A kanban control system uses a signaling device to regulate JIT flows.
MRP is most valuable where a number of products are made in batches using the same
productive equipment.
A workcenter is a basic production layout format in which similar equipment or
functions are grouped together.
The flow of work through a hospital is sometimes referred to as a care chain.
Using the random order or “whim” priority rule to sequence production jobs means that
supervisors or operators select whichever job they feel like running.
DRGs (diagnostic-related groups) classify patients by diagnosis or surgical procedure
into major diagnostic categories based on the premise that treatment of similar medical
diagnoses will generate similar costs.
Green and black belt programs teach six-sigma quality tools to managers at many
corporations.
Spreadsheet simulations have become obsolete due in part to specialized computer
simulation languages like SLAM or SIMAN.
Attempting to balance the desire to efficiently use resources while providing a highly
effective service may create conflict between the two goals.
The closer the customer is to the customer order decoupling point, the more quickly the
customer receives the product.
Incorporation of environmental considerations in the design and development of
products or services is called ecodesign.
The process when a company seeks to match the benefits of a successful position while
maintaining its existing position by adding new features, services, and technologies into
its current portfolio it is called straddling.
The way to build in greater flexibility in your workers is to do which of the following?
A. Pay higher wages to motivate a willingness to do a variety to tasks.
B. Provide a broader range of training.
C. Provide a wide variety of technology to augment workers skills.
D. Institute a “pay for skills” program.
E. Use part-time employees with specialized skills as needed.
You want to determine the control lines for a -chart for quality control purposes. If the
desired confidence level is 99 percent, which of the following values for “z” would you
use in computing the UCL and LCL?
A. 0.99
B. 2
C. 2.58
D. 3
E. None of these
Which of the following is a reason that there are disparities between a firm’s learning
curve rate and that of its industry?
A. Companies don’t always report sensitive data to outside agencies accurately.
B. Learning curves don’t reflect organizational learning.
C. There may be procedural differences in the manner that different firms collect and
report data.
D. The starting points for different firms were different.
E. The cumulative number of units produced is different.
Which of the following is the planned-order release using an MRP program if the gross
requirement is 670 and the inventory on hand is 600?
A. 670
B. 600
C. 530
D. 70
E. None of these
Which of the following is a characteristic that can be used to guide the design of service
systems?
A. Services cannot be inventoried.
B. Services are all similar.
C. Quality work means quality service.
D. Services businesses are inherently entrepreneurial.
E. Even service businesses have internal services.
Which of the following is an alternative possible service encounter included in the
service-system design matrix?
A. Face-to-face distance
B. Internet
C. Questionnaire response
D. Automated teller (ATM)
E. Response card encounter
System integration and validation are an important step in which variant of the generic
product development process?
A. Technology-push products
B. Customized products
C. Complex systems
D. Quick-build products
E. Process-intensive products
Which of the following is the cost of quality classification for costs such as defects that
pass through the system (e.g., customer warranty replacements, loss of customer or
goodwill, handling complaints, and product repair)?
A. Appraisal costs
B. Prevention costs
C. External failure costs
D. Customer return cost
E. Workmanship costs
In Hau Lee’s uncertainty framework to classify supply chains, a supply chain for
innovative products with an evolving supply process is called which of the following?
A. Efficient
B. Forward looking
C. Agile
D. Risk hedging
E. Responsive
Quality function deployment (QFD):
A. Is a manufacturing function aimed at lowering cost by reducing the portion of
rejected units.
B. Fills the house of quality matrix with the designer’s aspirations for the product.
C. Starts with studying and listening to customers.
D. Is a place where the quality assurance function is housed.
E. Is another term for value engineering.
A job has 5 days of processing time left to do before completion, and today is the 10th
day of the month. If the job is due on the 14th day of the month, what is its critical
ratio?
A. 5
B. 2
C. 0.8
D. 0.5
E. 0.1
You are developing an X-bar chart based on sample means. You know the standard
deviation of the sample means is 4, the desired confidence level is 99.7 percent, and the
average of the sample means is 24. Which of the following is your UCL?
A. 36
B. 24
C. 12
D. 4
E. None of these
According to the theory of constraints, which of the following is a financial
measurement that can be used to measure the firm’s ability to make money?
A. Operating expenses
B. Cash flow
C. Inventory
D. Sales
E. Dividends
Various financial data for SunPath Manufacturing for 2012 and 2013 follow.
What is the percentage change in SunPath’s total productivity measure between 2012
and 2013?
A. -9.22
B. 2.33
C. -0.53
D. 2.88
E. 10.39
If a vendor has correctly used marginal analysis to select its stock levels for the day (as
in the newsperson problem in the text), and if the profit resulting from the last unit
being sold (Cu) is $120 and the loss resulting from that unit if it is not sold (Co) is $360,
which of the following is the probability of the last unit being sold?A. Greater than 0.90
B. Greater than 0.85
C. Greater than 0.75
D. Greater than 0.25
E. None of these
From Equation 20.1, P ≤ Cu/(Cu + Co) = 120/480 = 0.25. Because P is the
probability that the unit will not be sold and 1 – P is the probability of it being sold, the
answer to this question is 1 – 0.25 or 0.75.
You are going to develop an R-chart based on range statistics, and you are using a
sample size of 9 for your charting purposes. Which of the following is the lower control
limit D3 factor for the chart?
A. 0.08
B. 0.14
C. 0.18
D. 0.22
E. 0.29
A simple project listing of five activities, their predecessors, and their respective time
estimates are presented here:
Using CPM, what is the latest finish time for the last activity in this project (i.e., the
total time to complete the project)?
A. 10 days
B. 7 days
C. 8 days
D. 12 days
E. 9 days
Which of the following is a suggestion for managing queues presented in the textbook?
A. Train your servers to be friendly.
B. Tell customers that the line should encourage them to come during slack periods.
C. Give each customer a number.
D. Periodically close the service channel to temporarily disperse the line.
E. Use humor to defuse a potentially irritating situation.
Which of the following is not a step used in determining production capacity
requirements?
A. Forecasting to predict product sales
B. Forecasting raw material usage
C. Projecting availability of labor
D. Calculating equipment and labor needs
E. Projecting equipment availability