MSC 385 Test 2

The quality tool which helps focus on the most important problem areas based on the 80-20 rule is:

Pareto analysis.

The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements is called:

line balancing.

Which of the following is least likely to be included in order costs?

temporary storage of delivered goods

A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load per meter moved. An analyst has prepared the following distances and flow matrices. What will be the inter-departmental transportation cost given the optimal process layout? Distances (meters) From/To I II III I - 10 20 II - 30 III - Flows (loads per week) From/To X Y Z X - 60 90 Y - - 160 X - - -

$2,600

The chair of the operations management department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are in control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results: Instructor: Number of Failures Prof. A: 13 Prof. B: 0 Prof. C: 11 Prof. D: 16 What is the sample proportion of failures (p) for Prof. D?

.16

In an A-B-C system, the typical percentage of the number of items in inventory that is classified as A items is about:

10.

Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. What is the economic order quantity for pepperoni?

100 pounds

If a line is balanced with 85 percent efficiency, the "balance delay" will be:

15 percent.

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: Location, FC (annual), VC (per unit) Atlanta, $80,000, $20 Phoenix, $140,000, $16 At what annual output would the company be indifferent between the two locations?

15,000 units

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times, and quantities on hand: Deluxe Easter Basket BOM, Lead Time, On-Hand Deluxe Easter Basket: 1 week, 10 Dark Chocolate Truffles (2 per): 2 weeks, 30 Carved Chocolate Eggs (4 per): 1 week, 50 Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs. What is the net requirement for dark chocolate truffles to fill this order?

150

A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results: Machine, Measurements #1: 17, 15, 15, 17 #2: 16, 25, 18, 25 #3: 23, 24, 23, 22 What is the sample mean for machine #1?

16

A production line is to be designed for a job with three tasks. The task times are .5 minutes, 1.2 minutes, and .5 minutes. The maximum cycle time in minutes is:

2.2.

A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results: Machine, Measurements #1: 17, 15, 15, 17 #2: 16, 25, 18, 25 #3: 23, 24, 23, 22 What is the estimate of the mean of the sampling distribution for the sample mean?

20

In the basic EOQ model, if annual demand is 50, carrying cost is $2, and ordering cost is $15, EOQ is approximately:

28.

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times, and quantities on hand: Deluxe Easter Basket BOM, Lead Time, On-Hand Deluxe Easter Basket: 1 week, 10 Dark Chocolate Truffles (2 per): 2 weeks, 30 Carved Chocolate Eggs (4 per): 1 week, 50 Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs. How many dark chocolate eggs should be ordered?

310

Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. If she were to order 80 pounds of pepperoni at a time, what would be the length of an order cycle?

4 days

A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows: Location (x, y) A: 7, 2 B: 4, 7 C: 5, 5 D: 6, 2 E: 8, 4 Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units. What is the optimal location for the fabric plant?

5.6, 4.4

The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. What is the economic order quantity for resin?

500 kilograms

Which of the following is not "inventory" for manufacturing firms?

All of these are "inventory"

Which of the following is absolutely necessary for successful implementation and operation of MRP? (I): accurate inventory records (II): master schedules (III): accurate holding and backordering costs (IV): accurate bills of materials

I, II, and IV only

In the basic EOQ model, if annual demand doubles, the effect on the EOQ is:

It increases by about 40 percent.

A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is in control, package weight is normally distributed with a mean of 20 ounces and a standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each: Day Weight (ounces) Monday: 23, 22, 23, 24 Tuesday: 23, 21, 19, 21 Wednesday: 20, 19, 20, 21 Thursday: 18, 19, 20, 19 Friday: 18, 20, 22, 20 If he uses upper and lower control limits of 22 and 18 ounces, on what day(s), if any, does this process appear to be out of control?

Monday

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: Location, FC (annual), VC (per unit) Atlanta, $80,000, $20 Phoenix, $140,000, $16 If annual demand is estimated to be 20,000 units, which location should the company select?

Phoenix

Which of the following is not one of the assumptions of the basic EOQ model?

Quantity discounts are available.

The output of MRP is:

a schedule of planned orders for all parts and end items.

The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:

bill of materials.

ISO 9000 currently stresses _____ of a certified organization.

continual improvement

In which type of processing system would gasoline be produced from crude oil?

continuous

A time-ordered plot of sample statistics is called a(n) ______ chart.

control

The EOQ model is most relevant for which one of the following?

determining fixed order quantities

The purpose of control charts is to:

distinguish between random variation and assignable variation in the process.

When carrying costs are stated as a percentage of unit price, the minimum points on the total cost curves:

do not line up.

Which is not a cost of quality?

extended service contract costs

Cause-and-effect diagrams are sometimes called:

fishbone (Ishikawa) diagrams

Which one of the following most closely describes net requirements for the current period?

gross requirements for current period - projected on-hand inventory for current period

In order for TQM to be successful, it is essential that most of the organization be:

in agreement with the philosophy and its goals.

The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:

inventory records.

A stock or store of goods is called a(n):

inventory.

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: Factor, Wt., A, B, C Labor Cost .4 , 70, 80, 90 Transportation Cost, .2, 80, 80, 60 Market Access, .2, 90, 70, 60 Raw Materials Cost, .1, 50, 70, 90 Utility Cost, .1, 80, 90, 70 If the selection criterion is to be the greatest composite score, management should choose:

location B.

A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results: Machine, Measurements #1: 17, 15, 15, 17 #2: 16, 25, 18, 25 #3: 23, 24, 23, 22 For upper and lower control limits of 23.29 and 16.71, which machine(s), if any, appear(s) to have an out-of-control process mean?

machine #1

A quality analyst wants to construct a control chart for determining whether four machines, all producing the same product, are in control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results: Machine: Total Defectives #1: 23 #2: 15 #3: 29 #4: 13 For upper and lower control limits of .026 and .014, which machine(s), if any, appear(s) to be out-of-control for process proportion of defectives?

machines #3 and #4

The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the:

master schedule.

Average demand for a particular item is 1,200 units per year. It costs $100 to place an order for this item, and it costs $24 to hold one unit of this item in inventory for one year. If the fixed-order-interval model is chosen in this instance, how often (on average) will this item be ordered?

once a month

Which one of the following is not an input in an MRP system?

planned-order schedules

A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n):

product structure tree.

Which of the following is typically the largest of all inventory costs?

purchase cost

A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:

reject both locations.

Job shops tend to be __________ while continuous processes tend to be __________.

small scale and flexible; large-scale and inflexible

The introduction of quantity discounts will cause the optimum order quantity to be:

unchanged or greater.