OPS 571 Guide to Process Selection & Design

OPS/571
OPERATIONS MANAGEMENT
The Latest Version A+ Study Guide
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OPS 571 Wk 1 – Practice:Week 1 Practice Quiz
Complete the Week 1 Practice: Introduction to Process Selection and Design Quiz in
McGraw-Hill Connect.
A process that emphasizes cross-functional integration and concurrent development of a product
and its associated processes is known as ___________. (Choose the correct answer to fill in the
blank.)
Multiple Choice
•
team planning
•
concurrent engineering
•
cross-functional design
•
integrated product planning
•
integrated process planning

What is it about service processes that makes their design and operation so different from
manufacturing processes?
Multiple Choice
•
Lack of skilled personnel
•
Poor management
•
Direct customer involvement in the process
•
Complexity of the processes
•
Lack of automated equipment
The purpose of value analysis/value engineering is to ________________. (Choose the correct
answer to fill in the blank.)
Multiple Choice
•
simplify products and processes
•
determine the total cost of ownership of a product
•
determine customers’ definition of value
•
add more features to a product
•
reduce the cost of parts and materials
Which of the following is a characteristic of concurrent engineering?
Multiple Choice
•
Integrated computer-assisted design
•
Using automated guided vehicles
•
Separate development teams working at once
•
Having an excellent forecasting system
•

The design-build-test cycle
Consumer electronics is an example of a product developed in which variant of the generic
product development process?
Multiple Choice
•
Technology-push products
•
Customized products
•
Platform products
•
Quick-build products
•
Process-intensive products
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Which of the following is primarily used to help design products that will connect product
attributes with customer desires?
Multiple Choice
•
Phase 0: Planning
•
House of quality matrix
•
Value analysis/value engineering
•
Concurrent engineering
•
System-level design
A reason that firms must develop more new products than ever is which of the following?
Multiple Choice
•
Product life cycles are shorter
•
Commitments to joint venture partners
•

They are replacing old customers with new ones
•
To amortize heavy investments in development labs
•
The increased difficulty of defending patents and trade names
Economic analysis of product development projects is useful in which of the following
circumstances?
Multiple Choice
•
Factory location
•
Distribution decisions
•
Go/no-go milestones
•
Demand estimation
•
Pricing
The most basic categories of cash flow for a typical new product do not include:
Multiple Choice
•
Depreciation
•
Ramp-up cost
•
Development cost
•
Sales revenue
•
Marketing cost
What dimension of competitiveness does quality in product design affect?
Multiple Choice
•
Engineering hours per project
•
The cost of ongoing service

•
Responsiveness to customer needs
•
Aesthetics of design
•
None of these
OPS 571 Wk 1 – Apply: Week 1 Exam
Complete the Week 1 Exam in McGraw-HillConnect.
The ecodesign approach focuses exclusively on the design and commercial launch phases of the
product's life cycle.
Similarity of projects allows for a streamlined and highly structured development process in which
variant of the generic product development process?
Multiple Choice
•
•
Customized products
•
Complex systems
•
•
Advocates of financial modeling of product design projects argue that:
Multiple Choice
•
Financial analysis focuses on measurable quantities only.
•
Financial analysis brings discipline and control to the product development process.
•
Sufficiently rigorous financial analysis can accurately forecast the product's profit potential.
•

Financial analysis is as solid as the assumptions that go into the model.
•
Financial analysis nurtures innovation and creativity.
DFMA stands for design for manufacturing and assembly.
The generic development process outlined in the textbook is followed by many, if not most, of the
firms in the Fortune 500.
Which of the following is a characteristic of concurrent engineering?
Multiple Choice
•
Integrated computer-assisted design
•
Using automated guided vehicles
•
Separate development teams working at once
•
Having an excellent forecasting system
•
The design-build-test cycle
A contract manufacturer is an organization capable of manufacturing and/or purchasing all of the
components needed to produce a finished product or device.
Consumer electronics is an example of a product developed in which variant of the generic
product development process?
Multiple Choice
•
•
Customized products
•
Platform products
•
•

Target customers are specified during "Phase 0: Planning" of the generic product development
process.
In a concurrent engineering approach to product design and development, an integration team
ensures that various parts of the product are compatible with the needs of the target customer.
A competency is not core if it is easy for competitors to imitate.
alue analysis/value engineering has as its objective to increase product quality and reduce costs.
In the generic product development process, collecting customer needs is accomplished during
phase 0 (planning).
Designing a new product for aesthetics and for the user is generally termed industrial design.
Design for manufacturing and assembly delivers product improvements by emphasizing which of
the following?
Multiple Choice
•
Reducing product quality during the assembly process
•
Simplification of the product by reducing the number of separate parts
•
Reducing equipment in the production process
•
Designing products so they can be manufactured by a virtual factory
•
Designing products that customers will want
Concept development assumes a proven technology in which variant of the generic product
development process?
Multiple Choice
•

