MGMT 3100 Operations Management
Important variables in waiting lines are ...
... Number of arrivals over the hours of service + Actual waiting time
The economic life of an object is ...
... the expected useful life
Customer satisfaction is based on the difference between ...
...expected wait tie and perceived wait time
The bottleneck operation will always...
...have the longest cycle time of all the steps in the process
The dominant issue in service design is...
...service capacity
A IRS uses a high-speed scanner and optical character recognition to process tax returns. As the number of fields to be recognized ( correlated to the number of pages in the tax return) increases, so does the likelihood there will be an error in the character recognition process. The mean number of fields to be recognized is 475 with a standard deviation of 55. What is the probability of returns that have more than 600 fields to recognize?
0.0115
If the sample size in a sampling process is 50 and the number of samples collected is 100. The fraction good is found to be 87%. What is the standard deviation?
0.0475
Every carton of produce arriving at Sprouts is sampled for quality. If 10 cartons of produce arrive and 5 pieces of produce from each carton are selected for quality inspection and a total of 6 defective pieces are found. What is the mean fraction defective?
0.12
A cafeteria serving line has a coffee urn from which customers serve themselves. Arrivals at the urn follow a Poisson distribution at the rate of 4.0 per minute. If the cafeteria installs an automatic vendor that dispenses a cup of coffee at a constant time of 8 seconds. How long would you expect it to take (in minutes) to get a cup of coffee, including waiting time? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
0.21 min
The production process you are responsible for has a mean of 73 and a standard deviation of 15. The process has a specification of 45.5±39.5 Which of the following is the process capability
0.26
A cafeteria serving line has a coffee urn from which customers serve themselves. Arrivals at the urn follow a Poisson distribution at the rate of 4.0 per minute. In serving themselves, customers take about 8 seconds, exponentially distributed. How long would you expect it to take to get a cup of coffee? (Round your answer to 2 decimal places.)
0.29 mins
Burrito King (a new fast-food franchise opening up nationwide) has successfully automated burrito production for its drive-up fast-food establishments. The Burro-Master 9,000 requires a constant 30 seconds to produce a batch of burritos. It has been estimated that customers will arrive at the drive-up window according to a Poisson distribution at an average of one every 55 seconds. What is the average waiting line length (in cars)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
0.33
A process has a mean of 56 and a standard deviation of 22 If the specification limits are LSL=6 ; USL =90 What is the Cpk?
0.515
in 2019 Apple Computer shipped approximately 10 million iPads. Assuming there were 50 potential points of failure in any iPad, if they wanted to achieve Six Sigma Quality (i.e less than 3.4 million failures per million units) What is the maximum number of failing units they can produce?
1700
The mean of a normal distribution is 50 and the standard deviation is 4. What is the actual value that corresponds to an Z value of -1.35 ? Answer to 2 decimal places
44.6
If the average time between customer arrivals is 7 minutes, what is the hourly arrival rate? (Round your answer to 1 decimal place.)
8.57
Six Sigma quality standards refers to trying to achieve a process capability where,
A mean shift of 1.5 standard deviations will still result in less than 3.4 DPM
Most companies perform a final inspection of product before it is shipped. This is an example of
Appraisal costs
What is required for 'work' to flow through a process with many steps?
Balanced workload
What is the term used for the situation where a potential customer arrives at a service operation and decides to leave upon seeing a long line?
Balking
MRP is based on what type of demand?
Dependent demand
What are the three types of projects based on the amount of change involved?
Derivative, breakthrough, and platform
What is it about service processes that makes their design and operation so different from manufacturing processes?
Direct customer involvement in the process
What is the most commonly used priority rule for setting queue discipline, likely because it is seen as most fair?
First come, first served
What are the three primary data sources used by the MRP system?
Master production schedule, bill-of-materials, inventory records file
Which scheduling process drives requirements in the MRP process?
Master production scheduling
A major objective in designing process layouts is
Maximizing flow and minimizing transportation
In the DMAIC cycle the 'M' refers to
Measure the critical to quality attributes
The objective of mixed model line balancing is
Meet demand and avoid high inventories
Process analysis seeks to
Minimize costs
In developing technology-push products, a firm begins with what type of technology?
