ops exam 2
92. A production center is available for 8 hours a day in a factory. It is comprised of several rotary parts, and the worker operating it is required to lubricate these rotary parts regularly each day. It takes 2 hours to remove these parts from the production center, lubricate them, and re-assemble them. The production center is not available for production during these times. The availability of the production center is: A. 50% B. Cannot be computed with the given information C. 25% D. 40% E. 75%
E. 75%
82. A cause-and-effect diagram: A. Identifies common causes of quality defects on its spines B. Is often used in conjunction with a Pareto chart C. Could be used to facilitate continuous improvement D. Is also called a fishbone diagram E. All of the above are true
E. All of the above are true
160. ________ is a combination of reliability and maintainability. A. Mean time to repair B. Field service C. Quality of conformance D. Warranty E. Availability
E. Availability
80. Which of the following techniques are used for continuous improvement? A. Pareto charts B. Cause-and-effect diagrams C. Process capability charts D. Only a and b E. a, b, and c
E. a, b, and c
98. Costs of inspectors, testing, testing equipment, and labs are examples of: A. Appraisal costs B. Improvement costs C. Internal failure costs D. Prevention costs E. External failure costs
A. Appraisal costs
124. _____ models are usually more accurate than ______ models for medium-to-long-range forecasts. A. Causal, time-series B. Time-series, qualitative C. Qualitative, time-series D. Qualitative, causal E. Time-series, causal
A. Causal, time-series
118. Which of the following is NOT part of Deming's 14 points? A. Exhort the workers to improve the quality system B. All employees should have on the job training C. Create constancy of purpose D. Cease dependence on mass inspection
A. Exhort the workers to improve the quality system
122. Which of the following statements is incorrect about managing inventory in supply chains? A. In a supply chain, a single firm typically controls all of the inventories that are required while manufacturing a product. B. Coordination among supply chain partners is essential while managing inventory across the supply chain. C. The total cost minimization approach can be applied while managing inventory across the supply chain. D. None of the above
A. In a supply chain, a single firm typically controls all of the inventories that are required while manufacturing a product.
158. Quality of design: A. Is determined before production by a cross-functional product design team B. Is one of the four decision areas of engineering C. Is the prime responsibility of production D. Means a product has high reliability, maintainability, and availability
A. Is determined before production by a cross-functional product design team
89. For which of the following would a p-chart be used? A. Measure the fraction defective B. Measure the variability C. Measure the number of defects per unit D. Monitor dispersion in sample data E. Measure the central tendency
A. Measure the fraction defective
101. A paint supplier that places orders for different colors of paint for delivery at the same time should use a: A. P system B. Q system C. Dependent demand inventory model D. Quantity discount model E. None of the above
A. P system
69. A small company that manufactures plastic containers is attempting to select a method of forecasting yearly demand for the next 10 years. The company typically uses forecasts from sales representatives for yearly forecasts. The company has expanded its facilities, doubling capacity over the past years. Sales data for the last fifteen years are readily available. Which of the following forecasting methods would be preferred? A. Qualitative B. Econometric C. Box-Jenkins D. Simple exponential smoothing
A. Qualitative
67. For production control, lean pull systems are best suited for: A. Repetitive manufacturing B. Job shop production C. Semi-repetitive batch manufacturing D. None of the above
A. Repetitive manufacturing
143. If a work center has no empty containers, the workers at the work center will do which of the following? A. Stop production B. Produce enough inventory to meet the following day's demand C. Continue to produce as much inventory as they can D. Produce enough inventory to satisfy the master production schedule
A. Stop production
132. The Baldrige Award criteria emphasize all of the following EXCEPT: A. Zero defects B. Customer focus C. Strategic planning D. Process management
A. Zero defects
149. The choice between P and Q systems should be based on: A. b and c- i think this is correct but the options don't make much sense (pg 389) B. Timing of replenishment C. Cost of the item D. a, b, and c E. a and b F. Type of record keeping
A. b and c- i think this is correct but the options don't make much sense (pg 389)
102. Suppose that you have taken 30 samples of 200 units each and calculated the proportion defective as p = .075. What is the upper control limit for a p-chart (rounded to 4 decimals)? A. .2192 B. .1309 C. .7500 D. .0191
B. .1309
154. The ideal setup time for a lean system is: A. 1 hour B. 0 minutes C. The time it takes the line to get ready D. 5 minutes
B. 0 minutes
162. A machining process is capable of producing a component with an average specification of 5 inches and a process standard deviation of 0.1 inch. Suppose the customer accepts the component as long as it falls between 4.8 inches and 5.2 inches, then the process capability is: A. 1.333 B. 0.667 C. 1.5 D. 1.0 E. 4.0
B. 0.667
131. If it takes 100 minutes to complete a circuit, demand at the next work center is 5 parts per minute, and a container will hold 20 parts, how many containers are required? A. 20 B. 25 C. 5 D. 40
B. 25
112. A computerized inventory system checks inventory levels at the end of the week and produces suggested orders for the coming week. What kind of system is this? A. A continuous review system B. A periodic review system C. An ABC inventory system D. A service level system
B. A periodic review system
161. ABC analysis requires that inventory be classified according to: A. Alphabetical order by item name B. Annual dollar usage C. Activity-based costs D. Due date E. None of the above
B. Annual dollar usage
126. The quality cycle: A. Produces control points and inspection techniques B. Begins with defining customer needs C. Applies primarily to manufacturing organizations D. Is stated as tolerances or minimum and maximum acceptable limits
B. Begins with defining customer needs
85. The number of defects in a product would be used to measure the: A. Reliability of the process B. Conformance quality of the process C. Repeatability of the process D. Performance quality of the process
B. Conformance quality of the process
157. Estate planning would be an example of a: A. Co-routed service B. Customer-routed service C. Provider-routed service D. None of the above
B. Customer-routed service
75. The principal objective of a lean system is: A. Reduction of inventory B. Improve the ROI of the firm C. Worker participation D. Reduction of setup times
B. Improve the ROI of the firm
145. Which of the following is incorrect about the cost of quality? A. Cost of quality is actually the cost of poor quality B. Increasing prevention cost increases appraisal, internal and external failure costs C. Training cost is an example of prevention cost D. Warranty is an example of external failure cost E. Both b and d
B. Increasing prevention cost increases appraisal, internal and external failure costs
125. A regression model is an example of which type of forecasting method? A. Qualitative B. Life-cycle analogy C. Historical analogy D. Causal
D. Causal
96. A service recovery process: A. Always follows a service transaction B. Is a part of the service delivery system C. Is the ability to compensate a service failure slowly D. None of the above
B. Is a part of the service delivery system
65. Unlike the requirements philosophy of inventory management, the replenishment philosophy: A. Applies to raw materials inventories B. Is appropriate given independent demand C. Causes demand to be dependent D. Calls for orders based on higher-level items
B. Is appropriate given independent demand
155. An example of a service business/organization that has a high degree of customer contact, high customization, and a high degree of labor intensity is: A. Schools B. Law practice C. Retailing D. Hotels E. Hospitals
B. Law practice
148. ____ contact services require employees with technical skills and efficient processing routines. A. High B. Low C. Moderate D. Both b and c E. Both a and b
B. Low
106. Which of the following is not an element of lean? A. Kanban pull system B. Modularized master schedule C. Multifunction workers D. Perfect or nearly perfect quality E. Small-lot production
B. Modularized master schedule
135. The ideal lot size for a lean system is: A. Infinite B. One C. The capacity of the machine D. Variable according to the production requirements E. None of the above
B. One
79. A kanban card is used to signal that: A. The next work center is stopped B. Parts are needed by the subsequent work center C. A machine has broken down D. A machine is ready for preventive maintenance E. A materials handler has run out of parts
B. Parts are needed by the subsequent work center
64. Which of the following is not included in internal service quality? A. Workplace design B. Product design C. Job design D. Employee recognition E. Employee selection
B. Product design
103. SERVQUAL is measured by: A. Reliability, Tangibles, Responsiveness, Empathy, and Conformance Quality B. Responsiveness, Tangibles, Empathy, Assurance, and Reliability C. Reliability, Tangibles, Assurance, Empathy, and Conformance Quality D. Performance Quality, Tangibles, Responsiveness, Reliability, and Assurance
B. Responsiveness, Tangibles, Empathy, Assurance, and Reliability
139. A Pareto chart: A. Has both upper and lower specification limits B. Shows the importance of the various types of defects that have been found C. Is not useful when first studying a quality problem D. Shows causes and effects of quality problems
B. Shows the importance of the various types of defects that have been found
147. Which of the following quality control sample statistics indicates a quality characteristic that is an attribute? A. Mean B. Standard deviation C. Variance D. Proportion E. Range
B. Standard deviation
99. Of the cost elements making up total inventory cost, which is the most difficult to estimate? A. Carrying costs B. Stockout costs C. Holding costs D. Item cost
B. Stockout costs
115. The degree of customer contact measures: A. The amount of time the customer is separated from the service delivery system B. The amount of time the customer is in the service delivery system while the service is being produced C. The customization abilities of the service system D. None of the above
B. The amount of time the customer is in the service delivery system while the service is being produced
84. Which of the following is NOT a correct statement? A. Services are provided in a bundle of services and goods B. The service delivery system should be designed primarily around the employees in the system C. Low-contact services can usually be made more efficient than high-contact services D. A service is produced and consumed simultaneously
B. The service delivery system should be designed primarily around the employees in the system
119. Which of the following statements is true about the Q system? A. It does not have a reorder point but rather a target inventory. B. The system is completely determined by the two parameters, Q and R. C. It does not have an EOQ because the quantity varies according to demand. D. The order interval is fixed—not the order quantity. E. None of the above is true.
B. The system is completely determined by the two parameters, Q and R.
107. External setup time refers to: A. The time it takes workers to set up a machine during scheduled maintenance B. The time to complete setup activities that do not require that the machine be stopped C. The time it takes equipment vendors to set up the machine D. None of the above
B. The time to complete setup activities that do not require that the machine be stopped
138. The second step in designing a quality control system is to decide on: A. The amount of inspection to use B. The type of measurement to be used C. Whether to certify suppliers D. The critical points in each of the processes where inspection is needed E. Who should do the inspection
B. The type of measurement to be used
123. Why is production leveled in a lean system? A. To increase the time for scheduled maintenance B. To create a uniform workload on all work centers C. To allow for production of safety stock D. To signal the need for more parts
B. To create a uniform workload on all work centers
120. Sampling inspection by attributes: A. Could be used together with process control and variable measurement as part of a quality control system B. a, b, and c C. Utilizes a discrete scale of measurement D. Means each item sampled is classified as defective or not defective based on quality standards E. a and c
B. a, b, and c
163. The reasons for failure of quality improvement efforts include: A. a and b B. a, b, and c C. Managers continue to focus on short-term financial results D. Managers interfere with true teamwork E. Managers instinctively blame employees when there is a quality failure
B. a, b, and c
133. Which of the following is not required for a lean system? A. Flexible workforce B. Kanban pull system C. A Type II MRP system D. A stable master schedule
C. A Type II MRP system
146. If a sales representative tells his or her manager, "I hope to sell 20% more than last year," this should be considered: A. A production plan B. A performance measure C. A goal D. A forecast
C. A goal
152. |Demand - Forecast| is: A. Mean absolute deviation of forecast error B. Forecast error C. Absolute deviation of forecast error D. Mean absolute percentage error
C. Absolute deviation of forecast error
151. Which of the following statements about process quality control is NOT true? A. Assignable cause variation is also referred as special cause variation B. An observation outside the control limits is an example of a special cause of variation C. Common cause variation can be eliminated from the process by removing the potential causes D. The control limits will include 99.74% of the population under the normal probability distribution assuming that the process is in control E. None of the above
