Compentency Exam - Op Management
Using a three period moving average what is the forecast for week 7?
27
At the end of period 5 what is the mean absolute deviation (MAD) equal to?
4.40
Using exponential smoothing for the forecasting technique what is the forecast for week 15 if the forecast for week 14 was 45 units, the actual demand for week 14 was 50 unites and smoothing constant (a) = 0.2?
46
Which of the following statements about ABC analysis is FALSE?
ABC Analysis is based on the presumption that all items must be tightly controlled to produce important cost savings
In project crashing an attempt is made to shorten the duration of a project by shortening which of the following activities?
Activities with zero slack
___________ is medium-term capacity planning with a time horizon of two to eighteen months
Aggregate production planning
Henry Ford's assembly line is an example of
All of the above
Supply chain management includes
All of the above
The costs of quality include
All of the above
Which of the following would be characteristics of supply chain management
All of the above
Which of the following is not a demand component in a time series?
Alpha
"Standardized option modules are manufactured according to forecast, a specific combination of package of modules is assembled after an order is received" is
Assemble-to-order
The reorder point is defined as
Average demand during the lead time plus safety stock
Which of the following is NOT an accounting category of inventories
B items
Which of the following is NOT an example of an external factor influencing demand?
Backlogs
Just in time is a philosophy that applies to
Both goods production and service production
Which of the following is NOT a medium term method of adjusting capacity?
Building a new plant
The concept of overlapping activities in product and process development is called
Concurrent engineering
Compared to good production, service production usually involves more
Consumer participation in production
In this type process the flow never stops
Continuous
A key feature in TQM is
Continuous improvement
Two basic types of generic planning strategies are
Cost leader and differentiation
Concurrent engineering makes special use of
Cross-functional teams
A forecasting method that protects the anonymity of respondents is
Delphi method
With dependent demand inventory control, demand in a given week is
Dependent on the production schedule established by operations
Concurrent engineering is an approach used to _____
Develop new products and services
In the periodic review system, the quantity ordered is the
Difference between the available inventory and the target inventory level
Which of the following is not a general dimension of service quality
Durability
A good technique to forecast short-term requirements for individual products would be
Exponential smoothing
Materials requirements planning does not require data on
Forecast errors
The quality function deployment process involves
Four phases, including house of quality
Which of the following statements is/are true?
I,II, and III are all true
Benchmarking in quality management means
Identification of superior performance in other organizations
Which of the following is NOT an obstacle to JIT implementation
Implementation of materials requirements planning in the organiztion
Which of the following is NOT a current trend in manufacturing operations?
Increased emphasis on inspection by using a special inspection department
Crashing a project means
Incurring the costs necessary to complete a project sooner
The value chain is made up primarily of
Individual value activities as the building blocks of competitive advantage
Which of the following is NOT associated with manipulation of product or service demand?
Inventories
The economic order quantity will be greater if the
Inventory carrying charges are reduced
The moving average is an appropriate forecasting technique for
Inventory management of individual products over a three month period
A JIT approach
Involves a smooth production flow
Which of the following is NOT an EXTERNAL input to the production planing environment?
Labor and machine standards
Which of the following is not required for JIT production
Large production lot sizes
With modern logistics systems we do not usually seek
Large safety stocks
The Delphi method is an appropriate forecasting technique for
Long range capacity planning for a factory
The critical path is the
Longest time path through a project network
JIT systems may be associated with
Lot sizes of one unit
In the chase strategy, we focus primarily on
Making planned production equal to planned sales
PERT/CPM is used to __________
Manage projects
____________ is the MRP input detailing which end items are to be produced, when they are needed, and in what quantities
Master production schedule
Which of the following is a production system that was specifically designed to handle dependent demand inventory items
Materials requirements planning
Which of the following is the closest to the objectives of aggregate planning?
