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OM |! 300 |! Midterm |! Exam |! 1 |! with |!
precise |! detailed |! answers
- |! Which |! of |! the |! following |! are |! the |! primary |! functions |! of |! all |! organizations? |! |! A) |! operations, |! marketing, |! and |! human |! resources B) |! marketing, |! human |! resources, |! and |! finance/accounting C) |! sales, |! quality |! control, |! and |! operations D) |! marketing, |! operations, |! and |! finance/accounting E) |! research |! and |! development, |! finance/accounting, |! and |! purchasing |! - |! Correct |! answer |! ✔D) |! marketing, |! operations, |! and |! finance/accounting
- |! Which |! of |! the |! following |! would |! not |! be |! an |! operations |! function |! in |! a |! fast-food |! restaurant? A) |! advertising |! and |! promotion B) |! designing |! the |! layout |! of |! the |! facility C) |! maintaining |! equipment D) |! making |! hamburgers |! and |! fries
E) |! purchasing |! ingredients |! - |! Correct |! answer |! ✔A) |! advertising |! and |! promotion
- |! Reasons |! to |! study |! Operations |! Management |! include |! learning |! about A) |! why |! people |! organize |! themselves |! for |! productive |! enterprise B) |! how |! goods |! and |! services |! are |! produced C) |! what |! operations |! managers |! do D) |! a |! costly |! part |! of |! the |! enterprise E) |! all |! of |! the |! above |! - |! Correct |! answer |! ✔E) |! all |! of |! the |! above
- |! The |! Ten |! Critical |! Decisions |! of |! Operations |! Management |! include A) |! layout |! strategy B) |! maintenance C) |! process |! and |! capacity |! design D) |! managing |! quality E) |! all |! of |! the |! above |! - |! Correct |! answer |! ✔E) |! all |! of |! the |! above
- |! Which |! is |! not |! true |! regarding |! differences |! between |! goods |! and |! services?
B) |! 40 |! valves/hr C) |! 80 |! valves/hr D) |! 200 |! valves/hr E) |! 1600 |! valves/hr |! - |! Correct |! answer |! ✔D) |! 200 |! valves/hr
- |! Gibson |! Valves |! produces |! cast |! bronze |! valves |! on |! an |! assembly |! line, |! currently |! producing |! 1600 |! valves |! each |! 8-hour |! shift. |! If |! the |! productivity |! is |! increased |! by |! 10%, |! it |! would |! then |! be A) |! 180 |! valves/hr B) |! 200 |! valves/hr C) |! 220 |! valves/hr D) |! 880 |! valves/hr E) |! 1760 |! valves/hr |! - |! Correct |! answer |! ✔C) |! 220 |! valves/hr
- |! Which |! of |! the |! following |! nets |! the |! largest |! productivity |! improvement? A) |! increase |! output |! 15% B) |! decrease |! input |! 15% C) |! increase |! both |! output |! and |! input |! by |! 5% D) |! increase |! output |! 10%, |! decrease |! input |! 3%
E) |! decrease |! input |! 10%, |! increase |! output |! 3% |! - |! Correct |! answer |! ✔B) |! decrease |! input |! 15%
- |! Which |! of |! the |! following |! does |! not |! represent |! reasons |! for |! globalizing |! operations? A) |! reduce |! costs B) |! improve |! supply |! chain C) |! reduce |! responsiveness D) |! attract |! and |! retain |! global |! talent E) |! expand |! a |! product's |! life |! cycle |! - |! Correct |! answer |! ✔C) |! reduce |! responsiveness
- |! Which |! of |! the |! international |! operations |! strategies |! involves |! high |! cost |! reductions |! and |! high |! local |! responsiveness? A) |! international |! strategy B) |! global |! strategy C) |! transnational |! strategy D) |! multidomestic |! strategy E) |! none |! of |! the |! above |! - |! Correct |! answer |! ✔C) |! transnational |! strategy
B) |! broad |! statement |! of |! purpose C) |! simulation |! used |! to |! test |! various |! product |! line |! options D) |! plan |! for |! cost |! reduction E) |! action |! plan |! to |! achieve |! the |! mission |! - |! Correct |! answer |! ✔E) |! action |! plan |! to |! achieve |! the |! mission
- |! A |! product's |! life |! cycle |! is |! divided |! into |! four |! stages, |! which |! are A) |! introduction, |! growth, |! saturation, |! and |! maturity B) |! introduction, |! growth, |! stability, |! and |! decline C) |! introduction, |! maturity, |! saturation, |! and |! decline D) |! introduction, |! growth, |! maturity, |! and |! decline E) |! none |! of |! the |! above |! - |! Correct |! answer |! ✔D) |! introduction, |! growth, |! maturity, |! and |! decline
- |! When |! should |! product |! strategy |! focus |! on |! forecasting |! capacity |! requirements? A) |! at |! the |! introduction |! stage |! of |! the |! product |! life |! cycle B) |! at |! the |! growth |! stage |! of |! the |! product |! life |! cycle C) |! at |! the |! maturity |! stage |! of |! the |! product |! life |! cycle D) |! at |! the |! decline |! stage |! of |! the |! product |! life |! cycle
E) |! none |! of |! the |! above |! - |! Correct |! answer |! ✔B) |! at |! the |! growth |! stage |! of |! the |! product |! life |! cycle
- |! Quality |! function |! deployment |! (QFD) A) |! determines |! what |! will |! satisfy |! the |! customer B) |! translates |! customer |! desires |! into |! the |! target |! design C) |! is |! used |! early |! in |! the |! design |! process D) |! is |! used |! to |! determine |! where |! to |! deploy |! quality |! efforts E) |! all |! of |! the |! above |! - |! Correct |! answer |! ✔E) |! all |! of |! the |! above
- |! Three |! broad |! categories |! of |! definitions |! of |! quality |! are A) |! product |! quality, |! service |! quality, |! and |! organizational |! quality B) |! user-based, |! manufacturing-based, |! and |! product-based C) |! internal, |! external, |! and |! prevention D) |! low-cost, |! response, |! and |! differentiation E) |! Pareto, |! Shewhart, |! and |! Deming |! - |! Correct |! answer |! ✔B) |! user-based, |! manufacturing-based, |! and |! product-based
- |! "Quality |! is |! defined |! by |! the |! customer" |! is
D) |! The |! term |! has |! two |! distinct |! meanings |! --- |! one |! is |! statistical; |! the |! other |! is |! a |! comprehensive |! quality |! system. E)The |! Six |! Sigma |! program |! was |! developed |! by |! Toyota |! in |! the |! 1970's. |! - |! Correct |! answer |! ✔D) |! The |! term |! has |! two |! distinct |! meanings |! --- |! one |! is |! statistical; |! the |! other |! is |! a |! comprehensive |! quality |! system.
- |! The |! purpose |! of |! an |! x-bar |! chart |! is |! to |! determine |! whether |! there |! has |! been |! a: |! A) |! Change |! in |! the |! percent |! defective |! in |! a |! sample. B) |! Change |! in |! the |! central |! tendency |! of |! the |! process |! output. C) |! Change |! in |! the |! number |! of |! defects |! in |! a |! sample. D) |! Change |! in |! the |! dispersion |! of |! the |! process |! output. |! - |! Correct |! answer |! ✔B) |! Change |! in |! the |! central |! tendency |! of |! the |! process |! output.
- |! A |! product-focused |! process |! is |! commonly |! used |! to |! produce A) |! high-volume, |! high-variety |! products B) |! low-volume, |! high-variety |! products C) |! high-volume, |! low-variety |! products D) |! low-variety |! products |! at |! either |! high- |! or |! low-volume E) |! high-volume |! products |! of |! either |! high- |! or |! low-variety |! - |! Correct |! answer |! ✔C) |! high-volume, |! low-variety |! products
- |! Which |! of |! the |! following |! phrases |! best |! describes |! product |! focus? A) |! low |! volume, |! high |! variety B) |! finished |! goods |! are |! usually |! made |! to |! order C) |! processes |! are |! designed |! to |! perform |! a |! wide |! variety |! of |! activities D) |! high |! fixed |! costs, |! low |! variable |! costs E) |! raw |! material |! inventories |! are |! low |! relative |! to |! the |! value |! of |! the |! product |! - |! Correct |! answer |! ✔D) |! high |! fixed |! costs, |! low |! variable |! costs
- |! Arnold |! Palmer |! Hospital |! uses |! which |! focus? A) |! process B) |! repetitive C) |! product D) |! mass |! customization E) |! A |! and |! D |! - |! Correct |! answer |! ✔A) |! process
- |! Frito-Lay |! is |! to |! __________ |! focus |! as |! Harley |! Davidson |! is |! to |! __________ |! focus. A) |! pocess, |! repetitive
D) |! $5,
E) |! $9,500 |! - |! Correct |! answer |! ✔A) |! 50 |! units
- |! The |! phases |! of |! project |! management |! are A) |! planning, |! scheduling, |! and |! controlling B) |! planning, |! programming, |! and |! budgeting C) |! planning, |! organizing, |! staffing, |! leading, |! and |! controlling D) |! different |! for |! manufacturing |! projects |! than |! for |! service |! projects E) |! GANTT, |! CPM, |! and |! PERT |! - |! Correct |! answer |! ✔A) |! planning, |! scheduling, |! and |! controlling
- |! MacDonald |! Products, |! Inc., |! of |! Clarkson, |! NY, |! has |! the |! option |! of a) |! Proceeding |! immediately |! with |! production |! of |! a |! new |! top-of-the-line |! stereo |! TV |! that |! has |! just |! completed |! prototype |! testing |! or b) |! Having |! the |! value |! analysis |! team |! complete |! a |! study. If |! Lusk, |! VP |! for |! operations, |! proceeds |! with |! the |! existing |! prototype |! (option |! a), |! the |! firm |! can |! expect |! sales |! to |! be |! 85,000 |! units |! at |! $620 |! each, |! with |! a |! probability |! of |! 0.43 |! and |! a |! 0.57 |! probability |! of |! 60,000 |! at |! $620. |! If, |! however, |! he |! uses |! the |! value |! analysis |! team |! (option |! b), |! the |! firm |! expects |! sales |! of |! 80,000 |! units |! at |! $710, |! with |! a |! probability |! of |! 0.77 |! and |!
a |! 0.23 |! probability |! of |! 70,000 |! units |! at |! $710. |! Value |! engineering, |! at |! a |! cost |! of |! $120,000, |! is |! only |! used |! in |! option |! b. |! I. |! The |! expected |! monetary |! value |! for |! option |! a) |! is? II. |! The |! expected |! monetary |! value |! for |! option |! b) |! is? III. |! Which |! option |! has |! the |! highest |! expected |! monetary |! value? |! Show |! the |! decision |! tree. |! - |! Correct |! answer |! ✔i. |! (Option |! a) 85,000 |! x |! $620= |! $52,700, 60,000 |! x |! $620= |! $37,200, (52,700,000 |! x |! 0.43) |! + |! (37,200,000 |! x |! 0.57) 22,661,000 |! + |! 21,204,000= |! $43,865,000 |! emv ii. |! (Option |! b) 80,000 |! x |! $710= |! $56,800, 70,000 |! x |! $710= |! $49,700, (56,800,000 |! x |! 0.77) |! + |! (49,700,000 |! x |! 0.23) 43,736,000 |! + |! 11,431,000= |! 55,167,000 |! $55,167,000 |! - |! $120,000= |! $55,047,000 |! emv iii. From |! the |! above, |! we |! see |! that |! the |! second |! option |! will |! have |! the |! highest |! EMV
ii. |! LCL= |! 60.75 |! - |! (0.419 |! x |! 1.54)=60. b. |! The |! control |! limit |! for |! the |! 3-sigma |! R-chart |! are: i. |! UCLr=1.924 |! x |! 1.54= |! 2. ii. |! LCLr=0.076 |! x |! 1.54= |! 0.
- |! Meena |! Chavan |! Corp.'s |! computer |! chip |! production |! process |! yields |! DRAM |! chips |! with |! an |! average |! life |! of |! 1,800 |! hours |! and |! st.d |! = |! 100 |! hours. |! The |! tolerance |! upper |! and |! lower |! specification |! limits |! are |! 2,400 |! hours |! and |! 1,600 |! hours, |! respectively. |! Based |! on |! the |! given |! information, |! the |! process |! capability |! ratio, |! Cp= |! ____________ |! (round |! your |! response |! to |! two |! decimal |! places). Based |! on |! the |! process |! capability |! ratio |! (Cp) |! for |! the |! given |! information, |! one |! can |! say |! that |! the |! process |! is |! ____________ |! ( |! capable/ |! incapable) |! of |! producing |! the |! chips |! to |! design |! specifications. For |! the |! given |! information, |! the |! process |! capability |! index |! (Cpk) |! = |! ____________ |! (round |! your |! response |! to |! two |! decimal |! places). Based |! on |! the |! process |! capability |! ratio |! (Cpk) |! for |! the |! given |! information, |! one |! can |! say |! that |! the |! process |! is |! __________________ |! ( |! meet/ |! does |! not |!
