Operations Management 1st Edition by Cachon – Test Bank

Operations Management 1st Edition by Cachon – Test Bank

Chapter 06 Test Bank KEY

1. All learning curves have an exponential growth trajectory.
FALSE
There are at least three forms of learning curves: exponential growth, exponential decay, and diminishing return growth. [QUESTION]
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 Distinguish between various shapes of learning curves.
Topic: Various Forms of the Learning Curve

2. The power law assumes a constant rate of improvement with each doubling of cumulative experience.

TRUE
The power law assumes performance improves by a fixed percentage with each doubling of cumulative experience.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-02 Determine the unit cost of a process given a learning rate and an experience level.
Topic: The Power Law

3. A log-log plot of a learning curve that follows the power law shows a non-linear decrease.

FALSE
A log-log plot of a learning curve that follows the power law shows a non-linear decrease as a straight line.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-03 Estimate the learning rate using past cost dat
A.
Topic: Estimating the Learning Curve Using a Linear Log-Log Graph

4. For volumes greater than 1, the cumulative learning curve coefficients are always bigger than the learning curve coefficients.
TRUE
Both coefficients are equal to one for the first unit independent of learning rates. After this, the cumulative coefficients are bigger. [QUESTION]
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-05 Predict cumulative cost using the LCC method.
Topic: Using Learning Curve Coefficients to Predict Cumulative Costs

5. The average time an employee spends with a company before leaving is the average tenure of the employee.

FALSE
The average time employees spends with a company before leaving is twice the average tenure of the employees.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-06 Determine employee turnover and average tenure.
Topic: Employee Turnover and Its Effect on Learning

6. Standardization does not apply to service settings because of the high variability in processing times.
FALSE
There are three elements to standardization: processing time, work sequence, and inventory. Work sequence can be standardized in service settings.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-07 Understand the benefits of documentation and standardization.
Topic: Standardization as a Way to Avoid Relearning

7. The most common form of learning curves uses the following measures of performance to plot against process experience EXCEPT:

A. labor content.
B. unit cost.
C. processing time.
D. interest rate.
Interest rate is set by the financial market and is independent of the experience of a process.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 Distinguish between various shapes of learning curves.
Topic: Various Forms of the Learning Curve