SCMT 364 FINAL

Efficiency means doing the right things to create the most value for the company.
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Terms in this set (82)
Efficiency means doing the right things to create the most value for the company.
FALSE
A process can be effective without being efficient.
TRUE
"Operations" refers to manufacturing and service processes used to transform resources employed by a firm into products desired by customers.
TRUE
The only major supply chain processes are planning, sourcing, delivering, and returning.
FALSE
An operations and supply chain strategy must be integrated with the organization's corporate strategy.
TRUE
The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio is called straddling.
TRUE
An operations strategy must resist change because of the long-term nature of equipment and personnel investments.
FALSE
Productivity is a relative measure.
TRUE
Concept development is one of the typical phases of product development.
TRUE
One of the methodologies that can aid in designing a new product for customers is a house of quality matrix.
TRUE
Core competencies are those things that everyone in the firm must be able to do well.FALSEAn event unit package is a subdivision of a project.FALSEThe second step in managing a project is writing the statement of workFALSEOne of the advantages of a functional project organizational structure is that a team member can work on several projects.TRUEOne of the assumptions made using CPM is that project activity sequence relationships can be specified and networked.TRUECapacity can be defined as the input that a system is capable of achieving over some unit of timeFALSEThe objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities, equipment, and overall labor force size) that best supports the company's short-range competitive strategy.FALSEA piece of equipment with twice the capacity of another piece typically costs twice as much to purchase and to operate.FALSEWhen plotted on a graph, the learning curve can't be expressed as logarithm.FALSEAn assumption of learning curves is that the time required to complete a unit will increase at an increasing rate as the cumulative number of units completed increases.FALSEEconomies of scale and the learning curve have opposite effects on capacity.FALSEBreak-even analysis can only be used in production equipment decision making when dealing solely with variable costFALSEOne difference between an assembly line process flow and a continuous process flow is that on the assembly line, the flow is discrete rather than continuous.TRUEWork-center layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements.FALSEOne characteristic of a well-designed service system is that it is cost-effective.TRUEBecause little or no inventory is carried in a service operation, it is easy to separate the operations management functions from marketing in services.FALSEAn important aspect of service products is that they cannot be inventoried.TRUERun time is calculated by multiplying the number of units in a batch by the setup timeFALSEIf you want to reduce process flow time, it has been suggested that you can perform activities in the process in parallel.TRUEThroughput rate of a production process is the amount of time a unit spends actually being worked onFALSEUtilization of a production process is the ratio of output to inputFALSEConformance quality is a strategic decision for a firm.FALSEDesign quality refers to the inherent value of the product in the marketplace.TRUEOne SPC tool used in total quality management is the Pareto chart.TRUEOne hundred percent inspection is justified when the cost of inspection is low.FALSEAcceptance sampling is performed on goods that already exist to determine what percentage of items conforms to specifications.TRUEIt is impossible to have zero variability in production processes.TRUEFacility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.TRUEBecause the world is becoming more highly interconnected, the proximity of an important supplier's plants is not crucial in supporting lean production methodsFALSEFacility location decisions are made using analytical techniques that typically weigh a large number of different variables equally.FALSEFunctional products include staples that people buy in a wide range of retail outlets, such as gas stations.TRUELogistics is a term indicating transportation choices for goods produced internationally but consumed domestically.FALSEAn improvement-driven reason for outsourcing is that it can increase cycle timeFALSETrend lines are usually the last things considered when developing a forecast.FALSEIn a forecasting model using simple moving average, the shorter the time span used for calculating the moving average, the closer the average follows volatile trends.TRUEA central premise of exponential smoothing is that more recent data are less indicative of the future than data from the distant past.FALSEA restriction in using linear regression is that it assumes that past data and future projections fall on or near a straight line.TRUEOne of the basic purposes of inventory analysis in manufacturing and stock keeping services is to determine the level of quality to specify.FALSEFixed-time-period inventory models are "event triggered.FALSESafety stock is not necessary in any fixed-time-period system.FALSEWhich of the following is *not* a characteristic that distinguishes services from goods? a. Service jobs are unskilled. b. A service is intangible. c. Services are perishable. d. Services are heterogeneous. e. None of theseAThe goods-services continuum consists of which set of the following categories? a. No goods, some goods, even mix, some service, no service b. Pure goods, core goods, core services, pure services c. No service, some service, good service, excellent service d. Self-service, help desk service, face-to-face service, service-with-a-smile e. None of theseBIf all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity? a. Partial measure b. Multifactor measure c. A Relative Weighted measure d. Partial measure and Multifactor measure e. Multifactor measure and A Relative Weighted measureDWhich of the following is a total measure of productivity? a. Output/Materials b. Output/(Labor + Capital + Energy) c. Output/Labor d. Output/Inputs e. All of theseDWhich of the following is *not* a major strategic operational competitive dimension that forms a company's competitive position? a. Cost or price b. Delivery speed c. Delivery reliability d. Management acumen e. Coping with changes in demandDThe