C. Common cause variation can be eliminated from the process by removing the potential causes
88. Reduction of setup time is accomplished by separating internal and external setups and: A. Implementing a Kanban system B. Reducing lot sizes C. Converting internal setup time to external setup time D. Reducing inventory
C. Converting internal setup time to external setup time
97. Which of the following is NOT a significant difference between manufacturing and service operations? A. Resale B. Ownership transfer C. Cost per unit D. Customer contact E. Transportation
C. Cost per unit
117. The appearance of a TV cabinet that is not satisfactory is an example of: A. Variable measurement B. Mean chart C. Range chart D. Attribute measurement E. None of the above
D. Attribute measurement
71. Which of the following is NOT one of the most important factors in selecting a forecasting model? A. Data pattern B. User and system sophistication C. Customer sophistication D. Data availability E. Time and resources available
C. Customer sophistication
62. Which of the quality gurus advocated that organizations should drive out fear from the employees? A. Ishikawa B. Crosby C. Deming D. Juran E. Taguchi
C. Deming
81. The time it takes a container to complete an entire circuit consists of: A. Move time, time used, and wait time B. Wait time, run time, setup time, and idle time C. Fill time, wait time, move time, time used, and time to be returned to be filled again D. None of the above
C. Fill time, wait time, move time, time used, and time to be returned to be filled again
91. When should qualitative methods NOT be used? A. When making major, costly decisions, such as facilities location B. When it is impossible to obtain historic data C. For short-range, repetitive decisions D. When historic data are unreliable
C. For short-range, repetitive decisions
129. A good service guarantee: A. Is often an advertising gimmick B. Has many stipulations and conditions C. Is an honest assurance that the customer will be satisfied D. Costs a lot
C. Is an honest assurance that the customer will be satisfied
74. A product's conformance to specifications: A. Determines sales price to the customer B. Is in response to customers' needs C. Is independent of the quality of design D. Is defined as continuity of service to the customer
C. Is independent of the quality of design
109. Mean time between failure: A. Is used to measure a product's maintainability B. Is a measure of up time/(up time + down time) C. Is used to measure a product's reliability D. Is used to measure a product's maintainability and availability
C. Is used to measure a product's reliability
70. The carrying cost consists of the following three cost components: A. Storage cost, handling cost, and obsolescence cost B. Obsolescence cost, capital cost, and stockout cost C. Obsolescence cost, storage cost, and capital cost D. Capital cost, obsolescence cost, and ordering cost
C. Obsolescence cost, storage cost, and capital cost
87. Which cost is classified under the cost of capital? A. Storage cost B. Item cost C. Opportunity cost of investment in inventory D. Deterioration
C. Opportunity cost of investment in inventory
77. Transportation cost is an example of: A. Carrying cost B. Storage cost C. Ordering cost D. Stockout cost E. Item cost
C. Ordering cost
72. In the basic EOQ model, if the lead time doubles, the EOQ will: A. Decrease by half B. Double C. Remain the same D. Increase, but not double E. None of the above
C. Remain the same
86. The six-step quality cycle approach includes all of the following EXCEPT: A. Define quality attributes on the basis of customer needs B. Decide how to measure each attribute C. Reward employees for quality improvement D. Set quality standards E. Find and correct causes of poor quality
C. Reward employees for quality improvement
159. Which of the following is NOT a general characteristic of a service? A. Production and consumption are simultaneous B. The service cannot be stored C. The service can be transported D. No resale is possible
C. The service can be transported
127. Which of the following statements is/are true about time-series forecasting? A. Time-series methods are useful for long-range forecasts. B. Time-series methods are used to make detailed analyses of past demand patterns over time and to project these patterns forward into the future. C. a, b, and c D. Under time-series methods, demand can be divided into components such as average level, trend, seasonality, cycle and error. E. The basic strategy of time-series forecasting is to identify the magnitude and form of each component based on available past data.
