Deck 5: Technology and Operations Management

Question 1

CAD/CAE systems are broader in scope than CIM systems.

Answer 1

False

Question 2

Computer chips and microprocessors are examples of hard technology.

Answer 2

True

Question 3

Technology has helped United Parcel Service UPS) to become an enabler of global commerce beyond simply moving goods.

Answer 3

True

Question 4

Flexible manufacturing systems integrate machines or robots with automated handling devices to route work, load tools, and control operations.

Question 5

Electronic medical records in health care are designed to improve patient satisfaction more than operational efficiency.

Question 6

Without the internet, there would be little application of technology in services.

Question 7

E-Service refers to using the Internet and technology to provide services that create and deliver time, place, information, entertainment and exchange value to customers and/or support the sale of goods.

Question 8

An integrated operating system can readily be transferred among different industries.

Question 9

Computer integrated manufacturing systems combine hardware, software, database management and communications to automate and control a broad range of production activities.

Question 10

A company such as eBay relies more on soft technology than hard technology.

Question 11

An intermediary specializes in handling all aspects of customers' returning a manufactured good or invoking service guarantees.

Question 12

Information technology has been equally important to business-to-business, business-to-customer, and customer-to-customer interactions.

Question 13

A principal advantage of numerical control NC) is that an operator has only to load and unload parts and push a button to begin processing, and thus can tend several NC machines at one work center.

Question 14

Technology provides the capability of eliminating many of the traditional components of value chains.

Question 15

Bar code scanners are examples of soft-technology.

Question 16

Because of the Internet and e-commerce, all parts of the value chain can immediately know and react to changes in demand and supply. Thus, tight integration of the components of the value chain is no longer required.

Question 17

From the perspective of operations management, all manufacturing organizations, regardless of their size or type of product, face similar issues regarding technology.

Question 18

Data warehouses and data mining are typical components of an integrated operating system.

Question 19

Industrial robots automate the skills that most humans can readily perform.

Question 20

Amazon.com would be an example of a customer-to-customer value chain.

Question 21

Information technology has significantly affected health care. Which of the following is not an outcome?

A)Cost reduction
B)Revenue enhancement
C)Faster exchange of handwritten charts between physicians and nurses
D)Improved clinical efficiency and patient care

Question 22

Dell Computer would best be described as what type of company?

A)B2B
B)B2C
C)C2C
D)Both a and b

Question 23

Database systems, artificial intelligence programs and voice-recognition software are examples of

A)hard technology
B)soft technology
C)computer numerical control
D)integrated operating systems

Question 24

All organizations face common issues regarding technology. Which item below does not belong on the list of issues?

A)The right technology must be selected for the goods that are produced.
B)Robots must be programmed to operate the equipment.
C)Work must be scheduled to meet shipping commitments/customer promise dates.
D)Quality must be ensured..

Question 25

Bar codes are the modern successor to RFID tags.

Question 26

Customer Relationship Management CRM) systems use segmentation data to help focus marketing initiatives and provide data for tracing sales trends and advertising effectiveness.

Question 27

One problem with Enterprise Resource Planning Systems ERP) is that each entity in the value chain, such as sales, inventory, accounting, and so on, must communicate information among each other from their own individual databases.

Question 28

A sociotechnical system integrates technology, people, and processes.

Question 29

Scalability is a phenomenon by which the same or an increased quality and quantity of goods and/or services are created using fewer natural resources.

Question 30

Which of the following would not be an activity a return facilitator handles?

A)recommending a new supplier
B)repairing the manufactured good
C)requesting money back for a customer
D)invoking the service guarantee

Question 31

_______ involves computer control of a manufacturing process, such as determining tool movements and cutting speeds.

A)Computer-Aided Design/Computer-Aided Engineering CAD/CAE)
B)Computer-Aided Manufacturing CAM)
C)Enterprise Resource Planning ERP)
D)Flexible Manufacturing Systems FMS)

Question 32

Enterprise Resource Planning systems are designed to build customer relationships and loyalty.

Question 33

Low scalability was one of the reasons for failure of many early Internet-based companies.

Question 34

____ consist of two or more computer-controlled machines or robots linked by automated handling devices such as transfer machines, conveyors and transport systems.

