Principles of Manufacturing Midterm 1
T/F. A matrix project structure is often referred to as a "skunkworks."
False - a pure project is nicknamed skunkworks
T/F. A process map shows the physical location of the various processes within a supply chain.
False.
Which of the following are alternative possible service encounters included in the Service-System Design Matrix? Mail contact Warranty Sales call Field service None of these
Mail contact
A firm fills its customer's orders from finished goods inventory. It is a:
Make - to - stock firm
What is meant by the term "operations effectiveness"?
Performing activities in a manner that best implements strategic priorities at minimum cost.
A work breakdown structure is used in project management but it is not used when the critical path method is involved.
False
Activity-system maps depict the geographic reach of a company's business strategies
False
In a multi-factor measure of productivity the numerator of the ratio would include all the used or all inputs
False - in multi-factor measure of productivity, the denominator includes several but not all inputs
T/F. The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete.
False.
T/F. The master production schedule states the number of items to be produced during specific time periods.
True
The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio is called flexibility
False - Straddling
The second step in managing a project is writing the statement of Work.
False - a project starts out as a statement of work
In the service-system design matrix, an internet and on-site technology service encounter is expected to have which of the following? -High sales opportunity -High degree of customer/server contact -Low production efficiency -High production efficiency -None of these
High production efficiency
A process can be effective without being efficient
True
Operations and supply strategy can be viewed as part of a planning process that coordinated operational goals with those of the larger organization
True
Services are in tangible processes that cannot be weighed or measured
True
T/F. In services, once the aggregate staffing level is determined, the focus is on short-term workforce and customer scheduling.
True
The term electronic commerce refers to the use of the internet as an essential element of business activity
True
Productivity general formula
Output/Inputs
Which of the following is a partial measurement of productivity? Output/materials Output/(Labor+Capital+Energy) Output/All resources used Output/Inputs All the above
Output/Materials
If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce 400 units was 350 hours, what kind of productivity measure could you used to compute productivity?
Partial Measure
Which of the following is considered a primary report in an MRP system? Planned order schedule Peg report Planning report Inventory accuracy report Aggregate production plan report
Planned order schedule
It is critical that a sustainable strategy meet the needs of shareholders and employees. It is also highly desirable that it preserves the environment
False
Supply networks cannot be constructed for every product or service
False
T/F. Process selection refers to the strategic decision of choosing the volume of output to produce in a manufacturing facility depending upon the way that facility produces.
False
Some of the advantages of a functional project where the project is housed in a functional division include which of the following? -The project manager has full authority over the project -Team pride, motivation, and commitment are high -A team member can work on several projects -Needs of the client are secondary -None of these
A team member can work on several projects
Which of the following industry types have high expected benefits from the application of MRP? Fabricate-to-order Hospitals Assemble-to-order Aircraft manufacturers Oil refineries
Assemble to order
A bank manager position is not an OSCM-type job
False
Percent Change Formula
(New - Old)/Old
You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure. The cycle time of the line is 5 minutes and the sum of all that tasks required on the line is 25 minutes. Which of the following is the correct value for the resulting line's efficiency? 0.500 0.833 0.973 0.990 None of these
0.833
Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600? 670 600 530 70 None of these
70
Which of the following is an input file necessary to run an MRP system? Bill of materials (BOM) file Quality management report Exception reports Planned-order schedules Purchasing contracts
Bill of materials (BOM) file
Which of the following is not a suggestion for managing queues presented in the textbook? -Train your servers to be friendly -Segment the customers -Determine an acceptable waiting time for your customers -Inform your customers of what to expect -Encourage customers to come during slack periods
Determine an acceptable waiting time for your customers
You are looking at a chart that has the terms BCWS, BCWP, and AC indicating lines on the chart. What kind of graph are you looking at?
EVM Chart
The acronym ERP stands for
Enterprise Resource Planning—A data base of that ties together all application programs in a firm. Enterprise resource planning (ERP) is a computer system that integrates application programs in accounting, sales, manufacturing, and the other functions in a firm. This integration is accomplished through a database shared by all the application programs.
T/F. In a net change MRP system requirements and schedules are considered rigid and never updated.
False. Net change systems are "activity" driven and requirements and schedules are updated whenever a transaction is processed that has an impact on the item. Net change enables the system to reflect in "real time" the exact status of each item managed by the system.
T/F. Aggregate Planning Techniques is developed from the master schedule and the strategic capacity plan.
