Wednesday, 5 October 2016

BAM 421 Operations Management Unit 2 Examination

BAM 421 Operations Management Unit 2 Examination
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BAM 421 Operations Management Unit Exam 2

  1. The analysis tool that helps determine what products to develop, and by what strategy, by listing products in descending order of their individual dollar contribution to the firm is
_______________ analysis.

  1. In which stage of the product life cycle should product strategy focus on improved cost control?

  1. _______________ is used to rank a company’s products to determine which products represent the best use of the firm’s resources, or, perhaps, to determine which products are to be eliminated.

  1. Which of the following represents an opportunity for generating a new product?

  1. What percentage of sales from new products is indicative of industry leaders?


  1. Which of the following is not one of the major categories of costs associated with quality?

  1. All of the following costs are likely to decrease as a result of better quality EXCEPT _______________ costs.

  1. Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements?

  1. Which of the four major categories of quality costs is particularly hard to quantify?

  1. Which of the following statements is NOT true?


  1. Frito-Lay is to _____________ focus as Harley Davidson is to _____________ focus.

  1. One of the similarities between repetitive focus and mass customization is _____________.

  1. Flexible equipment with rapid changeovers is most closely associated with which approach?

  1. Swift movement through the facility is typical of goods in which approach?

  1. High fixed costs and low variable costs are typical of which approach?

  1. Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to determine if Union labor prices are the cause of Detroit’s financial woes, which of the following should be used?



  1. The reason fast food restaurants often are found in close proximity to each other is ______________.

  1. Currency risk is based on what assumption?

  1. Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution and employment stability may change over time. The term associated with this phenomenon is _____________ risk.

  1. A location decision for an appliance manufacturer would tend to have a(n) _____________.

  1. Slotting fees _____________.

  1. Which of the following is not a retail layout practice?


  1. What is the primary reason why retailers tend to locate high-draw items around the periphery of the store?

  1. The fixed-position layout would be most appropriate in which of the following settings?

  1. For which of the following operations would a fixed-position layout be most appropriate?



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BAM 421 Operations Management Unit 3 Examination

BAM 421 Operations Management Unit 3 Examination
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BAM 421 Operations Management Unit 3 Exam

  1. The behavioral approach to job design that involves giving the worker a larger portion of the total task is job _______________.
  2. enlargement
  3. enrichment
  4. enhancement
  5. rotation
  6. involvement

  1. When a worker has a say in the work methods that he/she wishes to utilize, his/her job is characterized by _______________.
  2. skill variety
  3. job identity
  4. job significance
  5. feedback
  6. autonomy

  1. Which of the following terms implies an increase in responsibility and control in the vertical direction?
  2. job rotation
  3. job enrichment
  4. job re-design
  5. job enlargement
  6. job satisfaction

  1. Which of the following statements describes job rotation?
  2. The job contains a larger number of similar tasks.
  3. The job includes some planning and control necessary for job accomplishment.
  4. The operator works on different shifts on a regular basis.
  5. The operator’s schedule is flexible.
  6. The operator is allowed to move, for example, from one type of CNC machine to the other.

  1. The difference between job enrichment and job enlargement is that ______________.
  2. enlarged jobs involve vertical expansion while enriched jobs involve horizontal expansion
  3. enriched jobs enable an employee to do a number of boring jobs instead of just one
  4. job enlargement is more psychologically satisfying than job enrichment
  5. job enrichment is suitable for all employees, whereas job enlargement is not
  6. enriched jobs involve vertical expansion while enlarged jobs involve horizontal expansion

  1. Suppose that the allowance factor for a job is 0.10 and the normal time is 5 hours. What is the standard time?
  2. 4.5 hours
  3. 4.9 hours
  4. 5.1 hours
  5. 5.6 hours
  6. 50.0 hours
  7. A job characterized by _______________ allows a worker to use his/her dexterity, physical strength and skills to do his/her work.
  8. feedback
  9. skill variety
  10. job identity
  11. job significance
  12. autonomy

  1. Outsourcing ______________.
  2. transfers traditional internal activities to outside vendors
  3. utilizes the efficiency which comes with specialization
  4. lets the outsourcing firm focus on its key success factors
  5. None of the above are true of outsourcing.
  6. All of the above are true of outsourcing.

  1. The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is ______________.
  2. a standard use of the make or buy decision
  3. not allowed by the ethics code of the Supply Management Institute
  4. offshoring
  5. outsourcing
  6. keiretsu

  1. The Institute for Supply Management ________________.
  2. establishes laws and regulations for supply management
  3. is an agency of the United Nations charged with promoting ethical conduct globally
  4. publishes the principles and standards for ethical supply management conduct
  5. prohibits backward integration into developing economies
  6. All of the above are true.

  1. In supply-chain management, ethical issues ______________.
  2. are particularly important because of the enormous opportunities for abuse
  3. may be guided by company rules and codes of conduct
  4. become more complex the more global the supply chain
  5. may be guided by the principles and standards of the Institute for Supply Management
  6. All of the above are true.

