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 _______________ analysis. a. decision tree b. Pareto c. breakeven d. product-by-value e. product life cycle In which stage of the product life cycle should product strategy focus on improved cost control? a. introduction b. growth c. maturity d. saturation e. inflation _______________ is used to rank a company’s products to determine which products represent the best use of the firm’s resources, or, perhaps, to determine which products are to be eliminated. a. Value analysis b. Value engineering c. Financial analysis d. Product-by-value analysis e. Product cost justification Which of the following represents an opportunity for generating a new product? a. understanding the customer b. demographic change, such as decreasing family size c. changes in professional standards d. economic change, such as rising household incomes e. All of the above are such opportunities. What percentage of sales from new products is indicative of industry leaders? a. below 25% b. 25 to 35% c. 35 to 45% d. 50% e. above 60% Unit 2 Examination BAM 421 Operations Management 92 Which of the following is not one of the major categories of costs associated with quality? a. prevention costs b. appraisal costs c. internal failures d. external failures e. None of the above; they are all major categories of costs associated with quality. All of the following costs are likely to decrease as a result of better quality EXCEPT _______________ costs. a. customer dissatisfaction b. inspection c. scrap d. warranty and service e. maintenance Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements? a. flexible pricing b. increased productivity c. lower rework and scrap costs d. lower warranty costs e. All of the above are aspects of reduced costs by quality improvements. Which of the four major categories of quality costs is particularly hard to quantify? a. prevention costs b. appraisal costs c. internal failure costs d. external failure costs e. None of the above are hard to quantify. 10. Which of the following statements is NOT true? a. Self-promotion is not a substitute for quality products. b. Inferior products harm a firm’s profitability and a nation’s balance of payments. c. Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product. d. Quality—be it good or bad—will show up in perceptions about a firm’s new products, employment practices and supplier relations. e. Legislation, such as the Consumer Product Safety Act, sets and enforces product standards by banning products that do not reach those standards. Unit 2 Examination BAM 421 Operations Management 93 11. Frito-Lay is to _____________ focus as Harley Davidson is to _____________ focus. a. pocess; repetitive b. product; repetitive c. repetitive; product d. process; product e. product; mass customization 12. One of the similarities between repetitive focus and mass customization is _____________. a. the wide variety of outputs b. module inputs c. the process layout d. the standard cost e. the high volume of outputs 13. Flexible equipment with rapid changeovers is most closely associated with which approach? a. product b. process c. mass customization d. repetitive e. a and c 14. Swift movement through the facility is typical of goods in which approach? a. product b. process c. mass customization d. repetitive e. a and c 15. High fixed costs and low variable costs are typical of which approach? a. product b. process c. mass customization d. repetitive e. a and c Unit 2 Examination BAM 421 Operations Management 94 16. Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to determine if Union labor prices are the cause of Detroit’s financial woes, which of the following should be used? labor content per vehicle labor productivity total production a or b None of the above; salary is the best comparison. The reason fast food restaurants often are found in close proximity to each other is ______________. a. they enjoy competition b. location clustering near high traffic flows c. low cost d. availability of skilled labor e. All of the above. Currency risk is based on what assumption? a. Firms that do not continuously innovate will lose market share. b. Values of foreign currencies continually rise and fall in most countries. c. Changing product lines by reacting to every current trend may alienate the customer base. d. The value of one dollar today is greater than the value of one dollar to be received one year from now. e. The U.S. stock market fluctuates daily. Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution and employment stability may change over time. The term associated with this phenomenon is _____________ risk. a. bureaucratic b. political c. legislative d. judicial e. democratic A location decision for an appliance manufacturer would tend to have a(n) _____________. a. cost focus b. focus on finding very highly skilled technicians c. revenue focus d. environmental focus e. education focus Unit 2 Examination BAM 421 Operations Management 95 Slotting fees _____________. a. are charged by retailers to stock a product b. can amount to as much as $25,000 c. are not a part of Wal-Mart’s business practices d. can reduce the ability of small businesses to introduce new products e. All of the above. Which of the following is not a retail layout practice? a. high-draw items along periphery b. distribute power items throughout store c. end-aisle locations are used to maximize product exposure d. high-margin and impulse items in prominent locations e. All of the above are retail layout practices. What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? a. More shelf space for those popular items is available around the periphery. b. There will be less congestion of customers than there would be in the middle. c. This arrangement will help to maximize customer exposure to other items in the store. d. It is easier to put large advertisement signs on the outside walls right next to the items. e. This arrangement allows customers to travel through the store as quickly as possible. The fixed-position layout would be most appropriate in which of the following settings? a. a fast-food restaurant b. a doctor’s office c. a casual dining restaurant d. a cruise ship assembly facility e. None of the above. For which of the following operations would a fixed-position layout be most appropriate? a. assembling automobiles b. producing TV sets c. constructing a highway tunnel or bridge d. refining of crude oil e. running an insurance agency 

