Exam 3

Efficiency is defined as the ratio of: A. actual output to effective capacity. B. actual output to design capacity. C. design capacity to effective capacity. D. effective capacity to actual output. E. design capacity to actual output.

A. actual output to effective capacity

Similar to that in manufacturing, the service scheduling hierarchy begins with __________ and ends with _________. A. aggregate planning; detailed daily scheduling B. aggregate planning; master scheduling C. master scheduling; detailed material planning D. aggregate planning; detailed material planning E. quarterly planning; monthly planning

A. aggregate planning; detailed daily scheduling

Which of the following is not an example of a high-volume system? A. aircraft manufacturing B. magazine printing C. petroleum refining D. waste treatment E. commercial donut baking

A. aircraft manufacturing

The lean philosophy suggests that workers are: A. assets. B. liabilities. C. interchangeable. D. replaceable. E. to be phased out.

A. assets

The development and application of MRP depended upon two developments: (1) the recognition of the difference between independent and dependent demand, and (2): A. computers. B. development of the EOQ model. C. inventory control systems. D. blanket purchase orders. E. the Internet.

A. computers

Building up an inventory of standard parts or modules instead of immediately producing the finished end items is the essence of: A. delayed differentiation. B. kanban. C. autonomation. D. andon. E. matrix management.

A. delayed differentiation

Which of the following is not a criterion for developing capacity alternatives? A. design structured, rigid systems B. take a big-picture approach to capacity changes C. prepare to deal with capacity in "chunks" D. attempt to smooth out capacity requirements E. identify the optimal operating level

A. design structured, rigid systems

It is especially the case for small businesses that closer interactions and increased agility make __________ relatively more attractive. A. domestic suppliers B. centralized purchasing C. global suppliers D. decentralized purchasing E. risk transfer

A. domestic suppliers

In an assignment model where there are fewer jobs than resources: A. dummy jobs are needed to solve the problem. B. dummy resources are needed to solve the problem. C. the problem cannot be solved using an assignment model. D. the problem will have multiple optimum solutions. E. the simplex method must be used to solve the problem.

A. dummy jobs are needed to solve the problem

Which of the following is determined as a direct result of computing the earliest starting and finishing times for the activities of a project network? A. expected project duration B. activity slack time C. which activities are on the critical path D. variance in project duration E. maximum project duration

A. expected project duration

Last quarter, a retailer sold 8,000 T-shirts, 7,000 of which were sold directly from on-hand inventory. This retailer's ________ was 88 percent. A. fill rate B. inventory yield C. profit margin D. inventory turnover E. working yield

A. fill rate

Improving cash flow would be a reasonable thing to focus on when trying to overcome a _________ constraint. A. financial B. market C. demand D. supplier E. material

A. financial

The symbols for operation, storage, transportation, inspection, and delay would usually be found on which type of chart? A. flow process B. Gantt C. simultaneous motion D. worker-machine E. delay analysis

A. flow process

The methods analysis chart which describes the overall sequence of operations, transportation, storage, delays, and inspection is a: A. flow process chart. B. worker-machine chart. C. gang process chart. D. simultaneous-motion chart. E. time/efficiency chart.

A. flow process chart

A production kanban card is used to signal that: A. work is needed at the work center. B. work is ready to be moved to the next station. C. a problem exists. D. a machine has broken down and needs immediate attention. E. a machine is ready for preventive maintenance.

A. work is needed at the work center

The chart used to focus on busy and idle portions of a work cycle is a: A. worker-machine chart. B. Gantt chart. C. simo chart. D. idle chart. E. flow process chart.

A. worker-machine chart

Organizations with fixed, perishable capacity can benefit from: A. yield management. B. price increases. C. constraints. D. suboptimization. E. waiting lines.

A. yield managment

Utilization is defined as the ratio of: A. actual output to effective capacity. B. actual output to design capacity. C. design capacity to effective capacity. D. effective capacity to actual output. E. design capacity to actual output.

B. actual output to design capacity

Which of these products would be most likely to have dependent demand? A. refrigerators B. automobile engines C. televisions D. brownies E. automobiles

B. automobile engines

Production units have an optimal rate of output where: A. total costs are minimum. B. average unit costs are minimum. C. marginal costs are minimum. D. rate of output is maximum. E. total revenue is maximum.

B. average unit costs are minimum

Which of the following is not a strategy to manage service capacity? A. hiring extra workers B. backordering C. pricing and promotion D. part-time workers E. subcontracting

B. backordering

In work sampling, observations should be taken: A. at the same time each day. B. within a short period of time. C. at randomly determined times. D. once every hour. E. once every day.

C. at randomly determined times

The term that refers to the automatic detection of defects is: A. kaizen. B. kanban. C. autonomation. D. automation. E. 100 percent inspection.

C. autonomation

Outsourcing followed by __________ is not simple. A. integration B. unionization C. backsourcing D. computerization E. just-in-time

C. backsourcing

Which of the following lot sizing methods does not attempt to balance ordering (or setup) and holding costs? A. economic order quantity B. economic run size C. lot-for-lot D. part-period E. all of these

C. lot-for-lot

Which of the following is not usually necessary in order to have an effective MRP system? A. a computer and software B. an accurate bill of materials C. lot-for-lot ordering D. an up-to-date master schedule E. integrity of file data

C. lot-for-lot ordering

An MRP system whose records are updated continuously is referred to as a(n): A. regenerative system. B. batch-type system. C. Plossl-Wright system. D. net-change system. E. gross-change system.

net-change system

A computer-based information system designed to handle ordering and scheduling of dependent-demand inventories is: A. computer-aided manufacturing. B. computer-integrated manufacturing. C. economic order quantity. D. material requirements planning. E. economic run size.

D. material requirements planning

Standard times derived from a firm's historical data are known as: A. predetermined times. B. MTM. C. work sampling times. D. judgmental times. E. standard elemental times.

E. standard elemental times

If a firm's product mix is 60 percent of product A and 20 percent each of products B and C, and optimal mix-model production schedule would be successive sequences of AAABC

FALSE

If optimal sequencing through three work centers is desired, Johnson's rule II is used rather than Johnson's rule

FALSE

If the expected length of a path is more than 2.5 standard deviations less than a desired project completion time, the path will not be a factor in assessing the probability of finishing the project on time.

FALSE

If the unit cost to buy something is less than the variable cost to make it, the decision to make or buy is based solely on the fixed costs

FALSE

If two consecutive activities have shared slack, this means that each of them can use only half of the slack without delaying completion of the project.

FALSE

If two consecutive activities on the same path each have two days of activity slack, this means that each of them can be delayed by two days without delaying the project.

FALSE

In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper-level assemblies of the bill of materials since higher-level assemblies have larger dollar investments

FALSE

In a single work center, makespan improvement can be accomplished by selecting the optimal sequencing rule

FALSE

In cost-volume analysis, costs that vary directly with volume of output are referred to as fixed costs because they are a fixed percentage of output levels

FALSE

In e-commerce, the front-end design is significantly more important than the back-end design.

FALSE

In lean operations, when work is completed at one work center, it is important to immediately move the completed work to the next work center to minimize idle time

FALSE

In purchasing, one's only ethical obligation is to one's suppliers

FALSE

In supply chain organizations, function must operate independently of each other

FALSE

In the lean philosophy, producing more than two order quantities represents waste

FALSE

In the lean philosophy, the larger the lot size, the easier it is to schedule

FALSE

Increasing capacity just before a bottleneck operation will improve the output of the process

FALSE

Increasing compensation is always a way to improve worker satisfaction

FALSE

Independent demand tends to be more "lumpy" than dependent demand, meaning that we need large quantities followed by periods of no demand

FALSE

Input/output (I/O) control refers to monitoring the productivity changes since productivity is determined by the ration of output to input

FALSE

Inventory velocity refers to the average speed (in miles/hour) of material handling equipment in a warehouse.

FALSE

Job design relates to people, therefore technology has little impact

FALSE

Job enrichment involves giving workers a greater share of the total task; which is why they feel enriched

FALSE

Kanban is the Japanese term for autonomation

FALSE

Lean operations cannot easily handle changes of output or product mix

FALSE

Lean purchasing requires frequent contract bidding by multiple sources to ensure the buyer of competitive prices

FALSE

Lean systems typically require that suppliers be able to provide large lots at periodic intervals

FALSE

Limited WIP lowers inventory carrying costs but reduces flexibility

FALSE

Line balancing is a major factor in the design and scheduling of low-volume systems because of batch processing

FALSE

Lot-for-lot ordering in MRP provides coverage for some predetermined number of periods (such as two or three) that extend beyond the orders already received for those periods

FALSE

Low-level coding represents items less than $18 per unit

FALSE

MRP II is simply an improved version of MRP that processes more quickly and can plan for a larger number of end items

FALSE

MRP output reports are divided into two main groups, daily and weekly

FALSE

MRP, considering inventory position, bills of material, open purchase orders and lead times guarantees a feasible production plan if the inputs to MRP are accurate

FALSE

Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs.

FALSE

Many activities have slack time; if we add these slack times together, this represents the potential improvement in early completion for the project.

FALSE

Matrix organizations transfer control of workers to project managers for the duration of the project.

FALSE

Measured day work refers to an output-based system

FALSE

Methods analysis cannot be done for new jobs (ones that do not yet exist) since it requires observation of the process

FALSE

Motivation influences quality and productivity, but not the work environment

FALSE

Net requirements equal gross cost requirements minus safety stock

FALSE

Once a project is approved and underway, project managers are only responsible for effectively managing time and costs which, if done well, will assure project completion on time and on budget.

FALSE

One disadvantage to RFID is that it requires a clear "line of sight" to operate.

FALSE

One potential disadvantage of self-directed teams is higher training costs

FALSE

One therblig is the equivalent of one hour of sustained work by one average person

FALSE

One way of reducing the number of suppliers to the organization is to limit contacts to two tiers of suppliers

FALSE

Outsourcing logistics gives a company less flexibility because it forces them to focus more on core businesses.

