Operations Final Quiz Questions

Converting quarterly and annual business plans into broad output and labor requirements for the intermediate-term is known as: A. Aggregate planning. B. Master production scheduling. C. Rough-cut capacity planning. D. Materials requirements planning. E. Capacity requirements planning.

A. Aggregate planning.

Suppose a company is using pure chase strategy for its aggregate production planning. Which of the following policies would a manager use to deal with (or hedge against) the fluctuation in demand? A. Hire additional workers when demand increases and outplace them when demand decreases B. Stock up excessive inventory during the periods of low demand. C. Purchase the shortages from subcontractors. D. Allow the employees to work overtime when the demand is low. E. All of the above

A. Hire additional workers when demand increases and outplace them when demand decreases

Which aggregate planning strategy typically results in greater inventory carrying costs? A. Level strategy. B. Chase strategy. C. Subcontracting strategy. D. Material requirements production strategy E. It depends on other factors

A. Level strategy.

A pure level strategy for aggregate production planning: A. Maintains a stable workforce working at a constant output rate. B. Varies the output by changing the number of hours worked through flexible work schedules or overtime C. Matches the production rate to monthly demand by hiring and laying off D. Uses a part-time workforce when the demand exceeds the production rate. E. Never uses inventory to buffer against the changes in demand.

A. Maintains a stable workforce working at a constant output rate.

In a saw tooth diagram, the peak of each inventory cycle represents? A. Q B. ROP C. SS D. DLT

A. Q

Which of the following control charts is (are) most appropriate for detecting process failure with attribute measurements? A. p chart B. R chart C. X-bar chart D. Both R chart and X-bar chart E. Both p chart and R chart

A. p chart

Which of the following is not a type of inventory? A. reorder point stock B. pipeline stock C. safety stock D. cycle stock

A. reorder point stock

Mole Mfg. has asked you to develop a chase plan for the production of its earth moving equipment. Below is the beginning inventory, monthly demand, and relevant work force information. Determine the total hire/fire costs and the number of workers employed at the end of October. Note: The ending inventory for October should be 0. July Beginning Inventory 1200: Demand is July 3300; Aug 3000; Sept 2550; Oct 2400. Hiring costs $50 per worker; firing costs $100 per worker; production rate 15 units per month per worker; starting workforce 200 workers A. $6,000 and 160 workers B. $13,000 and 160 workers C. $6,000 and 170 workers D. $13,000 and 170 workers E. $19,000 and 170 workers

B. $13,000 and 160 workers

The degree to which the product or service design specifications are met during the transformation process is known as: A. Design quality B. Conformance quality C. Quality function deployment D. Fitness for use E. None of the above

B. Conformance quality

Which one of the following lists best describes the four steps of the Deming Wheel? A. Purchase, Distribute, Coordinate, Account. B. Plan, Do, Check, Act. C. Plan, Direct, Critical, Align. D. Plan, Do, Critique, Articulate E. None of the above is an accurate description for the Deming Wheel method.

B. Plan, Do, Check, Act.

The Bloomington Bicycle Bearing company wishes to use a level output plan to plan for the rest of the year. Here is the forecasted demand for all bearing types: Month Demand May 800 Jun 650 July 720 August 690 Sept 530 Oct 610 Nov 630 Dec 610 If the beginning inventory is 300 units and the desired ending inventory at the end of December is 500 units, how many units will be in inventory at the end of August? Assume that backorders are allowed. A. 140 B. 150 C. 160 D. 170 E. 180

C. 160

The BBC Company is forecasting demand to fluctuate over the next four periods. If the beginning inventory level is 120 units and the company wants a pure level output plan, what level of production is required to avoid back orders during any period and to keep ending inventory for period 4 at a minimum? The forecast is: Period 1-1900; Period 2-1930; Period 3-2260; Period 4-910. A. 1720 B. 1855 C. 1990 D. 2030 E. None of the above answers are correct.

C. 1990

Which of the following statements best describe one a basic difference between the Malcolm Baldrige Award and ISO 9000 certification? A. One originated in Japan, the other in Europe B. There is essentially no difference between the two C. ISO 9000 is more important in international commerce D. One applies to only U.S. firms, one applies to only European firms E. ISO 9000 focuses on customer satisfaction, unlike the Baldrige Award

C. ISO 9000 is more important in international commerce

The Shingo system relies on which of the following approaches? A. Introduction of numerically controlled machine tools into the process. B. Introduction of quality control checks at the end of the process. C. Introduction of quality controls within the process so feedback can occur immediately. D. Utilization of statistical quality control. E. Utilization of fishbone or cause-and-effect diagrams.