New, Proprietary
Which type of learning results from both practice and changes in equipment?
Organizational
Procedures that prevent mistakes from becoming service defects are known as
Poka-yokes
Assembly to Order, compared to Make to Order, has the main advantage of:
Reduced order fulfillment lead time
A company decides to depreciate the amount they paid to acquire the intellectual property in the form of patents from a company
They should amortise it over the life of the patent
An enterprising student has set up an internship clearinghouse for business students. Each student who uses the service fills out a form and lists up to 6 companies that he or she would like to have contacted. The clearinghouse has a choice of two methods to use for processing the forms. The traditional method requires about 26 minutes to review the form and arrange the information in the proper order for processing. Once this setup is done, it takes only four minutes per company requested to complete the processing. The other alternative uses an optical scan/retrieve system, which takes only five minutes to prepare but requires nine minutes per company for completing the processing. If it costs $1/min regardless of which approach is taken which method should they select?
Traditional method
What term relates to the posting and tracking of activities that document a business?
Transaction processing
What are two of the main objectives of ERP?
Transaction processing and decision support
In a flowchart, what is used to represent a storage activity in a process?
Triangle or Inverted Triangle
A process is ___________ if it operates at the lowest possible cost.
efficient
In a supermarket, where should sale merchandise be placed in order to maximize how well it sells?
the end of an aisle
True or false: A service organization exists to serve the customer
true
A risk mitigation framework is used to
- Identify the risk - assess the potential impact of the risk - develop strategies to mitigate the risk
Burrito King (a new fast-food franchise opening up nationwide) has successfully automated burrito production for its drive-up fast-food establishments. The Burro-Master 9,000 requires a constant 30 seconds to produce a batch of burritos. It has been estimated that customers will arrive at the drive-up window according to a Poisson distribution at an average of one every 55 seconds. What is the expected average time in the system, in minutes? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
0.8
You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure. The cycle time of the line is 5 minutes, and the sum of all that tasks required on the line is 25 minutes. Which of the following is the correct value for the resulting line's efficiency?
0.833
MHC Health Centers claims to have Six Sigma quality when it came to surgeries. If they performed 19565 surgeries and any post-operative complication that results in a fatality is considered a 'failure'. If there are 15 possible causes on average in any surgery that could result in a fatality, how many post-operative fatalities did they have ?
1
(Choose the most appropriate answer from the choices below) In an assembly line balancing problem, work station cycle time. 1) will decrease as the required production per day increases, other things remaining the same.2) will increase as the required production per day increases, other things remaining the same.3) will decrease as the production time per day increases, other things remaining the same.4) will increase as the production time per day increases, other things remaining the same.
1 & 4
A local market research firm has just won a contract for several thousand small projects involving data gathering and statistical analysis. In the past, the firm has assigned each project to a single member of its highly trained professional staff. This person would both gather and analyze the data. Using this approach, an experienced person can complete an average of 10 such projects in an eight-hour day. The firm's management is thinking of assigning two people to each project in order to allow them to specialize and become more efficient. The process would require the data gatherer to fill out a matrix on the computer, check it, and transmit it to the statistical analysis program for the analyst to complete. Data can be gathered on one project while the analysis is being completed on another, but the analysis must be complete before the statistical analysis program can accept the new data. After some practice, the new process can be completed with a standard time of 20 minutes for the data gathering and 30 minutes for the analysis. What is the productivity (output per labor hour) for each alternative? (Round your answers to 2 decimal places.)
1-Person 1.25 projects/labor hour 2-Person 1 project/labor hour
A cafeteria serving line has a coffee urn from which customers serve themselves. Arrivals at the urn follow a Poisson distribution at the rate of 4.0 per minute. In serving themselves, customers take about 8 seconds, exponentially distributed. How many customers would you expect to see, on average, at the coffee urn? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
1.14
TSA is evaluating a self-serve COVID screening machine that would screen passengers entering the airport. Assume arrivals are from an infinite population with a Poisson distribution and it is expected the machine would be utilized at a rate of 100 passengers/hour. The measurements can be made at a constant rate of 30 secs/customer. The investment would be worthwhile if the equipment is utilized at least 70% of the time. What it the average time they would spend in line ( 2 decimal places)
1.25
The Alaskan King crab leg sizes are a key determinant for pricing as larger leg sizes are more sought after. The larger the size the fewer legs per 10 lb box. The typical crab harvest has a mean size of 15" with a standard deviation of 8". Crabs measuring less than 7" have to be released back into the ocean. What percentage of crabs will have to be released back into the ocean in any given year?
