ISDS 3115 Test 2

A waiting line model meeting the assumptions of the M/M/1 has an arrival rate of 2 per hour and a service rate of 6 per hour. What is the utilization factor for the system? a) 0.33 b) 0.25 c) 0.50 d) 0.67

a) 0.33

Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor? a) Few people will travel out-of state for a routine haircut. b) metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source. c) Furniture makers choose to locate near the source of good hardwoods. d) Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital.

a) Few people will travel out-of state for a routine haircut.

A manager tells her production employees, "It's no longer good enough that your work falls anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of: a) Taguchi concepts b) Six Sigma c) ISO 9000 d) internal benchmarking

a) Taguchi concepts

A c-chart is appropriate to plot the number of flaws in a bolt of fabric. a) True b) False

a) True

A cause-and-effect diagram helps identify the sources of a problem. a) True b) False

a) True

A copy center has five machines that serve customers throughout the day. The waiting-line system for copy service has an infinite population, while the waiting-line system for copier maintenance has a finite population. a) True b) False

a) True

Averages of small samples, not individual measurements, are generally used in statistical process control. a) True b) False

a) True

Changes in capacity may lead, lag, or straddle the demand. a) True b) False

a) True

Design capacity is the theoretical maximum output of a system in a given period under ideal conditions. a) True b) False

a) True

Intermittent processes are organized around processes. a) True b) False

a) True

Internal failure costs are associated with scrap, rework, and downtime. a) True b) False

a) True

Line employees need the knowledge of TQM tools. a) True b) False

a) True

Mean charts and range charts complement one another, one detecting shifts in process average, the other detecting shifts in process dispersion. a) True b) False

a) True

Mistakes stemming from workers' inadequate training represents an assignable cause of variation. a) True b) False

a) True

One of the ways that just-in-time (or JIT) influences quality is that by reducing inventory, bad quality is exposed. a) True b) False

a) True

Price changes are useful for matching the level of demand to the capacity of a facility. a) True b) False

a) True

TQM is important because each of the ten decisions made by operations managers deals with some aspect of identifying and meeting customer expectations. a) True b) False

a) True

The Cpk index measures the difference between the desired and actual dimensions of goods or services produced. a) True b) False

a) True

Thee cost of waiting decreases as the service level increases. a) True b) False

a) True

Which of the following is FALSE regarding control charts? a) Values above the upper control limits imply that the product's quality is exceeding expectations. b) Control charts graphically present data. c) Control charts are built so that new data can be quickly compared to past performance data. d) None of the above is false.

a) Values above the upper control limits imply that the product's quality is exceeding expectations.

The purpose of an x-bar chart is to determine whether there has been a: a) change in the central tendency of the process output. b) change in the percent defective in a sample. c) change in the dispersion of the process output. d) change in the number of defects in a sample.

a) change in the central tendency of the process output.

Which of the following represents a common way to manage capacity in the service sector? a) changes in staffing levels b) appointments c) reservations d) first-come, first served rule

a) changes in staffing levels

Statistical process control charts: a) display upper and lower limits for process variables or attributes and signal when a process is no longer in control. b) indicate to the process operator the average outgoing quality of each lot. c) display the measurements on every item being produced. d) are a graphic way of classifying problems by their level of importance, often referred to as the 80-20 rule.

a) display upper and lower limits for process variables or attributes and signal when a process is no longer in control.

When sample measurements falls inside the control limits, it means that: a) if there is no other pattern in the samples, the process is in control. b) the process output does not fulfill the requirements. c) each unit manufactured is good enough to sell. d) the process limits cannot be determined statistically

a) if there is no other pattern in the samples, the process is in control.

When making a location decision at the country level, which of these would be considered? a) location of markets b) land/construction costs c) air, rail highway, waterway systems d) zoning restrictions

a) location of markets

Which of the following phrases best describes process focus? a) low volume, high variety b) high fixed costs, low variable costs c) low inventory d) Operators are less broadly skilled

a) low volume, high variety

Retail layouts are based on the notion that: a) maximizing customer exposure rate maximizes sales and profit. b) storage costs should be minimized c) space should be minimized d) handling costs should be minimized

a) maximizing customer exposure rate maximizes sales and profit.

Pareto charts are used to: a) organize errors, problems, or defects. b) show material flow c) outline production schedules. e) identify inspection points in a process.

a) organize errors, problems, or defects.

