POM FINAL EXAM
The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio? a) 1.428 b) 1.000 c) 0.700 d) None of these e) 0.411 500 units divided by 350 hours =1.428.
1.428
A simple project listing of five activities, their predecessors, and their respective time estimates are presented below: Activity, Immediate Predecessor, Time in Days. A,None,3 B,A,2 C,A,1 D,B&C, 3 E,D,4 Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)? a) 12 days b) 8 days c) 10 days d) 7 days e) 9 days The critical path is A, B, D, & E. The total time for these activities is 12 days.
12 days
In setting up a Kanban control system you need to determine the number of Kanban card sets needed. If the expected demand during lead time is 50 per hour, the safety stock is 20% of the demand during lead time, the container size is 4. If the lead time to replenish an order is 8 hours, what number of Kanban card sets is needed? 60 120 80 150 90 Using equation 12.1, k = 50 x 8 x 1.20 / 4 = 120
120
For an infinite queuing situation, if the arrival rate for loading trucks is 5 trucks per hour, what is the mean time between arrivals? a) None of these b) 0.2 hours c) 2.5 hours d) 0.1 hours e) 5 hours
.2 hours
You would like to use the fixed-time period inventory model to compute the desired order quantity for a company. You know that vendor lead time is 10 days and the number of days between reviews is 15. Which of the following is the standard deviation of demand over the review and lead time period if the standard deviation of daily demand is 10? 100 40 73 50 25 Using equation 11.13, the standard deviation of demand over the 25 days of time between reviews and lead time is the square root of (25 x 100) = 50.
50
Assuming no safety stock, what is the re-order point (R) given an average daily demand of 50 units, a lead time of 10 days and 625 units on hand? 550 475 715 500 450 See equation 11.5. Fifty (50) times ten (10) equals 500.
500
You have been called in as a consultant to set up a Kanban control system. The first thing you do is to determine the number of Kanban card sets needed. Your research shows that the expected demand during lead time for a particular component is 1,200 per hour. You estimate the safety stock should be set at 5% of the demand during lead time. The tote trays used as containers can hold 2 units of stock and the lead time to replenish an order is 10 hours. Which of the following is the number of Kanban card sets necessary to support this situation? 5,000 7,000 6,300 5,500 6,500 Using equation 12.1: k = 1200 x 10 x 1.05 / 2 = 6,300
6,300
Charlie's Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every four weeks to take orders. Because the orders are shipped directly from Italy, they take three weeks to arrive. Charlie's Pizza uses an average of 150 pounds of pepperoni each week, with a standard deviation of 30 pounds. Charlie's prides itself on offering only the best-quality ingredients and a high level of service, so it wants to ensure a 98 percent probability of not stocking out on pepperoni. Assume that the sales representative just walked in the door and there are currently 500 pounds of pepperoni in the walk-in cooler. How many pounds of pepperoni would you order? (Use Excel's NORMSINV() function to find the z value. Do not round intermediate calculations. Round z value to 2 decimal places and final answer to the nearest whole number.) Amount of pepperoni ordered 714 correct pounds
714 pounds
A bottling plant fills 1,800 bottles every two hours. The lead time is 30 minutes and a container accommodates 80 bottles. The safety stock is 30 percent of expected demand. How many kanban cards are needed? (Round up your answer to the next whole number.) Number of kanban card sets 8 Explanation: D = 1,800 bottles/2 hours = 900/60 minutes = 15 per minute L = 30 minutes S = 0.3 C = 80 bottles k = DL(1 + S) C k = 15 × 30(1 + 0.3) = 7.31 or 8 Kanban card sets 80
8
A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transported seven at a time. A fabrication center produces approximately 14 gauges per hour. It takes approximately three hours for the housing to be replenished. Due to variations in processing times, management has decided to keep 20 percent of the needed inventory as safety stock. How many kanban card sets are needed? (Round up your answer to the next whole number.) Number of kanban card sets 8 correct
8
Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.05 per card, and the cost of printing is $0.15 per card. The company receives $2.15 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Their customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 2,000 and standard deviation 500. (Assume these four are independent.) What is the optimal production quantity for the card? (Use Excel's NORMSINV() function to find the Z-score. Round intermediate calculations to four decimal places. Round your answer to the nearest whole number.) Optimal production quantity 9,322 correct
9,322
A project starts out as which of the following? a) A series of milestones b) A Statement of Work c) A Gantt chart d) A latest-start-time estimate e) Critical Path Method (CPM)
A Statement of Work
A company wants to determine its reorder point (R). Demand is variable and they want to build a safety stock into R. The company wants to have a service probability coverage of 95 percent. If average daily demand is 8, lead time is 3 days, and the standard deviation of usage during lead time is 2, which of the following is the desired value of R? About 24.0 About 27.3 About 17.9 About 19.7 About 31.2
About 27.3
If it takes a supplier two days to deliver an order once it has been placed and the daily demand for three days has been 120, 124, and 125, which of the following is the standard deviation of usage during lead time? About 5.34 About 4.66 About 2.16 About 9.30 About 3.06 The standard deviation (Equation 11.7) of daily demand = Square root of (14/3) = 2.1602. This number squared is 4.6667. The square root of (2 (days) times 4.6667) = the square root of 9.3333 or 3.055.
