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89 Cards in this Set

  • Front
  • Back
Which of the following are the primary functions of all organizations?
Finance/accounting
Operations/production
Marketing
Budgeting, paying the bills, and collection of funds are activities associated with?
Finance
The marketing function's main concern is with
Generating the demand
The five elements in the management process are
Planning
Organizing
Staffing
Leading
Controlling
The "Father of Scientific Management" is
Frederick W. Taylor
Henry Ford is noted for his contributions to
Moving Assembly Line
Who among he following is associated with contributions to quality control operations
Patrick Demming
A foundry produced circular utility access hatches (manhole covers). Currently 240 covers are produced in a 10/hr shift. If labor productivity increase by 20% it would then be?
240 x .20 = 48

=48 + 240= 288

=288/10hr or

28.8 covers per hr
The Dulac box plant produced 1000 cypress packing boxes in two 10-hour shifts. What is the productivity of the plant?
=1000/20 = 50

= 50 packing boxes per hour
Productivity can be improved by
a) Increasing inputs while holding outputs steady
b) Decreasing outputs while holding inputs steady
c) Increasing inputs and outputs in the same proportion
d) decreasing inputs while holding outpts steady
e) none of the above
= d) decreasing inputs while holding outputs steady
A strategy is a(n)
How an organization expects to achieve its missions and goals
Which of the following is true about business strategies?
a) An organization should stick with its strategy for the life of the business
b) All firms within an industry will adopt the same strategy
c) Well defined missions make strategy development much easier
d) Strategies are formulated independently of SWOT analysis
e) Organizational strategies depend on operations strategies
=c) well defined missions make strategy development much easier
The ability of an organization to produce goods or services that have some uniqueness in their characteristics is
a) mass production
b) time-based competition
c) competing on productivity
d) competing on flexibility
e) competing on differentiation
= e) competing on differention
Which of the following influences layout design?
a) Inventory requirements
b) capacity needs
c) personnel levels
d) purchasing decisions
e) all of the above influence layout decisions
=e) all of the above influence layout decisions
Standardization is an appropriate strategy is an appropriate strategy in which stage of the product life cycle?
= Maturity
Cost minimization is an appropriate strategy in which stage of the product cycle?
=decline
The three steps of the operations manager's job IN ORDER, are
1) Strategy
2) Structuring
3) Staffing
Multinational organizations can shop from country to country and cut costs through
= answer is e) all of the above

is talking about reducing costs through, cheaper labor, utilizing labor more efficiently and so on.
Which of the international operations strategies uses import/export or licensing of existing products?
= international strategy
Which of the following international uses the existing domestic model globally?
= multi-domestic strategy
Forecasts are usually classified by time horizon into three categories
1) short range - up to 1 year usually less than 3 months
2) medium range - 3 months to 3 years
3) long-range 3 years or more
Which of the following is not a step in the forecasting process?
a) determine the use of forecast
b) eliminate any assumptions
c) determine the time horizon
d) select forecasting mode
e) validate and implement the results
= eliminate any assumptions
The two general approaches to forecasting are
quantitative analysis and qualitative approach
Types of qualitative methods
1) jury of executive opinion
2) delphi method
3) sales forecast composite
4) consumer market survey
Types of quantitative methods
1) Naive approach
2) moving averages
3) exponential smoothing
4) trend projection
5) linear regression
Which of the following uses three types of participants: decision makers, staff personnel and respondents?
delphi method
which of the following is not a qualitative forecasting
TYPES THAT ARE QUALITIATIVE

1) Jury of executive opinion
2) delphi method
3) sales force composite
4) Consumer Market survey

note answer must be either: naive approach, moving average, exponential smoothing, trend projection or linear regression
Gradual, long-term movement in a time series data is called
trend
which time series model below assumes that demand in the next period will be equal to the most recent periods demand
naive approach
increasing the number of periods in a moving average will accomplish greater smoothing at the expense of
it is less sensitive to changes
the ability of a product or service to meet customer needs
quality
"The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
American Society of Quality
They propose that quality "lies in the eyes of the beholder" Marketing people like this approach and so do customers. To them higher quality means better performance, nicer features , and other improvements
User-based Quality
To production managers, they believe that quality means conforming to standards and "making it right the first time."
Manufacturing based
views quality as a precise and measurable variable. In this view, for example, really good ice cream has high butterfat levels
product-based
1) create consistency of purpose
2) lead to promote change
3) build quality into the product; stop depending on inspection
4) build long-term relationships based on performance, not price
5) continuously improve product, quality, and service
6) start training
7) emphasize leadership
8) drive out fear
9) break down barriers between departments
10) stop haranguing workers
11) support, help, improve
12) remove barriers to pride in work
13) institute a vigorous program of education and self-improvement
14) put everybody in the company to work on the transformation
Demings 14 points of quality
A set of quality standards developed by the International Standard Organization. The focus of the standards is to estimate quality management procedures, through leadership, detailed documentation, work instructions and record keeping (deals entirely with the standards of the product not the actual quality of the product)