15.9%
TSA is evaluating an self-serve COVID screening machine that would screen passengers entering the airport. Assume arrivals are from an infinite population with a Poisson distribution and it is expected the machine would be utilized at a rate of 100 passengers/hour. The measurements can be made at a constant rate of 30 secs/customer. The investment would would worthwhile if the equipment is utilized at least 70% of the time. How many people would be in the waiting line to use the machine? (Nearest whole number)
2
The mean of a normal distribution is 50 and the standard deviation is 7. What is the Z value that corresponds to an actual value of 65? Answer to 2 decimal places
2.14
When did David Barnett launch the Kickstarter campaign?
2012
Transmissions are delivered to the fabrication line three at a time. It takes two hours for transmissions to be delivered. Approximately three vehicles are produced each hour, and management has decided that 50 percent of expected demand should be maintained as safety stock. How many kanban card sets are needed? (round answers to the next whole number)
3
Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4, 6, 7, 2, 6, and 5 minutes, and the cycle time is 10 minutes?
3
At the Children's Hospital in Seattle there are, on average, 60 births per week. Mother and child stay, on average, one day before they leave the hospital. At the Swedish Hospital (also in Seattle), the average number of births per week is 210. Mothers and children stay in the hospital one day, on average before they leave the hospital. The directors of the two hospitals are negotiating unifying the maternity wards of the two hospitals. They believe this will help reduce the number of new mothers staying in the unified ward. How many new mothers would be staying, on average, in the unified ward? (Assume that the average number of births and the length of stay of the new mothers will not change.) (Round your intermediate calculations to 4 decimal places and final answer to 1 decimal place.)
38.6
The brewing process involves 4 steps. Boiling, Fermenting, Filtering and Kegging. The batch size is 100 gallons for the boil and fermentation tanks. . Process times for the different steps are Boiling: 8 hours/100 gal, Fermenting: 15 days/100 gal, Filtering: 10 gal/hour, Kegging 10 min/5 gal. What is the flow time in hours for the entire batch of 100 gallons. Round your answer to the nearest whole number.
381
Suppose that an assembly line contains the following task times in seconds: 40, 30, 15, 25, 20, 18, 15. Without special arrangements, what is the shortest possible cycle time?
40
Avis Company is a car rental company that is located three miles from the Los Angeles airport (LAX). Avis is dispatching a bus from its offices to the airport every 4 minutes. The average traveling time (round-trip) is 20 minutes. How many Avis buses are traveling to and from the airport? (Do not round intermediate calculations. Round your answer to 1 decimal place.)
5
How much time, on average, would a server need to spend on a customer to achieve a service rate of 12 customers per hour? (Round your answer to 2 decimal places.)
5
How many prototypes did he have to make to perfect his design?
60
You are in a line at a drive-through and 10 cars are in front of you. You estimate that it is taking about 7 minutes per car to serve. How long do you expect to wait in line, in minutes?
70
What was the sales growth rate?
800%
Company Z is just starting to make a brand new product it has never made before. It has completed two units so far. The first unit took 21 hours to complete and the next unit took 17 hours. Based only on this information, what would be the estimate of the learning percentage in this process?
81%
Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units?
9.6
A firm has redesigned its production process so that it now takes 9 hours for a unit to be made. Using the old process, it took 12 hours to make a unit. The process makes two unit each hour, on average, and each unit is worth $1,500. What is the reduction in work-in-process inventory value?
9000
What is the typical response to a bottleneck operation?
Adding more resources
Which of the following basic types of production layout formats is one in which equipment or work processes are arranged according to the progressive steps by which the product is made?
