Chapter 5 Master
The crash-cost per day (or other time unit) is calculated using which of the following formulas?
(CC - NC) / (NT - CT)
Gantt charts show which of the following? -resources -project budget -amount of time -sequence of activities
-Amount of time -Sequence of activities
A specific event that should be reached at a certain point in time is often referred to as? -project milestone -work package -functional project -task
-project milestone
Alliance & Partnership during project execution involves activities such as (select all that apply) -technology upgrades -selecting carriers -outsourcing major activities -selecting new partners
-selecting carriers -outsourcing major activities -selecting new partners
A statement of work (SOW) should include (select all that apply) -the number of employees that will be required -work to be completed and proposed schedule -competition steps or milestones -budget performance measures
-work to be completed and proposed schedule -competition steps or milestones -budget performance measures
Which of the following is a term used to refer to pieces of work that consume time?
Activity
False
An improvement in quality must increase costs
Which of the following is a general type of project?
Derivative, Platform, Breakthrough
Time-cost model
Extending the critical path model to consider the trade off between activity time and activity cost is known as the
Logistics
In which part of a lean supply chain would you expect to see lean concepts applied to the movement of materials through the system?
False
Individual products are less accurate than families
Which of the following is NOT a general type of project?
Innovative
True
MRP is generally used for items with dependent demand.
25%
Most retailers estimate that annual inventory carrying costs equals _____ of what is paid for the product.
If the desired completion time for a project (D) is less than the expected completion time (T^E), the value of Z will be
Negative
A work package includes which of the following elements?
Performance measures, description of what is to be done, and start and completion times for a group of activities.
Which project organization structure uses a self-contained team working full time on a single project?
Pure
True
Service blueprinting is a process analysis technique that focuses on customers and provides interaction with customers
six
Short-range planning covers a period from one day to _____ months.
true
Simple exponential smoothing lags changes in demand
True
Simple exponential smoothing lies changes in demand
True or false: A benefit of using three time estimates is that it allows you to estimate whether or not a project will be done by a certain date.
True
Social
Which dimension of the triple bottom line seeks to benefit its employees, the local community, and other entities that are impacted by the firm's existence?
ISO 9000
Which is the ISO certification regarding quality management requirements in business-to-business dealings?
third party
Which is the best form of ISO certification?
manufacturing cell
Which layout format groups machines to work on products that have similar processing requirements?
Team members are less concerned about their future employment after the project is completed, communication between functional areas is enhances ad resource duplication is minimized
Which of the following are advantages of the matrix project structure?
A valuation of each activity, a project plan that identifies activities to be accomplished and predefined metrics that quantify the accomplishment of work.
Which of the following are features of an earned value management (EVM) implementation?
Project managers may "hoard" resources for their own project.
Which of the following is a disadvantage of the matrix project structure?
Which of the following is not a resource considered in project management? -materials -equipment -place -people
place
Which of the following is not a motivation for using a late start schedule?
postponing the start of the entire project
All of the following are types of project organization structures except: -process -pure -matrix -functional
process
A specific event that should be reached at a certain point in time are often referred to as?
project milestones
The variance of an activity's completion time requires knowledge of
the optimistic time and the pessimistic time
A project where all members of the team work on the project full time is an example of which organizational structure? -matrix -process -functional -pure
pure
If you are part of a self-contained project team working full time on a project, you are most likely experiencing the ____ project structure
pure
If you are part of a self-contained project team working full time on a project, you are most likely experiencing the ________ project structure
pure
Which project organization structure uses a self-contained team working full time on a single project -pure project -matrix project -functional project
pure
When there is leeway in when an activity can start, this is referred to as
slack time
A schedule that completes the project and all its activities as soon as possible is known as an early ___ or early ___ schedule
start; finish
A ____ ___ ___ Is a written description of the objectives to be achieved during a project.
statement of work
What term best describes the written description of the objectives to be achieved in a project -statement of work -project milestones -work package -work breakdown structure
statement of work
When breaking down a project into smaller elements, what term is used to describe the subdivisions?
task and subtask
functional project structure
team members do not report to a dedicated manager, but remain part of their functional units.
The critical path is -the longest chain of activities in a project -the shortest chain of activities in a project -determined by the total time to complete all project activities -a breakdown of activity times
the longest chain of activities in a project
Activity A is the predecessor for Activities B and C. When determining the late finish time for Activity A, you select
the smaller of the late starts for B and C
A work package includes which of the following elements? -performance measures -description of what is to be done -starting and completion times for a group of activities -the projects currently active at the firm
-Performance measures -Description of what is to be done -Starting and completion times for a group of activities
Milestones for a project can include (select all that apply) -chart that displays project tasks -production of a prototype -prototype testing -competition of design
-Production of a prototype -Prototype testing -Completion of design
True
3 main inputs of MRP-bill of materials, master schedule, and inventory records file
When calculating the expected completion time, the most likely time is weighted ___ times more than the optimistic and pessimistic times
4
Motivational impacts due to fear of being laid off during time of low production.
