Operations Management - Exam 2
The efficiency of a productive unit is 60%. The unit produces an average of 20 forklift trucks per day. Determine the effective capacity of the unit.
33.33
The utilization of a machine is 50%. The machine has a design capacity of 70 units per hour and an effective capacity of 60 units per hour. Find the efficiency of the machine.
58.33
Given the following information, what would utilization be? Effective capacity = 20 units per day Design capacity = 60 units per day Actual output = 15 units per day A. 1/4 B. 1/3 C. 1/2 D. 3/4 E. none of these
A. 1/4
An investment proposal will have annual fixed costs of $60,000, variable costs of $35 per unit of output, and revenue of $55 per unit of output. (A) Determine the break-even quantity (B) What volume of output will be necessary for an annual profit of $60,000?
A. 3,000 B. 6,000
A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual fixed cost of $100,000 and variable costs of $22 per unit. Alternative B would have annual fixed costs of $120,000 and variable costs of $20 per unit. Alternative C would have fixed costs of $80,000 and variable costs of $30 per unit. Revenue is expected to be $50 per unit. (A) Which alternative has the lowest break-even quantity? (B) Which alternative will produce the highest profits for an annual output of 10,000 units? (C) Which alternative would require the lowest volume of output to generate an annual profit of $50,000?
A. 3,572 4,000 4,000 B. 180,000 180,000 120,000 C. 5,358 5,667 6,500
A job had an observed cycle time of four minutes, a performance rating of 80 percent, and an allowance factor that was 20 percent of job time. Normal time for the job in minutes is: A. 3.20 B. 3.84 C. 4.00 D. 4.80 E. 5.00
A. 3.20
A small business owner is contemplating the addition of another product line. Capacity increases and equipment will result in an increase in annual fixed costs of $50,000. Variable costs will be $25 per unit. A) What unit-selling price must the owner obtain to break-even on a volume of 2,500 units a year? B) Because of market conditions, the owner feels a revenue of $47 is preferred to the value determined in part A. What volume of output will be required to achieve a profit of $16,000 using this revenue?
A. 45 B. 3,000
Which closeness rating reflects the highest importance for two departments being close to each other? A. A B. E C. I D. U E. X Closeness ratings denoted "A" should be encouraged.
A. A (absolutely necessary) Closeness ratings denoted "A" should be encouraged.
Which one of these is a tool used to tell a machine the details of the operations to be performed? A. CNC B. CIM C. CAD D. CAM E. automation
A. CNC CNC stores and transmits instructions on operations that are to be performed.
One step that isn't part of service blueprinting is:
A. Eliminate boundaries for the service and decide on the level of interaction needed Defining boundaries is a critical part of service blueprinting.
The symbols for operation, storage, transportation, inspection, and delay would usually be found on which type of chart? A. Flow process B. Gantt C. Simultaneous motion D. Worker-machine E. Delay analysis
A. Flow process
Which of the following statements should not characterize an operations strategy toward the design of work systems? A. Manufacturing technology is the heart of a business. B. Workers can make or break a business. C. Workers can be a valuable source of insights. D. A spirit of cooperation can contribute to success. E. Workers can be proud and respected.
A. Manufacturing technology is the heart of a business.
Determining the number of cycles to observe is an element of _________. A. Stop watch time study. B. Standard elemental times. C. Predetermined time standards. D. Work sampling. E. MTM tables.
A. Stop watch time study.
The chart used to focus on busy and idle portions of a work cycle is a: A. Worker-machine chart B. Gantt chart C. SIMO-chart D. Idle chart E. Flow process chart
A. Worker-machine chart
Which of these items would be most likely to be made with a fixed position layout? A. a Boeing 777 jet aircraft B. applesauce C. a computer chip D. toothpaste E. all of these
A. a Boeing 777 jet aircraft A fixed position layout brings the process to the product.
Efficiency is defined as the ratio of: A. actual output to effective capacity B. actual output to design capacity C. design capacity to effective capacity D. effective capacity to actual output E. design capacity to actual output
A. actual output to effective capacity
The substitution of machinery that has sensing and control devices for human labor is best described by the term: A. automation B. feedback control C. computer-aided manufacturing D. computer-integrated manufacturing E. flexible manufacturing system
A. automation Automation involves the substitution of machinery that has sensing and control devices for human labor.
A product focused, single piece flow, pull production system would be called a: A. cellular layout B. job shop C. assembly line D. non-repetitive process E. continuous flow
