MGT 352 exam 3
Which of the following is not a tangible benefit of information systems
Improved resource control
Which of the following tools would you use to control risk factors in an information systems project
Internal integration tools, external integration tools, formal planning and control tools (all of the above)
The central method used in a portfolio analysis is to
Inventory all of the organization's information systems projects and assets
The three independent demand models are:
1. Basic economic order quantity (EOQ) model 2. Production order quantity model 3. Quantity discount model
Steps to solve for Q*
1. Develop an expression for setup or ordering cost 2. Develop an expression for holding cost 3. Set setup (order) cost equal to holding cost 4. Solve the equation for the optimal order quantity
Cycle counting has the following advantages:
1. Eliminates the shutdown and interruption of production necessary for annual physical inventory 2. Eliminates annual inventory adjustments 3. Trained personnel audit the accuracy of inventory 4. Allows the cause of the errors to be identified and remedial action to be taken 5. Maintains accurate inventory records
Applicable techniques for inventory accuracy and control include the following:
1. Good personnel selection, training, and discipline 2. Tight control of incoming shipments 3. Effective control of all goods leaving the facility
Firms maintain 4 types of inventories:
1. Raw materials 2. Work in process inventory 3. Maintenance/ repair / operating inventory (MROS) 4. Finished goods inventory
The four functions of inventory are:
1. To provide a selection of goods for anticipated customer demand and to separate the firm from fluctuation in that demand (typically in retail) 2. To decouple various parts of the production process 3. To take advantage of quantity discounts 4. To hedge against inflation and upward price changes
Major retailers lose _______ to ______ percent of overall profits due to poor or inaccurate inventory records
10% to 25%
On average, private sector IT projects underestimated budget and delivery time of systems by ___ percent
50
A restaurant that features special lunchtime combo meals is providing all but one of the following benefits? a. Promotes off-peak demand b. Increases customer satisfaction c. Decreases service times d. Segment demand
A
The strategy of segmenting demand is feasible only when: a. demand is not from a homogeneous source. b. demand is cyclic and predictable. c. arrivals for service are random. d. making appointments is impossible.
A
When yield management is implemented which one of the following does not result: a. consumer surplus increases b. multiple prices are offered c. capacity is more fully utilized d. market for the service is segmented
A
Which of the following is not a strategy for managing capacity? a. Developing complementary services b. Using part-time employees c. Forecasting demand d. Scheduling shifts
A
Which one of the following is not a strategy to manage demand? a. cross-training employees b. offering price incentives c. developing reservation systems d. partitioning demand
A
________ is not a strategy for reduction of customer-induced variability. a. Adapt to customer skill levels b. Require reservations c. Limit service breadth d. Target customers based on capability
A
Cycle counting:
A continuing reconciliation of inventory with inventory records
Annual inventory holding cost =
Average inventory level * (holding cost per unit per year)
All but one of the following is an example of a yield management application: a. RyerFirst b. SABRE c. HIRO d. Restaurant Catering Software
B
Which of the following strategies is inappropriate for managing capacity and demand? a. Smooth customer demand by offering price incentives. b. Scheduling staff to meet variations in forecasted customer demand. c. Decrease customer participation in the service process. d. Promoting off-peak use of facilities.
C
Which one of the following four steps in "daily workshift scheduling" is out of order? a. Forecast demand. b. Convert to operator requirements. c. Assign operators to shifts. d. Schedule shifts.
C
Which one of the following is not a characteristic of firms using yield management? a. ability to segment their market b. perishable inventory c. variable capacity d. product sold in advance
C
________ is not a strategy for accommodating of customer-induced variability. a. Provide generous staffing b. Cross-train employees c. Reward increased effort d. Do work for customers
C
Describe the elements of a management structure for information systems projects in a large corporation.
Corporate strategic planning group: The higher level group of managers responsible for developing the firm's strategic plan. Information systems steering committee: A senior management group with responsibility for systems development and operation. Project management: A group of information systems managers and end-user managers responsible for overseeing several specific information systems projects. Project team: The group directly responsible for the individual systems project, consisting of systems analysts, specialists from the relevant end-user business areas, application programmers, and perhaps database specialists.
Bars that offer happy hours in the afternoon are using the strategy of: a. creating adjustable capacity. b. developing complementary services. c. increasing customer participation. d. promoting off-peak demand.
D
Faced with variable demand and a perishable capacity, a service manager can smooth demand by: a. using part-time help during peak hours. b. scheduling workshifts to vary workforce needs according to demand. c. increasing the customer self-service content of the service. d. using reservations and appointments.
