QM Final

*Dummy activities*

*Are used when two activities have identical starting and ending events* Have a duration equal to the shortest non-dummy activity in the network Are found in both AOA and AON networks Cannot be on the critical path

What is the time of the slowest workstation in a production system?

*Bottleneck time* Throughput time Utilization Effective Capacity

*What is a means of finding the point, in dollars and units, at which costs equal revenues?

*Break-even analysis* bottleneck analysis capacity analysis zero-sum analysis

What is the outcome of an alternative/state of nature combination called?

*Conditional value* Conditional expectation Conditional probability

*Scheduling matches resources to what?*

*Customer demands* Employee demands Product features Working hours

*Within decision theory, which of the following is NOT one of the three decision-making environments?*

*Decision making under pressure* Decision making under risk Decision making under certainty Decision making under unvertainty

*What is a tabular means of analyzing decision alternatives and states of nature?*

*Decision table* Decision grid Decision tree Decision matrix

*The capital investment each year in the United States usually* (on both tests)

*Decreases unless favorably taxed* Increases Decreases Remains the same

*What is the theoretical maximum output of a system in a given period under ideal conditions?*

*Design Capacity* Efficiency Utilization Effective Capacity

*Which of the following priority rules minimizes maximum tardiness?*

*EDD* FCFS SPT LPT

*Which of these is NOT one of the basic functions of the management process?*

Leading Staffing Controlling *Inspecting*

*What term refers to the location of competing companies near each other?* (on both tests)

Neighboring Centralizing Battling *Clustering*

Which of the following is the 4th step in analyzing problems with decision trees?

*Estimate payoffs for each possible combination of decision alternatives and states of nature* Assign probabilities of the states of nature Structure or draw the decision tree Solve the problem by computing the EMV for each state of nature

*What is the average return under complete certainty?*

*Expected value with perfect information* Expected value of perfect information Expected monetary value

*Which of the following considers process capacity when scheduling?*

*Finite loading* Constrained loading Backward loading Capacitated loading

*When using EMV for capacity planning situations, the state of nature usually is*

*Future demand or market favorability* Wage rates or equipment costs Average temperature or average rainfall Level of inflation or interest rates

The most aggressive and risky approach to capacity planning is

*Leading demand with one-step expansion* Attempts to have an average capacity that straddles demand with incremental expansion Leading demand with incremental expansion Lagging demand with incremental expansion

Which of the following is NOT one of the criteria used to evaluate scheduling performance?

*Maximize WIP* Maximize utilization

*Which of the following is NOT an element used to compute crash cost per period?*

*Optimistic time* Crash time Standard time Crash Cost

Which of the following statements is NOT true about process-focused facilities?

*Process-focused facilities are common in HIGH VARIETY, HIGH VOLUME manufacturing* Process-focused facilities are also known as "job-shops" Process-focused facilities are common in both manufacturing and service organizations

Which of the following is NOT an example of tangible costs?

*Public transportation facilities* Utilities Depreciation Labor

*Which of the following is the fourth step in the theory of constraints?*

*Reduce the effects of the constraints by offloading work or by expanding capability* Focus resources on accomplishing the plan When one set of constraints is overcome, go back and identify new constraints Develop a plan for the identified constraints

Break-even analysis for the single-product case requires an estimation of fixed costs, variable costs, and

*Revenue* Price, along with the percent of total dollar sales for each product The percent of total dollar sales for each product Price

Break-even analysis for the single-product case requires an estimation of fixed costs, variable costs, and

*Revenue* The percent of total dollar sales for each product Price Price, along with the percent of total dollar sales for each product

*Which of the following dispatching rules ordinarily gives the best results when the criterion is lowest time for completion of the full sequence of jobs?*

*SPT* FCFS LPT CR

What are listed across the top of a decision table?

*States of nature* Outcome probabilities Conditional Values Alternatives

Which of the following statements is NOT true regarding the ConWip card?

*The ConWip card increases the amount of work in the work center, controls lead time, and monitors the backlog* The ConWIP card travels with a job through the work center

*What is the major difference in focus between a location decision in the service sector vs. the manufacturing sector?*

*The focus in SERVICE is on revenue maximization, while the focus in manufacturing is on cost minimzation*

*Which of the following statements is an assumption PERT makes regarding the probability of finishing the project on time?*

*Total project completion times follow a NORMAL probability distribution* Total project completion times follow a uniform probability distribution

*Ch:08 Which of the following is NOT a key success factor in the country location decision?

*Zoning restrictions* Government rules Labor productivity Location of markets

which of the following is NOT one of the factors that fosters specialization and worldwide supply chains?

*marketing* Specialized expert knowledge Cheaper transportation Instant communication

*Which of the following is NOT considered to be one of the three primary functions that all organizations perform?

*research and development* production/operations finance/accounting marketing

When using the critical ratio (CR) to develop a sequence,

A CR greater than 1.0 means that the job has some slack

Within decision-making theory, what is a relationship between objectives and variables?

A link A match A path *A model*

*Which of the following is a basic assumption of PERT?*

Activity completion times are known with certainty *No activity in network must be repeated* There is only one complete route from the start of a project to the end of a project Only critical path activities in the network must be performed

*Which of the following capacity adjustment options applies to intermediate-range planning?*

Add long lead time equipment *Subcontract* Schedule personnel Allocate machinery

Which of the following is NOT an alternative name for finite capacity scheduling?

Advance planning systems *Finite planning* Short term scheduling systems Finite scheduling

A decision maker who uses maximin criterion when solving a problem under conditions of uncertainty is:

An optimist *A pessimist* An optometrist An economist

*Flow time represents the time:*

An order spends waiting for processing at a work center *To complete an order, including time spent in processing and in waiting* An order spends being processed at a work center

A primary advantage of decision trees compared to decision tables is that decision trees:

Are cheaper Are smaller Are faster *Can be used for sequential problems*

*A decision tree should be used in lieu of a decision table when there*

Are states of nature that are mutually exclusive and collectively exhaustive Is no uncertainty *Are sequential decisions and states of nature* is complete uncertainty

The short-term scheduling activity called "loading"

Assigns dates to specific jobs or operations steps Assigns workers to machines Assigns workers to jobs *Assigns jobs to work centers*

*Which of the following is NOT one of the reasons that globalization has taken place?*

Better international communities Market economics *Low differences in labor costs* Ease of capital flow between countries

*What is the priority rule that sequences jobs using the smallest ratio of due date from today to processing time?*

CR

*Which of the following is a direct responsibility of the project manager?*

Calculating completion probabilities for all the tasks in a project Drawing the network diagram *Making sure that people assigned to the project recieve the motivation, direction, and information needed to complete their jobs*

Which of the following organizations used its geographic information system to create an ideal customer profile of female homeowners with families?

Carvel Ice Cream Arby's Home Depot *Jo-Ann Stores*

*Which of the following activities at an airline is NOT an operations activity?*

Catering Flying Crew Scheduling *Sales*

Which of the following activities are NOT part of project scheduling?

Chart separate schedules for personnel needs by type of skill and materials Decide how long each activity will take *Make sure all necessary activities are finished in proper sequence and on time* Compute resources needed at each stage of production

Which of the following is NOT identified in the text as one of the eight major determinants of volume and revenue for the service firm?

Competition in the area Operating policies of the firm Quality of management *Level of advertising expenditures*

Geographic information systems can assist the location decision by:

Computerizing factor-rating analysis Providing good Internet placement for virtual storefronts *Combining geography with demographic analysis*

Which of the following considers process capacity when scheduling?

Constrained loading Backward loading Capacitated loading *Finite Loading* Cap loading

What are two alternative names for process-focused facilities?

Continuous process and repetitive facilities Repetitive and job shop facilities intermittent and continuous process facilities *Intermittent and job shop facilities*

*What is a graphical means of analyzing decision alternatives and states of nature?*

Decision network *Decision tree* Decision table Decision graph

Which airline uses software called the Inconvenienced Passenger Rebooking System to notify passengers of cancellations or delays?

Delta

Which of these statements regarding service scheduling is the best?

Demand for labor is stable in a service system Inventories can be used to smooth demand just like in manufacturing *Behavioral, social, and status issues are important in scheduling labor* Scheduling emphasis is on machines and material

The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision is:

Dependent upon the number of alternatives *Low (near 0%)* Dependent upon the number of states of nature High (near 100%)

Which of the following best defines scheduling?

Determines and implements INTERMEDIATE-AND-SHORT-TERM schedules that effectively and efficiently utilize BOTH personnel and facilities WHILE meeting customer demands

*Which of the following comes EARLIEST in the decision-making process?*

Develop a model *Develop specific and measurable objectives*

*Which of the following factor-rating method steps comes EARLIEST?