False. Note again from Exhibit 8.1 Overview of Major Operations and Supply Chain Planning Activities, that the aggregate plan precedes the master schedule.
T/F. Pricing for a service should primarily relate to the cost of providing the service and has little to do with capacity issues the service provider might face.
False. Pricing also should relate to addressing specific capacity problems.
Which of the following is an alternative possible service encounter included in the service-system design matrix? Face-to-face distance Internet Questionnaire response Automated teller (ATM) Response card encounter
Internet
According to Little's Law, which of the following ratios is used to find throughput rate? Cycle time/Process time Throughput time/Process velocity Process velocity/Throughput time Inventory /Flow time Value added time/Process velocity
Inventory/Flow time
Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal? Economic Order Quantity Lot for lot Least total cost Least unit cost ABC analysis
Least total cost.
Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal? Kanban Just-in-time system MRP Least unit cost Least total cost
Least total cost.
A roller coaster ride in an amusement park employs which type of queuing system line structure?
Single channel, single phase
When balancing an assembly line, which of the following is not a way to reduce the longest task time below the required workstation cycle time? -Upgrade the equipment -Assign a roaming helper to support the line -Split the task between two workstations -Speed up the assembly line transfer mechanism -Use a more skilled worker
Speed up the assembly line transfer mechanism
Which of the following is considered a "pure" production planning strategy? Variable workforce, stable work hours Lag demand Level playing field Stable workforce, variable work hours Product warehouse
Stable workforce, variable work hours. There are essentially three production planning strategies. These are called level, chase and stable workforce—variable work hours. When just one of these variables is used to absorb demand fluctuations, it is termed a pure strategy.
There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes? Task Time Teamwork Trust Talent
Task. These can be classified into warning methods, physical or visual contact methods, and by what we call the Three T's —the Task to be done (Was the car fixed right?), the Treatment accorded to the customer (Was the service manager courteous?), and the Tangible or environmental features of the service facility (Was the waiting area clean and comfortable?).
Which of the following is an input to the master production schedule (MPS)? Inventory records file The aggregate plan The bill of materials The exception report Planned order schedules
The aggregate plan
From an operational perspective yield management is least effective under which of the following circumstances? -Demand can be segmented by customer -The product can be sold in advance -The product can be kept to be sold when demand is stronger -Fixed costs are high and variable costs are low -Demand is highly variable
The product can be kept to be sold when demand is stronger.
In essence, a queuing system includes several major components. Which of the following is not one of them? Source population Servicing system How the customer exits the system The queue discipline None of these
The queue discipline
Which of the following are the three major components of a queuing system?
The source population and the way customers arrive at the system, the serving systems, and how customers exit the system.
T/F. An important aspect of service products is that they cannot be inventoried.
True.
T/F. Ideally in waiting line or queuing analysis we want to balance the cost of service capacity with the cost of waiting.
True.
T/F. The focus in the make-to-stock environment is on providing finished goods where and when the customers want them
True.
T/F. The term "assembly line" refers to progressive assembly linked by some material handling device.
True.
T/F. Yield management is the process of allocating the right type of capacity to the right type of customer at the right prices at the right time to maximize revenue or yield.
True.
T/F. One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.
True. A continuous process is similar to an assembly line in that production follows a predetermined sequence of steps, but the flow is continuous such as with liquids, rather than discrete.
T/F. Assembling-to-order means moving the customer order decoupling point from finished goods to components.
True. Assembling-to-order derives significant advantages from moving the customer order decoupling point from finished goods to components.
In an overview of the major operations planning activities in a typical service organization, which of the following activities follows aggregate sales and operations planning? Process planning Workforce scheduling Master scheduling Materials requirements planning Order scheduling
Workforce scheduling
Decisions that relate to the design of the processes and the infrastructure needed to support these processed relate to which OSCM concept?
integrating operations and supply chain strategy with a firm's operational capabilities
Which of the following industry types have high expected benefits from the application of MRP? Fabricate-to-stock Fabricate-to-order Assemble-to-stock Continuous process Service and repair parts
Assemble-to-stock
T/F. In a practical sense, an infinite queue is one that includes every possible member of the served population.
False. An infinite population is large enough in relation to the service system so that the change in population size caused by subtractions or additions to the population does not significantly affect the system probabilities.
T/F. The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.
False. Companies commonly use simple cut-and-try charting and graphic methods to develop aggregate plans.
