ISO 9000 is a series of standards covering environmental management systems,
auditing, labeling, and life-cycle assessment.
Six Sigma is better applied on manufacturing than service operations.
A bullwhip effect occurs more often when the sole transmission of information occurs
by handoffs from one link of the chain to the next.
Projects should be evaluated against standards and by methods established at their
completion, including procedures for monitoring, collecting, storing, and evaluating the
history of the project.
There are five stages of effectiveness in terms of the role their operations play in terms
of strategic business objectives.
The resource-based view considers the set of resources available to the organization as
a secondary driver of the business strategy.
In the product-process matrix, when the size of a batch increases significantly, with a
corresponding decrease in output variety, then the flow shop is appropriate.
In services, a product defect is analogous to a defecting customer’“a customer who
takes their business elsewhere.
It is not unusual for fire departments to use ‘slack months’ for building inspections,
conducting prevention programs and giving talks as a way to have anticyclic outputs.
Obtaining lower unit costs through the use of larger facilities is called economies of
scope.
The amount of safety time needed to protect a particular path in a project is less than the
sum of the safety times required to protect the individual activities making up the path.
Yield management, also known as revenue management is the amount of output of
acceptable quality emerging from a production system compared with the amount that
entered it.
In addition to showing time schedules, Gantt charts can also be used for capacities of
facilities, workers, jobs, activities, and so forth.
The learning curve is the ability programmed in robots to increase their productive
capacity through learning.
Using CPM, when activity times are not known with certainty, we still can determine
how long it will actually take to complete the project.
The Malcolm Baldrige National Quality Award was first awarded to Motorola in 1988.
Technology usage is not as important as reorganization in Business Process Design.
Efficiency is defined as input divided by output.
In order to leverage the location decision to enhance the development of long-term
capabilities, the first step is to:
a) Identify the sources of value the company will deliver
b) Assess implications for the location of organizational units
c) Identify the key organizational capabilities
d) Evaluate the key decision makers
Which of the following was identified by Leigh Thompson as one of several threats to
team creativity?
a) Idea generation through brainstorming
b) Downward norm setting
c) Individual blocking
d) ‘Window Dressing’
Which term compares an organization’s processes with the best practices to be found in
its industry or others?
a) Benchmark
b) Performance
c) Value proposition
d) Bias
In this stage of operational effectiveness, organizations use core capabilities residing in
the operations area to obtain a sustainable competitive advantage.
a) Stage 1, internally supportive
b) Stage 2, externally neutral
c) Stage 3, internally supportive
d) Stage 4, externally supportive
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
Which of the following statements is FALSE?
a) ISO is a strictly European standard
b) ISO 9000 and ISO 14000 are two of the best known ISO standards
c) ISO 14000 has been updated in December 2008 and is known as ISO 14000:2008
d) Over 630,000 organizations in 152 countries have implemented ISO standards
Which business strategy waits for the product to become fairly standardized and is
demanded in large volumes?
a) First-to-market
b) Cost minimization or late-to-market
c) Second-to-market
d) Market Segmentation
The __________ offers a systematic way to view and analyze process flows.
a) Optimized Production Technology (OPT)
b) Pull system
c) Theory of constraints
d) Progression theory
The set of all project activities graphically interrelated through precedence relationships
is known as a/an:
a) Activity
b) Event
c) Network
d) Path
A diagram where the physical flows of the parts are mapped onto the shop floor is
referred to as muda.
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
Organizations that process natural or basic resources as raw materials or other essential
inputs to obtain their outputs will locate near their resources if one of the following
conditions holds:
a) High economies of scale exist for the product
b) The raw material can be shipped long distance before being processed
c) There is a large loss in size or weight during processing.
d) Both A and C
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
Among the best-known companies that use customer satisfaction surveys to evaluate
service quality in various industries is:
a) J.D. Power and Associates
b) McDonald’s
c) American Express
d) Alaska Airlines
Takt time is calculated as
a) Demand volume divided by customer required volume
b) Customer required volume divided by available work time
c) Available work time divided by customer required volume
d) Available work time divided by demand volume
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
Which of the following is NOT a direct benefit of lean?
a) Cost savings
b) Uncovering problems
c) Improved financial investments
d) Revenue increases
Which one of the following perceptual measures corresponds to a company that is in
the internally supportive 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
The amount of flexibility the project manager has in terms of starting and completing
an activity is referred to as its:
a) Slack
b) Float
c) Flex
d) Both A and B
Which of the following terms provides the basis for the project schedule, often
formatted as a project Gantt chart?
a) Critical path
b) Work breakdown structure
c) Float
d) Earned value
Among the reasons for the growth in project operations we find:
a) People have more leisure time to follow and participate in projects
b) More sophisticated technology has increased public awareness of project operations
c) More customization for suppliers makes it important to meet their needs
d) Both A and B
3PL companies:
a) Offer their products in a most efficient manner
b) Are also known as third-place location firms
c) Have chosen to outsource at least portions of their supply chain management
function
d) Provide services including handling product distribution and returns, receiving
materials and managing warehouses
What term describes the execution of business transactions in a paperless environment,
primarily through the Internet?
a) E-business
b) Electronic data interchange
c) Electronic commerce
d) Bar coding
The idea of authorizing materials for production only if there is a need for them
originated the materials management system known as ________.
Organizations such as makers of greeting cards, of summer or winter products and of
fireworks face a cyclic difficulty referred to as _________.
In order to claim status as a Six Sigma Black Belt, it has become customary for
individuals to undergo a process of ________.
Both PERT and CPM are based on variations of the __________ chart?
A type of output that is substantially different from products and other types of services
is that of knowledge or _______; the more they are used, the more valuable they
become.
When a project cost, schedule, or time variance is significant, the project manager must
identify (or at least try to do so) an __________ cause for the variance so that the
proper remedy can be used to keep it from recurring.