Chapter 7, Chapter 7S, Chapter 8, Chapter 9, Chapter 4, Midterm, Operations Management - Chapter 4, Operations Management - Chapter 7, Operations Management - Chapter 8, Operations Management - Chapter 9, Chapter 4 - OPMT 303, Chapter 4 Post Quiz, SC...

Optical checkout scanners and ATMs are examples of technology's impact on services.

True

Many lower level jobs are monotonous and boring.

TRUE

No stopwatch is required in a work sampling study.

TRUE

One disadvantage of specialization is worker dissatisfaction.

TRUE

If a forecast is consistently greater than (or less than) actual values, the forecast is said to be biased.

True

making it right the first time

a manufacturing based definition of quality

SELF concept

a person's self-perception as a physical, social, spiritual being self-esteem self-efficacy self-monitoring

reducing inequity...

change the comparison to others - compare yourself to people more like you

job design

changing the content/process of a specific job to increase job satisfaction and performance

Service Blueprinting

focuses on the provider's interaction with the customer

the 4 M's of cause and effect diagrams are

material, machinery/equipment, manpower and methods

The primary purpose of the Mean Absolute Deviation in forecasting is to

measure forecast accuracy

Random variations

"Blips" in the data caused by chance and unusual situations. Follow no pattern and cannot be predicted.

Excitement characteristics are categories in the _________ model.

Kano ( The Kano model is an alternative to "more is better" design approaches. )

Industrial location analysis typically attempts to:

Minimize costs

which of the following is NOT an element of lean?

Modularizing the master schedule

Work breakdown structure

Structure by level: 1. Project 2. Major tasks in the project 3. Sub tasks in major tasks 4. Activities or work packages to be completed

Design for production takes into account the capabilities of the organization to produce or deliver a given product or service.

T

fishbone diagram

The cause-and-effect diagram is also called a(n) ________

Process benchmarking

_____ focuses on business processes, trying to identify and observe best practices

informal work groups

friend groups interest groups (book group, amateur sports team)

task roles

task-oriented roles communicator, idea generator, leader

a 3 sigma program has how many defects per million?

2,700

Pareto chars

A graphic way of classifying problems by their level of importance, often referred to as the 80-20 rule.

Quality circle

A group of employees meeting regularly with a facilitator to solve work related problems in their work area.

generic, used by relatively inexperienced companies

Forced-choice model

Japanese for compass, course, policy, plan

Hoshin Kanri

Subaru's green plant is an example of the application of

ISO 14000

dual sourcing

In ________, the number of approved suppliers is reduced to just a few.

Six sigma

In a statistical sense, it describes a process, product, or service with an extremely high capability (99.9997% accuracy). Another meaning is that it is a program designed to reduce defects to help lower costs, save time, and improve customer satisfaction. Originally developed by Motorola, adopted and enhanced by Honeywell and GE. Defines, measures, analyzes, improves, and controls.

employees receiving something from within the same firm

Internal customer

Which of the following is the correct descending order for country competitiveness, according to the text?

None of the above is the correct descending order

High fixed costs and low variable costs are typical of which approach

Product and Mass Customization

Philip B. Crosby

Quality is free

Influenced by a culture of results and focuses on the benefits quality provides to the bottom line

The American Way

value chain

The ________ is a tool that dis-aggregates a firm into its core activities to help reduce costs and identify sources of competitiveness.

view the step in the chain after you as the customer

The chain of customers is revealed when you ________.

moments of truth

The fail points in the service blueprint are often referred to as ________.

Trend

The gradual upward or downward movement of the data over time. Changes in income, population, age distribution, or cultural views may account for movement.

FedEx believes:

The hub system helps reduce mishandling and delays due to better controls.

A time-series model uses a series of past data points to make the forecast.

True

A useful tactic for increasing capacity is to redesign a product in order to get more throughout.

True

Logistics, suppliers, inventory management, information flows, products, service

Things to manage

On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which:

Total costs are equal for two alternative locations.

Five quantitative forecasting methods and the two categories they fall into:

1. Naive approach 2. Moving averages 3. Exponential smoothing 4. Trend projection 5. Linear regression The first four are time series models while the last one is associative model.

Economic forecasts

Addresses the business cycle by predicting inflation rates, money supplies, housing starts, and other planning indicators. Used to prepare medium to long range forecasts.

FedEx chose Memphis, TN, as its U.S. hub because

All of the above are true

Attribute inspection

An inspection that classifies items as being either good or defective.

Location options don't usually include: A. expansion B. a contract C. adding new facilities D. moving E. doing nothing

B. a contract

The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is ___. A. brainstorming. B. check sheets. C. Pareto analysis. D. cause-and-effect diagrams. E. fail-safe methods.

C. Pareto analysis.

Products or services with a high degree of similarity of features and components are called: A. generic. B. copy-cat. C. rip-offs. D. product families. E. product/service matrix.

D

The term "degrees of newness" is associated with: A. average age of employees. B. average length of time on the job. C. total years of business experience. D. degree of design change. E. average age of the capital equipment.

D

Which of the following is an example of a postponement tactic? A. mass customization B. standardization C. process mapping D. delayed differentiation E. service blueprinting

D

stage 1 of perception

Selective Attention/Comprehension: looking around for the first time the process of being consciously aware of something or someone

Delayed differentiation and modular design are tactics for mass customization

T

Which of the following is not an advantage of standardization? The opportunity to freeze design at a very early stage. Fewer parts to deal with in inventory. Inventory management is less complex. Reduced training cost and time. Purchasing is more routine.

The opportunity to freeze design at a very early stage. ( Standardization doesn't necessarily help in freezing designs early. )

final product definition

create final drawings and define product families

which of the following is a form of structural change in a supply chain?

creating cross-functional team

If two variables were perfectly correlated, the correlation coefficient r would equal a. 0 b. -1 c. 1 d. borc e. none of the above

d

What is sometimes referred to as rated capacity? a. efficiency b. utilization c. effective capacity d. expected output e. design capacity

d

In time series which of the following cannot be predicted?

random fluctuations

intrinsic rewards

self-granted rewards

Traffic counts and demographic analysis of drawing areas are associated with

service location decisions

voluntary

services that we actively seek out and employ of our own accord are referred to as ____ services

Which of the following workers is the most productive?

$100 wages, 21 parts produced

Management: Skills Profile

1. dealing effectively with people 2. high skills mastery (be good at what you do) 3. female vs. male managers

three levels of organizational behavior

1. individual 2. group 3. organization

Which of the following smoothing constants would make exponential smoothing forecast equivalent to a naive forecast?

1.0

A 6 sigma program has how many defects per million?

3.4

Companies with the highest levels of quality are almost how many times more productive than their competitors with the lowest quality levels?

5

process map

A ________ determines the parameters for process improvement.

Target oriented quality

A philosophy of continuous improvement to bring the product exactly on target.

As described in the book, Aerotropolis, nowadays location decisions worldwide are often being based on what?

Airports

Operations managers must be able to anticipate changes in which of the following?

All - product volume, product opportunities, product mix, the products themselves

time series data may exhibit which of the following behaviors?

All - trend, seasonality, random variations and cylces

Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to determine if Union labor prices are the cause of the Detroit's financial woes, which of the following should be used?

Both A or B

A job has a normal time of 12 minutes, a performance rating of .80, and an allowance factor of 20 percent of job time. The standard time for this job in minutes is: A. 11.52 B. 12 C. 14.4 D. 15 E. depends on the number of cycles observed

C. 14.4

One of these is not a characteristic of a well-designed service system:

C. Distributed computer networks Well-designed service systems tend to be user friendly, robust, cost-effective and easy to sustain.

Source inspection

Controlling or monitoring at the point of production or purchase- at the source.

a receiver of good or services typically an economic transaction

Customer

The center of gravity method is used to _______ travel time, distance and costs. A. Normalize B. Eliminate C. Average D. Minimize E. Document

D. Minimize

which of the quality gurus advocates organizations driving out employee fear?

Deming

Joseph Juran

Emphasized teamwork

What type of business arrangement can be the easiest and most cost effective way for a company to enter the international arena?

Exporting

At the country level what is a considered location decision?

Location of markets

A major benefit of computer-aided design (CAD) is the increased productivity of designers.

T

The normal time in time study is obtained by multiplying the observed time by the performance rating.

TRUE

activity network diagram

The ________ is also known as a PERT diagram or critical path diagram and is used in controlling projects.

Which of the following is false regarding repetitive processes?

They allow easy switching from one product to the other

What is the primary reason why retailers tend to locate high-draw items around the periphery of the store?

This arrangement will help to maximize customer exposure to other items in the store

Brazil has had slow economic growth over the last few years, but is still one of the fastest growing emerging economies in the world.

True

Changes in capacity may lead, lag, or straddle the demand.

True

If the schedule calls for the production of 120 units per day and 480 minutes of production time are available per day, the cycle time should be 4 minutes.

True

One guideline for a retail layout is to locate high-draw items around the periphery of the store.

True

Product failures can be easier to remedy with modular design. T/f ?

True ( Modular designs make it easy to change only portions of the design. )

Unfavorable exchange rates can offset other savings in a location decision. True or false.

True.

Final step

manufacture, deliver, and use

the layout strategy that deals with low volume, high variety production is

none of the above

which of the following statement is NOT true about process flow analysis?

process flow must always be forward, it cannot loop backwards

In location planning, environmental regulations, cost and availability of ultilities and taxes are

regional/community factors

maintenance roles

relationship building important with conflict; makes sure the group works well together

An assembly line is an example of a

repetitive process

the process control chart

separate assignable causes from common causes

what is the bottleneck?

the lowest through put process, the slowest process in production

One possible disadvantage of modular design is that:

the number of configurations of modules decreases. ( Modular designs do have the effect of reducing variety. )

customer future needs projection

use data to project, maintaining awareness of market and competition

Harley Davidson

uses work cells to feed its assembly line

What two numbers are contained in the daily report to the CEO of Walt Disney Parks & Resorts regarding the 6 orlando parks?

yesterdays forecasted attendance and yesterdays actual attendance

What % of sales from new products is indicative of industry leaders?

50%

prioritization grid

A(n) ________ is used to make decisions based on multiple criteria

The symbols for operation, storage, transportation, inspection, and delay would usually be found on which type of chart? A. Flow process B. Gantt C. Simultaneous motion D. Worker-machine E. Delay analysis

A. Flow process

Which of the following statements should not characterize an operations strategy toward the design of work systems? A. Manufacturing technology is the heart of a business. B. Workers can make or break a business. C. Workers can be a valuable source of insights. D. A spirit of cooperation can contribute to success. E. Workers can be proud and respected.

A. Manufacturing technology is the heart of a business.

A chart showing the number of occurrences by category would be used in: A. Pareto analysis B. interviewing C. cause-and-effect diagrams D. benchmarking E. none of the above

A. Pareto analysis

Lost production time, scrap, and rework are examples of ___. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs

A. internal failure costs

A one-hour photo processing machine in a Wal-Mart store is an example of a ___. A. micro-factory B. downsize strategy C. diversified strategy D. lean production system E. falling price strategy

A. micro-factory

In a stopwatch time study, the average time it takes a given worker to perform a task a certain number of times is the: A. observed time B. normal time C. standard time D. allowance time E. performance rating time

A. observed time

In location planning, the location of raw materials, the location of markets, and labor factors are: A. regional factors B. community factors C. site-related factors D. national factors E. minor considerations

A. regional factors

Asking questions about the current process in the hope that it will lead to important insights about why the current process isn't working as well as it could is called: A. the "5W2H approach" B. using quality circles C. benchmarking D. PDCA cycle E. none of the above

A. the "5W2H approach"

Includes all supplier initiated contact with customers: telephone, focus groups, surveys useful in measuring perceptions

Actively Solicited Customer Feedback

Adaptive smoothing

An approach to exponential smoothing in which the smoothing constraint is automatically changed to keep errors to a minimum.

Which of the following is not a reason for redesigning a product or service? A. to reduce labor or material cost B. to increase the level of employee satisfaction C. to increase the level of customer satisfaction D. to attract and increase customer demand E. to increase quality

B

Which of these pairs of functions would tend to be affected most dramatically by a product or service redesign? A. Operations and Accounting B. Marketing and Operations C. Finance and Human Resources D. Engineering and Accounting E. Finance and Engineering

B

An electrical appliance will not work unless component QK does. Component QK's reliability is 0.95. Every other part of the appliance is 100 percent reliable. What would the reliability of the appliance be if a backup QK were added? A. .95 B. .9975 C. .9025 D. .9205 E. .9795

B The reliability is .95 + [(1 - .95)*.95].

A job had an observed time of 10 minutes, a performance rating of .90, and an allowance factor of 20 percent of job time. Twenty-five cycles were timed. Standard time for the job in minutes is: A. 10.0 B. 10.8 C. 12.5 D. 15.0 E. depends on the number of cycles observed

B. 10.8

Designing for recycling helps facilitate ______.

B. Compliance with regulatory environments Regulatory environments are increasingly focused on encouraging recycling.

Management behaviors supporting an organizational culture that encourages continuous improvement include which of the following? (I) develop a vision statement for the organization (II) develop a reward system that promotes the philosophy (III) institute continuous training programs (IV) make decisions that adhere to the philosophy A. I, II, and IV B. I, II, III, and IV C. I and III D. II, III, and IV E. II and IV

B. I, II, III, and IV

The Deming Prize was established by the ___. A. American Statistical Association B. Japanese C. North American Free Trade Association D. American Quality Society E. World Trade Organization

B. Japanese

"Must have", "expected" and "excitement" characteristics are categories in the ____ model.

B. Kano The Kano model is an alternative to "more is better" design approaches

Service design generally differs from product design in which of the following ways?

B. There is less latitude in detecting and correcting errors prior to delivery. Often service design flaws are not discovered until some customers have been served.

What will be the effect on sample size in work sampling of increasing the permissible maximum error? A. increase the number of observations needed B. decrease the number of observations needed C. no effect on sample size D. sometimes increase and sometimes decrease the sample size, depending on the analyst E. impossible to say without additional information

B. decrease the number of observations needed

Methods analysis and motion study techniques develop which aspect of jobs? A. behavioral aspects B. efficiency aspects C. pay levels D. all of the above E. none of the above

B. efficiency aspects

Warranty service, processing of complaints, and costs of litigation are examples of ___. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs

B. external failure costs

An approach to location analysis that can include both qualitative and quantitative considerations is: A. location cost-volume B. factor rating C. transportation model D. expected value (net present value) E. financial analysis

B. factor rating

Cause-and-effect diagrams are sometimes called: A. Pareto diagrams B. fishbone (Ishikawa) diagrams C. run charts D. control charts E. none of the above

B. fishbone (Ishikawa) diagrams

In services, flowcharts are useful for ____________.

B. identifying and determining the sequence of customer and service actions and interactions The customer-service interaction is depicted using flowcharts.

The four dimensions of quality that are sometimes used to determine fitness for use of a product are ___. A. performance, special features, durability, and service after sale B. performance, special features, conformance, and reliability C. special features, conformance, reliability, and durability D. performance, conformance, reliability, and durability E. special features, conformance, durability, and service after sale

B. performance, special features, conformance, and reliability

Which of the following is not a reason for redesigning a product or service?

B. to increase the level of employee satisfaction A product or service redesign does not necessarily involve improving employee satisfaction.

The method for evaluating location alternatives which minimizes shipping costs between multiple sending and receiving locations is: A. cost-volume analysis B. transportation model analysis C. factor rating analysis D. linear regression analysis E. MODI analysis

B. transportation model analysis

Asking a group of employees at a particular level to take on more responsibility is a form of ___________ loading, also known as job __________. A. horizontal; enlargement B. vertical; enrichment C. horizontal; enrichment D. horizontal; rotation E. vertical; rotation

B. vertical; enrichment

The technique which can be used to estimate the percentage of time a worker or piece of equipment is idle is known as: A. MTM B. work sampling C. methods analysis D. micro motion study E. none of these

B. work sampling

One possible disadvantage of modular design is that: A. replacement and repair are more difficult. B. failure diagnosis is more complex. C. the number of configurations of modules decreases. D. individual parts lose their identities. E. inventory problems arise.

C

The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas is called: A. design by imitation. B. product analysis. C. reverse engineering. D. benchmarking. E. disassembly.

C

The research and development activity which starts after positive research results are available and attempts to turn these results into useful commercial applications is: A. basic research. B. applied research. C. development. D. redesign. E. commercial research.

C

The time between failures for an electrical appliance is exponentially distributed with a mean of 25 months. What is the probability that the next failure will not occur before 30 months have elapsed? A. not in excess of .2 B. in excess of .2 but not in excess of .3 C. in excess of .3 but not in excess of .4 D. in excess of .4 but not in excess of .6 E. in excess of .6

C

Nearness to raw materials would be most important to a ... A. grocery store B. tax preparation service C. manufacturing company D. post office E. hospital

C. manufacturing company

One possible disadvantage of modular design is that:

C. number of configurations of modules decreases Modular designs do have the effect of reducing variety.

Variable inspection

Classifications of inspected items as failing on a continuum scale, such as dimensions or strength.

Which of the following is not a potential benefit of the use of self-directed teams? A. higher quality B. higher productivity C. greater worker satisfaction D. greater satisfaction for middle managers E. lower turnover

D. greater satisfaction for middle managers

The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is: A) brainstorming. B) check sheets. C) fail-safe methods. D) cause-and-effect diagrams. E) Pareto analysis.

E) Pareto analysis.

The typical difference between quality circles and continuous improvement teams is: A) continuous improvement teams work on product and process design. B) continuous improvement teams use only engineers, while quality circles use just the workers doing the work. C) quality circles work on product design only. D) There is no difference—they are the same. E) the amount of employee empowerment.

E) the amount of employee empowerment Quality circles often work with processes over which they have little authority.

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 550 units? A. $100,520 B. $102,500 C. $105,200 D. $100,250 E. $105,500

E. $105,500

The quality certification that deals primarily with conformance to customer requirements is ISO __________; ISO __________ is concerned primarily with the organization's effect on the environment. A. 14000; 24700 B. 9000; 24700 C. 24700; 9000 D. 14000; 9000 E. 9000; 14000

E. 9000; 14000

Which of the following is not a location option that management can consider in location planning? A. expand an existing facility B. add a new location C. relocate from one location to another D. do nothing E. All are possible options.

E. All are possible options.

When considering re-use issues for a given product, an important factor to take into account is that product's _______.

E. None of the above Remanufacturing refers to refurbishing used products.

Which of the following is an element of TQM? A. continual improvement B. competitive benchmarking C. operations Manager empowerment D. team approach E. all of the above

E. all of the above

Ideas for new or improved designs can come from:

E. all of the above Companies look to many sources for ideas for new or improved designs.

Which of the following is an issue that designers must take into account in product and service design?

E. all of the above Designs must reflect a large number of factors.

The "5W2H approach" involves: A. measuring width and height B. using 7 people C. using 2 people D. using 9 people E. asking questions

E. asking questions

Which statement best characterizes a typical search for location alternatives? A. identify the best location choice B. minimize cost consequences C. maximize associated profits D. locate near markets E. identify acceptable locations

E. identify acceptable locations

The term 'standardization' is closely associated with:

E. interchangeability Modular designs depend on standardized parts that are interchangeable.

Which of the following is not characteristic of time-based compensation plans? A. stable labor costs B. easier to administer than output-based plans C. stable pay for workers D. simpler wage computations than output-based plans E. lower cost per unit than output-based plans

E. lower cost per unit than output-based plans

Before a dimension of quality can be made operationally useful, it must be restated in some ___________ form. A. certifiable B. manipulative C. marketable D. qualitative E. measurable

E. measurable

Which of the following is not one of the phases of product design and development?

E. performance applied research Product design and development begins after applied research has been done.

If there is a good chance that one or a few employees could wind up in monotonous jobs, job __________ can be a good idea. A. alteration B. expansion C. enrichment D. enlargement E. rotation

E. rotation

Standard times derived from a firm's historical data are known as: A. predetermined times B. MTM C. work sampling times D. judgmental times E. standard elemental times

E. standard elemental times

A technique for estimating the proportion of time a worker spends on various activities is: A. stopwatch time study B. standard elemental (historical) times C. simultaneous motion study D. predetermined (published) time standards E. work sampling

E. work sampling

bill paying receivers of our work

External customer

A house of quality is achieved when no department in a single location has more than 15 percent rejects.

F

Availability cannot be increased without improving the time between breakdowns.

