OMGT Test 3 T/F
Accuracy is a key performance dimension for strategic decision-making information flows.
False
The roof of the house of quality displays conflicts between the voice of the customer and product characteristics and permits designers to rapidly identify trade-offs.
False
Value may be increased by simultaneously increasing cost and decreasing functionality.
False
A company that orders at their economic order quantity has an annual ordering cost that is half of their total cost.
True
Just-in-time production is the same thing as Lean production.
True
The greater the demand, the more kanbans are needed.
True
Target costing is the act of designing a process to meet a specific cost objective.
False
The BEST use of a Gantt chart is to show precedence requirements for a project's constituent activities.
False
The concept development phase addresses the feasibility of a product or service.
False
The development funnel demonstrates that while initial conceptual development takes a long time, product design can progress quickly through the final phases of development.
False
The earliest finish time is calculated by adding the activity's duration to the predecessor's earliest finish time.
False
The earliest finish time of an activity is always later than its latest start time.
False
The ease with which parts can be replaced, checked or evaluated is testability.
False
The excess cost of an item is the profit you would have made on it.
False
The flexibility of inventory increases as materials move down the supply chain.
False
The forecast for next month is 200 units so the manufacturer gathers materials for this anticipated level of production activity. This is an example of pull production.
False
The just-in-time philosophy applies only to the production floor of a manufacturing company.
False
The oil could be changed at the push of a button without dirtying your hands or peering underneath the new Chrysler Crepitus, an important achievement in their Design for Six Sigma program.
False
The reorder point increases as the service level falls.
False
The value of goods on a "per unit" basis far upstream in a supply chain is greater than the value of those same goods far downstream in a supply chain.
False
Throughout every MRP record, ending inventory is equal to the ending inventory from the previous period, plus the master production schedule quantity, minus the orders booked for that period.
False
Warehouse and transportation planning systems support strategic planning efforts by allocating fixed logistics capacity in the best possible way, given business requirements.
False
Your authors argue that the increasing numbers of middle management are attributable to their ability to manage projects.
False
One recent development in Lean thinking is the combination of Lean and Six Sigma into Lean Six Sigma, which combines the rigor of statistical analysis and DMAIC approach with Lean's focus on waste reduction.
True
Performance or time targets for each major group of activities in a project are set during the planning phase of a project.
True
Pre sourcing is the process of preapproving suppliers for specific commodities or parts.
True
Component J is ordered on February 1, is received, and is ready to use on February 8. Its planning lead time is seven days.
True
Customer relationship management refers to planning and control activities and information systems that link a firm with its downstream customers.
True
Cycle stock can occur at more than one point in a supply chain.
True
Decreases in the standard deviation of demand reduce the amount of safety stock that should be held.
True
Distribution requirements planning is identical to material requirements planning except instead of gross requirements, a DRP record shows forecasted demand.
True
ERP's traditional strengths lie in routine decision making and in execution and transaction processing.
True
Enterprise resource planning applications span the supplier, customer, and
True
For a kanban system to work properly, demand rates must be relatively stable, and interruptions must be minimized.
True
Gross requirements in an MRP record can be met by inventory from previous weeks, scheduled receipts, or planned receipts.
True
In order for the economic order quantity model to work, demand must be known and constant.
True
In order to find the lowest cost ordering policy in a quantity discount model, you must compare the holding cost, ordering cost, and the cost of goods for various order quantities.
True
In the launch phase of product development it is typically the marketing department's responsibility to fill the downstream supply chain.
True
In the planning phase, the operations and supply chain function develops initial cost estimates and identifies key supply chain partners.
True
In the project definition phase, project planners identify, among other tasks, how to accomplish the work and how to organize for the project.
True
Lean thinking has received considerable attention in the last decade, but tools such as kanbans cannot be used in all production environments.
True
MRP nervousness refers to the notion that a small change at the top of a bill of material can have drastic effects on items farther down the bill of material.
True
MRP uses backward scheduling.
True
Material requirements planning is performed over a shorter time frame and greater level of detail than master scheduling.
True
Most project management software represents a project in AON format.
True
One ERP vendor is known simply as SAP.
True
One characteristic of cloud computing is that the provider's computing resources may serve multiple consumers with the resources dynamically allocated according to customer demand.
True
One of the primary characteristics of projects as a form of work is the movement of personnel from project to project.
True
Product design refers to the development of physical products and intangible services.
True
Products developed using a concurrent engineering process can be developed more quickly than those using a sequential development process.
