ISDS 3115 Test 2 MC

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*Which of the following is not one of the strategies for improving service productivity?* A) self-service B) automation C) scheduling D) separation E) mass customization

*E) mass customization*

*What is another name for Process Layout?*

*Job Shop*

*What are the three parts of a waiting line?*

*1. Arrivals or inputs to the system * *2. Queue discipline, or the waiting line itself* *3. The service facility*

*How does production layout break down in terms of variety and volume?*

*Advantages* 1. low variable cost per unit *Disadvantages* 2. high volume is required

*Up to three standard deviations above or below the centerline is the amount of variation that statistical process control allows for:* A) Type I errors. B) about 95.5% variation. C) natural variation. D) all types of variation. E) assignable variation.

*******c

*What are the types and examples of different queuing systems and characteristics?*

*Model A* - Single channel system (M/M/1); information counter at department store; exponential service time pattern *Model B* - Multichannel system (M/M/S); airline ticket counter; exponential service time pattern *Model C* - Constant service (M/D/1); automated car wash; constant service time pattern *Model D* - Limited population (Finite population); a shop with only a dozen machines that might break; exponential service time pattern

*What is benchmarking?*

*Selecting the best practices to use as a standard for performance* - determine what to benchmark - form a benchmark team - collect and analyse benchmarking information - take action to match or exceed the benchmark Use internal benchmarking "if you're big enough"

*Pareto charts are used to:* a) organize errors, problems, or defects b) show material flow c) identify inspection points in a process. d) show the range of values of a measurement and the frequency with which each value occurs . e) outline production schedules

*a) organize errors, problems, or defects*

*Frito-Lay is to ________ focus as Harley Davidson is to ________ focus.* A) process, repetitive B) product, repetitive C) repetitive, product D) process, product E) product, mass customization*

*b*

*A manager tells her production employees, "It's no longer good enough that your work fall anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of* a) internal benchmarking b) Six Sigma c) ISO 9000 d) Taguchi concepts e) process control charts

*d) Taguchi concepts*

*Which of the following statements regarding "Six Sigma" is TRUE?* *a) Six Sigma means that above 94 percent of a firm's output is free of defects.* *b) The Six Sigma program was developed by Toyota in the 1970s.* *c) Six Sigma certification is granted by the International Standards Organization (ISO).* *d) The term has 2 distinct meanings - One is statistical; the other is a comprehensive quality system.* *e) The Six Sigma program is for manufacturing firms and is not applicable to services.*

*d) The term has 2 distinct meanings - One is statistical; the other is a comprehensive quality system.*

*Harley Davidson:* A) utilizes job shops to make each of its modules. B) uses product focused manufacturing. C) uses a large number of modules to build a small number of different bikes. D) uses work cells to feed its assembly line. E) All of the above are true.

*d*

*A fishbone chart is also known as a:* a) Kaizen diagram b) Taguchi diagram c) poka-yoke diagram d) Kanban diagram e) cause-and-effect diagram

*e) cause-and-effect diagram*

*A successful TQM program incorporates all EXCEPT which of the following?* a) benchmarking b) continuous improvement c) JIT d) employee involvement e) centralized decision-making authority

*e) centralized decision-making authority* (Could also say *e. all of the above*)

*What are some regional and community factors in location?*

1. Corporate desires 2. Attractiveness of region 3. Labor availability, costs, attitudes towards unions 4. Costs and availability of utilities, resources, & taxes 5. Environmental regulations. 6. Government incentives and fiscal policies 7. Proximity tor raw materials and customers 8. Land/construction costs

*What are the different types of layouts?*

1. *Office layout* - positions workers, their equipment & spaces/offices to provide movement of information. 2. *Retail layout* - allocates shelf space and responds to customer behavior 3. *Warehouse layout* - addresses tradeoffs between space and material handling. 4. *Fixed-position layout* - addresses the layout requirements of large, bulky projects such as ships buildings & highways 5. *Process-oriented layout* - low-volume, high-variety. 6. *Work-cell layout* - arranges machinery and equipment to focus on production of one or mulptiple products 7. *Product-oriented layout* - seeks the best personnel and machine utilization & repetitive or continuous production

*What are the different types of processes and examples?*

1. *Process focus* (job-shop, machine, print, carpentry) 2. *Repetitive focus* (automobiles, motorcycles, Harley Davidson) 3. *Mass-customization* (difficult to achieve, but huge rewards, Dell Computers) *high-volume, high-variety* 4. *Product Focus* (commercial baked goods, steel, glass)

*A common measure of queuing system's performance include:*

1. Average time that each customer or object spends in the queue 2. Average queue length 3. Average time each customer spends in the system 4. Average number of customers in the system 5. Probability that the service facility will be idle 6. Utilization factor for the system 7. Probability of a specific number of customers in the system

*What are some reasons a company might consider globalization?*

1. Market economics 2. Ease of capital flow between countries 3. High differences in labor costs 4. More rapid, reliable travel and shipping *5. Reduce costs and cheaper labor*

*What are the four approaches to capacity expansion?*

1. leading demand with incremental expansion 2. leading demand with one-step expansion 3. capacity lags demand with incremental expansion 4. attempts to have an average capacity with incremental expansion

*What are some factors in location strategies?*

1. purchasing power of customer-drawing area 2. Service and image compatibility with demographics of the customer-drawing area 3. Competition in the area 4. Quality of the competition 5. Uniqueness of the firm's & competitor's locations 6. Physical qualities of facilities and neighboring businesses 7. Operating policies of the firm 8. Quality of management

*What are the four principles of bottleneck management?*

1. release work orders to the system at the pace of set by the bottleneck 2. Lost time at the bottleneck represents lost time for the whole system 3. increasing the capacity of a non-bottleneck system is a mirage (not real; can't do it) 4. increasing the capacity of a bottleneck increases the capacity of the whole system

*What are the strategies of improving service productivity?*

1. self service 2. automation 3. scheduling 4. separation 5. postponment 6. focus 7. modules 8. training

*What is the purpose of an x-chart?*

1. x-charts are to control the central tendency of the process 2. detects shift and central tendency 3. does NOT detect increase in dispersion

*Which types of companies that use high utilization?*

Product focuses

TOC was popularized by: A) Goldratt and Cox. B) Ford. C) Taguchi. D) Deming. E) Motorola and GE.

*What costs do you hope to minimize in process layout planning?*

Arrange work centers so as to minimize the costs of *material handling.* *Basic Cost elements are* - number of loads (or people) moving between centers - distance loads (or people) moving between centers

*Traffic counts (and/or purchasing power) generally affect what type of organization*

Service/Retail/Professional Location

*Natural variations:* A) affect almost every production process. B) are the many sources of variation that occur when a process is under control. C) when grouped, form a pattern, or distribution. D) are tolerated, within limits, when a process is under control. E) All of the above are true.

E) All of the above are true.

*What is political risk?*

How stable the government is

*Which types of companies that use low utilization?*

Process focuses

*Allocates shelf space and responds to customer behavior* -Objective is to maximize profitability per square foot of floor space -Sales and profitability vary directly with customer exposure

Retail layout

*Traffic counts generally affect what type of organization?*

Service

*What is Taguchi concept?*

The Taguchi Method considers the design to be more important than the manufacturing process in quality control and tries to eliminate variances in production before they can occur. *- quality robustness* *- quality loss function* *- target oriented function*

*What is design capacity?*

The maximum theoretical output of a system Normally expressed as a rate

*An organization whose capacity is on that portion of the average unit cost curve that falls as output rises:* A) has a facility that is below optimum operating level and should build a larger facility. B) has a facility that is above optimum operating level and should reduce facility size. C) is suffering from diseconomies of scale. D) has utilization higher than efficiency. E) has expected output higher than rated capacity

*Industrial location analysis typically attempts to:* A) minimize costs. B) maximize sales. C) focus more on human resources. D) avoid countries with strict environmental regulations. E) ignore exchange rates and currency risks.

*Red Top Cab Company receives multiple complaints per day about driver behavior. Over 9 days the owner recorded the number of calls to be 3, 0, 8, 9, 6, 7, 4, 9, and 8. What is the upper control limit for the 3-sigma c-chart?* A) 13.35 B) 8.45 C) 24.00 D) 0.00 E) 9.03

*Utilization will always be lower than efficiency because:* A) effective capacity is less than design capacity. B) effective capacity is greater than design capacity. C) effective capacity equals design capacity. D) expected output is less than actual output. E) expected output is less than rated capacity.

*Which of the following phrases best describes process focus?* A) low volume, high variety B) Finished goods are usually made to a forecast and stored. C) Operators are less broadly skilled. D) high fixed costs, low variable costs E) low inventory

A Type I error occurs when: A) a good lot is rejected. B) a bad lot is accepted. C) the number of defectives is very large. D) the population is worse than the AQL. E) none of the above

A big advantage of a process-oriented layout is: A) its flexibility in equipment and labor assignments. B) its low cost. C) the simplified scheduling problem presented by this layout strategy. D) the ability to employ low-skilled labor. E) its high equipment utilization.

A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5 percent, what is the approximate net present value of this investment? A) $20,920 B) $26,160 C) $49,840 D) $70,920 E) $106,990

A county wants to build one centrally-located processing facility to serve the county's four recycling drop-off locations. The four drop-offs have characteristics as given in the table below. What is the approximate center of gravity of these four locations? Location X-coordinate Y-coordinate Tonnage Drop-off point A 1 8 10 Drop-off point B 6 7 35 Drop-off point C 6 2 25 Drop-off point D 4 7 50 A) (4.75, 6.04) B) (17, 24) C) (33.5, 135.4) D) (6, 4.25) E) (570, 725)

A finite population waiting line model has an average service time T of 100 minutes and an average time between service requirements U of 400 minutes. What is the service factor X? A) 0.20 B) 0.25 C) 4 D) 5 E) 300 minutes

A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs $0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. If annual demand is expected to be 10 million units, which plant offers the lowest total cost? A) Plant A, because it is cheaper than Plant B for all volumes over 8,000,000 units. B) Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units. C) Plant A, because it is cheaper than Plant B for all volumes. D) Plant B, because it has the lower variable cost per unit. E) Neither Plant A nor Plant B, because the crossover point is at 10 million units.

