OM 302 Midterm
7. A simple CPM network has three activities, A, B, and C. A is an immediate predecessor of B and of C. B is an immediate predecessor of C. The activity durations are A=4, B=3, C=8.
C) The critical path is A-B-C, duration 15.
1. Which of the following technologies could enable a cashier to scan the entire contents of a shopping cart in seconds?
D) RFID
1) The minimum record accuracy required for successful MRP is approximately which of the following?
E) 99%
4. The main difference between PERT and CPM is that:
E) PERT employs three time estimates for each activity.
1. The Japanese concept of a company coalition of suppliers is:
Keiretsu
6. Which of the following tasks within an airline company are related to operations?
A) crew scheduling
10. A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include:
A) lenders. B) suppliers. C) owners. D) employees. E) all of the above. -----
1. Cost cutting in international operations can take place because of:
A) lower taxes and tariffs. B) lower wage scales. C) lower indirect costs. D) less stringent regulations. E) all of the above.
12) Total quality management emphasizes:
B) a commitment to quality that goes beyond internal company issues to suppliers and customers.
13. A firm can effectively use its operations function to yield competitive advantage through all of the following EXCEPT:
B) setting equipment utilization goals below the industry average.
12. Given an actual demand this period of 103, a forecast value for this period of 99, and an alpha of .4, what is the exponential smoothing forecast for next period?
C) 100.6
1. A certain type of computer costs $1,000, and the annual holding cost is 25% of the value of the item. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?
C) 110
13. Given an actual demand this period of 61, a forecast for this period of 58, and an alpha of 0.3, what would the forecast for the next period be using exponential smoothing?
C) 58.9
1) Which of the following is FALSE concerning enterprise resource planning (ERP)?
C) It is inexpensive to implement.
1) What lot-sizing technique is generally preferred when inventory holding costs are very high?
C) Lot-For-Lot
18. ________ expresses the error as a percent of the actual values.
C) MAPE
1) MRP II is accurately described as:
C) Material Resource Planning.
1) A p-chart is appropriate to plot the number of typographic errors per page of text.
false
1) A grill assembly takes 20 washers. Instead of listing these washers separately, they are grouped into a single kit for production. How is the bill of material for the washers classified?
A) "Pseudo" B) Planning
19. Productivity tends to be more difficult to improve in the service sector because the work is:
A) Often difficult to automate. B) Typically labor-intensive. C) Frequently processed individually. D) Often an intellectual task performed by professionals. E) All of the above make service productivity more difficult.
1. Which of the following would NOT be subject to negotiation between a buyer and supplier?
A) Price B) Credit and Delivery Terms C) Quality Standards D) Cooperative Advertising Agreements
1. Which of the following is TRUE regarding vision systems?
A) They are consistently accurate. B) They are modest in cost. C) They do not become bored
1. Which of the following is a function of inventory?
A) To decouple various parts of the production process B) To provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand C) To take advantage of quantity discounts D) To hedge against inflation
19. Which of the international operations strategies involves low cost reductions and low local responsiveness?
A) international strategy
1. Value-stream mapping:
A) is a variation of time-function mapping. B) examines the supply chain to determine where value is added. C) extends time function mapping back to the supplier. D) starts with the customer and works backwards.
11. Current challenges in operations management include all of the following EXCEPT:
A) just-in-time performance. B) rapid product development. C) mass customization. D) empowered employees. E) None of the above are exceptions, i.e., all are current challenges. ------
3. Multinational organizations can shop from country to country and cut costs through:
A) lower wage scales. B) lower indirect costs. C) less stringent regulations. D) lower taxes and tariffs. E) all of the above.
15) The "four Ms" of cause-and-effect diagrams are:
A) material, machinery/equipment, manpower, and methods.
7. Which time-series model below assumes that demand in the next period will be equal to the most recent period's demand?
A) naïve approach
11. What is the most critical phase in product life cycle assessment?
A) product design
4. The two general approaches to forecasting are:
A) qualitative and quantitative.
