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Operations Management
Operations Management
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1
Which of the following is true of services?
Customers participate in many service processes, activities & transactions.
Services can be stored as physical inventory
Customer arrivals rates &demand patterns & forecast deliveries
Service-providing employees requires stronger tech skills &behav skills
2
The concepts and methods of O.M can be used_______
Only for external customers
In any job
In any job as long as it involves supply chain
Only for internal customers
3
Social sustainability is important because:
reduce the operational $ of compan owing to low cost of sustainable tech
All organizations must-> greenwashing ->pressure from regulatory agencies.
leads to a short-term reduction in the organizing &admin costs of companie
Every organization must protect the health & well-being of all stakeholders
4
_____ delineate the boundaries of a process.
Value streams
Flowcharts
Bottlenecks
Control tasks
5
The equation for perceived value is
P.V = Cost to customer/ perceived benefit
P.v = primary benefit/ secondary benefit
P.V= Perceived benefit/ cost to customer
P.V = Firm benefit/ cost of product
6
The __ structure of a S.C is the configuration of resources
Virtual
Informal
Operational
Network
7
Which of the following is an example of an environmental sustainability practice?
Ensuring consumer safety in using goods and services
Designing goods whose parts can be safely disposed of
Making sound financial plans to ensure long-term organizational survival
Acquiring and managing human resources effectively and efficiently
8
The 3 types of customer benefit package are: Primary, Peripheral & Variant
True
False
9
_____ is an approach for mistake-proofing processes using automatic devices or simple methods to avoid human error
Poka-Yoke
The Value Stream
Reengineering
The product process matrix
10
The basic purpose of a supply chain is to:
Reduce production during peak energy demand times
Coordinate flow of materials, services & info among the elements of the S.C
Forecast annual sales revenue by detecting patterns & relationships in data
Act as an intermediary between agents of products and consumers
11
Zara's global S.C- which of the following S.C decisions is measured through traceability of raw materials & finished Gs
Outsourcing
Performance
Technology
Location
12
Ensuring the health and safety of the workforce is an example of _____ sustainability
Social
Economic
Environmental
Technology
13
Which of the following statements is true of core processes?
include the processes of inventory management and research and development
They are focused on delivering services that create value for customer
They include the processes of human resource management and marketing
They are behind the scenes processes that supports primary processes
14
__has been defined as the fundamental rethinking and radical redesign of business processes to achieve dramatic improv.
Streamlining
Reengineering
Delayering
Remanufacturing
15
As one moves down the diagonal of the service-positioning matrix (SPM), the service-encounter activity sequence becomes:
More repeatable with many customer-provider driven pathways
Less repeatable with many customer driven pathways
Less unqie + more repeatable with fewer pathways
More unique with only provider-driven pathways
16
Harlose Tanneries planned to expand its facilities. Its managers chose a city-low environ. impact. Managers are
offshoring
community location decision
Reshoring
local site location decision
17
Which of the following is true of standard goods?
Made in anticipation of customer deamand stocked in inventory
Designed in small quantities to meet specific customers' specifications
Produced on demand and take long time to be designed, creates and delivered
Configurations of standard parts that can be selected-limited set
18
Which of the following is true of service facilities?
Tend to rely more on info systems and soft technology than on machines.
Require employees to focus on acquiring tech & production skills than bahav
They must be located far from suppliers and customer markets
Be designed to minimize customer movement with facilities & their processes
19
____ is defined as a process of transforming data into actions through analysis and insights
Data warehousing
Market basket analysis
Business Analytics
Inventory Management
20
Clothing factory receives 20 shirts/hour and has three inspectors, each of whom can inspect 10 shirts per hour. Utiliz?
30
75
67
10
21
A ______ is the core offering that attracts customers and responds to their basic needs
Peripheral good/ service
Tertiary good/ service
Secondary good/ service
Primary good/ service
22
In one method of calculating Utilization, Demand Rate is divided by ____
Resources available
Products in Inventory-products ordered
Service rate x Number of servers
Resources used
23
If a hotel has 100 rooms, and on a given day, 50 rooms are occupied, what is the utilization of hotel rooms?
100%
50%
5%
2%
24
Eliminating _____ in a process design is one of the most important responsibilities of operations managers.
provider-routed services
Non-value-added activities
Process boundaries
Value Streams
25
Which of the following is true of sustainability?
three dimensions of sustainability = triple bottom line
The use of sustainable technology reduce short-term operational costs
The use of sustainable technology results in immediate profits
application of sustainable tech is limited to the agriculture industry
26
In responsive supply chain, a focus on flexibility &responsive is best when:
Efficiency & low cost are the main competitive priority
Product lines have longer life cycles & don't change often
Customers require customization
Goods/S have highly predictable demand
27
Sourcing multiple suppliers creates what benefit?