A)Computer-Aided Design/Computer-Aided Engineering CAD/CAE)
B)Computer-Aided Manufacturing CAM)
C)Enterprise Resource Planning ERP)
D)Flexible Manufacturing Systems FMS)

Question 35

The acronym ICT stands for Information and Communication Technology.

Question 36

Technology development and adoption generally has three stages - birth, turbulence, and obsolescence.

Question 37

Return facilitators specialize to getting reusable packaging/shipping material containers, crates, and pallets) back to manufacturers.

Question 38

Apple computer would best be described as what type of company?

A)B2B
B)B2C
C)C2C
D)All of these choices

Question 39

Which of the following is not a major characteristic of a customer relationship management system CRM)?

A)segmenting markets
B)identifying possible fraudulent transactions
C)monitoring the quality levels of products
D)forecasting customer retention

Question 40

High scalability is the capability to serve additional customers at high incremental variable costs.

Question 41

Enterprise Resource Planning Systems ERP)

A)are a subset of supply chain management
B)give each function the ability to set up its own databases
C)handle customer ordering, inventory management and production scheduling on a real-time basis.
D)are easy to implement

Question 42

CRM helps firms gain competitive advantage by all of the following except

A)providing real-time transaction processing
B)segmenting markets
C)tracking sales trends and advertising effectiveness
D)identifying which customers should be the focus of targeted marketing initiatives

Question 43

Filing your individual federal tax returns would best be described as what type of value chain?

A)B2B
B)C2G
C)C2C
D)G2G

Question 44

Infinite scalability is most related to

A)high variable cost
B)high fixed cost
C)high scalability
D)low scalability

Question 45

Discuss the role of technology on productivity.

Question 46

Explain the concept of ERP -Enterprise Resource Planning Systems.

Question 47

Regarding industrial robots, which choice is not correct?

A)ability to test manufacturing products before they physically exist
B)can be taught
C)can be used with hazardous material
D)can be used in brain surgery

Question 48

During which stage of technology development and adoption is design and demand flexibility most critical?

A)Birth
B)Turbulence
C)Build-out
D)Decline

Question 49

All of the following are benefits of adopting technology except

A)improve/increase productivity and quality
B)integrate supply and value chain players
C)raise world standard of living
D)easier to protect employees' and customers' privacy

Question 50

According to the National Research Council, companies with computer-integrated manufacturing system experience have been able to

A)improve quality by a factor of ten
B)increase equipment utilization to 100 percent
C)decrease engineering design costs by up to 30 percent
D)reduce finished goods inventory by five percent

Question 51

Which of the following is not a stage in technology development and adoption?

A)Birth
B)Turbulence
C)Build-out
D)Decline

Question 52

Differentiate between hard technology and soft technology.

Question 53

List some of the key issues that organizations face in using technology.

Question 54

The dot.com company WebVan focused on

A)grooming pets in customers' driveways
B)customers ordering their groceries on-line.
C)installing/repairing residential wireless networks
D)providing door-to-door medical diagnoses

Question 55

Which of the following enables engineers to design, analyze, test, simulate, and "manufacture" products before they physically exist?

A)CNC
B)CAD/CAE
C)CIM
D)CAM

Question 56

Computer integrated manufacturing systems result in

A)decreased engineering design costs
B)decreased equipment utilization
C)reduced work-in-process
D)improved quality

Question 57

Breakeven analysis can be used to

A)evaluate quality levels
B)help make technology adoption decisions
C)determine if ERP is economical
D)determine the breakeven quantity for infinite scalability

Question 58

Computer-Aided Manufacturing CAM) has advantages over conventional manufacturing approaches under many conditions. Which of the following is not such a condition?

A)when homogeneous parts are manufactured
B)when frequent design changes are made
C)when the manufacturing process is complex
D)when expert operator skills and close control are required

Question 59

Which of the following would not be included in a typical Customer Relationship Management System CRM)?

A)market segmentation and analysis
B)effective complaint resolution
C)cross-selling goods and services
D)supply chain inventory management

Question 60

Discuss the components, hardware and software of a Computer-Integrated Manufacturing System CIMS).

Question 61

A firm must make a choice between a manual and a semi-automatic production process for a new product line. Following are the costs for each process:
$$\begin{array} { l c c } \text { Alternatve } & \text { Fixed Cost } & \text { Variable Cost } \\\text { Manual }& \$ 100,000 & \$ 75.00 \\\text { Semi-Automatic } & \$ 300,000 & \$ 50.00\end{array}$$
a. Above what break-even production quantity would the semi-automatic alternative be preferred?
b. Which process is more economical for an annual production volume of 5,000 units?
c. Which process is more economical for an annual production volume of 10,000 units?

Question 62

A company is considering two alternative technologies for manufacturing a product. The cost data are shown below.
$\begin{array}{lcc} & \text { A } & \text { B } \\\text { Fixed Cost } & \$ 10,000 & \$ 25,000 \\\text { Variable Cost } & \$ 30 / \text { unit } & \$ 5 / \text { unit }\end{array}$ What is the breakeven volume, and under what circumstances should A be chosen?

Question 63

Describe the three stages of the technology development and adoption process.

Question 64

Allied Inc. is considering the purchase of a new piece of equipment. Relevant data are shown below.
$$\begin{array} { l r } \text { Annual Fixed Cost } & \$ 700,000 \\\text { Variable Cost per Unit } & \$ 750 \\\text { Revenue per Unit } & \$ 200\end{array}$$
a.Using this information, determine the break-even volume.
b.If the anticipated demand for the product is 5,000 units, should Allied purchase the new equipment?

Question 65

Janice Smith is an expert at calligraphy. However, it is found that a specialized robot can imitate Janice's work perfectly. Variable costs are 75% of selling price and fixed costs are $190,000 for the robot system.
a. How many pieces must be produced to break even assuming she sells each piece for $200?
b. How many pieces must be produced to break even if she sells them for $250 and variable costs drop to 70% of selling price?

Question 66

A company is investigating two automated approaches for its production process. It has collected the following cost information about each:
$$\begin{array} { c c c } \text { Alternative } & \text { Fixed Cost } &\text { Variable Cost }\\ \mathrm { CNC } & \$ 80,000 & \$ 2.75 \\ \text { FMS } & \$ 190,000 & \$ 1.25 \\\end{array}$$
a. At what point of production will the firm be indifferent to which process it wants?
b. Which process is more economical for an annual production volume of 50,000 units?
c. Which process is more economical for an annual production volume of 100,000 units?

Question 67

A manufacturing firm is considering three alternatives for automation. They anticipate annual production volume to be 75,000 units. The costs for each alternative are as shown:
$\begin{array}{lccc} &&\underline{\text { Alternative }}\\& \underline{1}& \underline{2 }& \underline{ 3}\\\text { Annual Fixed Costs } & 60,000 & \$ 180,000 & \$ 300,000 \\\text { Variahle Cost/Unit } & \$ 065 & \$ 055 & \$ 040\end{array}$
a. What sales price must be charged for Alternative 1 to breakeven?
b. What sales price must be charged for Alternative 2 to breakeven?
c. What sales price must be charged for Alternative 3 to breakeven?

Question 68

A key factor that affects technology decisions is scalability. Define scalability. Explain the difference between high scalability, infinite scalability, and low scalability.

Question 69

Highgrove Industries must decide which process technology to adopt given the information below.
$\begin{array}{lccc}\underline{\text { Cost}} & \underline{\text { Technology A }}&\underline{\text { Technology B }} &\underline{\text { Technology C }}\\\text { Price per unit } & \$ 3 & \$ 3 & \$ 3 \\\text { Fixed costs per year } & \$ 80,000 & \$ 120,000 & \$ 130,000 \\\text { Variable costs per unit } & \$ 2.20 & \$ 1.85 & \$ 1.65\end{array}$
Which one of the process technologies would you recommend they adopt based on breakeven analysis if they wish to minimize demand risks?

Question 70

Rogers Manufacturing Company makes high quality canvas tents. Their production manager is considering a change from its manual system of stitching to an automated system. The following are the costs for the two systems:
$$\begin{array} { l l l } \underline{\text { System} } & \underline{ \text { Fixed Cost }} & \underline{ \text { Variable Cost }} \\\text { Manual } & \$ 35,000 & \$ 12.50 \\\text { Automated } & \$ 80,000 & \$ 8.50\end{array}$$
a. What would the savings be if demand is 70,000 tents and the automated system is used?
b. What would the savings loss) be if demand is 20,000 tents and the automated system is used?

Question 71

How does customer relationship management CRM) help a firm gain competitive advantage?

Question 72

What are some of the benefits and challenges of technology?