Operations Management Test 1 Practice

69 Questions  I  By Kilikika
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  • 1. 
    Production systems with standardized outputs typically:
    • A. 

      Have relatively high volumes of output

    • B. 

      Have relatively low unit costs

    • C. 

      Have relatively high mechanization

    • D. 

      Use relatively low skilled workers

    • E. 

      All of the above


  • 2. 
    The fundamental purpose for the existence of any organization is described by its:
    • A. 

      Policies

    • B. 

      Procedures

    • C. 

      Mission

    • D. 

      Strategy


  • 3. 
    It is sometimes difficult to get good workers on projects because:
    • A. 

      Supervisors of knowledgeable people may be reluctant to let them be assigned to a project

    • B. 

      Of fear of being associated with a poor project

    • C. 

      A and b

    • D. 

      Having to work for two bosses

    • E. 

      All of the above


  • 4. 
    Warranty service, processing of complaints, and costs of litigation are examples of:
    • A. 

      Internal failure costs

    • B. 

      External failure costs

    • C. 

      Appraisal costs

    • D. 

      Prevention costs

    • E. 

      Replacement costs


  • 5. 
    Time based approaches of business organizations focus on reducing the time to accomplish certain necessary activities. time reductions can apply to:
    • A. 

      Product/service design time

    • B. 

      Processing time

    • C. 

      Delivery time

    • D. 

      Response time to complaints

    • E. 

      All of the above


  • 6. 
    Which of the following is determined as a direct result of computing the earliest starting (es) and finishing (ef) times for the activities of a project network?
    • A. 

      Expected project duration

    • B. 

      Activity slack time

    • C. 

      Which activities are on the critical path

    • D. 

      All of the above


  • 7. 
    Control chart limits are specifications established by design or customers
    • A. 

      True

    • B. 

      False


  • 8. 
    For which of the following would a c-chart be used?
    • A. 

      Monitor average shrinkage

    • B. 

      Monitor dispersion in sample data

    • C. 

      Monitor proportion of defectives

    • D. 

      Monitor the number of defects

    • E. 

      Monitor the range values


  • 9. 
    What are some aspects of the project's managers job that make it more demanding than the job of a manager working in a more routine organizational framework?

  • 10. 
    Discuss the importance of productivity in competitiveness.

  • 11. 
    Operations management
    • A. 

      The management of systems or processes that create goods and or provide services

    • B. 

      A sequence of activities and organizations involved in producing and delivering a good or service


  • 12. 
    Supply chain
    • A. 

      The management of systems or processes that create goods and or provide services

    • B. 

      A sequence of activities and organizations involved in producing and delivering a good or service


  • 13. 
    Services
    • A. 

      Physical items produced by business organizations

    • B. 

      Activities that provide some combination of time, location, form, and psychological value


  • 14. 
    Goods
    • A. 

      Physical items produced by business organizations

    • B. 

      Activities that provide some combination of time, location, form, and psychological value


  • 15. 
    Three basic functions of business organizations are: finance, operations, and marketing
    • A. 

      True

    • B. 

      False


  • 16. 
    A simple product supply chain:suppliers' suppliers = direct suppliers = producer = distributor = final customer
    • A. 

      True

    • B. 

      False


  • 17. 
    Value added is the difference between the cost of inputs and the value or price of outputs
    • A. 

      True

    • B. 

      False


  • 18. 
    Process is one or more actions that transform inputs into outputs
    • A. 

      True

    • B. 

      False


  • 19. 
    Name three business processes

  • 20. 
    Lead time is the time between ordering a good or service and receiving it
    • A. 

      True

    • B. 

      False


  • 21. 
    System
    • A. 

      A few factors account for a high percentage of the occurrence of some events

    • B. 

      A set of interrelated parts that must work together


  • 22. 
    Pareto phenomenon
    • A. 

      A few factors account for a high percentage of the occurrence of some events

    • B. 

      A set of interrelated parts that must work together


  • 23. 
    Craft production
    • A. 

