OM-Ex1-Prct (Clean)(1)

Operations Management Practice Exam I (M. Diaby) Choose the best answer to the following questions. . 1. Reasons to study operations management include: A) studying how people organize themselves for productive enterprise. B) knowing how goods and services are consumed. C) understanding what human resource managers do. D) learning about a costly part of the enterprise. E) A and D 2. The "Father of Scientific Management" is: A) Henry Ford. B) Frederick W. Taylor. C) W. Edwards Deming. D) Frank Gilbreth E) just a figure of speech, not a reference to a person. 3. What is a global network of organizations and activities that supply a firm with goods and services? A) supply tree B) provider network C) supply chain D) vendor network E) vendor tree 4. Gibson Valves produces cast bronze valves on an assembly line. If 1600 valves are produced in an 8- hour shift, the productivity of the line is A) 1600 valves/hr B) 200 valves/hr C) 80 valves/hr D) 40 valves/hr E) 2 valves/hr 5. Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is increased by 10%, it would then be: A) 180 valves/hr. B) 200 valves/hr. C) 220 valves/hr. D) 880 valves/hr. E) 1760 valves/hr. 6. Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labor productivity will increase by: A) 10%. B) 20%. C) 25%. D) 40%. E) 50%.

2 7. Which of the following nets the largest productivity improvement? A) increase output 15% B) decrease input 15% C) increase both output and input by 5% D) increase output 10%, decrease input 3% E) decrease input 10%, increase output 3% 8. Which of the following represents a reason for globalizing operations? A) to improve the supply chain B) to improve operations C) to expand a product's life cycle D) to attract and retain global talent E) all of the above 9. Which of the following statements is true? A) Corporate mission is shaped by functional strategies. B) Corporate strategy is shaped by functional strategies. C) Functional strategies are shaped by corporate strategy. D) External conditions are shaped by corporate mission. E) Functional area missions are merged to become the organizational mission. 10. Which of the following is LEAST likely to be a low-cost leadership competitive advantage? A) low overhead B) effective capacity use C) inventory management D) broad product line E) mass production 11. The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is: A) sensory response. B) time-based competition. C) differentiation. D) flexible response. E) experience differentiation. 12. Standardization is an appropriate strategy in which stage of the product life cycle? A) introduction B) growth C) maturity D) decline E) retirement 13. A SWOT analysis determines: A) internal strengths and weaknesses and internal opportunities and threats. B) internal strengths and weaknesses and external opportunities and threats. C) external strengths and weaknesses and internal opportunities and threats. D) external strengths and weaknesses and external opportunities and threats. E) internal strengths and opportunities and external weaknesses and threats.

4 Figure 1 20. Refer to Figure 1. The EV of Node 5 is A) 210,000 B) 90,000 C) 120,000 D) 300,000 E) -400,000 21. Refer to Figure 1. The EV of Node 3 is A) 90,000 B) 89,000 C) -15,000 D) 96,500 E) -135,000 22. Which of the following products is most likely made in a job shop environment? A) graphite pencils B) personal computers C) cigarettes D) McDonald's hamburgers E) custom furniture 1 2 3 4 5 6 7 8 .6 .4 .7 .3 .7 .3 .7 .3 .7 .3 300,000 -400,000 140,000 -5,000 1,200,000 -700,000 75,000 -100,000 0

5 23. A continuous process is commonly used to produce A) high volume, high variety products B) low volume, high variety products C) high volume, low variety products D) low variety products at either high or low volume E) high volume products of either high or low variety 24. The Training Facilities (computer lab equipment and space) of the Academic Computing Center was designed to provide training sessions to 150 students per week using five trainers. In order to avoid "stressing" the system, it was decided that training would be provided to only 120 students per week. The theoretical utilization of the training facilities is A) 190 students B) 90% C) 80% D) 125% E) 9000 students 25. The Training Facilities (computer lab equipment and space) of the Academic Computing Center was designed to provide training sessions to 1800 students per semester. If the theoretical utilization of the facility is 90 percent and the number of students who got trained during a particular semester is 1500, the efficiency of the system during the semester was A) 92.6% B) 1620 students C) 1350 students D) 90% E) 75% 26. DuLarge Fabricators wants to increase capacity by adding a new machine (Machine A). The fixed costs associated with this machine are $70,000 and the variable cost is $15 per unit of product. The revenue is $22 per unit of product. The breakeven quantity for Machine A is A) $70,000 B) 70,000 units C) 10,000 units D) $10,000 E) cannot be calculated from the information provided 27. DuLarge Fabricators wants to increase capacity by adding a new machine. They are considering proposals from two vendors, A and B. The fixed costs associated with Machine A are $90,000 and for Machine B, $70,000. The variable cost for Machine A is $6 per unit of product and for B, $8. The revenue is $22 per unit of product. The crossover point between Machine A and Machine B is A) 10,000 units, with A more profitable at low volumes B) 10,000 dollars with A more profitable at low volumes C) 10,000 units with B more profitable at low volumes D) 13,333 units for A and 8750 units for B E) none of the above

7 A NSWER K EY Question # Answer 1 E 2 B 3 C 4 B 5 C 6 C 7 B 8 E 9 C 10 D 11 E 12 C 13 B 14 E 15 A 16 E 17 B 18 A 19 C 20 B 21 D 22 E 23 C 24 C 25 A 26 C 27 C 28 D 29 A 30 C