Question 1.An example of a variable cost is:
- a payment to your raw materials supplier.
- a lease payment on a piece of equipment.
- a mortgage payment on buildings.
- a monthly licensing fee for a software package.
Question 2.Which of the following statements about capacity strategies is NOT correct?
- Lead capacity strategy can be used to preempt competitors who might be planning to expand their own capacity.
- A lag capacity strategy tends to have greater productivity due to higher utilization levels.
- A match capacity strategy tends to avoid periods of high under- or overutilization.
- A lag capacity strategy would be well-suited for a period of high growth.
Question 3.The manufacturing process used to make a wide variety of highly customized products in quantities as small as one is a:
- production line.
- continuous flow process.
- job shop.
- fixed position
Question 4.An advantage of a production line process is:
- the volume of output needed to justify the investment.
- the degree of flexibility of the process.
- the per unit cost of items produced on the line.
- the range of output typically produced on such a process.
Question 5.In what way are projects and typical business activities similar?
- For most companies, projects and typical business activities can be described as routine.
- Both projects and typical business activities have a defined ending point at which time they are complete.
- Projects and routine business activities require significant levels of cross-functional and interorganizational coordination.
- The successful completion of projects and business activities is essential to a firm’s competitive position.
Question 6.A lead capacity strategy has the advantage of:
- a reduced risk of overbuilding.
- greater productivity due to high utilization levels.
- assuring adequate capacity during all types of growth.
- the ability to put off large investments as long as possible.
Question 7.A project is a one time undertaking designed to achieve a particular organization goal.
Question 8.A revision to a drawing or design released by designers to correct a part is called a(n):
- engineering change.
- part mod.
Question 9.What is the latest that activity D can start if A is 5 days, B is 7 days, C is 4 days, D is 5 days, E is 7 days, and F is 6 days long?
Question 10. A batch process is less flexible than an assembly line and less efficient that a job shop.