Operations Management Final Exam Practice Problems
An advantage of the level strategy for aggregate operations planning is which of the following?
There is a smooth flow throughout the production system
In business forecasting, what is usually considered a medium-term time period?
Three months to two years
According to the theory of constraints, which of the following is an operational measurement that can be used to measure the firm's ability to make money?
Throughput
What is the rate at which money is generated by the system through sales called?
Throughput
According to Little's Law, which of the following can be used to estimate work-in-process inventory?
Throughput rate times/Throughput time
Which of the following terms describes the time a unit spends actually being worked on together with the time spent waiting in a queue?
Throughput time
In a Gantt chart the horizontal axis is usually which of the following?
Time
Which of the following work methods design aids might be used by a methods analyst in determining the best work methods to be used by a worker at a fixed workplace? (2)
Time study
Which of the following should we use an "R" chart to monitor process quality?
Tire pressures in an auto assembly plant
With which of the following should we use an "X-bar" chart based on sample means to monitor process quality?
Tire pressures in an auto assembly plant
In which of the following situations should we not use the transportation method of linear programming?
To determine which corner of a street intersection to locate a retail service facility
The primary purpose of the Malcolm Baldrige National Quality Award is which of the following?
To improve competitiveness of American firms
Which of the following is one of the primary reasons for work sampling?
To measure performance
Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a Kanban/lean production approach. What would be your expectations of the difference between the total cost (i.e., inventory holding costs + setup/ordering costs) of each?
Total costs will be lower for the Kanban/lean production operation
Below are the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the costs include both direct and indirect costs --> If you crash this project to reduce the total time by one day what is the total time of the project and total cost?
Total time is 11 days, total cost is $1850
Below are the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the costs include both direct and indirect costs --> What are the total time of this project and total normal cost?
Total time is 12 days, total cost is $1700
Below are the data for a Time-Cost CPM Scheduling analysis. The time is in days and the costs include both direct and indirect costs --> If you crash this project to reduce the total time by four days, what is the total time of the project and total cost?
Total time is 8 days, total cost is $2750
Which of the following is a suggestion for managing queues presented in the textbook?
Train your servers to be friendly
In business forecasting, what is usually considered a long-term time period?
Two years or longer
Which of the following is not a category reported in applying for the Baldrige Award?
Use of statistical quality control tools
According to your text, the most common process metric is:
Utilization
The ______________ is the ratio of the time that a resource is actually activated relative to the time that it is available for use.
Utilization
Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for optimized production technology?
Utilization and activation of a resource are not the same
In time series data depicting demand which of the following is not considered a component of demand variation?
Variance
In an overview of the major operations planning activities in a typical logistics organization, which of the following activities immediately follows aggregate sales and operations planning?
Vehicle capacity planning
In an overview of the major operations planning activities in a typical logisticsorganization, which of the following activities follows aggregate sales and operations planning?
Vehicle loading
Which of the following is not considered a major process flow structure?
Virtual factory
The centroid method for plant location uses which of the following data?
Volume of goods to be shipped between existing points
Which of the following forecasting methodologies is considered a time series forecasting technique?
Weighted moving average
A project can be subdivided into which of the following?
Work package
Which of the following is not a job design principle that individuals or work groups require as a logical integration of work activities?
Work physiology
According to Little's Law, which of the following ratios is used to find throughput time?
Work-in-process/Throughput rate
Which of the following basic types of process structures is one which similar equipment or functions are grouped together?
Workcenter
Which of the following is a basic type of process structure?
Workcenter
Which of the following are not used as reasons to justify time allowances in a time study analysis?
Worker illness
The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?
Workforce levels and inventory on hand
In an overview of the major operations planning activities in a typical service organization, which of the following activities follows aggregate sales and operations planning?
Workforce scheduling
You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values. What can you conclude?
You have multiple critical paths
You know when you have arrived at the optimal solution in using the Time-Cost CPM Scheduling model analysis when what happens?
You have reached the minimum total cost
For which of the following should we use a "p" chart to monitor process quality?
grades in a freshman "pass/fail" course
A worker was producing a product for which the standard time was one minute per unit. During an eight hour workday, the worker produced 520 units. What would be the worker's pay for that day if the basic pay rate was $10.00 per hour and the piece rate bonus was $2.00 per unit above standard?
$160,000
You have collected the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the project "direct costs" are given below --> The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200,and 13 days they will be $100. If you crash this project by one day what is the total (i.e., direct and indirect) project cost?
$2150
A company wants to determine where they should locate a new warehouse. They have two existing production plants (i.e., Plant A and Plant B) that will ship units of a product to this warehouse. Plant A is located at the (X, Y) coordinates of (50, 100) and will have volume of shipping of 250 units a day. Plant B is located at the (X, Y) coordinates of (150, 200) and will have a volume of shipping of 150 units a day. Using the centroid method, which of thefollowing are the X and Y coordinates for the new plant location?
(88, 138)
Various financial data for SunPath Manufacturing for 2010 & 2011 follow --> What is the percentage change in the multifactor labor and raw materials productivity measurefor SunPath between 2010 & 2011?
-0.53
A time study was made of a job to develop new time standards. A worker was observed for 30 minutes. During that time, 40 units were produced. The analyst rated the worker as performing at 120 percent performance rate. What is the normal time for this task?
0.90
Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break-even?
1,000 units
Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, anda smoothing constant alpha of 0.3, what is the exponential smoothing forecast value?
1,030
Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 100 units, the demand forecast is 1,200, and the necessary safety stock is 20% of the demand forecast, which of the following is the production requirement?
1,340
The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio?
1,428
If the intercept value of a linear regression model is 40, the slope value is 40, and the value of X is 40, which of the following is the resulting forecast value using this model?
1,640
A time study was made of a job to develop new time standards. A worker was observed for 30 minutes. During that time, 40 units were produced. The analyst rated the worker as performing at 120 percent performance rate. What is the standard time for this task?
