Review scm *

7) Which of the following is not a type of qualitative forecasting? A) jury of executive opinion B) sales force composite C) market survey D) Delphi method E) moving average

E) moving average

9) Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labor productivity will increase by: A) 10%. B) 20%. C) 25%. D) 40%. E) 50%.

. C) 25%.

16) A Six Sigma program has how many defects per million? A) 3.4 B) 34 C) 1000 D) 6 times the standard deviation E) 2700

A) 3.4

A restaurant kitchen contains a wall poster that shows, for each sandwich on the menu, a sketch of the ingredients and how they are arranged to make the sandwich. This is an example of A) Assembly drawing B) Route sheet C) Bill of material D) Work order E) Assembly chart

A) Assembly drawing

13) PDCA, developed by Shewhart, stands for which of the following? A) Plan-Do-Check-Act B) Plan-Develop-Check-Accept C) Problem-Develop Solution-Check-Act D) Problem-Do-Continue-Act E) Prepare-Develop-Create-Assess

A) Plan-Do-Check-Act

Three major elements of product decision are? A) Selection, definition and design B) Goods, services and hybrids C) Strategy, tactics and operations D) Cost, differentiation and speed of response E) Legislative, judicial and executive

A) Selection, definition and design

8) A simple CPM network has three activities, D, E, and F. D is an immediate predecessor of E and of F. E is an immediate predecessor of F. The activity durations are D=4, E=3, F=8. A) The critical path is D-E-F, duration 15. B) The critical path is D-F, duration 12. C) Slack at D is 3 periods. D) Slack at E is 3 periods. E) Both A and C are true.

A) The critical path is D-E-F, duration 15.

7) 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. This manager is most likely using: A) a Pareto chart. B) a scatter diagram. C) a quality loss function. D) a cause-and-effect diagram. E) a flowchart.

A) a Pareto chart.

7) Which of the following tasks within an airline company are related to operations? A) crew scheduling B) international monetary exchange C) sales D) advertising E) accounts payable

A) crew scheduling

8) Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements? A) flexible pricing B) increased productivity C) lower rework and scrap costs D) lower warranty costs E) All of the above are aspects of reduced costs by quality improvements.

A) flexible pricing

16) The term maquiladora is most synonymous with: A) free trade zones in Mexico. B) Chinese forced labor camps. C) home-based or cottage industry. D) areas that do not meet U.S. standards for workplace safety and pollution. E) tax breaks provided by some South American countries to other South American countries.

A) free trade zones in Mexico.

19) Which time-series model below assumes that demand in the next period will be equal to the most recent period's demand? A) naïve approach B) moving average approach C) weighted moving average approach D) exponential smoothing approach E) trend projection

A) naïve approach

4) The two general approaches to forecasting are: A) qualitative and quantitative. B) mathematical and statistical. C) judgmental and qualitative. D) historical and associative. E) judgmental and associative.

A) qualitative and quantitative.

29) Costs of dissatisfaction, repair costs, and decreased future demand are elements of cost in the: A) quality loss function. B) Pareto chart. C) ISO 9000 quality cost calculator. D) process chart. E) Ishikawa diagram.

A) quality loss function.

6) Forecasts are usually classified by time horizon into which three categories? A) short-range, medium-range, and long-range B) finance/accounting, marketing, and operations C) strategic, tactical, and operational D) exponential smoothing, regression, and time series E) departmental, organizational, and industrial

A) short-range, medium-range, and long-range

12) Franz Colruyt has achieved low-cost leadership through: A) effective use of voice mail. B) plastic, not paper, shopping bags. C) background music that subtly encourages shoppers to buy more. D) converting factories, garages, and theaters into retail outlets. E) exclusive use of the Euro.

D) converting factories, garages, and theaters into retail outlets.

43) If Brandon Edward were working to develop a forecast using a moving averages approach, but he noticed a detectable trend in the historical data, he should: A) use weights to place more emphasis on recent data. B) use weights to minimize the importance of the trend. C) change to an associative multiple regression approach. D) use a simple moving average. E) change to a qualitative approach.

A) use weights to place more emphasis on recent data.

20) John's House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5 to the previous month's demand, 3 to demand two months ago, and 1 to demand three months ago. If sales amounted to 1000 pancakes in May, 2200 pancakes in June, and 3000 pancakes in July, what should be the forecast for August? A) 2400 B) 2511 C) 2067 D) 3767 E) 1622

B) 2511

15) The critical path for the network activities shown below is ________ with duration ________. Activity Duration Immediate Predecessors A 10 --- B 8 --- C 2 A D 4 A E 5 B,C, D A) A-C; 12 B) A-D-E; 19 C) B-E; 13 D) A-B-C-D-E; 29 E) none of the above *******fix

B) A-D-E; 19

6) Which of the following statements best characterizes delivery reliability? A) a company that always delivers on the same day of the week B) a company that always delivers at the promised time C) a company that delivers more frequently than its competitors D) a company that delivers faster than its competitors E) a company that has a computerized delivery scheduling system

B) a company that always delivers at the promised time

7) "Quality lies in the eyes of the beholder" is: A) an unrealistic definition of quality. B) a user-based definition of quality. C) a manufacturing-based definition of quality. D) a product-based definition of quality. E) the definition of quality proposed by the American Society for Quality.

