Final Exam
When a control chart is first developed, if the process is found to be out of control...
The process should be replaced by a new process
Order winners and order qualifiers change over time in responses to the dynamics of changing market conditions (t or f)
True
Supplier reliability is often an important consideration in outsourcing decisions (t or f)
True
Total quality management represents a set of management principles that focus on quality improvement in all the functional areas within a company (t or f)
True
Product design begins with...
Understanding the customer and identifying customer needs
In a waiting line system, the ______ reflects the probability that the servicer is busy and the customer must wait
Utilization factor
Which of the following is not a feature of a warehouse management system? Warehouse optimization Order tracking Vendor management Transportation management
Vendor management
The extent to which the firm will produce the inputs and control the outputs of each stage of the production process is known as
Vertical integration
Failure mode and effects analysis (FMEA) is
A systematic approach to analyzing the causes and effects of product failures
A company may purchase larger amounts of inventory for all of the following reasons EXCEPT: A. to reduce inventory carrying costs B. to take advantage of quantity discounts C. As a hedge against future price increases D. to obtain lower prices purchasing in volume
A. to reduce inventory carrying costs
Edward Deming believed that primary responsibility for quality improvement rested with
Both the employees and management of the firm
All of the following can improve a product's reliability EXCEPT A. simplifying product design B. improving individual component reliability C. Changing the product warranty D. Adding redundant components
C. Changing the product warranty
Information sharing among supply chain members will typically result in all of the following EXCEPT
C. an increased bullwhip effect
Adjusting available capacity by hiring and firing workers to match demand is an example of an _______ strategy
Chase demand
A variable measure is a product characteristic such as
Color
The degree to which a product meets pre-established standards is known as
Conformance
_____ represents what the firm does better than anyone else
Core competency
__________ software plans and executes business processes involving customer interaction
Customer relationship management
Which of the following is not an obstacle to global supply chain management?
Decreased delivery times
Which of the following is NOT a characteristic of a service? Intangible Variable output Difficult to emulate Perishable
Difficult to emulate
When higher levels of output cost more per unit to produce, the facility realizes
Diseconomies of scale
Service and design improvement techniques cannot be applied to societal problems such as education, healthcare and government services (t or f)
False
All of the following are dimensions of quality for manufactured products EXCEPT
Feasability
Which one of the following is NOT an example of a hybrid facility layout? Fixed-position Mixed-model layout Cellular Flexible manufacturing
Fixed-position
Companies that compete on ____ are able to produce a wide variety of products in response to customer needs
Flexibility
Comapanies resist establishing green supply chains for all of the following reasons except that
Green initiative lower costs because fewer resources are consumed
Which of the following is NOT an objective of effective layouts? A. reduce material handling costs B. increase the number of bottlenecks C. Eliminate waste and redundant activities D. improve communication and interaction among workstations
Increase the number of bottlenecks
_____ failure costs include scrap, rework, and down time
Internal
Which of the following is not an event or concept associated with the quality revolution? TQM Internet Six Sigma JIT
Internet
With_________, some of the manufacturing activities are moved into the warehouse or distribution center
Postponent
All of the following are enablers of efficient supply chain management EXCEPT Bar codes Price tags RFID tags the Internet
Price tags
Similar activities are grouped together in departments or work centers according to the function with a ______ layout
Process
The ease of adjusting resources in response to changes in demand defines a firm's
Process flexibility
The term aggregate planning reflects the fact thats plans are developed for ______ rather than _______
Product families, individual products
Creating a preliminary design that can be quickly tested and then either discarded or further refined is referred to as
Rapid prototyping
Supply chain integration does not involve _______ among supply chain members
Reducing competition
With _________, customers post contracts for items it want to purchase so that suppliers can bid on
Reverse auctions
Which of the following refers to an approach to risk management that aggregates risk?
