Operations Management 5th Edition

Which of the following would probably not benefit from the use of critical path scheduling? a) constructing a new bridge over the Mississippi River b) moving the company's credit card center to a new city c) building a new natural gas pipeline d) receiving orders for the company's products by phone e) developing a new

Vertical integration is a good strategic option for a manufacturing company when a) it needs several different parts and subassemblies b) it makes many different products c) its facilities are obsolete d) it uses distributed processing e) it needs one input material in large volumes Answer: e Answer: e Answer: e Operation sequencing creates a work center plan based

Studies have shown that combining forecasts can lead to forecast accuracy that is better than that of the individual forecasts. Answer: True Answer: True Answer: True Companies that compete based on flexibility often cannot compete on cost. Answer: True Answer: True Answer: True A process can be considered in a state of control even if one observation is

The most important factor in the success or failure of TQM efforts is a) Getting started quickly b) The use of statistical process control c) The genuineness of the organization's commitment d) The use of cause-and-effect diagrams e) Employee training Answer: c Answer: c Answer: c Which of the Malcolm Baldrige Award criteria is allocated the most points? a) leadership b)

Which company is widely considered to be the leader of just-in-time production? a) Ford b) Timex c) Gateway d) Toyota e) Sony Answer: d Answer: d Answer: d In Excel, how can one select cells in a range without using the mouse? a) Ctrl+Arrow Keys b) Alt+Arrow Keys c) Tab+Arrow Keys d) F1+Arrow Keys e) Shift+Arrow Keys Answer: e Answer: e Answer: e The time interval necessary to

Companies that have low customer contact and are capital intensive, yet provide a service, are called service factories. Answer: False Answer: False Answer: False A useful tool for translating customers' everyday language into specific technical requirements is Quality Function Deployment. Answer: True Answer: True Answer: True The MATCH function in Excel returns the relative position in the array

Logistics includes what two major management functions? Answer: traffic management and distribution management Answer: traffic management and distribution management Answer: traffic management and distribution management Why are services more complex to design than manufactured goods? Answer: Services produce intangible products produced with high levels of customer contact. Answer: Services produce intangible products produced with high levels

Which of the following does not have a button for automatic insertion into the custom footer box? a) file name b) worksheet name c) author name d) date e) time Answer: c Answer: c Answer: c The Answer Report Target Cell, Adjustable Cell, and Constraint sections all include: a) base value, original value b) original value, final value c) base value, final

The items listed below are stored in a one-dock warehouse. Which of them should be stored at the very front (closest to the dock)? a) 'Star Trek' videos b) ballet videos c) Tom Cruise videos d) 'The Simpsons' videos e) operations management videos Answer: dSolution: Highest number should be closest to the dock Answer: dSolution: Highest number

An excellent procedure that can be used with location factors that are qualitative is the factor rating method. Answer: True Answer: True Answer: True Firms should balance the flow rather than the process. Answer: False Answer: False Answer: False A min-max inventory system implies a larger average inventory than a periodic review inventory system. Answer: False Answer: False Answer: False ERP and

In what company were the Hawthorne Studies conducted? a) Westinghouse b) General Electric c) Hawthorne Incorporated d) General Motors e) Western Electric Answer: e Answer: e Answer: e A firm has had the following order history over the last 4 months: What is the weighted moving average forecast for March, assuming a weight of 60% for the most recent month,

The financial plan indicates the sources and uses of funds, expected cash flows, anticipated profits and projected budgets. Answer: True Answer: True Answer: True A Gantt chart is a basic scheduling tool for low-volume systems. Answer: True Answer: True Answer: True Predetermined time data is a published database of elemental time data used for establishing standard times. Answer: True Answer:

Overtime is the most common method for increasing output capacity. Answer: True Answer: True Answer: True Even though loss of customer goodwill is an intangible cost, it is considered a type of shortage cost. Answer: True Answer: True Answer: True Output-based incentive systems are based on the assumption that some workers are motivated by money and produce more