About 3.06
Which of the following basic types of process structures is one which equipment or work processes are arranged according to the progressive steps by which the product is made? a) Project b) Workcenter c) Manufacturing cell d) Assembly line e) Continuous process
Assembly line
An activity where the parts that go into each unit of a product are periodically removed from inventory and accounted for based on the number of units produced. is called which of the following? Backflush Kanban Group Technology Frozen window Level schedule
Backflush
Which of the following are not listed in the text as jobs in OSCM? a) Call center manager b) Department store manager c) Project manager d) Data Center manager e) Hospital administrator
Data Center Manager
Compared with a service operation, a manufacturing operation's capacity is which of the following? a) More dependent on time and location b) Subject to more volatile demand fluctuations c) More capable of reacting to demand fluctuations d) Utilization more directly impacts quality e) Demand can be smoothed by inventory policies
Demand can be smoothed by inventory policies
What does "EVM" stand for? a) Earned Value Management-a technique for measuring project progress objectively. b) Enterprise Vacation Matrix—A chart indicating team members planned vacation absences c) Early Vision Management—An technique used in early project planning meetings for activities that set expectations to highlight and avoid "scope creep." d) Extra Value Materials—premium quality raw materials at the project site. e) External Variance Measurement—identifying the degree to which project time and cost variances were due to forces and issues uncontrollable by the project manager.
Earned Value Management-a technique for measuring project progress objectively.
Which of the following is not a measure of operations and supply chain management efficiency used by Wall Street? a) Inventory turnover b) Earnings per share c) Revenue per employee d) Receivable turnover e) Asset turnover
Earnings Per Share
The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as: a) Economies of scope b) Economies of scale c) Economies of size d) Economies of shape e) Economies of shipping
Economies of scope
The placement of which of the following is not determined by production process organization decisions? a) Emergency exits b) Departments c) Workgroups d) Workstations e) Machines
Emergency exits
The annual demand for a product is 15,600 units. The weekly demand is 300 units with a standard deviation of 90 units. The cost to place an order is $31.20, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per unit. a. Find the reorder point necessary to provide a 98 percent service probability. (Use Excel's NORMSINV() function to find the z value. Do not round intermediate calculations. Round z value to 2 decimal places and final answer to the nearest whole number.) Reorder point 1,569 correct units b. Suppose the production manager is asked to reduce the safety stock of this item by 50 percent. If she does so, what will the new service probability be? (Use Excel's NORMSDIST() function to find the correct probability for your computed Z-value. Round "z" value to 2 decimal places and final answer to 1 decimal place.) Service probability 84.8 correct %
1569 units 84.8%
Lieutenant Commander Data is planning to make his monthly (every 30 days) trek to Gamma Hydra City to pick up a supply of isolinear chips. The trip will take Data about two days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of five per day (seven days per week) with a standard deviation of demand of one per day. He needs a 98 percent service probability. a. If he currently has 35 chips in inventory, how many should he order? (Use Excel's NORMSINV() function to find the z value. Do not round intermediate calculations. Round z value to 2 decimal places and final answer to the nearest whole number.) Number of chips137 correct b. What is the most he will ever have to order? (Use Excel's NORMSINV() function to find the z value. Do not round intermediate calculations. Round z value to 2 decimal places and final answer to the nearest whole number.) Maximum order quantity 172 correct
172
Ray's Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,000 units. His cost to carry one unit is $100 per year per unit, and he has estimated that each order costs $25 to place. Using the EOQ model, how many should Ray order each time? (Round your answer to the nearest whole number.) Ray should order 22 correct units
22
If annual demand is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year, which of the following is the optimal order quantity using the fixed-order quantity model? 56.03 240 60.56 120.4 576 From equation 11.4, Q = 240 = Square root of (2 x 12,000 x6/2.5)
240
You are developing an "X-bar" chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99.7 percent, and the average of the sample means is 24. Which of the following is your UCL? None of these 36 24 4 12
36
Which of the following is not considered a major work flow structure? a) Fabrication b) Project c) Continuous Flow d) Work Center e) Assembly line
Fabrication
A firm's business practices toward its labor force pertain mainly to the economic aspect of the triple bottom line concept. a) True b) False
False
Efficiency means doing the right things to create the most value for the company. a) True b) False
False
In a partial measure of productivity the denominator of the ratio would include all resources used or all inputs. a) True b) False
False
Infrastructure decisions within operations strategy include the selection of the appropriate technology, the role of inventory, and the location of facilities. a) True b) False
False
Operations and supply chain processes can be conveniently categorized as planning, sourcing, making, and delivering. a) True b) False
False
Service innovations can be patented. a) True b) False
False - only product innovation can be patented
Managing customer touch points becomes a concern under current issues in OCSM when: a) Firms striving to become super efficient begin to scrimp on staffing and training customer support personnel. b) Firms market global products. c) A firm has a workforce trained in specifically diverse situations and the correct level of service may be hard to discern. d) Complaints arise about shaking hands with customers in cultures that is frowned upon. e) Senior executives fail to recognize the contribution OCSM can make to their success.
