Operations Management 366 #2
False
A strategy that emphasizes convenience for the customers would probably select a single very large facility. ⊚ true ⊚ false
True
Advanced communications has aided globalization. ⊚ true ⊚ false
True
Among the benefits claimed for cellular manufacturing are less material handling and reduced setup time. ⊚ true ⊚ false
A) low labor productivity.
Among the potential disadvantages of having global operations is/are A) low labor productivity. B) less restrictive environmental regulation. C) lower wage costs. D) proximity to global markets. E) favorable liability laws.
False
An example of inventory holding cost is the cost of moving goods to temporary storage after receipt from a supplier. ⊚ true ⊚ false
C) 60 pounds remaining
Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. At what point should she reorder pepperoni? A) 20 pounds remaining B) 40 pounds remaining C) 60 pounds remaining D) 80 pounds remaining E) 100 pounds remaining
True
As a general rule, continuous processing systems produce products with very little variety. ⊚ true ⊚ false
A) once a month
Average demand for a particular item is 1,200 units per year. It costs $100 to place an order for this item, and it costs $24 to hold one unit of this item in inventory for one year. If the fixed-order-interval model is chosen in this instance, how often (on average) will this item be ordered? A) once a month B) once every other month C) twice a month D) twice every three months E) three times every two months
A)
Computer-integrated manufacturing integrates all of the following except _____ with manufacturing. A) consumer satisfaction surveys B) engineering design C) purchasing D) production planening and control E) order processing
False
Cycle counting can be used in motorcycle inventory control. ⊚ true ⊚ false
C) 60 times the square root of 10
Daily usage is exactly 60 gallons per day. Lead time is normally distributed with a mean of 10 days and a standard deviation of 2 days. What is the standard deviation of demand during lead time? A) 60 times 2 B) 60 times the square root of 2 C) 60 times the square root of 10 D) 60 times 10 E) 10 times the square root of 2
A) stopwatch time study.
Determining the number of cycles to observe is an element of: A) stopwatch time study. B) standard elemental times. C) predetermined time standards. D) work sampling. E) MTM tables.
E) 700 units.
If average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is A) 100 units. B) 200 units. C) 300 units. D) 600 units. E) 700 units.
E) 130
If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four days, the ROP will be A) 20. B) 50. C) 70. D) 80. E) 130.
False
In general, job-shop systems have a lower unit cost than continuous systems do because continuous systems use costly specialized equipment. ⊚ true ⊚ false
True
Potential benefits of self-directed teams include higher productivity and greater worker satisfaction. ⊚ true ⊚ false
E)
When new products or services are being planned, process selection occurs as a matter of course. Process selection also comes into play as a result of: (I) technological changes. (II) competitive pressures. (III) fundamental changes in demand patterns. A) I only B) II only C) III only D) I and II but not III E) I, II, and III
D) performance rating
When performing a time study, the analyst converts the observed time into the time a worker would require working at an acceptable "average" pace by using which of the following? A) allowance factors B) MTM C) methods analysis D) performance rating E) analysis of therbligs
B) purchase cost
Which of the following is typically the largest of all inventory costs? A) shortage cost B) purchase cost C) holding cost D) ordering cost E) pipeline cost
False
Location decisions are basically one-time decisions usually made by new organizations. ⊚ true ⊚ false
B) a contract.
Location options do not usually include A) expansion. B) a contract. C) adding new facilities. D) moving. E) doing nothing.
E)
Managers have obligations to a wide variety of stakeholders such as shareholders, employees, and customers. When considering outsourcing production to offshore suppliers, managers have to weigh 1. (I) cost benefits that might make shareholders wealthier. 2. (II) quality issues that might make firms less productive and/or products riskier. 3. (III) the investments already tied up in relationships with existing suppliers. A) I B) II C) III D) I and II only E) I, II, and III
True
Medical malpractice claims are an example of how poor quality can affect an organization through liability. ⊚ true ⊚ false
True
Mismatches between operational capabilities and market demand can have a negative impact on an organization. ⊚ true ⊚ false
True
Monitoring inventory turns over time can be used as a measure of performance. ⊚ true ⊚ false
True
Morale problems can be a reason for redesign of a facility layout. ⊚ true ⊚ false
C) manufacturing company.
Nearness to raw materials would be most important to a A) grocery store. B) tax preparation service. C) manufacturing company. D) post office. E) hospital.
True
One disadvantage of specialization is worker dissatisfaction. ⊚ true ⊚ false
True
One important factor that influences productivity is trust between workers and managers. ⊚ true ⊚ false
True
One important use of inventories in manufacturing is to decouple operations through the use of work-in-process inventories. ⊚ true ⊚ false
False
Processes that are in control eliminate variations. ⊚ true ⊚ false
D) 38 seconds
QRS Corp. is designing a product layout for a new product. They plan to use this production line 10 hours a day in order to meet forecasted demand of 900 units per day. The following table describes the tasks necessary to produce this product: Without considering forecasted demand, what is the minimum possible cycle time for this production line?
D) prevention costs.
Quality planning and administration, quality training, and quality control procedures are examples of A) internal failure costs. B) external failure costs. C) appraisal costs. D) prevention costs. E) replacement costs.
False
Right-sized equipment tends to be larger than equipment used in traditional process layouts. ⊚ true ⊚ false
True
Run tests are useful in helping to identify nonrandom variations in a process. ⊚ true ⊚ false
False
Safety stock eliminates all stockouts. ⊚ true ⊚ false
False
Self-directed teams help other work groups make changes to their processes. ⊚ true ⊚ false
True
Six Sigma programs have both management and technical components. ⊚ true ⊚ false
false
So long as quality input resources are used to make a product, we can expect quality output from the process. ⊚ true ⊚ false
True
Specialization is one of the sources of disagreement between the efficiency and behavioral approaches to job design. ⊚ true ⊚ false
true
TQM expands the traditional view of quality beyond looking only at the quality of the final product or service to looking at the quality of every aspect of the process. ⊚ true ⊚ false
False
Technology has made communication with global operations as easy as local communication. ⊚ true ⊚ false
True
The EOQ should be regarded as an approximate quantity rather than an exact quantity. Thus, rounding the calculated value is acceptable. ⊚ true ⊚ false
A) Alpha Ave.
The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows If it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select?
E) $9,000
The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows What would be the total annual costs for the Alpha Ave. location with 20 persons living there?
False
The average inventory level is inversely related to order size. ⊚ true ⊚ false
True
The basic EOQ model ignores the purchasing cost. ⊚ true ⊚ false
False
The design of work systems is based on objective standards and thereby avoids most ethical issues. ⊚ true ⊚ false
True
The dimensions of product and service quality are too abstract to be used as parameters for product or service design. ⊚ true ⊚ false
False
The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another. ⊚ true ⊚ false
E) unchanged or greater.
The introduction of quantity discounts will cause the optimum order quantity to be A) smaller. B) unchanged. C) greater. D) smaller or unchanged. E) unchanged or greater.
C) .2
The manager of Lawn and Garden Services would like to estimate the proportion of her employees' time spent performing various gardening and lawn care activities. She has made 400 random observations of a typical worker, with the following results: What is the most likely true proportion of time spent mowing?
A)
The minimum possible cycle time in a typical product layout with no parallel activities is determined by the A) longest task time. B) shortest task time. C) average task time. D) total task time. E) per-unit setup time.
True
The normal time in time study is obtained by multiplying the observed time by the performance rating. ⊚ true ⊚ false
B) 90 seconds
The owner of Kat Motel wants to develop a time standard for the task of cleaning a cat cage. In a preliminary study, she observed one of her workers perform this task six times, with the following results: What is the observed time for this task?
True
The primary difference between internal failures and external failures is time and place of discovery of the failure. ⊚ true ⊚ false
C)
The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements is called A) fair employment practices. B) idle time analysis. C) line balancing. D) cycle time optimization. E) capacity cycling.
C) benchmarking
The process of identifying other organizations that are best at some facet of your operations, analyzing your performance versus theirs in order to establish a standard against which to judge performance, and identifying a model for learning how to improve is known as A) continuous improvement. B) employee empowerment. C) benchmarking. D) copycatting. E) industrial espionage.
True
The purpose of quality control is making sure that processes are performing in an acceptable manner. ⊚ true ⊚ false
A) 9000; 14000
The quality certification that deals primarily with conformance to customer requirements is ISO _____
A)
The substitution of machinery that has sensing and control devices for human labor is best described by the term A) automation. B) feedback control. C) computer-aided manufacturing. D) computer-integrated manufacturing. E) flexible manufacturing system.
