OPMT 303 Final Exam Review

Primary considerations in scheduling high-volume systems involve: (I) coordinating the flow of inputs (II) overcoming the disruptions to planned outputs (III) assigning workers to work centers

= I and II

The advantages of automation include: (I) Reduced output variability (II) Reduced variable costs (III) Machines don't strike of file grievances (IV) Machines are always less expensive than human labor

= I, II, and III

Which of the following is correct?

= Infinite loading is loading work centers irrespective of their capacity

Which type of processing system tends to produce the most product variety?

= Job-Shop

A scheduling rule used for sequencing jobs through 2 work centers is

= Johnson's Rule

The quality control improvement tool which distinguishes between the "important few" & the "trivial many" is _____________

= Pareto analysis

Which of the following is a tactic that helps service capacity management

= Pricing - Promotions -Discounts - Advertising

Which one of the following is not generally a determinant of the reorder point?

= Purchase cost

Which of the following is essential to consider with respect to managing a process to meet demand?

= Strategy - demand forecasts - capacity - random variability

Which of the following is a factor that affects service capacity planning?

= The need to be near customers - The inability to store services - The degree of volatility of demand - The customer's willingness to wait

Which of the following is implied by a "lead time" service level of 95%?

= The probability is 95% that demand during lead time will not exceed the amount on hand at the beginning of lead time

TQM stands for

= Total Quality Management

Which of these items would be most likely to be made with a fixed position layout?

= a Boeing 777 jet aircraft

A product package consists of

= a combination of goods & services - goods if a manufacturing organization - customer relations of a service organization

Aggregate planning requires which of the following information?

= a forecast of expected demand - current levels of inventory - policies regarding employment levels

The output of MRP is

= a schedule of requirements for all parts & end items

A quality circle is ___________

= a voluntary group of employees

Which one of the following is not common to product layouts?

= ability to adjust to changes in demand

Which of the following is not an example of a high-volume system?

= aircraft manufacturing

Which of the following is not a type of operations?

= all the above involve operations - goods production - storage/transportation - entertainment - communication

____________ variation is a variation whose cause can be identified

= assignable

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

= bill-of-materials

The chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the 4 faculty for teaching the basic P/OM course are under 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 Using .95 control limits (5% risk of Type I error), if any, should he conclude is (are) out of control?

= both Prof. B & Prof. D

For the jobs listed below, which processing sequence would result using Johnson's Rule? Processing time (hrs) Job Center 1 Center 2 a 6 11 b 12 8 c 5 9 d 10 7

= c-a-b-d

Aggregate planners attempt to balance

= capacity & demand

The quality control improvement tool that resembles a "fishbone" is _____________

= cause-and-effect diagrams

The process of comparing outputs to previously established standards to determine if corrective action is needed is called

= controlling

Core competencies in organizations generally relate to

= cost - quality - time - flexibility

An operations strategy for inventory management should work towards

= decreasing lot sizes

Offering an "early bird" special at a restaurant to reduce waiting times during peak hours is an example of ____________-

= demand shifting

Which of the following is least likely to be a consideration when scheduling a high-volume system?

= demand variability

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

= determining fixed order quantities

If the output rate is increased but the average unit costs also increase we are experiencing

= diseconomies of scale

The process of control charts is to

= distinguish between random variation & assignable variation in the process

A ___________ is one way of reducing perceived waiting time

= diversion

Which of the following is not a characteristic of service operations?

= easy measurement of productivity

What is it about continuous processes that make them appropriate for products in the maturity phase of their life-cycle?

= efficiency

Effective scheduling cannot

= eliminate the need to train employees

Giving workers responsibility for quality improvements & authority to make changes is known as

= employee empowerment

If no variations in demand or lead time exist, the ROP will equal

= expected usage during lead time

Warranty service, processing of complaints, & costs of litigation are examples of ____________

= external failure costs

In a supermarket, a vendor's restocking the shelves every Monday morning is an example of

= fixed order interval

What is it about job shops that make them appropriate for products in the introductory phase of their life-cycle?

= flexibility

An operations strategy which recognizes high carrying costs & reduces ordering costs will result in

= greatly decreased order quantities

When the output is less than the optimal rate of output, the average unit cost will be

= higher

An alternative strategy to increase the capacity of a service system is

= increasing the processing rate

The two different approaches to load work centers in job-shop scheduling are

= infinite loading & finite loading

In practice, the more commonly used techniques for aggregate planning are

= informal trial-and-error techniques

Lost production time, scrap, & rework are examples of ________

= internal failure costs

Which of the following is not a basic option for altering the availability of capacity in a service environment?

= inventory

One area to which aggregate planning decisions relate is

= inventory levels

An advantage of a U-shaped line is that it

= is more compact - permits better communication among employees - facilitates teamwork among workers - increases flexibility of work assignments

In doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with

= just gallons of paint, without concern for the different colors & sizes

Marketing depends on operations for information regarding _______________

= lead time

A reason for the importance of capability decisions is that capacity

= limits the rate of output possible - affects operating costs - is a major determinant of initial costs - is a long-term commitment of resources

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

= line balancing

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

= master schedule

Which term is most closely associated with the term disaggregation?

= master schedule

A computer-based information system designed to handle ordering scheduling of dependent-demand inventories is

= material requirements planning (MRP)

The process that uses bills of materials, inventory records, & the master schedule in order to determine when orders must be released in order to replenish inventories of parts/raw materials is called

= material requirements planning (MRP)

A risk avoider would want __________ safety stock

= more

An MRP system whose records are updated continuously is referred to as a(n)

= net-change system

Scheduling pertains to

= timing the use of specific resources

In order to use the "level capacity strategy", variations in demand are met by

= using combination of inventories, overtime, part time, & back orders

A major difference between manufacturing & service systems in terms of scheduling is

= variability in arrival & service rates

Why is there waiting in an infinite source queuing systems?

= variability in arrival & service rates

A firm pursuing a strategy based on customization & variety will tend to structure & manage its supply chain to accommodate more ____________ than a firm pursuing a strategy based on low-cost-& high-volume

= variation

In using the "chase strategy" variations in demand could be met by

= varying output during regular time by changing employment levels

A basic question in capacity planning is

= what kind is needed - how much is needed - when is it needed

A productivity increase in one direction that doesn't improve overall productivity of the business isn't

= worthwile

A control chart used to monitor the process mean is the

= x-bar chart

A p-chart would be used to monitor ______________

= the fraction defective

The goal of queuing analysis is to minimize

= the sum of customer waiting costs & capacity costs

In an assembly operation at a furniture factory, 6 employees assembled an average of 450 standard dining chairs per 5-day week. What is the labor productivity of this operation?

15 chairs/worker/day

The chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the 4 faculty for teaching the basic P/OM course are under 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 estimate of the standard deviation of the sampling for an instructor's sample proportion of failures?

= .03

The chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the 4 faculty for teaching the basic P/OM course are under 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 estimate of the mean proportion of failures for these instructors?

= .10

The chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the 4 faculty for teaching the basic P/OM course are under 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 are the .95 (5% risk of Type I error) upper & lower control limits for the p-chart?

= .1588 & .0412

The Chair of Operations Management Department at Quality University wants to construct a p-chart for determining whether the 4 faculty teaching the basic P/OM course are under 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

A single bay car wash with a Poisson arrival rate & an exponential service time has cars arriving an average of 10 minutes apart, & an average service time of 4 minutes. The system utilization is

= .40

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 & carrying costs are .04 cents per pound per day.l Lead time for each order is 3 days, & the pepperoni itself costs $3.00 per pound. What is the economic order quantity for pepperoni?

= 100 pounds

A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, & 15 for period 3. What is the projected on hand inventory at the end of period 2?

= 12

If average demand for an item is 20 units per day, safety stock is 50 units, & lead time is 4 days, the ROP will be

= 130

A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, & 15 for period 3. What quantity is available for commitment to new customers prior to the receipt of the MPS quantity in week 3?

