MGMT 320: Gupta
What is the probability of accepting a bad lot?
Type II error (beta)
Which of the following is FALSE regarding control charts?
Values above the upper control limits imply that the product's quality is exceeding expectations.
Which of the following is NOT one of the four main types of inventory?
safety stock inventory
Intermediate planning is initiated by a process known as
sales and operations planning.
In aggregate planning, which one of the following is not a basic option for altering demand?
subcontracting
Product-focused processes:
tend to have long, continuous production runs.
An acceptance sampling plan has lots of 500 pieces and a sample size of 60. The number of defects in the sample may not exceed 2. This plan, based on an OC curve, has a probability of 0.57 (57%) of accepting lots when the incoming lots have a defective rate of 3.0%, which is the historical average of the process.
the average outgoing quality = 1.5% (3)(.57)(500-60)/500
The two most basic inventory questions answered by the typical inventory model are:
timing of orders and order quantity.
labor hours=
total output/ productivity
productivity=
total output/total input
Mathematically, takt time is:
total work time available divided by units required.
What layout strategy deals with low-volume, high-variety production?
process-oriented layout
Frank Pianki, the manager of an organic yogurt processing plant desires a quality specification with a mean of 16.0 ounces, an upper specification limit of 16.5 ounces, and a lower specification limit of 15.5 ounces. The process has a mean of 16.0 ounces and a standard deviation of 1 ounce. Part 2 The process capability index (Cpk) = 0.1670.167 (round your response to three decimal places).
(a) Cp = (usl- lsl) / (6*sd) = Cpk = Upper specification limit (usl - M) / (3*sd) = Lower specification limit (M - lsl) / (3*sd) =
% change=
(new productivity-old productivity)*100/ old productivity
Ten samples of a process measuring the number of returns per 200 receipts were taken for a local retail store. The number of returns were 10, 9, 11, 7, 3, 12, 8, 4, 6, and 11. Find the standard deviation of the sampling distribution for the p-bar chart.
.0139
A Cpk index of 1.00 equates to what defect rate?
.3%
A local project being analyzed by PERT has 42 activities, 13 of which are on the critical path. If the estimated time along the critical path is 105 days with a project variance of 25, what is the probability that the project will be completed in 95 days or more?
0.97725
Which of the following statements is true?
A. Functional strategies are shaped by corporate strategy. Your answer is correct. B. External conditions are shaped by corporate mission. C. Functional area missions are merged to become the organizational mission. D. Corporate mission is shaped by functional strategies. E. Corporate strategy is shaped by functional strategies. A
The statistical definition of Six Sigma allows for 3.4 defects per million. This is achieved by what Cpk index value?
2
A production line is to be designed to make 375 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of work. The factory operates 750 minutes per day. What is the required cycle time for this assembly line?
2 mins 750/375=2
cpk index of 1 equates to what defect rate
2.7 defects per 1,000 items
An order for 110 units of Product M has been placed. There are currently 30 units of Product M on hand. Each M requires 4 units of Component N. There are 50 units of N on hand. What are the net requirements for N?
270
What is the typical time horizon for aggregate planning?
3 to 18 months
A Six Sigma program has how many defects per million?
3.4
An activity on a PERT network has these time estimates: optimistic = 3, most likely = 5, and pessimistic = 10. What is its expected activity time?
5.50
The minimum record accuracy required for successful MRP is approximately which of the following?
99%
Which of the following is the best example of competing on low-cost leadership?
A firm produces its product with less raw material waste than its competitors do.
Which of the following statements regarding the gross material requirements plan is TRUE?
A. It combines a master production schedule with the time-phased schedule. B. It requires several inputs, including an accurate bill of material. C. It shows total demand for an item. D. It shows when an item must be ordered from a supplier or when production must be started. E. All of the above are true. E
A successful quality strategy features which of the following elements?
A. engaging employees in the necessary activities to implement quality B. an understanding of the principles of quality C. an organizational culture that fosters quality D. A and C E. A, B, and C E
Value-stream mapping:
A. is a variation of time-function mapping. B. starts with the customer and works backwards. C. extends time function mapping back to the supplier. D. examines the supply chain to determine where value is added. E. All of the above are true. E
Reasons to study operations management include:
A. studying how people organize themselves for productive enterprise. B. understanding what human resource managers do. C. knowing how goods and services are consumed. D. learning about a costly part of the enterprise. E. A and D E
Which of the following statements about ABC analysis is FALSE?
ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.
What is the percentage defective in an average lot of goods inspected through acceptance sampling?
AOQ
Which of the following is a function of inventory?
All of the above are functions of inventory.
Which of the following statements regarding Amazon.com is FALSE?
Amazon obtains its competitive advantage mainly through effective worker scheduling.
The upper and lower design specification limits for a medical procedure performed by Dr. Muge Yayla Kallu are 15 minutes and 13 minutes, respectively. The process x=14.5 minutes and σ=0.2 minutes. Compute the CP and interpret its meaning.
CP of this process is 1.671.67 (round your response to two decimal places). Is the process "capable"? Yes
Linda Boardman, Inc., an equipment manufacturer in Boston, has submitted a sample cutoff valve to improve your manufacturing process. Your process engineering department has conducted experiments and found that the valve has a mean (μ)of 9.00 and a standard deviation (σ) of 0.04.Your desired performance is μ= 9.00±3standard deviations, where σ= 0.050.
For the given information, the process capability index (Cpk) = 1.251.25 Given: Upper Specification limit, USL=9+ 3*0.05= 9.15 Lower Specification limit, LSL = 9- 3*0.0= 8.85 Actual Mean, M =9, Standard deviation: sd= 0.04 Answer a: Process capability index: Cpk= Min[(M-LSL)/3sd; (USL-M)/3sd]= 1.25
An inventory decision rule states, "When the inventory level goes down to 14 gearboxes, 100 gearboxes will be ordered." Which of the following statements is TRUE?
Fourteen is the reorder point, and 100 is the order quantity.
In the business novel, THE GOAL, "Eventually Alex discontinued red-green tagging system" serves as an example of primarily which of the five-focusing steps?
GO BACK to step 1, but DON'T allow INERTIA to cause a system constraint
The sum of what two variable costs is to be minimized in the economic order quantity problem?
Holding (carrying) cost and setup (order processing) cost
Which of the following are among the 10 strategic operations management decisions? I. design of goods and services II. managing quality III. layout strategies IV. marketing V. pricing of goods and services
I, II, III
The process capability measures Cp and Cpk differ because:
Only one ensures the process mean is centered within the limits. Cp values for a given process will always be greater than or equal to Cpk values.
Which of the following is NOT an assumption of the economic order quantity model shown below? q= sqrt(2sd/h)
Production and use can occur simultaneously.
As explained in the business novel THE GOAL, acording to the Theory of Constraints, the term "Inventory" refers to
Raw material, WIP, and finished goods inventory & Other assets such equipments, computers, buildings etc.
In the business novel THE GOAL, "Timing material release in the plant based on the constraint schedule" serves as an example of primarily which of the five-focusing steps?
SUBORDINATE everything else to the above decision.
As explained in the business novel, The Goal, Jonah tells Alex the four elements of total elapsed time (i.e., the lead time) are:
Setup time, Process time, Queue time and Wait time
As discussed in the Goal and observed in the dice game you played, what two factor prevent balance plants from meeting market demand
Statistical fluctuations and dependent events
Which is NOT true regarding differences between goods and services?
Tangible goods are generally produced and consumed simultaneously; services are not.
Arnold Palmer Hospital uses which of the following quality management techniques?
The hospital uses all of the above techniques.
What is the reasoning behind setting the upper and lower control limits ±3σx from the mean?
We know that 99.73% of natural variation is contained within ±3σx, and thus any data point outside of the limits is likely due to assignable variation
What is the reasoning behind setting the upper and lower control limits ±3σx from the mean?
We know that 99.73% of natural variation is contained within plus or minus±3sigma Subscript x overbarσx, and thus any data point outside of the limits is likely due to assignable variation
Which of the following is NOT one of the four things needed for aggregate planning?
a mathematical model that will minimize costs over the intermediate planning period
A process focused facility is
a production facility organized around specific activities.
In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except:
customization.
Which of the following statements regarding the reorder point is TRUE?
all of these
The central limit theorem:
allows managers to use normal distribution as the basis for building some control charts
Assignable causes:
are causes of variation that can be identified and investigated.
assignable causes
are causes of variation that can be investigated and identified
Which is the best statement regarding an operating characteristic curve?
as the AQL decreases, the producer's risk also decreases
"Quality lies in the eyes of the beholder" is:
a user-based definition of quality.
Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 oz. Which type of chart(s) would you recommend?
both x bar chart and r chart
Disaggregation: A) breaks the aggregate plan into greater detail. B) transforms the master production schedule into an aggregate plan. C) calculates the optimal price points for yield management. D) converts product schedules and labor assignments to a facility-wide plan. E) is an assumption required for the use of the transportation model in aggregate planning.
breaks the aggregate plan into greater detail.
Which of the following is LEAST likely to be a low-cost leadership competitive advantage?
broad product line
The purpose of an x-bar chart is to determine whether there has been a:
change in the central tendency of the process output
process capability index (cpk)
cpk will always be less than or equal to cp
Which of the following is NOT an advantage of work cells?
decreased equipment and machinery utilization
Statistical Process Control charts
display upper and lower limits for process variables or attributes and signal when a process is no longer in control.
Cycle counting:
eliminates annual inventory adjustments.
Activity times should not be included in a service blueprint.
false
As explained in the business novel THE GOAL, setup time is the mirror image of work-in-progress inventory
false
As explained in the business novel, THE GOAL, reducing batch sizes at the bottlenecks help to increase throughput.
false
Flowcharts use distance, but not time, to show the movement of material, product, or people through a process.
false
From a TOC perspective, reducing batch sizes at the bottleneck process helps to increase throughput.
false
What is a drawing of the movement of material, product, or people?
flowchart
Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a:
flowchart.
the usual purpose of an r-chart is to signal whether there has been a :
gain or loos in dispersion
which of the following phrases best describes process focus
high fixed costs, low variable costs
A firm uses the chase strategy of aggregate planning. It produced 1000 units in the last period. Demand in the next period is estimated at 1,100, and demand over the next six periods (its aggregate planning horizon) is estimated to average 900 units. Which of the following tactics would be most representative of following a chase strategy?
hire workers to match the 100-unit difference
The ________ layout's main objective is to equalize the task time for each station.
product oriented
A project organization:
is effective for companies with multiple large projects.
which of the following characteristics best describes repetitive focus
its output is a standardized product
A hospital's layout most closely resembles which of the following?
job shop
natural variations
lead to occasional false findings that processes are out of control
The main goal of retail layout is:
maximizing profitability per square foot of floor space.
A network has been crashed to the point where all activities are critical. Additional crashing:
may require crashing multiple tasks simultaneously.
A paint company mixes ten different base colors into 3,000 different color options. If production scheduling is organized around the ten different base colors, then the bills of material are classified as which of the following?
modular
The causes of variation in statistical process control are:
natural and assignable causes
Up to 3 standard deviations above or below the centerline is the amount of variation that statistical process control allows for
natural variation
Eli Whitney, in the ________, provided the foundations for ________ in operations management.
nineteenth century; interchangeable parts
Which of the following is NOT a key benefit of MRP?
quality increase
If a sample of parts is measured and the mean of the measurements is outside the control limits, the process is:
out of control and the process should be investigated for assignable variation.
The number of defects after a hotel room cleaning (sheets not straight, smears on mirror, missed debris on carpet, etc) should be measured using what type of control chart?
p-chart
Time-function mapping is a flowchart with time added to the horizontal axis.
true
plot of sample ranges indicate that the most recent value is below the lower control limit. what course of action would you recommend?
variation is not in control; investigate what created this condition
A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. To analyze trends or patterns in these returns, she has organized these complaints into a small number of sources or factors. This is most closely related to the ________ tool of TQM.
cause-and-effect diagram
According to the authors, which of the following strategic concepts allow firms to achieve their missions?
differentiation, cost leadership, and response
Capacity decisions are most critical to which of the following?
long-range plans
The "four Ms" of cause-and-effect diagrams are:
material, machinery/equipment, manpower, and methods.
A production line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can an assembly line with five workstations make 100 units per day?
no, it will fall short even with a perfectly balanced line
The phases of project management are:
planning, scheduling, and controlling.
