OM 5 5th Edition

OM5 Chapter 1: Goods, Services, and Operations Management Discussion Questions 1. Explain how operations management activities affect the customer experiences described in the Museum of Science + Technology anecdote at the beginning of this chapter. What moments of truth would a customer at Chicagos Museum of Science + Technology encounter? The anecdote at Chicagos

OM 5 C1 IM Case Teaching Notes: Zappos Case Study The objective of this case is to introduce students to a web-based firm where the motto is Deliver WOW through service and the student can begin to understand issues such as: (1) How goods and services are bundled together (i.e., the customer benefit

OM3 Chapter 10: Capacity Management Discussion Questions 1. Provide and discuss some examples of economies and diseconomies of scale in a college environment. Economies of scale mean that long-run average costs decline as volume increases. Diseconomies of scale happen when size (capacity) increases to the point where long-run average costs begin to increase

OM4 C10 IM 10. For the Solved Problem on processing drivers licenses at the Archer County Courthouse in this chapter, if 40 drivers are to be processed each hour, how many clerks and typists should be hired assuming a 80 percent target utilization rate? Utilization (U) = Demand Rate/[Service Rate*Number of Servers]

OM4 Chapter 11: Forecasting and Demand Planning Discussion Questions 1. Discuss some forecasting issues that you encounter in your daily life. How do you make your forecasts? Students might suggest such things as cell phone usage, vehicle mileage, university enrollment, financial needs and cash flow, weather, attendance at social and sporting events, waiting times

6.* A restaurant wants to forecast its weekly sales. Historical data (in dollars) for fifteen weeks are shown below and can be found on the worksheet C11P6 in the OM5 Data & Calculations Workbook. (Note: you may copy the data from the worksheet to the appropriate Excel template.) a. Plot the

OM4 C11 IM 14.* Two experienced managers at Wilson Boat, Inc. are resisting the introduction of a computerized exponential smoothing system, claiming that their judgmental forecasts are much better than any computer could do. Their past record of predictions is as follows (these data can also be found on the worksheet

OM5 Chapter 12: Managing Inventories Discussion Questions 1. Discuss some of the issues that a small pizza restaurant might face in inventory management. Would a pizza restaurant use a fixed order quantity or period system for fresh dough (purchased from a bakery on contract)? What would be the advantages and disadvantages

9.* Environmental considerations, material losses, and waste disposal can be included in the EOQ model to improve inventory management decisions. Assume that the annual demand for an industrial chemical is 1,200 lb, item cost is $5/lb, order cost is $40, inventory-holding cost rate (percent of item cost) is 18 percent.

OM5 C12 IM 15.* The J&B Card Shop sells calendars featuring a different Colonial picture for each month. The once-a-year order for each years calendar arrives in September. From past experience the September-to-July demand for the calendars can be approximated by a normal distribution with = 300 and standard deviation = 20.

OM4 Chapter 13: Resource Management Discussion Questions 1. Identify a goods-producing or service-providing organization and discuss how it might make aggregate planning decisions using the variables described in Exhibit 13.3. Students will apply Exhibit 13.3 aggregate planning concepts to an organization of interest to them. For example, a manufacturer like Briggs and Stratton

8. Given the bill of materials for the printer cartridge (A) shown below, a gross requirement to build 170 units of A, on-hand inventory levels for each item as shown in the table below, and assuming zero lead-times for all items A, B, C, D, and E, compute the net requirements

OM4 C13 IM Case Teaching Note: Greyhound Frequent Flyer Call Center Note: This case can be used with OM 4 Chapters 7, 10 and/or 13 depending on the judgment and guidance of the instructor(s). Excel models with case data accompany OM4 files. Overview The case begins by the following scenario: Im an accounting major,

OM5 Chapter 14: Operations Scheduling and Sequencing Discussion Questions 1. Discuss how you decide to schedule your school assignments. Do your informal scheduling rules correspond to any of those in this chapter? Many students will probably recognize that they use a shortest processing time (procrastination!) rule, or an earliest due date to establish