1. Which of the following are all strategies for improving productivity in services?
A) separation, self-service, automation, and scheduling
20. If two variables were perfectly correlated, what would the coefficient of correlation r equal?
B) -1 C) 1
1) A manager wants to build 3-sigma x-bar control limits for a process. The target value for the mean of the process is 10 units, and the standard deviation of the process is 6. If samples of size 9 are to be taken, what will be the upper and lower control limits, respectively?
B) 16 and 4
14. An activity on a PERT network has these time estimates: optimistic = 1, most likely = 2, and pessimistic = 5. What is its expected activity time?
B) 2.33
1. A production order quantity problem has a daily demand rate = 10 and a daily production rate = 50. The production order quantity for this problem is approximately 612 units. What is the average inventory for this problem?
B) 245
14. The Dulac Box plant works two 8-hour shifts each day. In the past, 500 cypress packing boxes were produced by the end of each day. The use of new technology has enabled them to increase productivity by 30%. Productivity is now approximately:
B) 40.6 boxes/hr.`
13. An activity on a PERT network has these time estimates: optimistic = 2, most likely = 5, and pessimistic = 10. What is its expected activity time?
B) 5.33
5. What refers to looking at a product's life from design to disposal, including all the resources required?
B) A Systems View
10. The critical path for the network activities shown below is ________ with duration ________. Activity Duration Immediate Predecessors A 10 --- B 8 --- C 2 A D 4 A E 5 B,C, D
B) A-D-E; 19
7. The carbon footprint is defined as a measure of total greenhouse gas emissions caused directly or indirectly by what four things?
B) An organization, a product, an event, or a person
1. What term describes a supply chain that is designed to optimize both forward and reverse flows?
B) Closed-Loop Supply Chain
15. Which of the following nets the largest productivity improvement?
B) Decrease input 15%
14. A firm is considering five different product designs. Data concerning the design for disassembly for each of the designs are provided in the table below. Which design appears to be the best environmental design based on revenue retrieval opportunity? Product Design Resale Revenue per Unit Recycling Revenue per Unit Processing Cost per Unit Disposal Cost per Unit 1 $30.00 $12.00 $15.00 $40.00 2 $10.00 $10.00 $3.00 $1.00 3 $5.00 $55.00 $48.00 $10.00 4 $4.00 $2.00 $1.00 $0.50 5 $42.00 $3.00 $8.00 $32.00
B) Design 2
8. What refers to how companies remain in business?
B) Economic sustainability
1. Cycle counting:
B) Eliminates annual inventory adjustments.
1. A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of which of the following?
B) Forward Integration
18. The factor responsible for the largest portion of productivity increase in the United States is:
B) Management.
1. Which sourcing strategy is particularly common when the products being sourced are commodities?
B) Many Suppliers
1) Which lot-sizing technique orders the quantity needed during a predetermined time between orders?
B) Periodic Order Quantity
1. In most manufacturing industries, which of the following would likely represent the largest cost to the firm?
B) Purchasing
1) For the lot-sizing technique known as lot-for-lot to be appropriate:
B) Setup cost should be relatively small.
1. A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributor, the distributor assumes the large size is a trend, not a one-time event. The distributor therefore places an even larger order with the lobsterman. This behavior is the result of which of the following?
B) The Bullwhip Effect
1) Which of the following is true regarding the process capability index Cpk?
B) The larger the Cpk, the more units meet specifications.
1. Service level is:
B) The probability of not stocking out. D) Calculated as the cost of a shortage divided by (the cost of shortage + the cost of overage) for single-period models.
5. A simple CPM network has five activities, A, B, C, D, and E. A is an immediate predecessor of C and of D. B is also an immediate predecessor of C and of D. C and D are both immediate predecessors of E. Which of the following statements is true?
B) There are four paths in this network.
1. An advantage of the fixed-period inventory system is that:
B) There is no physical count of inventory items when an item is withdrawn.
