MGT 302 Exam 2 Practice Questions
150, 125, 100, 75
If expected demand during the next four quarters is 150, 125, 100, 75 thousand units and each worker can produce 1,000 units per quarter; how many workers would be needed for a chase strategy?
Single channel, multiphase
In a college registration process, several department heads have to approve an individual student's semester course load. What is the queuing system line structure? -Single channel, single phase -Single channel, multiphase -Multichannel, single phase -Multichannel, multiphase -None of the above
Batches of more than 20 units should be run on machine B
In a workcenter, machine A has a ten minute set-up time per batch and a two minute per unit run time. Machine B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit. The workcenter makes products in batches ranging from one unit to one hundred units. Assuming capacity is not a limitation on either machine, on which batches should machine B be used? -All batches should be run on machine B -Batches of more than 20 units should be run on machine B -Batches of fewer than 80 units should be run on machine B -Batches with up to 50 units should be run on machine B -No batches should be run on machine B
Current physical capacity and current workforce
In conducting aggregate operations planning there are a number of required inputs. Which of the following are considered inputs internal to the firm? -Inventory levels and economic conditions -Market demand and subcontractor capacity -Current physical capacity and current workforce -Competitor behavior and current workforce -Current physical capacity and raw material availability
Chase
Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies? -Stable workforce, variable work hours -Chase -Level -Meeting demand -Minimizing inventory
0
One unit of Part C is used in item A and in item B. Currently, we have 10 A's, 20 B's, and 100 C's in inventory. We want to ship 60 A's and 70 B's. How many additional C's do we need to purchase?
True
T/F? A car wash is an example of a single channel, multiphase queuing system.
True
T/F? A department of 25 machines is kept running by three operators who respond to randomly occurring equipment problems. An analyst who wanted to know how much production was being lost by machines waiting for service could use queuing theory analysis to find out.
False
T/F? A finite population in waiting line management refers to a population that is large enough in relation to the service system so that the change in population size caused by subtraction or additions to the population does not significantly affect the system probabilities.
True
T/F? A master production schedule is an input to a material requirements planning (MRP) system.
False
T/F? 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
T/F? A variable arrival rate is more common in waiting line management than a constant arrival rate.
True
T/F? An important aspect of service products is that they cannot be inventoried.
False
T/F? An output of MRP is a bill of materials (BOM) file.
True
T/F? Backordering costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.
False
T/F? Because a level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required.
True
T/F? Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.
True
T/F? Ideally in waiting line or queuing Analyze we want to balance the cost of service capacity with the cost of waiting.
True
T/F? Manufacturing firms maintain bill of materials (BOM) files, which are simply a sequencing of everything that goes into a final product.
True
T/F? One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.
True
T/F? Poka-Yokes are procedures that block the inevitable mistake from becoming a service defect.
True
T/F? Services often take the form of repeated encounters involving face-to-face interactions.
True
T/F? The Poisson probability distribution is used in waiting line management when we are interested in the number of arrivals to a queue during some fixed time period.
False
T/F? The admissions system in a hospital for patients is an example of a single channel, single phase queuing system.
True
T/F? The aggregate operations plan translates annual and quarterly business plans into broad labor and output plans for the intermediate term of 3 to 18 months.
True
T/F? The aggregate operations planning variable "production rate" refers to the number of units completed per unit of time.
True
T/F? The aggregate operations planning variable "workforce level" refers to the number of workers needed to accomplish the planned production.
False
T/F? The closer the customer is to the customer order decoupling point the longer it takes the customer to receive the product.
False
T/F? The essence of yield management is the ability to manage supply.
True
T/F? The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.
False
T/F? The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete.
False
T/F? The lot-for-lot (L4L) lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.
False
T/F? The master production schedule is a crucial input into the aggregate operations plan.
False
T/F? The time needed to respond to a customer's order is called the customer response time.
True
T/F? Yield management is the process of allocating the right type of capacity to the right type of customer at the right prices at the right time to maximize revenue or yield.