Firms striving to become super efficient begin to scrimp on staffing and training customer support personnel.
Which of the following is not a step used in determining production capacity requirements? a) Projecting equipment availability b) Projecting availability of labor c) Forecasting to predict product sales d) Forecasting raw material usage e) Calculating equipment and labor needs In determining capacity requirements, we must address the demands for individual product lines, individual plant capabilities, and allocation of production throughout the plant network. Typically this is done according to the following steps: 1. Use forecasting techniques to predict sales for individual products within each product line. 2. Calculate equipment and labor requirements to meet product line forecasts. 3. Project labor and equipment availabilities over the planning horizon.
Forecasting raw material usage
Which of the following statements holds true for Kanban production control systems? They require substantial quantitative analysis prior to implementation The authority to produce or supply additional parts comes from upstream operations The cards or containers make up the Kanban push system In a paperless control system, containers can be used instead of cards They have not been successful outside of Japan and the United States
In a paperless control system, containers can be used instead of cards
Which of the following are elements that address elimination of waste under lean production? Minimized run times Production ahead of demand Full capacity utilization Kanban production control system Group plant loading technology Kanban production control systems are mentioned as a lean supply chain design principle. None of the other terms are associated with lean production which is aimed at reducing waste.
Kanban production control system
When implementing a lean production system, a stabilized schedule is achieved using which of the following? Bottom-round management Reduced lot sizes Demand pull Level scheduling Demand push
Level scheduling
The textbook The Toyota Production System identified which of the following types of waste to be eliminated? Underproduction Excess quality Excess capacity Motion Excess demand
Motion
Buying a ticket for a college football game where there are multiple windows to buy the ticket at features which type of queuing system line structure? Multichannel, multiphase None of these Single channel, single phase Single channel, multiphase Multichannel, single phase
Multichannel, single phase
Which of the following is a partial measure of productivity? a) Output / Inputs b) Output / All resources used c) All of these d) Output / (Labor + Capital + Energy) e) Output / Materials
Output/Materials
The textbook The Toyota Production System identified which of the following types of waste to be eliminated? Over-thinking Environmental Underproduction Overproduction Excess quality
Overproduction
Which of the following is an analytical tool used in six-sigma quality improvement programs? Leadership Continuous improvement Pareto Charts Management by fact Kaizen
Pareto Charts
To implement a flow process in developing a lean system a firm might do which of the following? Implement groupware Eliminate some fixed costs Improve capacity utilization Reduce setup/changeover time Build product in anticipation of demand
Reduce setup/changeover time
Which of the following is the symbol used in the textbook for the cost of placing an order in the fixed-order quantity inventory model? TC S H C Q S = Setup cost or cost of placing an order
S
There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes? Time Task Talent Trust Teamwork
Task
You have just used the capability index (Cpk) formulas to compute the two values "min [1.5, 1]." Which of the following is the interpretation of these numbers? The mean has not shifted at all The true capability index value is 1 The mean of the production process has shifted to the left of the design limits The true capability index value is between 1.5 and 1 The mean of the production process has shifted to the right of the design limits
The mean of the production process has shifted to the right of the design limits
Firms keep supplies of inventory for which of the following reasons? To meet variation in product demand In case the supplier changes the design To hedge against wage increases To maintain dependence of operations To provide a feeling of security for the workforce
To meet variation in product demand
Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a Kanban/lean production approach. What would be your expectations of the difference between the total cost (i.e., inventory holding costs + setup/ordering costs) of each? As long as the total quantity is the same, total costs will be the same Inventory holding cost will increase nonlinearly with inventory The order quantity will be larger for the Kanban/lean production approach Total costs will be lower for the Kanban/lean production operation Total costs will be lower for the regular lot-size operation
Total costs will be lower for the Kanban/lean production operation
An electronics company makes communications devices for military contracts. The company just completed two contracts. The navy contract was for 2,286 devices and took 26 workers three weeks (40 hours per week) to complete. The army contract was for 5,550 devices that were produced by 34 workers in five weeks. a. Calculate the productivity for navy and army contracts in units produced per labor hour. (Round your answers to 2 decimal places.) Contract Productivity Navy 0.73 correct Army 0.82 correct b. On which contract were the workers more productive?
a. Navy .73 Army .82 b. Army contract
Gentle Ben's Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine costs $3 per bottle and is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $10 each time an order is placed, and holding costs are 20 percent of the purchase price. It takes three weeks for an order to arrive. Weekly demand is 100 bottles (closed two weeks per year) with a standard deviation of 30 bottles. Ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability. a. What is the economic quantity for Ben to order? (Round your answer to the nearest whole number.) Economic order quantity 408 correct bottles b. At what inventory level should he place an order? (Use Excel's NORMSINV() function to find the z value. Do not round intermediate calculations. Round z value to 2 decimal places and final answer to the nearest whole number.) Inventory level 385 correct bottles
correct answers shown
You have collected the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the project "direct costs" are given below. The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. If you crash this project by one day what is the total (i.e., direct and indirect) project cost? Picture (Chart, big) $2,400 $2,500 $2,450 $2,300 $2,150 The critical path is ABDEFG. The project duration is 3+3+3+2+3+2=16 days. The normal direct cost is $300+$100+$200+$400+$500+$200+$100 = $1,800. The indirect costs are an additional $400 for a total of $2,200. The only activities that can be crashed are A, D & E. A costs $100/day to crash, D costs $150/day to crash and E costs $400/day to crash. Reducing the duration of A by one day at a additional cost of $100 is the most economical. Direct costs are now $400+$100+$200+$400+$500+$200+$100 = $1,900. Overall duration of the project is 15 days and indirect costs are $250. The total cost of crashing this project for one day is $2,150. A is the correct answer.
$2,150
Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1440 and the required output per day in units is 2000? a) 0.72 b) 250 c) 1.388 d) 500 e) Cannot be determined from the information above Using equation 6.3, 1,440 minutes / 2000 units = 0.72 minutes per unit.
.72
If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity utilization rate? a) 1.00 b) 0.75 c) 1.33 d) 300 e) 2.33 300 units of output divided by 400 units best operating level = 0.75
.75
You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure. The cycle time of the line is 5 minutes and the sum of all that tasks required on the line is 25 minutes. Which of the following is the correct value for the resulting line's efficiency? a) 0.990 b) 0.973 c) None of these d) 0.500 e) 0.833 Using equation 6.5, [25 / (6 x 5)] = 0.833.
.833
You want to determine the lower control line for a "p" chart for quality control purposes. You take several samples of a size of 50 items in your production process. From the samples you determine the fraction defective is 0.006 and the standard deviation is 0.001. If the desired confidence level is 99.7 percent, which of the following is the resulting LCL value for the line? 0.004 0.002 0.0 0.003 None of these
0.003
You want to determine the upper control line for a "p" chart for quality control purposes. You take several samples of a size of 100 items in your production process. From the samples you determine the fraction defective is 0.05 and the standard deviation is 0.01. If the desired confidence level is 99.7 percent, which of the following is the resulting UCL value for the line? None of these 0.39 0.06 0.08 0.05
0.08
A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below: Big Chart ** Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)? a) 13 days b) 10 days c) 12 days d) 9 days e) 11 days There are two paths, ABDFG & ACEFG. ABDFG takes 10 days while ACEFG takes 11 days. ACEFG is the critical path and C) 11 days is the correct answer.
11 days
If annual demand is 35,000 units, the ordering cost is $50 per order, and the holding cost is $0.65 per unit per year, which of the following is the optimal order quantity using the fixed-order quantity model? 2,004 1,866 2,133 5,060 2,320 From equation 11.4, Q = 2,320.5 = Square root of (2 x 35,000 x 50 / 0.65)
2,320
Various financial data for SunPath Manufacturing for 2015 and 2016 follow. 2015 2016 Output: Sales $300,000 $330,000 Inputs: Labor $40,000 $43,000 Raw Materials: $45,000 $51,000 Energy: $10,000 $9,000 Capital Employed: $250,000 $262,000 Other: $2,000 $6,000 What is the percentage change in the labor partial productivity measure for SunPath between 2015 and 2016? a) -9.22 b) 2.88 c) 0.39 d) -0.53 e) 2.33 The labor partial productivity measure for 2015 is $300,000 divided by $40,000 or 7.5. For 2016 it is $330,000 divided by $43,000 or 7.67. The percentage change between 2015 and 2016, then, is (7.67 - 7.5)/7.5 or 0.17 divided by 7.5 = 2.33%.
2.33
If it takes a supplier four days to deliver an order once it has been placed and the standard deviation of daily demand is 10, which of the following is the standard deviation of usage during lead time? 400 10 40 20 100 From equation 11.9, The standard deviation of usage during lead time is equal to the square root of the sums of the variances of the number of days of lead time. Since variance equals standard deviation squared, the standard deviation of usage during lead time is the square root of 4(10x10) = square root of 400 = 20.
20
If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity cushion? a) 75 percent b) 125 percent c) 25 percent d) 100 units per hour e) 133 percent A capacity cushion is an amount of capacity in excess of expected demand
25%
Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4, 6, 7, 2, 6, and 5 minutes, and the cycle time is 10 minutes? a) 3 b) None of these c) 5 d) 8 e) 6 Using equation 6.4, (4 + 6 + 7 + 2 + 6 + 5) / 10 = 3.
3
Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500? 1,000 950 400 500 350
500
Hoosier Manufacturing operates a production shop that is designed to have the lowest unit production cost at an output rate of 125 units per hour. In the month of July, the company operated the production line for a total of 225 hours and produced 24,400 units of output. What was its capacity utilization rate for the month? (Round your answer to 1 decimal place.) Capacity utilization rate 86.8 correct %
86.8%
Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units? a) 480 b) 50 c) Cannot be determined from the information above d) 9.6 e) 0.104 Using equation 6.3, 480 minutes / 50 units = 9.6 minutes per unit.
9.6
You are developing an "X-bar" chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99 percent, and the average of the sample means is 20. Which of the following is your LCL? 30.32 24 16.79 36 9.68
9.68
Some of the advantages of a functional project where the project is housed in a functional division include which of the following? a) A team member can work on several projects b) Needs of the client are secondary c) None of these d) Team pride, motivation, and commitment are high e) The project manager has full authority over the project
A team member can work on several projects
A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 100,600 21,100 Labor (hours) 20,400 15,400 Raw materials (currency) $ 19,900 FC* 20,400 Capital equipment (hours) 61,200 5,410 *Foreign Currency unit a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.) U.S. LDC Labor productivity 4.93 correct 1.37 correct Capital productivity 1.64 correct 3.90 correct b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.) U.S. LDC Multifactor productivity 1.23 correct 1.01 correct c. Calculate raw material productivity figures (units/$ where $1 = FC 10). (Round your answers to 2 decimal places.) U.S. LDC Raw material productivity 5.06 correct 10.34 correct
Answers listed as "correct"
There is a 4 percent defect rate at a specific point in a production process. If an inspector is placed at this point, all the defects can be detected and eliminated. The inspector would cost $10 per hour and could inspect units in the process at the current production rate of 52 per hour. If no inspector is hired and defects are allowed to pass this point, there is a cost of $11 per defective unit to correct the defects later on. Assume that the line will operate at the same rate (i.e., the current production rate) regardless of whether the inspector is hired or not. a. If an inspector is hired, what will be the inspection cost per unit? (Round your answer to 3 decimal places.) Inspection cost per unit $ 0.192 ± 0.005 b. If an inspector is not hired, what will be the defective cost per unit? (Round your answer to 3 decimal places.) Defective cost per unit $ 0.440 ± 0.005 c. Should an inspector be hired based on costs alone? Yes correct Explanation: Defective average = 0.04, inspection rate = 52 per hour, cost of inspector = $10 per hour, and correction cost is $11 each. Calculation Cost per hour Cost per unit No inspection 0.04 × (52) × $11 $ 22.88 $ 0.440 Inspection 10 0.192
Correct answers shown
Some tasks and the order in which they must be performed according to their assembly requirements are shown in the following table. These are to be combined into workstations to create an assembly line. The assembly line operates 9.25 hours per day. The output requirement is 900 units per day. TASK PRECEDING TASKS TIME (SECONDS) TASK PRECEDING TASKS TIME (SECONDS) A — 25 G C 15 B A 10 H D 12 C A 20 I E 14 D B 16 J F, G 10 E B 18 K H, I 9 F C 20 L J, K 8 a. What is the workstation cycle time? b. Balance the line using the longest task time based on the 900-unit forecast, stating which tasks would be done in each workstation. (Leave no cells blank - be certain to enter "0" wherever required.) c. What is the efficiency of your line balance? (Round your answer to 1 decimal place.) d. After production was started, Marketing realized that they understated demand and must increase output to 1,000 units. There are two options: reduce cycle time or work overtime. Please identify the following: (Round your answers to the nearest whole number.) rev: 09_24_2018_QC_CS-140018 Explanation: a. C = production time per day/required output per day = (9.25 hour per day)(3,600 seconds per hour)/900 units per day = 37 seconds per unit b. Work Station Task Task Time Idle Time I A-B 35 2 II C-D 36 1 III F-G 35 2 IV E-I 32 5 V H-J-K 31 6 VI L 8 29 Total task time T = 177 c. Efficiency = T = 177 = 0.797 or 79.7% NaC 6(37) d. Reduce cycle time to 33 ((9.25 × 3,600)/1,000 = 33.3 seconds), which requires rebalancing the line or work overtime: (100 units) 37 seconds per unit = 3,700 seconds or 62 minutes of overtime.
Correct answers shown in explanation
A major competitive dimension that forms a company's strategic operational competitive position in their strategic planning is which of the following? a) Straddling b) Automation c) Focus d) Activity-system mapping e) Cost or price
Cost or price
Which of the following are defined as core goods? a) Hotels b) Data storage systems c) Chemicals d) None of these e) Airlines
Data Storage Systems
A flow chart as part of a six-sigma quality improvement process might be found in which DMAIC category? Control Define Improve Measure Analyze
Define
MRP systems seek to achieve which of the following? Relieve capacity bottlenecks Provide a yardstick for future improvements Determine the number of dependent demand items needed Minimize lot sizes Improve on JIT methods
Determine the number of dependent demand items needed
One of the main purposes of a MRP system is which of the following? Decrease layers of management Upgrade manufacturing's professionalism Create productive capacity Develop schedules specifying when each component should be ordered or produced. Track inventory levels
Develop schedules specifying when each component should be ordered or produced.
You are looking at a chart that has the terms BCWS, BCWP, and AC indicating lines on the chart. What kind of chart are you looking at? a) EVM Chart b) Gantt Chart c) PERT Chart d) Total Program Cost Breakdown e) Bar/Milestone Chart
EVM Chart
Capacity planning that involves hiring, layoffs, some new tooling, minor equipment purchases, and subcontracting is considered as which one of the following planning horizons? a) Intermediate range b) Long range c) Upcoming d) Short range e) Current Intermediate range: monthly or quarterly plans for the next 6 to 18 months. Here, capacity may be varied by such alternatives as hiring, layoffs, new tools, minor equipment purchases, and subcontracting.
Intermediate range
Which of the following is an input file necessary to run an MRP system? Computer-aided-design files Planned order schedule Inventory records file Exception report Personnel files
Inventory records file
Which of the following is not one of the categories of manufacturing inventory? Just-in-time Raw materials Finished products Component parts Supplies
Just-in-time
Which of the following is not a queue discipline discussed in the textbook? Limited needs Last in, first out Shortest processing time Best customer first First come, first served
Last in, first out
Capacity planning involving acquisition or disposal of fixed assets such as buildings, equipment or facilities is considered as which one of the following planning horizons? a) Short-range b) Long-range c) Upcoming d) Current e) Intermediate-range Long range: greater than one year.
Long-range
In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following? Low degree of customer/server contact High production efficiency Low sales opportunity None of these Low production efficiency
Low production efficiency
At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%; the expected benefit of selecting machine B is $80,000 with a probability of 50% and the expected benefit of selecting machine C is $60,000 with a probability of 75%? a) Machine B b) You would be indifferent c between machines A and B c) You would be indifferent between machines A and C d) Machine A e) Machine C EMV of Machine A = 0.9 x 45,000 = 40,500; EMV of Machine B = 0.5 x $80,000 = $40,000; and EMV of Machine C = 0.75 x 60,000 = $45,000. Since $45,000>$40,500>$40,000 you would select Machine C.
Machine C
Standing in line to buy a ticket for a movie where there are multiple windows to buy tickets is which type of queuing system line structure? Multichannel, multiphase Multichannel, single phase Single channel, multiphase None of these Single channel, single phase
Multichannel, single phase
Which of the following is an input to the master production schedule? None of these Planned-order schedules Inventory records file Bill of materials (BOM) file Exception reports
None of these
Which of the following are fixed-time period inventory models? The Q model The EOQ model The least cost method Periodic system model Just-in-time model
Periodic system model
Which of the following is considered a primary report in an MRP system? Planned order schedule Inventory accuracy report Peg report Planning report Aggregate production plan report
Planned order schedule
Which of the following is considered a primary report in an MRP system? Planned order schedules Cycle counting reports Performance reports Planning reports Exception reports
Planned order schedules
The way to build in greater flexibility in your workers is to do which of the following? a) Provide a broader range of training b) Institute a "pay for skills" program c )Pay higher wages to motivate a willingness to do a variety to tasks d) Use part-time employees with specialized skills as needed e) Provide a wide variety of technology to augment workers skills
Provide a broader range of training
The Malcolm Baldrige award selection process helps improve quality and productivity by which of the following means? Reporting quality levels among American firms Identifying American firms with the most difficult quality problems Helping Baldrige award winners increase their sales Providing feedback to applicants by the examiners Stimulating foreign based suppliers of American companies to improve quality
Providing feedback to applicants by the examiners
You have been placed in charge of a large project. Shortened communication lines are required to ensure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management structure should you use in this situation? a) Matrix Project b) PERT c) Task force d) Pure Project e) Functional Project
Pure Project
The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran, had the same general message about what it took to achieve outstanding quality. Which of the following was not part of that message? Total involvement of the workforce Customer focus Leadership from senior management Continuous improvement Quality is free
Quality is free
We would expect to see which of the following in an MRP system's inventory status file? Labor efficiency Scrap parts Computer errors Late/early delivery records End items produced
Scrap parts
Which of the following is a suggestion for managing queues that is mentioned in the textbook? Use humor to defuse a potentially irritating situation Assure customers that the wait is fair and inform them of the queue discipline Put up a serpentine lane to keep people from jumping ahead in line Tell people in the queue that each will be served as soon as possible Segment the customers
Segment the customers
Which of the following is not a way that operations and supply processes are categorized? a) Making b) Delivering c) Selecting d) Planning e) Returning
Selecting
Which of the following is a characteristic that can be used to guide the design of service systems? a) Even service businesses have internal services b) Services businesses are inherently entrepreneurial c) Quality work means quality service d) Services are all similar e) Services cannot be inventoried
Services cannot be inventoried
Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations? a) Upcoming b) Long-range c) Intermediate-range d) Current e) Short-range Short range: less than one month
Short-range
When balancing an assembly line, which of the following is not a way to reduce the longest task time below the required workstation cycle time? a) Upgrade the equipment b) Assign a roaming helper to support the line c) Use a more skilled worker d) Speed up the assembly line transfer mechanism e) Split the task between two workstations
Speed up the assembly line transfer mechanism
When developing inventory cost models, which of the following are not included as costs to place an order? Calculating quantity to order Taxes Postage Clerical Phone calls
Taxes
Using the ABC classification system for inventory, which of the following is a true statement? The "A" items are of low dollar volume The "C" items are of moderate dollar volume The "A" items are of high dollar volume You should allocate about 50% of the dollar volume to "B" items Inexpensive and low usage items are classified as "C" no matter how critical The ABC classification scheme divides inventory items into three groupings: high dollar volume (A), moderate dollar volume (B), and low dollar volume (C).