meet) |! the |! specification. |! - |! Correct |! answer |! ✔i. |! Cp=[(USL-LSL)/6 |! x |! standard |! deviation] Cp=[(2,400-1,600)/6 |! x |! 100]=1. ii. |! Cp |! is |! greater |! than |! one, |! then |! it |! means |! that |! the |! engineering |! tolerance |! is |! greater |! than |! process |! spread |! so |! the |! process |! has |! the |! potential |! to |! be |! capable iii. |! Cpk=[(USL-mean)/3 |! x |! standard |! deviation), |! (mean-LSL)/3 |! x |! standard |! deviation) Cpk=[(2,400-1,800)/3 |! x |! 100)/3 |! x |! 100), |! (1,800-1,600)/3 |! x |! 100)=(2, |! 0.67) iv. |! Process |! capability |! index |! ( |! Cpk) |! is |! the |! measure |! of |! process |! capability. |! It |! shows |! how |! closely |! a |! process |! is |! able |! to |! produce |! the |! output |! of |! its |! overall |! specifications. Larger |! the |! Cpk |! is |! better. |! The |! larger |! Cpk |! is, |! the |! less |! likely |! it |! is |! that |! any |! item |! will |! be |! outside |! the |! specification |! limits. |! It |! generally |! wants |! a |! Cpk |! of |! at |! least |! 1.33 |! or |! higher |! to |! satisfy |! most |! customers. |! In |! given |! case, |! it |! is |! 0.667.
- |! Brandon's |! computer |! shop |! is |! considering |! two |! different |! configuration |! options. |! The |! first |! one |! is |! to |! have |! each |! computer |! built |! by |! the |! sales |! associates |! when |! they |! have |! free |! time. |! The |! second |! option |! is |! to |! hire |! a |! dedicated |! assembly |! technician. |! Option |! A |! has |! variable |!
c. |! What |! is |! project |! completion |! time? |! - |! Correct |! answer |! ✔A. |! Draw |! the |! network |! diagram. |! a |! c |! e |! (8)----(7)----(4) |! / |! \ |!
start- |! \ |! end |! \ |! \ |! / |! b-----d------f |! |! (3) |! (3) |! (6) b. |! Calculate |! the |! ES, |! EF, |! LS, |! LF, |! and |! Slack |! for |! each |! activity. -Earliest |! start |! time |! (ES)=earliest |! state |! time |! of |! activity -Earliest |! finish |! time |! (EF)= |! (earliest |! start |! time |! of |! activity) |! - |! (expected |! time) -Latest |! start |! time |! (LS)= |! (Latest |! finish |! time |! of |! activity) |! - |! (expected |! time |! of |! activity) -Latest |! finish |! time |! (LF)= |! (Latest |! finish |! time |! of |! activity) |! - |! (Expected |! time |! of |! activity) -Slack= |! (Latest |! start |! time) |! - |! (Earliest |! start |! time) activity |! ES |! EF |! LS |! LF |! Slack |! A |! 0 |! 8 |! 0 |! 8 |! 0 |! B |! 0 |! 3 |! 7 |! 10 |! 7
|! C |! 8 |! 15 |! 8 |! 15 |! 0
|! D |! 8 |! 11 |! 10 |! 13 |! 2
|! E |! 15 |! 19 |! 15 |! 19 |! 0
|! F |! 11 |! 17 |! 13 |! 19 |! 2
c. |! What |! is |! project |! completion |! time? The |! activities |! which |! form |! the |! critical |! path |! are |! called |! critical |! activities. |! Critical |! activities |! which |! have |! no |! slack |! or |! zero |! slack |! are |! called |! activities. |! The |! critical |! path |! of |! project |! is |! A-C-E. A(8-0) |! + |! C(15-8) |! + |! E(19-15)=8 |! + |! 7 |! + |! 4=19 |! weeks The |! Dulac |! Box |! plant |! produces |! wooden |! packing |! boxes |! to |! be |! used |! in |! the |! local |! seafood |! industry. |! Current |! operations |! allow |! the |! company |! to |! make |! 500 |! boxes |! per |! day, |! in |! two |! 8-hour |! shifts |! (250 |! boxes |! per |! shift). |! The |! company |! has |! introduced |! some |! moderate |! changes |! in |! equipment, |! and |! conducted |! appropriate |! job |! training, |! so |! that |! production |! levels |! have |! risen |! to |! 300 |! boxes |! per |! shift. |! Labor |! costs |! average |! $10 |! per |! hour |! for |! each |! of |! the |! 5 |! full-time |! workers |! on |! each |! shift. |! Capital |! costs |! were |! previously |! $3,000 |! per |! day, |! and |! rose |! to |! $3,200 |! per |! day |! with |! the |! equipment |! modifications. |! Energy |! costs |! were |! unchanged |! by |! the |! modifications, |! at |! $400 |! per |! day. |!
