MIDTERMS (EXAM) 1 Flashcards
Information Technology refers to methods, procedures, and equipment used to produce goods and services.
(True or false)
False
The Scientific Management Movement was spearheaded by Henry Ford.
(True or false)
False (Frederick Winslow)
The sample standard deviation of forecast error is estimated by the square root of MSE
(True or false)
True
Organization that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecast
(True or False)
True
The Two Factor theory combined the Japanese approach and traditional Western approach in management
(True or false)
False (The Two Factor Theory was developed by Frederick Herzberg, not Japan.)
Forecasting refers to the ability of the organization to respond quickly to demands and opportunities.
(True or False)
False ( Forecasting is about predicting what will happen — not about how fast the organization responds.)
The greater the degree of customer involvement, the more challenging the design and management of operations.
(True or false)
True
Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom-made parts
(True or false)
True
Operations and sales are the two functional areas that exist to support activities in other functions such as accounting, finance, IT, and human resources.
(True or false)
False
“Value added” by definition is always a positive number since “added” implies increases.
(True or False)
False
Services can be stored and are not provided “on demand”
(True or false)
False
Service often requires relatively greater labor content when compared to manufacturing.
(True or false)
True
Once accepted by managers, forecasts should be held firm regardless of new input since many plans have been made using the original forecast
(True or false)
False (Because forecasts should be monitored and adjusted — not held firm no matter what.)
Forecasts help managers both to plan the system itself and to provide valuable information for using the system.
(True or false)
True
Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization’s goods or services.
(True or false)
False
There are very few pure goods or pure services, so most companies sell product packages that combine goods and services. Therefore, most production systems involve a blend of goods and services.
(True or false)
True
If errors fall beyond bounds, corrective action may be necessary
(True or false)
True
Henry Gantt introduces the division of labor which paves the way for..
(True or false)
False
Assembly lines improved productivity by using interchangeable parts and craft production.
(True or false)
False
System operation decisions are typically strategic decisions that usually require a long-term commitment of resources.
(True or false)
False
Marketing personnel and product designers must work closely with operations to successfully determine how ___________new products designs will be.
Manufacturable
Product design and process selection are example of?
System design decision
Technology choices can have a major impact on?
a. Productivity
b. All of these choices
c. Quality
d. Costs
B. All of these
Suppose a three-period weighted average is being used to forecast demand. Weights for the periods are as follows : Wt-3 = 0.2, Wt-2=0.3, and Wt-1 = 0.5. Demand observed in the previous three periods was as follows: At-3 = 2,200, At-2= 1,950, and At-1= 2,050. What will be the demand forecast for period t?
2050
Which of the following is not true about the systems approach?
a. A systems approach emphasizes interrelationships among subsystems.
b. All of the choices are true.
c. A systems viewpoint is almost always beneficial in decision-making
d. A systems approach concentrates on efficiency within subsystems.
d. A systems approach concentrates on efficiency within subsystems.
Which of the following is a type of transformation process used by operations to convert
inputs into outputs
a. All of these choices are transformation processes
b. Cutting
c. Storing
d. Transporting
a. All of these choices are transformation processes
Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____ is leading to increased emphasis on _____ management.
a. Outsourcing; supply chain
b. Offshoring:lean
c. Optimizing:inventory
d. Downsizing:total quality
a. Outsourcing; supply chain
Given an actual demand of 59, a previous forecast of 64, and an alpha of 0.3, what would the forecast for the next period be using simple exponential smoothing?
62.5
Which of the following would not generally be classified under the heading of transformation?
a. Consulting
b. Staffing
c. Assembling
d. Farming
Staffing
Budgeting, analysis of investment proposals, & provision of funds are activities with what function inside the organization?
Finance
It refers to the measurements taken at various points in the transformation process.
Feedback
What do you call the system in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods widely used before the Industrial Revolution?
Craft Production
He adopted the scientific management principles of Frederick W. Taylor, and introduced the moving assembly line
Henry ford
The president of State University wants to forecast student enrollments for this academic year based on the following historical data:
Year Enrollments
5 years ago 15,000
4 years ago 16,000
3 years ago 18,000
2 years ago 20,000
Last Year 21,000
What is the forecast for this year using the naive approach?
22000
The business analyst for Video Sales, Incorporated wants to forecast this year’s demand for DVD decoders based on the following historical data:
Year Enrollments
5 years ago 900
4 years ago 700
3 years ago 600
2 years ago 500
Last Year 300
What is the forecast for this year using a three-year weighted moving average with
weights of 0.5, 0.3, and 0.2?
420
Professor Very Busy needs to allocate time next week to include time for office hours. He needs to forecast the number of students who will seek appointments. He has gathered the following data:
Week Number of Students
6 weeks ago 83
5 weeks ago 110
4 weeks ago 95
3 weeks ago 80
2 weeks ago 65
Last Week 50
What is this week’s forecast using the naive approach? (Write your answer in figures, for example, 4000)
35
These variations are caused by defective inputs, incorrect work methods, and out-of-adjustment which can be reduced or eliminated by analysis and corrective action.
Assignable variation
These variations include trends and seasonal variations which are generally predictable and are particularly important for capacity planning.
Structural variation in demand
It is the Core Function or the engine room of every business.
Operation Management