1.00 minute
The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure, what is the resulting productivity ratio?
1.000
If there are 120 total defects from 10 samples, each sample consisting of 10 individual items in a production process, which of the following is the fraction defective that can be usedin a "p" chart for quality control purposes?
1.2
If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate?
1.25
If you are going to develop an "R" chart based on range statistics and you are using a sample size of 15 for your charting purposes. Which of the following is the upper control limit D4 factor for the chart?
1.65
Various financial data for SunPath Manufacturing for 2010 & 2011 follow --> What is the percentage change in the energy partial productivity measure for SunPath between 2010 & 2011?
10.39
If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is weeks of supply?
104
A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below --> Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)?
11 days
A company wants to generate a forecast for unit demand for year 2011 using exponential smoothing. The actual demand in year 2010 was 120. The forecast demand in year 2010 was 110. Using this data and a smoothing constant alpha of 0.1, which of the following is the resulting year 2011 forecast value?
111
A simple project listening of five activities, their predecessors and their respective time estimates are presented below --> Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)?
12 days
If the arrival rate for loading trucks is 5 trucks per hour, what is the mean time between arrivals?
12 minutes
In setting up a Kanban control system you need to determine the number of Kanban card sets needed. If the expected demand during lead time is 50 per hour, the safety stock is 20% of the demand during lead time, the container size is 4. If the lead time to replenish an order is8 hours, what number of Kanban card sets is needed?
120
Which of the following is an example of a steady rate assembly line?
120 units entering a system and 120 units exiting
A company wants to forecast demand using the weighted moving average. If the company uses two prior yearly sales values (i.e., year 2009 = 110 and year 2010 = 130), and we want to weight year 2009 at 10% and year 2010 at 90%, which of the following is the weighted moving average forecast for year 2011?
128
A company wants to forecast demand using the simple moving average. If the company uses three prior yearly sales values (i.e., year 2008 = 130, year 2009 = 110, and year 2010=160), which of the following is the simple moving average forecast for year 2011?
133.3
A company wants to forecast demand using the simple moving average. If the company uses four prior yearly sales values (i.e., year 2007 = 100, year 2008 = 120, year 2009 = 140,and year 2010 = 210), which of the following is the simple moving average forecast for year 2011?
142.5
You have collected the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the project "direct costs" are given below --> The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200,and 13 days they will be $100. At what day do we achieve the lowest total project cost (i.e., direct plus indirect costs)?
15 days
A company wants to forecast demand using the weighted moving average. If the company uses three prior yearly sales values (i.e., year 2008 = 160, year 2009 = 140 and year 2010 =170), and we want to weight year 2008 at 30%, year 2009 at 30% and year 2010 at 40%,which of the following is the weighted moving average forecast for year 2011?
158
Various financial data for SunPath Manufacturing for 2010 & 2011 follow --> What is the percentage change in the labor partial productivity measure for SunPath between 2010 & 2011?
2.33
If there are 400 total defects from 8 samples, each sample consisting of 20 individual items in a production process, which of the following is the fraction defective that can be usedin a "p" chart for quality control purposes?
2.5
You want to determine the control lines for a "p" chart for quality control purposes. If the desired confidence level is 99 percent, which of the following values for "z" would you use incomputing the UCL and LCL?
2.58
Various financial data for SunPath Manufacturing for 2010 & 2011 follow --> What is the percentage change in SunPath's total productivity measure between 2010 & 2011?
2.88
A company has actual unit demand for four consecutive years of 100, 105, 135, and 150.The respective forecasts were 120 for all four years. Which of the following is the resulting MAD value that can be computed from this data?
20
Given a prior forecast demand value of 230, a related actual demand value of 250, and a smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for the following period?
232
If the average aggregate inventory value is $45,000 and the cost of goods sold is $10,000,which of the following is weeks of supply?
234
Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4, 6, 7, 2, 6, and 5 minutes, and the cycle time is 10 minutes?
3
In setting up a Kanban control system you need to determine the number of Kanban cardsets needed. If the expected demand during lead time is 25 per hour, the safety stock is 20% of the demand during lead time, the container size is 5, and the lead time to replenish an order is 5 hours, what is the number of Kanban card sets needed?
30
If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity cushion?
33 percent
You are developing an "X-bar" chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99.7 percent, and the average of the sample means is 24. Which of the following is your UCL?
36
A machine is designed to produce units at a rate of 30 per minute or one unit every two seconds. The setup time to configure the machine is 30 minutes. What is the operation time to make a batch of 10,000 units?
363.33 minutes
The total time to complete all of the tasks for the assembly line referred to in #4 is 2.3 minutes. The theoretical minimum number of stations needed is:
4
If the normal time for a job is 4 minutes and the allowances for the job are 10 percent of normal time, which one of the following comes closest to the standard time for this job?
4.4 minutes
If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?
4.5
You have been called in as a consultant to set up a Kanban control system. The first thing to do is to determine the number of Kanban card sets needed. Your research shows that the expected demand during lead time for a particular component is 150 per hour. You estimate the safety stock should be set at 25% of the demand during lead time. The tote trays used as containers can hold 8 units of stock and the lead time it takes to replenish an order is 2 hours. Which of the following is the number of Kanban card sets necessary to support this situation?
47
A company has actual unit demand for three consecutive years of 124, 126, and 135. The respective forecasts for the same three years are 120, 120, and 130. Which of the following is the resulting MAD value that can be computed from this data?
5
If a firm produced a standard item with relatively stable demand, the smoothing constant alpha used in an exponential smoothing forecasting model would tend to be in which of the following ranges?
5% to 10%
Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7, 4, 7, 8, 9, 4, 3 and 6 minutes, and the cycle time is 8 minutes?