OM5 C14 IM 9. Mike Reynolds has four assignments due in class tomorrow, and his class times are as follows. Class Time Marketing 304 8 a.m.OM 385 10 a.m.Finance 216 1 pmPsychology 200 3:30 p.m. Marketing 304 8 a.m.OM 385 10 a.m.Finance 216 1 pmPsychology 200 3:30 p.m. Marketing 304 8 a.m. OM 385 10 a.m. Finance

OM5 C15 IM 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 OM5 Chapter 15: Quality Management Discussion Questions 1. Select two of Demings 14 Points and

OM5 C15 IM 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 consulting organizations such as iSixSigma (www.isixsigma.com). Simple web searches will also uncover numerous sources of information. consulting

OM5 C15 IM 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 Appraisal activities appear to be keeping failure costs relatively low; however, better prevention should allow the

OM5 C16 IM 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 OM5 Chapter 16: Quality Control and SPC Discussion Questions 1. Provide some examples in

OM5 C16 IM 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 8.* An Internet service provider (ISP) measures the proportion of peak period time when

OM5 C16 IM 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17 14.* Use the data in problem 4 to calculate Cp , Cpl , Cpu, and Cpk

OM5 C17 IM 1 OM5 Chapter 17: Lean Operating Systems Discussion Questions 1. Provide some examples of different types of waste in an organization with which you are familiar, such as an automobile repair shop or a fast-food restaurant. In a fast food restaurant, for example, we

OM5 C17 IM 8 Reduce Cost Partially electronic and paper based information flows that need improvements. Are two beds necessary? Labor intensive process with much waiting in practice. 10. Some companies use a technique called heijunka, which is a Japanese term that refers to production smoothing in which

OM5 C18 IM 1 OM5 Chapter 18: Project Management Discussion Questions 1. Identify at least five additional examples of projects that are not cited in this chapter. Students might identify the following projects -- waste management, building a solar field, disaster management planning, building a

OM5 C18 IM 11 G B,C 9 6 15 9 18 3 H F.G 3 18 21 18 21 0 Critical path is B-D-E-F-H. Project completion time is 21. We work one or more CPM problems on the board, first setting up, then doing a forward pass, and

OM 5 Chapter 2: Value Chains Discussion Questions (1) Provide an example where you have compared a good or service by its value and compared perceived benefits and price. How did your assessment of value led to a purchase (or non-purchase) decision? Students should easily be able to provide examples from their personal experience, such as

OM5 C2 IM 9. * A university currently has a recycling program for paper waste. The fixed cost of running this program is $10,000 per year. The variable cost for picking up and disposing of each ton of recyclable paper is $40. If the work is outsourced to a recycling company,

OM5 Chapter 3: Measuring Performance in Operations Discussion Questions 1. What types of performance measurements might be used to evaluate a fraternity or student organization? Metrics might include attendance at key events, total membership each academic term, gains and losses in membership, fundraising amounts, operations costs, number of professional or social events held

OM5 C3 IM 9. Customers call a call center to make room reservations for a small chain of 42 motels located throughout the southwestern part of the United States. Business analytics is used to determine how and if the following performance metrics are related: time by quarter, average time on hold (seconds) before

OM5 Chapter 4: Operations Strategy Discussion Questions 1. Select a business with which you are familiar and identify examples of customers using search, experience, and credence quality to evaluate the good or service. You might also look up the businesses on the Internet or visit the library. This question allows students to

OM5 C4 IM Case Teaching Note: Sustainable Lawn Care Case Study The case focuses on how two firms in the same industry define their business strategy in different ways--one currently from a pure physical perspective and the competitor from a full service perspective. The case makes use of most of the ideas

OM5 Chapter 5: Technology and Operations Management Discussion Questions 1. Describe at least one application of modern technology in each of these service industries: a. Financial services b. Public and government services c. Transportation servicesd. Educational servicese. Hotel and motel services c. Transportation servicesd. Educational servicese. Hotel and motel services c. Transportation services d. Educational services e. Hotel

OM5 C5 IM 11.* In Problem 10, assume the cost factors given have not changed. A marketing representative of NEW-SPEC, a firm that specializes in providing manual inspection processes for other firms, approached Paris Manufacturing and offered to inspect parts for $19 each with no fixed cost. They assured Paris Manufacturing the accuracy and