Which forecasting method seeks to develop a consensus among a group of experts? a) Market research b) Executive opinion c) Delphi method d) Nave method e) Gamma method Answer: c Answer: c Answer: c If a company carries 13 weeks of supply, what is the inventory turnover? a) 0.077 b) 4 c) 7.77 d) 676 e) 0.25 Answer: bSolution: 52 wks / 13 weeks =

What are the steps involved in using network planning techniques? Answer: (1) Describe the project. (2) Diagram the network. (3) Estimate the project's completion time. (4) Monitor the project's progression. Answer: (1) Describe the project. (2) Diagram the network. (3) Estimate the project's completion time. (4) Monitor the project's progression. Answer: (1) Describe

Consider the following partial MPS record. Beginning inventory is 80 units. When should the first MPS shipment be scheduled? a) period 1 b) period 2 c) period 3 d) period 4 e) period 5 Answer: c Answer: c Answer: c Consider the following partial MPS record. Beginning inventory is 120 units. When should the first MPS shipment be scheduled? a)

A cycle is typically the most difficult data pattern to predict. Answer: True Answer: True Answer: True The first level of capacity planning is at the strategic level. Answer: True Answer: True Answer: True Job design ensures that each employee's activities are closely timed. Answer: False Answer: False Answer: False Group Technology has the advantage of bringing the efficiencies of a process

Removing safety time from the individual activities and putting the total safety time at the end of the critical path creates a(n) ___________________. a) project safety net b) project buffer c) overconfident project manager d) activity shortage e) larger number of activities Answer: b Answer: b Answer: b For each work element in the time study, multiplying the mean

In making specific changes to JIT manufacturing, which of the following steps should come first? a) reduce lot sizes and lead times b) switch to pull production c) reorganize workplace d) reduce setup times e) implement layout changes Answer: c Answer: c Answer: c In the custom footer box, which of the following is the command to insert the

Lot-for-lot ordering is commonly used in materials requirements planning systems. Answer: True Answer: True Answer: True A firm can hedge exchange rate risk by establishing links with suppliers in a variety of countries. Answer: True Answer: True Answer: True The single-period inventory model objective is to balance the sale of a unit with the cost incurred for each unit

We use _____________________ time estimates when we can make a reliable estimate. a) variable b) probabilistic c) estimated d) deterministic e) cumulative Answer: d Answer: d Answer: d What movement started with the publication of the results of the Hawthorne studies? a) scientific management b) human relations c) management science d) marketing research e) operations management Answer: b Answer: b Answer: b What is the effect of an

Johnson Enterprises sells no-spill syrup in bottles. Management is evaluating four different machines with standard deviations of .006, .01, .022, and .04 ounces for Machines A, B, C, and D, respectively. The specification limits 11.95 and 12.05 ounces. Which machines should receive more detailed evaluation, i.e. which are statistically 'capable?' Answer: A

Suppose that you are using the three-period simple moving average method to forecast sales, and sales have been increasing by 10% every period. Then your forecasts will be lower than the actual sales. Answer: True Answer: True Answer: True A common practice of scenario analysis is to examine the base case, best case, and

Suppose that Sally's company uses exponential smoothing to make forecasts. Further suppose that last period's demand forecast was for 20,000 units and last period's actual demand was 21,000 units. Sally's company uses a smoothing constant () equal to 40%. What should be the forecast for this period? a) 20,000 b) 21,000 c) 20,600 d)

In TQM the role of the employee is very similar to earlier requirements. Answer: False Answer: False Answer: False If using slack per remaining operations (S/RO) as the scheduling rule, the job with the least slack per remaining operations has the highest priority. Answer: True Answer: True Answer: True Backward scheduling develops the LS and LF times. Answer:

Operations management is the central core function of every company. Answer: True Answer: True Answer: True Planalytics is a company that helps businesses use weather data to make their business plans. Answer: True Answer: True Answer: True Marketing is not highly affected by layout planning. Answer: False Answer: False Answer: False Benchmarking should only be performed against firms in similar lines of

