WorksheetsOperations Management Quiz
Total questions: 62
Worksheet time: 31mins
Which of the following refers to the extension of the lean management philosophy to areas of the business not directly related to production or service provision (HR, accounting, sales, etc.)?
Lean enterprise
Total quality management
Six Sigma
Just-in-time
The value created by taking the time to watch a good comic routine on the internet is an example of is a ______ transformation process.
Psychological
Physical
Informational
Social
Emotional
Three additional areas of focus were mentioned for the 1990’s up to the present. Which of the following was NOT one of those focuses?
Outsourcing of jobs and illegal immigration
Globalization
Sustainability
E-commerce
The Japanese influence of the 1980’s focuses on three broad initiatives. Which of the following was NOT one of those initiatives?
Project management
Total quality management
Just-in-time production
Employee empowerment
Both strategic and tactical decisions must be made to be successful in operations management. The decision between buying one of two different hand tools for a manufacturing process would be a
Tactical decision
Strategic decision
Operational decision
Financial decision
The transformation process of changing inputs (human resources, facilities, technology, materials) into outputs (goods and services) centers on
Creative value for the customer in order to make a profit
Reducing costs to increase profit margins
Increasing production speed
Enhancing product quality
Operations management is the business function that plans, coordinates, and controls the resources needed to produce a company's
Products and services
Marketing strategies
Financial reports
Human resources
Which of the following statements is true?
Services typically have some product component and products typically have some service component
Products are entirely separate from services
Services do not involve any tangible products
Products and services are identical
The most important business stakeholder is
The customer
The supplier
The employee
The shareholder
The value created by turning raw materials into a finished product (wood into a desk) is an example of is a ____ transformation process.
Physical
Informational
Psychological
Social
The Industrial Revolution resulted in the beginning of modern operations management. One significant contribution during that period of time was the concept of division of labor. Who was the historical figure that suggested this approach to greater efficiency?
Adam Smith
Henry Ford
Frederick Taylor
Eli Whitney
Which of the following does NOT rely on the integration of business functions for decision making?
Material requirements planning (MRP)
Enterprise resource planning (ERP)
Supply chain management (SCM)
Customer relationship management (CRM)
Federal Express and LensCrafters have developed a business strategy to compete primarily in which area in terms of competitive priorities?
Time
Cost
Quality
Flexibility
Southwest airlines and Walmart have developed a business strategy to compete primarily in which area in terms of competitive priorities?
Cost
Quality
Time
Flexibility
Which of the following is TRUE according to the instructor?
Effectiveness must be considered before efficiency
Efficiency is more important than effectiveness
Both effectiveness and efficiency are equally important
Neither effectiveness nor efficiency is important
Identification of market trends, competitive threats, and market opportunities are key elements of
An environmental analysis
A financial analysis
A marketing strategy
A sales forecast
The most important, overriding goal of a business is to
Satisfy customer
Maximize profit
Expand market share
Innovate products
Productivity is the ratio of inputs to outputs. Which of the following approaches will NOT increase productivity?
Decrease the outputs and increase the inputs
Increase the outputs and decrease the inputs
Maintain the same level of inputs and increase outputs
Decrease the inputs and maintain the same level of outputs
Productivity (and the numerical ratio that is developed)
Should be interpreted in relationship to a past productivity figure or to the productivity value of another company or industry standards
Is an absolute measure that stands alone
Is only relevant within the same company
Does not require comparison to other figures
What was the productivity of crew 1 in terms of lawns per hour?
1.25
1.50
1.75
2.00
Which crew had the highest productivity in terms of lawns per hour?
Crew #2
Crew #1
Both crews had the same productivity
Neither crew was productive
Last week crew 1 mowed 10 lawns in 10 hours. What was the percentage increase in productivity for crew 1 from last week to this week?
25%
50%
75%
100%
What is the labor productivity calculation for the salon?
2.50
3.00
3.50
4.00
What is the total productivity measure (including labor, supplies, and overhead) for the salon?
$1.32 per $1 of inputs (45/(18+4+12))
$1.50 per $1 of inputs (45/(18+4+12))
$1.75 per $1 of inputs (45/(18+4+12))
$2.00 per $1 of inputs (45/(18+4+12))
You have completed a forecast of historical data and calculated MAD to be =50 and bias to be -55. Which of the following statements is true?
Your average error is 55 units and you’re under forecasting more than you are over forecasting
Your average error is 50 units and you’re over forecasting more than you are under forecasting
Your average error is 55 units and you’re over forecasting more than you are under forecasting
Your average error is 50 units and you’re under forecasting more than you are over forecasting
You have a data set for 6 months worth of sales revenue. You have calculated the trend coefficients. The intercept is 580.86 and the slope is 5.51. What should be the forecast for time period 7?
619.47 (580.86(5.51x7))
600.00 (580.86(5.51x7))
650.00 (580.86(5.51x7))
700.00 (580.86(5.51x7))
Which of the following is FALSE with respect to forecasting?
Grouped forecasts are typically less accurate than individual items
Forecasts are always 100% accurate
Forecasting helps in planning
Forecasting uses historical data
Which of the following is NOT a form of linear regression forecasting?
Exponential smoothing
Simple linear regression
Multiple linear regression
Polynomial regression
You have a clear upward historical data trend and you are using a 5 period weighted moving average, which of the following statements is TRUE?
You will be under forecasting most of the time
You will be over forecasting most of the time
The forecast will be perfectly accurate
The trend will not affect the forecast
Which of the following is TRUE with respect to qualitative forecasting?
Is typically very valuable under radically changing conditions
Is always more accurate than quantitative forecasting
Does not require any data
Is only used for short-term forecasts
You have data for the past 6 months for sales revenue. Use a 3 period moving average to calculate the forecast for month 5.
