ISDS 3115 Quiz 1 Conceptual Questions

What is the percentage defective in an average lot of goods inspected through acceptance​ sampling? A. AOQ B. AQL C. OC curve D. LTPD

A. AOQ

Which of the following organizations does NOT belong to the service​ sector? A. Ford Motor Company B. Costco C. San Diego Zoo D. Southwest Airlines

A. Ford Motor Company

Which one of the following statements is incorrect regarding globalization and globalization​ strategies? A. Globalization strategies could simplify the operations​ manager's job B. Globalization strategies could contribute to efficiency. C. Globalization strategies could add value to products and services. D. Globalization means​ customers, talent, and suppliers are worldwide.

A. Globalization strategies could simplify the operations​ manager's job

Competing on cost is A. achieving maximum value as perceived by the customer. B. based upon flexibility. C. concerned with reliability of scheduling. Your answer is not correct. D. concerned with uniqueness.

A. achieving maximum value as perceived by the customer.

Most organizations operate A. below their design capacity. B. above their design capacity. C. below the theory of constraints. D. at their design capacity.

A. below their design capacity.

The last four weekly values of sales were​ 80, 100,​ 105, and 90 units. The last four forecasts were​ 60, 80,​ 95, and 75 units. These forecasts​ illustrate: A. trend projection. B. qualitative methods. C. adaptive smoothing. D. slope. E. bias

A. bias.

A fundamental distinction between trend projection and linear regression is​ that: A. in trend projection the independent variable is​ time; in linear regression the independent variable need not be​ time, but can be any variable with explanatory power. B. trend projection can be a function of several​ variables, while linear regression can only be a function of one variable. C. trend projection uses two smoothing​ constants, not just one. D. trend projection uses least squares while linear regression does not. E. only linear regression can have a negative slope.

A. in trend projection the independent variable is​ time; in linear regression the independent variable need not be​ time, but can be any variable with explanatory power.

Which of the following is the Japanese term used to describe continuous improvement​ efforts? A. kaizen B. six sigma C. ​poka-yoke D. kanban

A. kaizen

The set of activities that relate to the creation of goods and services through the transformation of inputs to outputs is referred to as A. operations management. B. marketing. C. supply chain management. D. finance.

A. operations management.

What is the probability of accepting a bad​ lot? A. type II error​ (beta) This is the correct answer. B. type I error​ (alpha) C. AQL D. LTPD

A. type II error​ (beta)

Which of the following organizations does NOT require​ operations? A. Walmart B. American Red Cross C. Washington State University D. All of the above require operations

All of the above require operations

A project​ organization: A. often fails when the project cuts across organizational lines. B. is effective for companies with multiple large projects. C. is appropriate only in construction firms. D. is most helpful for ongoing projects with no termination date. E. is most helpful when the work contains simple and unrelated tasks.

B. is effective for companies with multiple large projects.

Which of the following approaches makes new capacity a larger increase at the beginning of the​ period? A. leading demand with incremental expansion B. leading demand with a​ one-step expansion C. attempts to have an average capacity that straddles demand with incremental expansion Your answer is not correct. D. lagging demand with incremental expansion

B. leading demand with a​ one-step expansion

One hundred percent inspection A. means that only good parts will be shipped to a customer. B. means that every part is checked to see whether or not it is defective. C. catches all of the defective parts. D. is practical and an excellent fit for​ world-class manufacturers.The R​-chart

B. means that every part is checked to see whether or not it is defective.

A repetitive process is a​ product-oriented production process that uses A. a high level of inventory. B. modules. Your answer is correct. C. postponement. D. very flexible equipment.

B. modules.

​Low-volume, high-variety production is best suited for which of the following process​ strategies? A. product focus B. process focus C. repetitive focus D. mass customization

B. process focus

​Taguchi's quality loss function is based on a A. binomial distribution. B. linear equation. C. negative exponential distribution. D. quadratic equation.

B. quadratic equation.

Which of the following costs is NOT a cost of​ quality? A. lost goodwill B. research and development C. scrap D. rework

B. research and development

Which of the following is a possible option to employ when demand exceeds​ capacity? A. temporarily​ lay-off workers B. schedule long lead times C. lower prices D. increase advertising expenditures

B. schedule long lead times

The economic activities that typically produce an intangible product are referred to as A. products. B. services. C. phantoms. D. goods.