A chase strategy can create what major concern?
Super Bill of Materials
A company producing widgets only needs Part A for 40% of the widgets built. This company is likely using what type of bill-of-material?
third party logistics company
A company that manages all or part of another company's product delivery operations is known as which of the following?
focused factory
A facility designed around a limited set of production objectives is called a
False
A financially driven reason for outsourcing is that it can turn variable costs into manageable fixed costs
make to stock
A firm fills its customers from finished goods inventory it is a
a company's strategic strategy
A firm should have a mix of projects that best support
True
A firm that controls most of its activities in the supply chain is said to be vertically integrated
analyze
A fishbone diagram is part of a six sigma quality improvement process might be found in which DMAIC category
it is possible to have multiple critical paths
A project has how many critical paths?
pure project
A project where all members of the team work on the project full time is an example of which project organizational structure?
start and finish
A schedule that completes the project and all its activities as soon as possible is known as an early _ or early _ schedule.
the smaller of the late starts for B and C
Activity A is a predecessor for Activities B and C. When determining he late finish time for activity A, you select
True
Cross docking definition-break down large shipments into small shipments for local delivery
True
Cross docking is used in warehouses where large shipments can be broken down into small shipments for local delivery. True/False
setup costs
Delta Company uses special equipment and personnel to changeover production runs quickly. The costs associated with this changeover approach are considered
Efficiency
Doing something at the lowest possible cost is known as
aggregate
During the sales and operations planning process, both marketing and operations focus on the _____ product and sales volumes.
value
Earned _ management combines measure of scope, schedule and cost for evaluating project progress.
To show the amount of time associated with an activity, as well as the sequence of activities, a project manager could use a ______ chart
Gantt
amount of time and sequence of activities
Gantt charts show which of the following?
True
In the past half century, while the number of people employed in manufacturing has decreased slightly, the output per worker has increased significantly.
Which of the following is NOT a major project category?
Inventory control
F
It is not possible to have a process change project that accommodates a large amount of change.
A project has how many critical paths? -there are always two -it is possible to have multiple critical paths -one and only one -the critical path isn't necessary for every project
It is possible to have multiple critical paths
False
Lean production requires a push and pull system of inventory
integrated
Lean production requires that activities be __________________ to achieve production using minimal inventories.
caused by items being withdrawn from inventory in lots
Lumpiness, or the tendency for uneven production, further down the creation sequence is
production scheduling
One purpose of inventory is to provide flexibility in ___ , this can increase lead times but reduce setup costs.
Operation and improvement of systems that create the firm's primary products, and design of delivery systems
Operations and supply chain management includes which of the following activities?
Operations effectiveness
Performing activities in a manner that best implements strategic priorities without incurring excess costs is known as
Identity the type of project that primarily involves fundamental improvements to existing products -breakthrough project -innovative project -platform project -derivative project
Platform project
development of demand forecasts
Point-of-sale (POS) data would be used in which step of the CPFR process
All of the following are types of project organization structures except
Process
True
Product storage is an example of waste in the sense that no value is added
Stable workforce - variable work schedule
Production output is varied by changing work schedules to include overtime (when more production is needed) and idle time (when less production is needed).
workforce size, inventory, and size of production facility
Production planning strategies involve trade-offs among
Chase Strategy
Production rate is matched to order rate by hiring and firing employees
Motion
Production system identifies which of the following types of waste to be eliminated
outputs to inputs
Productivity is defined as the ratio of
Rank the following terms in regards to a project from the highest level down to the lowest -subtask -work package -project -task -program
Program Project Task Subtask Work package
sales and operations
The planning process that helps firms provide better customer service, shorter lead times, and allows top management to get a handle on the business is known as ____ planning.
False
The term conformance quality refers to the relative level of performance of a product as compared to competing product
production/production rate
The workforce level can be determined by which calculation?
True or false: When all the activities are completed, the project is finished
True
True or false: one advantage of pure project structure is that the project manager has full authority over the project
True
True or false: the hierarchy of project tasks, subtasks, and work packages is known as a work breakdown structure
True
True or false: the process change area of projects accommodates activities such as new equipment purchases or upgrading current process
True
True
True or false: Operations effectiveness is related directly to the costs of doing business.
lean
What type of production focuses on eliminating as much waste as possible?
project managers may "hoard" resources for their own projects
Which of the following is a disadvantage of the matrix project structure?
project team members may be worried about their employment after completing a project
Which of the following is a disadvantage of the pure project structure?
