Operations Strategy Study Guide
Questions
Course Introduction
Operations Strategy explores the frameworks, tools, and analytical methods used to align a company's operations with its overall business strategy. The course examines how operations can be leveraged as a competitive advantage through decisions related to process design, capacity planning, supply chain management, quality improvement, and innovation. Students will study real-world cases to understand the challenges companies face in both manufacturing and service industries, and learn how to design and implement effective operations strategies that support organizational goals, respond to dynamic market conditions, and drive long-term performance.
Recommended Textbook
Production and Operations Management 2nd Edition by Martin Starr
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20 Chapters
2240 Verified Questions
2240 Flashcards
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Page 2
Chapter 1: Product Line Planning and the Systems Approach
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) The _____ approach integrates P/OM decisions with those of all other business functions.
A)systems
B)functional field
C)customer relationship
D)systematic-constructive
Answer: A
Q2) Most production managers will accept being called by the title of operations manager.
A)True
B)False
Answer: True
Q3) _____ is defined as starting from scratch to redesign a system,and is an appealing way to circumvent bureaucratic arthritis and successfully jump stages.
A)Redesigning
B)Reprocessing
C)Reengineering
D)Reevaluating
Answer: C
Page 3
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Chapter 2: Productivity and Strategic Planning
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115 Flashcards
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Sample Questions
Q1) P/OM strategic thinking is used to help find the best product line for the marketplace and then to make these products at the A)lowest cost.
B)highest quality.
C)maximum productivity level.
D)all of the above
Answer: D
Q2) The achievement of quality standards is an indirect responsibility of P/OM.
A)True
B)False
Answer: False
Q3) What is lean production? Who is credited with its invention?
Answer: During the 1970s-1990s,Japanese organizations spearheaded by Toyota,developed lean production systems.These systems combine a deep understanding of quality with a desire to be fast (if not the fastest) and a fanatical distaste for all kinds of waste.Under lean,time wasted is singled out.Every effort was made to use pre-engineering of production systems and process design to maximize quality achievements,minimize variability,and do it all as rapidly as possible.Lean producers exhibit high-output volume targets,minimum cycle times,and rapid new product development.
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Chapter 3: Demand Creation and Predictive Planning
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) Extrapolations of time series can be based on
A)cyclical wave patterns.
B)trend lines.
C)step functions.
D)combinations of any or all of these patterns.
Answer: D
Q2) _____ and _____ are sales that move around the globe in response to currency fluctuations that are increasingly unstable.
A)Inputs;outputs
B)Exports;imports
C)Time;extrapolation
D)Methods;forecasting
Answer: B
Q3) Active participation of P/OM is characterized by doing just what is asked and nothing more.
A)True
B)False
Answer: False
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Chapter 4: Understanding Quality: ITS Management and Strategic Importance
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114 Flashcards
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Sample Questions
Q1) Variety does not increase a brand's market share because people do not like to switch flavors from time to time.
A)True
B)False
Q2) As a _____,it is often necessary to compromise and set quality standards that are not the best in their class.
A)producer
B)consumer
C)manager
D)none of the above
Q3) The _____ dimension alludes to the degree to which the measured production qualities correspond to the design quality standards that have been specified.
A)conformance
B)suitability
C)aesthetics
D)perceived quality
Q4) How can better quality result in savings for the manufacturing company?
Q5) Why do products with better quality have a marketplace advantage?
Q6) What shape do failure probabilities exhibit and why?
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Chapter 5: Process Configuration Strategies
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Sample Questions
Q1) _____ are realized when setup cost reduction allows more frequent setups,without incurring additional costs,and thereby smaller lot sizes can be run.
A)Economies of scope
B)Economies of scale
C)Just-in-case production systems
D)Just-in-time production systems
Q2) The synthetic process used by auto makers,in order is
A)stamping,body assembly,paint,trim,QC,and shipping.
B)body assembly,stamping,trim,QC,paint,and shipping.
C)stamping,paint,body assembly,trim,QC and shipping.
D)body assembly,trim,stamping,QC,paint,and shipping.
Q3) The Hayes and Wheelwright matrix defines product life cycles in terms of increasing volume and decreasing variety.
A)True
B)False
Q4) Analytic processes begin with the purchase of the single commodity,which the process transforms into many derivative products.
A)True
B)False
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Chapter 6: Process Analysis and Redesign
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115 Flashcards
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Sample Questions
Q1) _____ is the start of the changeover cycle.
A)Time-based management
B)Setup
C)Process charting
D)Process analysis
Q2) The old engineering truism that changeover times and costs must increase with the use of higher volume-efficient equipment is disappearing.
A)True
B)False
Q3) Remedial maintenance is a complete and total plan to prevent failures of various kinds.
A)True
B)False
Q4) Productivity improvement programs and studies (PIPS) can be used to _____.
A)raise output
B)lower quality
C)raise output without lowering quality
D)raise output but lower quality
Q5) How can process charts be used to optimize layout?
Q6) Why are process managers also line managers?
Page 8
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Chapter 7: Quality Assurance
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115 Flashcards
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Sample Questions
Q1) _____ is when output units are classified as accepted or rejected,usually by some form of inspection device that only distinguishes between a "go" or "no go" situation.
A)Variable categorization
B)Nonrandom elimination
C)Classification by variables
D)Classification by attributes
Q2) The relationship between the variability of a stable parent distribution and that of the distribution of the sample means is known as the central limit theorem.
A)True
B)False
Q3) Lee's Machine Shop has an order quantity of 200 units and there are seven components to be assembled for each unit produced.Each of the components has a 5 percent probability of being defective.How many units should be made in the batch?
Q4) Chance causes are unpredictable and unstable in statistical terms.
A)True
B)False
Q5) What is "zed" or ZD?
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9
Chapter 8: Management of Technology Mot
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101 Verified Questions
101 Flashcards
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Sample Questions
Q1) Miniaturization has been pioneered by _____ for its own product line to make small products.
A)GE
B)FedEx
C)Sony
D)Samsung
Q2) In quick-service restaurants,theme parks,the U.S.Post Office,FedEx,and UPS,there are ample examples of A)FMS.
B)FOS.
C)FSS.
D)FPS.
Q3) Before _____,definitions of technology placed more stress on the "arts" part of the interactions that occur between people's skills using tools and machines than on the materials and machines themselves.
A)1950
B)1980
C)1990
D)2000
Q4) How can technology components of transformation be categorized?
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Chapter 9: Teamwork Planning Requires Job Design
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Sample Questions
Q1) Short-term Contribution Margin (STCM) has been calculated to be $70,000.Overhead allocation is estimated for one week as follows: General expenses are $40,000;used general expenses are $30,000;unused general expenses constitute the remainder of $10,000.Working in units of ten thousands,GE = $4,with UGE = $3,and UNGE = $1.What is the operating profit?
Q2) With cycle-time analysis,the spotlight often shifts from individuals to groups of individuals,or to the combination of people and technology.These are often referred to as "diagnostic observations" instead of "time studies."
A)True
B)False
Q3) Training for teamwork is a systems-wide concern where success is based on having a focused common strategy.
A)True
B)False
Q4) Distance-learning training can be delivered through the use of all known media. A)True
B)False
Q5) How can training program effectiveness be determined?
Q6) Describe traditional training methods used in P/OM.
Page 11
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Chapter 10: Supply Chain Capacity Planning
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113 Flashcards
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Sample Questions
Q1) When determining capacity it is essential to consider what type(s) of bottlenecks?
A)synchronized
B)fixed
C)floating
D)all of the above
E)b and c only
Q2) If the _____ capacity of a process is less than the peak demand,knowing how to assign priorities will influence real capacity levels achieved.
