Productions and operations Mgmt. Question Exam

PM.05 Which statements are true about the critical path of a project (check all that apply)?

1) It is equal to the duration of the project 2) There can be more than one critical path 3) Any delay to any activity on the critical path with delay the entire project

PM.15 In which of the following project organization structures will project personnel battle with competing allegiances? (Check all that apply.)

1) Lightweight project matrix organization 2) Heavyweight project matrix organization

QC.11 Which control charts cannot be used individually to determine if a process is in or out of control? (Check all that apply)

1) R-Chart 2) Mean Chart

PP.09 Which tactics are used to change customer demand?

1) advertise 2)run promotions 3) bundle product offerings 4)increase prices

MS.02 The main inputs into the MRP process are

1) bill of material data 2) inventory status 3)master production schedule

MS.13 Which of the following are considered part of front-office applications in an ERP system?

1) credit 2) sales force automation

MS.14 Which of the following are considered part of back-office (behind the scenes) applications in an ERP system?

1) production scheduling 2)payroll 3)MRP

QC.06 In order to determine whether or not a variable type of process is in control (where output can be measured, not just classified), you must use which type of chart(s)? (Check all that apply.)

1) x-bar chart 2) R-Chart

FC.16 Which of the following are true statements regarding forecasting?

1)A principle of forecasting states, "The forecast is always wrong." 2)Forecasting is as much of an art as it is a science

PC.02 Which of the following are typical inputs into a production system?

1)Personnel 2)Engineering (product design) 3) Finance (capital)

IM.08 The ABC principle states that effort and money can be saved by.

1)applying looser controls to the lower-dollar-volume class 2)applying tighter controls to the higher-dollar-volume class

PM.11 A project manager should...(check all that apply)

1)know how to effectively delegate 2)be able to articulate the vision of the project 3)have proper organizational authority 4)"leave no stone unturned" when identifying all the tasks to be performed

PP.10 The three general categories of approaches used to manage the trade-off in S&OP are..

1)level 2)chase 3)combination

IM.09 If the inventory system says there is more inventory than what is physically on hand, the company runs the risk of.

1)overcommitting to the customer (saying product can be delivered before it really can be) 2)losing credibility with its customers from giving inaccurate delivery quotes

PP.18 A "mix hedge"

1)reduces levels of expensive FG inventory while slightly increasing component inventories 2)is a planning technique which supports increased production flexibility

Coming up with entirely new ways of filling orders, developing products, providing customer service, or doing any other activity that an enterprise performs are examples operational improvement, not operational innovation.

False

FC.09 Companies should not create their own forecasting methods because there is a sufficient variety of proven methods, one of which will certainly be suited to meet their needs.

False

MS.09 MRP is used to calculate requirements for independent items.

False

PC.04 Most firms provide either a product or a service, but rarely do they provide a mix of products and services

False

PC.13 The rate of inventions PRIOR to the Restoration of the Gospel was greater than the rate of inventions AFTER the Restoration.

False

PM.06 A Gantt chart provides better visibility of interdependencies than a network diagram (especially when the project has many tasks).

False

PP.11 The "chase" approach is the most appropriate build plan strategy for a manufacturer when it is easy to alter customer demand.

False

PS.01 A process that utilizes inexpensive general-purpose capital equipment will tend to have lower variable costs than a process that utilizes expensive specialized capital equipment.

False

PS.08 Efficiency, not responsiveness, should be the primary focus of processes that produce a great variety of products.

False

PS.11 The more customized the product, the easier to forecast demand.

False

PS.16 When computing the theoretical minimum number of workstations for a product layout, you should always round down to the nearest whole number.

False

QM.05 The "Total Quality Management" movement began with Motorola.

False

QM.07 Deming was a big proponent of using quotas for measuring workforce performance.

False

QM.09 Six Sigma certifications are administered by a single universally-recognized organization.

False

QM.10 Deming's PDCA cycle and Six Sigma's DMAIC methodology represent vastly different approaches to improving quality.

False

QM.11 ISO is a quality-oriented methodology which competes with Six Sigma.

False

QM.13 You have just received a list of the most frequent complaints from customers of your department store. The list is sorted in descending order, from most frequent complaint to least frequent. Which TQM tool would you most likely use to help you get to the bottom of the most frequent complaint?

Fishbone Diagram

FC.01 The story of Captain Moroni calling upon the Prophet Alma (to know where the Lamanites would attack) AND using spies to gather data illustrates the following point about forecasting:

Forecasts are often constructed from a combination of qualitative methods and quantitative methods

In creating operational innovation, what is required to stimulate radical thinking and willingness to overturn tradition?

A daunting target or goal—clearly unattainable through existing modes of operation.

PS.06 According to the textbook, which of these firms relied most on responsiveness (flexibility) in its production and fulfillment process strategy during the 1990s?

Dell

FC.06 In which of the following scenarios would a qualitative forecasting method be most appropriate?

