OPS Test #2
According to the text, what is the most common choice of limits for control charts?
+/- 3 standard deviations
Proximity in the location decision
-Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer. -Manufacturers want to be near customers when their product is bulky, heavy, or fragile. -Service organizations find that proximity to market is the most critical primary location factor.
Intangible costs include which of the following?
-quality of education -availability of public transportation -quality of prospective employees
Stepping Stone Method
1. Select unused square 2. Trace a closed path back to the original square via squares being used 3. Begin with a plus sign at
ISO 9000 increases quality through
1. Top management leadership 2. Customer satisfaction 3. continual improvement 4. involvement of people 5. process analysis 6. use of data driven decision making 7. a systems approach to management 8. mutually beneficial supplier relationships
A transportation problem has 8 origins and 6 destinations. The optimal solution of this problem will fill no more than ________ cells with quantities to be shipped.
13
A Six Sigma program has how many defects per million?
3.4
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:
Benchmarking
A successful TQM Program incorporates
Benchmarking, continuous improvement, JIT, employee involvement
Which of the following statements regarding "proximity" in the location decision is FALSE?
Clustering among fast food chains occurs because they need to be near their labor supply.
Just in time
Cuts cost of quality, improves quality, better quality means less inventory and a better, easier to employ JIT system
DMAIC
Defines projects purpose Measures the process and collects data Analyzes the data ensuring repeatability Improves by modifying or redesigning Controls
For the problem below, what is the quantity assigned to the cell Source 1-Destination 2 using the intuitive method for an initial feasible solution?
Demand =45 supply = 50 so answer=45
For the problem data set below, what is the northwest-corner allocation to the cell Source 1-Destination 1?
Demand=15
Northwest corner rule
Exhaust supply of each row before moving on to the next Exhaust the warehouse requirements of each column Check to ensure that all supplies and demands are met. TOTALLY IGNORES COST
A process that is in statistical control will always yield products that meet their design specifications.
False
A transportation problem requires exactly as many origins as destinations.
False
Neither the northwest-corner rule nor the intuitive method considers shipping cost in making initial allocations.
False
The purpose of process control is to detect when natural causes of variation are present.
False
The transportation method is a special case of the family of problems known as what?
Linear Programming problems
Intuitive method
Makes allocations based on lowest cost 1. Identify cell with lowest cost 2. Allocate as many units as possible to that cell 3. Find next lowest cost cell 4. Repeat
A fullminus−service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites.
Multiply all numbers by their weight and add them.
Degeneracy
Occurs when too few squares or shipping routes are being used
need to know for transportation modeling
Origin points and the capacity Destination points and demand Cost of shipping one unit
The process improvement technique that sorts the vital few from the trivial many is:
Pareto analysis.
Quality is free meaning that the costs of poor quality have been understated is the work of:
Philip B. Crosby
Cost of Quality
Prevention Costs Appraisal Costs Internal Failure Costs External Failure Costs
Transportation metric
Summarize all relevant data and to keep track of algorithm computations
A transportation problem has two origins: A can supply 20 units and B can supply 30 units. This problem has two destinations: C requires 25 units and D requires 35 units. Which of the following is true?
The problem will require a dummy supply with a capacity of 10 units.
Which of the following statements regarding "Six Sigma" is TRUE?
The term has two distinct meanings—one is statistical; the other is a comprehensive quality system.
Quality
The totality of characteristics and features of a product or service that bears on its ability to satisfy stated or implied needs.
The purpose of the transportation approach for location analysis is to minimize which of the following?
Total Shipping costs
A feasible solution in transportation models is one in which all of the supply and demand constraints are satisfied.
True
A transportation problem with a total supply of 500 and a total demand of 400 will have an optimal solution that leaves 100 units of supply unused.
True
Lists have been developed that rank countries on issues such as "competitiveness" and "corruption."
True
The transportation model is a special class of linear programming models.
True
Plots 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.
Traffic counts and purchasing power analysis of drawing area are techniques associated with:
a retail or professional service location decision.
Consumer's risk is the probability of:
accepting a bad lot.
A transportation problem has an optimal solution when:
all of the improvement indices are greater than or equal to zero.
The initial solution to a transportation problem can be generated several ways, so long as:
all supply and demand conditions are satisfied
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 an x-bar chart and an R-chart. This will give you mean and range.
A fishbone chart is also known as a:
cause-and-effect diagram
A regional bookstore chain wants to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis?
center-of-gravity method
A successful TQM program incorporates all EXCEPT which of the following?
centralized decision making authority
Geographic information systems can assist the location decision by
combining geography with demographic analysis.
Kaizen is a Japanese term meaning:
continuous improvement.
A location decision for an appliance manufacturer would tend to have what type of focus?
cost focus
The center-of-gravity method is used primarily to determine what type of locations?
distribution center locations
In transportation model analysis, the stepping-stone method is used to:
evaluate empty cells for potential solution improvements
Evaluating location alternatives by comparing their composite (weighted-average) scores involves which of the following?
factor-rating analysis
Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?
factor-rating method
Poka-yoke is the Japanese term for:
foolproof
The usual purpose of an R-chart is to signal whether there has been a:
gain or loss in dispersion.
Benefits of improved quality
increase productivity, lower rework, scrap, and warranty costs. Sales gains via improved response, flexible pricing, improved reputation
For a 3-sigma x-bar chart where the process standard deviation is known, the upper control limit:
is 3σ/SquareRoot n above the mean of sample means for a 3σ control chart.
The stepping-stone method:
is used to evaluate the cost effectiveness of shipping goods via transportation routes not currently in the solution.
Industrial location analysis typically attempts to:
minimize costs.
The transportation model, when applied to location analysis:
minimizes total production and transportation costs.
The causes of variation in statistical process control are:
natural causes and assignable causes.
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.
Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon?
political risk
Six Sigma
process product or service with an extremely high capability (99.99997%)
Which of these factors would be considered when making a location decision at the region/community level?
proximity to raw materials and customers
Which of the following is a location analysis technique typically employed by a service organization?
purchasing power analysis
Product Based quality
quality is a precise and measurable variable
According to the manufacturing-based definition of quality:
quality is the degree to which a specific product conforms to standards.
A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus?
revenue focus
Which of the following is NOT needed in order to use the transportation model?
the fixed costs of source points
Which of the following is NOT information needed for a transportation problem?
the set of origins and the demand at each origin
The northwest-corner rule is best used
to generate an initial feasible solution to a transportation problem.
In a minimization problem, a negative improvement index in a cell indicates that the
total cost will decrease if units are reallocated to that cell.
On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity where:
total costs are equal for two alternative locations.
Production and transportation costs are always considered in which of the following location decision methods?
transportation model
La Quinta Inns has a competitive edge over its rivals because it:
uses regression analysis to determine which variables most influence profitability.