6
You have been called in as a consultant to set up a Kanban control system. The first thing you do is to determine the number of Kanban card sets needed. Your research shows that the expected demand during lead time for a particular component is 1,200 per hour. You estimatethe safety stock should be set at 5% of the demand during lead time. The tote trays used as containers can hold 2 units of stock and the lead time to replenish an order is 10 hours. Which of the following is the number of Kanban card sets necessary to support this situation?
6,300
Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 500 units, the demand forecast is 1,000, and the necessary safety stock is 10% of the demand forecast, which of the following is the production requirement?
600
A company hires you to develop a linear regression forecasting model. Based on the company's historical sales information, you determine the intercept value of the model to be 1,200. You also find the slope value is -50. If after developing the model you are given a value of X = 10, which of the following is the resulting forecast value using this model?
700
Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the following isthe number of units that has to be produced and sold to break-even?
8,000 units
You want to develop a three-sigma "R" chart. You know the average range is 5 based on several samples of size 10. Which of the following is the resulting UCL?
8.9
Larry's Auto Body Repair Shop had revenues that averaged $60,000 per week in April and $50,000 per week in May. During both months, the shop employed six full-time (40 hours/week) workers. In April the firm also had four part-time workers working 25 hours per week but in May there were only 2 part-time workers and they only worked 10 hours per week. What is the percentage change in labor productivity from April to May for Larry's Auto Body Repair?
8.97
You are using an exponential smoothing model for forecasting. The running sum of the forecast error statistics (RSFE) are calculated each time a forecast is generated. You find the last RSFE to be 34. Originally the forecasting model used was selected because it's relatively low MAD of 0.4. To determine when it is time to re-evaluate the usefulness of the exponential smoothing model you compute tracking signals. Which of the following is the resulting tracking system?
85
Which of the following is the portion of observations you would expect to see lying within a plus or minus 2 MAD range?
88.946
As a consultant you have been asked to generate a unit demand forecast for a product for year 2011 using exponential smoothing. The actual demand in year 2010 was 750. Theforecast demand in year 2010 was 960. Using this data and a smoothing constant alpha of 0.3,which of the following is the resulting year 2008 forecast value?
897
Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 480 and the required output per day in units is 50?
9.6
You are developing an "X-bar" chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99 percent, and the averageof the sample means is 20. Which of the following is your LCL?
9.68
Which of the following is the portion of observations you would expect to see lying within a plus or minus 3 MAD range?
98.334 percent
You have the following time and cost information below for use in a Time-Cost CPM Scheduling model --> What are the three costs permit of time to expedite each activity?
A = $200, B = $300, C = $400
Which of the following statements regarding setups is TRUE?
A TOC analyst would not be concerned with setup times on non-bottleneck machines
The advantage(s) of specialization of labor to management include:
A and B
The reasons for work measurement standards include:
A and B
Generalizations that can be made pertaining to the nature of services include:
A and C
Heavy sales of umbrellas during a rain storm is an example of which of the following?
A causal relationship
Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is not a reason that the process being monitored with the chart should be investigated?
A change in a raw materials or operations
What is a work breakdown structure?
A definition of the hierarchy of project tasks, subtasks, and work packages
An activity-based map is which of the following?
A network that shows how a company's strategy is delivered to customers
Which of the following are related to lean production?
A philosophy of waste elimination
A service blueprint is not which of the following?
A service encounter that conforms to specifications
Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is a reason that the process being monitored with the chart should be investigated?
A single plot falls above or below the control limits
We would expect to see in a group technology layout which of the following?
A small team of workers who turn out complete units of work
A project starts out as which of the following?
A statement of work
Some of the advantages of a functional project where the project is housed in a functional division include which of the the following?
A tean member can work on several projects
A simple project listening of five activities and their respective time estimates are presented below --> Using CPM, which actives make up the critical path?
A, B, D, E
A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below --> Using CPM, which activities make up their critical path?
A, B, D, F, G
The primary applications of work sampling include:
A, B, and C
Which of the following statements is not true about the strategic uses of the service-system design matrix?
A, B, and C
The service triangle includes:
A, B, and D
Plant A is located at the (X, Y) coordinates of (100, 200) and has a volume of shipping of 500 units a day. Plant B is located at the (X, Y) coordinates of (150, 400) and has a volume of shipping of 200 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?
About 115
A company has calculated its running sum of forecast errors to be 500 and its mean absolute deviation is exactly 35. Which of the following is the company's tracking signal?
About 14.3
How many free trade zones are there in the United States?
About 260
Which of the following basic types of process structures is one which equipment or work processes are arranged according to the progressive steps by which the product is made?
Assembly line
Which of the following are eligible companies to be considered for the Baldrige award?
Auditing firms
In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand?
Autocorrelation
Job design decisions are being affected by which of the following trends?
Automation of heavy manual work
The total value of all items held in inventory for the firm at cost is which of the following?
Average aggregate inventory value
Which of the following best describes the term cycle time?
Average time between completions of successive units
Which of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?
Centroid method
Throughput time cannot be reduced in a process by:
Changing the sequence of activities
Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies?
Chase
An analytical tool used in six-sigma quality improvement programs is which of the following?
Checksheets
In conducting aggregate operations planning there are a number of required inputs. Which of the following are inputs considered external to the firm?
Competitors' behavior and economic conditions
An assumption of CPM analysis is that project activities can be identified and have a clear beginning and ending point. Which of the following is a valid criticism of this assumption?
Complex projects can change over time and networks become inaccurate
The six-step process for green sourcing does not include which of the following?
Confer with environmental groups
The type of processing structure that is used to produce gasoline, chemicals, and steel is:
Continous flow
Which of the following is one of the strategic characteristics to consider when deciding how supplier relationships should be structured on the continuum between vertical integration (do not outsource) to arm's length relationships (outsource)?
Coordination
Which of the following is a graphic project report used in project management?
Cost and performance tracking schedule
The inventory turnover ratio used in measuring supply-chain efficiency is found by the ratio of which of the following?
Cost of goods sold/Average aggregate inventory value
A major competitive dimension that forms a company's strategic operational competitive position in their strategic planning is which of the following?