= 14

The manager of a carpet store is trying to determine the best installation crew size. He has tried various crew sizes with the results shown below. Based on productivity, what crew size do you recommend? Crew Size Yards Installed 2 716 4 1298 3 1017 3 1002 4 1278 2 702

= 2

Eva, the owner of Eva's second time around wedding dresses, currently has 5 dresses to be altered, shown in order in which they arrived: Job Processing time (hrs) Due (hrs from now) V 3 5 W 1 1 X 4 9 Y 2 3 Z 5 7 If Eva uses the shortest processing time (SPT) first rule to schedule these jobs, what will be the average job tardiness?

= 2 hours

Eva, the owner of Eva's second time around wedding dresses, currently has 5 dresses to be altered, shown in order in which they arrived: Job Processing time (hrs) Due (hrs from now) V 3 5 W 1 1 X 4 9 Y 2 3 Z 5 7 If Eva uses the earliest due date (EDD) first priority rule to schedule these jobs, what will be the average job tardiness?

= 2.2 hours

Eva, the owner of Eva's second time around wedding dresses, currently has 5 dresses to be altered, shown in order in which they arrived: Job Processing time (hrs) Due (hrs from now) V 3 5 W 1 1 X 4 9 Y 2 3 Z 5 7 If Eva uses the shortest processing time (SPT) firsrt priority rule to schedule these jobs, what will be the average number of jobs in her shop today?

= 2.33 jobs

Which of the following is not a process commonly considered in making products or delivering services?

= subcontracting

A company needs to locate 3 departments (X, Y & Z) in the 3 areas (I, II, 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 & flow matrices: Distances (meters) Flows (loads per week) From/To I II III From/To X Y Z I - 10 20 X - 60 90 II - 10 Y 40 - 160 III - Z 110 140 - What is the distance (in meters) from area III to are I in this new facility?

= 20

A company is designing a product layout for a new product. It plans to use this production line 8 hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product. Task Time(secs) Immediate Predecessor u 30 none v 30 u w 6 u x 12 w y 54 x z 30 v, y If the company desires that output rate equal demand, what is the minimum number of workstations needed?

= 3

Observations 1 2 3 4 5 6 Num of Defects 10 18 13 15 9 12 The number of runs with respect to the sample median is

= 3

A company needs to locate 3 departments (X, Y, & Z) in the 3 areas (i, II, & 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 & flow matrices Distances (meters) Flows (loads per week) From/To I II III From/To X Y Z I - 10 20 X - 60 90 II - 10 Y 40 - 160 III - Z 110 140 - What is the total flow (loads per week) between department Y & department Z?

= 300

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 & carrying costs are .04 cents per pound per day.l Lead time for each order is 3 days, & 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

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 & carrying costs are .04 cents per pound per day.l Lead time for each order is 3 days, & the pepperoni itself costs $3.00 per pound. Is she were to order 80 pounds of pepperoni at a time, what would be the average inventory level?

= 40 pounds

An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, & revenue of $70 per unit. The break-even point volume is

= 500

A company is designing a product layout for a new product. It plans to use this production line 8 hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product Task Time(secs) Immediate Predecessor u 30 none v 30 u w 6 u x 12 w y 54 x z 30 v, y Without regard to demand, what is the minimum possible cycle time (in seconds) for this situation?

= 54

A single channel queuing system has an average service time of 8 minutes & an average time between arrivals of 10 minutes. The arrival rate of

= 6 per hour

A company is designing a product layout for a new product. It plans to use this production line 8 hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product. Task Time(secs) Immediate Predecessor u 30 none v 30 u w 6 u x 12 w y 54 x z 30 v, y If the company desires that output rate equal demand, what is the desired cycle time (in seconds)?

= 60

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 & carrying costs are .04 cents per pound per day.l Lead time for each order is 3 days, & the pepperoni itself costs $3.00 per pound. At what point should she reorder pepperoni?

= 60 pounds remaining

Given the following information, what would efficiency be? Effective capacity = 50 units per day Design capacity = 100 units per day Actual output = 30 units per day

= 60%

Eva, the owner of Eva's second time around wedding dresses, currently has 5 dresses to be altered, shown in order in which they arrived: Job Processing time (hrs) Due (hrs from now) V 3 5 W 1 1 X 4 9 Y 2 3 Z 5 7 If Eva uses the shortest processing time (SPT) first priority rule to schedule these jobs, what will be the average completion time?