15. Which of the following statements best characterizes delivery reliability?
B) a company that always delivers at the promised time
16) A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. To analyze trends or patterns in these returns, she has organized these complaints into a small number of sources or factors. This is most closely related to the ________ tool of TQM.
B) cause-and-effect diagram
1. As compared to long-range forecasts, short-range forecasts:
B) deal with less comprehensive issues supporting management decisions.
8. The fundamental purpose of an organization's mission statement is to:
B) define the organization's purpose in society.
10. According to our Lecture, which of the following strategic concepts allow firms to achieve their missions?
B) differentiation, cost leadership, and response
1) Statistical process control charts:
B) display upper and lower limits for process variables or attributes and signal when a process is no longer in control.
10) One of Britain's largest children's hospitals working with a Ferrari racing team is an example of:
B) external benchmarking.
18) Poka-yoke is the Japanese term for:
B) foolproof.
4. The term maquiladora is most synonymous with:
B) free trade zones in Mexico.
8. Which of the following fosters specialization and worldwide supply chains?
B) instant communication
17. Three commonly used productivity variables are:
B) labor, capital, and management.
9. What refers to analysis of environmental impacts of products from the design stage through end-of-life?
B) life cycle assessment
2. Forecasts are usually classified by time horizon into which three categories?
B) short-range, medium-range, and long-range
1. ABC analysis is based upon the principle that:
B) there are usually a few critical items, and many items that are less critical.
1. The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. What is the production order quantity for this problem?
C) 184
1) A Cpk index of 1.00 equates to what defect rate?
C) 2.7 defects per 1,000 items
1) If = 23 ounces, σ = 0.4 ounces, and n = 16, what will be the ±3σ control limits for the x-bar chart?
C) 22.70 to 23.30 ounces
16. Suppose that the last four months of sales were 8, 10, 15, and 9 units, respectively. Suppose further that the last four forecasts were 5, 6, 11, and 12 units, respectively. What is the Mean Absolute Deviation (MAD) of these forecasts?
C) 3.5
1) An order for 110 units of Product M has been placed. There are currently 30 units of Product M on hand. Each M requires 4 units of Component N. There are 20 units of N on hand. What are the net requirements for N?
C) 300
19. Weekly sales of ten-grain bread at the local organic food market are provided in the table below. Based on these data, forecast week 9 using a five-week moving average. Week Sales 1 415 2 389 3 420 4 382 5 432 6 410 7 405 8 421
C) 410
1. A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which of the following?
C) Backward integration
20. Two critical path activities are candidates for crashing on a CPM network. Activity details are in the table below. To cut one day from the project's duration, activity ________ should be crashed first, adding ________ to project cost. Activity Normal Time Normal Cost Crash Time Crash Cost B 4 days $6,000 3 days $8,000 C 6 days $4,000 4 days $6,000
C) C; $1,000
1) The local newspaper receives several complaints per day about typographic errors. Over a seven-day period, the publisher has received calls from readers reporting the following total daily number of errors: 4, 3, 2, 6, 7, 3, and 9. Based on these data alone, what type of control chart(s) should the publisher use?
C) x-bar chart
1) Ten samples of a process measuring the number of returns per 100 receipts were taken for a local retail store. The number of returns were 10, 9, 11, 7, 3, 12, 8, 4, 6, and 11. Find the standard deviation of the sampling distribution for the p-bar chart.
E) .0863
1) The statistical definition of Six Sigma allows for 3.4 defects per million. This is achieved by what Cpk index value?
E) 2
1) A Cp value of 1.33 indicates a standard of how many standard deviations (sigmas)?
E) 4
9. The critical path for the network activities shown below is ________ with duration ________. Activity Duration Immediate Predecessors A 2 -- B 4 -- C 6 A,B D 1 A,B E 2 B,C,D
E) B-C-E; 12
1) Effective use of MRP and other dependent demand models does not require which of the following?
E) Cost of individual components
1) What does the POQ interval equal?
