Operations Management: Logistics

Question 1

Value Analysis is carried out at:

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		a. the conceptual stage
		b. production stage
		c. product maturity stage
		d. product decline stage

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Question 2

Required capacity is a function of technology.

uestion 2 answers

	True
	False

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Question 3

The Quality Function Deployment (QFD) methodology is used for:

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		a. distributing a product
		b. monitoring a project's schedule
		c. determining a customer's needs and wants
		d. monitoring technological changes

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Question 4

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A disadvantage of Flexible Manufacturing Systems (FMs) is that it requires substantial pre-planning.

uestion 4 answers

	True
	False

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Question 5

Research indicates that 85% of quality problems are due to worker errors.

uestion 5 answers

	True
	False

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Question 6

Virtual reality allows a designer to "move" though a 3-dimensional object such as a digital prototype car and to inspect physical relationships more accurately.

uestion 6 answers

	True
	False

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Question 7

A benefit of mass customization is that it allows for:

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		a. high variety and high volume simultaneously
		b. high variety and low volume simultaneously
		c. low variety and low volume simultaneously
		d. low variety and high volume

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Question 8

Dealing with customer complaints properly is part of the quality process.

uestion 8 answers

	True
	False

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Question 9

Level strategy in aggregate planning involves:

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		a. varying the number of employees needed for each production cycle
		b. changing capacity and demand constantly to keep production equal to demand
		c. producing the same amount for each production cycle
		d. high production cots

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Question 10

Kanban is:

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		a. a symbol used to authorize production at "downstream" operations from "upstream" operations
		b. a flag for authorizing production at "upstream" operations from "downstream" operations
		c. a tool for computing economic order quantities
		d. a tool for computing production order quantities

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Question 11

Poka yoke in Japanese means foolproof design of products and processes.

uestion 11 answers

	True
	False

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Question 12

A cybernetic view of productivity is that productivity is a measure of the relationship between:

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		a. inputs and outputs
		b. inputs, outputs and the environment
		c. inputs, outputs and discontinuous technologies
		d. inputs, outputs and the Internet

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Question 13

Expert systems are a subset of the field of artificial intelligence.

uestion 13 answers

	True
	False

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Question 14

The ABC analysis tool is a tool that:

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		a. allows managers to focus on efficiency and other issues associated with the most important inventory items
		b. ensures more frequent counting of all inventory items
		c. is used for computing economic order quantities
		d. is used for computing quantity discounts

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Question 15

The term House of Quality is associated with:

uestion 15 answers

		a. the headquarters of ISO 9000
		b. Analytical Hierarchy Process (AHP)
		c. Quality Function Deployment
		d. The headquarters of the Baldridge Award

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Question 16

Which of the following enables an organization to customize and integrate its business processes?

uestion 16 answers

		a. DSS
		b. MIS
		c. ERP
		d. TPS

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Question 17

Spot the wrong answer. Supply chain encompasses:

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		a. flows of materials
		b. flows of finance
		c. flows of information
		d. flows of manpower within the organization

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Question 18

When a product reaches the growth stage in its life cycle, corporate strategy should focus on:

uestion 18 answers

		a. strengthening product differentiation
		b. beta testing
		c. product and production design
		d. standardization of product and processes

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Question 19

Check sheets are a convenient way of recording data to enhance better detection of patterns, such a s product failures.

uestion 19 answers

	True
	False

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Question 20

Which of the following is not a location method?

uestion 20 answers

		a. Taguchi method
		b. Center of gravity method
		c. Factor rating method
		d. Transportation method

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Question 21

In OM, value is a function of costs and quality.

uestion 21 answers

	True
	False

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Question 22

All business, small and big, should forecast demand, competition and technology. The most important factor in forecasting demand is anticipating:

uestion 22 answers

		a. technology
		b. competition
		c. inflation rates
		d. customer predilections

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Question 23

Computer Aided Manufacturing (CAM) uses computers to:

uestion 23 answers

		a. compute optimal production runs
		b. control manufacturing equipment
		c. prepare production documents
		d. create digital objects

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Question 24

Which of the following is true of Flexible Manufacturing Systems (FMS)?

uestion 24 answers

		a. They are automated warehouses
		b. Thy are the means for achieving human intelligence in machines
		c. They do not require substantial pre-planning
		d. They are integrated machine tools and robots designed to optimize the flow of materials and finished goods

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Question 25

When we design a product such that small changes in critical variables (features) will not cause the product to fail, we are said to be engaged in:

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		a. Configuration management
		b. Concurrent engineering
		c. Modular designing
		d. Robust designing

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Question 26

Which of the following is a qualitative forecasting method?

uestion 26 answers

		a. consumer survey
		b. exponential smoothing method
		c. trend projections method
		d. weighted moving averages method

