Deck 14: Operations Management

Question 1

Application of PERT Network Analysis
Grace has just graduated from college with a degree in business administration and is totally overwhelmed by her first job. When she was in school, she could work on projects one at a time, and now she finds that she must juggle several projects with multiple activities. Grace is amazed that her supervisor, Linda, seems to have everything planned in a neat flowchart. Linda's current project is to oversee the construction of an office building, and Grace is determined to understand all of the actions that must take place, the major activities, and potential problems so she can be proactive.

-The actions that take place in Linda's analysis are called_____________in PERT network analysis.

A)critical path
B)slack time
C)events
D)activities

Answer 1

activities

Question 2

Which of the following is not a benefit of just- in- time (JIT)inventory systems?

A)increased demand
B)reduced inventories
C)less space consumption
D)shorter manufacturing time

Answer 2

A

Question 3

Anything that has the immediate potential for delaying a project must be_____________ .

A)monitored very closely
B)minimized
C)stopped immediately
D)none of the above

Answer 3

monitored very closely

Question 4

Application of PERT Network Analysis
Grace has just graduated from college with a degree in business administration and is totally overwhelmed by her first job. When she was in school, she could work on projects one at a time, and now she finds that she must juggle several projects with multiple activities. Grace is amazed that her supervisor, Linda, seems to have everything planned in a neat flowchart. Linda's current project is to oversee the construction of an office building, and Grace is determined to understand all of the actions that must take place, the major activities, and potential problems so she can be proactive.

-In PERT analysis, _____________is the time difference between the critical path and all other paths.

A)events
B)activities
C)critical path
D)slack time

Question 5

Which type of chart can schedule capacity by workstations?

A)load
B)Gantt
C)forecasting
D)zero- based budgeting

Question 6

_____________are not one of the major types of barrier that limit the success of value chain management listed in the text.

A)Organizational factors
B)Required capabilities
C)Technology investments
D)Cultural factors

Question 7

All of the following are benefits of effectively implementing a JIT inventory management systems within manufacturing except

A)increased customer satisfaction.
B)less space consumption.
C)better workflow, fewer bottlenecks.
D)reduced set- up time.

Question 8

Three tools that can be used to determine an efficiency sequence are Gantt charts, load charts, and_____________ .

A)control charts
B)PERT network analysis
C)critical path analysis
D)break- even analysis

Question 9

If a project requires coordinating hundreds of activities, some that must be done simultaneously and some that cannot begin until earlier activities have been completed, which of the following would be used?

A)break- even analysis
B)load chart
C)Gantt chart
D)PERT network analysis

Question 10

Aron can assemble 1000 widgets with 10 hours of direct labor at a fixed cost of materials and capital. What is his labor productivity?

A)10 percent
B)50 percent
C)100 percent
D)none of the above

Question 11

Which of the following is not a method of managing quality?

A)flexible manufacturing
B)continuous improvement
C)kanban
D)just- in- time

Question 12

Application of PERT Network Analysis
Grace has just graduated from college with a degree in business administration and is totally overwhelmed by her first job. When she was in school, she could work on projects one at a time, and now she finds that she must juggle several projects with multiple activities. Grace is amazed that her supervisor, Linda, seems to have everything planned in a neat flowchart. Linda's current project is to oversee the construction of an office building, and Grace is determined to understand all of the actions that must take place, the major activities, and potential problems so she can be proactive.
The flowchart that Linda is using depicts the sequence of activities necessary to construct the office building and the time and costs associated with each activity. Linda is using

A)internal auditing.
B)a management information system.
C)a Gantt chart.
D)PERT network analysis.

Question 13

A Gantt charts list tasks, compared to load charts which list_____________ .

A)resources or people
B)activities
C)time frames
D)events

Question 14

The formula for productivity is _____________divided by labor plus capital plus materials.

A)sales
B)outputs
C)personnel
D)profits

Question 15

Application of Operations Management
Leeann has been hired as an intern at BNR, a small custom embroidery and design business. She is amazed at the many uses her manager has found for technology. She is able to draft customer designs using software, and her manager has even told her about machines that can act and see like human beings. The embroidery machines are so sophisticated that in order to change from one product to another, all that she has to do is change the computer program. BNR sells many of its products over the Internet so there is no intermediary.