B. services.

​Cause-and-effect diagrams are also known as A. Pareto charts. B. ​fish-bone charts. This is the correct answer. C. target specification graphs. D. flowcharts.

B. ​fish-bone charts.

A way to identify those elements in the​ product/service chain that uniquely add value is referred to as A. the five forces model. B. ​value-chain analysis. Your answer is correct. C. the resources view. D. supply chain management.

B. ​value-chain analysis.

Which of the following statements comparing exponential smoothing to the weighted moving average technique is​ TRUE? A. Exponential smoothing allows one to develop forecasts for multiple​ periods, whereas the weighted moving average technique does not. B.Exponential smoothing typically requires less record keeping of past data. Your answer is correct. C.Exponential smoothing is more easily used in combination with the Delphi method. D.Exponential smoothing is considerably more difficult to implement on a computer. E.More emphasis can be placed on recent values using the weighted moving average.

B.Exponential smoothing typically requires less record keeping of past data.

How does​ just-in-yime (JIT) relate to total quality management​ (TQM)? A. JIT increases​ finished-goods-inventory levels to be able to respond quickly to customers. B. JIT systems encourage​ last-minute deliveries, which increases the probability of a late delivery. C. JIT is rooted in continuous improvement and forced problem​ solving, which improve quality. D. JIT is not related to TQM.

C. JIT is rooted in continuous improvement and forced problem​ solving, which improve quality.

Which of the following strategies helps to smooth utilization of​ facility, equipment, and​ personnel? A. Hire only temporary​ part-time employees. B. Raise prices when capacity exceeds demand. C. Offer products with complementary demand patterns​ (e.g., jet skis and​ snowmobiles). D. Market aggressively when demand exceeds capacity.

C. Offer products with complementary demand patterns​ (e.g., jet skis and​ snowmobiles).

Activity R on a CPM network has predecessors M and​ N, and has successor S. R has duration 5.​ N's late finish is​ 18, while​ M's is 20.​ S's late start is 14. Which of the following is definitely​ true? A. R has no slack but is not critical. B. S is a critical activity. C. R is critical and has zero slack. D. The set of times cannot all be possible. This is the correct answer. E. N is a critical activity.

C. R is critical and has zero slack.

A process focused facility is A. based on the classical assembly line. B. a production facility organized around products. C. a production facility organized around specific activities. This is the correct answer. D. a​ rapid, low-cost production facility that caters to constantly changing unique customer desires.

C. a production facility organized around specific activities. This is the correct answer.

Which of the following techniques uses variables such as price and promotional​ expenditures, which are related to product​ demand, to predict​ demand? A. weighted moving average B. trend projection C. associative models D. moving average E. exponential smoothing

C. associative models

Process capability A. exists only in​ theory; it cannot be measured. B. exists when CPK is less than 1.0. C. means that the natural variation of the process must be small enough to produce products that meet the standard. D. is assured when the process is statistically in control.

C. means that the natural variation of the process must be small enough to produce products that meet the standard.

Which of the following OM decisions determines how a good or service is produced and commits management to specific​ technology, quality, human​ resources, and capital​ investment? A. managing quality B. design of goods and services C. process and capacity design D. human resources and job design

C. process and capacity design Your answer is correct.

The objective of a statistical process control​ (SPC) system is to A. provide a statistical signal when natural causes of variation are present. B. eliminate natural variations. C. provide a statistical signal when assignable causes of variation are present. D. assess customer expectations

C. provide a statistical signal when assignable causes of variation are present.

The critical path for the network activities shown below is​ ________ with duration​ ________. Activity. Duration. Imm. Predece. A. 10 - B 8 - C 2 A D 4. A E 5 B,C,D A. ​A-C; 12 B. ​B-E; 13 C. ​A-D-E; 19 Your answer is correct. D. ​A-B-C-D-E; 29 E. None of the above

C. ​A-D-E; 19

The project organization works best when which of the following conditions are​ satisfied? I. Work tasks can be defined with a specific goal and deadline. II. The job is typical and familiar to the existing organization. III. The work contains interrelated tasks requiring specialized skills. IV. The project is temporary but unimportant to​ long-term organizational success. V. The project cuts across organizational lines. A. ​I, II,​ III, IV, V B. None of the above conditions need to be satisfied. C. ​I, III, V D. ​I, II,​ III, V E. ​I, III,​ IV, V