D
In using the critical fractile criterion P(d<x) = Cu/(Cu + Co) for overbooking, the 'd' refers to: a. cost of overestimating demand. b. cost of underestimating demand. c. number of rooms overbooked. d. number of no-shows based on past experience.
D
Several approaches to demand management exist, but only _______ seeks to maximize revenue. a. promoting off-peak demand b. reservation systems c. offering price incentives d. yield management
D
_________ variability is not one of the five sources of customer-induced variability. a. Arrival b. Capability c. Effort d. Demand
D
N = Expected number of orders, how is this calculated?
Demand / Order quantity D / Q*
1. The use of a ski-resort hotel for business conventions during the summer is an example of using the complementary service strategy.
FALSE
11. Time perishability of service capacity is a challenge for service managers because customers demand immediate service.
FALSE
14. An example of segmenting demand is seen when movie theaters offer matinee prices before 6:00 p.m.
FALSE
18. A disadvantage of yield management is that it cannot be implemented in real time.
FALSE
2. Overbooking is a strategy that can be used to smooth demand.
FALSE
20. SABRE is the name for American Airlines' yield management system.
FALSE
22. Level demand and chase capacity are the two generic strategies for capacity management.
FALSE
4. Differential pricing is an attempt to make peak usage periods unattractive by imposing a penalty on the consumer for using the service during peak periods.
FALSE
7. Work shift scheduling attempts to deal with the service utilization problem by controlling the demand for the service and partitioning it so that utilization is uniform.
FALSE
9. When peaks of activity are persistent and predictable such as meal times for restaurants, off-duty personnel can be placed on standby to supplement regular employees.
FALSE
Verfication refers to determining whether the structure of a simulation model is consistent with the real system
FAlse
A shortcoming of simulation is the use of pseudo-random numbers
False
From a TOC perspective, reducing batch sizes at the bottleneck process helps to increase throughput: a. True b. False
False
pseudo-random numbers do not permit an exact replication of experimental conditions
False
ROP with safety stock =
(d*L) + ss
ABC analysis:
A method for dividing on hand inventory into three classifications based on annual dollar volume
A good overbooking strategy should: a. minimize the expected opportunity cost of idle service capacity. b. balance the expected opportunity cost of idle service capacity and expected cost of turning away customers who have reservations. c. minimize the expected cost of turning away reservations. d. none of the above; services should try to avoid overbooking.
B
For a chase demand strategy which of the following does not have a high trade-off? a. Employee utilization b. Labor-skill level c. Labor turnover d. Supervision required
B
________ is not a characteristic appropriate for a yield management strategy. a. Relatively fixed capacity b. Steady demand c. Ability to segment markets d. Products sold in advance
B
As the quantity ordered increases the total number of orders placed per year will____
Decrease
as the quantity ordered increase the annual setup or ordering costs will____
Decrease
Total annual cost =
Setup (order) cost + Holding cost + (Unit Price * Demand)
10. Cross training of employees as a strategy to increase flexibility is feasible only when there exist tasks, the demands for which peak at different times.
TRUE
12. Yield management is a pricing and capacity allocation system that was developed by American Airlines.
TRUE
13. Yield management is a strategy that manages both demand and capacity.
TRUE
16. The critical fractile is a cumulative probability of demand.
TRUE
17. Using part-time personnel at fast-food restaurants allows capacity to vary with demand.
TRUE
21. Service capacity is defined in terms of an achievable level of output per unit time.
TRUE
3. The strategy of segmenting demand to reduce variation makes use of the fact that demand for a service seldom is derived from a homogeneous source.
TRUE
5. Yield management is the process of allocating a fixed perishable resource to several market segments in the most profitable manner.
TRUE
6. The work shift-scheduling problem is important in service organizations that face a cyclic demand for their services.
TRUE
8. A drawback to increased consumer participation is the fact that service quality is no longer completely under the control of the provider of the service.
TRUE
Differentiate between intangible and tangible benefits and list three examples of each. In what types of systems are intangible benefits more predominant?
Tangible benefits can be quantified and given a monetary value. For example, a monetary value can be given to increased productivity, lower operational costs Intangible benefits cannot be immediately quantified but may lead to quantifiable gains in the long run, such as higher sales. Examples of intangible benefits include: improved asset utilization, resource control Systems that produce more intangible benefits are MIS, DSS, and collaborative work systems.