      System in which low skilled workers use specialized machinery to produce high volumes of standardized goods

    • B. 

      Parts of a product made to such precision that they do not have to be custom fitted

    • C. 

      System in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods.


  • 24. 
    Mass production
    • A. 

      System in which low skilled workers use specialized machinery to produce high volumes of standardized goods

    • B. 

      Parts of a product made to such precision that they do not have to be custom fitted

    • C. 

      System in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods.


  • 25. 
    Interchangeable parts
    • A. 

      System in which low skilled workers use specialized machinery to produce high volumes of standardized goods

    • B. 

      Parts of a product made to such precision that they do not have to be custom fitted

    • C. 

      System in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods.


  • 26. 
    Division of labor is the breaking up of a production process into small tasks, so that each worker performs a small portion of the overall job
    • A. 

      True

    • B. 

      False


  • 27. 
    E business
    • A. 

      The use of the internet to transact business

    • B. 

      Consumer to business transactions


  • 28. 
    E commerce
    • A. 

      Use of the internet to transact business

    • B. 

      Consumer to business transactions


  • 29. 
    Sustainability
    • A. 

      The ability of an organization to respond quickly to demands or opportunities

    • B. 

      Using resources in ways that do not harm ecological systems that support human existence


  • 30. 
    Agility
    • A. 

      The ability of an organization to respond quickly to demands or opportunities

    • B. 

      Using resources in ways that do not harm ecological systems that support human existence


  • 31. 
    LEAN SYSTEM is a process for reducing costs, improving quality, and increasing customer satisfaction.
    • A. 

      True

    • B. 

      False


  • 32. 
    Lean system is a system that uses minimal amounts of resources to produce a high volume of high quality goods with some variety
    • A. 

      True

    • B. 

      False


  • 33. 
    Outsourcing is buying goods or services instead of producing or providing them in house
    • A. 

      True

    • B. 

      False


  • 34. 
    The need to manage the supply chain:1. the need to improve operations2. increasing levels of outsourcing3. increasing transportation cost4. competitive pressures5. increasing globalization6. increasing importance of e business7. the complexity of supply chains8. the need to manage inventories
    • A. 

      True

    • B. 

      False


  • 35. 
    Competitiveness is how effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services
    • A. 

      True

    • B. 

      False


  • 36. 
    Mission
    • A. 

      States the purpose of an organization

    • B. 

      The reason for the existence of an organization

    • C. 

      Provide detail and scope of the mission


  • 37. 
    Mission statement
    • A. 

      States the purpose of an organization

    • B. 

      The reason for the existence of an organization

    • C. 

      Provide detail and scope of the mission


  • 38. 
    Strategies
    • A. 

      Plans for achieving organizational goals

    • B. 

      The methods and actions taken to accomplish strategies


  • 39. 
    Tactics
    • A. 

      Plans for achieving organizational goals

    • B. 

      The methods and actions taken to accomplish strategies


  • 40. 
    Core competencies is the special attributes or abilities that give an organization a competitive edge.
    • A. 

      True

    • B. 

      False


  • 41. 
    Order qualifiers
    • A. 

      Characteristics of an organizations goods or services that cause it to be perceived as better than the competition

    • B. 

      The considering of events and trends that present threats or opportunities for a company

    • C. 

      Characteristics that customers perceive as minimum standards of accept ability to be considered as a potential for purchase


  • 42. 
    Order winners
    • A. 

      Characteristics of an organizations goods or services that cause it to be perceived as better than the competition

    • B. 

      The considering of events and trends that present threats or opportunities for a company

    • C. 

      Characteristics that customers perceive as minimum standards of accept ability to be considered as a potential for purchase


  • 43. 
    Environmental scanning
    • A. 

      Characteristics of an organizations goods or services that cause it to be perceived as better than the competition

    • B. 

      The considering of events and trends that present threats or opportunities for a company

    • C. 