Triples the risk of supply distribution
Increase the risk of supply distribution
Does not affect supply distribution
Lower the risk of supply distribution
28
Which of the following facility layouts is used by service organizations that provide highly standardized services?
Cellular Layout
Product layout
Flexible layout
Process layout
29
In a _____ team, members communicate by computer, take turns as leaders, and join and leave the team as necessary
Cross-Functional
Virtual
Natural work
Self-managed
30
___is the number of units or tasks that are completed per unit time from a process
accomplishment rate
throughput
input
optimal output
31
1.Which of the following goods or services has the highest service content?
A psychiatric session
A bicycle
A medicine prescription
A toothpaste
32
____refers to the process of acquiring & consolidating elements of a value chain to achieve more control
Pull system
Vertical integration
Horizontal integration
Push system
33
Job ? involves determining the specific job tasks + responsibilities, work environment, + methods- the tasks will
Design
Posting
Enrichment
Enlargement
34
A(n) _____ is a symbol used in process maps to indicate waiting.
Oval
diamond
Rectangle
Triangle
35
In the context of facility layout, which of the following is true of a fixed-position layout?
It has high equipment utilization.
It has moderate setup or changeover requirements.
It has moderate flexibility
It has high demand volume.
36
Which of the following is true of custom goods?
Configurations of standard arts that can be selected by customr-limited set
Long wait times- specific customer's specifications
They are made in anticipation of customer demand and stocked in inventory.
Have fixes, stadard design- can't be altered to suit requirement of customr
37
___ are large, customer initiatives consisting of smaller tasks and activities that are done on time and within budget
Assembly line processes
projects
flow shops
continuous flow processes
38
In designing _____ layouts, one is concerned with the arrangement of departments or work centers relative to each other
process
Product
Fixed-position
Cellular
39
One of the objectives of facility layout and work design in a goods producing organization is to:
Maximize the number of workstations
Maximize environmental impact
Enhance sustainability
Lock management into a noncompetitive situation
40
Which statement is true of reengineering?
The goal is to achieve improvements in performance
Reengineering increases non value added activities in a process design
Reengineering decreases throughout by adding process bottle necks
adds multiple approval requirements for all transactions
41
Which of the following is true of service encounters?
Customer arrival rates are determined through service encounters
Service encounters minimize the moments of truth between a buyer and seller
Customers judge the value &form perceptions through service encounters
Service encounters reduce the need for customer participation
42
Which of the following is true of service-providing firms?
Employees Require more technical and production skills than human skills
Scheduling focuses on when to assign employees and equipment
Use physical inventory such as raw materials and finished goods as a bu
Demand forecasts are longer, invariable and can be aggregated over l
43
Which of the following is an example of an environmental sustainability practice?
Improving productivity through business to business partnership
Ensuring consumer safety in using goods and services
Reducing waste and managing recycling efforts
Acquiring and managing human resources effectively and efficiently
44
Which is a characteristics of projects?
They have a wide variation in specifications or tasks
Require no setup or changeover time
Create large volumes of highly standardized goods and services
Organized around a fixed sequence of activities and process steps
45
Which of the following is true of firms that outsource?
Acquire capabilities toward suppliers
Don't have ownership of the outsourced process or function
Cannot outsource skilled knowledge work and simple service work
They integrate both backward and forward
46
____ management is a key activity of operations managers that involves ensuring that goods/s & processes meet expectat.
Resources
inventory
Quality
Security
47
What is the equation for Resource Utilization?
U= Resources available / resources used
U = Resources used / resources available
U= Paid resources/ free resources
U= Resources loaned/ total resources
48
Transportation optimization by designing efficient cars and routes to save fuel is an example of ______ sustainability
Political
Social
Human
Environmental
49
What is NOT a main goal for operations management?
Efficiency
Quality of goods
Cost of operations
Reliability of the firm
50
1.The value of goods and services can be determined by dividing:
Actual benefits by perceived benefits
Perceived benefits by cost to the customer
Cost to the seller by actual benefits
Cost to the customer by cost to the seller
51
What type of system produces only what is needed to customer demand?
Horizontal integration
Pull system
vertical integration
Push system
52
Which of the following best describes the process of throughput?
The point of most efficiency in a process
Total time it takes to complete one cycle of the manufacturing process
Number of goods sold minus the number of goods returned
Number of units or tasks that are completed per unit time from a process
53
What process? when there are high setup times, customized products + many products & highly skilled employees?
