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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.

  •   True
  • False

Question 8.A revision to a drawing or design released by designers to correct a part is called a(n):

  •   engineering change.
  •   part mod.
  •   tweak.
  •   lock-in.

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?

  •   14
  •   15
  •   16
  •   17

Question 10.   A batch process is less flexible than an assembly line and less efficient that a job shop.

  •   True
  • False

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