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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 […]

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 […]

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 […]

OM4 C10 IM 10. For the Solved Problem on processing driver’s 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 […]

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 2. […]

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 […]

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 […]

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 […]

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, […]

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 year’s calendar arrives in September. From past experience the September-to-July demand for the calendars can be approximated […]

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 […]

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 […]

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 […]

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 […]

OM5 – C14 IM 9. Mike Reynolds has four assignments due in class tomorrow, and his class times are as follows. Class Time Each class lasts one hour, and Mike has no other classes. It is now midnight, and Mike […]

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 […]

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 4. Find two examples similar to the Intel box in […]

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 14. Describe some examples of poka-yoke in consumer products or […]

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. […]

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 […]

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 […]

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 […]

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 […]

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, […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 How does your example application improve things, or […]

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 […]

OM4 Chapter 6: Goods and Service Design Discussion Questions 1. How might today’s 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 […]

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 […]

OM5 Chapter 7: Process Selection, Design, and Analysis Discussion Questions 1. What type of process—project, job shop, ow shop, and continuous ow— would most likely be used to produce the following? Explain your reasoning. a. Apple iPads – ow shop […]

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 […]

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 2. Describe the layout of 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 […]

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 […]

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 […]

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 […]

ANS: T ANS: T ANS: F ANS: F ANS: F ANS: T ANS: T ANS: T ANS: F OM5 Test Bank Supplementary Chapter A 1 APPENDIX 1 TRUE/FALSE 1. Job and process analysis should follow work measurement. 2. Normal time […]

ANS: F ANS: F ANS: T ANS: T ANS: F ANS: T ANS: F ANS: T OM5 Test Bank Supplementary Chapter B 1 Supplementary Chapter B—Queuing Analysis TRUE/FALSE 1. Many analytical queuing models exist, each based upon unique assumptions about […]

ANS: F ANS: F ANS: T ANS: T ANS: T ANS: T ANS: F OM5 Test Bank Supplementary Chapter C 1 ANS: F Supplementary Chapter C—Modeling Using Linear Programming TRUE/FALSE 1. The term ‘programming’ is used in linear programming because […]

ANS: T ANS: F ANS: T ANS: F ANS: T ANS: T ANS: T ANS: F ANS: T OM5 Test Bank Supplementary Chapter D 1 Supplementary Chapter D — Simulation TRUE/FALSE 1. In general, as the number of probabilistic components […]

ANS: T ANS: F ANS: T ANS: F ANS: T OM5 Test Bank Supplementary Chapter E 1 Supplementary Chapter E — Decision Analysis TRUE/FALSE 1. Making decisions in an emergency room of a hospital is an example of a decision […]

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. […]

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 […]

In most organizations, projects cut across organizational boundaries, making it difficult to implement projects exclusively within functional departments. Answer: Service-encounter repeatability provides a measure analogous to product volume for goods-producing firms. Answer: T The costs associated with maintenance and inspection […]

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: After a master production schedule (MPS) is created for finished goods, the demand for all […]

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 […]

A kiosk at an airport that allows passengers to check their baggage would be an example of a lean servicescape environment. Answer: Summarize the supply chain operations reference (SCOR) model. Answer: The supply chain operations reference (SCOR) model is a […]

Customer ratings of goods and services are quality performance measurements at an operational level. Answer: 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 […]

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 […]

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: Which level […]

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: _____ […]

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 […]

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

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. […]

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: Cause-and-effect diagrams would help most in […]

In a single-period inventory situation, the only inventory decision is when to trigger an order. Answer: FedEx is an example of a customer-to-customer value chain. Answer: F The term ‘six sigma” is based on a statistical measure that equates to […]

Large capacity increases help to spread fixed costs of construction and operating system setup over one large project. Answer: For Dell Inc., the push-pull boundary is very early in the supply chain, where suppliers store inventory for frequent deliveries to […]

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: A fixed-period (FPS) inventory system: […]

Activity times are always estimated from historical data of similar work tasks to provide realism for a project. Answer: Define regression analysis and explain how it is an approach to forecasting. Answer: Regression Analysis is a method for building a […]

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 […]

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: A company has a project […]

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 […]

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 […]

OM5 C11 Test Bank 27. Judgmental forecasting should only be used if no historical data are available. ANS: F 28. The Delphi method is a forecasting approach that is based on expert opinion. ANS: T 29. Aggregate forecasts are generally […]

OM5 C11 Test Bank 1 Chapter 11—Forecasting 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 2. […]

OM5 C12 Test Bank Chapter 12—Managing 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. Inventory management applies to goods […]

OM5 C12 Test Bank 28. Because of demanding customers, organizations must always maintain a 100 percent service level. ANS: F 29. In general, total ordering costs are equal to total inventory-holding cost for the optimal solution to the economic order […]

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 […]

