GB 320 Test Two

As tool using animals, human performance is affected by: A) temperature, humidity, and air quality. B) strength, reflexes, perception. C) deign of pedals, levers, buttons. D) noise, illumination, and vibration. E) all of the above

E

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine 22) A are $72,000, and its variable cost is $15 per unit. The revenue is $21 per unit. What is the break-even point for machine A?

12,000 units

If this operation runs 16 hours per day, 5 days per week, what is the weekly output of this operation? A) 600 batches B) 686 batches C) 480 batches D) 200 batches

480 batches

A job shop is an example of a(n): A) intermittent process. B) continuous process. C) line process. D) specialized process. E) repetitive process.

A

A county wants to build one centrally-located processing facility to serve the county's four recycling drop-off locations. The four drop-offs have characteristics as given in the table below. What is the approximate center of gravity of these four locations? Location Drop-off point A Drop-off point B Drop-off point C Drop-off point D X-coordinate 1 6 6 4 Y-coordinate 8 7 2 7 Tonnage 10 35 25 50 A) (33.5, 135.4) B) (4.75, 6.04) C) (17, 24) D) (570, 725) E) (6, 4.25)

B

Advances in technology: A) have impacted the manufacturing sector only B) have had a dramatic impact on customer interaction with services and with products C) have failed to change the level of customer interaction with an organization D) have had only a limited impact on services E) have dramatically changed health care, but have not changed retailing

B

Computer-integrated manufacturing (CIM) includes manufacturing systems that have: A) transaction processing, management information systems, inventory control, warehousing and shipping integrated B) computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated C) automated guided vehicles, robots, and process control integrated D) all of their computers integrated with the marketing department

B

Consider the assembly line below. The three fabrication operations run in parallel, such that each batch of 20 units only needs to go through one of the three fabrication operations. After that, each batch needs to go through both assembly operations, which occur simultaneously (specifically, 10 components are made for each unit in the fabrication stage some components are then assembled in the Assembly 1 area while others are assembled in the Assembly 2 area). The units are packaged and made ready for shipment in the final stage. What is the bottleneck time of this operation? A) 40 mins B) 10 mins C) 13 mins D) 30 mins E) 46 mins

B

Geographic information systems can assist the location decision by: A) updating transportation method solutions. B) combining geography with demographic analysis. C) automating center-of-gravity problems. D) providing good Internet placement for virtual storefronts. E) computerizing factor-rating analysis.

B

Methods analysis focuses on: A) establishing time standards. B) issues such as the movement of individuals or material. C) the design of the machines used to perform a task. D) evaluating training programs to see if they are efficient. E) reducing the number of skills needed for the completion of a task.

B

A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs $0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. If annual demand is expected to be 10 million units, which plant offers the lowest total cost? A) Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units. B) Plant A, because it is cheaper than Plant B for all volumes. C) Plant A, because it is cheaper than Plant B for all volumes over 8,000,000 units. D) Plant B, because it has the lower variable cost per unit. E) Neither Plant A nor Plant B, because the crossover point is at 10 million units.

C

A worker completed a task 10 times during a period in which a typical trained employee completes the task 8 times. What is the worker's performance rating? A) 150% B) 100% C) 125% D) 112.5% E) cannot be determined with the given information

C

Effective capacity × Efficiency equals: A) design capacity B) efficient capacity C) expected output D) utilization E) actual capacity

C

A manufacturing plant allows its engineers to come in at 7 A.M. plus or minus an hour but still requires them to work 8-hour days. Which of the following scheduling techniques is the firm employing? A) flexible workweek B) flextime C) constant employment D) compressed workweek E) part-time status

B

The transportation model, when applied to location analysis: A) minimizes the movement of goods. B) minimizes total production and transportation costs. C) minimizes total fixed costs. D) minimizes total transportation costs. E) maximizes revenues.

B

The use of information technology to monitor and control a physical process is known as: A) computer-aided design B) process control C) IT oversight D) information numeric control E) numeric control

B

What is a drawing of the movement of material, product, or people? A) process chart B) flowchart C) service blueprint D) process map E) vision system

B

The data below represent time study observations for an assembly operation. Assume a 7% allowance factor. What is the normal time for element 3? A) 1.7 min. B) 2.11 min. C) 10.1 min. D) 1.96 min. E) 11.2 min.