B) a user-based definition of quality.

6) According to the authors, which of the following strategic concepts allow firms to achieve their missions? A) productivity, efficiency, and quality leadership B) differentiation, cost leadership, and response C) differentiation, quality leadership, and response D) distinctive competency, cost leadership, and experience E) differentiation, distinctive competency, quality leadership, and capacity

B) differentiation, cost leadership, and response

x4) Which of the following fosters specialization and worldwide supply chains? A) more expensive transportation B) instant communication C) economies of scope D) managers with a broad knowledge of many things E) high trade tariffs

B) instant communication

21) With reference to cultural and ethical issues, the World Trade Organization has: A) eliminated bribery. B) made progress in providing equal protection of intellectual property among nations. C) phased out all trade and tariff barriers between the United States and Mexico. D) eliminated slave labor and child labor. E) played little role in addressing cultural and ethical issues among nations.

B) made progress in providing equal protection of intellectual property among nations.

15) Which of the following is not present in a time series? A) seasonality B) operational variations C) trend D) cycles E) random variations

B) operational variations

x13) Which of the following is NOT a strategic operations management decision? A) maintenance B) price C) layout design D) quality E) inventory

B) price

13) Productivity measurement is complicated by: A) the competition's output. B) the fact that precise units of measure are often unavailable. C) stable quality. D) the workforce size. E) the type of equipment used.

B) the fact that precise units of measure are often unavailable. C) stable quality.

13) Which of the following is an example of competing on quick response? A) A firm produces its product with less raw material waste than its competitors do. B) A firm offers more reliable products than its competitors do. C) A firm's products are introduced into the market faster than its competitors' products. D) A firm utilizes its capacity more effectively than its competitors do. E) A firm advertises more than its competitors do.

C) A firm's products are introduced into the market faster than its competitors' products.

2) Which of the following statements about challenges in operations management is FALSE? A) Job specialization is giving way to empowered employees. B) Local or national focus is giving way to global focus. C) Sustainable production is giving way to a low-cost focus. D) Rapid product development is partly the result of shorter product cycles. E) The goal of mass customization is to produce customized products, whenever and wherever needed.

C) Sustainable production is giving way to a low-cost focus.

11) Activity R on a CPM network has predecessors M and N, and has successor S. R has duration 5. N's late finish is 18, while M's is 20. S's late start is 14. Which of the following is definitely true? A) R is critical and has zero slack. B) R has no slack but is not critical. C) The set of times cannot all be possible. D) N is a critical activity. E) S is a critical activity.

C) The set of times cannot all be possible.

10) The beta distribution is used in project management to: A) determine which activity should be crashed. B) calculate the probability that a project will be completed within its budget. C) calculate expected activity times. D) calculate slack for activities on the critical path. E) none of the above

C) calculate expected activity times.

36) For a given product demand, the time-series trend equation is 53 - 4x. The negative sign on the slope of the equation: A) is a mathematical impossibility. B) is an indication that the forecast is biased, with forecast values lower than actual values. C) is an indication that product demand is declining. D) implies that the coefficient of determination will also be negative. E) implies that the cumulative error will be negative.

C) is an indication that product demand is declining.

3) What is a global network of organizations and activities that supply a firm with goods and services? A) supply tree B) provider network C) supply chain D) vendor network E) vendor tree

C) supply chain

x6) An operations manager is NOT likely to be involved in: A) the design of goods and services to satisfy customers' wants and needs. B) the quality of goods and services to satisfy customers' wants and needs. C) the identification of customers' wants and needs. D) work scheduling to meet the due dates promised to customers. E) maintenance schedules.

C) the identification of customers' wants and needs.

4) Which of the international operations strategies involves high cost reductions and high local responsiveness? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) worldwide strategy

C) transnational strategy

26) Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast? A) 0 B) 1 divided by the number of periods C) 0.5 D) 1.0 E) cannot be determined

D) 1.0

18) What is the forecast for May using a four-month moving average? Nov. Dec. Jan. Feb. Mar. April 39 36 40 42 48 46 A) 38 B) 42 C) 43 D) 44 E) 47

D) 44

5) The service sector makes up approximately what percentage of all jobs in the United States? A) 12% B) 40% C) 66% D) 85% E) 94%

D) 85%

The Japanese method of organizing for product design features A) Teams B) Product managers(champions) C) Distinct departments with assigned tasks. D) A single organization without subdivision or individual teams E) None of the above

D) A single organization without subdivision or individual teams

6) Which of the following is NOT part of value-chain analysis? A) product research B) quality management C) supply chain management D) Marketing (project management?) E) human resources

D) Marketing (project management?)

9) Who among the following is associated with contributions to quality control in operations management? A) Charles Babbage B) Henry Ford C) Frank Gilbreth D) W. Edwards Deming E) Henri Fayol

D) W. Edwards Deming

6) Which of the following is NOT one of the phases of project management? A) planning B) scheduling C) controlling D) budgeting E) All of the above are project management phases.

