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Production 315 Final EXAM

Terms in this set (97)

Schedule Status
Which of the following is NOT one of the categories of project risk?
a. Service-Product attributes
b. Project team capability
c. Schedule Status
d. Strategic Fit
Critical Path
If other paths in a network have small amounts of slack, one of those other paths can become the _____________.
a. Near-critical path
b. Critical path
c. pessimistic time
d. optimistic time
Gantt Chart
A project schedule, usually created by the project manager using computer software, that superimposes project activities with their precedence relationships and estimated duration times on a time line.
Facilitator
The _________________ role must often resolve conflicts between individuals or departments to ensure a project moves ahead.
Defining the work breakdown structure
What is the first step in constructing a project network?
a. Defining the work breakdown structure.
b. Defining technical competence
c. Developing a PERT chart
d. Diagramming the network
Resource breakdown
Which of the following is LEAST likely to be an option that a project manager would use to alleviate resource problems?
a. Resource leveling
b. Resource allocation
c. Resource acquisition
d. Resource breakdown
Functional
The matrix structure is a compromise between the ___________________ and pure project structures.
Optimistic and pessimistic times
Which of the following is NOT a type of information collected by an effective tracking system?
a. Risks
b. Optimistic and pessimistic times
c. Schedule status
d. Open issues
Critical Path
The typical objective for a company is to finish a project as early as possible as determined by the ______________________.
PERT
Which of the following is a network planning method created for the U.S. Navy?
a. WBS
b. Gantt
c. CPM
d. PERT
Project
A(n) _______________________ is an interrelated set of activities with a clear starting point and ending point.
Path
Each sequence of activities between a project's start and finish is a(n) __________________.
Resource acquistion
Project managers have several options to alleviate resource problems: resource leveling, resource allocation, and ________________.
Direct costs
_________________________ are costs that are specifically related to project activities.
Completion time
A project manager has enough information to estimate the probability that an activity will be completed on schedule with all of the following EXCEPT which one?
a. Most likely time
b. Optimistic time
c. Completion time
d. Pessimistic time
Gantt
Which of the following is NOT considered a type of organizational structure?
a. Pure project
b. Matrix
c. Gantt
d. Functional
Schedule Status
A good tracking system will monitor open issues, risks, and __________.
Functional
When a project is housed in a specific department and personnel from other areas must be negotiated, the organization is said to use a __________ organizational structure.
Have zero slack
Activities on the critical path of a specific project __________.
Indirect costs
__________ include administration, depreciation, and financial expenses.
Critical path method
What does CPM stand for?
Matrix
In the __________ structure, team members essentially have two bosses.
Precedence relationship
A __________ determines a sequence for undertaking activities.
Work breakdown structure
What does WBS stand for?
Has been completed
A precedence relationship indicates that one activity cannot start until a preceding activity _______________.
Functional
The matrix structure is a compromise between the __________ and pure project structures.
Activity time
Which of the following is NOT a reasonable time estimate of statistical analysis?
a. Most likely time
b. Optimistic time
c. Activity time
d. Pessimistic time
scheduled receipts
Open orders are commonly known as __________.
Setup cost
__________ involves changing over a machine or work-space to produce a different item; it includes labor, cleaning, and possibly new tools or equipment.
The degree to which the same work can be done again
Which of the following describes repeatability?
a. The degree to which the same work can be done again
b. The process of dividing SKUs into three classes, according to their dollar usage, so that managers can focus on items that have the highest dollar value
c. Tracking inventory of a SKU each time a withdrawal is made
d. Physically counting a small percentage of the total number of items each day, correcting errors that they find
WIP
The three categories of inventory include raw materials, finished goods, and __________.
WACC
__________ is the average of a required return on a firm's stock equity and the interest rate on its debt, weighted by the proportion of equity and debt in its portfolio.
carrying cost
Inventory holding cost is also known as __________.
The cost of preparing a purchase order for a supplier or a production order for manufacturing
Which of the following describes ordering cost?
a. The cost of preparing a purchase order for a supplier or a production order for manufacturing

b. The cost of a customer order that cannot be filled when promised

c. The cost involved in changing over a machine or workspace to produce a different item