OM4 Chapter 6: Goods and Service Design Discussion Questions 1. How might todays technology, such as the Internet, be used to understand the voice of the customer? Consumers provide a lot of free information in the form of blogs, discussion groups, web site product reviews, and so on. Companies can leverage

OM4 C6 IM 10. Research and write a short paper (maximum two typed pages) illustrating an example of how a company applies concepts of Design for Environment (DfE). A Google search for design for environment results in over 1.5 million hits so the students have plenty to write about. According to Wikipedia

OM5 Chapter 7: Process Selection, Design, and Analysis Discussion Questions 1. What type of processproject, job shop, ow shop, and continuous ow would most likely be used to produce the following? Explain your reasoning. a. Apple iPads ow shop (assembly line) b. Weddings -- projectc. Paper continuous owd. Tax preparation -- job shop for complex

OM5 C7 IM 14. The Wilcox Student Health Center has just implemented a new computer system and service process to improve efficiency. The process flowchart and analysis framework is also provided. As pharmacy manager, you are concerned about waiting time and its potential impact on college students who get no respect.

OM5 Chapter 8: Facility and Work Design Discussion Questions 1. Discuss the type of facility layout that would be most appropriate for: a. printing books---Product layout b. performing hospital laboratory tests---Process layout or cellular c. manufacturing home furniture---Process layout.d. a hospital---Process layoute. a photography studio---Product layoutf. a library---Process layout c. manufacturing home furniture---Process layout.d. a

OM5 C8 IM 12. You have been asked to set up an assembly line to assemble a computer mouse. The precedence network is shown in Exhibit 8.12; task times in minutes are given in parentheses. There are 480 minutes of assembly time per shift and the company operates one shift each

OM5 Chapter 9: Supply Chain Design Discussion Questions 1. Describe the three types of value (supply) chain frameworks (i.e., Exhibits 2.1, 2.3 and 9.1) and which do you like the best. Why? The input-output model of value (supply) chain is introduced in Exhibit 2.1 and 2.2. It is the traditional view of a

OM5 C9 IM 10.* MicroFix provides computer repair service on a contract basis to customers in five sections of the city. The five sections, the number of service contracts in each section, and the x, y coordinates of each section are as follows: Coordinates Section No. of Contracts x y Parkview 90 8.0 15Mt.

BankUSA Credit Card Division Exhibit 3.9 Wait times for 500 Customers 26 137 415 68 66 87 67 174 108 358 30 325 195 63 54 72 280 65 218 43 58 61 265 119 135 118 667 71 70 68 253 159 97 9 16 28 190 233 62 557 78 186 76 138 23 36

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Webster Manufacturing Inc. is implementing a Just-in-Time (JIT) system and wants to know how many Kanbans to use for the initial setup of its JIT system. The daily demand is 400 units and each Kanban (i.e., container) holds 15 units. The combined processing and waiting time per container is 0.7

In order to increase value, an organization must do all of the following EXCEPT: a. increase perceived benefits while holding price or cost constant. b. increase perceived benefits while reducing price or cost. c. keep the proportion of price or cost to perceived benefits constant. d. decrease price or cost while holding perceived benefits

In most organizations, projects cut across organizational boundaries, making it difficult to implement projects exclusively within functional departments. Answer: T T T Service-encounter repeatability provides a measure analogous to product volume for goods-producing firms. Answer: T T T The costs associated with maintenance and inspection of instruments are examples of appraisal costs. Answer: T T T If a multisite organization has a stable product line

A c-chart is used to monitor the proportion of nonconforming units, whereas a p-chart is used to monitor the number of nonconformances per unit. Answer: F F F After a master production schedule (MPS) is created for finished goods, the demand for all materials and components necessary can be calculated, not forecasted. Answer: T T T Over-adjusting a process that is in

A coffee shop's average transaction price is $4, and the contribution margin is 60 percent. A typical customer makes a purchase once a week or 52 weeks per year, and the management estimates the value of the loyal customer over the buying life cycle as $520. The customer defection rate

