OPMA 317 MIDTERM QUESTIONS WITH VERIFIED
ANSWERS
Process flow chart - Answers - a diagram outlining the process from start to finish to
compete a target goals, shows precedents, tasks, and time
Processing time - Answers - time to produce an order
Throughput time - Answers - the total timer required to complete a process
How does knowing capacity help (3) - Answers - customer order promising (don't over
promise), pricing/profit per unit (need to satisfy a return), inventory supplies (track
required raw materials for operation)
Bottleneck processing time - Answers - is equal to the the cycle time for the entire
process
Cycle time - Answers - the time between the completion of two consecutive final steps
in a process
Bottleneck - Answers - the slowest part of the a process that constrains capacity
Capacity - Answers - the maximum production output possible in a time period
Capacity formula - Answers - = Total Time/Cycle Time
Capacity calculation with warm-up - Answers - must delay the start time by the warm up
period then determine the capacity over the post warm up period
Offering a discount - Answers - only offer a discount if it can help the bottleneck
because the only "savings" is slack time
Risks considered in OPMA - Answers - legal, financial, organizational, and technical
Make-to-order - Answers - customer specific production that is personalized and
delivered upon ordering
Assemble-to-order - Answers - half outsourcing to standardize production and half
customer specific production, includes "postponement"
Make-to-stock - Answers - outsource entire process to have fully standardized
production
, Consideration for increasing capacity (2) - Answers - magnitude of demand and
incremental cash flow, increasing capacity also creates a new bottleneck
What is true about cycle time - Answers - it is the process time for the slowest step and
it is the time between completion of two consecutive orders
OPMA Majors % - Answers - 8.6%, third highest concentration
Operations and supply chain management - Answers - design, operation, and
improvement of the systems that create and deliver goods and services. Follows
source, make, and deliver
Operations - Answers - manufacturing and service processes that use an organization's
resources to transform inputs into outputs
Supply chain management - Answers - processes that move information and material to
and from the operations processes where transformation occurs
S&O transformation examples - Answers - physical (manufacturing), locational
(logistics), physiological (healthcare), informational (telecom)
Cross functional integration - Answers - financing the capital expenditures, budgeting,
and accounting for the related expenses, human resource considerations, information
system requirements, marketing and public relations, legal, etc.
Triple bottom line - Answers - increasing focus on economic prosperity (profit),
environmental stewardship (planet), and social responsibility (people)
OPMA addressing the triple bottom line - Answers - profit through efficiency, planet
through logistics, and people through suppliers. Operations and SCM has the largest
direct impact
Why would a supply chain focus on outsourcing - Answers - time to market (speed),
materials, employee knowledge/experience, and to secure different segment sales
Outside factors for linking with customers and suppliers transformation process -
Answers - purchasing, marketing, finance, human resources
Factors enabling global competition - Answers - technology (info./comm.), transportation
infrastructure, newly industrialized countries, and free trade
OMs contributions to society - Answers - higher standard of living (higher productivity =
lower price goods = more discretionary income), better quality of goods and services
(six sigma), sustainable growth (environmentally friendly), and improved working
conditions (automation of mundane tasks)
ANSWERS
Process flow chart - Answers - a diagram outlining the process from start to finish to
compete a target goals, shows precedents, tasks, and time
Processing time - Answers - time to produce an order
Throughput time - Answers - the total timer required to complete a process
How does knowing capacity help (3) - Answers - customer order promising (don't over
promise), pricing/profit per unit (need to satisfy a return), inventory supplies (track
required raw materials for operation)
Bottleneck processing time - Answers - is equal to the the cycle time for the entire
process
Cycle time - Answers - the time between the completion of two consecutive final steps
in a process
Bottleneck - Answers - the slowest part of the a process that constrains capacity
Capacity - Answers - the maximum production output possible in a time period
Capacity formula - Answers - = Total Time/Cycle Time
Capacity calculation with warm-up - Answers - must delay the start time by the warm up
period then determine the capacity over the post warm up period
Offering a discount - Answers - only offer a discount if it can help the bottleneck
because the only "savings" is slack time
Risks considered in OPMA - Answers - legal, financial, organizational, and technical
Make-to-order - Answers - customer specific production that is personalized and
delivered upon ordering
Assemble-to-order - Answers - half outsourcing to standardize production and half
customer specific production, includes "postponement"
Make-to-stock - Answers - outsource entire process to have fully standardized
production
, Consideration for increasing capacity (2) - Answers - magnitude of demand and
incremental cash flow, increasing capacity also creates a new bottleneck
What is true about cycle time - Answers - it is the process time for the slowest step and
it is the time between completion of two consecutive orders
OPMA Majors % - Answers - 8.6%, third highest concentration
Operations and supply chain management - Answers - design, operation, and
improvement of the systems that create and deliver goods and services. Follows
source, make, and deliver
Operations - Answers - manufacturing and service processes that use an organization's
resources to transform inputs into outputs
Supply chain management - Answers - processes that move information and material to
and from the operations processes where transformation occurs
S&O transformation examples - Answers - physical (manufacturing), locational
(logistics), physiological (healthcare), informational (telecom)
Cross functional integration - Answers - financing the capital expenditures, budgeting,
and accounting for the related expenses, human resource considerations, information
system requirements, marketing and public relations, legal, etc.
Triple bottom line - Answers - increasing focus on economic prosperity (profit),
environmental stewardship (planet), and social responsibility (people)
OPMA addressing the triple bottom line - Answers - profit through efficiency, planet
through logistics, and people through suppliers. Operations and SCM has the largest
direct impact
Why would a supply chain focus on outsourcing - Answers - time to market (speed),
materials, employee knowledge/experience, and to secure different segment sales
Outside factors for linking with customers and suppliers transformation process -
Answers - purchasing, marketing, finance, human resources
Factors enabling global competition - Answers - technology (info./comm.), transportation
infrastructure, newly industrialized countries, and free trade
OMs contributions to society - Answers - higher standard of living (higher productivity =
lower price goods = more discretionary income), better quality of goods and services
(six sigma), sustainable growth (environmentally friendly), and improved working
conditions (automation of mundane tasks)
