BU 5115 Operations Management                                                                                                  Dr. Ebrahimi

Test 1 True / False                                                                                                                             Spring 2005

Name______________________________________

T / F 1GI) The definition of Earliest Time (ES) is an activity that can start, assuming all successors have been started.

T / F 2) The definition of Critical Path Method (CPM) is the longest and shortest path through the network (activities).

T / F 3) Operation is the creation of goods and services.

T / F F 4) One of the competitive advantages is offering high quality with high cost.

T / F 5) Project Management consists of Planning, Staffing, Controlling, Maintaining, and Selling.

T / F 6) E-Commerce is the use of computer networks, primarily the Internet, to buy and sell products, services, and information

T / F 7) There are three types of forecasts: accounting, technological, and look-ahead forecasts.

T / F 8) By scheduling effectively, companies use assets more effectively and create greater capacity per dollar invested, which in turn higher quality, demand and cost.

T / F 9PR) The mission is an organization's purpose for being, which provides boundaries and focus and describes their contribution to society. 

T / F 10) The first step in using CPM is determining the tasks required to complete a project.

T / F 11) The critical path is a series of interconnected activities through the network in which each activity has no float time. 

T / F 12) Total float is defined as the amount of time that the start or finish of any given activity can be delayed without delaying the earliest start time for the subsequent activity. 

T / F 13) Planning involves setting goals, defining projects, and team organization. 

T / F 14DL) Supply-chain partnering is one new trend in operations management.

T / F 15) If a company wishes to globalize, it can expect that approximately the same technology will be available in all countries of interest.

T / F 16) SWOT analysis is not useful for strategy development.

T / F 17) PERT requires three estimates of activity completion time, while CPM only requires a single estimate.

T / F 18) Qualitative forecasts use a variety of mathematical models that rely on historical data and/or causal variables to forecast demand.

T / F 19MI) In the term of studying operation management, WBS stands for World Broadcasting System.

T / F 20) When slack is 1 and 0 we always find critical path method.

T / F 21) AON  and AOA are 2 very similar network used for CPM, while one is always create full activity and other one create dummy activity.

T / F 22) Finding ES (Forward Pass)is the max of immediate predecessor and finding LS(Backward pass) is the MIN of Immediate successor.

T / F 23) Mission of Hard Rock Café was (1) Serve all, Love all (2) All is one (3) Humanity is Instrumental, (4) Save the planet and (5) take time to be Kind.

T / F 24RG) OM is the set of activities that create value in the form of goods and services by transforming input to output.

T / F 25) Two advantages of companies going global is lower wages and lower taxes.

T / F 26) Using PERT will double the time it takes your project to be completed.

T / F 27) There can only be one critical path.

T / F 28) Slack = (ES + LS) – (LS + ES)

T / F 29SG) Production is the creation of goods and services, where as productivity is the ratio of input (goods and services) divided by the output (resources).

 T / F 30) Critical variables in productivity are labor, capital and management, contributing to about 10%, 38%, and 52% of the annual increases respectively.

T / F 31) A mission is the rational for the organization’s existence, thus stating what it will contribute to society. 

T / F 32)The strategic decisions of OM are product design, quality, process design, location selection, layout design, human resources and job design, supply-chain management, inventory, scheduling, and maintenance.    

T / F 33) SWOT analysis determines external strengths, weakness, and internal opportunities and threats.

T / F 34MB) Forecasting is the underlying basis of all business decisions.

T / F 35) Effective scheduling leads to lower costs.

T / F 36) Beta probability distribution is a function used in the Critical Path Method.

T / F 37) The rules of the backward pass method are earlier start time and earliest finish.

T / F 38) Priority rules are the order in which jobs should be done at each work center.

T / F 39DL) These are the 3 specific approaches used by OM to achieve globalization: Differentiation, Low cost, Response.

T / F 40) Hard Rock Café manager relies solely on sophisticated database for forecasting.

T / F 41) Activities of Project Management are Planning, Structuring, Scheduling, Controlling

T / F 42) Examples where Short-term Scheduling can be applied are:

Hospital (Outpatient treatment, Operating rooms)
University (Instructors, Classroom)
Factory (Production, Purchases)

T / F 43) Forward Scheduling:

Begins the schedule as soon as the requirements are known,

Makes jobs performed to customer order,

Makes schedule can be accomplished even if due date is missed,

Is used in many manufacturing environments (e.g. catering, scheduling surgery)

T / F 44) Productivity increases each year in the United States are the result of three factors: engineering, labor, data processing.