ISO 9000 is the only quality standard with international recognition. In 1987, 91 member nations published a series of quality assurance standards, known collectively as ISO 9000

To become ISO 9000 certified, organizations must go through a 9 to 18 month process that involves documenting qualityy procedures, an on-site assessment, and an ongonig series of audits of their products or services. To do business, globally - and especially in Europe - being listed in the ISO directory is critical. As of 2005, there were well over 600,--- certifications awarded to firms in 152 countries. About 50,000 firms are ISO 9000 certified
A set of quality standards developed by the International Standard Organization. The focus of the standards is to estimate quality management procedures, through leadership, detailed documentation, work instructions and record keeping (deals entirely with the standards of the product not the actual quality of the product)

ISO 9000 is the only quality standard with international recognition. In 1987, 91 member nations published a series of quality assurance standards, known collectively as ISO 9000

To become ISO 9000 certified, organizations must go through a 9 to 18 month process that involves documenting qualityy procedures, an on-site assessment, and an ongonig series of audits of their products or services. To do business, globally - and especially in Europe - being listed in the ISO directory is critical. As of 2005, there were well over 600,--- certifications awarded to firms in 152 countries. About 50,000 firms are ISO 9000 certified
encompasses entire organization, from supplier to customer

stresses a commitment by management to have a continuing, companywide drive toward excellence in all aspects of products and services that are important to the customer
TQM
A program to save time and lower costs, Six Sigma is a comprehensive system- a strategy, a discipline, and a set tools - for achieving and sustaining business success

a statistical definition of a process
a program designed to reduce defects, lower costs, and improve customer satisfaction
approach desin
A program to save time and lower costs, Six Sigma is a comprehensive system- a strategy, a discipline, and a set tools - for achieving and sustaining business success

a statistical definition of a process
a program designed to reduce defects, lower costs, and improve customer satisfaction
approach desin
Three types of process are:
process focus
repetitive focus
product focus
which of the following industries is likely to have to have low equipment utilization
example: restaurant
an assembly line is an example of a
repetitive focus
What is TRUE about repetitive processes..

-a repetitive focus falls between product and process focuses. Repetitive processes use modules. Modules are parts or components previously prepared, often in a continuous process

-the repetitive process line is the classic assembly line. Widely used in the assembly of virtually all automobiles and household appliances, it has more structure and consequently less flexibility

-Fast good firms are an example of a repetitive process using modules
What is TRUE about repetitive processes..

-a repetitive focus falls between product and process focuses. Repetitive processes use modules. Modules are parts or components previously prepared, often in a continuous process

-the repetitive process line is the classic assembly line. Widely used in the assembly of virtually all automobiles and household appliances, it has more structure and consequently less flexibility

-Fast good firms are an example of a repetitive process using modules
Which of the following phrases best describes Product Focus

High volume, low variety processes are product focused. The facilities are organized around products. The are also called continuous processes, because they very long, continuous production runs.

Products such as glass, paper, tin sheets, light bulbs, beer, and bolts are made via continuous process

Some products, such as light bulbs, are discrete; others, such as rolls of paper, are non discrete. Still others such, as repaired hernias shouldice hospital, are services.

It is only with standardization and effective quality control that firms have established product-focused facilities
Which of the following phrases best describes Product Focus

High volume, low variety processes are product focused. The facilities are organized around products. The are also called continuous processes, because they very long, continuous production runs.

Products such as glass, paper, tin sheets, light bulbs, beer, and bolts are made via continuous process

Some products, such as light bulbs, are discrete; others, such as rolls of paper, are non discrete. Still others such, as repaired hernias shouldice hospital, are services.

It is only with standardization and effective quality control that firms have established product-focused facilities
Which of the following phrases best describes process focus

Seventy-five percent of all global production is devoted to making low-volume, high-variety products in places called "job shops"

such facilities are organized around specific activities or processes. in a factory, these processes might be departments devoted to welding, grinding and painting. In an office, the processes might be accounts payable, sales, and payroll. In a restaurant they might be bar, grill and backery.

Such facilities are process focused in terms of equipment, layout and supervision. They provide a high degree of product flexibility as products move intermittently between processes. Each process is designed to perform a wide variety of activities and handle frequent chagnes. Consequently they are also called intermittent processes. Thse facilities have high variable costs and extremely low utilization of facilities, as law as 5%. This is the case for many restaurants, hospitals, and machine shops. However, some facilities do somewhat better through the use of innovative
Which of the following phrases best describes process focus

Seventy-five percent of all global production is devoted to making low-volume, high-variety products in places called "job shops"

such facilities are organized around specific activities or processes. in a factory, these processes might be departments devoted to welding, grinding and painting. In an office, the processes might be accounts payable, sales, and payroll. In a restaurant they might be bar, grill and backery.

Such facilities are process focused in terms of equipment, layout and supervision. They provide a high degree of product flexibility as products move intermittently between processes. Each process is designed to perform a wide variety of activities and handle frequent chagnes. Consequently they are also called intermittent processes. Thse facilities have high variable costs and extremely low utilization of facilities, as law as 5%. This is the case for many restaurants, hospitals, and machine shops. However, some facilities do somewhat better through the use of innovative
-a repetitive focus falls between product and process focuses. Repetitive processes use modules. Modules are parts or components previously prepared, often in a continuous process

-the repetitive process line is the classic assembly line. Widely used in the assembly of virtually all automobiles and household appliances, it has more structure and consequently less flexibility

-Fast good firms are an example of a repetitive process using modules
-a repetitive focus falls between product and process focuses. Repetitive processes use modules. Modules are parts or components previously prepared, often in a continuous process

-the repetitive process line is the classic assembly line. Widely used in the assembly of virtually all automobiles and household appliances, it has more structure and consequently less flexibility

-Fast good firms are an example of a repetitive process using modules
Process A has fixed costs of $1000 and variable costs of $15 per unit. Process B has fixed costs of $500 and variable costs of $25. the crossover point between process A and process B is
x = 50
where two processes are equal, and where the next unit of production will be cheaper for the prcess with a lower variable cost
The cross over point
a drawing of the movement of material, product or people is a
flow diagram: is a drawing used to analyze movement of people of material
The use of information technology to monitor and control a physical process is known as
process control