F

Basic research is done with the expectation that discoveries will have near-term commercial application.

F

Commonality of components is beneficial for manufacturing but not for services.

F

Concurrent engineering is another term for sequential development.

F

Concurrent engineering means that at least two engineers are involved in product design at the same time.

F

Consumers tend to resist purchasing products that contain recycled materials.

F

If a system depends on two subsystems functioning when activated, the reliability of that system is equal to that of the less reliable subsystem.

F

Modular design increases the costs of purchasing and controlling inventory compared to nonmodular.

F

One of the main advantages of standardization is that it increases the potential variety of products.

F

Quality function deployment (QFD) is based on a set of standards which relate customer requirements to company capabilities.

F

Quality function deployment is a structured approach that guarantees that the highest-quality product or service will be designed.

F

Robust design describes a product that will perform satisfactorily so long as it is used in a very narrow range of conditions

F

Standardization can at times lead to serious difficulties and competitive struggles, particularly when systems are running under different conditions.

F

Taguchi design methods involve identifying the optimal operating or environmental conditions for a given product.

F

The process of dismantling and inspecting a competitor's product to discover product improvement is called benchmarking.

F

The quality function deployment matrices are often referred to as the "house of quality" because, when completed, they "house" all of the customer's quality requirements.

F

The term failure as applied to reliability means that a part or item does not function at all.

F

To save money, it is essential that designers revise the production capabilities to meet the requirements of the new products.

F

"Knowledge-based pay systems" pay higher wages or salaries to workers who have completed college than to those who just finished high school.

FALSE

"Self-directed teams" help other work groups make changes to their processes.

FALSE

"Time-based systems" compensate employees according to the time the employee has worked and the amount of output they produce.

FALSE

Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations.

FALSE

For purposes of obtaining good time standards using a stopwatch time study, the analyst should try to avoid having the worker discover he or she is being observed.

FALSE

Global Positioning Systems (GPS) use the Center of Gravity method to establish starting grid co-ordinates.

FALSE

High Quality and low prices are both considered to be dimensions of quality.

FALSE

ISO standards apply only to manufacturing organizations.

FALSE

Job enrichment involves giving a worker a greater share of the total task which is why they feel enriched.

FALSE

Juran describes quality management as a trilogy that consists of quality planning, control of quality costs, and quality improvement.

FALSE

Location decisions are basically one-time decisions usually made by new organizations.

FALSE

Management compensation should be based primarily on organizational output.

FALSE

Measured day work refers to an output-based system.

FALSE

Methods analysis cannot be done for new jobs (ones that do not yet exist) since it requires observation of the process.

FALSE

Micro motion studies should be limited to periodic activities where breakthrough improvements are possible.

FALSE

Modern quality management emphasizes finding and correcting mistakes before they reach the customer - catching the errors before they are shipped.

FALSE

Motivation influences quality and productivity, but not the work environment.

FALSE

One of the major obstacles to implementing TQM is the emphasis on long-term financial results.

FALSE

One potential disadvantage of "self-directed teams" is higher training costs.

FALSE

One therblig is the equivalent of one hour of sustained work by one average person.

FALSE

Poor quality has a positive effect on productivity because it usually takes longer to produce a good part.

FALSE

Predetermined time standards are usually based on observing one very efficient worker performing the task.

FALSE

Predetermined time standards use historical data from a company's own files.

FALSE

Product design choices are usually the result of inputs from accounting and human resources.

FALSE

Quality at the source means returning all defects to the source - our vendors.

FALSE

Quality certification refers to a process of 100 percent inspection to catch all defective products before they leave the company; this allows every item to certified defect free.

FALSE

Quality of design refers to the degree to which goods and services achieve the intent of the designers.

FALSE

Technology has made communication with global operations as easy as local communication.

FALSE

The Baldrige award can only be won by manufacturing organizations.

FALSE

The Occupational Safety and Health Act (OSHA) is a regulatory burden that has been proven to have little impact on the safety and welfare of workers.

FALSE

The PDSA cycles is also referred to as the Baldrige Wheel.

FALSE

The benchmark organization must be chosen from the same industry in order for its methods to be applicable.

FALSE

The causes of variation in any process can be identified through the general categories of people, procedures, education and age.

FALSE

The center of gravity method is a location planning technique that determines a composite score from weighted factor evaluation.

FALSE

The degree to which a product or service satisfies its intended purpose is determined by design, conformance to design, cost, and reputation of the producer.

FALSE

The design of work systems, because objective standards are used, avoids most ethical issues.

FALSE

The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.

FALSE

The first step in developing location alternatives is identifying important factors.

FALSE

The most widely used method of work measurement is work sampling.

FALSE

The normal time for a job is multiplied by the performance rating to obtain the standard time for the job.

FALSE

The quickest, most effective way to improve an employee's job satisfaction is increase his or her compensation.

FALSE

The seven dimensions of quality are important for products but are not applicable in service organizations.

FALSE

The term "quality at the source" refers primarily to the practice of requiring each of our vendors to provide quality parts and materials.

FALSE

Total quality management is a collection of techniques, such as quality control charts, ISO 9000, and quality function deployment.

FALSE

We incorporate the average seriousness of accidents by measuring the number of lost-time accidents per million labor-hours worked.

FALSE

Web-based, retail businesses should be located near the customer to reduce their long distance phone charges.

FALSE

When problems arise in a total quality managed organization, it is important to assign blame and punish the worker responsible for causing the problem.

FALSE

Work sampling provides a detailed elemental breakdown of a task for purposes of establishing reliable time standards.

FALSE

Work sampling provides both quick and accurate estimates of activity times.

FALSE

You can't make a mistake by locating where labor costs are low.

FALSE

Zero defects requires 100% inspection of the final product.

FALSE

So long as quality input resources are used to make a product, we can expect quality output from the process.

FALSE Quality inputs help with quality but they do not guarantee it.

Zero defects requires 100 percent inspection of the final product.

FALSE Zero defects can be achieved through quality at the source.

Regardless of superior quality, consumers will not pay premium prices.

FALSE Customers will often pay premium process for superior quality.

Quality at the source means returning all defects to the source—our vendors.

FALSE Quality at the source refers to making each worker responsible for the quality of his or her own work.

Basic research is done with the expectation that discoveries will have near-term commercial application

FALSE Basic research is done with no clear expectations regarding commercial application.

Concurrent Engineering is another term for sequential development.

FALSE Concurrent engineering involves simultaneous product and production development.

"Concurrent engineering" means that at least two engineers are involved in product design at the same time.

FALSE Concurrent engineering means that engineers, marketing, manufacturing and purchasing personnel often are jointly involved in the product design.

Consumers tend to resist purchasing products containing recycled materials.

FALSE Consumers are beginning to respond positively when informed that their purchases contain recycled materials.

The process of dismantling and inspecting a competitor's product to discover product improvement is called benchmarking.

FALSE Dismantling and inspecting a competitor's product to discover product improvement is called reverse engineering.

The term failure as applied to reliability means that a part or item does not function at all.

FALSE Failure means that the part or item does not function as it should.

Standardization can at times lead to serious difficulties and competitive struggles, particularly when systems are running under different conditions.

FALSE It is the lack of standardization that can at times lead to serious difficulties and competitive struggles.

Commonality of components is beneficial for manufacturing but not for services.

FALSE Services can benefit from commonality in service elements.

The three R's - Reduce, Re-use and Recycle - are more applicable in service design than in product design.

FALSE Services cannot be re-used or recycled.

One of the main advantages of standardization is that it increases the potential variety of products

FALSE Standardization reduces the variety of products.

Taguchi design methods involve identifying the optimal operating or environmental conditions for a given product.

FALSE Taguchi design methods involve designing products that are relatively insensitive to environmental factors.

A 'House of Quality' is achieved when no department in a single location has more than 15% rejects.

FALSE The house of quality is a means of integrating the voice of the customer into the product or service development process.

Global teams provide diversity while eliminating conflicts and miscommunication.

FALSE Using globally diverse design teams increases the risks of conflicts and miscommunication.

A naïve forecast for September sales of a product would be equal to the forecast for August.

False

A product requires 24 separate tasks, and the sum of those task times is 14 minutes; if the cycle time is 2 minutes, then at least 12 workstations will be needed.

False

An example of the postponement strategy for improving service productivity is having the customer wait until you have sufficient time to serve the customer.

False

Building an additional warehouse is an incremental expansion, not a one-step expansion

False

The center-of-gravity method finds the location of a centralized facility, such as a distribution center, that will maximize the organization's revenue.

False

The dominant problem associated with the fixed-position layout is that workers are fixed in position, and cannot be reassigned.

False

The larger the number of periods in the simple moving average forecasting method, the greater the method's responsiveness to changes in demand.

False

Modular design increases the costs of purchasing and controlling inventory compared to nonmodular. T/F ?

False ( Modular designs make inventory management easier and cheaper. )

Which of the following questions is least appropriate during value analysis? How can we incorporate more cultural values in the design of our global system? How can we reduce the cost of parts? Could a given component in our product be simplified or combined with another? Can we find a way to use less energy in the production of our product? How can we improve the performance of the product?

How can we incorporate more cultural values in the design of our global system? ( In value analysis an attempt is made to reduce the cost and/or improve the performance of the product. )

Oliver's doctor in Nevada has decided to run several tests on him. The test results are then sent to India to be read by a doctor there because it costs less to analyze them in India. Isabelle has decided to go into business for herself and has been able to purchase a complete package of materials and services including managerial advice. Differentiate the market entry strategies that Oliver and Isabelle are both benefiting from.

Isabelle is using franchising, Oliver is using offshoring.

determine competitive priorities and define how to win orders, use that as a guideline

Order Winners

What factors would be considered at the region/ community level?

Proximity to raw materials and customers or cost and availability of utilities

A disadvantage of standardization is the possibility of standardizing designs too early, which may make them difficult to modify in the future.

T

A service blueprint is quite similar to an architectural drawing.

T

Applied research has the objective of achieving commercial applications for new ideas.

T

Applied research is the major R&D effort of business organizations because of their desire for commercial applications.

T

Concurrent engineering brings people concerned with manufacturing into the design phase earlier than in the "over-the-wall" approach.

T

Many U.S. manufacturers are now shifting their focus from products to both product and process improvements.

T

Most of the time what is called product or service design is actually a redesign of an existing product or service.

T

One approach to extending a product's life cycle is to promote alternate uses of the product.

T

One motivation for an organization to redesign its product or service is to avoid the alternative of downsizing the organization.

T

Product failures can be easier to remedy with modular design.

T

Product liability means that a manufacturer is liable for any injuries or damages caused by a faulty product because of poor workmanship or design.

T

Product reliability involves both short-term and long-term perspectives

T

Reducing consumer choices makes service more efficient.

T

Reliability is the probability that a product or system will function when activated.

T

Reliability refers to the ability of a product to perform its intended function under normal conditions.

T

Remanufacturing refers to removing some of the components of old products and reusing them in new products.

T

Research and development (R&D) refers to organized efforts that are directed toward increasing scientific knowledge and product (or process) innovation.

T

Service design often must take into account the degree of customer contact required.

T

Standardization refers to the extent to which there is absence of variety in a product, service, or process.

T

The demand for a product and the rate of technological change have a significant impact on the length of a given phase of the product life cycle.

T

The process of dismantling and inspecting a competitor's product to discover improvements is called reverse engineering.

T

"Output-based systems" compensate employees according to the amount of output they produce, thereby tying pay directly to performance.

TRUE

"Self-directed teams" are allowed to make changes in the work processes under their control.

TRUE

A "micro-factory" is a small, automated facility with a narrow product focus located near major markets.

TRUE

An advantage of work sampling, compared to a stopwatch time study, is that observations are spread out over a period of time in work sampling.

TRUE

An example of a regional factor in location planning is the location of our markets (either existing or potential).

TRUE

As a result of the factor rating analysis, a manager may sometimes reject all of the alternatives under consideration when the composite scores are below the minimum threshold value.

TRUE

Business organizations achieving good quality benefit in a variety of ways, including a positive reputation for quality, increased customer loyalty, and lower production costs.

TRUE

Convenience, Reliability and Assurance are dimensions of service quality.

TRUE

Crosby's concept of "quality is free" means that it is less expensive to do it right initially than to do it over.

TRUE

Customer expectations tend to change over time affecting their perception of service quality.

TRUE

Location decisions are closely tied to an organization's strategies.

TRUE

Many management compensation systems are being revised to reflect increased emphasis on quality and customer service.

TRUE

Medical malpractice claims are an example of how poor quality can affect an organization through liability.

TRUE

Methods analysis and motion study techniques do not directly consider behavioral aspects of jobs.

TRUE

One criticism of total quality management is that it may produce blind pursuit of quality to the neglect of other priority considerations.

TRUE

Predetermined time standards involve the use of published data regarding how long various activities are expected to take.

TRUE

Process mapping is part of process improvement.

TRUE

Quality of conformance refers to the degree to which goods and services conform to the intent of the designers as documented in the specifications.

TRUE

Recent changes to ISO guidelines stress continuous improvement regardless of how good you currently are.

TRUE

Reducing the variations in our product or service is an important key to perceived quality.

TRUE

Serviceability, Conformance and Reliability are dimensions of product quality.

TRUE

The center of gravity method is useful in location planning for the location of a distribution center.

TRUE

The customer is the focal point and customer satisfaction is the driving force in quality management.

TRUE

The degree to which a product or service satisfies its intended purpose is determined by service after delivery, ease of use, design, and conformance to design.

TRUE

The dimensions of product and service quality are too abstract to be applied operationally.

TRUE

The lower cost of foreign labor is often offset by lower levels of productivity.

TRUE

The primary difference between internal failures and external failures is time and place of discovery of the failure.

TRUE

The purpose of benchmarking is to establish a standard against which the organization's performance can be judged, and to identify a model for possible improvement.

TRUE

The standard time for a job can be obtained by multiplying the normal time by an appropriate allowance factor.

TRUE

Therbligs are basic elemental motions.

TRUE

There is a positive link between quality and productivity.

TRUE

Three key philosophies in TQM are continuous improvement, involvement of everyone in the organization, and customer satisfaction.

TRUE

Total quality management attempts to involve everyone in an organization in the effort to achieve quality.

TRUE

Trust is a factor influencing productivity.

TRUE

User instructions and follow-up services after delivery are important elements of overall product or service quality.

TRUE

When considering service quality, convenience often is a major factor.

TRUE

Work measurement concentrates on how long the tasks take to accomplish.

TRUE

Work sampling can be used to estimate the proportion of time a machine is idle.

TRUE

Work sampling involves the use of some method of randomizing the observations.

TRUE

Medical malpractice claims are an example of how poor quality can affect an organization through liability.

TRUE Poor quality can have serious financial effects.

"Design for production" takes into account the capabilities of the organization to produce or deliver a given product or service.

TRUE Design for production is important to ensure that product or service design decisions are feasible.

Reducing consumer choices makes service more efficient.

TRUE Efficiency comes from the standardization that results from reduced consumer choices.

Reliability refers to the ability of a product to perform its intended function under normal conditions.

TRUE Greater reliability translates into a greater likelihood of the product working in normal conditions.

Reliability can be defined in terms of a particular point in time or in terms of length of service.

TRUE Reliable designs can be counted on to work over time.

The process of dismantling and inspecting a competitor's product to discover improvement is called reverse engineering.

TRUE Reverse engineering is a legitimate means of evaluating the competitive landscape.

A disadvantage of standardization is the possibility of standardizing designs too early, which may make it difficult to modify in the future.

TRUE Standardization locks firms into designs that aren't easily changed.

Delayed differentiation and modular design are tactics for mass customization.

TRUE These allow variety without giving up too much in the way of standardization.

Most of the time what is called product or service design is actually a redesign of an existing product or service.

TRUE Usually the core product or service remains relatively unchanged even though other features are modified or enhanced.

which of the following uses three types of participants: decision makers, staff personnel and respondents?

The Delphi Method

Bangladesh native Iqbal Quadir realized that connectivity equals productivity. He also knew his impoverished homeland was one of the lease connected places on earth. He collaborated with fellow countryman to create Village Phone, which allows entrepreneurs (mostly women) to obtain microloans to purchase cell phones. This venture has resulted in thousands of new small businesses and improved communication. Decide what Iqbal is demonstrating with the invention of Village Phone.

The infrastructure is making economic development possible.

procedural justice

The perceived fairness of the process and procedures used to make allocation decisions

customer expectations and customer perceptions

The two parts of the SERVQUAL survey are ________.

Nestle SA gets most of its sales from outside its "home" country of Switzerland. It's 280,000 employees are spread all over the world and more than half of the company's managers are non-Swiss. Nestle has hundreds of brands and production facilities or other operations in almost every country in the world. Decide how Raquel's food distribution company, which has not yet branched out internationally, can follow Nestle's example.

They can become a geocentric company and favor no specific country

A primary concern that Americans have about Globalization is that:

They dislike the number of domestic jobs that have been off shored to other countries

Delphi method

Three types of participants: decision makers, staff personnel, and respondents. Decision makers consists of 5 to 10 experts who will make the forecast. Staff personnel assist decision makers by preparing survey results. Respondents are a separate group of people. All report to decision makers with input to help them make the forecast.

A firm's process strategy is its approach to transforming resources into goods and services.

True

A naive forecast for September sales of a product would be equal to the sales in August.

True

A process-oriented layout is the traditional way to support a product differentiation strategy.

True

A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y for every unit of time that passes.

True

A value-stream map includes both (1) inventory quantities, and (2) symbols for customers and suppliers.

True

An example of an intangible cost, as it relates to location decisions, is the quality of education.

True

Category management is the use of computer software to evaluate the profitability of merchandising plans.

True

Cross-docking processes items as they are received, rather than placing them in storage; this helps explain why "warehouses" are now called "distribution centers."

True

Cycles and random variations are both components of time series.

True

Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning.

True

Demand cycles for individual products can be driven by product life cycles.

True

Design capacity is the theoretical maximum output of a system in a given period under ideal conditions.

True

Expected output is sometimes referred to as rated capacity.

True

Fixed costs are those costs that continue even if no units are produced.

True

Flexible manufacturing systems, because of easily changed control programs, are able to perform such tasks as manufacturing one-of-a-kind parts economically.

True

Focus forecasting tries a variety of computer models and selects the best one for a particular application.

True

Forecast including trend is an exponential smoothing technique that utilizes two smoothing constants: one for the average level of the forecast and one for its trend.

True

In process-focused facilities, equipment utilization is low.

True

In selecting new equipment and technology, decision-makers look for flexibility—the ability to respond with little penalty in time, cost, or customer value.

True

In trend projection, the trend component is the slope of the regression equation.

True

Intermittent processes are organized around processes.

True

Job lots are groups or batches of parts processed together.

True

Labor cost and labor availability often drive the location decision in the call center industry.

True

Linear-regression analysis is a straight-line mathematical model to describe the functional relationships between independent and dependent variables.

True

Lists have been developed that rank countries on issues such as "competitiveness" and "corruption."

True

Manufacturers may want to locate close to their customers, if the transportation of finished goods is expensive or difficult.

True

Many service firms use point-of-sale computers to collect detailed records needed for accurate short-term forecasts.

True

McDonald's "Made for You" kitchen system represents a strategic layout decision even though an obvious benefit of the system is a dramatic reduction in the inventory of food prepared in advance.

True

Most forecasting techniques assume that there is some underlying stability in the system.

True

One advantage of exponential smoothing is the limited amount of record keeping involved.

True

One drawback of a product-oriented layout is that work stoppage at any one point ties up the whole operation.

True

One essential ingredient of mass customization is modular design.

True

One guideline for determining the arrangement and space allocation of a retail store is to place high-impulse and high-margin items such as housewares and beauty aids in prominent locations.

True

One reason for a firm locating near its competitors is the presence of a major resource it needs.

True

One use of camera-and-computer-based vision systems is to replace humans doing tedious and error-prone visual inspection activities.

True

Price changes are useful for matching the level of demand to the capacity of a facility

True

Processes can be environmentally friendly and socially responsible while still contributing to profitable strategies.

True

Seasonal indexes adjust raw data for patterns that repeat at regular time intervals.

True

Service blueprinting is a process analysis technique that focuses on the customer and the provider's interaction with the customer.

True

Service firms choose locations based, in part, on the revenue potential of a site.

True

Servicescape refers to the physical surrounding in which the service is delivered.

