BMGT524-1900-Global Operations

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Mid-Term Exam - Attempt 1

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Question 1
Marks: 1
Typical differences between goods and services do not include
Choose one answer.
a. cost per unit

b. ability to inventory items

c. knowledge content

d. timing of production and consumption

e. customer interaction
Question 2
Marks: 1
Which of the following statements regarding CPM networks is true?
Choose one answer.
a. There can be multiple critical paths on the same project, all with different durations.

b. The late start of an activity is its late finish plus its duration.

c. If a specific project has multiple critical paths, all of them will have the same duration.
 d. The early finish of an activity is the latest early start of all preceding activities.

e. All of the above are true.

Question 3
Marks: 1
The degree or strength of a relationship between two variables is shown by the
Choose one answer.
a. correlation coefficient

b. mean absolute deviation

c. mean

d. cumulative error

e. alpha
Question 4
Marks: 1
Cost cutting in international operations can take place because of
Choose one answer.
a. lower wage scales

b. less stringent regulations

c. lower indirect labor costs

d. lower taxes and tariffs

e. all of the above

Question 5
Marks: 1
The "four Ms" of cause-and-effect diagrams are
Choose one answer.
a. material, machinery/equipment, manpower, and methods

b. material, methods, men, and mental attitude

c. material, management, manpower, and motivation

d. named after four quality experts

 e. none of the above
Question 6
Marks: 1
When making a location decision at the country level, which of these would be considered?
Choose one answer.
a. zoning restrictions

b. land/construction costs

c. location of markets

d. air, rail, highway, waterway systems

e. corporate desires
Question 7
Marks: 1
Which of these assumptions is not associated with strategies for goods-producing location
decisions?
Choose one answer.
a. Location is a major determinant of cost.

b. Focus on identifiable cost.

c. High customer contact issues are critical.

d. Intangible costs can be evaluated.

e. Most major costs can be identified explicitly for each site.

Question 8
Marks: 1
Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of
$500 and variable costs of $15 per unit. The crossover point between process A and process B is
Choose one answer.
a. 200 units

b. $5,000

c. $9,500

d. $2,500
 e. 50 units
Question 9
Marks: 1
Evaluating location alternatives by comparing their composite (weighted-average) scores
involves
Choose one answer.
a. linear regression analysis

b. crossover analysis

c. factor-rating analysis

d. transportation model analysis

e. cost-volume analysis
Question 10
Marks: 1
Which of the following statements regarding PERT times is true?
Choose one answer.
a. The probable time estimate is calculated as t = (a + 4m + b).

b. The optimistic time estimate is an estimate of the maximum time an activity will require.

c. The optimistic time estimate is an estimate of the minimum time an activity will require.

d. Pessimistic time estimate is an estimate of the minimum time an activity will require.

e. Most likely time estimate is an estimate of the maximum time an activity will require.
Question 11
Marks: 1
A hospital benchmarked against Ferrari Racing in an effort to
Choose one answer.
a. reduce the number of doctors

b. improve patient handoff quality

c. increase surgery prep time

d. lengthen surgery duration

e. all of the above

Question 12
Marks: 1
In location planning, environmental regulations, cost and availability of utilities, and taxes are
Choose one answer.
a. site-related factors

b. country factors

c. global factors

d. regional/community factors

e. none of the above

Question 13
Marks: 1
A job shop is an example of a
Choose one answer.
a. line process

b. repetitive process

c. specialized process

d. continuous process

e. intermittent process
Question 14
Marks: 1
In mass service and professional service, the operations manager should focus on
Choose one answer.
a. equipment maintenance

b. sophisticated scheduling

c. human resources

d. automation

e. all of the above

Question 15
Marks: 1
A firm is seeking a new factory location, and is considering several countries worldwide. In
some of these countries, child labor is prevalent; in others, working conditions and worker safety
are inferior to conditions in the U.S. An operations manager paying attention to __________ will
factor these issues into the location decision.
Choose one answer.
a. key success factors

b. factor-rating systems

c. ethical and social responsibility issues

d. regression models

e. geographic information systems

Question 16
Marks: 1
Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events
through which a product travels is a
Choose one answer.
a. Pareto chart

b. Taguchi map

c. poka-yoke

d. check sheet

e. process chart
Question 17
Marks: 1
Process redesign
Choose one answer.
a. tries to bring about dramatic improvements in performance

b. can focus on any process

c. is the fundamental rethinking of business processes

d. focuses on activities that cross functional lines

e. all of the above

Question 18
Marks: 1
Which of the following statements concerning CPM activities is false?
Choose one answer.
a. The late finish is the earliest of the late start times of all successor activities.

b. The late finish of an activity is the earliest late start of all preceding activities.