Assembly line
Line balancing refers to (select the best answer)
Assigning tasks to workstations to ensure they have approximately the same cycle times
What term is used to identify the difference between the number of units of an item listed on the master schedule and the number of firm customer orders?
Available to promise
Best operating level is the level of capacity for which the process was designed and thus is the volume of output at which ____________
Average unit cost is minimized
Capacity in excess of expected demand is known as a what.
Capacity cushion
If you were using the Triple Bottom Line measure for measuring company performance against other companies in the industry. In order for the comparison to be meaningful which of the following might you consider including
Carbon emissions per unit of product produced
The operational goals of total quality management are.
Careful design of the product and systems that support consistent production of the design
In what phase are the needs of the target market identified?
Concept development
A trade-off that is made in determining the frequency of sampling is
Cost of sampling vs. benefit of adjusting the system
What did Barnett say he liked to do in the Kickstarter video?
Dancing
What are the two characteristics of a product or service that define quality?
Design quality and process quality
In order to guarantee good On Time in Full Delivery with a Make to Order process, you need, most importantly
Flexibility and sufficient capacity to cover demand peaks
Conformance quality refers to
How well does the product meet design specification
The saying "practice makes perfect" is associated with what type of learning?
Individual
What type of learning results when people gain skills from their own experience?
Individual
A process is part of an organization that takes __________, turns them into __________, and adds __________ while doing so. (Choose the answer with the correct words to complete this statement.)
Inputs, outputs, value
The customer order decoupling point determines the position of what in the supply chain?
Inventory
Who did he strike the first influencer deal with?
Jenna Marbles
Which major OSCM concept can be described as an integrated set of activities designed to achieve high-volume production using minimal inventories of parts that arrive at workstations exactly when they are needed?
Just-in-time (JIT) production
In some JIT systems, marked spaces on a table or the floor identify where material should be stored. Supplying operations are signaled to produce more when the space is empty. What are these spaces called?
Kanban squares
Often in practice, learning curves are plotted using a graph with which scale?
Loharithmic
One-piece flow can result in
Lower inventory costs
Which approach allows the manufacturer to optimise production costs because the process is decoupled from consumer demand?
Make to Stock
A manager states that her process is really working well. Out of 1,500 parts, 1,477 were produced free of defects and passed inspection. From a Six Sigma perspective, how would you rate this performance, other things being equal?
Not so great
A process step has a takt time (Cyclemin) 30 minutes and an actual production cycle time of 45 minutes -->
Overtime will be needed
What charity support organizations did they provide free PopSockets to?
Parkinson's disease
Which approach to service design empowers employees to be decision makers with regards to pleasing the customer?
Personal-attention approach
What three functional areas make up the manufacturing operating cycle?
Purchasing, manufacturing, and sales and distribution
What is the term that means making the person who does the work responsible for ensuring that specifications are met?
Quality at the source
What are the three general factors that determine the fit of a new or revised service process?
Service experience fit, operational fit, and financial impact
The key differentiator between goods and services
Services cannot be stored
A manufacturing company has a small production line dedicated to making a particular product. The line has four stations in serial. Inputs arrive at station 1 and the output from station 1 becomes the input to station 2. The output from station 2 is the input to station 3 and so on. The output from station 4 is the finished product. Station 1 can process 3,000 units per month, station 2 can process 2,900/month, station 3 can process 2,700/month, and station 4 can process 3,200/month. Identify the bottleneck operation
Station 3
What are the three elements that require integration to be successful in operations and supply chain management?
Strategy, processes, and analytics
Acme machine shop has a computer numerically controlled (CNC) lathe and a numerically controlled (NC) lathe . 98% of the parts that are started on the CNC machine are produced without defects. 89% of the parts started on the NC machine are produced without defects. At the end of one shift both machines have a 100 good parts.
The CNC machine is more efficient than the NC machine
Complexity of a service process refers to
The number of steps and the different actions that can be taken at each step
The exponential distribution is often used to model what in a queuing system?
The time between customer arrivals and/or service times
The goal of value engineering is
To achieve better performance at a lower cost
What term refers to managing the entire organization so that it excels on all dimensions of products and services that are important to customers?