D) flowchart
The tool that is useful in documenting the current process is a A) control chart. B) Pareto chart. C) check sheet. D) flowchart. E) cause-and-effect diagram.
False
The two basic causes of accidents are worker carelessness and management demands for increased productivity. ⊚ true ⊚ false
False
There are three basic process types: input, processing, and output. ⊚ true ⊚ false
B) adding new locations rather than expanding existing ones.
When service firms such as retailers or banks make growth-spurred location decisions, typically these involve A) finding new sources of resources to replace exhausted ones. B) adding new locations rather than expanding existing ones. C) closing down existing locations and opening new ones elsewhere. D) expanding existing locations rather than adding new ones. E) downsizing existing locations and opening new ones elsewhere.
C) extended service contract costs
Which is not a cost of quality? A) prevention cost B) external failure costs C) extended service contract costs D) internal failure costs E) appraisal costs
D) greater satisfaction for middle managers
Which of the following is not a potential benefit of the use of self-directed teams? A) higher quality B) higher productivity C) greater worker satisfaction D) greater satisfaction for middle managers E) lower turnover
D) Quantity discounts are available
Which of the following is not one of the assumptions of the basic EOQ model? A) Annual demand requirements are known and constant. B) Lead time does not vary. C) Each order is received in a single delivery. D) Quantity discounts are available. E) Ordering and holding costs have been estimated reasonably accurately.
D) Evaluate alternatives and make a selection.
Which of the following is the last step in the procedure for making location decisions? A) Determine the evaluation criteria. B) Identify important factors. C) Develop location alternatives. D) Evaluate alternatives and make a selection. E) Request input regarding alternatives.
A) horizontal loading
Which of the following most closely describes job enlargement? A) horizontal loading B) increasing the level of responsibility associated with a job C) transferring workers through a series of jobs to increase their scope of experience D) increasing the amount of workspace assigned to a worker E) assigning two jobs to the same worker
C) fresh fish
Which of these products would be most apt to involve the use of a single-period model? A) gold coins B) hammers C) fresh fish D) calculators E) frozen corn
E) purchase cost
Which one of the following is not generally a determinant of the reorder point? A) rate of demand B) length of lead time C) lead time variability D) stockout risk E) purchase cost
C) C
With an A-B-C system, an item that had a high demand but a low annual dollar volume would probably be classified as A) A. B) B. C) C.
True
Work sampling can be used to estimate the proportion of time a machine is idle. ⊚ true ⊚ false
False
Work sampling is most frequently used to set time standards. ⊚ true ⊚ false
A) define
his step in the control process includes sufficient detail about what is to be controlled.
D) 5.6, 4.4
1) A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units. What is the optimal location for the fabric plant?
B) 4.7 minutes
1) A company has an assembly line with 34 tasks. The longest task is 4.7 minutes and the total time for all tasks is 92 minutes. The line will operate for 615 minutes per day.What is the minimum cycle time?
C) sample 3
1) A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results If he uses upper and lower control limits of 520 and 480 hours, on what sample(s) (if any) does service life appear to be out of control?
D) 515 hours
1) A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results What is the sample mean service life for sample 2?
B) 15,000 units
1) A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows At what annual output would the company be indifferent between the two locations?
D) 30 seconds
1) A methods and measurement analyst wants to develop a time standard for a certain task. In a preliminary study, he observed one worker perform the task six times with an average observed time of 20 seconds and a standard deviation of 2 seconds. What is the standard time for this task if the employee worked at a 20 percent faster pace than average, and an allowance of 25 percent of job time is used?
C) should be investigated because an assignable cause of variation might be present.
1) A point which is outside of the lower control limit on an R-chart
D) .02
1) A quality analyst wants to construct a control chart for determining whether four machines, all producing the same product, are in control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results What is the estimate of the process proportion of defectives?
A) .023
1) A quality analyst wants to construct a control chart for determining whether four machines, all producing the same product, are in control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results What is the sample proportion of defectives for machine #1?
A) machine #1
1) A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results For upper and lower control limits of 23.29 and 16.71, which machine(s), if any, appear(s) to have an out-of-control process mean?
B) 16
1) A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results What is the sample mean for machine #1?
A) 19 ounces
1) A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is in control, package weight is normally distributed with a mean of 20 ounces and a standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each What is the sample mean package weight for Thursday?
