Operations Management Productivity Quiz

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Questions and Answers

What does productivity represent in an operations management context?

Output relative to input (correct)

Input used relative to output

Input cost relative to profit earned

Total output generated without input consideration

Which of the following best describes multifactor productivity?

The ratio of outputs to a single input

The total profit generated from production

The ratio of outputs to several inputs, but not all (correct)

The ratio of outputs to all inputs

In the context of labor productivity, which of the following inputs is considered?

Number of hours worked (correct)

Total profit generated

All machinery utilized

Total cost of materials used

What is a characteristic of total productivity measures?

Ratio includes all inputs relative to outputs (D) Signup and view all the answers

Which of the following statements about efficiency and effectiveness is correct?

Effectiveness focuses on following procedures and norms. (D) Signup and view all the answers

What does the productivity growth rate compare?

Current productivity to productivity from the previous period (D) Signup and view all the answers

Which productivity measure incorporates a variety of inputs into its calculation?

Total productivity (D) Signup and view all the answers

If a company produced 150 units with 200 hours of labor one week and 180 units with 250 hours the next week, what type of analysis could be conducted?

Productivity growth rate analysis (B) Signup and view all the answers

What trend is indicated by a shift from batch shipments to just-in-time shipments?

Increased pressure to manage inventory levels (B) Signup and view all the answers

Which factor is contributing to the future focus on mass customization?

Increasingly flexible production processes (B) Signup and view all the answers

How are supply-chain partners expected to evolve according to future challenges?

Engagement in product improvement (B) Signup and view all the answers

What challenge does shorter product life cycles present to operations managers?

Need for rapid product development (D) Signup and view all the answers

Which aspect of production management is focused on environmental sustainability?

Green manufacturing practices (C) Signup and view all the answers

What does the term 'empowered employees' refer to in a knowledge-based society?

Individuals with increased autonomy and input in processes (A) Signup and view all the answers

What is a significant change in purchasing strategies from the past to the future?

Increased emphasis on supplier quality (A) Signup and view all the answers

What driving force is pushing towards collaborative designs in production?

Advancements in computer-aided design (B) Signup and view all the answers

What was the primary discovery attributed to James Watt in 1769?

Steam engine (C) Signup and view all the answers

Who is credited with the introduction of the moving assembly line in 1913?

Henry Ford (D) Signup and view all the answers

Which theory was developed by Elton Mayo during the 1930s?

Hawthorne studies (B) Signup and view all the answers

In which decade did Taiichi Ohno develop the Just-In-Time (JIT) production system?

1970s (A) Signup and view all the answers

Which of the following individuals is known for establishing the principles of scientific management?

Frederick W. Taylor (A) Signup and view all the answers

What type of management concept was introduced by George Dantzig in 1947?

Linear programming (C) Signup and view all the answers

Which motivation theory was proposed by Frederick Herzberg in the 1950s?

Two-Factor Theory (D) Signup and view all the answers

Which of the following management strategies focuses on continuous improvement in quality?

Total Quality Management (B) Signup and view all the answers

What characterizes the analytic production method?

Breaking down resources during the production process (A) Signup and view all the answers

Which of the following is an example of a synthetic production process?

Rubber manufacturing (D) Signup and view all the answers

Which production process operates continuously, typically for 24 hours a day?

Continuous flow production (B) Signup and view all the answers

What aspect is typically NOT true about continuous flow production?

Goods are tailored to customer orders (A) Signup and view all the answers

What defines flow type production?

Arranged resources according to a sequence of operations (D) Signup and view all the answers

In the context of continuous production, what is a characteristic of mass production?

Requires high investment costs and special equipment (D) Signup and view all the answers

What is the primary purpose of a production cell?

To ensure that each operation is completed before proceeding (A) Signup and view all the answers

Which of the following is NOT a characteristic of flow type production?

High flexibility in production processes (B) Signup and view all the answers

What is a primary characteristic of mass production?

Standardization of products (D) Signup and view all the answers

What is a limitation of mass production related to machinery?

Entire line halts due to machine breakdown (B) Signup and view all the answers

Which of the following features is characteristic of an intermittent flow system?

