OPS 571 WEEK 2 QUIZ
1
Which of the following operations consulting tools are used in the cost impact and payoff analysis stage in the operations consulting process?
Plant audits and statistical tools
Decision trees and stakeholder analysis
Customer surveys and gap analysis
SPC tools and bottleneck analysis
Correct
• 2
Which of the following production process terms best describes a stage in a multiple-stage process that limits the capacity of the overall process?
Blocking
Buffer
Bottleneck
Starving
Incorrect
• 3
In the pull system, which of the following is the partner that begins the process of pulling?
Quality control personnel
Vendors
Executive management
Customers
Correct
• 4
Which of the following production process terms best describes the situation when activities in a stage of production must stop because there is no work?
Starving
Multiple-stage processing
Blocking
Buffering
Correct
• 5
An advantage of a make-to-stock process is which of the following?
Rapid delivery of a standard product
It responds directly to customer orders
It allows the firm to avoid inventory costs
All units of output are unique
Correct
• 6
Which of the following is a principle of reengineering?
Organize around the tasks
Treat geographically dispersed resources as though they were centralized
Integrate the outcomes of parallel activities
Capture information many times, at the source and where it is interpreted
Correct
• 7
In contrast to TQM, what approach seeks radical change through innovation?
Reengineering
Project management
Lean manufacturing
JIT distribution
Correct
• 8
The basic notion of economies of scale assumes which of the following?
Average cost per unit of output drops as a plant gets larger and volume increases
Total cost of output drops as volume increases
Two plants can be operated at the same cost as a single plant
A piece of equipment with twice the capacity of another piece typically costs twice as much to purchase and to operate
Correct
• 9
Which of the following terms refers to a special type of flowcharting tool that is valuable for the development of lean processes?
JIT production
Value stream mapping
Kaizen
Kanban production control system
Correct
• 10
What is the term that refers to “the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed†(as cited in Jacobs & Chase, 2011, p. 461).
Operations consulting process
Continuous improvement
TQM
Reengineering
Correct
• 11
According to Little- law, which of the following can be used to estimate inventory?
Set up time times throughput rate
Process time times cycle time
Process velocity times flow time
Throughput rate times flow time
Correct
• 12
Which of the following is a key metric associated with value stream mapping?
Fixed costs
Product demand
Lead time
Defects per million operations
Correct
• 13
Which of the following is one of the major types of stakeholders impacted by most consulting projects?
Board of directors
Suppliers
Other consultants
International government regulators
Correct
• 14
Lean production seeks to achieve high volume production using which of the following?
Minimize utilization
Minimize inventory of raw materials
Maximize capacity
Maximize inventory of work-in-process
Correct
• 15
Which of the following are possible examples of cycle times?
Time required to produce a batch of parts
Time that a part waits in queue
Time to set up a new assembly line
Time it takes for an instructor to grade an exam
Correct
• 16
To implement a flow process in developing a lean system, a firm might do which of the following?
Improve capacity utilization
Build product in anticipation of demand
Reduce setup/changeover time
Eliminate some fixed costs
Correct
• 17
Which of the following is a situation that likely will yield economies of scale?
Company with factories in multiple countries that produces products for local demand
Factory that fully utilizes dedicated resources for information technology, material handling, and administrative support
Factory that produces low volume, customized products
Large factory with dedicated capacity that is able to produce twice the number of units as locally demanded
Correct
• 18
In setting up a kanban control system, you need to determine the number of kanban card sets needed. If the average number of units demanded is 1,000 per hour, the lead time to replenish the order for this item is 10 hours, the container size is 5 units, and the safety stock is estimated to be 5% of the expected demand, what is the number of kanban card sets needed?
2,100
440
1,050
210
Correct
• 19
Which of the following operations consulting tools provide summary performance updates for specific processes and are generally presented in graphical form with color-coding of trend lines and alarms?
Stakeholder analysis
Responsibility charts
Decision trees
Process dashboards
Correct
• 20
If the run time for a batch of parts is 25 minutes on a machine, and the setup time is 75 minutes, which of the following is the operation time?
25 minutes
3 minutes
75 minutes
100 minutes
Correct
• 21
Which of the following is a factor that causes a diseconomy of scale?
Increased transportation costs
Increased product value and prices
Increased total operating costs
Increased utilization
Correct
USA 
India