OM5 C13 Test Bank 1 Chapter 13—Resource 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 […]

OM5 C13 Test Bank 32 Week 1 2 3 4 5 6 Net Requirements 150 200 50 300 2 5 0 100 Beg. Inventory Production Lots 150 200 50 300 2 5 0 100 End Inventory b. Setup costs = […]

OM5 C14 Test Bank ANS: C Sequence the jobs as C-B-E-D-A. Flow times are: C 3 B 3 + 4 = 7 E 7 + 5 = 12 D 12 + 7 = 19 A 19 + 8 = 27 […]

OM5 C15 Test Bank 1 Chapter 15—Quality 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. […]

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. 21. As long as there are no points outside of the control limits in a […]

OM5 C16 Test Bank Chapter 16—Quality 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 […]

OM5 C17 Test Bank Chapter 17—Lean 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 2. Which […]

OM5 C18 Test Bank 1 Chapter 18—Project 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 […]

OM5 C18 Test Bank 19 3. Explain the role of project managers and some principles for success. ANS: Project managers must build an effective team, motivate them, provide advice and support, align the project with the firm’s strategy, and direct […]

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 […]

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

OM5 C3 Test Bank 1 Chapter 3—Measuring 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. […]

OM5 C4 Test Bank 1 Chapter 4—Operations Strategy Multiple Choice 1. A firm’s ability to achieve market and financial superiority over its competitors is called _____. a. operations strategy b. strategic planning c. competitive advantage d. competitive priority 2. Basic […]

OM5 C5 Test Bank 1 Chapter 5—Technology 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 […]

OM5 C6 Test Bank Chapter 6—Goods 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 design. b. process and service […]

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. 4. The design of a service cannot be done […]

1 Chapter 7—Process 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 2. Subway’s sandwich process is best described as: a. […]

producing firms. 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 18. In service operations, significant volume increases can and frequently are made without […]

OM5 C8 Test Bank 1 Chapter 8—Facility 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. […]

OM5 C8 Test Bank ANS: F 19. Cycle time should be smaller than the largest operation time. ANS: F 20. Cycle time is related to the output rate and the available time to produce output. ANS: T 21. Because of […]

OM5 C9 Test Bank 1 Chapter 9—Supply 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: Explain the concept of reliability. Answer: Reliability is the probability that a manufactured good, piece of equipment, or system Management strategies to improve process designs usually focus on one or […]

How does total productive maintenance (TPM) affect lean operating systems? Answer: Tardiness measures the amount of time by which the completion time exceeds the due date. Answer: T The goal of total productive maintenance (TPM) is to minimize the costs […]

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 […]

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 […]

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 […]

A Gallup study showed that workers who are allowed to personalize their workplaces were no more productive than those who are not allowed. Answer: The demand for services is usually easier to predict than the demand for goods. Answer: F […]

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 […]

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 […]

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: William Green, […]

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 […]

Explain the structure and purpose of a decision tree. Answer: An order fulfillment process normally operates two shifts a day, five days per week. Under normal conditions, 380 orders can be processed per shift. What is the daily capacity? Answer: […]

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 […]

The servicescape refers to the place where a service is located. Answer: 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 […]

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 […]

Define material requirements planning (MRP) and how it can benefit an organization. Answer: For the multiple-server queuing model to apply, the overall mean service rate should be greater than the mean arrival rate. Answer: T Material requirements planning (MRP) is […]

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 […]

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: According to the David Christopher, Orthopedic Surgeon, […]

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: The center-of-gravity model minimizes the weighted distance between […]

All of the following are important criteria in choosing a forecasting method EXCEPT: a. the smoothing constant (α). b. the time span for which the forecast is made. c. the data requirements. d. the quantitative skills needed. Answer: Dell’s ability […]

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 […]

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 […]

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 […]

A group of tasks needed to create and deliver an intermediate or final output is called an activity. Answer: Over several days, 25 samples of 100 items each were tested for electrical resistance. A total of 60 items failed. Determine […]

List the three principles of total quality. Answer: Single minute exchange of dies (SMED) frees up capacity for other productive uses. Answer: T Diseconomies of scale is also known as capacity cushion. Answer: F The principles of total quality are: […]

Time-based competition means providing new and innovative products that surprise and delight customers. Answer: A value chain describes the flow of customer information through a production system. Answer: F List the variety of economic and noneconomic issues to be considered […]

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 […]

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: For a Marriott hotel call center, the expected service rate was 3.0 minutes per telephone call […]

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 […]

Idle capacity exists in a _____ activity. a. bottleneck work b. booking c. nonbottleneck work d. nonphysical Answer: _____ have the primary responsibility to design and manage the processes and associated resources that create value for customers. a. Operations managers […]

_____ 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: In the context of the perspectives of a value chain, product […]

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: A paint company has three sources for buying bright red pigment for their paints: […]

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 […]

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. […]