CPM is an abbreviation for Critical Path Method.
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In Japan we would expect a focused factory to be small and have only somewhere
between 30 and 1,000 workers.
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Heijunka is a Japanese word that means to smooth the production flow.
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Poka-Yokes are procedures that block the inevitable mistake from becoming a service
defect.
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Continual review and updating in light of new data is a forecasting technique called
second-guessing.
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Buffer inventory in front of a bottleneck is called a time buffer.
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Inventory turn values that are considered “good” differ by industry and the type of
products being handled.
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Consulting has become one of the major areas of employment for business graduates.
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Technological advances in manufacturing can be classified in two ways: either they are
economically justifiable or they are environmentally justifiable.
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Some inventory situations involve placing orders to cover only one demand period or to
cover short-lived items at frequent intervals.
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Service supply chains focus on the interaction between the customer and the provider,
while manufacturing supply chains focus on the creation and delivery of a physical
good.
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If the fraction defective is 0.12 based on a sample size of 16, the standard deviation
used in the “p” chart is about 0.08.
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If the cost to change from one product to another were zero the lot size would be very
small.
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In Japanese manufacturing automation and robotics are used extensively to perform dull
or routine jobs so employees are free to focus on important improvement tasks.
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The deeper one looks into the product creation sequence, the more the requirements of
dependent demand items tend to smooth out and become even over time.
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Special-Purpose Simulation Software is specially built to run specific applications that
have provisions in manufacturing models to allow for specifying the number of work
centers, their descriptions, arrival rates and even batch sizes.
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Activity-based costing allocates traceable overhead to product cost based on the amount
of an activity required to produce a product.
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A service operation by its very nature is a make-to-stock type of production process.
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Computer inventory systems are often programmed to produce a cycle count notice in
which following case?
A.When the record shows a near maximum balance on hand
B.When the record shows positive balance but a backorder was written
C.When quality problems have been discovered with the item
D.When the item has become obsolete
E.When the item has been misplaced in the stockroom
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Which of the following is a dynamic lot-sizing technique that calculates the order
quantity by comparing the carrying cost and the setup (or ordering) costs for various lot
sizes and then selects the lot size in which these are most nearly equal?
A.Kanban
B.Two-bin system
C.MRP II
D.Least unit cost
E.Least total cost
Answer:
Using the fixed-time period inventory model and given an average daily demand of 15
units, 3 days between inventory reviews, 1 day for lead time, 30 units of inventory on
hand, a service probability of 98 percent and a standard deviation of daily demand is 3
units, which of the following is the order quantity?
A.About 30.4
B.About 42.3
C.About 53.7
D.About 56.8
E.About 59.8
Answer:
Design of experiments is a statistical methodology often used in six-sigma projects. It
aims to accomplish which of the following?
A.Keep careful track of the occurrences of each possible defect
B.Determine the cause and effect relationships between process variables and output
C.Report defects to management on a Pareto chart
D.Carefully change each individual process variable until the cause of a defect is found
E.Eliminate defects by finding out who or what is causing them
Answer:
Radical changes in operations and supply chain management are advocated by
proponents of which of the following?
A.Business process reengineering
B.Electronic commerce
C.Total quality management
D.Manufacturing strategy
E.Mergers and acquisitions
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Which of the following are not viewed as advantages of simulation in operations
management decision making?
A.Simulations are easy to run and easy to explain to upper management
B.Time can be compressed
C.Simulations do not disrupt ongoing activities of the real system
D.Simulations can be used to analyze transient conditions
E.Developing a simulation model can lead to better understanding of the real system
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An advantage that work sampling has over time study is:
A.Observers can develop a repetitive route of travel
B.Provides more accurate information when the work cycle is short
C.Effects of short-term variations are minimized
D.Results are available more promptly
E.A union is less likely to dispute the results
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A company can produce a small lot of products the first time at a cost of $3,000. If their
65 percent Learning Curve allows them to reduce their costs on each lot, what is the
cost of producing the 20th lot?
A.$60,000
B.$18,585
C.$1,950
D.$466.20
E.$155.40
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Given a prior forecast demand value of 230, a related actual demand value of 250 and a
smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for
the following period?
A.230
B.232
C.238
D.248
E.250
Answer:
Capacity planning involving acquisition or disposal of fixed assets such as buildings,
equipment or facilities is considered as which one of the following planning horizons?
A.Intermediate-range
B.Long-range
C.Short-range
D.Current
E.Upcoming
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Which of the following are related to lean production?
A.A philosophy of waste elimination
B.Lean consumption
C.Never running out of inventory
D.The Waehi-Subaru method
E.Full use of capacity
Answer:
A process flowchart uses which of the following symbols to represent storage areas or
queues in a flow diagram?
A.Rectangle
B.Arrow
C.Inverted triangle
D.Diamond
E.A dashed line
Answer:
Which following production process term best describes the situation when activities in
a stage of production must stop because there is no work?
A.Blocking
B.Buffering
C.Starving
D.Buffer
E.Setup time
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Machine breakdown and repair in a twelve machine factory having one repair mechanic
would develop which type of queuing system line structure concerning machine
breakdowns?
A.Single channel, single phase
B.Single channel, multiphase
C.Multichannel, single phase
D.Multichannel, multiphase
E.None of the above
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For which of the following should we use a “p” chart to monitor process quality?
A.Defective electrical switches
B.Errors in the length of a pencil
C.Weight errors in cans of soup
D.Temperature of entrees in a restaurant
E.Letter grades on a final examination
Answer:
Similarity of projects allows for a streamlined and highly structured development
process 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
Answer:
Flow charts are used in both manufacturing and service consulting to track which of the
following?
A.Historical milestones
B.Information
C.Income trends
D.Ideas
E.Cash flow
Answer:
The total value of all items held in inventory for the firm at cost is which of the
following?
A.Cost of goods to be sold
B.Average aggregate inventory value
C.Weeks supply of goods
D.Inventory turnover
E.None of the above
Answer:
Differentiate between a workcenter and a manufacturing cell?
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Explain why “freezing the master schedule” is not the same as reducing the Level of
service to customers.
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Processes produce goods and services that have some measurable variation in attributes.
What is the quality philosophy that companies which insist on design tolerances set six
standard deviations of attribute variation away from the mean are operating under?
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A machine shop has two machines, A and B. Four jobs need to be processed through
machine A first and B second. Job 1 will take one hour on machine A and three hours on
machine B. Job 2 will take three hours on A and two hours on B. Job 3, seven on A and
three on B. Job 4, five hours on A and one hour on B. Using Johnson’s rule, in what
order should these jobs be done?
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A company has calculated its running sum of forecast errors to be 400 and its mean
absolute deviation is exactly 25. What is the company’s tracking signal?
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Describe how CPM handles the trade-offs between time and cost in the scheduling of a
project?
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What is dispatching?
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What is the planned-order release using an MRP program if the gross requirement is
1,600 and the inventory on hand is 600?
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You want to develop a three-sigma “R” chart. You know the average range is 5 based on
several samples of size 10. Which of the following is the resulting UCL?
Answer: