Operations Management, 11th Ed, William J. Stevenson, 2012
This document concentrates on chapters 3 and 4 of the operations management textbook we were using in the 2019/2020 academic year. This document concentrates on demand forecasting and competitiveness in productivity.
Which of the following is not a step for formulating an operations strategy?
Answer: A) Link the organizational goals to the operations strategy.
B) Conduct an audit to determine strengths/weaknesses of the current operations strategy.
C) Define the mission and values of the organization. ✔
D) Assess the degree of focus at each plant.
E) Segment the customers into types.
2.
Productivity is expressed as:
Answer: A) Output Input.
B) Output - Input.
C) Output * input.
D) Output/Input. ✔
E) Input/Output.
3.
Which of the following is not a key purchasing criterion?
Answer: A) Price.
B) Variety.
C) Quality.
D) Timeliness.
E) Vendor relations. ✔
4.
Time-based strategies do not focus on:
Answer: A) The time to deliver a product.
B) Maintaining quality. ✔
C) Planning time.
D) Production design time.
E) Changeover time.
5.
Canvalves Company produces cast bronze valves on an assembly line. It currently produces 800 valves each 8-hour shift. If the production is increased to 1200 valves each shift, the productivity increased by?
Answer: A) 50%. ✔
B) 33%.
C) 25%.
D) 67%.
E) 75%.
6.
Which of the following is not a major decision-making category for operations policies and action plans?
Answer: A) Facility.
B) Capacity.
C) Process types and technology.
D) HR. ✔
E) Productivity.
7.
Characteristics that customers perceive as min standards of acceptability are called:
Answer: A) Order winners.
B) Order qualifiers. ✔
C) Core competencies.
D) Distinctive competencies.
E) Minimum attributes.
Content preview
Quiz 2
Q 1: A company has introduced a process improv’t that ↓ processing time for
each unit, so that output is ↑ by 25% w less material, but 1 additional
worker req’d. Under the old process, 5 workers could produce 60u/hr. Labour
costs r $12/hr, & material input was previously $16/unit. 4 the new
process, material is now $10/unit. OH is charged at 1.6 times direct labour
costs. Finished units sell for $31. What ↑ in productivity is associated w
the process improv’t?
Process Output (u) Workers Material Labour OH
cost/hr
Old 60u/hr 5 $16/u $12 1.6 * direct
labour cost
New 75u/hr 6 $10/u $12 1.6 * direct
labour cost
Finished u price = $31.
Multifactor Productivity (MFP) = Total Revenue/Total Costs
Old process = Total Revenue/Total Cost = 60u * $31
----------------------------------- = $1.67
$60 ($60 + $960 + $96)*
*
1 worker/hr = $12 → $12 * 5 workers = $60
$16 material cost/unit * 60u = $960
1.6 OH * direct labour cost = $96
New process = Total Revenue/Total Cost = 75u * $31
----------------------------------- = $2.48
$72 ($72 + $750 + $115.2)**
**
1 worker/hr = $12 → $12 * 6 workers = $72
$10 material cost/unit * 75u = $750
1.6 OH * direct labour cost = $115.2
Cost mgmt is the ↑ in productivity that’s associated w the process improv’t
bc the materials used to produce the units were ↓ed.
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