POM Test 2 - Quizzes

T or F: The International Aggregate Planning Society (IAPS) has developed aggregate operations planning guidelines that are followed by a majority of manufacturing firms.

F

T or F: The master production schedule is a crucial input into the aggregate operations plan.

F

T or 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.

T

T or F: The customer arrivals in a queuing system come almost exclusively from finite populations.

F

T or F: It is difficult to separate the operations management functions from marketing in services.

T

T or F: Project management can be defined as planning, directing, and controlling resources to meet the technical, cost, and time constraints of the project.

T

The major goal of critical path analysis is to: A. To determine when each activity in the project should be scheduled B. Identify and manage the critical path C. Estimate the project's completion date D. Provide a visual aid that indicates precedent and antecedent relationships E. Determine the latest feasible start date

A

The placement of which of the following is not determined by production process organization decisions? A. emergency exits B. machines C. workstations D. work groups E. departments

A

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? A. treatment B. time C. task D. teamwork E. trust

A

Which of the following are the three major components of a queuing system? A. The source population and the way customers arrive at the system, the serving systems, and how customers exit the system. B. the number of servers, the service speed and the waiting line C. the source population and the way customers arrive at the system, the servers and how customers exit the system D. the service speed, the queue discipline and the waiting line E. The source population, how the customer exits the system, and the servicing system.

A

Which of the following basic types of process structures is one which similar equipment or functions are grouped together? A. work center B. project C. manufacturing cell D. assembly line E. continuous process

A

Which of the following is a suggestion for managing queues that is mentioned in the textbook? A. Segment the customers B. assure customers that the wait is fair and inform them of the queue discipline C. put up a serpentine lane to keep people from jumping ahead in line D. use humor to defuse a potentially irritating situation E. none of these

A

Which of the following is an example of a finite population in a queuing system? A. The departmental faculty in line at the copy machine. B. people waiting to place their order at a fast food restaurant C. patients seeking help in a hospital emergency room D. people waiting in line at an ATM E. taxpayers calling for assistance from the IRS

A

Which of the following is not a step in developing a manufacturing cell layout? A. disposing of left-over machinery and outsourcing ungrouped processes B. grouping parts into families that follow a common sequence of steps C. identifying dominant flow patterns of parts families as a basis for location of processes D. physically grouping machines and processes into cells E. none of the above

A

Which of the following is not considered a major work flow structure? A. fabrication B. work center C. assembly line D. continuous flow E. none of the above

A

Which of these expressions is Little's Law? A. all of these B. inventory/throughput rate = flow time C. throughput rate/inventory = 1/flow time D. inventory/flow time = throughput rate E. inventory = throughput rate X flow time

A

You have been placed in charge of a large project. Shortened communication lines are required to ensure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management structure should you use in this situation? A. Pure Project B. Functional Project C. PERT D. Task force E. Matrix Project

A

In an overview of the major operations planning activities in a typical service organization, which of the following activities follows aggregate sales and operations planning? A. master scheduling B. process scheduling C. order scheduling D. workforce scheduling E. materials requirements planning

D

Some of the advantages of a functional project where the project is housed in a functional division include which of the following? A. The project manager has full authority over the project B. None of these C. Team pride, motivation, and commitment are high D. A team member can work on several projects E. Needs of the client are secondary

D

Which following queue discipline is discussed in the textbook? A. first come, first served B. last in, last out C. limited needs D. Emergencies first E. best customer first

D

Which of the following is a basic type of process structure? A. process flow diagram B. product matrix C. process matrix D. workcenter E. none of the above

D

Which of the following is considered a "pure" production planning strategy? A. product warehouse B. lag demand C. level playing field D. stable workforce, variable work hours E. variable workforce, stable work hours

D

You have just determined the actual number of workstations that will be used on an assembly line to be 8 using the assembly-line balancing procedure. The cycle time of the line is 10 minutes and the sum of all that tasks required on the line is 60 minutes. Which of the following is the correct value for the resulting line's efficiency? A. 0.830 B. 0.923 C. 0.450 D. 0.750 E. 0.674

D

You have just used the network planning model and found the critical path length is 30 days and the variance of the critical path is 25 days. The probability that the project will be completed in 33 days or less is equal to (2 decimal accuracy) A. 0.12 B. 0.27 C. 0.60 D. 0.73 E. 0.55

D

T or F: The assembly-line balancing procedure determines the precedence relationships of manufacturing tasks.

F

T or F: The closer the customer is to the customer order decoupling point the longer it takes the customer to receive the product.

F

T or F: The critical path of activities in a project is the sequence of activities that form the shortest chain in a project network of activities.

F

T or F: The efficiency of an assembly-line is found by a ratio of the sum of all task times divided by the cycle time.

F

T or F: The objective of the aggregate operations plan is to insure that the marketing and sales plans are realistic.

F

T or F: The operations plan should not be updated but should be followed precisely until the longest-term planning horizon has passed.

F

T or F: The term "queue discipline" involves the art of controlling surly and unruly customers who have become irritated by waiting.

F

T or F: The time needed to respond to a customer's order is called the customer response time.

F

T or F: You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project's costs. Costs associated with transferring the workers are an example of project indirect costs.

F

T or F: Little's law can be thought of as a relationship between units and time.

T

T or 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.

T

T or F: One of the assumptions made using CPM is that project activities can be identified with clear beginning and ending points.

T

T or F: One trade-off illustrated by the product-process matrix is between flexibility and cost

T

T or F: Project management software available today combines CPM and other scheduling aids, like Gantt charting, to aid in tracking progress of project completion.

T

T or F: Services often take the form of repeated encounters involving face-to-face interactions.

T

T or 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.

T

T or F: The aggregate operations plan variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.

T

T or F: 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.

T

T or F: The closer the customer is to the customer order decoupling point the more quickly the customer receives the product.

T

T or F: The critical path in a project is that sequence of activities that consume the longest amount of time in a project network of activities.

T

T or F: The project indirect costs associated with a project include overhead, facilities, and resource opportunity costs.

T

T or F: The service-system design matrix identifies six forms of service encounters.

T

T or F: The term "assembly line" refers to progressive assembly linked by some material handling device.

T

T or F: The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.

T

T or F: There are different queuing models to fit different queuing situations.

T

T or F: Upper level management must decide between pure, functional, and matrix structures as ways to organize projects.

T

T or F: Yield management is an important tool that can be used to shape demand patterns.

T

T or F: The "service blueprint" is a classification of services.

F

A firm fills its customer's orders from finished goods inventory. It is a: A. make to stock firm B. make to order firm C. assemble to order firm D. engineer to order firm E. customer service firm

A

According to the text, the main differences separating Amazon from other on line retailors are all of the following except A. you can return products. B. can be your personal shopping assistant C. website and the gigantic list of product offerings D. multi-tiered strategy any one can sell anything E. you can setup website with links to amazon and get paid for click throughs

A

Assuming a 24 hour operation in a warehouse, and an arrival following Poisson distribution with mean rate of 36 per day and service (unloading using a single bay) following exponential with a rate of 48 trucks per day, answer the following question. What is the expected number of trucks in the system? A. 3 B. 2 C. 1 D. 4 E. cannot find it

A

Customers arrive at a common queue at the coffee station with two identical coffee machines in a busy mall at the rate of 48 per hour, following Poisson distribution. Each customer mixes his or her specialty coffee taking 2 minutes on an average following an exponential process. What is the expected number of customers in the system at this coffee station? A. 4.444 B. 2.844 C. 2.444 D. 3 E. infinity

A

From an operational perspective yield management is least effective under which of the following circumstances? A. the product can be kept to be sold when demand is stronger B. demand can be segmented by customer C. demand is highly variable D. fixed costs are high and variable costs are low E. the product can be sold in advance

A

In conducting aggregate operations planning there are a number of required inputs. Which of the following are inputs considered external to the firm? A. competitor behavior and economic conditions B. raw material availability and inventory levels C. subcontractor capacity and current workforce D. market demand and inventory levels E. economic conditions and current physical capacity

A

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? A. chase B. stable workforce, variable work hours C. meeting demand D. minimizing inventory E. level

A

For an activity in a CPM analysis the early finish time is 20 and the late finish time is 20. Which of the following statements is true? A. The slack for this activity is 20 B. The activity is on the critical path C. The activity's late start must happen before its early start D. The duration of this task is zero E. The duration of this task is 20

B

For an activity in a CPM analysis, the early start time is 8 and the late start time is 10. Which of the following statements is true? A. The duration of this activity is 2 B. The slack for this activity is 2 C. The Early Finish is 10 D. The activity is on the critical path E. The Late Finish is 12

B

Machine breakdown and repair in a twelve-machine factory having one repair mechanic would represent which type of queuing system line structure? A. single channel, multiphase B. Single channel, single phase C. multichannel, single phase D. multichannel, multiphase E. none of these

B

The main purpose of aggregate operations planning is to specify the optimal combination of which of the following? A. inventory on hand and financing costs for that inventory B. workforce levels and inventory on hand C. operational costs and the cash flow to support operations D. the workforce level and the degree of automation E. the strategic plan and the products available for sale

B

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? A. 1,000 B. 600 C. 450 D. 550 E. 100

B

What is a work breakdown structure? A. A structure that is incompatible with the Critical Path Method B. A definition of the hierarchy of project tasks, subtasks, and work packages C. A list of the activities making up the higher levels of the project D. A Gantt chart E. A depiction of the activities making up a project

B

Which of the following is a characteristic that can be used to guide the design of service systems? A. service businesses are inherently entrepreneurial B. Services cannot be inventoried C. even service businesses have internal services D. services are all similar E. quality work means quality service

B

Which of the following is not a suggestion for managing queues presented in the textbook? A. assure customers that the wait is fair and inform them of the queue discipline B. Periodically close the service channel to temporarily disperse the line C. segment the customers D. use humor to defuse a potentially irritating situation E. none of these

B

You have just used the network planning model for a county road resurfacing project and found the critical path length is 40 days and the standard deviation of the critical path is 10 days. Suppose you want to pick a time (in days) within which you will complete the project with 90% confidence level, what should be that time (in days and round to the nearest whole number.) A. 40 B. 53 C. 13 D. 29 E. 45

B

In a project analysis using three time estimates with more than one critical path existing, how does the project manager decide which variances to use in arriving at the probability of meeting the project due date? A. The project manager uses the variances considered most correct. B. The project manager uses the most likely estimate plus the amount of slack time in the project. C. The project manager uses the largest variances in order to understate the probability of on-time completion. D. The project manager uses the smallest variance in order to get the highest probability of on-time completion. E. The project manager averages the variances and uses that.

C

In the service-system design matrix, a face-to-face loose specs service encounter is expected to have which of the following? A. low sales opportunity B. high production efficiency C. low production efficiency D. low degree of customer/server contact E. none of these

C

PERT is an abbreviation for which of the following methodologies? A. Programming and Evaluation Realization Technology B. Process Evaluation and Review Technology C. Program Evaluation and Review Technique D. It is a name, not an abbreviation for anything E. Product Evaluation, Result, and Treatment

C

Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1,440 and the required output per day in units is 2,000? State your answer in minutes per unit of output. A. 0.75 B. 0.55 C. 0.72 D. 0.35 E. 0.89

C

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? A. 8.5 B. 4.7 C. 9.6 D. 6.3 E. 7.3

C

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 100 units, the demand forecast is 1,200, and the necessary safety stock is 20% of the demand forecast, which of the following is the production requirement? A. 1,300 B. 1,200 C. 1,340 D. 1,540 E. 1,500

C

Using the cut-and-try method for aggregate operations planning, we can back calculate beginning inventory if we knew the values of other relevant variables. What should have been the initial inventory in units of demand, if the production requirement in units of product is 900, demand forecast is 1,000, and the necessary safety stock is 20 percent of the demand forecast, Choose the right answer for the beginning inventory. A. 100 B. 1,900 C. 300 D. 500 E. cannot find it

C

A simple project listing of five activities and their respective time estimates are presented below: Activity: A, B, C, D, E, Immediate Predecessor: None, A, A, B & C, D. Time in days: 1, 2, 1, 3, 2 Using CPM, which activities make up the critical path? A. A, D, E B. A, C, B, D, E, C. A, C, D, E, D. A, B, D, E E. None of these

D

From an operational perspective yield management is most effective under which of the following circumstances? A. the customer is a "captive" of the system B. the firm doing yield management is very profitable C. fixed costs are low and variable costs are high D. inventory is perishable E. Demand cannot be segmented by customer

D

A difference between project and continuous flow categories of process flow structures is which two of the following? A. profit per unit B. degree of equipment specialization C. being a virtual factory D. discrete parts moving from workstation to workstation E. the size and bulk of the product

E

A roller coaster ride in an amusement park employs which type of queuing system line structure? A. single channel, multiphase B. none of these C. multichannel, single phase D. multichannel, multiphase E. single channel, single phase

E

According to Little's Law, which of the following can be used to estimate work-in-process inventory? A. process time/cycle time B. process velocity/flow time C. set up time/throughput rate D. value added time/process velocity E. Throughput rate times Flow time

E

Customers arrive at a single self-serve coffee machine in a busy mall at the rate of 20 per hour, following Poisson distribution. Each customer takes exactly 90 seconds to get his or her coffee. What is the expected number of customers in queue at this coffee machine? A. 0.75 B. 0.15 C. 0.80 D. 0.50 E. 0.25

E

Which of the following costs are relevant to aggregate operations planning? A. legal cost B. sunk costs C. fixed costs D. transaction costs E. backordering costs

E

T or F: A car wash is an example of a single channel, multiphase queuing system.

T

T or F: A matrix project attempts to blend properties of functional and pure project structures.

T

T or F: 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.

T

T or F: Accurate medium-range planning increases the likelihood of operating within the limits of a budget.

T

T or F: An example of an assemble-to-order firm is Dell Computer.

T

T or F: An important aspect of service products is that they cannot be inventoried.

T

T or F: An infinite 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.

T

T or F: Costs incurred in hiring, training and laying off personnel are considered relevant aggregate operations planning costs.

T

T or F: Earned value management (EVM) is a technique for measuring project progress in an objective manner.

T

T or F: Engineer-to-order firms will work with the customer to design the product, and then make it from purchased materials, parts, and components.

T

T or F: Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.

T

T or F: If the sum of the task times required to produce a product is 45 minutes and the cycle time for the same product is 10 minutes. Thus, the theoretical minimum number of workstations is 5 using the assembly-line balancing procedure.

T

T or F: In a CPM analysis if you subtract the early start from the late start the result is the activity's slack time.

T

T or F: In a services organization, strategic capacity planning follows process planning.

T

T or F: In the Time-Cost CPM model, cost is assumed to be a linear function of time.

T

T or F: Little's law states that supply chain processes can be regarded as unrelated and thus treated and analyzed separately.