D) unnecessary.
1) Organizations should work to improve process capability so that inspection efforts can become more
False
1) Specialization is a term that describes job that have a very wide scope.
A) repetitive; slight
1) The _____ process type requires _____ flexibility of equipment.
D) inspection alone, process control, and continuous improvement.
1) The approaches to quality assurance are
E) what will be the total cost involved
1) The basic issues of inspection include all of the following except
B) sampling distribution.
1) The basis for a statistical process control chart is a(the)
False
1) The center of gravity method uses the earth's center to establish starting grid coordinates (i.e., the 0,0,0 point) in three dimensions (x, y, and z).
C) 2.
1) The following data occurs chronologically from left to right 15.2 19.7 16.0 11.1 14.8 14.5 The number of runs above and below the sample median is:
D) distinguish between random variation and assignable variation in the process.
1) The purpose of control charts is to
D) variability
1) The range chart ( R-chart) is most likely to detect a change in
D) evaluate
1) This step in the control process includes a definition of out of control.
C) 100 percent inspection
1) Which of the following is not a step in the control process?
quality
1) Which of the following is not considered a factor in working conditions?
E) Job Shop
1) Which of the following process types would be most likely to be used in the introductory phase of a product's life cycle?
C) 54
A company is designing a product layout for a new product. It plans to use this production line 8 hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product are: Without regard to demand, what is the minimum possible cycle time (in seconds) for this situation?
A) 3.20.
A job has an observed cycle time of 4 minutes, a performance rating of 80 percent, and an allowance that is 20 percent of job time. Normal time for the job in minutes is: A) 3.20. B) 3.84. C) 4.00. D) 4.80. E) 5.00.
E) to reject all locations.
A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below If the decision rule is to select the location with the greatest composite score exceeding 80, management should choose
B) location B.
A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below If the selection criterion is to be the greatest composite score, management should choose
B) 75
A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below What is the composite score for location A?
C) $380,000
A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows What would be the total annual costs at the point of indifference?
D) 60 seconds
A methods and measurements analyst for Digital Devices needs to develop a time standard for the task of assembling a computer mouse. In a preliminary study, she observed one of her workers perform this task six times with the following results: What is the standard time for this task if the employee worked at a 20 percent faster pace than average and an allowance of 25 percent of job time is used?
C) 24 seconds
A methods and measurements analyst for Timepiece, Inc., needs to develop a time standard for the task of attaching a watch to a wristband. In a preliminary study, he observed one of his workers perform this task five times, with the following results: What is the normal time for this task if the employee worked at a 20 percent faster pace than average?
D) 28.8 seconds
A methods and measurements analyst for Timepiece, Inc., needs to develop a time standard for the task of attaching a watch to a wristband. In a preliminary study, he observed one of his workers perform this task five times, with the following results: What is the standard time for this task if the employee worked at a 20 percent faster pace than average, and an allowance of 20 percent of job time is used?
True
A possible disadvantage of a product layout is an inflexible system. ⊚ true ⊚ false
False
A process that exhibits random variability would be judged to be out of control. ⊚ true ⊚ false
D)
A production line is to be designed for a job with three tasks. The task times are 0.4 minutes, 1.2 minutes, and 0.5 minutes. The maximum cycle time in minutes is A) 0.4. B) 0.5. C) 1.2. D) 2.1. E) 0.7.
False
A retail store that carries twice as much inventory as its competitor will provide twice the customer service level. ⊚ true ⊚ false
B)
A service organization such as a hospital is likely to use a(n) _____ layout because of variability in customer processing requirements. A) project B) process C) flow D) assembly E) nonrepetitive
C) Control Chart
A tool that uses time-ordered values of a sample statistic to help detect the presence of correctable causes of variation in a process is a(n) A) affinity diagram. B) checklist. C) control chart. D) flowchart. E) relationship diagram.
True
According to Deming, it is the systems that management puts into place that are primarily responsible for poor quality, not employees. ⊚ true ⊚ false
E)
An advantage of a U-shaped production line is that A) it is less compact. B) communication is reduced among employees. C) workers are specialists. D) work assignments are more rigid. E) it is more efficient than a traditional product layout.
B) factor rating
An approach to location analysis that can include both qualitative and quantitative considerations is A) locational cost-profit-volume. B) factor rating. C) the transportation model. D) net present value. E) the center-of-gravity method.
