Operations Management: Exam 2

Uncommitted inventory (inventory that has not yet been sold) is called: A. Available-to-promise inventory. B. Free inventory. C. Safety stock. D. Lead time inventory E. Obsolete inventory

A. Available-to-promise inventory.

A Poke-Yoke is used to.. A. Determine which problems represent the "significant few." B. Find bottlenecks in a constricted process. C. Identify process Stakeholders D. Activate constituent participation E. Mistake-proof a process

A. Determine which problems represent the "significant few."

One thing that makes aggregate planning in services easier than aggregate planning in manufacturing is: A. Labor is more flexible. B. Labor availability is more predictable. C. Inventory is less perishable. D. Inventory is cheaper to hold. E. Demand is less variable.

A. Labor is more flexible.

In order to use the level capacity strategy, variations in demand are met by: A. Using combination of inventories, overtime, part time, and back orders. B. Varying output during regular time by changing employment levels. C. Varying output by changing overtime levels. D. Varying output during regular time without changing employment levels. E. Hire and layoff workers.

A. Using combination of inventories, overtime, part time, and back orders.

The phase of quality assurance from least progressive (bad) to most progressive (good) are: A. Acceptance sampling, continuous improvement, process control B. Acceptance sampling, process control, continuous improvement C. Continuous improvement, process control, acceptance sampling D. Continuous improvement, acceptance sampling, process control E. Process control, continuous improvement, acceptance sampling

B. Acceptance sampling, process control, continuous improvement

Which of these products would be most likely to have mostly dependent demand? A. Refrigerators B. Automobile engines C. Televisions D. Brownies E. Automobiles

B. Automobile engines

Suppose in a up/down run chart the points are coded as follows: UUDDDUDDUDUUU. How many runs is that? A. 1 B. 4 C. 7 D. 13 E. 14

C. 7

Aggregate planning for services is more difficult than aggregate planning for manufacturing because ___________ and __________ are more difficult to predict. A. Capacity availability; customer tastes B. Holding costs; overtime costs C. Demand; capacity availability D. Capacity change costs; holding costs E. Hiring costs; holding costs

C. Demand; capacity availability

One area to which aggregate planning decisions relate is: A. Job sequencing B. Quality C. Inventory levels D. Location E. Layout

C. Inventory levels

Here are 4 tasks in planning: 1. Calculate quantity available to promise 2. Develop the aggregate plan 3. Develop the Master Production Schedule 4. Develop the Master Schedule What is the correct order of those tasks (from first to last)? A. 4, 2, 1, 3 B. 3, 1, 4, 2 C. 1, 4, 2, 3 D. 2, 4, 3, 1 E. 3, 2, 4, 1

D. 2, 4, 3, 1

Closed-Loop MRP (MRP II) improved on MRP by adding other functional areas to the information being generated and... A. Adding automatic ordering for parts/subassemblies that are purchased B. A real-time connection to vendors (by projecting demand backwards through the supply chain) C. Automatically adding safety stock and safety lead time as needed for purchased parts D. By tracking costs and projecting future costs based on past performance E. Making sure the MRP generated plan didn't require more capacity than available

D. By tracking costs and projecting future costs based on past performance

I use a p chart instead of a c chart to control... A. The number of scratches on a table. B. The number of calls to a 911 call center on a weekend. C. The number of nicks in a wire. D. The number of students who passed an exam. E. The number of times a computer crashed in a month.

D. The number of students who passed an exam.

What is the meaning of the drawing shown below? A. The process is under control B. The process is not under control C. The process is capable D. The process is not capable E. The process concerns an attribute

D. The process is not capable

Which one of the following is not a basic option for altering demand (as opposed to altering supply)? A. Promotion B. Backordering C. Pricing D. Subcontracting E. All are demand options.

E. All are demand options.

Which of the following is not a basic option for altering the availability of capacity in a service environment? A. Overtime B. Inventory C. Part time D. Hiring/layoff E. All of the choices are options.

E. All of the choices are options.

Aggregate planners attempt to balance: A. Demand and sales. B. Demand and costs. C. Capacity and inventories. D. Capacity and costs. E. Capacity and demand.

E. Capacity and demand.

Planned Order Receipts are not always the same as Net Requirements because... A. Planned Order Receipts do not include Scheduled Receipts B. Planned Order Receipts need to be offset in time by the lead time. C. Items may have to be ordered in multiple of a lot size D. Trick Question! - Planned Order Receipts must equal Scheduled Receipts E. Planned Order Receipts must be reduced by Projected on Hand to get the Net Requirements

E. Planned Order Receipts must be reduced by Projected on Hand to get the Net Requirements

Net requirements equals... A. Gross requirements - projected on hand B. Projected on hand + planned order receipts C. Planned order receipts offset by the lead time D. Planned order receipts + scheduled receipts E. Planned order releases - projected on hand

E. Planned order releases - projected on hand

Which of the following is an attribute? A. The volume of a pop bottle. B. The weight of a box of cereal. C. The ph of a shampoo. D. The length of a lego brick. E. The proportion of typos in a letter.

E. The proportion of typos in a letter

"Centralized Inspection" is inspection done on the assembly line.

False

Aggregate planning is used to establish general levels of employment, output, and inventories over the long term (from 2 to 7 years).

False

Control limits are used to determine process capability.

False

Controlling for attributes require both a mean and range control chart.

False

Disaggregate an aggregate plan leads to a master production schedule which is then used to develop the master schedule.

False

In a level capacity strategy (as opposed to a chase strategy), production is set equal to demand to eliminate the need to hold inventory.

False

Near term time fences on a master schedule are "liquid" (changeable) while those further in the future are "frozen."

False

Random variation is also called special cause variation or assignable variation.

False

Run charts and control charts are concerned with different questions. Run charts are used to determine if a process is good enough while control charts are used to determine if variation is random or not.

False

The Taguchi loss function shows that there is no less as long as production output is within specification limits.

False

The outcome of a single roll of 1 die is normally distributed.

False

The question we are asking when we calculate process capability is, "Does the process have any non-random variation?"

False

Upper and lower control limits differ from specification/tolerance limits because control limits come from product designers while the specification/tolerance limits come from the process itself.

False

A process may still have non-random variation even if all sample statistics (means, range, etc.) plot within the control limits.

True

Although an aggregate plan may cover an entire year, it will still be redone every month.

True

Attributes (unlike variables) are things we can count.

True

Cpk will give the correct process capability even if the process is not centered between the specification limits.

True

Even if a process is under control it will still exhibit random variation.

True

If we plot outside the control limits on a control chart, and there is no special cause for it, we are experiencing Type I error.

True

In a regenerative MRP system changes to the production plan are done periodically (that is, they are not done as they happen, but are collected and done in a batch).

True

In doing aggregate planning for a firm producing paint, the aggregate planners would deal with something like gallons of paint without concern for the specific colors or can sizes.

True

Independent demand is market demand.

True

Independent demand is more steady than dependent demand. That is, it doesn't change as much as dependent demand does from one moment to the next.

True

Lot-for-lot ordering in MRP means that we must order a multiple of a minimum lot size.

True

R charts are used to track the width of a sample distribution.

True

The average of 4 rolls of 1 die will vary less than the outcomes of a single roll of 1 die.

True

The term "pegging" refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.

True

Upper and lower control limits differ from specification/tolerance limits in that every single item being produced must be within specification/tolerance limits while control limits are only for statistics that represent an entire sample (more than one item).

True

With a reactive aggregate planning strategy one attempts to produce to satisfy demand rather than try to change (increase or decrease) it.

True