C. a, b, and c
78. Which of the following are characteristics of a low-contact service delivery system? A. Lower costs and more standardization B. Greater flexibility, need for people who are highly skilled in interpersonal relations, and a customer orientation C. Need for people with a high level of technical skills oriented toward efficient processing, well-defined procedures, and smooth flow D. Both a and c E. All of the above
D. Both a and c
73. Given that unit cost = $25, annual carrying charge = 10%, annual demand = 4000 units and ordering cost = $15 per order, the EOQ is: A. 300 units B. 21.91 units C. 154.92 units D. 219.09 units
D. 219.09 units
140. A service guarantee: A. Is like a product guarantee except that it is for a service B. Specifies exactly what the service delivery system must provide C. Builds loyalty D. All of the above
D. All of the above
153. The categories for the Baldrige Award include: A. Manufacturing companies B. Small businesses C. Healthcare organizations D. All of the above
D. All of the above
66. A method of forecasting that best describes the flows from one sector of the economy to another is called: A. Econometric model B. Time-series model C. Simulation model D. Input-output model E. Regression
D. Input-output model
116. Independent demand inventory consists of: A. Inventory whose demand comes from independent suppliers B. Inventory that is independent of any known rules of demand and supply C. Demand that is related to the demand for another item D. Inventory whose demand is determined by market conditions outside the firm E. None of the above
D. Inventory whose demand is determined by market conditions outside the firm
108. Capacity, as opposed to inventory: A. Is a stock of raw materials, work in process, or finished goods used to facilitate production or satisfy customer demands B. Covers anticipated changes in demand or supply C. Is the rate at which a stock can be depleted D. Is all idle resources, except for material, that provide the potential to produce items
D. Is all idle resources, except for material, that provide the potential to produce items
76. A complete system of quality control: A. Must include both variable and attribute measurements B. Involves a zero defects philosophy C. Requires a continuous scale for measurement of defects D. Is defined by critical control points, inspectors, measurements, costs, and other considerations
D. Is defined by critical control points, inspectors, measurements, costs, and other considerations
144. Average inventory under a Q system: A. Is set to cover average demand over lead time plus the review intervals B. Tends to be less than under a system of periodic review at fixed internals C. Is relatively flat in the neighborhood of the minimum D. Is depleted at a constant rate
D. Is depleted at a constant rate
134. Which of the following is incorrect about the philosophies advocated by Joseph Juran? A. Juran originated the idea of the quality trilogy B. Juran stressed the use of statistical methods to control quality C. Juran believed that planning is an important part of quality improvement D. Juran stressed the need to cease the dependence on inspection E. None of the above
D. Juran stressed the need to cease the dependence on inspection
150. If one time-series has low demand values and another has higher demand values, _____ will be an accurate way of comparing the errors for these two time-series. A. MAD B. TS C. CFE D. MAPE E. MSE
D. MAPE
121. Which cost is not considered part of inventory ordering costs? A. Transportation costs B. Receiving costs C. Setup costs D. Obsolescence costs
D. Obsolescence costs
63. Which of the following is NOT a characteristic of service operations? A. The buyer can perform part of the production B. Product cannot be stored C. Intangible output D. Ownership is transferred at time of purchase E. No resale is possible
D. Ownership is transferred at time of purchase
137. If an organization were having difficulty trying to get customers' opinions into the definition of quality, which of the following approaches would be most suitable? A. ISO 9000 certification B. TQM C. Six-Sigma D. Quality Function Deployment
D. Quality Function Deployment
83. The five initiatives implemented by Motorola for achieving customer satisfaction include all of the following EXCEPT: A. Improve profitability B. Reduce total cycle time in all activities C. Produce products and services to a six-sigma standard D. Reduce defects to no more than 5 defects per million actions E. Provide a creative and cooperative workplace