Total Quality Management
The Harley Davidson production line produces the Fat Boy and the Electra Glide on the same line. They run one 8-hour shift per day and there is zero changeover time. The production cycle time for the Fat Boy is 1 min and the cycle time for the Electra Glide is 2 min. The demand for the Fat Boy is 240/day, while the demand for the Electra Glide is 240/day. Will they need to run overtime production? If so how many minutes of overtime will they need to run
Yes, they will need 240 mins of overtime
In designing a general service facility, capacity should be such that the target rate of service utilization (ρ), in order to get the best general purpose design, should be
about 0.7 (70%) so that your system would be in the zone of service with maximum possible utilization.
Which layout allocates dissimilar machines into cells to work on products that have similar shapes and processing requirements?
cellular layout/ cells
In order for productivity to be useful as a measure it needs to be
compared to something else
The first step in developing a house of quality is to develop a list of ____________.
customer requirements
What does the abbreviation C/T refer to in a value stream map
cycyle time
The x-axis of the service-system matrix shows which of the following
degree of customer contact
In regards to the service package, the benefits that are readily observable by the senses and that consist of the essential or intrinsic features of the service.
explicit services
A learning curve shows the increase in time required for each successive unit completed. TRUE/FALSE?
false
A manufacturing cell groups the same or similar machines into cells to work on products that have dissimilar shapes and dissimilar processing requirements. TRUE/FALSE?
false
A project layout is similar to the basic production layout format of the workcenter. TREU/FALSE?
false
A service system with a high degree of customer contact is less difficult to control than a low degree of customer contact service system. TRUE/FALSE?
false
A strength of ERP systems is that it is not necessary to have consistent definitions across all functional areas. TRUE/FALSE?
false
An input to the material requirements planning (MRP) system is an exception report. TRUE/FALSE?
false
An operations strategy must resist change because of the long-term nature of equipment and personnel investments. TRUE/FALSE?
false
As long as the process is running between the process control limits the process is deemed capable
false
Assembly lines are a special case of a project layout. TRUE/FALSE?
false
Because little or no inventory is carried in a service operation, it is easy to separate the operations management functions from marketing in services. TRUE/FALSE?
false
If the sum of the task times required to produce a product is 80 minutes and the cycle time for the same product is 15 minutes, the theoretical minimum number of workstations is 8 using the assembly-line balancing procedure. TRUE/FALSE?
false
It is possible to create a supply chain where there is no risk. TRUE/FALSE
false
Marketing is responsible for fulfilling the service guarantee. TRUE/FALSE?
false
One of the disadvantages of a pure project organizational structure is that the project manager has full authority over the project. TRUE/FALSE?
false
Operations pertains to the processes that move information and material to and from the manufacturing and service processes of the organization. TRUE/FALSE?
false
Returning involves processes for receiving worn-out, defective, and excess products back from customers but does not involve support for customers who have problems with the product. TRUE/FALSE?
false
The "back end" of the service encounter is more important than the "front end" because the "back end" is where most service providers are paid. TRUE/FALSE?
false
The "service blueprint" is a classification of services.
false
The capacity utilization rate is found by dividing best operating level by capacity used. TRUE/FALSE?
false
The critical path of activities in a project is the sequence of activities that form the shortest chain in a project network of activities. TRUE/FALSE?
false
The difference between goods and services is goods and services are homogeneous. TRUE/FALSE?
false
The problem of keeping demand sufficiently high to keep a large factory busy is merely a sales issue and not a diseconomy of scale. TRUE/FALSE?
false
The process control limit defines the range of product that is acceptable for sale TRUE/FALSE?
false
The specification limits is the range of variation that the process is able to maintain with a high degree of certainty TRUE/FALSE?
false
True or false: A benefit of a pure project is that you share equipment and people across projects.
false
True or false: The shortest required task time often defines the shortest possible workstation cycle time for production.
false
True or false: The testing and refinement phase precedes the detail design phase.
false
True or false: The total work at a workstation is equal to the sum of all tasks to complete a product.
false
True or false: When plant product becomes too large, economies of scale may occur.
false
When setup costs are high it is better to use one-piece flow. TRUE/FALSE?
false
What does the triangle represent in a value stream map?
inventory
On a service blueprint, the line that shows the distinction between the high customer aspects of the service and the those activities that the customer does not see is known as the
line of visibility.
