Supervisors of knowledgeable people may be reluctant to let them be assigned to a project

Of fear of being associated with a poor project

Free Master of Engineering Management Operations Management Questions and Answers — Questions and Answers

Question 1: Standards-based production systems:

All of the above (Correct answer)
Have relatively high volumes of output
Have relatively high mechanization
Have relatively low unit costs
Use relatively low skilled workers

Correct answer: All of the above

Standards-based production systems, often associated with mass production or highly standardized processes, are designed for efficiency and consistency. They typically involve high volumes of output, significant mechanization to automate tasks, and result in low unit costs due to economies of scale. Furthermore, the standardization of tasks often means that less highly skilled workers can perform specific, repetitive operations effectively.

Question 2: Organizations exist for:

Mission (Correct answer)
Policies
Strategy
Procedures

Correct answer: Mission

An organization's mission defines its fundamental purpose and reason for existence, articulating what it does, for whom, and why. While policies, strategy, and procedures are essential for guiding operations and achieving goals, they all stem from and support the overarching mission. The mission serves as the foundational purpose around which all other organizational elements are built.

Question 3: Due to:

All of the above (Correct answer)
Having to work for two bosses
Supervisors of knowledgeable people may be reluctant to let them be assigned to a project
Of fear of being associated with a poor project
A and b

Correct answer: All of the above

This question likely refers to common challenges in project management or matrix organizations. Working for two bosses (functional and project managers) creates potential for conflicting directives and confusion. Additionally, supervisors may be reluctant to release their most knowledgeable employees for project assignments, and individuals might fear associating with a potentially unsuccessful project, all contributing to difficulties.

Question 4: Warranty service, complaint processing, and lawsuit costs:

External failure costs (Correct answer)
Internal failure costs
Appraisal costs
Prevention costs
Replacement costs

Correct answer: External failure costs

External failure costs are incurred when a product or service fails after it has been delivered to the customer. These costs include expenses related to warranty claims, handling customer complaints, product returns, and potential lawsuits due to product defects. They represent the most visible and often most damaging costs of poor quality, impacting customer satisfaction and brand reputation.

Question 5: Time-based business concepts aim to speed up essential tasks. time reductions:

All of the above (Correct answer)
Product/service design time
Delivery time
Response time to complaints
Processing time

Correct answer: All of the above

Time-based business concepts focus on reducing the time required for various operational processes to gain a competitive advantage. This includes speeding up product/service design to bring innovations to market faster, reducing delivery time to meet customer expectations, improving response time to complaints for better customer service, and optimizing processing time for increased efficiency. All these reductions contribute to greater agility and responsiveness.

Question 6: The earliest starting (es) and completing (ef) times for project network activities determine which of the following?

Which activities are on the critical path
Expected project duration (Correct answer)
All of the above
Activity slack time

Correct answer: Expected project duration

The earliest start (ES) and earliest finish (EF) times for all activities in a project network are fundamental calculations in project scheduling, particularly using techniques like the Critical Path Method (CPM). By determining the ES and EF for every activity and identifying the longest path through the network, these calculations directly lead to the determination of the overall expected project duration. While they contribute to identifying the critical path and calculating slack, their primary direct output is the overall project timeline.

Question 7: Design or customer-set control chart limits

FALSE (Correct answer)
TRUE

Correct answer: FALSE

Control chart limits are statistically derived from the process data itself, not set by design specifications or customer requirements. These limits, typically three standard deviations from the process average, define the expected range of variation when a process is in statistical control. Setting limits based on design or customer specifications would not accurately reflect the natural variability of the process and could lead to incorrect conclusions about process stability.

Question 8: C-charts are used for which?

Monitor the number of defects (Correct answer)
Monitor average shrinkage
Monitor proportion of defectives
Monitor the range values
Monitor dispersion in sample data

Correct answer: Monitor the number of defects

C-charts are a type of control chart specifically used to monitor the number of defects (or nonconformities) per unit when the sample size is constant. For example, they can track the number of scratches on a car or errors in a document. This differs from p-charts, which monitor the proportion of defective items, or X-bar and R-charts, which monitor variable data like averages and ranges.

Question 9: Marketing, operations, and finance are business functions.

FALSE
TRUE (Correct answer)

Correct answer: TRUE

Marketing, operations, and finance are universally recognized as the three core functional areas of any business. Marketing focuses on understanding and satisfying customer needs, operations manages the production and delivery of goods/services, and finance handles the management of money and assets. These functions are interdependent and crucial for an organization's success and strategic alignment.

Question 10: Simple product supply chain: suppliers' suppliers = direct suppliers = producer = distributor = end client

FALSE
TRUE (Correct answer)

Correct answer: TRUE

This statement accurately describes a typical simplified representation of a supply chain for a product. It illustrates the flow of materials and information from the raw material source (suppliers' suppliers) through various stages of production and distribution (direct suppliers, producer, distributor) until it reaches the final consumer (end client). This linear model helps visualize the interconnectedness of different entities in delivering a product.

Question 11: The difference between input costs and product prices is value added.

FALSE
TRUE (Correct answer)

Correct answer: TRUE

Value added refers to the increase in the value of a product or service as a result of a production process. It is calculated as the difference between the selling price of the output and the cost of the inputs purchased from other firms. This concept is fundamental in economics and business, representing the wealth created by an organization's activities.

Question 12: Processes translate inputs into outputs.

FALSE
TRUE (Correct answer)

Correct answer: TRUE

This is a fundamental definition in operations management and systems thinking. A process is a set of activities that takes inputs (such as raw materials, labor, information, or capital) and transforms them into outputs (products, services, or information) that have greater value. This transformation is the essence of how organizations create value and achieve their objectives.

Question 13: Order-to-delivery time is lead time.

FALSE
TRUE (Correct answer)

Correct answer: TRUE

Lead time, in a supply chain context, is the total time elapsed from the moment a customer places an order until the product or service is delivered. This 'order-to-delivery' time encompasses all stages, including order processing, production, and transportation. Minimizing lead time is a key objective for improving customer satisfaction and supply chain efficiency.

Question 14: Division of labor divides a production process into little tasks so that each worker does a small part of it.

FALSE
TRUE (Correct answer)

Correct answer: TRUE

Division of labor is an organizational principle where a complex task is broken down into smaller, simpler, and more specialized tasks. Each worker then focuses on performing only one or a few of these specific tasks. This specialization often leads to increased efficiency, productivity, and skill development within those specific tasks.

Question 15: In business

Consumer to business transactions
The use of the internet to transact business (Correct answer)

Correct answer: The use of the internet to transact business

The phrase 'In business' when paired with 'The use of the internet to transact business' broadly defines e-business or the application of internet technologies across all business operations. This encompasses not just buying and selling, but also internal processes, supply chain management, and customer relationship management. It represents the comprehensive integration of internet technology into business functions.

Question 16: electronic commerce

Consumer to business transactions (Correct answer)
Use of the internet to transact business

Correct answer: Consumer to business transactions

Electronic commerce (e-commerce) encompasses various models of transactions conducted over the internet. One such model is Consumer-to-Business (C2B), where individual consumers offer products or services to businesses, such as freelancers selling their skills or individuals providing data for market research. Therefore, 'Consumer to business transactions' represents a valid and specific category within the broader scope of electronic commerce.

Free Master of Engineering Management Operations Management Questions and Answers

Standards-based production systems: