ISDS Test 2
Intangible costs include which of the following?
D a. availability of public transportation b. quality of education c. quality of prospective employees d. All of the above.
Which of the following is TRUE of random stocking?
E a. Its results always minimize handling costs. b. Products have their own permanent storage spot. c. Each pick can be of only one product. d. Because items are stocked randomly, accurate inventory records are not necessary. e. None of the above is true.
Which of the following is NOT one of the techniques for building employee empowerment?
Eliminate formal organization structures such as teams and quality circles.
A bank office with five tellers, each with a separate line of customers, exhibits the characteristics of a multiphase queuing system.
False
A focused work center is well suited to the production of a large family of products requiring similar processing, even if their demands are not very stable.
False
A waiting-line system with one waiting line and three sequential processing stages is a multiple-server, single-phase system.
False
Capacity decisions are based on technological concerns, not demand forecasts.
False
The greater the margin by which the arrival rate exceeds the service rate, the better the performance of the waiting line.
False
The study of waiting lines calculates the cost of providing good service but does not value the cost of customers' waiting time.
False
Product-oriented layouts tend to have high levels of work-in-process inventories.
False
Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor?
Few people will travel out-of state for a routine haircut.
A c-chart is based on the
Poisson distribution
Which of the following is one of the four principles of bottleneck management?
Release work orders to the system at the bottleneck's capacity pace.
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 11 minutes. Station 5 can produce a unit in 8 minutes. Which station is the bottleneck station?
Station 4
A process-oriented layout is the traditional way to support a product differentiation strategy.
True
One drawback of a product-oriented layout is that work stoppage at any one point ties up the whole operation.
True
One reason for a firm locating near its competitors is the presence of a major resource it needs.
True
Price changes are useful for matching the level of demand to the capacity of a facility.
True
The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs.
True
The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit.
True
Unfavorable exchange rates can offset other savings in a location decision.
True
Cross-docking processes items as they are received, rather than placing them in storage.
True
What is the reasoning behind setting the upper and lower control limits plus or minus n3sigma Subscript x overbar from the mean?
We know that 99.73% of natural variation is contained within plus or minus3sigma Subscript x overbar, and thus any data point outside of the limits is likely due to assignable variation
Traffic counts and purchasing power analysis of drawing area are techniques associated with:
a retail or professional service location decision.
A system in which the customer receives service from only one station and then exits the system is which of the following?
a single-phase system
A good layout requires determining:
a. cost of moving between various work areas. b. capacity and space requirements. c. environment and aesthetics. d. material handling equipment. e. All of the above.
Of the four approaches to capacity expansion, the approach that "straddles" demand:
a. uses incremental expansion. b. works best when demand is not growing but is stable. c. some times leads demand, and at other times lags. d. uses one-step expansion. e. Choices A and C are both correct.
The common measures of a queuing system's performance include:
average time each customer spends in the system, probability that the service system will be idle, and average time each customer spends in the queue.
Which of the following is NOT one of McDonald's "seven major innovations"?
the Happy Meal
Adding a complementary product to what is currently being produced is a demand management strategy used when:
the existing product has seasonal or cyclical demand.
What is the probability of accepting a bad lot?
type II error (beta)
"A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type?
work cell
Which of these factors would be considered when making a location decision at the site level?
zoning regulations
An employee produces 10 parts during a shift in which he made $90. What is the labor content of the product?
$9
A work system has five stations that have process times of 5, 9, 14, 9, and 8. What is the bottleneck time?
14
An assembly line has 10 stations with times of 1, 2, 3, 4, ..., 10, respectively. What is the bottleneck time?
18.18% of the throughput time
Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 75%. What is the expected weekly output of cranks for this company?
4275
The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals 90% of design capacity. If the number of students who actually got their orientation session is 1500, what is the utilization of the system?
78.9%
Which of the following represents a customer who reneged due to the waiting line?
A customer at a gas station went inside to buy a soda, but after waiting in line for a minute left the soda behind and went outside empty-handed.
Cause-and-effect diagrams are also known as
fish-bone charts
One of the major advantages of process-oriented layouts is:
flexibility in equipment and labor assignment.
In acceptance sampling, the producer's risk is the risk of having a
good lot rejected.
An organization whose capacity is on the portion of the average unit cost curve that increases as output rises:
has a facility that is above optimum operating level and should reduce facility size.
Why is Singapore used as a cluster for computer hardware manufacturing?
high technological penetration rates and per capita GDP
Which of the following TQM tools would be best suited for displaying the number of students majoring in each business discipline?
histogram
The R-chart
is used to indicate gains or losses in dispersion.
A hospital's layout most closely resembles which of the following?
job shop
Which of the following is the Japanese term used to describe continuous improvement efforts?
kaizen
The reason fast food restaurants often are found in close proximity to each other is:
location clustering near high traffic flows.
The main goal of retail layout is:
maximizing profitability per square foot of floor space.
One hundred percent inspection
means that every part is checked to see whether or not it is defective.
Process capability
means that the natural variation of the process must be small enough to produce products that meet the standard.
A college registrar's office requires you to first visit with one of three advisors and then with one of two financial professionals. This system is best described as which of the following?
multiple-server, multiphase system
A concert hall, employing both ticket takers and ushers to seat patrons, behaves typically as which of the following?
multiple-server, multiphase system
Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon?
political risk
Which type of layout features departments or other functional groupings in which similar activities are performed?
process-oriented
What layout strategy deals with low-volume, high-variety production?
process-oriented layout
The ________ layout's main objective is to equalize the task time for each station.
product oriented
The objective of a statistical process control (SPC) system is to
provide a statistical signal when assignable causes of variation are present.
Taguchi's quality loss function is based on a
quadratic equation
Which of the following is NOT a common TQM tool?
queuing models
In location planning, environmental regulations, cost and availability of utilities, and taxes are:
regional/community factors.
Which of the following costs is NOT a cost of quality?
research and development
Which of the following is NOT among the eight determinants of revenue and volume for a service firm?
shipment cost of finished goods
Which one of the following is NOT a characteristic of a Model B or M/M/S system?
single server
Which of the following reduces product handling, inventory, and facility costs, but requires both (1) tight scheduling and (2) accurate inbound product information?
cross-docking
Which of the following is an example of a finite arrival population?
copy machines in a copying shop that break down
When making a location decision at the region/community level, which of these would be considered?
cost and availability of utilities
Which one of the following is NOT a characteristic of a Model C or M/D/1 system?
exponential service time pattern