Lot sizes
These are the part quantities issued in the planned order release section of an MRP report.
Master production schedule
This drives the MRP calculations and is a detailed plan for how we expect to meet demand.
Manufacturing cell
This is a production layout where similar products are made. Typically it is scheduled on an as-needed basis in response to current customer demand.
Net requirements
This is the amount needed after considering what we currently have in inventory and what we expect to arrive in the future.
Line of visibility
This is the key feature that distinguishes a service blueprint from a normal flowchart.
Gross requirements
This is the total amount required for a particular item.
Design Quality
This refers to the inherent value of the product in the marketplace and is a strategic decision for the firm.
7.5 turns
A finished goods inventory on average contains 10,000 units. Demand averages 1,500 units per week. Given that the process runs 50 weeks a year, what is the expected inventory turn for the inventory? Assume that each item held in inventory is valued at about the same amount.
57.6 seconds
A firm is using an assembly line and needs to produce 500 units during an eight-hour day. What is the required cycle time in seconds?
Service -system design matrix
A framework that relates to the customer service system encounter.
Help to comute component usage
A product tree can do which of the following? -Help to compute component usage -Reduce product scrap -Reduce labor overtime -Reduce regular time labor -Locate raw material supplies
Variable
A quality characteristic that is actually measured, such as the weight of an item.
P-Chart
A quality chart suitable for when an item is either good or bad.
Level
A strategy that uses inventory and backorders as part of the strategy to meet demand.
Chase
A strategy where the production rate is set to match expected demand.
Inventory/Flow time
According to Little's Law, which of the following ratios is used to find throughput rate? -Cycle time/Process time -Throughput time/Process velocity -Process velocity/Throughput time -Inventory/Flow time -Value added time/Process velocity
Product Tree
A BOM file is also called which of the following? -Product tree -Stocking plan -Inventory usage record -Production parts plan -Time bucket schedule
2 parts per billion units
A Six Sigma process that is running at the center of its control limits would expect this defect rate.
70-80%
Firms that desire high service levels where customers have short wait times should target server utilization levels at no more than this percent.
Greater than 10%
If a firm increases its service capacity by 10 percent it would expect waiting times to be reduced by what percent? Assume customer arrivals and service times are random.
21 units
If a production process makes a unit every two hours and it takes 42 hours for the unit to go through the entire process, then the expected work-in-process is equal to this.
Level 4
If an item is used in two places in a bill of material, say level 3 and level 4, what low-level code would be assigned to the item?
113
If expected demand during the next four quarters is 150, 125, 100, 75 thousand units and each worker can produce 1,000 units per quarter; how many workers should be used if a level strategy is being employed?
Inventory
In a service setting, what general operations-related variable is not available compared to a production setting?
Capacity
None of the techniques for determining order quantity consider this important noneconomic factor that could make the order quantity infeasible.
lot-for-lot ordering
Ordering exactly what is needed each period without regard to economic considerations.
Time fences
Period of time during which a customer has a specified level of opportunity to make changes.
Attributes
Quality characteristics that are classified as either conforming or not conforming to specification.
Fitness for use
Relates to how the customer views quality dimensions of a product or service.
Conformance Quality
Relates to how well a product or service meets design specifications.
Degree of customer contact
Service systems can be generally categorized according to this characteristic that relates to the customer.
Subcontracting
Sometimes a firm may choose to have all or part of the work done by an outside vendor. This is the term used for the approach.
True
T/F? Time fences are periods of time having some specified level of opportunity for the customer to make changes.
Scheduled receipts
These are orders that have already been released and are to arrive in the future.
Bill of materials
This identifies the specific materials used to make each item and the correct quantities of each.
Poka-yoke
This is done to make a system mistake-proof.
Acceptance Sampling
Useful for checking quality when we periodically purchase large quantities of an item and it would be very costly to check each unit individually.
.72
Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1440 and the required output per day in units is 2000? -0.72 -1.388 -250 -500 -Cannot be determined from the information above
9.6
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? -0.104 -50 -9.6 -480 -Cannot be determined from the information above
Common variation
Variation inherent in the process itself.