Centroid Method
Which of the following is a plant location methodology for locating a facility based on distances and volumes of goods
TL 9000
Which of the following is a quality management standard developed specifically for the telecommunications industry?
Specificity
Which of the following is a sourcing term to describe how common an item is and/or how many substitutes may be available?
activity
Which of the following is a term used to refer to pieces of work that consume time?
project
Which of the following is defined as a series of jobs usually directed toward some major output and requires a significant period of time to perform?
short; medium and long
Tactical forecasts are _________ term, while strategic forecasts are _____________ term.
When breaking down a project into smaller elements, what terms are used to describe the subdivisions? -activity and tasks -task and menial tasks -task and subtasks -activity and gantt charts
Task and subtasks
one type of operation
Workcenters are often focused on
level
____ strategy is executed by maintaining a stable workforce and producing output at a constant rate.
rough cut
_____ aggregate plan may be further modified by mathematical methods to develop a final and/or lower-cost plan.
dollar value
_______ cost implication schemes divide inventory items into 3 groupings what are these grouping usually
A firm should have a mix of projects that best support -choosing the project that requires the least amount of time to complete -HR policies for hiring new employees -the operations manager's vision -a company's strategic strategy
a company's strategic strategy
platform
a type of business that does not own inventory, they merely provide a means for connecting parties interested in conducting business.
Which of the following is a term used to refer to pieces of work that consume time? -package -bundle -target -activity
activity
Gantt charts show which of the following?
amount of time and sequence of activities
time fences
are a company's attempt to provide a controlled window of opportunity to make changes to the master production schedule.
o Cost quality, delivery speed, delivery reliability, and flexibility
competitive dimensions of a firm
Shortening the duration of an activity is known as
crashing
A schedule that lists all activities by their early start times is a(n)
early start schedule
When calculating the critical path for a three time estimate project, you use the ___ as the activity duration time.
expected time
When a project is housed within a functional division, such as manufacturing, it is called a _______ project -pure -functional -process -matrix
functional
In a network diagram, the activities that lead directly to another activity are known as ___ predecessors
immediate
If a delay of an activity delays the entire project, then this activity
is on the critical path
All of the following are constraints addressed in project management except: -cost -people constraints -technical -time constraints
people constraints
Matrix
project structure minimizes the duplication of resources
4 days
If the optimistic estimate of an activities completion is 3 days and the pessimistic estimate is 15 days, what is the estimated variance (o)^2 of the activities completion time?
Which of the following attributes are used to define a project?
- Requires a significant time period to perform - Directed toward some major output - A series of related jobs
Which of the following are advantages of the matrix project structure?
- Resource duplication is minimized - Team members are less concerned about their future employment after the project is completed - Communication between function areas is enhanced
Which of the following is a general type of project? -breakthrough -platform -permanent -derivative
-Breakthrough -Platform -Derivative
inventory
Major information system activities for planning logistics involve allocating resources, managing _______ levels, scheduling, and order tracking.
Which of the following is defined as a series of jobs usually directed toward some major output and requires a significant period of time to perform? -pure project -project -crashing -project management
Project
bullwhip effect
The effect of the lack of synchronization amongst supply chain members is referred to as which of the following
economies of scale
The idea that as a plant volume increases, the average cost per unit drops is known as
false
The triple bottom line relates to the economic employee and customer impacts of a firms strategy
True
True or false: Distribution and logistics is typically involved in sales and operations planning.
True
Variation in production systems that is caused by factors that can be clearly identified is called common variation?
outsourcing or shared capacity
What are the two strategies an organization can use when adding in-house capacity is not cost effective?
Other Product-Specific Criteria
What competitive dimension relates to environmental impact?
slack time
When there is leeway in when an activity can start, this is referred to as
flow and run charts
Which of the following tools can be used in the Define step of the DMAIC cycle?
Matrix
Which projects organizational structure blends properties of functional and pure strategies?
True
A major challenge in inventory management is to maintain a balance between inventory investment and customer service
Maintain independence of operations
A supply of materials at a work center allows workers to
Activity-system maps
A tool that shows how a company's strategy is delivered through a set of tailored activities is called a(n)
12
Activity D will take 3 weeks to complete and has two predecessors, B and C. Activity B has an early finish time of 12 weeks. Activity C has an early finish of 10 weeks. What is the early start time of activity D?
low
A generic pizza box that can be used by multiple pizza shops is an example of a product with ____________ specificity.
dissimilar
A manufacturing cell is generally made up of ___________ machines.
