Production and Operations Management Final
A forecasting method has produced the following over the past five months. What is the mean absolute deviation?
1.2
A certain type of computer costs 1,000, and the annual holding cost is 25%. Annual demand is 10,000 units and the order cost is 150 per order. What is the approximate economic order quantity?
110
A foundry produces circular utility access hatches (manhole covers). If 120 covers are produces in a 10-hour shift, the productivity of the line is
12 covers/hr
If the basic EOQ model, if D=6000 per year, S=100, H=5 per unit per month, the economic order quantity is approximately
141
The last four months of sales were 8, 10, 15, and 9 units. The last four forecasts were 6, 7, 12, and 11 units. The Mean Absolute Deviation is
2.5
Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the production is increased 10%, it would be
220 valves/hr
Four hundred and eighty minutes of production time are available per day. Scheduled production is 120 units per day. What is the required cycle time?
4 minutes
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?
4.16
What is the approximate forecast for May using a four-month moving average?
44
Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 80 units per day. Each unit of the product requires 30 minutes of work. What is the theoretical minimum number of workstations?
5
Suppose that the allowance factor for a job is 0.10, and the normal time is 5 hours. What is the standard time?
5.6 hours
Given an actual demand of 61, a previous forecast of 58, and an alpha of .4, what would the forecast for the next period be using simple exponential smoothing?
59.2
A production line is to be designed for a job with four tasks. The task times are 2.4 minutes, 1.4 minutes, 0.9 minutes, and 1.7 minutes. The maximum cycle time is _____ and the minimum cycle time it
6.4; 2.4
The average observed time for a given job is 10 minutes. The performance rating is 80%, and allowances are set by contract at 10%. What is the standard time?
8.88 minutes
Given an actual demand of 103, a previous forecast of 98, and an alpha of .3, the exponential smoothing forecast for the next period would be
99.5
Which of the following is not a limitation of job expansion?
All of the Above are limitations of job expansion
Identify the seven steps involved in forecasting
Determine use of forecast Select items to forecast Determine time horizon select forecasting models Gather data needed make the forecast Validate model and implement results
_____ is a standardized data-transmittal format for computerized communications between organizations.
Electronic data interchange
Which of the following is not a step in the forecasting process?
Eliminate any assumptions
The "Father of Scientific Management" is
Frederick W. Taylor
The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Dues to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to production?
It has increased by 20%
____ is an approach that seeks efficiency of operations through the integration of all material acquisition, movement, and storage activities.
Logistics management
Identify the five supply-chain strategies
Many Suppliers, Few Suppliers, Vertical Integration, Keiretsu, Virtual companies
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.
One; 400
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?
Process Y is cheaper than process X at all volumes
Which of the following technologies could enable a cashier to scan the entire contents of a shopping cart in seconds?
RFID
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 D. C and D are both immediate predecessors of E. Which of the following statements is true?
There are four paths in this network
Time series data may exhibit which of the following behaviors?
They may exhibit all of the above
Who among the following is associated with contributions to quality control in operations management?
W. Edwards Deming
Four types of inventory
Work in Process, Repair & operating supply, Raw materials, Finished goods
The fixed position layout would be most appropriate in which of the following settings?
a cruise ship assembly facility
Which distribution system is the fastest growing mode of shipping?
airfreight
Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?
airfreight
Labor standards are defined as the
amount of time required to perform a job or part of a job
ABC analysis divides on-hand inventory into three classes, generally based upon
annual dollar volume
Forecasts
are rarely perfect
Henry Ford is noted for his contributions to
assembly line operations
Which of the Hackman and Oldman's five job characteristics refers to providing a worker a say in the work methods that he/she wishes to utilize?
autonomy
In time studies, normal time is
average observed time multiplied by a performance rating factor
Therbligs are
basic physical elements of motion as used in methods time measurement exercises
Which of the following is NOT one of the phrases of project management?
budgeting
The purpose of safety stock is to
control the likelihood of a stockout due to the variability of demand during lead time
What are the three classic types of negotiation strategies?
cost-based price model, market-based price model, and competitive bidding
Which of the following requires an information system that provides inbound product identification, its destination, and routing of the product to the designated outbound vehicle?
cross-docking
Cycle time is computed as
daily operating time divided by the scheduled output
One of the elements of ergonomics is
designing tools and machines that facilitate human work
The objective of layout strategy is to
develop an efficient and effective system that meets competitive requirements
A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing
drop shipping
The fundamental difference between cycles and seasonality is the
duration of the repeating patterns
The three major types of forecasts used by business organizations are
economic, technological, and demand
Ambient conditions, spatial layout and functionality, and signs, symbols, and artifacts are all
elements of servicescapes
The difference between job enrichment and job enlargement is that:
enriched jobs involve vertical expansion, while enlarged jobs involve horizontal expansion
Which time series model uses past forecasts and past demand data to generate a new forecast?
exponential smoothing
When a worker obtains clear and timely information about higher performance, his/her job includes which of the following characteristics?
feedback
A manufacturing plant allows its engineers to come in at 7 A.M. plus or minus an hour but still requires them to work 8-hour days. Which of the following scheduling techniques is the firm employing?
flextime
Service blueprinting:
focuses on the provider's interaction with the customer
A product focused process is commonly used to produce
high-volume, low-variety products
E-procurement
is the same thing as Internet purchasing
One use of short-range forecasts is to determine:
job assignments
Four of the components of job design are
job specialization, job expansion, psychological components, aelf-directed teams
Japanese manufacturers often pursue a strategy that is part collaboration, part purchasing from a few suppliers, and part vertical integration. What is this approach called?
keiretsu
Three commonly used productivity variables are
labor, capital, management
Which of the following supply-chain strategies creates value by allowing suppliers to have economies of scale?
long-term partnering with few suppliers
Which of the following phrases best describes process focus?
low volume, high variety
The objective of human resource strategy is to
manage labor and design jobs so people are effectively and efficiently utilized
The purchasing approach that holds the suppliers responsible for maintaining the necessary technology, expertise, and forecasting ability plus cost, quality, and delivery competencies is
many suppliers
Which of the following are the primary functions of all organizations?
marketing, operations, and finance/accounting
The main goal of retail layout is
maximizing high0margin sales
In assembly line balancing, cycle time (the ratio of available production time to scheduled production) is the
maximum time that a product is allowed at each workstation
Drop shipment
means the supplier will ship directly to the end consumer, rather than to the seller
The primary purpose of the mean absolute deviation (MAD) in forecasting is to
measure forecast accuracy
A forecast with a time horizon of about 3 months to 3 years is typically called a
medium-range forecast
Flow diagrams are used to analyze
movement of people or material
The total of all outputs produced by the transformation process divided by the total inputs is
multifactor productivity
Eli Whitney, in the _____, provided the foundations for _____ in operations management.
nineteenth century; interchangeable parts
The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is
outsourcing
The Ten Critical Decisions of Operations Management include
process and capacity design
Three of the four types of processes are
process focus, repetitive focus, and product focus
Goods made to order are typical of _______ and ______ approaches while goods mades to forecast are typical of _____ and _____ approaches.
process, mass custimization; repetitive, product
The type of layout which features departments or other functional groupings in which similar activities are performed is
process-oriented
Which of the following best describes vertical integration?
produce goods or services previously purchased
Which layout's main objective is to equalize the task time for each station?
product oriented
Cycle counting
provides a measure of inventory accuracy
The two general approaches to forecasting are:
qualitative and quantitative
The service sector has lower productivity improvements than the manufacturing sector because
services usually are labor-intensive
Forecasts are usually classified by time horizon into three categories
short-range, medium-range, and long-range
While freight rates are often based on very complicated pricing systems, in general, the primary freight price factor is based on which of the following attributes?
speed of shipment
A disadvantage of the "few suppliers" strategy is
the high cost of changing partners
Which of the following statements describes job rotation?
the operator is allowed to move, for example, from one type of CNC machine to another
The time an activity will take assuming very unfavorable conditions is
the pessimistic time
Takt time is
the total work time available divided by units required by the consumer
ABC analysis is based upon the principle that
there are usually a few critical items, and many items which are less critical
Operations management is applicable
to all firms, whether manufacturing and service
The primary purpose of the basic economic quantity model shown below is
to minimize the sum of setup cost and holding cost
The crossover point is that production quantity where:
total costs for one process equal total costs for another process
Most inventory models attempt to minimize
total inventory based costs
Harley Davidson:
uses work cells to feed its assembly line
Activity charts help analyze:
utilization of an operator and machine
Balancing low-cost storage with low-cost material handling is important in a(n)
warehouse layout
WBS stands for which of the following project management tools?
work breakdown structure
"A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type?
work cell