A location decision for an appliance manufacturer would tend to have what type of focus? A) cost focus B) focus on finding very highly skilled technicians C) revenue focus D) environmental focus E) education focus

A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm's total of $60,000. When performing multiproduct break-even analysis, what is the weighted contribution of this product? A) 0.133 B) 0.200 C) 0.40 D) 0.667 E) $1.667

A single-phase waiting-line system meets the assumptions of constant service time or M/D/1. Units arrive at this system every 12 minutes on average. Service takes a constant 8 minutes. What is the average length of the queue Lq in units? A) 0.67 B) 2.5 C) 4.5 D) 5.0 E) 7.5

A system in which the customer receives service from only one station and then exits the system is which of the following? A) a single-phase system B) a single-channel system C) a multiple channel system D) a multiphase system E) a limited-access system

A tortilla chip workstation produces 1,000 chips in 20 seconds. What is its bottleneck time? A) .02 seconds per chip B) 50 chips per second C) 20 seconds D) 6000 chips per minute E) 20,000 seconds

A waiting-line system that meets the assumptions of M/M/1 has λ = 1, μ = 4. For this system, Po is ________ and utilization is ________. A) 0.75; 0.25 B) 0.80; .20 C) -3; -4 D) 3; 4 E) none of the above

ASRS stands for which of the following? A) automated storage and retrieval system B) automated storage and recovery system C) automated scan and recognize system D) automated scan and retail system E) automated scan and retrieval system

Align Technology uses a ________ approach to produce clear plastic removable aligners. A) mass customization B) product focus C) process focus D) repetitive focus E) crossover

An assembly line has 10 stations with times of 1, 2, 3, 4, ..., 10, respectively. What is the bottleneck time? A) 18.18% of the throughput time B) 100% of the throughput time C) 550% of the throughput time D) 50% of the throughput time E) 1.82% of the throughput time

Arnold Palmer Hospital uses which focus? A) process B) repetitive C) product D) mass customization E) A and D

Computer-integrated manufacturing (CIM) includes manufacturing systems that have: A) computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated. B) transaction processing, management information systems, and decision support systems integrated. C) automated guided vehicles, robots, and process control integrated. D) robots, automated guided vehicles, and transfer equipment integrated. E) all of their computers integrated with the marketing department.

Cross-docking means which of the following? A) Avoid placing materials or supplies in storage by processing them as they are received. B) The same docks can be used either incoming or outbound shipments. C) The same dock is used to unload and then reload the same truck. D) Warehouse docks are designed in the shape of a cross. E) Docks are placed in the warehouse according to the direction (north, south, east, or west) from which the truck is arriving.

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. What is the center of gravity? X-coordinate Y-coordinate Volume Athens, Texas 30 30 150 Beaumont, Texas 20 10 350 Carthage, Texas 10 70 100 Denton, Texas 50 50 200 A) X = 28.125; Y = 31.25 B) X = 22000; Y = 24000 C) X = 27.5; Y = 40 D) center of gravity = 28 E) X = 25; Y = 40

Evaluating location alternatives by comparing their composite (weighted-average) scores involves which of the following? A) factor-rating analysis B) cost-volume analysis C) transportation model analysis D) linear regression analysis E) crossover analysis

Four hundred and eighty minutes of production time are available per day. Scheduled production is 120 units per day. What is the required cycle time? A) 4 minutes B) 5 minutes C) 6 minutes D) 7 minutes E) 8 minutes

Goods made to order are typical of ________ and ________ approaches while goods made to forecast are typical of ________ and ________ approaches. A) process, mass customization; repetitive, product B) product, mass customization; repetitive, process C) product, process; repetitive, mass customization D) repetitive, product; mass customization, process E) repetitive, process; mass customization, product

If a sample of items is taken and the mean of the sample is outside the control limits, the process is: A) likely out of control and the cause should be investigated. B) in control, but not capable of producing within the established control limits. C) within the established control limits with only natural causes of variation. D) monitored closely to see if the next sample mean will also fall outside the control limits. E) producing high quality products.

In "drum, buffer, rope," what provides the schedule, i.e. the pace of production? A) drum B) buffer C) rope D) all three of the above in combination E) none of the above

In the office relationship chart, which rating reflects the highest importance for two departments' closeness to each other? A) A B) E C) I D) O E) X

La Quinta Inns has a competitive edge over its rivals because it: A) uses regression analysis to determine which variables most influence profitability. B) has better television advertisements. C) picks larger locations than its rivals. D) builds only along interstate highways. E) consistently receives four-star ratings for its inns.

Little's Law is not applicable in which of the following situations? A) the opening of a toy store on Black Friday morning B) a 24-hour supermarket C) a gas station with 24-hour self-service pumps D) B and C E) It is applicable to A, B, and C.

Mathematically, takt time is: A) total work time available divided by units required. B) units required divided by workers required. C) a fictional time increment similar to a therblig. D) workers required divided by total operation time required. E) units required divided by total work time available.

Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. What is the crossover point between process A and process B? A) 50 units B) 200 units C) $2,500 D) $5,000 E) $9,500

Solving a load-distance problem for a process-oriented layout requires that: A) the difficulty of movement be the same for all possible paths. B) pickup and setdown costs vary from department to department. C) the cost to move a load be the same for all possible paths. D) takt time be less than 1. E) Proplanner software examines all possible department configurations.

Students arrive randomly at the help desk of the computer lab. There is only one service agent, and the time required for inquiry varies from student to student. Arrival rates have been found to follow the Poisson distribution, and the service times follow the negative exponential distribution. The average arrival rate is 12 students per hour, and the average service rate is 20 students per hour. How many students, on average, will be waiting in line at any one time? A) 0.9 students B) 1.5 students C) 3 students D) 4 students E) 36 students

The source population is considered to be either ________ in its size. A) finite or infinite B) fixed or variable C) known or unknown D) random or scheduled E) small or large

The use of information technology to monitor and control a physical process is known as: A) process control. B) computer-aided design. C) information numeric control. D) numeric control. E) IT oversight.

The usual purpose of an R-chart is to signal whether there has been a: A) gain or loss in dispersion. B) change in the percent defective in a sample. C) change in the central tendency of the process output. D) change in the number of defects in a sample. E) change in the consumer's risk.

To set x-bar chart upper and lower control limits, one must know the process central line, which is the: A) average of the sample means. B) total number of defects in the population. C) percent defects in the population. D) size of the population. E) average range.

What is a drawing of the movement of material, product, or people? A) flowchart B) process chart C) service blueprint D) process map E) vision system

Which of the following are all strategies for improving productivity in services? A) separation, self-service, automation, and scheduling B) lean production, strategy-driven investments, automation, and process focus C) reduce inventory, reduce waste, reduce inspection, and reduce rework D) high interaction, mass customization, service factory, and just-in-time E) process focus, repetitive focus, product focus, and mass customization focus

Which of the following is NOT one of McDonald's "seven major innovations"? A) the Happy Meal B) drive-through windows C) breakfast menus D) play areas E) self-service kiosks

Which of the following is a location analysis technique typically employed by a manufacturing organization? A) transportation method B) queuing theory C) correlation analysis and traffic counts D) simulation E) demographic analysis

Which of the following is a location analysis technique typically employed by a service organization? A) purchasing power analysis B) linear programming C) queuing theory D) transportation method E) locational cost-volume analysis

Which of the following is an example of a finite arrival population? A) copy machines in a copying shop that break down B) students at a large university registering for classes C) shoppers arriving at a supermarket D) cars arriving at a suburban car wash E) all of the above

Which of the following products is likely to be assembled on a repetitive process line? A) automobiles B) custom personal computers C) custom cakes D) steel E) beer

Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched? A) lower resort hotel room prices on Wednesdays B) appointments C) reservations D) first-come, first-served rule E) none of the above

Which of the following statements about acceptance sampling is TRUE? A) The steeper an OC curve, the better it discriminates between good and bad lots. B) Acceptance sampling removes all defective items. C) Acceptance sampling of incoming lots is replacing statistical process control at the supplier. D) Acceptance sampling occurs continuously along the assembly line. E) All of the above are true.

Which of the following statements regarding the center-of-gravity method is FALSE? A) It is designed to minimize the maximum possible travel distance to any of the locations. B) The optimal x- and y-coordinates are calculated separately. C) The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water. D) The weights used are the quantity of goods moved to or from each location. E) The origin of the coordinate system and the scale used are arbitrary, just as long as the relative distances are correctly represented.

Which of the statements below best describes office layout? A) positions workers, their equipment, and spaces/offices to provide for movement of information B) addresses the layout requirements of large, bulky projects such as ships and buildings C) seeks the best personnel and machine utilization in repetitive or continuous production D) allocates shelf space and responds to customer behavior E) deals with low-volume, high-variety production

Which type of layout features departments or other functional groupings in which similar activities are performed? A) process-oriented B) product-oriented C) fixed-position D) mass production E) unit production

*Assignable variation:* A) is a sign that a process is under control. B) is to be identified and investigated. C) is the same as random variation. D) is variation that cannot be traced to a specific cause. E) leads to a steep OC curve.

*A product-focused process is commonly used to produce* a) high-volume, low-variety products. b) high-volume products of either high- or low-variety. c) high-volume, high-variety products d) low-volume, high-variety products. e) low-variety products at either high- or low-volume

a) high-volume, low-variety products.

When sample measurements falls inside the control limits, it means that: a) if there is no other pattern in the samples, the process is in control b) the process limits cannot be determined statistically. the process output does not fulfill the requirements d) the process output exceeds the requirements. d) each unit manufactured is good enough to sell.

a) if there is no other pattern in the samples, the process is in control

All of the following costs are likely to decrease as a result of better quality EXCEPT: a) maintenance costs b) scrap costs c) inspection costs d) warranty and service costs e) customer dissatisfaction costs

a) maintenance costs

*Four of the most widely used waiting line models—M/M/1 or A, M/M/S or B, M/D/1 or C, and Limited population or D-all share which of the following three characteristics?* A) normal arrivals, FIFO discipline, and normal service times B) Poisson arrivals, FIFO discipline, and a single-service phase C) Poisson arrivals, FIFO discipline, and exponential service times D) Poisson arrivals, no queue discipline, and exponential service times E) Poisson arrivals, single-server, and FIFO discipline

*Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon?* A) bureaucratic risk B) political risk C) legislative risk D) judicial risk E) democratic risk

*A manufacturer uses statistical process control to control the quality of the firm's products. Samples of 50 of Product A are taken, and a defective/acceptable decision is made on each unit sampled. For Product B, the number of flaws per unit is counted. What type(s) of control charts should be used?* A) p-charts for both A and B B) p-chart for A, c-chart for B C) c-charts for both A and B D) p-chart for A, mean and range charts for B E) c-chart for A, mean and range charts for B

*A waiting line model meeting the assumptions of M/M/1 has an arrival rate of 2 per hour and a service rate of 6 per hour. What is the utilization factor for the system?* A) 0.25 B) 0.33 C) 0.50 D) 0.67 E) 3.00

*If the Cpk index exceeds 1:* A) the AQL must be smaller than the LTPD. B) σ must be less than one-third of the absolute value of the difference between each specification limit and the process mean. C) the x-bar chart must indicate that the process is in control. D) the process is capable of Six Sigma quality. E) the process is characterized as "not capable."

*The c-chart signals whether there has been a:* A) gain or loss in uniformity. B) change in the number of defects per unit. C) change in the central tendency of the process output. D) change in the percent defective in a sample. E) change in the AOQ.

*The common measures of a queuing system's performance include:* A) probability that the service facility will be idle, average queue length, and probability that the waiting time will exceed a specified duration. B) average time each customer spends in the system, probability that the service system will be idle, and average time each customer spends in the queue. C) average queue length, maximum time a customer may spend in the queue, and the utilization factor for the system. D) average time each customer spends in the system, maximum queue length, and probability of a specific number of customers in the system. E) maximum queue length, maximum time a customer may spend in the queue, and average queue length.

*The local newspaper receives several complaints per day about typographic errors. Over a seven-day period, the publisher has received calls from readers reporting the following total daily number of errors: 4, 3, 2, 6, 7, 3, and 9. Based on these data alone, what type of control chart(s) should the publisher use?* A) p-chart B) c-chart C) x-bar chart D) R-chart E) x-bar chart and R-chart

*The objective of layout strategy is to:* A) minimize cost. B) develop an effective and efficient layout that will meet the firm's competitive requirements. C) maximize flexibility. D) minimize space used. E) maximize worker satisfaction.

*The typical goal used when developing a process-oriented layout strategy is to:* A) minimize the distance between adjacent departments. B) minimize the material handling costs. C) maximize the number of different tasks that can be performed by an individual machine. D) minimize the level of operator skill necessary. E) maximize job specialization.

*Which of the following is FALSE regarding repetitive processes?* A) They use modules. B) They allow easy switching from one product to the other. C) They are the classic assembly lines. D) They have more structure and less flexibility than a job shop layout. E) They include the assembly of basically all automobiles.

*Which of the following is NOT an advantage of work cells?* A) reduced direct labor cost B) decreased equipment and machinery utilization C) heightened sense of employee participation D) reduced raw material and finished goods inventory E) reduced investment in machinery and equipment

*Which of the following is NOT one of the requirements of cellular production?* A) testing (poka-yoke) at each station in the cell B) adequate volume for high equipment utilization C) a high level of training, flexibility, and empowerment of employees D) being self-contained, with its own equipment and resources E) identification of families of products, often through the use of group technology codes or equivalents

*Which of the following is most likely to affect the location strategy of a manufacturing firm?* A) appearance/image of the area B) utility costs C) purchasing power of drawing area D) competition in the area E) parking availability

*Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor?* A) Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances. B) Few people will travel out-of state for a haircut. C) Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. D) Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers. E) Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source.

*Which of the following is true regarding the process capability index Cpk?* A) A Cpk index value of 1 is the highest possible. B) The larger the Cpk, the more units meet specifications. C) The Cpk index can only be used when the process centerline is also the specification centerline. D) Positive values of the Cpk index are good; negative values are bad. E) Its value will always be at least as large as the Cp value for the same process.

*Which one of the following products is most likely made in a job shop environment?* A) rolls of newsprint B) paper forms C) television sets D) cigarettes E) canned vegetables

A McDonald's single-lane drive-through that has one window for making the payment and a second window for receiving the food behaves most like which of the following? A) single-server, single-phase system B) single-server, multiphase system C) multiple-server, single-phase system D) multiple-server, multiphase system E) single-server, sequential-phase system

A Type II error occurs when: A) a good lot is rejected. B) a bad lot is accepted. C) the population is worse than the LTPD. D) the proportion of defectives is very small. E) none of the above

A clothing chain is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis, as shown under the respective columns for Barclay and Chester. Factor Factor Description Weight Barclay Chester 1 Average community income .40 30 20 2 Community growth potential .25 40 30 3 Availability of public transportation .15 20 20 4 Labor cost .20 10 30 What is the score for Chester? A) 10.00 B) 24.50 C) 25.75 D) 27.00 E) 100.00

A concert hall, employing both ticket takers and ushers to seat patrons, behaves typically as which of the following? A) multiple-server, single-phase system B) multiple-server, multiphase system C) single-server, single-phase system D) single-server, multiphase system E) multiple-server, cross-phase system

A finite population waiting line model has an average service time T of 200 minutes and an average time between service requirements U of 300 minutes. What is the service factor X? A) 0.20 B) 0.40 C) 0.60 D) 0.67 E) 2.5

A manager wants to build 3-sigma x-bar control limits for a process. The target value for the mean of the process is 10 units, and the standard deviation of the process is 6. If samples of size 9 are to be taken, what will be the upper and lower control limits, respectively? A) -8 and 28 B) 16 and 4 C) 12 and 8 D) 4 and 16 E) 8 and 12

A product-oriented layout would be MOST appropriate for which one of the following businesses? A) fast food B) steel making C) insurance sales D) clothing alterations E) a grocery store

A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of work. The factory operates 750 minutes per day. What is the required cycle time for this assembly line? A) 0.5 minutes B) 1.5 minutes C) 2 minutes D) 5,500 minutes E) 4.26 minutes

A queuing model that follows the M/M/1 assumptions has λ = 2 and μ = 3. What is the average time in the system? A) 2/3 B) 1 C) 1.5 D) 2 E) 6

A queuing model that follows the M/M/1 assumptions has λ = 2 and μ = 8. The average number in the system Ls is ________ and the utilization of the system is ________. A) 3; 100 percent B) 0.33; 25 percent C) 4; 33 percent D) 6; 25 percent E) 4; 25 percent

A single-phase waiting-line system meets the assumptions of constant service time or M/D/1. Units arrive at this system every 10 minutes on average. Service takes a constant 4 minutes. What is the average length of the queue Lq in units? A) 0.4 B) 0.133 C) 4.167 D) 4.583 E) 6

A waiting-line system that meets the assumptions of M/M/1 has λ = 1, μ = 4. For this system, what is the probability of more than two units in the system? A) zero B) 0.015625 C) 0.0625 D) 0.25 E) 0.9375

A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the bottleneck time? A) 4 B) 9 C) 18 D) 35 E) 7

An acceptance sampling plan is to be designed to meet the organization's targets for product quality and risk levels. Which of the following is true? A) n and c determine the AQL. B) AQL, LTPD, α and β collectively determine n and c. C) n and c are determined from the values of AQL and LTPD. D) α and β are determined from the values of AQL and LTPD. E) None of the above is true.

Balancing a work cell is done: A) before the work cell equipment is sequenced. B) as part of the process of building an efficient work cell. C) before takt time is calculated. D) so that each assembly line workstation has exactly the same amount of work. E) to minimize the total movement in a process layout.

Basic break-even analysis typically assumes that: A) revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases. B) variable costs and revenues increase in direct proportion to the volume of production. C) both costs and revenues are made up of fixed and variable portions. D) costs increase in direct proportion to the volume of production, while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts. E) All of the above are assumptions in the basic break-even model.

Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. Station 3 has two identical machines, each of which can process a unit in 12 minutes (each unit only needs to be processed on one of the two machines. Station 4 can produce a unit in 5 minutes. Station 5 can produce a unit in 8 minutes. Which station is the bottleneck station? A) Station 1 B) Station 2 C) Station 3 D) Station 4 E) Station 5

Currency risk is based on what assumption? A) Firms that do not continuously innovate will lose market share. B) Values of foreign currencies continually rise and fall in most countries. C) Changing product lines by reacting to every current trend may alienate the customer base. D) The value of one dollar today is greater than the value of one dollar to be received one year from now. E) The U.S. stock market fluctuates daily.

Deloitte & Touche solved the empty desk problem by: A) assigning permanent desks. B) implementing a "hoteling" program. C) creating open offices. D) no longer allowing employees to work from home. E) reducing the number of allowable sick days per employee.

Effective capacity is the: A) maximum output of a system in a given period. B) capacity a firm expects to achieve given the current operating constraints. C) average output that can be achieved under ideal conditions. D) minimum usable capacity of a particular facility. E) sum of all of the organization's inputs.

Globalization of the location decision is the result of all EXCEPT which of the following? A) market economics B) higher quality of labor overseas C) ease of capital flow between countries D) high differences in labor costs E) more rapid, reliable travel and shipping

In assembly-line balancing, cycle time (the ratio of available production time to scheduled production) is the: A) minimum time that a product is allowed at each workstation. B) maximum time that a product is allowed at each workstation. C) inverse of the minimum number of workstations needed. D) sum of all the task times divided by the maximum number of workstations. E) equivalent of the maximum task time among all tasks.

In most acceptance sampling plans, when a lot is rejected, the entire lot is inspected and all defective items are replaced. When using this technique the AOQ: A) worsens (AOQ becomes a larger fraction). B) improves (AOQ becomes a smaller fraction). C) is not affected, but the AQL is improved. D) is not affected. E) falls to zero.

In the basic queuing model (M/M/1), what probability distribution describes service times? A) binomial B) negative exponential C) Poisson D) normal E) lognormal

Producer's risk is the probability of: A) accepting a good lot. B) rejecting a good lot. C) rejecting a bad lot. D) accepting a bad lot. E) none of the above.

Production and transportation costs are always considered in which of the following location decision methods? A) traffic counts B) transportation model C) purchasing power D) proximity of markets E) clustering

Statistical process control charts: A) display the measurements on every item being produced. B) display upper and lower limits for process variables or attributes and signal when a process is no longer in control. C) indicate to the process operator the average outgoing quality of each lot. D) indicate to the operator the true quality of material leaving the process. E) are a graphic way of classifying problems by their level of importance, often referred to as the 80-20 rule.

The basic break-even model can be modified to handle more than one product. This extension of the basic model requires: A) price and sales volume for each product. B) price and variable cost for each product, and the percent of sales that each product represents. C) that the firm have very low fixed costs. D) that the ratio of variable cost to price be the same for all products. E) sales volume for each product.

The main issue in designing process-oriented layouts concerns the relative positioning of: A) safety devices. B) departments or work centers. C) raw materials. D) entrances, loading docks, etc. E) supervisors to their employees.

The potential restaurant customer who says to her husband, "The line looks too long; let's eat somewhere else," is an illustration of which element of arrival behavior? A) first-in, first-out B) balk C) renege D) random departure E) frustration

The reason fast food restaurants often are found in close proximity to each other is: A) they enjoy competition. B) location clustering near high traffic flows. C) low cost. D) availability of skilled labor. E) all of the above.

The shopper who says to himself, "I've waited too long in this line. I don't really need to buy this product today," and leaves the store is an illustration of which element of arrival behavior? A) random arrival B) renege C) random departure D) balk E) frustration

The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put into use, the program has become more complex, so that 1050 now represents the most employees that can be trained per year. In the past year, 950 employees were trained. The efficiency of this system is approximately ________ and its utilization is approximately ________. A) 79.2 percent; 90.5 percent B) 90.5 percent; 79.2 percent C) 87.5 percent; 950 employees D) 950 employees; 1050 employees E) 110.5 percent; 114.3 percent

The transportation model, when applied to location analysis: A) minimizes total fixed costs. B) minimizes total production and transportation costs. C) minimizes total transportation costs. D) maximizes revenues. E) minimizes the movement of goods.

What is an approach to location analysis that includes both qualitative and quantitative considerations? A) locational cost-volume analysis B) factor-rating method C) transportation model D) center-of-gravity method E) make-or-buy analysis

Which of the following characteristics best describes repetitive focus? A) It uses sophisticated scheduling to accommodate custom orders. B) Its output is a standardized product produced from modules. C) Operators are broadly skilled. D) It is widely used for the manufacture of steel. E) low volume, high variety

Which of the following is NOT among the eight determinants of revenue and volume for a service firm? A) quality of management B) shipment cost of finished goods C) purchasing power of the customer-drawing area D) uniqueness of the firm's and the competitors' locations E) competition in the area

Which of the following is most likely to be served in a last-in, first-served (LIFS) queue discipline? A) customers checking out at a grocery store B) the in-basket on a manager's desk C) patients entering a hospital emergency room D) patrons waiting to be seated in a casual-dining restaurant E) customers waiting to see a bank teller

Which of the following statements regarding fixed costs is TRUE? A) Fixed costs rise by a constant amount for every added unit of volume. B) While fixed costs are ordinarily constant with respect to volume, they can "step" upward if volume increases result in additional fixed costs. C) Fixed costs are those costs associated with direct labor and materials. D) Fixed costs equal variable costs at the break-even point. E) Fixed cost is the difference between selling price and variable cost.

Which one of the following is NOT a characteristic of a Model B or M/M/S system? A) unlimited population size B) single server C) exponential service time pattern D) single phase E) Poisson arrival rate pattern

The goal of inspection is to: a) correct deficiencies in products. b) detect a bad process immediately c) add value to a product or service d) correct system deficiencies e) all of the above

b) detect a bad process immediately

*If a sample of parts is measured and the mean of the measurements is outside the control limits, the process is* a) in control, but not capable of producing within the established control limits b) out of control and the process should be investigated for assignable variation c) within the established control limits with only natural causes of variation d) monitored closely to see if the next sample mean will also fall outside the control limits e) none of the above

b) out of control and the process should be investigated for assignable variation

"Operators simply load new programs, as necessary, to produce different products" describes: A) CAD. B) automated guided vehicles. C) flexible manufacturing systems. D) vision systems. E) process control.

*A Cpk index of 1.00 equates to what defect rate?* A) five percent B) 3.4 defects per million items C) 2.7 defects per 1,000 items D) 97.23 percent E) one percent

*A hospital's layout most closely resembles which of the following?* A) product oriented B) work cell C) job shop D) project E) retail

*A nationwide parcel delivery service keeps track of the number of late deliveries (more than 30 minutes past the time promised to clients) per day. They plan on using a control chart to plot their results. Which type of control chart(s) would you recommend?* A) both x-bar chart and R-chart B) p-chart C) c-chart D) x-bar chart E) both p-chart and c-chart

*A product-focused process is commonly used to produce:* A) high-volume, high-variety products. B) low-volume, high-variety products. C) high-volume, low-variety products. D) low-variety products at either high- or low-volume. E) high-volume products of either high- or low-variety.

*Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking?* A) based on competitiveness B) based on cost of doing business C) based on corruption D) based on magnitude of government social programs E) based on average duration between presidential/prime minister elections

*For which of the following operations would a fixed-position layout be MOST appropriate?* A) assembling automobiles B) producing TV sets C) constructing a highway tunnel D) refining of crude oil E) running an insurance agency

*In location planning, environmental regulations, cost and availability of utilities, and taxes are:* A) global factors. B) country factors. C) regional/community factors. D) site-related factors. E) none of the above

*In queuing problems, which of the following probability distributions is typically used to describe the number of arrivals per unit of time?* A) binomial B) normal C) Poisson D) exponential E) lognormal

*Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 oz. Which type of chart(s) would you recommend?* A) p-chart B) c-chart C) both an x-bar chart and an R-chart D) an x-bar chart, but not an R-chart E) both a p-chart and a c-chart

*One of the major advantages of process-oriented layouts is:* A) high equipment utilization. B) large work-in-process inventories. C) flexibility in equipment and labor assignment. D) smooth and continuous flow of work. E) small work-in-process inventories.

*Product focused processes:* A) allow more customization, but are not very efficient. B) are desirable because resource needs increase slowly with the complexity of a process. C) are processes that are specialized for relatively few products or customer groups. D) apply only to service firms, not to manufacturers. E) are profitable because customers demand flexibility, not specialization.

*The number of late insurance claim payouts per 100 should be measured with what type of control chart?* A) x-bar chart B) R-chart C) p-chart D) c-chart E) either p-chart or c-chart

*Three of the four types of processes are:* A) goods, services, and hybrids. B) manual, automated, and service. C) process focus, repetitive focus, and product focus. D) modular, continuous, and technological. E) input, transformation, and output.

*When making a location decision at the region/community level, which of these would be considered?* A) government rules, attitudes, stability, incentives B) cultural and economic issues C) cost and availability of utilities D) zoning restrictions E) air, rail, highway, waterway systems

*Which of the following does NOT support the retail layout objective of maximizing customer exposure to products?* A) Locate high-draw items around the periphery of the store. B) Use prominent locations for high-impulse and high-margin items. C) Maximize exposure to expensive items. D) Use end-aisle locations. E) Convey the store's mission with the careful positioning of the lead-off department.

*Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?* A) energy and utility costs B) attitude toward unions C) parking and access D) cost of shipping finished goods E) labor costs

*________ and ________ are two key country success factors as ________ and ________ are to key region success factors.* A) Cultural issues, location of markets; site size and cost, zoning restrictions B) Exchange rates, labor availability; site size and cost, environmental impact C) Labor cost, currency risk; land costs, proximity to customers D) Land costs, proximity to customers; labor cost, air and rail systems E) All of the above are accurate relationships.

A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5 percent, the net present value of this investment is: A) greater than $80,000 but less than $130,000. B) greater than $130,000. C) less than $30,000. D) impossible to calculate, because no interest rate is given. E) impossible to calculate, because variable costs are not known.

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision. A) transportation costs B) cost of raw materials C) appearance/image of the location D) quality of life E) taxes

A large discount store and supermarket has a hair styling salon on its premises. The salon has several operators. Salon customers can shop in other parts of the store until their name is called for salon service, at which time the customer will be served by the next available stylist. This scenario provides an example of which of the following? A) multiple-server, limited queue length B) single-server, multiphase, limited queue length C) multiple-server, unlimited queue length D) multiple single-server systems, limited queue length E) single-server, unlimited queue length

A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus? A) cost focus B) labor focus C) revenue focus D) environmental focus E) education focus

A manager wishes to build a 3-sigma range chart for a process. The sample size is five, the mean of sample means is 16.01, and the average range is 5.3. From Table S6.1, the appropriate value of D3 is 0, and D4 is 2.115. What are the UCL and LCL, respectively, for this range chart? A) 33.9 and 11.2 B) 33.9 and 0 C) 11.2 and 0 D) 6.3 and 0 E) 31.91 and 0.11

A production line is to be designed for a job with four tasks. The task times are 2.4 minutes, 1.4 minutes, 0.9 minutes, and 1.7 minutes. After line balancing, the largest possible assigned cycle time is ________ minutes, and the smallest possible assigned cycle time is ________ minutes. A) 1.8; 1.4 B) 1.6; 0.9 C) 6.4; 2.4 D) 2.4; 0.9 E) 6.4; 0.9

A production line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can an assembly line with five workstations make 100 units per day? A) yes, with exactly 100 minutes to spare B) no, but four workstations would be sufficient C) no, it will fall short even with a perfectly balanced line D) yes, but the line's efficiency is very low E) cannot be determined from the information given

A regional bookstore chain wants to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis? A) assembly line balancing B) load-distance analysis C) center-of-gravity method D) linear programming E) locational cost-volume analysis

A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called: A) an adaptive control system. B) robotics. C) a flexible manufacturing system. D) an automatic guided vehicle (AGV) system. E) a manufacturing cell.

A waiting line meeting the assumptions of M/M/1 has an average time between arrivals of 20 minutes, and it services items in an average of 10 minutes each. What is the utilization factor? A) 0.25 B) 0.33 C) 0.50 D) 0.67 E) 3.00

A waiting-line system that meets the assumptions of M/M/S has λ = 5, μ = 4, and M = 2. For these values, Po is approximately 0.23077, and Ls is approximately 2.05128. What is the average number of units waiting in the queue? A) approximately 0.1603 B) approximately 0.4103 C) approximately 0.8013 D) approximately 1.0417 E) Cannot be calculated because λ is larger than μ.

A waiting-line system that meets the assumptions of M/M/S has λ = 5, μ = 4, and M = 2. For these values, Po is approximately 0.23077, and Ls is approximately 2.05128. What is the average time a unit spends in this system? A) approximately 0.1603 B) approximately 0.2083 C) approximately 0.4103 D) approximately 0.8013 E) Cannot be calculated because λ is larger than μ.

Acceptance sampling: A) is the application of statistical techniques to the control of processes. B) was developed by Walter Shewhart of Bell Laboratories. C) is used to determine whether to accept or reject a lot of material based on the evaluation of a sample. D) separates the natural and assignable causes of variation. E) is another name for 100% inspection.

According to the text, what is the most common choice of limits for control charts? A) ±1 standard deviation B) ±2 standard deviations C) ±3 standard deviations D) ±3 standard deviations for means and ± 2 standard deviations for ranges E) ±6 standard deviations

Adding a complementary product to what is currently being produced is a demand management strategy used when: A) demand exceeds capacity. B) capacity exceeds demand for a product that has stable demand. C) the existing product has seasonal or cyclical demand. D) price increases have failed to bring about demand management. E) efficiency exceeds 100 percent.

An airline ticket counter, with several agents for one line of customers, is an example of which of the following? A) single-server, single-phase system B) single-server, multiphase system C) multiple-server, single-phase system D) multiple-server, multiphase system E) cross-server, single-phase system

An assembly line consists of 158 tasks grouped into 32 workstations. The sum of all task times is 105 minutes. The largest assigned cycle time is 4 minutes. What is the efficiency of this line? A) 8 percent B) 21 percent C) 82 percent D) 100 percent E) 81 percent

An assembly line consists of 21 tasks grouped into 5 workstations. The sum of the 21 task times is 85 minutes. The largest assigned cycle time is 20 minutes. What is the efficiency of this line? A) 4.2 percent B) 17 percent C) 85 percent D) 100 percent E) 21 percent

An assembly line is an example of a: A) product-focused process. B) process-focused process. C) repetitive process. D) line process. E) specialized process

An employee produces 15 parts during a shift in which he made $90. What is the labor content of the product? A) $90 B) $5 C) $6 D) $0.167 E) $1,350

An operating characteristics curve shows: A) upper and lower product specifications. B) product quality under different manufacturing conditions. C) how the probability of accepting a lot varies with the population percent defective. D) when product specifications don't match process control limits. E) how operations affect certain characteristics of a product.

Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 85%. What is the expected weekly output of cranks for this company? A) 5100 B) 5700 C) 4845 D) 969 E) 6783

Control charts for variables are based on data that come from: A) acceptance sampling. B) individual items. C) averages of small samples. D) averages of large samples. E) the entire lot.

Geographic information systems can assist the location decision by: A) automating center-of-gravity problems. B) computerizing factor-rating analysis. C) combining geography with demographic analysis. D) updating transportation method solutions. E) providing good Internet placement for virtual storefronts.

If x-bar = 23 ounces, σ = 0.4 ounces, and n = 16, what will be the ±3σ control limits for the x-bar chart? A) 21.8 to 24.2 ounces B) 23 ounces C) 22.70 to 23.30 ounces D) 22.25 to 23.75 ounces E) 22.90 to 23.10 ounces

Lag and straddle strategies for increasing capacity have what main advantage over a leading strategy? A) They are cheaper. B) They are more accurate. C) They delay capital expenditure. D) They increase demand. E) All of the above are advantages.

One fundamental difference between a process chart and a flowchart is that: A) the process chart adds a time dimension to the horizontal axis, while a flowchart is not time-oriented. B) the process chart includes the supply chain, while the flowchart stays within an organization. C) the process chart is more like a table, while the flowchart is more like a schematic diagram. D) the process chart focuses on the customer and on the provider's interaction with the customer, while the flowchart does not deal directly with the customer. E) None of these is true, because a process chart and a flowchart are the same thing.

Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is TRUE? A) The crossover point is approximately 6667 units. B) It is impossible for one process to have both of its costs lower than those of another process. C) Process Y is cheaper than process X at all volumes. D) Process X should be selected for very large production volumes. E) Process X is more profitable than process Y and should be selected.

Students arrive randomly at the help desk of the computer lab. There is only one service agent, and the time required for inquiry varies from student to student. Arrival rates have been found to follow the Poisson distribution, and the service times follow the negative exponential distribution. The average arrival rate is 12 students per hour, and the average service rate is 20 students per hour. On average, how long does it take to service each student? A) 1 minute B) 2 minutes C) 3 minutes D) 5 minutes E) 20 minutes

Tangible costs include which of the following? A) climatic conditions B) availability of public transportation C) taxes D) quality and attitude of prospective employees E) zoning regulations

The Central Limit Theorem: A) is the theoretical foundation of the c-chart. B) states that the average of assignable variations is zero. C) allows managers to use the normal distribution as the basis for building some control charts. D) states that the average range can be used as a proxy for the standard deviation. E) controls the steepness of an operating characteristic curve.

The assumptions necessary for a successful product-oriented layout include all EXCEPT which of the following? A) adequate volume for high equipment utilization B) standardized product C) volatile product demand D) adequately standardized supplies of raw materials and components E) All of the above are appropriate assumptions.

The center-of-gravity method is used primarily to determine what type of locations? A) service locations B) manufacturing locations C) distribution center locations D) supplier locations E) call center locations

The major problem addressed by the warehouse layout strategy is: A) minimizing difficulties caused by material flow varying with each product. B) requiring frequent close contact between forklift drivers and item pickers. C) addressing trade-offs between space and material handling. D) balancing product flow from one work station to the next. E) locating the docks near a convenient access point to the closest highway.

The normal application of a p-chart is in: A) process sampling by variables. B) acceptance sampling by variables. C) process sampling by attributes. D) acceptance sampling by attributes. E) process capability ratio computations.

The purpose of an x-bar chart is to determine whether there has been a: A) change in the dispersion of the process output. B) change in the percent defective in a sample. C) change in the central tendency of the process output. D) change in the number of defects in a sample. E) change in the AOQ.

The upper and lower limits for diving ring diameters made by John's Swimming Co. are 40 and 39 cm., respectively. John took 11 samples with the following average diameters (39, 39.1, 39.2, 39.3, 39.4, 39.5 39.6, 39.7, 39.8, 39.9, 40). Is the process in control? A) Yes, no diameters exceeded the control limits. B) No, some diameters exceeded the control limits. C) No, there is a distinguishable pattern to the samples. D) No, the range is not in control. E) There is not enough information to make a decision.

Traffic counts and demographic analysis of drawing area are associated with: A) the center-of-gravity method. B) manufacturing location decisions. C) service location decisions. D) the transportation model. E) locational cost-volume analysis.

Traffic counts and purchasing power analysis of drawing area are techniques associated with: A) locational cost-volume analysis. B) a manufacturing location decision. C) a retail or professional service location decision. D) the factor-rating method. E) the transportation model.

*The causes of variation in statistical process control are:* A) cycles, trends, seasonality, and random variations. B) producer's causes and consumer's causes. C) mean and range. D) natural causes and assignable causes. E) Type I and Type II.

Under which of the following situations will the average outgoing quality (AOQ) decrease? A) The true percentage defective of the lot increases. B) The number of items in the sample decreases. C) The number of items in the lot decreases. D) The probability of accepting the lot for a given sample size and quantity defective increases. E) The difference between the number of items in the lot and the number of items in the sample increases.

What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? A) More shelf space for those popular items is available around the periphery. B) There will be less congestion of customers than there would be in the middle. C) This arrangement will help to maximize customer exposure to other items in the store. D) It is easier to put large advertisement signs on the outside walls right next to the items. E) This arrangement allows customers to travel through the store as quickly as possible.

Which of the following assumptions is NOT associated with strategies for goods-producing location decisions? A) Most major costs can be identified explicitly for each site. B) Focus on identifiable costs. C) High customer-contact issues are critical. D) Intangible costs can be evaluated. E) Location is a major determinant of cost.

Which of the following is NOT a heuristic rule for assigning tasks to workstations in a product layout? A) longest tasks first B) in order of most number of following tasks C) median tasks first D) shortest tasks first E) in accordance with positional weight

Which of the following is NOT one of the factors complicating the techniques for addressing the fixed-position layout? A) The volume of materials needed is dynamic. B) At different stages of a project, different materials are needed; therefore, different items become critical as the project develops. C) Takt times at workstations are dynamic. D) There is limited space at virtually all sites. E) All of the above are complicating factors.

Which of the following is a requirement for application of Little's Law to be valid? A) arrival rates that follow the Poisson distribution B) FIFO queue discipline C) steady state conditions D) single-server system E) multiphase system

Which of the following is most likely to violate a FIFO queue? A) supermarket with no express lanes B) car repair garage C) emergency room D) fast-food restaurant E) All of the above are equally likely to violate a FIFO queue.

Which of the following is true regarding the relationship between AOQ and the true population percent defective? A) AOQ is greater than the true percent defective. B) AOQ is the same as the true percent defective. C) AOQ is less than the true percent defective. D) There is no relationship between AOQ and the true percent defective. E) The relationship between these two cannot be determined

Which of the following methods best considers intangible costs related to a location decision? A) crossover methods B) locational cost-volume analysis C) factor-rating method D) the transportation method E) center-of-gravity method

Which of the following occurs as the level of service decreases? A) Cost of waiting time decreases, and cost of providing service decreases. B) Cost of waiting time decreases, and cost of providing service increases. C) Cost of waiting time increases, and cost of providing service decreases. D) Cost of waiting time increases, and cost of providing service increases. E) Cost of waiting time first decreases, then increases; while cost of providing service decreases.

Which of the following represents a common way to manage capacity in the service sector? A) appointments B) reservations C) changes in staffing levels D) first-come, first-served service rule E) "early bird" specials in restaurants

Which of the following represents an unlimited queue? A) drive-through lane at a fast-food restaurant B) small barbershop with only 5 chairs for waiting customers C) toll booth serving automobiles on an interstate D) faculty office with limited seating during office hours E) restaurant with no outside seating and limited capacity due to fire department restrictions

Which of the following statements regarding FedEx is TRUE? A) Its hub in Memphis, Tennessee, was selected because of its low cost. B) Memphis, Tennessee, is the only hub in the company's global flight network. C) FedEx believes the hub system helps reduce mishandling and delays due to better controls. D) FedEx uses a hub system in the United States, but a city-to-city network in other countries. E) Memphis is FedEx's only hub airport in the United States.

Which of these factors would be considered when making a location decision at the site level? A) government rules, attitudes, stability, incentives B) cultural and economic issues C) zoning regulations D) cost and availability of utilities E) proximity to raw materials and customers

Which one of the following is NOT common to repetitive and product-oriented layouts? A) a high rate of output B) specialized equipment C) ability to adjust to changes in demand D) low unit costs E) standardized products

Workspace can inspire informal and productive encounters if it balances what three physical and social aspects? A) proximity, privacy, and persuasion B) privacy, persuasion, and permission C) proximity, privacy, and permission D) proximity, persuasion, and permission E) proximity, persuasion, and passion

"A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type? A) fixed-position layout B) intermittent production C) job shop D) work cell E) warehouse layout

*A job shop is an example of a(n):* A) repetitive process. B) continuous process. C) line process. D) intermittent process. E) specialized process.

*A waiting line, or queuing, system has three parts, which are:* A) distribution of arrival times, discipline while waiting, and distribution of service times. B) arrival rate, service rate, and utilization rate. C) arrival discipline, queue discipline, and service sequencing. D) arrivals or inputs, queue discipline or the waiting line itself, and the service facility. E) sequencing policy, penalty for reneging, and expediting of arrivals.

*Natural variations:* A) are variations that are to be identified and investigated. B) are variations that can be traced to a specific cause. C) are the same as assignable variations. D) lead to occasional false findings that processes are out of control. E) play no role in statistical process control.

*One of the similarities between process focus and mass-customization is:* A) the volume of outputs. B) the use of modules. C) many departments and many routings. D) the variety of outputs. E) All of the above are similarities.

*The crossover point is that production quantity where:* A) variable costs of one process equal the variable costs of another process. B) fixed costs of a process are equal to its variable costs. C) total costs equal total revenues for a process. D) total costs for one process equal total costs for another process. E) the process no longer loses money.

*The most common tactic followed in process-layout planning is to arrange departments or work centers so they:* A) minimize the cost of skilled labor. B) maximize the machine utilization. C) are equally allocated within the available space. D) minimize the costs of material handling. E) produce a perfectly balanced assembly line.

*The number of defects after a hotel room cleaning (sheets not straight, smears on mirror, missed debris on carpet, etc) should be measured using what type of control chart?* A) x-bar chart B) R-chart C) p-chart D) c-chart E) either x-bar chart or R chart

*The sign at the bank that reads, "Wait here for the first available teller," suggests the use of a ________ waiting line system.* A) dynamic-server, single-phase B) random-server, single-phase C) single-server, multiphase D) multiple-server, single-phase E) multiple-server, multiphase

*What is sometimes referred to as rated capacity?* A) efficiency B) utilization C) effective capacity D) expected output E) design capacity

*Which of the following is FALSE regarding capacity expansion?* A) "Average" capacity sometimes leads demand, sometimes lags it. B) If "lagging" capacity is chosen, excess demand can be met with overtime or subcontracting. C) Total cost comparisons are a rather direct method of comparing capacity alternatives. D) Capacity may only be added in large chunks. E) In manufacturing, excess capacity can be used to do more setups, shorten production runs, and drive down inventory costs.

*Which of the following phrases best describes product focus?* A) low volume, high variety B) Finished goods are usually made to order. C) Processes are designed to perform a wide variety of activities. D) high fixed costs, low variable costs E) high inventory

*Which part of a waiting line has characteristics that involve a statistical distribution?* A) arrivals or inputs B) the waiting line itself C) the service facility D) A and C E) A, B, and C

A college registrar's office requires you to first visit with one of three advisors and then with one of two financial professionals. This system is best described as which of the following? A) single-server, single-phase system B) single-server, multiphase system C) multiple-server, single-phase system D) multiple-server, multiphase system E) multiple-server, cross-phase system

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites. Factor Weight Gary Mall Belt Line Affluence of local population .20 30 30 Traffic flow .40 50 20 Parking availability .20 30 40 Growth potential .20 10 30 The score for Gary Mall is ________ and the score for Belt Line is ________. A) 120; 120 B) 22; 24 C) 18; 120 D) 34; 28 E) none of the above

A process layout problem consists of 4 departments, each of which can be assigned to one of four rooms. The number of different solutions to this problem is ________, although all of them may not have different material handling costs. A) 1 B) 4 C) 16 D) 24 E) unknown

A queuing model that follows the M/M/1 assumptions has λ = 10 and μ = 12. What is the average number of units in the system? A) 0.83 B) 2 C) 2.5 D) 5 E) 6

A queuing model that follows the M/M/1 assumptions has λ = 2 and μ = 3. What is the average number of units in the system? A) 2/3 B) 1 C) 1.5 D) 2 E) 6

A retailer is considering building a large store. If the local economy experiences expansion, the firm expects the store to earn a $2,000,000 profit next year. If the local economy experiences a contraction, the firm expects the store to lose $400,000 next year. Analysts estimate a 20% chance for the local economy to experience an expansion next year (hence an 80% chance for contraction). What is the expected monetary value (EMV) of building the large store? A) $1,600,000 B) $720,000 C) $2,000,000 D) $80,000 E) $1,520,000

A run test is used: A) to examine variability in acceptance sampling plans. B) in acceptance sampling to establish control. C) to examine points in a control chart to check for natural variability. D) to examine points in a control chart to check for nonrandom variability. E) to test the validity of the Central Limit Theorem

A single-phase waiting-line system meets the assumptions of constant service time or M/D/1. Units arrive at this system every 12 minutes on average. Service takes a constant 8 minutes. What is the average number in the system Ls in units? A) 2.25 B) 2.5 C) 3.0 D) 1.33 E) 5.0

A waiting-line system that meets the assumptions of M/M/1 has λ = 1, μ = 4. For this system, what is the probability of fewer than two units in the system? A) 0.0625 B) 0.25 C) 0.75 D) 0.9375 E) 1.00

A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the throughput time of the system? A) 4 B) 9 C) 18 D) 35 E) 7

Acceptance sampling is usually used to control: A) the number of units of output from one stage of a process that are then sent to the next stage. B) the number of units delivered to the customer. C) the quality of work-in-process inventory. D) incoming lots of purchased products. E) all of the above.

Acceptance sampling's primary purpose is to: A) estimate process quality. B) identify processes that are out of control. C) detect and eliminate defectives. D) decide if a lot meets predetermined standards. E) determine whether defective items found in sampling should be replaced.

Advances in technology: A) have impacted the manufacturing sector only. B) have had only a limited impact on services. C) have failed to change the level of customer interaction with an organization. D) have had a dramatic impact on customer interaction with services and with products. E) have dramatically changed health care, but have not changed retailing.

Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are all: A) indicators of imbalance on an assembly line. B) indicators that cross-docking has been successful. C) elements of customization in a warehouse layout. D) elements of servicescapes. E) elements of successful office layouts.

An acceptance sampling plan's ability to discriminate between low quality lots and high quality lots is described by: A) a Gantt chart. B) the Central Limit Theorem. C) a process control chart. D) an operating characteristic curve. E) a range chart.

Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers: A) virtually never employ this layout strategy. B) utilize this approach only for construction projects such as bridges and office towers. C) increase the size of the site. D) often complete as much of the project as possible offsite. E) utilize this layout only for defense contractors.

Break-even analysis can be used by a firm that produces more than one product, but: A) the results are estimates, not exact values. B) the firm must allocate some fixed cost to each of the products. C) each product has its own break-even point. D) the break-even point depends upon the proportion of sales generated by each of the products. E) None of these statements is true.

Consumer's risk is the probability of: A) accepting a good lot. B) rejecting a good lot. C) rejecting a bad lot. D) accepting a bad lot. E) none of the above

Cycle time is computed as: A) desired output divided by the daily operating time. B) daily operating time divided by the product of desired output and the sum of job times. C) the product of desired output and the sum of job times divided by daily operating time. D) daily operating time divided by the scheduled output. E) 1.00 minus station time.

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per unit. What is the break-even point for machine A? A) $90,000 dollars B) 90,000 units C) $15,000 dollars D) 15,000 units E) 4,286 units

For a 3-sigma x-bar chart where the process standard deviation is known, the upper control limit: A) is 3σ below the mean of sample means for a 3σ control chart. B) is 3σ above the mean of sample means for a 3σ control chart. C) is 3σ/ below the mean of sample means for a 3σ control chart. D) is 3σ/ above the mean of sample means for a 3σ control chart. E) cannot be calculated unless the average range is known.

Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 80 units per day. Each unit of the product requires 30 minutes of work. What is the theoretical minimum number of workstations? A) 2 B) 3 C) 4 D) 5 E) 6

In a product-oriented layout, what is the process of deciding how to assign tasks to workstations? A) station balancing B) process balancing C) task allocation D) assembly-line balancing E) work allocation

In assembly-line balancing, the theoretical minimum number of workstations is: A) the ratio of the sum of all task times to cycle time. B) always (when a fraction) rounded upward to the next larger integer value. C) not always possible to reach when tasks are actually assigned to stations. D) all of the above. E) none of the above.

In mass service and professional service, the operations manager should focus extensively on: A) automation. B) equipment maintenance. C) sophisticated scheduling. D) human resources. E) cost-cutting initiatives.

In queuing problems, which of the following probability distributions is typically used to describe the time to perform the service? A) binomial B) normal C) Poisson D) negative exponential E) lognormal

In the basic queuing model (M/M/1), what probability distribution describes arrival rates? A) continuous B) normal C) negative exponential D) Poisson E) lognormal

Intangible costs include which of the following? A) quality of prospective employees B) quality of education C) availability of public transportation D) all of the above E) none of the above

Net present value will be greater: A) as a fixed set of cash receipts occurs later rather than earlier. B) if the future value of a cash flow is smaller. C) for one end-of-year receipt of $1200 than for twelve monthly receipts of $100 each. D) for a 4% discount rate than for a 6% discount rate. E) All of the above are true.

