1.
A company produces a batch of product A, and then produces a batch of product B using the same
personnel and equipment. If they can make this transition very quickly they are said to have a high
level of mix flexibility.
a. False
b. True
2. A producer of fasteners sells product to a producer of motorcycles. The producer of fasteners is
upstream from the producer of motorcycles.
a. True
b. False
3. Company A makes widgets and sells them to Company B, who incorporates some software and other
materials to produce gadgets. Company B sells these gadgets to Company C, the end user. Which is the
best statement regarding the relationship among Companies A, B, and C?.
a. Company A is a first tier supplier for Company C.
b. Company B is a second tier supplier of Company A.
c. Company C is downstream from both Company A and Company B.
d. Company B is upstream from Company A.
4. Every organization has an operations function.
a. False
b. True
5. Markets, products, and technology are changing faster today than they have historically.
a. False
b. True
6. One output from all organizations' transformation process is tangible goods.
a. False
b. True
7. Relationship management is the constant focus on customers' needs in a supply chain.
a. True
b. False
8. The SCOR model shows the task of supply chain management extending from your customers'
customers to your suppliers' suppliers.
a. False
b. True
9. Which of these is NOT a flow that moves up and down the supply chain?.
a. Monetary
b. Information
c. Procedural
d. Physical
10. Which of these is NOT a key element of the operations function?.
a. Systems
b. Regulations
c. People
d. Technology
11. Which of these statements about the operations function is best?.
a. Operations is the most isolated of all business functions, rarely needing to interface with marketing,
finance, or engineering.
b. Inputs to the operations function can come from many different places.
c. The quality and availability of inputs to the operations function do not matter if the operation is well-
managed.
d. A manufacturing company provides only tangible goods as outputs.
12. A firm's strategies should be aligned across functional areas.
a. False
b. True
13. In a competitive marketplace, no firm can sustain an advantage on all performance dimensions
indefinitely.
a. False
b. True
14. Performance quality is a measure that judges the basic operating characteristics of the product or
service.
a. True
b. False
15. Policies and procedures are among a firm's structural elements.
a. False
b. True
16. The desk manager at one location of a hotel chain studies her operations manual and does
everything "by the book". At the very least, her hotel should have a high level of:
a. Reliability quality
b. Service after the sale.
c. Conformance quality.
d. Performance quality.
17. The firm's targeted customers and the operations and supply chain functions needed to provide
value to them are identified in the.
a. Business strategy.
b. Structural elements.
c. Core competencies.
d. Mission statement.
18. Which of these is an infrastructural element of a business?
a. The policies used to guide the employees.
b. The building used to house the business.
c. The copier and printers.
d. The office furniture.
19. A college dormitory housing official tours the local four star hotel to study the reservation system
and housekeeping services. This comparison is classified as process benchmarking.
a. False
b. True
20. A company produces 10 units using two employees, each of which works an eight-hour day. The
efficiency of the process is 62.5%.
a. True
b. False
21. A process containing multiple loops is probably less productive than one containing no loops.
a. True
b. False
22. A set of logically related tasks or activities performed to achieve a defined business outcome is a.
a. Development process
b. Business process
c. Support process
d. Primary process
23. A team of workers at a cafeteria maps the food preparation and serving process. This map is of a
primary process.
a. False
b. True
24. A flange is to be machined at a diameter of 5 cm ±.01 cm. The process standard deviation is 0.002
cm. What is the process capability ratio?
a. 1.67
b. 3.33.
c. 0.83
d. 2.00
25. A machined part has tolerance limits of 25 inches to 35 inches and a target of 30 inches. The
process that produces it is currently running at a mean of 31 inches with a standard deviation of 1.2
inches. What is the CPK?
a. 1.39
b. 1.11
c. 1.67
d. 1.50
26. A process has achieved true Six Sigma quality with a mean of 15 that falls neatly within tolerance
limits of 13 and 17. If the process capability index and the process capability ratio are identical, what is
the maximum process standard deviation?
a. 0.67
b. 0.50
c. 0.33
d. 1
27. A college dormitory housing official tours the local four star hotel to study the reservation system
and housekeeping services. This comparison is classified as process benchmarking.
a. False
b. True
28. A company produces 10 units using two employees, each of which works an eight-hour day. The
efficiency of the process is 62.5%.
a. True
b. False
29. A process containing multiple loops is probably less productive than one containing no loops.
a. True
b. False
A set of logically related tasks or activities performed to achieve a defined business outcome is a.
a. Development process
b. Business process
c. Support process
d. Primary process
A team of workers at a cafeteria maps the food preparation and serving process. This map is of a
primary process.
a. False
b. True
In a swim process map, a change of lanes indicates:
a. The item being processed has been physically altered
b. A change in the party responsible for processing
c. An increase in the time required for processing
d. The process is complete.
