Operations Management Exam 2 Homework Questions

A tortilla chip workstation produces 1,000 chips in 20 seconds. Its process time is A. .02 seconds per chip B. 6000 chips per minute C. 50 chips per second D. 20 seconds E. none of the above

A. .02 seconds per chip

Effect capacity is the A. capacity a firm expects to achieve given the current operating constraints B. minimum usable capacity of a particular facility C. average output that can be achieved under ideal conditions D. sum of all the organization's inputs E. maximum output of a system in a given period

A. capacity a firm expects to achieve given the current operating constraits

A successful TQM program incorporates all of the following except A. centralized decision-making authority B. employee involvement C. benchmarking D. continuous improvement E. None of the above; a successful TQM program incorporates all of the above.

A. centralized decision-making authority

What is sometimes referred to as rated capacity? A. expected output B. utilization C. effective capacity E. design capacity

A. expected output

All of the following costs are likely to decrease as a result of better quality except A. maintenance costs B. inspection costs C. warranty and service costs D. customer dissatisfaction costs E. scrap costs

A. maintenance costs

The mean and standard deviation for a process for which we have a substantial history are U= 120 and O=2. For the x-bar chart, a sample size of 16 will be used. What is the mean of the sampling distribution? A. 2 B. 120 C. 1/8 (0.125) D. 7.5 E. 40

B. 120

Fabricators, Inc. wants to increase capacity by adding anew 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 units B. 15,000 units C. $15,000 dollars D. $90,000 dollars E. cannot be calculated from the information provided

B. 15,000 units

A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the process time of the system? A. 18 B. 9 C. 4 D. 35 E. none of the above

B. 9

The upper and lower limits for diving ring diameters made by John's Swimming are 40 and 39 cm. John took 11 samples with the following average diameters (39, 39.1, 39.2, 39.3, 39.4, 39.5, 39.6, 39.7, 39.8, 39.9, 40). Is the process in control? A. No, some diameters exceeded the control limits. B. No, there is a distinguishable pattern to the sample. C. Yes, no diameters exceeded the control limits. D. No, the range is not in control. E. There is not enough information to make a decision

B. No, there is a distinguishable pattern to the samples.

Statistical process control charts A. indicate to the operator the true quality of material leaving the process B. display upper and lower limits for process variables or attributes, and signal when a process is no longer in control C. display the measurements on every item being produced D. indicate to the process operator the average outgoing quality of each lot E. none of the above

B. display upper and lower limits for process variables or attributes, and signal when a process is no longer in control

According to the manufacturing-based definition of quality, A. quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost B. quality is the degree to which a specific product conforms to standards C. quality depends on how well the product fits patterns of consumer preferences D. quality lies in the eyes of the beholder E. even though quality cannot be defined, you know what it is

B. quality is the degree to which a specific product conforms to standards

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

B. the existing product has seasonal or cyclical demand

Red Top Cab Company receives multiple complaints per day about driver behavior. Over 9 days the owner recorded the number of calls to be 3, 0, 8, 9, 6, 7, 4, 9, 8. What is the upper control limit for the c-chart? A. 8.45 B. 0.00 C. 13.35 D. 9.03 E.24.00

C. 13.35

Which of the following represents a common way to manage capacity in the service sector? A. first-come, first served service rule B. appointments C. changes in staffing levels D. "early bird" specials in restaurants E. reservations

C. changes in staffing levels

One of Britain's largest children's hospitals working with Ferrari Racing is an example of A. internal benchmarking B. Taguchi concepts C. external benchmarking D. corporate responsibility E. employee empowerment

C. external benchmarking

The causes of variation in statistical process control are A. Type I and Type II B. producer's causes and consumer's causes C. natural causes and assignable causes D. mean and range E. cycles, trends, seasonality, and random variations

C. natural causes and assignable causes

Utilization will always be lower than efficiency because A. Effective capacity equals design capacity B. Effective capacity is greater than design capacity C. False, Utilization is normally greater than efficiency D. Effective capacity is less than design capacity E. False, Utilization and efficiency are equal in value

D. Effective capacity is less than design capacity

To become ISO 9000 certified, organizations must A. have an ongoing series of audits of their products or service B. have an onsite assessment C. document quality procedures D. all of the above E. none of the above

D. all of the above

The number of defects after a hotel room cleaning (sheets not straight, smears on mirror, missed debris on carpet, etc) should be measured using a(n) A. R-chart B. p-chart C. x-bar chart D. c-chart E. either x-bar or R chart

D. c-chart

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, $22 per unit. If the estimated output is 9,000 units, should they purchase one of the machines? If so, which one? 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. no purchase because neither machine yields a profit at that volume

The number of late insurance claim payouts per 100 should be measure with a A. c-chart B. x-bar chart C. R-chart D. p-chart E. either a p or c chart

D. p-chart

Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. Station 3 has two identical machines, each of which can process a unit in 12 minutes (each unit only needs to be processed on one of the two machines). Station 4 can produce a unit in 5 minutes. Station 5 can produce a unit in 8 minutes. Which station is the bottleneck station? A. station 3 B. station 1 C. station 5 D. station 2 E. station 4

D. station 2

Stakeholders who are affected by the production and marketing of poor quality products include A. suppliers and creditors, but not distributors B. only stockholders, creditors, and owners C. suppliers and distributors, but not customers D. stockholders, employees, and customers E. only stockholders and organizational executives and managers

D. stockholders, employees, and customers

Which of the following is true about ISO 14000 certification A. It is not a prerequisite for ISO 9000 certification B. It offers a good systematic approach to pollution prevention C. One of its core elements is life-cycle assessment D. It deals with environmental management E. All of the above are true.

E. All of the above are true.

The role of quality in limiting a firm's product liability is illustrated by A. using processes that make products as safe or durable as their design specifications call for B. designing safe products to limit possible harm to consumers C. ensuring that products meet standards such as those of the Consumer Product Safety Act D. ensuring that contaminated products such as impure foods do not reach customers E. All of the above are valid

E. All of the above are valid.

An x-bar control chart was examined and no data points fell outside of the limits. Can this process be considered in control? A. No, there could be a pattern to the points B. No, the R-chart must be checked C. Yes D. No, the number of samples must be known E. Both A and B

E. Both A and B

Which of the following is not one of the major categories of costs associated with quality? A. internal failures B. appraisal costs C. external failures D. prevention costs E. None of the above; they are all major categories of costs associated with quality

E. None of the above; they are all major categories of costs associated with quality.

Arnold Palmer Hospital uses which of the following quality management techniques? A. benchmarking B. Just-in-Time C. flowcharts D. Pareto charts E. The hospital uses all of the above techniques

E. The hospital uses all of the above tehniques

The Central Limit Theorem A. is the theoretical foundation of the c-chart B. states that the average of assignable variations is zero C. states that the average range can be used as a proxy for the standard deviation D. controls the steepness of an operating characteristic curve E. allows managers to use the normal distribution as the basis for building some control charts

E. allows manager to use the normal distribution as the basis for building some control charts

The purpose of an x-bar chart is to determine whether there has been a A. change in the percent defective in a sample B. change in the AOQ C. change in the dispersion of the process output D. change in the number of defects in a sample E. change in the central tendency of the process output

E. change in the central tendency of the process output