  1. Which one of the following is not a supply-chain strategy?
  2. negotiation with many suppliers
  3. vertical integration
  4. keiretsu
  5. short-term relationships with few suppliers
  6. virtual companies


  1. A disadvantage of the “few suppliers” strategy is _______________.
  2. the risk of not being ready for technological change
  3. the lack of cost savings for customers and suppliers
  4. possible violations of the Sherman Antitrust Act
  5. the high cost of changing partners
  6. All of the above are disadvantages of the “few suppliers” strategy.

  1. In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant, the EOQ will _______________.
  2. increase by about 41%
  3. increase by 100%
  4. increase by 200%
  5. increase, but more data is needed to say by how much
  6. either increase or decrease

  1. In the basic EOQ model, if D=6000 per year, S=$100 andH=$5 per unit per month, then the economic order quantity is approximately _______________.
  2. 24
  3. 100
  4. 141
  5. 490
  6. 600

  1. The two most basic inventory questions answered by the typical inventory model are _______________.
  2. timing and cost of orders
  3. quantity and cost of orders
  4. timing and quantity of orders
  5. order quantity and service level
  6. ordering cost and carrying cost

  1. Among the advantages of cycle counting is that it ______________.
  2. makes the annual physical inventory more acceptable to management
  3. does not require the detailed records necessary when annual physical inventory is used
  4. does not require highly trained people
  5. allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory
  6. does not need to be performed for less expensive items

  1. Which of the following is an element of inventory holding costs?
  2. housing costs
  3. material handling costs
  4. investment costs
  5. pilferage, scrap and obsolescence
  6. All of the above are elements of inventory holding cost.

  1. Most inventory models attempt to minimize _______________.
  2. the likelihood of a stockout
  3. the number of items ordered
  4. total inventory based costs
  5. the number of orders placed
  6. the safety stock

  1. Top executives tend to focus their attention on which type of forecasts?
  2. short-range
  3. medium-range
  4. long-range
  5. weather
  6. the forecast for the next day’s absentee levels

  1. Which of the following would most likely fall under the scope of only an operations manager?
  2. research and development
  3. new product plans
  4. capital investments
  5. facility location and expansion
  6. setting inventory levels

  1. Disaggregation _______________.
  2. breaks the aggregate plan into greater detail
  3. transforms the master production schedule into an aggregate plan
  4. calculates the optimal price points for yield management
  5. converts product schedules and labor assignments to a facility-wide plan
  6. is an assumption required for the use of the transportation model in aggregate planning

  1. Aggregate planning would entail which of the following production aspects at BMW for a 12 month period?
  2. number of cars with a hi-fi stereo system to produce
  3. number of two-door vs. four-door cars to produce
  4. number of green cars to produce
  5. total number of cars to produce
  6. b, c, and d are correct.

  1. What directly results from disaggregation of an aggregate plan?
  2. a master production schedule
  3. priority scheduling
  4. a transportation matrix
  5. a capacity-demand matrix
  6. detailed work schedules



  1. Dependence on an external source of supply is found in which of the following aggregate planning strategies?
  2. varying production rates through overtime or idle time
  3. subcontracting
  4. using part-time workers
  5. back-ordering during high demand periods
  6. hiring and laying off





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BAM 421 Operations Management Unit 4 Examination

BAM 421 Operations Management Unit 4 Examination
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BAM 421 Operations Management Unit 4 Exam

  1. The aggregate plan gets input or feedback from which of the following areas?
  2. engineering
  3. finance, marketing and human resources
  4. the master production schedule
  5. procurement, production and general management
  6. All of the above.

  1. Which portion of the master production schedule is normally fixed, frozen or firm?
  2. the entire schedule
  3. only the aggregate schedule
  4. only the middle of the schedule
  5. only the near-term portion
  6. only the far-term portion

  1. In continuous (stock-to-forecast) operations, the master production schedule is usually expressed in terms of _______________.
  2. end items
  3. modules
  4. kits
  5. customer orders
  6. warehouse orders

  1. In job shop (make-to-order) operations, the master production schedule is usually expressed in
_______________.
  1. end items
  2. modules
  3. kits
  4. customer orders
  5. warehouse orders

  1. A document calls for the production of 50 small garden tractors in week 1, 50 small garden tractors and 100 riding mowers in week 2, 100 riding mowers and 200 garden utility carts in week 3 and 100 riding mowers in week 4. This document is most likely a(n) _______________.
  2. net requirements document
  3. resource requirements profile
  4. aggregate plan
  5. master production schedule
  6. Wagner-Whitin finite capacity document




  1. The _______________ is the input to material requirements planning which lists the assemblies, subassemblies, parts and raw materials needed to produce one unit of finished product.
  2. bill of material
  3. master production schedule
  4. inventory records
  5. assembly time chart
  6. net requirements chart