C. ​I, III, V

Which of the following is guaranteed to increase the design capacity of a​ process? A. Decrease the throughput time B. Increase the bottleneck time C. Increase the throughput time D. Decrease the bottleneck time

D. Decrease the bottleneck time

Which of the following best defines​ scheduling? A. Determines and implements​ long- and​ short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. B. Determines and implements​ long- and​ short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. C. Determines and implements​ intermediate- and​ short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. Your answer is not correct. D. Determines and implements​ intermediate- and​ short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands.

D. Determines and implements​ intermediate- and​ short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands.

Which of the following is a concern as firms move toward​ globalization? A. Simplification of operations management B. Opportunities to reach new markets C. Decreases in exchange rate risk D. Differences in social and cultural behavior

D. Differences in social and cultural behavior

Which of the following is NOT one of the techniques for building employee​ empowerment? A. Build​ high-morale organizations. B. Build communication networks that include employees. C. Develop​ open, supportive supervisors. D. Eliminate formal organization structures such as teams and quality circles.

D. Eliminate formal organization structures such as teams and quality circles.

The main difference between PERT and CPM is​ that: A. PERT ignores activity costs. B. PERT assumes that activity durations are known. C. CPM assumes activity durations can vary. D. PERT employs three time estimates for each activity. E. PERT is more accurate than CPM.

D. PERT employs three time estimates for each activity.

What is the reasoning behind setting the upper and lower control limits ±3σx from the​ mean? A. We know that​ 99.73% of assignable variation is contained within ±3σx​, and thus any data point outside of the limits is likely due to natural variation B. The limits of the Z table are set at ±3σx C. ​95.45% of the​ time, the sample averages will fall within ±3σx if the process has only natural variation D. We know that​ 99.73% of natural variation is contained within ±3σx​, and thus any data point outside of the limits is likely due to assignable variation

D. We know that​ 99.73% of natural variation is contained within ±3σx​, and thus any data point outside of the limits is likely due to assignable variation

In acceptance​ sampling, the​ producer's risk is the risk of having a A. bad lot rejected. B. good lot accepted. C. bad lot accepted. D. good lot rejected.

D. good lot rejected.

The R​-chart A. is used to measure changes in the central tendency. B. control limits are computed using sample standard deviations. C. generally uses control limits set at plus or minus 2 standard deviations of the​ distribution, rather than plus or minus​ 3, which is commonly used on the x​-bar chart. Your answer is not correct. D. is used to indicate gains or losses in dispersion.

D. is used to indicate gains or losses in dispersion.

The primary advantage of outsourcing is A. to decrease logistics and transportation costs. B. to decrease supply chain risk. C. to allow a company to focus on its​ non-core competencies. D. to allow a company to focus on its core competencies.

D. to allow a company to focus on its core competencies.

The forecasting technique that pools the opinions of a group of experts or managers is known​ as: A. management coefficients. B.market survey. C.multiple regression. D.jury of executive opinion. Your answer is correct. E.the expert judgment model.

D.jury of executive opinion.

The difference between AON and AOA networks is​ that: A. AOA networks sometimes require dummy activities. B. nodes designate activities in​ AON, while arrows designate activities in AOA. C. nodes consume no resources or time in AOA networks. D. both are acceptable in​ practice; however, Microsoft Project uses AON. E. All of the above are true.

E. All of the above are true.

Which of the following statements regarding CPM is​ true? A.All activities on the critical path have their ES equal to their LF. Your answer is not correct. B.The critical path is that set of activities that has positive slack. C.The critical path is the shortest of all paths through the network. D.Some networks have no critical path. E.All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors.

E.All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors.