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm? a) parking and access b) labor costs c) attitude toward unions d) energy and utility costs

a) parking and access

The __________ layout's main objective is to equalize the task time for each station. a) product oriented b) office c) work cell d) job shop

a) product oriented

Which of these factors would be considered when making a location decision at the region/community level? a) proximity to raw materials and customers b) environmental impact issues c) zoning restrictions d) cultural and economic issues

a) proximity to raw materials and customers

The crossover point is that production quantity where: a) total costs for one process equal total costs for another process b) the process no longer loses money c) total costs equal total revenues for a process d) fixed costs of a process are equal to its variable costs.

a) total costs for one process equal total costs for another process

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals 90% of design capacity. If the number of students who actually got their orientation session is 1500, what is the efficiency of the system? a) 1710 students b) 87.7% c) 90% d) 1350 students

b) 87.7%

A process is said to be in statistical control when assignable causes are the only sources of variation. a) True b) False

b) False

A process that is in statistical control will always yield products that meet their design specifications. a) True b) False

b) False

An example of the postponement strategy for improving service productivity is having the customer wait until you have sufficient time to serve the customer. a) True b) False

b) False

Capacity decisions are based on technological concerns, not demand forecasts. a) True b) False

b) False

Effective capacity is typically larger than design capacity. a) True b) False

b) False

If the process average is in control, then the process range must also be in control. a) True b) False

b) False

Source inspection is inferior to inspection before costly operations. a) True b) False

b) False

The probability of rejecting a good lot is known as consumer's risk a) True b) False

b) False

The study of waiting lines calculates the cost of providing good service but does not value the cost of customer's waiting time. a) True b) False

b) False

Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. a) Station 1 b) Station 2 c) Station 3 d) Station 4

b) Station 2

The fixed-position layout would be MOST appropriate in which of the following settings? a) a fast-food restaurant b) a cruise ship assembly factory c) a washing machine assembly line d) a doctor's office

b) a cruise ship assembly factory

Product focused processes: a) apply only to service firms, not to manufacturers. b) are processes that are specialized for relatively few products or customer groups. c) allow more customization, but are not very efficient. d) are profitable because customers demand flexibility, not specialization.

b) are processes that are specialized for relatively few products or customer groups.

A waiting line, or queuing, system has three parts, which are: a) arrival rate, service rate, and utilization rate. b) arrivals or inputs, queue discipline or the waiting line itself, and the service facility. c) sequencing policy, penalty for reneging, and expediting of others. d) arrival discipline, queue discipline, and service sequencing.

b) arrivals or inputs, queue discipline or the waiting line itself, and the service facility.

Control charts for variables are based on date that come from: a) the entire lot b) averages of small samples c) acceptance sampling d) individual items

b) averages of small samples

In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except: a) standardization b) customization c) automation d) removing some services

b) customization

The objective of layout strategy is to: a) minimize space used b) develop an effective and efficient layout that will the film's competitive requirements. c) minimize cost d) maximize flexibility

b) develop an effective and efficient layout that will the film's competitive requirements.

Utilization will always be lower than efficiency because: a) effective capacity is greater than design capacity. b) effective capacity is less than design capacity. c) expected output is less than rated capacity. d) expected output is less than actual output.

b) effective capacity is less than design capacity.

Which one of the following is NOT a characteristic of a Model C or M/D/1 system? a) single phase b) exponential service time pattern c) single server d) unlimited population size

b) exponential service time pattern

Which of the four major categories of quality costs is particularly hard to quantify? a) internal failure costs b) external failure costs c) prevention costs d) appraisal costs

b) external failure costs

A product-focused process is commonly used to produce: a) low variety products at either high- or low-volume. b) high-volume, low-variety products. c) high-volume, high-variety products. d) low-volume, high-variety products.

b) high-volume, low-variety products.

Assignable variation: a) is the same as random variation. b) is to be identified and investigated. c) leads to a steep OC curve. d) is a sign that a process is under control,

b) is to be identified and investigated.

The reason fast food restaurants are often found in close proximity to each other is: a) low cost b) location clustering near high traffic flows c) availability of skilled labor d) they enjoy competition

b) location clustering near high traffic flows

Frito-Lay is to _______ focus as Harley Davidson is to _______ focus. a) product, mass customization b) product, repetitive c) process, repetitive d) repetitive, product

b) product, repetitive

Adding a complementary product to what is currently being produced is a demand management strategy used when: a) efficiency exceeds 100 percent. b) the existing product has seasonal or cyclical demand. c) price increases have failed to bring about demand management. d) capacity exceeds demand for a product that has stable demand.

b) the existing product has seasonal or cyclical demand.

Ten samples of a process measuring the number of returns per 100 receipts were taken for a local retail store. The numbers were 10, 9, 11, 7, 3, 12, 8, 4, 6, and 11. Find the standard deviation of sampling distribution for the p-bar chart. a) There is not enough information to answer the question. b) .0863 c) .0273 d) 8.1

c) .0273

A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from a variety of other causes. The manager is most likely using: a) a scatter diagram b) a quality loss function c) a Pareto chart d) a flow chart

c) a Pareto chart

Traffic counts and purchasing power analysis of drawing area are techniques associated with: a) the factor-rating method b) locational cost-volume analysis c) a retail or professional service location decision d) the transportation model

c) a retail or professional service location decision

The common measures of queuing system's performance includes: a) maximum queue length, maximum time a customer may spend in the queue, and average queue length. b) probability that the service facility will be idle, average queue length, and probability that the waiting time will exceed a specified duration. c) average time each customer spends in the system, probability that the service system will be idle, and average time each customer spends in the queue. d) average time each customer spends in the system, maximum queue length, and probability of a specific number of customers in the system.

c) average time each customer spends in the system, probability that the service system will be idle, and average time each customer spends in the queue.

For which of the following operations would a fixed-position layout be MOST appropriate? a) producing TV sets b) refining of crude oil c) constructing a highway tunnel d) assembling automobiles

c) constructing a highway tunnel

Which of the following is an example of a finite arrival population? a) cars arriving at a suburban car wash b) shoppers arriving at a supermarket c) copy machines in a copying shop that break down d) all of the above

c) copy machines in a copying shop that break down

An organization whose capacity is on that portion of the average unit cost curve that falls as output rises: a) is suffering from diseconomies of scale. b) has expected output higher than rated capacity. c) has a facility that is below optimum level and should build a larger facility. e) has utilization higher than efficiency.

c) has a facility that is below optimum level and should build a larger facility.

globalization of the location decision is the result of all EXCEPT which of the following? a) ease of capital flow between countries b) more rapid, reliable travel and shipping c) higher quality of labor overseas d) market economics

c) higher quality of labor overseas

If a sample of items is taken and the mean of the sample is outside the control limits, the process is: a) producing high quality products b) within the established control limits with only nature causes of variation. c) likely out of control and the cause should be investigated. d) in control, but not capable of producing within the established control limits.

c) likely out of control and the cause should be investigated.

The most common tactic followed in process-layout planning is to arrange departments or work centers so they: a) are equally allocated within the available space. b) maximize the machine utilization c) minimize the costs of material handling d) produce a perfectly balanced assembly line

c) minimize the costs of material handling

An airline ticket counter, with several agents for one line of customers, is an example of which of the following? a) multiple-server, multiphase system b) single-server, multiphase system c) multiple-server, single-phase system d) cross-server, single-phase system

c) multiple-server, single-phase system

What shape does the quality loss function exhibit? a) bell-curve b) concave c) quadratic d) linear

c) quadratic

According to the manufacturing-based definition of quality: a) quality depends on how well the product fits patterns of consumer preferences. b) even though quality cannot be defined, you know what it is. c) quality is the degree to which a specific product conforms to standards. d) quality lies in the eyes of the beholder.

c) quality is the degree to which a specific product conforms to standards.

Traffic counts and demographic analysis of drawing area are associated with: a) the transportation model b) manufacturing location decisions c) service location decisions d) the center-of-gravity method

c) service location decisions

A McDonald's single - lane drive - through that has one window for making the payment and a second window for receiving the food behaves most like which of the following? a) multiple-server, multiphase system b) single-server, single-phase system c) single-server, multiphase system d) single-server, sequential-phase system

c) single-server, multiphase system

One of the similarities between process focus and mass-customization is: a) the volume of outputs. b) many departments and many routines. c) the variety of outputs. d) All of the above are similarities.

c) the variety of outputs.

Which of the following represents an unlimited queue? a) faculty office with limited seating during office hours b) small barbershop with only 5 chairs for waiting customers c) toll booth serving automobiles on an interstate d) drive-through lane at a fast-food restaurant

c) toll booth serving automobiles on an interstate

Harley Davidson: a) uses product focused on manufacturing. b) uses a large number of modules to build a small number of different bikes. c) uses work cells to feed its assembly line. d) All of the above are true.

c) uses work cells to feed its assembly line.

