Final Exam

When a control chart is first developed, if the process is found to be out of control...

The process should be replaced by a new process

Order winners and order qualifiers change over time in responses to the dynamics of changing market conditions (t or f)

True

Supplier reliability is often an important consideration in outsourcing decisions (t or f)

True

Total quality management represents a set of management principles that focus on quality improvement in all the functional areas within a company (t or f)

True

Product design begins with...

Understanding the customer and identifying customer needs

In a waiting line system, the ______ reflects the probability that the servicer is busy and the customer must wait

Utilization factor

Which of the following is not a feature of a warehouse management system? Warehouse optimization Order tracking Vendor management Transportation management

Vendor management

The extent to which the firm will produce the inputs and control the outputs of each stage of the production process is known as

Vertical integration

Failure mode and effects analysis (FMEA) is

A systematic approach to analyzing the causes and effects of product failures

A company may purchase larger amounts of inventory for all of the following reasons EXCEPT: A. to reduce inventory carrying costs B. to take advantage of quantity discounts C. As a hedge against future price increases D. to obtain lower prices purchasing in volume

A. to reduce inventory carrying costs

Edward Deming believed that primary responsibility for quality improvement rested with

Both the employees and management of the firm

All of the following can improve a product's reliability EXCEPT A. simplifying product design B. improving individual component reliability C. Changing the product warranty D. Adding redundant components

C. Changing the product warranty

Information sharing among supply chain members will typically result in all of the following EXCEPT

C. an increased bullwhip effect

Adjusting available capacity by hiring and firing workers to match demand is an example of an _______ strategy

Chase demand

A variable measure is a product characteristic such as

Color

The degree to which a product meets pre-established standards is known as

Conformance

_____ represents what the firm does better than anyone else

Core competency

__________ software plans and executes business processes involving customer interaction

Customer relationship management

Which of the following is not an obstacle to global supply chain management?

Decreased delivery times

Which of the following is NOT a characteristic of a service? Intangible Variable output Difficult to emulate Perishable

Difficult to emulate

When higher levels of output cost more per unit to produce, the facility realizes

Diseconomies of scale

Service and design improvement techniques cannot be applied to societal problems such as education, healthcare and government services (t or f)

False

All of the following are dimensions of quality for manufactured products EXCEPT

Feasability

Which one of the following is NOT an example of a hybrid facility layout? Fixed-position Mixed-model layout Cellular Flexible manufacturing

Fixed-position

Companies that compete on ____ are able to produce a wide variety of products in response to customer needs

Flexibility

Comapanies resist establishing green supply chains for all of the following reasons except that

Green initiative lower costs because fewer resources are consumed

Which of the following is NOT an objective of effective layouts? A. reduce material handling costs B. increase the number of bottlenecks C. Eliminate waste and redundant activities D. improve communication and interaction among workstations

Increase the number of bottlenecks

_____ failure costs include scrap, rework, and down time

Internal

Which of the following is not an event or concept associated with the quality revolution? TQM Internet Six Sigma JIT

Internet

With_________, some of the manufacturing activities are moved into the warehouse or distribution center

Postponent

All of the following are enablers of efficient supply chain management EXCEPT Bar codes Price tags RFID tags the Internet

Price tags

Similar activities are grouped together in departments or work centers according to the function with a ______ layout

Process

The ease of adjusting resources in response to changes in demand defines a firm's

Process flexibility

The term aggregate planning reflects the fact thats plans are developed for ______ rather than _______

Product families, individual products

Creating a preliminary design that can be quickly tested and then either discarded or further refined is referred to as

Rapid prototyping

Supply chain integration does not involve _______ among supply chain members

Reducing competition

With _________, customers post contracts for items it want to purchase so that suppliers can bid on

Reverse auctions

Which of the following refers to an approach to risk management that aggregates risk?