Risk pooling
_________ is additional inventory kept on hand to meet variations in product demand
Safety stock
Distribution includes all of the following activities EXCEPT: Packaging Storing Shipping Sourcing
Sourcing
In a lean production, waste is defined as: overproduction high levels of inventory unnecessary movement all are correct
all are correct
Shifting demand into other time periods can be accomplished through advertising dales promotion incentives all of the above
all of the above
Yield management can be used to address all of the following problems EXCEPT: overbooking portioning demand into fare classes single order quantities backorders
backorders
The primary cost associated with the level production strategy is the cost of
holding inventory
In a pull production system, a card that corresponds to a standard quantity of production is known as
kanban
Which of the following is NOT an assumption of the basic EOQ model? A. demand is known and constant B. no shortages allowed C. lead time is determined by quantity ordered D. order quantity is received all at once
lead time is determined by quantity ordered
Which is NOT a component of lead timeL processing time maintenance time waiting time setup time
maintenance time
Lower inventory levels make processes...
more dependent on each other while revealing bottlenecks more quickly
Lean and six sigma are
natural partners for process improvement
Whats the sequence of the 3 specifications in service design process
performance spec-->design spec-->delivery spec
___________ is a lot sizing technique that orders for multiple demand periods is referred to as
periodic order quantity (POQ)
Which of the following is NOT a strategy for adjusting capacity level of production subcontracting backordering product substitution
product substitution
All of the following can be used for underloaded conditions EXCEPT: Acquiring additional work Pushing work back Pulling work ahead Reducing normal capacity
pushing work back
When opportunities for continuous improvement of a process have been exhausted, it may be time to
redesign or innovate
Which of the following is NOT a strategy for managing demand? A. shifting demand into other time periods B. create demand for idle resources C. redirecting demand to a competitor D. partnering with suppliers to minimize information distortion
redirecting demand to a competitor
Which of the following is NOT a basic element of lean production? flexible resources pull system repetitive production small lot production
repetitive production
Which statement concerning small-lot production is NOT true A. requires less space B. requires more capital investment C. Simplifies transportation between workstations D. Allows processes to be moved closer together
requires more capital investment
All of the following are inputs to the aggregate production planning process EXCEPT: demand forecasts financial constraints sales plans capacity constraints
sales plans
The ability to meet presented needs without compromising those of future generations is a concept in product design known as________
sustainability
Four common types of control charts include all of the following except: x(bar)-chart t-chart p-chart c-chart
t-chart
All of the following are inputs into the MRP process EXCEPT: the master production schedule the product structure file the item master file the planned order report
the planned order report
The product structure file provides all of the following information EXCEPT A. the products demand B. the items that go into the product C. A brief description of each item D. When and in what quantity each item is needed in the assembly process
the products demand
Capacity is defined as the
Maximum capability to produce
The basic tools of process analysis included Process flowcharts Process diagrams Process Maps All of the above
All of the above
Which of the following could be responsible for variability that is special cause (nonrandom)? Broken machinery Defective parts and materials Operator error All of these are correct
All of these are correct
The difference between planned production and customer orders is known as
Available-to-promise
Which of the following is NOT a characteristic of an effective product design process? A. matches product characteristics with customer requirements B. maximizes the revisions necessary to make a design workable C. ensures that customer requirements are not met in the least costly and simplest manner D. reduces the time required to design a new product or service
B. maximizes the revisions necessary to make a design workable
Which of the following is NOT considered a form of inventory? Items being transported Tools and equipment Purchased parts and supplies Backorders
Backorders
Variable demand and small-to-moderate quantities produced to-order are characteristics usually associated with
Batch of production
Two techniques used to design process layouts are
Block diagramming and relationship diagramming
________is a concept where companies are held responsible for their product even after its useful life
Extended producer responsibility
Ratio of a firms monthly output to the number of labor hours used in the same moth would be a measure of
Labor productivity
The traditional approach to inventory management is to maintain a level of inventory that
Maintains a balance between inventory cost and customer service