Flexibility to produce a variety of products (D) Signup and view all the answers

How does the cycle time in mass production get determined?

By the slowest operation (C) Signup and view all the answers

What type of machinery is typically used in mass production?

Dedicated special purpose machines (D) Signup and view all the answers

What defines the production volume in an intermittent flow system?

Small volume with high variety (A) Signup and view all the answers

What affects the material flow in mass production?

Flow is continuous and without backtracking (D) Signup and view all the answers

Which of the following best describes the production strategy of an intermittent flow system?

Customization based on specific customer orders (B) Signup and view all the answers

What is the primary objective of a location strategy?

Maximize location benefits to the firm (A) Signup and view all the answers

Which of the following factors is NOT typically affected by location decisions?

Employee satisfaction (A) Signup and view all the answers

Why are location decisions considered long-term commitments?

They often incur fixed costs that are hard to revert (D) Signup and view all the answers

What type of focus characterizes industrial location decisions?

Cost focus (B) Signup and view all the answers

Which location option would be most suitable for addressing an increase in demand that can't be met by current facilities?

Expanding existing facilities (B) Signup and view all the answers

Which factor is most critical for location decisions of service organizations?

Traffic volume and customer accessibility (D) Signup and view all the answers

What is one of the key steps in making location decisions?

Decide on the criteria for evaluating alternatives (A) Signup and view all the answers

Which organization would most likely prioritize being close to its market?

A bakery (B) Signup and view all the answers

Which of the following is likely a significant reason for making a location decision?

Depletion of basic inputs (B) Signup and view all the answers

What often characterizes location decisions based on low-cost objectives?

Considerable initial investment with potential fixed costs (B) Signup and view all the answers

Study Notes

Production/Operations Management

This is a presentation on Production/Operations Management, likely for a course.
The presenter is Assoc. Prof. Dr. Arzu Karaman Akgül.

Why Production is Conceptualized as a System

Production can be viewed as an "INPUT-TRANSFORMATION-OUTPUT" system.

Introduction to Operations Management

Production can be seen as a system with inputs, transformation processes, and outputs.

System

A system is designed to achieve pre-defined goals using people and resources.
Systems are composed of smaller, interconnected subsystems.
Systems have defined boundaries.

Classification of Systems

Systems can be categorized as open or closed.
The question of whether production is an open or closed system is presented.

Production Systems - Inputs

Inputs to a production system include labor, materials, information, human resources, equipment, facilities, technology, energy, know-how, information, capital, and entrepreneurship.

Production Systems - Transformation

Transformation processes involve physical, chemical, and biological processes.
Storage and transportation are also considered transformation processes.

Production Systems - Outputs

Direct outputs of production include products, services, and semi-products.
Indirect outputs include waste and pollution.

Feed Back and Control

Information about outputs, transformation processes, and inputs is fed back to management.
This information is compared to expectations.
Corrective action is needed if there are discrepancies.
Feed back equals control

Examples of Production Systems

Various examples of diverse systems like hospitals, restaurants, automobile plants, and universities are provided, showcasing their respective inputs, conversion processes, and outputs.

Evolution of Operations and Supply Chain Management

Supply chain management involves managing the flow of information, products, and services across a network of customers, enterprises, and supply chain partners. A diagram of the supply chain is presented.

Changing Challenges for the Operations Manager

Past challenges include local/national focus, batch shipments, low-bid purchasing, and lengthy product development.
Causes for these challenges include low-cost, reliable worldwide communication and transportation networks, cost of capital, quality emphasis, and shorter life cycles.
Future challenges are global focus, just-in-time shipments, supply-chain partners, rapid product development, alliances, and collaborative designs.
Other past/current/future challenges & explanations are detailed.

Metrics of Operations Management - Productivity

Productivity is a measure of output relative to input.
Productivity = Units Produced / Input Used
Different types of productivity measures are available for labor, machine, energy, etc.

Labor Productivity

An example is provided showcasing two workers painting twenty-four tables in eight hours.
Input: 16 hours of labor; Output: 24 painted tables.

Multifactor Productivity

All inputs and outputs are converted to a monetary value, allowing for comprehensive analysis. This example is detailed.

