs?

What type of process is designed to produce a large volume of a standardized product for mass production, such as automobiles?

There is a pure mathematical formula to making the decision to pursue a specific idea.

What are the three different service designs that are described in the chapter?

Services with low customer contact are called _____________ .

Which of the following is not included in the preliminary design and testing stage?

Which of the following is a tool for evaluating an operation in terms of the sequence of steps from inputs to outputs with the goal of improving its design?

Net present value is based on computing the quantity of goods a company needs to sell to just cover its costs.

Substituting technology for people has been argued to reduce what in the service delivery?

A company's product design supports its business strategies by

Repetitive operations are used to produce many different products with varying process requirements in lower volumes.

Which of the following is not a guideline for design for manufacture?

In the product screening stage of new product development, what are some questions that may need to be explored by the operations function? By marketing? By finance?

What is an automated material handling system that basically is an automated warehouse?

Which type of operation is used to produce many different products with varying process requirements in lower volumes?

If a firm has fixed costs of $200,000, variable costs of $100 per unit, and it hopes to sell 1000 units, what selling price must it charge in order to break even?

Which type of operational function represents an Assemble-to-Order?

If the third stage of a repetitive line process cannot complete its activities as fast as stage one or two it has become a:

When designing the Taurus model, what did Ford Motor Company do with regard to BMW and Toyota?

Introduction to Operations Management

Operations Strategy and Competitiveness

Supply Chain Management

Total Quality Management

Statistical Quality Control

Just-In-Time and Lean Systems

Forecasting

Capacity Planning and Facility Location

Facility Layout

Work System Design

Inventory Management

Aggregate Planning

Resource Planning

Scheduling

Project Management

Spreadsheet Modeling: An Introduction

Introduction to Optimization

Waiting Line Models

Master Scheduling and Rough-Cut Capacity Planning

Filters