E) EOQ / average demand per period
1. Corporate social responsibility involves managerial decision making that considers what three impacts?
E) Environmental, Societal, And Financial
4) What is a set of quality standards developed by the International Organization for Standardization?
E) ISO 9000
15. What does ISO stand for?
E) International Organization for Standardization
1. For which corporate strategy(ies) should supply chain inventory be minimized?
E) Low Cost and Differentiation
1) A process that is assumed to be in control with limits of 89 ± 2 had sample averages for the x-bar chart of the following: 87.1, 87, 87.2, 89, 90, 88.5, 89.5, and 88. Is the process in control?
E) No, two or more consecutive points are very near the lower (or upper) limit.
1. Which category of inventory holding costs has a much higher percentage than average for rapid-change industries such as PCs and cell phones?
E) Pilferage, Scrap, and Obsolescence
7) PDCA, developed by Shewhart, stands for which of the following?
E) Plan-Do-Check-Act
1. Which of the following is an advantage of the postponement technique?
E) Reduction in Inventory Investment
2. Resources held by the public are also said to be held in what?
E) The Common
1) Which of the following is NOT one of the four key tasks that Wheeled Coach insists are necessary for successful MRP implementation?
E) The process must adhere to stringent quality control standards.
1. What term is used to describe the outsourcing of logistics?
E) Third-Party Logistics (3PL)
11. A strategy is a(n):
E) action plan to achieve the mission.
1. ABC analysis divides on-hand inventory into three classes, generally based upon which of the following?
E) annual dollar volume
1) Assignable causes:
E) are causes of variation that can be identified and investigated.
14. The ability of an organization to produce goods or services that have some uniqueness in their characteristics is:
E) competing on differentiation.
5) The philosophy of zero defects is:
E) consistent with the commitment to continuous improvement.
13) Kaizen is a Japanese term meaning:
E) continuous improvement
11. A forecast based on the previous forecast plus a percentage of the forecast error is a(n):
E) exponential smoothing forecast.
2) All of the following costs are likely to decrease as a result of better quality EXCEPT:
E) maintenance costs.
1. Which of the following industries is most likely to have low equipment utilization?
E) restaurants
1) A process is said to be in statistical control when assignable causes are the only sources of variation.
FALSE
1) If the process average is in control, then the process range must also be in control.
FALSE
1) Mean charts and range charts complement one another, one detecting shifts in process average, the other detecting shifts in process dispersion.
TRUE
17) A fishbone chart is also known as a:
D cause-and-effect diagram.
1. Warehouses sometimes perform certain other functions besides storing goods. Which of the following is NOT typically one of those functions?
D) Purchasing
10. What are the 3 Rs for sustainability?
D) Reduce, Reuse, And Recycle
1. Which of the following is NOT one of the four main types of inventory?
D) Safety stock inventory
1) Which of the following statements regarding MRP in services is TRUE?
D) Services such as restaurant meals illustrate dependent demand, and they require product structure trees, bills-of-material, and scheduling.
1. Which one of the following is NOT one of the six sourcing strategies?
D) Short-Term Relationships with Few Suppliers
4. What refers to meeting the needs of the present without compromising the ability of future generations to meet their needs?
D) Sustainability
1. A disadvantage of the "few suppliers" sourcing strategy is:
D) The high cost of changing partners.
1. What is the primary purpose of the basic economic order quantity model shown below?
D) To minimize the sum of setup cost and holding cost
3. Who among the following is associated with contributions to quality control in operations management?
D) W. Edwards Deming
1) It is week 1 and there are currently 20 As in stock. We need 300 As at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 1 week, when and how large of an order should be placed to meet the requirement of 300 As?
D) Week 4, 40 As
12. Which of the following is LEAST likely to be a low-cost leadership competitive advantage?
D) broad product line
1) The number of defects after a hotel room cleaning (sheets not straight, smears on mirror, missed debris on carpet, etc) should be measured using what type of control chart?
D) c-chart
16. The California's Emissions Trading System works on what principle?
D) cap-and-trade
16. Productivity can be improved by:
D) decreasing inputs while holding outputs steady.