Risk pooling

_________ is additional inventory kept on hand to meet variations in product demand

Safety stock

Distribution includes all of the following activities EXCEPT: Packaging Storing Shipping Sourcing

Sourcing

In a lean production, waste is defined as: overproduction high levels of inventory unnecessary movement all are correct

all are correct

Shifting demand into other time periods can be accomplished through advertising dales promotion incentives all of the above

all of the above

Yield management can be used to address all of the following problems EXCEPT: overbooking portioning demand into fare classes single order quantities backorders

backorders

The primary cost associated with the level production strategy is the cost of

holding inventory

In a pull production system, a card that corresponds to a standard quantity of production is known as

kanban

Which of the following is NOT an assumption of the basic EOQ model? A. demand is known and constant B. no shortages allowed C. lead time is determined by quantity ordered D. order quantity is received all at once

lead time is determined by quantity ordered

Which is NOT a component of lead timeL processing time maintenance time waiting time setup time

maintenance time

Lower inventory levels make processes...

more dependent on each other while revealing bottlenecks more quickly

Lean and six sigma are

natural partners for process improvement

Whats the sequence of the 3 specifications in service design process

performance spec-->design spec-->delivery spec

___________ is a lot sizing technique that orders for multiple demand periods is referred to as

periodic order quantity (POQ)

Which of the following is NOT a strategy for adjusting capacity level of production subcontracting backordering product substitution

product substitution

All of the following can be used for underloaded conditions EXCEPT: Acquiring additional work Pushing work back Pulling work ahead Reducing normal capacity

pushing work back

When opportunities for continuous improvement of a process have been exhausted, it may be time to

redesign or innovate

Which of the following is NOT a strategy for managing demand? A. shifting demand into other time periods B. create demand for idle resources C. redirecting demand to a competitor D. partnering with suppliers to minimize information distortion

redirecting demand to a competitor

Which of the following is NOT a basic element of lean production? flexible resources pull system repetitive production small lot production

repetitive production

Which statement concerning small-lot production is NOT true A. requires less space B. requires more capital investment C. Simplifies transportation between workstations D. Allows processes to be moved closer together

requires more capital investment

All of the following are inputs to the aggregate production planning process EXCEPT: demand forecasts financial constraints sales plans capacity constraints

sales plans

The ability to meet presented needs without compromising those of future generations is a concept in product design known as________

sustainability

Four common types of control charts include all of the following except: x(bar)-chart t-chart p-chart c-chart

t-chart

All of the following are inputs into the MRP process EXCEPT: the master production schedule the product structure file the item master file the planned order report

the planned order report

The product structure file provides all of the following information EXCEPT A. the products demand B. the items that go into the product C. A brief description of each item D. When and in what quantity each item is needed in the assembly process

the products demand

Capacity is defined as the

Maximum capability to produce

The basic tools of process analysis included Process flowcharts Process diagrams Process Maps All of the above

All of the above

Which of the following could be responsible for variability that is special cause (nonrandom)? Broken machinery Defective parts and materials Operator error All of these are correct

All of these are correct

The difference between planned production and customer orders is known as

Available-to-promise

Which of the following is NOT a characteristic of an effective product design process? A. matches product characteristics with customer requirements B. maximizes the revisions necessary to make a design workable C. ensures that customer requirements are not met in the least costly and simplest manner D. reduces the time required to design a new product or service

B. maximizes the revisions necessary to make a design workable

Which of the following is NOT considered a form of inventory? Items being transported Tools and equipment Purchased parts and supplies Backorders

Backorders

Variable demand and small-to-moderate quantities produced to-order are characteristics usually associated with

Batch of production

Two techniques used to design process layouts are

Block diagramming and relationship diagramming

________is a concept where companies are held responsible for their product even after its useful life

Extended producer responsibility

Ratio of a firms monthly output to the number of labor hours used in the same moth would be a measure of

Labor productivity

The traditional approach to inventory management is to maintain a level of inventory that

Maintains a balance between inventory cost and customer service