FALSE

Outsourcing some production is a means of supporting a constraint

FALSE

Path probabilities are calculated by dividing path mean by path standard deviations.

FALSE

Predetermined time standards are usually based on observing one very efficient worker performing the task

FALSE

Predetermined time standards use historical data from a company's own files

FALSE

Preventing maintenance will eliminate the need to carry supplies of spare parts

FALSE

Preventive maintenance is additional maintenance done immediately after a breakdown has occurred to help prevent any further breakdowns

FALSE

Price is the primary determining factor in choosing a vendor since most products are essentially the same.

FALSE

Priority rules are used in low-volume systems to identify an optimal processing sequence

FALSE

Priority rules are widely used to sequence jobs in high-volume systems

FALSE

Project management software eliminates conflicts when there are shared resources.

FALSE

Self-directed teams help other work groups make changes to their processes

FALSE

Splitting a large lot after one operation beyond a bottleneck operation would reduce the overall waiting time of the bottleneck operation

FALSE

Starting with the final customer and moving backward through the supply chain, batch sizes and the level of safety stock tend to decrease.

FALSE

Stating capacity in dollar amounts generally results in a consistent measure of capacity regardless of the actual units of measure

FALSE

Studies on worker efficiency and time of day suggest that the greatest efficiency is at the end of the day when workers are "warmed up"

FALSE

The assignment method is limited to a maximum of two jobs per resource

FALSE

The bill of materials contains information on lead times and current inventory position on ever component required to produce the end item

FALSE

The bill of materials indicates how much material will be needed to produce the quantities on a given master production schedule

FALSE

The current trend toward global operations has made capacity decisions much easier since we have the whole world in which to consider operations

FALSE

The design of the supply chain and establishing partnerships with vendors and distributors are examples of operational issues in a supply chain.

FALSE

The design of work systems, because objective standards are used, avoids most ethical issues

FALSE

The earliest finish time for an activity is equal to the latest finish time minus the activity time.

FALSE

The elimination of idle time on both bottleneck and non-bottleneck operations must be accomplished to optimize output

FALSE

The gross requirements at one level of an MRP plan determine the gross requirements at the next lower level continuing on down to the lowest levels shown on the bill of material

FALSE

The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent

FALSE

The higher the node number, the longer the activity will take.

FALSE

The importance of purchasing relates only to the cost of parts and materials purchased, which is often 60 percent or more of the cost of finished goods.

FALSE

The lean philosophy recognizes that some work-in-process inventories are a necessary investment to allow for smooth work flow

FALSE

The materials in the supply chain flow toward the end of the chain, while the information and the dollars move toward the beginning of the chain

FALSE

The more current capacity exceeds desired capacity, the greater the opportunity for profit

FALSE

The most widely used method of work measurement is work sampling

FALSE

The normal time for a job is multiplied by the performance rating to obtain the standard time for the job

FALSE

The optimization of the supply chain uses a mathematical model to determine the optimal number of business organizations to be included in the chain.

FALSE

The path in a network with the average length of time to completion is called the critical path.

FALSE

The probability of occurrence of risk events is lower near the beginning of a project and higher near the end of the project since very few activities remain.

FALSE

The quantity sent to a bottleneck operation could be split into two or more process batches to better utilize a bottleneck resource rather than process the entire batch

FALSE

The quickest, most effective way to improve an employee's job satisfaction is to increase his or her compensation

FALSE

The small lot-sizing policy works well in a situation where both holding costs and setup costs are high

FALSE

The standard deviation of the critical path is equal to the sum of the standard deviations of all of the activities on the critical path.

FALSE

The term 'loading,' as used in scheduling, refers to choosing the order in which jobs will be processed in low-volume systems

FALSE

The total cost of crashing any one activity should never exceed 20 percent of the total cost of the original project.

FALSE

The use of small lot sizes in lean operations is in conflict with the EOQ approach since setup costs tend to be significantly higher than holding costs

FALSE

Time-based systems compensate employees according to the time they have worked and the amount of output they produce

FALSE

Traffic management refers to truck movement within our parking areas.

FALSE

Using third-party logistics involves using your organization's logistics function to ship to customers that are not officially part of the supply chain

FALSE

Utilization is defined as the ratio of the effective capacity to design capacity

FALSE

Value stream mapping is a technique focused on finding new ways of adding value for critical stakeholders such as customers

FALSE

Vendor analysis examines the function of purchased parts and materials with a view toward improvement or cost reduction.

FALSE

We incorporate the average seriousness of accidents by measuring the number of lost-time accidents per million labor hours worked

FALSE

When operations are often bottlenecked, additional planned idle time will improve the throughput in those areas

FALSE

When orders exceed our capacity, priority rules are used to select which orders will be accepted

FALSE

Work sampling provides a detailed elemental breakdown of a task for purposes of establishing reliable time standards

FALSE

Work sampling provides both quick and accurate estimates of activity times

FALSE

A Gantt chart is a basic scheduling tool that is most useful in low-volume systems

TRUE

A basic requirement for operating with low inventories in lean systems is that major system problems must already have been solved and new problems will be solved as they appear

TRUE

A benefit of the lean philosophy is the flexibility to respond quickly to changing customer requirements

TRUE

A bill of materials contains a listing of all the assemblies, parts, and materials needed to produce one unit of an end item

TRUE

A company's supply chain involves the flow of materials and information from suppliers, through production, to the end users

TRUE

A schedule chart can be used to monitor job progress

TRUE

A worker-machine chart can be used to determine how many machines an operator can manage

TRUE

Although PERT and CPM were originally developed for somewhat different types of projects, they are now nearly identical in terms of analysis and procedures.

TRUE

An advantage of decentralized purchasing is the attention given to local needs.

TRUE

An advantage of work sampling, compared to a stopwatch time study, is that observations are spread out over a period of time in work sampling

TRUE

An example of an external factor that influences effective capacity is government safety regulations

TRUE

As long as the bottleneck operations are used effectively, idle time in non-bottleneck operations will not affect the overall productivity of the system

TRUE

Bottlenecks may shift with the passage of time, so that different operations become bottleneck operations at different times

TRUE

Bullwhip effect refers to a phenomenon in which demand variations that exist at the customer end of the supply chain are magnified as orders are generated back through the supply chain.

TRUE

Capacity decisions often involve a long-term commitment of resources which, when implemented, are difficult or impossible to modify without major added costs

TRUE

Capacity increases are usually acquired in fairly large "chunks" rather than in smooth increments

TRUE

Capacity planning requires an analysis of needs: what kind, how much, and when

TRUE

Creating an effective supply chain requires linking the marketing, distribution, and supplier channels.

TRUE

Decentralized purchasing can usually offer quicker response than centralized purchasing.

TRUE

Delayed differentiation is a means of increasing product variety without building the customized product from scratch or keeping large inventories of custom products.

TRUE

Design capacity refers to the maximum output that can possibly be attained

TRUE

Disintermediation refers to the phenomenon that the traditional retailer or service provider is reduced or eliminated in a supply chain.

TRUE

E-commerce refers to the use of electronic technology to facilitate business transactions.

TRUE

ERP began in manufacturing organizations but has spread into service organizations

TRUE

Ergonomics is important for preventing common workplace injuries such as back injuries and repetitive-motion injuries

TRUE

Every business organization is a part of at least one supply chain

TRUE

Fast and simple are two common threads that run through the four building blocks of lean operations

TRUE

Flow-shop scheduling is used in high-volume systems.

TRUE

Frequent deliveries of small shipments can reduce inventory but also result in an increase in the transportation cost per unit

TRUE

Good project management is especially important with virtual teams.

TRUE

Important factors in purchasing include the cost of goods purchased, the quality of goods and services, and the timing of deliveries of goods or services.

TRUE

In a lean environment, anything not essential to the product or process is viewed as waste

TRUE

In a pull system, a quantity of inventory in front of a workstation indicates problems at that workstation

TRUE

In lean operations, a responsibility of the cross-trained worker is to check the quality of the work of others

TRUE

In lean operations, input resources arrive for processing only after the preceding batch has been completed

TRUE

In order to determine the probability of timely project completion, it is sometimes necessary to take into account paths other than the critical path.

TRUE

In the decision-making hierarchy, scheduling decisions are the final step in the transformation process before actual output occurs

TRUE

In the lean approach, inventories are reduced gradually, instead of eliminating inventories as rapidly as possible

TRUE

Increased setup times equal increased work-in-process inventories

TRUE

Increasing productivity and also quality will result in increased capacity

TRUE

Infinite loading and finite loading are two major approaches used to load work centers

TRUE

Information technology is the key to success of global supply chains.

TRUE

Initially, a master production schedule--the output from MRP--may not represent a feasible schedule

TRUE

It would be acceptable to use a group incentive plan for an assembly line operation

TRUE

Job enrichment involves an increase in the level of responsibility for planning and coordinating tasks

TRUE

Kanban focuses on specific part numbers; CONWIP does not

TRUE

Lean systems often use layouts that are based on group technology product requirements

TRUE

Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center

TRUE

Loading is the determination of which work centers should perform jobs

TRUE

Lot-for-lot ordering in MRP eliminates the holding costs for parts that are carried over to other periods

TRUE

Lumpy demand for components results primarily from the periodic scheduling of batch production

TRUE

MRP II did not replace or improve the basic MRP

TRUE

MRP is used within most MRP II and ERP systems

TRUE

MRP works best if the inventory items have dependent demand

TRUE

Makespan is the total time needed to complete a group of jobs

TRUE

Many lower-level jobs are monotonous and boring

TRUE

Methods analysis and motion study techniques do not directly consider behavioral aspects of jobs

TRUE

Most likely time generally is more than optimistic time.

TRUE

Most people working for a business organization are somehow involved with the supply chain of that business.

TRUE

No stopwatch is required in a work sampling study

TRUE

One disadvantage of specialization is worker dissatisfaction

TRUE

One factor in determining how many cycles to time in a time study is the degree of variation that is present in the observed times

TRUE

One important factor that influences productivity is trust between workers and managers

TRUE

One major difference between the use of kanban and MRP in scheduling the products to be built is that kanban is primarily a manual system while MRP uses computers

TRUE

One of the major reasons for a company to adopt third-party logistics is to concentrate on one's core business.

TRUE

One of the potential benefits of self-directed teams is higher productivity and greater worker satisfaction

TRUE

One of the potential benefits of self-directed teams is higher quality

TRUE

One of the primary output reports of MRP concerns changes to planned orders

TRUE

One potential benefits of self-directed teams is higher quality

TRUE

One problem with lean operations is that they can lead to much frustration and disappointment of people on the shop floor due to the need for continuously monitoring and expediting resource availability

TRUE

One reason that accurate bills of material are important is that errors at one level become magnified at lower levels because of the multiplication process used by MRP

TRUE

One way that project management differs from management of more traditional activities is because of the limited lifetime of projects.

TRUE

Output-based systems compensate employees according to the amount of output they produce, thereby tying pay directly to performance

TRUE

Predetermined time standards involve the use of published data regarding how long various activities are expected to take

TRUE

Priority rules generally assume that job setup cost is independent of processing sequence of jobs

TRUE

Project management approaches can help in a conversion to an ERP system

TRUE

Quality and highly capable production systems are requirements for the successful implementation of lean operations

TRUE

RFID eliminates the need for counting and bar-code scanning.

TRUE

Returned goods are part of reverse logistics.

TRUE

Safety time is sometimes used in MRP rather than safety stock quantities

TRUE

Schedule in intermediate-volume systems has three basic issues: run size, timing, and sequence

TRUE

Scheduling and maintaining equipment are operational decisions.

TRUE

Self-directed teams are allowed to make changes in the work processes under their control

TRUE

Sequencing is concerned with the order in which jobs are done, while loading is concerned with assigning jobs to work centers or workstations

TRUE

Setup time and its associated cost can often be reduced by the use of group technology

TRUE

Slack time is equal to LS-ES or LF-EF.

TRUE

Some firms have structured their procurement function to include both centralized and decentralized purchasing.

TRUE

Some organizations use a matrix organization to integrate the activities of specialists within a functional framework.

TRUE

Specialization is one of the sources of disagreement between the efficiency and behavioral approaches to job design

TRUE

Strategic partnering is encouraged when two or more business organizations have complementary products or services that would benefit the others.

TRUE

The SPT priority rule always results in the lowest average completion time

TRUE

The assignment model seeks an optimum matching of tasks and resources

TRUE

The break-even quantity can be determined by dividing the fixed costs by the difference between the revenue per unit and the variable cost per unit

TRUE

The costs associated with risk events tend to be lower near the beginning of a project and higher near the end of the project.

TRUE

The earliest finish time for an activity is equal to the latest finish time minus the activity slack.

TRUE

The four building blocks of lean operations are: product design, process design, personnel/organizational elements, and manufacturing planning and control

TRUE

The goal of lean operations is to produce output using fewer resources than traditional planning systems

TRUE

The goal of supply chain management is to synchronize supply and demand of all of the organizations that are part of the chain.

TRUE

The inventory records contain information on the status of each item by the time period

TRUE

The latest starting time for an activity is equal to the latest finish time minus the activity time.

TRUE

The main function of dummy activities is to clarify relationships in network diagrams.

TRUE

The master production schedule states which end items are to be produced, in addition to when and how many

TRUE

The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items

TRUE

The need for supply chain management increases as globalization increases.

TRUE

The network diagram describes sequential relationships among major activities on a project.

TRUE

The normal time in time study is obtained by multiplying the observed time by the performance rating

TRUE

The output of the system cannot exceed the output of the bottleneck operation(s).

TRUE

The probability that the project will go beyond the desired time is equal to one minus the joint probability that all paths will be completed within the desired time.

TRUE

The project computing algorithm requires both a forward and a backward pass.

TRUE

The service function of purchasing interfaces with many areas, including legal, accounting, and engineering functions.

TRUE

The standard time for a job can be obtained by multiplying the normal time by an appropriate allowance factor

TRUE

The sum of times of the longest path in a network indicates expected project completion time, and the activities represent the critical activities.

TRUE

The task of identifying risks should involve everyone associated with the project.

TRUE

The term 'capacity' refers to the maximum quantity an operating unit can process over a given period of time

TRUE

The term 'pegging' refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly

TRUE

The theory of constraints has a goal of maximizing flow through the entire system

TRUE

The ultimate goal of lean operations is a system characterized by the smooth, rapid flow of materials

TRUE

Therbligs are basic elemental motions

TRUE

To avoid temporary storage in a warehouse, cross-docking can be used.

TRUE

Trust is a factor influencing productivity

TRUE

Using third-party fulfillment means losing control of fulfillment.

TRUE

Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.

TRUE

Waiting line analysis can be useful for capacity design, especially for service systems

TRUE

Work measurement concentrates on how long the tasks take to accomplish

TRUE

Work sampling can be used to estimate the proportion of time a machine is idle

TRUE

Work sampling involves the use of some method of randomizing the observations

TRUE

Which of the following is not a determinant of effective capacity? A. facilities B. product mix C. actual output D. human factors E. external factors

C. actual output

A system of lights used at each workstation to signal problems or slowdowns is: A. a command and control center. B. automation. C. andon. D. a pull system. E. kanban.

C. andon

Scheduled due dates are the result of: A. promises to customers. B. MRP processing. C. managerial decisions. D. all of the choices. E. our competitor's promises.

D. all of the choices

For purpose of obtaining good time standards using a stopwatch time study, the analyst should try to avoid having the worker discover he or she is being observed

FALSE

Forming strategic partnerships is beneficial for two or more business organizations that have the same products or services.

FALSE

Gatekeeping manages the cost of shipping returned goods.

FALSE

The priority rule where jobs are processed according to the smallest ratio of due date to processing time is: A. CR. B. EEDD. C. FCFS. D. S/O. E. SPT.

A. CR

Which of the following are limitations of PERT? (I) Time estimates may include a fudge factor. (II) Important activities may be overlooked. (III) It is an after-the-fact analysis. A. I and II B. I, II, and III C. I and III D. II and III E. I only

A. I and II

Strategies to address supply chain risks include: (I) risk avoidance. (II) risk reduction. (III) risk projection. (IV) risk sharing. A. I, II, and IV only B. II and III only C. I and IV only D. II and IV only E. I, II, III, and IV

A. I, II, and IV only

Which of the following is absolutely necessary for successful implementation and operation of MRP? (I) accurate inventory records (II) accurate demand forecasts (III) accurate holding and backordering costs (IV) accurate bills of materials A. I, II, and IV only B. I, III, and IV only C. I, II, and III only D. I and II only E. I, II, III, and IV

A. I, II, and IV only

Which of the following is a direct input into capacity requirements planning? (I) the master production schedule (II) routing information (III) current shop loads (IV) planned-order releases A. II, III, and IV only B. I, II, and IV only C. I, III, and IV only D. I and II only E. I, II, III, and IV

A. II, III, and IV only

What is the effect of an increase in the desired confidence level on the number of observations necessary in a time study? A. increases B. decreases C. unaffected D. may increase or decrease, depending on the sample standard deviation E. impossible to say without additional information

A. Increases

Which of the following is not true of vendor analysis? A. It involves an examination of the function of purchased parts or raw materials. B. Its purpose is to reduce costs and/or improve performance of purchased goods or services. C. It is usually performed only periodically. D. Representatives from design and operations may work with purchasing. E. If improvements are identified, purchasing implements those that purchasing agrees are justified.

A. It involves an examination of the function of purchased parts or raw materials

Having a vendor be responsible for managing the restocking of inventory is what is meant by the term: A. JIT II. B. MRP II. C. SCM I. D. EOQ III. E. POQ II.

A. JIT II

Which of the following statements should not characterize an operations strategy toward the design of work systems? A. Manufacturing technology is the heart of a business. B. Workers can make or break a business. C. Workers can be a valuable source of insights. D. A spirit of cooperation can contribute to success. E. Workers can be proud and respected.

A. Manufacturing technology is the heart of a business

Concerning PERT and CPM: A. These are two different names for essentially the same technique. B. CPM tends to focus more on the critical path; PERT focuses on the parallel paths. C. PERT gives a clearer indication of activity slack, while CPM gives a better picture of path slack. D. Because of its recent discovery, much less is known about CPM than PERT. E. CPM is useful for project manager selection; PERT is useful for project team selection.

A. These are two different names for essentially the same technique

Which of the following is not a limitation of PERT and similar project-scheduling techniques? A. They force the manager to organize and quantify information. B. One or more important activities may be omitted from the network. C. Precedence relationships may not all be correct as shown. D. Time estimates may contain a "fudge factor." E. The use of a computer is essential for large projects.

A. They force the manager to organize and quantify information

Which of these items would be most likely to have dependent demand? A. Xbox batteries B. toy trains C. flowers D. chocolate chip cookies E. wristwatches

A. Xbox batteries

Which one of the following most closely describes net material requirements? A. gross requirements - amount on hand - scheduled receipts B. gross requirements - planned receipts C. gross requirements - order releases + amount on hand D. gross requirements - planned order releases E. gross requirements - amount on hand + planned order releases

A. gross requirements - amount on hand - scheduled receipts

Which of the following most closely describes job enlargement? A. horizontal loading B. increasing the level of responsibility associated with a job C. transferring workers through a series of jobs to increase their scope of experience D. increasing the amount of workspace assigned to a worker E. assigning two jobs to the same worker

A. horizontal loading

The advantage a precedence diagram has over a Gantt chart is: A. its ability to reveal relationships among activities. B. its difficulty in depicting networks. C. its complexity. D. its simplicity. E. its lack of riskiness.

A. its ability to reveal relationships among activities

From the worker's perspective, an output-based pay system has the advantage of: A. linking pay more directly to effort. B. keeping earnings stable. C. keeping pay totally in the worker's control. D. minimizing the temptation to work harder for more money. E. keeping effort from influencing pay.

A. linking pay more directly to effort

The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the: A. master schedule. B. bill of materials. C. inventory records. D. assembly time chart. E. net requirements chart.

A. master schedule

In a stopwatch time study, the average time it takes a given worker to perform a task a certain number of times is the: A. observed time. B. normal time. C. standard time. D. allowance time. E. performance rating time.

A. observed time

Operation X feeds into operation Y. Operation X has an effective capacity of 55 units per hour. Operation Y has an effective capacity of 50 units per hour. Finding a way to increase Y's effective capacity would be an example of ________ a constraint. A. overcoming B. cushioning C. insourcing D. cycling E. repositioning

A. overcoming

A sequence of activities that leads from the starting node to the finishing node is called a: A. path. B. sequel. C. trail. D. critical sequence. E. time line.

A. path

Which of the following leads to simulation being a useful tool with uncertain activity times? A. paths that are not independent B. activity times that are not deterministic C. activity times that cannot be crashed D. noncritical paths that have no variability E. critical paths with activities with deterministic time estimates

A. paths that are not independent

The method of financial analysis which focuses on the length of time it takes to recover the initial cost of an investment is: A. payback. B. net present value. C. internal rate of return. D. queuing. E. cost-volume.

A. payback

Which one of the following is not an input in an MRP system? A. planned-order schedules B. bill of materials C. master production schedule D. inventory records E. All are inputs.

A. planned-order schedules

The interface between the firm and its suppliers is: A. purchasing. B. production. C. distribution. D. engineering. E. accounting.

A. purchasing

Although lean systems tend to produce standardized product lines, to provide production variety without accompanying waste, lean producers often use __________ in __________. A. standardized parts; modular designs B. jidoka parts; kaizen designs C. modular parts; flexible designs D. capable parts; automated designs E. heijunka parts; kanban designs

A. standardized parts; modular designs

Determining the number of cycles to observe is an element of: A. stopwatch time study. B. standard elemental times. C. predetermined time standards. D. work sampling. E. MTM tables.

A. stopwatch time study

The impact that a significant change in capacity will have on a key vendor is a: A. supply chain factor. B. process limiting factor. C. internal factor. D. human resource factor. E. operational process factor.

A. supply chain factor

Which of the following is not a measure of the reliability of the supply chain? A. supply chain response time B. on-time delivery C. fill rate D. lead time variability E. improving e-fulfillment statistics

A. supply chain response time

A scheduling technique used to achieve an optimum, one-to-one matching of tasks and resources is: A. the assignment method. B. Johnson's rule. C. the optimum production technology method. D. the appointment method. E. the reservation method.

A. the assignment method

When developing probabilistic estimates of project duration, it is necessary to know which of the following? A. the mean and variance of every activity B. the mean and variance of activities on the critical path C. the standard deviation of activities on the critical path D. each activity's probability of completion E. the distribution of activity times

A. the mean and variance of every activity

A major difference between manufacturing and service systems in terms of scheduling is: A. variability in arrival and service rates. B. processing cost per unit. C. the number of units to be processed. D. length of processing time. E. output rate.

A. variability in arrival and service rates

Examination of the sources of supply for purchased parts or materials in order to improve performance is called: A. vendor analysis. B. value analysis. C. negotiated purchasing. D. reverse engineering. E. disintegration.

A. vendor analysis

A method used for establishing a logical framework for identifying the required activities for the project is called: A. work breakdown structure. B. PERT. C. planning matrix. D. crashing. E. critical path analysis.

A. work breakdown structure

A hierarchical listing of what must be done in a project is called a: A. work breakdown structure (WBS). B. PERT. C. planning matrix. D. crashing plan. E. critical path.

A. work breakdown structure (WBS)

Global supply chains make purchasing easier because there are more options.

FALSE

For a company with a product mix of 40 percent of product A and 30 percent each of products B and C, which of the following mixed-model sequences best reflects the lean philosophy? A. AABBCCAABC B. ABCABCABCA C. AAAABBBCCC D. BCABCABCAB E. BBBAACCCAA

B. ABCABCABCA

Which sequencing rule is designed specifically to minimize job tardiness? A. S/O B. EDD C. FCFS D. SPT E. LPT

B. EDD

In many organizations, information flows much more freely within functions than it does across functions. __________ represents an expanded effort to overcome this tendency. A. MRP B. ERP C. CRP D. MRPII E. DRP

B. ERP

Which of the following is not a benefit of small lot sizes in lean systems? A. In-process inventory is considerably less. B. Each product is produced less frequently. C. Carrying costs are reduced. D. There is less clutter in the workplace. E. Inspection and rework costs are less.

B. Each product is produced less frequently

Primary considerations in scheduling high-volume systems involve: (I) coordinating the flow of inputs. (II) overcoming the disruptions to planned outputs. (III) assigning workers to work centers. A. I and III B. I and II C. II and III D. I, II, and III E. II only

B. I and II

Which of the following is part of the purchasing cycle? (I) Purchasing selects a supplier. (II) Orders from vendors are received. (III) Purchasing receives a requisition. A. II and III B. I, II, and III C. I only D. I and II E. I and III

B. I, II, and III

Methods analysis is particularly valuable when it is used on jobs that: (I) are high in labor content. (II) are done frequently. (III) involve a high degree of automation and mechanization. (IV) are unsafe, tiring, unpleasant, and/or noisy. A. I, II, III, and IV B. I, II, and IV only C. II and III only D. II and IV only E. I and III only

B. I, II, and IV only

Which of the following is not one of the six key decisions in project management? (I) Selecting the project team (II) Deciding on the project manager's title (III) Managing and controlling project resources (IV) Deciding which projects to implement (V) Selecting the project manager A. I B. II C. III D. IV E. V

B. II

In work sampling, how will increasing the permissible maximum error affect sample size? A. It will increase the number of observations needed. B. It will decrease the number of observations needed. C. It will have no effect on sample size. D. It will sometimes increase and sometimes decrease the sample size, depending on the analyst. E. It is impossible to say without additional information.

B. It will decrease the number of observations needed

A scheduling rule used for sequencing jobs through two work centers is: A. critical ratio rule. B. Johnson's rule. C. slack per operation rule. D. shortest processing time rule. E. Pareto rule.

B. Johnson's rule

Gantt charts are most closely associated with A. JIT. B. PERT. C. MRP. D. MRPII. E. Six Sigma.

B. PERT

The automatic identification of material is part of/facilitated by: A. holding costs. B. RFID. C. working capital reduction. D. net present value calculations. E. vendor analysis.

B. RFID

One disadvantage of appointment systems is: A. Capacity can be adjusted by varying hours. B. The customer's desired time may be already taken. C. People generally accept it as fair. D. It can reduce customer waiting time. E. Appointments do not have to be all the same length.

B. The customer's desired time may be already taken

One important objective of purchasing is to: A. set quality standards for purchased items. B. be knowledgeable about new products. C. maintain numerous sources of supply. D. obtain the lowest prices on all purchased items. E. determine the processes that should be used.

B. be knowledgeable about new products

The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the: A. master production schedule. B. bill of materials. C. inventory records. D. assembly time chart. E. net requirements chart.

B. bill of materials

Which of the following is not something commonly found in lean systems? (I) Waste reduction (II) Output match to a detailed forecast (III) Visual controls (IV) Quick changeovers (V) Long production runs A. both I and V B. both II and V C. both II and IV D. both IV and V E. both III and V

B. both II and V

Shortening activity durations is called: A. expediting. B. crashing. C. vendor management. D. null nodes. E. trade-off analysis.

B. crashing

Which of the following is not usually a characteristic of successful high-volume systems? A. smooth workflow through the system B. customized output C. rapid repair of breakdowns D. minimal quality problems E. reliable supply schedules

B. customized output

Process design that supports lean does not include: A. production flexibility. B. duplicate facilities. C. setup time reduction. D. minimal inventory storage. E. small lot sizes.

B. duplicate facilities

The website and order fulfillment are essential features of: A. delayed differentiation. B. e-commerce. C. Internet service providers. D. inventory balancing. E. market segmentation.

B. e-commerce

Methods analysis and motion study techniques develop which aspects of jobs? A. behavioral aspects B. efficiency aspects C. pay levels D. quality levels E. teamwork aspects

B. efficiency aspects

When determining the timing and degree of capacity change, one can use the approach of: A. lead time flexibility strategy. B. expand early strategy. C. wait-and-see strategy. D. backordering. E. delayed differentiation.

B. expand early strategy

Which of the following is critical to effective yield management? A. one-price pricing B. forecasting C. capacity flexibility D. constant demand E. trained service personnel

B. forecasting

The more __________ a company's supply chain, the more difficult it is to ensure that the supply chain is managed ethically. A. interconnected B. global C. visible D. shortened E. competitive

B. global

In MRP, under lot-for-lot ordering, planned-order receipts are: A. identical to scheduled receipts. B. identical to planned-order releases. C. open orders (that is, ordered before the first time bucket, but not delivered yet). D. gross requirements. E. available-to-promise inventory.

B. identical to planned-order releases

Which of the following is not an advantage of time-based pay systems? A. labor cost stability B. incentives to increase output C. ease of administration D. stability of output E. ease of pay computations

B. incentives to increase output

A factor that makes it desirable for business organizations to actively manage their supply chains is: A. more potential vendors. B. increasing globalization. C. downsizing. D. the Internet. E. RFIDs.

B. increasing globalization

The basis for use of the beta distribution in PERT is: A. essentially theoretical. B. its adaptability. C. its symmetry. D. It is bimodal. E. It can easily be converted to a normal distribution.

B. its adaptability

Everything else being equal, a firm considering outsourcing can be reasonably certain that: A. total costs will be lower. B. its supplier probably has more expertise in whatever is being outsourced. C. it can maintain tight control over knowledge. D. proprietary information will not be disclosed. E. control over operations will be maintained.