A)maximum
B)minimum C)rated
D)observed
Q3) _____ set for itself a robust and demanding quality goal of 3.4 defects per million parts.
A)FedEx
B)GM
C)Motorola
D)Toyota
Q4) What is actual capacity? How is it defined and altered?
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Chapter 11: Facilities Planning: Location and Layout
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) What role does RFID play in port security?
Q2) When the real problem to solve is too big to grasp because there are very many options,the systems approach is indicated.Dividing the (facilities) problem into regional subproblems to make it more workable can improve the quality of the solution.
A)True
B)False
Q3) Suboptimization is best described as
A)results that stray from achieving the objectives that drive strategies.
B)plans for arranging satisfactory working environments using company facilities.
C)satisfactory alternative strategies for building a new facility.
D)the result,or series of results,that achieve the strategic-driven objectives.
Q4) The Transportation Model can include
A)transportation costs.
B)price differences in markets.
C)production efficiency differentials.
D)all of the above
E)none of the above
Q5) List the applications that the scoring model is useful for.
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Chapter 12: Materials Management Impacts All Supply
Chain Participants
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110 Flashcards
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Sample Questions
Q1) To where has outsourcing moved the labor component?
Q2) Purchasing departments in the twentieth century were best described as information-gathering agencies.
A)True
B)False
Q3) Certification of suppliers is not expensive or time-consuming.
A)True
B)False
Q4) Good turnover brings large rewards and a reputation for purchasing success.
A)True
B)False
Q5) Materials management information systems (MMIS) provide online information about stock levels for work-in-process and on-time deliveries.
A)True
B)False
Q6) Flow shops,like job shops,have a varied and changing set of materials requirements.
A)True
B)False
Page 14
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Chapter 13: Aggregate Planning to Balance Supply and Demand
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106 Flashcards
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Sample Questions
Q1) Overstaffing seldom places burdens on the human resources managers who have to deal with personnel needs and the long-term repercussions of asking people to leave without notice.
A)True
B)False
Q2) The_____ is the producer's general plan for getting work done.
A)company plan
B)aggregate plan
C)detailed schedule
D)strategic plan
Q3) What is the driver of AP?
Q4) HMMS is a pioneering aggregate-planning model that uses linear costs for its resource constraints.
A)True B)False
Q5) By varying the size of the workforce,production output can be made to match demand if facilities and equipment allow.
A)True B)False
Q6) Define Standard Units.
Page 15
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Page 16
Chapter 14: Inventory Management for Smooth and Continuous Demand Patterns
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) _____ methods are applicable when demand distributions are predictable. A)MRP
B)OPP
C)LP
D)HMMS
Q2) Dynamic inventory models apply to inventories that are used for _____.
A)flow shops
B)intermittent flow shops
C)batch work that occurs fairly regularly
D)all of the above
Q3) JIT has different meanings for job shops and flow shops.
A)True
B)False
Q4) Water testing at the olympic-size city pool requires a chemical that costs $400 per gallon.Use is constant at 1/3 gallon per week.Carrying cost rate is considered to be 10 percent per year,and the cost of an order is $100.What is the optimal EOQ for the reagent?
Q5) The pure dynamic case of inventory models is also called a one-period model. A)True
B)False
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Chapter 15: Material Requirements Planning Mrp for
Sporadic Demand Patterns
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Sample Questions
Q1) The cumulative lead time for a parent product is found by looking at the _____ lead-time path to obtain all of the parts that go into the end-item.
A)shortest
B)fastest
C)longest
D)both a and b
Q2) The first book on MRP was written by _____ in 1975.
A)Joseph Orlicky
B)Modigliani
C)David Garvin
D)Robert Thurman
Q3) MRP is vulnerable to variability in lead times.
A)True
B)False
Q4) _____ is the essence of supply chain management.
A)BOR
B)DRP
C)CRP
D)MRP
Q5) What are the two approaches for updating the MRP files and records?