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Question 27

JIT has an inherent capability for tolerating problems.

uestion 27 answers

	True
	False

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Question 28

Which of the following is an example of the holding costs of inventory?

uestion 28 answers

		a. re-tooling
		b. clerical support
		c. insurance
		d. maintenance

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Question 29

Which of the following is not a source of quality in production management?

uestion 29 answers

		a. mission and vision statement
		b. JIT systems
		c. empowerment of employees
		d. a reduction in maintenance budget

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Question 30

Assignment is:

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		a. an MRP method
		b. an aspect of the transportation model
		c. a JIT methodology
		d. a linear programming method

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Question 31

Full cost view of maintenance and the traditional OM view of maintenance are both products of classical economics. Therefore, both approaches consider opportunity costs from lost sales, lost market share and lost customers in their formulations.

uestion 31 answers

	True
	False

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Question 32

In performing assessments of major new technologies, a Second Order Assessment covers:

uestion 32 answers

		a. a decade or less
		b. many decades
		c. few decades
		d. a particular stage of the product's life cycle

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Question 33

The ideal inventory is no inventory.

uestion 33 answers

	True
	False

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Question 34

An advantage of a repetitive-oriented production strategy is that:

uestion 34 answers

		a. it offers flexibility in producing products
		b. it is a good compromise between process and product-oriented strategies
		c. the process (and the facility) is organized around the product
		d. the customer gets complete satisfaction of her needs and wants

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Question 35

New products need longer-term forecasts than mature products because current technologies are better able to capture information about new products than mature products.

uestion 35 answers

	True
	False

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Question 36

To improve service processes, it is advisable to focus on the following EXCEPT:

uestion 36 answers

		a. layout
		b. product
		c. human resources
		d. technology

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Question 37

Standard for the Exchange of Production (STEP) data allows for global design collaboration using common software protocols.

uestion 37 answers

	True
	False

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Question 38

The Three Laws of real estate are:

uestion 38 answers

		a. schedule, cost, quality
		b. quality, affordability, specification
		c. location, location, location
		d. location, cost, quality

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Question 39

Flow diagrams are like flow charts for computer programs.

uestion 39 answers

	True
	False

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Question 40

Shrinking demand for old technology or products is an example of a cycle.

uestion 40 answers

	True
	False

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Question 41

A company that does extensive international business is called:

uestion 41 answers

		a. supranational
		b. multinational
		c. multidomestic
		d. global company

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Question 42

Short-term forecasts are better than long-term forecasts because:

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		a. we have better technology for short-term forecasting than long-term
		b. it has been so proved by quantum physics
		c. it has been so proved by Newtonian physics
		d. the uncertainties associated with short-term are less than long-term

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Question 43

Forecasts are more accurate for individual products than for product aggregates.

uestion 43 answers

	True
	False

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Question 44

Business Process Reengineering (BPR) is a routine re-thinking and redesigning of a business's processes.

uestion 44 answers

	True
	False

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Question 45

Agile production is the opposite of mass customization.

uestion 45 answers

	True
	False

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Question 46

A mass customization process strategy:

uestion 46 answers

		a. is high-variety, high-volume
		b. is medium-variety, medium-volume
		c. is low-variety, medium-volume
		d. has standardized modules

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Question 47

The "Bathtub Curve" refers to:

uestion 47 answers

		a. distribution of failure in machines and organizations
		b. a type of facilities lay out approach
		c. a type of capacity planning approach
		d. a tool used in aggregate planning

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Question 48

A process map:

uestion 48 answers

		a. describes each step in the production process
		b. describes the time required to complete each step
		c. is a graph showing the production functions in the production process
		d. has arrows that connect boxes that show the sequence between steps in the production process

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Question 49

Possession of the latest technology ensures competitive advantage.

uestion 49 answers

	True
	False

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Question 50

Another term for TQM is Six Sigma.

uestion 50 answers

	True
	False

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Question 51

Research has established that hindsight is definitely better than forecast.

uestion 51 answers

	True
	False

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Question 52

The "cost of quality" concept reflects the fact that the absence of quality processes can be very expensive.

uestion 52 answers

	True
	False

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Question 53

Which of the following accounts for productivity lags in the services industry?

uestion 53 answers

		a. uncontrollable information explosion
		b. services industry deals with intangibles that cannot be measured
		c. processes in the services industry are customized
		d. services industry is not interested in productivity measurement

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Question 54

The goal of a human resource strategy in operations management is to maximize productivity.

uestion 54 answers

	True
	False

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Question 55

Cross-docking means rapid transfer of goods directly from incoming trucks to outgoing trucks.

uestion 55 answers

	True
	False

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