SCMT T/F Questions

A central premise of exponential smoothing is that more recent data are less indicative of the future than data from the distant past.

false

An improvement-driven reason for outsourcing is that it can increase cycle time.

false

Facility location decisions are made using analytical techniques that typically weigh a large number of different variables equally.

false

Fixed-time-period inventory models are "event triggered."

false

Logistics is a term indicating transportation choices for goods produced internationally but consumed domestically.

false

One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to determine the level of quality to specify.

false

Run time is calculated by multiplying the number of units in a batch by the setup time

false

Throughput rate of a production process is the amount of time a unit spends actually being worked on.

false

Trend lines are usually the last things considered when developing a forecast.

false

Utilization of a production process is the ratio of output to input.

false

A restriction in using linear regression is that it assumes that past data and future projections fall on or near a straight line.

true

Acceptance sampling is performed on goods that already exist to determine what percentage of items conforms to specifications.

true

Because the world is becoming more highly interconnected, the proximity of an important supplier's plants is not crucial in supporting lean production methods

true

Design quality refers to the inherent value of the product in the marketplace.

true

Functional products include staples that people buy in a wide range of retail outlets, such as gas stations.

true

If you want to reduce process flow time, it has been suggested that you can perform activities in the process in parallel.

true

It is impossible to have zero variability in production processes.

true

One SPC tool used in total quality management is the Pareto chart.

true

One characteristic of a well-designed service system is that it is cost-effective.

true

The objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities, equipment, and overall labor force size) that best supports the company's short-range competitive strategy.

FALSE

The only major supply chain processes are planning, sourcing, delivering, and returning.

FALSE

The second step in managing a project is writing the statement of work.

FALSE

When plotted on a graph, the learning curve can't be expressed as logarithm.

FALSE

Work-center layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements.

FALSE

One hundred percent inspection is justified when the cost of inspection is low.

False

"Operations" refers to manufacturing and service processes used to transform resources employed by a firm into products desired by customers.

TRUE

An operations and supply chain strategy must be integrated with the organization's corporate strategy.

TRUE

Concept development is one of the typical phases of product development.

TRUE

In a forecasting model using simple moving average, the shorter the time span used for calculating the moving average, the closer the average follows volatile trends.

TRUE

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

One of the advantages of a functional project organizational structure is that a team member can work on several projects.

TRUE

One of the assumptions made using CPM is that project activity sequence relationships can be specified and networked.

TRUE

One of the methodologies that can aid in designing a new product for customers is a house of quality matrix.

TRUE

Productivity is a relative measure.

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 straddling.

TRUE

A process can be effective without being efficient

True

An important aspect of service products is that they cannot be inventoried.

True

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skill

True

A piece of equipment with twice the capacity of another piece typically costs twice as much to purchase and to operate.

FALSE

An assumption of learning curves is that the time required to complete a unit will increase at an increasing rate as the cumulative number of units completed increases.

FALSE

An event unit package is a subdivision of a project.

FALSE

An operations strategy must resist change because of the long-term nature of equipment and personnel investments.

FALSE

Because little or no inventory is carried in a service operation, it is easy to separate the operations management functions from marketing in services.

FALSE

Break-even analysis can only be used in production equipment decision making when dealing solely with variable costs.

FALSE

Capacity can be defined as the input that a system is capable of achieving over some unit of time.

FALSE

Core competencies are those things that everyone in the firm must be able to do well.

FALSE

Economies of scale and the learning curve have opposite effects on capacity.

FALSE

Efficiency means doing the right things to create the most value for the company.

FALSE

Safety stock is not necessary in any fixed-time-period system.

FALSE

Conformance quality is a strategic decision for a firm.

False