MGSC 395 CORRECT EXAMS ANSWERS AND
QUESTIONS SET A+
✔✔Measure for consistent quality - ✔✔percent errors in bill information and percent
errors in posting payments
✔✔Measure for delivery speed - ✔✔lead time to process merchant payments
✔✔Measure for volume flexibility - ✔✔utilization
✔✔Productivity - ✔✔the value of outputs (services and products) produced divided by
the values of input resources (wages, costs of equipment, and so on)
✔✔Two principles to keep in mind - ✔✔(1) each part of an organization, not just the
operations function, must design and operate processes that are part of a supply chain
and deal with quality, technology, and staffing issues. (2) each function of an
organization has its own identity and yet is connected with operations through shared
processes
✔✔Break even analysis - ✔✔helps the manager identify how much change in volume or
demand is necessary before a second alternative becomes better than the first
alternative
✔✔The preference matrix - ✔✔helps a manager deal with multiple criteria that cannot
be evaluated with a single measure of merit such as total profit or cost
✔✔Decision theory - ✔✔helps the manager choose the best alternative when outcomes
are uncertain
✔✔Break even quantity - ✔✔the volume at which total revenues equal total costs
✔✔Break even analysis - ✔✔the use of break even quantity; it can be used to compare
processes by finding the volume at which two different processes have equal total costs
, ✔✔Variable costs (cQ) - ✔✔the portion of the total cost that varies directly with volume
of output
✔✔Fixed cost (F) - ✔✔the portion of the total cost that remains constant regardless of
changes in levels of output
✔✔Total cost = - ✔✔F + cQ
✔✔Total revenue = - ✔✔pQ
✔✔Breakeven quantity - ✔✔Q = F / p - c
✔✔Sensitivity analysis - ✔✔a technique for systematically changing parameters in a
model to determine the effects of such changes
✔✔Project management - ✔✔a systemize, phased approach to defining, organizing,
planning, monitoring, and controlling projects
✔✔Program - ✔✔an independent set of projects that have a common strategic purpose
✔✔The roles that the project manager must play - ✔✔facilitator, communicator, and
decision maker
✔✔Characteristics that should be considered when selecting the project team -
✔✔technical competence, sensitivity, and dedication
✔✔Planning projects involves five steps - ✔✔(1) defining the work breakdown structure,
(2) diagramming the network, (3) developing the schedule, (4) analyzing cost-time
trade-offs, and (5) assessing risks
✔✔Work breakdown structure (WBS) - ✔✔a statement of all work that has to be
completed
✔✔Activity - ✔✔the smallest unit of work effort consuming both time and resources that
the project manager can schedule and control
✔✔Activity ownership - ✔✔avoids confusion in the execution of activities and assigns
responsibility for timely completion
✔✔Network diagram - ✔✔a network planning method, designed to depict the
relationships between activities that consists of nodes (circles), and arcs (arrows)
✔✔Critical path method (CPM) - ✔✔a network planning method developed in the 1950s
as a means of scheduling maintenance shutdowns at chemical-processing plants
QUESTIONS SET A+
✔✔Measure for consistent quality - ✔✔percent errors in bill information and percent
errors in posting payments
✔✔Measure for delivery speed - ✔✔lead time to process merchant payments
✔✔Measure for volume flexibility - ✔✔utilization
✔✔Productivity - ✔✔the value of outputs (services and products) produced divided by
the values of input resources (wages, costs of equipment, and so on)
✔✔Two principles to keep in mind - ✔✔(1) each part of an organization, not just the
operations function, must design and operate processes that are part of a supply chain
and deal with quality, technology, and staffing issues. (2) each function of an
organization has its own identity and yet is connected with operations through shared
processes
✔✔Break even analysis - ✔✔helps the manager identify how much change in volume or
demand is necessary before a second alternative becomes better than the first
alternative
✔✔The preference matrix - ✔✔helps a manager deal with multiple criteria that cannot
be evaluated with a single measure of merit such as total profit or cost
✔✔Decision theory - ✔✔helps the manager choose the best alternative when outcomes
are uncertain
✔✔Break even quantity - ✔✔the volume at which total revenues equal total costs
✔✔Break even analysis - ✔✔the use of break even quantity; it can be used to compare
processes by finding the volume at which two different processes have equal total costs
, ✔✔Variable costs (cQ) - ✔✔the portion of the total cost that varies directly with volume
of output
✔✔Fixed cost (F) - ✔✔the portion of the total cost that remains constant regardless of
changes in levels of output
✔✔Total cost = - ✔✔F + cQ
✔✔Total revenue = - ✔✔pQ
✔✔Breakeven quantity - ✔✔Q = F / p - c
✔✔Sensitivity analysis - ✔✔a technique for systematically changing parameters in a
model to determine the effects of such changes
✔✔Project management - ✔✔a systemize, phased approach to defining, organizing,
planning, monitoring, and controlling projects
✔✔Program - ✔✔an independent set of projects that have a common strategic purpose
✔✔The roles that the project manager must play - ✔✔facilitator, communicator, and
decision maker
✔✔Characteristics that should be considered when selecting the project team -
✔✔technical competence, sensitivity, and dedication
✔✔Planning projects involves five steps - ✔✔(1) defining the work breakdown structure,
(2) diagramming the network, (3) developing the schedule, (4) analyzing cost-time
trade-offs, and (5) assessing risks
✔✔Work breakdown structure (WBS) - ✔✔a statement of all work that has to be
completed
✔✔Activity - ✔✔the smallest unit of work effort consuming both time and resources that
the project manager can schedule and control
✔✔Activity ownership - ✔✔avoids confusion in the execution of activities and assigns
responsibility for timely completion
✔✔Network diagram - ✔✔a network planning method, designed to depict the
relationships between activities that consists of nodes (circles), and arcs (arrows)
✔✔Critical path method (CPM) - ✔✔a network planning method developed in the 1950s
as a means of scheduling maintenance shutdowns at chemical-processing plants
