Business Major Field Test UPDATED
ACTUAL Questions and CORRECT
Answers
Operations - CORRECT ANSWER✔✔- The part of a business organization that is
responsible for producing goods or services.
Operations Management - CORRECT ANSWER✔✔- The management of systems or
processes that create goods and/or provide services.
Supply Chain - CORRECT ANSWER✔✔- A sequence of activities and organizations
involved in producing and delivering a good or service
Supply Chain List - CORRECT ANSWER✔✔- Supplier's Suppliers
Direct Suppliers
Producers
Distributor
Final Customer
System Design - CORRECT ANSWER✔✔- -Capacity
-Facility Location
-Facility layout
-Product and service planning
-Acquisition and placement of equipment
System Operation - CORRECT ANSWER✔✔- -Management of personnel
-Inventory management and control
-Scheduling
-Project management
-Quality assurance
,Sustainability - CORRECT ANSWER✔✔- Using resources in ways that do not harm
ecological systems that support human existence.
Sustainability measures often go beyond traditional environmental and economic measures to
include measures that incorporate social criteria in decision making
Business Compete Using Operations - CORRECT ANSWER✔✔- 1. Product and service
design
2. Cost
3. Location
4. Quality
5. Quick Response
6. Flexibility
7. Inventory Management
8. Supply chain management
9. Service
10. Managers and Workers
Productivity - CORRECT ANSWER✔✔- A measure of the effective use of resources, usually
expressed as the ratio of output to input
Productivity measures are useful for - CORRECT ANSWER✔✔- Tracking an operating
unit's performance over time
Judging the performance of an entire industry or country
High Productivity is linked to higher standards of living - CORRECT ANSWER✔✔- As an
economy replaces manufacturing jobs with lower productivity service jobs, it is more
difficult to maintain high standards of living
Higher productivity relative to the competition leads to competitive advantage in the
marketplace - CORRECT ANSWER✔✔- pricing and pricing and profit effects
,Design Capacity - CORRECT ANSWER✔✔- the maximum output rate or service capacity
an operation, process, or facility is designed for
Effective Capacity - CORRECT ANSWER✔✔- Design capacity minus allowances such as
personal time and maintenance
Actual Output - CORRECT ANSWER✔✔- -The rate of output actually achieved
-If cannot exceed effective capacity
Efficiency - CORRECT ANSWER✔✔- Actual Output/Effective Capacity
Utilization - CORRECT ANSWER✔✔- Actual Output/Design capacity
Strategic Capacity Planning - CORRECT ANSWER✔✔- To achieve a match between the
long-term supply capabilities of an organization and the predicted level of long-term demand
Key Questions for Capacity Planning - CORRECT ANSWER✔✔- -What kind of Capacity is
needed?
-How much is needed to match demand?
-When is it needed?
Forecasting Capacity Requirements - CORRECT ANSWER✔✔- -Long-term considerations
relate to overall level of capacity requirements
-Short-term considerations relate to probable variations in capacity requirements
Economies of Scale - CORRECT ANSWER✔✔- If output rate is less than the optimal level,
increasing the output rate results in decreasing average per unit costs
Diseconomies of Scale - CORRECT ANSWER✔✔- If the output rate is more than the
optimal level, increasing the output rate results in increasing average per unit costs
, Insourcing vs. Outsourcing - CORRECT ANSWER✔✔- Once capacity requirements are
determined, the organization must decide whether to produce a good or service itself or
outsource
-Factors to consider: Available capacity, expertise, quality considerations, the nature of
demand, cost, and risks
Constraint - CORRECT ANSWER✔✔- Something that limits the performance of a process
or system in achieving its goals
Ex. Market, Resource, Financial
Resolving Constraint Issues - CORRECT ANSWER✔✔- 1. Identify the most pressing
constraint
2. Change the operation to achieve maximum benefit, given the constraint
3. Make sure other portions of the process are supportive of the constraint
4. Explore and evaluate ways to overcome the constraint
5. Repeat the process until the constraint levels are at acceptable levels
Job Shop - CORRECT ANSWER✔✔- Customized goods or services
Advantages: Able to handle a wide variety of work
Disadvantages: Slow, high cost per unit, complex planning and scheduling
Batch - CORRECT ANSWER✔✔- Semi-standardized goods or services
Advantages: Flexibility; easy to add or change products or services
Disadvantages Moderate cost per unit, moderate scheduling complexity
Repetitive Assembly - CORRECT ANSWER✔✔- Standardized goods or services
Advantages: Low unit cost, high volume, efficient
ACTUAL Questions and CORRECT
Answers
Operations - CORRECT ANSWER✔✔- The part of a business organization that is
responsible for producing goods or services.