B. its supplier probably has more expertise in whatever is being outsourced

ERP implementation probably will not require: A. cross-functional teams. B. just a few weeks to install. C. intensive training. D. high funding for both initial cost and maintenance. E. frequent upgrades after installation.

B. just a few weeks to install

The EDD priority rule usually does well with regard to: A. cost. B. lateness. C. overtime. D. waste. E. makespan.

B. lateness

Comparing known and expected capacity requirements with projected capacity availability is the job of: A. planned releases. B. load reports. C. lot sizing. D. work loading. E. time fencing.

B. load reports

The decision to outsource opens the firm up to certain risks, among them _________ and ________. A. lower costs; fewer task-specific investments B. loss of direct control over operations; need to disclose proprietary information C. access to greater expertise; greater demand variability D. greater capacity rigidity; tight knowledge control E. higher marketing costs; small orders

B. loss of direct control over operations; need to disclose proprietary information

Which of the following is present in the manufacturing scheduling hierarchy but is absent in the service scheduling hierarchy? A. aggregate planning B. materials planning C. master scheduling D. detailed, short-term scheduling E. detailed, short-term planning

B. materials planning

A common objective of both MRP and the lean philosophy is to: A. smooth production. B. minimize inventory. C. obtain high quality. D. reduce overhead. E. eliminate inventory.

B. minimize inventory

Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following? A. gross requirements B. net requirements C. economic order quantity D. gross requirements and net requirements E. net requirements and amount on hand

B. net requirements

The purchasing perspective of the supplier as a partner is characterized by: A. an emphasis on low prices. B. one or a few suppliers. C. low flexibility. D. 100 percent inspection for quality. E. low volume.

B. one or a few suppliers

Which is not a requirement for an effective self-directed team? A. talent and skills to meet goals B. one or more members representing supervision C. a system of reinforcement and celebration D. clearly stated and commonly held vision and goals E. effective and skilled interpersonal relations

B. one or more members representing supervision

The identification of parent items is called: A. paternity. B. pegging. C. requirement I.D. D. relationship tracking. E. master scheduling.

B. pegging

In the execution phase of a project's life cycle, activities are guided by decisions that were made in the __________ phase. A. initiating B. planning C. monitoring/controlling D. closing E. assessment

B. planning

Which of the following is not characteristic of good risk management? A. estimating the likelihood of chance events occurring B. planning to eliminate chance events C. identifying potential chance events D. formulating contingency plans for chance events E. analyzing the consequences of chance events

B. planning to eliminate chance events

A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n): A. assembly time chart. B. product structure tree. C. MRP II. D. pegging. E. Gantt chart.

B. product structure tree

The activity controlled in the same way by both kanban and MRP is the determination of: A. rates of output. B. products to be built. C. materials required. D. capacity required. E. feedback information.

B. products to be built

The activity which begins with a request from within the organization is: A. outsourcing search. B. purchasing cycle. C. supplier selection. D. order receipt. E. supply chain management.

B. purchasing cycle

The purpose of cyclical scheduling is to: A. eliminate weekends and holidays. B. rotate schedules. C. add flexible hours. D. incorporate overtime. E. observe work patterns.

B. rotate schedules

The scheduling sequencing rule which always results in the lowest average completion (flow) time is the: A. first come, first served (FCFS) rule. B. shortest processing time first (SPT) rule. C. earliest due date first (EDD) rule. D. least slack per operation first (S/O) rule. E. run until slack happens (RUSH) rule.

B. shortest processing time first (SPT) rule

Vendor analysis is the examination of the _________ of purchased materials. A. function B. source C. quality D. cycle E. quantity

B. source

Average completion (flow) time for a schedule sequence at a work center is: A. the sum of processing time divided by the number of jobs. B. the sum of jobs' flow times divided by the number of jobs. C. overall flow time divided by total processing time. D. total processing time plus total late time divided by number of jobs. E. the sum of flow time plus total late time divided by number of jobs.

B. the sum of jobs' flow times divided by the number of jobs

When lean is used in the context of services, which of the following is most often the focus? A. the labor content of the service B. the time needed to perform a service C. the inventory tied up in the service D. the equipment used in the service E. suppliers of inputs to the service

B. the time needed to perform a service

At the break-even point: A. output equals capacity. B. total cost equals total revenue. C. total cost equals profit. D. variable cost equals fixed cost. E. variable cost equals total revenue.

B. total cost equals total revenue

Which of the following is not a measure for judging the effectiveness of a schedule sequence? A. average number of jobs at the work center B. total number of jobs at the work center C. average completion (flow) time D. average job tardiness E. total number of work centers per job

B. total number of jobs at the work center

Capacity requirements planning helps managers reconcile __________ with __________. A. what is needed; what has been done B. what is needed; what is possible C. what has been done; who will be doing it D. what needs to be done; where it will be done E. what has been done; how much what needs to be done will cost

B. what is needed; what is possible

The technique which can be used to estimate the percentage of time a worker or piece of equipment is idle is known as: A. MTM. B. work sampling. C. methods analysis. D. micro motion study. E. none of these.

B. work sampling

The methods analysis chart which describes the portions of a work cycle during which an operator and equipment are busy or idle is a: A. flow process chart. B. worker-machine chart. C. gang process chart. D. simultaneous-motion chart. E. time/efficiency chart.

B. worker-machine chart

Backflushing takes place: A. when inventory records need updating. B. after some bills of material have been found to be inaccurate. C. after production has been completed. D. when customer orders are being reconciled. E. when previous periods' planned releases are converted to scheduled receipts.

C. after production has been completed

Which sample proportion will require the largest number of work sampling observations? A. .05 B. .25 C. .50 D. .75 E. .95

C. .50

Our organization can obtain visibility to potential trading partners on the Internet by using: A. C2C. B. B2C. C. B2B. D. C2B. E. 2BC.

C. B2B

Which of the following is not an assumption of priority rules? A. The set of jobs is known: no new jobs arrive after processing begins. B. Setup time is independent of processing sequence. C. Finite loading is assumed. D. Processing times are deterministic. E. No machine breakdowns are assumed.

C. Finite loading is assumed

A popular tool for planning and scheduling simple projects, and for initial planning on more complex projects, is the: A. activity-on-arrows network. B. activity-on-nodes network. C. Gantt chart. D. critical path method. E. program evaluation and review technique.

C. Gantt chart

Which of the following would not contribute to the leaning of services? A. Improve the reliability of vendors. B. Increase the flexibility of the service system. C. Have service workers handle multiple tasks. D. Standardize the service output. E. Improve the service process.

C. Have service workers handle multiple tasks

Project management differs from management of more traditional activities mainly because of: (I) its limited time frame. (II) its unique, defined set of activities. (III) the requirement for use of the appropriate resources. (IV) the need for planning and execution. A. I B. II C. I and II D. I and III E. I, II, and IV

C. I and II

Which of the following is an advantage of E-business? (I) reduction of transaction costs (II) shortened supply chain response time (III) greater customer loyalty A. I B. II C. I and II D. II and III E. I, II, and III

C. I and II

Scheduling in service systems often takes the form of: (I) appointment systems. (II) reservation systems. (III) makespan systems. A. I only B. II only C. I and II only D. III only E. I, II, and III

C. I and II only

_______ is choosing how many to order or make. A. Quantity determination B. Package sizing C. Lot sizing D. Grouping E. Aggregation

C. Lot sizing

_________ has/have helped firms to concentrate on their core business. A. Supply chains B. Scheduling C. Outsourcing D. ERP E. Lean production

C. Outsourcing

The Five S's do not include: A. Sort. B. Straighten. C. Sanitize. D. Sweep. E. Standardize.

C. Sanitize

Which is true of a net-change system? A. It is a batch-type system which is updated periodically. B. It is usually run at the beginning of each month. C. The basic production plan is modified to reflect changes as they occur. D. It is used to authorize the execution of planned orders. E. It indicates the amount and timing of future changes.

C. The basic production plan is modified to reflect changes as they occur

Which of the following is characteristic of the lean philosophy? A. Inventories are an asset. B. Lot sizes are optimized by formula. C. Vendors are coworkers, essentially other departments of our organization. D. Queues are a necessary investment. E. All of the choices.

C. Vendors are coworkers, essentially other departments of our organization

Which of the following questions is not answered by value stream mapping? A. Where does waste occur? B. Which processes or subprocesses exhibit the most variability? C. Where are the best opportunities to extract more value from customers? D. Where are process bottlenecks? E. Where do errors occur?

C. Where are the best opportunities to extract more value from customers?

The output of MRP is: A. gross requirements. B. net requirements. C. a schedule of requirements for all parts and end items. D. inventory reorder points. E. economic order quantities and reorder points.

C. a schedule of requirements for all parts and end items

The ultimate goal of lean operations is to have: A. no in-process inventories. B. cross-trained workers capable of handling every process. C. a smooth, rapid flow of materials through the system. D. no setup times. E. all of the choices.

C. a smooth, rapid flow of materials through the system

Which of the following is not a principle regarding the way lean systems function? (I) Identifying customer values (II) Focusing on processes that create value (III) Elimination of waste to create flow (IV) Increasing forecast accuracy (V) Producing only according to customer demand (VI) Optimizing on setup costs with long production runs (VII) Striving for perfection A. IV B. II and IV C. both IV and VI D. IV and V E. VI

C. both IV and VI

Students at a major university must go through several registration steps. Officials have observed that it is typically the case that the waiting line at the fee-payment station is the longest. This would seem to suggest that the fee-payment station is the ___________ in the student registration process. A. capacity cushion B. first station C. bottleneck D. economy of scale E. diseconomy of scale

C. bottleneck

Unbalanced systems are evidenced by: A. top-heavy operations. B. labor unrest. C. bottleneck operations. D. increasing capacities. E. assembly lines.

C. bottleneck operations

Capacity in excess of expected demand that is intended to offset uncertainty is a: A. margin protect. B. line balance. C. capacity cushion. D. timing bubble. E. positioning hedge.

