ISDS Review Questions Test 1 Flashcards
T/F: slack is the amount of time an activity can be delayed without delaying the entire project
TRUE
Α project organization:
A. is effective for companies with multiple large projects
B. often fails when the project cuts across organizational lines
C. is most helpful for ongoing with no termination dates
D. is appropriate only in construction firms
E. is most helpful when the work contains simple and unrelated tasks
A. effective for companies with large projects
Which of the following statements regarding critical paths is true?
A. some activities on the critical path may have slack
B. the duration of the critical path is the average duration of all paths in the project network
C. every network has only one critical path
D. the shortest of paths through the network is the critical path
E. on a specific project, there can be multiple critical paths, all with exactly the duration
E. on a specific project, there can be multiple critical paths, all with exactly the duration
T/ F: One advantage of exponential smoothing is the limited amount of record keeping involved
TRUE
T/ F: In a regression equation where y-hat is demand and x is advertising, a coefficient of determination (R^2) of .7 means that 70% of the variance in advertising is explained by demand
FALSE
Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of
A. sensitivity to real changes in the data
B. accuracy
C. manager understanding
D. stability
E. All of the above are diminished when the number of periods increases
A. sensitivity to real changes in the data
A fundamental distinction between trend projection and linear regression is that:
A. trend projection uses least squares while linear regression does not.
B. trend projection uses two smoothing constants, not just one.
C. trend projection can be a function of several variables, while linear regression can only be a function of one variable.
D. in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power.
E. only linear regression can have a negative slope
D. in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power.
Which of the following is an example of a “hidden” production function?
A. assembling a motorcycle
B. manufacturing a television
C. transplanting a liver
D. producing a computer
C. transplanting a liver
Which of these is NOT one of the 10 strategic OM decisions?
A. scheduling
B. layout strategies
C. managing quality
D. marketing
D. marketing
Which of the following sectors has seen a consistent rise in the percentage of workers in the United States since 1950?
A. Services.
B. Manufacturing
C. Agriculture
D. None of the above
A. Services
Many operations management (OM) innovations have come from outside of the United States. Which of the following OM innovations is matched with the wrong country/region?
A. Japan -> inventory management
B. Germany -> robotics
C. Scandinavia -> ergonomics
D. All of the above are correct
D. All of the above are correct
The creation of a unique advantage over competitors is referred as
A. response.
B. experience differentiation.
C. competitive advantage.
D. differentiation.
C. competitive advantage.
A theory which states that countries benefit from specializing in (and exporting) goods and services in which they have a relative advantage, and they benefit from importing goods and services in which they have a relative disadvantage is referred to as the
A. theory of comparative advantage.
B. theory of planned behavior.
C. theory of exportation.
D. theory of relative perception.
A. theory of comparative advantage.
Taguchi’s quality loss function is based on a
A. quadratic equation.
B. linear equation.
C. negative exponential distribution.
D. binomial distribution.
A. quadratic equation.
How does just-in-time (JIT) relate to total quality management (TQM)?
A. JIT is rooted in continuous improvement and forced problem solving, which improve quality.
B. JIT is not related to TQM.
C. JIT systems encourage last-minute deliveries, which increases the probability of a late delivery.
D. JIT increases finished-goods-inventory levels to be able to respond quickly to customers.
A. JIT is rooted in continuous improvement and forced problem solving, which improve quality.
A c-chart is based on the
A. normal distribution.
B. binomial distribution.
C. Poisson distribution.
D. Erlang distribution.
C. Poisson distribution.
The two popular measures for quantitatively determining if a process is capable are
A. upper specification and lower specification.
B. process capability ratio and process capability index.
C. process mean and standard deviation of the process population.
D. process mean and range
B. process capability ratio and process capability index.
In location planning, environmental regulations, cost and availability of utilities, and taxes are:
A. site-related factors.
B. global factors.
C. country factors.
D. regional/community factors.
E. None of the above.
D. regional/community factors.
Which of the following statements regarding the center-of-gravity method is FALSE?
A. The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water.
B. The optimal x- and y-coordinates are calculated separately.
C. The origin of the coordinate system and the scale used are arbitrary, just as long as the relative distances are correctly represented.
D. The weights used are the quantity of goods moved to or from each location.
E. It is designed to minimize the maximum possible travel distance to any of the locations.
E. It is designed to minimize the maximum possible travel distance to any of the locations.
Which of the following is NOT among the eight determinants of revenue and volume for a service firm?