Benchmarking
A process in which one company studies the processes of another company for best practices is known as
False
A product will always be in the same stage of its product life cycle in all parts of the world regardless of the country
produce buffer inventories
A production manager may ___________ to prevent bottlenecks and ensure employees always have work to do.
tracking the flow of material through the system
A production process map is built by
It is possible to have multiple critical paths
A project has how many critical paths?
the difference between expected excellent performance and the current costs.
A purist view of the cost of quality is one that references all costs until 100% perfection is attained. A less stringent viewpoint is defined as
late start
A schedule that delays each activity as long as possible without delaying the overall project completions is known as a __ schedule.
decision tree
A schematic model of the sequence of steps in a problem and the conditions and consequences of each step is called a
transportation method of linear programming
A special linear programming method that is useful for solving problems involving moving products from several sources to several destinations is known as which of the following?
Project Milestone
A specific event that should be reached at a certain point in time is often referred to as?
Project Milestone
A specific event that should be reaches at a certain point in time are often referred to as?
proposed and completed schedule, budget performance measures, and completion steps or milestones.
A statement of work (SOW) should include:
Description of what is to be done, performance measures and starting and completion times for a group of activites
A work package includes which of the following elements?
False
ABC analysis classifies inventory items into three groups based on annual units or quantities used
failure and appraisal
According to a rule of thumb, for every dollar that you spend in prevention, you can save $10 in what type(s) of costs?
air
According to the Logistics-System Design Matrix, which of the following modes of transporting products is the fastest but most expensive?
immediate predecessors
Activities that need to be completed immediately before an activity are?
net
After finding gross requirements, the next step in the MRP explosion process references inventory on hand and scheduled orders to calculate ___ requirements.
True
Aggregate planning occurs over the medium or intermediate future of three to 18 months
Customers
Aggregation on the demand side is done by groups of
people constraints
All of the following are constraints addressed in project management except:
process
All of the following are types of project organization structure except
process
All of the following are types of project organization structures except:
$100 per day
An activity has the following costs and durations. Calculate the crash cost per day. Normal cost - $1,000 Crash cost - $1,200 Normal duration - 5 days Crash duration - 3 days
modular
An item that can be produced and stocked as a subassembly often uses a ___ bill-of-materials for planning
decreasing costs until a minimum is reached, followed by increasing costs
As production volume increases, a system experiencing economies of scale will observe
True
Assembling to order means moving the customer order decoupling point from finished goods to components
time buckets
At any point in time, an MRP system can access the status segment of the inventory record according to specific time periods commonly known as
labor
Basic production costs consist mainly of charges related to
a forecast is consistently too high or too low
Bias errors occur when _____.
perceived quality
Brand name recognition is an example of which dimension of quality?
rough cut aggregate plan
By simulating various master production schedules, and calculating corresponding capacity and labor and equipment requirements, one is developing a(n)..
independent
Campbell's Soup makes products for Kroger and other grocery stores based on sales to the final consumer. This inventory management environment is characterized as ________ demand.
True
Capacity can be defined as the amount of availability for inputs relative to the requirements for output over time
Three time dimensions (short, intermediate and long)
Capacity has a time dimensional aspect for operations and supply chain management. A manager must consider capacity planning in how many time durations?
capacity cushion
Capacity in excess of expected demand is known as
True
Constant WIP aid input/output control by limiting the amount of work in work center or production floor
True
Cost incurred in hiring training and laying off persons are considered relevant aggregate operations planning costs
manufacturing manager
Cost of quality (COQ) is a primary function for the
provides a method for evaluating the relative success of a project at a point in time
Earned value management, when properly applied, provides:
time-cost model
Extending the critical path model to consider the trade-off between activity time and activity cost is known as the
True or false: Earned value management (EVM) can only evaluate the success of a project at the end of the project
False
True or false: There are relatively few project management software options for practitioners.
False
True or false: Typically, a task is performed by multiple groups or organizations
False
False
For a location decision, labor productivity may be important but low wage rates are more important
True
Forecast of individual products tend to be less accurate than forecasted product families
False
Forecasts of individual products tend to be more accurate that forecasts of product families
sequence of activities and amount of time
Gantt charts show which of the following?
temporary
Hiring ______ employees is a way to avoid the costs of training and laying off personnel.
True
Hiring, training, and laying off are relevant costs
3.4
How many defects per million units are permitted to meet Six Sigma standards?
environmentally
ISO 14000 addresses the need to be ___ responsible.
Platform Project
Identify the type of project that primarily involves fundamental improvements to existing products.