= 7 hours

Eva, the owner of Eva's second time around wedding dresses, currently has 5 dresses to be altered, shown in order in which they arrived: Job Processing time (hrs) Due (hrs from now) V 3 5 W 1 1 X 4 9 Y 2 3 Z 5 7 if Eva uses the first come, first served (FCFS) priority rule to schedule these jobs, what will be the average completion time?

= 8 hours

A company is designing a product layout for a new product. It plans to use this production line 8 hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product. Task Time(secs) Immediate Predecessor u 30 none v 30 u w 6 u x 12 w y 54 x z 30 v, y If the company desires that output rate equal demand, what would be the efficiency of this line with the minimum number of workstations?

= 90%

Which of the following is not true about systems approach?

= A systems approach concentrates on efficiency within subsystems

In the A-B-C classification system, items which account for 15% of the total dollar-volume for a majority of the inventory items would be classified as

= C items

The priority rule where jobs are processed according to the smallest ratio of due date to processing time is

= CR

When MRP II systems include feedback, they are known as

= Closed Loop MRP

Unique attributes of firms that give them a competitive edge are called

= Core competencies

Which isn't a cost of quality?

= Extended Service Contracts

Which of the following is true?

= Functional strategies are shaped by corporate strategy

Which of the following is the case where capacity is measured in terms of inputs?

= Hospital - Theater - Restaurant

If a process is performing as it should, it is still possible to obtain observations which are outside of which limits? (I) tolerances (II) control limits (III) process variability

= I and II

Operation X feeds into Operation Y. Operation X has an effective capacity of 55 units per hour. Operation Y has an effective capacity of 50 units per hour. Increasing X's effective capacity to ensure that Y's utilization is maximized would be an example of _____- a constraint

= none of the above - cushioning - overcoming - outsourcing - insourcing

A single phase queuing system is one in which has a single

= operation

Scheduling personnel is an example of an operations management

= operational decision

Modern firms increasingly rely on other firms to supply goods & services instead of doing these tasks themselves. This increased level of _________ is leading to increased emphasis on ________ management

= outsourcing - supply chain

In MRP, the gross requirements of a given componenet part are calculated from

= planned orders of the immediate parent

The responsibilities of the operations manager are

= planning, organizing, staffing, directing & controlling

Seasonal variations are often easier to deal with in capacity planning than random variations because seasonal variations tend to be

= predictable

Quality planning & administration, quality training, & quality control procedures are examples of ___________

= prevention costs

Increasing the service offered to the customer makes it more difficult to compete on the basis of _________

= price

A service organization (for example, a hospital) is likely to use a ___________ layout because of variability in customer processing requirements

= process

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

= product structure tree

Essentially, the output of aggregate planning is the

= production plan

Which of the following quality control sample statistics indicates a quality characteristic that is an attribute?

= proportion

Dealing with the fact that certain aspects of any management situation are more important than others is called

= recognition of priorities

A tool that is not used for quality management is _________

= redesign

The purpose of "cycle counting" is to

= reduce discrepancies between inventory records & actual

The scheduling sequencing rule which always results in the lowest average completion (flow) time is the

= shortest processing time first (SPT) rule

A point which is outside of the lower control limit on an R-chart

= should be investigated because an assignable cause of variation might be present

Product design & choice of location are examples of ____________ decisions

= strategic

A company is designing a product layout for a new product. It plans to use this production line 8 hours a day in order to meet projected demand of 480 units per day. The tasks necessary to product this product Task Time(secs) Immediate Predecessor u 30 none v 30 u w 6 u x 12 w y 54 x z 30 v, y If the company desires that output rate equal demand. What is the last task performed at the second workstation in the balance which uses the minimum number of workstations?

= y

Suppose that you wanted to minimize the mean flow time, minimize work-in-progress inventory, & maximize shop utilization in a job shop. Which priority rule would you use

=SPT

Production systems with customized outputs typically have relatively

skilled workers