C. capacity cushion

A successful conversion to a lean system requires that the conversion: A. be done as quickly as possible. B. begin at the start of the process and work forward. C. convert vendors to lean as one of the last steps. D. reduce setup times as one of the last steps. E. all of the choices.

C. convert vendors to lean as one of the last steps

To _____ an activity means to shorten the time it will take. A. speed B. fund C. crash D. aggregate E. matrix

C. crash

Which of the following does not contribute to reduced setup time and cost? A. standardized setup tools B. standardized setup equipment C. custom setup procedures for each product D. use of multipurpose equipment or attachments E. use of group technology

C. custom setup procedures for each product

Which of the following most closely describes dependent demand? A. demand generated by suppliers B. estimates of demand using regression analysis of independent variables C. derived demand D. demands placed on suppliers by their customers E. net material requirements

C. derived demand

If the output rate is increased but the average unit costs also increase, we are experiencing: A. market share erosion. B. economies of scale. C. diseconomies of scale. D. value-added accounting. E. step-function scaleup.

C. diseconomies of scale

In theory of constraints scheduling, the __________ refers to the schedule and the __________ refers to inventory used to ensure that the bottleneck is never idle. A. rope; drum B. drum; rope C. drum; buffer D. buffer; drum E. buffer; rope

C. drum; buffer

Giving a worker a larger portion of the total task is known as job: A. expansion. B. enrichment. C. enlargement. D. rotation. E. elimination.

C. enlargement

A behavioral approach to job design which increases responsibility for planning and coordinating tasks is job: A. enlargement. B. rotation. C. enrichment. D. involvement. E. enhancement.

C. enrichment

Job X, which has a duration of four days, is due by the close of business on Friday, December 23. Without looking at the work already at X's required resource, the scheduler schedules X to be begun immediately and assumes that X will be done four days from now. This is an example of: A. infinite scheduling. B. finite scheduling. C. forward scheduling. D. backward scheduling. E. prioritization.

C. forward scheduling

Which of the following is not a benefit of RFID? A. increased productivity B. elimination of paperwork C. frequent deliveries of smaller shipments D. reduction in clerical labor E. increased accuracy

C. frequent deliveries of smaller shipments

When the output is less than the optimal rate of output, the average unit cost will be: A. lower. B. the same. C. higher. D. could be either higher or lower. E. could be either higher, lower or the same.

C. higher

The first, and perhaps most important, step in constraint management is to ____________ the most pressing constraint. A. improve B. support C. identify D. elevate E. modify

C. identify

The two different approaches to load work centers in job-shop scheduling are: A. load charts and schedule charts. B. Gantt charts and assignment method. C. infinite loading and finite loading. D. linear programming and makespan. E. infinite charting and finite charting.

C. infinite loading and finite loading

When buying component parts, risk does not include: A. loss of control. B. vendor viability. C. interest rate fluctuations. D. need to disclose proprietary information. E. product liability.

C. interest rate fluctuations

The method of financial analysis which results in an equivalent interest rate is: A. payback. B. net present value. C. internal rate of return. D. queuing. E. cost-volume.

C. internal rate of return

The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the: A. master production schedule. B. bill of materials. C. inventory records. D. assembly time chart. E. net requirements chart.

C. inventory records

Behavioral approaches to job design include: A. specialization. B. ergonomics. C. job rotation. D. flow process charts. E. simo charts.

C. job rotation

Project risk events tend to be unlikely __________ a project, but that's also when they tend to be the __________. A. early in; most costly B. late in; least costly C. late in; most costly D. before the beginning of; most complex E. at the conclusion of; least complex

C. late in; most costly

With regard to suppliers, lean systems typically involve: A. delivery of large lots on short notice B. the highest quality at the lowest price C. long-term relationships D. multiple suppliers to assure continuous availability E. dedicated staging areas for material

C. long-term relationships

An effort to expand the scope of production resource planning by involving other functional areas in the planning process has been: A. material requirements planning. B. capacity requirements planning. C. manufacturing resources planning. D. just-in-time planning. E. multifunctional relationships planning.

C. manufacturing resources planning

Which of the following is not typically treated as part of a project life cycle? A. feasibility analysis B. planning C. maturity D. incubation E. alternative generation

C. maturity

In the probabilistic approach to project network analysis, the time estimate annotated t (sub m) for any activity is the: A. mean time. B. median time. C. most likely time. D. mode time. E. marginal time.

C. most likely time

One of the biggest ethical risks in supply chain management is that the __________ supply chain member tends to be the one that suffers the blame and/or lost goodwill when something goes wrong. A. most responsible B. buying C. most visible D. supplying E. most ethical

C. most visible

In the lean philosophy, the ideal lot size is: A. the economic order quantity. B. the economic run size. C. one unit. D. the capacity of the standard container. E. N = (DT(1 + X))/C.

C. one unit

In MRP, scheduled receipts are: A. identical to planned-order receipts. B. identical to planned-order releases. C. open orders (that is, ordered before the first time bucket, but not delivered yet). D. net requirements. E. available-to-promise inventory.

C. open orders (that is, ordered before the first time bucket, but not delivered yet)

Allowance percentages normally would not include: A. noise levels. B. monotony. C. personal phone calls. D. weight lifted. E. restroom allowances.

C. personal phone calls

Seasonal variations are often easier to deal with in capacity planning than random variations because seasonal variations tend to be: A. smaller. B. larger. C. predictable. D. controllable. E. less frequent.

C. predictable

Which of the following is not a benefit of centralized purchasing? A. potential for quantity discounts B. better service from suppliers C. quick response to local needs D. potential for use of purchasing specialists E. supplier research

C. quick response to local needs

Which of the following is not an element of the project management triangle? A. cost B. schedule C. resources D. quality E. performance objectives

C. resources

Which of the following is the case where capacity is measured in terms of inputs? A. steel mill B. electrical power plant C. restaurant D. petroleum refinery E. airline

C. restaurant

Short-term considerations in determining capacity requirements include: A. demand trend. B. cyclical demand variations. C. seasonal demand variations. D. mission statements. E. new product development plans.

C. seasonal demand variations

One form of long-term team that is increasingly being used, especially in lean production settings, is: A. quality circle. B. product design. C. self-directed. D. self-improvement. E. mandatory.

C. self-directed

Although transitioning to a lean system can be a powerful means of improving performance, it is generally thought that using __________ along with lean can lead to even better results. A. kaizen B. ERP C. six sigma D. JIT E. jidoka

C. six sigma

Which of the following is not a performance driver? A. quality B. cost C. stability D. velocity E. flexibility

C. stability

In a stopwatch time study, adjusting the normal time by an allowance factor for normal delays and interruptions results in the: A. observed time. B. normal time. C. standard time. D. allowance time. E. performance rating time.

C. standard time

Which of the following is least likely to be a key consideration when a company chooses a supplier? A. lead time and on-time delivery B. reputation and financial stability C. value analysis D. quality and quality assurance E. flexibility of design change

C. value analysis

The kaizen philosophy applies to: A. employee development. B. safety stock. C. waste. D. supply chain management. E. MRP III.

C. waste

At which point does crashing of a project cease? A. when the project is completed B. when no additional crashing is possible C. when the cost to crash equals or exceeds the benefit of crashing D. when the project is one-half completed E. when the team has been disbanded

C. when the cost to crash equals or exceeds the benefit of crashing

Which of the following is not a goal of supply chain management? A. fewer suppliers and long-term relationships B. small lot sizes C. on-time deliveries D. lowest possible transportation costs E. delivery often to the place of use

D. lowest possible transportation costs

Which of the following makes using present value approaches in capacity decisions difficult? A. The discount rate must be adjusted to account for inflation. B. Some cash flows are positive and other cash flows are negative. C. The payback period might not be long enough to justify a capacity decision. D. Capacity decisions are made amidst much uncertainty, so cash flows cannot be estimated with great accuracy. E. There is a cash outflow at the outset followed by, possibly, net cash inflows.

D. Capacity decisions are made amidst much uncertainty, so cash flows cannot be estimated with great accuracy

Which of the following are advantages of PERT? (I) It is visual. (II) It is automatically updated. (III) Activities that need to be watched closely can be identified. A. I and II B. II and III C. III only D. I and III E. I, II, and III

D. I and III

Which of the following is a barrier to the integration of separate organizations in the supply chain? (I) conflicting objectives of the companies in the chain (II) different capacity levels of the companies in the chain (III) reluctance of the organizations in the chain to allow other organizations access to their data A. I only B. I and II C. II and III D. I and III E. I, II, and III

D. I and III

Which of the following, while desirable from some perspectives, might actually increase the risk of supply chain reductions? (I) fewer supply chain partners (II) a shorter supply chain (III) greater supply chain visibility A. I and II only B. II and III only C. I and III only D. I only E. I, II, and III

D. I only

In a stopwatch time study, the number of cycles that must be timed is a function of: (I) the variability of observed times. (II) the desired accuracy for the estimated job time. (III) the desired confidence for the estimated job time. A. I only B. I and II only C. II and III only D. I, II, and III E. I and III only

D. I, II, and III

Which of the following is a principle required for ethical behavior in purchasing? (I) loyalty to employer (II) justice to those you deal with (III) faith in your profession A. III only B. I only C. II only D. I, II, and III E. II and III only

D. I, II, and III

The design of work systems typically involves: (I) work measurement. (II) job design. (III) compensation. (IV) the use of outside consultants. A. II and III only B. I and III only C. II, III, and IV only D. I, II, and III only E. I, II, III, and IV

D. I, II, and III only

RFID chips: (I) are used to track goods in distribution. (II) are used to track job progress in production. (III) are used to provide special instructions to operators. (IV) can be used in inventory record keeping. A. II and III only B. I and II only C. II, III, and IV D. I, II, and IV E. IV only

D. I, II, and IV

A basic requirement for operating with the low inventories present in lean systems is: A. Inventory space must be increased. B. Inventory investment must be increased. C. Major problems must be identified. D. Major problems must have been solved. E. Inventories must be reduced rapidly.