The aggregate plan gets input or feedback from which of the following areas? a. engineering b. finance, marketing and human resources c. the master production schedule d. procurement, production and general management e. All of the above. Which portion of the master production schedule is normally fixed, frozen or firm? a. the entire schedule b. only the aggregate schedule c. only the middle of the schedule d. only the near-term portion e. only the far-term portion In continuous (stock-to-forecast) operations, the master production schedule is usually expressed in terms of _______________. a. end items b. modules c. kits d. customer orders e. warehouse orders In job shop (make-to-order) operations, the master production schedule is usually expressed in _______________. a. end items b. modules c. kits d. customer orders e. warehouse orders A document calls for the production of 50 small garden tractors in week 1, 50 small garden tractors and 100 riding mowers in week 2, 100 riding mowers and 200 garden utility carts in week 3 and 100 riding mowers in week 4. This document is most likely a(n) _______________. a. net requirements document b. resource requirements profile c. aggregate plan d. master production schedule e. Wagner-Whitin finite capacity document Unit 4 Examination BAM 421 Operations Management 183 The _______________ is the input to material requirements planning which lists the assemblies, subassemblies, parts and raw materials needed to produce one unit of finished product. a. bill of material b. master production schedule c. inventory records d. assembly time chart e. net requirements chart A bill of material lists the _______________. a. times needed to perform all phases of production b. production schedules for all products c. components, ingredients and materials required to produce an item d. operations required to produce an item e. components, ingredients, materials and assembly operations required to produce an item Forward scheduling _______________. a. begins with a delivery date, then offsets each operation one at a time, in reverse order b. is well suited where the supplier is usually able to meet precise delivery dates c. tends to minimize work-in-process inventory d. assumes that procurement of material and operations start as soon as requirements are known e. produces a schedule only if it meets the due date Scheduling is rather straightforward in product-focused facilities because _______________. a. kanban automates the scheduling of the assembly line b. demand is reasonably stable and capacities, set-up times and run times are generally known c. assembly line balancing assures the highest possible production efficiency d. finite capacity scheduling has made MRP much more realistic e. All of the above are true. 10. Which file contains important information regarding an item’s flow through the shop? a. item master file b. work-center master file c. control files d. routing file e. None of the above provides information regarding an item’s flow through the shop. Unit 4 Examination BAM 421 Operations Management 184 Which of these is not part of the planning files of a production planning and control system? a. a progress file b. a work-center master file c. an item master file d. a routing file e. All of the above are all part of the planning files. Which of the following files tracks work order progress? a. work-center master files b. routing files c. item master files d. control files e. None of the above tracks work order progress. The production database containing information about each of the components that a firm produces or purchases is the _______________. a. routing file b. work-center master file c. control file d. item master file e. None of the above. Which of the following is not one of the Seven Wastes? a. overproduction b. transportation c. assignment d. defective product e. motion The 5Ss ________________. a. have the “flavor” of a housekeeping list b. are a checklist for lean operations c. have become a list of seven items in American practice d. can be used to assist with necessary changes in organizational culture e. All of these are true. Unit 4 Examination BAM 421 Operations Management 185 The list of 5Ss, although it looks like a housekeeping directive, supports lean production by ________________. a. identifying non-value items and removing them in the “sort/segregate” item b. reducing inventory in the “standardize” item c. increasing variability through standardized procedures in the “standardize” item d. eliminating wasted motion through ergonomic studies in the “support” item e. building good safety practices in the “shine/sweep” item Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT? a. close relationships with trust b. close relationships with skepticism c. distant relationships with trust d. distant relationships with skepticism e. None of the above. Which one of the following is not a benefit of the implementation of JIT? a. cost reduction b. variability increase c. rapid throughput d. quality improvement e. rework reduction If the goals of JIT partnerships are met, which of the following is a result? a. For incoming goods, receiving activity and inspection are outsourced. b. In-transit inventory falls as suppliers are located closer to facilities. c. The number of suppliers increases. d. In-plant inventory replaces in-transit inventory. e. All of the above are consequences of meeting the JIT partnership goals. Ten high-technology batteries are tested for 200 hours each. One failed at 20 hours; all others completed the test. FR(%) is _______________ and MTBF is ________________. a. 10%; 1/1820 b. 90%; 1/1820 c. 10%; 1820 hours d. 10%; 1980 hours e. cannot calculate from information provided Unit 4 Examination BAM 421 Operations Management 186 Ten high-technology batteries are tested for 200 hours each. One failed at 50 hours; all others completed the test. FR(%) is _____________ and FR(N) is _______________. a. 10%; 1/1850 b. 10%; 1/2000 c. 25%; 1850 hours d. 90%; 1/2000 e. Indeterminate; no standard deviation is given. Ten high-technology batteries are tested for 200 hours each. One failed at 20 hours, another failed at 140 hours and all others completed the test. FR(%) is _______________ and MTBF is ________________. a. 20%; 880 hours b. 10%; 1980 hours c. 20%; 1760 hours d. 80%; 920 hours e. cannot calculate from information provided MTBF measures the average _________________. a. calendar time between failures b. operating time between failures c. number of failures per unit time d. number of operations between failures e. downtime per breakdown A system is composed of four parts, J, K, L and M. All four must function for the system to function. The four component reliabilities are .99, .98, .992 and .998. The designers are considering putting a .80 reliable backup at K. This backup will change the system reliability from ______________ to ________________. a. 0.9762 to 0.9605 b. 0.9605 to 0.9762 c. 0.9605 to some smaller value d. cannot be determined e. None of the above. Suppose that a process is comprised of multiple components, each having a 75% success rate. What is the change in reliability going from a series layout to a parallel layout if the process has 5 components? a. 0% b. 100% c. 76.2% d. -76.2 % e. unable to determine Unit 4 Examination

As we discused in the email, for usman only