D) budgeting

6) The degree or strength of a relationship between two variables is shown by the: A) alpha. B) mean. C) mean absolute deviation. D) coefficient of correlation. E) cumulative error.

D) coefficient of correlation.

The marketing function is concerned with: A) producing goods or providing services. B) procuring materials, supplies, and equipment. C) building and maintaining a positive image. D) generating the demand for the organization's products or services. E) securing monetary resources.

D) generating the demand for the organization's products or services.

Which of the following are the primary functions of all organizations? A) production/operations, marketing, and human resources B) marketing, human resources, and finance/accounting C) sales, quality control, and production/operations D) marketing, production/operations, and finance/accounting E) research and development, finance/accounting, and purchasing

D) marketing, production/operations, and finance/accounting

x9) Which of the following is NOT one of the 10 strategic operations management decisions? A) layout strategy B) maintenance C) process and capacity design D) mass customization E) supply chain management

D) mass customization

5) Eli Whitney, in the ________, provided the foundations for ________ in operations management. A) 1920s; statistical sampling B) United Kingdom; mass production C) U.S. Army; logistics D) nineteenth century; interchangeable parts E) 1890s; queuing theory

D) nineteenth century; interchangeable parts

7) What is the practice of transferring a firm's activities that have traditionally been internal to external suppliers? A) nearshoring B) farshoring C) offshoring D) outsourcing E) backsourcing

D) outsourcing

x5) Which of the following is NOT an element of the management process? A) controlling B) leading C) planning D) pricing E) staffing

D) pricing

x3) Walter Shewhart is listed among the important people of operations management because of his contributions to: A) assembly line production. B) measuring productivity in the service sector. C) just-in-time inventory methods. D) statistical quality control. E) information technology.

D) statistical quality control

11) WBS stands for which of the following project management tools? A) work break schedule B) work breakdown status C) work breakdown schedule D) work breakdown structure E) work break status

D) work breakdown structure

x2) Reasons to study operations management include: A) studying how people organize themselves for productive enterprise. B) knowing how goods and services are consumed. C) understanding what human resource managers do. D) learning about a costly part of the enterprise. E) A and D

E) A and D

Operations managers must be able to anticipate changes in which of the following A) Product mix B) Product opportunities C) The products themselves D) Product volumes E) All of the above

E) All of the above

11) Which of the following statements regarding the Dreamliner 787 is true? A) Boeing has found partners in over a dozen countries. B) The new aircraft incorporates a wide range of aerospace technologies. C) The new aircraft uses engines from not one, but two manufacturers. D) Boeing will add only 20 to 30 percent of the aircraft's value. E) All of the above are true.

E) All of the above are true

A strategy is a(n): A) set of opportunities in the marketplace. B) broad statement of purpose. C) simulation used to test various product line options. D) plan for cost reduction. E) action plan to achieve the mission.

E) action plan to achieve the mission.

18) Which of the following represents a reason for globalizing operations? A) to improve the supply chain B) to improve operations C) to expand a product's life cycle D) to attract and retain global talent E) all of the above

E) all of the above

3) The control of projects involves close monitoring of which of the following? A) resources B) costs C) quality D) budgets E) all of the above

E) all of the above

15) Multinational organizations can shop from country to country and cut costs through: A) lower wage scales. B) lower indirect costs. C) less stringent regulations. D) lower taxes and tariffs. E) all of the above.

E) all of the above.

8) Ethical issues that may arise in projects large and small include: A) gifts from contractors. B) exaggerated expense reports. C) compromised quality standards to meet bonuses or avoid penalties related to schedules. D) pressure to mask delays with false status reports. E) all of the above.

E) all of the above.

11) The philosophy of zero defects is: A) the result of Deming's research. B) unrealistic. C) prohibitively costly. D) an ultimate goal; in practice, 1 to 2% defects is acceptable. E) consistent with the commitment to continuous improvement.

E) consistent with the commitment to continuous improvement.

23) Kaizen is a Japanese term meaning: A) a foolproof mechanism. B) just-in-time (JIT). C) a fishbone diagram. D) setting standards. E) continuous improvement.

E) continuous improvement.

12) All of the following costs are likely to decrease as a result of better quality EXCEPT: A) customer dissatisfaction costs. B) inspection costs. C) scrap costs. D) warranty and service costs. E) maintenance costs.

E) maintenance costs.

Which of the following is TRUE regarding computer-aided design a) It is too expensive to use in most manufacturing and design settings b) It is an obsolete technology c) It results in longer development cycles for virtually all products d) It is the use of computers to interactively design products and prepare engineering documentation e) It is the use of information technology to control machinery

d) It is the use of computers to interactively design products and prepare engineering documentation

An operations task performed at Hard Rock Café is a. borrowing funds to build a new restaurant b. advertising changes in the restaurant menu c. calculating restaurant profit and loss d. preparing employee schedules e. all of the above

d. preparing employee schedules