Service blueprinting: A) provides the basis to negotiate prices with suppliers. B) mimics the way people communicate. C) determines the best time for each step in the process. D) focuses on the provider's interaction with the customer. E) uses the schematic of a house to diagram a service process.

Students arrive randomly at the help desk of the computer lab. There is only one service agent, and the time required for inquiry varies from student to student. Arrival rates have been found to follow the Poisson distribution, and the service times follow the negative exponential distribution. The average arrival rate is 12 students per hour, and the average service rate is 20 students per hour. A student has just entered the system. How long is she expected to stay in the system? A) 0.125 minutes B) 0.9 minutes C) 1.5 minutes D) 7.5 minutes E) 0.075 hours

TOC strives to reduce the effect of constraints by: A) offloading work from constrained workstations. B) increasing constrained workstation capability. C) changing workstation order to reduce throughput time. D) A and B E) A, B, and C

Ten samples of a process measuring the number of returns per 100 receipts were taken for a local retail store. The number of returns were 10, 9, 11, 7, 3, 12, 8, 4, 6, and 11. Find the standard deviation of the sampling distribution for the p-bar chart. A) There is not enough information to answer the question. B) .081 C) 8.1 D) .0273 E) .0863

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals 90% of design capacity. If the number of students who actually got their orientation session is 1500, what is the efficiency of the system? A) 1350 students B) 1710 students C) 78.9% D) 87.7% E) 90%

The concept of customizing in a warehouse layout: A) is possible, but it causes serious loss of oversight of the quality function. B) cannot be considered seriously in today's high efficiency factories. C) is theoretically sound, but several years away in practice. D) incorporates value-added activities in warehouses. E) locates stock wherever there is an open location.

The fixed-position layout would be MOST appropriate in which of the following settings? A) a fast-food restaurant B) a doctor's office C) a casual dining restaurant D) a cruise ship assembly facility E) a washing machine assembly line

The major problem addressed by the process-oriented layout strategy is: A) the movement of material to the limited storage areas around the site. B) how to design a continuous flow process. C) the provision of low-cost storage with low-cost material handling. D) minimizing difficulties caused by material flow varying with each product. E) balancing product flow from one work station to the next.

Which of the following constitutes a major trend influencing office layouts? A) downsizing B) globalization C) environmental issues D) off-site employees E) health issues

Which of the following costs would be incurred even if no units were produced? A) raw material costs B) direct labor costs C) transportation costs D) building rental costs E) purchasing costs

Which of the following is NOT a common queuing situation? A) grocery shoppers being served by checkout clerks B) commuters slowing or stopping at toll plazas to pay highway tolls C) machinery waiting to be repaired or maintained D) parcel delivery truck following its computer-generated route E) patients in a health clinic waiting to see one of several doctors

Which of the following is NOT an information requirement for solving a load-distance problem to design a process layout? A) a list of departments or work centers B) a projection of work flows between the work centers C) the distance between locations D) a list of product cycle times E) the cost per unit of distance to move loads

Which of the following is TRUE regarding fabrication lines? A) They are the same thing as assembly lines. B) They are the same thing as focused factories. C) They are a special type of process-oriented layout. D) They are usually machine-paced as opposed to worker-paced. E) They require completely different line balancing techniques than do assembly lines

Which of the following is TRUE regarding the average outgoing quality level? A) An AOQ value of 1 is ideal, because all defects have been removed. B) AOQ is always greater than AQL but less than LTPD. C) AOQ rises (worsens) following inspection of failed lots. D) AOQ is very low (very good) for extremely poor quality lots. E) None of the above is true.

Which of the following is TRUE regarding vision systems? A) They are consistently accurate. B) They are modest in cost. C) They do not become bored. D) All of the above are true. E) None of the above is true.

Which of the following is a common heuristic for assembly line balancing? A) first come, first served B) least preceding tasks C) earliest due date first D) ranked positional weight E) most preceding tasks

Which of the following is true of a p-chart? A) The lower control limit is found by subtracting a fraction from the average number of defects. B) The lower control limit indicates the minimum acceptable number of defects. C) The lower control limit equals D3 times p-bar. D) The lower control limit may be at zero. E) The lower control limit is the same as the lot tolerance percent defective.

Which of the following is true regarding the concept of flexibility? A) It is the ability to respond with little penalty in time, cost, or customer value. B) It may be accomplished with digitally controlled equipment. C) It may involve modular or movable equipment. D) All of the above are true. E) None of the above is true.

Which of the following is usually NOT one of the top considerations in choosing a country for a facility location? A) availability of labor and labor productivity B) exchange rates C) attitude of governmental units D) zoning regulations E) location of markets

Which of the following provides automatic placement and withdrawal of parts and products into and from designated places in a warehouse? A) AGV B) CAD/CAM C) CIM D) ASRS E) FMS

Which of the following statements about acceptance sampling is true? A) Acceptance sampling draws a sample from a population of items, tests the sample, accepts the entire population if the sample is good enough, and rejects it if the sample is poor enough. B) The sampling plan contains information about the sample size to be drawn and the critical acceptance or rejection numbers for that sample size. C) The steeper an operating characteristic curve, the better its ability to discriminate between good and bad lots. D) All of the above are true. E) All of the above are false.

Which of the following technologies could enable a cashier to scan the entire contents of a shopping cart in seconds? A) ASRS B) AGV C) CAD/CAM D) RFID E) FMS

Which of the following workers is the most productive? A) $50 wages, 10 parts produced B) $10 wages, 1 part produced C) $30 wages, 5 parts produced D) $100 wages, 21 parts produced E) $500 wages, 100 parts produced

Which one of the following is NOT a characteristic of a Model C or M/D/1 system? A) single server B) single phase C) Poisson arrival rate pattern D) exponential service time pattern E) unlimited population size

Which one of the following technologies is used ONLY for material handling, NOT actual production or assembly? A) robots B) CNC C) CAD D) AGVs E) FMS

Why is Northern Mexico used as a cluster for electronics firms? A) high traffic flows B) venture capitalists located nearby C) natural resources of land and climate D) NAFTA E) high per capita GDP

*A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they will out on merchandise returns. To analyze trends or patterns in these returns, she organized these complaints into a small number of sources or factors. * This is closely related to the ______ tool of TQM. a) scatter diagram b) process control chart c) quality loss function d) cause-and-effect diagram e) histogram

d) cause-and-effect diagram

*Which of the four major categories of quality costs is particularly hard to quantify?* a) prevention costs b) appraisal costs c) internal failure costs d) external failure costs e) none is hard to quantify

d) external failure costs

*Arrivals or inputs to a waiting-line system have characteristics that include:* A) population size. B) population behavior. C) population's statistical distribution. D) A and C E) A, B, and C

*Of the four approaches to capacity expansion, the approach that "straddles" demand:* A) uses incremental expansion. B) uses one-step expansion. C) at some times leads demand, and at other times lags. D) works best when demand is not growing but is stable. E) Choices A and C are both correct.

*Plots of sample ranges indicate that the most recent value is below the lower control limit. What course of action would you recommend?* A) Since there is no obvious pattern in the measurements, variability is in control. B) One value outside the control limits is insufficient to warrant any action. C) Lower than expected dispersion is a desirable condition; there is no reason to investigate. D) The process is out of control; reject the last units produced. E) Variation is not in control; investigate what created this condition.

*Process redesign:* A) is the fundamental rethinking of business processes. B) is sometimes called process reengineering. C) tries to bring about dramatic improvements in performance. D) often focuses on activities that cross functional lines. E) all of the above

*Retail layouts are based on the notion that:* A) handling costs should be minimized. B) storage costs should be minimized. C) average customer visit duration should be maximized. D) space used should be minimized. E) maximizing customer exposure rate maximizes sales and profit

*The ________ layout's main objective is to equalize the task time for each station.* A) work cell B) fixed position C) office D) job shop E) product oriented

*The main goal of retail layout is:* A) minimizing material handling cost. B) minimizing customer confusion regarding location of items. C) minimizing storage costs. D) minimizing space required. E) maximizing profitability per square foot of floor space.

*The process capability measures Cp and Cpk differ because:* A) only one ensures the process mean is centered within the limits. B) Cp values above 1 indicate a capable process, while Cpk values above 2 indicate a capable process. C) They do not differ: both are identical. D) Cp values for a given process will always be greater than or equal to Cpk values. E) Both A and D are correct.

*The statistical definition of Six Sigma allows for 3.4 defects per million. This is achieved by what Cpk index value?* A) 6 B) 1 C) 1.33 D) 1.67 E) 2

*What is the statistical process chart used to control the number of defects per unit of output?* A) x-bar chart B) R-chart C) p-chart D) AOQ chart E) c-chart

*What layout strategy deals with low-volume, high-variety production?* A) fixed-position layout B) retail layout C) warehouse layout D) office layout E) process-oriented layout

*Which of the following industries is most likely to have low equipment utilization?* A) auto manufacturing B) commercial baking C) television manufacturing D) steel manufacturing E) restaurants

*Which of the following is NOT a measure of a queue's performance?* A) average time spent in the queue B) average queue length C) probability that the service facility will be idle D) utilization factor for the system E) All of the above are performance measures.

*Which of the following is NOT a retail layout practice?* A) Locate the high-draw items around the periphery of the store. B) Distribute power items throughout the store. C) Use end-aisle locations to maximize product exposure. D) Use prominent locations for high-impulse and high-margin items. E) All of the above are retail layout practices

*Which of the following is NOT an assumption of the M/M/1 model?* A) The first customers to arrive are the first customers served. B) Each arrival comes independently of the arrival immediately before and after that arrival. C) The population from which the arrivals come is very large or infinite in size. D) Customers do not renege. E) Service times occur according to a normal probability distribution.

*Which of the following is a measure of queue performance?* A) utilization factor for the system B) average queue length C) probability of a specific number of customers in the system D) average waiting time in the line E) all of the above

*Which of the following is not one of the four principles of bottleneck management?* A) Release work orders to the system at the bottleneck's capacity pace. B) Lost time at the bottleneck is lost system capacity. C) Increasing capacity at non-bottleneck stations is a mirage. D) Increased bottleneck capacity is increased system capacity. E) Bottlenecks should be moved to the end of the system process.

*Which of the following represents a customer that reneged due to the waiting line?* A) A husband and wife decide to eat out instead after seeing the movie ticket line. B) A car drives past the first fast-food restaurant on Hamburger Row because the drive-through was full. C) A Black Friday shopper skipped one store because the line went around the building. D) A student ordered pizza online because the phone line was busy. E) A customer at a gas station went inside to buy a soda, but after waiting in line for a minute left the soda behind and went outside empty-handed.

*Which of the following techniques is NOT a technique for dealing with a bottleneck?* A) Schedule throughput to match the capacity of the bottleneck. B) Increase the capacity of the constraint. C) Have cross-trained employees available to keep the constraint at full operation. D) Develop alternate routings. E) All are techniques for dealing with bottlenecks.

*Which of these factors would be considered when making a location decision at the region/community level?* A) government rules, attitudes, stability, incentives B) cultural and economic issues C) zoning restrictions D) environmental impact issues E) proximity to raw materials and customers

A Cp value of 1.33 indicates a standard of how many standard deviations (sigmas)? A) 6 B) 1.33 C) 2 D) 3 E) 4

A good layout requires determining: A) material handling equipment. B) capacity and space requirements. C) environment and aesthetics. D) cost of moving between various work areas. E) all of the above

A process that is assumed to be in control with limits of 89 ± 2 had sample averages for the x-bar chart of the following: 87.1, 87, 87.2, 89, 90, 88.5, 89.5, and 88. Is the process in control? A) Yes. B) No, one or more averages exceeded the limits. C) Not enough information to tell. D) No, there is a distinguishable trend. E) No, two or more consecutive points are very near the lower (or upper) limit.

A quasi-custom product: A) gets its apparent customization from the combinations available from a small number of modules. B) is often the output of repetitive focus facilities. C) is a valid description of a fast food sandwich. D) only applies in services. E) All but D are true.

A queuing model that follows the M/M/1 assumptions has λ = 3 and μ = 2. What is the average number of units in the system? A) -3 B) 3 C) 0.667 D) 150 percent E) Growing without limit, since λ is larger than μ.

Acceptance sampling: A) may involve inspectors taking random samples (or batches) of finished products and measuring them against predetermined standards. B) may involve inspectors taking random samples (or batches) of incoming raw materials and measuring them against predetermined standards. C) is more economical than 100% inspection. D) may be either of a variable or attribute type, although attribute inspection is more common in the business environment. E) All of the above are true

An x-bar control chart was examined and no data points fell outside of the limits. Can this process be considered in control? A) Not yet, there could be a pattern to the points. B) Not yet, the R-chart must be checked. C) Not yet, the number of samples must be known. D) Yes. E) Both A and B

As described in the book Aerotropolis, nowadays location decisions worldwide are often being based on what? A) rivers B) rail hubs C) interstate highways D) ports E) airports

Balancing low-cost storage with low-cost material handling is important in which of the following? A) fixed-position layout B) process-oriented layout C) office layout D) repetitive and product-oriented layout E) warehouse layout

Break-even is the number of units at which: A) total revenue equals price times quantity. B) total revenue equals total variable cost. C) total revenue equals total fixed cost. D) total profit equals total cost. E) total revenue equals total cost.

Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods? A) transportation method B) locational cost-volume analysis C) center-of-gravity method D) simulation E) factor-rating method

FedEx chose Memphis, Tennessee, as its U.S. hub because: A) the city is in the center of the United States, geographically. B) the airport has relatively few hours of bad weather closures. C) it needed a means to reach cities to which it did not have direct flights. D) the firm believed that a hub system was superior to traditional city-to-city flight scheduling. E) All of the above are true.

High fixed costs and low variable costs are typical of which approach? A) product B) process C) mass customization D) repetitive E) A and C

If a layout problem is solved by use of heuristics, this means that: A) there is no other way to solve the problem. B) no computer software is available. C) the problem has only a few alternatives to evaluate. D) no optimum solution exists. E) a satisfactory, but not necessarily optimal, solution is acceptable

In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except: A) automation. B) standardization. C) tight quality control. D) removing some services. E) customization.

Location analysis techniques typically employed by service organizations include: A) the factor rating method. B) the center-of-gravity method. C) purchasing power analysis of area. D) traffic counts. E) all of the above.

Net present value: A) is gross domestic product less depreciation. B) is sales volume less sales and excise taxes. C) is profit after taxes. D) ignores the time value of money. E) is the discounted value of a series of future cash receipts.

On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which: A) fixed costs are equal for two alternative locations. B) variable costs are equal for two alternative locations. C) total costs are equal for all alternative locations. D) fixed costs equal variable costs for one location. E) total costs are equal for two alternative locations.

Slotting fees: A) are charged by retailers to stock a product. B) can amount to as much as $25,000. C) are not a part of Walmart's business practices. D) can reduce the ability of small businesses to introduce new products. E) all of the above

Students arrive randomly at the help desk of the computer lab. There is only one service agent, and the time required for inquiry varies from student to student. Arrival rates have been found to follow the Poisson distribution, and the service times follow the negative exponential distribution. The average arrival rate is 12 students per hour, and the average service rate is 20 students per hour. What is the utilization factor? A) 20% B) 30% C) 40% D) 50% E) 60%

Study of waiting-line models helps operations managers better understand: A) service systems such as bank teller stations. B) maintenance activities that might repair broken machinery. C) shop-floor control activities. D) service systems such as amusement park rides. E) all of the above

The central problem in product-oriented layout planning is: A) minimizing material handling within workstations. B) minimizing labor movement between workstations. C) equalizing the space allocated to the different workstations. D) maximizing equipment utilization. E) minimizing the imbalance in the workloads among workstations.

The disadvantages of process-oriented layout come from: A) the use of special purpose equipment. B) machine maintenance, which tends to seriously degrade the capacity of the entire system. C) the use of specialized material handling equipment. D) the need for stable demand. E) the flexibility of general-purpose equipment.

The theory of constraints has its origins in: A) linear programming theory. B) the theory of economies of scale. C) material requirements planning. D) the theory of finite capacity planning. E) Goldratt and Cox's book, The Goal: A Process of Ongoing Improvement.

Value-stream mapping: A) is a variation of time-function mapping. B) examines the supply chain to determine where value is added. C) extends time function mapping back to the supplier. D) starts with the customer and works backwards. E) All of the above are true

What have restaurants such as Steakhouses and Stacked Restaurants replaced their traditional paper menus with? A) spoken descriptions B) singing descriptions C) menus painted on the walls D) index cards containing a picture of each item E) iPad menus

What is a common method used to increase capacity with a lag strategy? A) overtime B) subcontracting C) new facilities D) new machinery E) A and B

When a lot has been accepted by acceptance sampling, we know that: A) it has more defects than existed before the sampling. B) it has had all its defects removed by 100% inspection. C) it will have the same defect percentage as the LTPD. D) it has no defects present. E) All of the above are false.

When making a location decision at the country level, which of these would be considered? A) corporate desires B) land/construction costs C) air, rail, highway, waterway systems D) zoning restrictions E) location of markets

Which of the following companies use a mass customization approach? A) Dell B) Align Technology C) Frito-Lay D) Arnold Palmer hospital E) A and B

Which of the following is NOT one of the predictive variables chosen by the profitability regression model used by La Quinta Inns? A) the price of the inn B) median income levels C) the state population per inn D) the location of nearby colleges E) the number of inns in a region

Which of the following is TRUE of random stocking? A) Because items are stocked randomly, accurate inventory records are not necessary. B) Its results always minimize handling costs. C) Products have their own permanent storage spot. D) Each pick can be of only one product. E) None of the above is true.

Which of the following is a disadvantage of product-oriented layout? A) There is a lack of flexibility necessary for handling a variety of products. B) High volume is required because of the large investment needed to establish the process. C) Work stoppage at any one point can tie up the whole operation. D) There is a lack of flexibility necessary for handling a variety of production rates. E) All of the above are disadvantages of product-oriented layouts.

Which of the following is among the eight determinants of revenue and volume for a service firm? A) uniqueness of the firm's and the competitors' locations B) quality of the competition C) quality of management D) purchasing power of the customer-drawing area E) shipment cost of finished goods

Which of the following is one of the main advantages of a product-oriented layout? A) high customer exposure rates B) employability of highly skilled labor C) high flexibility D) low capital cost E) low variable cost per unit

Which of the following reduces product handling, inventory, and facility costs, but requires both (1) tight scheduling and (2) accurate inbound product information? A) phantom-docking B) random stocking C) ASRS D) customizing E) cross-docking

Which of the following statements regarding "proximity" in the location decision is FALSE? A) Service organizations find that proximity to market is the most critical primary location factor. B) Manufacturers want to be near customers when their product is bulky, heavy, or fragile. C) Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer. D) Reduction in bulk is a good reason for a manufacturer to locate near the supplier. E) Clustering among fast food chains occurs because they need to be near their labor supply.

Which one of the following is NOT a characteristic of a Model A or M/M/1 system? A) exponential service time pattern B) single number of servers C) single number of phases D) Poisson arrival rate pattern E) limited population size

Which of the following is NOT one of the major categories of costs associated with quality? a) appraisal costs b) internal failure costs c) external failure costs d) prevention costs e) None of the above; they are all major categories of costs associated with quality

e) None of the above; they are all major categories of costs associated with quality

A quality loss function includes all of the following costs EXCEPT: a) costs to society b) the cost of customer dissatisfaction. c) the cost of scrap and repair. d) inspection, warranty, and service costs. e) sales costs

e) sales costs

*Location analysis techniques typically employed by organizations include:* a. Factor rating method b. Center-of-gravity method c. Purchasing power analysis of area d. Traffic counts e. All of the above

e. All of the above

*The layout strategy that deals with low-volume, high-variety production is* a. fixed-position layout b. retail layout c. warehouse layout d. office layout e. none of the above

e. none of the above Correct Answer: Process oriented

*addresses the layout requirements of large bulky projects such as ships and buildings and highways*

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