Compentency Exam - Op Management

Using a three period moving average what is the forecast for week 7?

27

At the end of period 5 what is the mean absolute deviation (MAD) equal to?

4.40

Using exponential smoothing for the forecasting technique what is the forecast for week 15 if the forecast for week 14 was 45 units, the actual demand for week 14 was 50 unites and smoothing constant (a) = 0.2?

46

Which of the following statements about ABC analysis is FALSE?

ABC Analysis is based on the presumption that all items must be tightly controlled to produce important cost savings

In project crashing an attempt is made to shorten the duration of a project by shortening which of the following activities?

Activities with zero slack

___________ is medium-term capacity planning with a time horizon of two to eighteen months

Aggregate production planning

Henry Ford's assembly line is an example of

All of the above

Supply chain management includes

All of the above

The costs of quality include

All of the above

Which of the following would be characteristics of supply chain management

All of the above

Which of the following is not a demand component in a time series?

Alpha

"Standardized option modules are manufactured according to forecast, a specific combination of package of modules is assembled after an order is received" is

Assemble-to-order

The reorder point is defined as

Average demand during the lead time plus safety stock

Which of the following is NOT an accounting category of inventories

B items

Which of the following is NOT an example of an external factor influencing demand?

Backlogs

Just in time is a philosophy that applies to

Both goods production and service production

Which of the following is NOT a medium term method of adjusting capacity?

Building a new plant

The concept of overlapping activities in product and process development is called

Concurrent engineering

Compared to good production, service production usually involves more

Consumer participation in production

In this type process the flow never stops

Continuous

A key feature in TQM is

Continuous improvement

Two basic types of generic planning strategies are

Cost leader and differentiation

Concurrent engineering makes special use of

Cross-functional teams

A forecasting method that protects the anonymity of respondents is

Delphi method

With dependent demand inventory control, demand in a given week is

Dependent on the production schedule established by operations

Concurrent engineering is an approach used to _____

Develop new products and services

In the periodic review system, the quantity ordered is the

Difference between the available inventory and the target inventory level

Which of the following is not a general dimension of service quality

Durability

A good technique to forecast short-term requirements for individual products would be

Exponential smoothing

Materials requirements planning does not require data on

Forecast errors

The quality function deployment process involves

Four phases, including house of quality

Which of the following statements is/are true?

I,II, and III are all true

Benchmarking in quality management means

Identification of superior performance in other organizations

Which of the following is NOT an obstacle to JIT implementation

Implementation of materials requirements planning in the organiztion

Which of the following is NOT a current trend in manufacturing operations?

Increased emphasis on inspection by using a special inspection department

Crashing a project means

Incurring the costs necessary to complete a project sooner

The value chain is made up primarily of

Individual value activities as the building blocks of competitive advantage

Which of the following is NOT associated with manipulation of product or service demand?

Inventories

The economic order quantity will be greater if the

Inventory carrying charges are reduced

The moving average is an appropriate forecasting technique for

Inventory management of individual products over a three month period

A JIT approach

Involves a smooth production flow

Which of the following is NOT an EXTERNAL input to the production planing environment?

Labor and machine standards

Which of the following is not required for JIT production

Large production lot sizes

With modern logistics systems we do not usually seek

Large safety stocks

The Delphi method is an appropriate forecasting technique for

Long range capacity planning for a factory

The critical path is the

Longest time path through a project network

JIT systems may be associated with

Lot sizes of one unit

In the chase strategy, we focus primarily on

Making planned production equal to planned sales

PERT/CPM is used to __________

Manage projects

____________ is the MRP input detailing which end items are to be produced, when they are needed, and in what quantities

Master production schedule

Which of the following is a production system that was specifically designed to handle dependent demand inventory items

Materials requirements planning

Which of the following is the closest to the objectives of aggregate planning?