Capacity planning involving acquisition or disposal of fixed assets such as buildings, equipment or facilities is considered as which one of the following planning horizons?
long range
What is the term used to describe the assessment of the probability of a negative event against the aggregate severity of the related loss?
loss planning
This accommodation strategy uses low-cost labor, outsourcing, and self-service to cut the cost of accommodation.
low-cost
The issue of balancing the level of finished inventory against the level of service to the customer occurs in which type of firm?
make-to-stock
Which type of firm invests in lean manufacturing programs in order to improve customer service levels for a given inventory investment?
make-to-stock
Firms that service customers from finished goods inventory are known as
make-to-stock firms
When a firm begins a new product and uses appropriate technologies to satisfy the market, that is known as a
market pull
More accommodation implies _____; less accommodation implies _____.
more cost, less-satisfied customer
The Internal rate of return (IRR) should be ...
more than the weighted average cost of capital
The periodic inspection and repair of equipment designed to keep the equipment reliable, thus eliminating unplanned downtime due to malfunctions is called _______________________.
preventive maintenance
Which layout format is utilized when a relatively low number of units will be produced?
project layout
The size of apples on an apple tree follows a normal distribution. Is this an example of
random variation
A customer joins a queue for service and leaves after waiting for a few minutes. This is an example of a
reneging
A flowchart of a service process, emphasizing what is visible and what is not visible to the customer is know as a
service blueprint
The purpose of value analysis/value engineering is to ________________.
simplify products and processes
With service design, the process and the product must be developed ________________________
simultaneously
Which of the following may not be essential to a base-case financial model for a product
tax rates
The largest number of units that you will see benefits from a learning curve is
theoretically, there is no limit
Improved performance in learning curves can be measured in two general ways, which are:
time per unit and units of output per time period
A characteristic of a well-designed service system is that it manages the evidence of service quality in such a way that customers are aware of the value of the service provided. TRUE/FALSE?
true
A workcenter is a basic production layout format in which similar equipment or functions are grouped together. TRUE/FALSE?
true
A worker can be efficient without being effective. TRUE /FALSE?
true
An assembly line is also known as a flow-shop layout. TRUE/FALSE?
true
Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between the two goals. TRUE/FALSE?
true
Capacity can be defined as the ability to hold, receive, store, or accommodate. TRUE/FALSE?
true
Highly automated systems may have a near-zero learning curve. TRUE/FALSE?
true
It is critical that a sustainable strategy meet the needs of shareholders and employees first, and then focus on preserving the environment.
true
Service guarantees can be used at the service design stage to focus the firm's delivery system on the things it must do well to satisfy the customer. TRUE/FALSE?
true
The final assembly scheme for the production scheme is usually defined in the system-level design phase. TRUE/FALSE?
true
The normal distribution assigns a probability that a particular value will occur in the the distribution of values TRUE/FALSE?
true
True or false: A benefit of the logarithmic analysis is that it does not require complete enumeration of successive time-output combinations.
true
True or false: A firm should have a mix of projects that best supports it's strategy.
true
True or false: A platform product is built around a preexisting technological subsystem
true
True or false: Different organizations may follow a different product design process
true
True or false: In a perfectly balanced plant, the plant should ensure the output of one stage provides the exact input for the next stage
true
True or false: In services, the process and the product must be designed simultaneously.
true
True or false: Learning curves are modeled using past data to create the trend line.
true
True or false: One of the outputs of the detail design phase is the drawings or computer files describing the geometry of each part and its production tooling.
true
True or false: Organizations expect to benefit from individual and organizational learning at the same time.
true
True or false: The customer order decoupling point is where inventory is positioned in the supply chain
true
True or false: The objective of layout decisions in a factory is to ensure a smooth work flow or a particular traffic pattern on a service organization.
true
True or false: The planning phase precedes the project approval.
true
True or false: The size of the plant may cause diseconomies of scale.
true
The act of varying is called
variation
The time between successive units coming off the end of an assembly line is referred to as: Multiple choice question.
workstation cycle time