Determining how many people will show up at your first annual Christmas concert

PC.09 Which General Authority is quoted extensively in this chapter, making a prophecy that directly relates to productivity?

Elder Eyring

QC.04 When a process is "in control" it means...

Variation in the process comes from "natural" causes

FC.19 Suppose a professional forecaster told you what his MAPE was and what his MAD was, but he told you nothing of overall product sales. Under this scenario which measure of forecast accuracy would be more meaningful to you?

MAPE

PM.02 In which of the following settings would the use of project management techniques be least appropriate?

Managing the operations at the local Wal-Mart

PS.05 Which statement is the most accurate concerning the production processes of In-N-Out Burger and Taco Bell?

Neither has a better process. It would appear that each has a process that is appropriate for delivering the type of food choices that they offer.

IM.05 An ABC classification is loosely based on

Pareto's Law

Operational innovation can deliver major boosts to the dimensions of performance shaped by operations. What are these dimensions?

Service, Cost, and Quality

FC.05 No single forecasting method is appropriate under all conditions.

True

FC.12 A time-series forecasting method relies solely on intuition and judgment.

True

FC.14 A naive forecasting model assumes the new period's forecast will be the same as the last period's actual demand.

True

FC.17 It is difficult to understand the significance of MAD without having information on the total number of units sold.

True

FC.18 Data which exhibits a strong negative correlation (r is close to -1) can be very useful for the development of a causal or associative forecasting model.

True

PC.03 Operations management deals with the set of activities that create value in the form of goods and services by transforming inputs into outputs.

True

PC.06 When computing multi-factor productivity it's important to use the same unit of measure when combining the costs of the inputs.

True

PS.02 A process that utilizes inexpensive general-purpose capital equipment will tend to have higher skilled workers.

True

PS.04 Generally speaking, the more specialized the production equipment, the lower the variable costs.

True

PS.09 A company's process strategy is its approach to converting resources (inputs) into goods and services.

True

PS.12 Companies that have become successful with a limited standard product offering often fall into the trap of subsequently broadening their product offering without making corresponding changes to their process strategy.

True

PS.14 When computing the theoretical minimum number of workstations for a product layout, you should always round up to the nearest whole number.

True

QC.07 Attributes control charts measure discrete, binary, countable data

True

QC.08 Variability exists in all processes and comes from two sources: (1) natural causes and (2) assignable causes. The purpose of control charts is to detect assignable causes of variation.

True

QC.10 Producer's risk is the risk that a good lot will be rejected by the customer.

True

QM.01 While the term "quality" can mean different things to different people, one reputable definition could be that "quality means user satisfaction."

True

QM.03 TQM (Total Quality Management) is a management approach to long-term success through customer satisfaction.

True

QM.12 ISO certifications are administered by a universally-recognized organization. (Yes, dozens of institutes cooperate with ISO, but it is ultimately ISO that sets the standards for certification.)

True

PP.15 The main output of the sales and operations planning process is

the production plan

JL.02 Which car company has become a poster child for JIT production:?

toyota

FC.07 The longer the forecasting horizon, the higher the aggregation that is used for forecasting (for example, dollars are used for long-term forecasts whereas individual products are used for short-term forecasts).

true

FC.08 A variety of forecasting methods may be used for a product over the course of its lifecycle.

true

FC.15 A naive forecast in March would be equal to the sales in February.

true

IM.01 A basic challenge of inventory management is to maintain an optimal balance between inventory investment and customer service.

true

IM.10 The economic order quantity (EOQ) equation perfectly balances the tradeoff between order costs (or setup costs) and inventory holding costs (or financial opportunity costs).

true

IM.12 When the desired service level is 50%, then safety stock is equal to zero.

true

JL.11 It could be said a kanban inventory system focuses more immediate needs than MRP.

true

MS.10 Components in a bill of material can be both "parent" items and "child" items at the same time.

true

MS.19 Retail transactions are usually less formal than business-to-business (B2B) system transactions.

true

PM.07 The earliest start (ES) of an activity that has only one predecessor is simply the earliest finish (EF) of that predecessor.

true

PP.12 The time horizon for the production plan should be at least as long as the time it takes to make changes in the resource base being planned.

true

FC.03 Which of the following decisions is driven by short-range forecasts?

weekly shift assignments at a retail store

QC.01 Acceptance sampling is most appropriately performed_________ a production process.

before and after

PP.19 Which build strategy allows for greatest customer input into the design or configuration of the final product?

engineer-to-order

PC.07 Productivity increases under which of these scenarios?

inputs decrease while outputs remain the same

IM.04 Pipeline inventory..

is the stock that is transit between locations

MS.03 Through MRP logic, the ________________ is exploded through the product's bill of material to drive time-phases requirements for the product's components.

master production schedule

PM.12 Let's suppose you get assigned to lead a project that will require team members from a variety of functional areas (or departments) within your company. Deep functional expertise is not required from the team members. Rather, the project must be completed as quickly as possible (which will require a focus on cross-functional coordination). Which project structure would you recommend to the project sponsors (your management)?

