Operations & Supply Management wStudent DVD Rom (McGraw-Hill/Irwin Series Operations and Decision Sciences) 12th Edition

In a two-bin system for inventory, items are used from one bin and the second bin provides a large enough amount to ensure that the stock can be replenished before running out. Answer: TRUE TRUE TRUE A key decision point in the generic development process during "Phase 4: Testing and refinement" is concept approval.

CPM is an abbreviation for Critical Path Method. Answer: TRUE TRUE TRUE In Japan we would expect a focused factory to be small and have only somewhere between 30 and 1,000 workers. Answer: TRUE TRUE TRUE Heijunka is a Japanese word that means to smooth the production flow. Answer: TRUE TRUE TRUE Poka-Yokes are procedures that block the inevitable mistake from becoming

MRP provides the schedule specifying when each part and component of an end item should be ordered or produced. Answer: TRUE TRUE TRUE Independent demand is the demand for a product or service caused by the demand for other products or services. Answer: FALSE FALSE FALSE Outsourcing allows a firm to achieve an improved focus on its core

Finding the optimal combination of products to stock in a retail store cannot be solved using linear programming. Answer: FALSE FALSE FALSE A business education is complete with an understanding of modern approaches to managing operations. Answer: FALSE FALSE FALSE One form of gap analysis used in operations consulting is benchmarking particular client company processes against firms which

The Poisson probability distribution is used in waiting line management when we are interested in the number of arrivals to a queue during some fixed time period. Answer: TRUE TRUE TRUE In order to develop the random number intervals for a simulation study we need to know the probability distributions in the situation to

The aggregate operations plan differs in virtually every aspect in service operations as contrasted with manufacturing operations. Answer: FALSE FALSE FALSE Expected value is the anticipated selling price of a fixed asset, like corporate real estate. Answer: FALSE FALSE FALSE Activity-system maps are useful in understanding how well a system of activities fits the overall company's strategy. Answer: TRUE TRUE TRUE Studies show

The "Z" value used to calculate the probabilities in CPM analysis is based on the Beta probability distribution. Answer: FALSE FALSE FALSE Attributes are those quality characteristics that are classified as either conforming or not conforming to specifications. Answer: TRUE TRUE TRUE Implementing ERP may require major changes in the way a company is run. Answer: TRUE TRUE TRUE Minimizing the amount of

The demand on a hospital's emergency medical services is considered an uncontrollable arrival pattern of the calling population. Answer: TRUE TRUE TRUE A synchronous manufacturing system does not have excess capacity throughout the system, except for a bottleneck. Answer: FALSE FALSE FALSE A department of 25 machines is kept running by three operators who respond to randomly occurring equipment

Finding the optimal routing for a product that must be processed sequentially through several machine centers, with each machine in a center having its own cost and output characteristics cannot be solved using linear programming. Answer: FALSE FALSE FALSE Make-to-stock production processes can easily handle requests for customized product features. Answer: FALSE FALSE FALSE Outsourcing is the act

A responsibility chart is used in operations consulting in planning the task responsibilities for a project. Answer: TRUE TRUE TRUE Breakthrough projects are those that provide fundamental improvements to existing products. Answer: FALSE FALSE FALSE Computer aided manufacturing has not been widely adopted because newer and better software versions are consistently seen as being "just around the corner".

Maximum practical capacity is defined by the federal Bureau of Economic Analysis as "That output obtained within the normal operating schedule of shifts per day and days per week excluding the use of high-cost and inefficient facilities". Answer: FALSE FALSE FALSE The most common production management tools used in planning and designing the process

MRP is based on dependent demand. Answer: TRUE TRUE TRUE One methodology used to evaluate equipment investment decisions where the investment entails a large initial investment, fixed costs and variable costs is break-even analysis. Answer: TRUE TRUE TRUE Which of the following statements holdsTRUE for Kanban production control systems? A.The authority to produce or supply additional parts comes from upstream

One of the implementation tools from the operations consulting tool kit is the responsibility chart. Answer: TRUE TRUE TRUE Process control is concerned with monitoring quality after the product or service has been produced. Answer: FALSE FALSE FALSE The smaller the capacity cushion the better. Answer: FALSE FALSE FALSE There are two types of loops in causal loop analysis: reinforcing loops and

Mental fatigue is a reason workers should be given some extra time to do their jobs. Answer: TRUE TRUE TRUE Most services contain a mix of tangible and intangible attributes known as the service package which is the major output of the development process. Answer: TRUE TRUE TRUE A transformation process uses resources to convert inputs into some

Compared with a service operation, which of these statements isTRUE for a manufacturing operation's capacity? A.Manufacturing is more dependent on time and location B.manufacturing is subject to more volatile demand fluctuations C.Utilization more directly impacts quality D.Demand can be smoothed by inventory policies E.Manufacturing capacity is more capable of reacting to demand fluctuations Answer: D D D The weighted moving

A tracking signal (TS) can be calculated using the arithmetic sum of forecast deviations divided by the MAD. Answer: TRUE TRUE TRUE The activity direct costs associated with a project might include giving workers overtime to complete a project in less-than the expected time. Answer: TRUE TRUE TRUE A bottleneck occurs when a stage in a production process

Services often take the form of cycles of encounters involving face-to-face interactions. Answer: TRUE TRUE TRUE Depreciation is a method for allocating costs of capital equipment to future time periods when it will continue to be used. Answer: TRUE TRUE TRUE Computing the quantity of each component that goes into a finished product requires expanding (or exploding) each item

In a forecasting model using simple exponential smoothing the data pattern should remain stationary. Answer: TRUE TRUE TRUE Profitability in consulting firms is achieved by leveraging the skills of the partners through use of midlevel and junior consultants. Answer: TRUE TRUE TRUE The second step in managing a project is writing the Statement of Work (SOW). Answer: FALSE FALSE FALSE In facility

A good forecaster is one who develops special skills and experience at one forecasting technique and is capable of applying it to widely diverse situations. Answer: FALSE FALSE FALSE The fixed-order quantity inventory model requires more time to maintain because every addition or withdrawal is logged. Answer: TRUE TRUE TRUE The objective of strategic capacity planning is to determine

Safety stock can be computed when using the fixed-order quantity inventory model by multiplying a "z" value representing the number of standard deviations to achieve a service Level or probability by the standard deviation of daily demand. Answer: FALSE FALSE FALSE Break-Even Analysis can be used to help decide whether to perform a task

When we have performed a simulation run of a model another simulation experiment might be called for that requires a change in parameters or variables. Answer: TRUE TRUE TRUE One of the assumptions of CPM is that project activity times can be estimated accurately. Answer: TRUE TRUE TRUE EDI stands for electronic distance imaging and is a technology

"Available to promise" is a term referring to unsold finished goods inventory. Answer: FALSE FALSE FALSE For an activity in a Single Time Estimate CPM analysis, the Early Finish time is 8 and the Late Finish time is 10. Which of the following statements is Answer: TRUE?A.The Late Start Time is 4B.The Early Start Time

Central to the concept of operations and supply strategy is the notion of operations focus and trade-offs. Answer: TRUE TRUE TRUE A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective. Answer: TRUE TRUE TRUE In facility

Industrial robots are programmable, multifunctional machines that may be equipped with an end effector. Answer: TRUE TRUE TRUE Sunk costs are expenses or investments that continue to exist and do not change regardless of the decision. Answer: TRUE TRUE TRUE Job design is defined as the function of specifying the work activities of an individual or group in

The economic life of a machine is the period over which it provides the best method for performing its task. Answer: TRUE TRUE TRUE SAP modules are updated twice each year. Answer: TRUE TRUE TRUE When stocked items are sold, the optimal inventory decision using marginal analysis is to stock that quantity where profit from the sale or use

The master production schedule states the number of items to be produced during specific time periods. Answer: TRUE TRUE TRUE A traveler is an input to an airline's transformation system. Answer: TRUE TRUE TRUE Focus forecasting is the most accurate of all forecasting models. Answer: FALSE FALSE FALSE A free trade zone is typically a closed facility into which foreign goods can

One of the current issues of operations and supply management is decreasing "commoditization" of suppliers. Answer: FALSE FALSE FALSE You time someone completing a single task the first time at 10 minutes and the second time they do the task it takes 9 minutes. You should use an 80 percent learning curve to estimate