Ordering Cost:
The cost of the ordering process
What steps would you recommend to this company to ensure the user acceptance of the system?
The first step should be to conduct an organizational impact analysis, to determine the changes in procedures, job function, organizational structure, power relationships, and behavior that this system requires
Recorder Point (ROP):
The inventory level (point) at which action is taken to replenish the stocked item
Setup Time:
The time required to prepare a machine or process for production
Which of the following type of projects is most likely to fail?
a business process redesign project that restructures workflow and responsibilities
Waste is anything that does not add value from the consumer's perspective: a. True b. False
a. True
Industrial location analysis typical attempts to: a. reduce cost b. maximize sales c. focus more on human resources d. be environmentally friendly
a. reduce cost
Users prefer systems that
are oriented to facilitating organizational tasks and solving business problems
Single Period Inventory Model:
a system for ordering items that have little or no value at the end of a sales period (perishables)
According to our textbook, which of the following "generic" strategies allow firms to achieve their mission. a. Differentiation, cost and responses b. Differentiation, quality leadership and response c. Differentiation, distractive competency, quality, lead time and delivery d. Distinctive competency, cost and experience Productivity, efficiency and quality leadership
a. Differentiation, cost and responses
Productivity increases when: a. Inputs decreases while outputs remain the same b. Outputs decreases while inputs remain the same c. Inputs increases while out put remain the same d. Inputs and outputs increases proportionately e. Inputs and outputs decrease proportionately
a. Inputs decreases while outputs remain the same
Which type of layout features departments or other functional groupings in which similar activity are performed is? a. Process- oriented b. Product - oriented c. Fixed - position d. Mass production e. Unit production
a. Process-oriented
MRP is the best described as a method of: a. Computing optimal lost sizes b. Determining where to release orders c. Determining the quantity of safety stock needed d. Increasing he accuracy of inventory records e. Maintaining the quality output
b. Determining where to release orders
Forecasts of individual products tend to be more accurate than forecasts of product families: a. True b. False
b. False
The sum of what two variable costs is to be minimized in the economic order quantity problem? a. Stock-out cost and holding (carrying) cost b. Holding (carrying) cost and setup (order processing) cost c. Holding (carrying) cost and capital cost d. Capital cost and setup cost e. None of the above
b. Holding (carrying) cost and setup (order processing) cost
Work-in-process inventory (WIP) is highest in which of the following process strategy: a. Product focus b. Process focus c. Repetitive focus d. Mass customization e. Continuous production
b. Process focus
Which of the following systems is specifically characterized by a focus on continuous improvement, respect for people and standard work practices? a. Just-in-Time (JIT) b. Toyota production System (TPS) c. Lean operations d. Material requirements planning (MRP) e. Kanban
b. Toyota production System (TPS)
The critical path is composed of those activities which have: a. The largest induvial in completion time b. Zero slack time
b. Zero slack time
In using portfolio analysis to determine which IT projects to pursue, you would
balance high-risk, high-reward projects with lower-risk projects
a single-server food cart competes with several nearby food carts and experiences arrival of customers during an 8-hour period as shown:
balking; add another server during peak periods
Which of the following is not an operational management strategy during the growth phase of a product's life cycle? a. Enhanced distribution b. Shift towards product focus c. Achieving optimum capacity d. Forecasting is critical
c. Achieving optimum capacity
Which of the following represents a process-focused strategy (e.g., a job shop)? a. Production facility organized around products b. Classical assembly line c. High variety, low volume production facility d. High volume, high variety production process that caters to the unique needs of e. None of the above
c. High variety, low volume production facility
Aggregate planning is concerned with determining the quantity and timing of production in the: a. Next weekly time bucket b. Short term c. Intermediate term d. Long term e. Very long term
c. Intermediate term
A location decision for a traditional department store (Macy's) would tend to have a(n): a. Cost focus b. Labor focus c. Revenue focus d. Environmental focus
c. Revenue focus
Balanced plants can't meet market demands due to: a. Statistical fluctuations b. Dependent events c. The combination of statistical fluctuations and dependent events d. The fact that demand is lower than capacity by definition e. None of the these
c. The combination of statistical fluctuations and dependent events
A bill-of-materials is a list of: a. The production schedule for all products b. The operations required to produce an item c. The components or material required to produce an item d. The components, material and process required to produce an item e. The components, material, processes and lead times required to produce an item
c. The components or material required to produce an item
The appropriate level of safety stock is typically determined by:
choosing the level of safety stock that assures a given service level
External integration tools
consist of ways to link the work of the implementation team with users at all organizational levels
Cost of overage Co =
cost per unit - salvage value per unit
To solve for Q*:
cross multiply terms and isolate Q on the left of the equal sign (D/Q)*(S) = (Q/2)*(H) 2DS = (Q^2)(H) Q^2 = (2DS / H) ______________________ Q* = | (2DS) \ | -------- \| (H)
which one of the following is not an essential feature of a queuing system?
customer
In the project network below, activities are designated by capital letters A through G and next to the letter for activity is the activity time. What is the length of the critical path for the project network below? a. 28 b. 30 c. 33 d. 35 e. 40
d. 35
In DBR, the rope is tied from what to what? a. From the shipping buffer to material release. b. From constraint to the shipping buffer. c. From material release points to all control points. d. From the constraints to material release. e. From divergence to assembly points
d. From the constraints to material release
Which of the following Lean tools is used to error proof a work station? a. Kanban b. 5s c. standard work d. Poka-Yoke e. SMED
d. Poka-Yoke
empirical studies have suggested that the distribution of inter-arrival times is:
exponential
Safety Stock (ss):
extra stock to allow for uneven demand; a buffer
balking is the term used to describe the phenomenon of customers leaving a queue that they have joined before service is rendered
false
concealment of the waiting line or at least part of it is a very effective deterrent against reneging
false
the net result of waiting, apart from the boredom and frustration experienced by the consumer and the associated loss of goodwill, is the reduced utilization of capacity of the service
false
the term inter arrival time refers to the time elapsed between initiation of service and its completion
false
Which of the following is not one of the five main variables affecting project success
goals
An example of using internal integration tool would be to
hold frequent project team meetings
The EOQ model with quantity discounts attempts to determine:
how many units should be ordered
The organizational activities working towards the adoption, management, and routinization or new information system are called
implementation
Lead time:
in purchasing systems, the time between placing an order and receiving it; in production systems, the wait, move, queue, setup, and run times for each component produced
according to Maister, one of the following statements is not true of waits
in-process waits feel longer than preprocess waits
Which of the following is a limitation of using a financial approach to evaluate information systems
inability ot asses costs from organizational disruption
One example of an implementation problem is
inadequate user training
Maintenance/ Repair/ Operating Inventory (MROs):
inventories devoted to maintenance repair and operating supplies necessary to keep machinery and processes productive
Cycle counting:
is a process by which inventory records are periodically verified
after selecting a line in a multiple queue system, a customer is ______ when she or he switches to a different line perceive it to be moving faster.
jockeying
which one of the following is not true of multiple queue configurations?
jockeying is eliminating
one advantage of the multiple queue compared to a single queue is that multiple queues:
lead to a perceived shorter wait time
The criteria used for evaluation in a scoring model are usually determined by
lengthy discussions among the decision-making group
which queue configuration permits opportunities for division of labor and service differentiation
multiple queue
the calling population is termed finite when
only a limited number of people may use the facility in any given period
As discussed in the chapter, which of the following is not one of the immediate consequences of inadequate software project management
organizational conflict
You have been hired to implement an enterprise system that will automate much of the billing and accounting work for a statewide HVAC services company. Which of the following would you prepare to describe how the new system will affect a firm's structure and operations
organizational impact analysis
In the production order quantity model Q = total produced as well as
p*t
The central method used in a scoring model is to
perform a weighted comparison of the criteria used to evaluate a system
Which method would you use to develop risk profiles for a firm's information system projects and assets
portfolio analysis
The ___ is directly responsible for the individual systems project for the individual systems project
project team
The ____ consists of systems analysts, specialists from the relevant end-user business areas, application programmers, and perhaps database specialists
project team
which one of the following is not an effective way to manage the psychology of waiting
prominently display time with a large analog clock
Which of the following project management variables indicates how well the project satisfies management objectives
quality
All of the following are intangible benefits of information systems except
reduced workforce
The worth of systems from a financial perspective essentially revolves around the issue of
return on invested capital
In working with ROPMs and options valuation, a call option is a
right to purchase or sell an asset at a later date at a fixed price
Extra units in inventory to help reduce stockouts are called:
safety stock
Cost of shortage or Cs =
sales price per unit - cost per unit
Which method is used to assign weights to various features of a system
scoring model
The objectives of inventory management is to:
strike a balance between inventory investment and customer service
Which of the following statistics from studies on failed projects is not true
the average cost overrun of IT projects is 60%
At the top of the management structure for information systems projects in a large company is
the corporate strategic planning group
Holding Costs:
the cost to keep or carry inventory in stock
the following are all advantages of the single queue system
the customer has the option of selection a particular server of preference
for the exponential distribution we have
the mean equal to its standard deviation
Q* is
the optimal order size
Service level:
the probability that demand will not be greater than supply during lead time. It is the complement of the probability of a stockout
The difference between the basic EOQ model and the production order quantity model is that:
the production order quantity model does not require the assumption of instantaneous delivery
an arrangement of servers in parallel is an insurance against breakdown of the service in case of absenteeism or equipment failure. It, thus, adds to flexibility at the expense of capacity
true
differential pricing policy used by telephone companies is an example of demand smoothing
true
for a multiple channel queuing system with multiple queues, allowing customers to jockey will enhance service utilization
true
for a single channel queuing system with finite queue, the value of 1 may exceed m because some potential customers are forced to balk
true
multiple-queue configuration may deter balking behavior
true
simulation allows time compression, doing in seconds what would others require years of actual observation
true
simulation can be viewed as a laboratory for experimenting with service systems
true
the amount of time a consumer will spend waiting is directly related to the amount of money he is paying for the service. The less the service costs him, the longer he is willing to wait.
true
the term queue configuration refers tot he number of queues, their locations, their spatial requirements, and their effect on consumer behavior
true
Which of the following is not an organizational factor in systems planning and implementation
user interface
Which of the following statements regarding a pull system is TRUE? a. Larger lots are pulled by downstream workstations from upstream workstations. b. Work is pulled to downstream workstations in anticipation of demand. c. Manufacturing cycle times are higher than in a typical push system. d. Problem become apparent more quickly than in a typical push system e. None of the above is a pull system.
d. Problem become apparent more quickly than in a typical push system
Which of the following is not one of the activities of the systems analyst
formulation of capital budgeting models
Robust:
giving satisfactory answers even with substantial variation in parameters
You are working as a project manager for a small IT consulting firm and have been asked to create a plan for reviewing and auditing completed projects in order to gauge their success. What factors will you use to measure the success of a project? What questions would you ask in order to understand why a project succeeded or failed?
include an understanding of the main project variables: scope, time, cost, quality, and risk
when the number of arrivals per unit time follows a Poisson distribution, the most important implication is that:
the time between arrivals is exponentially distributed
Annual holding cost =
(Q/2)(H) (order quantity / 2) * (Holding cost per unit per year)
A health club offering a reduced rate membership for students to workout before 4:00 p.m. on weekdays is: a. promoting off-peak demand. b. partitioning demand. c. using yield management. d. offering price incentives.
A
You have been hired as a consultant to make recommendations for Smarty's, a healthy fast-food chain that is undergoing major expansion and is in need of a supply chain planning system. They are evaluating two commercially available software packages. What systems evaluation model will help them assess and compare the two packages? How does this model work?
A scoring model can be used for selecting projects where many criteria must be considered. It assigns weights to various features of a system and then calculates the weighted totals.
What one of the following is not a characteristic of yield management? a. Capacity is relatively fixed. b. There is one homogeneous customer class. c. The service is considered a perishable inventory. d. Demand fluctuates yet is somewhat predictable.
B
You are using a capital budgeting method to assess the worth of your company's new information system. Which of the following costs would you include in measuring the cash outflow
Both B & C - hardware and software expenditures, and labor expenditures
A cruise ship has available a certain number of rooms in each of 10 categories of appointments ranging from a two-bunk inside cabin to a suite with an outside patio and indoor sitting area. If a passenger requests a sailing date in which the desired cabin is sold out, which of the following actions would be considered the least viable alternative for the cruise line? a. Offer an upgraded cabin at a reduced price. b. Attempt to steer the passenger to an available date. c. Overbook the cabin. d. Offer a downgraded cabin with special privileges such as a $100 certificate for use in the casino.
C
You have been hired as a consultant for a nationwide real estate firm, Cross & Deptford, who are interested in achieving better organization between branches by updating their information systems, but are not sure what will suit their needs. What will you recommend they do in order to determine the most effective IT projects?
Cross & Deptford first should have an information systems plan created to determine what their information requirements are and what systems will support their business goals
Which type of planning tool shows each task as a horizontal bar whose length is proportional to the time required to complete it
Gantt Chart
The ___ reviews and approves plans for systems in all divisions
IS steering committee
To review a project's tasks and their interrelationships, you would use a
PERT chart
Production order quantity model's units Q= H= p= d= t=
Q= number of units per order H= holding cost per unit per year p= daily production rate d= daily demand rate, or usage rate t= length of the production run in days
EOQ model graph
Q| | |\ |\ |\ | | \ | \ | \ | | \ | \ | \ | | \ | \ | \ | | \ | \ | \ |____|_____\|______\|_____\__ Time Q= amount ordered all inventory arrives at one time
15. Expected loss for an overbooking reservation strategy would be calculated by multiplying the loss for each no-show possibility and its probability of occurrence, and then adding the products.
TRUE
19. Some restaurants use tables and chairs instead of booths to create more flexible capacity.
TRUE
Annual setup cost =
(D/Q)(S) (annual demand / number of units in each order) * (setup or order cost per order)
The purpose of differential pricing is to: a. make peak period usage unattractive. b. make off-peak usage attractive. c. charge customers according to their ability to pay. d. adjust capacity to demand.
B
Which one of the following is not an example of the differential pricing policy? a. weekend and night rates for long-distance telephone calls b. difference in hospital fees for walk-in and scheduled services c. peak-load pricing by utility companies d. none of the above
B
which one of the following is not an advantage of a multiple-queue configuration?
FCFS rule is guaranteed
Shrinkage
Retail inventory that is unaccounted for between receipt and sale
Compare the two projects in terms of risk factors.
The main risk factors are size, structure, and technical expertise. •Size. The time-tracking project is a larger project: It involves creating new programming that may interface with back-end systems and will immediately influence payment and cost. •Structure. It may be easier to define the requirements of the time-tracking software, as this process is relatively straightforward. •Technical expertise. Since the time-tracking project is a new application, there may be some issues of making sure any in-house staff has the appropriate level of expertise. The user interface involves working with existing programming that will not change.
Which of the following projects is the riskiest
a project that managers are concerned will affect their roles and job descriptions
Quantity Discount:
a reduced price for items purchased in large quantities
Economic order quantity (EOQ) model:
an inventory control technique that minimizes the total of ordering and holding costs
the FCFS rule is most often used because
analytical models depend upon its use
Which of the following is NOT a capacity option of aggregate planning? a. Subcontracting b. Back ordering during high demand periods c. Changing inventory levels d. Varying production rates through overtime or idle time
b. Back ordering during high demand periods
Which of the following best differentiates material requirements planning (MRP) from Drum-buffer-rope system? a. DBR recognize the finite nature of capacity while the MRP does not. b. DBR works in services while MRP does not. c. DBR attempts to maximize the efficiency of all resources while MRP does not. d. DBR is an input into tradition MRP systems.
b. DBR works in services while MRP does not.
Which of the following statement is true about the Kanban system of JIT (Just in time)? a. The quantities in Kanban containers are usually large to reduce setup cost b. It is useful to smooth operations when numerous quality problems occur c. The supplier workstation signals the customer workstation as soon as batch is completed d. The customer workstation signals to the supplier workstation when production is needed e. Kanban quantities are usually on-half the economic order quantity
d. The customer workstation signals to the supplier workstation when production is needed
all but one of the following are techniques to lessen the boredom of waiting customers
displaying time with a large analog clock
A successful TQM program incorporates all of the following except: a. Continuous improvement b. Employee involvement c. Benchmarking d. Centralized decision- making authority e. Non of the above, a successful TQO program incorporates all of the above
e. None of the above, a successful TQM program incorporates all of the above
Formal planning and control tools
enable a project manager to properly document and monitor project plans
Internal integration tools
enable a project to have sufficient technical support for project management and development
As the ordering quantity increase the holding cost will ______
increase
A road map indicating the direction of systems development, the rationale, the current systems, new development to consider, the management strategy, the implementation plan, and the budget is called a
information systems plan
ROPMs value information systems similar to stock options, in that
initial expenditures on IT projects are seen as creating the right to pursue and obtain benefits from the system at a later date
supermarkets can be described by which one of the following facility arrangements?
self-serve followed by service in parallel
In sociotechnical design
separate sets of technical and social design solutions are developed and compared
According to your reading of the chapter, change management is a process that
should be addressed before a project is developed
To best evaluate, form a financial standpoint, an IT investment whose benefit cannot be firmly established in advance, you would use
the real option pricing model
Using the EOQ model, the optimal order quantity will occur at a point where ________
the total setup cost is equal to the holding cost
when is not true of pseudo-random numbers?
