Exam Prep Chapter 5 Operations Management

File: ch05, Chapter 5: Operations Management

Multiple Choice

1. Operations management (OM) is responsible for producing products in a cost-effective and __________ way.
2. Complex
3. Efficient
4. Expensive
5. Outsourced
6. Cellular

Level: Easy

1. OM plays a critical role in a company’s supply chain because it:
2. Produces/delivers the product or service
3. Customizes products
4. Defines location of facilities
5. Works with marketing
6. None of the above

Level: Medium

1. An example of an OM decision would be:
2. Which distribution channels to utilize
3. Where to locate a factory
4. How to schedule workers
5. Market segmentation strategy
6. b and c

Level: Easy

1. The OM decision about ____________ relates to how the product or service will be produced:
2. Product design
3. Facility layout
4. Process design
5. Scheduling
6. Inventory management

Level: Medium

1. A consumer who purchases a Dell computer would be a customer of which type of operation:
2. Cellular
3. Service
4. Manufacturing
5. Intermittent
6. All of the above

Level: Difficult

1. Which factor helped create a greater and critical focus on the OM function:
2. Reduced product cycle times
3. Global competition
4. Supply chain management
5. Early supplier involvement
6. b and c

Level: Medium

1. Product and process design together can impact:
2. Quality
3. Cost
4. Customer satisfaction
5. All of the above
6. None of the above

Level: Easy

1. The __________ nature of a service makes product design more complex:
2. Standardized
3. Intangible
4. Intermittent
5. Costly
6. None of the above

Level: Difficult

1. The design of service processes should include the following elements:
2. Physical, psychological, relational
3. Psychological, relational, marketing
4. Physical, sensual, psychological
5. Sensual, relational, operations
6. None of the above

Level: Easy

1. An effective product design process should encompass four steps, including:
2. Customer relationship management
3. Product screening
4. Psychological benefit analysis
5. Standardization
6. a and b

Level: Easy

1. The _________ stage of the product design process may include early supplier involvement:
2. Idea development
3. Preliminary design
4. Final design
5. Break even analysis
6. None of the above

Level: Difficult

1. The variable cost of a new computer keyboard is $25 per unit, and the fixed costs to produce the keyboard are $20,000 per year. If the selling price of the keyboard is $45, how many units must the company sell to break even?
2. 800 units
3. 445 units
4. 2000 units
5. 1000 units
6. None of the above

Level: Medium

1. Design for manufacturing (DFM) guidelines focus on ________ and ________:
2. Risk and return
3. Features and benefits
4. Cost and service
5. Simplification and standardization
6. None of the above

Level: Easy

1. Understanding the evolution of a product, from introduction to maturity, is known as:
2. Cycle time management
3. Concurrent engineering
4. Remanufacturing
5. Design for manufacturing
6. Product life cycle management

Level: Easy

1. Features of a repetitive process include:
2. High work in process inventory
3. Early stage of product life cycle
4. Large product variety
5. Capital–intensive resources
6. Long throughput time

Level: Difficult

1. A(n) __________ process focuses on providing product customization:
2. Intermittent
3. Repetitive
4. Standardized
5. Late stage
6. None of the above

Level: Medium

1. _________ processes produce small quantities of products in groups based on particular specifications or customers:
2. Project
3. Line
4. Continuous
5. Batch
6. None of the above

Level: Easy

1. The _______ process type should be used when producing to very specific customer needs:
2. Standardization
3. Customization
4. Line
5. Continuous
6. Project

Level: Difficult

1. When designing facility layout, the _______ layout fits best with intermittent processes:
2. Product
3. Fixed position
4. Cellular
5. Process
6. None of the above

Level: Difficult

1. ___________ is the facility layout that would best fit with the production of a jumbo jetliner.
2. Product
3. Fixed position
4. Cellular
5. Process
6. None of the above

Level: Difficult

1. Defining logical sequence and speed of the production process relates to:
2. Early supplier involvement
3. Market segmentation
4. Line balancing
5. Cellular manufacturing
6. Process design

Level: Difficult

1. The maximum amount of time each station on an assembly line has to complete a task is known as:
2. Line balancing
3. Process design
4. Intermittent processes
5. Product design
6. Cycle time

Level: Medium

1. An initial disadvantage of automation for companies is:
2. Cost
3. Improved quality
4. Replacing workers
5. Security
6. None of the above

Level: Easy

1. A primary advantage of automation for a variety of reasons is:
2. Replaces workers with machines
3. Economic improvements
4. Product quality and consistency
5. Improved worker security
6. All of the above

Level: Easy

1. When automating processes in a service business, a strategic consideration should be:
2. Customer expectations and markets
3. Costs
4. Suppliers
5. Product design
6. Process design

Level: Medium

True/False

1. Operations management (OM) is the function that is responsible for producing goods and services.

Level: Easy

1. The OM function manages a company’s resources, including labor and materials.

Level: Easy

1. Not all companies have an OM function.

Level: Easy

1. OM plays a transformative role in an organization because it is independent of other functions.

Level: Medium

1. In OM decisions, an example of a product design decision is defining an inventory strategy.

Level: Medium

1. Decisions about the best location for a factory or warehouse relate to OM.

Level: Medium

1. The degree of customer contact is a key differentiator between manufacturing and service operations.

Level: Difficult

1. Service organizations produce products that can be made prior to customer purchase.

Level: Medium

1. With globalization, OM has become a way for companies to gain a competitive advantage.

Level: Easy

1. In the evolution of OM, quality and competitiveness became crucial in the 1950s.

Level: Medium

1. In the evolution of OM, its “back office” role was partially a result of firms’ extensive focus on marketing and developing new markets.

Level: Medium

1. The role of product design in the OM function is to define the features and marketing tactics for a company’s product.

Level: Difficult

1. Product design decisions will impact almost every other decision the company must make in terms of producing and delivering the product to the customer.

Level: Easy

1. Process design is distinct from product design in the OM function.

Level: Difficult

1. Service design has three elements including the physical, psychological, and sensual.

Level: Easy

1. Early supplier involvement (ESI) is the process by which suppliers negotiate early contractual terms with customers.

Level: Medium

1. During product screening, the finance department would primarily be concerned with whether sources of supply are available.

Level: Medium

1. At the breakeven point, total costs of the product equal the revenue generated from sales of the product.

Level: Easy

1. Design for manufacturing (DFM) considers the ease at which a product can be produced.

Level: Medium

1. Design simplification seeks to utilize fewer parts that are required to produce a product.

Level: Easy

1. Standardizing design seeks to utilize a common set of parts to produce a product.

Level: Medium

1. Remanufacturing has become an effective tool in designing sustainable operations.

Level: Medium

1. Process design is important because it ultimately defines the production process.

Level: Medium

1. Intermittent processes produce high volumes of standardized products.

Level: Medium

1. Repetitive processes typically occur in the early stages of a product’s life cycle.

Level: Medium

1. Project processes produce products exactly to a particular customer’s expectations.

Level: Medium

1. Batch and line processes are similar.

Level: Medium

1. There are four types of facility layout: fixed position, process, product, cellular.

Level: Easy

1. The best facility layout for producing an automobile would be a product layout.

Level: Medium

1. Understanding cycle time is critical to the process of line balancing.

Level: Difficult

Essay

1. Describe the transformational role of operations in an organization and provide an example.

Level: Easy

1. Describe the evolution of the operations management (OM) function.

Level: Medium

1. Describe the sequential steps of the product design process.

Level: Difficult