Productivity Growth Rate

Comparing the productivity of a process at a particular time to an earlier one shows productivity change over time.

Efficiency-Effectiveness

Efficiency refers to "doing things right" - following established processes and procedures.
Effectiveness refers to "doing the right things" - ensuring alignment with overall goals.
A scenario illustrating the difference between effectiveness and efficiency is presented.

Historical Events in Operations Management

Key events and their originators are detailed. This includes tables outlining the era, event, and originator along with relevant dates.
The table has multiple sections including notable events in the Industrial Revolution, Scientific Management, Human Relations, Operations Research, Quality Revolution, and Internet Revolution eras.

Production Process Types

Production processes are categorized based on volume (low, high, or mid-volume), variety (number of product options), and flow (indicates the intensity and nature of activities along the production line).

Process Types: Primary/Analytic/Synthetic/Fabrication/Assembly

Primary operations involve breaking down resources like extracting minerals from ore.
Synthetic operations involve combining resources to create more complex products, like synthetic rubber production.
Fabrication involves shaping raw materials into finished products.
Assembly combines parts to create a finished product.

Types of Production: Continuous/Intermittent/Project

Continuous flow production involves 24/7 operations with infrequent maintenance.
Items are produced in large quantities, often for stock.
Intermittent flow production responds to customer orders.
Project production deals with unique products tailored to each customer.

Continuous Flow

Production facilities are arranged based on the order of operations in a continuous flow.
Items are made to flow through the sequence of operations using material handling tools (conveyors, transfer devices, etc).
Products are produced in advance of demand. Manufacturing equipment is specialized, and products have limited variations.

Types of Continuous Production: Flow Type/Mass Production

Flow type production arranges resources based on the sequence of operations.
Mass production focuses on standardized products in large quantities/batches.

Mass Production

Key characteristics of mass production include standardization, uniform flow of material, predetermined sequence of operations, dedicated special-purpose machines for high volume and output rates, shorter cycle time, low inventory.
Advantages and limitations are outlined.

Intermittent Flow

Intermittent flow production starts and stops at varying intervals, responding to customer orders for varied product needs.

Characteristics of Intermittent Flow

Features include wide variety of products, small volumes, general-purpose machines, customized products, fluctuating demand, dynamic or adaptable operations based on specific orders.

Batch Type of Production

Similar items are produced in batches as jobs move through different functional departments.

Advantages of Batch Production

Better utilization of plant and machinery
Promotes functional specialization
Lower cost per unit compared to job shop production
Flexibility to accommodate differing products

Limitations of Batch Production

Complex material handling due to varied, often lengthy flows
Complex production planning and control
Higher work-in-process inventory compared to continuous production
Higher setup costs

Job Shop Type of Production

High variety, low-volume production of customized products
Each product requires its own unique set of processing steps

Advantages of Job Shop Production

High adaptability to diverse products
High skill levels of workforce

Limitations of Job Shop Production

Low productivity due to high variety and customized needs
High work-in-process inventory
Difficulties in planning and coordinating numerous, often highly specialized tasks within the production process

Comparison of Intermittent and Continuous Operations

A comparison table details the differences in product variety, degree of standardization, organization, resources/flow pattern, factors driving production, critical resources, and more between intermittent and repetitive operations.

Project Type of Production

Unique products tailored to specific customer needs
Non-repetitive, with flexible equipment, skills, and processes
Products are often at a fixed location, with equipment brought to the product

Facility Layout Planning

Deciding the best physical arrangement of resources in a facility.
Layout planning significantly affects productivity and short-term operations, and requires substantial investments.

Objectives of Facility Layout

Minimize material handling costs.
Efficient use of facilities (machines, equipment, labor).
Eliminate waste and non-value-added processes such as unnecessary movements.

Basis for Facility Planning

Facilitating organizational structure and interaction between workers during the production process.
Minimizing cycle time and investment.
Providing convenience, safety, comfort, and flexibility to adapt to change.

Basic Types of Layouts

Four basic layout types include product layouts (optimized for efficiency with specific products), process layouts (grouping similar resources together), hybrid layouts (blending aspects of both process and product), and fixed-position layouts (used when products are large or immobile).

