OPMT Final Practice Questions

Operation X feeds into Operation Y. Operation X has an effective capacity of 35 units per hour. Operation Y has an effective capacity of 60 units per hour. Increasing X's effective capacity to 45 units per hour will increase the system capacity by _____ units. a. five units b. Ten units c. zero units d. 60 units e. 35 units

ten units

Assembly lines have a number of characteristics. Which of the following is typically NOT a characteristic of assembly lines? a. Flexible labor and equipment (for example, general purpose tools). b. Large capital investment, use of automation. c. High equipment utilization and efficiency rates. d. Highly standardized product designs. e. Assembly lines are the most likely choice for a Make-to-Stock supply chain strategy.

Flexible labor and equipment (for example, general purpose tools)

If a process is performing as it should, it is still possible to obtain observations which are outside of which limits? (I) tolerances (II) control limits (III) process variability I II I and II II and III I, II, and III

I and II

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

I and III

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 wealthierII) Quality issues that might make firms less productive and/or products riskierIII) 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

I, II and III

The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the:

Pareto phenomenon

Which of the following relationships must always be incorrect? Tolerances > process variability > control limits Process variability > tolerances > control limits Tolerances > control limits > process variability Process variability > control limits > tolerances Process variability <Tolerances<control limits

Tolerances > control limits > process variability

Which type of processing system tends to produce the most product variety? a. Assembly b. Job-Shop c. Batch d. Continuous e. Project

job-shop

Operations and sales are the two ________ functions in businesses.

line

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 50 final grades from last year for each instructor, with the following results: Instructor Number of Failures Prof. A 2 Prof. B 4 Prof. C 6 Prof. D 8 What is the sample proportion of failures (p) for Prof. A? 0 0.02 0.04 0.16 0.06

.04

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 50 final grades from last year for each instructor, with the following results: Instructor Number of Failures Prof. A 2 Prof. B 4 Prof. C 6 Prof. D 8 What is the estimate of the standard deviation of the sampling distribution for an instructor's sample proportion of failures? .0025 .0424 .0592 .0623 .0086

.0424

A process that produces computer chips has a mean of 0.02 defective chip and a standard deviation of 0.005 defective chip. Which allowable variation is this process capable of producing? In other words, exactly which upper and lower specification limits of a chip fit the process capability of this process? 0.02 to 0.005 0.005 to 0.035 0.025 to 0.035 0.02 to 0.052 0.0035 to 0.006

0.005 to 0.035

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 50 final grades from last year for each instructor, with the following results: Instructor Number of Failures Prof. A 2 Prof. B 4 Prof. C 6 Prof. D 8 What is the estimate of the mean proportion of failures for these instructors? 0.10 0.12 0.05 .04 .06

0.10

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 50 final grades from last year for each instructor, with the following results: Instructor Number of Failures Prof. A 2 Prof. B 4 Prof. C 6 Prof. D 8 What are the .95 (5% risk of Type I error) upper and lower control limits for the p-chart? 0.90 and 0.10 0.025 and 0.010 0.183 and 0.016 0.1 and 0.06 0.0177 and 0.0049

0.183 and 0.016

A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2.What is the projected on-hand inventory at the end of period 2? 21 1 12 20 impossible to say without more information

1

A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 240 units per day. The tasks necessary to produce this product: Task Time (Sec) Immediate Predecessor(s) A 60 None B 60 A C 12 A D 25 C E 108 D F 60 B, E Without regard to demand, what is the minimum possible cycle time (in seconds) for this situation? a. 108 b. 12 c. 324 d. 60 e. 180

108

A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 240 units per day. The tasks necessary to produce this product: Task Time (Sec) Immediate Predecessor(s) A 60 None B 60 A C 12 A D 25 C E 108 D F 60 B, E If the company desires that output rate equal demand, what is the desired cycle time (in seconds)? a. 108 b. 324 c. 120 d. 60 e. 60

120

If 10 units of A are needed, and on-hand inventory consists of 5 As, 5 Bs, 5 Cs, 5 Ms, and 5 Es, how many Cs are needed? a. 10 b. 20 c. 15 d. 50 e. 60

