Deck 5: Operations Management

Question 1

Which factor helped create a greater and critical focus on the OM function:

A) Reduced product cycle times
B) Global competition
C) Supply chain management
D) Early supplier involvement
E) b and c

Answer 1

E

Question 2

Operations management (OM) is responsible for producing products in a cost-effective and __________ way.

A) Complex
B) Efficient
C) Expensive
D) Outsourced
E) Cellular

Answer 2

B

Question 3

The design of service processes should include the following elements:

A) Physical, psychological, relational
B) Psychological, relational, marketing
C) Physical, sensual, psychological
D) Sensual, relational, operations
E) None of the above

Answer 3

C

Question 4

When designing facility layout, the _______ layout fits best with intermittent processes:

A) Product
B) Fixed position
C) Cellular
D) Process
E) None of the above

Question 5

Design for manufacturing (DFM) guidelines focus on ________ and ________:

A) Risk and return
B) Features and benefits
C) Cost and service
D) Simplification and standardization
E) None of the above

Question 6

A consumer who purchases a Dell computer would be a customer of which type of operation:

A) Cellular
B) Service
C) Manufacturing
D) Intermittent
E) All of the above

Question 7

Understanding a the evolution of a product, from introduction to maturity, is known as:

A) Cycle time management
B) Concurrent engineering
C) Remanufacturing
D) Design for manufacturing
E) Product life cycle management

Question 8

___________ is the facility layout that would best fit with the production of a jumbo jetliner.

A) Product
B) Fixed position
C) Cellular
D) Process
E) None of the above

Question 9

The _______ process type should be used when producing to very specific customer needs:

A) Standardization
B) Customization
C) Line
D) Continuous
E) Project

Question 10

Product and process design together can impact:

A) Quality
B) Cost
C) Customer satisfaction
D) All of the above
E) None of the above

Question 11

The __________ nature of a service makes product design more complex:

A) Standardized
B) Intangible
C) Intermittent
D) Costly
E) None of the above

Question 12

The OM decision about ____________ relates to how the product or service will be produced:

A) Product design
B) Facility layout
C) Process design
D) Scheduling
E) Inventory management

Question 13

An effective product design process should encompass four steps, including:

A) Customer relationship management
B) Product screening
C) Psychological benefit analysis
D) Standardization
E) a and b

Question 14

An example of an OM decision would be:

A) Which distribution channels to utilize
B) Where to locate a factory
C) How to schedule workers
D) Market segmentation strategy
E) b and c

Question 15

OM plays a critical role in a company's supply chain because it:

A) Produces/delivers the product or service
B) Customizes products
C) Defines location of facilities
D) Works with marketing
E) None of the above

Question 16

A __________ process focuses on providing product customization:

A) Intermittent
B) Repetitive
C) Standardized
D) Late stage
E) None of the above

Question 17

_________ processes produce small quantities of products in groups based on particular specifications or customers:

A) Project
B) Line
C) Continuous
D) Batch
E) None of the above

Question 18

The variable cost of a new computer keyboard is $25 per unit, and the fixed costs to produce the keyboard are $20,000 per year. If the selling price of the keyboard is $45, how many units must the company sell to break even?

A) 800 units
B) 445 units
C) 2000 units
D) 1000 units
E) None of the above

Question 19

The _________ stage of the product design process may include early supplier involvement:

A) Idea development
B) Preliminary design
C) Final design
D) Break even analysis
E) None of the above

Question 20

Features of a repetitive process include:

A) High work in process inventory
B) Early stage of product life cycle
C) Large product variety
D) Capital-intensive resources
E) Long throughput time

Question 21

A primary advantage of automation for a variety of reasons is:

A) Replaces workers with machines
B) Economic improvements
C) Product quality and consistency
D) Improved worker security
E) All of the above

Question 22

Product design decisions will impact almost every other decision the company must make in terms of producing and delivering the product to the customer.

Question 23

The role of product design in the OM function is to define the features and marketing tactics for a company's product.

Question 24

Not all companies have an OM function.

Question 25

Process design is distinct from product design in the OM function.

Question 26

Service organizations produce products that can be made prior to customer purchase.

Question 27

The degree of customer contact is a key differentiator between manufacturing and service operations.

Question 28

When automating processes in a service business, a strategic consideration should be:

A) Customer expectations and markets
B) Costs
C) Suppliers
D) Product design
E) Process design

Question 29

Defining logical sequence and speed of the production process relates to:

A) Early supplier involvement
B) Market segmentation
C) Line balancing
D) Cellular manufacturing
E) Process design

Question 30

OM plays a transformative role in an organization because it is independent of other functions.

Question 31

In the evolution of OM, quality and competitiveness became crucial in the 1950s.

Question 32

Operations management (OM) is the function that is responsible for producing goods and services.

Question 33

An initial disadvantage of automation for companies is:

A) Cost
B) Improved quality
C) Replacing workers
D) Security
E) None of the above

Question 34

The maximum amount of time each station on an assembly line has to complete a task is known as:

A) Line balancing
B) Process design
C) Intermittent processes
D) Product design
E) Cycle time

Question 35

Decisions about the best location for a factory or warehouse relate to OM.

Question 36

In the evolution of OM, its "back office" role was partially a result of firms' extensive focus on marketing and developing new markets.

Question 37

Service design has three elements including the physical, psychological, and sensual.

Question 38

In OM decisions, an example of a product design decision is defining an inventory strategy.

Question 39

With globalization, OM has become a way for companies to gain a competitive advantage.

Question 40

The OM function manages a company's resources, including labor and materials.

Question 41

Process design is important because it ultimately defines the production process.

Question 42

Repetitive processes typically occur in the early stages of a product's life cycle.

Question 43

The best facility layout for producing an automobile would be a product layout.

Question 44

Intermittent processes produce high volumes of standardized products.

Question 45

Design simplification seeks to utilize fewer parts that are required to produce a product.

Question 46

Remanufacturing has become an effective tool in designing sustainable operations.

Question 47

At the breakeven point, total costs of the product equal the revenue generated from sales of the product.

Question 48

During product screening, the finance department would primarily be concerned with whether sources of supply are available.

Question 49

Describe the evolution of the operations management (OM) function.

Question 50

Early supplier involvement (ESI) is the process by which suppliers negotiate early contractual terms with customers.

Question 51

Project processes produce products exactly to a particular customer's expectations.

Question 52

Describe the transformational role of operations in an organization and provide an example.

Question 53

There are four types of facility layout: fixed position, process, product, cellular.

Question 54

Understanding cycle time is critical to the process of line balancing.

Question 55

Design for manufacturing (DFM) considers the ease at which a product can be produced.

Question 56

Batch and line processes are similar.

Question 57

Standardizing design seeks to utilize a common set of parts to produce a product.

Question 58

Describe the sequential steps of the product design process.