Mid Term Exam AGC 604

28/11/2022

One -Hour
1. An organization's mission statement serves as the basis for: 
A) environmental scanning.
B) core competencies.
C) operating procedures.
D) distinctiveness.
E) organizational goals.

2. Competitiveness doesn't include: 

A) productivity.
B) effectiveness.
C) profitability.
D) operations strategy.
E)  operations management.
 
3.
Product design and choice of location are examples of _______ decisions. 
A) strategic
B) tactical
C) operational
D) customer-focused
E)  design

4. Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels
each eight-hour shift. If the production is increased to 1,200 pretzels each shift, then
productivity will have increased by:

A) 50 percent.
B) 33 percent.
C) 25 percent.
D) 67 percent.
E) 25 percent
 Mid Term Exam AGC 604
28/11/2022

One -Hour

5. Scheduling personnel is an example of an operations management: 

A  mission
implementati
on.
B) operational decision.
C) organizational strategy.
D) functional strategy.
E) tactical decision.

6. Which one of the following is NOT one of the six sourcing strategies?
A) negotiation with many suppliers
B) vertical integration
C) keiretsu
D) short-term relationships with few suppliers
E) virtual companies

7. A disadvantage of the "few suppliers" sourcing strategy is:

A) the risk of not being ready for technological change.
B) the lack of cost savings for customers and suppliers.
C) possible violations of the Sherman Antitrust Act.
D) the high cost of changing partners.
E) the suppliers are less likely to understand the broad objectives of the procuring firm
and the end customer.

8. Which sourcing strategy is particularly common when the products being sourced are
commodities?
A) few suppliers
B) many suppliers
C) keiretsu
D) vertical integration
E) virtual companies

9. Which of the following is NOT an advantage of the "few suppliers" sourcing strategy?
A) Suppliers have a learning curve that yields lower transaction and production costs.
B) Suppliers are more likely to understand the broad objectives of the end customer.
C) less vulnerable trade secrets
D) creation of value by allowing suppliers to have economies of scale
E) suppliers' willingness to provide technological expertise

10. The hierarchy of components, their description, and the quantity of each required to make one
unit of a product are documented on:
A) a group technology listing.
B) a route sheet.
C) a bill of material.
D) an engineering drawing.
E) a work order.
 Mid Term Exam AGC 604
28/11/2022

One -Hour

11. Group technology requires that:

A) each component be identified by a coding scheme that specifies size, shape, and the type
of processing.
B) a specific series of engineering drawings be prepared.
C) all bills of material be prepared using the same format.
D) engineering change notices be linked to each of the bills of material and engineering
notices.
E) the final products be standardized.

12. Which of the following shows in schematic form how a product is assembled?
A) an engineering drawing
B) an assembly routing
C) an assembly chart
D) a route sheet
E) a process sheet

13. A route sheet provides a(n):

A) exploded view of the product.
B) instruction to make a given quantity of a particular item.
C) schematic showing how the product is assembled.
D) sequence of operations necessary to produce the component.
E) set of detailed instructions about how to perform a task.

14. An assembly drawing:

A) shows, in schematic form, how the product is assembled.
B) shows an exploded view of the product.
C) lists the operations, including assembly and inspection, necessary to produce the
component with the material specified in the bill of material.
D) provides detailed instructions on how to perform a given task.
E) describes the dimensions and finish of each component.
 Mid Term Exam AGC 604
28/11/2022

One -Hour
15. Which of the following is TRUE regarding computer-aided design?
A) It is too expensive to use in most manufacturing and design settings.
B) It is an obsolete technology.
C) It results in longer development cycles for virtually all products.
D) It is the use of computers to interactively design products and prepare engineering
documentation.
E) It is the Information technology to control machinery.

16. Which of the following is TRUE concerning advantages of CAD?

A) It provides accurate information flows to other departments.
B) Most product costs are determined at the design stage.
C) Design options are easier to review before final commitments are made.
D) Virtually all products have their development cycle shortened.
E) All of the above are true.

17. Value analysis takes place:

A) when the product is selected and designed.
B) during the initial stages of production when something needs to be done to assure product
success.
C) when the product is first conceived.
D) during the production process when it is clear that the new product is a success.
E) when the product cost is very low.

