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OM |! 300 |! Final |! Exam |! with |! precise |!
detailed |! solutions
Production |! - |! Correct |! answer |! ✔the |! creation |! of |! goods |! and |! services; |! measure |! of |! output |! only, |! not |! efficiency Essential |! functions |! of |! production |! - |! Correct |! answer |! ✔Marketing, |! finance/accounting, |! production/operations 10 |! strategic |! OM |! decisions |! - |! Correct |! answer |! ✔Base: |! people, |! product |! process Place: |! location, |! layout Stuff: |! quality |! management, |! inventory |! management, |! supply |! chain |! management Face: |! scheduling, |! maintenance Productivity |! - |! Correct |! answer |! ✔-the |! ratio |! of |! outputs |! (goods |! and |! services) |! divided |! by |! the |! inputs |! (resources |! such |! as |! labor |! and |! capital) |! -measure |! of |! process |! improvement |! -only |! through |! productivity |! increases |! can |! our |! standard |! of |! living |! increase
Single |! factor |! productivity |! - |! Correct |! answer |! ✔one |! resource Improvement |! is |! difficult |! because |! - |! Correct |! answer |! ✔i. |! Its |! labor |! intensive ii. |! Frequently |! focused |! on |! unique |! individual |! attributes |! or |! desires iii. |! Often |! an |! intellectual |! task |! performed |! by |! professionals iv. |! Often |! difficult |! to |! mechanize |! and |! automate v. |! Often |! difficult |! to |! evaluate |! for |! quality Multi-factor |! productivity |! - |! Correct |! answer |! ✔multiple |! resource |! inputs Strategies |! for |! competitive |! advantage |! - |! Correct |! answer |! ✔1. |! Differentiation |! (better, |! or |! at |! least |! different); |! dependability, |! quality, |! agility/flexibility
- |! Cost |! leadership |! (cheaper)
- |! Response |! (more |! responsive) Product |! life |! cycle |! - |! Correct |! answer |! ✔Introduction, |! growth, |! maturity, |! decline Introduction |! phase |! of |! product |! life |! cycle |! - |! Correct |! answer |! ✔-Best |! period |! to |! increase |! investment |! share
-fewer |! rapid |! product |! changes, |! more |! minor |! changes -optimum |! capacity |! -increasing |! stability |! of |! process -long |! production |! runs -product |! improvement |! and |! cost |! cutting Decline |! phase |! of |! production |! cycle |! - |! Correct |! answer |! ✔-cost |! control |! critical -little |! product |! differentiation -cost |! minimization -overcapacity |! in |! the |! industry |! -prune |! line |! to |! eliminate |! items |! not |! returning |! good |! margin -reduce |! capacity Outsourcing |! - |! Correct |! answer |! ✔Transferring |! activities |! that |! have |! traditionally |! been |! internal |! to |! external |! suppliers Outsourcing |! is |! accelerating |! due |! to... |! - |! Correct |! answer |! ✔i. |! Increased |! technological |! expertise ii. |! More |! reliable |! and |! cheaper |! transportation iii. |! Rapid |! development |! and |! deployment |! of |! advancements |! in |! telecommunications |! and |! computers
Subcontracting |! - |! Correct |! answer |! ✔contract |! manufacturing Outsourced |! activities |! - |! Correct |! answer |! ✔legal |! services, |! IT |! services, |! travel |! services, |! payroll, |! production, |! surgery Theory |! of |! competitive |! advantage |! - |! Correct |! answer |! ✔-if |! an |! external |! provider |! can |! perform |! activities |! more |! productively |! than |! the |! purchasing |! firm, |! then |! the |! external |! provider |! should |! do |! the |! work -purchasing |! firm |! focuses |! on |! core |! competencies |! -drives |! outsourcing Rating |! outsourcing |! providers |! - |! Correct |! answer |! ✔-Insufficient |! analysis: |! most |! common |! reason |! for |! failure -Factor-rating |! method Core |! competencies |! - |! Correct |! answer |! ✔1. |! A |! company's |! set |! of |! skills |! and |! experiences |! rather |! than |! a |! financial |! asset
- |! Something |! a |! company |! does |! really |! well
- |! Core |! competencies |! should |! never |! be |! outsourced Critical |! path |! - |! Correct |! answer |! ✔-longest |! time |! path |! through |! the |! network |! -shortest |! time |! in |! which |! the |! project |! can |! be |! completed