615
500
700
800
You have data for the past 6 months for sales revenue. Use an exponential smooth with an alpha of 0.5 to calculate the forecast for month 3. Assume a seed forecast of 545 for month 1.
605.8
500.5
700.2
800.3
If you have a clear upward trend in the historical data, which of the following forecasting methods will provide the most accurate forecast?
3 period weighted moving average forecast with weights of .6, .3, and .1
Simple moving average
Naive method
Random walk
If you are using exponential smoothing to forecast your demand and you are using an alpha = 1, which of the following is TRUE?
You are really using the naive method
The forecast will be smoothed
The forecast will be lagged
The forecast will be dampened
You have data for the past 6 months for sales revenue. Use a 3 period weighted moving average with weights of .5 .3 and .2 to calculate the forecast for month 4.
610.2
500.5
700.2
800.3
Which of the following measures of forecasting accuracy is meant to indicate the general direction of forecasting errors?
Bias
Mean absolute deviation
Mean squared error
Standard deviation
Economic/financial impact is only one consideration in process selection. Process technology use is also an important choice. The use of sophisticated process technology will
Replace costly or dangerous tasks previously done by people
Always increase costs
Always decrease efficiency
Be unnecessary in most cases
Step #2 of the Product or service design sequence is selecting a potential product or service (from among many that have been suggested by different product/service development teams. Marketing Operations and finance all need to be involved in this stage. Each of the three functions of the business has questions that should be asked and answered. The question is “is the market growing, declining, or emerging?” would be a question typical of which functional area?
Marketing
Finance
Operations
Human Resources
A contribution margin (unit selling price-unit variable cost) is
The rate at which profits are accumulated once fixed costs have been covered
The total revenue minus total costs
The cost of goods sold
The break-even point
If you were producing a product that was one of a kind, which of the following process types would be the most suitable choice?
Project
Batch
Mass production
Continuous
During the product design exercise completed in class, which of the following was NOT an important characteristic of the order of market entry?
The last design to the marketplace had an advantage in capturing new market share (new customers in the market)
The first design to the marketplace sets the standard
Early market entry allows for brand establishment
Late market entry benefits from learning from competitors
Step #1 of the product or service design sequence is idea development. Techniques involved include brainstorming, idea development through surveys, benchmarking, reverse engineering, and technological scanning of the environment. Which of the following is TRUE?
Benchmarking is studying “best in class” companies and comparing practices and performance
Reverse engineering is creating a new product from scratch
Brainstorming is a solo activity
Technological scanning involves ignoring competitors
In a competitive marketplace, the last design to the marketplace tends to fall in which stage of the product life cycle?
Maturity
Introduction
Growth
Decline
If you were producing a product whose demand was relatively high with some (little) customization, which of the following process types would be the most suitable choice?
Line process
Batch process
Project process
Job shop process
Designing for manufacture (DFM) is a “lean” tool (the toolbox example in the notes). Which of the following is an element of DFM?
Keep the tools simple or design a product that can be assembled without tools
Increase the number of parts
Use complex assembly methods
Focus on aesthetics over functionality
Modern product designing uses multifunctional teams to design the product and process simultaneously (the opposite of the historical over the shoulder methods of product design). The new methodology is called:
Concurrent engineering
Sequential engineering
Traditional engineering
Isolated engineering
As a critical part of product and service design, the employee that is actually generating the product or service have specific written instructions on how the job is to be performed by any individual performing the job. This detailed list of instructions is called:
Standard operating procedure (SOP)
Job description
Employee handbook
Training manual
What is the break even point?
5,000 units
10,000 units
15,000 units
20,000 units
At the present time, the marketing department is estimating that total sales will be 15,000 units. What would be the expected profit level if that estimate is correct?
20,000
10,000
5,000
15,000
At what volume Q would the two processes generate equal profits?
5,000 units
10,000 units
15,000 units
20,000 units
If the estimated market demand is 10,000 units, which process should be selected?
Process B
Process A
Process C
Process D
What would be the profit generated with the correct process if the market demand was in fact 12,000 units?
62,000
50,000
75,000
80,000
Which of the following is NOT a typical benefit of implementing lean?
Longer lead times
Reduced waste
Improved quality
Increased efficiency
The concept of devising mechanical and/or electronic means to ensure quality is called
Poka-yoke
Kaizen
Kanban
Jidoka
The 5S principles follow a given sequence of steps. Select the sequence with the proper order.
Sort, Set in order, shine, standardize, sustain
Shine, Sort, Set in order, sustain, standardize
Standardize, Sort, Set in order, shine, sustain
Sustain, Sort, Set in order, shine, standardize
Which of the following is NOT one of the five principles of lean manufacturing?
Strive to develop an accounting system to properly account for profit centers
Specify value from the customer’s perspective
Identify the value stream
Create flow
Which type of setup time occurs while the process is running?
Internal set up time
External set up time
Parallel set up time
Sequential set up time
The main emphasis of lean operations is the elimination of
Waste of any kind
Excessive inventory
Overproduction
Defective products
Standing in line for access to a time clock, at the beginning of a shift would be waste primarily in the form of
Waiting waste
Motion waste
Overproduction waste
Defect waste
What is the typical product development lead time reduction achieved through first year lean implementation?
50%
25%
75%
10%
Lean management has a big toolbox. Which of the following is NOT considered a "lean tool/concept"?
Material requirements planning (MRP)
Kanban
Kaizen
5S
When one establishes a “place for everything and everything in its place” by labeling appropriate locations for things needed on a daily basis, which step is the 5S being practiced?
Set in order
Sort
Shine
Sustain