A. shipment cost of finished goods
B. competition in the area
C. purchasing power of the customer-drawing area
D. quality of management
E. uniqueness of the firm’s and the competitors’ locations
A. shipment cost of finished goods
Traffic counts and demographic analysis of drawing area are associated with:
A. service location decisions.
B. the center-of-gravity method.
C. locational cost-volume analysis.
D. manufacturing location decisions.
E. the transportation model.
A. service location decisions.
Which of the statements below best describes retail layout?
A. addresses the layout requirements of large, bulky projects such as ships and buildings
B. positions workers, their equipment, and spaces/offices to provide for movement of information
C. allocates shelf space and responds to customer behavior
D. deals with low-volume, high-variety production
E. seeks the best personnel and machine utilization in repetitive or continuous production
C. allocates shelf space and responds to customer behavior
Which of the following does NOT support the retail layout objective of maximizing customer exposure to products?
A. Maximize exposure to expensive items.
B. Convey the store’s mission with the careful positioning of the lead-off department.
C. Use prominent locations for high-impulse and high-margin items.
D. Use end-aisle locations.
E. Locate high-draw items around the periphery of the store.
A. Maximize exposure to expensive items.
The concept of customizing in a warehouse layout:
A. locates stock wherever there is an open location.
B. is theoretically sound, but several years away in practice.
C. is possible, but it causes serious loss of oversight of the quality function.
D. cannot be considered seriously in today’s high efficiency factories.
E. incorporates value-added activities in warehouses.
E. incorporates value-added activities in warehouses.
The major problem addressed by the process-oriented layout strategy is:
A. the provision of low-cost storage with low-cost material handling.
B. balancing product flow from one work station to the next.
C. how to design a continuous flow process.
D. minimizing difficulties caused by material flow varying with each product.
E. the movement of material to the limited storage areas around the site.
D. minimizing difficulties caused by material flow varying with each product.
Which of the following is one of the main advantages of a product oriented layout?
A. high customer exposure rates
B. low capital cost
C. low variable cost per unit
D. high flexibility
E. employability of highly skilled labor
C. low variable cost per unit
T/ F: The shortest of all paths through the network is the critical path.
FALSE
The phases of project management are:
A. GANTT, CPM, and PERT.
B. planning, programming, and budgeting.
C. different for manufacturing projects than for service projects.
D. planning, organizing, staffing, leading, and controlling.
E. planning, scheduling, and controlling.
E. planning, scheduling, and controlling.
Which of the following statements regarding PERT analysis is true?
A. Only critical activities contribute to the project variance.
B. Project standard deviation is the sum of all critical activity standard deviations.
C. The most likely time is equivalent to the expected activity time.
D. Project variance is the sum of all activity variances.
E. Each activity has two estimates of its duration.
A. Only critical activities contribute to the project variance.
Which of the following statements regarding CPM is true?
A. All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors.
B. The critical path is the shortest of all paths through the network.
C. The critical path is that set of activities that has positive slack.
D. Some networks have no critical path.
E. All activities on the critical path have their ES equal to their LF.
A. All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors.
T/ F: Mean squared error and exponential smoothing are two measures of the overall error of a forecasting model.
FALSE
The forecasting technique that pools the opinions of a group of experts or managers is known as:
A. the expert judgment model.
B. jury of executive opinion.
C. market survey.
D. multiple regression.
E. management coefficients.
B. jury of executive opinion.
The fundamental difference between cycles and seasonality is the:
A. duration of the repeating patterns.
B. magnitude of the variation.
C. ability to attribute the pattern to a cause.
D. All of the above.
E. None of the above.
A. duration of the repeating patterns.
Which of these is NOT one of the basic functions of the management process?
Part 2
A. controlling
B. inspecting
C. leading
D. staffing
B. inspecting
Disney differentiates itself by not simply having customers go on a ride, but instead immersing them in the experience. What is the name for this type of differentiation?
A. Active differentiation
B. Unique differentiation
C. Immersion differentiation
D. Experience differentiation
D. Experience differentiation
A way to identify those elements in the product/service chain that uniquely add value is referred to as
A. value-chain analysis.
B. the five forces model.
C. the resources view.
D. supply chain management.
A. value-chain analysis.
Which of the following is the Japanese term used to describe continuous improvement efforts?