Assignable Variation
Variation that can be clearly identified and possibly managed.
Scrap parts
We would expect to see which of the following in an MRP system's inventory status file? -End items produced -Late/early delivery records -Scrap parts -Labor efficiency -Computer errors
85%
What is the efficiency of an assembly line that has 25 workers and a cycle time of 45 seconds? Each unit produced on the line has 16 minutes of work that needs to be completed based on a time study completed by engineers at the factory.
Variation
What is the enemy of good quality?
Production rate, workforce level, inventory
When doing aggregate planning, these are the three general operations-related variables that can be varied.
Stable work force - variable work hours
When overtime is used to meet demand and avoid the costs associated with hiring and firing.
100%
Consider two queuing systems identical except for the service time distribution. In the first system the service time is random and distributed according to a Poisson distribution. The service time is constant in the second system. How would the waiting time differ in the two systems?
Waiting time in the first system is two times the second
Consider two queuing systems identical except for the service time distribution. In the first system the service time is random and distributed according to a Poisson distribution. The service time is constant in the second system. How would the waiting time differ in the two systems?
Low production efficiency
In the service-system design matrix, a face-to-face loose specs service encounter is expected to have which of the following? -Low sales opportunity -Low production efficiency -High production efficiency -Low degree of customer/server contact -None of the above
Material Requirements Planning
Logic used to calculate the needed parts, components, and other materials needed to produce an end item.
Enterprise Resource Planning
Term used for a computer system that integrates application programs for the different functions in a firm.
Sales & Operations planning
Term used to refer to the process a firm uses to balance supply and demand.
Workforce levels and inventory on hand
The main purpose of aggregate operations planning is to specify the optimal combination of which of the following? -Workforce levels and inventory on hand -Inventory on hand and financing costs for that inventory -The strategic plan and the products available for sale -The workforce level and the degree of automation -Operational costs and the cash flow to support operations
Lead Time
The planned order receipt and planned order release are offset by this amount of time.
Yield management
The practice of allocating capacity and manipulating demand to make it more predictable.
First come first served
The queuing models assume that customers are served in what order?
product-process matrix
The relationship between how different layout structures are best suited depending on volume and product variety characteristics is depicted on this type of graph.
ISO 9000
The series of international quality standards.
DMAIC Cycle
The standard quality improvement methodology developed by General Electric.
TasK
There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes? -Task -Time -Teamwork -Trust -Talent
Services cannot be inventoried
Which of the following is a characteristic that can be used to guide the design of service systems? -Services cannot be inventoried -Services are all similar -Quality work means quality service -Services businesses are inherently entrepreneurial -Even service businesses have internal services
Train your servers to be friendly
Which of the following is a suggestion for managing queues that is mentioned in the textbook? -Put up a serpentine lane to keep people from jumping ahead in line -Use humor to defuse a potentially irritating situation -Train your servers to be friendly -Assure customers that the wait is fair and inform them of the queue discipline -Tell people in the queue that each will be served as soon as possible
The aggregate plan
Which of the following is an input to the master production schedule (MPS)? -Inventory records file -The aggregate plan -The bill of materials -The exception report -Planned order schedules
Physician practice
Which of the following is considered a high-contact service operation? -On-line brokerage house Internet sales for a department store -Physician practice -Telephone life insurance sales and service -Automobile repair
Product-process matrix
Which of the following is not a basic type of process structure? -Product-process matrix -Workcenter -Manufacturing cell -Assembly line -Continuous process
engineer-to-order
A firm that designs and builds products from scratch according to customer specifications would have this type of production environment.
make-to-order
A firm that makes predesigned products directly to fill customer orders has this type of production environment.
customer order decoupling point
A point where inventory is positioned to allow the production process to operate independently of the customer order delivery process.
Infinite
Consider two queuing systems identical except for the service time distribution. In the first system the service time is random and distributed according to a Poisson distribution. The service time is constant in the second system. What is the expected waiting time for the system?