Cost or price
Which of the following is not considered an input to the layout decision in facility layout analysis?
Cost per square foot of alternative facilities
In conducting aggregate operations planning there are a number of required inputs. Which of the following are considered inputs internal to the firm?
Current physical capacity and current workforce
Which of the following refers to the physical presence of the customer in a service system?
Customer contact
The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming,and Joseph M. Juran had the same general message about what it took to achieve outstanding quality. Which of the following was part of that message?
Customer focus
Which of the following methods requires generating several alternative aggregate plans?
Cut and try
The average time between completion of units is commonly known as:
Cycle time
In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand?
Cyclical elements
Which of the following are defined as core goods?
Data storage systems
Which of the following models uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step?
Decision trees
Which of the following is not considered a major process flow structure?
Fabrication
______________ refers to service encounters whose specifications must be developed through some interaction between the customer and the server.
Face-to-face total customization
One of the package of features that make up a service are:
Facilitating goods
Which of the following is a possible source of bias error in forecasting?
Failing to include the right values
Which of the following is a basic assumptions that justify an analysis of the costs of quality?
Failures are caused
The dimension of design quality that concerns secondary characteristics is which of the following?
Features
Which of the following is a dimension of design quality?
Features
Home repair services are an example of:
Field-based services
Which of the following is not an important concept in TOC?
File
The most common priority rule/queuing discipline is:
First come, first served
An advantage of a touch-screen self-order kiosk in a fast food restaurant is:
Flexibility improves
Which of the following basic types of production layout formats is one which equipment or work processes are arranged according to the progressive steps by which the product is made?
Flow-shop layout
Which of the following is not one of the basic types of forecasting?
Force field analysis
Which of the following is not a step used in determining production capacity requirements?
Forecasting raw material usage
Which of the following is a lean production technique that is not reported in the textbook to have been successfully applied in service firms?
Freeze windows
When considering outsourcing, what should firms be sure to avoid?
Giving the outsourcing partner opportunities to become a strong competitor
The ______ the percentage of contact time between the service system and the customer, the ________ the degree of interaction between the two during the production process.
Greater; greater
Which of the following is a not criterion that influences manufacturing plant or warehouse facility location decisions?
Gross national product
An example of a business/industry that uses batch flow process structure is:
Heavy equipment
Which of the following is a key inventory reduction target under lean production?
Hidden inventory
In the service-system design matrix, an internet and on-site technology service encounter is expected to have which of the following?
High production efficiency
Very few products are moved without at least part of their journey being by which modeof transportation?
Highway
Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
Historical cost
One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should be excluded from the analysis?
Historical costs
Which of the following are not listed in the text as jobs in OSM?
Hospital administrator
In work sampling, which one of the following main issues must be decided before undertaking the study?
How many observations are necessary
Which of the following is a "focusing step" of Dr. Eli Goldratt's theory of constraints?
Identify system constraints
According to the theory of constraints, which of the following is a kind of time that makes up the cycle time in production?
Idle time
When deciding to add capacity to a factory which of the following need not be considered?
Immediate product demand
Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
Immigration rules
An opportunity flow diagram as part of a six-sigma quality improvement process might be found in which DMAIC category?
Improve
Which of the following is not an organizationally-driven reason for outsourcing?
Improve credibility and image by associating with superior providers
Which of the following is an organizationally-driven reason for outsourcing?
Improve effectiveness by focusing on what the firm does best
Which of the following statements holds true for Kanban production control systems?
In a paperless control system, containers can be used instead of cards
One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should not be included in the analysis?
Incidental costs
Which of the following is not an improvement-driven reason to outsource?
Increase commitment in a non-core area
Current issues in OSM do not include:
Increasing global servitization networks
The Grading Criteria of the Baldrige Award for total quality management includes which of the following?
Information and analysis
Which of the following of Fisher's product categories includes fashionable clothing, personal computers and other products that typically have a very brief life cycle?
Innovative products
A process consists of all the following except:
Inputs, outputs, transformations
Capacity planning involving hiring, layoffs, some new tooling, minor equipment purchases, and subcontracting is considered as which one of the following planninghorizons?
Intermediate range
Which of the following is the cost of quality classification for costs such as scrap, rework, or repair?
Internal failure costs
Which of the following is a degree of customer/server contact included in the service-system design matrix?
Internet
According to the theory of constraints, which of the following is an operational measurement that can be used to measure the firm's ability to make money?
Inventory
From an operational perspective yield management is most effective under which of the following circumstances?
Inventory is perishable
A listing of immediate predecessor activities is important information in a CPM analysis for which of the following reasons?
It specifies the relationships in the CPM network of activities
Which of the following is a negative aspect of JIT compared to synchronous manufacturing?
JIT does not allow very much flexibility in the products produced
Which of the following is an element that addresses elimination of waste under lean production?
Kanban production control system
Which of the following is an approach to dealing with a bottleneck?
Keep a buffer inventory in front of it to insure that it always has something to work on
Which of the following is not a queue discipline discussed in the textbook?
Last in, first out
In the queuing system, which of the following is not an arrival characteristic?
Length of the arrival
In business forecasting, what is usually considered a short-term time period?
Less than three months
Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs and allowing lost salesis which of the following production planning strategies?
Level
Which of the following is a production planning strategy presented in the textbook?
Level
When implementing a lean production system a stabilized schedule is achieved using which of the following?
Level scheduling
Which of the following is a lean production technique that has been successfully applied in service firms?
Leveling the facility load
In the design of retail service layouts, the term "ambient conditions" could refer to which of the following?
Lighting
Which of the following is not a basic type of production layout?
Linear layout
Which of the following forecasting methodologies is considered a causal forecasting technique?
Liner regression
An advantage of a pure project where self-contained teams work full time on a project is which of the following?
Lines of communication are shortened
Which of the following is an advantage of specialization of labor for labor?
