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Operations Management Test 3
N/A
45
Business
Undergraduate 3
04/01/2014

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Term

What is it about continuous processes that make them appropriate for products in the maturity phase of their life-cycle?

low risk
efficiency
possible variety
general-purpose technology
flexibility
Definition
efficiency
Term

What is it about job shops that make them appropriate for products in the introductory phase of their life-cycle?

efficiency
rigidity
flexibility
high volume capacity
technology
Definition
flexibility
Term

An advantage of a U-shaped production line is that it:

is more compact.
permits better communication among employees.
facilitates teamwork among workers.
increases flexibility of work assignments.
all of these
Definition
all of these
Term

A common goal in designing process layouts is:

maximizing work-station productive time
minimizing the number of workers
minimizing transportation costs
maximizing transportation distances
minimizing idle time
Definition
minimizing trasportation costs
Term

A service organization (for example, a hospital) is likely to use a ________ layout because of variability in customer processing requirements.

project
non-repetitive
flow
assembly
process
Definition
process
Term

Layout design has many objectives, one of which is ______.

use workers and space efficiently
move materials and workers simultaneously
reduce bottlenecks
install computer terminals every 500 feet
hold material handling costs to 27% or less
Definition
use workers and space efficiently
Term

Laser technology used in surgical procedures is an example of technological advances in:

Information
Product
Service
Reverse Engineering
Process
Definition
process
Term

The grouping of equipment by the operations needed to perform similar work for part families is:

cellular manufacturing layout
product layout
process layout
functional layout
fixed-position layout
Definition
cellular maufacturing layout
Term

Which of the following is not true about process layouts when they are compared to product layouts?

higher in-process inventories
lower span of supervision
lower unit costs
more involved cost accounting
lower rates of output
Definition
lower unit costs
Term

Which one of the following is not considered an important factor in service layout design?

cost minimization and product flow
frequency of orders
customer attitude and image
all of these are important
none of these are important
Definition
cost minimization and product flow
Term

The type of processing system which is used for highly standardized products is:

unit
batch
project
continuous
intermittent
Definition
continuous
Term

Which of these items would be most likely to be made with a fixed position layout?

a Boeing 777 jet aircraft
applesauce
a computer chip
toothpaste
all of these
Definition
a Boeing 777 jet aircraft
Term

Which of the following is not a characteristic of layout decisions in system design?

substantial investment of both money and effort
long-term commitment
significant impact on short-term efficiency
usually well-received by operative personnel
all of these
Definition
usually well-received by operative personnel
Term

In a product layout, the task of deciding how to assign work to specific stations is referred to as:

station balancing
task allocation
work allocation
line balancing
process balancing
Definition
line balancing
Term

The substitution of machinery that has sensing and control devices for human labor is best described by the term:

flexible manufacturing system
feedback control
automation
computer-aided manufacturing
computer-integrated manufacturing
Definition
automation
Term

Which of the following is not a process commonly considered in making products or delivering services?

repetitive
continuous
batch
subcontracting
job shop
Definition
subcontracting
Term

The advantages of automation include:
(I) Reduced output variability.
(II) Reduced variable costs.
(III) Machines don't strike or file grievances.
(IV) Machines are always less expensive than human labor.

II and IV
I and IV
I, II, and III
II and III
I and III
Definition
I, II, and III
Term

Computer-aided manufacturing (CAM) refers to the use of computers in:

product design
quality control
process control
data analysis
decision making
Definition
process control
Term

Which of the following process types would be more likely to be used in the introductory phase of a product's life-cycle?

project
batch
job shop
continuous
intermittent
Definition
job shop
Term

In which type of operations are you likely to see, at most, only minor variations in the product or service being produced using the same process and the same equipment?

batch processing
a project
repetitive production
continuous production
a job shop
Definition
repetitive production
Term

An operations strategy for process selection should recognize that:

most technical skills can be contracted out to consultants
flexibility is not always the best choice
process selection seldom requires technical expertise
engineering "white elephants" are uncommon
there is little need to manage technology
Definition
flexibility is not always the best choice
Term

Which of these factors wouldn't be subtracted from design capacity when calculating effective capacity?

Personal time
Maintenance
Scrap
Operating hours per day
None of these
Definition
None of these
Term

What is the break-even quantity for the following situation?
FC = $1,200 per week
VC = $2 per unit
Rev = $6 per unit

200
300
1,200
600
100
Definition
300
Term

Which of the following is the case where capacity is measured in terms of inputs?