The projected available quantity row in an MPS record keeps track of how many units are available at the beginning of each time period. Answer: False Answer: False Answer: False Outsourcing instead of pursuing vertical integration is often a good strategic option for a firm using an intermittent operation. Answer: True Answer: True Answer: True Successfully implementing JIT

When evaluating location alternatives the firm should look at a) only qualitative factors b) only quantitative factors c) both qualitative and quantitative factors d) weighted average values e) decision support models only Answer: c Answer: c Answer: c In break-even analysis, what is the break-even point? a) the quantity where revenue equals total cost b) the quantity where revenue equals fixed

Disadvantages of globalization include political risks for countries with unstable governments. Answer: True Answer: True Answer: True The amount of outsourcing in industry is increasing. Answer: True Answer: True Answer: True CPFR is an iterative process. Answer: True Answer: True Answer: True Gross requirements for finished products are taken from the order entry file. Answer: False Answer: False Answer: False The fact that human activities typically

A control chart is a schematic diagram of the sequence of steps involved in an operation or process. Answer: False Answer: False Answer: False JIT considers waste anything that does not add value. Answer: True Answer: True Answer: True Federal Express subcontracts its work overload to other firms during peak demand periods. Answer: False Answer: False Answer: False A key feature of scientific

The aggregate plan is usually updated and reevaluated monthly by the operations group. Answer: True Answer: True Answer: True Economic feasibility is the degree to which the job adds value and the cost of performing the job done are profitable for the company. Answer: TrueEssay Answer: TrueEssay Answer: True Essay An REL chart can contain ratings

Given the following data: The end product J is made from components K and L. Component K is made from M and N. The authorized MPS calls for 10 J to be completed in week 2, 30 J to be completed in week 3, 40 J to be completed in week

Productivity gains in the service sector have been much lower than that of manufacturing. Answer: True Answer: True Answer: True When possible, managers should purchase and use CRAFT because it gives an optimal solution to the facility layout problem. Answer: False Answer: False Answer: False A key outcome of JIT is that organizational barriers are eliminated. Answer: TrueSection Ref.

To add Cell Comments for a cell in Excel, right-click and choose ____________________. a) Insert Comment b) Format Cells' c) Hyperlink' d) Insert' e) Pick From List' Answer: a Answer: a Answer: a Which of the following can be calculated for an activity once ES, EF, LS, and LF have been calculated for the activity? a) expected project duration b) slack

What costs are considered in the basic EOQ model? a) annual ordering costs + annual holding costs b) annual purchasing costs + annual holding costs c) annual ordering costs + annual holding costs + annual shortage costs d) annual purchasing costs + annual ordering costs + annual holding costs + annual shortage costs e) ordering

OM's transformation role is to add value. Value added is a) performing activities well for the least possible cost b) the net decrease between output product value and input material value c) increasing product value in the first stage d) the net increase between output product value and input material value e) customizing a product,

JIT manufacturing cannot succeed if set-up costs are too high. Answer: True Answer: True Answer: True For the general warehouse layout problem, the department with the highest ratio of trips to areas needed should be located closest to the dock. Answer: True Answer: True Answer: True An error in replenishment ordering can result from an inaccuracy in the inventory

If customer service is important to the company, average job lateness is probably a more relevant measurement than average job tardiness. Answer: False Answer: False Answer: False A small range and large standard deviation imply that data observations are closely clustered around the mean. Answer: False Answer: False Answer: False The advent of the computer age paved

Risk costs are obsolescence, damage deterioration, theft, insurance and taxes. Answer: True Answer: True Answer: True An increase in the desired confidence level will decrease the number of observations necessary in a time study. Answer: False Answer: False Answer: False Statistical packages such as SPSS, SAS, and Minitab, are types of forecasting software. Answer: True Answer: True Answer: True Under ideal conditions

Aggregate planning, master production scheduling, and rough-cut capacity affect a select area of the organization. Answer: False Answer: False Answer: False Sensitivity reports show what will happen if certain problem parameters are changed from their current values. Answer: True Answer: True Answer: True If OT = the mean observed time, PRF = the performance rating factor, F =