total output from a production system in one day is 900 units. The total labor necessary to produce the 900 units is 1800 hours. The total energy required was 1500 kilowatts. The required machine hours totaled 1000 hours. Using the appropriate productivity measure for total labor, what is the resulting productivity ratio? a. 0.500 b. 1.428 c. 0.700 d. 0.411 e. None of theseAWhich of the following is *not* a typical phase of product development? a. Concept development b. Value engineering c. System-level design d. Testing and refinement e. Production/ramp-upBWhich of the following is not a component of the "Generic Product Categories"? a. Platform products b. Process-intensive products c. Customized products d. Quick-build products e. Cost-responsive productsEAn advantage of a pure project where self-contained teams work full time on a project is which of the following? a. Team members can work on several projects. b. Functional area is a "home" after the project is completed. c. There are duplicated resources. d. Lines of communication are shortened. e. Overall organizational policies and goals can be ignored.DA project can be subdivided into which of the following? a. Job orders b. Sub-jobs c. Work packages d. Sub-paths e. Events and decisionsCIf the actual output of a piece of equipment during an hour is 400 units and its best operating level is at a rate of 500 units per hour, which of the following is the capacity utilization rate? a. 0.80 b. 0.90 c. 1.25 d. 1.33 e. 100AWhen a service system is running at 80% of capacity, the system is said to be: a. In the "Zone of Service" b. In "Steady State" c. In the "Critical Zone" d. In the "Zone of Nonservice" e. In the zone of "Optimal Utilization"CYou have just timed a person doing a haircut for the first time. The haircut took 50 minutes. What unit improvement factor learning curve would you use if the person took 35 minutes on the second hair cut? a. 35 percent b. 50 percent c. 70 percent d. 75 percent e. 80 percentCThe general guidelines provided in the notes on improving individual learning based on learning curves include which of the following? a. Use a cumulative improvement factor. b. Use a unit improvement factor. c. Do one or very few jobs at a time. d. Explain learning logarithm analysis to workers. e. Avoid feedback until the job is completeCAssume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the following is the number of units that has to be produced and sold to break even? A. 5,000 units B. 6,000 units C. 8,000 units D. 11,000 units E. 12,000 unitsCWhich of the following is not considered a major work flow structure? A. Work center B. Project C. Assembly line D. Fabrication E. Continuous flowDWhich of the following is one of the three contrasting approaches to delivering on-site service? A. Quality approach B. Stock market approach C. Production-line approach D. Retail approach E. Professional approachCWhich of the following is not a characteristic of a well-designed service system? A. Robust B. Cost-effective C. Puts customers in charge D. User-friendly E. Effectively links "front office" with "back office"CWhich of the following best describes the term "cycle time"? A. Average time between completions of successive units B. Ratio of the time a resource is activated over its use C. Can be no more than 60 minutes D. The same as utilization E. The labor content of the item being measuredATo reduce process flow time, you might try which of the following actions? A. Perform activities in parallel. B. Change the sequence of activities. C. Reduce interruptions. D. Acquire additional equipment. E. All of theseEThe dimension of design quality that concerns the consistency of performance over time or the probability of failing is which of the following? A. Response B. Serviceability C. Reliability D. Reputation E. Perceived qualityCWhich of the following is the cost of quality classification for costs such as defects that pass through the system (e.g., customer warranty replacements, loss of customer or goodwill, handling complaints, and product repair)? A. Appraisal costs B. Prevention costs C. External failure costs D. Customer return cost E. Workmanship costsCFor which of the following should we use an R-chart to monitor process quality? A. Weighing trucks at a highway inspection station to determine if they are overloaded B. Deciding whether an airliner has sufficient fuel for its trip C. Student grades measured from 1 to 100 D. Determining whether vehicles from a motor pool will run E. Determining the accuracy of a forecast of "snow"CYou are developing a p-chart. You know the standard deviation of the sample means is 0.1, the desired confidence level is 99.7 percent, and the average proportion is 0.5. Which of the following is your UCL? A. 0.5 B. 0.3 C. 0.8 D. 0.2 E. None of theseCWhich of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions? A. Proximity to customers B. Historical cost C. Infrastructure of a country D. Quality of labor E. Business climateBWhich of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped? A. Factor-rating systems B. Centroid method C. Decision trees D. Linear programming E. Regression analysisBWhich of the following is an improvement-driven reason for outsourcing? A. Shorten cycle time. B. Improve effectiveness by focusing on what the firm does best. C. Increase product and service value by improving response to customer needs. D. Turn fixed costs into variable costs. E. Reduce costs through a lower cost structure.AOwnership costs include which of the following costs? A. Environmental costs B. Warranty costs C. Supply chain costs D. Quality costs E. TaxesCWhich of the following forecasting methodologies is considered a qualitative forecasting technique? A. Simple moving average B. Market research C. Linear regression D. Exponential smoothing E. Multiple regressionBThe exponential smoothing method requires which of the following data to forecast the future? A. The most recent forecast B. Precise actual demand for the past several years C. The value of the smoothing constant delta D. Overall industry demand data E. Tracking valuesAIn making any decision that affects inventory size, which of the following costs do not need to be considered? A. Holding costs B. Shortage costs C. Ordering costs D. Fixed costs E. Shortage costsDIf annual demand is 1,000 units, the ordering cost is $500 per order, and the holding cost is $1 per unit per year, which of the following is the optimal order quantity using the fixedorder-quantity model? A. 500 B. 1000 C. 5000 D. 50,000 E. 1,000,000B