•
•
Complex systems
•
Platform products
•
Core competencies are those things that everyone in the firm must be able to do well.
The main purpose of concurrent engineering is to improve product quality.
The purpose of value analysis/value engineering (VA/VE) is to:
Multiple Choice
•
Simplify products and processes
•
Improve the value that customers find in existing products
•
Relate the customer's needs to technicalspecifications
•
Meet budgets and improve the results of financial models
•
Facilitate better cooperation between business functions
Which of the following is primarily used to help design products that will connect product
attributes with customer desires?
Multiple Choice
•
Phase 0: Planning
•
House of quality matrix
•
Value analysis/value engineering
•

Concurrent engineering
•
System-level design
Specialized design firms tend to have highly developed processes that support the needs of
particular industries.
Quality function deployment (QFD):
Multiple Choice
•
Is a manufacturing function aimed at lowering cost by reducing the portion of rejected units.
•
Fills the house of quality matrix with the designer's aspirations for the product.
•
Starts with studying and listening to customers.
•
Is a place where the quality assurance function is housed.
•
Is another term for value engineering.
Which of the following is not a typical phases of product development?
Multiple Choice
•
Concept development
•
Planning
•
System-level design
•
early market feedback
•
Production/ramp-up
The most basic categories of cash flow for a typical new product do not include:
Multiple Choice
•
Depreciation

•
Ramp-up cost
•
Development cost
•
Sales revenue
•
Marketing cost
The conclusion of the product development process is when the product is withdrawn from the
market.
Complete the Week 2 Practice: Improving Processes and Process Design Quiz in
A firm has redesigned its production process so that it now takes 10 hours for a unit to be made.
Using the old process, it took 15 hours to make a unit. If the process makes one unit each hour on
average and each unit is worth $1,500.
What is the reduction in work-in-process value?
In a flowchart, what is used to represent a storage activity in a process?
•
Octagon
•
Square
•
Oval
•
Circle
•
Inverted triangle
What is the name of the national quality award given by the government of the United States?

Multiple Choice
•
Malcolm Baldrige National Quality Award
•
Congressional Medal of Quality
•
President’s Quality Medal
•
Deming Quality Award
•
American Quality Leader Award
What term means managing the entire organization so that it excels on all dimensions of products
and services that are important to customers?
Multiple Choice
•
Continuous improvement
•
Quality at the source
•
Total quality management
•
Kaizen
•
DMAIC
Aprocess flowchart uses which of the following symbols to represent storage areas or queues in a
flow diagram?
Multiple Choice
•
Rectangle
•
Arrow
•
Inverted triangle
•
Diamond
•
A dashed line
To reduce process throughput time, you might try which of the following actions?

Multiple Choice
•
Outsource activities.
•
Change the sequence of activities.
•
Improve teamwork.
•
Reduce management interference.
•
Introduce incentive pay
According to Little's law, which of the following ratios is used to find flow time?
Multiple Choice
•
Cycle time/Process time
•
Throughput time/Process velocity
•
Process velocity/Throughput time
•
Inventory/Throughput rate
•
Value-added time/Process velocity
The dimension of design quality that concerns the sensory characteristics of the product is which
of the following?
Multiple Choice
•
Features
•
Serviceability
•
Perceived quality
•
Reputation
•
Aesthetics

DPMO refers to
Multiple Choice
•
defects per million parts
•
defects per many units
•
defects per million operations
•
defects per million opportunities
•
defects per million
A fishbone diagram as part of a Six-Sigma quality improvement process might be found in which
DMAIC category?
Multiple Choice
•
Define
•
Measure
•
Analyze
•
Improve
•
Control
Complete the Week 2 Exam in McGraw-Hill Connect.
Aflowchart as part of a Six-Sigma quality improvement process might be found in which DMAIC
category?
Multiple Choice
•
Define
•

Measure
•
Analyze
•
Improve
•
Control
One of the tools common to all quality efforts is leadership.
Inventory turn is the cost of goods sold divided by the average inventory value.
Design quality refers to the inherent value of the product in the marketplace.
One way to categorize a process is to determine whether it is a multiple-stage or a single-stage
process.
McDonald's fast-food restaurants use a make-to-order production process.
One tool used in total quality management is the run chart.
Which of the following is not an analytical tool used in Six-Sigma quality improvement
programs?
Multiple Choice
•
Flowcharts
•
Run charts
•
Control charts
•
Pareto diagrams
•
Decision diagrams

Fundamental to any quality program is the determination of quality specifications and the costs of
achieving (or not achieving) those specifications.
An operational goal of total quality management is the careful design of the product or service.
ISO standards ask a company first to document and implement its systems for quality management
and then to verify, by means of an internal audit, the compliance of those systems with the
requirements of the standards.
Design quality in products refers to the degree to which product or service design specifications
are met.
Little's law says there is a long-term relationship among the inventory, throughput, and flow time
of a production system in steady state.
A cost of quality classification is which of the following?
Multiple Choice
•
Material costs
•
Prevention costs
•
Variable overhead
•
Direct labor
•
Inventory costs
An operational goal of total quality management is ensuring that the organization's systems can
consistently produce the product or service as it is designed.
An operational goal of total quality management is ensuring that the organization's systems will
never produce a defective product or service.
All except one of the following is an analytical tool for six sigma.
Multiple Choice
•
Flowcharts

