Operation Management for MBA

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Chapter 1: Operations Strategy and Global Competitiveness

1) A purposeful collection of people, objects, and procedures for operating within an environment is known as a (n):

a) Operation

b) Sub -system

c) System

d) Sub-operation

2)  Which of the following is among the six major elements of a production system?

a) Inputs

b) Output

c) Monitoring and legislative compliance

d) Only A and B

3) Value can be added to an entity in all the following ways, EXCEPT:

a) Altering

b) Facilitating

c) Storing

d) Transporting

4) A type of output that commonly results from a production system is:

a) A product

b) A service

c) Neither A nor B

d) Both A and B

5. Which of the following is NOT considered a characteristic of a service?

a) Intangible

b) Labor-intense production

c) Quality difficult to measure

d) Delayed consumption

6) A distinction between normal goods and information/knowledge is that

a) Normal goods wear out, but information/knowledge does not

b) Information/knowledge can be given or sold to many others

c) Information/knowledge is subject to diminishing returns, but physical outputs are subject to increasing returns

d) Both A and B

Chapter 2: Process Planning and Design

7) Which of the following is NOT a basic form of transformation systems?

a) Job shop

b) Flow shop

c) Continuous transformation process

d) All of the above are basic forms of transformation systems

8) Layout analysis is usually performed for the following purpose(s):

a) Maximize operational efficiency

b) Reduce safety or health hazards

c) Minimize interference or noise between areas

d) All of the above

9) A __ is commonly used to produce highly standardized outputs in extremely large volume

a) Job shop

b) Flow shop

c) Continuons transformation processor.

d) Cellular production

10) Continuous processes typically run 24 hours a day, seven days a week because:

a) There is a need to spread their huge fixed cost over as large a volume as possible

b) Price is often the single most important factor in competing with their products

c) Facilities are a maze of pipes, conveyors, tanks, valves, vats, and bins

d) Both A and B

11) Which of the following is a major difference between continuous processes and flow shops?

a) Inputs are fixed for continuous shops and the flow of work is continuous for flow shops

b) In flow shops, there is a discrete product or service instead of products not naturally divisible

c) Degree of automation is higher for flow shops

d) Continuous shops tend to be very small while flow shops tend to be very large

12) Which of the following is NOT a well-known problem in flow shops?

a) Boredom

b) Workers may be dehumanized by manufacturing lines

c) Absenteeism

d) All of the above are well-known problems in flow shops

Chapter 3: Controlling Processes

13) Which one of the following perceptual measures corresponds to a company that is in the internally neutral stage of operational effectiveness?

a) Outside experts are called in for strategic decisions

b) Aim is to achieve competitive parity

c) A manufacturing strategy is formulated and pursued

d) Goal is to achieve competitive superiority

14) Some benefits of the balanced scorecard include:

a) It helps align departmental and personal goals to the organization

b) It is an effective way to clarify and gain authority within the organization

c) It is a mechanism for aligning personal goals with societal goals

d) It helps organizations track their competitors

15) With respect to strategy maps and balanced scorecards, which of the following is FALSE?

a) Both address four perspectives: financial, customer, internal business process, and learning and growing perspectives

b) Strategy maps represent an easier way to develop a balanced scorecard

c) Both serve to monitor the cause-and-effect relationships identified through the development of a balanced scorecard

d) Employees’ understanding of strategy interactions is enhanced through their use

16) FMEA stands for:

a) Fail safe Mode and Effectuation Analysis

b) Failure in Massive Effects Analysis

c) Failure Mode in Eviction Analytics

d) Failure Mode and Effect Analysis

17)  Service defections are important in process control for services because:

a) No advertising is necessary to get the business of long-term customers

b) They are equally important to organizations that produce tangible outputs

c) A customer who takes their business elsewhere is analogous to a product defect

d) Long-time customers are more likely to purchase additional products

18) A useful tool for controlling processes such as quality, scrap, turnover, revenues, progress, costs, and so on is the _________ _________.

Chapter 4: Process Improvement: Minimizing Variation through Six Sigma

19) Six Sigma (DMAIC) is best applied when:

a) The process is fundamentally flawed

b) The process is brand new

c) There is too much variation in the process

d) There is too much waste in the process

20) Business Process Design (BPD) is also adequately named the following EXCEPT:

a) Reengineering

b) Business process innovation

c) Business process engineering

d) Downsizing or restructuring

21) Which of the following is NOT an original component of reengineering?

a) A radical change in the way work is performed

b) Process-centered reorganization of activities

c) An emphasis in getting rid of unnecessary employees

d) A dramatic improvement in performance

22)  The relationship between the natural variation in the production system and the product’s design specifications can be quantified using:

a) Six sigma

b) Control charts

c) A process capability index

d) Fishbone diagrams

23) A literal interpretation of six-sigma is:

a) 4.3 defects per million opportunities (DPMO)

b) 3.4 defects per billion opportunities (DPBO)

c) 3.4 defects per million opportunities (DPMO)

d) 3.1 defects per million opportunities (DPMO)

24) In order to claim status as a Six Sigma Black Belt, it has become customary for individuals to undergo a process of ________.

25) Measuring _________ _________ is analogous to product defects in service quality.

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