3) Which of the four major categories of quality costs is particularly hard to quantify?
D) external failure costs
1. Service blueprinting:
D) focuses on the provider's interaction with the customer.
1. Which of the following phrases best describes product focus?
D) high fixed costs, low variable costs
1. In mass service and professional service, the operations manager should focus extensively on:
D) human resources.
1) For a 3-sigma x-bar chart where the process standard deviation is known, the upper control limit:
D) is 3σ/ above the mean of sample means for a 3σ control chart.
1. Which of the following phrases best describes process focus?
D) low volume, high variety
5. Which of the following are the primary functions of all organizations?
D) marketing, production/operations, and finance/accounting
20. Which of the international operations strategies uses the existing domestic model globally?
D) multidomestic strategy
1) The causes of variation in statistical process control are:
D) natural causes and assignable causes.
1) According to the manufacturing-based definition of quality:
D) quality is the degree to which a specific product conforms to standards.
1. One of the similarities between process focus and mass-customization is:
D) the variety of outputs.
4. Operations management is applicable:
D) to all firms, whether manufacturing or service
1. The crossover point is that production quantity where:
D) total costs for one process equal total costs for another process.
6) Based on his 14 Points, Deming is a strong proponent of:
D) training and knowledge.
2. WBS stands for which of the following project management tools?
D) work breakdown structure
1) Averages of small samples, not individual measurements, are generally used in statistical process control.
true
1. High fixed costs and low variable costs are typical of which approach?
product and mass customization
1. What is a global network of organizations and activities that supply a firm with goods and services?
supply chain
5. Which of the following does NOT represent a valid reason for globalizing operations?
C) reduce responsiveness
1. An assembly line is an example of a:
C) repetitive process.
11. Which of the following statements regarding PERT analysis is true?
D) Only critical activities contribute to the project variance.
1) A material requirements plan contains information with regard to all of the following EXCEPT:
C) the capacity needed to provide the projected output rate.
18. Which of the international operations strategies involves high cost reductions and high local responsiveness?
C) transnational strategy
9. Which of the following techniques uses variables such as price and promotional expenditures, which are related to product demand, to predict demand?
C) weighted moving average
1. Which of the following are the primary functions of all organizations?
D) Marketing, Production/Operations, and Finance/Accounting
6. Which of the following statements regarding critical paths is true?
D) On a specific project, there can be multiple critical paths, all with exactly the same duration.
17. A contractor's project being analyzed by PERT has an estimated time for the critical path of 120 days. The sum of all activity variances is 81; the sum of variances along the critical path is 64. What is the probability that the project will take 130 or more days to complete?
A) 0.1057
1. Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, what is the inventory turnover?
A) 12.50
13. A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it would then be:
A) 14.4 covers/hr.
11) If 1 million passengers pass through the St. Louis Airport with checked baggage each month, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage?
A) 3.4
15. An activity on a PERT network has these time estimates: optimistic = 2, most likely = 3, and pessimistic = 8. What is its expected activity time and variance?
A) 3.67; 1
1) A part that connects two levels should have a distance between the two holes of 4". It has been determined that x-bar and R-charts should be set up to determine if the process is in statistical control. The following ten samples of size four were collected. Calculate the control limits, and determine if the process is in control. Mean Range Sample 1 4.01 0.04 Sample 2 3.98 0.06 Sample 3 4.00 0.02 Sample 4 3.99 0.05 Sample 5 4.03 0.06 Sample 6 3.97 0.02 Sample 7 4.02 0.02 Sample 8 3.99 0.04 Sample 9 3.98 0.05 Sample 10 4.01 0.06
A) 4.029 / 3.977 0.096/ 0 No
1. Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. What is the crossover point between process A and process B?
A) 50 units
16. Which of the following is the best example of competing on low-cost leadership?
A) A firm produces its product with less raw material waste than its competitors do.