A. kaizen
B. kanban
C. six sigma
D. poka-yoke
A. kaizen
Cause-and-effect diagrams are also known as
A. target specification graphs.
B. fish-bone charts.
C. flowcharts.
D. Pareto charts.
B. fish-bone charts.
What is the reasoning behind setting the upper and lower control limits 3 from the mean?
A. The limits of the Z table are set at 3
B. We know that 99.73% of natural variation is contained within 3, and thus any data point outside of the limits is likely due to assignable variation
C. 95.45% of the time, the sample averages will fall within 3 if the process has only natural variation
D. We know that 99.73% of assignable variation is contained within 3, and thus any data point outside of the limits is likely due to natural variation
B. We know that 99.73% of natural variation is contained within plus or minus 3 sigmas, and thus any data point outside of the limits is likely due to assignable variation
In acceptance sampling, the producer’s risk is the risk of having a
A. good lot accepted.
B. bad lot rejected.
C. good lot rejected.
D. bad lot accepted.
C. good lot rejected.
In location planning, environmental regulations, cost and availability of utilities, and taxes are:
A. site-related factors.
B. country factors.
C. regional/community factors.
D. global factors.
E. None of the above
C. regional/community factors.
Tangible costs include which of the following?
A. quality and attitude of prospective employees
B. availability of public transportation
C. zoning regulations
D. taxes
E. climatic conditions
D. taxes
Production and transportation costs are always considered in which of the following location decision methods?
A. transportation model
B. traffic counts
C. proximity of markets
D. purchasing power
E. clustering
A. transportation model
Which of the following is NOT a retail layout practice?
A. Use end-aisle locations to maximize product exposure.
B. Distribute power items throughout the store.
C. Use prominent locations for high-impulse and high-margin items.
D. Locate the high-draw items around the periphery of the store.
E. All of the above are retail layout practices.
E. All of the above are retail layout practices.
The concept of customizing in a warehouse layout:
A. cannot be considered seriously in today’s high efficiency factories.
B. is possible, but it causes serious loss of oversight of the quality function.
C. incorporates value-added activities in warehouses.
D. locates stock wherever there is an open location.
E. is theoretically sound, but several years away in practice.
C. incorporates value-added activities in warehouses.
The separate plants that produce seat belts, fuel tanks, and exhaust systems for Toyota are:
A. focused factories.
B. focused work centers.
C. work cells.
D. job shops.
E. random stocking warehouses.
A. focused factories.
A product-oriented layout would be MOST appropriate for which one of the following businesses?
A. fast food
B. steel making
C. insurance sales
D. clothing alterations
E. a grocery store
B. steel making
Which one of the following statements is incorrect regarding globalization and globalization strategies?
A. globalization strategies could add value to products and services
B. globalization means customers, talent, and suppliers are worldwide
C. globalization strategies could contribute to efficiency
D. globalization strategies could simplify the operations manager’s job
D. globalization strategies could simplify the operations manager’s job
Which of the following is NOT a reason why domestic business operations decide to change to some form of international operation?
A. improve products
B. improve operations
C. attract and retain local talent
D. improve the supply chain
C. attract and retain local talent
The stated purpose of NAFTA is to
A. reduce the outsourcing of jobs to foreign countries
B. phase out all trade and tariff barriers among Canada, Mexico, and the US
C. increase product innovation in the wireless communication sector
D. gain membership in the WTO
B. phase out all trade and tariff barriers among Canada, Mexico, and the US
A large percentage of the revenue of most firms is spent on which function?
A. marketing
B. finance
C. research and development
D. operations
D. operations
Which of the following is NOT one of the four reasons that we study OM?
A. we want to know how goods and services are produced
B. We want to understand what marketing managers do
C. It is such a costly part of an organization
D. It is one of the three major functions of any organization
B. We want to understand what marketing managers do
Which of the following best defines scheduling?
A. determines and implements long and short term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands
B. determines and implements intermediate and short term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands
C. determines and implements intermediate and short term schedules that effectively and efficiently utilize personnel while meeting customer demands
D. determines and implements long and short term schedules that effectively and efficiently utilize personnel while meeting customer demands
B. determines and implements intermediate and short term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands
Which of the following OM decisions determines how a good or service is produced and commits management to specific technology, quality, human resources and capital investment?
A. process and capacity design
B. managing quality
C. human resources and job design
D. design of goods and services
A. process and capacity design
the production process at the Hard Rock Cafe does NOT include which of the following activities?