•
Pareto Charts
•
fishbone diagram
•
DPMO analytics
•
Process control charts
The dimension of design quality that concerns the consistency of performance over time or the
probability of failing is which of the following?
Multiple Choice
•
Response
•
Serviceability
•
Reliability
•
Reputation
•
Perceived quality
Utilization of a production process is the ratio of output to input.
The Malcolm Baldrige National Quality Award represents the U.S. government's endorsement of
quality as an essential part of successfulbusiness strategy.
Benchmarking refers to the practice of comparing the production metrics of one firm with the
production metrics of another.
While small business organizations can seek to achieve the Baldrige National Quality Award,
hospitals cannot.
It is generally believed that the correct cost for a well-run quality management program should be
under 2.5 percent of sales.
Consider a three sequentially stepped process named as Process A, Process B and Process C. Input
comes into Process A. Output form A goes into Process B. Output from B goes into Process C.
Output of C is the final output. Suppose that it takes 2 minutes per unit in Process A, 3 minutes per

unit in Process B and 1 minute per unit in Process C. What will be maximum steady state output
from this system?
Multiple Choice
•
30 per hour
•
60 per hour
•
20 per hour
•
10 per hour
•
cannot tell since it depends on the input rate.
A fishbone diagram as part of a Six-Sigma quality improvement process might be found in which
DMAIC category?
Multiple Choice
•
Define
•
Measure
•
Analyze
•
Improve
•
Control
Complete the LearnSmart activities for the following chapters of Operations and Supply
Chain Management in McGraw-Hill Connect:
 Ch. 14, “Lean Supply Chains” (10 points)
 Ch. 23, “Theory of Constraints” (10 points)
What lean concept relates to eliminating non-value-added steps and waste in product storage
processes?

Multiple Choice
•
Just-in-time production
•
Inventory management
•
Lean warehousing
•
Warehouse mapping
•
Automated storage design
What phrase refers to the idea that all steps in supply chain processes that deliver goods and
services to the customer should create value?
Multiple Choice
•
Lean supply chains
•
Value chain
•
Value-added principle
•
Value rule
•
Lean logistics
What classic operational measurement does Goldratt redefine as “all the actions that bring a
company closer to its goals”?
Multiple Choice
•
Productivity
•
Capacity utilization
•
Strategy
•
Net income
•
Tactics
What is the term which refers to the entire production process working in harmony to achieve the
profit goals of the firm?

Multiple Choice
•
Coordinated production
•
Synchronous manufacturing
•
Level production planning
•
Team processes
•
Steady state
In a lean production system, we expect to see which of the following?
Multiple Choice
•
No extra inventory
•
Extra inventory of critical parts held "just-in-case"
•
More parts and fewer standardized product configurations
•
Managers being held responsible for quality of the work turned out
•
Closer management-labor relationships
In the textbook, Toyota's Fujio Cho identified which of the following types of waste to be
eliminated?
Multiple Choice
•
Excess quality
•
Motion
•
Excess capacity
•
Underproduction
•
Excess demand
Which of the following is a lean production technique that has been successfully applied in service
firms?

Multiple Choice
•
Decision trees
•
Leveling the facility load
•
Linear programming
•
Fully utilized capacity
•
Backflushing
According to the theory of constraints, which of the following is a financial measurement that can
be used to measure the firm's ability to make money?
Multiple Choice
•
Net profit
•
Throughput
•
Inventory
•
Sales
•
Retained earnings
Auseful measure of inventory performance is called "dollar days." In which of the following areas
are dollar days measurements not useful?
Multiple Choice
•
Marketing
•
Research and development
•
Manufacturing
•
Project management
•
Purchasing
Which of the following is a negative aspect of JIT compared to synchronous manufacturing?

Multiple Choice
•
JIT cannot deal with outside vendors.
•
JIT needs broadly fluctuating production levels.
•
JIT does not allow very much flexibility in the products produced.
•
JIT requires a great deal of workforce computationalskills.
•
JIT does not deal well with bottlenecks.
Dr. Eli Goldratt feels that the goal of a firm is to make useful products efficiently.
An activity where the parts that go into each unit of a product are periodically removed from
inventory and accounted for based on the number of units produced is called which of the
following?
Multiple Choice
•
Frozen window
•
Backflush
•
Level schedule
•
Group technology
•
Kanban
Smaller transfer batches give lower work-in-process inventory and faster product flow.
JIT production means that we produce the product before it is required so the customer does not
wait for the product.

