Operations Management Exam

Operations Management Exam

Question
Question 1

1. Comparing goods and services, the similarities stop, and significant differences occur, when the operations involve contact between people.

True

False

2.5 points

Question 2

1. Production and operations management is linked to all other managerial functions in the organization and is applicable to both manufacturing and services.

True

False

2.5 points

Question 3

1. When bureaucracy gains control of an organization, it strives to remove corrective counter swings and maintain existing conditions.

True

False

2.5 points

Question 4

1. The stages of history have moved production and operations capabilities from low-volume custom work through high-volume rapid and continuous output systems.

True

False

2.5 points

Question 5

1. With the _____ approach, operations management is expected to perform with minimum reference to other parts of the business. This approach concentrates on the specific tasks that must be done to make the product or deliver the service.

systems

customer relationship

functional field

operations

2.5 points

Question 6

1. Managing a sports team is an excellent example of a purposeful effort that is enhanced by using the _____ approach.

systems

customer relationship

functional field

operations

2.5 points

Question 7

1. Similarities between services and manufacturing can be noted when service operations are based upon _____ in information processing.

identical methods

repetitive steps

high volume

similar steps

2.5 points

Question 8

1. One of the most important functions of the P/OM system is _____. Raw materials and components have lower utility (for customers) before this function is employed.

transformation

translation

creation

production

2.5 points

Question 9

1. _____ needed to carry out the transformation function determines the production rate.

Time

Space

Input

Cost

2.5 points

Question 10

1. A Stage _____ company is a P/OM innovator. It has short and long term planning horizons that are integrated.

IV

V

I

III

2.5 points

Question 11

1. _____ is the stage at which P/OM development is internally supportive to the company’s competitive position.

Stage I

Stage II

Stage III

Stage IV

2.5 points

Question 12

1. P/OM strategic thinking is used to help find the best product line for the marketplace and then to make these products at the___.

lowest cost.

highest quality.

maximum productivity level.

all of the above

2.5 points

Question 13

1. The supplier-producer-customer value chain, by definition adds value at every step, which illustrates strategic impact operating on a _____ scale.

local

organizational

global

centralized

2.5 points

Question 14

1. A first major step in the history of P/OM development was

scientific management.

lean production systems.

interchangeable parts.

global competition.

2.5 points

Question 15

1. In 1912, _____ developed sequenced assembly, which allows assembly to be a continuous flow shop process.

Adam Smith

Henry Ford

Frederick W. Taylor

Walter Shewhart

2.5 points

Question 16

1. Often _____ technology is imposed on _____ processes by employees who lack training and experience with the new technology. Product life is short. This allows little time to enjoy the advantages of new technology applied to evanescent and even obsolescent product lines.

new; old

new; new

old; old

old; new

2.5 points

Question 17

1. If inputs increase by 30% and outputs decrease by 15%, what is the percentage change in productivity?

100% decrease

11.54% increase

34.62% decrease

15% increase

15% decrease

2.5 points

Question 18

1. A firm produces handbags using three workers. On Tuesday, Jane completed 60 bags in 6 hours, Ron completed 50 bags in 7 hours, and Mary completed 80 bags in 5 hours. What was the overall productivity of the firm?

7.92 bags/hour

11.05 bags/hour

10.00 bags/hour

10.56 bags/hour

61.67 bags/hour

2.5 points

Question 19

1. Rodrigo employs five workers. He collected the following data from last week.

Worker Hours Units Completed

Oscar 40 60

Sonia 32 68

Cesar 50 78

Jessica 36 70

Rita 44 74

2.

Which painter was least productive last week?

Oscar

Sonia

Cesar

Jessica

Rita

2.5 points

Question 20

1. A company used to produce 300 units every day, but 20% of the units were defective. After installing a new process, the defect rate has been reduced to 5%, while output hasremained the same. What is the percent increase in productivity due to installing the new process?

15.79%

0.00%

15.00%

18.75%

-75.00%

2.5 points

Question 21

1. Based on the demand data for an item A for last two weeks, you do a trend analysis and find the trend equation to be Y = 50 + 4X. The company works five days (Monday through Friday) per week. Make a forecast for Tuesday of week 3 for this product.

62

58

98

114

Can not be determined

5 points

Question 22

1. Given the following data, use exponential smoothing (? = .2) to develop a demand forecast for period 3. Assume the forecast for the initial period (period 1) is 5. What is the forecast for period 3? (Note: You do not need additional information to answer this question).

Period Demand

1 7

2 9

2.

4.68

5.40

6.12

9.00

Can not be determined

5 points

Question 23

1. Joe’s Equipment Distributors sells “Low and Loud” brand lawnmowers. Total demand in 2010 is expected to be 2000 units. Given the historical sales figures listed below, find the forecast for the summer quarter in 2010 using the seasonal forecasting model.

2. 2007 2008 2009

Fall 50 80 120

Winter 150 450 510

Spring 500 600 700

Summer 400 490 610

3.

Close to 452

Close to 654

Close to 500

Close to 610

Close to 800

5 points

Question 24

1. A firm has the following order history over the last 6 months.

January 120

February 95

March 100

April 75

May 100

June 50

2.

What would be a 3-month weighted moving average forecast for July, using weights of 40% for the most recent month, 30% for the month preceding the most recent month, and 30% for the month preceding that one?

Close to 105

Close to 76

Close to 75

Close to 74

Close to 72

5 points

Question 25

1. What is the mean absolute deviation of the following forecasts?

Month Actual Sales Forecast

Jan. 614 600

Feb. 480 480

Mar. 500 550

Apr. 500 600

41

-34

164

100

25

5 points

Question 26

1. Consider the data listed below.

Month Actual Demand Forecast (using 4-month moving average)

Jan. 10,000

May 14,000 13,500

2.

What is the 4-month moving average forecast for June? Identify the correct answer. (Note: You do not need additional information to answer this question).

14,000

Not enough information is given to answer the question.

14,500

13,500

15,333

5 points

Question 27

1. In exponential smoothing, what values can the smoothing constant, ?, have?

[-1 to 1]

[1 to ?]

[0 to ?]

[0 to 1]

[-? to ?]

5 points

Question 28

1. The larger the value of ? in the exponential smoothing method of forecasting method, the greater the method’s responsiveness to changes in demand.

True

False

5 points

Question 29

1. Find the value of the tracking signal at the end of month 6 based on the actual demand and forecast given in the following table.

Month 1 2 3 4 5 6

Actual Demand 715 675 640 587 702 760

Forecast 700 645 660 648 655 718

2.

Close to 1.46

Close to 1.48

Close to 1.50

Close to 35

Close to 53

5 points

Question 30

1. Which of the following statements is true on the basis of the six-month data given in the following table?

Month 1 2 3 4 5 6

Actual Demand 715 675 640 587 702 760

Forecast 700 645 660 648 655 718

2.

The demand is being overestimated.

The demand is being underestimated.