Minimizing the total of the cost of changes in the production level plus the cost of carrying inventory

Compared to the chase strategy, the level strategy typically involves

More inventory carrying charges

In exponential smoothing, if we have an alpha of 1.0, the new forecast will equal the

Most recent sales

In JIT production, we follow a rule that says:

No pull signal, no production

Compared to a job shop, a line process typically involves

None of the above

The reorder point method refers to:

None of the above

Operations Management is really nothing but

None of the above statements is strictly correct

Freight consolidation, the practice of combining several smaller shipments into one larger shipments into one larger shipment, is effective

On both inbound as well as outbound shipments

Those strategic objectives for which operations holds or shares responsibility for are termed

Operations competitive priorities

Which of the following is not a component of inventory carrying costs?

Ordering costs

Concurrent engineering necessarily involves

Overlapping activities in product and process development

Customers interface with the operating processes in the _______ logistics component

Physical distribution

Which of the following is NOT an input to Materials Requirement Planning

Planned order releases

Which of the following is NOT a logistics system component

Product design

In the agregate, with the level strategy typically involves:

Production is level

A contractor who specializes in custom built homes utilizes the _____ type of manufacturing

Project

Project management techniques are not helpful in

Project management techniques are helpful in all of the above

The operations competitive priorities do no include

Promotion

Which of the following statements regarding materials and inventory management in JIT is FALSE

Purchasing agreements are relatively short-term when JIT methods are adopted

Production rates or work force levels are adjusted to match demand requirements over the planning horizon when a _______ strategy is used

Pure chase

When we focus on building quality into a product, that is called

Quality assurance

A technique for translating customer needs and requirements into the language of design and manufacturing engineers is called

Quality function deployment

In the ABC approach to inventory control, we seek to

Reduce overall inventory and the overall control effort while improving service

A key requirement in implementing JIT systems is to

Reduce setup times

Which of the flowing is NOT a motivation for adopting JIT systems?

Reduction in productivity

Which of the following is NOT a judgmental method of forecasting

Regression models

Compared to the periodic review system, the reorder point system

Require less safety stock

Which of the following operations is NOT typical of warehousing

Sell goods

The random component of demand is

Short erratic movements that follow no discernible pattern

The time that an activity can be delayed without delaying completion of a project is called the

Slack time

A service is a perishable commodity that generally cannot be

Stored

Which of the following would NOT ordinarilly have independent demand

Subassemblies

The connected series of value activities that is concerned whit planning, coordinating and controlling materials, pars and finished goods from suppliers to the final customer:

Supply chain

Variability (ups and downs) in production volumes is not caused by

TQM

Slack is defined as

The amount of time an activity is delayed without delaying a project

__________ is (are) the source of product structure information in an MRP system

The bill of materials file

In the aggregate, level inventories are characteristic of

The chase strategy

A good technique to forecast the long term dollar volume of a company would be

The delphi method

To bring together the voice of the customer and the voice of the engineer, we might employ

The house of quality

The strategic quality management phase of the quality movement is most closely reflected by

The idea that quality is a competitive opportunity

Which of the following is not an assumption underlying economic order quantities

The lead time is variable

In single exponential smoothing, if you let the smoothing constant be zero,

The new forecast will equal the old forecast

A principal objective of an economic order quantity is to reduce, on an annual basis,

The sum of total ordering and carrying costs

Time series forecasts are based on assumption that

The time-related patterns of the past will be repeated in the future

The trend component of demand is

The upward or downward movement over time

A simple moving aerage is an example of

Time-series forecast

While continuous improvement is an important general principle, it is most specifically a part of

Total quality management

A method for comprehensively analyzing the costs of each manufacturing step with the goal of cost improvement is known as:

Value analysis

Compared to an intermittent process, a line process typically has more

Volume

In the reorder point system, stock is oredered

When the reorder point is triggered

The term mean absolute deviation (MAD) refers to

a measure of forecast accuracy

X-bar, R, and p chart are used to ________

control the quality of goods and services produced

Simple exponential smoothing is technique used to __________

forecast the demand for a product

Which of the following does NOT favor the importance of effective inventory

inventories CANNOT be used as a major competitive weapon

Which of the following would NOT be considered a motive for a firm to hold invnetories

minimize holding costs