Question 1

Angular Technology holds regular meetings for designated members of the various teams around the company. Members of leadership, finance, human resources, sales, technology, product development, and automation all attend and share recent wins and recent concerns with one another. This example best describes a key component of

Accepted Answer

A)   synthetic transformation management.
B)   process improvement review.
C)   total quality management.
D)   program evaluation review.
E)   supply-chain management. C

Question 2

Optimal Plastics produces customized plastic fittings for its clients. Its factory and shipping facilities are located outside of Austin, where its largest client is located. Which of the following benefits most likely led to Optimal building its facility in this location?

Accepted Answer

A)   reduction in time to market
B)   increased tax relief
C)   proximity to suppliers
D)   lowered cost of materials
E)   improved product layout A

Question 3

Which component of a materials requirement planning system allows a company to know all that is required to go into a finished product?

Accepted Answer

A)   critical path review
B)   total quality management system
C)   bill of materials
D)   enterprise resource planning system
E)   Six Sigma requirements C

Question 4

A company would most likely consider moving away from a just-in-time inventory system when it is

Accepted Answer

A)   implementing an enterprise resource planning system.
B)   acquiring a competitor to diversify its product line.
C)   conducting a Gantt analysis that supports maintaining a limited inventory of supplies.
D)   adding a procurement manager who can accurately identify the quantity of supplies needed.
E)   moving from an analytic transformation process to a synthetic transformation process.

Question 5

Maple Grove Café operates in a very busy tourist town. It needs to ensure that the food and drinks it needs to serve meals to its customers are always available at a competitive price. Maple Grove should

Accepted Answer

A)   employ mass customization principles.
B)   ensure its bill of materials is current.
C)   create a process layout for suppliers.
D)   utilize multiple suppliers.
E)   implement a just-in-time inventory system.

Question 6

How does Six Sigma benefit managers as they approach quality issues?

Accepted Answer

A)   It improves their ability to create critical path hypotheses.
B)   It provides ease of reporting on traceable changes.
C)   It gives reassurance that there are solutions to problems that are backed by data.
D)   It reduces the need for daily testing of random samples.
E)   IT increases their ability to rely on Gantt and PERT analyses.

Question 7

In which scenario would just-in-time inventory beleast effective?

Accepted Answer

A)   UFDA Enterprises, whose primary supplier has a history of meeting shipping expectations.
B)   White Woods Company, who experiences consistent demand for its product throughout the year.
C)   BMX Incorporated, a company that accurately plans their supply needs months in advance.
D)   LAG Company, whose primary supplier is in a different country.
E)   ABC Company, who sells only one product.

Question 8

What would be the most important aspect of a successful total quality management program?

Accepted Answer

A)   a focus on replying to supplier feedback
B)   regular analysis of ERP systems
C)   listening and learning from customers and employees
D)   annual PERT analyses
E)   sole supplier system

Question 9

A successful supply-chain management system will integrate which of the following items?

Accepted Answer

A)   production managers with ISO 9000 registrars
B)   facilities, functions, and processes
C)   CAD, ERP, and MRP computer systems
D)   internal benchmarking data to external PERT and Gantt analyses
E)   trusted suppliers with one another

Question 10

Illango is hired to work in a newly created Operations Management department for a large bank. In this role, he will be creating checking and savings accounts for customers and processing loans for members. Illango works in a service business.

Accepted Answer

A) True 
 B)False

Question 11

Kripa runs a candle-making business where she turns homemade wax into scented candles. The process of creating the candles is best described as

Accepted Answer

A)   input.
B)   mechanization.
C)   production.
D)   capital.
E)   service.

Question 12

Wally's Instant Meal company uses a four-step assembly line process to create single-serve meals for sale. The process begins with a tray, followed by the addition of a main course, a side dish, and a dessert. What type of facility layout does this represent?

Accepted Answer

A)   analytic transformation
B)   product
C)   process
D)   fixed-position
E)   supply-chain

Question 13

Buckingham Motor Company manufactures small engines for things like lawn mowers, motor scooters, and snowmobiles. The company recently hired an efficiency engineer who analyzed its productions processes before making recommendations for improvements. The recommendations included a streamlined assembly line, reduced staff, and a just-in-time system for ordering engine parts. Which type of production efficiency did Buckingham Motor Company utilize?

Accepted Answer

A)   integrated customization
B)   PERT customization
C)   flexible manufacturing
D)   mass customization
E)   lean manufacturing

Question 14

What process is used by the Six Sigma approach to quality control?

Accepted Answer

A)   testing random samples from production runs
B)   using statistical quality control to test daily samples
C)   using registrars to audit sample management standards
D)   testing many variables relating to all company processes
E)   testing competitor samples to align company expectations

Question 15

All-Star Construction is conducting a program evaluation and review technique analysis. What will be the most likely outcome of this evaluation?

Accepted Answer

A)   They will eliminate the need for multiple suppliers.
B)   They will know the total time needed to complete the project.
C)   They will know their ISO 9000 rating.
D)   They will have an accurate bill of materials.
E)   They will eliminate the need for a critical path.

Question 16

Rocky Rainbow Company has hired a team of specialists to implement a total quality management system. What would be the best place for this team to start?

Accepted Answer

A)   analyze past and current program and evaluation review charts
B)   install an updated materials requirement system
C)   compare company performance against their top competitors
D)   remind employees that continuous improvement efforts should be left to management
E)   review time to market figures for the past fiscal year

Question 17

King Wood Flooring is building a new facility and decides to locate near an area with high unemployment rates. What is the most likely reason for doing this?

Accepted Answer

A)   implementation of a new enterprise zone
B)   access to readily available labor force
C)   simplified process layout for production
D)   ability to shift to a product layout
E)   improved time to market for staffing

Question 18

Chazz opens his own business as a traveling mechanic. Customers schedule appointments and Chazz comes to them to do basic maintenance like oil changes or windshield wiper replacements. Chazz's company is an example of a ________ business.

Accepted Answer

A)   production
B)   service
C)   manufacturing
D)   knowledge
E)   transformative

Question 19

Forrester Shipping is designing a new supply-chain management system. What would be the most important consideration the company should make as it begins this process?

Accepted Answer

A)   shift to a sole supplier system for raw materials
B)   reduce fixed-layout processes
C)   begin phasing out current just-in-time inventory controls
D)   ensure that its suppliers are involved in the design process
E)   review and update all ISO 9000 standards

Question 20

Which example demonstrates how automation impacted the history of production?

Accepted Answer

A)   a steel working company adding robotic lifts and welders to replace humans on its assembly line
B)   a lawnmower manufacturer using long-term production runs on an ongoing basis
C)   a furniture manufacturer that uses dowels that are interchangeable between each piece of furniture
D)   a textile mill utilizing pre-cut materials in their factory
E)   a toy manufacturer providing new computers and printers to their managers

Exam 10: Operations Management