MGT302 Exam 2
In a queuing system, if the average arrival rate for loading trucks is 5 trucks per hour, what is the mean time between arrivals?
.2 hours
If the lower control limit for the p chart is a negative value, then which of the following becomes the new value? - 1 - 1.5 - 0 - 0.5
0
What are the three major components of a queuing system?
1) the source population and the way the customers arrive at the system 2) the service systems 3) how customers exit the system
"Valley Forge Income Tax Advice (VIF) is a small accounting firm supporting wealthy individuals in their preparation of annual income tax statements. In order to prepare the income tax statement, VIF needs to complete the following set of activities in sequence. Each step (activity) is performed by one person. All of the following activity times are expressed in minutes per income tax statement. Filing: 20; Initial Meeting: 30; Preparation: 120; Review: 20; Writing : 50" What is the maximum number of tax statements that can be completed within eight hours?
4 (limited by the capacity bottleneck of 2 hours)
What will you be able to conclude when the Cpk value is 0? - The process is not capable to meet the design specification - The probability that the process will produce defects is 50% - Shifting the process mean towards the center of the specification range will improve the Cpk - All of the above is correct
All of the above is correct
Dell's assembly plant makes computers by combining pre-assembled modules to meet a customer's specifications. Which of the following is NOT one of the major challenges associated with this manufacturing process? - Balance the finished good inventory against the level of customer service - Define a customer's order in terms of alternative components - Engineering design that enables as much flexibility as possible in combining components, options, modules into finished goods
Balance the finished goods inventory against the level of customer service
(T/F) A low defect rate indicates a high design quality.
False
(T/F) A service system with a high degree of customer contact is less difficult to control than a low degree of customer contact service system.
False
(T/F) Statistical quality control focuses on evaluating design quality.
False
(T/F) The "service blueprint" is a classification of services.
False
(T/F) The best way to control quality is by inspection.
False
(T/F) The closer the customer is to the order decoupling point, the longer it takes the customer to receive the product.
False
(T/F) The essential issue in satisfying customers in the make-to-stock environment is to balance the cost of the finished item against the willingness of the consumer to pay for it.
False
(T/F) The process capability index is calculated to determine whether the process is in control.
False
(T/F) Throughput rate is defined as the maximum rate that work can be produced by the entire process.
False
(T/F) Workcenter layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements.
False
(T/F) In a service system, arrival follows Poisson distribution, and service time is exponentially distributed. When the average arrival rate is slower than the average service rate, no waiting line will be formed.
False - Due to the variations in the arrival and service processes, a waiting line will be formed even when the average utilization (i.e. arrive rate/service rate) is below one
(T/F) As long as the average utilization is less than 1, the service company has sufficient capacity to provide quality service.
False - to provide quality service, the average utilization level should be lower than .70
Which of the following statements is NOT correct about conformance quality? - High conformance quality suggests low design quality. - High conformance quality indicates high precision and consistency. - Statistical quality control evaluates conformance quality. - A high conformance quality implies a low defect rate.
High conformance quality suggests a low design quality.
Filing: 20; Initial Meeting: 30; Preparation: 120; Review: 20; Writing : 50" In steady-state, on average every two hours, one client comes in. A secretary takes over the writing task and reduces the time to write an income tax statement by 50% by using a new word processing system. With this change along with the information copied from Q1, which of the following statement(s) is true? I: Process capacity is increased. II The utilization of this secretary is 20.8%.
II only - Writing is not the bottleneck so decreasing writing time will not increase process capacity
Family Vision makes customized eyeglasses. Each pair of glasses is uniquely made and carefully fit to individual's eyes. Which of the following best describes the type of manufacturing process in Family Vision? - Make to order - Assembly line - Project - Make to stock
Make to order
The video store manager at Family Video was interested in determining the traffic in his store. He conducted a study and found that on average 6 customers left his store per hour. He also found that on average 2 customers were in his store at any time. Based on these findings, what can you conclude? - On average, customers spent 20 minutes in the store - On average, customers spent 40 minutes in the store - On average, customers spent 10 minutes in the store - On average, customers spent 30 minutes in the store
On average, customers spent 20 minutes in the store
The video store manager at Family Video was interested in determining the traffic in his store. He conducted a study and found that on average 6 customers left his store per hour. He also found that on average 2 customers were in his store at any time. What can you conclude based on these findings? - The throughput rate of this process is 6 customers per hour - The inventory level is 6 - The flow time is 10 minutes - The process capacity is 6 customers per hour
The throughput rate of this process is 6 customers per hour
According to the information about Dell in the previous question, where is the customer order decoupling point in this process? - The finished goods inventory at the manufacturing site - The raw material inventory at the manufacturing site - The supplier inventory - The work-in-process inventory at the manufacturing site
The work-in-process inventory at the manufacturing site
(T/F) According to the information from the previous question, general purpose (i.e. flexible) equipment rather than special purpose (i.e. dedicated) equipment is used in Caterpillar's production process.
True
(T/F) Assembling-to-order means moving the customer order decoupling point from finished goods to components.
True
(T/F) Engineer-to-order firms will work with the customer to design the product, and then make it from purchased materials, parts, and components.
True
(T/F) Poka-Yokes are procedures that block the inevitable mistake from becoming a service defect.
True
(T/F) Special purpose (dedicated) equipment is used in assembly line.
