Possible Exam 1 questions OM 300

1. An operations manager is NOT likely to be involved in a. The design of goods and services to satisfy customers' wants and needs b. The quality of goods and services to satisfy customers' wants and needs. c. The identification of customers' wants and needs d. Work scheduling to meet the due dates promised to customers e. Maintenance schedules 2. Cost cutting in international operations can take place because of… a. Lower taxes and tariffs b. Lower wage scales c. Lower indirect labor costs d. Less stringent regulations e. All of the above 3. Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a a. Short-range time horizon b. Medium-range time horizon c. Long-range time horizon d. Naïve method because there is no data history e. All of the above 4. Operations management is applicable a. Mostly to the service sector b. To services exclusively c. Mostly to the manufacturing sector d. To all firms, whether manufacturing and service e. To the manufacturing sector exclusively 5. Reducing the complexity of a product and improving its maintainability for use are activities of a. Product lifecycle management (PLM) b. Product-by-value-analysis c. Manufacturability and value engineering d. Organizing for product development e. Design for destruction (DFD) 6. The analysis tool that helps determine what products to develop, and by means of what strategy by listing products in descending order of their individual dollar contribution to the firm is a a. Decision tree analysis b. Pareto analysis c. Break-even analysis d. Product-by-value analysis e. Product life cycle analysis 7. The five elements in the management process are a. Plan, direct, update, lead, and supervise

b. Accounting/finance, marketing, operations, and management c. Organize, plan, control, staff, manage d. Plan, organize, staff, lead, and control e. Plan, lead, organize, manage, and control 8. The ten critical decisions of operations management include a. Finance/accounting b. Advertising c. Process and capacity design d. Pricing e. All of the above 9. When done correctly, mass customization a. Increases pressure on supply chain performance b. Helps eliminate the guesswork that comes with sales forecasting c. Drives down inventories d. Increases pressure on scheduling e. All of the above 10. Which of the following is false regarding repetitive processes? a. They use modules b. They allow easy switching from one product to the other c. They are classic assembly lines d. They have more structure and less flexibility than a job shop layout e. They include the assembly of basically all automobiles 11. Which of the following is not among the eight components of revenue and volume for a service firm? a. Quality of the management b. Shipment cost of finished goods c. Purchasing power of the customer-drawing area d. Uniqueness of the firm's and its competitor's locations e. Competition in the area 12. Big Al's Carwash cleaned 5580 cars last month, consuming the following resources : • Labor: 77 hours at $15 • Solvent: 68 gallons at $7 per gallon • They also financed equipment lease of $822 per year but they pay a portion of their lease each month • What was their multifactor productivity last month?

b. Internal strengths and weaknesses and external opportunities and threats c. External strengths and weaknesses and external opportunities and threats 22. The fundamental purpose of an organization's mission statement is to: a. Define the functional areas required by the organization b. Create a good human relations climate in the organization c. Generate good public relations for the organization d. Define the operational structure of the organization e. Define the organization's purpose in society 23. Advantages of outsourcing do NOT include a. Maintaining a focus on core competencies b. Potential creation of future competition c. Cost savings d. Accessing outside technology e. Gaining outside expertise 24. Forecasting is especially critical at the a. Maturity stage b. Decline stage c. Introduction stage d. Growth stage 25. A business should never outsource a. Core competencies b. High profit operations c. Payroll d. Advertising 26. The critical path for the network activities shown below is A-D-E with duration; 13 Assembly Duration immediate processor A 4 ____ B 2 A C 7 ____ D 4 A E 5 B,C,D

27. The phases of project management are: a. Planning, programming, and budgeting b. Planning, organizing, staffing, leading, and controlling c. Different for manufacturing projects than for service projects d. Planning, scheduling, and controlling 28. Two critical path activities are candidates for crashing on a CPM network. Activity details are in the table below. To cut one day from the project's duration, activity one should be crashed first, adding $400 to project cost 29. The length of time an activity can be delayed without delaying the entire project is known as ____ a. The expected activity time b. The most likely activity time c. The pessimistic activity time d. The slack time 30. The primary purpose of the mean absolute deviation (MAD) in forecasting is to: a. Estimate the trend line b. Measure forecast accuracy c. Seasonally adjust the forecast d. Remove random variations 31. The three major types of forecasts used by organizations in planning future operations are: a. Strategic, tactical, and operational b. Economic, technological, and demand c. Exponential smoothing, Delphi, and regression d. Causal, time-series, and seasonal e. Department, organizational, and territorial 32. Which of the following most requires long-range forecasting (as opposed to short-range or medium-range forecasting) for its planning purpose? a. Job scheduling b. Production levels c. Cash budgeting d. Capital expenditures e. Purchasing 33. Short-range forecasts tends to be ____ longer-range forecasts a. Be less accurate than b. Be more accurate than c. Have about the same level of accuracy as d. Employ the same methodologies as e. Deal with more comprehensive issues than

40. A forecasting method has produced the following over the past five months. What is the mean absolute deviation. Month Forecast Actual Jan 20 8 Feb 2 10 March 21 4 April 3 14 May 23 6 41. What term is given to those individuals with a vested interest in organization, including customers, distributors, suppliers, owners, lenders, employees, and community members? a. Alumni b. Investors c. investors d. Stockholders e. stakeholders 42. Which of the following are the primary functions of all organizations a. Production/operations, marketing, and human resources b. Marketing, human resources, and finance/accounting c. Sales, quality control, and production/operations d. Marketing, production/operations, and finance/accounting e. Research and development, finance/accounting, and purchasing 43. A new business begins to forecast and they do not have much data to work with, what forecasting method should be used? a. Quantitive approaches b. Qualitative approaches

44. Coach Saban has asked you to help the UA football team this season. He is trying a longer distance trial but feels badly about yelling at the players with their running speeds drops below his expectations. You have studied the practice conditions and found that the temperature impacts the players speed using this data: Field temp. Average 440 yd pace 80 46 sec 85 50 sec 90 57 sec 95 62 sec 100 68 sec It is forecasted to be 104.2 degrees on the field where the players run their 440 yd trials tomorrow. What average speed should Coach Saban expect? 45. What is the forecast for may using a four-month moving average? Jan Feb Mar April May June 7 20 36 30 57 49 46. Given an actual demand this period of 707, forecast for this period of 561, and an alpha of 0.12, what would be the forecast for the next period using exponential smoothing?

49. John's House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5.0 to the previous month's demand, 3.0 to demand two months ago, and 1.0 to demand three months ago. If sales amounted to 1890 pancakes in May, 1946 pancakes in June, and 2395 pancakes in July, what should be the forecast for August? forecast May 1890 June 1946 July 2395 Weights Previous month 5.0 2 months ago 3.0 3 months ago 1.0 50. Lori Cook produces "final exam care packages" for resale by her sorority. She is currently working a total of 5 hours per day to produce 120 care packages. Lori thinks that by redesigning the package, she can increase her local productivity to 138 care packages per day. What will be the percent increase in productivity if Lori makes the change? Enter answer as decimal

51. BONUS: what are the ABC's of good spreadsheet modeling?