c. The late start of an activity is its late finish less its duration.

d. The early start of an activity is the latest early finish of all preceding activities.

e. The early finish of an activity is the early start of that activity plus its duration.
Question 19
Marks: 1
Which of the following is the best example of the proximity rule that, for service firms,
proximity to market is the most important location factor?
Choose one answer.
a. Few people will travel out-of state for a haircut.
b. Metal refiners (smelters) locate near mines to accomplish significant weight reduction
near the metal's source.
c. Furniture makers choose to locate near the source of good hardwoods, even though it
means locating near other furniture manufacturers.
d. Soft drinks are bottled in many local plants, where carbonated water is added to
proprietary syrups that may have been shipped long distances.
e. Patients will travel very long distances to have their hernia surgeries performed at
Shouldice
Hospital.
Question 20
Marks: 1
Product Focused processes
Choose one answer.
a. apply only to service firms, not to manufacturers

b. allow more customization, but are not very efficient

c. are profitable because customers demand flexibility, not specialization

d. are desirable because resource needs increase slowly with the complexity of a process

e. are processes that are specialized for relatively few products or customer groups
Question 21
Marks: 1
Pareto charts are used to
Choose one answer.
a. outline production schedules

b. show material flow

c. identify inspection points in a process

d. organize errors, problems, or defects

e. all of the above

Question 22
Marks: 1
According to the manufacturing-based definition of quality,
Choose one answer.
a. quality is the degree to which a specific product conforms to standards
b. quality is the degree of excellence at an acceptable price and the control of variability at
an acceptable cost
c. quality depends on how well the product fits patterns of consumer preferences

d. even though quality cannot be defined, you know what it is

e. quality lies in the eyes of the beholder

Question 23
Marks: 1
Which of the international operations strategies involves high cost reductions and high local
responsiveness?
Choose one answer.
a. global strategy

b. international strategy

c. multidomestic strategy

d. transnational strategy

e. none of the above

Question 24
Marks: 1
__________ and __________ are to key country success factors as __________ and __________
are to key region success factors.
Choose one answer.
a. Cultural issues, location of markets; site size and cost, zoning restrictions

b. Land costs, proximity to customers; labor cost, air and rail systems

c. Labor cost, currency risk; land costs, proximity to customers

d. Exchange rates, labor availability; site size and cost, environmental impact

e. All of the above are accurate relationships.

Question 25
Marks: 1
New trends in operations management include
Choose one answer.
a. rapid product development

b. global focus

c. empowered employees

d. mass customization

e. All of the above are new trends in operations management.

Question 26
Marks: 1
Which of the following smoothing constants would make an exponential smoothing forecast
equivalent to a naive forecast?
Choose one answer.
a. 0.5

b. 0

c. 1 divided by the number of periods

d. 1.0

e. cannot be determined
Question 27
Marks: 1
Which of the following are part of the Ten Critical Decisions of Operations Management?
I. Design of goods and services
II. Managing Quality
III. Layout Strategy
IV. Marketing
V. Pricing of Goods and Services
Choose one answer.
a. I,II,V

b. I,II,III

c. II,III,V

d. I,II,IV

e. All of the above

Question 28
Marks: 1
Product development teams are also known as
Choose one answer.
a. the Japanese approach

b. QFD

c. concurrent engineering

d. the traditional U.S. approach

e. none of the above

Question 29
Marks: 1
Operations managers must be able to anticipate changes in which of the following?
Choose one answer.
a. the products themselves

b. product mix

c. product volume

d. product opportunities

e. all of the above

Question 30
Marks: 1
Two critical path activities are candidates for crashing on a CPM network. Activity details are in
the table below. To cut one day from the project's duration, activity should be crashed first,
adding to project cost.

Crash
Activity Normal Time Normal Cost Duration Crash Cost
B 4 days $6,000 3 days $8,000
C 6 days $4,000 4 days $6,000
Choose one answer.
a. B; $2,000

b. C; $1,000

c. B; $8,000

d. C; $2,000

e. C; $6,000
Question 31
Marks: 1
Which of the following examples involves customer participation in the design of the service?
Choose one answer.
a. seeing a movie at the theater

b. buying a life insurance policy

c. investing in a mutual fund

d. providing the stockbroker with the desired distribution of the portfolio

e. eating at a fast-food restaurant

Question 32
Marks: 1
Arnold Palmer Hospital uses which focus?
Choose one answer.
a. product

b. process

c. mass customization

d. repetitive
 e. A and D
Question 33
Marks: 1
Standardization is an appropriate strategy in which stage of the product life cycle?
Choose one answer.
a. introduction

b. growth

c. decline

d. retirement

e. maturity
Question 34
Marks: 1
An assembly line is an example of a
Choose one answer.
a. specialized process

b. line process

c. process-focused process

d. repetitive process

e. product-focused process
Question 35
Marks: 1
Which of the following is not one of the three phases of project management?
Choose one answer.
a. controlling

b. planning

c. scheduling

d. All of the above are project management phases.

e. Both A and C are not project management phases.