Little difficulty in learning job
The long-term relationship between the inventory, throughput, and flow time of a production system in steady state is called which of the following?
Little's Law
In general, which forecasting time frame is best to detect general trends?
Long range forecasts
Capacity planning involving acquisition or disposal of fixed assets such as buildings,equipment or facilities is considered as which one of the following planning horizons?
Long-range
In the service-system design matrix, a face-to-face loose specs service encounter is expected to have which of the following?
Low production efficiency
In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following?
Low production efficiency
In the service-system design matrix, a mail contact service encounter is expected to have which of the following?
Low sales opportunity
At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%; the expected benefit of selecting machine B is $80,000 with a probability of 50% and the expected benefit of selecting machine C is $60,000 with a probability of 75%?
Machine C
Which of the following is an example of a finite population in a queuing system
Machines which have randomly spaced service requirements
Which of the following is an example of a finite population in a queuing system?
Machines which have randomly spaced service requirements
Which of the following are alternative possible degrees of customer contact included in the Service-System Design Matrix?
In implementing a lean production system you should work with suppliers to do which of the following?
Make frequent deliveries
A _______________ process ends when the inventory of finished goods has been completed. Customer orders are then served from this inventory.
Make to stock
Which of the following is true about make-to-stock processes?
Make-to-stock processes can be controlled based on the actual or anticipated amount of finished goods inventory. and Make-to-stock process is used when demand is seasonal and the firm does not have enough capacity to keep up during the peak season.
Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position?
Management acumen
Which of the following forecasting methodologies is considered a qualitative forecasting technique?
Market research
A series of projects that are organized in such a way that each project utilized people from different functional areas is using which of the following organizational structures?
Matrix project
You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used?
Matrix project
Which company pioneered the production line approach to delivering on-site service?
McDonald's Corporation
Which of the following is used to describe the degree of error?
Mean absolute deviation
A Pareto chart as part of a six-sigma quality improvement process might be found in which DMAIC category?
Measure
In general, which forecasting time frame best identifies seasonal effects?
Medium term forecasts
In the textbook Toyota's Fujio Cho identified which of the following types of waste to be eliminated?
Motion
One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?
Movement of preproduction material between locations
Buying a ticket for a college football game where there are multiple windows to buy theticket at features which type of queuing system line structure?
Multichannel, single phase
Buying food at a large food store with multiple checkout counters features which type of queuing system line structure?
Multichannel, single phase
Machine breakdown and repair in a twelve machine factory having three repair mechanics would develop which type of queuing system line structure concerning machine breakdowns?
Multichannel, single phase
The admission of patients in a hospital is a typical example of:
Multiple channel, multiple phase
In CPM analysis it is generally expected that the relationship between activity direct costs and project indirect costs will be which of the following?
Negatively related
According to the theory of constraints which of the following is a financial measurement that can be used to measure the firm's ability to make money?
Net profit
In a lean production system we expect to see which of the following?
No extra inventory
An example of a trading bloc is which of the following?
North American Free Trade Agreement countries
Which of the following is a time-to-market performance measure used in judging product development performance?
Number of projects completed
In a time study the normal time is equal to:
Observed performance time per unit x performance rating
Processes that are used to transform the resources into products are called:
Operations
Which of the following work methods design aids might be used by a methods analyst in determining the best work methods to be used by a worker at a fixed workplace?
Operations chart
Which of the following is a multifactor measure of productivity?
Output/(Labor + Capital + Energy)
Which of the following is a total measure of productivity?
Output/Inputs
Which of the following is a partial measure of productivity?
Output/Materials
In the textbook Toyota's Fujio Cho identified which of the following types of waste to be eliminated?
Overproduction
Which of the following forecasting methods uses executive judgement as its primary component for forecasting?
Panel consensus
Which of the following is an analytical tool used in six-sigma quality improvement programs?
Pareto charts
If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, what kind of productivity measure could you use to compute productivity?
Partial measure
If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity?
Partial measure and multi factor measure
Which of the following is not an analytical tool used in six-sigma quality improvement programs?
Pass charts
In most cases, demand for products or services can be broken into several components. Which of the following is not considered a component of demand?
Past demand
The basic difference between product and process layout pertains to:
Pattern of workflow
Which of the following is not a suggestion for managing queues presented in the textbook?
Periodically close the service channel to temporarily disperse the line
The approach to delivering on-site service made famous by Nordstrom department stores is:
Personal attention approach
Which of the following is considered a high-contact service operation?
Physician practice
The basic elements of a Scanlon Plan include all but:
Pierce rate
The reward/incentive plan that allows management to target specific output goals is:
Pierce rate
What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?
Pipeline
The capacity focus concept can be put into practice through a mechanism called which of the following?
Plants within plants (PWP)
A cost of quality classification is which of the following?
Prevention costs
Which of the following tools uses a graphical representation of the production process to suggest potential sources of process variation?
Process flow diagram
Which of the following basic types of production layout formats is one which similar equipment or functions are grouped together?
Process layout
In an overview of the major operations planning activities in a typical organization, which of the following activities precedes aggregate sales and operations planning?
Process planning
According to the theory of constraints, which of the following is a kind of time that makes up the cycle time in production?
Process time
Which of the following considerations is not usually a factor in deciding which forecasting model a firm should choose?
Product
In the textbook Toyota's Fujio Cho identified which of the following types of waste to be eliminated?
Product defects
A flow shop layout is often referred to as a:
Product layout
Which of the following is not a basic type of process structure?
Product-process matrix
Which of the following is one of the three contrasting approaches to delivering on-site service?
Production line approach
PERT is an abbreviation for which of the following methodologies?
Program Evaluation and Review Technique
According to Hayes and Wheelwright, which of the following is not a major process flow structure?
Project
Which of the following is a reason that project management is important?
Projects are a way to promote effective leadership
Which of the following is a criticism made about CPM analysis?
