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business
operations management

Questions and Answers of Operations Management

When calculating productivity measures, do higher or lower results indicate improvement?
If two different departments in the same organization each develop strategies that bring them into competition for the same customer, that organization is suffering from a problem with what?
At what stage of the product life cycle is price competition likely to be the greatest?
Is a core competency believed to be a source of competitive advantage or corporate vision?
If a customer considers a feature a necessity but is not impressed by it, is this feature an order qualifier or an order winner?
In theory, if the total combined value of every output of a system could be compared to the total combined value of every input to that same system, the resulting ratio would be called what?
If the multifactor productivity measure of one electrical generation plant is 12.934, while the same measure when calculated for a second plant is 12.023, which plant is more productive?
In a machine shop, six employees repaired 45 engines during a 5-day workweek. How would the productivity of the machine shop best be described?
Five Customs and Immigration officers worked 7 hours each to check visas and stamp the passports of 673 arriving visitors at an airport terminal. What is the labor productivity of this group of five
Eight part-time workers at an airline catering facility prepared 2,010 meals in 6 hours. What is the labor productivity of the part-time workers at this facility?
The Port of Endover operates six berths and 12 cranes for loading and unloading freight containers from ships, organized into two areas known as the north terminal and the south terminal. The Port of
Martin House Laboratories operates medical laboratories throughout North America. Martin House is currently studying three of its laboratories, which use differing brands of equipment, running at
Rothera Point Utilities (RPU) provides customers with 7 million megawatt-hours (MWh) of electricity each year. RPU operates three different generation facilities to meet this demand: the Rothera
Summerline Contracting specializes in large urban construc- tion projects, particularly transportation infrastructure such as tunnels and new rail lines. Summerline's projects require that roads and
Which forecasting technique is more qualitative, the Delphi method or linear regression?
A road-paving crew required 8 hours to repave a 3-mile stretch of road, using \($5,000\) in materials. The crew consisted of three workers who each earn \($25\) an hour. Calculate a multifactor
An automobile assembly plant produced 600 cars during a 5-day workweek. It then produced 500 cars the following week, although it only operated 4 days due to a national holiday. During which week was
One road-paving crew of six people worked 8 hours to pave 25 miles of two-lane road, while a smaller crew of four people worked 12 hours to pave 15 miles of four- lane road. Which crew was more
Two projects of equal value have been evaluated using a multifactor productivity measure that combined labor-hours at \($30\) per hour and overhead expense calculated as 20% of labor expense for the
Link's Lumber creates pressure-treated utility poles from pine logs bought from several surrounding pine plantations. At the Link's Lumber operation, a batch of 100 pine logs yields 85 utility poles
Archer Contracting repaved 50 miles of two-lane county roadway with a crew of six employees. This crew worked 8 days and used \($7,000\) worth of paving material. Nearby, Bronson Construction repaved
The Bankston fulfilment center of Universal Logistics is a large warehouse that packs and ships customer orders from client on-line retailers. Five employees have been nominated for a productivity
Alford Technical Services surveys real estate to locate property lines and buried utilities for governments, construction companies, and individual land owners. Recently Alford Tech is concerned
How are quality of conformance and quality of design related to one another? Can a product achieve quality of design but not quality of conformance? Can the converse be true?
Livingston Fabrication creates upholstered seat subassemblies for installation in public transport systems. Livingston hired a marketing firm to hold customer focus groups, asking public
Which is the older concept, the idea of quality as conformance or quality as improvement?
How does the concept of quality of design help explain why a product can be very successful in one country, but the same product can fail in another country's market?
Do control charts assist in monitoring quality as conformance or quality as improvement?
Does a product's price influence the customer's perception or expectation of a product, or both? In any of these cases, is it a positive or negative influence?
Which typically poses a greater challenge in designing and monitoring product qual- ity, the production of a good or provision of a service?
What purpose do quality awards serve, beyond their role as a prize to the winning organization? What value can an award program provide organizations that have yet to even compete for that award?
A correlation coefficient of -0.95 indicates what?
Does a correlation coefficient indicate the strength of a curvilinear, linear, or inverse relationship?
Which tool is most useful in Pareto analysis, a scatter plot or a histogram?