Question 36
Marks: 1
The three major subdivisions of the product decision are
Choose one answer.
a. legislative, judicial, and executive

b. selection, definition, and design

c. strategy, tactics, and operations

d. cost, differentiation, and speed of response

e. goods, services, and hybrids

Question 37
Marks: 1
What is the approximate forecast for May using a four-month moving average?

Nov. Dec. Jan. Feb. Mar. April

39 36 40 42 48 46
Choose one answer.
a. 38

b. 43

c. 47

d. 42

e. 44
Question 38
Marks: 1
Which of the following is true?
Choose one answer.
a. Functional strategies are shaped by corporate strategy.

b. Corporate strategy is shaped by functional strategies.

c. Functional area missions are merged to become the organizational mission.

d. Corporate mission is shaped by functional strategies.

e. External conditions are shaped by corporate mission.

Question 39
Marks: 1
Which of the following is not a typical service attribute?
Choose one answer.
a. intangible product

b. difficult to resell

c. easy to store

d. customer interaction is high

e. simultaneous production and consumption

Question 40
Marks: 1
Which of the following is not a type of qualitative forecasting?
Choose one answer.
a. sales force composites

b. moving average

c. consumer surveys

d. the Delphi method

e. executive opinions
Question 41
Marks: 1
Which of the following statements regarding Arnold Palmer Hospital is false?
Choose one answer.
a. The hospital's high quality is measured by low readmission rates, not patient satisfaction.

b. The design of patient rooms, even wall colors, reflects the hospital's culture of quality.

c. The culture of quality at the hospital includes employees at all levels.

d. The hospital uses a wide range of quality management techniques.

e. The hospital scores very highly in national studies of patient satisfaction.

Question 42
Marks: 1
In which stage of the product life cycle should product strategy focus on improved cost control?
Choose one answer.
 a. introduction

b. decline

c. growth

d. maturity

e. none of the above

Question 43
Marks: 1
The phases of project management are
Choose one answer.
a. planning, programming, and budgeting

b. different for manufacturing projects than for service projects

c. planning, organizing, staffing, leading, and controlling

d. planning, scheduling, and controlling

e. GANTT, CPM, and PERT

Question 44
Marks: 1
The analysis tool that helps determine what products to develop, and by what strategy, by listing
products in descending order of their individual dollar contribution to the firm is
Choose one answer.
a. decision tree analysis

b. product life cycle analysis

c. Pareto analysis

d. breakeven analysis

e. product-by-value analysis
Question 45
Marks: 1
The service industry makes up approximately what percentage of all jobs in the United States?
Choose one answer.
a. 40%
 b. 90%

c. 66%

d. 79%

e. 12%
Question 46
Marks: 1
Which service design technique(s) would ordinarily not be appropriate for full-service restaurant
meals?
Choose one answer.
a. customization as late in the process as possible

b. modularizing the product

c. reducing customer interaction

d. the moment of truth

e. All of the above are appropriate.

Question 47
Marks: 1
Increasing the number of periods in a moving average will accomplish greater smoothing, but at
the expense of
Choose one answer.
a. responsiveness to changes

b. stability

c. accuracy

d. manager understanding

e. All of the above are diminished when the number of periods increases.
Question 48
Marks: 1
Which of the following is an example of competing on quick response?
Choose one answer.
a. A firm offers more reliable products than its competitors.
 b. A firm's research and development department generates many ideas for new products.

c. A firm advertises more than its competitors.

d. A firm's products are introduced into the market faster than its competitors' products.

e. A firm produces its product with less raw material waste than its competitors.
Question 49
Marks: 1
A forecasting method has produced the following over the past five months. What is the mean
absolute deviation?

Actual Forecast Error |Error|

10 11 -1 1
8 10 -2 2
10 8 2 2
6 6 0 0
9 8 1 1
Choose one answer.
a. 1.2

b. -1.0

c. 0.0

d. -0.2

e. 8.6
Question 50
Marks: 1
Which of the following statements regarding Bechtel is true?
Choose one answer.
a. While helping to rebuild Iraq, Bechtel's crews had to travel under armed escort.

b. Its competitive advantage is project management.

c. Bechtel's procurement program is global in nature.

d. Bechtel was the construction contractor for the Hoover Dam.

e. All of the above are true.

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