True

Starbucks Coffee's use of geocoded demographic and consumer data in site selection decisions is an example of the use of a Geographic Information System, or GIS.

True

The assembly line is a classic example of a repetitive process.

True

The best way to forecast a business cycle is by finding a leading variable.

True

The factor rating method can consider both qualitative and quantitative considerations. True or false.

True

The factor rating method can consider both tangible and intangible costs. True or false

True

The factor-rating method can consider both tangible and intangible costs.

True

The forecasting time horizon and the forecasting techniques used tend to vary over the life cycle of a product.

True

The graphic approach to location break-even analysis displays the range of volume over which each location is preferable.

True

The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs.

True

The objective of layout strategy is to develop an effective and efficient layout that will meet the firm's competitive requirements.

True

The quarterly "make meeting" of Lexus dealers is an example of a sales force composite forecast.

True

The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit.

True

The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit. True or false.

True

The sales force composite forecasting method relies on salespersons' estimates of expected sales.

True

The term focused processes refers to the quest for increased efficiency, whether in goods or services, that results from specialization.

True

The tool that calculates which process has the lowest cost at any specified production volume is a crossover chart.

True

The work cell improves process layouts by reducing floor space and by reducing direct labor cost.

True

Time-function mapping is a flow diagram with time added to the horizontal axis.

True

Unfavorable exchange rates can offset other savings in a location decision.

True

When innovation replaces cost as a firm's focus for location decisions, the presence of other state- of-the-art firms is a plus, not a negative, for the firm's competitiveness.

True

Applied research has the objective of achieving commercial applications for new ideas.

True ( Applied research is aimed at commercializing basic research. )

Product failures can be easier to remedy with modular design. T/F ?

True ( Modular designs make it easy to change only portions of the design. )

Research and development (R&D) refers to organized efforts that are directed toward increasing scientific knowledge and product (or process) innovation.

True ( Product or process innovations often result from deliberate R&D programs. )

Research and development (R&D) refers to organized efforts that are directed toward increasing scientific knowledge and product (or process) innovation. T/f ?

True ( Product or process innovations often result from deliberate R&D programs. )

A disadvantage of standardization is the possibility of standardizing designs too early, which may make them difficult to modify in the future.

True ( Standardization locks firms into designs that aren't easily changed. )

A disadvantage of standardization is the possibility of standardizing designs too early, which may make them difficult to modify in the future. T/F ?

True ( Standardization locks firms into designs that aren't easily changed. )

Delayed differentiation and modular design are tactics for mass customization.

True ( These allow variety without giving up too much in the way of standardization. )

allows suppliers to purchase on their behalf, suppliers provide what is needed, when it's needed

Vendor Managed Inventory (VMI)

human resource management

Which of the following is not a core activity in the value chain? a. marketing and sales b. operations c. human resource management d. service e. inbound logistics

scatter diagram

Which of the following is one of Ishakawa's seven basic fools for quality improvements? a. matrix diagram b. activity network diagram c. tree diagram d. scatter diagram e. affinity diagram

affinity diagram

Which of the following is one of the new seven tools for management? a. process map b. cause-and-effect diagram c. histogram d. check sheet e. affinity diagram

What is not a top consideration in choosing a country for a facility location?

Zoning regulations

Histograms

________ are simply graphical representations of data in a bar format.

Service transaction analysis

________ is a service improvement technique that allows managers to analyze their service processes at a very detailed level.

Electronic data interchange

________ is a system that aids customer and supplier communication by linking together supplier and customer information systems.

. A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5 percent, the net present value of this investment is approximately a. $20,920 b. $26,160 c. $49,840 d. $70,920 e. $106,990

a

A big advantage of a process-oriented layout is a. its flexibility in equipment and labor assignments b. its low cost c. the simplified scheduling problem presented by this layout strategy d. the ability to employ low-skilled labor e. its high equipment utilization

a

A drawing of the movement of material, product, or people is a a. flow diagram b. process chart c. service blueprint d. process map e. none of the above

a

A firm is seeking a new factory location, and is considering several countries worldwide. In some of these countries, child labor is prevalent; in others, working conditions and worker safety are inferior to conditions in the U.S. An operations manager paying attention to __________will factor these issues into the location decision. a. ethical and social responsibility issues b. critical success factors c. factor rating systems d. geographic information systems e. regression models

a

A location decision for an appliance manufacturer would tend to have a(n) a. cost focus b. labor focus c. revenue focus d. environmental focus e. education focus

a

A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm's total of $60,000. The weighted contribution of this product is approximately a. 0.133 b. 0.200 c. 0.40 d. 0.667 e. $1.667

a

A six-month moving average forecast is better than a three-month moving average forecast if demand a. is rather stable b. has been changing due to recent promotional efforts c. follows a downward trend d. follows a seasonal pattern that repeats itself twice a year e. follows an upward trend

a

An organization whose capacity is on that portion of the average unit cost curve that falls as output rises a. has a facility that is below optimum operating level and should build a larger facility b. has a facility that is above optimum operating level and should build a smaller facility c. is suffering from diseconomies of scale d. has utilization higher than efficiency e. has efficiency higher than utilization

a

Computer-integrated manufacturing (CIM) includes manufacturing systems that have a. computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated b. transaction processing, management information systems, and decision support systems integrated c. automated guided vehicles, robots, and process control d. robots, automated guided vehicles, and transfer equipment e. all of the above

a

Daily capacity of a product layout is determined by a. operating time divided by cycle time b. cycle time divided by operating time c. operating time divided by total task time d. total task time divided by cycle time e. cycle time divided by total task time

a

Evaluating location alternatives by comparing their composite (weighted-average) scores involves a. factor rating analysis b. cost-volume analysis c. transportation model analysis d. linear regression analysis e. crossover analysis

a

Forecasts are usually classified by time horizon into three categories a. short-range, medium-range, and long-range b. finance/accounting, marketing, and operations c. strategic, tactical, and operational d. exponential smoothing, regression, and time series e. departmental, organizational, and industrial

a

Four hundred and eighty minutes of production time are available per day. Scheduled production is 120 units per day. What is the cycle time? a. 4 minutes b. 5 minutes c. 6 minutes d. 7 minutes e. 8 minutes

a

If demand exceeds capacity at a new facility, an organization can use which of the following to move demand to an existing facility? a. aggressive marketing b. lower prices at all facilities c. build a facility of the correct size d. add a complementary product e. reduce lead times

a

In the Office Relationship Chart, which rating reflects the highest importance for two departments' closeness to each other? a. A b. E c. I d. O e. X

a

Industrial location analysis typically attempts to a. reduce costs b. maximize sales c. focus more on human resources d. be environmentally friendly e. none of the above

a

LaQuinta Motor Inns has a competitive edge over its rivals because it a. uses regression analysis to determine which variables most influence profitability b. picks better locations than its rivals c. picks larger locations than its rivals d. builds only along interstate highways e. all of the above

a

Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. The crossover point between process A and process B is a. 50 units b. 200 units c. $2,500 d. $5,000 e. $9,500

a

Solving a load-distance problem for a process-oriented layout requires that a. the difficulty of movement be the same for all possible paths b. pickup and setdown costs vary from department to department c. the cost to move a load be the same for all possible paths d. takt time be less than 1 e. CRAFT software examine all possible department configurations

a

Takt time is a. the total work time available divided by units required by the consumer b. the units required divided by workers required c. a fictional time increment similar to a therblig d. the same thing as cycle time in a process layout e. an important consideration in balancing an assembly line

a

The fundamental difference between cycles and seasonality is the a. duration of the repeating patterns b. magnitude of the variation c. ability to attribute the pattern to a cause d. all of the above e. none of the above

a

The two general approaches to forecasting are a. qualitative and quantitative b. mathematical and statistical c. judgmental and qualitative d. historical and associative e. judgmental and associative

a

The type of layout which features departments or other functional groupings in which similar activities are performed is a. process-oriented b. product-oriented c. fixed-position d. mass production e. unit production

a

The use of information technology to monitor and control a physical process is known as a. process control b. computer-aided design c. information numeric control d. numeric control e. none of the above

a

Using an exponential smoothing model with smoothing constant = .20, how much weight would be assigned to the 2nd most recent period? a. .16 b. .20 c. .04 d. .09 e. .10

a

What two numbers are contained in the daily report to the CEO of Walt Disney Parks & Resorts regarding the six Orlando parks? a. yesterday's forecasted attendance and yesterday's actual attendance b. yesterday's actual attendance and today's forecasted attendance c. yesterday's forecasted attendance and today's forecasted attendance d. yesterday's actual attendance and last year's actual attendance e. yesterday's forecasted attendance and the year-to-date average daily forecast error

a

Which layout type assumes an adequate volume for high equipment utilization? a. product-oriented layout b. process-oriented layout c. fixed-position layout d. retail layout e. warehouse layout

a

Which of the following is a location analysis technique typically employed by a manufacturing organization? a. transportation method b. queuing theory c. correlation analysis and traffic counts d. simulation e. demographic analysis

a

Which of the following is a location analysis technique typically employed by a service organization? a. purchasing power analysis b. linear programming c. queuing theory d. crossover charts e. cost-volume analysis

a

Which of the following is true of a focused factory? a. It may be focused in ways other than by product or layout. b. It may be focused only by processing requirements. c. It is much like a product facility within an otherwise process facility. d. All of the above are true. e. None of the above is true.

a

Which of the following phrases best describes process focus? a. low volume, high variety b. finished goods are usually made to a forecast and stored c. operators are modestly skilled d. high fixed costs, low variable costs e. raw material inventories are high relative to the value of the product

a

Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched? a. inexpensive rates for weekend phone calls b. appointments c. reservations d. first-come, first-served e. none of the above

a

Which of the following techniques uses variables such as price and promotional expenditures, which are related to product demand, to predict demand? a. associative models b. exponential smoothing c. weighted moving average d. simple moving average e. time series

a

Which of the following values of alpha would cause exponential smoothing to respond the most slowly to forecast errors? a. 0.10 b. 0.20 c. 0.40 d. 0.80 e. cannot be determined

a

Which of the statements below best describes office layout? a. groups workers, their equipment, and spaces/offices to provide for movement of information b. addresses the layout requirements of large, bulky projects such as ships and buildings c. seeks the best personnel and machine utilization in repetitive or continuous production d. allocates shelf space and responds to customer behavior e. deals with low-volume, high-variety production

a

Which time series model below assumes that demand in the next period will be equal to the most recent period's demand? a. naive approach b. moving average approach c. weighted moving average approach d. exponential smoothing approach e. none of the above

a

Which of the following typically shows the components, their description and the quantity of each required to make one unit of a product?

a bill of material

TQM emphasizes

a commitment to quality that goes beyond internal company issues to suppliers and customers

The fixed position layout would be most appropriate in which of the following settings?

a cruise ship assembly facility

Gradual movement is time series data over time is called?

a trend

Quality lies in the eyes of the beholder is

a user-based definition of quality

proactive personality

action-oriented person who shows initiative and perseveres to change things

the major problem addressed by the warehouse layout is

addressing trade offs between space and material handling

Which of the following is not one of the requirements of cellular production

adequate volume for high equipment utilization

Flexibility can be achieved with

all of the above

In assembly line balancing, the theoretical minimum number of workstations is

all of the above

When done correctly, mass customization

all of the above

lean thinking can be applied to

all of the above

process elements that can be changed when improving a process includes

all of the above

reducing setup time is important because

all of the above

which of the following is (are) assumptions of process control?

all of the above

which of the following techniques are used for continuous improvement?

all of the above

A disadvantage of product oriented layout is that

all of the above are disadvantages

the reason for failure of all the improvement efforts include

all of them

Which of the following shows in schematic form how a product is assembled?

an assembly chart

equity sensitivity

an individual's tolerance for negative and positive equity

organizational behavior

an interdisciplinary field dedicated to better understanding and managing people. -how people behave in organizations -what drives performance? --> motivation

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 demand is expected to be 10 million units, which plant offers the lowest total cost? a. Plant A, because it is cheaper than Plant B for all volumes under 8,000,000 units b. Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units c. Plant A, because it is cheaper than Plant B for all volumes 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

b

A forecast with a time horizon of about 3 months to 3 years is typically called a a. long-range forecast b. medium-range forecast c. short-range forecast d. weather forecast e. strategic forecast

b

A product-oriented layout would be most appropriate for which one of the following businesses? a. fast food b. steel-making c. insurance sales d. clothing alterations e. a grocery store

b

A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of work. The factory operates 750 minutes per day. The cycle time for this assembly line is a. one-half minute b. one and one-half minutes c. two minutes d. 5,500 minutes e. cannot be determined from the information given

b

Balancing a work cell is done a. before the work cell equipment is sequenced b. as part of the process of building an efficient work cell c. before takt time is calculated d. so that each assembly line workstation has exactly the same amount of work e. to minimize the total movement in a process layout

b

Basic break-even analysis typically assumes that a. revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases b. variable costs and revenues increase in direct proportion to the volume of production c. both costs and revenues are made up of fixed and variable portions d. 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 e. All of the above are assumptions in the basic break-even model.

b

Effective capacity is the a. maximum output of a system in a given period b. capacity a firm expects to achieve given the current operating constraints c. average output that can be achieved under ideal conditions d. minimum usable capacity of a particular facility e. sum of all of the organization's inputs

b

Forecasts a. become more accurate with longer time horizons b. are rarely perfect c. are more accurate for individual items than for groups of items d. all of the above e. none of the above

b

Globalization of the location decision is the result of all of the following except a. market economics b. higher quality of labor overseas c. ease of capital flow between countries d. high differences in labor costs e. more rapid, reliable travel and shipping

b

Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. The term associated with this phenomenon is a. bureaucratic risk b. political risk c. legislative risk d. judicial risk e. democratic risk

b

In assembly line balancing, cycle time (the ratio of available production time to scheduled production) is the a. minimum time that a product is allowed at each workstation b. maximum time that a product is allowed at each workstation c. optimum time that a product is allowed at each workstation d. desired cycle time that a product is allowed at each workstation e. all of the above

b

John's House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5 to the previous month's demand, 3 to demand two months ago, and 1 to demand three months ago. If sales amounted to 1000 pancakes in May, 2200 pancakes in June, and 3000 pancakes in July, what should be the forecast for August? a. 2400 b. 2511 c. 2067 d. 3767 e. 1622

b

Production and/or shipping costs are always considered in which of the following location decision methods? a. factor rating method b. transportation method c. locational break-even analysis d. center-of-gravity method e. crossover analysis

b

Standard Register a. has dozens of U.S. plants in its Forms Division b. groups people and machines into departments that perform specific activities c. utilizes a product strategy to keep production volume high d. obtains its low-cost advantage by not spending money on CAD systems e. obtains its low-cost advantage by specializing in a relatively small number of products

b

The assumption of stability of demand is important for justifying which of the following layout types? a. fixed-position layout b. product-oriented layout c. process-oriented layout d. all of the above e. none of the above

b

The basic break-even model can be modified to handle more than one product. This extension of the basic model requires a. price and sales volume for each product b. price and variable cost for each product, and the percent of sales that each product represents c. that the firm have very low fixed costs d. that the ratio of variable cost to price be the same for all products e. sales volume for each product

b

The main issue in designing process layouts concerns the relative positioning of a. safety devices b. departments c. raw materials d. entrances, loading docks, etc. e. supervisors to their employees

b

The typical goal used when developing a process-oriented layout strategy is to a. minimize the distance between adjacent departments b. minimize the material handling costs c. maximize the number of different tasks which can be performed by an individual machine d. minimize the level of operator skill necessary e. maximize job specialization

b

Which of the following characteristics best describes repetitive focus? a. It uses sophisticated scheduling to accommodate custom orders. b. Its output is a standardized product produced from modules. c. It is too expensive when volumes are low or flexibility is required. d. It is widely used for the manufacture of steel. e. Its costs are often known only after a job is done.

b

Which of the following is false regarding repetitive processes? a. They use modules. b. They allow easy switching from one product to the other. c. They are the classic assembly lines. d. They have more structure and less flexibility than a job shop layout. e. They include the assembly of basically all automobiles.

b

Which of the following is most likely to affect the location strategy of a manufacturing firm? a. appearance/image of the area b. utility costs c. purchasing power of drawing area d. competition in the area e. parking availability

b

Which of the following is not a step in the forecasting process? a. Determine the use of the forecast. b. Eliminate any assumptions. c. Determine the time horizon. d. Select forecasting model. e. Validate and implement the results.

b

Which of the following is not among the eight components of revenue and volume for a service firm? a. quality of the management b. shipment cost of finished goods c. purchasing power of the customer-drawing area d. uniqueness of the firm's and the competitor's locations e. competition in the area

b

Which of the following is not an advantage of work cells? a. reduced direct labor cost b. decreased use of equipment and machinery c. heightened sense of employee participation d. reduced raw material and finished goods inventory e. reduced investment in machinery and equipment

b

Which of the following is not one of the requirements of cellular production? a. test (poka-yoke) at each station in the cell b. adequate volume for high equipment utilization c. a high level of training, flexibility, and empowerment of employees d. being self-contained, with its own equipment and resources e. identification of families of products, often through the use of group technology codes

b

Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor? a. Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances. b. Few people will travel out-of state for a haircut. c. Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. d. Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers. e. Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source.

b

Which of the following is true for process layouts, but false for product-oriented layouts? a. low in-process inventories b. flexibility in equipment and labor assignments c. low variety of products d. high volume of output e. often solved by assembly line balancing

b

Which of the following layouts generally has the best machine utilization? a. fixed-position layout b. repetitive and product-oriented layout c. process-oriented layout d. office layout e. warehouse layout

b

Which of the following statements regarding Dell Computer is false? a. Dell is a practitioner of the mass customization process. b. Dell builds its computers overseas in order to gain a low-cost advantage. c. Dell keeps very little inventory of finished goods. d. Dell utilizes a global supply chain, but assembles its computers in the U.S. e. Dell's research focuses on manufacturing issues, not computer part design.

b

why is the uniform load desirable in a lean system?

balance the workload on all work centers

The last 4 weekly values of sales were 80 100 105 and 90 units. The last four forecasts were 60 80 95 and 75 units. These forecasts illustrate

bias

"Operators simply load new programs, as necessary, to produce different products" describes a. CAD b. automated guided vehicles c. flexible manufacturing systems d. vision systems e. process control

c

. Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is true? a. The crossover point is approximately 6667 units. b. It is impossible for one process to have both of its costs lower than those of another process. c. Process Y is cheaper than process X at all volumes; there is no crossover point. d. Process X should be selected for very large production volumes. e. Process X is more profitable than process Y and should be selected.