Operations Management - CORRECT ANSWER✔✔- The management of systems or
processes that create goods and/or provide services.
Supply Chain - CORRECT ANSWER✔✔- A sequence of activities and organizations
involved in producing and delivering a good or service
Supply Chain List - CORRECT ANSWER✔✔- Supplier's Suppliers
Direct Suppliers
Producers
Distributor
Final Customer
System Design - CORRECT ANSWER✔✔- -Capacity
-Facility Location
-Facility layout
-Product and service planning
-Acquisition and placement of equipment
System Operation - CORRECT ANSWER✔✔- -Management of personnel
-Inventory management and control
-Scheduling
-Project management
-Quality assurance
,Sustainability - CORRECT ANSWER✔✔- Using resources in ways that do not harm
ecological systems that support human existence.
Sustainability measures often go beyond traditional environmental and economic measures to
include measures that incorporate social criteria in decision making
Business Compete Using Operations - CORRECT ANSWER✔✔- 1. Product and service
design
2. Cost
3. Location
4. Quality
5. Quick Response
6. Flexibility
7. Inventory Management
8. Supply chain management
9. Service
10. Managers and Workers
Productivity - CORRECT ANSWER✔✔- A measure of the effective use of resources, usually
expressed as the ratio of output to input
Productivity measures are useful for - CORRECT ANSWER✔✔- Tracking an operating
unit's performance over time
Judging the performance of an entire industry or country
High Productivity is linked to higher standards of living - CORRECT ANSWER✔✔- As an
economy replaces manufacturing jobs with lower productivity service jobs, it is more
difficult to maintain high standards of living
Higher productivity relative to the competition leads to competitive advantage in the
marketplace - CORRECT ANSWER✔✔- pricing and pricing and profit effects
,Design Capacity - CORRECT ANSWER✔✔- the maximum output rate or service capacity
an operation, process, or facility is designed for
Effective Capacity - CORRECT ANSWER✔✔- Design capacity minus allowances such as
personal time and maintenance
Actual Output - CORRECT ANSWER✔✔- -The rate of output actually achieved
-If cannot exceed effective capacity
Efficiency - CORRECT ANSWER✔✔- Actual Output/Effective Capacity
Utilization - CORRECT ANSWER✔✔- Actual Output/Design capacity
Strategic Capacity Planning - CORRECT ANSWER✔✔- To achieve a match between the
long-term supply capabilities of an organization and the predicted level of long-term demand
Key Questions for Capacity Planning - CORRECT ANSWER✔✔- -What kind of Capacity is
needed?
-How much is needed to match demand?
-When is it needed?
Forecasting Capacity Requirements - CORRECT ANSWER✔✔- -Long-term considerations
relate to overall level of capacity requirements
-Short-term considerations relate to probable variations in capacity requirements
Economies of Scale - CORRECT ANSWER✔✔- If output rate is less than the optimal level,
increasing the output rate results in decreasing average per unit costs
Diseconomies of Scale - CORRECT ANSWER✔✔- If the output rate is more than the
optimal level, increasing the output rate results in increasing average per unit costs
, Insourcing vs. Outsourcing - CORRECT ANSWER✔✔- Once capacity requirements are
determined, the organization must decide whether to produce a good or service itself or
outsource
-Factors to consider: Available capacity, expertise, quality considerations, the nature of
demand, cost, and risks
Constraint - CORRECT ANSWER✔✔- Something that limits the performance of a process
or system in achieving its goals
Ex. Market, Resource, Financial
Resolving Constraint Issues - CORRECT ANSWER✔✔- 1. Identify the most pressing
constraint
2. Change the operation to achieve maximum benefit, given the constraint
3. Make sure other portions of the process are supportive of the constraint
4. Explore and evaluate ways to overcome the constraint
5. Repeat the process until the constraint levels are at acceptable levels
Job Shop - CORRECT ANSWER✔✔- Customized goods or services
Advantages: Able to handle a wide variety of work
Disadvantages: Slow, high cost per unit, complex planning and scheduling
Batch - CORRECT ANSWER✔✔- Semi-standardized goods or services
Advantages: Flexibility; easy to add or change products or services
Disadvantages Moderate cost per unit, moderate scheduling complexity
Repetitive Assembly - CORRECT ANSWER✔✔- Standardized goods or services
Advantages: Low unit cost, high volume, efficient