1. The fixed-period inventory system requires more safety stock than a fixed-quantity system because:
A) A stockout can occur during the review period as well as during the lead time.
3. Which of the following statements regarding Gantt charts is true?
A) Gantt charts give a timeline and precedence relationships for each activity of a project.
1. Which of the following is an element of inventory holding costs?
A) Housing costs B) Material handling costs C) Investment costs D) Pilferage, Scrap, and Obsolescence
1. Which of the following is true regarding the concept of flexibility?
A) It is the ability to respond with little penalty in time, cost, or customer value. B) It may be accomplished with digitally controlled equipment. C) It may involve modular or movable equipment.
1) Repeated sampling of a certain process shows the average of all sample ranges to be 1.0 cm. The sample size has been constant at n = 5. What are the 3-sigma control limits for this R-chart?
A) LCL = 0, and UCL = 2.115
1) An x-bar control chart was examined and no data points fell outside of the limits. Can this process be considered in control?
A) Not yet, there could be a pattern to the points. B) Not yet, theR-chart must be checked
1. For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual inventory (carrying and setup) cost is $600. What is the inventory carrying cost per unit per year for this item?
C) $3.00
19. If an activity whose normal duration is 13 days can be shortened to 10 days for an added cost of $1,500, what is the crash cost per period?
C) $500
13. Suppose that a firm has made the following computations for its design for disassembly: processing cost per unit = $12.00, disposal cost per unit = $6.00, resale revenue per unit = $20.00, and recycling revenue per unit = $7.00. What is the revenue retrieval for this product?
C) $9.00
1. Suppose that papers for a newspaper stand cost $0.40 and sell for $0.80. They currently have no salvage value. If the stand owner is able to find an outlet that would provide a salvage value of $0.10, what would be the increase in service level?
C) .07
12. A project being analyzed by PERT has 60 activities, 13 of which are on the critical path. If the estimated time along the critical path is 214 days with a project variance of 100, what is the probability that the project will take 224 days or more to complete?
C) 0.1587
12. A foundry produces circular utility access hatches (manhole covers). If 120 covers are produced in a 10-hour shift, the productivity of the line is:
C) 12 covers/hr.
1. In the basic EOQ model, if D = 6000 per year, S = $100, and holding cost = $5 per unit per month, what is the economic order quantity?
C) 141
9. Which of the following statements is true?
C) Functional strategies are shaped by corporate strategy.
5. Which of the following statements about time-series forecasting is true?
C) It is based on the assumption that the analysis of past demand helps predict future demand.
1) The upper and lower limits for diving ring diameters made by John's Swimming Co. are 40 and 39 cm., respectively. John took 11 samples with the following average diameters (39, 39.1, 39.2, 39.3, 39.4, 39.5 39.6, 39.7, 39.8, 39.9, 40). Is the process in control?
C) No, there is a distinguishable pattern to the samples.
3. One way to think of sustainability is to consider the systems necessary to support the triple bottom line of the three Ps, which are:
C) People, Planet, And Profit.
1. Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is TRUE?
C) Process Y is cheaper than process X at all volumes.
1. Which of the following best describes vertical integration?
C) Produce goods or services previously purchased
1. Which of the following is a primary supplier selection criterion for a firm pursuing a differentiation strategy?
C) Product Development Skills
17. A company is choosing an outside firm to provide its payroll services. It has chosen four comparative categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of 30%, 10%, 20%, and 40%, respectively. Three potential providers were scored on each of those factors (see table below) using a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible. Using the factor-rating method, which provider should be chosen? Provider A Provider B Provider C Client reviews 2 6 10 Financial condition 8 4 2 IT capabilities 5 8 2 Government stability 3 1 2
C) Provider C
1. If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand:
C) Q* = Is one-half of the economic order quantity.
6. Which of the following activities takes place most immediately once the mission has been developed?
C) The functional areas develop their supporting missions.
1) If a load report (resource requirements profile) shows a work center scheduled beyond capacity:
C) The work center's load may be smoothed by such tactics as operations splitting or lot splitting.