A. advertising
B. placing raw materials in cold storage
C. receiving
D. cooking
A. advertising
Which of the following tasks would NOT typically represent an operations management activity at Hard Rock Cafe?
filing a tax return
the creation of goods and services is referred to as:
A. production
B. design
C. transformation
D. formation
A. production
΅Which of the following is NOT considered to be one of the 3 primary functions that all organizations perform?
A. marketing
B. research and development
C. finance/ accounting
production/ operations
B. research and development
Which operations function at a manufacturing facility strives for the efficient use oof machines, space, and personnel?
A. process analysis
B. production and inventory control
C. industrial engineering
D. design
C. industrial engineering
Which of the following activities at a commercial bank is not an operations activity?
A. auditing
B. security
C. check clearing
D. maintenance
A. auditing
Which of the following activities at an airline is NOT an operations activity?
A. catering
B. sales
C. flying
D. crew scheduling
B. sales
A global network of organizations and activities that supply a firm with goods and services is referred to as
A. operations management
B. business functions
C. supply chain
D. production
C. supply chain
In general, the supply chain starts with
A. final customers at the retail store
B. a distributor
C. the provider of basic raw material
D. research and development
C. the provider of basic raw material
Which of the following is NOT one of the factors that fosters specialization and worldwide supply chains?
A. instant communication
B. marketing
C. cheaper transportation
D. specialized expert knowledge
B. marketing
competition in the 21st century is no longer between companies; it is between
A. individuals
B. countries
C. technologies
D. supply chains
D. supply chains
The person who introduced standardized, interchangeable parts was
A. Frederick W. Taylor.
B. Henry Ford.
C. Eli Whitney.
D. W. Edwards Deming.
C. Eli Whitney.
The father of scientific management is
A. Henry Ford.
B.Henry L. Gantt.
C.Frederick W. Taylor.
D. Eli Whitney.
C.Frederick W. Taylor.
The disadvantages of process- oriented layout are
E. the general purpose use of equipment
Which of the following does NOT contribute to OM?
A. innovations from physical sciences
B. unsystematic processing of data
C. information technology
D. other disciplines including industrial engineering, statistics, management, and economics
B. unsystematic processing of data
The person who believed that management must do more to improve the work environment and processes so that quality can be improved was
A. Henry Ford.
B. Walter Shewhart.
C. W. Edwards Deming.
D. Eli Whitney.
C. W. Edwards Deming.
Which of the following is NOT one of the reasons operations managers want to work with their supply chains to viciously cut inventories at every level?
A.Inventory requires
financial resources.
B. Inventory provides safety against higher-than expected demand.
C. Inventory constrains response to ever-shorter product life cycles.
D. Inventory hides quality issues.
B. Inventory provides safety against higher-than expected demand.
Which of these statements accurately captures a current trend in operations?
A. Mass production at the expense of product variety.
B. Jobs are increasingly specialized as workers focus on basic assembly tasks.
C. There is increased focus on local market and local competition.
D. Rapid product development.
D. Rapid product development.
Which of the following trends is NOT part of the exciting OM challenges currently facing operations managers?
A. supply chain partnering
B. rapid product development
C. local focus
D. sustainability
C. local focus
What is the goal for mass customization?
A. The goal is to seek creative designs, efficient production, and high-quality goods via international collaboration.
B. The goal is to enrich jobs and move more decision making to the individual contributor.
C. The goal is to let operations managers work with their supply chain to viciously cut inventories at every level.
D. The goal is to produce customized products, whenever and wherever needed.
D. The goal is to produce customized products, whenever and wherever needed.
Competing on differentiation is
A.based upon low-cost leadership.
B. based upon flexibility.
C. concerned with uniqueness.
D. concerned with reliability of scheduling.
C. concerned with uniqueness.
Competing on cost is
A. achieving maximum value as perceived by the customer.
B. concerned with uniqueness.
C. based upon flexibility.
D. concerned with reliability of scheduling.
A. achieving maximum value as perceived by the customer
Which of the following does not represent competing on response?
A. based on providing uniqueness
B. concerned with reliability of scheduling
C. based on flexibility
D. based on quickness
A. based on providing uniqueness
The creation of a unique advantage over competitors is referred as
A. experience differentiation.
B. differentiation.
C. response.
D. competitive advantage.