Group technology is a philosophy wherein similar parts are grouped together and the processes
required to make the parts are arranged as a work cell.
According to the theory of constraints, which of the following is a financial measurement that can
be used to measure the firm's ability to make money?
Multiple Choice
•
Net profit
•
Throughput
•
Inventory
•
Sales
•
Retained earnings
Which of the following are related to lean production?
Multiple Choice
•
A philosophy of waste elimination
•
Lean consumption
•
Never running out of inventory
•
TheWahei-Subaru method
•
Full use of capacity
Preventive maintenance is emphasized in lean production to ensure that flows are not interrupted
by downtime or malfunctioning equipment.
According to the theory of constraints, a non-bottleneck is any resource where capacity is less than
the demand placed on it.
The effects of statistical variations in processing times in a dependent sequence will eventually

cancelthemselves out due to the law of averages.
You have been called in as a consultant to set up a kanban control system. The first thing you do is
to determine the number of kanban card sets needed. Your research shows that the expected
demand during lead time for a particular component is 1,200 per hour. You estimate the safety
stock should be set at 5 percent of the demand during lead time. The tote trays used as containers
can hold 2 units of stock, and the lead time to replenish an order is 10 hours. Which of the
following is the number of kanban card sets necessary to support this situation?
Multiple Choice
•
5,000
•
5,500
•
6,300
•
6,500
•
7,000
In setting up a kanban control system you need to determine the number of kanban card sets
needed. If the expected demand during lead time is 25 per hour, the safety stock is 20 percent of
the demand during lead time, the container size is 5, and the lead time to replenish an order is 5
hours, what the number of kanban card sets is needed?
Multiple Choice
•
5
•
20
•
27
•
30
•
34
In setting up a Kanban control system you need to determine the number of kanban card sets
needed. If assume the expected demand during lead time is 50 per hour, the safety stock is 20

percent of the demand during lead time, the container size is 4, and the lead time to replenish an
order is 8 hours, what number of Kanban card sets is needed?
Multiple Choice
•
60
•
80
•
90
•
120
•
150
Looking at the loads that are placed on each resource by the products that are scheduled through
them is called process flow profiling.
following is not listed in the textbook as a component of a lean supply chain?
Multiple Choice
•
Lean customers
•
Lean management
•
Lean logistics
•
Lean warehousing
•
Lean procurement
Which of the following is an element that addresses elimination of waste under lean production?
Multiple Choice
•
Production ahead of demand
•
Group plant loading technology
•
Kanban production control system
•

Minimized run times
•
Full capacity utilization
Lean production is an integrated set of activities designed to achieve high-volume production
using minimal inventories of raw materials, work-in-process, and finished goods.
The term "dependent events" refers to a process sequence.
Subcontractor networks are not very important in Japanese manufacturing.
According to the theory of constraints, a bottleneck is any resource whose capacity is greater than
the demand placed on it.
From an operations standpoint, one of the goals of the firm under the theory of constraints is to
increase throughput while simultaneously reducing inventory and reducing operating expense.
Which of the following address elimination of waste under lean production?
Multiple Choice
•
Info-matic warehouse networks
•
Outsourced housekeeping
•
Quality at the source
•
Backflush
•
Bottom-round management
A way to find a bottleneck is to use one's knowledge of a particular plant, look at the system in
operation, and talk with supervisors and workers.
In the textbook, Toyota's Fujio Cho identified which of the following types of waste to be
eliminated?
Multiple Choice
•
Underproduction

•
Excess quality
•
Preventive maintenance
•
Product defects
•
Kaizen
Lean production requires a "push and pull" system of inventory replenishment.
Complete the Week 4 Practice: Project Management Quiz in McGraw-Hill Connect.
The following table represents a plan for a project:
TIMES (DAYS)
JOB NO. PREDECESSOR
JOB(S) a m b
1 – 2 3 4
2 1 1 2 3
3 1 4 5 12
4 1 3 4 11
5 2 1 3 5
6 3 1 2 3
7 4 1 8 9
8 5, 6 2 4 6
9 8 2 4 12
10 7 3 4 5
11 9, 10 5 7 8
________________________________________
b. Indicate the critical path.
•
1-3-6-8-9-11
•
1-2-5-8-9-11

•
1-4-7-10-11
c. What is the expected completion time for the project? (Do not round intermediate calculations.
Round your answer to 2 decimal places.)
d. You can accomplish any one of the following at an additional cost of $1,500. If you will save
$1,000 for each day that the earliest completion time is reduced, which of the following actions
should be taken, if any?
1. Reduce job 5 by two days.
•
Yes
•
No
•
Yes
•
No
•
Yes
•
No
e. What is the probability that the project will take more than 30 days to complete? (Use Excel's
NORMSDIST() function to find the correct probability for your computed Z-value. Other than the
expected completion time you entered in part c above, do not round intermediate calculations.
Round "z" value to 2 decimal places your final answer to 4 decimal places.)
There is an 82 percent chance the project below can be completed in X weeks or less.
ACTIVITY MOST OPTIMISTIC MOST
LIKELY MOST PESSIMISTIC