The "A" items are of high dollar volume
Which of the following is an input to the master production schedule (MPS)? The aggregate plan Inventory records file The bill of materials Planned order schedules The exception report
The aggregate plan
You have just used the capability index (Cpk) formulas to compute the two values "min [2, 2.5]." Which of the following is the proper interpretation of these numbers? The true capability index value is 2.5 The true capability index value is between 2 and 2.5 The mean has not shifted at all The mean of the production process has shifted to the right of the design limits The mean of the production process has shifted to the left of the design limits
The mean of the production process has shifted to the left of the design limits
According to Little's Law, which of the following can be used to estimate work-in-process inventory? a) Set up time/Throughput rate b) Throughput rate times Flow time c) Value added time/Process velocity d) Process time/Cycle time e) Process velocity/Flow time
Throughput rate times Flow time
In a Gantt chart the horizontal axis is usually which of the following? a) Profit b) Activities c) Time d) Cost e) Milestones
Time
In an MRP program, the program accesses the status segment of an inventory record according to specific periods called which of the following? Time lines Time modules Cubed time units BOM units Time buckets
Time buckets
Which of the following is a suggestion for managing queues presented in the textbook? a) Give each customer a number b) Periodically close the service channel to temporarily disperse the line c) Tell customers that the line should encourage them to come during slack periods d) Use humor to defuse a potentially irritating situation e) Train your servers to be friendly
Train your servers to be friendly
Activity-system maps show how a company's strategy is delivered through a set of tailored activities. a) True b) False
True
All managers should understand the basic principles that guide the design of transformation processes. a) True b) False
True
An operations and supply chain strategy must be integrated with the organization's corporate strategy. a) True b) False
True
OSCM is a functional field of business with clear line management responsibilities. a) True b) False
True
The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio it is called straddling. a) True b) False
True
Which of the following is a basic type of process structure? a) Workcenter b) Product matrix c) Process flow diagram d) Manual assembly e) Process matrix
Workcenter
You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values. What can you conclude? a) You have incorrectly performed the analysis b) You have multiple critical paths c) Only one path is optimal d) The project will not be completed by the desired time e) More than one path is optimal
You have multiple critical paths
Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods about 106 customers arrive per hour for service. Given number of tables and chairs, and the typical time it takes to serve a customer, they the owners estimate they can serve on average about 162 customers per hour. Use Exhibit 4.6. During these nights, are they in the zone of service, the critical zone, or the zone of non service?
Zone of service
Ten samples of 15 parts each were taken from an ongoing process to establish a p-chart for control. The samples and the number of defectives in each are shown in the following table: SAMPLE n NUMBER OF DEFECTIVE ITEMS IN THE SAMPLE 1 15 2 2 15 0 3 15 2 4 15 1 5 15 3 6 15 2 7 15 1 8 15 3 9 15 2 10 15 2 a. Determine the p−, Sp, UCL and LCL for a p-chart of 95 percent confidence (1.96 standard deviations). (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 3 decimal places.) p− 0.120 ± 0.005 Sp 0.084 ± 0.005 UCL 0.285 ± 0.005 LCL 0 b. What comments can you make about the process? Process is in statistical control correct Explanation: a. A total of 18 defectives were found in 10 samples of size 15. p− = 18 = 0.120 10(15) Sp=p−(1−p−)n‾‾‾‾‾‾‾√ =0.120(1−0.120)15‾‾‾‾‾‾‾‾‾‾‾‾‾√=0.084 UCL = p⎯⎯ + 1.96 Sp = 0.120 + 1.96(0.084) = 0.285 LCL = p⎯⎯ - 1.96 Sp = 0.120 - 1.96(0.084) = -0.045 → zero b. The process appears to be under control.