B) decreasing lot sizes.
An operations strategy for inventory management should work toward A) increasing lot sizes. B) decreasing lot sizes. C) increasing safety stocks. D) decreasing service levels. E) increasing order quantities.
C) greatly decreased order quantities.
An operations strategy which recognizes high carrying costs and reduces ordering costs will result in A) unchanged order quantities. B) slightly decreased order quantities. C) greatly decreased order quantities. D) slightly increased order quantities. E) greatly increased order quantities.
False
Approving the effort that occurs during the production process is known as acceptance sampling. ⊚ true ⊚ false
false
Because courtesy is subjective, it cannot be considered a factor in service quality. ⊚ true ⊚ false
False
Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations. ⊚ true ⊚ false
True
Business organizations that achieve good quality benefit in a variety of ways, including a positive reputation for quality, increased customer loyalty, and lower production costs. ⊚ true ⊚ false
True
Concluding that a process is out of control when it is not is known as a Type I error. ⊚ true ⊚ false
False
Control limits used on process control charts are specifications established by design or customers. ⊚ true ⊚ false
True
Cost of inspectors, testing, test equipment, and labs are examples of appraisal costs. ⊚ true ⊚ false
True
Firms that wish to do business with the European Community can benefit from having a quality management system that meets ISO 9000 standards. ⊚ true ⊚ false
True
For a production line, daily capacity can be determined by dividing the daily operating time by the line's cycle time. ⊚ true ⊚ false
False
For purposes of obtaining good time standards using a stopwatch time study, the analyst should try to avoid having the worker discover he or she is being observed. ⊚ true ⊚ false
True
For service and retail stores, a prime factor in location analysis is customer access. ⊚ true ⊚ false
A) marketing
For service firms such as banks and supermarkets, location decisions are critical elements of _____ strategy. A) marketing B) pricing C) promotional D) efficiency E) effectiveness
True
For service organizations, the dominant factors in location analysis usually are market-related. ⊚ true ⊚ false
False
High performance and low prices are both considered to be dimensions of quality. ⊚ true ⊚ false
E) continual improvement
ISO 9000 currently stresses _____ of a certified organization. A) minimizing harmful environmental effects B) product diversity C) inclusion of reused components in the office equipment D) a minimum of four supervisory levels E) continual improvement
C) is an ongoing process.
ISO certification differs substantially from the Baldrige Award in that it A) focuses primarily on quality teams. B) emphasizes self-appraisal. C) is an ongoing process. D) is customer-driven. E) is national rather than international.
C) Report
In addition to correcting substandard work, employees have an ethical obligation to _____ the quality problem as well. A) prevent B) offset C) report D) standardize E) redesign
A) regional factors.
In location planning, the location of raw materials, the location of markets, and labor factors are A) regional factors. B) community factors. C) site-related factors. D) national factors. E) minor considerations.
False
In the A-B-C approach, C items typically represent about 15 percent of the number of items, but 60 percent of the dollar usage. ⊚ true ⊚ false
B) 67
In the single-period model, if excess cost is double the shortage cost, the approximate stockout risk, assuming an optimum service level, is ___ percent. A) 100 B) 67 C) 50 D) 33 E) 5
C)
In which type of operation are you likely to see, at most, only minor variations in the product or service being produced using the same process and the same equipment? A) a project B) a job shop C) repetitive production D) batch processing E) intermittent production
False
Information technology refers to competitive data. ⊚ true ⊚ false
True
Interest, insurance, and opportunity costs are all associated with holding costs. ⊚ true ⊚ false
C) 5
It is estimated that the cost to fix a problem at the customer end is _____ times the cost to fix the problem earlier in the production or design phase. A) 3 B) 4. C) 5 D) 6 E) 7.
False
Job design relates to people, therefore technology has little impact. ⊚ true ⊚ false
C)
Job shops tend to be _____ while continuous processes tend to be _____. A) in services B) short-term and capital intensive; long-term and labor intensive C) small scale and flexible; large-scale and inflexible D) standardized; customized E) low cost-per-unit; high cost-per-unit
True
Juran describes quality management as a trilogy that consists of quality planning, control of quality costs, and quality improvement. ⊚ true ⊚ false
False
Labor laws are an important site-related factor. ⊚ true ⊚ false