Is a fishbone diagram or a control chart more likely to result from a brainstorming session?
Which is a better example of employee empowerment, a quality circle or a causal model?
Does remanufacturing of a product indicate a cradle-to-cradle or a cradle-to-grave design model?
If a component is deliberately left out of the main assembly of some product, is this the DMAIC cycle or delayed differentiation at work?
What is the name given to a data-intensive quality management program first devel- oped by Motorola in the 1980s and now operational in many thousands of organiza- tions around the world?
Consider Quick Start QFD Matrix 1 above. Of the two value features, which do cus- tomers consider three times more important? Quick Start Quick Start QFD Matrix 1 = Strong positive correlation =
Identifying the correlations between customer perception and design specifications is the core of what analytical tool?
If a change were made to Technical Spec 2 in the product's design, this would likely change the customer's opinion of which value feature the most? Quick Start Quick Start QFD Matrix 1 = Strong
Which technical spec can be most easily modified without changing current choices for the other two technical specs? Quick Start Quick Start QFD Matrix 1 = Strong positive correlation = Some
Consider Quick Start QFD Matrix 2 above. Which two technical specifications are strongly correlated with each other? Quick Start QFD Matrix 2 Strong positive correlation Some positive correlation ==
Customer opinion of Value Feature B is most strongly correlated with what technical specification? Quick Start QFD Matrix 2 Strong positive correlation Some positive correlation == Strong negative
If Technical Specification 2 were reduced in the next design for this product, what would likely happen to customer opinion of Value Feature A? Quick Start QFD Matrix 2 Strong positive correlation
In a recent survey, a 21-year-old gave a movie a score of 10, while a 73-year-old gave it a score of 5, a 45-year-old gave it a score of 7, and a 36-year-old gave it a score of 5.Based on these four
In a recent survey, a 12-year-old gave a movie a score of 4, while a 55-year-old gave it a score of 7, a 32-year-old gave it a score of 6, and a 62-year-old gave it a score of 8.Based on these four
AdventureLand theme park recently received a large number of complaints from customers who had endured delays while waiting to ride on AdventureLand's larg- est roller coaster, Monster Train. As
In a certain QFD analysis, a very strong positive correlation was found between Cus- tomer Value Feature A and Technical Specification 1, while a very strong negative correlation was found between
You are a quality management consultant for the Beserk Tennis Ball Company. Beserk is redesigning its current model of tennis ball, and you are asked to use QFD analysis to make suggestions about
Hallmark Hotels must renovate several of its hotel properties. In preparation, Hall- mark Hotels hired your consulting firm to conduct a QFD analysis to determine what changes, if any, Hallmark
If one forecasting technique were more accurate than another technique when applied to past data, why would the first technique not necessarily be preferred for use in the future?
Does a moving average forecast become more or less responsive to changes in a data series when more data points are included in the average?
Boulevard Industries has decided to provide safety training to its 1,500+ employees who work in the Boulevard main office. Part of this training is a 60-minute presentation by a member of the
Some argue that a crowd of amateurs is often smarter than a group of industry experts when predicting future changes in technology. Why might this be true?
Does an exponential smoothing forecast become more or less responsive to changes in a data series when its alpha is increased?
Holiday Cruise Lines is evaluating the cost of operating its newest ship, the Caribbean Summer. In its first year of operation, the Caribbean Summer completed 25 short cruises along the same route,
Does a high correlation between an independent and a dependent variable prove the independent variable has any influence over the dependent variable? Why or why not?
Tiger Stripe Copy Center is a small business located near a large university campus. Tiger Stripe Copy offers a range of services to walk-in customers, including passport photos,. self-service copy
If a forecast is too high when compared to an actual outcome, will that forecast error be positive or negative?
Quantitative forecasting focuses on past data to project future conditions. Even if this focus produces accurate forecasts, what might be dangerous about this approach?
Are quantitative forecasting models generally used for shorter-term or longer-term decision making when compared to qualitative approaches?
What do quantitative forecasting techniques require, the absence of which makes them ineffective tools for predicting the future?
In time series analysis, any pattern that regularly repeats itself and is constant in length is referred to as what?
The use of which alpha would result in a smoother forecast, a = 0.2 or a = 0.5?