d. The cost associated with surplus inventory
target inventory level
In order to run a P system, managers must make two decisions: the length of time between reviews and the __________.
TBO
Which of the following is NOT an independent demand item in a firm?
reduce the lot sizes of items moving in the supply chain
A primary lever is one that must be activated if inventory is to be reduced; the primary lever to reduce cycle inventory is simply to __________.
Scheduled receipts
__________ are orders that have been placed, but have not yet been received.
SKUs
ABC analysis is the process of dividing __________ into three classes.
anticipation inventory
Predictable, seasonal demand patterns lend themselves to the need for __________.
Adding new products with different demand cycles
Customer demand for a product of a business needs to be evened out. Which of the following is a feasible secondary lever option to do that?
a. Adding new products with different demand cycles

b. Retaining anticipation inventory throughout the year

c. Offering employee discounts

d. Eliminating new product offerings
Choose an appropriate service-level policy
Which of the following is the first step for a business to begin to arrive at an inventory reorder point?
a. Choose an appropriate service-level policy

b. Determine the distribution of demand during lead time

c. Determine the safety stock and reorder point levels

d. Choose an appropriate EOQ level
The inventories needed for the production of services or goods of a firm
Which of the following describes raw material?
a. The inventories needed for the production of services or goods of a firm

b. The items sold to a firm's customers

c. The items needed to produce a firm's final product

d. Maintenance, repair, and operating supplies
Facility rent
Which of the following is NOT a variable cost of inventory holding cost?
a. Facility rent

b. Storage and handling

c. Shrinkage

d. Insurance
fixed interval reorder system
An alternative name for the periodic review system is a __________.
Cycle inventory
__________ is the portion of total inventory that varies directly with lot size.
level of inventory
The difference between the input flow rate and the output flow rate in a firm determines the __________.
lot size that minimizes total annual cycle-inventory holding and ordering costs
EOQ is the __________.
Cash-to-cash
__________ is the time lag between paying for the services and materials needed to produce a service or product and receiving payment for it.
Controlling inventory by managing the flow of materials
__________ is a fundamental purpose of supply chain design for manufacturers.
Domestic instability resulting in higher labor costs
Which of the following is an example of a possible external market pressure?
a. Domestic instability resulting in higher labor costs

b. Volatile sales volumes

c. Customer demand for greater conformance to product specifications

d. The need to develop new services and products to survive
Supply chain design for manufacturers
Controlling inventory by managing the flow of materials is a fundamental purpose of which of the following?
a. Supply chain design for manufacturers

b. Supply chain design for service providers

c. Supply chain design in general

d. Channel assembly
Offshoring
Creating an effective supply chain involves the recognition of external competitive pressures as well as internal organizational pressures.
These pressures include all EXCEPT which of the following?
a. Offshoring

b. Dynamic sales volumes

c. Customer service and quality expectations

d. External markets
Demand is unpredictable and forecast errors are high.
Which of the following is best suited for a responsive supply chain design?
a. Demand is unpredictable and forecast errors are high.

b. The competitive priorities include consistent quality and on-time delivery.

c. New products are rarely introduced.

d. Product variety is low.
Dynamic sales volume
Creating an effective supply chain involves the recognition of external competitive pressures as well as internal organizational pressures.
These pressures include which of the following?

a. Dynamic sales volume

b. Offshoring

c. Supply chain design

d. Average aggregate inventory value
The product that is built to a sales forecast and sold to customers from a finished goods stock
Which of the following describes the make-to-stock supply chain design?
a. The product that is built to a sales forecast and sold to customers from a finished goods stock

b. The product that is built to customer specifications from a stock of existing components

c. The product that is based on a standard design; however, component production and manufacture of the final product is linked to the customer's specifications

d. The product that is designed and built entirely to the customer's specifications
Eliminating finished goods inventory
Which of the following is a competitive advantage of a mass customization strategy?
a. Eliminating finished goods inventory

b. Sustainability options

c. Dynamic sales volumes

d. Forward integration
supply chain design
The process of designing a firm's supply chain to meet the competitive priorities of the firm's operations strategy
channel assembly
The process of using members of the distribution channel as if they were assembly stations in the factory
Weeks of supply
__________ is calculated by dividing the average aggregate inventory value by sales per week at cost.
average aggregate inventory value
The total average value of all items held in inventory by a firm
An emphasis on variety
Which of the following is a design feature of responsive supply chains?
a. An emphasis on variety

b. A low-capacity cushion

c. Enabling high-inventory turns

d. An emphasis on low prices
Outsourcing
Paying suppliers and distributors to perform processes and provide needed services and materials
cash-to-cash
The time lag between paying for the services and materials needed to produce a service or product and receiving payment for it.
Integration
Which supply chain design option category includes the mitigation of supply chain dynamics and risk?
Return on assets
__________ is net income divided by total assets.
Forward integration
__________ is the process of acquiring more channels of distribution, such as distribution centers (warehouses) and retail stores, or even business customers.
External markets
Domestic instability resulting in higher labor costs is an example of which kind of supply chain pressure?
Working capital
__________ is money used to finance ongoing operations.
Demand is predictable and forecast errors are low.
Which of the following is best suited for an efficient supply chain design?
a. Demand is predictable and forecast errors are low.