|! the |! shortened |! activity |! durations |! will |! enable |! us |! to |! finish |! the |! project |! by |! the |! due |! date, |! the |! total |! cost |! of |! crashing |! is |! as |! small |! as |! possible 3 |! forecasting |! time |! horizons |! - |! Correct |! answer |! ✔short, |! medium, |! long |! range Forecasting |! - |! Correct |! answer |! ✔the |! process |! of |! predicting |! a |! future |! event Short |! range |! forecast |! - |! Correct |! answer |! ✔i. |! Up |! to |! 1 |! year, |! generally |! less |! than |! 3 |! months ii. |! Purchasing, |! job |! scheduling, |! workforce |! levels, |! job |! assignments, |! production |! levels Medium |! range |! forecast |! - |! Correct |! answer |! ✔i. |! 3 |! months |! to |! 3 |! years ii. |! Sales |! and |! production |! planning, |! budgeting Long |! range |! forecast |! - |! Correct |! answer |! ✔i. |! 3+ |! years ii. |! New |! product |! planning, |! facility |! location, |! research |! and |! development Medium |! and |! long |! range |! deal |! with |! more |! comprehensive |! issues |! and |! support |! management |! decisions |! regarding |! planning |! and |! products, |! plants, |! and |! processes |! - |! Correct |! answer |! ✔true
Short |! range |! usually |! employs |! different |! methodologies |! than |! longer |! term |! forecasting |! - |! Correct |! answer |! ✔true Short |! range |! forecasts |! tend |! to |! be |! more |! accurate |! than |! longer |! term |! forecasts |! - |! Correct |! answer |! ✔true 3 |! types |! of |! forecasts |! - |! Correct |! answer |! ✔economic, |! technological, |! demand Economics |! forecasts |! - |! Correct |! answer |! ✔address |! business |! cycle- |! inflation |! rate, |! money |! supply, |! housing |! starts, |! etc. Technological |! forecasts |! - |! Correct |! answer |! ✔predict |! rate |! of |! technological |! progress, |! impacts |! development |! of |! new |! products Demand |! forecasts |! - |! Correct |! answer |! ✔predict |! sales |! of |! existing |! products |! and |! services Qualitative |! methods |! of |! forecasting |! - |! Correct |! answer |! ✔jury |! of |! executive |! opinion, |! Delphi |! method, |! sales |! force |! composite, |! consumer |! market |! survey
Stakeholders |! - |! Correct |! answer |! ✔those |! with |! a |! vested |! interest |! in |! an |! organization, |! all |! stakeholders |! must |! be |! considered |! in |! quality |! management Total |! Quality |! Management |! (TQM) |! - |! Correct |! answer |! ✔a. |! Encompasses |! the |! entire |! organization |! from |! supplier |! to |! customer b. |! Stresses |! a |! commitment |! by |! management |! to |! have |! a |! continuing |! companywide |! drive |! toward |! excellence |! in |! all |! aspects |! of |! products |! and |! services |! that |! are |! important |! to |! the |! customer c. |! Service |! quality |! is |! more |! difficult |! to |! measure |! than |! the |! quality |! of |! goods d. |! Service |! quality |! depends |! on: |! intangible |! differences |! between |! products |! and |! intangible |! expectations |! customers |! have |! of |! those |! products Six |! Sigma |! - |! Correct |! answer |! ✔a. |! Statistical |! definition |! of |! a |! process |! that |! is |! 99.9997% |! capable, |! 3.4 |! defects |! per |! million |! opportunities |! (DPMO) b. |! A |! program |! designed |! to |! reduce |! defects, |! lower |! costs, |! save |! time, |! and |! improve |! customer |! satisfaction Six |! Sigma... |! - |! Correct |! answer |! ✔1. |! Defines |! the |! project's |! purpose, |! scope, |! and |! outputs, |! then |! identifies |! the |! required |! process |! information |! keeping |! in |! mind |! the |! customer's |! definition |! of |! quality
- |! Measures |! the |! process |! and |! collects |! data
- |! Analyzes |! the |! data |! ensuring |! repeatability |! and |! reproducibility
- |! Improves |! by |! modifying |! or |! redesigning |! existing |! processes |! and |! procedures
