Manufacturing System Planning

Given following demand data and smoothing constant 0.1, what would be the forecast for period 6, when forecast for period 5 was 610. Periods 1 2 3 4 5 demand 500 400 475 520 600

609

Errors for a forecast :0,-3,-2,4, and -1 MSE for these studied periods equal to :

7.5

Accuracy in forecasting can be measured by:

A and C

Which of the following is not true about systems approach?

A systems approach concentrates on efficiency within subsystems.

One of the key differences between goods and services lies in

Uniformity of output

Businesses are made up of many processes which may be categorized into:

Upper management , operational, and support process

Operations strategy should not :

Be formulated independently. It should be consistent with other functions of the business

Improving operational efficiency will guarantee a similar improvement in productivity

False

Labor content in a service job is low

False

Operations Management activities will be less important in the future because many firms are becoming service-oriented operations rather than goods producing operations.

False

Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services

False

Productivity is defined as the ratio of input to output.

False

When a business can not supply to meet market demand they generate waste from inventory

False

Demand for periods 1,2, and 3 are 20, 26, 28 . Forecast for periods 2 is given 30 based on exponential forecasting . Exponential smoothing constant is 0.1. What should be the forecast for period 4.

First we need to find out forecast for period 3 F3= F2+0.1(D2-F2) = 30+0.1*(26-30)=30+0.1*(-4)=29.6 F4 =F3+0.1(D3-F3) =29.6+(28-29.6)*0.1=29.6+0.1*(-1.6) =29.44

Operations function is responsible for producing, select the most appropriate answer

Goods and services

The advantages of standardization include : (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 :

II, III, IV

Global issue in strategy formulation includes following :

Items included in A),B) and C)

MAD for a three period forecast was computed to be 4, errors for first two periods are 3 and 2. What was the error for the third period?

MAD =Sum of Absolute errors/n, here n=3, MAD =4, so sum of absolute errors = 3*4 =12, the third error = 12- (3+2) =7. It may be -7 also.

Given actual demand for three consecutive periods :15,10, and 11, and forecasts for the periods were 9, 14, and 9. What will be the MAD for the forecast used?

MAD=(|15-9|+|10-14|+|11-9|)/3=(6+4+2)/3=4

Putting forecast errors into perspective is best done using

MAPE

Given actual demand for three consecutive periods :10,14, and 8, and forecasts for the periods were 9, 14, and 9. What will be the MSE for the forecast

MSE =((10-9)2+(14-14)2+(8-9)2)/(3-1)=(1+0+1)/2=1

Quality based strategy focus on:

Overcoming image of poor quality

Competitiveness doesn't include:

Profitability

Examples of services are

Surgery

Given the historical data for periods 1,2,3, and 4 to be 129, 150, 140, and 160 ; and weights of .5, .3, and .2, what is the three-period weighted moving average forecast for period 5?

The forecast would be : 0.5*160+0.3*140+0.2*150=152

Traditional strategies of business organizations have tended to emphasize cost minimization or product differentiation:

True

Budgeting, analysis of investment proposals, and provision of funds are activities associated with the______ function.

finance

The term 'standardization' is closely associated with:

interchangeability

Products or Services with a high degree of similarity of features and components are called:

product families

The two general approaches to forecasting are:

qualitative and quantitative

The structural approach for integrating customer requirements into every aspect of product development is known as:

quality function deployment

Dealing with the fact that certain aspects of any management situation are more important than others is called:

recognition of priorities

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

to increase the level of employee satisfaction

Which one of the following is not a factor of successful product and service design?

use computerized design techniques

Average number of customers processed by a bank is 40 per day , the bank pays at the rate $25/hour to its 5 employees . The bank has Overhead cost equal to Labor cost , Each customer involves $5 as materials cost . The company works 8 hour per day. What is the multifactor productivity in terms of customer processed per $ spent

0.0182

A manager is using the equation below to forecast quarterly demand for a product: Yt = 1500 + 50t where t = 0 at Q4 (fourth Quarter) of this year What forecasts are appropriate for the 3rd quarter of next year?

1650

A manager is using the equation below to forecast quarterly demand for a product: Previous years showed seasonal relatives 0.9; 1.1; 1.3; and 1.5 for the demand in first , second and third quarters of a year. Yt = 1500 + 50t where t = 0 at Q3 ( third quarter ) of this year What forecasts are appropriate for the 2nd quarter of next year

1815

Errors for a three period forecast were found to be -3, 5, and -4. Actual demand for the periods were 12, 20, and 16. What should be the MAPE

25

Given forecast errors of 5, 0, -4, and 3 for four periods what is the mean absolute deviation?

3

Given the following historical demand data what will be forecast for period 6 based on simple 3 period moving average: Periods 1 2 3 4 5 demand 500 400 475 520 600

531.66

A manager is using the equation below to forecast quarterly demand for a product: Yt = 500 + 25t where t = 0 at Q1(first Quarter) of this year What forecasts are appropriate for the 3rd and last quarter of this year?

550,575

Given the following data what will be the Naive forecast for period 6. Periods 1 2 3 4 5 demand 500 400 475 520 600

600

Budgeting is included within the scope of operations management

False

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

All of the above

Which of the following is essential to consider with respect to managing a process to meet demand?

All of the above

A process:

All of the above is applicable to a process

Time based strategy should focus on:

All the above are included in the time based strategy

Which of the following statement is applicable to operational strategy :

All the above three items A),B) and C) are true

Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don't include as many influencing factors.

False

A disadvantage of global teams for product design is that:

Ease of face to face meetings is absent since members are located everywhere

A characteristic that was once an order winner may become an order qualifier, and vice versa.

True

A systems approach emphasizes interrelationships among subsystems, but its main theme is that the whole is greater than the sum of its individual parts

True

Balanced Score card approach does not consider Supplier Management and Government regulations.

True

Delayed differentiation and modular design are tactics for mass customization.

True

Forecasting techniques generally assume an existing causal system that will continue to exist in the future.

True

Organizations should also target sustainable strategy in their formulation of goals for products and services

True

Re-manufacturing refers to removing some of the components of old products and reusing them in the products to be manufactured or new products after refubishing.

True

Scope of the mission is expressed in the Goal

True

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

True

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

True

A 'product package' consists of:

a combination of goods and services

Average number of customers processed by a bank is 30 per day, the bank pays at the rate $25/hour to its 5 employees . Each customer involves $5 as materials cost . The company works 8 hour per day. a) What is the labor productivity, b) what is the multifactor productivity

a) 6, b)0.026

Distinctive competencies of organizations generally relate to:

all of the above

Ideas for new or improved designs can come from:

all of the above

Operations is responsible for value added function. Value added may be measured

by subtracting cost of inputs from price of the product

The term 'degrees of newness' is associated with:

degree of design change

Which of the following is not a characteristic of a well-designed service system?

distributed computer networks

The mean absolute deviation (MAD) is used to:

measure forecast accuracy

The fundamental purpose for the existence of any organization is described by its:

mission statement

Business organizations consist of three major functions which:

overlap

The responsibilities of the operations manager are:

planning, organizing, staffing, directing, and controlling

The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas is called:

reverse engineering