they are stored in a computer file
Setup Costs:
The cost to prepare a machine or process for production (includes time and labor to clean and change tools or holders)
Pilferage
a small amount of theft 1% is considered good
probabilistic models:
a statistic model applicable when product demand or any other variable is not know but can be specified by means of a probability distribution
Given the following bill-of-materials: If the demand for product A is 30 units and there are 20 units of C, what will be the gross requirement for component D? a. 340 b. 210 c. 350 d. 390
a. 340
A system that triggers ordering at set time intervals is called: a. A fixed order period system b. EOQ c. A fixed order quantity system d. An MRP system
a. A fixed order period system
A process is said to be in control when: a. All assignable or special causes of variation have been removed b. All natural or common causes of variation have been removed
a. All assignable or special causes of variation have been removed
Costs of dissatisfaction, repair cost and warranty costs are elements of cost in the: a. Quality Loss Function b. Pareto Chart c. SIO 9000 Quality Cost Calculator d. Process Chart
b. Pareto Chart
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 $0.30 per unit. If 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 under 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 B (Methods of evaluating location alternatives, easy) {AACSB: Analytic Skills}
b. Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units
The FIVE focusing steps include: a. Define the constraint, determine why it is a constraint and implement inertia. b. Exploit the constraint, subordinate the constraint and evaluate the constraint. c. Identify the constraint, evaluate the constraint and don't let inertia become a constraint. d. Subordinate the rest of the system to the decision made above and elevate the constraint e. None of the above
c. Identify the constraint, evaluate the constraint and don't let inertia become constraint.
The Dulac Box plant produces 500 cypress packing boxes in two10- hour shifts. Due to higher demands, they have decided to operate three 8- hour shifts instead. They are now able to to produce 600 boxes per day. What has happened to productivity? a. It has not changed b. It has increased by 36.5 boxes per hour c. It has increased by 20% d. It as decreased by 8.3%
c. It has increased by 20%
The number of late insurance claims payouts per 100 payouts should be measured with: a. x-bar chart b. R- chart c. p-chart d. c-chart e. Either a, p or c chart
c. P-chart
In level scheduling, what is kept uniform form month to month? a. Product mix b. Inventory levels c. Production/ workforce levels d. Demand levels
c. Production/workforce levels
The central problem in product oriented layout planning is minimizing: a. Material handling within workstations. b. Labor movement between workstations. c. The space between workstations. d. The imbalance in the sum of activity times among workstations. e. Cross-training requirements.
d. The imbalance in the sum of activity times among workstations
"Yield management" is best described as: a. a situation where management yields to labor demands b. a situation where the labor union yields to management demands c. a process designed to increase the rate of output d. capacity allocation to different classes of customer in order to maximize production e. management's selection of product mix yielding maximum profits
e. management's selection of product mix yielding maximum profits
spatial distribution of demand is important to consider in which one of the following services?
emergency ambulance services
An example of using an external integration tool would be to
include user representatives as active members of the project team
Which of the following is not a responsibility of effective change management
integrating legacy systems
The principal capital budgeting models for evaluating information technology projects are the payback method, the accounting rate of return on investment, the net present value and the
internal rate of return
The project risk will rise if the project team and the IS staff lack
the required technical expertise
What is the purpose of using a real options pricing model to estimate the potential value of an information systems project?
to evaluate information technology investments. Real options pricing models (ROPMs) value information systems projects similar to stock options, where an initial expenditure on technology creates the right, but not the obligation, to obtain the benefits associated with further development and deployment of the technology as long as management has the freedom to cancel, restart, or change the project.
The two most important inventory based questions answered by the typical inventory model are:
when to place an order and how much of an item to order
List five types of information that should be included in an information systems plan.
•Purpose of the plan •Business rationale •Current systems or situation •New developments to consider •Management strategy •Implementation plan •Budget
A medical clinic has two doctors and each can treat 25 patients a day. The doctors see walk-in patients whose arrival times cannot be controlled, and also patients who have made appointments. Knowing the expected number of walk-ins per day, appointments are scheduled to utilize the doctors fully. The following table gives the expected number of walk-ins for a particular week: Day: Mon. Tue. Wed. Th. Fri. Expected Walk-ins: 45 35 40 45 40 What is the total number of appointments that can be scheduled during this week? a. 30 b. 35 c. 40 d. 45
D
Describe the process of portfolio analysis. In what situations is this evaluation method useful?