- |! Controls |! the |! new |! process |! to |! make |! sure |! performance |! levels |! are |! maintained Six |! Sigma |! Program |! - |! Correct |! answer |! ✔i. |! Emphasize |! defects |! per |! million |! opportunities |! as |! a |! standard |! metric ii. |! Provide |! extensive |! training iii. |! Create |! qualified |! process |! improvement |! experts iv. |! Set |! stretch |! objectives Implementing |! Six |! Sigma |! - |! Correct |! answer |! ✔i. |! Big |! commitment, |! especially |! from |! top |! managers ii. |! Leaders |! have |! to: |! formulate |! the |! plan, |! communicate |! their |! buy-in |! and |! the |! firm's |! objectives, |! and |! take |! a |! visible |! role |! in |! setting |! the |! example |! for |! others iii. |! Successful |! projects |! clearly |! related |! to |! the |! strategic |! direction |! of |! an |! organization iv. |! Management |! directed, |! team |! based, |! and |! expert |! led |! approach 7 |! tools |! of |! TQM |! - |! Correct |! answer |! ✔-generating |! ideas: |! check |! sheet, |! scatter |! diagram, |! cause-and-effect |! diagram -organizing |! data: |! Pareto |! chart, |! flowchart
v. |! Product |! flows |! may |! vary |! considerably |! making |! planning |! and |! scheduling |! a |! challenge Repetitive |! focus |! - |! Correct |! answer |! ✔i. |! Facilities |! often |! organized |! as |! assembly |! lines ii. |! Characterized |! by |! modules |! with |! parts |! and |! assemblies |! made |! previously iii. |! Modules |! may |! be |! combined |! for |! many |! output |! options iv. |! Less |! flexibility |! than |! process-focused |! facilities |! but |! more |! efficient Product |! focus |! - |! Correct |! answer |! ✔i. |! Facilities |! are |! organized |! by |! product ii. |! High |! volume |! but |! low |! variety |! of |! products iii. |! Long, |! continuous |! production |! runs |! enable |! efficient |! processes iv. |! Typically |! high |! fixed |! cost |! but |! low |! variable |! cost v. |! Generally |! less |! skilled |! labor Mass |! customization |! - |! Correct |! answer |! ✔i. |! The |! rapid, |! low-cost |! production |! of |! goods |! and |! service |! to |! satisfy |! increasingly |! unique |! customer |! desires ii. |! Combines |! the |! flexibility |! of |! a |! process |! focus |! with |! the |! efficiency |! of |! a |! product |! focus iii. |! Imaginative |! product |! design
iv. |! Flexible |! process |! design v. |! Tightly |! controlled |! inventory |! management vi. |! Tight |! schedules vii. |! Responsive |! partners |! in |! the |! supply |! chain Natural |! variation |! - |! Correct |! answer |! ✔i. |! Also |! called |! common |! causes ii. |! Affect |! virtually |! all |! production |! processes iii. |! Expected |! amount |! of |! variation iv. |! Output |! measures |! follow |! a |! probability |! distribution v. |! For |! any |! distribution |! there |! is |! a |! measure |! of |! central |! tendency |! and |! dispersion vi. |! If |! the |! distribution |! of |! outputs |! falls |! within |! acceptable |! limits, |! the |! process |! is |! said |! to |! be |! "in |! control" Assignable |! variation |! - |! Correct |! answer |! ✔i. |! Also |! called |! special |! causes |! of |! variation ii. |! Variations |! that |! can |! be |! traced |! to |! a |! specific |! reason iii. |! Objective |! is |! to |! discover |! when |! assignable |! causes |! are |! present iv. |! Eliminate |! bas |! causes v. |! Incorporate |! good |! causes Attribute |! data |! - |! Correct |! answer |! ✔product |! characteristic |! evaluated |! with |! a |! discrete |! choice |! (good/bad, |! yes/no)
Many |! suppliers |! - |! Correct |! answer |! ✔i. |! Commonly |! used |! for |! commodity |! products ii. |! Purchasing |! is |! typically |! based |! on |! price iii. |! Suppliers |! compete |! with |! one |! another iv. |! Supplier |! is |! responsible |! for |! technology, |! expertise, |! forecasting, |! cost, |! quality, |! and |! delivery Few |! suppliers |! - |! Correct |! answer |! ✔i. |! Buyer |! forms |! longer-term |! relationships |! with |! fewer |! suppliers ii. |! Create |! ____ |! through |! economies |! of |! scale |! and |! learning |! curve |! improvements iii. |! Suppliers |! more |! willing |! to |! participate |! in |! JIT |! programs |! and |! contribute |! design |! and |! technological |! expertise iv. |! Cost |! of |! changing |! suppliers |! is |! huge v. |! Trade |! secrets |! and |! other |! alliances |! may |! be |! at |! risk Vertical |! integration |! - |! Correct |! answer |! ✔i. |! Developing |! the |! ability |! to |! produce |! or |! consume |! goods |! or |! services |! previously |! purchased ii. |! Integration |! may |! be |! forward, |! towards |! the |! consumer, |! or |! backward, |! towards |! suppliers iii. |! Can |! improve |! cost, |! quality, |! delivery, |! and |! inventory |! but |! requires |! capital, |! managerial |! skills, |! and |! demand iv. |! Risky |! in |! industries |! with |! rapid |! technological |! change