c

A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5 percent, the net present value of this investment is a. greater than $80,000 b. greater than $130,000 c. less than $30,000 d. impossible to calculate, because no interest rate is given e. impossible to calculate, because variable costs are not known

c

A fundamental distinction between trend projection and linear regression is that a. trend projection uses least squares while linear regression does not b. only linear regression can have a negative slope c. in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power d. linear regression tends to work better on data that lack trends e. trend projection uses two smoothing constants, not just one

c

A jewelry store is more likely than a jewelry manufacturer to consider __________ in making a location decision. a. transportation costs b. cost of raw materials c. parking and access d. climate e. taxes

c

A location decision for a traditional department store (Macy's) would tend to have a(n) b. labor focus c. revenue focus d. environmental focus e. education focus

c

A product-focused process is commonly used to produce a. high-volume, high-variety products b. low-volume, high-variety products c. high-volume, low-variety products d. low-variety products at either high- or low-volume e. high-volume products of either high- or low-variety

c

A production line is to be designed for a job with four tasks. The task times are 2.4 minutes, 1.4 minutes, 0.9 minutes, and 1.7 minutes. The maximum cycle time is ______ and the minimum cycle time is ______ minutes. a. 1.8; 1.4 b. 1.6; 0.9 c. 6.4; 2.4 d. 2.4; 0.9 e. none of these

c

A production line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can an assembly line with five workstations make 100 units per day? a. yes, with exactly 100 minutes to spare b. no, but four workstations would be sufficient c. no, it will fall short even with a perfectly balanced line d. yes, but the line's efficiency is very low e. cannot be determined from the information given

c

A regional bookstore chain is about to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis? a. assembly line balancing b. load-distance analysis c. center-of-gravity model d. linear programming e. all of the above

c

A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called a(n) a. adaptive control system b. robotics c. flexible manufacturing system d. automatic guided vehicle (AGV) system e. manufacturing cell

c

Adding a complementary product to what is currently being produced is a demand management strategy used when a. demand exceeds capacity b. capacity exceeds demand for a product which has stable demand c. the existing product has seasonal or cyclical demand d. price increases have failed to bring about demand management e. efficiency exceeds 100 percent

c

An assembly line consists of 158 tasks grouped into 32 workstations. The sum of all task times is 105 minutes. Cycle time for the line is 4 minutes. The efficiency of this line is approximately a. 8 percent b. 21 percent c. 82 percent d. 100 percent e. none of the above

c

An assembly line consists of 21 tasks grouped into 5 workstations. The sum of the 21 task times is 85 minutes. Cycle time for the line is 20 minutes. The efficiency of this line is a. 4.2 percent b. 17 percent c. 85 percent d. 100 percent e. none of the above

c

An assembly line is an example of a a. product-focused process b. process-focused process c. repetitive process d. line process e. specialized process

c

For a given product demand, the time series trend equation is 53 - 4 X. The negative sign on the slope of the equation a. is a mathematical impossibility b. is an indication that the forecast is biased, with forecast values lower than actual values c. is an indication that product demand is declining d. implies that the coefficient of determination will also be negative e. implies that the RSFE will be negative

c

For which of the following operations would a fixed-position layout be most appropriate? a. assembling automobiles b. producing TV sets c. constructing a highway tunnel or bridge d. refining of crude oil e. running an insurance agency

c

Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a a. short-range time horizon b. medium-range time horizon c. long-range time horizon d. naive method, because there is no data history e. all of the above

c

Fred's Fabrication, Inc. wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $70,000. The variable cost for A is $9.00 per unit and for B, $14.00. The revenue generated by the units processed on these machines is $20 per unit. The crossover between machine A and machine B is a. 4,000 units, with A more profitable at low volumes b. 4,000 dollars, with A more profitable at low volumes c. 4,000 units, with B more profitable at low volumes d. 4,000 dollars, with B more profitable at low volumes e. none of the above

c

Geographic Information Systems can assist the location decision by a. automating center-of-gravity problems b. computerizing factor rating analysis c. combining geography with demographic analysis d. updating transportation method solutions e. giving good Internet placement for virtual storefronts

c

Given an actual demand of 103, a previous forecast value of 99, and an alpha of .4, the exponential smoothing forecast for the next period would be a. 94.6 b. 97.4 c. 100.6 d. 101.6 e. 103.0

c

Given an actual demand of 61, a previous forecast of 58, and an of .3, what would the forecast for the next period be using simple exponential smoothing? a. 45.5 b. 57.1 c. 58.9 d. 61.0 e. 65.5

c

Given forecast errors of -1, 4, 8, and -3, what is the mean absolute deviation? a. 2 b. 3 c. 4 d. 8 e. 16

c

Gradual, long-term movement in time series data is called a. seasonal variation b. cycles c. trends d. exponential variation e. random variation

c

In location planning, environmental regulations, cost and availability of utilities, and taxes are a. global factors b. country factors c. regional/community factors d. site-related factors e. none of the above

c

One fundamental difference between a process chart and a process map is that a. the process chart uses a time dimension while a process map is not time-oriented b. the process chart includes the supply chain, while the process map stays within an organization c. the process chart is more like a table, while the process map is more like a schematic diagram d. the process chart focuses on the customer and on the provider's interaction with the customer, while the process map does not deal directly with the customer e. None of these is true, because a process chart and a process map are the same thing.

c

One of the major advantages of process-oriented layouts is a. high equipment utilization b. large work-in-process inventories c. flexibility in equipment and labor assignment d. smooth and continuous flow of work e. none of the above

c

Product Focused processes a. allow more customization, but are not very efficient b. are desirable because resource needs increase slowly with the complexity of a process c. are processes that are specialized for relatively few products or customer groups d. apply only to service firms, not to manufacturers e. are profitable because customers demand flexibility, not specialization

c

Tangible costs include which of the following? a. climatic conditions b. availability of public transportation c. taxes d. quality and attitude of prospective employees e. zoning regulations

c

The assumptions necessary for a successful product layout include all of the following except a. adequate volume for high equipment utilization b. standardized product c. volatile product demand d. All of the above are appropriate assumptions. e. None of the above is an appropriate assumption.

c

The center-of-gravity method does not take into consideration the a. location of markets b. volume of goods shipped to the markets c. value of the goods shipped d. combination of volume and distance e. center-of-gravity method considers none of the above

c

The center-of-gravity method is used primarily to determine what type of locations? a. service locations b. manufacturing locations c. distribution center locations d. supplier locations e. call center locations

c

The forecasting model that pools the opinions of a group of experts or managers is known as the a. sales force composition model b. multiple regression c. jury of executive opinion model d. consumer market survey model e. management coefficients model

c

The last four months of sales were 8, 10, 15, and 9 units. The last four forecasts were 5, 6, 11, and 12 units. The Mean Absolute Deviation (MAD) is a. 2 b. -10 c. 3.5 d. 9 e. 10.5

c

The major problem addressed by the warehouse layout strategy is a. minimizing difficulties caused by material flow varying with each product b. requiring frequent contact close to one another c. addressing trade-offs between space and material handling d. balancing product flow from one work station to the next e. none of the above

c

The percent of variation in the dependent variable that is explained by the regression equation is measured by the a. mean absolute deviation b. slope c. coefficient of determination d. correlation coefficient e. intercept

c

The primary purpose of the mean absolute deviation (MAD) in forecasting is to a. estimate the trend line b. eliminate forecast errors c. measure forecast accuracy d. seasonally adjust the forecast e. all of the above

c

Three types of processes are a. goods, services, and hybrids b. manual, automated, and service c. process focus, repetitive focus, and product focus d. modular, continuous, and technological e. input, transformation, and output

c

Traffic counts and demographic analysis of drawing areas are associated with a. industrial location decisions b. manufacturing location decisions c. service location decisions d. the transportation method e. none of the above

c

Traffic counts and purchasing power analysis of drawing area are techniques associated with a. an industrial location decision b. a manufacturing location decision c. a retail or professional service location decision d. the factor rating method e. the transportation method

c

When decision trees are used to analyze capacity decisions, a. "do nothing" is not a possible decision alternative b. probabilities must be assigned to each of the decision alternatives c. states of nature are often demand-based, as in "market favorability" d. states of nature must be known with certainty e. fixed costs are not relevant

c

When making a location decision at the region/community level, which of these would be considered? a. government rules, attitudes, stability, incentives b. cultural and economic issues c. cost and availability of utilities d. zoning restrictions e. air, rail, highway, waterway systems

c

Which is not a characteristic of exponential smoothing? a. smoothes random variations in the data b. easily altered weighting scheme c. weights each historical value equally d. has minimal data storage requirements e. none of the above; they are all characteristics of exponential smoothing

c

Which of the following does not support the retail layout objective of maximizing customer exposure to products? a. locate high-draw items around the periphery of the store b. use prominent locations for high-impulse and high-margin items c. maximize exposure to expensive items d. use end-aisle locations e. convey the store's mission with the careful positioning of the lead-off department

c

Which of the following is not a heuristic rule for assigning tasks to workstations in a product layout? a. longest tasks first b. in order of most number of following tasks c. median tasks first d. shortest tasks first e. in accordance with positional weight

c

Which of the following methods best considers intangible costs related to a location decision? a. crossover methods b. locational break-even analysis c. factor rating analysis d. the transportation method e. the assignment method

c

negative inequity

comparison in which another person receives greater outcomes for similar inputs the feeling that you are not getting rewarded enough based on your efforts

positive inequity

comparison in which another person receives lesser outcomes for similar inputs

Computer integrated manufacturing includes manufacturing systems that have

computer aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated.

Product life cycle

continually working on the next product

Kaizen is a Japanese term meaning

continuous improvement

Design for reliability

control failure rate and time to failure for both component and system failure.

A disadvantage of product-oriented layout is that a. there is a lack of flexibility in handling a variety of products or production rates b. high volume is required because of the large investment needed to set up the process c. work stoppage at any one point ties up the whole operation d. All of the above are disadvantages of product-oriented layouts. e. None of the above is a disadvantage of product-oriented layouts.

d

A fabrication company wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $75,000. The variable cost for A is $15.00 per unit and for B, $18.00. The revenue generated by the units processed on these machines is $21 per unit. If the estimated output is 5000 units, which machine should be purchased? a. machine A b. machine B c. either machine A or machine B d. no purchase because neither machine yields a profit at that volume e. purchase both machines since they are both profitable

d

A job shop is an example of a(n) a. repetitive process b. continuous process c. line process d. intermittent process e. specialized process

d

A process layout problem consists of 4 departments, each of which can be assigned to one of four rooms. The number of different solutions to this problem is _____, although not all of them may have different material handling costs. a. 1 b. 4 c. 16 d. 24 e. unknown

d

A shop wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $75,000. The variable cost for A is $15.00 per unit and for B, $18.00. The revenue generated by the units processed on these machines is $22 per unit. If the estimated output is 9,000 units, which machine should be purchased? a. machine A b. machine B c. either machine A or machine B d. no purchase because neither machine yields a profit at that volume e. purchase both machines since they are both profitable

d

Advances in technology a. have impacted the manufacturing sector only b. have had only limited impact on services c. have failed to change the level of customer interaction with an organization d. have had dramatic impact on customer interaction with services and with products e. have dramatically changed health care, but have not changed retailing

d

Ambient conditions, spatial layout and functionality, and signs, symbols, and artifacts are all a. indicators of imbalance on an assembly line b. indicators that cross-docking has been successful c. elements of customization in a warehouse layout d. elements of servicescapes e. elements of successful office layouts

d

Because the fixed-position layout problem is so difficult to solve on-site, operations managers a. virtually never employ this layout strategy b. utilize this approach only for construction projects such as bridges and office towers c. increase the size of the site d. often complete as much of the project as possible off-site e. utilize this layout only for defense contractors

d

Break-even analysis can be used by a firm that produces more than one product, but a. the results are estimates, not exact values b. the firm must allocate some fixed cost to each of the products c. each product has its own break-even point d. the break-even point depends upon the proportion of sales generated by each of the products e. None of these statements is true.

d

Cycle time is computed as a. desired output divided by the daily operating time b. daily operating time divided by the product of desired output and the sum of job times c. the product of desired output and the sum of job times divided by daily operating time d. daily operating time divided by the scheduled output e. 1.00 minus station time

d

In assembly line balancing, the minimum number of workstations is a. the ratio of the sum of all task times to cycle time b. always (when a fraction) rounded upward to the next larger integer value c. not always possible to reach when tasks are actually assigned to stations d. all of the above e. none of the above

d

In mass service and professional service, the operations manager should focus on a. automation b. equipment maintenance c. sophisticated scheduling d. human resources e. all of the above

d

In time series, which of the following cannot be predicted? a. large increases in demand b. technological trends c. seasonal fluctuations d. random fluctuations e. large decreases in demand

d

Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of a. manager understanding b. accuracy c. stability d. responsiveness to changes e. All of the above are diminished when the number of periods increases.

d

Intangible costs include which of the following? a. quality of prospective employees b. quality of education c. availability of public transportation d. all of the above e. none of the above

d

Net present value will be greater a. as a fixed set of cash receipts occurs later rather than earlier b. as the total of the cash receipts, made in same time periods, is smaller c. for one end-of-year receipt of $1200 than for twelve monthly receipts of $100 each d. for a 4% discount rate than for a 6% discount rate e. All of the above are true.

d

One factor impacting the fixed-position layout strategy is a. minimizing difficulties caused by material flow varying with each product b. requiring frequent contact close to one another c. the provision of low-cost storage with low-cost material handling d. the movement of material to the limited storage areas around the site e. balancing product flow from one work station to the next

d

Service blueprinting a. provides the basis to negotiate prices with suppliers b. mimics the way people communicate c. determines the best time for each step in the process d. focuses on the provider's interaction with the customer e. can only be successful with two-dimensional processes

d

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the capacity of the system is 1900 students per semester and the utilization is 90%. If the number of students who actually got their orientation session is 1500, what is the efficiency of the system? a. 1350 students b. 1710 students c. 75% d. 87.7% e. 90%

d

The concept of customizing in a warehouse layout a. is possible, but causes serious loss of oversight of the quality function b. cannot be considered seriously in today's high efficiency factories c. is theoretically sound, but several years away in practice d. is a new trend in value-added activities in warehouses e. none of the above

d

The crossover point is that production quantity where a. variable costs of one process equal the variable costs of another process b. fixed costs of a process are equal to its variable costs c. total costs equal total revenues for a process d. total costs for one process equal total costs for another process e. the process no longer loses money

d

The degree or strength of a linear relationship is shown by the a. alpha b. mean c. mean absolute deviation d. correlation coefficient e. RSFE

d

The fixed-position layout would be most appropriate in which of the following settings? a. a fast-food restaurant b. a doctor's office c. a casual dining restaurant d. a cruise ship assembly facility e. none of the above

d

The last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts were 60, 80, 95, and 75 units. These forecasts illustrate a. qualitative methods b. adaptive smoothing c. slope d. bias e. trend projection

d

The major problem addressed by the process-oriented layout strategy is a. the movement of material to the limited storage areas around the site b. requiring frequent contact close to one another c. the provision of low-cost storage with low-cost material handling d. minimizing difficulties caused by material flow varying with each product e. balancing product flow from one work station to the next

d

The most common tactic followed in process-layout planning is to arrange departments or work centers so they a. minimize the cost of skilled labor b. maximize the machine utilization c. allocate the available space equally to all the departments d. minimize the costs of material handling e. none of the above

d

The tracking signal is the a. standard error of the estimate b. running sum of forecast errors (RSFE) c. mean absolute deviation (MAD) d. ratio RSFE/MAD e. mean absolute percentage error (MAPE)

d

Utilization in process-oriented facilities is frequently low because a. the postponement strategy for improving service productivity is being used b. scheduling in process-oriented facilities is not very complex c. with high fixed costs, utilization is not very important d. excess capacity for peak demands is desirable e. low raw material inventories cause machines to be idled

d

Which of the following constitutes a major trend influencing office layouts? a. downsizing b. globalization c. environmental issues d. off-site employees e. health issues

d

Which of the following costs would be incurred even if no units were produced? a. raw material costs b. direct labor costs c. transportation costs d. building rental costs e. purchasing costs

d

Which of the following is a common heuristic for assembly line balancing? a. debits near the windows, credits near the door b. manufacturers locate near materials, retailers locate near customers c. earliest due date first d. ranked positional weight e. none of the above

d

Which of the following is false regarding capacity expansion? a. "Average" capacity sometimes leads demand, sometimes lags it. b. If "lagging" capacity is chosen, excess demand can be met with overtime or subcontracting. c. Total cost comparisons are a rather direct method of comparing capacity alternatives. d. Capacity may only be added in large chunks. e. All of the above are true.

d

Which of the following is not an information requirement for solving a load-distance problem? a. a list of departments or work centers b. a projection of work flows between the work centers c. the distance between locations d. a list of product cycle times e. the cost per unit of distance to move loads

d

Which of the following is true regarding fabrication lines? a. They are the same thing as assembly lines. b. They are the same thing as focused factories. c. They are a special type of process-oriented layout. d. Balancing their assembly line is more technological than worker oriented. e. None of the above is true.

d

Which of the following is true regarding the concept of flexibility? a. It is the ability to change production rates with little penalty in time, cost, or customer value. b. It can be accomplished with sophisticated electronic equipment. c. It may involve modular, movable, even cheap equipment. d. All of the above are true. e. None of the above is true.

d

A good layout requires determining a. material handling requirements b. capacity and space requirements c. environment and aesthetics d. cost of moving between various work areas e. all of the above

e

A quasi-custom product a. gets its apparent customization from the combinations available from a small number of modules b. is often the output of repetitive focus facilities c. is a valid description of a fast food sandwich d. is only possible when the focus strategy of service productivity improvement is in use e. All but d are true.

e

An organization's process strategy a. will have long-run impact on efficiency and flexibility of production b. is the same as its transformation strategy c. must meet various constraints, including cost d. is concerned with how resources are transformed into goods and services e. All of the above are true.

e

Balancing low-cost storage with low-cost material handling is important in a(n) a. fixed-position layout b. process-oriented layout c. office layout d. repetitive and product-oriented layout e. warehouse layout

e

Break-even is the number of units at which a. total revenue equals price times quantity b. total revenue equals total variable cost c. total revenue equals total fixed cost d. total profit equals total cost e. total revenue equals total cost

e

Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods? a. transportation method b. locational break-even analysis c. center-of-gravity method d. simulation e. factor rating method

e

Ethical and environmentally friendly processes include which of the following? a. emission controls b. recycling c. efficient use of resources d. reduction of waste by-products e. all of the above

e

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

e

Flexibility can be achieved with a. movable equipment b. inexpensive equipment c. sophisticated electronic equipment d. modular equipment e. all of the above

e

If a layout problem is solved by use of "heuristics," this means that a. there was no other way to solve the problem b. no computer software was available c. the problem has only a few alternatives to evaluate d. no optimum solution exists e. a "satisfactory" solution is acceptable

e

In mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except a. automation b. standardization c. tight quality control d. removing some services e. customization

e

Location analysis techniques typically employed by service organizations include a. factor rating method b. center-of-gravity method c. purchasing power analysis of area d. traffic counts e. all of the above

e

Making environmentally sound products through efficient processes a. is unprofitable, as long as recyclable materials prices are soft b. is known as lean manufacturing c. can still be profitable d. is easier for repetitive processes than for product-focused processes e. none of the above

e

Many services maintain records of sales noting a. the day of the week b. unusual events c. weather d. holidays e. all of the above

e

Net present value a. is gross domestic product less depreciation b. is sales volume less sales and excise taxes c. is profit after taxes d. ignores the time value of money e. is the discounted value of a series of future cash receipts

e

Of the four approaches to capacity expansion, the approach that "straddles" demand a. uses incremental expansion b. uses one-step expansion c. at some times leads demand, and at other times lags d. works best when demand is not growing but is stable e. Choices a and c are both correct.

e

On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which a. fixed costs are equal for two alternative locations b. variable costs are equal for two alternative locations c. total costs are equal for all alternative locations d. fixed costs equal variable costs for one location e. total costs are equal for two alternative locations

e

One disadvantage of process-oriented layouts arises from a. the use of special purpose equipment b. machine maintenance, which tends to seriously degrade the capacity of the entire system c. the use of specialized material handling equipment d. the need for stable demand e. the use of the general purpose machines and equipment

e

One use of short-range forecasts is to determine a. production planning b. inventory budgets c. research and development plans d. facility location e. job assignments

e

Operations managers will need to consider ethical and social responsibility issues when location decisions involve a. child labor issues b. sweatshop conditions c. allegiance to the firm's current location d. corruption e. all of the above

e

Process redesign a. is the fundamental rethinking of business processes b. can focus on any process c. tries to bring about dramatic improvements in performance d. focuses on activities that cross functional lines e. all of the above

e

Taco Bell's unique employee scheduling practices are partly the result of using a. point-of-sale computers to track food sales in 15 minute intervals b. focus forecasting c. a six-week moving average forecasting technique d. multiple regression e. a and c are both correct

e

The central problem in product-oriented layout planning is a. minimizing material handling within workstations b. minimizing labor movement between workstations c. equalizing the space allocated to the different workstations d. maximizing equipment utilization e. minimizing the imbalance in the work loads among workstations

e

When done correctly, mass customization a. increases pressure on supply chain performance b. helps eliminate the guesswork that comes with sales forecasting c. drives down inventories d. increases pressure on scheduling e. all of the above

e

Which of the following is among the eight components of revenue and volume for a service firm? a. uniqueness of the firm's and the competitor's locations b. quality of the competition c. quality of management d. purchasing power of the customer-drawing area e. all of the above

e

Which of the following is not one of the four approaches to capacity expansion? a. average capacity with incremental expansion b. lead demand with incremental expansion c. lag demand with incremental expansion d. lead demand with one-step expansion e. lag demand with one-step expansion

e

Which of the following is true regarding opportunities to improve service processes? a. Automation can do little to improve service processes, because services are so personal. b. Layout is of little consequence, since services seldom use an assembly line. c. If a work force is strongly committed, it need not be cross-trained and flexible. d. All of the above are true. e. None of the above is true.

e

Which of the following is true regarding the two smoothing constants of the Forecast Including Trend (FIT) model? a. One constant is positive, while the other is negative. b. They are called MAD and RSFE. c. Alpha is always smaller than beta. d. One constant smoothes the regression intercept, whereas the other smoothes the regression slope. e. Their values are determined independently.

e

Which of the following products is likely to be assembled on a repetitive process line? a. automobiles b. personal computers c. dishwashers d. television sets e. all of the above

e

Which of the following requires an information system that provides inbound product identification, its destination, and routing of the product to the designated outbound vehicle? a. phantom-docking b. random stocking c. ASRS d. customizing e. cross-docking

e

performance appraisal

encourages high levels of employee motivation and performance provides accurate information to be used in managerial decision making

Making plans for how products that have reached the end of their useful lives will be dealt with is the primary subject of:

end-of-life programs ( End-of-life (EOL) programs deal with products that have reached the end of their useful lives. )

Engineering Analysis

engineering tests (heat, stress, mass-properties) - CAD auto-calculates values

Vroom's expectancy theory concepts

expectancy: belief that effort leads to a specific performance instrumentality: performance leads to perceived outcome valence: the value that a reward/outcome holds for you

mechanisms of self-efficacy

experience* behavior models persuasion from others physical/emotional

product design and evaluation

explain features, uses, and conditions: characteristics, expected life, packaging

espoused values

explicitly stated values/norms that are preferred by an organization

female vs. male managers

female managers deal more effectively with people; they understand needs male managers respond better in situations of stress

extrinsic rewards

financial or material rewards

anticipatory socialization

first step of the socialization process occurs before an individual actually joins an organization

One of the major advantages of process oriented layouts is

flexibility in equipment and labor assignment

Quality van improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements?

flexible pricing

A drawing of the movement of material, product or people is a

flowchart

Poka-yoke is the Japanese term for

foolproof

types of work groups

formal (formed by the organization) informal (formed by friends)

group development process

forming --> storming --> norming --> performing --> adjourning

threats to group/team effectiveness

free-riders, groupthink, social loafing

attributional tendencies

fundamental attribution bias (doesn't give people the benefit of the doubt) self-serving bias (personal responsibility for success not failure)

Control loop

gathering data from process to improve / adjust

perceptual errors

halo (one good trait makes a person seem perfect) leniency (everyone does well!) central tendency (average) recency effects (only remember the most recent things) contrast effect/errors (compares people) strictness distributional errors similar-to-me personal liking physical attractiveness

Theory of X & Y

has to do with the perceptions that managers have of their employees which influences their management style type x: inherently lazy people that are not fond of their jobs --> need to use more authoritative management style type y: employees are ambitious, self-motivated, have self-control, and generally like their job; work is natural, people are creative.

achievement motivated

have a preference for working on projects of moderate difficulty want their performance to be due to their efforts desire more feedback on successes/failures than low achievers

norms

help the group/organization survive, simplify behavioral expectations

a six month moving average forecast is generally better than a three-month moving average forecast if demand

is rather stable

Quality function deployment

is used early in the design process, translates customer desires into the target design, determines what will satisfy the customer and is used to determine where to deploy quality efforts

Which of the following statements regarding the center of gravity method is false

it is designed to minimize the maximum possible travel distance to any location

trends in OB

lack of employee engagement technology flattening world ethical challenges aging workforce sustainability & green practices

change and acquisition

last step of the socialization process requires mastering important tasks and roles and adjusting to work group's values and norms (be accepted)

which of the following is NOT true of vertical integration

lead to greater flexibility to change in technology

types of goal orientation

learning goal orientation (want to learn while achieving the goal) performance prove goal orientation (want to prove your performance performance avoid goal orientation (people afraid of failure)

The assessment of the environmental impact of a product or service throughout its useful life is called: flow diagramming. life cycle analysis. quality function deployment. service blueprinting. process mapping.

life cycle analysis. ( Life cycle analysis is also known as cradle-to-grave assessment. )

the Pareto chart

lines up all the causes of defects, tell you at a glance which one you have to concentrate on.

When making a location decision at the country level, which of these would be considered?

location of markets

material handling, transportation, and warehousing are elements of

logistics

The main advantage of a product-oriented layout is typically

low variable cost per unit

Which of the following phrases best describes process focus?

low volume, high variety

intrinsic motivation

motivation caused by positive internal feelings

McClelland's Need Theory

need for achievement (desire to accomplish something difficult) need for affiliation (desire to be social) need for power (desire to influence) -should be considered during the selection process

methods of appraisal

objective (results, numbers) and subjective (behaviors and traits)

feedback

objective information about individual or collective performance shared with those in a position to improve the situation functions: developmental purposes and evaluative

layers of organizational culture

observable artifacts (ex. behaviors, office layouts) espoused values (ex. mission statement) basic assumptions (unconscious thoughts and opinions) ICEBERG in terms of noticeability

one of the two fundamental processes of all supply chain that are most effective by the internet

order fulfillment and order placement

if a sample of parts is measured and the mean of the measurements is outside the controls limits, the process is

out of control and the process should be investigated for assignable variation

Which of the following products is most likely made in a job shop environment

paper forms

merit pay

pay based on commission (does money motivate?) if people are only motivated by money they are not rewarded intrinsically and therefore are more commonly unhappy with their job

expectancy theory

people are motivated to behave in ways that produce valued outcomes

global cultural differences

power distance (differences in status) individual-collectivism masculinity-femininity uncertainty avoidance

Three types of processes are

process focus, repetitive focus and product focus

The type of layout which features departments or other functional groupings in which similar activities are performed is

process-oriented

Black & Decker's hand-powered tools and Hewlett-Packard's printer business are examples of using enhancements and migrations of existing products to build on a

product platform

Which of these layouts is most suitable for processing sugar from sugar beets or sugar cane?

product-oriented layout

which of the following quality control sample statistics indicates quality characteristics that is at attribute?

proportion

motivation

psychological processes that arouse and direct goal-directed behavior

Kano Quality Design Model

quality = both fulfilling customer requirements and exciting quality

Modern ATM machines are an automated example of a service design that

reduces customer interaction

Which of the following layouts generally has the best machine utilization

repetitive and product oriented layout

mechanistic approach

require the least skill/training (simplified) leads to job dissatisfaction, poor mental health, low sense of accomplishment

the four R's of sustainability do not include

responsibility

Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of

responsiveness to changes

Incorporating design for disassembly principles in product design helps firms with ___________ design issues.

reuse ( Refurbished products must first be disassembled. )

Strategies for improving productivity in services are

separation, self-service, automation and scheduling

a route sheet provides a(n)

sequence of operations necessary to produce the component

intangibles

service attributes that cannot be inventoried or carried in stock over long periods of time

organizational culture

set of shared beliefs and behaviors that a group has and the meaning they attach to those behaviors

Benchmarking

sharing information between and initiator firm and target firm so that both can improve

Which of the following is not among the 8 determinants of revenue and volume for a service firm?

shipment cost of finished goods

diversity

the host of individual differences that make people different from and similar to each other

Mentoring

the process of forming and maintaining developmental relationships between a mentor and a junior person

external setup time refers to

the time to complete setup activities that do not require the machines to be stopped

Takt time is

the total work time available divided by units required by the consumer

One disadvantage of process oriented layouts arises from

the use of the general purpose machines and equipment

one of the main objectives of the lean system is

to reduce waste

On the crossover char where the costs of two or more location alternatives have been plotted, the quantity at which two curves cross is the quantity at which

total costs are equal for 2 alternative locations

The crossover point is that production quantity where

total costs for one process equal total costs for another process

Contingency Approach

using situationally appropriate management techniques instead of a "one best way" approach

The center of gravity method does not take into consideration the

values of the good shipped

enacted values

values/norms that are actually exhibited in employee behavior

Balancing low-cost storage with low cost material handling is important in a

warehouse layout

causal attributions

when people attempt to infer causes for observed behavior

gas station

which of the following is NOT an involuntary service? a. police department b. hospital c. gas station d. the IRS e. fire department

5w2h

who, what, when, where, why / how, how much

A special arrangement of machinery and equipment to focus on production of a single product or group of related products describes what layout type?

work cell

which of the following statements is NOT true regarding supply chain operations?

you will not be able to eliminate the Bullwhip effect.

Which of the following is usually not one of the top considerations in choosing a country for a facility location?

zoning regulations

"Quality Function Deployment" is a structured approach that guarantees that the highest quality product or service will be designed.

FALSE Quality Function Deployment ensures that the voice of the customer is integrated into the product or service design question.

Robust design describes a product that will perform satisfactorily so long as it is used in a very narrow range of conditions.

FALSE Robust designs perform satisfactorily across a wide range of conditions.

To save money, it is essential that designers revise the production capabilities to meet the requirements of the new products.

FALSE Saving money requires designers to ensure that new products can be produced using existing production capabilities.

Identify the four major quantitative methods for solving location problems.

Factor rating method Locational cost volume analysis Center of gravity method Transportation model

A decision tree for analyzing capacity would have future demands or market favorability as the decision alternatives.

False

A decision tree indicates at what quantity profit changes from negative to positive.

False

A fabrication line and an assembly line are both types of repetitive and product-focused layout, but only the fabrication line utilizes workstations.

False

A focused work center is well suited to the production of a large family of products requiring similar processing, even if their demands are not very stable.

False

A process map with the addition of a time axis becomes a process chart.

False

Break-even analysis identifies the volume at which fixed costs and revenue are equal.

False

Break-even analysis is a powerful analytical tool, but is useful only when the organization produces a single product.

False

CRAFT is software for balancing assembly lines.

False

Capacity decisions are based on technological concerns, not demand forecasts.

False

Dell's approach to personal computer manufacturing is to use a product focus, which gives the company its low-cost competitive advantage.

False

FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

False

For a location decision, labor productivity may be important in isolation, but low wage rates are a more important criterion.

False

Forecasts of individual products tend to be more accurate than forecasts of product families.

False

Generally, the objective of the location decision is to maximize the firm's profit.

False

Global teams provide diversity while eliminating conflicts and miscommunication.

False

Harley-Davidson, because it has so many possible combinations of products, utilizes the process strategy of mass customization.

False

Heuristics are problem-solving procedures that mathematically optimize the solution.

False

If a quarterly seasonal index has been calculated at 1.55 for the October-December quarter, then raw data for that quarter must be multiplied by 1.55 so that the quarter can be fairly compared to other quarters.

False

In a regression equation where Y is demand and X is advertising, a coefficient of determination (R2) of .70 means that 70% of the variance in advertising is explained by demand.

False

In location decisions, intangible costs are easier to measure than tangible costs.

False

In trend projection, a negative regression slope is mathematically impossible.

False

Industrial location decisions often assume that costs are relatively constant for a given area.

False

Location decisions are based on many things, including costs, revenues, incentives, attitudes, and intangibles, but not on ethical considerations.

False

Mean Squared Error and Coefficient of Correlation are two measures of the overall error of a forecasting model.

False

Process maps use distance, but not time, to show the movement of material, product, or people through a process.

False

Process-oriented layouts typically have low levels of work-in-process inventory.

False

Product-oriented layouts tend to have high levels of work-in-process inventories.

False

Production technology has had a major impact on services, but as yet there has been little reduction in service labor requirements.

False

Professional services typically require low levels of labor intensity.

False

Starbucks Coffee's approach to choosing new café locations is largely based on executive intuition, not sophisticated models and site selection technology.

False

Successful process redesign focuses on departmental areas where small, continuous improvements can be made.

False

The balancing of work cells uses the same procedures as the balancing of an assembly line.

False

The biggest advantage of a product layout is its flexibility to handle a varied product mix.

False

The larger the standard error of the estimate, the more accurate the forecasting model.

False

The layout approach that addresses trade-offs between space and material handling is called the fixed position layout.

False

The location decisions of goods-producing firms will generally pay more attention to parking, access, and traffic counts than will service location decisions.

False

The minimum number of workstations depends upon the set of task times and the precedence chart, but not the number of units scheduled.

False

The net present value of $10,000 to be received in exactly three years is considerably greater than $10,000.

False

The transportation model calculates an optimal shipping system between a central facility and several outlying customers.

False

The typical full-service restaurant uses a product-focused process.

False

The work cell layout, a special arrangement of machinery and equipment to focus on the production of a single product or group of related products, is for manufacturing applications and has no relevance to services.

False

Utilization is the number of units a facility can hold, receive, store, or produce in a period of time.

False

Utilization of the total "cube" is the dominant consideration in office layout.

False

Quality function deployment (QFD) is based on a set of standards which relate customer requirements to company capabilities.

False ( QFD relates customer requirements to product designs and the capabilities necessary to carry these designs out. )

Quality function deployment is a structured approach that guarantees that the highest-quality product or service will be designed.

False ( Quality function deployment ensures that the voice of the customer is integrated into the product or service design question. )

The Baldrige award is based on seven categories. Which is not one of those? A. Relative profitability B. Strategic planning C. Human resource focus D. Information and Analysis E. Leadership

A. Relative profitability

Determining the number of cycles to observe is an element of _________. A. Stop watch time study. B. Standard elemental times. C. Predetermined time standards. D. Work sampling. E. MTM tables.

A. Stop watch time study.

The chart used to focus on busy and idle portions of a work cycle is a: A. Worker-machine chart B. Gantt chart C. SIMO-chart D. Idle chart E. Flow process chart

A. Worker-machine chart

Retail businesses often engage in ____________, the tendency to locate in close proximity to one another. A. clustering B. strategizing C. localcasting D. centering

A. clustering

The method for evaluating location alternatives which uses their total cost curves is: A. cost-volume analysis B. transportation model analysis C. factor rating analysis D. linear regression analysis E. MODI analysis

A. cost-volume analysis

The methods analysis chart which describes the overall sequence of operations, transportation, storage, delays, and inspection is a: A. flow process chart B. worker-machine chart C. gang process chart D. simultaneous-motion (SIMO) chart E. time/efficiency chart

A. flow process chart

Which of the following most closely describes job enlargement? A. horizontal loading B. increasing the level of responsibility associated with a job C. transferring workers through a series of jobs to increase their scope of experience D. increasing the amount of workspace assigned to a worker E. assigning two jobs to the same worker

A. horizontal loading

One way to increase reliability is to:

A. improve component design Another way is to add backup components.

What is the effect of an increase in the desired confidence level on the number of observations necessary in a time study? A. increases B. decreases C. unaffected D. may increase or decrease, depending on the sample standard deviation E. impossible to say without additional information

A. increases

Value Stream Mapping

All of the above are true

If the average amount of time a product goes without failing decreased by some amount, that product's availability could nevertheless be maintained at previous levels by __________ its __________. A. increasing; reliability B. reducing; time required for repair C. reducing; reliability D. reducing; reparability E. increasing; time required for repair

B

In the area of product and service design, the acronym CAD refers to: A. conceptually appropriate design. B. computer-aided design. C. commercial applications design. D. competitive advantage design. E. completely automated design.

B

Making plans for how products that have reached the end of their useful lives will be dealt with is the primary subject of: A. cradle-to-grave assessment. B. end-of-life programs. C. life-cycle analysis. D. three R's programs. E. process mapping.

B

Mobile phones have evolved from devices intended to place and receive phone calls into handheld multimedia communications devices, but in the eyes of some customers these new features make the phones less desirable. This is an example of: A. robust design. B. creeping featurism. C. sustainable design. D. quality function deployment. E. component commonality.

B

One way to increase reliability is to: A. eliminate backup components. B. improve preventive maintenance procedures. C. increase mean repair time. D. increase the number of independent components. E. use a global supply chain.

B

Service design generally differs from product design in which of the following ways? A. Service design tends to focus on tangible factors. B. There is less latitude in detecting and correcting errors prior to delivery. C. There is a lesser requirement to be aware of competitors' offerings. D. There is less visibility to customers. E. There is no difference.

B

which of the following is not part of Deming's 14 points?

Badgering the worker in that quality system

Leadership, strategic planning, customer focus, Measurement, analysis, and knowledge management, Workforce focus, Operations focus, Results defined in tables and graphs

Baldrige Model

Which of the following is not one of the 3 Rs? A. reuse B. reduce C. reposition D. recycle

C

Which of the following questions is least appropriate during value analysis? A. How can we reduce the cost of parts? B. How can we improve the performance of the product? C. How can we incorporate more cultural values in the design of our global system? D. Can we find a way to use less energy in the production of our product? E. Could a given component in our product be simplified or combined with another?

C

Group technology

CAD can catalog all parts / components for complex products

A manufacturing plants uses a computerized scanner to measure the inner diameters of the belts it produces to ensure they are within the specifications. This is referred to as

CAM

This occurs when competing companies locate near each other because of critical mass of information, talent, venture capital, or natural resources.

Clustering

A formal way to document customer requirements is:

B. quality function deployment (QFD) QFD brings the voice of the customer into the design process.

The methods analysis chart which describes the portions of a work cycle during which an operator and equipment are busy or idle is a: A. flow process chart B. worker-machine chart C. gang process chart D. simultaneous-motion (SIMO) chart E. time/efficiency chart

B. worker-machine chart

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units? A. $105,500 B. $105,200 C. $100,520 D. $100,250 E. $102,500

E. $102,500

The goal of value analysis is to find ways of _______. A. I. Reducing the cost of parts and materials B. II. Improving the performance of the product or service C. III. Incorporating multiple cultural values in global system design D. Both I and III E. Both I and II

E. Both I and II In value analysis an attempt is made to reduce the cost and/or improve the performance of the product.

ISO 9000 currently requires _____ of a certified organization. A. Quarterly reporting B. Product diversity C. Annual audits D. A minimum of four supervisory levels E. Continuous improvement

E. Continuous improvement

Cultural differences, Customer preferences, Labor and Resources are factors relating to: A. Regional choices B. Site selection C. Zoning D. Product design E. Foreign locations

E. Foreign locations

Software systems known as GIS help in location analysis. The initials GIS stand for __. A. Graphic Interface Systems B. Global Integrated Software C. Graded Information Systems D. Geo Intensive Software E. Geographical Information System

E. Geographical Information System

Managers have obligations to a wide variety of stakeholders such as shareholders, employees and customers. When considering outsourcing production to offshore suppliers, managers have to weigh _____. I) Cost benefits that might make shareholders wealthier II) Quality issues that might make firms less productive and/or products riskier III) The investments already tied up in relationships with existing suppliers A. I B. II C. III D. I and II only E. I, II and III

E. I, II and III

Which of the following is not an advantage of work sampling compared to stopwatch time study? A. There is little or no disruption of work. B. It is less susceptible to short-term fluctuations. C. Workers are less resentful. D. It is less costly and less time-consuming. E. It is better suited for short, repetitive tasks.

E. It is better suited for short, repetitive tasks.

Which of the following statements about CAD is not true?

E. It is used successfully by all manufacturing companies. Not all manufacturers use CAD.

When service firms such as retailers or banks make growth-spurred location decisions, typically these involve: A. expanding existing locations rather than adding new ones. B. finding new sources of resources to replace exhausted ones. C. closing down existing locations and opening new ones elsewhere. D. downsizing existing locations and opening new ones elsewhere. E. adding new locations rather than expanding existing ones.

E. adding new locations rather than expanding existing ones.

Sales force composite

Each salesperson estimates what sales will be in their region.

W. Edwards Deming

Emphasized managerial responsibilities

stage 2 of perception

Encoding and Simplification: encoding is the process of interpreting environmental stimuli by using information contained in cognitive categories and schemata stereotypes come into play

Taguchi concepts

Engineering and experimental design methods to improve product design. Identify keep component and process variables affecting product variation. - Quality robustness - Quality loss function - Target oriented quality

ISO 9000

Enhance success through 8 principles: 1. Top management leadership 2. Customer satisfaction 3. Continual improvement 4. Involvement of people 5. Process analysis 6. Use of data driven decision making 7. A systems approach to management 8. Mutually beneficial supplier relationships

What is the impact of exchange rates on location decisions?

Exchange rates fluctuate, and they can negate savings from low wage rates.

Raoul owns a dry good store in Germany and is part of the European Union that uses the euro as currency. His business had steadily grown due in large part to the ability to easily export his products to other countries until the global recession began. Everything that he exports is now heavily taxed, which has caused him to have to lay off a number of employees. In the event that the EU returns to using national currencies, what are some of the things he could do to prepare?

He can consider how to expand his company and how he would pay his employees.

Deming stresses that workers are primarily responsible for poor quality because very often they fail to follow instructions.

FALSE

Employment research in the 1970's revealed that workers were widely dissatisfied; they felt that their jobs were boring and their pay was too low.

FALSE

Ergonomics is an important part of job design to consider when we automate the system.

FALSE

Ergonomics is the use of computers and robots in the workplace.

FALSE

Factor rating is limited to quantitative information concerning location decisions.

FALSE

If the majority of service customers are satisfied, it is likely that all service customers will be satisfied.

FALSE

In market research, a group of consumers who express their opinions about a product or service is called a steering committee.

FALSE

Job design relates to people therefore technology has little impact.

FALSE

Regardless of superior quality, consumers won't pay premium prices.

FALSE

Retail businesses generally prefer locations that are not near other retailers, as this reduces their competition.

FALSE

So long as quality input resources are used to make a product, we can expect quality output from the process.

FALSE

Studies on worker efficiency and time of day suggest the greatest efficiency is at the end of the day when workers are 'warmed up'.

FALSE

Suppliers are not included in quality assurance and quality improvement efforts in TQM; they should worry about their own problems.

FALSE

Benjamin has accepted a management position overseas in Japan. He is excited about this opportunity and has been learning the Japanese culture and the complexities of how his current environment will change. Recently he has returned from a trip to Japan where he met several new people whom he now considers friends. Distinguish how Benjamin is using the global mindset.

He is using the cognitive and social dimensions

Two ways quality improves profitability

Sales gains via: -improved response -flexible pricing -improved reputation Reduced costs via: -increased productivity -lower rework and scrap costs -lower warranty costs

Measurement for service organizations is called

ServQual

psychological barrier

Sharing successful operations provides a ____ against competition - they will be scared to compete.

PDCA

Shewart's continuous improvement model of plan, do, check, act.

Redundancy is often more cost-effective than increasing individual component reliability.

T

Reliability can be defined in terms of a particular point in time or in terms of length of service

T

Reliability can be improved by the use of backup components.

T

A pay system that rewards workers who undergo training that increases their skills is called a "knowledge-based pay system."

TRUE

A worker-machine chart can be used to determine how many machines an operator can manage.

TRUE

According to Deming, it is the systems that management puts into place that are primarily responsible for poor quality, not employees.

TRUE

Advanced communications has aided globalization.

TRUE

Cost of inspectors, testing, test equipment, and labs are examples of appraisal costs.

TRUE

Ergonomics is important for preventing common workplace injuries such as back injuries and repetitive-motion injuries.

TRUE

Firms that wish to do business with the European Community can benefit from having a quality management system that meets ISO 9000 standards.

TRUE

For service and retail stores, a prime factor in location analysis is customer access.

TRUE

For service organizations, the dominant factors in location analysis usually are market-related.

TRUE

ISO standards aid in transferring technology to developing countries.

TRUE

It would be acceptable to use a group incentive plan for an assembly line operation.

TRUE

Job enrichment involves an increase in the level of responsibility for planning and coordinating tasks.

TRUE

Juran describes quality management as a trilogy that consists of quality planning, quality control, and quality improvement.

TRUE

One factor in determining how many cycles to time in a time study is the degree of variation that is present in the observed times.

TRUE

One important factor that influences productivity is trust between workers and managers.

TRUE

One of the potential benefits of "self-directed teams" is higher productivity and greater worker satisfaction.

TRUE

One of the potential benefits of "self-directed teams" is higher quality.

TRUE

One of the reasons for the importance of location decisions is its strategic importance to the supply chains.

TRUE

Six sigma programs have both management and technical components.

TRUE

Specialization is one of the sources of disagreement between the efficiency and behavioral approaches to job design.

TRUE

TQM expands the traditional view of quality beyond looking only at the quality of the final product or service to looking at the quality of every aspect of the process.

TRUE

TQM is not just a collection of techniques. It is rather a whole new attitude toward quality.

TRUE

The PDSA cycle forms the conceptual basis for continuous improvement.

TRUE

The purpose of benchmarking is to establish a standard against which the organization's performance can be judged and to identify a model for possible improvement.

TRUE Benchmarking is used to establish a standard against which performance can be judged.

A service blueprint is quite similar to an architectural drawing.

TRUE A service blueprint shows the basic customer and service actions involved in a service operation.

Reliability can be improved by the use of backup components.

TRUE Adding a backup component is often cheaper than increasing the reliability of a given component.

One approach to extending a product's life cycle is to promote alternate uses of the product.

TRUE Alternate uses extend product life cycles.

Applied research has the objective of achieving commercial applications for new ideas.

TRUE Applied research is aimed at commercializing basic research.

Many US manufacturers are now shifting their focus from products to both product and process improvements.

TRUE Both product and process must be considered in the product/service design question.

A major benefit of Computer Aided Design (CAD) is the increased productivity of designers.

TRUE CAD tends to greatly increase designers' productivity.

"Concurrent engineering" brings people concerned with manufacturing into the design phase earlier than in the "over-the-wall" approach.

TRUE Concurrent engineering people concerned with manufacturing are actively engaged in the design phase.

Service design often must take into account the degree of customer contact required.

TRUE Customer contact is a critical service design issue.

Standardization refers to the extent to which there is absence of variety in a product, service, or process.

TRUE Standardization reduces variety and leads to greater efficiency.

One motivation for an organization to redesign its product or service is to avoid the alternative of downsizing the organization.

TRUE The threat of downsizing often spurs product or service redesign.

One result of globalization is that countries, businesses, and people become more interdependent.

True

Process control is the use of information technology to monitor and control a physical process.

True

Remanufacturing refers to removing some of the components of old products and reusing them in new products.

True Remanufacturing is a way of increasing sustainability.

Which of the following is false regarding control charts?

Values above the upper control limits always imply that the product's quality is exceeding expectations

Currency risk is based on what consumption?

Values of foreign currencies continually rise and fall in most countries

Currency risk is based on what assumption?

Values of foreign currencies continually rise and fall in most countries.

Control charts

________ are used to determine whether a process will produce a product or service with consistent measurable properties.

Strategies for improving productivity in services are a. separation, self-service, automation, and scheduling b. lean production, strategy-driven investments, automation, and process focus c. reduce inventory, reduce waste, reduce inspection, and reduce rework d. high interaction, mass customization, service factory, and just-in-time e. none of the above

a

Which of the following is not one of McDonald's "seven major innovations"? a. the Happy Meal b. drive-through windows c. breakfast menus d. play areas e. a kitchen system to facilitate mass customization

a

Which of the following is not one of the essential ingredients for mass customization? a. high machine utilizations b. personnel and facility flexibility c. reliance on modular design d. rapid throughput e. very effective scheduling

a

When making a location decision at the country level, which of these would be considered? a. corporate desires b. land/construction costs c. air, rail, highway, waterway systems d. zoning restrictions e. location of markets

e

Which of the following are typical of process control systems? a. They have sensors. b. The digitized data are analyzed by computer, which generates feedback. c. Their sensors take measurements on a periodic basis. d. The sensors' measurements are digitized. e. all of the above

e

Which of the following industries is likely to have low equipment utilization? a. auto manufacturing b. commercial baking c. television manufacturing d. chemical processing e. restaurants

e

Which of the following is one of the major categories of costs associated with quality?

external failures, appraisal costs, prevention costs, internal failures

big five personality traits

extraversion (outgoing) agreeableness (trusting/cooperative) conscientiousness (dependable/responsible) emotional stability (relaxed/secure) openness to experience (imaginative/curious)

Customer loop

feedback used to improve control process

which of the following is NOT a prerequisite of process flow charting?

identifying the manager overseeing the process

When a sample measurement falls inside the control limits, it means that

if there is no other pattern in the samples, the process is in control

A hospital benchmarked against Ferrari Racing in an effort to

improve patient handoff quality

lean concept emphasizes all of the following except

increase utilization of the machines

A job shop is an example of an

intermittent process

A products life cycle is divided into 4 stages, which are

introduction, growth maturity and decline

The concept of customizing in a warehouse layout

is a new trend in value added activities in warehouses

a complete system of quality control

is defined by critical control points, inspections, measurements, etc.

the quality of design

is determined before production

In a product oriented layout, the process of deciding how to assign tasks to workstations is referred to as

line balancing

with regards to supplier, lean systems typically require

long-term relationships

Industrial location analysis typically attempts to

minimize costs

job enrichment

motivators: job characteristics associated with job satisfaction hygiene factors: job characteristics associated with job dissatisfaction

Which type of layout is specifically designed to encourage employees to interact?

open office

Daily capacity of a product layout is determined by

operating time divided by cycle time

which of the following is NOT part of the quality trilogy?

operations

Gov. attitudes toward issues such as private property, zoning, pollution and employment stability may change over time. The term associated with this phenomenon is

political risk

which of the following examples involves customer participation in the design of the service?

providing the stockbroker with the desired distribution of the portfolio

Which of these factors would be considered when making a location decision at the region/community level?

proximity to raw materials and customers

Which of the following is most likely to have a low equipment utilization

restaurants

A location decision for a tradition department store (Macy's) would tend to have a

revenue focus

the six-step quality circle approach includes all of the following except:

rewarding workers for quality improvements

psychological functions of mentoring

role modeling acceptance-and-confirmation counseling friendship

a quality loss function includes all of the following costs except

sales costs

encounter

second step of the socialization process learn what the organization is really like (transitioning, training)

the first step in process-flow analysis is to

select the appropriate transformation process for analysis

The three major subdivisions of the product decision are

selection, definition and design

career functions of mentoring

sponsorship exposure & visibility coaching protection challenging assignments

which of the following statement about process quality control is NOT true?

you cannot eliminate common cause variations

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 95% 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. 5700 c. 4845 d. 969 e. 6783

c

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm? a. energy and utility costs b. attitude toward unions c. parking and access d. cost of shipping finished goods e. labor costs

c

Which of the following statements about time series forecasting is true? a. It is based on the assumption that future demand will be the same as past demand. b. It makes extensive use of the data collected in the qualitative approach. c. The analysis of past demand helps predict future demand. d. Because it accounts for trends, cycles, and seasonal patterns, it is more powerful than causal forecasting. e. All of the above are true.

c

Which of the following statements regarding FedEx is true? a. Its hub in Memphis, Tennessee, was selected because of its low cost. b. Memphis, Tennessee, is the only hub in the company's global flight network. c. FedEx believes the hub system helps reduce mishandling and delays due to better controls. d. FedEx uses a hub system in the U.S., but a city-to-city network in other countries. e. Memphis is FedEx's only hub airport in the United States.

c

Which of the following statements regarding Starbucks Coffee is false? a. The firm plans to open three new cafes per day around the world. b. The firm uses GIS to evaluate every site decision. c. The firm's cafes are exclusively in traditional settings: malls, tourist areas, and airports. d. The firm places cafes into ever more innovative locations. e. The firm put cafes in Japan, even though that country had no GIS data available.

c

Which of the following transformations generally has the highest equipment utilization? a. process-focused process b. repetitive process c. product-focused process d. specialized process e. modular process

c

Which of the following uses three types of participants: decision makers, staff personnel, and respondents? a. executive opinions b. sales force composites c. the Delphi method d. consumer surveys e. time series analysis

c

a fishbone diagram is also known as a

cause and effect diagram

extrinsic motivation

caused by the desire to attain specific outcomes

manufacturing system design

choose processes for low-cost / high quality, must be stable and reduce defects

technology development for process selection

choose the processes to transform the materials into a product

components of attitudes

cognitive - what you think (thinking) affective - feelings/emotions behavioral - intent to act (reaction)

formal work groups

command groups task forces (short-term specific) teams (long-term specific) self-managed work teams

managing diversity

creating organizational changes that enable all people to perform up to their maximum potential - be sensitive to differences - treat people as individuals - do not allow your personal stereotypes to influence your judgement

In mass service and service factory quadrants of the service process matrix, the operations manager should focus on all of the following except

customization

"A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type? a. fixed-position layout b. intermittent production c. focused factory d. work cell e. warehouse layout

d

"Automatic placement and withdrawal of parts and products into and from designated places in a warehouse" describes a. AGV b. CAD/CAM c. CIM d. ASRS e. FMS

d

A time series trend equation is 25.3 + 2.1 X. What is your forecast for period 7? a. 23.2 b. 25.3 c. 27.4 d. 40.0 e. cannot be determined

d

Demand for a certain product is forecast to be 800 units per month, averaged over all 12 months of the year. The product follows a seasonal pattern, for which the January monthly index is 1.25. What is the seasonally-adjusted sales forecast for January? a. 640 units b. 798.75 units c. 800 units d. 1000 units e. cannot be calculated with the information given

d

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per unit. The break-even point for machine A is a. $90,000 dollars b. 90,000 units c. $15,000 dollars d. 15,000 units e. cannot be calculated from the information provided

d

Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 80 units per day. Each unit of the product requires 30 minutes of work. What is the theoretical minimum number of workstations? a. 2 b. 3 c. 4 d. 5 e. 6

d

Harley Davidson a. utilizes job shops to make each of its modules b. uses product focused manufacturing c. uses a large number of modules to build a small number of different bikes d. uses work cells to feed its assembly line e. All of the above are true.

d

In a product-oriented layout, the process of deciding how to assign tasks to workstations is referred to as a. station balancing b. process balancing c. task allocation d. line balancing e. work allocation

d

An employee produces 15 parts during a shift in which he made $90. The labor content of the product is

$6

Seven concepts of TQM

1. Continuous improvement 2. Six sigma 3. Employee empowerment 4. Benchmarking 5. Just in time 6. Taguchi concepts 7. Knowledge of TQM tools

Seasonality

A data pattern that repeats itself after a period of days, weeks, months, or quarters.

A job had an observed cycle time of four minutes, a performance rating of 80 percent, and an allowance factor that was 20 percent of job time. Normal time for the job in minutes is: A. 3.20 B. 3.84 C. 4.00 D. 4.80 E. 5.00

A. 3.20

A tool used to organize data into logical categories is called a(n) ___. A. Affinity diagram B. Check list C. Control Chart D. Flow Chart E. Relationship diagram

A. Affinity diagram

One step that isn't part of service blueprinting is:

A. Eliminate boundaries for the service and decide on the level of interaction needed Defining boundaries is a critical part of service blueprinting.

Slotting fees

All of the above

One way to increase reliability is to:

B. improve preventive maintenance procedures Preventative maintenance leads to longer intervals between breakdowns.

The research and development activity which starts after positive research results are available and attempts to turn these results into useful commercial applications is:

C. development Development is the conversion of applied research into useful commercial applications.

Design review

CAD allows granular review of all components in great detail

Which of the following requires long range forecasting (as opposed to short range or medium range forecasting) for its planning purposes?

Capital Expenditures

Which of the following is not true about remanufacturing? A. Remanufactured products can be sold at lower cost. B. The process requires mostly unskilled and semiskilled workers. C. There is less depletion of natural resources. D. It produces high-quality products easily. E. Remanufacturing is mainly carried out by small and mid-sized companies.

D

Which one of the following is not a factor of successful product and service design? A. Be aware of what the competitors are doing. B. Be aware of what customers want. C. Know what government regulations are. D. Use computerized design techniques. E. Know what new technologies are available.

D

Which of the following is least likely to result in product innovations that have near-term commercial application? A. process blueprinting B. development C. applied research D. quality function deployment E. basic research

E

Which of the following is not one of the phases of product design and development? A. Specify product specifications. B. Conduct market test. C. Specify process specifications. D. Conduct design review. E. Perform applied research.

E

Which of the following statements about CAD is not true? A. It increases the productivity of designers. B. It uses computer graphics. C. It requires a good database. D. Some systems permit engineering or cost analysis of proposed designs. E. It is used successfully by all manufacturing companies.

E

Physical Task Social

Environmental Factors

Labor laws are an important site-related factor.

FALSE

The center of gravity method of location planning is accurate only when the quantities to be shipped to each location are equal.

FALSE

Life-cycle assessment involves incorporating where the product or service is in its life-cycle into system-design decision-making.

FALSE Life-cycle assessment involves assessing the environmental impact of a product or service as it goes through its useful life.

Modular design increases costs of purchasing and controlling inventory compared to non-modular.

FALSE Modular designs make inventory management easier and cheaper.

The quality function deployment (QFD) matrices are often referred to as the "House of Quality" because, when completed, they "house" all of the customer's quality requirements.

FALSE QFD matrices link customer requirements with other product/process design elements.

Quality function deployment (QFD) is based on a set of standards which relate customer requirements to company capabilities.

FALSE QFD relates customer requirements to product designs and the capabilities necessary to carry these designs out.

Activity times should not be included in a service blueprint.

False

Lenovo, the worlds largest PC maker, is redefining the meaning of a Chinese company. They are blending the best of eastern philosophy and culture with the best of western business and management thinking. Lenovo's top managers now come from 14 different nations. Analyze how Shaheed's software company in India can reflect the same refinements that Lenovo is making in the changing international landscape.

He can employ people from non-Indian cultures to bring different perspectives to the company.

NAFTA is a trade agreement between Canada, The US, and Mexico. Which of the following is not one of the intended outcomes of this agreement?

Higher unemployment in the US

goods content

In a customer benefits package, tangibles are known as ________.

Which of these pairs of functions would tend to be affected most dramatically by a product or service redesign? Finance and Engineering Engineering and Accounting Operations and Accounting Finance and Human Resources Marketing and Operations

Marketing and Operations ( Product and service design involves or affects nearly every functional area of an organization. However, marketing and operations have major involvement.)

Flexible equipment with rapid changeovers is most closely associated with which approach?

Mass customization

in which stage of the product life cycle should product strategy focus on improved cost control?

Maturity

PDCA, developed by Shewhart, stands for which of the following?

Plan-Do-Check-Act

Cost of quality (COQ)

Prevention costs Appraisal costs Internal failure costs External failure costs

Which of the following technologies would enable a cashier to scan the entire contents of a shopping cart in seconds?

RFID

In location planning, environmental regulations, costs and availability of utilities, and taxes are:

Regional/community factors

stage 4 of perception

Retrieval and Response: people retrieve information from memory when they make judgements and decisions

Benchmarking

Selecting a demonstrated standard of performance that represents the very best performance for a process or activity. Steps: 1. Determine what to benchmark 2. Form a benchmark team 3. Identify benchmarking partners 4. Collect and analyze benchmarking information 5. Take action to match or exceed the benchmark

Naive approach

Simplest way to forecast is to assume that demand in the next period will be equal to demand in the most recent period.

Understand sourced items and identify optimal performance levels

Supply Chain Strategy

The demand for a product and the rate of technological change have significant impact on the length of a given phase of the product life cycle.

TRUE How long a product stays in a particular phase of its life cycle depends greatly on the rate of technological change.

The goal of life-cycle assessment is to incorporate the environmental impact of products or services into product-design or service-design decision-making.

TRUE Life-cycle assessment involves assessing the environmental impact of a product or service as it goes through its useful life.

Product failures can be easier to remedy with modular design.

TRUE Modular designs make it easy to change only portions of the design.

Applied research is the major R & D effort of business organizations because of the desire for commercial applications.

TRUE Most business organizations focus on applied rather than basic research.

Product liability means that a manufacturer is liable for any injuries and damages caused by a faulty product because of poor workmanship or design.

TRUE Product liability is a serious issue for manufacturers.

Research and development (R&D) refers to organized efforts that are directed toward increasing scientific knowledge and product (or process) innovation.

TRUE Product or process innovations often result from deliberate R&D programs.

Re-manufacturing refers to removing some of the components of old products and reusing them in new products.

TRUE Re-manufacturing is a way of increasing sustainability.

Production and transportation costs are always considered in which of the following location decision methods?

Transportation model

Automated storage and retrieval systems are commonly used in distribution facilities of retailers

True

Cycle time is the maximum time that the product is allowed at each work station.

True

One limitation of the net present value approach to investments is that investments with identical net present values may have very different cash flows.

True

A manufacturing firm finds a location that has a significant cost advantage over alternatives, but rejects that location because the educational infrastructure was insufficient to train the firm's workers in its special production technologies. The firm's action illustrates the link between __________ and location. a. innovation b. clustering c. tax incentives d. globalization e. proximity

a

which of the following is a form of infrastructure?

a change in information system

A seasonal index for a monthly series is about to be calculated on the basis of three years' accumulation of data. The three previous July values were 110, 150, and 130. The average over all months is 190. The approximate seasonal index for July is a. 0.487 b. 0.684 c. 1.462 d. 2.053 e. cannot be calculated with the information given

b

An approach to location analysis that includes both qualitative and quantitative considerations is a. locational cost-volume b. factor rating c. transportation model d. assignment method e. make or buy analysis

b

Computer monitoring of tracking signals and self-adjustment if a signal passes a preset limit is characteristic of a. exponential smoothing including trend b. adaptive smoothing c. trend projection d. focus forecasting e. multiple regression analysis

b

The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put in use, the program has become more complex, so that 1050 now represents the most employees that can be trained per year. In the past year, 950 employees were trained. The efficiency of this system is approximately _____ and its utilization is approximately _____. a. 79.2 percent; 90.5 percent b. 90.5 percent; 79.2 percent c. 87.5 percent; 950 employees d. 950 employees; 1050 employees e. 110.5 percent; 114.3 percent

b

The transportation method, when applied to location analysis a. minimizes total fixed costs b. minimizes total production and transportation costs c. minimizes total transportation costs d. maximizes revenues e. minimizes the movement of goods

b

Which of the following is not present in a time series? a. seasonality b. operational variations c. trend d. cycles e. random variations

b

Which of the following statements regarding fixed costs is true? a. Fixed costs rise by a constant amount for every added unit of volume. b. While fixed costs are ordinarily constant with respect to volume, they can "step" upward if volume increases result in additional fixed costs. c. Fixed costs are those costs associated with direct labor and materials. d. Fixed costs equal variable costs at the break-even point. e. Fixed cost is the difference between selling price and variable cost.

b

Which one of the following products is most likely made in a job shop environment? a. a daily newspaper b. paper forms c. television sets d. cigarettes e. canned vegetables

b

Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking?

based on corruption

Which of the following is least likely to result in product innovations that have near-term commercial application? development process blueprinting basic research quality function deployment applied research

basic research ( Basic research has the objective of advancing the state of knowledge about a subject, without any near-term expectation of commercial applications. )

attribution theory

behavior can be attributed either to internal factors within a person or external factors within the environment

self-efficacy

belief in one's ability to successfully accomplish a specific task

thresholds of equity & inequity

benevolents --> sensitives --> entitleds benevolents: have a higher tolerance for negative inequity sensitives: react as the equity theory predicts entitleds: have no tolerance for negative inequity; they expect to obtain greater outputs

product idea generation

brainstorming, but includes all departments and customer needs/feedback o Includes R&D push and marketing pull

Which of the following represents a common way to manage capacity in the service sector? a. appointments b. reservations c. changes in staffing levels d. first-come, first served service rule e. "early bird" specials in restaurants

c

Which of the following statements regarding ethical and environmentally friendly processes is true? a. Operations managers can be environmentally sensitive, but they must avoid following a low cost strategy. b. Processes can be environmentally friendly or socially responsible, but not both. c. Operations managers can be environmentally sensitive and still follow a low cost strategy. d. Using energy-efficient lighting saves so little that it should not be labeled environmentally friendly. e. The only business strategy consistent with ethical and environmentally sensitive management is the differentiation strategy.

c

Which of these assumptions is not associated with strategies for goods-producing location decisions? a. Most major costs can be identified explicitly for each site. b. Focus on identifiable cost. c. High customer contact issues are critical. d. Intangible costs can be evaluated. e. Location is a major determinant of cost.

c

Which of these factors would be considered when making a location decision at the site level? a. government rules, attitudes, stability, incentives b. cultural and economic issues c. zoning regulations d. cost and availability of utilities e. proximity to raw materials and customers

c

Which one of the following is not common to repetitive and product-oriented layouts? a. a high rate of output b. specialization of labor c. ability to adjust to changes in demand d. low unit costs e. All are common to product-oriented layouts.

c

Which type of layout is specifically designed to encourage employees to interact? a. warehouse b. job shop c. open office d. retail e. repetitive/continuous

c

Yamaha manufacturers which set of products with complementary demands to address seasonal fluctuations? a. golf clubs and skis b. swimming suits and winter jackets c. jet skis and snowmobiles d. pianos and guitars e. ice skates and water skis

c

over-the-wall-syndrome

communication so one department's design doesn't inhibit the next from moving the product along due to different engineers working in different departments

Which of the following is true regarding vision systems? a. They are consistently accurate. b. They are modest in cost. c. They do not become bored. d. All of the above are true. e. None of the above is true.

d

Which of the following is usually not one of the top considerations in choosing a country for a facility location? a. availability of labor and labor productivity b. exchange rates c. attitude of governmental units d. zoning regulations e. location of markets

d

Which of the following phrases best describes product focus? a. low volume, high variety b. finished goods are usually made to order c. processes are designed to perform a wide variety of activities d. high fixed costs, low variable costs e. raw material inventories are low relative to the value of the product

d

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast? a. 0 b. 1 divided by the number of periods c. 0.5 d. 1.0 e. cannot be determined

d

Cycle time is computed as

daily operating time divided by the scheduled output

An engineering drawing shows the

dimensions, tolerances, materials and finishes of a component

One of these is not a characteristic of a well-designed service system: robust cost effective user friendly easy to sustain distributed computer networks

distributed computer networks ( Well-designed service systems tend to be user friendly, robust, cost-effective, and easy to sustain. )

To become ISO 9000 cert, orgs must

document quality procedures, have an onsite assessment, have an ongoing series of audits of their products or service

Interference checking

does another part occupy the same space?

the fundamental difference between cycles and seasonality is the

duration of the repeating patterns

A forecast based on the previous forecast plus a percentage of the forecast error is a(n) a. qualitative forecast b. naive forecast c. moving average forecast d. weighted moving average forecast e. exponentially smoothed forecast

e

The layout strategy that deals with low-volume, high-variety production is a. fixed-position layout b. retail layout c. warehouse layout d. office layout e. none of the above

e

The main advantage of a product-oriented layout is typically a. low raw material cost b. employability of highly skilled labor c. high flexibility d. low capital cost e. low variable cost per unit

e

Time series data may exhibit which of the following behaviors? a. trend b. random variations c. seasonality d. cycles e. They may exhibit all of the above.

e

Value Stream Mapping a. is a variation on time function mapping b. examines the supply chain to determine where value is added c. extends time function mapping back to the supplier d. starts with the customer and works backwards e. All of the above are true.

e

What describes a system that stores and displays information that can be linked to a geographic location? a. AIS b. LOC c. GLOC d. LIS e. GIS

e

Which of the following is not a type of qualitative forecasting? a. executive opinions b. sales force composites c. consumer surveys d. the Delphi method e. moving average

e

Which time series model uses past forecasts and past demand data to generate a new forecast?

exponential smoothing

A forecast based on the previous forecast plus a % of the forecast error is an

exponentially smoothed forecast

An operations manager's ethical responsibilities

extend from design to production to final destruction/disposition of a product

Complimentary products

extend the life of existing products via new features or improvements to prior version

One of Britain's largest children's hospitals working with Ferrari Racing is an example of

external benchmarking

Community attitudes, zoning restrictions and quality of labor force are likely to be considered in which of the following location decision methods?

factor-rating method

Key Business Factors

factors significantly related to success of firm - what makes them great.

A product focused process is commonly used to produce

high volume, low variety products

equity theory

holds that motivation is a function of fairness and justice in social exchanges

Criticality

how often failure will occur, how easy it is to diagnose, whether it can be fixed.

In mass service and professional service, the operations manager should focus on

human resources

Which of the following is true about ISO 14000 certification?

it deals with environmental management, one of its core elements is life cycle assessment, its not a prereq for ISO 9000 cert and it offers a good systematic approach to pollution prevention

Yamaha manufactures which set of products with complementary demands to address seasonal fluctuations

jet skis and snowmobiles

One use of short range forecasts is to determine

job assignments

motivational approaches

job enlargement (adding tasks/variety) job rotation (moves employees from one specialized job to another) intrinsic motivation extrinsic motivation core job dimensions job enrichment (adds achievement, recognition, responsibility into a job)

A hospital's layout most closely resembles which of the following?

job shop

The forecasting model that pools the opinions of a group of experts or managers is known as then

jury of executive opinion model

All of the following costs are likely to decrease as a result of better quality except?

maintenance costs

Design for manufacturing

make them cost-effective /simple to build and maintain. Standardize parts, use only a few.

When developing the Trident Splash, Cadbury faced design problems overcome by

manufacturing and value engineering

the Baldrige award is given in which of the following categories?

manufacturing, healthcare, small business, nonprofit, education, service.

Concurrent engineering

many steps completed simultaneously to speed up design lifecycle. Yields fewer mistakes...

The main gal of retail layout is

maximizing profitability per square foot of floor space

A forecast with a time horizon of about 3 months to 3 years is typically called a

medium range forecast

downfalls of mentoring

mentors often select proteges that are "like them" there are gender and minority issues formal mentoring is not as effective

The most common tactic followed in process layout planning is to arrange departments or work centers so they

minimize the costs of material handling

The transportation method, when applied to location analysis

minimizes total production and transportation costs

The central problem in product oriented layout planning is

minimizing the imbalance in the work loads among workstations

internal locus of control

people who believe they control the events and consequences that affect their lives *you are the one that makes things happen*

the number of defects of product measures the

performance quality of the product

four layers of diversity

personality (core) --> internal (can't change) --> external --> organizational

flow materials firm upstream known to a firm is called

physical supply

Maslow's Hierarchy of Needs

physiological --> safety --> love --> esteem --> self-actualization once a need is satisfied, it activates the next need in the hierarchy *a satisfied need may lose its motivational potential*

perception

process by which we organize and interpret our sensory impressions in order to interpret and understand our environment; how we simplify things

Forecasts are usually classified by time horizon into 3 categories

short range, medium range and long range

analysis of the flow of information

should always be accompanied by an analysis of material flow

which of the following statement is NOT true about six-sigma quality?

six-sigma corresponds to 3 standard deviations on either side of the mean.

core job dimensions

skill variety task identity task significance autonomy (freedom) feedback

One result of concurrent engineering in product design is

speedier product development

Stakeholders who are affected by the production and marketing of poor quality products include

stockholders, employees and customers

Which of the following is not one of the essential ingredients for mass customization?

storage of the many variations of finished goods to quickly accommodate the high level of customization

Total Quality Management (TQM)

success* 1. do it right the first time to eliminate costly rework 2. listen to and learn from customers and employees 3. make continuous improvement an everyday matter 4. build teamwork, trust, and mutual respect

design and management of a seamless, value-added process cross organization boundaries to meet the needs of the end customer

supply chain management

Which of the following is not one of McDonald's seven major innovations?

the Happy Meal

emotional intelligence

the ability to manage oneself and interact with others in mature and constructive ways

self-esteem

the belief about one's own self-worth based on an overall self-evaluation

ethnocentrism

the belief that one's native country, culture, language and behavior are superior

which of the following is NOT true about supply chain dynamics?

the best way to improve the supply chain is to increase total replenishment time

which of the following would NOT be changed due to the process flow analysis?

the customers

the document for production that gives the instruction to make a given quantity of a particular item, usually to a given schedule, is

the work order

external locus of control

those who believe their performance is a product of circumstances that are beyond their control *things just happen to you*

The change in cell-phone model life cycles from 2 years to under 6 months is the result of

time-based competition

The role of decision trees in product design

to calculate the expected value of each course of action

Use geometric modeling

to develop a computer compatible mathematical description of a part

Which of the following is not a reason for redesigning a product or service? to increase the level of employee satisfaction to increase quality to increase the level of customer satisfaction to attract and increase customer demand to reduce labor or material cost

to increase the level of employee satisfaction A product or service redesign does not necessarily involve improving employee satisfaction.

preventive rather than reactive

Quality and sustainability TQEM

What factors would be considered when at the site level?

Zoning regulations

A tool that is not used for quality is ___. A. Flowchart B. Histogram C. Parato Analysis D. Redesign E. Check sheets

D. Redesign

Process chart symbols don't include _________. A. Delay B. Inspection C. Operation D. Rejection E. Storage

D. Rejection

A performance rating of less than 1.0 means that the observed worker was judged to be working at a faster than normal rate - doing the job quicker than normal.

FALSE

Costs of inspectors, testing, test equipment, and labs are examples of ___. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs

C. appraisal costs

A quality circle is a cross-functional team focused on quality.

FALSE

why feedback fails

-most firms will only do performance reviews once a year -used for negative reasons -complain that it wastes time

the Baldrige award emphasizes all of the following except

0 defects

the ideal setup time for a lean system is

0 minutes

Which of the following values of alpha would cause exponential smoothing to respond the most slowly to forecast errors?

0.10

Three reasons why quality is important:

1. Company reputation 2. Product liability 3. Global implications

Seven steps in the forecasting system

1. Determine the use of the forecast 2. Select items to be forecasted 3. Determine the time horizon of the forecast 4. Select the forecasting models 5. Gather data needed to make the forecast 6. Make the forecast 7. Validate and implement results

Process A has fixed costs of 1,000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 unit. The crossover point between process A and process B is

50 units

One step that is not part of service blueprinting is: A. Eliminate boundaries for the service and decide on the level of interaction needed. B. Identify and determine the sequence of customer and service actions and interactions. C. Develop time estimates for each phase of the process. D. Understand the time variability involved. E. Identify potential failure points and develop a plan to minimize them.

A

One way to increase reliability is to: A. improve component design. B. increase the number of service stations. C. increase mean repair time. D. increase the number of dependent components. E. reduce production capacity.

A

Which of the following is not an advantage of standardization? A. The opportunity to freeze design at a very early stage. B. Fewer parts to deal with in inventory. C. Reduced training cost and time. D. Purchasing is more routine. E. Inventory management is less complex.

A

Operations managers will need to consider ethical and social responsibility issues when location decisions involve

All of the above

A strategy that emphasizes convenience for the customers would probably select a single very large facility.

FALSE

services blueprint

A ________ is a flowchart that isolates potential fail points in a process.

A worker-machine chart can help identify non-productive parts of a process.

FALSE

tree diagram

A(n) ________ is useful to identify the steps needed to address the given problem.

The "Control" phase of DMAIC is intended to ensure that: A) improvements are sustained. B) the proper subset of process inputs are monitored. C) data analysis is overseen. D) variability reduction is pursued. E) inputs are closely monitored.

A) improvements are sustained.

Designing for recycling helps facilitate: A. reduced legal liability. B. compliance with regulatory environments. C. increased product reliability. D. reduced standardization costs. E. better customer service.

B

Excitement characteristics are categories in the _________ model. A. bipolar B. Kano C. Pareto D. quality E. service matrix

B

A formal way to document customer requirements is: A. consumer surveys. B. quality function deployment. C. focus groups. D. the Delphi technique. E. a sales/marketing matrix.

B

One of these is not a characteristic of a well-designed service system: A. user friendly B. robust C. distributed computer networks D. cost effective E. easy to sustain

C

An organization achieves quality by consistently meeting their competitor's standards.

FALSE

Because 'courtesy' is subjective, it can't be considered a factor in service quality.

FALSE

In work sampling, observations should be taken: A. at the same time each day B. within a short period of time C. at randomly determined times D. once every hour E. once every day

C. at randomly determined times

The structural approach for integrating customer requirements into every aspect of product development is known as: A. total quality management. B. customer satisfaction. C. quality function deployment. D. customer integration. E. a product development team.

C

When an organization comes to the realization that there are quality problems in products that are already in service, ethical approaches include: (I) divulging the information to the public at large. (II) recalling, if possible, affected products. (III) handling complaints on an individual rather than a systemic basis. A) I and III B) I and II C) Neither I, II, nor III D) II and III E) I, II, and III

B) I and II

Strategic benchmarking

___ comparison of how firms compete, often by looking outside of own industry.

Some communities offer financial and other incentives to ______ new businesses. A. Tax B. Attract C. Marginalize D. Incorporate E. Zone

B. Attract

Focusing a supply chain on _________ is a modern way of ensuring high quality inputs and a ready supply of process-improvement ideas. A. lowest cost-per unit sourced B. close, collaborative ties with suppliers C. suppliers that emphasized continuous-flow production D. ISO 14000 customers E. partners pursuing similar strategies

B. close, collaborative ties with suppliers

In the area of product and service design, the acronym CAD refers to:

B. computer aided design CAD can increase the productivity of product designers.

Mobile phones have evolved from devices intended to place and receive phone calls into handheld multimedia communications devices, but in the eyes of some customers these new features make the phones less desirable. This is an example of _________.

B. creeping featurism Customer satisfaction isn't strictly dependent on the number of features a product offers.

Which is not a requirement for an effective team? A. talent and skills to meet goals B. one or more members representing supervision C. a system of reinforcement and celebration D. clearly stated and commonly held vision and goals E. effective and skilled interpersonal relations.

B. one or more members representing supervision

64. A software company is weighing whether to release a new version of its software. The company can go ahead and release the version now and correct flaws with subsequent patches or upgrades, or it can wait until the new version is reasonably bug-free. This is an example of: A. life cycle analysis. B. value analysis. C. vaporware. D. concurrent engineering. E. design for production. Vaporware is attractive from some perspectives but not from others.

C

A system consists of two components, each of which must activate if the system is to activate. One component has a reliability of .99. The other has a reliability of .95. The components are independent of one another with respect to reliability. What is the overall system reliability? A. .99 B. .95 C. .94 D. .90 E. Cannot be determined with this information.

C

Elements of the service process in which there is little to no contact with the customer are referred to as: A. robust. B. delayed differentiators. C. back-of-the-house. D. user-friendly. E. mission-consistent.

C

Incorporating design for disassembly principles in product design helps firms with ___________ design issues. A. Legal B. social C. reuse D. reverse engineering E. reengineering

C

Elements of the service process in which there is little to no contact with the customer are referred to as ____________.

C. back-of-the-house Those elements involving substantial contact with the customer are referred to as "front-of-the-house" operations.

Strong competition

___ provides incentive for continual improvement in an industry

A quality improvement technique that involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking is: A. Pareto analysis B. benchmarking C. brainstorming D. a control chart E. a check sheet

C. brainstorming

The process of identifying other organizations that are best at some facet of your operations, and then modeling your organization after them is known as: A. continuous improvement B. employee empowerment C. competitive benchmarking D. copycatting E. industrial espionage

C. competitive benchmarking

Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem ___. A. just before shipping our product to the customer B. immediately after we complete the last operation C. during the design phase D. just before we begin the first production operation E. regardless of when you fix the problem, costs are about the same

C. during the design phase

Product benchmarking

____ comparison of design, often via reverse engineering

A behavioral approach to job design which increases responsibility for planning and coordinating tasks is job: A. enlargement B. rotation C. enrichment D. involvement E. enhancement

C. enrichment

The method for evaluating location alternatives which uses their composite (weighted-average) scores is: A. cost-volume analysis B. transportation model analysis C. factor rating analysis D. linear regression analysis E. MODI analysis

C. factor rating analysis

Facilities, personnel and operations that are located around the world are called: A. non-domestic B. diversified operations C. globalization D. worldwide presence E. virtual organization

C. globalization

Among the disadvantages of having global operations is/are: A. proximity to global markets B. favorable liability laws C. low labor productivity D. lower wage costs E. less restrictive environmental regulation

C. low labor productivity

Allowance percentages normally would not include: A. noise levels B. monotony C. personal phone calls D. weight lifted E. rest room allowances

C. personal phone calls

The structural approach for integrating customer requirements into every aspect of product development is known as:

C. quality function deployment Quality Function Deployment brings the voice of the customer into the product development process.

The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas is called:

C. reverse engineering Reverse engineering can be a good source of ideas for product design.

In stopwatch time study, adjusting the normal time by an allowance factor for normal delays and interruptions results in the: A. observed time B. normal time C. standard time D. allowance time E. performance rating time

C. standard time

A software company is weighing whether to release a new version of its software. The company can go ahead and release the version now and correct flaws with subsequent patches or upgrades, or it can wait until the new version is reasonably bug-free. This is an example of _____.

C. vaporware Vaporware is attractive from some perspectives but not from others

When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is ___. A. Linear programming B. Consumer surveys C. Factor rating D. Transportation models E. Center of gravity methods

C. Factor rating

Behavioral approaches to job design include: A. Specialization B. Ergonomics C. Job Rotation D. Flow Process Charts E. SIMO Charts

C. Job Rotation

Loss of business, liability, productivity and costs are consequences of ___. A. Labor Unions B. Globalization C. Poor Quality D. Robotics E. Micro-factories

C. Poor Quality

Incorporating design for disassembly (DFD) principles in product design helps firms with ___________ design issues.