D

Three of the four types of processes are: A) input, transformation, and output. B) manual, automated, and service. C) goods, services, and hybrids. D) process focus, repetitive focus, and product focus.

D

Which of the following is true regarding the concept of flexibility? A) It may involve modular or movable equipment. B) It is the ability to respond with little penalty in time, cost, or customer value. C) It may be accomplished with digitally controlled equipment. D) All of the above are true. E) None of the above is true.

D

A clothing chain is considering two different locations for a new retail outlet. They have identified 28) the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis, as shown under the respective columns for Barclay and Chester. Factor 1 2 3 4 factor description - average community income - community growth potential - availability of public transportation - labor cost weight -3 .2 .15 .35 barclay 30 40 20 10 chester 20 30 20 30 What is the score for Chester?

25.5

A retailer is considering building a large store. If the local economy experiences expansion, the firm expects the store to earn a $2,000,000 profit next year. If the local economy experiences a contraction, the firm expects the store to lose $400,000 next year. Analysts estimate a 20% chance fo rthe local economy to experience an expansion next year (hence an 80% chance for contraction). What is the expected monetary value (EMV) of building the large store? A) $80,000 B) $1,600,000 C) $1,520,000 D) $720,000 E) $2,000,000

A

Mutual trust is: A) reflected in reasonable, documented employment policies that are honestly and equitably implemented to the satisfaction of both management and employees B) when management recognizes that the employees are competent, motivated people both able and willing to perform at the level required to produce a quality product C) when employees have gained the trust of management D) when management and the employees both agree on common objectives E) when management has gained the trust of employees

A

What is the throughput time per batch of this operation? A) 40 mins B) 10 mins C) 13 minds D) 30 mins E) 46 mins

A

Which of the following is a location analysis technique typically employed by a manufacturing organization? A) transportation method B) simulation C) queuing theory D) demographic analysis E) correlation analysis and traffic counts

A

Process A has fixed costs of $5000 and variable costs of $5 per unit. Process B has fixed costs of $3500 and variable costs of $15 per unit. What is the crossover point between process A and process B? A) $9,500 B) 150 units C) 200 units D) $5,000 E) $2,500

B

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals 90% of design capacity. If the number of students who actually got their orientation session is 1500, what is the efficiency of the system? A) 1710 students B) 87.7% C) 90% D) 78.9% E) 1350 students

B

Which of the following is FALSE regarding capacity expansion? A) If "lagging" capacity is chosen, excess demand can be met with overtime or subcontracting. B) Capacity may only be added in large chunks. C) "Average" capacity sometimes leads demand, sometimes lags it. D) Total cost comparisons are a rather direct method of comparing capacity alternatives. E) In manufacturing, excess capacity can be used to do more setups, shorten production runs, and drive down inventory costs.

B

Which of the following statements describes job rotation? A) The operator's schedule is flexible. B) The operator is allowed to move, for example, from one type of CNC machine to another. C) The job contains a larger number of similar tasks. D) The operator works on different shifts on a regular basis. E) The job includes some planning and control necessary for job accomplishment.

B

Break-even is the number of units at which: A) total profit equals total cost B) total revenue equals variable cost C) total revenue equals total cost D) total revenue equals total fixed cost E) total revenue equals price times quantity

C

Industrial location analysis typically attempts to: A) maximize sales. B) ignore exchange rates and currency risks. C) minimize costs. D) avoid countries with strict environmental regulations. E) focus more on human resources.

C

Labor standards are defined as the: A) standard labor agreements. B) preset activities required to perform a job. C) amount of time required to perform a job or part of a job. D) amount of space required by a specific crew to perform the job. E) standard set of procedures to perform the job.