Because a Level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required. Answer: FALSE FALSE FALSE Most project work is controlled by PERT or CPM and thus team leadership is less crucial than in other parts of an organization. Answer: FALSE FALSE FALSE An important issue in applying supply

While business organizations can seek to achieve the Baldrige National Quality Award educational institutions, like universities, can't. Answer: FALSE FALSE FALSE CAE and CAD software systems are both used in the evaluation of products. Answer: TRUE TRUE TRUE The most common production management tools used in planning and designing the process flow are assembly drawings, assembly charts, route

The objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities, equipment and overall labor force size) that best supports the company's long-range competitive strategy. Answer: TRUE TRUE TRUE The process when a company seeks to match the benefits of a successful position while maintaining its existing

When work is scheduled in detail using the setup and run time required for each order, then theoretically all schedules will be feasible. Answer: TRUE TRUE TRUE Avoidable costs can reduce the cost of a new investment. Answer: TRUE TRUE TRUE Finding the optimal product mix where several products have different costs and resource requirements cannot be solved

One of the basic purposes of inventory analysis in manufacturing and stockkeeping services is to specify when items should be ordered. Answer: TRUE TRUE TRUE At some point, the size of a growing plant can become too large and diseconomies of scale become a capacity planning problem. Answer: TRUE TRUE TRUE Time fences increase productivity by reducing the

"Informating" ordinary workers means using electronic methods to give them instructions. Answer: FALSE FALSE FALSE The fixed-order quantity inventory model is more appropriate for important items such as critical repair parts because there is closer monitoring and therefore quicker response to a potential stockout. Answer: TRUE TRUE TRUE Supply chain thinking can not be applied to many services as

Aggregation in sales and operations planning is by groups of customers on the supply side and by product families on the demand side of the firm's supply chain. Answer: FALSE FALSE FALSE A key decision point in the generic development process during "Phase 1: Concept Development" is project approval. Answer: FALSE FALSE FALSE The customer arrivals in a

Economies of scope exist when multiple products can be produced at a lower cost in combination than they can separately. Answer: TRUE TRUE TRUE A mathematical technique that is only used in aggregate planning for service operations is the transportation method of linear programming. Answer: FALSE FALSE FALSE Utilization of a production process is the ratio of output

TQM was defined in the textbook as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer. Answer: TRUE TRUE TRUE One of the principles of work center scheduling is that the effectiveness of any shop should be measured by speed of flow

TQM is an acronym meaning "total quality measurement". Answer: FALSE FALSE FALSE The least unit cost method (LUC) of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost. Answer: TRUE TRUE TRUE The Greek

Activity-based costing is sometimes referred to as transaction costing. Answer: TRUE TRUE TRUE One of the assumptions made using CPM is that project activities can be identified with clear beginning and ending points. Answer: TRUE TRUE TRUE A key use of a customer survey used in operations consulting phase of problem definition is customer loyalty analysis. Answer: TRUE TRUE TRUE Extensive use of

Company unions in Japan exist to foster a cooperative relationship with management. Answer: TRUE TRUE TRUE mySAP.com is an internet interface that allows users to have the full functionality of the SAP software without requiring the deployment of any special software. Answer: TRUE TRUE TRUE One of the outputs of an MRP system is a bill of materials

While benchmarking is an inward looking process of quality improvement, continuous improvement is an outward looking process that extends outside the organization. Answer: FALSE FALSE FALSE Firms that make multiple products can produce the same number of each product with a given level of resource inputs and equal amounts of time. Answer: FALSE FALSE FALSE The least unit cost

The Shingo system approach to quality is totally compatible with statistically based approaches to quality control. Answer: FALSE FALSE FALSE A variable arrival rate is more common in waiting line management than a constant arrival rate. Answer: TRUE TRUE TRUE The "dollar days" inventory measurement results from a complex algorithm used to compute individual units of inventory and

The synchronous manufacturing approach uses backward scheduling. Answer: FALSE FALSE FALSE The fixed-order quantity inventory model favors less expensive items because average inventory is lower. Answer: FALSE FALSE FALSE The "Z" distribution used to calculate the probability of completing a project on time is only useful in calculating probabilities where the desired time is greater than the expected

Variation that is inherent in a production process itself is called assignable variation. Answer: FALSE FALSE FALSE DHL and United Parcel Service are transportation companies which are prohibited from functioning as a third-party logistics company the way Federal Express does. Answer: FALSE FALSE FALSE Inventory is defined as the stock of any item or resource used in an organization.

One of the basic purposes of inventory analysis in manufacturing and stockkeeping services is to determine the Level of quality to specify. Answer: FALSE FALSE FALSE Fixed cost includes variable overhead expenses such as utility bills. Answer: FALSE FALSE FALSE We assume in CPM analysis that the activity times are independent and therefore the sum of the variances

The LCFS and Johnson's priority rules are basically the same except LCFS uses due dates as a major determiner of job sequence. Answer: FALSE FALSE FALSE In exponential smoothing, it is desirable to use a higher smoothing constant when forecasting demand for a product experiencing high growth. Answer: TRUE TRUE TRUE In a waiting line situation, multiple lines

McDonald's fast food restaurants have traditionally used a Make-To-Order production process. Answer: FALSE FALSE FALSE JIT production means that we produce the product before it is required so the customer does not wait for the product. Answer: FALSE FALSE FALSE AS/RS stands for automated storage and retrieval systems. Answer: TRUE TRUE TRUE Assembly lines are a special case of a project layout.

Generally, determining lot sizes in MRP systems is simple. Answer: FALSE FALSE FALSE CAPP stands for computer aided purchasing program. Answer: FALSE FALSE FALSE Sociotechnical systems is an approach to job design that focuses on the interaction between technology and the work group. Answer: TRUE TRUE TRUE The 'service blueprint" is a classification of services. Answer: FALSE FALSE FALSE In the late 1950's scholars began to

Once an operations and supply strategy is adopted and articulated, the primary emphasis becomes perfecting the system of activities that make up the strategy through detailed refinements over a long period of time. Answer: FALSE FALSE FALSE Managing global supplier, production and distribution networks is easy with the implementation of global enterprise resource planning

The standard fixed-time period model assumes that inventory is never counted but determined by EOQ measures. Answer: FALSE FALSE FALSE Capacity can be defined as the amount of available resource inputs relative to requirements for output over a particular period of time. Answer: TRUE TRUE TRUE Reengineering is about achieving a significant improvement in processes so that contemporary

You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project's costs. Costs associated with transferring the workers are an example of project indirect costs. Answer: FALSE FALSE FALSE The operational measure of throughput is "the rate at which

One of the tools of a quality control department that is used in a TQM program is process sampling. Answer: FALSE FALSE FALSE Requiring little or no education is one of the advantages for management in adopting specialization of labor as a job design principle. Answer: FALSE FALSE FALSE Value density is an important measure for determining the

Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry. Answer: TRUE TRUE TRUE Break-even analysis can only be used in production equipment decision making and deals solely with fixed costs, not variable costs. Answer: FALSE FALSE FALSE Choosing the target market in a

The optimal strategy for functional products is to utilize a responsive supply-chain. Answer: FALSE FALSE FALSE Complex projects are often subdivided into a series of tasks that are typically configured to be not longer than several months in duration. Answer: TRUE TRUE TRUE In the fixed-time period model it is necessary to determine the inventory currently on hand

In inventory models, high holding costs tend to favor high inventory Levels. Answer: FALSE FALSE FALSE The equation for exponential smoothing states that the new forecast is equal to the old forecast plus the error of the old forecast. Answer: FALSE FALSE FALSE You time someone completing a single task the first time at 100 minutes and the

It is not necessary that a well-designed service system be robust. Answer: FALSE FALSE FALSE From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simultaneously reducing inventory and reducing operating expense. Answer: TRUE TRUE TRUE One SPC tool used in total quality management is the run

Work groups can handle many production problems better than management if they are permitted to make their own decisions on scheduling and work allocation. Answer: TRUE TRUE TRUE A shop-floor control system is a system that uses data from the shop floor as well as data processing files to maintain and communicate status information

A capacity cushion is the amount of capacity less than expected demand. Answer: FALSE FALSE FALSE Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills. Answer: TRUE TRUE TRUE The 'sawtooth effect", named after turn-around artist Al "chainsaw" Dunlap is the severe reduction of inventory and