A. cellular layout These are characteristics of cellular layouts.
Which of the following process types would be more likely to be used in the maturity phase of a product's life-cycle? A. continuous B. intermittent C. project D. batch E. job shop
A. continuous Continuous processes are more appropriate for highly standardized products in their maturity phase.
The type of processing system which is used for highly standardized products is: A. continuous B. intermittent C. project D. batch E. unit
A. continuous Continuous processing is for highly standardized products.
Which one of the following is not considered an important factor in service layout design? A. cost minimization and product flow B. frequency of orders C. customer attitude and image D. all are important E. none are important
A. cost minimization and product flow Service layout design is generally not all that focused on cost minimization.
The maximum allowable cycle time is computed as: A. daily operating time divided by the desired output B. desired output divided by the daily operating time C. daily operating time divided by the product of the desired output and the sum of job times D. the product of desired output and the sum of job times divided by daily operating time E. 1.00 minus station time
A. daily operating time divided by the desired output If this is smaller than the minimum cycle time, extra workstations will be necessary.
Which of the following is not a criterion for developing capacity alternatives? A. design structured, rigid systems B. take a big-picture approach to capacity changes C. prepare to deal with capacity in "chunks" D. attempt to smooth out capacity requirements E. identify the optimal operating level
A. design structured, rigid systems
What is it about repetitive processes that make them appropriate for products in the maturity phase of their life cycle? A. efficiency B. general-purpose technology C. possible variety D. low risk E. flexibility
A. efficiency
What is it about continuous processes that make them appropriate for products in the maturity phase of their life-cycle? A. efficiency B. general-purpose technology C. possible variety D. low risk E. flexibility
A. efficiency Continuous processes are more appropriate for mature products, when efficiency is of paramount importance.
The methods analysis chart which describes the overall sequence of operations, transportation, storage, delays, and inspection is a: A. flow process chart B. worker-machine chart C. gang process chart D. simultaneous-motion (SIMO) chart E. time/efficiency chart
A. flow process chart
Which of the following most closely describes job enlargement? A. horizontal loading B. increasing the level of responsibility associated with a job C. transferring workers through a series of jobs to increase their scope of experience D. increasing the amount of workspace assigned to a worker E. assigning two jobs to the same worker
A. horizontal loading
One way to increase reliability is to:
A. improve component design Another way is to add backup components.
What is the effect of an increase in the desired confidence level on the number of observations necessary in a time study? A. increases B. decreases C. unaffected D. may increase or decrease, depending on the sample standard deviation E. impossible to say without additional information
A. increases
The minimum possible cycle time in a product layout is determined by the: A. longest task time B. shortest task time C. average task time D. total task time E. none of the above
A. longest task time The longest task time represents the minimum cycle time.
In a stopwatch time study, the average time it takes a given worker to perform a task a certain number of times is the: A. observed time B. normal time C. standard time D. allowance time E. performance rating time
A. observed time
An example of automated services is A. on-line banking B. build your own pizza C. haircuts D. massage parlors E. all are examples of automated services
A. on-line banking On-line banking has almost no human to human interaction.
Which term is most closely associated with cellular manufacturing? A. part families B. assembly line C. robotics D. CAD E. CAM
A. part families Part families are central to cellular manufacturing.
The method of financial analysis which focuses on the length of time it takes to recover the initial cost of an investment is: A. payback B. net present value C. internal rate of return D. queuing E. cost-volume
A. payback
The type of layout which features departments or other functional groupings in which similar activities are performed is: A. process B. product C. fixed-position D. mass E. unit
A. process Process layouts group similar activities.
The impact that a significant change in capacity will have on a key vendor is a: A. supply chain factor B. process limiting factor C. internal factor D. human resource factor E. operational process factor
A. supply chain factor
A job had an observed time of 10 minutes, a performance rating of .90, and an allowance factor of 20 percent of job time. Twenty-five cycles were timed. Standard time for the job in minutes is: A. 10.0 B. 10.8 C. 12.5 D. 15.0 E. depends on the number of cycles observed
B. 10.8
Designing for recycling helps facilitate ______.
B. Compliance with regulatory environments Regulatory environments are increasingly focused on encouraging recycling.
Capacity planning decisions have both long-term and short-term considerations. Which of the following statements are true? (I) Long-term considerations relate to the overall level of capacity. (II) Short-term considerations relate to the probable variations in capacity requirements. (III) Short-term considerations determine the "effective capacity." A. Only one of the three statements is true. B. I and II C. II and III D. I and III E. All three statements are correct.
B. I and II
Which type of processing system tends to produce the most product variety? A. Assembly B. Job-Shop C. Batch D. Continuous E. Project
B. Job-Shop A Job-Shop provides low volume of high-variety goods.
"Must have", "expected" and "excitement" characteristics are categories in the ____ model.
B. Kano The Kano model is an alternative to "more is better" design approaches
Service design generally differs from product design in which of the following ways?
B. There is less latitude in detecting and correcting errors prior to delivery. Often service design flaws are not discovered until some customers have been served.
Which phrase most closely describes flexible manufacturing systems? A. a variation of CAD B. a more fully automated version of cellular manufacturing C. manufacturing resource planning D. a process layout with a manufacturing overlay E. an approach that allows workers to begin work at a time of their choosing
B. a more fully automated version of cellular manufacturing Flexible automation allows for greater variety within or across product families.
Utilization is defined as the ratio of: A. actual output to effective capacity B. actual output to design capacity C. design capacity to effective capacity D. effective capacity to actual output E. design capacity to actual output
B. actual output to design capacity
Production units have an optimal rate of output where: A. total costs are minimum B. average unit costs are minimum C. marginal costs are minimum D. rate of output is maximum E. total revenue is maximum
B. average unit costs are minimum
Which of the following is not a strategy to manage service capacity? A. hiring extra workers B. backordering C. pricing and promotion D. part time workers E. subcontracting
B. backordering
The grouping of equipment by the operations needed to perform similar work for part families is: A. product layout B. cellular manufacturing layout C. functional layout D. fixed-position layout E. process layout
B. cellular manufacturing layout Cellular layouts are organized around part families.
In the area of product and service design, the acronym CAD refers to:
B. computer aided design CAD can increase the productivity of product designers.
Mobile phones have evolved from devices intended to place and receive phone calls into handheld multimedia communications devices, but in the eyes of some customers these new features make the phones less desirable. This is an example of _________.
B. creeping featurism Customer satisfaction isn't strictly dependent on the number of features a product offers.
What will be the effect on sample size in work sampling of increasing the permissible maximum error? A. increase the number of observations needed B. decrease the number of observations needed C. no effect on sample size D. sometimes increase and sometimes decrease the sample size, depending on the analyst E. impossible to say without additional information
B. decrease the number of observations needed
Methods analysis and motion study techniques develop which aspect of jobs? A. behavioral aspects B. efficiency aspects C. pay levels D. all of the above E. none of the above
B. efficiency aspects
When determining the timing and degree of capacity change, one can use the approach of: A. lead time flexibility strategy B. expand early strategy C. wait-and-see strategy D. backordering E. delayed differentiation
B. expand early strategy
Although they do not guarantee optimal solutions, ______________ are useful in finding reasonable solutions when the number of possible options is overwhelming. A. cellular layouts B. heuristics C. logistics D. CAM E. CAD
B. heuristics Heuristics often provide workable solutions to complex problems.
In services, flowcharts are useful for ____________.
B. identifying and determining the sequence of customer and service actions and interactions The customer-service interaction is depicted using flowcharts.
One way to increase reliability is to:
B. improve preventive maintenance procedures Preventative maintenance leads to longer intervals between breakdowns.
Which is not a requirement for an effective team? A. talent and skills to meet goals B. one or more members representing supervision C. a system of reinforcement and celebration D. clearly stated and commonly held vision and goals E. effective and skilled interpersonal relations.
B. one or more members representing supervision
Daily capacity of a product layout is determined by: A. cycle time divided by operating time B. operating time divided by cycle time C. operating time divided by total task time D. total task time divided by cycle time E. cycle time divided by total task time
B. operating time divided by cycle time This represents how many units are possible per day.
Cellular layout is a term associated with: A. wireless telecommunication B. part families C. functional (or process) layouts D. assembly lines E. job shops
B. part families Part families are produced on cells.
A service organization (for example, a hospital) is likely to use a ________ layout because of variability in customer processing requirements. A. project B. process C. flow D. assembly E. non-repetitive
B. process A process layout is capable of providing more variety.
A formal way to document customer requirements is:
B. quality function deployment (QFD) QFD brings the voice of the customer into the design process.
Which of the following is not a reason for redesigning a product or service?
B. to increase the level of employee satisfaction A product or service redesign does not necessarily involve improving employee satisfaction.