A kiosk at an airport that allows passengers to check their baggage would be an example of a lean servicescape environment. Answer: T T T Summarize the supply chain operations reference (SCOR) model. Answer: The supply chain operations reference (SCOR) model is a framework for understanding the scope of supply chain management (SCM) that is based on

Customer ratings of goods and services are quality performance measurements at an operational level. Answer: F F F According to the single-server queuing model, when , the operating characteristics are not defined, which means that these times and numbers of items grow infinitely large. Answer: T T T Answer: A company is measuring the time it takes to complete an

What is the implied service rate at a bank teller's window if demand is 26 customers per hour and the bank staffs are 3 tellers with an average utilization of 80%? a. Less than 5 customers per hour b. More than 5 but less than or equal to 10 customers per hour c. More

For a given cycle time in line balancing, assembly-line efficiency can be increased by _____. a. speeding the assembly line b. slowing the assembly line c. decreasing the number of workstations d. increasing the number of workstations Answer: C C C Which level of the facility location hierarchy is most closely related to factors such as managers' preferences, services

In a production inventory, (a month's production) + (beginning inventory) - (ending inventory) (number of lost sales for the month) = _____. a. overtime limits b. demand in the month c. increase in production d. decrease in production Answer: B B B _____ is measured by order fulfillment lead time or perfect delivery fulfillment. a. Responsiveness b. Delivery reliability c. Supply

A big city automobile quick oil change store can process 20 vehicles per hour over its multiple bays. Each mechanic can change the oil and do other related tasks at a rate of one car every 20 minutes. If the center wanted a target labor utilization of 90%, how many

Like the shortest processing time (SPT) rule, the earliest due date (EDD) rule minimizes the average flow time. Answer: F F F Explain the four components of the cost of quality. Answer: Quality costs can be organized into the following four major categories. Quality costs can be organized into the following four major categories. Quality costs can be

Historically, the average proportion of defective bars has been 015. Samples will be of 100 bars each. Construct a p-chart using . Suppose a sample had 0.044 defectives. What would be the best action to take in this scenario? a. Nothing; it appears to be random variation. b. Look for assignable causes. c.

Revenue management systems (RMS): a. consist of standard and static methods to forecast demand. b. rely solely on overbooking. c. are cost minimization models. d. maximize the revenue generated by a perishable asset. Answer: D D D Cause-and-effect diagrams would help most in which phase of the DMAIC problem-solving approach? a. Define b. Measure c. Analyze d. Control Answer: C C C Using two-digit random numbers, the interval

In a single-period inventory situation, the only inventory decision is when to trigger an order. Answer: F F F FedEx is an example of a customer-to-customer value chain. Answer: F F F The term 'six sigma" is based on a statistical measure that equates to at most 3.4 errors or defects per million opportunities. Answer: T T T Offshoring is a phenomenon by which

Large capacity increases help to spread fixed costs of construction and operating system setup over one large project. Answer: T T T For Dell Inc., the push-pull boundary is very early in the supply chain, where suppliers store inventory for frequent deliveries to Dell factories. Answer: T T T Determine the sample size for the following time study given a standard

All the following are means to manage capacity by changingorstimulating demand EXCEPT: a. varying price of goods or services. b. adding peripheral goods and/or services. c. providing reservations. d. shifting work to slack periods. Answer: D D D A fixed-period (FPS) inventory system: a. orders a fixed-period quantity when the inventory position reaches or drops below the reorder point (r). b. chooses a

Activity times are always estimated from historical data of similar work tasks to provide realism for a project. Answer: F F F Define regression analysis and explain how it is an approach to forecasting. Answer: Regression Analysis is a method for building a statistical model that defines a relationship between a single dependent variable and one or

Which of the following statements is NOT TRUE regarding the fixed-period system (FPS)? a. The time between orders is constant, but the order quantity might vary. b. An order is time-triggered, not inventory-triggered. c. The optimal replenishment level includes the demand during the review period, plus any desired safety stock. d. When demand is

The forecasting error measurement that eliminates the measurement scale factor is the _____. a. mean square error (MSE) b. mean absolute deviation (MAD) c. root mean square error (RMSE) d. mean absolute percentage error(MAPE) Answer: D D D A company has a project based on Project Evaluation and Review Technique (PERT) with path b-d-e-g-i that has the following activity