D. Reduce defects to no more than 5 defects per million actions
95. Which phrase most closely describes the Delphi forecasting technique? A. Test markets B. Individual opinions C. Consumer survey D. Rounds of anonymous data collection E. Historic data
D. Rounds of anonymous data collection
90. Which of the following is not a purpose of inventory? A. To protect against uncertainties B. To provide for transit C. To uncouple phases of operations D. To decrease obsolescence
D. To decrease obsolescence
114. Which of the following is NOT an element of the service-product bundle? A. Implicit service B. Facilitating goods C. Explicit service D. Value of goods/service E. Tangible service provided
D. Value of goods/service
128. Which of the following is NOT a use of the error estimate? A. To monitor erratic demand observations or outliers B. To determine when the forecasting method is no longer tracking actual demand and needs to be revised C. To set safety stocks or safety capacity D. To determine parameter values that provide the most accurate forecasts E. All the above are uses of the error estimate
E. All the above are uses of the error estimate
100. A process control chart: A. Assumes that 99.74% of random variations observed will fall within an upper and lower limit B. Represents upper and lower control limits set at ± 2 standard deviations from the center line C. Separates the assignable cause of variation from the common cause of variation D. Assigns causes of variation to operator, machine, or material E. Both a and c
E. Both a and c
136. The ability of the process to meet, or exceed, its specifications can be determined by: A. Pareto charts B. Cause-and-effect diagrams C. Histograms D. Variable control charts E. Cp index
E. Cp index
111. Which of the following is NOT a measure of forecast error? A. Mean absolute percentage error B. Mean absolute deviation of forecast error C. Mean square error D. Cumulative sum of forecast error E. Cumulative absolute deviation of forecast error
E. Cumulative absolute deviation of forecast error
130. In the basic EOQ model, if annual demand and carrying charge double, the effect on the EOQ is: A. It doubles. B. It increases by about 40%. C. It is about 70% of its previous amount. D. It is half of its previous amount. E. It remains the same.
E. It remains the same.
156. With regards to suppliers, lean systems typically require: A. The lowest price possible B. Buyer inspection of goods and materials C. Multiple sources from which to purchase D. Delivery of large lots at frequent intervals E. Long-term relationships and commitments
E. Long-term relationships and commitments
93. Which of the following is NOT an assumption of the basic EOQ model? A. The item is a single product; there is no interaction with other products. B. No stockouts are allowed. C. Annual demand is constant and known. D. Lead-time is constant and known. E. Quantity discounts are available.
E. Quantity discounts are available.
105. Which of the following is not an example of a high labor-intensive service? A. Personal services B. Insurance agents and service C. Auto repair D. Business services E. Retail trade
E. Retail trade
94. Which of the following is/are assumptions of process control? A. Random variability cannot be eliminated unless the process is redesigned. B. Common causes represent random variability. C. Production processes are not usually found in a state of control. D. Only a and c E. a, b, and c
E. a, b, and c
68. The service-profit chain shows that _____ is the key to profitability. A. employee retention B. customer satisfaction C. customer contact D. employee productivity E. customer loyalty
E. customer loyalty
110. Reducing setup time is important because it: A. Increases available capacity B. Increases flexibility to meet schedule changes C. Reduces inventory D. Both a and b E. Both b and c F. a, b, and c
F. a, b, and c
113. Under lean, the ROI is increased by: A. An increase in revenues B. Cost reductions C. Fewer investments D. Both a and b E. Both b and c F. a, b, and c
F. a, b, and c
Lean emphasizes all of the following except: A. Setup time reductions B. Cross training of workers C. Increased utilization of machines D. Supplier development E. Lot size reduction F. Elimination of waste
Increased utilization of machines