OSCM Exam 2

The development and application of MRP depended upon two developments: (1) the recognition of the difference between independent and dependent demand, and (2):

Computers

ISO 9000 currently requires _____ of a certified organization.

Continuous Improvement

The causes of variation in any process can be identified through the general categories of people, procedures, education, and age.

False

The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent.

False

The output from aggregate planning is a detailed business plan covering the next 2 to 12 months.

False

Which one of the following most closely describes net material requirements?

Gross requirements - amount on hand - scheduled receipts

The process capability index (Cpk) may mislead if:(I) the process is not stable.(II) the process output is not normally distributed.(III) the process is not centered.

I, II, III

The Deming Prize was established by the:

Japanese

The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is:

Pareto analysis

The four dimensions of quality that are sometimes used to determine fitness for use of a product are:

Performance, special features, conformance, reliability

Organizations facing seasonal changes in demand are prevented from using aggregate planning techniques.

False

Statistical process control is the measurement of rejects in the final product.

False

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 100 final grades from last year for each instructor, with the following results: What is the estimate of the mean proportion of failures for these instructors?

0.1

Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, three-period lot-sizing method is used, what will be the quantity of the first planned receipt?

100

Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, two-period lot-sizing method is used, what will be the quantity of the first planned receipt?

100

The best way to assure quality is to use extensive inspection and control charts.

False

A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3. What is the projected on-hand inventory at the end of period 2?

12

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), anEach Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs; additionally one bottle of Alka-Seltzer is included for those who overindulge.d quantities on hand: If the firm is using a fixed-period lot size of two periods, what is the order size for the first order?

150?

The following data occurs chronologically from left to right: The number of runs with respect to the sample median is: 15.2 19.7 16 11.1 14.8 14.5

2

Inventory information for firm ABC: What is the expected inventory at the end of April 2008?

250

If 17 Ps are needed, and no on-hand inventory exists for any items, how many Cs will be needed?

272

A company's product line consists of 40 percent Product A, 40 percent Product B, and 20 percent Product C. The aggregate plan calls for total production that averages 1,100 units per quarter. Quarter 1 production will be 800 units, quarter 2 production will be 1,400 units, and quarter 3 production will be 1,200 units. How many units of Product A will be produced in quarter 4?

400

A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results: What is the standard deviation of the sampling distribution of sample means for whenever service life is in control?

515

Inspection is a(n):

Appraisal

The greater the volume of the process being targeted for inspection, the more attractive __________ inspection is.

Automated

Which of these products would be most likely to have dependent demand?

Automobile engines

Giving workers responsibility for quality improvements and authority to make changes is known as:

Employee empowerment

A c-chart is used to monitor the total number of defectives in the output of a process.

False

An x-bar control chart can only be valid if the underlying population it measures is a normal distribution.

False

Continuous improvement attempts to achieve major breakthroughs in product or service quality.

False

Demand can be altered in aggregate planning by promotion and producing additional product using overtime.

False

MRP II is simply an improved version of MRP that processes more quickly and can plan for a larger number of end items.

False

The probability of concluding that assignable variation exists when only random variation is present is:(I) the probability of a Type I error.(II) known as the alpha risk.(III) highly unlikely.(IV) the sum of probabilities in the two tails of the normal distribution.

I,II,IV

Which of the following is not a goal of process improvement?

Increasing customer satisfaction

One area to which aggregate planning decisions relate is:

Inventory levels

Which statement concerning MRP II is false?

It connects all parts of a firm and key portions of its supply chain to a single database for information sharing

A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are under control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results: For upper and lower control limits of 23.29 and 16.71, which machine(s), if any, appear(s) to have an out-of-control process mean?

Machine 1

Which of the following is not an input to the aggregate planning process?

Master production schedules

A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is under control, package weight is normally distributed with a mean of 20 ounces and a standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each: If he uses upper and lower control limits of 22 and 18 ounces, on what day(s), if any, does this process appear to be out of control?

Monday

A chart showing the number of occurrences by category would be used in:

Pareto analysis

A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n):

Product structure tree

The Baldrige Award is based on seven categories. Which is not one of those?

Relative profitability

Deciding how much to invest in the prevention of defects can be analyzed using:

Return on quality

Which of the following steps is necessary to ensure that a master schedule is valid?

Rough cut capacity planning

The amount of inspection needed depends on __________ and __________.

The costs of inspection; the costs of passing on defective items

According to Deming, it is the systems that management puts into place that are primarily responsible for poor quality, not employees.

True

An advantage of a "chase" strategy for aggregate planning is that inventories can be kept relatively low.

True

Approximately 99.7 percent of sample means will fall within plus or minus two standard deviations of the process mean if the process is under control.

True

Available-to-promise in the first week is equal to beginning inventory plus MPS quantity, if any, less committed customer orders before the next MPS quantity.

True

ISO standards aid in transferring technology to developing countries.

True

Initially, a master production schedule—the output from MRP—may not represent a feasible schedule.

True

Juran describes quality management as a trilogy that consists of quality planning, control of quality costs, and quality improvement.

True

Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center.

True

Patterns of data on a control chart suggest that the process may have nonrandom variation.

True

Recent changes to ISO guidelines stress continuous improvement regardless of how good you currently are.

True

Run tests are useful in helping to identify nonrandom variations in a process.

True

Safety time is sometimes used in MRP rather than safety stock quantities.

True

The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand.

True

The master production schedule states which end items are to be produced, in addition to when and how many.

True

The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start.

True

The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.

True

A quality circle is:

a voluntary group of employees

Aggregate planners seek to match supply and demand:

at minimum overall cost

That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is:

available to promise inventory

A quality improvement technique that involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking is:

brainstorming

When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive.

excess capacity

In practice, the more commonly used techniques for aggregate planning are:

informal trial and error techniques

The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:

inventory records

Which of the following lot sizing methods does not attempt to balance ordering (or setup) and holding costs?

lot for lot

Studies on a bottle-filling machine indicate that it fills bottles to a mean of 16 ounces with a standard deviation of 0.10 ounces. What is the process specification, assuming the Cpk index of 1?

lower 15.7, upper 16.3

A c-chart is used for:

number of defects per unit

Which one of the following would not be considered a decision option for purposes of aggregate planning?

production costs

The _________ of ERP makes it valuable as a strategic planning tool.

real time aspect

If customer satisfaction does not always lead to customer loyalty, firms may need to focus additional effort on __________ strategies.

retention

Which of the following would not be a strategy associated with adjusting aggregate capacity to meet expected demand?

use backorders

A shift in the process mean for a measured characteristic would most likely be detected by a:

x-bar chart