15

If a line is balanced with 80 percent efficiency, the "balance delay" would be: a. 20 percent b. 80 percent c. 100 percent d. unknown, since balance delay isn't related to efficiency depends on the next operation

20 percent

A company needs to locate three departments (A, B, and C) in the three areas (1, 2, and 3) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load per Yard moved. An analyst has prepared the following distances and flow matrices: Distance(Yards)To123 LoadsABCFrom 1 -----100350 A -----30702 ----------125 B 90-----1503 --------------- C 80100----- What is the total flow (loads per week) between departments B and C? a. 250 b. 70 c. 100 d. 150 e. 220

250

A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 240 units per day. The tasks necessary to produce this product: Task Time (Sec) Immediate Predecessor(s) A 60 None B 60 A C 12 A D 25 C E 108 D F 60 B, E If the company desires that output rate equal demand, what is the minimum number of workstations needed? a. 2 b. 3 c. 4 d. 5 e. 6

3

A master production schedule quantity of 300 units will arrive in week 6. Weekly demand over weeks 3 through 10 is forecasted at 50 units. At present, orders have been booked in various quantities in weeks 1, 2, 3 and 4. What is the available to promise for week 6? 50 6 300 100 Cannot be determined without projected on-hand information

300

A firm has 72 units of product A on hand. Forecasts of demand are for 10 units per week. An Master Production Schedule (MPS) quantity of 150 units is planned to arrive in period 4. Customer orders are 17 for period 1, 12 for period 2, 8 for period 3, and 4 for period 4.What is the projected on hand inventory at the end of period 3? a. 27 b. 33 c. 42 d. 20 e. 32

33

A firm has 72 units of product A on hand. Forecasts of demand are for 10 units per week. A Master Production Schedule (MPS) quantity of 150 units is planned to arrive in period 4. Customer orders are 17 for period 1, 12 for period 2, 8 for period 3, and 4 for period 4.What quantity is available for commitment (available to promise) to new customers in weeks 1, 2, and 3? a. 32 b. 35 c. 37 d. 42 e. 47

35

A company needs to locate three departments (A, B, and C) in the three areas (1, 2, and 3) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load per Yard moved. An analyst has prepared the following distances and flow matrices: Distance(Yards)To123 LoadsTo ABCFrom From 1 -----100350 A -----30702 ----------125 B ----------1503 --------------- C --------------- What is the distance (in Yards) from area 3 to area 1 in this new facility? a. 100 b. 125 c. 350 d. 450 e. 475

350

If 40 Ps are needed, and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies, how many Cs are needed? a. 340 b. 350 c. 380 d. 400 e. 590

350

The number of runs up and down for the data above is: 3 4 5 6 none of these

5

Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each 8-hour shift. If the production is increased to 1,200 pretzels each shift, then productivity will have increased by:

50%

An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of $70 per unit. The break-even point volume is:

500

If 10 units of A are needed, and no on-hand inventory exists for any items, how many units of C will be needed? a. 10 b. 20 c. 40 d. 50 e. 60

60

Given the following information, what would efficiency be? Effective capacity = 50 units per day Design capacity = 100 units per day Actual output = 30 units per day

60%

A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 240 units per day. The tasks necessary to produce this product: Task Time (Sec) Immediate Predecessor(s) A 60 None B 60 A C 12 A D 25 C E 108 D F 60 B, E If the company desires that output rate equal demand, what would be the efficiency of this line with the minimum number of workstations? a. 100% b. 92.5% c. 90% d. 87.5% e. 85%

90%

A range control chart (R-chart) was developed with LCLR = 0 and UCLR = 4.00. Similarly, an X-Bar chart was developed with LCLx-bar = 10.0 and UCLx-bar = 20.0. and . Five (5) additional samples of size 4 were taken from a process. The means and ranges of the five samples are given in the table below. Is the process in control? Range of each sample Mean of each sample 4.75 12.5 3.42 13.3 4.25 21.7 2.58 20.9 3.60 11.6 a. Both the process range and the process mean are in control. b. Both the process range and the process mean are out of control. c. The process mean is in control, but the process range is out of control. d. We do not have enough information to determine if the process is in control or not. e. A warning signal should be issued.

Both the process range and the process mean are out of control.