C. Re-use Refurbished products must first be disassembled.

One form of long term team that is increasingly being used, especially in lean production settings, is: A. Quality circle B. Product Design C. Self-directed D. Self-improvement E. Mandatory

C. Self-directed

A chart showing the number of occurrences by category would be used in: A) cause-and-effect diagrams. B) quality function deployment. C) Pareto analysis. D) benchmarking. E) interviewing.

C) Pareto analysis We would look for root causes to the most frequently occurring quality failures.

Costs of inspectors, testing, test equipment, and labs are examples of: A) replacement costs. B) external failure costs. C) appraisal costs. D) prevention costs. E) internal failure costs.

C) appraisal costs.

ISO certification is similar to the Baldrige Award in its emphasis on: A) outsourcing. B) services. C) self-appraisal. D) teamwork. E) statistical tools.

C) self-appraisal.

Which sample proportion will require the largest number of work sampling observations? A. .05 B. .25 C. .50 D. .75 E. .95

C. .50

Which isn't a cost of quality? A. Prevention cost B. External failure C. Extended Service Contracts D. Internal failure E. Appraisal costs

C. Extended Service Contracts

The tool that is useful in the collection and organization of data is: A. a control chart B. a Pareto chart C. a check sheet D. a flow chart E. none of the above

C. a check sheet

Process Benchmarking

Considered most important benchmark - based on concept of 5w2h: who, what, when, where, why / how, how much

Prevention costs

Costs associated with reducing the potential for defective parts or services

Appraisal costs

Costs related to evaluating products, processes, parts, and services

External failure costs

Costs that occur after delivery of defective parts or services

Internal failure costs

Costs that result from production of defective parts or services before delivery to customers

Amarnd Feigenbaum

Cross functional teamwork (40 tools)

Relationship management means treating the customer as a valued asset to be managed.

Customer Relationship Management

Used to mine data to improve retention through phases of the relationship: Acquisition: seeking profitable customers Retention: incentivize customers to stay connected Enhancement: improve the services offered

Customer Relationship Management Systems

proactive approach to satisfying customer needs

Customer driven quality

A disadvantage of global teams for product design is that: A. customers may have different needs in different countries. B. the product designed may have increased marketability and utility. C. the diversity of an international team may be a detriment. D. ease of face-to-face meetings is absent since members are located everywhere. E. technology allows constant contact with team members.

D

Suppose a given control unit fails, on average, every 12,000 hours. It takes an average of 900 hours to repair and reboot this unit. The repair/reboot procedures for this unit are being reconfigured. By how much would average repair/reboot time need to be reduced to increase availability by 5 percent (assuming the control unit's average life remains unchanged)? A. not more than 200 hours B. more than 200 hours but not more than 400 hours C. more than 400 hours but not more than 600 hours D. more than 600 hours but not more than 800 hours E. more than 800 hours

D

Deciding how much to invest in the prevention of defects can be analyzed using ___. A. EVPI B. Net Present Value C. Weighted Factor Analysis D. Return on Quality E. Breakeven Analysis

D. Return on Quality

TQM stands for: A. Taguchie Quality Methods B. Tactical Quality Measurements C. The Quality Matrix D. Total Quality Management E. Total Quantity Measurement

D. Total Quality Management

Continuous improvement attempts to achieve major breakthroughs in product or service quality.

FALSE

The tool that is useful in documenting the current process is: A. a control chart B. a Pareto chart C. a check sheet D. a flow chart E. a simo chart

D. a flow chart

A quality circle is ___. A. responsible for quality B. total quality control C. an inspection stamp found on meat D. a voluntary group of employees E. none of the above

D. a voluntary group of employees

In a stopwatch time study, the number of cycles that must be timed is a function of: A. the variability of observed times B. the desired accuracy for the estimated job time C. the desired confidence for the estimated job time D. all of the above E. none of the above

D. all of the above

The design of work systems involves: A. work measurement B. job design C. compensation D. all of the above E. use of outside human resource consultants

D. all of the above

Cost of inspectors, testing, test equipment, and labs are examples of prevention costs.

FALSE

The purpose of the Malcolm Baldrige National Quality Award is to ___. A. stimulate efforts to improve quality B. recognize quality achievements of U.S. companies C. publicize successful quality programs D. all of the above E. distribute the grant money available for improved quality

D. all of the above

In methods analysis, a "therblig" is a: A. charting method of analysis B. job enrichment technique C. dummy task D. basic elemental motion E. fraction (.0006) of a minute

D. basic elemental motion

The quality control improvement tool that resembles a "fishbone" is ___. A. brainstorming B. check sheets C. Pareto analysis D. cause-and-effect diagrams E. fail-safe methods

D. cause-and-effect diagrams

The term 'degrees of newness' is associated with:

D. degree of design change Superficial design changes are low in 'degrees of newness.

Giving workers responsibility for quality improvements and authority to make changes is known as: A. continuous improvement B. passing the buck C. benchmarking D. employee empowerment E. employee involvement

D. employee empowerment

A control chart is a visual representation of the various states in a process.

FALSE

Which of the following is the last step in the procedure for making location decisions? A. determine the evaluation criteria B. identify important factors C. develop location alternatives D. evaluate alternatives and make a selection E. request input regarding alternatives

D. evaluate alternatives and make a selection

Which of the following is not a goal of process improvement? A. increasing customer satisfaction B. reducing waste C. achieving higher quality D. identifying the cause of a problem E. All are the goals.

D. identifying the cause of a problem

Which of the following is not generally considered an advantage of specialization? A. high productivity B. low wage costs C. ease of training employees D. low equipment costs E. all are advantages

D. low equipment costs

When performing a time study, the analyst converts the observed time into the time an "average" worker would require working at an acceptable pace by using which of the following? A. allowance factors B. MTM C. methods analysis D. performance rating E. analysis of therbligs

D. performance rating

Quality planning and administration, quality training, and quality control procedures are examples of ___. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs

D. prevention costs

Financial benchmarking

____ comparison of financials to evaluate overall competitiveness

Products or services with a high degree of similarity of features and components are called:

D. product family's Delineating product families helps lead to component commonality.

A major advantage of job specialization in business is increased __________. A. motivation B. opportunity for advancement C. opportunity for self-fulfillment D. productivity E. job enrichment

D. productivity

A flow process chart is helpful for visualizing the portions of a work cycle during which the operator and equipment are busy or idle.

FALSE

Which of the following raises quality risks? A) benchmarking B) empowering employees C) currency fluctuations D) outsourcing to less-developed countries E) streamlining the supplier base

D) outsourcing to less-developed countries Quality risks increase when outsourcing to less-developed countries.

A disadvantage of global teams for product design is that:

D. Ease of face to face meetings is absent since members are located everywhere If face to face interaction is required, global design teams might not be a viable option.

The chart used to review the overall sequence of an operation by focusing on either the movements of the operator or materials is called a __________. A. SIMO-chart B. Gantt chart C. Worker-materials chart D. Flow process chart E. Multi-activity chart

D. Flow process chart

The advantages of standardization include which of the following? (I.) The opportunity to freeze design at a very early stage (II.) Fewer parts to deal with in inventory (III.) Reduced training cost and time (IV.) Purchasing is more routine

D. II, III, IV Standardization doesn't necessarily help in freezing designs early.

Which of the following is not true about re-manufacturing?

D. It produces high quality products easily. Re-manufacturing can be a very difficult and costly process.

A SIMO chart includes: A. Delay B. Storage C. Transportation D. Left/Right hand movements E. Inspection

D. Left/Right hand movements

Focusing attention on the most important problem areas is referred to as: A. quality circles B. quality assurance C. brainstorming D. Pareto analysis E. cause-and-effect analysis

D. Pareto analysis

A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should: A. be indifferent between these locations B. choose Akron C. choose Boston D. reject both locations E. build a plant in both cities

D. reject both locations

The methods analysis chart which describes the movements of both hands at the same time is a: A. flow process chart B. worker-machine chart C. gang process chart D. simultaneous-motion (SIMO) chart E. time/efficiency chart

D. simultaneous-motion (SIMO) chart

A disadvantage of teams is: A. higher quality B. higher productivity C. greater worker satisfaction D. team member conflict E. lower turnover

D. team member conflict

The typical difference between "quality circles" and "continuous improvement teams" is ______. A. Quality circles work on product design only. B. Continuous improvement teams work on product and process design. C. Continuous improvement teams use only engineers while quality circles use just the workers doing the work. D. the amount of employee empowerment E. There is no difference-they are just the same.

D. the amount of employee empowerment

ISO 9000 standards do not have a requirement for ___. A. resource B. remedial C. systems D. training E. management

D. training

Which one of the following is not a factor of successful product and service design?

D. use computerized design techniques Computerized design techniques don't necessarily lead to successful product and service design.

Which of the following concerns is not one that job designers focus on? A. what will be done in a job B. who will do the job C. how the job will be done D. when should the job be completed E. where the job will be done

D. when should the job be completed

Kaizen

Describes the ongoing process of unending improvement

Just-in-time (JIT)

Designed to produce or deliver goods just as they are needed. Related to quality in three ways: JIT cuts the cost of quality JIT improves quality Better quality means less inventory and a better, easier to employ JIT system

Reliability / consistency / dependability Responsiveness / willingness Competence / skill Approachability Courtesy Communication Creditability Security Knowing and understanding the customer Tangible evidence of service

Determinants of service quality

A system consists of two components, each of which must activate if the system is to activate. One component has a reliability of .99. The other has a reliability of .95. What is the overall system reliability? A. .99 B. .95 C. .94 D. .90 E. Cannot be determined with this information.

E

The assessment of the environmental impact of a product or service throughout its useful life is called: A. flow diagramming. B. service blueprinting. C. quality function deployment. D. process mapping. E. life cycle analysis.

E

The term "standardization" is closely associated with: A. customization. B. high cost. C. longer lead times. D. variety. E. interchangeability.

E

Waygate's residential Internet modem works well but is sensitive to power-line fluctuations. On average, this product hangs up and needs resetting every 200 hours. On average about 45 minutes is needed to reset this product. What is this product's availability? A. not in excess of .75 B. in excess of .75 but not in excess of .8 C. in excess of .8 but not in excess of .9 D. in excess of .9 but not in excess of .95 E. in excess of .95

E

Which of the four major categories of quality costs is particularly hard to quantify?

External costs

GAP = difference between desired and actual performance

GAPS Approach to customer design

Complaint resolution, feedback, guarantees, corrective action

Four process design aspects

Vladimir is a manager at an automotive plant in the US. His company has realized it needs to think globally since the whole world is a source of business and has struck a deal with an automotive supplier in Brazil to buy 15% of their parts at a discounted rate as this will better serve the company's needs. His company has also determined that they can streamline their processes if they outsource some work. Relate what Vladimir's company is demonstrating.

Globalization

In which stage of the product life cycle should product strategy focus on process modifications as the product is being "fine tuned" for the market?

Introduction

Which of the following statements about time series forecasting is true?

Its based on the assumption that the analysis of past demand helps predict future demand

Jiyaing is an HR manager at a research firm in China, and her company has decided to open a branch in the US. Jiyaing has been assigned to assist the HR department in the new branch as they become familiar with the company's policies. Jiyaing would like to spend a little time getting acquainted with the people in the new branch while she's working with them, but they mainly want information that pertains to the company. Identify what type of cultural intelligence Jiyaing needs to cultivate.

Jiyaing needs to develop a low context culture

Poke-yoke

Literally translated, "foolproof", it has come to mean a device or technique that ensures the production of a good unit every time.

which of the following statement about Little's law is NOT true?

Little's law cannot be applied to service operations (a)

Functional benchmarking

____ looking at one function to improve it (e.g. purchasing)

Labor cost per unit is also referred to as:

Labor content

One method used to determine a product's total environmental impact from conversion of inputs through production and to disposal is

Life Cycle Assessment

Technological forecasts

Long term forecasts concerned with the rates of technological progress.

In a ____________, people use communication primarily to exchange facts and information.

Low context culture

an in-the-field leadership style

Managers who stop by and visit their service locations demonstrate ________.

Which of the following statements best describes the relationship between quality management and product strategy?

Managing quality helps build successful product strategies

Problems with Benchmarking

Other firms may not cooperate, little reciprocity Difficult to functionally benchmark firms in noncompetitive industries Efforts are useless if you don't understand own processes - need to be chasing exact measures Time consuming and costly!!!

Developing a global mindset requires managers to possess all these traits except:

Partial in their point of view

Any customer initiated contact: complaint card, toll free call, web inquiry

Passively Solicited Customer Feedback

Cycles

Patterns in the data that occur every several years. Usually tied into the business cycle and are of major importance in short term business analysis and planning.

components of emotional intelligence

Personal Competence: self-awareness, self-management Social Competence: social awareness, relationship management

Performance benchmarking

____ product or service comparison: cost structure, time to market, quality measures used

When a US company risks the loss of its asset in a foreign country due to actions by the host government in that country, this is called:

Political risk

Arnold Palmer Hospital uses which focus?

Process

Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and vc of 2.25 per unit. Which of the following statements is true?

Process Y is cheaper than process X at all volumes. There is no crossover point

Quality robust

Products that are consistently built to meet customer needs in spite of adverse conditions in the production process.

Demand forecasts

Projections of demand for a company's products or services for each time period in the planning horizon.

Market survey

Solicits input from customers or potential customers regarding future purchasing plans.

SMART goals

Specific Measurable Attainable Results Oriented Time bound

stage 3 of perception

Storage and Retention: encoded information and stimuli is sent to long-term memory (events, semantic material, and people)

Studies show that slow improvement is more successful in the long run, over "management by dictate" "quick fix" goals yield. People will achieve goals and positive results People will distort the data People will distort the system

Strategic Quality Planning

Variables that outline key considerations when developing a strategic plan: TIME, LEADERSHIP, QUALITY, ORDER WINNERS

Strategic Quality Planning Content

supplier development

Supplier evaluation is not to be confused with ________, which implies resource expenditures to improve to supplier performance over a long period of time.

Single sourcing means few suppliers with long contract terms. Strategic alliances means suppliers become de facto subsidiaries.

Supply Chain Alliance

task, treatment, tangibles

The "three Ts" of fail - safe methods are ________.

Focus is to document quality systems in manuals to facilitate trade through supplier conformance

The Euro Standard

- Seiri (Sort) - get rid of the unnecessary old files - Seiton (Straighten) - be neat - straighten up offices and work areas - Seiso (Shine) - clean plant / equipment to eliminate dirt - Seiketsu (Standardize) standardize locations for tools, files, equipment. Color, code and label - Shetsuke (Sustain) - discipline in maintaining four prior S's

The Five S's

- Created Deming Prize (1951) for those who have contributed to quality control - More focused on process than Baldrige - Influenced by a culture of waste reduction due to limited natural resources and high importing costs

The Japanese Way

external

____ services are those whose customers pay the bills

Which of the following statements regarding Starbucks Coffee is false?

The firm's cafes are exclusively in traditional settings: malls, tourist areas and airports

pareto charts

________ are used to identify and prioritize problems to be solved

Jury of executive opinion

The opinions of a group of high level experts or managers, often in combination with statistical models are pooled to arrive at a group estimate of demand.

Check sheets

________ are data-gathering tools that can be used in forming histograms.

Medium range forecasts

Time span of 3 months to 3 years. Used for sales planning, production planning and budgeting, cash budgeting, and analysis of various operating plans.

Long range forecasts

Time span of 3 years or more. Used for planning for new products, capital expenditures, facility location or expansion, and research and development.

Short range forecasts

Time span of up to 1 year but is generally less than 3 months. Used for planning purchasing, job scheduling, workforce levels, job assignments, and production levels.

Financial Ratios

Which of the following Key Business Factors are available publicly from annual reports?

Productivity Ratios

Which of the following Key Business Factors indicates how effectively scarce resources are being utilized? - financial ratios - productivity ratios - customer related results - operating results - quality measures - market share - structural measures

Human Resource Measures

Which of the following Key Business Factors indicates the investment in human capital which leads to higher efficiency?

Market Share

Which of the following Key Business Factors is an essential indicator of business success - must be completed across all segments of competition?

non-value-chain activities having costs but no effect on the customer

Which of the following best describes the hidden factory? a. system that links together supplier and customer information systems b. non-value-chain activities having costs but no effect on the customer c. firms involved in outsourcing business activities d. disaggregation of a firm into its core activities e. value-chain activities that add value for the customer

durability

Which of the following is not a quality dimension relating to services? a. empathy b. assurance c. durability d. tangibles e. responsiveness

socialization process

anticipatory socialization encounter change and acquisition

which of the following techniques uses variables such as price and promotional expenditures, which are related to product demand, to predict demand?

associative models

difference between attitudes and values

attitudes are learned predispositions to respond to a given object and apply in specific situations; values apply across all situations

the appearance of a restaurant meal that is not satisfactory is an example of

attribute measurement

which of the following is NOT one of the four principles of process redesign?

automate the remaining steps in the process

ASRS stands for

automated storage and retrieval system

__________ is a combination of reliability and maintainability

availability

The three major types of forecasts used by business organizations are a. strategic, tactical, and operational b. economic, technological, and demand c. exponential smoothing, Delphi, and regression d. causal, time-series, and seasonal e. departmental, organizational, and territorial

b

Which of the following statements comparing the weighted moving average technique and exponential smoothing is true? a. Exponential smoothing is more easily used in combination with the Delphi method. b. More emphasis can be placed on recent values using the weighted moving average. c. Exponential smoothing is considerably more difficult to implement on a computer. d. Exponential smoothing typically requires less record keeping of past data. e. Exponential smoothing allows one to develop forecasts for multiple periods, whereas weighted moving averages does not.

d

Which of the following technologies would enable a cashier to scan the entire contents of a shopping cart in seconds? a. ASRS b. AGV c. CAD/CAM d. RFID e. FMS

d

Which of these layouts is most suitable for processing sugar from sugar beets or sugar cane? a. process-oriented layout b. fixed-position layout c. focused factory d. product-oriented layout e. work cell layout

d

Which one of the following technologies is used only for material handling, not actual production or assembly? a. robots b. CNC c. CAD d. AGVs e. FMS

d

Which time series model uses past forecasts and past demand data to generate a new forecast? a. naive b. moving average c. weighted moving average d. exponential smoothing e. regression analysis

d

social loafing

decrease in individual effort as the group size increases reduce social loafing: make individual contributions identifiable, keep group as small as possible, make members feel valuable

technology feasibility statement

define materials needs and specs for best performance

the quality circle begins with

defining customer needs

Which of the following is an example of a postponement tactic? process mapping mass customization standardization delayed differentiation service blueprinting

delayed differentiation ( Delayed differentiation is a postponement tactic: the process of producing, but not quite completing, a product or service, postponing completion until customer preferences or specifications are known. )

The main issue in designing process layouts concerns the relative positioning of

departments

product marketing and supply chain prep

design how it will happen and after-sales processes

The objective of layout strategy is to

develop an efficient and effective system that meets competitive requirements

Which of the following statements regarding "proximity" in the location decision is false? a. Service organizations find that proximity to market is the most critical primary location factor. b. Manufacturers want to be near customers when their product is bulky, heavy, or fragile. c. Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer. d. Reduction in bulk is a good reason for a manufacturer to locate near the supplier. e. Clustering among fast food chains occurs because they need to be near their labor supply.

e

Which of the following worker characteristics would likely be least important for U.S. firms looking to open up call centers in different countries? a. willing to accept low wages b. have a high level of education c. speak English d. possess an in-depth knowledge of American popular culture e. are young

e

Which of these factors would be considered when making a location decision at the region/community level? a. government rules, attitudes, stability, incentives b. cultural and economic issues c. zoning restrictions d. environmental impact issues e. proximity to raw materials and customers

e

Design for maintainability

easily replaced components - provide customers with ability to self-maintain.

Orgs use which 3 major types of forecasts, including two that may fall outside the role of the operations managers

economic, technological and demand

cultural influences on organizational behavior

economic/technological setting political/legal setting ethnic background religion

dealing with ethnocentrism

education greater cross-cultural awareness international experience a conscious effort to value cultural diversity

Ambient conditions, spatial layout and functionality, and signs, symbols and artifacts are all

elements of servicescopes

Building high more orgs and building communication networks that include employees are both elements of

employee empowerment

Pfeffer's Seven People-Centered Practices

employees/organizations look for/want..... 1. job security 2. selective hiring 3. employee empowerment 4. generous pay for performance (bonuses) 5. lots of training ( want to learn new things constantly) 6. less emphasis on status (too many VP positions) 7. trust building

Multi-user CAD

enables access from multiple locations who share one database = group technology