Projects can change over time and networks can be inaccurate
The way to build in greater flexibility in your workers is to do which of the following?
Provide a broader range of training
The advantage(s) of work sampling compared to time study include all the following EXCEPT:
Provides a complete breakdown of elements
The Malcolm Baldrige award selection process helps improve quality and productivity bywhich of the following means?
Providing feedback to applicants by the examiners
Which of the following is a criterion that influences manufacturing plant or warehousefacility location decisions?
Proximity to customers
An advantage of the level strategy for aggregate operations planning is which of the following?
Purchased items from vendors can be delivered when and where needed
The Goods-Services Continuum consists of which set of the following categories?
Pure goods, core goods, core services, pure services
You have been placed in charge of a large project. Shortened communication lines are required to insure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management structure should you use in this situation?
Pure project
Which of the following addresses elimination of waste under lean production?
Quality at the source
Acquisition costs include which of the following costs?
Quality costs
The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming,and Joseph M. Juran had the same general message about what it took to achieve outstanding quality. Which of the following was not part of that message?
Quality is free
Value is the ratio of ____ to ____
Quality; price paid
An advantage of a make-to-stock process is which of the following?
Rapid delivery of a standard product
In conducting aggregate operations planning there are a number of required inputs. Which of the following are inputs considered external to the firm?
Raw material availability and competitor's behavior
Which of the following is a measure of operations and supply management efficiency used by Wall Street?
Receivable turnover
In implementing a lean production system you should work with suppliers to do which of the following?
Reduce lead times
To implement a Kanban pull system a firm would do which of the following?
Reduce lot sizes
To implement a flow process in developing a lean system a firm might do which of the following?
Reduce setup/changeover time
Group technology (GT) is credited with which of the following benefits?
Reducing waiting time between process operations
The dimension of design quality that concerns the consistency of performance over time or the probability of failing is which of the following?
Reliability
A useful measure of inventory performance is called "dollar days." In which of the following areas are dollar days measurements not useful?
Research and development
In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative products with a stable supply process is called which of the following?
Responsive
What dimension of competitiveness does time-to-market performance in product design and process selection impact?
Responsiveness to customer needs
n Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with an evolving supply process is called which of the following?
Risk hedging
The time required to produce a batch of parts is called:
Run time
Which of the following is a suggestion for managing queues that is mentioned in the textbook?
Segment the customers
Which of the following is not a way that operations and supply processes are categorized?
Selecting
Which of the following approaches to service design is characterized by having the customer take a greater role in the production of the service?
Self-service approach
Which of the following is one of the three contrasting approaches to delivering on-site service?
Self-service approach
Which of the following is not a characteristic that distinguishes services from goods?
Service jobs are unskilled
In practice, often _______ time is not included in the utilization of the process.
Setup time
Which of the following is an important element in the success of concurrent engineering?
Shared integrated design databases
Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations?
Short-range
In general, which forecasting time frame compensates most effectively for random variation and short term changes?
Short-term forecasts
Which of the following is an improvement-driven reason for outsourcing?
Shorten cycle time
Which of the following forecasting methods can be used for short-term forecasting?
Simple exponential smoothing
Which of the following forecasting methodologies is considered a time series forecasting technique?
Simple moving average
Design for manufacturing and assembly delivers product improvements by emphasizing which of the following?
Simplification of the product by reducing the number of separate parts
In a college registration process, several department heads have to approve an individual student's semester course load. What is the queuing system line structure?
Single channel, multiphase
A roller coaster ride in an amusement park employs which type of queuing system line structure?
Single channel, single phase
Getting an autograph from a famous person might involve standing in which type of queuing line structure?
Single channel, single phase
Machine breakdown and repair in a twelve machine factory having one repair mechanic would develop which type of queuing system line structure concerning machine breakdowns?
Single channel, single phase
Standing in line to buy a ticket for a movie where there is only one window to buy ticketsis which type of queuing system Line Structure?
Single channel, single phase
Processes can be characterized as:
Single stage or multi stage, make to stock or make to order, paced or non paced
Which of the following is not a benefit of a group technology layout?
Slower tooling changes
Which of the following queue discipline is mentioned in the textbook?
Soonest promise date
When balancing an assembly line, which of the following is not a way to reduce the longest task time below the required workstation cycle time?
Speed up the assembly line transfer mechanism
Which of the following is considered a "pure" production planning strategy?
Stable workforce, variable work hours
Which following production process term best describes the situation when activities in a stage of production must stop because there is no work?
Starving
Which of the following are not eligible to be considered for the Baldrige Award?
State highway patrol organizations
When a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called?
Straddling
Which of the following should we use an "R" chart to monitor process quality?
Students grades measure from 1 to 100
In development of an operations and supply strategy, which of the following would be an important product-specific criteria to consider?
Supplier after-sale support
Ownership costs include which of the following costs?
Supply chain costs
A pipeline through which material and information flows is a conception of a:
Supply network
The ability to maintain balance in a system is referred to as:
Sustainability
There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes?
Task
When the textbook presented the topic of job design decisions, the "what" of these decisions concerned which of the following?
Tasks to be performed
Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material. Which of the following is not an ownership cost listed in thetext?
Taxes
Which of the following are not examples of poka-yokes described in the text?
Tear-out cards in magazines
When developing an operations and supply strategy, which of the following is an important product-specific criterion to consider?
Technical liaison
In the design of retail service layouts, the term "ambient conditions" could refer to which of the following?
Temperature
Which of the following is not an analytical tool used in six-sigma quality improvement programs?
Tendency analysis
For an activity in a CPM analysis the Early Finish time is 20 and the Late Finish time is 20. Which of the following statements is true?
The activity is on the critical path
The major difference between the job shop and batch shop categories of process flow structures is which of the following?
The stability of the product line
If all activities included in a production process are value-added activities, which of the following is true?
The value added time is the sum of all the activity
An important issue in facility location analysis is business climate. An unfavorable business climate could be indicated by which of the following?