-BNR is using _____________ when it can manage inventory most efficiently.

A)flexible manufacturing
B)quality control
C)kanban
D)just- in- time (JIT)

Question 16

Any event on the on the critical path that is delayed will

A)increase the resources needed for the project.
B)increase the cost of the project.
C)increase the number of people assigned to the project.
D)delay the overall project.

Question 17

Application of Value Chain Management
Glenn is a novice at using value chain management, but realizes that he has to learn more about making it a success and how it is reshaping the office. Glenn has several problems with which he needs help. Here are his perceived needs:
1. comprehensive and seamless integration,
2. new technology,
3. better ways to get work done,
4. vision from people- centered managers, and
5. quality work.

-Glenn's first need is/are_____________ .

A)leadership
B)coordination and collaboration
C)organizational processes
D)technology investment

Question 18

Application of PERT Network Analysis
Grace has just graduated from college with a degree in business administration and is totally overwhelmed by her first job. When she was in school, she could work on projects one at a time, and now she finds that she must juggle several projects with multiple activities. Grace is amazed that her supervisor, Linda, seems to have everything planned in a neat flowchart. Linda's current project is to oversee the construction of an office building, and Grace is determined to understand all of the actions that must take place, the major activities, and potential problems so she can be proactive.

-Grace is using a load chart, which visually displays resources and the sequence of events. This tool is a type of_____________ .

A)quality control
B)critical path diagram
C)PERT network analysis
D)Gantt chart

Question 19

Which of the following is not a key component of PERT?

A)activities
B)events
C)critical path
D)times

Question 20

Which two variables are used in the Gantt chart?

A)time and activities to be scheduled
B)expenses incurred and activities to be scheduled
C)time and expenses incurred
D)efficiency of activities to be scheduled and expenses

Question 21

What is the ultimate goal of a just- in- time (JIT)inventory system?

A)eliminate raw material inventory
B)acquire firms that supply our inventory
C)disintermediation
D)reduce kanban

Question 22

Since a delay on this course will delay the whole project, where should management's attention be primarily focused?

A)activities
B)events
C)times
D)critical path

Question 23

Which planning technique allows managers to easily determine if they are ahead, behind, or on schedule?

A)forecasting
B)strategic planning
C)zero- based budgeting chart
D)Gantt chart

Question 24

PERT is primarily used as a _____________tool.

A)monitoring
B)planning;
C)controlling
D)measurement

Question 25

_____________is flowchart like diagram that depicts the sequence of activities needed to complete a project and the time or costs associated with each activity.

A)A project control chart
B)A Gantt chart
C)PERT network analysis chart
D)A load chart

Question 26

What do Gantt charts, load charts, and PERT network analysis charts all have in common?

A)They are used to manage inventories and supplies.
B)They sequence events concurrently.
C)They are part of the continuous improvement process.
D)They are part of the input process.

Question 27

_____________are the supplies or raw materials needed to create a product.

A)Processes
B)Inputs
C)Outputs
D)Investments

Question 28

_____________is the task of getting activities done on time, within budget, and according to specifications.

A)Project management
B)Quality control
C)Continuous process improvement
D)Process value analysis

Question 29

PERT is both a _____________and _____________tool.

A)planning; control
B)directing; planning
C)planning; organizing
D)control; staffing

Question 30

Application of PERT Network Analysis
Grace has just graduated from college with a degree in business administration and is totally overwhelmed by her first job. When she was in school, she could work on projects one at a time, and now she finds that she must juggle several projects with multiple activities. Grace is amazed that her supervisor, Linda, seems to have everything planned in a neat flowchart. Linda's current project is to oversee the construction of an office building, and Grace is determined to understand all of the actions that must take place, the major activities, and potential problems so she can be proactive.

-If Linda and Grace work together developing a new product that will be tested in several markets, the best device to use for this project would be _____________.