Develop a scale for each factor Have management score each location for each factor Multiply the score by the weights for each factor and total the score for each location *Assign a weight to each factor to reflect its relative importance in the company's objectives*

Which of the following breaks down the aggregate plan and develops weekly schedules for specific products or product lines?

Disaggregation schedule *Master schedule* Breakdown schedule short-term schedule

In manufacturing, excess capacity can be used to

Do MORE setups, SHORTEN production runs

Which of the following priority rules minimizes the average number of jobs in the system?

EDD *SPT* LPT FCFS

*How is the EF Computed?*

ES+Activity time

*How much money should a firm be willing to spend to obtain a perfect market forecast?*

EVwPI-Maximum EMV

*Efficiency is given by*

Effective capacity divided by actual output Design capacity divided by utilization *Actual Output divided by design capacity*

*The person who introduced standardized, interchangeable parts was*

Eli Whitney

*What does EMV stand for?*

Expected monetary value

*Of the following sequence rules, which is considered to be dynamic?*

FCFS *CR* EDD SPT

*Which of the following is an advantage of the FCFS dispatching rule when used in services?*

FCFS seems fair to customers (only one that says seems)

*Which of the following rules does a hospital's emergency room usually use for treating patients?*

FCFS within a priority class

*Which of the following methods is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas?* (on both tests)

Factor-rating method Location cost-volume analysis Transportation model *Center-of-gravity method*

If a decision maker has to make a particular decision only once, EMV is a good indication of the payoff associated with the decision

False

Short-term scheduling is important to efficiency and to cost reduction, but its impact is not one of strategic importance

False

The last step in the analytic decision process is to clearly define the problem and the factors that influence it

False

A large percentage of revenue of most firms is spent on which function?

Finance *Operations* Research and development Marketing

Which of the following statements is NOT true regarding finite capacity scheduling?

Finite capacity scheduling provides the scheduler with interactive computing and graphic output *Finite capacity scheduling directs delivery requirements to be based on a set of rules* Finite capacity scheduling is also called a short-term scheduling system

What focuses on developing varying schedules within the minimum number of workers?

Finite loading The assignment method Finite capacity scheduling *Cyclical scheduling*

*The difference between selling price and variable cost is called* (on both tests)

Fixed cost *Contribution* The break-even point the bottleneck

Which of the following organizations does NOT belong to the service sector?

Ford Motor Company

The father of scientific management is

Frederick W. Taylor

Short-term schedules are prepared

From the purchasing plans From inventory records for items that have been used up *From master schedules, which are derived from aggregate plans*

*An investment that generates a series of uniform and equal cash amounts is referred to as*

Future Value Cash Flow NPV *An Annuity*

*What is a means of determining the discounted value of a series of future cash receipts?*

Future Value Variable Cost *NPV* Cash Flow

*Which of the following is NOT true about Gantt charts?*

Gantt charts are low-cost means of helping managers make sure that activities are planned *Gantt charts adequately illustrate the interrelationships between activities and the resources* Gantt charts also can be used for scheduling repetitive operations

What is a technique used to monitor jobs in progress?

Gantt load chart *Gantt schedule chart* Assignment method ConWIP cards

Which goal of the following does NOT belong to the planning phase of project management?

Goal setting *Monitoring resources* Team organization Defining the project

*The economic activities that typically produce an intangible product are referred to as* (on both tests)

Goods Products Phantoms *Services*

*What is the typical goal of applying EMV to capacity decisions?

Identify the most likely state of nature Identify the least risky alternative Identify the alternative with the highest potential payoff *Maximize the expected value of the alternatives*

*Which of the following is NOT a valid principle of bottleneck management?*

Increasing the capacity of a non-bottleneck station is a mirage Release work orders to the system at the pace set by the bottleneck's capacity *Increase the capacity of a non-bottleneck station increases the capacity for the whole system* Lost time at a bottleneck represents lost capacity for the whole system

Which operations function at a manufacturing facility strives for the efficient use of machines, space, and personnel?

Industrial Engineering

Which of the following is NOT a result of overloading?