The willingness of local politicians to provide favorable treatment for a consideration
Which of the following is a basic type of production layout format?
Cellular layout
You want to develop a three-sigma "R" chart. You know the average range is 12 based on several samples of size 6. Which of the following is the resulting LCL?
0.0
You want to determine the lower control line for a "p" chart for quality control purposes.You take several samples of a size of 50 items in your production process. From the samples you determine the fraction defective is 0.006 and the standard deviation is 0.001. If the desired confidence level is 99.7 percent, which of the following is the resulting LCL value for the line?
0.003
You want to determine the control lines for a "p" chart for quality control purposes. If the total number of defects from all samples is 560, the number of samples is 70, and the sample size is 80, which of the following would be the standard deviation used in developing the control lines?
0.0335
You want to determine the control lines for a "p" chart for quality control purposes. If the total number of defects from all samples is 2,500, the number of samples is 100, and the sample size is 50, which of the following would be the standard deviation used in developing the control lines?
0.0707
You want to determine the upper control line for a "p" chart for quality control purposes. You take several samples of a size of 100 items in your production process. From the samples you determine the fraction defective is 0.05 and the standard deviation is 0.01. If the desired confidence level is 99.7 percent, which of the following is the resulting UCL value for theline?
0.08
If you are going to develop an "R" chart based on range statistics and you are using a sample size of 9 for your charting purposes. Which of the following is the lower control limit D3 factor for the chart?
0.18
If you were selecting a forecasting model based on MAD, which of the following MAD values reflects the most accurate model?
0.2
If the arrival rate for loading trucks is 5 trucks per hour, what is the mean time between arrivals?
0.2 hours
If you are going to develop an "X-bar" chart based on range statistics and you are using a sample size of 12 for your charting purposes. Which of the following is the A2 factor for the"X-bar" chart?
0.27
If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is inventory turnover?
0.5
Assume the service rate for a queue in a truck-loading operation is 2 trucks per hour. Using the infinite queuing notion for the models presented in the textbook which of the following is the average service time?
0.5 hours
A company wants to produce 800 units during a day where the assembly line operates a full 8-hour shift. The required cycle time in minutes is:
0.6
Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1440 and the required output per day in units is 2000?
0.72
If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity utilization rate?
0.75
You have just determined the actual number of workstations that will be used on an assembly line to be 8 using the assembly-line balancing procedure. The cycle time of the lineis 10 minutes and the sum of all that tasks required on the line is 60 minutes. Which of the following is the correct value for the resulting line's efficiency?
0.750
You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure. The cycle time of the line is 5 minutes and the sum of all that tasks required on the line is 25 minutes. Which of the following is the correct value for the resulting line's efficiency?
0.833
The type of processing structure that is used for producing discrete products at higher volume is:
Assembly line
Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400 units a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?
About 389
The item "most" emphasized by the survey respondents of the 1997 survey conducted by Roth, Chase, and Voss was:
Accessibility
Which of the following is the major reason that exponential smoothing has become well accepted as a forecasting technique?
Accuracy
In outsourcing which of the following internal activities and decision responsibilities cannot be transferred to outside contractors?
Activities involving shareholders
Which of the following is an assumption made in using CPM analysis?
Activities' sequential relationships can be specified and networked
Which of the following is not an infrastructure criteria used in facility location analysis?
Adequate low cost labor
The dimension of design quality that concerns the sensory characteristics of the product is which of the following?
Aesthetics
Which of the following is a dimension of design quality?
Aesthetics
In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following?
Agile
Which is the most challenging kind of supply chain to manage according to Hau Lee?
Agile supply chain
A reason for studying operations management (OSM) is which of the following?
All managers should understand the basic principles that guide the design of transformation processes
Important servicescape elements include:
All of the above
The major components of the queuing system are:
All of the above
The trends affecting job design decisions include:
All of the above
What is an important difference between capacity planning in services as contrasted to capacity planning in manufacturing operations?
All of the above
Which of the following is not an alternative identified in the service-system design matrix?
All of the above are identified
Which of the following would not be considered an input in the airline business?
All of the above are inputs
A production process is often depicted as a funnel. If liquid is poured into the funnel at a rate greater than it can exit:
All of the above are true
According to the theory of constraints which of the following can be a CCR?
An employee
According to the theory of constraints, which of the following can be a CCR?
An employee
An example of a virtual service is which of the following?
An online dating service
A fishbone diagram as part of a six-sigma quality improvement process might be found in which DMAIC category?
Analyze
Which of the following is the cost of quality classification for costs such as inspection, testing, and other tasks to ensure that the product or process is acceptable?
Appraisal costs
Global products are often designed to reflect which of the following?
As a series of standard modules
A chart used in process flow design depicting an exploded view of a product and its component parts is which of the following?
Assembly chart
The best process flow structure to use for making automobiles is?
Assembly line
An activity where the parts that go into each unit of a product are periodically removedfrom inventory and accounted for based on the number of units produced is called which of the following?
Backflush
Which of the following costs are relevant to aggregate operations planning?
Backordering costs
Some of the suggestions for a good layout for manufacturing and back-office operations include which of the following?
Backtracking kept to a minimum
To implement a flow process in developing a lean system a firm might do which of the following?
Balance workstation capacities
A customer who arrives, looks, and then leaves is:
Balking
In a workcenter machine A has a ten minute set-up time per batch and a two minute per unit run time. Machine B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit. The workcenter makes products in batches ranging from one unit to one hundred units. Assuming capacity is not a limitation on either machine, on which batches should machine B be used?
Batches of more than 20 units should be run on machine B
In a job shop Machine Center A has a ten minute set-up time per batch and a two minute per unit run time. Machine Center B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit. The job shop makes products in batches ranging from one unit to one hundred units. Assuming capacity is not a limitation on either machine, on which batches should Machine Center B be used?
Batches of more than 20 units should be run on machine center B
One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following are hidden costs that should be included in the analysis?