OM5 C1 Test Bank 1 Chapter 1 Goods, Services, and Operations Management Multiple Choice 1. The three issues that are at the core of operations management include all of the following EXCEPT _____. a. cost b. quality c. tangibility d. efficiency ANS: C ANS: C ANS:

OM5 C10 Test Bank 1 Chapter 10 Capacity Management Multiple Choice 1. In service organizations, capacity is more often viewed as _____. a. the minimum rate of output per unit time b. the units of resource availability c. the ability to meet any customer

OM5 C11 Test Bank 13 ANS: The planning horizon is the length of time on which a forecast is based. Long-range forecasts cover a planning horizon of 1 to 10 years and are necessary to plan for expansion of facilities and to determine future needs for land, labor, and

OM5 C11 Test Bank 1 Chapter 11Forecasting and Demand Planning Multiple Choice 1. _____ forecasts are needed to plan workforce levels, allocate budgets among divisions, and schedule jobs and resources. a. Long-range b. Intermediate-range c. Short-range d. Demand planning ANS: B ANS: B ANS:

OM5 C12 Test Bank 1 ANS: A 1 ANS: A 1 ANS: A Chapter 12Managing Inventories Multiple Choice 1. Which of the following is NOT TRUE regarding inventory management? a. The two fundamental inventory decisions are: where to order and what to order. b.

OM5 C12 Test Bank 15 ANS: B (5*25 = $125/2.2 = $56.82/SKU line item; based on Hardy case; EOQ requires marginal cost estimates per SKU) 15 ANS: B (5*25 = $125/2.2 = $56.82/SKU line item; based on Hardy case; EOQ requires marginal cost estimates per SKU) 15

OM5 C13 Test Bank 21 a. Using a level production plan, how many workers would be needed each quarter? b. For a level production plan, what is the beginning inventory in quarter 2? c. Using a level production plan, in how many quarters are the machine requirements over

OM5 C13 Test Bank 1 Chapter 13Resource Management Multiple Choice Problem A for Questions #1 & #2 The bill of materials (BOM) for end item A is shown below: A C (4) B (2) D (3) E D (1) F (2) _____________________________________________________________________________ ____

OM5 C13 Test Bank 32 Week 1 2 3 4 5 6 Net Requirements 150 200 50 300 250 100 Beg. Inventory Production Lots 150 200 50 300 250 100 End Inventory b. Setup costs = 6 x $1000 = $6000 Carrying costs = $ 0 Total cost = $6000

1 ANS: D Sequence the jobs C-D-B-A-E. Calculations are shown below: Job Flow time Lateness Tardiness C 3 3 6 = 3 0 D 3 + 7 = 10 10 7 = 3 3 B 10 + 4 = 14 14 9 = 5 5 A 14 + 8

OM5 C15 Test Bank 1 Chapter 15Quality Management Multiple Choice 1. In SERVQUAL, the instrument for measuring service quality, the concept of assurance is associated with _____. a. the ability to convey trust and confidence b. individualized (customized) attention c. providing consistent service d. performing a service

OM5 C16 Test Bank 20. An R-chart is always analyzed first because the control limits in the R-chart depend on the mean of the data. ANS: F ANS: F ANS: F 21. As long as there are no points outside of the control limits in a control

OM5 C16 Test Bank Chapter 16Quality Control and SPC Multiple Choice 1. In the 1:10:100 Rule, which of the following would be correct? a. If a defect or service error is identified and corrected at the design stage, it might cost $100 to fix. b. If

ANS: B ANS: B ANS: B OM5 C17 Test Bank Chapter 17Lean Operating Systems Multiple Choice 1. Principles of lean operating systems include all of the following EXCEPT _____. a. eliminating waste b. improving information technology c. increasing speed and response d. reducing costs

OM5 C18 Test Bank 1 Chapter 18Project Management Multiple Choice 1. Which of the following is NOT considered a project? a. Writing and implementing a computer program b. Introducing a new product c. Production of soft drinks d. Building a bridge ANS: C ANS:

OM5 C18 Test Bank 19 2. Plan: In this stage, the steps needed to execute a project are defined, it is determined who will perform these steps, and the start and completion dates are developed. Planning entails breaking down a project into smaller activities and developing a project schedule

OM5 C2 Test Bank 1 Chapter 2 Value Chains Multiple Choice 1. In order to increase value, an organization must do all of the following EXCEPT: a. increase perceived benefits while holding price or cost constant. b. increase perceived benefits while reducing price or cost. c. keep

OM5 C3 Test Bank 12 basis for improvement efforts. ANS: T ANS: T ANS: T 15. Speed is usually measured in clock time, whereas variability is measured by quantifying the variances around average performance or targets. ANS: T ANS: T ANS: T 16. Queue

OM5 C3 Test Bank 1 Chapter 3Measuring Performance in Operations Multiple Choice 1. _____ is the act of quantifying the performance of organizational units, goods and services, processes, people, and other business activities. a. Measurement b. Forecasting c. Fulfillment d. Deployment ANS: A ANS: A ANS:

OM5 C4 Test Bank 1 Chapter 4Operations Strategy Multiple Choice 1. A firms ability to achieve market and financial superiority over its competitors is called _____. a. operations strategy b. strategic planning c. competitive advantage d. competitive priority ANS: C ANS: C ANS: C 2.

OM5 C5 Test Bank 1 Chapter 5Technology and Operations Management Multiple Choice Problems #1 and #2 1. A company is considering two alternative technologies for manufacturing a product. The cost data are shown below. A B Fixed Cost $10,000 $25,000 Variable Cost $30/unit $5/unit ANS:

OM5 C6 Test Bank 1 ANS: D 1 ANS: D 1 ANS: D Chapter 6Goods and Service Design Multiple Choice Questions 1. Prior to designing and configuring a customer benefit package, a firm should understand and develop its: a. detailed goods, services, and process

OM5 C6 Test Bank 14 3. In general, the designs of both goods and services follow a similar path. The critical differences lie in the detailed product and process design phases. ANS: T ANS: T ANS: T 4. The design of a service cannot be

1 Chapter 7Process Selection, Design, and Analysis Multiple Choice 1. Ships, weddings, and estate planning are examples of _____ goods and services. a. make-to-order b. assemble-to-order c. make-to-stock d. continuous flow ANS: A ANS: A ANS: A 2. Subways sandwich process is best

12ANS: F 12ANS: F 12 ANS: F producing firms. ANS: T ANS: T ANS: T 17. The service-positioning matrix suggests that services should try to position themselves off the diagonal in order to achieve superior performance. ANS: F ANS: F ANS: F

OM5 C8 Test Bank 1 Chapter 8Facility and Work Designs Multiple Choice 1. All of the following are common objectives of layout studies EXCEPT to: a. minimize delays in materials handling and customer movement. b. minimize the number of workstations. c. provide for good housekeeping and

OM5 C8 Test Bank 13 ANS: T 13 ANS: T 13 ANS: T ANS: F ANS: F ANS: F 19. Cycle time should be smaller than the largest operation time. ANS: F ANS: F ANS: F 20. Cycle time is related to the

OM5 C9 Test Bank 1 ANS: A ANS: A ANS: A Chapter 9Supply Chain Design Multiple Choice 1. _____ are warehouses that act as intermediaries between factories and customers, shipping directly to customers or to retail stores where products are made available to customers. a. Distribution

What are some management strategies to improve process designs? Answer: Management strategies to improve process designs usually focus on one or more of the following: Management strategies to improve process designs usually focus on one or more of the following: Management strategies to improve process designs usually focus on one or more of the

How does total productive maintenance (TPM) affect lean operating systems? Answer: Total productive maintenance (TPM) is focused on ensuring that operating systems will perform their intended function reliably. The goal of TPM is to prevent equipment failures and downtime, ideally, to have "zero accidents, zero defects, and zero failures" in the

A company is seeking to develop a master production schedule for its product. Their beginning inventory is 1000 units, and they want to maintain a safety stock level of 1000 units. They produce the product in a fixed lot size of 1200 units. Information regarding weekly demand is shown below: Answer: a.

Give three examples of goods or services associated with each of the process types: project, job shop, flow shop, and continuous flow. Answer: Examples for project process:Examples for job shop process:Examples for flow shop process:Examples for continuous flow process: Examples for project process:Examples for job shop process:Examples for flow shop process:Examples for continuous

A critical part has a manufacturing specification (in cm) of 0.325 010. Based on historic information, if this measurement is larger than 0.335 or smaller than 0.315 the product fails at a cost of $120. Determine the Taguchi loss function. a. L(x) = 1,200,000 (0.325 315)2 b. L(x) = 1,200,000 (x

A Gallup study showed that workers who are allowed to personalize their workplaces were no more productive than those who are not allowed. Answer: F F F The demand for services is usually easier to predict than the demand for goods. Answer: F F F Describe an experience curve. Answer: A broader extension of the learning curve is the experience curve. The

Which of the following is NOT a best practice and prerequisite for implementing a just-in-time system? a. Maximizing the number of parts or items b. Good calibration of all gauges and testing equipment c. Clean and uncluttered workplaces d. Minimizing setup/changeover time Answer: A A A The typical layout of facilities in a legal office would be an example

The manager of a gas station along an interstate highway has observed that gasoline sales generally increase each week over the summer months as more families travel by car on vacations. He also believes that sales are sensitive to fluctuations in the price of gasoline. He developed the following regression

Which of the following is NOT an advantage of simulation? a. It provides a convenient experimental laboratory. b. It can perform "what-if" studies. c. It does not disrupt the current process. d. It guarantees accuracy of outputs. Answer: D D D William Green, vice president of manufacturing for Computer Products Corporation (CPC), and his staff are studying three midwestern

In ABC inventory analysis, which of the following is TRUE of class C items? a. Close control of Class C items (more than of class A or class B items) is required. b. Class C items are critical items that must be monitored with a fixed-period system as they have low unit

Explain the structure and purpose of a decision tree. Answer: A decision tree is a graphical schematic of the logical order with which decisions are madeand events occur. Decision trees can be of substantial benefit in helping decision makers tologically determine what decisions need to be made and how to react to

A high definition television manufacturer in Asia wants to develop a new smart television as fast as possible using Program Evaluation and Review Technique (PERT) and must complete the design and testing work first. The objective is to be the first to market the most innovative smart television on the

The servicescape refers to the place where a service is located. Answer: F F F An automobile emission testing center has six (6) inspectors and tests 60 vehicles per hour. Each inspector can inspect thirteen (13) vehicles per hour. What is the center's utilization? Answer: Utilization (U) = Demand Rate / [Service Rate Number of Servers]U =

Which of the following is NOT a part of Philip Crosby's philosophy of quality? a. Quality means conformance to requirements, not elegance. b. The only performance standard that matters is profits. c. There is no such thing as a quality problem. d. The only performance measurement is the cost of quality, which is the

Define material requirements planning (MRP) and how it can benefit an organization. Answer: Material requirements planning (MRP) is a forward-looking, demand-based approach for planning the production of manufactured goods and ordering materials and components to minimize unnecessary inventories and reduce costs. MRP projects the requirements for theindividual parts or subassemblies based

When break-even analysis is applied to an outsourcing decision, the break-even quantity is _____. a. the ratio of fixed costs to the difference between variable outsourcing cost and variable in-house production cost b. the ratio of the difference between variable outsourcing cost and variable in-house production cost to fixed costs c. the product

Which of the following is NOT a principal issue in service-encounter design? a. Process and job design b. Customer-contact behavior and skills c. Service-provider selection, development, and empowerment d. Recognition and reward Answer: A A A According to the David Christopher, Orthopedic Surgeon, case study, which of the following statements is TRUE? a. Total setup and changeover time for both

Mean absolute deviation (MAD), mean square error (MSE), and mean absolute percentage error (MAPE) forecast error metrics generally giving similar numerical results so it does not matter which one is used. Answer: F F F The center-of-gravity model minimizes the weighted distance between the facility to be located and its supply and demand points. Answer: T T T What is

All of the following are important criteria in choosing a forecasting method EXCEPT: a. the smoothing constant (). b. the time span for which the forecast is made. c. the data requirements. d. the quantitative skills needed. Answer: A A A Dell's ability to provide a wide range of customized computer hardware to accommodate customers' needs best describes _____. a.