A 2 5 11
B 3 3 3
C 1 3 5
D 6 8 10
E 4 7 10
________________________________________
What is X? (Do not round intermediate calculations. Round your answer to the nearest whole
number.)
The following represents a project that should be scheduled using CPM:
TIMES (DAYS)
ACTIVITY IMMEDIATE PREDECESSORS a m b
A — 1 3 5
B — 1 2 3
C A 1 2 3
D A 2 3 4
E B 3 4 11
F C, D3 4 5
G D, E 1 4 6
H F, G 2 4 5
________________________________________
b. What is the critical path?
•
A-D-F-H
•
A-C-F-H
•
B-E-G-H
•
A-D-G-H
c. What is the expected project completion time? (Do not round intermediate calculations. Round
your answer to 2 decimal places.)
d. What is the probability of completing this project within 16 days? (Use Excel's NORMSDIST()
function to find the correct probability for your computed Z-value. Do not round intermediate

calculations. Round "z" value to 2 decimal places and final answer to 4 decimal places.)
What type of chart compares the current project schedule with the original baseline schedule so
that deviations from the original plan can be easily noticed?
Multiple Choice
•
Project calendar
•
Project task tree
•
Milestone chart
•
Tracking Gantt chart
•
Bar chart
In a Gantt chart, the horizontal axis is usually which of the following?
Multiple Choice
•
Activities
•
Cost
•
Profit
•
Time
•
Milestones
You have just been assigned to oversee a series of projects. Functional areas will loan you
personnel for each project, and separate project managers will be responsible for separate projects.
These project managers will report to you. Which project management structure is being used?
Multiple Choice
•
Pure project
•
Task force
•

Matrix project
•
Functional project
•
PERT
You have just performed a CPM analysis and have found that more than one path through the
project network has zero slack values. What can you conclude?
Multiple Choice
•
You have incorrectly performed the analysis.
•
You have multiple critical paths.
•
Only one path is optimal.
•
More than one path is optimal.
•
The project will not be completed by the desired time.
A simple project listing of five activities and their respective time estimates are presented here:
Using CPM, which activities make up the critical path?
Multiple Choice
•
A, C, D, E
•
A, B, D, E
•
A, C, B, D, E
•
A, D, E
•
None of these
You are looking at a chart that has the terms BCWS, BCWP, and AC indicating lines on the chart.
What kind of chart are you looking at?
Multiple Choice
•

Gantt chart
•
PERT chart
•
Bar/milestone chart
•
Total program cost breakdown
•
EVM chart
Popular project management software used in mid-sized projects is
Multiple Choice
•
Microsoft Word.
•
Microsoft Primavera.
•
Microsoft Project.
•
Microsoft Excel.
•
None of these
One of the assumptions made using CPM is that project activities can be identified with clear
beginning and ending points.
Here are the data for a time-cost CPM scheduling model analysis. The time is in days and the
costs include both direct and indirect costs.
What are the total time of this project and total normal cost?
Multiple Choice
•
Total time is 13 days, total cost is $1,200.
•

•
•
•
A project may be defined as a series of related jobs directed toward some major output and
requiring a significant period of time to perform.
When reducing the planned duration of a project using the time-cost CPM model, we select the
activity to crash by determining the cost of each alternative and selecting the one whose cost is the
greatest.
A series of projects that are organized in such a way that each project utilizes people from
different functional areas is using which of the following organizational structures?
Multiple Choice
•
Matrix project
•
Integrated task force
•
Functional project
•
Pure project
•
Cross-functional flexible team
A project can be subdivided into which of the following?
Multiple Choice
•
Job orders
•
Sub-jobs
•
Work packages
•

Sub-paths
•
Events and decisions
Acompany must perform a maintenance project consisting of seven activities. The activities, their
predecessors, and their respective time estimates are presented here:
Using CPM, which activities have slack in this project?
Multiple Choice
•
A, B, C
•
B, D
•
Only C
•
C, E
•
F, G
A matrix project attempts to blend properties of functional and pure project structures.
You are looking at a chart that has the terms BCWS, BCWP, and AC indicating lines on the chart.
What kind of chart are you looking at?
Multiple Choice
•
Gantt chart
•
PERT chart
•
Bar/milestone chart
•
Total program cost breakdown
•
EVM chart
In the time-cost CPM model, cost is assumed to be a linear function of time.

