FINAL SUMMATIVE ASSESSMENT (SET A)

OMTQM
1. Which of the following would NOT typically be considered as part of a manufacturing
firm's supply chain?
A) suppliers
B) distributors
C) wholesalers
D) retailers
E) landscaping contractors
2. Among which of the following industries are purchasing costs the LOWEST percentage
of sales?
A) automobile
B) petroleum
C) restaurants
D) lumber
E) chemical
3. Which of the following is a primary supplier selection criterion for a firm pursuing a
differentiation strategy?
A) product development skills
B) cost
C) capacity
D) speed
E) flexibility
4. The three major elements of the product decision are:
A) selection, definition, and design.
B) goods, services, and hybrids.
C) strategy, tactics, and operations.
D) cost, differentiation, and speed of response.
E) legislative, judicial, and executive.
5. In which stage of the product life cycle should product strategy focus on process
modifications as the product is being "fine-tuned" for the market?
A) introduction
B) growth
C) maturity
D) decline
E) incubation
6. A product's life cycle is divided into four stages, which are:
A) introduction, growth, saturation, and maturity.
B) introduction, growth, stability, and decline.
C) introduction, maturity, saturation, and decline.
D) introduction, growth, maturity, and decline.
E) incubation, growth, maturity, and decline.
7. When should product strategy focus on forecasting capacity requirements?
A) at the introduction stage of the product life cycle
B) at the growth stage of the product life cycle
C) at the maturity stage of the product life cycle
D) at the decline stage of the product life cycle
E) at the saturation stage of the product life cycle
8. The analysis tool that lists products in descending order of their individual dollar
contribution to the firm is:
A) decision tree analysis.
B) Pareto analysis.
C) breakeven analysis.
D) product-by-value analysis.
E) product life cycle analysis.
9. Under which of the following do planning tasks associated with job assignments,
ordering, job scheduling, and dispatching typically fall?
A) short-range plans
B) intermediate-range plans
C) long-range plans
D) mission-related planning
E) strategic planning
10. Under which of the following do planning tasks associated with production planning and
budgeting, as well as setting employment, inventory, and subcontracting levels, typically
fall?
A) short-range plans
B) intermediate-range plans
C) long-range plans
D) demand options
E) strategic planning
11. Top executives tend to focus their attention on which type of forecasts?
A) short-range
B) intermediate-range
C) long-range
D) weather
E) the forecast for the next day's absentee levels
12. Which of the following would most likely fall under the scope of only an operations
manager?
A) research and development
B) new product plans
C) capital investments
D) facility location/capacity
E) setting inventory levels
13. Which of the following is the term used for intermediate-range capacity planning with a
time horizon of three to eighteen months?
A) material requirements planning
B) enterprise resource planning
C) strategic planning
D) aggregate planning
E) job scheduling
14. Which of the following represents an aggressive approach to demand management in the
service sector when demand and capacity are not particularly well matched?
A) lower resort hotel room prices on Wednesdays
B) appointments
C) reservations
D) first-come, first-served rule
E) none of the above
15. Utilization will always be lower than efficiency because:
A) effective capacity is less than design capacity.
B) effective capacity is greater than design capacity.
C) effective capacity equals design capacity.
D) expected output is less than actual output.
E) expected output is less than rated capacity.
16. Which of the following represents a common way to manage capacity in the service
sector?
A) appointments
B) reservations
C) changes in staffing levels
D) first-come, first-served service rule
E) "early bird" specials in restaurants
17. The layout approach that addresses trade-offs between space and material handling is
called the fixed-position layout.
A) True
B) False
18. The ________ layout's main objective is to equalize the task time for each station.
A) work cell
B) fixed position
C) office
D) job shop
E) product oriented
19. A hospital's layout most closely resembles which of the following?
A) product oriented
B) work cell
C) job shop
D) project
E) retail
20. What layout strategy deals with low-volume, high-variety production?
A) fixed-position layout
B) retail layout
C) warehouse layout
D) office layout
E) process-oriented layout
21. "A special arrangement of machinery and equipment to focus on production of a single
product or group of related products" describes what layout type?
A) fixed-position layout
B) intermittent production
C) job shop
D) work cell
E) warehouse layout
22. A good layout requires determining:
A) material handling equipment.
B) capacity and space requirements.
C) environment and aesthetics.
D) cost of moving between various work areas.
E) all of the above
23. Which of the statements below best describes office layout?
A) positions workers, their equipment, and spaces/offices to provide for movement of
information
B) addresses the layout requirements of large, bulky projects such as ships and buildings
C) seeks the best personnel and machine utilization in repetitive or continuous production
D) allocates shelf space and responds to customer behavior
E) deals with low-volume, high-variety production
24. Which of the following statements regarding Arnold Palmer Hospital is FALSE?
A) The hospital uses a wide range of quality management techniques.
B) The culture of quality at the hospital includes employees at all levels.
C) The hospital scores very highly in national studies of patient satisfaction.
D) The hospital's high quality is measured by low readmission rates, not patient
satisfaction.
E) The design of patient rooms, even wall colors, reflects the hospital's culture of quality.
25. Arnold Palmer Hospital uses which of the following quality management techniques?
A) Pareto charts
B) flowcharts
C) benchmarking
D) just-in-time
E) The hospital uses all of the above techniques