Joint |! ventures |! - |! Correct |! answer |! ✔i. |! Formal |! collaboration: |! enhance |! skills, |! secure |! supply, |! reduce |! costs ii. |! The |! challenge |! is |! cooperation |! without |! diluting |! brand |! or |! conceding |! competitive |! advantage Keiretsu |! networks |! - |! Correct |! answer |! ✔i. |! A |! middle |! ground |! between |! few |! suppliers |! and |! vertical |! integration ii. |! Supplier |! becomes |! part |! of |! the |! company |! coalition iii. |! Often |! provide |! financial |! support |! for |! suppliers |! through |! ownership |! or |! loans iv. |! Members |! expect |! long-term |! relationships |! and |! provide |! technical |! expertise |! and |! stable |! deliveries v. |! May |! extend |! through |! several |! levels |! of |! the |! supply |! chain vi. |! South |! Korean |! chaebols |! are |! similar |! but |! more |! family-controlled |! networks Virtual |! companies |! - |! Correct |! answer |! ✔i. |! Rely |! on |! a |! variety |! of |! supplier |! relationships |! to |! provide |! services |! on |! demand ii. |! Fluid |! organizational |! boundaries |! that |! allow |! the |! creation |! of |! unique |! enterprises |! to |! meet |! changing |! market |! demands iii. |! Relationships |! may |! be |! short |! or |! long |! term iv. |! Exceptionally |! lean |! performance, |! low |! capital |! investment, |! flexibility, |! and |! speed
Types |! of |! inventories |! - |! Correct |! answer |! ✔raw |! material, |! WIP, |! MRO, |! finished |! goods Raw |! material |! - |! Correct |! answer |! ✔purchased |! but |! not |! processed Work |! in |! progress |! (WIP) |! - |! Correct |! answer |! ✔undergone |! some |! change |! but |! not |! completed, |! a |! function |! of |! cycle |! time |! for |! a |! product Maintenance/repair/operating |! (MRO) |! - |! Correct |! answer |! ✔necessary |! to |! keep |! machinery |! and |! processes |! productive Finished |! goods |! - |! Correct |! answer |! ✔completed |! product |! awaiting |! shipment Just |! in |! time |! (JIT) |! - |! Correct |! answer |! ✔i. |! "Pull" |! system |! of |! production |! scheduling |! including |! supply |! management ii. |! Production |! only |! when |! signaled iii. |! Allows |! reduced |! inventory |! levels iv. |! Inventory |! costs |! money |! and |! hides |! process |! and |! material |! problems v. |! Encourages |! improves |! process |! and |! product |! quality vi. |! Cuts |! cost |! of |! quality, |! improves |! quality
vii. |! Philosophy |! of |! continuous |! and |! forced |! problem |! solving |! via |! focus |! on |! throughput |! and |! reduced |! inventory viii. |! Requires |! meaningful |! buyer-supplier |! relationship Lean |! operations |! - |! Correct |! answer |! ✔i. |! Good |! production |! systems |! require |! that |! managers |! address |! three |! issues |! that |! are |! pervasive |! and |! fundamental |! to |! OM
- |! Eliminate |! waste
- |! Remove |! variability
- |! Improve |! throughput ii. |! Supply |! customer |! with |! exactly |! what |! the |! customer |! wants |! when |! the |! customer |! wants |! it, |! without |! waste, |! through |! continuous |! improvement Toyota |! Production |! System |! (TPS) |! - |! Correct |! answer |! ✔i. |! Emphasizes |! continuous |! improvement, |! respect |! for |! people, |! and |! standard |! work |! practices ii. |! Continuous |! improvement: |! build |! an |! organizational |! culture |! and |! value |! system |! that |! stresses |! improvement |! of |! all |! processes, |! Kaizen; |! part |! of |! everyone's |! job iii. |! Respect |! for |! people: |! people |! are |! treated |! as |! knowledge |! workers, |! engage |! mental |! and |! physical |! capabilities, |! empower |! employees Standard |! work |! practice |! for |! TPS |! - |! Correct |! answer |! ✔1. |! Work |! shall |! be |! completely |! specified |! as |! to |! content, |! sequence, |! timing, |! and |! outcome