At the break-even point: A. output equals capacity B. total cost equals total revenue C. total cost equals profit D. variable cost equals fixed cost E. variable cost equals total revenue
B. total cost equals total revenue
Asking a group of employees at a particular level to take on more responsibility is a form of ___________ loading, also known as job __________. A. horizontal; enlargement B. vertical; enrichment C. horizontal; enrichment D. horizontal; rotation E. vertical; rotation
B. vertical; enrichment
The technique which can be used to estimate the percentage of time a worker or piece of equipment is idle is known as: A. MTM B. work sampling C. methods analysis D. micro motion study E. none of these
B. work sampling
The methods analysis chart which describes the portions of a work cycle during which an operator and equipment are busy or idle is a: A. flow process chart B. worker-machine chart C. gang process chart D. simultaneous-motion (SIMO) chart E. time/efficiency chart
B. worker-machine chart
Which sample proportion will require the largest number of work sampling observations? A. .05 B. .25 C. .50 D. .75 E. .95
C. .50
A production line is to be designed for a job with three tasks. The task times are 0.3 minutes, 1.4 minutes, and 0.7 minutes. What is the minimum cycle time for this line? A. 0.3 minutes. B. 0.7 minutes. C. 1.4 minutes. D. 2.4 minutes. E. None of the above.
C. 1.4 minutes. The longest task time equals the minimum cycle time.
A job has a normal time of 12 minutes, a performance rating of .80, and an allowance factor of 20 percent of job time. The standard time for this job in minutes is: A. 11.52 B. 12 C. 14.4 D. 15 E. depends on the number of cycles observed
C. 14.4
A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load per meter moved. An analyst has prepared the following distances and flow matrices: Distances (meters): From/TO I II III I - 10 20 II - 10 III - Flows (loads per week: From/TO I II III X - 60 90 Y 40 - 160 Z 110 140 - What is the distance (in meters) from area III to area I in this new facility? A. 0 B. 10 C. 20 D. 30 E. 40
C. 20
An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of $70 per unit. The break-even point volume is: A. 100 B. 2,000 C. 500 D. 1,000 E. none of these
C. 500
Given the following information, what would efficiency be? Effective capacity = 50 units per day Design capacity = 100 units per day Actual output = 30 units per day A. 40% B. 50% C. 60% D. 80% E. 90%
C. 60%
Unbalanced systems are evidenced by A. Top heavy operations B. Labor unrest C. Bottleneck operations D. Increasing capacities E. Assembly lines
C. Bottleneck operations
One of these is not a characteristic of a well-designed service system:
C. Distributed computer networks Well-designed service systems tend to be user friendly, robust, cost-effective and easy to sustain.
The advantages of automation include: (I) Reduced output variability. (II) Reduced variable costs. (III) Machines don't strike or file grievances. (IV) Machines are always less expensive than human labor. A. I and IV B. II and III C. I, II, and III D. I and III E. II and IV
C. I, II, and III Machines can be more expensive than human labor.
Behavioral approaches to job design include: A. Specialization B. Ergonomics C. Job Rotation D. Flow Process Charts E. SIMO Charts
C. Job Rotation
Laser technology used in surgical procedures is an example of technological advances in: A. Product B. Service C. Process D. Information E. Reverse Engineering
C. Process Laser technology represents a change in the fundamental surgical process.
Incorporating design for disassembly (DFD) principles in product design helps firms with ___________ design issues.
C. Re-use Refurbished products must first be disassembled.
One form of long term team that is increasingly being used, especially in lean production settings, is: A. Quality circle B. Product Design C. Self-directed D. Self-improvement E. Mandatory
C. Self-directed
Which of the following is not a determinant of effective capacity? A. facilities B. product mix C. actual output D. human factors E. external factors
C. actual output
In work sampling, observations should be taken: A. at the same time each day B. within a short period of time C. at randomly determined times D. once every hour E. once every day
C. at randomly determined times
Elements of the service process in which there is little to no contact with the customer are referred to as ____________.
C. back-of-the-house Those elements involving substantial contact with the customer are referred to as "front-of-the-house" operations.
Capacity in excess of expected demand that is intended to offset uncertainty is a: A. margin protect B. line balance C. capacity cushion D. timing bubble E. none of the above
C. capacity cushion
The main issue in the design of process layouts for service operations concerns the relative positioning of: A. workstations. B. processing components. C. departments. D. entrances, loading docks, etc. E. manufacturing cells.
C. departments. In process layouts, departments and their relative locations are of primary concern.
The research and development activity which starts after positive research results are available and attempts to turn these results into useful commercial applications is:
C. development Development is the conversion of applied research into useful commercial applications.
If the output rate is increased but the average unit costs also increase we are experiencing: A. market share erosion. B. economies of scale. C. diseconomies of scale. D. value added accounting. E. step-function scale up.