The Gantt chart is an example of a project controlchart.
CPM is an abbreviation for critical path method.
A simple project listing of five activities, their predecessors, and their respective time estimates
are presented here:
Using CPM, what is the latest finish time for the last activity in this project (i.e., the total time to
complete the project)?
Multiple Choice
•
10 days
•
7 days
•
8 days
•
12 days
•
9 days
Upper-level management must decide between pure, functional, and matrix structures as ways to
organize projects.
In a CPM analysis, if you subtract the late finish from the early finish, the result is the activity's
slack time.
You are managing a project and need to cut the cost of the project. You decide to transfer workers
to another job to cut the project's costs. Costs associated with transferring the workers are an
example of project indirect costs.
A simple project listing of five activities and their respective time estimates are presented here:
Using CPM, which activities make up the critical path?
Multiple Choice
•
A, C, D, E
•

A, B, D, E
•
A, C, B, D, E
•
A, D, E
•
None of these
Derivative projects are those that address incremental changes to products or processes.
A simple project listing of five activities, their predecessors, and their respective time estimates
are presented here:
Using the CPM, which activities have slack in this project?
Multiple Choice
•
A
•
B
•
C
•
D
•
C and E
Calculating the early start and early finish times for each activity in a CPM analysis does not
provide any useful information.
An advantage of a pure project where self-contained teams work full time on a project is which of
the following?
Multiple Choice
•
Team members can work on several projects.
•
Functional area is a "home" after the project is completed.
•
There are duplicated resources.

•
Lines of communication are shortened.
•
Overall organizational policies and goals can be ignored.
Which of the following is a graphic project report used in project management?
Multiple Choice
•
Project proposal
•
Approved project plan
•
Humphrey chart
•
Equipment and supplies chart
•
Cost and performance tracking schedule
A work breakdown structure is used in project management but it is not used when the critical
path method is involved.
Project management can be defined as planning, directing, and controlling resources to meet the
technical, cost, and time constraints of the project.
The activity direct costs associated with a project might include giving workers overtime to
complete a project in less than the expected time.
Complete the Week 5 Practice: Business Forecasting Quiz in McGraw-Hill Connect.
What category of forecasting techniques uses managerial judgment in lieu of numerical data?
Multiple Choice
•
Ad hoc methods
•
Rule-of-thumb methods
•

Qualitative techniques
•
Gut instinct forecasting
•
Manager’s choice approach
What is the term for forecasts used for making day-to-day decisions about meeting demand?
Multiple Choice
•
Strategic forecasts
•
Tactical forecasts
•
Daily forecasts
•
Rolling forecasts
•
Time series forecasts
What is the term used for the bundle of goods and services that are provided in some environment
by every service operation?
Service system
•
Service environment
•
Service bundle
•
Service patchwork
•
Service package
Which of the following are significant ways in which service systems differ from manufacturing
systems? (You may select more than one answer. Single click the box with the question mark to
produce a check mark for a correct answer and double click the box with the question mark to
empty the box for a wrong answer.)
process is part of the product
Service is tangible
The service itself cannot be patented
Employees do not require any technical training

You cannot inventory service
Which of the following is not one of the basic types of forecasting?
Multiple Choice
•
Qualitative
•
Time series analysis
•
Causal relationships
•
Simulation
•
Force field analysis
A company wants to generate a forecast for unit demand for year 2017using exponential
smoothing. The actual demand in year 2016was 120. The forecast demand in year 2016was 110.
Using these data and a smoothing constant alpha of 0.1, which of the following is the resulting
year 2017forecast value?
Multiple Choice
•
100
•
110
•
111
•
114
•
120
Which of the following forecasting methods is very dependent on selection of the right individuals
who will judgmentally be used to actually generate the forecast?
Multiple Choice
•
Time series analysis
•

Simple moving average
•
Weighted moving average
•
Delphi method
•
Panel consensus
Which one of the following is not a major factor distinguishing service design and development
from manufacturing design and development?
Multiple Choice
•
The process and product must be developed at the same time.
•
Many service organizations can change their service offerings virtually overnight.
•
Many parts of the service package are often defined by the training that individuals receive before
they become part of the service organization.
•
The service package, rather than a definable good, is the output of the development process.
•
Service operations can be protected by patents; manufacturing operations cannot.
One of the three approaches to delivering on-site service is _____
Multiple Choice
•
Airline approach
•
Self-service approach
•
Fast food approach
•
Do-it-yourself approach
•
Internet approach
Which of the following is not a characteristic of a well-designed service system?
Multiple Choice
•
Robust
•

Cost-effective
•
Puts customers in charge
•
User-friendly
•
Effectively links "front office" with "back office"
There are no differences in strategic and tactical forecasting. A forecast is a mathematical
projection, and its ultimate purpose should make no difference to the analyst.
A facilitating good is something purchased or consumed by the buyer or items provided by the
customer.
Which of the following forecasting methodologies is considered a time series forecasting
technique?
Multiple Choice
•
Simple moving average
•
Market research
•
Leading indicators
•
Historical analogy
•
Simulation
When recovering from a defective service encounter, a botched task calls for material
compensation.