D. Major problems must have been solved

Lean systems often rely on a method of overhead allocation known as: A. direct-labor allocation. B. capital-charge allocation. C. mixed-model accounting. D. activity-based costing. E. indirect-labor allocation.

D. activity-based costing

A market constraint can be overcome by: A. lobbying. B. cash flow management. C. outsourcing. D. advertising or price changes. E. supplier development.

D. advertising or price changes

A potential obstacle to conversion to a lean system is: A. lack of management commitment. B. lack of worker cooperation. C. supplier resistance. D. all of the choices. E. insufficient space to store the increased inventories.

D. all of the choices

In "crashing" a project, a manager will generally focus on activities which: A. are not on the critical path. B. are the least costly to crash. C. are costly to crash and are on the critical path. D. are on the critical path and are the least costly to crash. E. are the easiest to crash.

D. are on the critical path and are the least costly to crash

Job X, which has a duration of four days, is due by the close of business on Friday, December 23. Without looking at the work already scheduled on X's required resource, the scheduler schedules X to be begun on the morning of Tuesday, December 20. This is an example of: A. infinite scheduling. B. finite scheduling. C. forward scheduling. D. backward scheduling. E. prioritization.

D. backward scheduling

The ultimate objective in a lean system is: A. low to moderate levels of inventory. B. high quality, zero defects. C. minimal waste (less than 6 percent). D. balanced and rapid flow. E. all of these.

D. balanced and rapid flow

In methods analysis, a therblig is a: A. charting method of analysis. B. job enrichment technique. C. dummy task. D. basic elemental motion. E. fraction (.0006) of a minute.

D. basic elemental motion

Small changes in consumer demand can result in large variations in orders placed because of the: A. supply chain. B. safety stock requirement. C. lead time effect. D. bullwhip effect. E. FCFS scheduling.

D. bullwhip effect

The project management strategy of injecting additional resources in order to reduce the length of the project is called: A. expediting. B. rushing. C. panicking. D. crashing. E. loading

D. crashing

Logistics includes all of these except: A. the movement of materials within a production facility. B. incoming shipments of goods or materials. C. outgoing shipments of goods or materials. D. customer selection. E. returned goods processing.

D. customer selection

The comprehensive approach used in lean systems to deal with quality includes: A. designing quality into products and processes. B. insisting vendors provide high-quality materials. C. making workers responsible for producing high quality. D. designing in quality, insisting on quality materials, and making workers responsible for quality. E. 100 percent inspection of raw materials, work-in-process, and finished goods.

D. designing in quality, insisting on quality materials, and making workers responsible for quality

The maximum possible output given a product mix, scheduling difficulties, quality factors, and so on is: A. utilization. B. design capacity. C. efficiency. D. effective capacity. E. available capacity.

D. effective capacity

The ratio of actual output to effective capacity is: A. design capacity. B. effective capacity. C. actual capacity. D. efficiency. E. utilization.

D. efficiency

Effective scheduling cannot: A. yield cost savings and improved productivity. B. reduce the need for expansion of facilities. C. improve customer service. D. eliminate the need to train employees. E. improve patient care in medical settings.

D. eliminate the need to train employees

Which of the following is not characteristic of preventive maintenance in lean systems? A. maintaining equipment in good operating condition B. replacing parts when they are worn but before they fail C. workers maintaining their own equipment D. eliminating supplies of spare parts to reduce capital investment E. perceiving breakdowns as an opportunity for improvement

D. eliminating supplies of spare parts to reduce capital investment

The chart used to review the overall sequence of an operation by focusing on the movements of either the operator or materials is called a: A. simo chart. B. Gantt chart. C. worker-materials chart. D. flow process chart. E. multi-activity chart.

D. flow process chart

Which of the following is not a potential benefit of the use of self-directed teams? A. higher quality B. higher productivity C. greater worker satisfaction D. greater satisfaction for middle managers E. lower turnover

D. greater satisfaction for middle managers

ERP's primary value comes from applications: A. deployment. B. development. C. interfaces. D. integration. E. networking.

D. integration

Which of the following would not usually be a main factor in selecting a vendor? A. location B. price C. quality D. inventory turnover E. vendor services

D. inventory turnover

Scheduled receipts differ from planned receipts in that scheduled receipts: A. have longer lead times. B. involve orders that have not yet been placed. C. have not been pegged with actual customer orders. D. involve orders that have already been placed. E. involve exceptions to order quantity policies.

D. involve orders that have already been placed

A conveyance __________ signals parts movement. A. request B. routing C. bar code D. kanban E. kazian

D. kanban

Which of the following would not be a potential upside in a decision to outsource? A. supplier capacity B. potential to lower fixed costs C. supplier expertise D. knowledge sharing E. supplier cost

D. knowledge sharing

A simo chart includes: A. delay. B. storage. C. transportation. D. left/right hand movements. E. inspection.

D. left/right hand movements

With regard to suppliers, lean systems typically require: A. delivery of large lots at regular intervals. B. buyer inspection of goods and materials. C. multiple sources from which to purchase. D. long-term relationships and commitments. E. the lowest price possible.

D. long-term relationships and commitments

In a project network, the critical path is the sequence of activities which has the: A. most activities. B. most nodes. C. most events. D. longest duration. E. greatest variance.

D. longest duration

Which of the following is not generally considered an advantage of specialization? A. high productivity B. low wage costs C. ease of training employees D. low equipment costs E. All are advantages

D. low equipment costs

An operations strategy reflecting the lean philosophy of production should recognize that lean: A. is most suited for nonrepetitive manufacturing. B. cannot be implemented sequentially. C. requires a wholesale commitment from the outset. D. may provide a competitive advantage. E. all of the choices.

D. may provide a competitive advantage

In the Toyota Production System, waste and inefficiency are referred to as __________, and long-term reduction of this is referred to as __________. A. jidoka; heijunka B. muda; kanban C. kaizen; heijunka D. muda; kaizen E. muda; jidoka

D. muda; kaizen

Outsourcing some production is a means of _________ a capacity constraint. A. identifying B. modifying C. supporting D. overcoming E. repeating

D. overcoming

When performing a time study, the analyst converts the observed time into the time an "average" worker would require working at an acceptable pace by using which of the following? A. allowance factors B. MTM C. methods analysis D. performance rating E. analysis of therbligs

D. performance rating

To facilitate utilization of bottleneck operations, in theory of constraints scheduling ________ can be split into __________ to reduce waiting times. A. bottleneck lots; nonbottleneck lots B. transfer batches; process lots C. sized lots; constrained lots D. process batches; transfer batches E. buffer lots; transfer lots

D. process batches; transfer batches

A major advantage of job specialization in business is increased: A. motivation. B. opportunity for advancement. C. opportunity for self-fulfillment. D. productivity. E. job enrichment.

D. productivity

Real-time information about product movement on store shelves could benefit from the use of: A. batch processing. B. economic order quantities. C. statistical process control. D. radio frequency identification tags. E. infrared remote scanners.

D. radio frequency identification tags

Maximum capacity refers to the upper limit of: A. inventories. B. demand. C. supplies. D. rate of output. E. finances.

D. rate of output

The _________ of ERP makes it valuable as a strategic planning tool. A. Internet base B. rapid batch capability C. employee focus D. real-time aspect E. database structure

D. real-time aspect

An MRP system that is updated periodically to account for all changes which have occurred within a given time interval is called a(n) ________ system. A. pegging B. planned order release C. net-change D. regenerative E. exception report

D. regenerative

Process chart symbols do not include: A. delay. B. inspection. C. operation. D. rejection. E. storage.

D. rejection

One upside to terminating a project that is not going as well as planned is that: A. poorly performing project team members will be kept from causing trouble elsewhere. B. no additional costs will be incurred. C. poor project managers will be weeded out. D. resources can perhaps be put to better use elsewhere. E. project completion will be hastened.

D. resources can perhaps be put to better use elsewhere

In theory of constraints scheduling, the synchronization of the sequence of operations is referred to as the: A. buffer. B. bottleneck. C. constraint. D. rope. E. drum.

D. rope

Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time? A. pegging B. safety stock C. increased order sizes D. safety time E. low-level coding

D. safety time

Which of the following is not a form of risk reduction in project management? A. backup system B. outsourcing C. risk sharing D. scenario analysis E. selection analysis

D. scenario analysis

The methods analysis chart which describes the movements of both hands at the same time is a: A. flow process chart. B. worker-machine chart. C. gang process chart. D. simultaneous-motion chart. E. time/efficiency chart.

D. simultaneous-motion chart

A disadvantage of teams is: A. higher quality. B. higher productivity. C. greater worker satisfaction. D. team member conflict. E. lower turnover.

D. team member conflict

In an MRP master schedule, the planning horizon is often separated into a series of time periods called: A. pegging. B. lead times. C. stacked lead times. D. time buckets. E. firm, fixed, and frozen.

D. time buckets

Which of the following represents an attempt to balance the benefits of stability against the benefits of responding to new information? A. safety stock B. safety time C. bills of material D. time fences E. fixed-period lot sizing

D. time fences

Scheduling pertains to: A. hiring workers. B. process selection. C. buying machinery. D. timing the use of specific resources. E. determining the lowest cost.

D. timing the use of specific resources

Asking a group of employees at a particular level to take on more responsibility is a form of ___________ loading, also known as job __________. A. horizontal; enlargement B. horizontal; rotation C. vertical; rotation D. vertical; enrichment E. horizontal; enrichment

D. vertical; enrichment

63. Which of the following concerns is not one that job designers focus on? A. what will be done in a job B. who will do the job C. how the job will be done D. when should the job be completed E. where the job will be done

D. when should the job be completed

Which of the following is not a basic question in capacity planning? A. what kind is needed B. how much is needed C. when is it needed D. who will pay for it E. what it will be used for

D. who will pay for it

Which of the following would probably not involve the use of PERT? A. planning and constructing a new city hall B. developing an advertising campaign for a new product C. designing and constructing a subway system D. writing a poem E. preparing for the visit of a foreign dignitary

D. writing a poem

A lean-systems method of asking questions about a process is the __________ approach. A. jidoka B. 3 kanban C. heijunka D. 2 kaizen E. 5W2H

E. 5W2H

Which of the following is not a reason why capacity decisions are so important? A. Capacity limits the rate of output possible. B. Capacity affects operating costs. C. Capacity is a major determinant of initial costs. D. Capacity is a long-term commitment of resources. E. Capacity affects organizations' images.