A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 240 units per day. The tasks necessary to produce this product: Task Time (Sec) Immediate Predecessor(s) A 60 None B 60 A C 12 A D 25 C E 108 D F 60 B, E If the company desires that output rate equal demand, what is the last task performed at the second workstation in the balance which uses the minimum number of workstations? Note, Use trial and error to find the answer. a. B b. C c. D d. E e. F

E

A firm pursuing a strategy based on customization and variety will tend to structure and manage its supply chain to accommodate more _____________ than a firm pursuing a strategy based on low-cost and high-volume.

Variation

Which of these items would be most likely to have dependent demand? a. X-Box batteries b. toy trains c. flowers d. chocolate chip cookies e. wrist watches

X-Box batteries

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

a voluntary group of employees

A basic question in capacity planning is: A. what kind is needed B. how much is needed C. when is it needed D. all of the above E. none of the above

all of the above

A reason for the importance of capacity decisions is that capacity: -limits the rate of output possible -affects operating costs -is a major determinant of initial costs -is a long-term commitment of resources -all of the above

all of the above

In which type of processing system would gasoline be produced from crude oil? a. Job Shop b. Batch c. Assembly d. Continuous e. Project

continuous

If the output rate is increased but the average unit costs also increase we are experiencing:

diseconomies of scale

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

during the design phase

For an organization to grow its market share, it must:

exceed minimum standards of acceptability for its products or services

Operations Management:

focuses on decisions about the production and delivery of a firm's products and services

Which one of the following most closely describes net material requirements? a. gross requirements - amount on-hand - scheduled receipts b. gross requirements - planned receipts c. gross requirements - order releases + amount on-hand d. gross requirements - planned order releases e. gross requirements - amount on-hand + planned order releases

gross requirements - amount on-hand - scheduled receipts

The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the: a. master schedule b. bill-of-materials c. inventory-records d. assembly-time chart e. net-requirements chart

master schedule

A computer-based information system designed to handle ordering and scheduling of dependent-demand inventories is: a. computer aided manufacturing (CAM) b. computer integrated manufacturing (CIM) c. economic order quantity (EOQ) d. material requirements planning (MRP) e. economic run size (ERS)

material requirements planning (MRP)

A common goal in designing process layouts is: a) minimizing the number of workers b) minimizing idle time c) minimizing transportation costs d) maximizing work-station productive time e) maximizing transportation distances

minimizing transportation costs

An MRP system whose records are updated continuously is referred to as a(n): a.regenerative system b. batch-type system c. Plossl-Wright system d. net-change system e. gross-change system

net-change system

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 50 final grades from last year for each instructor, with the following results: Instructor Number of Failures Prof. A 2 Prof. B 4 Prof. C 6 Prof. D 8 Using .95 control limits, (5% risk of Type I error), which instructor(s), if any, should he conclude is (are) out of control? none Prof. D Prof. C both Prof. D and Prof. C all except A

none

Which of the following is a recent trend in business?

supply chain management

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management.

outsourcing; supply chain

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

pareto analysis

Business organizations compete through some combination of:

price, quality, delivery time, and product or service design.

Laser technology used in surgical procedures is an example of technological advances in: a. Product b. Service c. Process d. Information e. Reverse Engineering

process

If customer satisfaction doesn't always lead to customer loyalty, firms may need to focus additional effort on __________ strategies. a. remediation b. retention c. rework d. repatriation e. reprocessing

retention

Which of the following steps is necessary to ensure that a master schedule is valid? a. worker scheduling b. order promising c. inventory counting d. order booking e. rough-cut capacity planning

rough-cut capacity planning

Product design and choice of location are examples of _______ decisions.

strategic

Aggregate Planning is a. the activity of developing a plan that combines the efforts of the firm and its suppliers. b. the activity of developing a plan that combines the efforts of the firm and its distributors. c. the activity of matching supply of output with demand over the medium time range. d. the activity of matching supply of output with demand over the short time range. e. All of the above.

the activity of matching supply of output with demand over the medium time range.

In order to use the "level capacity strategy," variations in demand are met by: varying output during regular time without changing employment levels varying output during regular time by changing employment levels (a) and (b) using combination of inventories, overtime, part time, and back orders price adjustments

using combination of inventories, overtime, part time, and back orders