F

From an operational perspective yield management is least effective under which of the following circumstances? A. fixed costs are high and variable costs are low B. the product can be sold in advance C. demand is stable and close to capacity D. demand is highly variable E. demand can be segmented by customer

C

Using the cut-and-try method for aggregate operations planning, we can calculate the ending inventory and then calculate the safety stock as a percent of forecast demand. Suppose that the beginning inventory is 300, the production requirement in units of product is 1,350, demand forecast is 1,500, what is the ending inventory and percent safety stock? A. 450 and 30% B. 200 and 10% C. 150 and 10% D. 300 and 20% E. 150 and 20%

C

When balancing an assembly line, which of the following is not a way to reduce the longest task time below the required workstation cycle time? A. upgrade the equipment B. assign a roaming helper to support the line C. speed up the assembly line transfer mechanism D. split the task between two workstations E. use a more skilled worker

C

Which of the following methods discussed in the text requires generating several alternative aggregate plans? A. production smoothing B. aggregate plan simulation C. cut and try D. graphing and charting E. trial and error

C

You know when you have arrived at the optimal solution in using the Time-Cost CPM Scheduling model analysis when what happens? A. You have run out of crash costs B. You no longer have a linear relationship with costs C. You have reached the minimum total cost D. You have found the critical path E. You have run out of crash time

C

Below are the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the costs include both direct and indirect costs.If you crash this project to reduce the total time by one day what is the total time of the project and total cost? Activity-Immediate Predecessor-Normal Time-Crash Time-Normal Cost-Crash Cost A None 3 2 $200 $400 B A 4 3 $300 $600 C A 1 1 $300 $300 D B & C 3 2 $500 $550 E D 2 1 $500 $900 A. Total time is 12 days, total cost is $2300 B. Total time is 12 days, total cost is $2000 C. Total time is 11 days, total cost is $2350 D. Total time is 13 days, total cost is $1500 E. Total time is 11 days, total cost is $1850

E

Getting an autograph from a famous person might involve standing in which type of queuing line structure? A. single channel, multiphase B. none of these C. multichannel, single phase D. multichannel, multiphase E. single channel, single phase

E

In CPM analysis it is generally expected that the relationship between activity direct costs and project indirect costs will be which of the following? A. Not related B. Fractionally related C. Optimally related D. Positively related E. Negatively related

E

In conducting aggregate operations planning there are a number of required inputs. Which of the following are considered inputs internal to the firm? A. market demand and subcontractor capacity B. inventory levels and economic conditions C. competitor behavior and current workforce D. current physical capacity and raw material availability E. current physical capacity and current workforce

E

Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7, 4, 7, 8, 9, 4, 3, and 6 minutes, and the cycle time is 8 minutes? A. 4 B. 5 C. 8 D. 2 E. 6

E

Which of the following is not a basic type of process structure? A. assembly line B. work center C. manufacturing cell D. continuous process E. product-process matrix

E

You have the following time and cost information below for use in a Time-Cost CPM Scheduling model. What are the three costs per unit of time to expedite each activity? Activity-NormalTime-CrashTime-NormalCost-CrashCost A 3 2 $400 $600 B 5 3 $600 $1200 C 4 1 $300 $1500 A. A = $100, B = $200, C = $400 B. A = $200, B = $200, C = $200 C. A = $300, B = $200, C = $300 D. A = $100, B = $400, C = $300 E. A = $200, B = $300, C = $400

E

T or F: A constant arrival rate is more common in productive systems than a variable arrival rate.

F

T or F: A make-to-order firm will work with the customer to design the product, and then make it from purchased materials, parts, and components.

F

T or 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.

F

T or F: A work breakdown structure is used in project management but it is not used when the critical path method is involved.

F

T or F: Aggregation in sales and operations planning is by groups of customers on the supply side and by product families on the demand side of the firm's supply chain.

F

T or F: An event unit package is a subdivision of a project.

F

T or F: Gas stations, loading docks, and parking lots have infinite potential length of lines for their respective queuing systems.

F

T or F: 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.

F

T or F: Poka-yoke is roughly translated from Japanese as "quality management."

F

T or F: Subcontracting is viewed as a risky strategy because the firm may lose control of product design and pricing.

F