Dillon, a Senior Operations Manager, Was Assigned the Task of Implementing

question 96

Multiple Choice

Dillon, a senior operations manager, was assigned the task of implementing the control process for a particular production process. He first identified the performance objectives and in doing so, he identified the key results that were to be accomplished. Next, he set standards and measured the actual performance. He compared the results with the objectives and standards. Finally, as part of the corrective action step, he implemented _____, a practice that involved focusing attention on substantial differences between the actual and desired performances.

• A) economic order quantity
• B) just-in-time scheduling
• C) management by exception
• D) breakeven analysis
• E) critical path method

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Definitions:

NPV

Net Present Value; a calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time.

Break-Even Level

The point at which total costs and total revenue are equal, resulting in no net loss or gain, and the point at which a business, product, or service becomes profitable.

Net Present Value

A calculation used to determine the present value of a series of future cash flows by discounting them at a specific rate.

Initial Cash Outlay

The initial amount of money spent to make an investment or start a project, not counting ongoing expenses.