A quality characteristic has a manufacturing specification (in cm) of 200 05. Historical data indicate that if the quality characteristic takes on values larger than 0.25 cm or smaller than 0.15 cm, the product fails and a cost of $75 is incurred. Given the Taguchi loss function that was computed

The production engineering group at the Singapore plant of a computer company has been put in charge of the production of a new type of printer. The printer will be built via an assembly line. The plant manager must design the assembly line for the printer. He has been advised

A company manufactures tractors and lawnmowers. They have received an order for six deluxe custom riding lawnmowers for a local golf course. They must develop a cost estimate for the order. It is estimated that the first lawnmower will take 90 hours of shop time and a 75 percent learning curve

A group of tasks needed to create and deliver an intermediate or final output is called an activity. Answer: T T T Over several days, 25 samples of 100 items each were tested for electrical resistance. A total of 60 items failed. Determine the control limits for a p-chart. Answer: p-bar = 60/(25 x 100) = 0.024Standard deviation

List the three principles of total quality. Answer: The principles of total quality are: The principles of total quality are: The principles of total quality are: Single minute exchange of dies (SMED) frees up capacity for other productive uses. Answer: T T T Diseconomies of scale is also known as capacity cushion. Answer: F F F Many practical inventory situations include backorders and quantity

Time-based competition means providing new and innovative products that surprise and delight customers. Answer: F F F A value chain describes the flow of customer information through a production system. Answer: F F F List the variety of economic and noneconomic issues to be considered when making offshore decisions. Answer: Economic issues includelow labor costs, lower import duties and fees, lower capital costs,

Ayben is responsible for managing an advertising and promotion project using Program Evaluation and Review Technique (PERT) with the following activities (times are given in weeks). Draw the project network here. BLANK SPACES Using the table for the advertising and promotion project, which activity has the largest slack, and how large is that

Cycle time in assembly-line balancing is the maximum amount of time it takes to process a part at some workstation along the line. Answer: F F F For a Marriott hotel call center, the expected service rate was 3.0 minutes per telephone call per customer service representative (CSR). With 3 telephone CSRs on-duty during the

Total productive maintenance (TPM) seeks to do all of the following EXCEPT _____. a. maximizing equipment effectiveness b. creating worker ownership of equipment by involving them in maintenance activities c. fostering continuous improvement efforts d. enabling multiple products in small batches to be run on the same equipment Answer: D D D Which of the following is lowest in

Idle capacity exists in a _____ activity. a. bottleneck work b. booking c. nonbottleneck work d. nonphysical Answer: C C C _____ have the primary responsibility to design and manage the processes and associated resources that create value for customers. a. Operations managers b. Testers c. First-line supervisors d. End users Answer: A A A A new surgical facility called Cut & Sew is opening in neighborhoods throughout

_____ is the act of quantifying the performance of organizational units, goods and services, processes, people, and other business activities. a. Measurement b. Forecasting c. Fulfillment d. Deployment Answer: A A A In the context of the perspectives of a value chain, product and service guarantees, contract negotiations and consulting services would be considered as _____. a. preproduction services b. production

Toyota classified waste into seven major categories. These categories include all of the following EXCEPT _____. a. motion b. ordering c. inventory d. waiting time Answer: B B B A paint company has three sources for buying bright red pigment for their paints: Vietnam, Taiwan, or Thailand. Unfortunately, the pigment is made from a bush whose annual growth is

Which of the following statements is NOT true of goods and services? a. Service encounters can be between a customer and a service provider. b. Services cannot be stored as inventory for future sale. c. A shoe is a durable good that provides a service. d. Normally, patents do not protect services. Answer: C C C Regression models are

A family rents videos from a local video store. On an average, they spend $80 a month. The store's contribution margin is 45 percent and the average customer defection is 40 percent. Determine the value of a loyal customer. a. Less than or equal to $500 b. More than $500 and less