Available to Promise
If a company has more units in the master production schedule than firm customer orders, the residual is called?
is on the critical path
If a delay of an activity delays the entire project, then this activity
random
If an error cannot be explained by the forecast model being used, it is called ________ error.
multiplying the inverse of inventory turn by 365
If inventory turn is known, days-of-supply is calculated by
negative
If the desired completion time for a project (D) is less than the expected completion time (Te),the value of Z will b
Pure Project
If you are part of a self-contained project team working full time on a project, you are most likely experiencing the ...
pure
If you are part of a self-contained project team working full time on a project, you are most likely experiencing the _ project structure.
functional
In a _ project structure, team members do not report to a dedicated manager but remain part of their functional units.
procurement
In a lean supply chain, which component includes automation for sourcing, bidding, and auctions?
immediate
In a network diagram, the activities that lead directly to another activity are known as _ predecessors
immediate
In a network diagram, the activities that need to be completed directly before another activity are known as _______________ predecessors.
multiplying the number of each choice together
In an assemble-to-order system, the total number of unique combinations possible is calculated by
True
In inventory models a high holding costs tend to favor low inventory levels in frequent replenishment
a period of time
In operations management, capacity must be stated relative to
respect
In the Toyota Production System, ___ for people is exemplified by providing opportunities and job security for employees.
crashing
In the _ process, the duration of an activity is reduced.
batches
MRP systems tend to work best in companies where products are made in ___ using the same productive equipment.
Level Strategy
Maintain a stable workforce and work schedule while using inventory to meet variation in demand.
surveys and interviews
Market research uses data collection methods that are primarily
False
Master production schedule is a sales forecast for family of parts.
Which project organization structure uses team members who are assigned from the functional units and has a dedicated project manager?
Matrix project
Companies should focus on all aspects: social, economic, and environmental
Modern companies need to focus on which aspect of the triple bottom line?
increase
Often, a(n) ___ in productivity occurs as a by-product of efforts to reduce the cost of quality.
product families
On the supply side of the business, aggregate planning is done by
functional
One advantage of the _ project structure is that team members can work on several projects without having to report to multiple project managers.
True
One advantage of the pure project structure is the project manager has full authority over the project.
accurate
One key to a successful budgeting process is a(n) _______ aggregate plan.
continuous replenishment
One program for automatically resupplying customers on a regular basis is
Which of the following is needed to calculate the expected time (ET) of an activity?
Optimistic time (a), Most likely time (m), and Pessimistic time (b)
Marketing
Order winners and qualifiers represent a link between operations and what other business function?
a schedule for when each of these should be produced or ordered.
Outside of determining parts, components, and materials, MRP provides
True
Outsourcing has expanded to become a major strategy in business due to the continuing move toward specialization in an increasingly technological society
Which of the following is not a direct activity cost?
Overhead
Energy Usage
Ownership costs encouraged after the initial purchase and associated with beyond going use of the product or material
All of the following are constraints addressed in project management except:
People constraints
Which of the following is NOT an advantage of the functional project structure? -team members report to a dedicated project manager -the project can benefit from the expertise of a larger number of experts -team members remain connected to their functional area -team members can work on multiple projects
Team members report to a dedicated project manager
True
The four phases of the product life cycle are introduction, maturity, growth, and decline
Logistics-System Design Matrix
The framework used to describe logistics processes is which of the following?
economies of scope
The idea that multiple products can be combined and produced at one facility at a lower cost than they can be produced separately is known as
gantt
To show the amount of time associated with an activity, as well as the sequence of activities, a project manager could use a ___________ chart.
False
True or false: A firm can excel simultaneously on all competitive dimensions
True
True or false: A process is made up of one or more activities that transform inputs into outputs.
True
True or false: An operations and supply chain manager helps firms determine the best way to deliver its goods and services
False
True or false: An operations and supply chain strategy is independent of the corporate strategy.
False
True or false: An order qualifier today will be an order winner in the future
True
True or false: Capacity planning in the services industry has added pressure on location requirements versus that with manufacturing.
True
True or false: Innovative products have higher profit margins than functional products.
True
True or false: Lean production uses a pull system for production.
True
True or false: One advantage of the pure project structure is that the project manager has full authority over the project
True
True or false: Product-service bundling occurs when a firm adds a service activity to a product.
True
True or false: The presence of the customer in a service delivery system increases the volatility of demand.
False
True or false: The process change area of projects accommodates activities such as new equipment purchases or upgrading current process.
True
True or false: When all the activities are completed, the project is finished.
false
True or false: When comparing service processes and manufacturing, the same sources of variation cause waste.