      Characteristics that customers perceive as minimum standards of accept ability to be considered as a potential for purchase


  • 44. 
    QUALITY BASED STRATEGY that focuses on reduction of time needed to accomplish tasks
    • A. 

      True

    • B. 

      False


  • 45. 
    Strategy that focuses on quality in all phases of an organization
    • A. 

      Quality based

    • B. 

      Time based


  • 46. 
    Productivity is a measure of the effective use of resources, usually expressed as the ratio of output to input
    • A. 

      True

    • B. 

      False


  • 47. 
    Deming prize established by the japanese and awarded annually to firms that distinguish themselves with quality management programs
    • A. 

      True

    • B. 

      False


  • 48. 
    Dimensions of quality is performance aesthetics, special features, conformance, reliability, durability, perceived quality, and serviceability
    • A. 

      True

    • B. 

      False


  • 49. 
    Quality of design
    • A. 

      Intention of designers to include or exclude features in a product or service

    • B. 

      The degree to which goods or services conform to the intent of the designers


  • 50. 
    Quality of conformance is the degree to which goods or services conform to the intent of the designers
    • A. 

      True

    • B. 

      False


  • 51. 
    Appraisal costs
    • A. 

      Costs of preventing defects from occurring

    • B. 

      Costs caused by defective parts or products or by faulty services

    • C. 

      Costs of activities designed to ensure quality or uncover defects


  • 52. 
    Prevention costs
    • A. 

      Costs of preventing defects from occurring

    • B. 

      Costs caused by defective parts or products or by faulty services

    • C. 

      Costs of activities designed to ensure quality or uncover defects


  • 53. 
    Failure costs
    • A. 

      Costs of preventing defects from occurring

    • B. 

      Costs caused by defective parts or products or by faulty services

    • C. 

      Costs of activities designed to ensure quality or uncover defects


  • 54. 
    Internal failures discovered during production
    • A. 

      True

    • B. 

      False


  • 55. 
    External failures discovered after delivery to the customer
    • A. 

      True

    • B. 

      False


  • 56. 
    Return on quality is an approach that evaluates the financial return of investments in quality
    • A. 

      True

    • B. 

      False


  • 57. 
    Total quality management is a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction
    • A. 

      True

    • B. 

      False


  • 58. 
    Fail safing is incorporating design elements that prevent incorrect procedures
    • A. 

      True

    • B. 

      False


  • 59. 
    Continuous improvement is a philosophy that seeks to make never ending improvements to the process of converting inputs into outputs
    • A. 

      True

    • B. 

      False


  • 60. 
    Quality control is a process that evaluates output relative to a standard and takes corrective action when output doesnt meet standards
    • A. 

      True

    • B. 

      False


  • 61. 
    Inspection is appraisal of goods or services
    • A. 

      True

    • B. 

      False


  • 62. 
    SPC (statistical process control) is statistical evaluation of the output of a process
    • A. 

      True

    • B. 

      False


  • 63. 
    Random variation is a natural variation in the output of a process, created by countless minor factors.
    • A. 

      True

    • B. 

      False


  • 64. 
    Assignable variation is in process output, a variation whose can be identified, a nonrandom variation
    • A. 

      True

    • B. 

      False


  • 65. 
    Sampling distribution is a theoretical distribution of sample statistics
    • A. 

      True

    • B. 

      False


  • 66. 
    Central limit theorem is the distribution of sample averages tends to be normal regardless of the shape of the process distribution
    • A. 

      True

    • B. 

      False


  • 67. 
    Control limits is the dividing lines between random and nonrandom deviations from the mean of the distribution
    • A. 

      True

    • B. 

      False


  • 68. 
    Type 1 error concluding a process is not in control when it actually is.type 2 error concluding a process is in control when it actually is not
    • A. 

      True

    • B. 

      False


  • 69. 
    Variables generate data that are measured.mean control chart is a control chart used to monitor the central tendency of a process
    • A. 

      True

    • B. 

      False


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