Scheduled receipts are replenishment orders that have been placed but not yet received. Answer: True Answer: True Answer: True Efficiency means being able to perform most activities. Answer: False Answer: False Answer: False In a fixed position layout, resources are fixed in various locations and the products move from one resource location to the next. Answer: False Answer: False Answer: False Companies

George Dantzig developed the Simplex Method in 1947. Answer: True Answer: True Answer: True The cost of space in Silicon Valley is higher now than it was in the late 1990s. Answer: False Answer: False Answer: False An order released to the shop floor authorizes withdrawal of the needed materials and the start of production. Answer: True Answer: True Answer: True Maximizing

Consider the following partial MPS record. Beginning inventory is 0 units. The firm uses a fixed order quantity of 60 units. Fill out the last two rows of the table. Answer: Answer: Answer: The items listed below are stored in a one-dock warehouse. Rank them in order from closest to the

An action notice is generated ________________________________________. a) for planned orders in any period b) only for orders that are to be released to the shop floor c) only for movements to and from the warehouse d) only when marketing needs to be notified e) when a planned order needs to be released Answer: e Answer: e Answer: e Which

Management has decided to add capacity incrementally in smaller chunks as needed, rather than purchasing one large facility. This decision ____________________. a) is very risky b) will result in low initial costs c) will ultimately result in lower costs per unit if demand increases rapidly d) positions the company to be well prepared for

Which of the following is equivalent to '=SUMPRODUCT(A1:A4,B2:B6)'? a) A1*A4 + B2*B6 b) A1*B2 + A2*B3 + A3*B4 + A4*B5 c) (A1+A4)*(B2+B6) d) (A1+A2+A3+A4)*(B2+B3+B4+B5+B6) e) This is an invalid function. Answer: e Answer: e Answer: e In Excel, which function returns the number of cells containing numerical values? a) CELLS(range) b) NUMBER(range) c) VALUES(range) d) COUNT(range) e) NUMBERS(range) Answer: d Answer: d Answer: d Early supplier involvement refers

Local wage rates, presence of local unions, and attitudes of local workers would be major factors for location decisions for businesses that ________________________. a) are labor intensive b) have perishable products c) have high transportation costs d) have need for specific raw materials e) provide in-home services Answer: a Answer: a Answer: a Which inventory function helps firms garner

The backlog at a work center increases when the work center receives more work than it finishes. Answer: True Answer: True Answer: True The reorder point is used in determining the order quantity in the periodic review system. Answer: False Answer: False Answer: False In six-sigma programs, individuals are given academic titles that reflect their skills in the

Increasing the level of responsibility of a job by adding planning and coordination tasks is ___________. a) job enlargement b) job rotation c) job involvement d) job enrichment e) job backward integration Answer: d Answer: d Answer: d If using CR as the priority rule, which of the following jobs will be scheduled first? a) the first job arrives at a

Time series models are generally more difficult to use than causal models. Answer: False Answer: False Answer: False Inventory turnover is the reciprocal of weeks of supply. Answer: False Answer: False Answer: False The first mathematical model for inventory management was developed by Elton Mayo. Answer: False Answer: False Answer: False If the number of customers you can serve per time period

Using the Tibrewala, Phillippe, and Brown technique for a Monday through Sunday work week a regular, full time employee can end up with a Sunday-Monday set of days off. Answer: False Answer: False Answer: False Changes to the MPS that are requested inside of the demand time fence must be approved by a higher

In Excel, when moving a formula to another cell, it is better to use Copy and Paste rather than Cut and Paste. Answer: False Answer: False Answer: False Rationing and shortage gaming occur when supply exceeds demand. Answer: False Answer: False Answer: False The TOC focuses on correct placement of buffers. Answer: False Answer: False Answer: False Inventory management, order policies, storage