False
Typically, a task is performed by multiple groups or organizations.
current and future states
Value stream mapping is a two-part process that details what?
building inventory during slow periods
What action would be possible in a level strategy plan?
receivables turnover, asset turnover, and net income per employee
What are common measures of efficiency used by Wall Street?
Inventory levels
What are internal factors that influence a production plan?
Centroid Method
What is a technique for locating single facilities that considers the existing facilities, the distances between them, and the volumes of goods to be shipped?
A call center
What is an example of a service business?
waste
What is defined as anything that does not add value from the customer's perspective?
generate access to new markets
What is not an organizationally driven reason to outsource?
Assess the Opportunity
What is the first step in the process for green sourcing?
Value Stream
What is the technique used to identify all of the value adding as well as non value adding processes
free trade zone
What is the term for a closed facility where goods can be brought in without being subject to normal import duties?
Sales and Operations Planning
What process gives senior management a better handle on meeting customer demand over a 3 to 18 month time horizon?
Statement of Work
What term best describes the written description of the objectives to be achieved in a project?
Statement of Work
What term best describes the written description of the objectives to be achieved in a projet?
Work Package
What term describes the group of activities assigned to a single organizational unit?
Kaizen
What term is used to describe a philosophy that focuses on continuous improvement?
Six Sigma
What term refers to the philosophy and methods that companies use to eliminate defects in their products and processes?
Risk Mapping
What tool involves assessing the probability or relative frequency of an event against the aggregate severity of the loss?
value adding activities
What type of activities transform materials and information into something the customer wants?
Strategic
What type of forecast should be used for strategy, sourcing, and location decisions?
innovative
What type of products have a life cycle of just a few months?
functional
What type of products have low profit margins, long product life, and predictable demand?
CPFR
What web-based tool is being used as a means to integrate members of a supply chain?
Straddling
When a company seeks to match the benefits of a successful position and maintain their current position in the marketplace it is attempting a(n) ________________ approach.
second party
When a customer audits its supplier in regards to ISO certification, this is referred to as a ____________ certification
shortage
When a customer cancels an order because of item backlogs, that lost revenue is a(n) ___ cost.
three time estimate
When a single time estimate of an activity completion time is not reliable, you should use
three time estimates
When a single time estimate of an activity completion time is not reliable, you should use
T
When all the activities are completed, the project is finished
task and subtasks
When breaking down a project into smaller elements, what terms are used to describe the subdivisions?
b-a
When calculating activity variance, what is X in the following calculation? (X/6)^2
expected time
When calculating the critical path for a three time estimate project, you use the _ as the activity duration time.
4
When calculating the expected completion time, the most likely time is weighted ____ times more than the optimistic and pessimistic times.
activities on the critical path
When calculating the probability of project completion, you use the sum variances of _ in the denominator.
less
When comparing service processes to manufacturing processes, one would say that they are _________ controllable.
vendor managed inventory
When purchasing items that are highly specified and a long contract is desirable, which sourcing process should be used?
False
When using the low cost strategy for supply chain management, the firm should invest aggressively to reduce lead time.
Pareto charts
Which analytical tool of Six Sigma breaks down a problem into the relative contributions of its components?
pareto charts
Which analytical tool of Six Sigma breaks down a problem into the relative contributions of its components?
random variation
Which component of demand reflects the effects of chance events?
Backordering costs
Which of the following costs are relevant aggregate operations planning
innovative
Which of the following is NOT a general type of project?
Inventory Control
Which of the following is NOT a major project category?
Inventory control
Which of the following is NOT a major project category?
Team members report to a dedicated project manager.
Which of the following is NOT an advantage of the function project structure?
Optimistic time (a), Pessimistic (b) and most likely time (m)
Which of the following is needed to calculate the expected time (ET) of an activity?
overhead
Which of the following is not a direct activity cost?
major
Which of the following is not a from of a matrix project?
warehouse loading factor
Which of the following is not a lot sizing technique used in MRP systems
Postponing the start of the entire project
Which of the following is not a motivation for using a late start schedule?
Place
Which of the following is not a resource considered i n project management?
annualized cost of materials
Which of the following is not included in inventory holding costs
Volume
Which of the following is one of the dimensions depicted on a product-process matrix?
bullwhip effect
Which of the following terms describes the phenomenon of variability magnification as one moves upstream in the supply chain from customer to producer?
Crashing shortens the project by assigning more resources to critical tasks
Which of these statements regarding time costs in CPM networks is true
Pure Project
Which project organization structure uses a self-contained team working full time on a single project?
Matrix Project
Which project organization structure uses team members who are assigned from the functional units and has a dedicated project manager?