b. The competitive priorities include customization and fast delivery times.

c. New products are introduced frequently.

d. Contribution margins are high.
Postponement
__________ is a concept whereby some of the final activities in the provision of a service or product are delayed until the orders are received.
Supply chain management
__________ is the synchronization of a firm's processes with those of its suppliers and customers to match the flow of materials, services, and information with demand.
Backward integration
__________ is a firm's movement upstream toward the sources of raw materials, parts, and services through acquisitions.
Freight costs
cost associated with transporting the product or the equipment and personnel who will perform the service?
Underfilled shipments
Which of the following does a firm have the least amount of control over?
a. Underfilled shipments

b. New service or product introductions

c. Information errors

d. Order batching
Information errors
Which of the following does a firm have the most control over?

a. Information errors

b. Underfilled shipments

c. Supply chain complexity

d. Customer-induced volume changes
Supply chain complexity
A firm has the least amount of control over its external customers and suppliers who can periodically cause disruptions.
Which of the following is an external disruption?
RFID
Operational risks are threats to the effective flow of materials, services, and products in a supply chain.
Which of the following options does NOT reduce the risk for operational disruptions and also minimizes the bullwhip effect in supply chains?
a. RFID (radio frequency identification)

b. Visibility

c. Strategic alignment

d. Upstream/downstream supply chain integration
analysis stage of the product development process?
Involves a critical review of the new offering and how it will be produced to make sure that it fits the corporate strategy, is compatible with regulatory standards, presents an acceptable market risk, and satisfies the needs of the intended customers
Supply chain risk management
__________ is the practice of managing the risk of any factor or event that can materially disrupt a supply chain, whether within a single firm or across multiple firms.
Cooperative orientation
__________ is a supplier relation in which the buyer and seller are partners, each helping the other as much as possible.
cross-docking
The packing of products on incoming shipments so that they can be easily sorted at intermediate warehouses for outgoing shipments based on their final destinations
VMI (vendor-managed inventory)
A system in which the supplier has access to the customer's inventory data and is responsible for maintaining the inventory level required by the customer
customer demand planning process?
Facilitates the collaboration of a supplier and its customers for the purpose of forecasting customer requirements for a service or product
value analysis
A systematic effort to reduce the cost or improve the performance of services or products, either purchased or produced.
Visibility
Operational risks are threats to the effective flow of materials, services, and products in a supply chain.
Which of the following options reduces the risk for operational disruptions and also minimizes the bullwhip effect in supply chains?
a. Visibility

b. Hedging

c. Cross-docking

d. RFID (radio frequency identification)
administrative cost
The managerial time, travel, and other variable costs associated with interacting with a supplier
the effective coordination of supply chain processes through the seamless flow of information up and down the supply chain
Supply chain integration is __________.
No price changes
The Internet enables firms to re-engineer their order placement process to benefit both the customer and the firm. The Internet provides the advantages for a firm's order placement process.
Which of the following is NOT an advantage the Internet provides for a firm's order placement process?
a. No price changes

b. Global access

c.Increased revenue flow

d. Decreased cost
presourcing
A level of supplier involvement in which suppliers are selected early in a product's concept development stage and are given significant, if not total, responsibility for the design of certain components or systems of the product
freight cost
The cost associated with transporting the product or the equipment and personnel who will perform the service
Concurrent engineering
__________ is a concept that brings product engineers, process engineers, marketers, buyers, information specialists, quality specialists, and suppliers together to design a product and the processes that will meet customer expectations.
internal disruptions
Service or product promotions are ?
Design
__________ is the first stage of the new service or product development process, and it links the creation of new services or products to the corporate strategy of the firm and defines the requirements for the firm's supply chain.
hedging
A supply chain risk management strategy used in limiting or offsetting the probability of loss from fluctuations in the prices of commodities or currencies
Electronic data interchange (EDI)
__________ enables the transmission of routine business documents from computer to computer over telephone or direct leased lines.
exchange
An electronic marketplace where buying firms and selling firms come together to do business
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