Continuous
Job shop
Flow production
Project flows
54
Which of the following defines a customer benefit package?
clearly defined set of tangible & intangible features that are recognized
all the moments of truth between the customer &the service provider
an organization’s ability to strategically blend current consumer + busine
a collection of all the resources, used to create customer satisfaction
55
Which of the following are preproduction services of a value chain?
Transportation services
On-Site Installation services
Recycling initiatives
Contract negotiations
56
Speeding up service rates, adding resources, or transferring resources among activities are three ways to improve...
throughput
queuing
bottle necks
analysis
57
___processes are ‘behind the scenes business processes that include purchasing materials used in manufacturing, managing
Primary
Support
Principal
Core
58
What process used- low/no setup times, similar products + dominant production lines?
Continuous production
Job shop
Flow shop
Project flows
59
A(n) ___ is a product layout dedicated to combining the components of a good or service that has been created previously
Work cell
Coupling center
Transformation system
Assembly line
60
___ is the process of managing geographically dispersed service-providing facilities
Cannibalization ....
Postponement
Reverse logistics
Mulitsite management
61
__ the process of moving operations back to a company's domestic location
Offshoring
Reshoring
Outsourcing
Insourcing
62
Which one is NOT a competitive Priority?
Flexibility
Durability
Innovation
Cost
63
A value chain begins with ____ who provides inputs to a goods-producing or service-providing process or network
Customers
Suppliers
Managers
Stockbrokers
64
A(n) _____ is the work activity that effectively limits the throughput of the entire process.
Overstock
Efficiency output
Input
Bottleneck
65
the _____ of each department is used to compute distances and materials-handling costs for a particular layout
Last workstation
Centroid
First workstation
Periphery
66
___ are businesses that provide integrated services- packaging, warehousing, inventory management and in/out bound t
Push-pull enterprises
Contract manufacturers
Third-party logistics providers
Distribution centers
67
Big data refer to massive amounts of business data from _____
Top internal executives
Internal Sources
External sources
A wide variety of sources
68
Unlike a high degree of repeatability of service encounters, a low degree of repeatability of service encounters:
Encourages more rigid equipment + process designs
Results in improved efficiency
Results in higher relative cost per transaction
Encourages more standardization
69
1.In the context of a customer benefit package (CBP), which of the following is true of a variant?
a.It is a feature that adheres to the standard CBP
It is also known as a peripheral good or service
It is the core offering that attracts customers
a.It is normally location specific or firm specific
70
A__ produces goods in advance of customer demand using forecast of sales & moves through the S.C to point of sales
Make-to-order supply chain
Value chain
Push system
Pull system
71
__ is the building, acquiring/ moving of process capabilities from a domestic location to another country location
Outsourcing
Reshoring
Offshoring
Insourcing
72
In the context of supply chain design trade-offs, ___ refers to acquiring capabilities toward suppliers
Outsourcing
Backward integration
Contract manufacturing
Forward integration
73
Which of following facilities is most likely to have a fixed-position layout?
Paper factory
Pizza Kitchen
Legal Office
Airplane Factory
74
In the context of facility layouts, which of the following is true of process layouts?
They have high equipment utilization
They do not require high skilled workers.
They do not have high materials-handling costs.
They require more complicated planning and control systems.
75
Which of the following is true of continuous flow processes?
Create low volumes of customized goods and services
Have a very flexible sequence of work tasks
They create one of a king products with wide variations in specifications
They use highly specialized and automated equipment
76
In a process design, a ___ is a specific unit of work required to create an output
portfolio
Task
matrix
value chain
77
____is a key supply chain design decision that involves selecting suppliers from whom to purchase
Logistics
Sourcing
Sustainability
Technology
78
A ___ is a characterization of product growth, maturity and decline over time
value stream map
service blueprint
Product life cycle
Product process matrix
79
___sustainability is an organization’s commitment to have the agility & strategic management to prepare businesses succe
Economic
Social
Environmental
Political
80
Which of the following is true of a cellular layout?
It reduces materials-handling requirements
It has a slow response to quality problems.
It lacks a standardized workflow.
It requires extra floor space for set up.
81
Which of the following is a postproduction service of a value chain?
Warehouse & Inventory management
Goods and Service Design
Purchasing Service
Contract Negotiation
82
n the context of facility layouts, which of the following is true of a product layout?
consolidates the resources to manufacture a Good in one location.
a functional grouping of equipment or activities that do similar work.
a smooth flow where all goods/ S move in a continuous path from 1 -2 stage
self-contained groups of equipment needed for producing a set of good
83
__ occurs when a work center completes a unit but cannot release it b/c the in-process storage at the next stage is full
Overload delay
Flow-blocking delay
lack of work delay
Propagation delay
84
What is the equation for resource utilization?