Which of the following is true? a) A line with a lower cycle time has greater output than one with a higher cycle time. b) A line with a higher cycle time has greater output than one with a lower cycle time. c) Cycle time is unrelated to output rate. d) A line must

Frank's umbrella corporation is designing a kanban system. They know that they are expected to produce 100 umbrellas per hour. They've also determined that a key external resource takes 30 minutes to deliver the required material once an order has been transmitted. To start with they want to maintain a

Suppose that the formula in cell C8 is '=H2+$P6'. If cell C8 is copied to cell E7, the formula in cell E7 will be '=J1+R5'. Answer: False Answer: False Answer: False Whenever demand exceeds supply, the company experiences a lost sale. Answer: False Answer: False Answer: False In Excel, you should delete unused worksheets of a workbook. Answer: True Answer:

In the 'liquid' portion of the MPS, the master scheduler generally has the authority to approve what changes? a) product mix b) changes needing extra resources (already authorized by the aggregate plan) c) product mix and changes needing extra resources (already authorized by the aggregate plan) d) neither product mix and changes needing extra

What occurs when a customer enters one line and then switches to a different line in an effort to reduce his or her waiting time? a) balking b) walking c) reneging d) vacillating e) jockeying Answer: e Answer: e Answer: e Which of the following is the term for 'arranging the method of shipment for both incoming and outgoing

The first military use of management science was solving complex problems of logistics control, weapons system design, and deployment of missiles during _____________________. a) World War I b) World War II c) The Korean War d) The Vietnam War e) Operation Desert Storm Answer: b Answer: b Answer: b An example of an input measure of capacity is _____________________. a)

What is the statistic that measures the direction and strength of the linear relationship between two variables? a) r2 b) Coefficient of variation c) Variance d) Coefficient of kurtosis e) Correlation coefficient Answer: e Answer: e Answer: e What are two of the most popular facility layout software packages? a) CONWIP and CRAFT b) ALDEP and CRAFT c) CONWIP and MRP d)

According to the textbook, the way to reduce the ppm defective is to a) change product specifications b) increase process capability c) increase the number of inspection points. d) employ more inspectors e) increase process throughput Answer: b Answer: b Answer: b Capacity planning is difficult because a) Board of directors set the requirements b) the mathematical requirements are difficult c) the

An example of an output measure of capacity is labor hours. Answer: False Answer: False Answer: False Shipments should spend less than 24 hours in a crossdock. Answer: True Answer: True Answer: True Capacity decisions at the strategic level include the size of workforce. Answer: False Answer: False Answer: False Solving a decision tree that involves maximizing profit includes selecting the decision

What term tells us how frequently a product is completed? a) output rate b) task time c) station time d) cycle time e) output time Answer: d Answer: d Answer: d If the upper control limit for a c-chart is 28 and the lower control limit is 4, what is the average number of defects per sample? a) 16 b) 12 c)

What are the three elements of the service package? a) physical goods, sensual benefits, and psychological benefits b) sales, return policy, and warranty c) customer service, return policy, and warranty d) kindness, information provision, and speed e) physiological benefits, sensual benefits, and psychological benefits Answer: a Answer: a Answer: a Quality in just-in-time is centered on building quality into

ERP systems provide _____ and _____ benefits. a) tangible, HR b) intangible, marketing c) marketing, operation d) tangible, intangible e) CEO, CFO Answer: d Answer: d Answer: d Which of the following is true regarding the relative predictability of the cycle of new product introductions? a) new car models are predictable, but new fashion and new skin care products are

What is the amount by which the efficiency of a production line falls short of 100%? a) balance delay b) efficiency deficiency c) efficiency delay d) balance shortfall e) percentage deficiency Answer: a Answer: a Answer: a How can both the JIT and EOQ inventory theories effectively be reconciled? a) They can't. A firm must choose either one or the

With probabilistic time estimates for activities, (m) denotes the mean time. Answer: False Answer: False Answer: False 'Job enrichment' is an approach in which workers are given a larger portion of the total task to do. Answer: False Answer: False Answer: False The objective of supply chain management is to have every member of the chain compete against