A forecasting technique that takes the previous forecast and adds some percentage of the previous forecast's error is called what?
Which calculation would reveal the bias in a forecasting technique, the mean error or mean absolute deviation?
To calculate a forecast's percent error, the forecast error is divided by what?
Assuming the same set of data is used in their calculation, which will always be the smaller (or perhaps equal) value, the correlation coefficient or the coefficient of determination?
Given forecast errors of 5, 10, -10, 0, 10, what is the ME?
Given forecast errors of 4, 8, and -3, what is the MAD? What is the MSE?
Given forecast errors of 4, 8, and -3, what is the tracking signal?
Given forecast errors of 3, 2, -2, and 9, what is the tracking signal?
Given forecast errors of 10, -2, 25, and 0 when actual values were 120, 145, 275, and 124, what is the mean absolute percent error?
Given an actual demand of 34 this period, a predicted value of 45 this period, and an alpha of 0.2, what would be the simple exponential smoothing forecast for the next period?
Given a forecast of 1,405 and an actual outcome of 1,670, what is the error in the forecast? What is the percent error?
Given a forecast of 2,105 and an actual outcome of 1,980, what is the error in the forecast? What is the percent error?
You are observing the sales department staff using exponential smoothing to fore- cast monthly sales. Their forecast for January's sales was 12,000 units. January's actual sales figure became
The marketing department has just forecast that 10,000 units of item 778 will be ordered in the next fiscal year. Based on the marketing department's forecast and noting that the seasonal relative
Below are the seasonal relatives that describe the weekly fluctuation in the number of distinct users logging into a website daily, also known as the number of unique appearances per day:a.
Tutoring Center needs to allocate tutors this week for office appointments, so it needs to forecast the number of students who will seek appointments. The director has gathered the following time
The South Florida Water Management District (SFWMD) must develop a linear regression model that can be used to estimate the fresh water needs of various com- munities. SFWMD has collected data on 50
Here are the errors associated with a particular forecast over the past 5 months, in chronological order: 5, 10, -15, 0, 8.In which month was the forecast perfectly accurate? In which month was the
A media company is investigating the relationship between movie ticket sales and book sales. The company has gathered information on 30 movies that were based on published books, with total movie
The manager of a building supply center suspects that the monthly sale of rolled insulation for installation in attics depends on the average air temperature during the month. The manager has a
Dunkirk Consulting wishes to predict the amount of overhead expense that will be incurred by a consulting contract, to develop more accurate bids for future con- tracts. Dunkirk has the following
Block Commodities has gathered the following information concerning rock salt deliveries to its clients, which it believes are highly seasonal:a. Suppose Block Commodities calculated a set of
A manager has been using a certain technique to forecast demand for project man- agement software at her store. Actual demand and her corresponding predictions are shown below:a. What was the
The service center at a large automobile dealership is trying to boost revenue by pro- viding no-appointment-necessary oil changes to any type of vehicle that stops by the service center. To quickly
World Transportation Partners (WTP) offers three different intermodal container sizes that clients rent and pack with freight for shipping over- seas. Intermodal containers are measured in TEUS
Why aren't the effective capacity and the optimal operating level of any operation necessarily the same amount of activity?
A certain facility has a design capacity of 2,500 units a day and an effective capacity of 2,225 units. Name one potential determinant of its effective capacity.
DRIVE WIND Driver's Donuts is a bakery and coffee shop that depends on morning com- muters for 80% of its daily business. During the morning rush from 5:30 a.m. to 8:30 a.m., an average of 35 cars
Do capacity cushions represent waste?
What is the volume of output that results in the lowest average unit cost of produc- tion at a facility known as?
Western Motorway Authority (WMA) operates a network of toll roads connecting three urbanized areas. Each of its toll collection plazas offers a choice of payment methods to approaching drivers,
In an economic model discussed in this chapter, the cost of waiting was a cost to whom? Is this necessarily the entire cost of waiting?
If increasing the volume of production is likewise increasing the average cost per unit produced, the system is suffering from what?
Is there any situation in which the cost of waiting is strictly linear? What would such a situation look like? How does the so-called cost of waiting vary between certain situations, such as waiting

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