process control is the use of informatoin techonlogy to control physical process
Time a sample of a workers' performance and using it to set a standard is the work measurement technique of
time study
in time studies, average observed time for an element is determined by:
avg observed time = sum of times recorded to perform each element/ number of observations
in time studies, normal time is defined as:
The observed time, adjusted for pace
The smaller the percentage established for allowances
the closer is normal time is to standard time
which of the following are TRUE regarding allowances in time studies?
a) they have a "constant" and a "variable component
b)They are adjusted for work conditions such as heating, lighting, and noise
c) they include allowances for personal time, delay, and fatigue
d) they represent the adjustment between normal time and standard time
e) all of the above are ture
e) all of the above are true
A technique for estimateing the proportion of time a worker spends on various activities is
work sampling
the tally sheet data from a work sampling study provides information regarding
the percent of time spent on various tasks
Therblighs are defined as
basic physical elements of motion
an approach that specifies the tasks that constitute a job for an individual or a group
job design
a system in which an employee is moved from one specialized job to another
job rotation
the study of work: often called human factors
ergonomics
In the make-or-buy decision, one of the reasons for buying is
frees management to deal with its primary business
in the make-or-buy decision, one of the reasons for making is
lower production costs
A fried chicken fast-food chain that acquired feed mills and poultry farms has performed
backward integration
A rice mill in south louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of
forward integration
The three stages of vendor selection, in order, are
1) vendor evaluation
2) vendor development
3) negotiation
ABC analysis is based upon the principle that
a) all items in inventory must be monitored very closely
b) there are usually a few critical items, and many many items which are less critical
c) an item is critical if its usage is high
d) the safety stock (in terms of volume) should be higher for A items than for C items
e) an item is critical if its unit price is high
=b) there are usually a few critical items, and many items which are less critical
ABS analysis divides on-hand inventory into three classes, generally based upon
a) item quality
b) unit price
c) the number of units on hand
d) annual demand
e) annual dollar volume
e) annual dollar volume
the two most basic inventory questions answered by the typical inventory model are
a) timing and cost of orders
b) quantity and cost of orders
c) timing and quantity of orders
d) order quantity and service level
e) ordering cost and carrying cost
= c) timing and quantity of orders
Most inventory models attempt to minimie
a) the likelihood of a stockout
b) the number of items ordered
c) total inventory based costs
d) the number of orders placed
e) the safety stock
= c) total inventory based costs
The proper quanitity of safety stock is typically determined by
a) minimizing an expected stockout cost
b) carrying sufficient safety stock so as to eliminate all stockouts
c) meeting 95% of all demands
d)setting the level of safety stock so that a given stockout risk is not exceeded
e) minimizing total costs
=d) setting the level of safety stock so that a given stockout risk is not exceeded
The purpose of safety stock is to
a)replace failed units with good ones
b) eliminate the possibility of a stockout
c) eliminate the likelihood of a stockout due to erroneous inventory tally
d) control the likelihood of a stockout due to the variability of demand during lead
e) protect the firm from a sudden decrease in demand
?=b) eliminate the possibility of a stockout
The three components that can lead to competitive advantage through effective scheduling are
a) aggregate planning, intermedate scheduling, and medium-term planning
b) forward scheduling, real-time scheduling, and backward scheduling
c) the item master file, the routing file, and the work-center master file
d) lower costs, faster delievery, and more dependable schedules
e) Gantt charts, Johnson's rule and the Pareto principle
=d) lower costs, faster delievery, and more dependable schedules
Forward scheduling is the scheduling of:
a) the end items or finished products
b) jobs as soon as the requirement are known
c) the start items or components parts
d) the final operation first beginning with the due date
e) jobs according to their profit contributionsO
=b) jobs as soon as the requirements are known
Orders are processed in the sequence in which they arrive if (the) ______ rule sequences the jobs
a) earliest due date
b) slack time remaining
c) first come, first served
d) critical ratio
e) Johnson's
= c) first come first served
Which of the following dispatching rules ordinarily gives the best results when the criterion is lowest time for completion of the full sequence of jobs
a) shortest processing time (SPT)
b) critical ratio (CR)
c) first in, first out (FIFO)
d) first come, first served (FCFS)
e) longest processing time
= a) shortest processing time (SPT)
See question 21 on chapter 15 exam reivew
See question 21 on chapter 15 exam reivew
The role of sequencing (or dispatching) is to:
a) assign dates to specific jobs or operations steps
b) assign jobs to work centers
c) specify the order in which jobs should be done at each center
d) assign workers to jobs
e) assign workers to machines
=c) specify the order in which jobs should be done at each center
see question 23 chapter 15 final exam review
see question 23 chapter 15 final exam review
Flow time represents the time
a) an order spends waiting for processing at a work center
b) an order spends being processed at a work center
c) an order spends moving from one work center to another
d) to complete an order, including time spent in processing and in wating
e) none of the above
=d) to complete an order, including time spent in processing and in wating
Average completion time for a scheduled sequence at a work center is the ratio of:
a) total processing time to the number of jobs
b) total flow time to total processing time
c) total flow time to the number of jobs
d) total processing time plus total late time to the number of jobs
e) total flow time plus total late time to the number of jobs
= c) total flow time to the number of jobs
see question 26 chapter 15 of the exam review
see question 26 chapter 15 of the exam review
The implementation of JIT offers several advantages including
a) reduced throughput
b) increase variablity to better respond to variable demand
c) decreased profit margins
d) support for lean production
e) increased work in process inventory
=d) support for lean production
manufacturing cycle time is best defined as the
a) length of the work shift, expressed in minutes per day
b) time it takes a unit to move from one workstatation to the next
c) time between the start of one unit and the start of the next unit
d) sum of all the task times to make one unit of a product
e) time from raw materials receipt to finished goods
= e) time from raw materials receipt to finished product exit
Characteristics of JIt partnerships with respect to quantities include
a) short-term contracts to ensure flexibility
b) suppliers package in exact quantities
c) variable output rate
d) suppliers determine the quantities to be delivered based on their own production schedules
e) suppliers increase production lot sizes in order to achieve economies of scale
)
=b) suppliers package in exact quantities
Characteristics of JIT partnerships with respect to suppliers include
a) competitive bidding encouraged
b) buyer plant pursues vertical integration to reduce the number of suppliers
c) support suppliers so they become or remain price competitive
d) most suppliers at considerable distance from purchasing organization
e) all of the above are characteristics of JIT partnerships
=c) support so they become or remain price competitive
Reduction of in-transit inventory can be encouraged through use of
a) supplier location near plant
b) low setup costs
c) low carrying costs
d) use of trains, not trucks
e) low-cost, global suppliers
=a) supplier location near plants
A manufacturer took the following actions to reduce inventory. which of these is generally NOT accepted as a JIT action?
a) it used a pull system to move inventory
b) it produced in ever smaller lots
c) it required deliveries directly to the point of use
d) it picked up the supplier that offered the lowest price based on quantity discounts
e) it worked to reduce the company's in-transit inventory
=d) it picked the supplier that offered the lowest price based on quantity discounts
Which of the following is NOT an attribute of lean producers?
a) eliminating almost all inventory through just-in-time techniques
b) minimizing space requirements by reducing the distance a part travels
c) pushing responsibility to the highest level possible through centralized decision making
d) educating suppliers to accept responsibility for helping meet customer needs
e) all of the above are attributes of lean producers
= c) pushing responsibility to the highest level possible through centralized decision making