An Assembly line has 10 stations with times of 1, 2, 3, 4, ....., 10, respectively. What is the bottleneck time? a) 100% of the throughput time b) 50% of the throughput time c) 1.82% of the throughput time d) 18.18% of the throughput time

d) 18.18% of the throughput time

A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the throughput time of the system? a) 7 b) 9 c) 4 d) 35

d) 35

Christopher's cranks uses a machine that can produce 100 cranks per hour. The firm operate 12 hours per day, five days per week. Due to regularly scheduled preventative maintenance, the firm expects the machine to be running approximately 95% of the time. What is the expected weekly output of cranks for this company? a) 5700 b) 6783 c) 969 d) 4845

d) 4845

Which of the following is not one of the four principles of bottleneck management? a) Release work orders to the system at the bottleneck's capacity pace. b) Lost time at the bottleneck is lost system capacity. c) Increasing capacity at non-bottleneck stations is a mirage. d) Bottlenecks should be moved to the end of the system process.

d) Bottlenecks should be moved to the end of the system process.

Of the four approaches to capacity expansion, the approach that "straddles" demand: a) uses incremental expansion b) uses one-step expansion c) at some times leads demand, and at other times lags. d) Choices A and C are both correct.

d) Choices A and C are both correct.

Members of quality circles are: a) all trained to be facilitators b) always machine operators c) paid according to their contribution and quality d) None of the above; all of the statements are false.

d) None of the above; all of the statements are false.

Which of the following products is likely to be assembled on a repetitive process line? a) beer b) steel c) custom cakes d) automobiles

d) automobiles

The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as: a) continuous improvement b) employee empowerment c) copycatting d) benchmarking

d) benchmarking

A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. This is most likely related to the ___________ tool of TQM. a) process control chart b) histogram c) quality loss function d) cause-and-effect diagram

d) cause-and-effect diagram

One of the major advantages of process-oriented layout is: a) a small work-in-process inventories. b) sooth and continuous flow of work. c) high equipment utilization. d) flexibility in equipment and labor assignment.

d) flexibility in equipment and labor assignment.

A job shop is an example of a(n): a) specialized process b) repetitive process c) line process d) intermittent process

d) intermittent process

All of the following costs are likely to decrease as a result of better quality EXCEPT: a) customer dissatisfaction costs. b) scrap costs. c) warranty service costs. d) maintenance costs.

d) maintenance costs.

Which of the following is not one of the strategies for improving service productivity? a) separation b) scheduling c) self-service d) mass customization

d) mass customization

The main goal of retail layout is: a) minimizing material handling cost. b) minimizing space required c) minimizing storage costs d) maximizing profitability per square foot of floor space.

d) maximizing profitability per square foot of floor space.

Industrial location analysis typically attempts to: a) maximize sales. b) focus more on human resources. c) avoid countries with strict environmental regulations. d) minimize costs.

d) minimize costs.

A concert hall, employing both ticket takers and ushers to seat patrons, behaves typically as which of the following? a) single-server, single-phase system b) single-server, multiphase system c) multiple-server, cross-phase system d) multiple-server, multiphase system

d) multiple-server, multiphase system

Up to three standard deviations above or below the center line is the amount of variation that statistical process control allows for: a) assignable variation b) Type I errors c) all types of variation d) natural variation

d) natural variation

Which type of layout features departments or other functional grouping in which similar activities are performed? a) mass production b) unit production c) fixed-position d) process-oriented

d) process-oriented

What layout strategy deals with low-volume, high-variety production? a) office layout b) warehouse layout c) fixed-position layout d) process-oriented layout

d) process-oriented layout

In location planning, environmental regulations, cost and availability of utilities, and taxes are: a) global factors b) site-related factors c) country factors d) regional/community factors

d) regional/community factors

Which of the following industries is most likely to have low equipment utilization? a) auto manufacturing b) commercial banking c) steel manufacturing d) restaurants

d) restaurants

Which of the following is most likely to affect the location strategy of a manufacturing firm? a) appearance/image of the area b) competition in the area c) parking availability d) utility costs

d) utility costs

Which of these factors would be considered when making a location decision at the site level? a) proximity to raw materials and customers b) cost and availability of utilities c) cultural and economic issues d) zoning regulations

d) zoning regulations

A good layout requires determining: a) material handling equipment b) environment and aesthetics c) capacity and space requirements d) cost of moving between various work areas. e) All of the above.

e) All of the above.

A successful TQM program incorporates all EXCEPT which of the following? a) employee involvement b) JIT c) continuous improvement e) centralized decision-making authority

e) centralized decision-making authority