C. Introduction of quality controls within the process so feedback can occur immediately.

Which of the following statements is not true about the continuous improvement process? A. Results are usually accumulated as a series of small improvements. B. It utilizes tools such as the Deming Wheel, Pareto analysis, and Histograms C. It requires creative thinkers to come up with break-through innovations. D. It utilizes team and employee involvement E. It utilizes control charts.

C. It requires creative thinkers to come up with break-through innovations.

Which of the following measures is most appropriately monitored by a p chart? A. The weight off a 3 month old baby. B. the diameter of a piston. C. the proportion of students absent from class each day. D. the weight of a bushel of wheat. E. the temperature of a class room.

C. the proportion of students absent from class each day.

Comparing an organization's performance on critical business processes against the best performance on the same or similar processes in other organizations is known as: A. Root cause analysis. B. Value engineering. C. Quality function deployment. D. Benchmarking. E. Walking the cat backwards.

D. Benchmarking.

Which of the following is NOT a method used in aggregate planning to cope with fluctuations in demand? A. Backordering demand in peak periods B. Building inventory in advance of peak periods C. Hiring additional workers in peak periods D. Construction of a new plant and/or finished goods warehouse E. All of the above are methods used to cope with fluctuating demand in

D. Construction of a new plant and/or finished goods warehouse

An X-bar control chart has an upper limit of .65 inch and lower control limit of .35 inch. The results of the next six samples are .6, .37, .45, .48, .53, and .62 inches. What should you do? A. Nothing, the process is in control. B. Investigate because three observations are above the mean. C. Investigate because there is a run. D. Investigate because there is a trend. E. Increase the sample size.

D. Investigate because there is a trend.

What is one of the fundamental differences between the Malcom Baldridge Award and ISO9000 certification? A. One applies to manufacturing and the other applies to only purchasing. B. One is fairly simple to achieve and the other is extremely difficult. C. There is essentially no difference between the two. D. One applies to U.S. firms, while the other applies to companies anywhere in the world. E. One originated in Canada and the other in Europe.

D. One applies to U.S. firms, while the other applies to companies anywhere in the world.

Which of the following circumstances would provide an incentive for employing a level (vs. chase) plan? A. The product is perishable B. Warehouse space for finished goods is limited. C. Inventory carrying costs are very high. D. The production process requires highly trained labor. E. None of the above (i.e., all are incentives for a chase plan).

D. The production process requires highly trained labor.

Which of the following are the characteristics of a Baldridge Award winner or a company that emphasizes on customer satisfaction and business results? A. The company formulates a vision of what quality is and how to achieve it. B. Senior management is actively involved C. The company carefully plans and organizes its quality effort. D. The company vigorously controls the overall process. E. All of the above.

E. All of the above.

Which of the following costs are NOT considered in developing an aggregate production plan? A. Inventory holding costs. B. Basic production costs (fixed and variable). C. Hiring and training costs. D. Layoff and firing expenses E. Depreciation costs.

E. Depreciation costs.

Which of the following is not a cost associated with cost of quality? A. Scrap cost B. Test equipment cost C. Inspection cost D. Warranty cost E. None of the above, all are a cost of quality.

E. None of the above, all are a cost of quality.

It is quite common in Statistical Process Control to track both the sample average and the sample range. Which of the following statements are accurate with respect to why both measures are considered? A. Since the sample mean and range are independent measures, each must be tracked separately. B. the sample average must always be used when using the sample range since either used separately only convey part of the situation. C. for a given sample, the sample mean can be in control while the range can be out of control. D. it is necessary to control both the sample average and the sample variation in order to assure the process is in control. E. all of the above.

E. all of the above.

Which of the following are characteristic of the companies who have won the Malcolm Baldrige National Quality Award? I. A strategic vision for the organization was developed. II. Senior management was actively involved in improvement efforts. III. They produced highly profitable, high technology products. IV. Quality control and improvement efforts were carefully planned and implemented.

I, II, and IV