C. diseconomies of scale.
A behavioral approach to job design which increases responsibility for planning and coordinating tasks is job: A. enlargement B. rotation C. enrichment D. involvement E. enhancement
C. enrichment
The type of layout in which workers, materials, and equipment are moved to the product as needed is: A. process B. product C. fixed-position D. batch E. mass
C. fixed-position The fixed position layout brings the processes to the product.
What is it about job shops that make them appropriate for products in the introductory phase of their life-cycle? A. efficiency B. technology C. flexibility D. high volume capacity E. rigidity
C. flexibility Job shop processes are more appropriate for relatively new products.
When the output is less than the optimal rate of output, the average unit cost will be: A. lower B. the same C. higher D. could be either higher or lower E. could be either higher, lower or the same
C. higher
When buying component parts, risk does not include: A. loss of control B. vendor viability C. interest rate fluctuations D. need to disclose proprietary information E. all are risk factors
C. interest rate fluctuations
The method of financial analysis which results in an equivalent interest rate is: A. payback B. net present value C. internal rate of return D. queuing E. cost-volume
C. internal rate of return
In a product layout, the task of deciding how to assign work to specific stations is referred to as: A. process balancing B. task allocation C. line balancing D. work allocation E. station balancing
C. line balancing Line balancing allocates work to work stations.
The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements is called: A. fair employment practices B. idle time analysis C. line balancing D. cycle time optimization E. none of the above
C. line balancing The goal is to reasonably balance work across the workstations.
A common goal in designing process layouts is: A. minimizing the number of workers B. minimizing idle time C. minimizing transportation costs D. maximizing work-station productive time E. maximizing transportation distances
C. minimizing transportation costs An efficient process layout minimizes transportation costs.
One possible disadvantage of modular design is that:
C. number of configurations of modules decreases Modular designs do have the effect of reducing variety.
Allowance percentages normally would not include: A. noise levels B. monotony C. personal phone calls D. weight lifted E. rest room allowances
C. personal phone calls
Seasonal variations are often easier to deal with in capacity planning than random variations because seasonal variations tend to be: A. smaller B. larger C. predictable D. controllable E. less frequent
C. predictable
The structural approach for integrating customer requirements into every aspect of product development is known as:
C. quality function deployment Quality Function Deployment brings the voice of the customer into the product development process.
The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas is called:
C. reverse engineering Reverse engineering can be a good source of ideas for product design.
Short-term considerations in determining capacity requirements include: A. demand trend B. cyclical demand variations C. seasonal demand variations D. mission statements E. new product development plans
C. seasonal demand variations
Job shops tend to be __________ while continuous processes tend to be __________. A. in services; in manufacturing B. short-term and capital intensive; long-term and labor intensive C. small scale and flexible; large-scale and inflexible D. standardized; customized E. low cost-per-unit; high cost-per-unit
C. small scale and flexible; large-scale and inflexible
In stopwatch time study, adjusting the normal time by an allowance factor for normal delays and interruptions results in the: A. observed time B. normal time C. standard time D. allowance time E. performance rating time
C. standard time
Layout design has many objectives, one of which is ______. A. reduce bottlenecks B. move materials and workers simultaneously C. use workers and space efficiently D. hold material handling costs to 27% or less E. install computer terminals every 500 feet
C. use workers and space efficiently Layout design is focused on the efficient placement of human and other assets.
A software company is weighing whether to release a new version of its software. The company can go ahead and release the version now and correct flaws with subsequent patches or upgrades, or it can wait until the new version is reasonably bug-free. This is an example of _____.
C. vaporware Vaporware is attractive from some perspectives but not from others
In the use of closeness ratings for process layouts, the code "U" means the closeness between two departments is: A. (U)nknown B. (U)nusually important C. of (U)sual importance D. (U)nimportant E. (U)ndesirable