E. Capacity affects organizations' images

The priority rule which will sequence jobs in the order they are received is: A. EDD. B. LIFO. C. SPT. D. CR. E. FCFS.

E. FCFS

A work center can be a: (I) machine. (II) group of machines. (III) department. (IV) facility. A. I, II, and III only B. II and IV only C. II and III only D. I and III only E. I, II, III, and IV

E. I, II, III, and IV

Scheduling in service systems may involve scheduling: (I) the workforce. (II) the equipment. (III) customers. A. II only B. I and II only C. II and III only D. I and III only E. I, II, and III

E. I, II, and III

Which of these aspects of supply chain management are especially concerning to small business? (I) customer reliability (II) inventory management (III) purchasing costs (IV) risk management (V) international trade A. III, IV, and V only B. I, II, and III only C. I, III, and IV only D. I and II only E. II, IV, and V only

E. II, IV, and V only

Which of the following is the last step in the capacity/scheduling chain? A. product planning B. process planning C. capacity planning D. aggregate planning E. scheduling

E. scheduling

MRP can apply to services, especially when it is focused on: (I) work-in-process inventory. (II) finished goods inventory. (III) service components. (IV) materials that are part of the service process. A. II and IV only B. I and III only C. I, II, and IV only D. I, III, and IV only E. III and IV only

E. III and IV only

Which of the following stages is that one in which the project's expected costs, benefits, and risks are assessed? A. executing B. monitoring/controlling C. assessment D. planning E. initiating

E. Initiating

Which of the following is not an advantage of work sampling compared to stopwatch time study? A. There is little or no disruption of work. B. It is less susceptible to short-term fluctuations. C. Workers are less resentful. D. It is less costly and less time-consuming. E. It is better suited for short, repetitive tasks.

E. It is better suited for short, repetitive tasks

Which statement concerning MRP II is false? A. It is basically a computerized system. B. It can handle complex planning and scheduling quickly. C. It involves other functional areas in the production planning process. D. It involves capacity planning. E. It produces a production plan which includes all resources required.

E. It produces a production plan which includes all resources required

Which of the following is not true about the use of dummy activities in project networking? A. They preserve the separate identities of activities. B. They clarify precedence relationships among activities. C. They have an activity time equal to zero. D. They have an activity time variance equal to zero. E. They are used in activities-on-nodes (AON) network diagrams.

E. They are used in activities-on-nodes (AON) network diagrams

Which of the following would you not expect to see in a lean environment? A. a flexible system B. minimum inventory C. little waste D. reduced setup times E. a significant number of daily schedule changes

E. a significant number of daily schedule changes

Which of these factors would not be subtracted from design capacity when calculating effective capacity? A. personal time B. equipment maintenance C. scheduling problems D. changing the mix of products E. all of the choices

E. all of the choices

When MRP II systems include feedback, they are known as: A. MRP III. B. enterprise resource planning. C. circular MRP. D. feasible MRP. E. closed loop MRP.

E. closed loop MRP

Which of the following is least likely to be a consideration when scheduling a high-volume system? A. equipment failures B. material shortages C. accidents D. worker absences E. demand variability

E. demand variability

If an activity is determined to be on the critical path, that means that it, and perhaps others, will affect project: A. direct costs. B. performance. C. quality. D. conflict. E. duration.

E. duration

The multiplication process used by MRP to determine lower-level requirements is called: A. time-phasing. B. pegging. C. netting. D. projecting. E. exploding.

E. exploding

Ensuring that the constraining resource is used to its maximum is an example of constraint: A. elevation. B. subordination. C. identification. D. elimination. E. exploitation.

E. exploitation

Which of the following contributes to the competitive advantage enjoyed by firms using lean production? A. backup employees to cover for absenteeism B. one hundred percent inspection to remove defects C. dedicated equipment to reduce unit costs D. safety stocks to prevent stockouts E. greater flexibility to cope with change

E. greater flexibility to cope with changes

Which of the following would tend to reduce effective capacity? A. suppliers that provide more reliable delivery performance B. reduced changeover times C. more employee cross-training D. improved production quality E. greater variety in the product line

E. greater variety in the product line

Vendor analysis has the greatest potential for savings for items which have: A. low cost per unit. B. low annual cost-volume. C. high cost per unit. D. high annual usage. E. high annual cost-volume.

E. high annual cost-volume

Which one of the following is not one of the building blocks that is the foundation of the lean philosophy? A. product design B. process design C. personnel/organizational elements D. manufacturing planning and control E. kanban

E. kanban

Which of the following is not a benefit of effective supply chain management? A. lower inventory costs B. higher productivity C. shorter lead times D. greater customer loyalty E. larger number of suppliers

E. larger number of suppliers

In project network analysis, "slack" refers to the difference between: A. observed and predicted times. B. optimistic and pessimistic times. C. mean and modal times. D. finish and start times. E. latest and earliest times.

E. latest and earliest times

Which of the following is not characteristic of time-based compensation plans? A. stable labor costs B. easier to administer than output-based plans C. stable pay for workers D. simpler wage computations than output-based plans E. lower cost per unit than output-based plans

E. lower cost per unit than output-based plans

In MRP, the gross requirements of a given component part are calculated from: A. net requirements + amount on-hand. B. gross requirements of the immediate parent. C. planned orders of the end item. D. net requirements of end item. E. planned orders of the immediate parent.

E. planned orders of the immediate parent

Once a project is underway, the project manager usually is not responsible for effectively managing: A. the people. B. costs. C. resources. D. time. E. project priority.

E. project priority

The purchasing cycle begins with: A. selecting a supplier. B. placing an order. C. evaluating potential vendors. D. conducting a value analysis. E. receiving a requisition.

E. receiving a requisition

If there is a good chance that one or a few employees could wind up in monotonous jobs, job __________ can be a good idea. A. alteration B. expansion C. enrichment D. enlargement E. rotation

E. rotation

Operation X feeds into operation Y. Operation X has an effective capacity of 55 units per hour. Operation Y has an effective capacity of 50 units per hour. Increasing X's effective capacity to ensure that Y's utilization is maximized would be an example of ________ a(n) constraint. A. overcoming B. outsourcing C. insourcing D. cushioning E. supporting

E. supporting

The two types of decisions that are relevant to supply chain management are: A. short- and long-term. B. domestic and international. C. location and layout. D. in-sourcing and outsourcing. E. tactical and operational.

E. tactical and operational

Which of the following is not an application of E-business? A. Internet buying and selling B. e-mail C. order and shipment tracking D. electronic data interchange (EDI) E. universal product codes

E. universal product codes

The ratio of actual output to design capacity is: A. design capacity. B. effective capacity. C. actual capacity. D. efficiency. E. utilization.

E. utilization

A technique for estimating the proportion of time a worker spends on various activities is: A. stopwatch time study. B. standard elemental (historical) times. C. simultaneous motion study. D. predetermined (published) time standards. E. work sampling.

E. work sampling

"Autonomation" indicates that the firm is attempting to reduce its dependence on automated equipment

FALSE

A 30 percent reduction in product and service variety will not affect the efficiency of a supply chain.

FALSE

A Gantt chart is a basic scheduling tool that works best for high-volume systems

FALSE

A Gantt chart is built using established precedence relationships.

FALSE

A benefit of lean systems is that lead times are increased, allowing more time for processing

FALSE

A benefit of small lot sizes in lean systems is that each product is produced less frequently

FALSE

A disadvantage of activity-on-node diagrams is the occasional need for dummy activities.

FALSE

A flow process chart is helpful for visualizing the portions of a work cycle during which the operator and equipment are busy or idle

FALSE

A functioning MRP system is required prior to adopting lean planning and control systems

FALSE

A fundamental tenet of the lean philosophy is that workers are based on seniority

FALSE

A hierarchical (vertical) listing of what must be done during a project is called matrix.

FALSE

A net-change MRP system is one that is update periodically but not less frequently than once a week

FALSE

A performance rating of less than 1.0 means that the observed worker was judged to be working at a faster than normal rate--doing the job more quickly than normal

FALSE

A real advantage of the lean philosophy is the reduction of coordination effort required

FALSE

A regenerative MRP system is one that is updated continuously, every time there is a schedule change

FALSE

A schedule chart depicts the loading and idle times for a group of machines or departments

FALSE

A worker-machine chart can help identify nonproductive parts of a process

FALSE

According to the reading on restaurant sourcing practices, only fast-food restaurants are able to bring in outsourced foods

FALSE

Activities not on the critical path have a slack time equal to zero.

FALSE

Although inventories are maintained, the goal of lean operations is to minimize safety stock

FALSE

An advantage of Gantt charts in project management is that they identify which activities can be delayed without delaying the overall project.

FALSE

An assembly-time chart indicates gross and net requirements taking into account the current available inventory

FALSE

Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations

FALSE

Capacity requirements planning is an important feature in MRP+

FALSE

Centralized or decentralized purchasing is directly related to the size of an organization.

FALSE

Cost and competitive priorities reduce effective capacities

FALSE

Deterministic networks use three time estimates—shortest, most likely, and longest—for each activity in order to best determine the activity's estimated time.

FALSE

E-commerce involves business-to-business (B2B) interaction only.

FALSE

Engineering changes should not be made in the six-month period following the introduction of a new product

FALSE

Ergonomics is an important part of job design to consider when we automate the system

FALSE

Ergonomics is the use of computers and robots in the workplace

FALSE

Event management is the advanced planning required for major performances such as concerts or conferences.

FALSE