T/F. Effective management of services requires a clear focus on understanding operations, so much so, that it may even require the exclusion of consideration of marketing or personnel.
False. It is difficult to separate the operations management functions from marketing in services.
T/F. The lot-for-lot (L4L) lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.
False. Lot-for-lot (L4L) is the most common technique. It • Sets planned orders to exactly match the net requirements. • Produces exactly what is needed each week with none carried over into future periods. • Minimizes carrying cost. • Does not take into account setup costs or capacity limitations
T/F. The closer the customer is to the customer order decoupling point the longer it takes the customer to receive the product.
False. Selection of decoupling points is a strategic decision that determines customer lead times and can greatly impact inventory investment. The closer this point is to the customer, the quicker the customer can be served.
T/F Subcontracting is viewed as a risky strategy because the firm may lose control of product design and pricing.
False. Some level of subcontracting can be desirable to accommodate demand fluctuations. However, unless the relationship with the supplier is particularly strong, a manufacturer can lose some control over schedule and quality.
T/F. The economic order quantity (EOQ) lot sizing technique uses the "square root formula" to balance setup cost, carrying cost and cost of stock-outs.
False. The EOQ model balances setup and holding costs.
T/F. The time-phased plan specifying how many and when the firm plans to build each end item is called the Materials Requirements Plan (MRP.)
False. The master production schedule (MPS) is the time-phased plan specifying how many and when the firm plans to build each end item.
T/F. The sales and operations planning process is made up of a variety of analytical techniques that interact to produce short and intermediate term goals.
False. The sales and operations planning process consists of a series of meetings, finishing with a high-level meeting where key intermediate-term decisions are made.
T/F. The valuations in an Earned Value Management analysis must be either profits or revenue.
False. The valuations could be based on either a value measure or a cost measure.
T/F. An input to the material requirements planning (MRP) system is an exception report.
False. This BOM file is one of the three main inputs to the MRP program. (The other two are the master schedule and the inventory records file.)
T/F. Little's Law states that supply chain processes can be regarded as unrelated and thus treated and analyzed separately.
False. We can think of Little's law as a relationship between units and time
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 High production efficiency Low degree of customer/server contact None of these
Low production efficiency
Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position? Cost or price Delivery speeds delivery reliability Management acumen coping w changes in demand
Management acumen
In an overview of the major operations planning activities in a typical organization, which of the following activities precedes aggregate sales and operations planning? -Process planning -Workforce scheduling -Master production scheduling -Materials requirements planning -Order scheduling
Process Planning
T/F. The critical path in a CPM analysis is found by locating the activities times with zero slack.
True
An order qualifier is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase
True
An order winner is a set of criteria that differentiates the products or services of one firm from another.
True
Complex projects are often subdivided into a series of tasks that are typically configured to be not longer than several months in duration.
True
Earned Value Management (EVM) is a technique for measuring project progress in an objective manner.
True
Just-in-time production was a major breakthrough in manufacturing philosophy pioneered by the Japanese
True
Operations and supply chain management is defined as the design operation, and improvement of the systems that create and deliver the firm's primary products and services
True
T/F. One of the advantages of a functional project organizational structure is that a team member can work on several projects.
True
T/F. One of the assumptions made using CPM is that project activities can be identified with clear beginning and ending points.
True
T/F. Poka-Yoke is roughly translated from Japanese as "Avoid Mistakes."
True
T/F. The Aggregate Operations Plan variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.
True
T/F. An example of an assemble-to-order firm is Dell computer.
True. In the assemble-to-order environment, a primary task is to define a customer's order in terms of alternative components and options since it is these components that are carried in inventory. A good example is the way Dell Computer makes desktop computers
T/F. Longest waiting time in line is a queue discipline discussed in the textbook.
True. Reservations first, emergencies first, highest-profit customer first, largest orders first, best customers first, longest waiting time in line, and soonest promised date are other examples of priority rules
T/F. The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand.
True. The main purpose of the aggregate plan is to specify the optimal combination of production rate, workforce level, and inventory on hand.
T/f. One trade-off illustrated by the product-process matrix is between flexibility and cost.
True. To produce nonstandard products at relatively low volumes, workcenters (flexible) should be used. A highly standardized product (low-cost commodity) produced at high volumes should be produced using an assembly line or a continuous process
T/F. The Aggregate Operations Planning variable "workforce level" refers to the number of workers needed to accomplish the planned production.
True. Workforce level is the number of workers needed for production (Production = production rate x workforce level).