U= Service rate x number of servers/ demand rate
U = Demand rate / Resources available
u= Demand/ service rate x number of servers
U = Servers/ Demand rate x service rate
85
Which of the following describes the general process for identifying a bottleneck
Identifying the work activity that has the smallest throughput
Measure the number of units completed per unit time
Calculate the speed of the process from start to finish
Determine the work activity that runs most efficiently
86
The service-encounter activity sequence depends on the:
Intensity of non-value added activities in the S. Encounter sequence
Degree of repeatability of the service encounter activity sequence
Carbon footprint of the tasks involved in teh creation + delivery of S
Number of work activities that limes the throughout of a S. activity
87
When business analytics is used to identify the best decisions, it is known as ____ analytics
Prescriptive
Predictive
Description
Diagnostic
88
Process design is a key activity of operations managers that involves:
Ensuring right amounts of labour, equip, materials& info are available
Deciding the best way to assign people to work tasks & job responsibilities
Determining when resources- employees &equipment should be assigned to work
Selecting the right equipment, info & work methods to produce quality goods
89
_____ time or cycle time is the average time it takes to complete one cycle of a process
Finish
End
Flow
Circle
90
Which of the following statements is true of a supply chain?
originates from the human resource management function of an organization
It is easier to apply to service-providing firms than a value chain
It is broader in scope than a value chain
It focuses primarily on the physical movement of goods and materials
91
____focuses on flexibility + responsive service & react quickly to changing market demand
Center-of-gravity method
Responsive supply chain
Push-pull boundary
Efficient supply chain
92
Which statement is true of an efficient supply chain ?
Designed for efficiency, low $- minimizing inventory + max. process flow
efficiency = demand + services are unpredictable
Ability to respond to market changes faster than a responsive S.C
Supported by info tech- real-time info to managers across S.C
93
____ constrain customers to follow a very small number of possible and predefined pathways through the service system
Customer routed services
Provider routed services
Value-added services
Make-to-order services
94
Which of the following statements is true of a pull system?
An advantage of immediate availability of goods to customers
Works best when there's few distribution centers & products
Views a supply chain from "left to right"
Minimize inventory & production costs
95
Which of the following is a difference between goods and services?
The demand for goods is difficult to predict vs demand for services is easy
Goods are not protected by patents vs services are protected by patents
Goods cannot be stored as physical inventory vs services can
Goods are tangible, whereas services are intangible
96
What is NOT included in the triple bottom line?
People
Profit
Planet
Place
97
___ goods are configurations of limited standard parts, sub-assemblies or services that can be selected by customers
custom
option
standard
fixed
98
facility arrangement that consists of a functional grouping of equipment/ activities- do similar work is a _____ layout.
Process
Flexible
Product
Cellular
99
The __ ivovles evaluating the product portfolio, new market opportunities, changes in laws, production, locations
Global location decision
Community location decision
Push pull system
Center of gravity method
100
Which of the following is true of flow shop processes?
Require little or no setup or changeover time
They are large-scale customized initiatives with wide variations in tasks
Produce low volumes of custom goods and services
use different sequence of processing steps for different orders
101
Which of the following defines a pathway in a service-delivery system?
Set of all value-added activities involved in producing + delivering
Unique arrangement of service activties in a service system map
Unique route trough a service system
Set of work activities that limits the throughput of the entire process
102
1.Which of the following key processes in a business directly create and deliver goods and services to customers?
Support processes
General Management Processes
Peripheral Processes
Core processes
103
arrangement that is made up of self-contained groups of equipment needed for producing a particular set of goods/ S is
Cellular
Flexible
Process
Product
104
Which one of the followin deisgn decisions involves protecting & honouring patents in other countries
Technology
Logistics
Outsourcing
Sourcing
105
Which of the following is true of ergonomics?
It helps reduce fatigue.
It results in an increase in the cost of doing a job
It increases the possibility of human errors
It results in the reduction of accuracy
106
Which of the following goods/S is an example of a flow shop process?
A cruise ship
A surgery
An insurance policy
A web page
107
Which of the following is true of goods-producing firms?
The activities of goods-producing firms involve high customer participation
Forecasting in goods-producing firms is always done daily or hourly basis
Use inventory to ensure constant availability of products
They rely on soft technology to perform work rather vs tech smart & product