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Chapter 16: Production Scheduling for Manufacturing and Service Operations
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Sample Questions
Q1) Total flow time is the cumulative time required to complete a group of jobs.
A)True
B)False
Q2) In the V process,work begins upstream at the tributaries and flows downstream to the trunk,encountering various bottlenecks along the way.
A)True
B)False
Q3) For synchronized manufacturing,complex flow patterns are analyzed by A)locating the bottleneck.
B)making sure it is feasible to increase the throughput rate of the bottleneck.
C)determining appropriate time buffers.
D)all of the above
Q4) The backlog is generally much larger than the work in process which can be seen as work waiting on the shop floor of facility.Some managers brag about how much work is waiting.It is taken as a sign of success.
A)True
B)False
Q5) What questions are answered by "loading" and "sequencing" respectively?
Q6) Define production and operations scheduling.
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Chapter 17: Cycle-Time Management Increases
Productivity
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Sample Questions
Q1) Push-type production systems create A)bottlenecks.
B)disruptive backups of costly WIP to form.
C)both a and b
D)neither a nor b
Q2) Describe the behavior of a single channel system.
Q3) At The Burger Place,Jane's toaster produces 20 finished crowns and heels per minute while Jim dresses 10 burgers per minute.They have been trained to use push-production methods.When Jane sees that Jim has no more space,she helps out at the drive-through window.What is the waiting line if they both work at rated speed for 15 minutes? How big a storage space does Jim need? How is quality affected?
Q4) A kanban is any method that calls attention to the fact that the next station wishes to stop further deliveries.
A)True
B)False
Q5) Strategic thinking should include time-based and cycle-time management (TBM and CTM).
A)True
B)False
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Chapter 18: Project Management for New Products and Processes
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Sample Questions
Q1) Concurrent project management is characterized by production managers having the opportunity to work on marketing issues and then marketing has a lot of leeway to work on production problems.
A)True B)False
Q2) Many projects move rapidly at the beginning while many ideas are being considered.
A)True B)False
Q3) Which is the most essential rule that applies to project management?
A)Accurate time and cost estimates for all project activities are essential.
B)Backup redundancy of activities should be increased.
C)Expertise is not required to outline project activities and to sequence them correctly.
D)Multiple project leaders are preferred.
Q4) Projects that are tracked by good information systems require more management time to produce controlled innovative success stories.
A)True B)False
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Chapter 19: Change Management With Faster Project Completions
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Sample Questions
Q1) Government regulations apply to design for manufacturability and design for assembly.Both are subject to the conditions of design for safe use by competitors.
A)True
B)False
Q2) Oticon and W.L.Gore are two companies that
A)provide useful models of ceaseless reengineering.
B)are driven by continuous project development.
C)have an internal focus on pleasing customers.
D)all of the above and more
Q3) Methods for shortening project life-cycle time include the use of PERT analysis with particular emphasis on cutting out slack without jeopardizing quality.
A)True
B)False
Q4) Business process redesign seeks radical improvement over a reasonable period of time.
A)True
B)False
Q5) What target variables are included in a list of smart benchmarks?
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Q6) On what is the Ferris Wheel model for continuous project management based?
Chapter 20: Sustainability Issues: Environment, Ethics, and Security
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Sample Questions
Q1) A(n) _____ plant must be redesigned and rebuilt at high costs,including the cost of lost production while changing over from one system to the other.
A)new,greenfield
B)old
C)grandfathered
D)none of the above
Q2) Past predictions about robot dexterity have exceeded reality.
A)True
B)False
Q3) For process technologies in general,HACCP has relevance as an application of _____ under governmental regulation.
A)SQC
B)TQM
C)MIT
D)OSHA
Q4) Hazard reduction for workers,customers,and communities is not an ethical issue.
A)True
B)False
Q5) Describe water-jetting.
Page 23
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