INF 341 Chapter 4 Pre-Quiz True/False Indicate whether whether the sentence or statement statement is true or false.
_F___ 1. Good production production decisions decisions can be made knowing knowing only the current current level of finished goods goods inventory. inventory. _F___ 2. Production planners planners aggregate aggregate products products into product groups groups to make make forecasts forecasts and plans plans more accurate. accurate. _T___ 3. The Sales Sales and Operations Operations Planning Planning process process is used used to combine combine the sales sales forecast forecast with capacity capacity information to determine a production plan for finished goods. _F___ 4. Demand Management Management in the SAP R/3 system system is the process where sales sales forecasts forecasts are adjusted adjusted to incorporate the impact of marketing initiatives. _F___ 5. The MRP process process determines determines the schedule of finished finished goods production. production. _T___ 6. Supply Chain Chain Management Management is as much an approach approach to doing business with with suppliers suppliers as it is a technology. technology. __F__ 7. In a traditional traditional supply supply chain, demand information information is transmitted transmitted rapidly to all members members of the supply chain. chain. _F___ 8. ERP systems systems are necessary necessary to implement implement good supply supply chain manageme management. nt. __F__ 9. The percentage percentage of the order that that the supplier supplier provides provides in the first first shipment shipment is known as the first-rate. ar e produced to fill customer’s requests. _T___ 10. 10. Make to order items are
__F__ 11. The cost it it normally takes to manufacture manufacture a product, which which is usually usually derived derived from historical data data and any any changes that have occurred since then, is known as a structured cost. _T___ 12. 12. Rough-cut planning is a common common term in manufacturing manufacturing for aggregate aggregate planning. planning. _T___ 13. 13. The production production plan for for all finished finished goods is known as the MPS, or the master master production production schedule. schedule. _T___ 14. 14. Another term for the recipe recipe of a product product is the the bill of materials. materials. __F__ 15. Lead times times and lot sizing help help a company company determine determine the transfer of goods goods to the customer. customer. Multiple Choice Identify the the letter of the choice choice that that best completes completes the the statement statement or answers answers the question. question.
_A___ 16. A make-to-stock make-to-stock production production system is one where: where: a. Items are made for inventory in anticipation of sales orders b. Items are are produced to fill specific specific customer customer orders c. Items are assembled for a specific customer order from an inventory of components d. Both a and c _E___ 17. 17. An unexpected unexpected increase increase in product product demand demand can lead lead to: a. A depletion of finished goods inventories b. A depletion depletion of raw materials materials inventories c. Increased overtime and transportation transport ation expenses d. Both a and b e. All of the above ____ 18. In the SAP SAP R/3 system, system, forecasts forecasts can be be made using: a. Data from the Sales and Distribution Distributi on module b. Data from the Controlling Controlling module 1
_C___ 19.
_D___ 20.
_B___ 21.
_C___ 22.
c. Both a and b d. None of the above The Fitter Fitter Snacker Snacker company company sold 6,435 cases of snack bars bars in June of of the previous previous year. They are expecting expecting sales to increase by 3% this year. In addition, they are launching a promotional campaign in May, which they expect will increase sales in June by an additional 500 cases. What is the sales forecast for June of this year that Fitter Snacker should use? a. 6,628 c. 7,128 b. 6,935 d. 7,143 Fitter Snacker Snacker can produce 333.3 cases cases of snack snack bars per per day during the standard standard 8-hour work week. week. They can work 2 hours of overtime per weekday, plus 4 hours on Saturday. They are developing an SOP for a month with 23 weekdays and 4 Saturdays. What is the maximum number of cases they can produce in the month if they schedule workers for overtime on weekdays and Saturdays? a. 7,666 c. 9,582 b. 9,199 d. 10,249 The production production plan at at Fitter Snacker Snacker calls calls for 4,134 cases of of snack bars bars in January. January. If there are are 22 days in the month, how many cases of snack bars should be produced in a 4-day week? a. 188 c. 940 b. 752 d. 1034 Fitter Snacker Snacker orders orders oats in 44,000 lb. batches. batches. Given the following (incomplete) (incomplete) MRP MRP record: record: Oats Lead Time = 2 weeks Gross Requirements (lb) Scheduled Receipts Planned Receipts 23,635 On Hand
Week 1 Week 2 Week 3 Week 4 Week 5 18,000 24,323 24,872 18,464 17,938 44,000
5,635
25,312
440
Planned Orders
What will the On Hand inventory be in Period 5 after the system calculated planned orders? a. 0 c. 8,038 b. 440 d. 14,038 _A___ 23. After MRP is run in the the SAP R/3 R/3 system: a. The stock/requirements list and MRP list are both updated and show the same information. informatio n. b. The MRP list is updated updated but the the stock/requirements stock/requirements list is unaffected. unaffected. c. The stock/requirements stock/requir ements list is updated but the MRP list is unaffected d. None of the above. _D___ 24. In detailed detailed production scheduling, scheduling, longer production production runs runs of a particular particular product: product: a. Increase the available capacity by reducing the frequency of setups. b. Increases finished goods goods inventory inventory levels. c. Reduces finished goods inventory levels. d. Both a and b. e. Both a and c. _D___ 25. The order of of the steps steps in the SAP SAP R/3 production production planning planning process process are: a. Sales Forecasting, Demand Management, Sales and Operations Planning, MRP b. Sales Forecasting Forecasting,, Demand Demand Planning, Planning, Demand Demand Management, Management, MRP c. Sales and Operations Planning, Sales Forecasting, MRP, Demand Management d. Sales Forecasting, Sales and Operations Planning, Demand Management, MRP
2