A)a Production chart
B)a PERT network analysis chart
C)a load chart
D)a Gantt chart

Question 31

Application of PERT Network Analysis
Grace has just graduated from college with a degree in business administration and is totally overwhelmed by her first job. When she was in school, she could work on projects one at a time, and now she finds that she must juggle several projects with multiple activities. Grace is amazed that her supervisor, Linda, seems to have everything planned in a neat flowchart. Linda's current project is to oversee the construction of an office building, and Grace is determined to understand all of the actions that must take place, the major activities, and potential problems so she can be proactive.
In PERT analysis, the longest or most time- consuming sequence of events and activities required to complete a project in the shortest amount of time is referred to as

A)critical path.
B)activities.
C)slack time.
D)events.

Question 32

What do we call the entire series of organizational work activities that add value at each step, beginning with the processing of raw materials and ending with a finished product in the hands of end users?

A)value chain management operations
B)value chain management
C)value chain
D)value

Question 33

Application of PERT Network Analysis
Grace has just graduated from college with a degree in business administration and is totally overwhelmed by her first job. When she was in school, she could work on projects one at a time, and now she finds that she must juggle several projects with multiple activities. Grace is amazed that her supervisor, Linda, seems to have everything planned in a neat flowchart. Linda's current project is to oversee the construction of an office building, and Grace is determined to understand all of the actions that must take place, the major activities, and potential problems so she can be proactive.
As Grace uses Gantt charts, load charts, and PERT network analysis charts on several of her projects, she notices that they have one thing in common, that

A)they sequence events concurrently.
B)they help control outputs.
C)they are part of the input process.
D)they are used to manage inventories.

Question 34

Application of Value Chain Management
Glenn is a novice at using value chain management, but realizes that he has to learn more about making it a success and how it is reshaping the office. Glenn has several problems with which he needs help. Here are his perceived needs:
1. comprehensive and seamless integration,
2. new technology,
3. better ways to get work done,
4. vision from people- centered managers, and
5. quality work.

-_____________is/are Glenn's third need.

A)Workflow automation
B)Leadership
C)A management information system
D)Organizational processes

Question 35

_____________is not one of the major steps involved in developing a PERT network chart.

A)Identifying project risks and obstacles
B)Identifying all significant project activities
C)Computing time estimates for each completing each activity
D)Determining the order of events that must be completed

Question 36

This area showed the least amount of overall improvement among all companies as result of sharing information with partners in the value chain partners.

A)customer service
B)cost savings
C)on- time delivery
D)sales and logistics

Question 37

Application of Operations Management
Leeann has been hired as an intern at BNR, a small custom embroidery and design business. She is amazed at the many uses her manager has found for technology. She is able to draft customer designs using software, and her manager has even told her about machines that can act and see like human beings. The embroidery machines are so sophisticated that in order to change from one product to another, all that she has to do is change the computer program. BNR sells many of its products over the Internet so there is no intermediary.
The machines that Leeann's manager has told her about, which can act and see like human beings and are able to perform complex operations, are termed

A)robotics.
B)kanban.
C)technology investment.
D)e- manufacturing.

Question 38

Application of Value Chain Management
Glenn is a novice at using value chain management, but realizes that he has to learn more about making it a success and how it is reshaping the office. Glenn has several problems with which he needs help. Here are his perceived needs:
1. comprehensive and seamless integration,
2. new technology,
3. better ways to get work done,
4. vision from people- centered managers, and
5. quality work.

-_____________is/are the last need.

A)Culture and attitudes
B)Employees
C)Technology investment
D)Leadership

Question 39

The process of managing the entire sequence of integrated activities and information about product flow is called _____________.

A)supply chain management
B)kaizen
C)total quality management
D)value chain management

Question 40

Application of Value Chain Management
Glenn is a novice at using value chain management, but realizes that he has to learn more about making it a success and how it is reshaping the office. Glenn has several problems with which he needs help. Here are his perceived needs:
1. comprehensive and seamless integration,
2. new technology,
3. better ways to get work done,
4. vision from people- centered managers, and
5. quality work.