Minimizing the total of the cost of changes in the production level plus the cost of carrying inventory
Compared to the chase strategy, the level strategy typically involves
More inventory carrying charges
In exponential smoothing, if we have an alpha of 1.0, the new forecast will equal the
Most recent sales
In JIT production, we follow a rule that says:
No pull signal, no production
Compared to a job shop, a line process typically involves
None of the above
The reorder point method refers to:
None of the above
Operations Management is really nothing but
None of the above statements is strictly correct
Freight consolidation, the practice of combining several smaller shipments into one larger shipments into one larger shipment, is effective
On both inbound as well as outbound shipments
Those strategic objectives for which operations holds or shares responsibility for are termed
Operations competitive priorities
Which of the following is not a component of inventory carrying costs?
Ordering costs
Concurrent engineering necessarily involves
Overlapping activities in product and process development
Customers interface with the operating processes in the _______ logistics component
Physical distribution
Which of the following is NOT an input to Materials Requirement Planning
Planned order releases
Which of the following is NOT a logistics system component
Product design
In the agregate, with the level strategy typically involves:
Production is level
A contractor who specializes in custom built homes utilizes the _____ type of manufacturing
Project
Project management techniques are not helpful in
Project management techniques are helpful in all of the above
The operations competitive priorities do no include
Promotion
Which of the following statements regarding materials and inventory management in JIT is FALSE
Purchasing agreements are relatively short-term when JIT methods are adopted
Production rates or work force levels are adjusted to match demand requirements over the planning horizon when a _______ strategy is used
Pure chase
When we focus on building quality into a product, that is called
Quality assurance
A technique for translating customer needs and requirements into the language of design and manufacturing engineers is called
Quality function deployment
In the ABC approach to inventory control, we seek to
Reduce overall inventory and the overall control effort while improving service
A key requirement in implementing JIT systems is to
Reduce setup times
Which of the flowing is NOT a motivation for adopting JIT systems?
Reduction in productivity
Which of the following is NOT a judgmental method of forecasting
Regression models
Compared to the periodic review system, the reorder point system
Require less safety stock
Which of the following operations is NOT typical of warehousing
Sell goods
The random component of demand is
Short erratic movements that follow no discernible pattern
The time that an activity can be delayed without delaying completion of a project is called the
Slack time
A service is a perishable commodity that generally cannot be
Stored
Which of the following would NOT ordinarilly have independent demand
Subassemblies
The connected series of value activities that is concerned whit planning, coordinating and controlling materials, pars and finished goods from suppliers to the final customer:
Supply chain
Variability (ups and downs) in production volumes is not caused by
TQM
Slack is defined as
The amount of time an activity is delayed without delaying a project
__________ is (are) the source of product structure information in an MRP system
The bill of materials file
In the aggregate, level inventories are characteristic of
The chase strategy
A good technique to forecast the long term dollar volume of a company would be
The delphi method
To bring together the voice of the customer and the voice of the engineer, we might employ
The house of quality
The strategic quality management phase of the quality movement is most closely reflected by
The idea that quality is a competitive opportunity
Which of the following is not an assumption underlying economic order quantities
The lead time is variable
In single exponential smoothing, if you let the smoothing constant be zero,
The new forecast will equal the old forecast
A principal objective of an economic order quantity is to reduce, on an annual basis,
The sum of total ordering and carrying costs
Time series forecasts are based on assumption that
The time-related patterns of the past will be repeated in the future
The trend component of demand is
The upward or downward movement over time
A simple moving aerage is an example of
Time-series forecast
While continuous improvement is an important general principle, it is most specifically a part of
Total quality management
A method for comprehensively analyzing the costs of each manufacturing step with the goal of cost improvement is known as:
Value analysis
Compared to an intermittent process, a line process typically has more
Volume
In the reorder point system, stock is oredered
When the reorder point is triggered
The term mean absolute deviation (MAD) refers to
a measure of forecast accuracy
X-bar, R, and p chart are used to ________
control the quality of goods and services produced
Simple exponential smoothing is technique used to __________
forecast the demand for a product
Which of the following does NOT favor the importance of effective inventory
inventories CANNOT be used as a major competitive weapon
Which of the following would NOT be considered a motive for a firm to hold invnetories
minimize holding costs