_C___ 26. The production production plan for for Fitter Snacker Snacker calls calls for 7000 cases for the snack bar product product group in June. If the snack bar product group consists of NRG-A and NRG-B bars with the proportion 70% NRG-A bars and 30% NRG-B bars, bars, how many many NRG-A bars bars should be produced in in June? a. 500 c. 4690 b. 2010 d. 7000 __A__ 27. The costs it normally takes to manufacture manufacture a product, product, which is calculated calculated from historical costs and any changes from that, are known as: a. Standard costs c. Known costs b. Abbreviated Abbreviated costs d. Estimated costs _D___ 28. ____ are disaggrega disaggregated ted to generate generate detailed detailed production production schedules. schedules. a. Bills of materials c. Internet sales orders b. Production runs d. Rough-cut plans _A___ 29. What is the production production plan for all finished finished goods? a. MPS - master production schedule c. PPR - production producti on planning run b. QQR - quality quality query run d. RUN - run _C___ 30. What process answers the question “What do we need to order to produce the product, and when do we need to order these raw materials?” a. SF - sales forecasting c. MRP - materials requirements planning b. SOP - sales sales and operations operations planning planning d. DS - detailed detailed scheduling scheduling __C__ 31. What metric metric tracks tracks the number number of times times a supplier supplier meets meets the agreed agreed upon delivery delivery date? date? a. Initial fill rate c. On-time performance b. Initial order order lead time time d. cash-to-cash cash-to-cash cycle time _B___ 32. Fitter Snacker Snacker can produce 333.3 cases cases of snack snack bars per per day during the standard standard 8-hour work week. week. They can work 2 hours of overtime per weekday, plus 4 hours on Saturday. They are developing an SOP for a month with 23 weekdays and 4 Saturdays. What is the maximum number of cases they can produce in the month if they schedule workers for overtime on the weekdays only? a. 7,666 c. 9,582 b. 9,199 d. 10,249 __A__ 33. Fitter Snacker Snacker orders orders oats in 44,000 lb. batches. batches. Given the following (incomplete) (incomplete) MRP record: record: Oats Lead Time = 2 weeks Gross Requirements (lb) Scheduled Receipts Planned Receipts 23,635 On Hand Planned Orders
Week 1 Week 2 Week 3 Week 4 Week 5 18,000 24,323 24,872 18,464 17,938 44,000
5,635
25,312
440
What Planned Orders will the MRP logic create: a. An order for 44,000 units in Period 2 b. An order for 44,000 units units in Period 3 c. An order order for 44,000 units for periods periods 2 and 3 d. An order for 88,000 units for period period 3 Short Answer
34. How can data be entered into the R/3 system on the shop floor?
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Essay
35. What are the three general approaches to production? 36. What are the three principles that production planners follow? 37. List and explain each step of the production productio n planning process. 38. SAP can provide sophisticated tools to support sales and operations planning. Is that all that is necessary for a company to be successful? Support your answer by discussing the departments of marketing and manufacturing. 39. What is repetitive manufacturing? manufacturi ng? 40. Describe the measurements of success with Supply Chain Management. Book 2
1.
Designing organizational environments that enhance the processes for both employees and administration is an example of:
2.
a.
BPR
b.
Gap analysis
c.
Deming’s quality approach
d.
Business process needs assessment
Which of the following are considered the two most common ways of grouping organizational units
3.
a.
introduced-grouping by function
b.
introverted-grouping by function
c.
process-grouping
d.
procedure-grouping
The CEO of Cisco is: a.
Pete Solvik
b.
Bill Gates
c.
John Chambers
d.
Larry Ellison
4
4.
5.
6.
7.
8.
Which of the following is not considered a common way to group organizational units a.
introduced-grouping by function
b.
process-grouping
c.
procedure-grouping
d.
introverted-grouping by function
The process-oriented basis of grouping individuals and activities is most appropriate when a.
There exists interdependencies across entire work flows
b.
The organizational structure is primarily hierarchical
c.
The organizational structure is horizontal
d.
There exists a need to add massive amounts of new employees.
According to Davenport a.
a process is "a structure for action"
b.
a process is " a standardization for action"
c.
a process is "functionally representative of action"
d.
a process is "functionally derived"
Which of the following are specific characteristics in regard to the business process definition a.
processes are a sequence of activities
b.
processes have an end or purpose
c.
involve interaction
d.
evolve over scalable architectures
Which of the following are listed in the book as typical business processes
5
9.
a.
product development
b.
human resource management
c.
planning and resource allocation
d.
shipping management
Which of the following is not listed in the book as a typical business process a.
human resource management
b.
operations/logistics management
c.
customer relationship management
d.
product development
10.
T/F A focus on process encourages greater focus on customers.
11.
T/F Processes are highly measurable in that they indirectly relate to organizational goals.
12.
T/F A focus on process usually doesn't encourages greater focus on customers
13.
T/F Processes are highly measurable in that they directly related to organizational goals
14.
T/F Most major organizational processes are cross functional and span functional areas
15.
T/F Most major organizational processes are cross-integrated and span few process functions
16.
Which of the following is an example of a cross-functional process
17.
a.
New product development
b.
order processing
c.
sales
d.
logistics
Which of the following best describes the business architecture of Cisco a.
horizontal
b.
hierarchical
6
c.
flexible
d.
environmental
18.
T/F Cisco used a phased or gradual approach to ERP implementation.
19.
For ERP software vendor, Cisco chose:
20.
a.
SAP
b.
PeopleSoft
c.
Oracle
d.
Baan
Immediately after the cutover to its new ERP, Cisco noticed that on-time shipments to customers a.
improved from 75 to 95 percent
b.
declined from 95 to 25 percent
c.
improved from 75 to 100 percent
d.
declined from 95 to 75 percent
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