-Glenn needs _____________ for the fourth organizational need.

A)better management
B)expert systems
C)flexible manufacturing systems
D)leadership

Question 41

All organizations produce goods or services through the _____________process.

A)transformation
B)manufacturing
C)engineering
D)operations

Question 42

A system in which inventory items arrive as they are needed in production instead of being stored in stock is known as

A)flexible manufacturing systems.
B)CAD.
C)just- in- time (JIT).
D)robotics.

Question 43

All of the following required capabilities are needed for effectiveness of value chain management except

A)ability to configure products to satisfy customers and suppliers.
B)ability to develop required technology.
C)ability to educate internal partners.
D)coordination and collaboration.

Question 44

Application of Operations Management
Leeann has been hired as an intern at BNR, a small custom embroidery and design business. She is amazed at the many uses her manager has found for technology. She is able to draft customer designs using software, and her manager has even told her about machines that can act and see like human beings. The embroidery machines are so sophisticated that in order to change from one product to another, all that she has to do is change the computer program. BNR sells many of its products over the Internet so there is no intermediary.

-BNR transforms its embroidery inputs into outputs through its _____________ .

A)just- in- time (JIT)system
B)quality control
C)robotics
D)technology

Question 45

_____________is/are not a requirement for successful value chain management listed in the text.

A)Technology investment
B)Coordination and collaboration
C)Organizational processes
D)Continuous process improvement

Question 46

A_____________ is a flowchart- like diagram that depicts the sequence of activities needed to complete a project and the time or costs associated with each activity.

A)TQM diagram
B)PERT network
C)break- even analysis
D)Gantt chart

Question 47

Choose the one statement below that is not an important conclusion about how organizational processes must change.

A)New measures are needed for setting realistic objectives in the value chain.
B)Selected functions may need to be done collaboratively with other partners in the value chain.
C)New measures are needed for evaluating the performance of various value chain activities.
D)Better demand forecasting is necessary and possible because of closer customer ties.

Question 48

Application of PERT Network Analysis
Grace has just graduated from college with a degree in business administration and is totally overwhelmed by her first job. When she was in school, she could work on projects one at a time, and now she finds that she must juggle several projects with multiple activities. Grace is amazed that her supervisor, Linda, seems to have everything planned in a neat flowchart. Linda's current project is to oversee the construction of an office building, and Grace is determined to understand all of the actions that must take place, the major activities, and potential problems so she can be proactive.

-Linda is using PERT network analysis primarily as a_____________ tool.

A)budgeting
B)monitoring
C)planning
D)management

Question 49

Continuous process improvement programs are designed to constantly improve the quality of the organization's _____________.

A)services
B)processes
C)products
D)all of the above

Question 50

Application of Operations Management
Leeann has been hired as an intern at BNR, a small custom embroidery and design business. She is amazed at the many uses her manager has found for technology. She is able to draft customer designs using software, and her manager has even told her about machines that can act and see like human beings. The embroidery machines are so sophisticated that in order to change from one product to another, all that she has to do is change the computer program. BNR sells many of its products over the Internet so there is no intermediary.

-BNR has used new Internet technology to ensure that what is produced meets its preestablished standards. BNR is concerned about_____________.

A)technology
B)quality control
C)just- in- time (JIT)inventory
D)value chain management

Question 51

The two most cited benefits from value chain management were_____________and _____________.

A)cost savings; accelerated delivery times
B)increased market share; increased sales
C)cost savings; increased market share
D)inventory reductions; improved logistics management

Question 52

Application of PERT Network Analysis
Grace has just graduated from college with a degree in business administration and is totally overwhelmed by her first job. When she was in school, she could work on projects one at a time, and now she finds that she must juggle several projects with multiple activities. Grace is amazed that her supervisor, Linda, seems to have everything planned in a neat flowchart. Linda's current project is to oversee the construction of an office building, and Grace is determined to understand all of the actions that must take place, the major activities, and potential problems so she can be proactive.
The program evaluation and review technique were originally developed in the late 1950s for the purpose of

A)building the Paris Metro.
B)working on the weapons system for the Polaris submarine.
C)minimizing time from grower to consumer for hog farmers.
D)coordinating the work on building the Vietnam Memorial.