Product Layouts

Characteristics include a fixed and repetitive order for job progress and machine visits, stable demand, high production volume, low variety, special-purpose equipment, and less-skilled workers. A diagram of the product layout is included.

Process Layouts

Functional grouping of machines and skilled workers for highly customized products with fluctuating demand and low-volume production. A diagram of process layout is included.

Differences Between Product and Process Layouts (Inventory/Material Handling/Scheduling)

Differences in inventory levels, material handling, and scheduling are detailed.

Hybrid (Cellular) Layouts

Combining elements of product and process layouts providing efficiencies of product layouts with the flexibility of process.

Cellular Layouts

Grouping machines that process similar parts into cells to improve efficiency and reduce material handling.
Related concept of group technology (grouping parts into similar categories/families)

Advantages/Disadvantages of Cellular Layouts

Advantages include reduced material handling and time, setup time, and work-in-process inventory, and better use of human and scheduling resources.
Disadvantages may include difficulties in forming cells with unbalanced part families or production volumes, reassignment of workers to cells requiring multi-skilling, and equipment duplication.

Process vs. Cellular Layout

A table comparing process and cellular layouts based on dimensions like number of moves, travel paths, job waiting times, and more is presented.

Fixed-Position Layout

Used for large products that cannot be moved (e.g.: buildings, ships).

Facility Location Decision

Facility location is the geographic site selection process for a firm's operations.
It's a critical strategic decision made infrequently, aiming to maximize location benefits.

Considerations in Location Decision

Includes cost considerations, convenience for attracting customers, flexibility, and long-term commitment of resources.

Need for Location Decision

Reasons for location decisions include adding new facilities, expanding market share, meeting growing demands, and shifts in market requirements or business costs.

Location Options

Facility expansion, new facility construction, moving to a different facility, adding or closing existing facilities.

General Procedure for Making Location Decisions

Establishing criteria for choosing location alternatives.
Identifying crucial factors (marketing areas, raw materials availability, etc).
Developing alternatives by assessing regions, communities, and specific site options.
Evaluating alternatives and selecting the best option.

Industrial Location Decisions/Service Location Decisions

Cost focus for industrial locations, emphasizing minimizing production and transportation costs.
Revenue focus for service locations, aiming to maximize opportunities in high-market-contact areas.

Organizations that Need to be Close to Markets/ Factors Affecting Location Decisions

Organizations like government agencies, retail sales, and various service industries need to be close to their customers. Considerations for any location decision include numerous factors. Labor productivity, costs/tangible and intangible, political risk, values/culture, proximity to markets/suppliers etc.

Location Decision Sequence

A sequential approach, considering the country, region/community, and site decisions.

Globalization

Global facilities expansion considerations, trade barriers, cheaper labor, and possible political risks (technology loss, infrastructure issues, high inflation).

Key Success Factors for Each Decision (Country, Region/Community, Site)

Detailed factors considered for each stage of the facility location decision (political risks, cultural conditions, labor markets, market availability, utility costs, etc).

Methods of Evaluating Location Alternatives

Methods include factor-rating methods, locational break-even analysis, center-of-gravity methods, and transportation models.

Factor-Rating Method

Detailed analysis based on key success factors weighted by importance, scored, and ranked for multiple locations. This includes an example illustrating the scoring process for facility location decisions..

Locational Break-Even Analysis

Determining fixed vs. variable costs per location for optimal site selection based on projected production volume (includes an example illustration).

Center-of-Gravity Method/Load Distance Model

Modeling to find the optimal location that minimizes transportation/distribution costs by considering existing locations, shipped quantities, and transportation distances.

Example of Load Distance Model

An example problem of the Load Distance model is described, indicating the goal of choosing the location (among several alternatives) which minimizes the total load-distance score.

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Description

Test your knowledge on various aspects of productivity in operations management. This quiz covers definitions, metrics, and trends that affect efficiency and effectiveness in production processes. Evaluate your understanding of multifactor productivity, labor inputs, and the challenges faced by modern operations managers.