Becoming less responsive to the custoemr
________ is when the activities in the stage must stop because there is no place to deposit the item just completed.
Blocking
The most common things that can happen when two stages are directly linked are:
Blocking and starving
A difference between project and continuous flow categories of process flow structures is which two of the following?
Both A & C
he major decision variables in equipment selection are:
Both A and B
What is a word indicating a resource whose capacity is less than the demand placed on it?
Bottleneck or CCR
An area between stages where output is stored prior to its use in a downstream stage is called:
Buffer
The effect of the lack of synchronization among supply-chain members is referred to as which of the following?
Bullwhip effect
A simple project listing of five activities, their predecessors and their respective time estimates are presented below --> Using the CPM, which activities have slack in this project?
C
A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below --> Using CPM, which activities have slack in this project?
C, E
Failure mode and effect analysis is used in six-sigma projects. It involves which of the following?
Calculating a risky priority number for each possible failure
A company is concerned about the number of customers that have to wait for service in their customer service department. Assume the rate at which customers are serviced is 12 per hour. Using the infinite queuing notion for the models presented in the textbook which of the following is the mean time between arrivals?
Can not be determined
According to the theory of constraints, which of the following is a financial measure that can be used to measure the firm's ability to make money?
Cash flow
For which of the following should we use a "p" chart to monitor process quality?
Defective electrical switches
A flow chart as part of a six-sigma quality improvement process might be found in which DMAIC category?
Define
Which of the following forecasting methods is very dependent on selection of the right individuals who will judgmentally be used to actually generate the forecast?
Delphi method
Compared with a service operation, a manufacturing operation's capacity is which of the following?
Demand can be smoothed by inventory policies
From an operational perspective yield management is least effective under which of the following circumstances?
Demand is stable and close to capacity
The Malcolm Baldrige National Quality Award is given to organizations that have done which of the following?
Demonstrated outstanding quality in their products and processes
In designing a lean production facility layout a designer should do which of the following?
Design for work flow balance
Which of the following is not a suggestion for managing queues presented in the textbook?
Determine an acceptable waiting time for your customers
Design of experiments is a statistical methodology often used in six-sigma projects. It aims to accomplish which of the following?
Determine the cause and effect relationships between process variables and output
The six-step process for green sourcing includes which of the following?
Develop the sourcing strategy
A process flowchart uses which of the following symbols to represent a decision point in a flow diagram?
Diamond
In monitoring process quality we might use which of the following statistics?
Difference between the highest and lowest value in a sample
Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for optimized production technology?
Do not balance capacity, balance the flow
You are looking at a chart that has the terms BCWS, BCWP and AC indicating lines on the chart. What kind of chart are you looking at?
EVM chart
Which of the following is a characteristic of a well-designed service system?
Each element of service system consistent with the operating focus of the firm
Which of the following is not a measure of operations and supply management efficiency used by Wall Street?
Earnings per share
Some of the advantages for labor to increasing specialization of labor in job design include which of the following?
Ease in learning the job
The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as:
Economies of scope
Doing something at the lowest possible cost is called:
Efficiency
In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with a stable supply process is called which of the following?
Efficient
The placement of which of the following is not determined by process structure decisions?
Emergency exits
Which of the following is not an improvement-driven reason for outsourcing?
Enhance effectiveness by focusing on what you do best
Which of the following is not an element of a good service guarantee?
Ensures the firm makes a profit
According the ideas of work physiology, if a job requires a caloric expenditure above 5 calories per minute, what rest period is necessary?
Equal to or greater than time spent working
Which of the following is the cost of quality classification for costs such as defects that pass through the system, such as customer warranty replacements, loss of customer or goodwill, handling complaints, and product repair?
External failure costs
You are hired as a consultant to decide if your client should purchase a new, highly specialized, piece of equipment. The product to be produced by this equipment is forecast to have a total world wide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15 and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing?
The company's total margin will be less than its investment
A company has a MAD of 10. It wants to have a 99.7 percent control limits on its forecasting system. Its most recent tracking signal value is 31. What can the company conclude from this information?
The forecasting model is operating acceptably
You are hired as a consultant to advise a small firm on forecasting methodology. Based on your research you find the company has a MAD of 3. It wants to have a 99.7 percent control limits on its forecasting system. Its most recent tracking signal value is 15. What should be your report to the company?
The forecasting model is out of control and needs to be corrected
Which of the following is not an important element in the success of concurrent engineering?
The house of quality mix
You have just used the capability index (Cpk) formulas to compute the two values "min [1,1]." Which of the following is the proper interpretation of these numbers?
The mean has not shifted at all
You have just used the capability index (Cpk) formulas to compute the two values "min [2,2.5]." Which of the following is the proper interpretation of these numbers?
The mean of the production process has shifted to the left of the design limits
You have just used the capability index (Cpk) formulas to compute the two values "min[1.5, 1]." Which of the following is the interpretation of these numbers?
The mean of the productive process has shifted to the right of the design limits
If a firm produced a product that is experiencing growth in demand, the smoothing constant alpha used in an exponential smoothing forecasting model would tend to be which of the following?
The more rapid the growth, the higher the percentage
The exponential smoothing method requires which of the following data to forecast the future?
The most recent forecast
Which of the following are the two major components of a queuing system?
The number of servers and the waiting line
The term "servicescape" refers to which of the following?
The physical surroundings in which the service takes place
A break even point indicates which of the following:
The point where cost is minimized
From an operational perspective yield management is least effective under which of the following circumstances?
The product can be kept to be sold when demand is stronger
We may prefer a simulation model to a queuing model when:
The service facilities we wish to model are connected to each other
For an activity in a CPM analysis, the Early Finish time is 8 and the Late Finish time is 10. Which of the following statements is true?
The slack for this activity is 2
The time required to change a machine from making one product or service to the next is called:
setup time
Work should be released into the system:
when the bottlenecks need work