correct answer shown
A metal fabricator produces connecting rods with an outer diameter that has a 1 ± 0.03 inch specification. A machine operator takes several sample measurements over time and determines the sample mean outer diameter to be 1.004 inches with a standard deviation of 0.008 inch. Calculate the process capability index for this example. (Round your answer to 3 decimal places.) Process capability index 1.083 correct
correct answers shown
An assembly line is to operate eight hours per day with a desired output of 225 units per day. The following table contains information on this product's task times and precedence relationships: TASK TASK TIME (SECONDS) IMMEDIATE PREDECESSOR A 90 — B 50 A C 45 A D 40 A E 30 B, C F 60 C, D G 45 E, F H 70 G b. What is the required workstation cycle time to meet the desired output rate? (Round your answer to the nearest whole number.) Workstation cycle time 128 correct seconds per unit c. Balance this line using the longest task time. (Leave no cells blank - be certain to enter "0" wherever required.) Work Station Task Idle Time (in seconds) I A correct 38 correct II B-C-E correct 3 correct III D-F correct 28 correct IV G-H correct 13 correct d. What is the efficiency of your line balance, assuming it is running at the cycle time determined in part b? (Round your answer to 1 decimal place.) Efficiency 84.0 correct %
correct answers shown
Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to their product line. The company is currently considering two options. The first is a small facility that it could build at a cost of $8 million. If demand for new products is low, the company expects to receive $11 million in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, it expects $13 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $10 million. Were demand to be low, the company would expect $11 million in discounted revenues with the large plant. If demand is high, the company estimates that the discounted revenues would be $15 million. In either case, the probability of demand being high is 0.40, and the probability of it being low is 0.60. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products. a. Calculate the NPV for the following: (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers in millions rounded to 1 decimal place.) Plans NPV Small facility $ 3.8 ± 1% million Do nothing 0 million Large facility 2.6 ± 1% million b. The best decision to help Expando is to build the small facility. correct
correct answers shown
In the following MRP planning schedule for Item J, indicate the correct net requirements, planned order receipts, and planned order releases to meet the gross requirements. Lead time is one week. (Leave no cells blank - be certain to enter "0" wherever required.) WEEK NUMBER ITEM J 0 1 2 3 4 5 Gross requirements 68 44 67 On hand 38 Net requirements Planned order receipt Planned order release Period 1 2 3 4 5 Item J LT = 1 Q = L4L Gross requirements 68 44 67 Scheduled receipts 0 correct 0 correct 0 correct 0 correct 0 correct Projected available balance 38 correct 0 correct 0 correct 0 correct 0 correct Net requirements 0 correct 30 correct 0 correct 44 correct 67 correct Planned order receipts 0 correct 30 correct 0 correct 44 correct 67 correct Planned order releases 30 correct 0 correct 44 correct 67 correct 0 correct
correct answers shown
Resistors for electronic circuits are manufactured on a high-speed automated machine. The machine is set up to produce a large run of resistors of 1,000 ohms each. Use Exhibit 10.13. To set up the machine and to create a control chart to be used throughout the run, 15 samples were taken with four resistors in each sample. The complete list of samples and their measured values are as follows: Use three-sigma control limits. SAMPLE NUMBER READINGS (IN OHMS) 1 1023 1030 978 1026 2 973 1014 988 1002 3 986 999 994 1022 4 1027 978 1003 1012 5 971 992 1021 987 6 1030 972 1021 1009 7 1003 1028 1028 997 8 1007 1025 988 971 9 1029 988 1029 985 10 975 984 1025 1030 11 1021 1010 1016 1015 12 1020 1025 1030 973 13 990 1014 977 972 14 996 974 974 992 15 991 993 995 985 a. Calculate the mean and range for the above samples. (Round "Mean" to 2 decimal places and "Range" to the nearest whole number.) Sample Number Mean Range 1 1,014.25 52 2 994.25 41 3 1,000.25 36 4 1,005.00 49 5 992.75 50 6 1,008.00 58 7 1,014.00 31 8 997.75 54 9 1,007.75 44 10 1,003.50 55 11 1,015.50 11 12 1,012.00 57 13 988.25 42 14 984.00 22 15 991.00 10 b. Determine X= and R−. (Round your answers to 3 decimal places.) X= 1,001.883 ± 1% R− 40.8 ± 1% c. Determine the UCL and LCL for a X−chart. (Round your answers to 3 decimal places.) UCL 1,031.667 ± 0.1% LCL 972.099 ± 1% d. Determine the UCL and LCL for R-chart. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 3 decimal places.) UCL 93.024 ± 1% LCL 0 e. What comments can you make about the process? The process is in statistical control. correct Explanation: b. X= = 1,001.883, R− = 40.800 c. Control limits for X− chart: UCL, LCL = X=±A2R⎯⎯⎯ = 1,001.883 + 0.73(40.800) = 1,031.667, 972.099 d. Control limits for R⎯⎯⎯ chart: UCL = D4R⎯⎯⎯ = 2.28(40.800) = 93.024 e. If the process is in control: "The process is in statistical control. All samples are within the control limits on the X-bar and R charts. If the process is out of control: "The process is out of statistical control. The sample mean or range is outside the control limits on the X-bar or R chart for at least one sample. LCL = D3R⎯⎯⎯ = 0(40.800) = 0
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Schedule the following activities using CPM: ACTIVITY IMMEDIATE PREDECESSOR TIME (WEEKS) A — 1 B A 4 C A 3 D B 2 E C, D 5 F D 2 G F 2 H E, G 3 b. What is the critical path? A-B-D-E-H correct c. How many weeks will it take to complete the project? Number of weeks 15 correct d. Which activities have slack, and how much? C, 3 weeks; F, 1 week; and G, 1 week. correct b. A-B-D-E-H, also shown in the network above as the bold path. c. 15 weeks, 1 + 4 + 2 + 5 + 3. d. All tasks on the critical path (CP) will have zero slack. All other tasks will have slack equal to the difference between their early and late start times, which is the same as the difference between their early and late finish times. In this problem those tasks are C, F, and G.
correct answers shown
There is an 82 percent chance the project below can be completed in X weeks or less. Picture (tree chart) ACTIVITY MOST OPTIMISTIC MOST LIKELY MOST PESSIMISTIC A 2 5 11 B 3 3 3 C 1 3 5 D 6 8 10 E 4 7 10 What is X? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
x = 18