Download Exam 1 - Operations and Supply Chain Management | MNGT 331 and more Exams Introduction to Business Management in PDF only on Docsity!
Question 1 Known for his development of assembly line implementations, ______ was essentially the leader in developing what we now refer to as product focused manufacturing. Selected Answer: Henry Ford Question 2 One of the characteristics that distinguish a manufactured product from a service product is which of the following? Selected Answer: The product in a service setting is generally less tangible than in manufacturing settings Question 3 The management of the processes and flows (both materials and information} through the organizations necessary to bring products and services from inception to the end customer is referred to as: Selected Answer: Supply chain management Question 4 The transformation process for operations management encompasses the conversion or value adding process of the organization. Which of the following is not one of the common transformation processes? Selected Answer: Exchange Question 5 Known as the Father of Scientific Management, ______ changed the way we approach operations through his methods for improving the way work was done. Selected Answer: W. Edwards Deming Question 6 Which of the following is true concerning productivity comparisons? Selected Answer: In each year since 1980 when we started experiencing a service economy the productivity rate for services has increased and the productivity rate for manufacturing has decreased Question 7 The situation that occurs when production quantities have surpassed the capacity that a facility was designed to produce, resulting in increasing cost per unit as additional units are produced is called: Selected Answer: Economies of scale Question 8 Capacity planning involving acquisition or disposal of fixed assets such as buildings, equipment or facilities is considered as which one of the following planning horizons? Selected Answer: Long-range Question 9
Capacity planning involving increases or decreases in overtime or spending spare time practicing setups would suggest which of the following planning horizons? Selected Answer: Short range Question 10 Which of the following is true when calculating productivity? Selected Answer: No matter what you are evaluating, productivity is always output/input Question 11 You just evaluated your assessment of a decision scenario and determined that you were a definite risk taker. Which of the following decision criteria would best fulfill your objectives? Selected Answer: Maxi-max Question 12 A fundamental rethinking and radical redesign of business processes, designed to achieve dramatical improvements in critical, contemporary measures of performance is referred to as: Selected Answer: Business process reengineering Question 13 Capacity planning involving hiring, layoffs, some new tooling, minor equipment purchases and subcontracting is considered as which one of the following planning horizons? Selected Answer: Intermediate range Question 14 The manufacturing process grid allows us to make logical connections between types of production processes and finished goods inventory policies. Which of the following is a good fit for matching the alternatives? Selected Answer: Make to order fits best with process focused operations Question 15 An assumption of learning curve theory is which of the following? Selected Answer: Unit time will decrease at an increasing rate Question 16 One of the important steps in developing operations strategies is: Selected Answer: Focus on using order winners and qualifiers to link the marketing strategy and the operations strategy Question 17 When evaluating capacity utilization we should consider that:
Selected Answer: Mass Customization Question 26 MUNK industries must now decide what to do since they have sold off their New Ulm facility. They are looking at alternatives to replace this capacity. They are currently considering three options. The first is building a small facility that it could build at a cost of $263,225. If demand for their new healthy snack bars is low, MUNK expects to receive $545,098 in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, MUNK expects $516,940 in discounted revenues from this small facility. The second option is to build a large facility at a cost of $450,478. With the larger facility MUNK expects to make $667,232 in discounted revenues if demand is low. If demand is high, they expect to make $908,519 in discounted revenues from the large facility. Finally, the third option under consideration would be to incorporate the production of these healthy snack bars into other existing facilities. There would be no up front cost with this alternative. If demand is low, the discounted return they expect would be $78,551 and if demand is high, the discounted revenue is expected to be $173,189. Given that MUNK has estimated the probability of low demand at 0.55, construct a decision tree to help them make a decision. Remember, if demand is not low, the only other alternative is that demand is high. Report the expected value of building the small facility as your answer. Selected Answer:
Question 27 MUNK industries must now decide what to do since they have sold off their New Ulm facility. They are looking at alternatives to replace this capacity. They are currently considering three options. The first is building a small facility that it could build at a cost of $365,741. If demand for their new healthy snack bars is low, MUNK expects to receive $664,244 in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, MUNK expects $542,741 in discounted revenues from this small facility. The second option is to build a large facility at a cost of $573,483. With the larger facility MUNK expects to make $454,806 in discounted revenues if demand is low. If demand is high, they expect to make $813,436 in discounted revenues from the large facility. Finally, the third option under consideration would be to incorporate the production of these healthy snack bars into other existing facilities. There would be no up front cost with this alternative. If demand is low, the discounted return they expect would be $53,492 and if demand is high, the discounted revenue is expected to be $162,650. Given that MUNK has estimated the probability of low demand at 0.56, construct a decision tree to help them make a decision. Remember, if demand is not low, the only other alternative is that demand is high. Report the expected value of incorporating production into existing facilities as your answer. Selected Answer:
Question 28 Now that Lucy has taken full control of the New Ulm facility she is working on other ways to increase economic development in the community. She has purchased an option on property near the current facility and is considering a full purchase. The cost of purchacing the option is a sunk cost and will not be incorporated into any future decision making. She does, however, still have to pay for the property. As Lucy sees it, there are three alternatives. She can develop an Office/Retail Center, She can develop an Industrial Park, both of which will allow others to increase employment opportunities in the community, or she can build additional facilities that will allow her to move into a wider range of pudding alternatives than just tapioca. She has put together the following information in setting up her analysis: Alternative Cost to Purchase Property^ Cost to develop alternative^ Probability of High Success^ Payoff of High Success^ Payoff of low success Develop Office/Retail Center $101,769 $212,849 0.12 $421,735 $256, Develop Industrial Park Same $293,967 0.36 $572,046 $316, Expand Pudding Facilities Same $390,159 0.55 $550,205 $464, Lucy has asked you to develop a decision tree framework and report the value of the Develop Industrial Park alternative. Selected Answer:
Question 29 Stu has figured out that if he can build ice fishing huts using MUNK workers part time, then he can also build other items to sell as accessories for the huts. One accessory is a name plate for the front door. Given that it takes 34 minutes to produce a name plate for the
first time and a learning rate of 80 percent, how long would it take to product the 256th name plate? Selected Answer:
Question 30 Before Lucy rehired Stu he had to find a way to pay his bills. One venture was to build huts for ice fishing. It took Stu 147 hours to build his first hut and 115 hours to build his second hut. He has orders for a total of 32 huts (counting the two he has already completed. How long should it take for Stu to build his 32nd hut? Selected Answer:
Question 31 Stu has offerred 7 of his former MUNK industries maintenance employees a combined total of $1,249 per hut to help build ice fishing huts on nights and weekends. Back at the factory they learned at a rate of 86 percent and they expect that to hold for the ice fishing huts. The first hut took a combined 91 hours to build. Stu has promised them the opportunity to build 29 huts. If they are correct about their learning rate and the total amount paid per hut stays constant, what will be their hourly pay rate for the last hut built? Selected Answer:
Question 32 Blanche has been making sales calls because she is the top expert on tapioca pudding. Lucy is concerned because Blanche tends to chat extensively with each potential customer. As a result, she is attempting to establish goals for the time taken to secure a sale. Her challenge to Blanche is to complete the first call under her new procedures within 54 minutes. This must then be improved according to a learning rate of 79 percent. How long should it take Blanche to complete call 24? Improvement Curves: Table of Unit Values -- Unit Improvement Factor Selected Answer:
Question 33 MUNK Industries is evaluating all of their facilities as part of a strategic planning initiative. Numbers for New Ulm facility are as follows: Sales (units) = 578,238; Labor (hours) = 82,562; Average hourly pay rate ($/hour) = 21; Raw Materials = $137,364; and capital equipment (hours) = 132,664; capital equipment overhead rate ($/hour) = 44. Calculate the partial capital equipment hour productivity to unit sales for the New Ulm facility. Round the final answer only. Selected Answer:
Question 34 You have assigned Stu the responsibility for evaluating packaging equipment alternatives for the new tapioca pudding line. Stu has collected data from a number of facilities and is evaluating their productivity. One type of packaging machine looks promising so Stu is completing a more thorough analysis. He is looking at the average productivity level for the most recent four months. Cases of product packaged for these four months were (stated oldest to most recent) 45,247, 42,640, 46,392, and 40,666. During these same months they have used 7 packaging machines to fill individual items and consolidate them into cases. They have used each of these machines (stated oldest to most recent) for 376, 359, 273, and 326 hours per month. Plant overhead costs during these months (oldest to most recent) were 1,789, 1,885, 1,659, and 1,407. Labor costs (oldest to most recent) were 23,172, 27,727, 17,785, and 22,108. What was their average monthly packaging machine productivity stated as cases packed per machine hour? Round your final answer only. Selected Answer:
Question 35 MUNK industries New Ulm facility produced and sold 876,186 cases of energy bars during the most recent quarter, which they sold for $15.05 each. Producing each case of these energy bars required 0.06 hours of labor and they pay workers $16.07 per hour. Production also required $1.62 in material costs per unit and $93,946 in energy costs. What was the labor cost productivity as related to total revenue for the energy bars for this quarter? Round your final answer only. Selected Answer:
