Operations Management Test 1 Practice
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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.
- 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.
- 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.
- 10.
- 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.
- 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.
- 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.
- 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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