Magnatree is a large company that has been working on a new product. This product has tremendous potential, but Magnatree must move quickly. They have decided that they will introduce the product in two months and have already started developing their advertising campaign. They are sure that the product will be

Which one of these refers to reducing the number of parts and features of the product whenever possible? a) design automation b) design specification c) design reduction d) design standardization e) design simplification Answer: e Answer: e Answer: e In inventory management, when discussing customer service we mean: a) whether the customer is available when the product is. b) whether the

Which of the following is a measure of how long after the due date the job is completed? a) job belatedness b) mean flow time c) makespan d) job overdueness e) job tardiness Answer: e Answer: e Answer: e Something you would not expect to see in a just-in-time work environment is a) Order b) Clutter c) Ample space d) Tools in their

A company's accepted time studies are stored in a(n) ____________ for possible future use. a) file cabinet b) time study vault c) warehouse d) jar e) elemental time database Answer: e Answer: e Answer: e Consider a packaged milk products supply chain. A lumber company provides wood to a paper mill, who supplies cardboard to a container manufacturer, who

A feasible solution to an optimization problem is a particular combination of decision variables that satisfies some of the constraints. Answer: False Answer: False Answer: False Spreadsheet flexibility implies that the user should enter each input only once in the model. Answer: True Answer: True Answer: True The explosion process calculates the demand for the parent of the

Moving average forecasts with a larger number of observations are more responsive than those with a smaller number of observations. Answer: False Answer: False Answer: False One of the most important trends in companies today is competition based on time. Answer: True Answer: True Answer: True The Delphi method of forecasting is preferred to the executive opinion method

Which of the following is considered a 'quality guru?' a) Elton Mayo b) W. Edwards Deming c) Alex Gamble d) F.W. Harris e) Frederick W. Taylor Answer: b Answer: b Answer: b Which of the following is not a step in the load-distance model? a) solve algebraically for the best location b) identify loads c) select the site with the lowest load-distance

Companies use a single lot-sizing technique to standardize processes. Answer: False Answer: False Answer: False With Excel Solver, the range for the Changing Cells box must be entered with absolute references ($ signs). Answer: False Answer: False Answer: False At Wal-Mart, to maximize customer comfort and enjoyment, layouts are designed with a limited number of aisles, each of

Crossdocking eliminates the receiving and shipping functions of a distribution warehouse while still performing its storage and order picking functions. Answer: False Answer: False Answer: False For projects whose activities have probabilistic time estimates, the probability of completing the project in a specified amount of time is determined by the standard deviation for the

Quality control approaches are part of the production process infrastructure. Answer: True Answer: True Answer: True In general, scheduling resources is less challenging under a process layout than it would be under a product layout. Answer: False Answer: False Answer: False Two types of information needed when measuring capacity is the amount of available capacity and the effectiveness of

Consider a single-server queuing system. If the arrival rate is 45 customers per hour and it takes 1 minute on average to serve a customer, what is the average waiting time in the waiting line in minutes? a) 3 b) 0.05 c) 4 d) 1.02 e) 1.02 Answer: aSolution: pW Answer: aSolution: pW Answer: a Solution: pW Variation in the production

The quantity that equates the cost of making a product to the cost of buying the product is generally called what? a) Neutrality point b) Point of equality c) Indifference point d) Point of optimality e) No such point can exist. Answer: c Answer: c Answer: c The first unit of a product took 400 hours to complete. If

Cost data Capacity data Demand data Develop a chase aggregate plan without inventory and back orders. Do no hiring or firing. When demand exceeds regular production, use overtime up to its maximum and then subcontracting. When demand is less than regular production, use undertime (data given above). (a) What are the total hours of

Buying a competitor's new product and studying its design features by disassembling it and analyzing its parts and features is reverse engineering. Answer: True Answer: True Answer: True Quality Function Deployment (QFD) enhances communication between marketing, operations, and engineering functions. Answer: True Answer: True Answer: True Operations Strategy is developed before the business strategy so the company knows