T / F 45) SWOT analysis refers to: support, opponents, weaknesses, and threats.

T / F 46) The three phases involved in the management of large projects are: scheduling, operating, evaluating.

T / F 47) The naive approach to forecasting assumes that demand in the next period is equal to demand in the most recent period.

T / F 48) Shop loading means the assignment of jobs to work or processing centers.

T / F 49) Moving average formula is: ∑(weight of period n)(demand in period n)

                                                                            ∑(weights)

T / F 50DD) Forward Pass starts from beginning and computes both LS and EF.

T / F 51) PERT stands for Path Evaluation and Review Technique.

T / F 52) AON means Activity On Arrow.

T / F 53) To compute early finish, add the early start plus activity time.

T / F 54) Slack = LS + ES or LF + EF

T / F 55) CPM works with three expectation times.  

T / F 56) Slack means the ability to maneuver in time without delaying completion of the project.

T / F 57SH) Globalization will not allow operations to improve. 

T / F 58) Productivity is the ratio of inputs divided by outputs.

T / F 59) E-commerce can increase economic efficiencies by matching buyers and 

sellers. 

T / F 60RI) Management provides the best opportunity for increases in productivity.  

T / F 61) Operations Management jobs constitute of 5% of all jobs.                           

T / F 62) Demand forecast is a forecast that projects a company’s sales.                    

T / F 63) Increased flexibility of locations is a benefit of e-commerce.             

T / F 64) Critical path of a network is the path with the fewest activities.                     

T / F 65KR) One difference between a good and a service is that services are often produced and consumed simultaneously.

T / F 66) Operations management has virtually no impact upon the overall strategy of an organization.

 
T / F 67) PERT requires one estimate of activity completion time, while CPM only requires three estimates.

T / F 68) Regression can be used for associative forecasting models.

T / F 71) When using exponential smoothing, the smoothing constant is eternal.

T / F 72) Forecasting in the service sector includes exponential smoothing.

T / F 73) Given last period's forecast of 65, and last periods demand of 62, the simple exponential smoothing forecast with an alpha of 0.4 for the next period is 63.8.                                                                                                                          

T / F 74) Forecasting time horizons include long range.

T / F 75KE) The management process consists of only planning and controlling.

T / F 76) Operations managers are moving more decisions to the individual worker.

T / F 77) E-commerce decreases economic efficiencies by matching buyers and sellers.

T / F 78) The three major business functions necessary to all organizations are marketing, accounting, personnel.

T / F 79) Strategy is static.

T / F 80XH) With respect to PERT and CPM, slack is the amount of time a task may be delayed with out changing the overall project completion time.

T / F 81) A dummy does not necessarily exist in a event.

T / F 82) The critical path is the sequence of activities that have a zero slack time; in other words they must each start at their earliest possible start time and be completed in no more than the estimated time for the overall project be to completed on time.

T / F 83) Dummy activities are used when two activities have identical starting and ending events.

T / F 84) The project managers just have to be responsible to ensure the project could be finished on time within the budget. They don’t have to take care of the people.

T / F 85RH) Competitive strategies of globalization are differentiation, lower costs, and response.

T / F 86) Two ways to do Critical Path Method is the forward pass which starts from ES, and backward pass which starts from end an compute LS and LF.

T / F 87SM) Operations management (OM) is the creation of goods and services. 

T / F 88) Hard Rock Café uses simple moving average rather than weighted moving average as a forecasting tool.

T / F 89) Critical path analysis is used to determine the earliest activity start time.

T / F 90) Multiple regression is not useful in dealing with Hard Rock Café forecasting.

T / F 91JR) Bill Gates and Gantt Chart are the fathers of scientific management.

T / F 92) There are ten important decision areas in OM, such as design of goods and services, managing quality, supply chain management, scheduling, and maintenance.

T / F 93) There is no difference between goods and services.

T / F 94) The difference between goods and services is that goods can be resold but reselling a service is unusual.

T / F 95) With Gantt Charts it is still difficult to see how jobs (activities) are overlapped.

T / F 96) With MS Project, one can see critical path by entering the activity durations and precedence.

T / F 97) Excel is more suitable than MS Project for activity network.

T / F 98) Scheduling a service system is the same as scheduling a manufacturing system.

T / F 99) Sequencing jobs in network centers are known as LCLS (Last Come Last Served), MPT, and BDD.

T / F 100) Scheduling of n jobs on two machines is known as Jackson Heights’s Rules.