OPERATIONS MANAGEMENT EXAM FULLY SOLVED #12.

OPERATIONS MANAGEMENT EXAM FULLY SOLVED #12
1. The master schedule should be frozen inside the production lead-time.
True False - correct answer True

2. Process redesign tends to be cross-functional in nature and requires a complete
overhaul of work methods, flows, and information systems.
True False - correct answer True

3. "Lean Operations" refers to the task of reducing the defect rates in a firm's products
or services.
True False - correct answer True

4. A bill of materials can be coupled with a bill of labor if MRP systems are to be used in
service industries.
True False - correct answer True

5. The process view provides a basis for viewing an entire business as a system of
interconnected processes.
True False - correct answer True

6. Product design supports the business strategy.
True False - correct answer True

7. It is bad to have a negative cash-to-cash cycle in which the firm receives payment
before it pays its suppliers.
True False - correct answer False

8. Market pull is the best way to introduce new products.
True False - correct answer False

9. Misalignments between operations and product design can occur in technology,
infrastructure, and rewards systems.
True False - correct answer True

10. If there are multiple resources that process each transaction, then the process
capacity is the sum of all the individual capacities of the resources.
True False - correct answer False

11. ISO 9000 requires that a new-product development process be defined and followed
by a company.
True False - correct answer True

12. MRP systems work better in a line flow system compared to a job shop.
True False - correct answer False

,13. A process will generally have at least one bottleneck.
True False - correct answer True

14. In supply chain improvement, it is often necessary to reduce the setup time of
equipment dramatically so that smaller lots of the product can be economically
produced.
True False - correct answer True

15. Delivery has three performance measures: on-time delivery, fill rate, and unit cost.
True False - correct answer False

16. One of the major benefits of concurrent engineering is the reduction in time to
complete the new-product development process.
True False - correct answer True

17. Forecasting demand in MRP Systems is based on the past demand patterns for
components.
True False - correct answer False

18. The Economic Order Quantity model is extremely useful while making decisions on
order quantities in MRP systems.
True False - correct answer False

19. In MRP systems, inventories are managed according to their dollar usage values
(i.e., high dollar usage inventories are more carefully managed compared to low dollar
usage inventories).
True False - correct answer False

20. Modular design offers new opportunities for product and process design.
True False - correct answer True

21. Major product redesign is often needed to make infrastructure improvements in the
supply chain.
True False - correct answer False

22. The master schedule is prepared for product families.
True False - correct answer False

23. The transformation view of the Operations function provides a unified approach for
studying the manufacturing and service industries.
True False - correct answer False

24. Final consumers can be found farthest downstream in the supply chain.
True False - correct answer True

, 25. The first step in Quality Function Development is to determine the customer
attributes. The second step in QFD is to translate the customer attributes into target
values.
True False - correct answer True

26. MRP is a type of pull system.
True False - correct answer False

27. The objective of structural and infrastructure changes is the same: To remove
sources of uncertainty, to reduce replenishment time, and to reduce total cost of
supplying the market.
True False - correct answer True

28. Best practices in operations are best for all organizations.
True False - correct answer Falase

29. Order launching MRP systems are also known as Type II MRP systems.
True False - correct answer False

30. A process view emphasizes that it is important for a business to function as
independent silos.
True False - correct answer False

31. Demand chain management tries to match supply and demand.
True False - correct answer False

32. A line of visibility separates the parts of a service that come in direct contact with
customers from those that do not.
True False - correct answer True

33. When a company uses an ERP system, the different functional areas of the
business will share a common database.
True False - correct answer True

34. As price increases and benefits remain constant, the value of a product increases.
True False - correct answer False

35. With the technology push view of new-product introduction, technology and the
market equally determine which products a firm should make.
True False - correct answer False

36. The four decision areas in operations management are:
A. Planning, technology, inventory, and control
B. Process, quality, capacity, and inventory
C. Process, quality, technology, and capacity
D. None of these - correct answer B. Process, quality, capacity, and inventory