D. (U)nimportant Close department pairings denoted "U" should be avoided.
A production line is to be designed for a job with three tasks. The task times are 0.4 minutes, 1.2 minutes, and 0.5 minutes. The maximum cycle time in minutes is: A. 0.3 B. 0.7 C. 1.4 D. 2.1 E. 0.8
D. 2.1 Add all task times
For fixed costs of $2,000, revenue per unit of $2, and variable cost per unit of $1.60, the break-even quantity is: A. 1,000 B. 1,250 C. 2,250 D. 5,000 E. none of these
D. 5,000
Given the following information, what would efficiency be? Effective capacity = 80 units per day Design capacity = 100 units per day Utilization = 48% A. 20% B. 35% C. 48% D. 60% E. 80%
D. 60%
A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load per meter moved. An analyst has prepared the following distances and flow matrices: Distances (meters): From/TO I II III I - 10 20 II - 10 III - Flows (loads per week: From/TO I II III X - 60 90 Y 40 - 160 Z 110 140 - If departments X, Y, and Z were to be located in areas I, II, and III, respectively, what would be the total distance (in meters) loads would be moved each week? A. 4,000 B. 4,500 C. 7,000 D. 8,000 E. 9,000
D. 8,000
In which type of processing system would gasoline be produced from crude oil? A. Job Shop B. Batch C. Assembly D. Continuous E. Project
D. Continuous Oil refining is an example of a continuous process.
A disadvantage of global teams for product design is that:
D. Ease of face to face meetings is absent since members are located everywhere If face to face interaction is required, global design teams might not be a viable option.
The chart used to review the overall sequence of an operation by focusing on either the movements of the operator or materials is called a __________. A. SIMO-chart B. Gantt chart C. Worker-materials chart D. Flow process chart E. Multi-activity chart
D. Flow process chart
Heuristic rules are used primarily in which of these types of layouts? (I) Product (II) Process (III) Fixed-position A. I B. II C. I and III D. I and II E. II and III
D. I and II Heuristics help in formulating reasonably good product and process layouts.
The advantages of standardization include which of the following? (I.) The opportunity to freeze design at a very early stage (II.) Fewer parts to deal with in inventory (III.) Reduced training cost and time (IV.) Purchasing is more routine
D. II, III, IV Standardization doesn't necessarily help in freezing designs early.
Layout planning is required because of: (I) Efficient operations (II) Accidents or safety hazards (III) New products or services (IV) Morale problems A. I and II B. II and IV C. I and III D. II, III, and IV E. I, II, III, and IV
D. II, III, and IV A number of factors affect layout planning.
Which of the following is not true about re-manufacturing?
D. It produces high quality products easily. Re-manufacturing can be a very difficult and costly process.
A SIMO chart includes: A. Delay B. Storage C. Transportation D. Left/Right hand movements E. Inspection
D. Left/Right hand movements
Outsourcing some production is a means of _________ a capacity constraint. A. Identifying B. Modifying C. Supporting D. Overcoming E. Repeating
D. Overcoming
Process chart symbols don't include _________. A. Delay B. Inspection C. Operation D. Rejection E. Storage
D. Rejection
Which closeness rating reflects indifference on the nearness or lack of nearness of two departments? A. A B. E C. I D. U E. X
D. U Closeness ratings denoted "U" are neither desirable nor undesirable.
Heuristic rules are usually applied when: A. an optimum is necessary B. a computer program isn't available C. a problem has a small number of alternatives D. a problem has a large number of alternatives E. other approaches have failed
D. a problem has a large number of alternatives As the number of alternatives grows, the use of heuristics becomes more attractive.
Which one of the following is not common to product layouts? A. a high rate of output B. specialization of labor C. low unit costs D. ability to adjust to changes in demand E. all are common
D. ability to adjust to changes in demand Product layouts are not flexible with respect to volume.
A basic question in capacity planning is: A. what kind is needed B. how much is needed C. when is it needed D. all of the above E. none of the above
D. all of the above
In a stopwatch time study, the number of cycles that must be timed is a function of: A. the variability of observed times B. the desired accuracy for the estimated job time C. the desired confidence for the estimated job time D. all of the above E. none of the above
D. all of the above
The design of work systems involves: A. work measurement B. job design C. compensation D. all of the above E. use of outside human resource consultants
D. all of the above
Which of the following is the case where capacity is measured in terms of inputs? A. hospital B. theater C. restaurant D. all of the above E. none of the above
D. all of the above
Which of the following is a primary concern for process selection? A. variety in products/services B. flexibility of equipment C. volume of output D. all of the above E. none of the above
D. all of the above All of these enter into the process selection decision.
In methods analysis, a "therblig" is a: A. charting method of analysis B. job enrichment technique C. dummy task D. basic elemental motion E. fraction (.0006) of a minute
D. basic elemental motion
The term 'degrees of newness' is associated with:
D. degree of design change Superficial design changes are low in 'degrees of newness.
The maximum possible output given a product mix, scheduling difficulties, quality factors, and so on, is: A. utilization B. design capacity C. efficiency D. effective capacity E. available capacity
D. effective capacity
The ratio of actual output to effective capacity is: A. design capacity B. effective capacity C. actual capacity D. efficiency E. utilization
D. efficiency
An operations strategy for process selection should recognize that: A. process selection seldom requires technical expertise B. engineering "white elephants" are uncommon C. there is little need to manage technology D. flexibility is not always the best choice E. most technical skills can be contracted out to consultants
D. flexibility is not always the best choice Flexibility isn't so valuable if efficiency is at a premium.
Which of the following is not a potential benefit of the use of self-directed teams? A. higher quality B. higher productivity C. greater worker satisfaction D. greater satisfaction for middle managers E. lower turnover
D. greater satisfaction for middle managers
Which of the following is not generally considered an advantage of specialization? A. high productivity B. low wage costs C. ease of training employees D. low equipment costs E. all are advantages
D. low equipment costs
When performing a time study, the analyst converts the observed time into the time an "average" worker would require working at an acceptable pace by using which of the following? A. allowance factors B. MTM C. methods analysis D. performance rating E. analysis of therbligs
D. performance rating
Products or services with a high degree of similarity of features and components are called:
D. product family's Delineating product families helps lead to component commonality.
A major advantage of job specialization in business is increased __________. A. motivation B. opportunity for advancement C. opportunity for self-fulfillment D. productivity E. job enrichment
D. productivity
Maximum capacity refers to the upper limit of: A. inventories B. demand C. supplies D. rate of output E. finances
D. rate of output
The benefits of flexible manufacturing systems (FMS) include: A. reduced labor costs B. higher flexibility than automation C. quick changeover from part to part D. significantly lower unit costs E. all of the above
D. significantly lower unit costs Reduced labor costs and consistent quality and quick changeover time provide lower unit costs.
The methods analysis chart which describes the movements of both hands at the same time is a: A. flow process chart B. worker-machine chart C. gang process chart D. simultaneous-motion (SIMO) chart E. time/efficiency chart
D. simultaneous-motion (SIMO) chart
A disadvantage of teams is: A. higher quality B. higher productivity C. greater worker satisfaction D. team member conflict E. lower turnover
D. team member conflict
Which one of the following is not a factor of successful product and service design?
D. use computerized design techniques Computerized design techniques don't necessarily lead to successful product and service design.
Which of the following is not a characteristic of layout decisions in system design? A. substantial investment of both money and effort B. long-term commitment C. significant impact on short-term efficiency D. usually well-received by operative personnel E. all of the above
D. usually well-received by operative personnel Layout decisions can lead to conflict from those who are affected by them.
Which of the following concerns is not one that job designers focus on? A. what will be done in a job B. who will do the job C. how the job will be done D. when should the job be completed E. where the job will be done
D. when should the job be completed
If a line is balanced with 90 percent efficiency, the "balance delay" will be: A. 20 percent B. depends on the next operation C. 80 percent D. unknown, since balance delay is not related to efficiency E. 10 percent
E. 10 percent
A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load per meter moved. An analyst has prepared the following distances and flow matrices: Distances (meters): From/TO I II III I - 10 20 II - 10 III - Flows (loads per week: From/TO I II III X - 60 90 Y 40 - 160 Z 110 140 - What is the total flow (loads per week) between department Y and department Z? A. 140 B. 160 C. 200 D. 250 E. 300
E. 300
What is the break-even quantity for the following situation? FC = $1,200 per week VC = $2 per unit Rev = $6 per unit A. 100 B. 200 C. 600 D. 1,200 E. 300
E. 300
The goal of value analysis is to find ways of _______. A. I. Reducing the cost of parts and materials B. II. Improving the performance of the product or service C. III. Incorporating multiple cultural values in global system design D. Both I and III E. Both I and II
E. Both I and II In value analysis an attempt is made to reduce the cost and/or improve the performance of the product.
Which of the following is not an approach that companies use to achieve a smooth flow of production? A. line balancing heuristics B. parallel workstations C. dynamic line balancing (Cross train workers) D. mixed model line E. Companies use all of these.
E. Companies use all of these. Any of these is a means to achieve smooth flow.
Which of the following are assumptions of the break-even model? I. Only one product is involved. II. Everything that is produced can be sold. III. The revenue per unit will be the same regardless of volume. A. I only B. I and II only C. II only D. II and III only E. I, II and III
E. I, II and III
Which of the following is not an advantage of work sampling compared to stopwatch time study? A. There is little or no disruption of work. B. It is less susceptible to short-term fluctuations. C. Workers are less resentful. D. It is less costly and less time-consuming. E. It is better suited for short, repetitive tasks.
E. It is better suited for short, repetitive tasks.
Which of the following statements about CAD is not true?