Matrix
Which project organizational structure blends properties of functional and pure strategies?
Panel Consensus
Which qualitative forecasting technique is based upon the idea that a group of people with various backgrounds can develop a more reliable forecast than a narrower group?
Delphi Method
Which qualitative technique develops a forecast by polling participants multiple times on expected forecasts?
conformance
Which quality term refers to the degree to which the product or service design specifications are met?
Backordering costs
Which relevant costs are often the most difficult to measure?
Request for Proposal (RFP)
Which sourcing process is used for complex items where there are a number of potential vendors?
Earned value management
Which technique combines measures of scope, schedule and cost for evaluating project progress?
Trade-off
Which term defines when activities are incompatible so that more of one thing necessitates less of another activity?
make to stock
Which type of firm invests in lean manufacturing programs in order to improve customer service levels for a given inventory investment?
required coordinated
Which type of supplier relationship should be used when there is a standardized interface between adjacent tasks?
slushy
Which type of time fence allows for changes to a specific product so long as parts are available?
What term describes the group of activities assigned to a single organizational unit? -activity list -project milestone -work package -work breakdown structure
Work package
Manufacturing
Work-in-process is considered ___ inventory.
Kaizen
___ bursts are specific, short-term projects designed to implement changes to a process.
When three time estimates are used to estimate the activity time, critical path calculation should use the ___ time for each activity.
expected
In a ____ project structure, team members do not report to a dedicated manager but remain part of their functional units
functional
In a _______ project structure, team members do not report to a dedicated manager, but remain part of their functional units
functional
One advantage of the ___ project structure is that team members can work on several projects without having to report to multiple project managers
functional
One advantage of the ________ project structure is that team members can work on several projects without having to report to multiple project managers
functional
Which of the following is NOT a major project category? -process change -research and development -product change -inventory control
inventory control
A schedule that delays each activity as long as possible without delaying the overall project completion is known as a ___ ___ schedule
late start
Which of the following is not a form of a matrix project? -balanced -weak -major -strong
major
The ________ project structure minimizes the duplication of resources
matrix
Which project organizational structure blends properties of functional and pure strategies? -functional -matrix -departmental -pure
matrix
Which project organizational structure minimizes the duplication of resources?
matrix
Which project organization structure uses team members who are assigned from the functional units and has a dedicated project manager? -pure project -matrix project -functional project
matrix project
The foundational principle of earned value management (EVM) is that a true understanding of cost and schedule performance depends upon measuring technical performance ____
objectively
When a single time estimate of an activity completion time is not reliable, you should use
three time estimates
The extension of the critical path model that considers trade-offs between activity times and costs is often referred to as
time-cost models
True or false: one advantage of the pure project structure is that the project manager has full authority over the project
true
Earned ____ management combines measures of scope, schedule, and cost for evaluating project progress
value
What term describes the group of activities assigned to a single organizational unit?
work package
Which of the following are features of an earned value management (EVM) implementation?
• Predefined metrics that quantify the accomplishment of work • A valuation of each activity • A project plan that identifies activities to be completed
variations in the product
Standardization on the product-process matrix refers to
True
TPS (Toyota Production System)
15-20%
The cost of quality has been estimated at what percentage of every sales dollar?
(CC-NC)/(NT-CT)
The crash-cost per day (or other time unit) is calculated using which of the following formulas?
the longest chain o activities in a project
The critical path is
False
The critical path of a CPM analysis is found by locating activities with large slack times
False
The critical ratio rule will prioritize jobs based on importance or value of customers who have placed the orders
The most recent forecast
The exponential smoothing method requires which of the following data to forecast the future
order winner
The feature that actually differentiates one product from the other candidates and is purchased is known as the?
time series analysis
The forecasting technique that uses past demand to predict future demand is known as
Disadvantages of a functional project include (select all that apply) -project tasks are often shortchanged over functional area tasks -team members can be assigned to multiple projects -responses to client needs are slow -motivation is normally weak, focus is placed on unit tasks or other projects
-Project tasks are often shortchanged over functional area tasks -Responses to client needs are slow -Motivation is normally weak, focus is placed on unit tasks or other projects
Which of the following are advantages of the matrix project structure (select all that apply) -team members are less concerned about their future employment after the project is completed -there is enhanced communication between functional areas -resource duplication is minimized -team members report to two bosses, and the functional manager will be listened to first
-Team members are less concerned about their future employment after the project is completed -There is enhanced communication between functional areas -Resource duplication is minimized
If a delay of an activity delays the entire project, then this activity -is normal -is on the critical path -will not affect the overall project -has an incorrect relationship defined in the project
-is on the critical path
Which of the following attributes are used to define a project? (select all that apply) -requires a significant timer period to perform -directed toward some major output -a series of related jobs -has no specific beginning or end
-requires a significant time period to perform -directed toward some major output -a series of related jobs
Rank the steps in the critical path method (CPM) from first to last
1. Identify each activity and its duration. 2. Construct a network showing the precedence relationships among activities. 3. Determine the critical path. 4. Determine the early start/early finish and late start/late finish schedule.