7. Which of the following statements about organizational missions is FALSE?
C) They are formulated after strategies are known.
18. Products are more "environmentally friendly" when they are made:
C) according to OSHA standards.
1) The purpose of an x-bar chart is to determine whether there has been a:
C) change in the central tendency of the process output.
12. What type of supply chains consider forward and reverse product flows over the entire life cycle?
C) closed-loop
8) PDCA is most often applied with regard to which aspect of TQM?
C) continuous improvement
17. Within environmental regulation, the "cap-and-trade" principle produces a market that allows companies to purchase and sell what?
C) emission allowances
1. A product-focused process is commonly used to produce:
C) high-volume, low-variety products.
1) If a sample of items is taken and the mean of the sample is outside the control limits, the process is:
C) likely out of control and the cause should be investigated.
3. Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a:
C) long-range time horizon.
9. Which productivity variable has the greatest potential to increase productivity?
C) management
1. Align Technology uses a ________ approach to produce clear plastic removable aligners.
C) mass customization
14. The primary purpose of the mean absolute deviation (MAD) in forecasting is to:
C) measure forecast accuracy.
14) Pareto charts are used to:
C) organize errors, problems, or defects.
1) The number of late insurance claim payouts per 100 should be measured with what type of control chart?
C) p-chart
1. The phases of project management are:
C) planning, scheduling, and controlling.
1. Three of the four types of processes are:
C) process focus, repetitive focus, product focus, and Mass customization.
2. Which of the following did the authors NOT suggest as a reason for globalizing operations?
C) pursue stockholder approval ratings
6. Companies can improve the triple bottom line with sustainability by minimizing what four things?
C) raw material, energy, water, and waste
16. A contractor's project being analyzed by PERT has an estimated time for the critical path of 120 days. The sum of all activity variances is 81; the sum of variances along the critical path is 64. What is the probability that the project will take 130 or less days to complete?
D) 0.8943
10. Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?
D) 1.0
15. A forecasting method has produced the following over the past five months. What is the mean absolute deviation? Actual Forecast Error |Error| 10 11 -1 1 8 10 -2 2 10 8 2 2 6 6 0 0 9 8 1 1
D) 1.2
20. A cleaning company uses 10 lbs. each of chemicals A, B and C for each house it cleans. After some quality complaints, the company has decided to increase its use of chemical A by an additional 10 lbs. for each house. By what % has productivity (houses per pound of chemical) fallen?
D) 25%
9) A Three Sigma program has how many defects per million?
D) 2700
17. A time-series trend equation is 25.3 + 2.1x. What is your forecast for period 7?
D) 40.0
6. What is the forecast for May using a four-month moving average? Nov. Dec. Jan. Feb. Mar. April 39 36 40 42 48 46
D) 44
1. Which of the following statements about ABC analysis is FALSE?
D) ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.
1. Which one of the following technologies is used ONLY for material handling, NOT actual production or assembly?
D) AGVs
1. Among the advantages of cycle counting is that it:
D) Allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory.
1) Enterprise resource planning (ERP):
D) Automates and integrates the majority of business processes.
1. What are the three classic types of negotiation strategies?
D) Cost-based price model, market-based price model, and competitive bidding
18. Which of these statements regarding time-cost tradeoffs in CPM networks is true?
D) Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.
8. Activity D on a CPM network has predecessors B and C, and has successor F. D has duration 6. B's earliest finish is 18, while C's is 20. F's late start is 26. Which of the following is definitely true?
D) D is critical, and has zero slack.
8. Which of the following statements comparing exponential smoothing to the weighted moving average technique is TRUE?
D) Exponential smoothing typically requires less record keeping of past data.
2. Which of the following are among the 10 strategic operations management decisions? I. design of goods and services II. managing quality III. layout strategy IV. marketing V. pricing of goods and services
D) I, II, III
1) An x-bar chart is used when we are sampling attributes.
false
1) The purpose of process control is to detect when natural causes of variation are present.
false