In decomposition of time series data, it is relatively easy to identify cycles and autocorrelation
components.
Cyclical influences on demand may come from occurrences such as political elections, war, or
economic conditions.
In the service-system design matrix, a face-to-face loose specs service encounter is expected to
have which of the following?
Multiple Choice
•
Low sales opportunity
•
Low production efficiency
•
High production efficiency
•
Low degree of customer/server contact
•
None of these
Choosing how to accommodate customer induced variability in a service business is the decision
of the front-line service provider.
Experience and trial and error are the simplest ways to choose weights for the weighted moving
average forecasting model.
In exponential smoothing, it is desirable to use a higher smoothing constant when forecasting
demand for a product experiencing high growth.
Which of the following forecasting methodologies is considered a causal forecasting technique?
Multiple Choice
•
Exponential smoothing
•
•
Linear regression

•
Historical analogy
•
Market research
Which of the following is used to describe the degree of error?
Multiple Choice
•
•
Regression
•
Moving average
•
Forecast as a percent of actual
•
Mean absolute deviation
In business forecasting, what is usually considered a short-term time period?
Multiple Choice
•
Four weeks or less
•
More than three months
•
Six months or more
•
Less than three months
•
One year
Which of the following are alternative possible service encounters included in the service-system
design matrix?
Multiple Choice
•
Mail contact
•
Warranty

•
Sales call
•
Field service
•
None of these
Cyclical influences on demand are often expressed graphically as a linear function that is either
upward or downward sloping.
In most cases, demand for products or services can be broken into several components. Which of
the following is considered a component of demand?
Multiple Choice
•
Cyclical elements
•
Future demand
•
Past demand
•
Inconsistent demand
•
Level demand
Atracking signal (TS) can be calculated using the arithmetic sum of forecast deviations divided by
the MAD.
Which of the following is not a characteristic of a well-designed service system?
rev: 10_20_2017_QC_CS-106207
Multiple Choice
•
User-friendly
•
Cost-effective
•
back office and front office effectively linked
•
consistency between organization and department
•
consistency between service systems and firm’s operating focus

A company hires you to develop a linear regression forecasting model. Based on the company's
historical sales information, you determine the intercept value of the model to be 1,200. You also
find the slope value is minus 50. If, after developing the model, you are given a value of X = 10,
which of the following is the resulting forecast value using this model?
Multiple Choice
•
•
700
•
1,230
•
1,150
•
12,000
Customer contact refers to creation of the service.
Qualitative forecasting techniques generally take advantage of the knowledge of experts and
therefore do not require much judgment.
In forecasting, RSFE stands for "running sum of forecast errors."
For every forecasting problem, there is one best forecasting technique.
If the intercept value of a linear regression model is 40, the slope value is 40, and the value of X is
40, which of the following is the resulting forecast value using this model?
Multiple Choice
•
120
•
1,600
•
1,640
•
2,200
•
64,000
The value of the smoothing constant alpha in an exponential smoothing model is between 0 and 1.

Complete the Week 6 Practice: Sourcing, Logistics, and Facility Location Quiz in
What mode of transportation is limited to specialized products such as liquids and gases?
Multiple Choice
•
Highway (truck)
•
Pipelines
•
Air
•
Waterway (ship)
•
Rail
What mode of transportation is involved in the movement of the greatest number of products?
Multiple Choice
•
Highway (truck)
•
Rail
•
Air
•
Waterway (ship)
•
Pipelines
What is the term used for a company moving management of the complete cycle of material flow
to an outside provider?
Multiple Choice

•
Vendor-managed inventory
•
Contract distribution
•
Supply chain management
•
Logistics outsourcing
•
Contract material management
Sony Electronics produces a wide variety of electronic products for the consumer marketplace,
such as laptop computers, PlayStation game consoles, and tablet computers. What type of products
would these be considered in the Supply Chain Uncertainty Framework?
Multiple Choice
•
Innovative products
•
Functional products
•
Commoditized products
•
High-tech goods
•
Consumer goods
In the logistics-systems design matrix, volume, cost and speed of delivery are three variables
(assume three levels: low, moderate or high) used to describe attributes of transportation modes.
Rail is associated with
Multiple Choice
•
moderate volume, moderate speed and high cost
•
moderate volume, high speed and high cost
•
high volume, moderate speed and low cost
•
low volume, high cost and low speed
•
high volume, high speed and high cost

Plant A is located at the (X, Y) coordinates of (100, 200) and has a volume of shipping of 500
units a day. Plant B is located at the (X, Y) coordinates of (150, 400) and has a volume of shipping
of 200 units a day. Using the centroid method, which of the following is the X coordinate for the
new plant location?
Multiple Choice
•
About 100
•
About 114
•
About 130
•
About 150
•
X coordinate cannot be computed from the data given.
In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional
products with an evolving supply process is called which of the following?
Multiple Choice
•
Efficient
•
Forward looking
•
Agile
•
Risk hedging
•
Responsive
Which of the following is one of the strategic characteristics to consider when deciding how
supplier relationships should be structured on the continuum between vertical integration (do not
outsource) and arm's length relationships (outsource)?
Multiple Choice
•