Hospital
Theater
Restaurant
All of these
None of these
Definition
All of these
Term

The method of financial analysis which results in an equivalent interest rate is:

cost-volume
queuing
payback
net present value
internal rate of return
Definition
internal rate of return
Term

Seasonal variations are often easier to deal with in capacity planning than random variations because seasonal variations tend to be:

smaller
larger
predictable
controllable
less frequent
Definition
predictable
Term

Operation X feeds into Operation Y. Operation X has an effective capacity of 55 units per hour. Operation Y has an effective capacity of 50 units per hour. Finding a way to increase Y's effective capacity would be an example of ________ a constraint.

repositioning
insourcing
overcoming
cycling
cushioning
Definition
overcoming
Term

A reason for the importance of capacity decisions is that capacity:

limits the rate of output possible
affects operating costs
is a major determinant of initial costs
is a long-term commitment of resources
all of these
Definition
all of these
Term

Which of the following is not a determinant of effective capacity?

External factors
Facilities
Human factors
Product mix
Actual output
Definition
Actual output
Term

A basic question in capacity planning is:

what kind is needed
how much is needed
when is it needed
all of these
none of these
Definition
all of these
Term

Which of the following is not a criterion for developing capacity alternatives?

Identify the optimal operating level
Take a big-picture approach to capacity changes
Design structured, rigid systems
Prepare to deal with capacity in "chunks"
Attempt to smooth out capacity requirements
Definition

Design structured, rigid systems

 

Term

Maximum capacity refers to the upper limit of:

rate of output
finances
demand
inventories
supplies
Definition
rate of output
Term

The maximum possible output given a product mix, scheduling difficulties, quality factors, and so on, is:

utilization
efficiency
available capacity
design capacity
effective capacity
Definition
effective capacity
Term

Which of the following is not a strategy to manage service capacity?

Backordering
Subcontracting
Part time workers
Pricing and promotion
Hiring extra workers
Definition
Backordering
Term

Which of the following are assumptions of the break-even model?
I. Only one product is involved.
II. Everything that is produced can be sold.
III. The revenue per unit will be the same regardless of volume.

I only
II and III only
I, II and III
II only
I and II only
Definition
I, II, and III
Term

Utilization is defined as the ratio of:

design capacity to actual output
design capacity to effective capacity
actual output to effective capacity
actual output to design capacity
effective capacity to actual output
Definition
actual output to design capacity
Term

Which of the following is a factor that affects service capacity planning?

The need to be near customers
The inability to store services
The degree of volatility of demand
The customer's willingness to wait
All of these
Definition
All of these
Term

At the break-even point:

variable cost equals fixed cost
output equals capacity
variable cost equals total revenue
total cost equals profit
total cost equals total revenue
Definition
total cost equals total revenue
Term

Capacity in excess of expected demand that is intended to offset uncertainty is a:

margin protect
line balance
capacity cushion
timing bubble
none of these
Definition
capacity cushion
Term

Which of the following makes using present value approaches in capacity decisions difficult?

The discount rate must be adjusted to account for inflation.
Some cash flows are positive and other cash flows are negative.
The payback period might not be long enough to justify a capacity decision.
Capacity decisions are made amidst much uncertainty, so cash flows cannot be estimated with great accuracy.
None of these
Definition
Capacity decisions are made amidst much uncertainty, so cash flows cannot be estimated with great accuracy.
Term

The method of financial analysis which focuses on the length of time it takes to recover the initial cost of an investment is:

cost-volume
net present value
internal rate of return
payback
queuing
Definition
payback
Term

Given the following information, what would utilization be?
Effective capacity = 20 units per day
Design capacity = 60 units per day
Actual output = 15 units per day

1/4
1/3
1/2
3/4
none of these
Definition
1/4
Term

If the output rate is increased but the average unit costs also increase we are experiencing:

economies of scale.
diseconomies of scale.
step-function scale up.
market share erosion.
value added accounting.
Definition
diseconomies of scale
Term

Capacity planning decisions have both long-term and short-term considerations. Which of the following statements are true?
(I) Long-term considerations relate to the overall level of capacity.
(II) Short-term considerations relate to the probable variations in capacity requirements.
(III) Short-term considerations determine the "effective capacity."

I and II
I and III
II and III
Only one of the three statements is true.
All three statements are correct.
Definition
I and II
Term

Given the following information, what would efficiency be?
Effective capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day

90%
40%
80%
60%
50%
Definition
60%
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