project organization (heavyweight project matrix organization, all team members report directly to the project manager)

PM.14 Project organizations are typically temporary in nature because

projects have a limited lifetime

FC.04 It could be said the forecasts drive the planning process, the lining up of resources to support those plans. Which purchasing/investment decision would you feel most comfortable making without having some sort of related forecast?

purchasing office supplies

IM.11 Which of the following is not an example of a fixed-period replenishment system?

quantity discount purchase

MS.17 Which of the following would not be considered a system transaction?

routing sheet

MS.16 Within a manufacturer or supplier's ERP (from the supplier's internal system perspective), a authorizes the shipment of goods to a customer.

sales order

MS.05 As part of the MRP output review process, a buyer or planner will convert or "graduate" a (computer generated) planned order into a _____________

schedule receipt

PP.21 Which of the following businesses is most likely to employ an assemble-to-order build strategy?

taco bell

PP.08 Which tactic is not used to change the supply of goods or services provided by a company?

take reservations

QM.08 The two main methodologies of Six Sigma--DMAIC and DMADV--were primarily inspired by

the Deming Cycle (PDCA or Plan-Do-Check-Act)

JL.06 Who outlined the "seven wastes"?

Taiichi Ohno

QC.02 As the warehouse manager of a big-box sporting goods chain one of your responsibilities is to ensure the incoming quality of products before sending them out to the retail outlets. Over the past few months you have received several large shipments of athletic socks, sampled a few packages from each shipment (according to your sampling plan) before breaking down the bulk shipments and sending smaller cases to each retail outlet. Unfortunately, over this same period several stores have complained about a sewing defect with these socks. What is happening?

All of the above

QM.04 Suppose you are a finance intern at a hospital and you are asked to participate on a team that is looking to address the low level of satisfaction among its staff. The hospital has received and documented hundreds of complaints from staff members (via surveys). At this point what would you recommend as a next step?

Categorize the complaints and show the count of each category in a Pareto chart in order to understand where the biggest problems are

PM.10 Your team's project has fallen slightly behind schedule and will incur late penalties unless the project can be brought back on schedule. Which of the following actions would be most appropriate in this situation?

Crash or short the duration of those activities on the critical path with the lowest per-period crashing costs.

QC.03 Suppose you are a new production supervisor at a dehydrated food producer. You want to impress your manager so you figure out a way to quickly gather product-weight sample data from the filling equipment to make control charts that can be reviewed each day in the plant's daily production meeting. Over the past week the product-weight sample data put into your daily x-bar charts have been well within the control limits. How should you use the information in your production meetings?

Don't use it yet. Use the sample data to also create R-charts to confirm that the dispersion of product weight is within control limits and then, in a subsequent meeting, present both x-bar and R-charts.

QC.09 You just got hired as a quality intern for a small startup making 3D printers. Each printer uses a number of small motors and one of your jobs is to make sure that these motors, received from a small supplier, meet your RPM (revolutions per minute) specifications. The supplier sends you an mean chart (x-bar chart) with each batch of motors to show you that the average RPMs for each batch meets your specifications. Notwithstanding this information from the supplier, you are seeing some unexpected inconsistent performance among the motors within each batch. What should be your first step to help you and the supplier get to the bottom of this issue?

In addition to a mean chart, have the supplier create and send you a range chart with each batch

Operational innovation is truly deep change because:

It affects the very essence of a company: how its work gets done.

PM.08 Which is the correct formula for calculating slack time?

LS-ES

PC.08 Which of the following is the best example of increasing productivity?

Taco Bell increased its revenues by adding a new menu item that consisted of ingredients that were already being used in other product offerings.

IM.03 Which category of inventory is used to cover projected trends of increasing demands due to planned sales promotions, seasonal fluctuations, plant shutdowns and vacations?

anticipation inventory

PP.14 Which build plan strategy is the most appropriate when demand is seasonal and it is easy to use temporary employees?

chase

MS.12 A bill of material is most like

cookbook

PM.04 Leaving "no stone unturned" corresponds to which project-related activity?

creating the work breakdown structure

PP.16 Which of the following "consume" the forecast?

customer orders

PM.13 What is the best way for a project manager to lead his team to overcome the conventional wisdom (constraints) of the project management triangle? (Note, this is not a trick question but a real question intended for disciple-leader students at BYU-Idaho who believe in the prophecies spoken by President Eyring in "A Steady Upward Course," where graduates of BYU-Idaho will be able to do more with less.)

exercise faith and good works

IM.06 Cycle counting is an inventory accuracy audit technique that takes place once a year.

false

JL.10 "Pull" production and "push" production are mutually exclusive, meaning they cannot coexist in the same production environment.

false

MS.08 Lot size has a direct bearing on the calculation of net requirements.

false

MS.11 Bill of material accuracy is kind of like Pareto's law. If you're 80% accurate, that is probably good enough.

false

PP.03 Each planning process, no matter the level, is focused on

finding the best way to make supply meet demand