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OPS 571 Final Exam Study Guide Version 6

OPS 571 Final Exam Study Guide Version 6


1) ______________ refers to service encounters whose specifications must be developed through some interaction between the customer and the server.

a. Mail contact
b. Face-to-face loose specs
c. Face-to-face tight specs
d. Phone contact
e. Face-to-Face total customization

2) Which of the following statements is not true about the strategic uses of the service-system design matrix?
a. Enables systematic integration of operations and marketing strategy
b. Permits comparison with how other firms deliver specific services
c. Indicates life cycle changes that might be in order as the firm grows
d. Both A and B
e. Both B and C
f. A, B, and C

3) The approach to delivering on-site service made famous by Nordstrom department stores is:
a. Production line approach
b. Self-service approach
c. Personal attention approach
d. None of the above

4) Which of the following is not an element of a good service guarantee?
a. Unconditional
b. Easy to understand and communicate
c. Painless to invoke
d. Ensures the firm makes a profit
e. Meaningful to the customer

5) The categories for the Baldrige Award include:
a. Manufacturing companies or subsidiaries
b. Small businesses
c. Educational institutions
d. Healthcare organizations
e. A and B
f. All of the above

6) The category given the maximum point value in the Baldrige award is:
a. Strategic planning
b. Customer and market focus
c. Business results
d. Process management
e. Human resource focus

7) Which Quality Guru advocated that senior management is responsible for 94% of quality problems?
a. Crosby
b. Deming
c. Ishikawa
d. Juran
e. None of the above

8) Which of the following is not a dimension of design quality?
a. Features
b. Durability
c. Serviceability
d. Customization
e. Reputation

9) Testing is an example of:
a. Appraisal costs
b. Prevention costs
c. Internal failure costs
d. External failure costs
e. None of the above

10) An example of prevention quality cost is:
a. Inspection
b. Testing
c. Train personnel
d. Rework
e. Warranty replacements

11) SPC tools commonly used for continuous improvement efforts include:
a. Process flow chart
b. Pareto analysis
c. Cause and effect diagrams
d. Histograms
e. All of the above

12) Which of the following statements is not true about the ISO 9000 series?
a. The ISO 9000 consists of 5 primary parts numbered as 9000 through 9004.
b. There are 20 elements in the ISO 9000 standards that relate to how the system operates and how well it is performing.
c. ISO 9000 is somewhat intentionally vague.
d. There are 3 forms of certification: first, second and third party.
e. ISO 9000 places more emphasis on customer satisfaction and business results.

13) According to Treacy and Wiersema, market leadership can be attained through:
a. Product leadership
b. Operational excellence
c. Customer intimacy
d. Reengineering
e. A, B, and C
f. A, B, C, and D

14) According to David Maister, the most complex projects requiring innovation and creativity are called _________.
a. “Procedures” projects
b. “Gray hair” projects
c. “Brain Surgery” projects
d. “Grinding” projects
e. None of the above

15) The last stage in the operations consulting process is:
a. Presenting final report
b. Implementing changes
c. Assuring client satisfaction
d. Assembling learning from the stage
e. None of the above

16) Operations stage toolkit for the Data Analysis and Solution Development phase include(s):<br></br><ol type=”I”><li>SPC tools</li><li>Bottleneck analysis</li><li>Computer simulation</li><li>Balanced scoreboard</li></ol>
a. I and II
b. II and III
c. I, II and III
d. II, III, and IV
e. I, II, III, and IV

17) Five forces model is an operation-consulting tool used in the ___________ phase.
a. Problem definition
b. Data gathering
c. Data analysis
d. Cost impact and payoff analysis
e. Implementation

18) Total quality management emphasizes continuous and incremental improvements of processes that are in control, reengineering is about radical discontinuous change through process innovation.
a. True
b. False

19) Which of the following is not a principle or rule for reengineering?
a. Organize around tasks, not outcomes
b. Merge information-processing work into the real work that produces the information
c. Treat geographically dispersed resources as though they were centralized
d. Link parallel activities instead of integrating their results
e. Capture information once-at the source

20) Supply-chain strategy concepts are applicable to what types of companies?
a. Manufacturing
b. Service
c. Restaurants
d. Airlines
e. All of the above of companies
Section : S_1
Reference: 0801
Consider the following data from a company annual report:

Sales 1,000,000
Cost of Goods Sold 800,000
Raw Materials Inventory 100,000
Finished Goods Inventory 75,000
Work-in-Process 25,000

21) Refer To: 0801The inventory turnover for this company is:
a. 4.0
b. 8.0
c. 10.67
d. 32
e. 2.0