True
(T/F) Spring Street's car wash has one garage for a full-service car wash. For customers who choose this service, they will first pull their car onto the car wash track. Once the car wash begins, the car wash track will drag the vehicle through the system. Customers will be notified via a sign when the auto wash ends, and then drive the vehicle to attendants who will give the car one last wipe-down. The line structure of this full-service car wash described above is single-channel, multiple phases.
True
(T/F) The concept of quality at source indicates that the person who does the work should take responsibilities ensuring conformance quality of his or her output.
True
(T/F) The customer order decoupling point is where inventory is positioned in the supply chain.
True
(T/F) The first step in analyzing the flow of material through a production process is known as process mapping.
True
(T/F) The product-process matrix describes production process selection based upon product volume and the level of product standardization.
True
(T/F) The standard deviation (Sp) of the C chart is the square root of the C-bar.
True
Which of the following describes the layout used when an item is produced through a fixed sequence of workstations? - workcenter - project - assembly line - manufacturing cell
assembly line
Which of the following type of work flow is appropriate when production volume is high? - workcenter - assembly line - project layout - manufacturing cell
assembly line
Which of the following is variation that is caused by factors that can be clearly identified? - normal variation - common variation - random variation - assignable variation
assignable variation
Which of the following is not a limited line capacity? - gas station - loading dock - bridge toll booth - parking lot
bridge toll booth
When the product or service can have more than one defect per unit, which of the following is the most appropriate chart? - mean chart - range chart - p chart - c chart
c chart
Which quality term refers to the degree to which the product or service design specifications are met? - dimension - conformance - engineering - design
conformance
What term refers to the inherent value of the product in the marketplace? - performance quality - conformance quality - reliability - design quality
design quality
Which of the following is NOT a correct assumption associated with the arrival process in the M/M/1 model? - finite population - a random process, following a Poisson distribution - patient customers - individual arrivals
finite population
The performance metric that measures the total time for a unit to move through a system is: - operation time - velocity - efficiency - flow time
flow time
Which type of quality cost deals with scrap, rework, and repair? - internal failure costs - appraisal costs - external failure costs - prevention costs
internal failure costs
On a service blueprint, the line that shows the distinction between the high customer contact aspects of the service and those activities that the customer does not see is known as the:
line of visibility
In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following? - low sales opportunity - low production efficiency - low degree of customer/server contact - none of the above
low production efficiency
According to the Video of queuing: featuring Disney World, Disney increases staffing during peak time. This is an example of using which of the following approach to manage queues? - manage service times - control arrivals - manage perception of waiting - pay attention to the psychological effects
manage service times
Which of the following describes the layout used for a dedicated area where a group of similar products are produced? - assembly line - workcenter - manufacturing cell - project
manufacturing cell
Expenditures related to achieving product or service quality include all of the following except: - manufacturing costs - failure costs - prevention costs - appraisal costs
manufacturing costs
Valley Forge Income Tax Advice (VIF) is a small accounting firm supporting wealthy individuals in their preparation of annual income tax statements. In order to prepare the income tax statement, VIF needs to complete the following set of activities in sequence. Each step (activity) is performed by one person. All of the following activity times are expressed in minutes per income tax statement. Filing: 20; Initial Meeting: 30; Preparation: 120; Review: 20; Writing : 50 Which step is the bottleneck?
preparation - it is the slowest step (2 hours)
Which of the following statements is true about process capacity? - process capacity is the maximum number of units present in the process - process capacity is greater than the capacity of each individual process step - process capacity is not limited by the demand rate - all of the above are correct
process capacity is not limited by the demand rate
Which of the following conclusion is NOT correct if we find seven consecutive points decreasing on a C chart? - quality is getting worse - the process is out of control - the process has assignable variation - the process does not operate as expected - the process has shifted in a nonrandom way
quality is getting worse
Which of the following is defined as the difference between the highest and lowest numbers in a sample? - mode - median - range - standard deviation
range
Which of the following is an example of an internal failure cost associated with quality? - material inspection - quality training - customer complaints - scrap
scrap
Which of the following terms describes the number of customers that can be handled at a given time? - service time - arrival rate - length - service rate
service rate
When managing a waiting line, a manager must consider the trade-off between: - the cost of providing slower service and the cost to employees - the cost of employee breaks and the cost of waiting - the cost to employees and the cost to customers - the cost of providing more rapid service and the cost of waiting
the cost of providing more rapid service and the cost of waiting
According to the Little's Law, which of the following can be used to estimate work-in-process inventory? - setup time / throughput rate - throughput rate * flow time - process velocity / flow time - value added time / process velocity - process time / cycle time
throughput rate * flow time
Providing customers with a pre-show when they are waiting in line for an amusement park ride is an example of which technique to manage queues? - encouraging customers to come back during slack periods - informing the customers of what to expect - trying to divert the customer's attention while waiting - segmenting the customers
trying to divert the customer's attention while waiting
Which of the following is not a way to control arrivals? - establish specific hours for customers - run a special promotion - require appointment - use a faster machine
use a faster machine
What does the term line capacity describe in a queuing system? - source population - waiting room space - number of channels - customer arrivals
waiting room space
Caterpillar makes more than 20 different types of machinery with low volume. Which of the following best describes Caterpillar's production process? - continuous process - assembly line - workcenter - project
workcenter