  1. A bill of material lists the _______________.
  2. times needed to perform all phases of production
  3. production schedules for all products
  4. components, ingredients and materials required to produce an item
  5. operations required to produce an item
  6. components, ingredients, materials and assembly operations required to produce an item

  1. Forward scheduling _______________.
  2. begins with a delivery date, then offsets each operation one at a time, in reverse order
  3. is well suited where the supplier is usually able to meet precise delivery dates
  4. tends to minimize work-in-process inventory
  5. assumes that procurement of material and operations start as soon as requirements are known
  6. produces a schedule only if it meets the due date

  1. Scheduling is rather straightforward in product-focused facilities because _______________.
  2. kanban automates the scheduling of the assembly line
  3. demand is reasonably stable and capacities, set-up times and run times are generally known
  4. assembly line balancing assures the highest possible production efficiency
  5. finite capacity scheduling has made MRP much more realistic
  6. All of the above are true.

  1. Which file contains important information regarding an item’s flow through the shop?
  2. item master file
  3. work-center master file
  4. control files
  5. routing file
  6. None of the above provides information regarding an item’s flow through the shop.

  1. Which of these is not part of the planning files of a production planning and control system?
  2. a progress file
  3. a work-center master file
  4. an item master file
  5. a routing file
  6. All of the above are all part of the planning files.



  1. Which of the following files tracks work order progress?
  2. work-center master files
  3. routing files
  4. item master files
  5. control files
  6. None of the above tracks work order progress.

  1. The production database containing information about each of the components that a firm produces or purchases is the _______________.
  2. routing file
  3. work-center master file
  4. control file
  5. item master file
  6. None of the above.

  1. Which of the following is not one of the Seven Wastes?
  2. overproduction
  3. transportation
  4. assignment
  5. defective product
  6. motion

  1. The 5Ss ________________.
  2. have the “flavor” of a housekeeping list
  3. are a checklist for lean operations
  4. have become a list of seven items in American practice
  5. can be used to assist with necessary changes in organizational culture
  6. All of these are true.

  1. The list of 5Ss, although it looks like a housekeeping directive, supports lean production by
________________.
  1. identifying non-value items and removing them in the “sort/segregate” item
  2. reducing inventory in the “standardize” item
  3. increasing variability through standardized procedures in the “standardize” item
  4. eliminating wasted motion through ergonomic studies in the “support” item
  5. building good safety practices in the “shine/sweep” item

  1. Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT?
  2. close relationships with trust
  3. close relationships with skepticism
  4. distant relationships with trust
  5. distant relationships with skepticism
  6. None of the above.

  1. Which one of the following is not a benefit of the implementation of JIT?
  2. cost reduction
  3. variability increase
  4. rapid throughput
  5. quality improvement
  6. rework reduction

  1. If the goals of JIT partnerships are met, which of the following is a result?
  2. For incoming goods, receiving activity and inspection are outsourced.
  3. In-transit inventory falls as suppliers are located closer to facilities.
  4. The number of suppliers increases.
  5. In-plant inventory replaces in-transit inventory.
  6. All of the above are consequences of meeting the JIT partnership goals.

  1. Ten high-technology batteries are tested for 200 hours each. One failed at 20 hours; all others completed the test. FR(%) is _______________ and MTBF is ________________.
  2. 10%; 1/1820
  3. 90%; 1/1820
  4. 10%; 1820 hours
  5. 10%; 1980 hours
  6. cannot calculate from information provided

  1. Ten high-technology batteries are tested for 200 hours each. One failed at 50 hours; all others completed the test. FR(%) is _____________ and FR(N) is _______________.
  2. 10%; 1/1850
  3. 10%; 1/2000
  4. 25%; 1850 hours
  5. 90%; 1/2000
  6. Indeterminate; no standard deviation is given.

  1. Ten high-technology batteries are tested for 200 hours each. One failed at 20 hours, another failed at 140 hours and all others completed the test. FR(%) is _______________ and MTBF is ________________.
  2. 20%; 880 hours
  3. 10%; 1980 hours
  4. 20%; 1760 hours
  5. 80%; 920 hours
  6. cannot calculate from information provided

  1. MTBF measures the average _________________.
  2. calendar time between failures
  3. operating time between failures
  4. number of failures per unit time
  5. number of operations between failures
  6. downtime per breakdown

  1. A system is composed of four parts, J, K, L and M. All four must function for the system to function. The four component reliabilities are .99, .98, .992 and .998. The designers are considering putting a .80 reliable backup at K. This backup will change the system reliability from ______________ to ________________.
  2. 0.9762 to 0.9605
  3. 0.9605 to 0.9762
  4. 0.9605 to some smaller value
  5. cannot be determined
  6. None of the above.

  1. Suppose that a process is comprised of multiple components, each having a 75% success rate. What is the change in reliability going from a series layout to a parallel layout if the process has 5 components?
  2. 0%
  3. 100%
  4. 76.2%
  5. -76.2 %
  6. unable to determine



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