Cost
•
Location
•
Investment
•
Coordination
•
Control
Ownership costs are incurred after the initial purchase and are associated with the ongoing use of
the product or material. Which of the following is not an ownership cost listed in the text?
Multiple Choice
•
Financing costs
•
Energy costs
•
Taxes
•
Maintenance and repair costs
•
Supply network costs
If the average aggregate inventory value is $45,000 and the cost of goods sold is $10,000, which
of the following is weeks of supply?
Multiple Choice
•
45,000
•
234
•
120
•
23.4
•
4.5

Facility location analysis considers the competitive imperative of lowest total cost.
Which of the following is an improvement-driven reason for outsourcing?
Multiple Choice
•
Shorten cycle time.
•
Improve effectiveness by focusing on what the firm does best.
•
Increase product and service value by improving response to customer needs.
•
Turn fixed costs into variable costs.
•
Reduce costs through a lower cost structure.
A free trade zone is typically a closed facility into which foreign goods can be brought without
being subject to the usual customs requirements.
Which of the following of Fisher's product categories includes fashionable clothing, personal
computers, and other products that typically have a very brief life cycle?
Multiple Choice
•
Functional products
•
Dysfunctional products
•
Innovative products
•
Bullwhip products
•
Value density products
Ownership costs include which of the following costs?

Multiple Choice
•
Environmental costs
•
Warranty costs
•
Supply chain costs
•
Quality costs
•
Taxes
In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative
products with a stable supply process is called which of the following?
Multiple Choice
•
Efficient
•
Forward looking
•
Agile
•
Risk hedging
•
Responsive
Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400
units a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping
of 300 units a day. Using the centroid method, which of the following is the X coordinate for the
new plant location?
Multiple Choice
•
About 208
•
About 227
•

About 243
•
About 389
•
X coordinate cannot be computed from the data given.
Inventory turnover and weeks of supply are mathematically the inverse of one another.
The optimal strategy for functional products is to use an efficient supply chain.
Which of the following is not an infrastructure criteria used in facility location analysis?
Multiple Choice
•
Adequate school system
•
Adequate health care
•
Adequate transportation
•
Adequate low cost labor
•
Adequate public utility systems
Facility location analysis considers the competitive imperative of locating near the appropriate
labor pool to take advantage of low wage costs and/or skill levels.
Which of the following is not an improvement-driven reason for outsourcing?
Multiple Choice
•
Improve quality and productivity.
•
Enhance effectiveness by focusing on what you do best.
•
Improve risk management.
•
Obtain expertise, skills, and technologies not otherwise available.
•
Improve credibility and image by associating with superior providers.

One of the objectives of facility location analysis is to select a site with the lowest total cost.
Which of the following costs should be excluded from the analysis?
Multiple Choice
•
Historical costs
•
Inbound distribution costs
•
Land
•
Construction
•
Regional costs
Facility location analysis considers proximity to customers important to timeliness of deliveries.
In facility location decision making, matching the educational and skill levels of the labor pool to
a company's needs is even more important than the labor pool's willingness and ability to learn.
Facility location decisions are made using analytical techniques that are able to weigh a large
number of different variables equally.
In the logistics-systems design matrix, volume, cost and speed of delivery are three variables
(assume three levels: low, moderate or high) used to describe attributes of transportation modes.
Rail is associated with
Multiple Choice
•
moderate volume, moderate speed and high cost
•
moderate volume, high speed and high cost
•
high volume, moderate speed and low cost
•
low volume, high cost and low speed
•
high volume, high speed and high cost

An organizationally driven reason for outsourcing is that it can transform the organization.
In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional
products with an evolving supply process is called which of the following?
Multiple Choice
•
Efficient
•
Forward looking
•
Agile
•
Risk hedging
•
Responsive
If the average aggregate inventory value is $45,000 and the cost of goods sold is $10,000, which
of the following is weeks of supply?
Multiple Choice
•
45,000
•
234
•
120
•
23.4
•
4.5
Strategic sourcing is the development and management of supplier relationships to acquire goods
and services in a way that aids in achieving the immediate needs of the business.
Outsourcing is the act of moving some of a firm's internal activities and decision responsibility to
outside providers.
One of the objectives of facility location analysis is to select a site with the lowest total cost.
Which of the following are hidden costs that should be included in the analysis?
Multiple Choice

•
Becoming less responsive to the customer
•
Supplier costs
•
Taxes
•
Construction costs
•
Product life cycle costs
Logistics is a term that refers to the management functions that support the complete cycle of
material flow, from the purchase and internal control of production materials; to the planning and
controlof work-in-process; to the purchasing, shipping, and distribution of the finished product.
Capability sourcing refers to outsourcing the functions that a company does best to trusted key
partners.

OPS 571 Guide to Process Selection & Design

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