22) Refer To: 0801<br></br>Lower values of inventory turn are considered better for a company.
a. True
b. False

23) Which of the following product promotional activities would probably help make the supply chain more efficient?
a. Price promotions that expire on a specific date
b. An “everyday” low price strategy where prices are not dependent on quantity delivered with a specific order
c. Special packaging for a specific event that occurs one time each year
d. A 2 for 1 price promotion
e. All of the above

24) The phenomenon of magnification of demand variability as we move from the customer to the producer in the supply-chain is referred to as the:
a. Postponement effect
b. Elasticity of demand
c. Bullwhip effect
d. Price deflator
e. Just-in-time approach

25) According to Hau Lee, which of the following types of products need to be delivered with efficient supply-chains?
a. Custom products
b. Innovative products
c. Grocery products
d. High technology products
e. Responsive products
f. All of the above

26) Supply-chain response relates to the following:
a. How quickly a customer order can be filled
b. How quickly a company can react to a new competing product
c. How inexpensive the product is
d. A and B
e. All of the above

27) The idea of the Value Density calculation is:
a. Finding a carrier that can handle the weight
b. Matching the weight of the product with an appropriate carrier
c. Determining how a product should be shipped considering its weight and value
d. Finding the minimum cost carrier
e. Finding the fastest carrier for a product

28) What factors do companies need to consider when sourcing product?
a. Material costs
b. Transportation cost
c. Production costs
d. Outsourcing costs
e. All of the above

29) An important strategy for localizing a product in the context of supply-chain design is the following:
a. Postponing the task of differentiating a product until the last point in the supply network
b. Minimizing reengineering cost
c. Very high volume sales
d. Minimizing inventory cost
e. Low direct labor cost

30) Which of the following statements is not true about capacity management in operations?
a. When looking at capacity, operations managers need to look at both resource input and product outputs.
b. An operations management view also emphasizes the time dimension of capacity.
c. Capacity planning itself has different meaning to individuals at different levels within the operations management hierarchy.
d. The definition of capacity, in an operations management context, makes a clear distinction between efficient and inefficient use of capacity.

31) Capacity utilization rate can be computed as:
a. Capacity used – best operating level
b. Capacity used x best operating level
c. Capacity used / best operating level
d. Capacity used + best operating level
e. None of the above

32) Capacity flexibility can be achieved through:
a. Flexible plants
b. Flexible processes
c. Flexible workers
d. Strategies that use the capacity of other organizations
e. All of the above

33) Considerations in adding capacity include:
a. Maintaining system balance
b. Frequency of capacity additions
c. External sources of capacity
d. A and B
e. A and C
f. A, B, and C

34) The types of costs to consider when adding capacity are the cost of upgrading frequently and the cost of upgrading too infrequently.
a. True
b. False

35) The steps to determining capacity requirements include:
a. Using decision trees to evaluate capacity alternatives
b. Calculating equipment and labor requirements to meet product line forecasts
c. Projecting labor and equipment availabilities over the planning horizon
d. A and B
e. B and C
f. A, B, and C

36) Service capacity:
a. is highly time and location dependent
b. is subject to less volatile demand fluctuations
c. utilization directly impacts service quality
d. A and B
e. A and C
f. A, B, and C

37) The best operating level is:
a. the maximum point of the cost curve
b. the level of capacity for which average unit cost is minimized
c. maximum capacity
d. the level of capacity for which total cost is minimized
e. the level of capacity for which average unit cost is maximized

38) The benefit of group technology include:
a. Elimination of movement and waiting time between operations
b. Reduction of inventory
c. Reduction of number of employees required
d. A and B
e. B and C
f. A, B, and C

39) Which of the following is not true about JIT systems?
a. The JIT system is based on the philosophy of eliminating waste and utilizing the full capability of the worker.
b. Under JIT the ideal lot size is one.
c. JIT is typically applied to repetitive manufacturing.
d. The goal of JIT is to drive all inventory queues to a moderate level thus minimizing inventory investment and shortening lead times.
e. All the above statements are true.

40) Which of the following is not an element of JIT?
a. small-lot production
b. quickly changing schedule
c. multifunction worker
d. kanban pull system
e. perfect or nearly perfect quality

41) A kanban card is used to signal that:
a. work is ready to be moved to the next station
b. a worker has run out of parts
c. a machine has broken down
d. work is authorized to replenish a downstream station
e. a machine is ready for preventive maintenance

42) With regards to working with suppliers, lean systems typically require:
a. delivery of large lots at frequent intervals
b. buyer inspection of goods and materials
c. multiple sources from which to purchase
d. long-term relationships and commitments
e. the lowest price possible