Inefficiencies Quality Problems Crowding in the facility *Wasted resources*

*Productivity increases when*

Inputs increase while outputs remain the same Inputs and outputs increase *Inputs decrease while outputs remain the same* Outputs decrease while inputs remain the same

*Which of the following is NOT one of the reasons operations managers want to work with their supply chains to viciously cut inventories at every level?*

Inventory hides quality issues Inventory contrains response to ever-shorter product life cycles *Inventory provides safety against higher-than expected demand* Inventory requires financial resources

*With respect to PERT and CPM, slack*

Is a task or subproject that must be completed Marks the start or completion of a task Is the latest time an activity can be started without delaying the project *Is the time a task may be delayed without changing the overall project completion time*

*Loading*

Is the process of assigning cycle times to operations steps Is typically manages using an assembly chart *Is the process of assigning JOBS to work or processing centers* Never considers process capacity

Forward scheduling is the scheduling of

Jobs according to their profit contributions *Jobs as soon as the requirements are known*

What allows operations personnel to manage facility work flows?

Johnson's rule The assignment method *Input-output control* WIPCon Cards

What describes a system that stores and displays information that can be linked to geographic location?

LIS LOC *GIS* AIS

*Which appears to provide the best opportunity for increases in productivity?* (on both tests)

Labor *Management* Capital Raw Materials

Which of the following approaches makes new capacity a larger increase at the beginning of the period?

Lagging demand with ONE-STEP expansion

Which of the following approaches makes new capacity a larger increase at the beginning of the period?

Lagging demand with incremental expansion *Leading demand with a one-step expansion* Leading demand with incremental expansion Attempts to have an average capacity that straddles demand with incremental expansion

*Which of the following approaches may use subcontracting to accommodate excess demand?*

Leading demand with a one-step expansion Leading demand with incremental expansion *LAGGING demand with incremental expansion*

Which of the following trends is NOT part of the exciting OM challenges currently facing operations managers?

Local focus

Which of the following techniques might a service or retail organization use to make a location decision?

Location cost-volume analysis Crossover charts Transportation method *Traffic Counts*

*Which of the following is NOT true regarding location decisions?*

Location decisions to support a low-cost strategy require particularly careful consideration Location decisions are important because location has a major impact on the overall risk/profit of the company *Once management is committed to a specific location, many costs become relatively easy to reduce*

*A technique for making an economic comparison of location alternatives is referred to as*

Locational cost-volume analysis

*CH:07 When making investment decisions using the net present value method, managers need to choose the investments with* (on both tests)

Lower costs higher revenues lower net present values *higher net present values*

*Among the following, critical path and slack time analysis MOST help*

Managers define the project activities Point out who is responsible for various activities *Pinpoint activities that need to be closely watched* Highlight relationships among project activities

*What is the most commonly used criterion for decision tree analysis?*

Maximin EVwPI EVPI *EMV*

*Which of the following is not an effectiveness criterion for scheduling?*

Maximizing utilization *Maximizing flow time* (all others minimize)

Cycling scheduling is usually used for scheduling

Meetings Machines Jobs *Employees*

Where is the "superhub" for Fedex located

Memphis

The latest finish of an activity is

Min{LS of all immediate following activities}

*Which of the following activities does NOT belong to the controlling phase of project management?*

Monitor resources, costs,... Revise Plans *Define the Project* Shift Resources

Which of the following is NOT a process-focused facility?

Motorcycle assembly line

*The ratio of all resources to the goods and services produced is referred to as*

Multifactor Productivity

*If an assignment problem consists of 6 workers and 7 projects:*

One worker will be assigned two projects *One project will not get a worker* One worker will not get a project assignment Each worker will continue to work toward the 7th project

The expected value of perfect information (EVPI) is the:

Payoff for a decision under perfect information Average expected payoff Greater EVwPI and Maximum EMV Payoff under minimum risk *Difference between the payoff under perfect information and the payoff under risk*

Which of these time estimates is NOT used in PERT

Pessimistic time Optimistic time *Standard Time* Most likely time

*The three phases involved in the management of large projects are*

Planning, scheduling, and EVALUATING

Which of the following is an advantage of PERT and CPM?

Precedence relationships must be specified and networked together Project activities have to be clearly defines, independent... Useful in monitoring only schedules *Straightforward concept and not mathematically complex*

*What is the objective of scheduling?*

Prioritize and allocate demand to available facilities (all others start with minimize...)

*Which of the following OM decisions determines how a good or service is produced and commits managements to specific technology, quality, human resources, and capital investment?*

Process and capacity design

*The creation of goods and services is referred to as:* (on both tests)

Production

What is a system that stores and displays information that can be linked to a geographic location?

RFID CIM ASRS *GIS*

Which of the following trends is NOT part of the exciting OM challenges currently facing Operations Managers?

Rapid product development *local focus* sustainability supply chain partnering

Which column in Microsoft Project defines the precedence relationships among activities?