18. Which of the following is an example of an external product development strategy?

A) new internally developed products
B) enhancements to existing products
C) alliances
D) migrations of existing products
E) All of the above are examples of internal product development strategy.

19. A product-focused process is commonly used to produce:

A) high-volume, high-variety products.
B) low-volume, high-variety products.
C) high-volume, low-variety products.
D) low-variety products at either high- or low-volume.
E) high-volume products of either high- or low-variety.

20. Which one of the following products is most likely made in a job shop environment?
A) rolls of newsprint
B) customized furniture
C) television sets
D) cigarettes
E) canned vegetables
 Mid Term Exam AGC 604
28/11/2022

One -Hour
21. Which of the following products is likely to be assembled on a repetitive process line?
A) automobiles
B) custom personal computers
C) custom cakes
D) steel
E) beer

22. An assembly line is an example of a:

A) product-focused process.
B) process-focused process.
C) repetitive process.
D) line process.
E) specialized process.

23. Arnold Palmer Hospital uses which focus?

A) process
B) repetitive
C) product
D) mass customization
E) A and D

24. One of the similarities between process focus and mass-customization is:
A) the volume of outputs.
B) the use of modules.
C) many departments and many routings.
D) the variety of outputs.
E) All of the above are similarities.

25. Frito-Lay is to ________ focus as Harley Davidson is to ________ focus.

A) process; repetitive
B) product; repetitive
C) repetitive; product
D) process; product
E) product; mass customization

26. 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

27. Goods made to order are typical of ________ and ________ approaches while goods
made to forecast are typical of ________ and ________ approaches.
A) process, mass customization; repetitive, product
B) product, mass customization; repetitive, process
C) product, process; repetitive, mass customization
D) repetitive, product; mass customization, process
E) repetitive, process; mass customization, product
 Mid Term Exam AGC 604
28/11/2022

One -Hour

28. Which of the following statements regarding the center-of-gravity method is FALSE?
A) It is designed to minimize the maximum possible travel distance to any of the locations.
B) The optimal x- and y-coordinates are calculated separately.
C) The optimal solution is unconstrained, so it could suggest a location in the middle of a
body of water.
D) The weights used are the quantity of goods moved to or from each location.
E) The origin of the coordinate system and the scale used are arbitrary, just as long as the
relative distances are correctly represented.

29. Community attitudes, zoning restrictions, and quality of labor force are likely to be
considered in which of the following location decision methods?
A) transportation method
B) locational cost-volume analysis
C) center-of-gravity method
D) simulation
E) factor-rating method

30. Which of the following methods best considers intangible costs related to a location
decision?
A) crossover methods
B) locational cost-volume analysis
C) factor-rating method
D) the transportation method
E) center-of-gravity method

31. Evaluating location alternatives by comparing their composite (weighted average) scores
involves which of the following?
A) factor-rating analysis
B) cost-volume analysis
C) transportation model analysis
D) linear regression analysis
E) crossover analysis

32) The major problem addressed by the warehouse layout strategy is:
A) minimizing difficulties caused by material flow varying with each product.
B) requiring frequent close contact between forklift drivers and item pickers.
C) addressing trade-offs between space and material handling.
D) balancing product flow from one work station to the next.
E) locating the docks near a convenient access point to the closest highway.

33. Community attitudes, zoning restrictions, and quality of labor force are likely to be
considered in which of the following location decision methods?
A) transportation method
B) locational cost-volume analysis
C) center-of-gravity method
D) simulation
E) factor-rating method
 Mid Term Exam AGC 604
28/11/2022

One -Hour

34) Which of the following does NOT support the retail layout objective of maximizing
customer exposure to products?
A) Locate high-draw items around the periphery of the store.
B) Use prominent locations for high-impulse and high-margin items.
C) Maximize exposure to expensive items.
D) Use end-aisle locations.
E) Convey the store's mission with the careful positioning of the lead-off department.

35) Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are
all:
A) indicators of imbalance on an assembly line.
B) indicators that cross-docking has been successful.
C) elements of customization in a warehouse layout.
D) elements of servicescapes.
E) elements of successful office layouts.