E. It is used successfully by all manufacturing companies. Not all manufacturers use CAD.
When considering re-use issues for a given product, an important factor to take into account is that product's _______.
E. None of the above Remanufacturing refers to refurbishing used products.
Product profiling links key product or service requirements to: A. Market conditions B. Order sizes C. Pricing strategies D. Schedule changes E. Process capabilities
E. Process capabilities Product profiling allows firms to match what they should (or must) do with respect to product or service requirements.
Which closeness rating reflects the undesirability of having two departments located near each other? A. A B. E C. I D. U E. X
E. X Undesirable
A group of machines including supervisory computer control, automatic material handling, and possibly robots is called: A. computer aided design B. a manufacturing cell C. computer-aided manufacturing D. computer-integrated manufacturing E. a flexible manufacturing system
E. a flexible manufacturing system FMS involve all these things.
Which of the following is not an information requirement for the design of a process layout? A. a list of departments or work centers B. a projection of work flows between the work centers C. the distance between locations D. the cost per unit of distance to move loads E. a list of product cycle times for every product manufactured
E. a list of product cycle times for every product manufactured Cycle times do not enter into the design of process layouts.
A reason for the importance of capacity decisions is that capacity: A. limits the rate of output possible B. affects operating costs C. is a major determinant of initial costs D. is a long-term commitment of resources E. all of the above
E. all of the above
Which of the following is a factor that affects service capacity planning? A. the need to be near customers B. the inability to store services C. the degree of volatility of demand D. the customer's willingness to wait E. all of the above
E. all of the above
Which of the following is a tactic that helps service capacity management? A. pricing B. promotions C. discounts D. advertising E. all of the above
E. all of the above
An advantage of a U-shaped production line is that it: A. is more compact. B. permits better communication among employees. C. facilitates teamwork among workers. D. increases flexibility of work assignments. E. all of the above
E. all of the above All of these are advantages of U-shaped lines.
Ideas for new or improved designs can come from:
E. all of the above Companies look to many sources for ideas for new or improved designs.
Which of the following is an issue that designers must take into account in product and service design?
E. all of the above Designs must reflect a large number of factors.
Which of these factors would not be subtracted from design capacity when calculating effective capacity? A. personal time B. maintenance C. scrap D. operating hours per day E. all of the above would be subtracted in the calculation
E. all of the above would be subtracted in the calculation
In which type of operations are you likely to see, at most, only minor variations in the product or service being produced using the same process and the same equipment? A. a project B. a job shop C. repetitive production D. batch processing E. continuous production
E. continuous production In continuous production there is no variation in the product or service being produced.
The term 'standardization' is closely associated with:
E. interchangeability Modular designs depend on standardized parts that are interchangeable.
Which of the following process types would be more likely to be used in the introductory phase of a product's life-cycle? A. continuous B. intermittent C. project D. batch E. job shop
E. job shop Job shop processes are more appropriate for relatively new products.
Which of the following is not characteristic of time-based compensation plans? A. stable labor costs B. easier to administer than output-based plans C. stable pay for workers D. simpler wage computations than output-based plans E. lower cost per unit than output-based plans
E. lower cost per unit than output-based plans
Which of the following is not true about process layouts when they are compared to product layouts? A. higher in-process inventories B. lower span of supervision C. lower rates of output D. more involved cost accounting E. lower unit costs
E. lower unit costs Process layouts are not inherently more efficient that product layouts.
Which of the following is not one of the phases of product design and development?
E. performance applied research Product design and development begins after applied research has been done.
Computer-aided manufacturing (CAM) refers to the use of computers in: A. product design B. decision making C. data analysis D. quality control E. process control
E. process control CAM automates process control.
If there is a good chance that one or a few employees could wind up in monotonous jobs, job __________ can be a good idea. A. alteration B. expansion C. enrichment D. enlargement E. rotation
E. rotation
Standard times derived from a firm's historical data are known as: A. predetermined times B. MTM C. work sampling times D. judgmental times E. standard elemental times
E. standard elemental times
Which of the following is not a process commonly considered in making products or delivering services? A. continuous B. batch C. repetitive D. job shop E. subcontracting
E. subcontracting Subcontracting isn't a process type.
The ratio of actual output to design capacity is: A. design capacity B. effective capacity C. actual capacity D. efficiency E. utilization
E. utilization
A technique for estimating the proportion of time a worker spends on various activities is: A. stopwatch time study B. standard elemental (historical) times C. simultaneous motion study D. predetermined (published) time standards E. work sampling
E. work sampling