C

Sample observations of a claims processor made over a 160-hour work month reveal that the worker produced a total of 384 completed claims forms. The performance rating was 80%. The worker was idle 20% of the time (so that idle time should be subtracted from the total time when computing the average observed time). The allowance factor is 8%. What is the standard time per unit? A) 16.0 minutes B) 0.42 minutes C) 17.4 minutes D) 21.7 minutes E) 20.0 minutes

C

Suppose that the allowance factor for a job is 0.10, and the normal time is 5 hours. What is the standard time? A) 50.0 hours B) 4.9 hours C) 5.6 hours D) 5.1 hours E) 4.5 hours

C

Which of the following best describes mutual commitment in an organization? A) an instance in which management is committed to the employees and the employees are committed to management B) both management and the employees can rely on each other C) both management and the employees are committed to the same objective D) both management and the employees are committed, but to different objectives E) management obtains the commitment of the employees to a stated objective

C

Basic break-even analysis typically assumes that: A) costs increase in direct proportion to the volume of production, while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts B) both costs and revenues are made up of fixed and variable portions C) revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases D) variable costs and revenues increase in direct proportion to the volume of production E) all of the above are assumptions in the basic break-even model

D

The two most basic policies associated with employment stability are: A) full-time and part-time B) job enrichment and job enlargement C) incentive plans and piece-rate plans D) follow demand exactly and hold employment constant E) employment for life and guaranteed minimum wage

D

Which of the following workers is the most productive? A) $50 wages, 10 parts produced B) $30 wages, 5 parts produced C) $10 wages, 1 part produced D) $100 wages, 21 parts produced E) $500 wages, 100 parts produced

D

Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 98% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 85%. What is the expected weekly output of cranks for this company? A) 5100 B) 969 C) 5700 D) 6783 E) 4998

E

FedEx chose Memphis, Tennessee, as its U.S. hub because: A) the airport has relatively few hours of bad weather closures. B) the firm believed that a hub system was superior to traditional city-to-city flight scheduling. C) the city is in the center of the United States, geographically. D) it needed a means to reach cities to which it did not have direct flights. E) All of the above are true.

E

Four of the components of job design are: A) employment stability, work schedules, work sampling, and motivation & incentive systems. B) labor specialization, time studies, work sampling, and pre-determined time standards. C) labor specialization and enrichment, motivation and incentive systems, employment stability, and work sampling. D) ergonomics and work methods, method time measurement, work schedules, and incentive systems. E) job specialization, job expansion, psychological components, and self-directed teams.

E

Process redesign: A) often focuses on activities that cross functional lines. B) is sometimes called process reengineering. C) tries to bring about dramatic improvements in performance. D) is the fundamental rethinking of business processes. E) all of the above

E

The accuracy of a labor standard is to be within ± 5%, and the confidence level is 95%. The standard deviation of the sample is 2 and the mean is 8. What sample size should be used? A) 68 B) 8 C) 127 D) 10 E) 96

E

The visual workplace: A) uses low-cost visual devices to share information. B) may use clocks to remind employees of the goal. C) may use andons. D) may use kanbans to reduce inventory. E) All of the above describe the visual workplace.

E

Value-stream mapping: A) extends time function mapping back to the supplier. B) starts with the customer and works backwards. C) is a variation of time-function mapping. D) examines the supply chain to determine where value is added. E) all of the above

E

What is a common method used to increase capacity with a lag strategy? A) overtime B) subcontracting C) new machinery D) new facilities E) A and B

E

What is the behavioral approach to job design that involves giving the worker more tasks requiring similar skills? A) job enhancement B) job involvement C) job enrichment D) job rotation E) job enlargement

E

Which of the following is a visual signal at a machine that notifies support personnel about the machine's status? A) Ondon B) Endon C) Undon D) Indon E) Andon

E

Which of the following is among the eight determinants of revenue and volume for a service firm? A) quality of management B) uniqueness of the firm's and the competitors' locations C) quality of the competition D) purchasing power of the customer-drawing area E) all of the above

E

Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. Station 3 has two identical machines, each of which can process a unit in 12 minutes (each unit only needs to be processed on one of the two machines. Station 4 can produce a unit in 5 minutes. Station 5 can produce a unit in 8 minutes. Which station is the bottleneck station?

Station 2