I State whether the following statements are true or false: 1.

Operations strategy is concerned with setting broad policies and plans for using the resources of a firm to best support its long term competitive strategy. 2. A competitive dimension is something that can lead us to a competitive advantage. 3. Core capabilities or competency differentiates a manufacturing or service firm from its competitor. 4. Made to stock is a process that produces standard products which are stored as finished goods inventory. The product is delivered quickly to the customer from this inventory. 5. Cycle time is the average time required for setting up the process. 6. Services are intangible and cannot be inventoried. 7. Service production tends to be more efficient than production of goods. 8. Product consistency is an advantage of continuous production systems. 9. A buffer refers to a storage area between stages where the output of a stage is placed prior to being used in a downstream stage. 10. Poka-Yoke is the inbuilt foolproof design of a product that prevents mistakes from occurring during assembly. II Choose the correct answer from the multiple choices given: 11. A travel agency processed 240 customers on Day 1 with a staff of 12, and 360 customers on Day 2 with a staff of 15. What can be said about the productivity shift from Day 1 to Day 2? a. An increase in productivity from Day 1 to Day 2 b. A decrease in productivity from Day 1 to Day 2 c. The same productivity from Day 1 to Day 2 d. Cannot be computed from the data given e. None of the above

12. Which of the following is the first phase of the typical phases of product development? a. Product/process engineering b. Product planning c. Concept development d. Planning e. Ramp-up

13. Which of the following is the first step in building a House of Quality in product development? a. Develop a list of customer requirements for the product b. Concept development c. Pilot production/Ramp-up d. Concurrent engineering e. None of the above 14. Which of the following are possible examples of cycle times? a. Time for each television to come off an assembly line b. Time it takes for a stock purchase c. Time it takes for an instructor to grade an exam d. Time it takes to build an automobile e. All the above

15. Which type of process is configured as follows? a. Single-stage process b. Multi-stage process

c. Make-to-order process d. Make-to-stock process e. All the above

16. When an assembly line employee is waiting for a unit of work to come down the line so they can stop being idle and get back to work, it is an example of which of the following process terms? a. Buffering b. Blocking c. Starving d. Bottleneck e. All the above

17. When a company waits until they have an order for their product in hand before beginning any production for that order, we can characterise their operation as which of the following processes? a. Single-stage process b. Multi-stage process c. Make-to-order process d. Make-to-stock process e. All the above

18. If the Run Time for a batch of parts is 45 minutes on a machine and the Setup Time is 65 minutes, which of the following is the Operation Time? a. 75 minutes b. 110 minutes c. Only 45 minutes d. 65/45 minutes or 1.44 hours e. Cannot be computed based on the data given

19. If the standard expected phone calls for a telephone marketers is 24 per hour, and one telephone marketer did 27 per hour, which of the following can be used to describe his Efficiency? a.88.8% b.100% c.112.5% d. Well over 150% e. Cannot be computed based on the information given

20. What is the break-even in demand for a new process that costs $25,000 to install, will generate a service product that customers are willing to pay $500 per unit for, and whose labour and material costs for each unit is $100? a. 400 units b. 250 units c. 100 units d. 62.5 units e. None of the above

21. Which of the following is an example of a Continuous Flow type of process flow structure? a. Fast food b. Grocery c. Hospitals d. Chemical company e. None of the above 22. Which of the following is an example of a Service Business? a. Law firm b. Hospital c. Bank d. Retail store e. All the above 23. Service strategy development begins by selecting which of the following as an operating focus or performance priority? a. Price b. Quality c. Variety d. Treatment e. All the above

24. Break- even point refers to a. The point where production costs of two machines are equal b. The point of maximum profit c. The point of minimum profit d. The level of output volume for which total costs equals total revenues

25. When the inventory management is done on the basis of annual usage value (in three categories) such analysis is called a. ABC analysis b. FSN analysis c. VED analysis d. All the above

26. Bottleneck operation refers to a. The minimum time taking operation b. The production station requiring least time of operation c. The production station that requires the largest task time d. The bottling operation at Coca-Cola plant 27. Lead time is a. The time taken by the company to place orders b. The time taken for the most important operation for a product c. The time passing between ordering and receiving goods d. None of the above 28. Productivity is a. A measure of how well a business is using its resources b. Output divided by Input c. It is a relative measure i.e. it is useful only if it is compared with something else d. All the above

29. For car manufacturing a. Continuous process is best suited b. Project type manufacturing is best suited c. Assembly line is best suited d. None of the above is suited 30. A flexible manufacturing system consists of a. Computer controlled machining operations b. Automated material handling systems c. Automated tool changers d. All the above