The larger the number of periods in the simple moving average forecasting​ method, the greater the​ method's responsiveness to changes in demand. True False

False

If a forecast is consistently greater than​ (or less​ than) actual​ values, the forecast is said to be biased. True False

True

In PERT​ analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time. True False

True

One advantage of exponential smoothing is the limited amount of record keeping involved. True False

True

The sales force composite forecasting method relies on​ salespersons' estimates of expected sales. True False

True

Which of the following is NOT a reason why domestic business operations decide to change to some form of international​ operation? A. improve products B. attract and retain local talent C. improve the supply chain D. improve operations

B. attract and retain local talent

Which of the following does not represent competing on​ response? A. based on flexibility B. based on providing uniqueness C. based on quickness D. concerned with reliability of scheduling

B. based on providing uniqueness

Which of these is NOT one of the basic functions of the management​ process? A. controlling B. inspecting C. staffing D. leading

B. inspecting

In a PERT​ network, non-critical activities that have little slack need to be monitored​ closely: A.because​ near-critical paths could become critical paths with small delays in these activities. B.because they have a high risk of not being completed. C.because slack is undesirable and needs to be eliminated. D.because they are causing the entire project to be delayed. E.because PERT treats all activities as equally important.

A.because​ near-critical paths could become critical paths with small delays in these activities.

Which of these is a reason why outsourcing continues to​ expand? A. increased technological expertise and specialization B. rapid development and deployment of advancements in automation C. less reliable transportation D. more expensive transportation

A. increased technological expertise and specialization

Which of the following is not a type of qualitative​ forecasting? A. moving average B. market survey C. jury of executive opinion D. sales force composite E. Delphi method

A. moving average

Which of the following OM decisions determines how a good or service is produced and commits management to specific​ technology, quality, human​ resources, and capital​ investment? A. process and capacity design B. human resources and job design C. design of goods and services D. managing quality

A. process and capacity design

The service sector constitutes what percentage of employment in the United​ States? A. between​ 70% to​ 80% B. between​ 50% to​ 60% C. between​ 80% to​ 90% D. between​ 60% to​ 70%

C. between​ 80% to​ 90%

Work breakdown structure is a useful tool in project management because it addresses the timing of individual work elements. True False

False

Which of the following is NOT one of the phases of project​ management? A.scheduling B.budgeting C.controlling D.planning E.All of the above are project management phases.

B.budgeting

The critical path for the network activities shown below is​ ________ with duration​ ________. Activity. Duration. Imm. Predece. A. 2 - B 4 - C 6 A,B D 1 A,B E 2 B,C,D A. ​B-D-E; 7 B. ​B-E; 6 C. ​B-C-E; 12 This is the correct answer. D. ​A-C-E; 10 E. ​A-D-E; 5

C. ​B-C-E; 12

A c​-chart is based on the A. normal distribution. B. Erlang distribution. C. Poisson distribution. D. binomial distribution.

C. Poisson distribution.

A project organization works best for an organization when the project resides in only one of its functional areas. True False

False

In a regression equation where ​y-hat is demand and x is​ advertising, a coefficient of determination ​(R2​) of .70 means that​ 70% of the variance in advertising is explained by demand. True False

False

Which of the following strategies helps to smooth utilization of​ facility, equipment, and​ personnel? A. Market aggressively when demand exceeds capacity. B. Raise prices when capacity exceeds demand. C. Hire only temporary​ part-time employees. D. Offer products with complementary demand patterns​ (e.g., jet skis and​ snowmobiles).

Offer products with complementary demand patterns​ (e.g., jet skis and​ snowmobiles).

Efficiency is given by A. design capacity divided by utilization. B. actual output divided by effective capacity. Your answer is correct. C. effective capacity divided by actual output. D. actual output divided by design capacity.

actual output divided by effective capacity.

The degree or strength of a relationship between two variables is shown by​ the: A. alpha. B. coefficient of correlation. C. mean. D. mean absolute deviation. Your answer is not correct. E. cumulative error.

coefficient of correlation.

Competing on differentiation is A. based upon​ low-cost leadership. B. based upon flexibility. C. concerned with reliability of scheduling. D. concerned with uniqueness.

concerned with uniqueness.

Increasing the number of periods in a moving average will accomplish greater​ smoothing, but at the expense​ of: A. manager understanding. B. sensitivity to real changes in the data. C. stability. D. accuracy. E. All of the above are diminished when the number of periods increases.

sensitivity to real changes in the data.

Which of the following is an example of a​ "hidden" production​ function? A. transplanting a liver B. manufacturing a television C. producing a computer D. assembling a motorcycle

transplanting a liver