Portfolio analysis inventories all of the organization's information systems projects and assets, including infrastructure, outsourcing contracts, and licenses. You would use the portfolio analysis to determine which potential projects should be pursued and which should be modified or abandoned. Low-risk, high-benefit projects would be at the top of the list.
The most important aspect of an operation strategy is that it: a. Be consistent with the either functional area strategies and the SDU strategy b. Be focused on minimizing costs c. Demonstrate clearly how the company plans to achieve high quality d. Address time-based petition, the most important factor in today's environment
a. Be consistent with the either functional area strategies and the SDU strategy
The two general approaches to forecasting are: a. Qualitative and quantitative b. Mathematical and statistical c. Judgmental and qualitative d. Historical and associative
a. Qualitative and quantitative
To calculate upper and lower control limits for an x-bar chart, one must know the process central line: 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
a.. average of the sample means
You have been hired by a pharmacy company to evaluate its inventory of systems and IT projects. Which type of projects would bestt be avoided
all high-risk, low-benefit projects
Production Order Quantity Model:
an economic order quantity technique applied to production orders
Annual Dollar volume:
annual demand of each inventory item * cost per unit
ABC analysis divides on hand inventory into three classes based on:
annual dollar values
Optimal order quantity is found when:
annual set up cost equals annual holding cost or (D/Q)*(S) = (Q/2)*(H)
The Center of Gravity technique is used to...? a. Calculate average production forecast for the future b. Identify a centralized location for distribution to multiple production c. Design where the wings go on the airplane
b. Identify a centralized location for distribution to multiple production
In a PERT/CPM network, non critical activities that have little slack need to be monitored closely because: a. PERT treats all activates as equally important b. Near-critical paths could become critical paths with small delays in these activities c. Slack is undesirable and need to be eliminated d. They are causing the entire project to be delayed e. They have a high risk of not being completed
b. Near-critical paths could become critical paths with small delays in these activities
Which of the following is true regarding the process capability index Cpk? a. a Cpk index value of 1 is ideal, meaning all units meet specifications. 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 specifications
b. The larger the Cpk, the more units meet specifications.
The Taguchi method increases 3 major concepts. These concepts include all of the following except: a. Quality robustness b. Quality loss function c. Quality training costs d. Target-oriented quality
c. Quality training costs
ROP without safety stock =
demand per day * Lead time for a new order in days d * L also called expected demand during lead time
Employee empowerment means: a. Employees vote on all aspects of their jobs b. Employees are given responsibility for many aspects of their jobs formerly done by others c. Employees are allowed to make decisions concerning how their jobs are done d. B and C e. A, B and C
e. A, B, and C
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 achieve when tasks are actually assigned to stations. d. A and B e. A, B and C.
e. A, B, and C
Which of the following is a fundamental concept in Lean? a. Improve Throughput b. Eliminate waste c. Reduce variability d. A and B are correct e. A, B and C are correct
e. A, B, and C are correct
According to the Theory of Constraints, the three measure primary to the goal of making money are: a. Throughput, inventory and efficiency b. Efficiency, productivity and labor unitization c. Efficiency, productivity and throughput d. Inventory, operating expenses and productivity e. Inventory, throughput and operating expenses
e. Inventory, throughout and operating expenses
All of the following are indications of a failed information systems project except
employees require training to properly use the system
if the number of arrivals in an interval of time follows an exponential distribution, the inter-arrival time is known to follow a Poisson distribution
false
in analytical queuing models, the calling population mainly determines whether the queue will be finite or infinite.
false
the main advantage of the multiple queue configuration is that it guarantees fairness to all by ensuring that a first-come-first-served rule applies to all arrivals
false
waiting is often seen as psychological punishment because the consumer is aware of the opportunity cost of waiting time and the resulting loss of earnings
false
according to Maister's Second Law of Service
first impressions can influence the remainder of the service experience
Which type of tool helps project managers identify bottlenecks in project development
formal planning and control tools
Which of the following statements best describes the effect that project structure has on overall project risk
Projects with relatively undefined goals are more likely to be subjected to users changing requirements and to run a higher risk of not satisfying project goals
Q= Q*= D= S= H=
Q = number of units ordered Q* = optimum number of units per order (EOQ) D = annual demand in units for the inventory item S = setup or ordering cost for each order H = holding or carrying cost per unit per year
The most widely used project management software is
Microsoft project
Expected time between orders = T, how is this calculated?
Number of working days per year / N