Relations Successors Order *Predecessors*

Which of the following is NOT one of the five elements for each city that geographic information systems use to analyze location decision factors?

Residential areas *Rivers, mountains, lakes, and forests* Transportation options Cultural and entertainment centers

*Which of the following begins with the due date and schedules the final operation first?*

Reverse scheduling Due-date scheduling Forward scheduling *Backward scheduling*

The first step, and key element, in the decision-making process is to:

Select the best alternative Develop objectives *Clearly define the problem* Monitor the results

Which of the following is NOT considered a step in the decision-making process?

Select the best alternative Develop specific and measurable objectives Clearly define the problem and factors that influence it *Minimize costs wherever possible*

When a set of job must pass through two workstations whose sequence is fixed, _____ is the sequencing rule most commonly applied

Slack time remaining Critical Ratio FCFS *Johnson's rule*

*What decision tree symbol represents a decision node?*

Square

*What is a course of action or strategy that may be chosen by a decision maker?*

State of nature Mode *Alternative* Mission

Test Two

Test Two

*What is a scheduling technique used to achieve an optimum, one-to-one matching of tasks and resources*

The assignment method

*Which of the following is NOT a limitation of the net present value approach?

The assumption is that we know future interest rates, which we do not Investments with the same npv may have different cash flows Investments with the same npv may have significantly different projected lived and values *Payments are assumed to be made at the beginning of the period, which is not always the case*

*Which of the following is a requirement to be able to compute expected monetary value?* (on both tests)

The probability of each decision alternative is known *The probability of each STATE OF NATURE is known*

*Which of the following is NOT one of the four predictive variables in La Quinta Inn's regression model that predicts motel selection behavior and success of a site?*

The state population per inn Median income levels The location of nearby colleges *The number of hotel rooms in the vicinity*

*The multiproduct case of determining the break-even point in dollars weights what by each product's proportion of sales?*

The variable cost of each product The Fixed cost attributable to each product *The contribution of each product* The selling price of each product

*Which of these statements accurately captures a current trend in operations?*

There is increased focus on local market and local competition *Rapid product development* Jobs are increasingly specialized as workers focus on basic assembly tasks Mass production at the expense of product variety

*Average completion time for a schedule sequence at a work center is*

Total flow+number of jobs

A state of nature is an occurrence or situation over which the decision maker has little or no control

True

One criterion for developing effective schedules is minimizing completion time

True

Which of the following is NOT a characteristic of services?

Unique Produced and consumed simultaneously *Standardized product* Intangible

Which of the following does NOT contribute to OM?

Unsystematic processing of data

The transportation model

Uses both qualitative and quantitative factors Determines the crossover point between two different location *Determines the best pattern of shipment from several points of supply to several points of demand* Find the location of a single distribution center that minimizes distribution costs

*Computerized PERT/CPM reports and charts do NOT include*

Variance reports Cost distribution tables *Probability estimates for on-time completion* Detailed cost breakdowns for each task

The person who believed that management must do more to improve the work environment and processes so that quality can be improved was

W. Edwards Deming

*Which of the following is NOT one of the four reasons we study OM?*

We want to understand what marketing managers do

In terms of decision theory, an occurrence or situation over which the decision maker has no control is called a (an)

alternative decision under uncertainty *state of nature* EMV Decision Tree

The service sector constitutes what percentage of employment in the United States?

between 80% to 90%

*A global network of organizations and activities that supply a firm with goods and services is referred to as* (on both tests)

business functions *a supply chain* production operations management

The correct sequence from longest to shortest duration scheduling is

capacity planning, aggregate planning, master schedule, short-term scheduling

Decision trees and decision tables can both solve problems requiring a single decision, but tables are the preferred method when a sequence of decisions is involved

false

*Which critical ratio value implies that a job is already late?*

less than 1

The sequence of work for a job is also known as its

load path trajectory *routing*

Gantt Charts are

planning charts used to schedule resources and allocate time

Which of the following tasks would NOT typically represent an operations management activity at Hard Rock Cafe?

preparing an employee schedule receiving a shipment of incoming food ingredients designing an efficient layout *Filing a tax return*

The production at Hard Rock Cafe does NOT include which of the following activities?

receiving placing raw materials in cold storage cooking *advertising*

*Competition in the 21st century is no longer between companies, it is between*

supply chains

*What is the time of the slowest workstation in a production system

throughput time effective capacity *bottleneck time* utilization

*Which of the following is an example of a "hidden" production function?*

transplanting a liver