MGT Quiz Questions
In balancing an assembly line, workstation cycle time has to be less than the time between successive units coming off the end of the line.
False
MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.
False
Poka-Yoke is roughly translated from Japanese as "Quality Management."
False
The Aggregate Operations Plan differs in virtually every aspect in service organizations as contrasted with manufacturing organizations.
False
The closer the customer is to the customer order decoupling point the longer it takes the customer to receive the product.
False
The second step in managing a project is writing the Statement of Work.
False
Which of the following is an input to the master production schedule?
Inventory records file
A project may be defined as a series of related jobs directed toward some major output and requiring a significant period of time to perform.
True
Aggregate sales and operations planning occur in a company about every 3 to 18 months.
True
An example of an assemble-to-order firm is Dell Computer.
True
An important aspect of service products is that they cannot be inventoried.
True
An input to the material requirements planning (MRP) system is an inventory records file.
True
Costs incurred in hiring, training and laying off personnel are considered relevant aggregate operations planning costs.
True
For the purposes of assembly-line balancing, the required workstation cycle time is found by dividing production time per day by the required units of output per day.
True
In a CPM analysis if you subtract the early start from the late start the result is the activity's slack time.
True
MRP stands for Manufacturing Requirements Planning.
True
Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.
True
The central problem in virtually every waiting line situation is a trade-off decision balancing the costs of adding services with the costs of waiting.
True
The critical path in a project is that sequence of activities that consume the longest amount of time in a project network of activities.
True
The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to become more "lumpy."
True
The master production schedule states the number of items to be produced during specific time periods.
True
The sales and operations planning process consists of a series of meetings.
True
The volume requirements for the product are one determinant of the choice of which process structure to select.
True
Which of the following basic types of process structures is one which similar equipment or functions are grouped together?
Work Center
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.
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.
False
Foregone profit margins are considered as relevant aggregate operations planning costs.
False
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
Assume a fixed cost for a process of $10,000. The variable cost to produce each unit of product is $30, and the selling price for the finished product is $50. Ignoring inventory, how many units must the firm sell to break even?
500 Units $50-$30 = 20 $10,000/$20 = 500
Break-Even Analysis can only be used in production equipment decision making when dealing solely with fixed costs, no variable costs.
Fasle
Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs, and allowing lost sales is which of the following production planning strategies?
Level
Which of the following are the three major components of a queuing system?
The source population and the way customers arrive at the system, the serving systems, and how customers exit the system.
According to Little's Law, which of the following can be used to estimate work-in-process inventory?
Throughput rate times Flow time
Which of the following is one of the main purposes of a MRP system?
To determine the amount of materials needed to produce each end item.
A matrix project attempts to blend properties of functional and pure project structures.
True
Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 500 units, the demand forecast is 1,000, and the necessary safety stock is 10% of the demand forecast, which of the following is the production requirement?
Demand = 1000; 10% off demand = 100; Inventory = 500 1000 + 100 - 500 = 600 units
You are hired as a consultant to decide if your client should purchase a new, highly specialized, piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15 and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing?
The company's total margin will be less than its investment Explanation: Margin per unit = $30 $15 = $15; $15 x 15,000 units = $225,000. Because $225,000 < $256,000, the total projected margin for this product will be less than the investment required.