Question 53

PERT network analysis teaches us that our attention needs to be focused on the _____________at all times.

A)critical activities
B)activities
C)events
D)critical path

Question 54

The study and application of the transformation process is called_____________ .

A)kanban
B)productivity
C)operations management
D)total quality control

Question 55

_____________would be the best tool to use if you were the project manager assigned to building a new office complex.

A)A process layout
B)A PERT Network chart
C)A break- even analysis
D)A Gantt chart

Question 56

If a project manager notices some slippage on a critical activity, perhaps _____________from a noncritical activity can be borrowed and temporarily assigned to work on the critical one.

A)ideal time
B)process time
C)slack time
D)critical time

Question 57

_____________refers to the facilities, functions, and activities involved in producing and delivering a product or service from supplier to customer.

A)Supply chain management
B)Inventory management
C)Continuous process improvement
D)Process value analysis

Question 58

Key issues related to operations management include all of the following except

A)capitalize on e- manufacturing technology.
B)parts arrive just in time.
C)quality.
D)market analysis.

Question 59

is not a major overall benefit of sharing information with partners in the value chain.

A)Accelerated delivery
B)Cost savings
C)Improved customer service
D)Increased employee satisfaction

Question 60

Application of PERT Network Analysis
Grace has just graduated from college with a degree in business administration and is totally overwhelmed by her first job. When she was in school, she could work on projects one at a time, and now she finds that she must juggle several projects with multiple activities. Grace is amazed that her supervisor, Linda, seems to have everything planned in a neat flowchart. Linda's current project is to oversee the construction of an office building, and Grace is determined to understand all of the actions that must take place, the major activities, and potential problems so she can be proactive.
Which of the following tools will help Linda produce chart displaying a visual sequence of the process steps used in planning, scheduling, and monitoring production?

A)a control chart
B)a load chart
C)a PERT network analysis chart
D)a Gantt chart

Question 61

Productivity refers to the design, operation, and control of the transformation process that converts such resources as labor and raw materials into goods and services, which are sold to customers.

Question 62

Technology is the primary focus of any manager's efforts to improve productivity.

Question 63

Describe the concept of a business model and describe how it relates to value chain management.

Question 64

Why discuss service organizations in this chapter?

Question 65

Supply chain management focuses on the efficient flow of raw materials into the organization and transformation of products and services that go outside of the organization.

Question 66

Application of Value Chain Management
Glenn is a novice at using value chain management, but realizes that he has to learn more about making it a success and how it is reshaping the office. Glenn has several problems with which he needs help. Here are his perceived needs:
1. comprehensive and seamless integration,
2. new technology,
3. better ways to get work done,
4. vision from people- centered managers, and
5. quality work.

-His second need is/are_____________ .

A)organizational processes
B)leadership
C)technology investment
D)coordination and collaboration

Question 67

Flexibility is the key description of job design in a value chain management organization.

Question 68

Define the term "slack time" and describe how it is used in managing a project.

Question 69

How can an organization improve productivity?

Question 70

What is the difference between a Gantt chart and a load chart?

Question 71

Kanban is part of which of the following processes in Japan?

A)continuous improvement
B)project management
C)flexible manufacturing
D)just- in- time

Question 72

As a result of sharing information with value chain partners, excellent companies reduced inventories and improved customer service by more than 50%.

Question 73

What is a Gantt chart? How can managers use Gantt charts?

Question 74

List the most benefits of value chain management cited in the text.

Question 75

What is just- in- time (JIT)inventory?

Question 76

Supply chain management is the process of managing the entire sequence of integrated activities and information about the flow and production of products along the entire value chain.

Question 77

Compare value chain management and supply chain management.

Question 78

Cost savings and accelerated delivery times are the two of the most important benefits gained from effective value chain management.

Question 79

Organizational processes are a requirement for successful value chain management.

Question 80

Briefly describe project management.