In a swim-lane process map, a decision is represented by which symbol?
a. A rectangle
b. The letter D
c. A circle
d. A diamond
The NIIE Auto performed oil changes on 20 cars during a four hour period one morning. Each car
required four liters of oil and took two employees 15 minutes to complete. NIIE Auto pays $1.50 per
liters of oil and charges $25 per customer. Employees make $10 per hour whether they are changing oil
or waiting for customers to arrive. What is an appropriate measure of productivity?
a. 15 minutes per car
b. 4 liters per car
c. $2.50 per dollar of cost
d. $500 per hour
The sales clerk received an order at 8 am and promptly went on break. After break, it took a minute to
relay the order to customer service. Customer service filled the order in three minutes and notified the
customer a minute later, at 9:45 am. What is the cycle time?
a. 5 minutes
b. 100%
c. 105 minutes
d. 4.7%
When making a process map it is important to completely detail every step of all activities in the
process.
a. False
b. True
A company elects to use portfolio analysis to conduct their sourcing strategy. They decide to begin this
arduous process with Post-it® notes because they are used in every office and at every workstation in
the building. Where would this item likely fall?
a. Routine quadrant
b. Leverage quadrant
c. Bottleneck quadrant
d. Critical quadrant
A document that authorizes a supplier to deliver a product or service is known as:
a. No correct answer
b. A purchase order
c. A contract.
d. A requisition
A firm that stocks several routine items may use a system that detects when inventory falls to a
predetermined level. This function is known as.
a. A fixed quantity system.
b. A reorder point system
c. Automated ordering.
d. Automated purchasing.
A landed cost is the cost of all logistics activities related to ground transportation plus the cost of the
product itself.
a. True
b. False
A request for quotation is prepared by the company doing the purchasing, not by the company doing
the selling.
a. False
b. True
A warehousing operation that receives goods from a single source or manufacturer and sends out
smaller shipments to a retail location is:
a. Postponement warehousing.
b. Break-bulk warehousing.
c. Consolidation warehousing.
d. Hub and spoke warehousing.
Company A and Company B reach an agreement. Company A uses Company B to provide a service for
them. Company B uses Company A to provide a service for them. This relationship is an example of
cross sourcing.
a. False
b. True
Garments that are sewn overseas are shipped in containers to the Port of Seattle. These containers are
then loaded on rail to major centers in the United States only to be unloaded onto semi trucks for
delivery to the appropriate store. This transportation solution is commonly referred to as:
a. Direct shipment
b. Shiraitruck
c. LTL shipment.
d. Multimodal
In order to achieve a delivery speed strategy, a company might choose to use air and highway
transportation combined with a direct ship and spot stock warehouse system..
a. False
b. True
Indirect costs cannot be assigned to a product.
a. True
b. False
Logistics consists solely of physical flows.
a. False
b. True
Material handling systems include the equipment and procedures needed to move goods within a
facility, but transportation includes the equipment and procedures needed to move goods between
facilities.
a. False
b. True
Portfolio analysis is driven by 1) the relative complexity (or risk) and 2) the value potential of the
product or service under consideration for outsourcing.
a. False
b. True
The ratio of earnings to sales for a given time period is:
a. Profit margin
b. Return on assets.
c. Cost of goods sold.
d. Merchandise inventory.
Which of these actions is most appropriate for an outsourced item that has been judged to fall in the
Leverage quadrant of a portfolio analysis?
a. Prepare contingency plans
b. Promote competitive bidding
c. Develop new suppliers.
d. Minimize administrative costs and automate requisitioning as much as possible
Wrapping paper is extremely fragile and has a demand that spikes dramatically at the end of each year.
It is not possible for manufacturers to ramp up and produce exactly what is needed right before demand
occurs, so wrapping paper is produced year-round and sent to a storage facility to be stored alongside
other items until demand occurs. This technique is:
a. Hub and spoke warehousing
b. Assortment warehousing
c. Postponement warehousing
d. Break-bulk warehousing
You need to send an item to a customer as fast as possible. Money is not an issue, so you should
choose:
a. Air
b. Rail
c. Water
d. Highway
chap 4
1. A fixed-position layout is used when workers do not have much ...
2. An assembly line is to produce 360 items in a standard 8 hour day ...
3. An oil refinery is a continuous flow process
4. Equipment and people are highly specialized and arranged ...
5. If you have a wide variety of products to manufacture, ...
6. Service operations compete and position themselves in the marketplace based on three ...
7. Small output quantities (often just one item) are economically produced by skilled workers...
8. The actual time between completions is referred to as the takt time of a line.
9. The most highly customized products are
10. When customer contact is low, a service can be performed much in the manner ...
11. When customization occurs early in the supply chain products will tend to be more ...
12. Which of these statements is most characteristic of a job shop?