Rank the following terms in regards to a project from the highest level down to the lowest.
1. Portfolio 2. Project 3. Task 4. Subtask 5. Work package
Sort the steps in the crashing procedure from first to last
1. Prepare a CPM-type network diagram 2. Determine the cost per unit of time to expedite each activity 3. Compute the critical path 4. Shorten the critical path at the least cost 5. Plot direct, indirect, and total-cost curves and find the minimum-cost schedule
For a given project, the desired completion time is 35 days. The expected completion time is 30 days and the sum of the variances along the critical path is 16 day. What is the value of Z?
1.25
Which of the following is a disadvantage of the pure project structure -lines of communication are shortened and project decisions can be made quickly -team commitment is high -project team members report to one boss -project team members may be worried about their employment after the project is completed
Project team members may be worried about their employment after the project is completed
True
Quality at the source requires factory workers to become their own inspectors
1. Portfolio 2. Project 3. Task 4. Subtask 5. Work package
Rank the following terms in regards to a project from the highest level down to the lowest.
1. Identify each activity and its duration 2. Construct a network showing the precedence relationships among activities 3. Determine the critical path 4. Determine the early start/ early finish and late start/ late finish schedule
Rank the stems in the critical path methods (CPM) from first to last
a measure of the number of times receivables are collected, on average, during the fiscal year.
Receivables turnover is
1-Prepare a CPM-type network diagram 2-Determine the cost per unit of time to expedite each activity 3-Compute the critical path 4-Shorten the critical path at the point where costs are lowest 5-Plot project, indirect, and total cost curves to find the minimum-cost schedule
Sort the steps in the crashing procedure from first to last.
low;low
Spot purchases have ________ specificity and ________ transaction costs.
False
The "triple bottom line" relates to the economic, employee, and customer impact of a firm's strategy.
True
The 3 main inputs to a MRP system are the bill of materials, the master schedule, and the inventory records file
Objectivity
The foundational principle of earned value management (EVM) is rue understanding of cost and schedule performance depends upon measuring technical performance _
Which of the following is a disadvantage of the matrix project structure? -project managers are held responsible for the completion of their project -team members no longer report to their functional-area manager -parent organization policies are often ignored -project managers may "hoard" resources for their own project
Project managers may "hoard" resources for their own project
Japan
The Malcolm Baldrige National Quality Award was created as a response to the US quality shortfalls compared with which country?
economies of scope
The ability to rapidly and inexpensively switch production from one product to another enables what
Capacity Flexibility
The ability to rapidly increase or decrease production levels, or shift from one product or service to another is known as
precedes
The aggregate operations plan ___ the master schedule.
workforce levels and production rates
The aggregate operations plan is mainly concerned with optimal
Production
The aggregate operations plan's objective is to set _____ rates for the intermediate term, from 3 to 18 months
False
The aggregate planning process usually includes expediting and dispatching of individual finished products
Toyota Production System (TPS)
The benchmark for lean manufacturing is known as the
Synchronizing
The bullwhip effect can be reduced by ___ efforts among members of the supply chain.
Delivery Reliability
The competitive dimension that deals with getting the product to the customer when promised is called
location clustering near high customer traffic flows
The main reason fast food restaurants are often found in close proximity to each other is
ordering costs
The managerial and clerical costs to prepare purchase or production orders are called
end items
The master production schedule is used to plan
subassemblies
The master production schedule typically deals with end items, but can be broken down to __________ if the item is large or expensive
False
The multi factor measure of productivity of the numerator of the ratio
Over 100
The number of companies offering project management software is
best operating level
The output level where average unit cost is minimized is known as the
False
The service system with a high degree of customer contact is less difficult to control than a low degree of contact
lead time
The time required to respond to a customer order is known as
develop a minimum-cost schedule for an entire project and to control expenditures during the project
The time-cost model attempts to...
cost
The time-cost model considered the trade-off between the timerequiered to complete an activity and the _ of that activity
The pessimistic time (b) and the optimistic time (a)
The variance of an activities completion time requires knowledge of
Extending the critical path model to consider the trade-off between activity time and activity cost is known as the
Time-cost model
The early finish time of a task is calculated by ____
adding the early start and duration