True
Program evaluation and review technique, PERT, is a network-based technique in which there are multiple time estimates for each activity.
True
Quality function deployment can be used to show linkages between customer requirements and product characteristics.
True
RFID tags can be used instead of a bar code system to trace the movement and location of materials.
True
Robust design is the design of products to be less sensitive to manufacturing variation and misuse.
True
The order quantity in a periodic review system rises as the on-hand inventory falls.
True
The output from the first QFD matrix that feeds into the second QFD matrix is the product characteristics information.
True
The purpose of the execution and transaction processing supply chain activities is to record and retrieve data and execute and control physical and monetary flows.
True
There are more resources required during the performance phase of a project than the project definition phase.
True
Transportation is waste according to the Lean philosophy.
True
Crashing a project refers to the technique that minimizes completion cost of the project.
False
Dependent demand inventory never needs hedge inventory.
False
Design collaboration is a typical customer relationship management application.
False
Distribution requirements planning is used to synchronize supply chain partners at the production activity control level.
False
From a revenue standpoint, a producer would rather have higher forecasted demand than booked orders.
False
If a company is capable of delivering the service time and again at a consistent level of quality it is said to have a high level of scalability.
False
If a job has a negative critical ratio then it must be early.
False
In a bill of material, a parent may have many children but a child may have only one parent.
False
In the kanban formula, the letter T represents the time it takes to empty a box of parts through building product.
False
Internal supply chain management is used to link higher level planning and location decision making with lower level activities within the same supply chain.
False
Key points in a project, such as when a major activity or phase is completed, are referred to as lodestones.
False
Material requirements planning is used to manage independent demand inventory.
False
Order quantity decisions are typically made in isolation from considerations of transportation, packaging, and material handling.
False
Since a JIT manufacturer has very little inventory, it is vital that all incoming parts receive a thorough inspection.
False
Since the booked orders figure represents actual customer demand in a master schedule, that value is always less than or equal to forecasted demand.
False
Some companies have found it beneficial to combine the planning capabilities of kanban with the control capabilities of MRP.
False
Companies employing the Lean philosophy use only kanban as a production control method.
False
Company B has no inventory at any level. They will need 145 Es to make 12 units of end item X.
False
A two-card kanban system is a planning tool that links production and movement of units at two work centers.
False
Activities on the critical path may have positive or negative slack as long as the overall slack time of the critical path is zero.
False
All information systems are computer-based.
False
All product development efforts directly benefit the consumer.
False
An example of black box design would be a producer of automotive brakes working at the design table with an automobile manufacturer through all phases of product development.
False
As the average demand rises, the standard deviation of demand falls.
False
Available to promise inventory is always zero for the first week in the master schedule record.
False
Business process modeling tools differ from business process management systems (BPMS) in that business process modeling tools are aimed at business process analysis and design and BPMS are used only to manage processes.
False
Buying advance tickets for the Giraffe Massacre concert on New Year's Eve saves the buyer one-tenth of one percent on the face value of the tickets. It would be wise to buy tickets well in advance of the concert date.
False
Companies can reduce the time and cost of developing new products and reduce the cost of final products by using parts standardization.
True
Companies do not plan to use safety stock.
True
The longer the production and supplier lead times, the longer the MRP record's planning horizon needs to be.
True
CAD systems allow engineers to develop, modify, share, and test designs in a virtual world.
True
A critical path is composed entirely of critical activities.
True
A forward pass through a network is used to determine the earliest start and finish times for each project activity.
True
A project is a one-time undertaking designed to achieve a particular organization goal.
True
A pull system is a production system in which actual downstream demand sets off a chain of events that pull material through various steps in the production process.
True
A reduction in inventory levels forces a company to improve manufacturing practices.
True
A target service level is the point where the expected cost of a shortage equals the expected cost of having excess units.
True
A unit that is not been sold or otherwise committed to any other customer should be considered available to promise.
True
An airline specifies a wider monitor for installation on their overseas flights. The airframe manufacturer will accommodate this order by issuing an engineering change.
True
An increase in the safety factor results in an increase in the amount of inventory in a kanban system.
True
The Guide to the Project Management Body of Knowledge (PMBOK®) is divided into two main parts, the various business processes that organizations follow in carrying out projects and the nine knowledge areas applicable to nearly all projects.
True
The bullwhip effect says that a small change in demand downstream in the supply chain causes a large change in demand upstream.
True
The cards employed in a two-card kanban system are the production card and the move card.
True
The earliest start time of an activity is dependent on the earliest finish time of its immediate predecessors.
True
