MRP provides the schedule specifying when each part and component of an end item
should be ordered or produced.
Answer:
Independent demand is the demand for a product or service caused by the demand for
other products or services.
Answer:
Outsourcing allows a firm to achieve an improved focus on its core competencies.
Answer:
Simple exponential smoothing lags changes in demand.
Answer:
Functional products include staples that people buy in a wide range of retail outlets,
such as grocery stores and gas stations.
Answer:
An employee-driven reason for outsourcing is that it can give employees a stronger
career path.
Answer:
Scheduling hourly work times using the “first hour principle” insures that no excess
labor will be used during the work shift.
Answer:
A diamond is conventionally used in a process flowchart to represent a storage area or
queue.
Answer:
When we use a make-to-stock production process we base our production on forecast
values.
Answer:
A matrix project attempts to blend properties of functional and pure project structures.
Answer:
Design quality refers to the inherent value of the product in the marketplace.
Answer:
While cost-driver selection is an informative part of activity-based costing, it is not a
required part of the methodology.
Answer:
The main purpose of concurrent engineering is to improve product quality.
Answer:
JIT is designed to achieve high-volume production using a significant inventory of
component parts that minimizes the probability of running out of supplies.
Answer:
Activity-based costing techniques have been developed to alleviate accounting
problems by refining overhead allocation processes to more directly reflect actual
proportions of overhead consumed by the production activity.
Answer:
A favorable business climate in facility location decision-making might include local
government intervention to facilitate businesses locating in an area via subsidies.
Answer:
Johnson’s rule, a priority rule used in sequencing production jobs is used only in
production situations where we are dealing with one machine or one stage of production
activity.
Answer:
Wall Street analysts are not particularly concerned with how efficient companies are
from an operations and supply management view.
Answer:
Firms in Japan tend to have short-term partnerships with their suppliers and customers.
Answer:
The master production schedule (MPS) is a time-phased plan specifying how many of
each end item to build and when the firm plans to build them.
Answer:
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
Answer:
Concept development assumes a proven technology in which variant of the generic
product development process?
A.Technology-push products
B.Quick-build products
C.Complex systems
D.Platform products
E.Process-intensive products
Answer:
Which of the following is not an example of General Purpose Simulation Software?
A.SIMAN
B.GPSS/PC
C.RESQ
D.GAPE/H
E.SLAMII
Answer:
A company uses the straight-line method of depreciation to determine the annual
amount of an asset’s value to depreciate. If the cost of the item is $100,000, the salvage
value is $10,000 and the estimated useful life is 5 years, which of the following is the
annual amount to be depreciated?
A.$100,000
B.$22,000
C.$20,000
D.$18,000
E.$15,000
Answer:
If annual demand is 6,125 units, annual holding cost is $5 per unit and setup cost per
order is $50, which of the following is the EOQ lot size?
A.350
B.247
C.230
D.185
E.78
Answer:
Using the cut-and-try method for aggregate operations planning we can determine the
production requirement in units of product. If the beginning inventory is 500 units, the
demand forecast is 1,000 and the necessary safety stock is 10% of the demand forecast,
which of the following is the production requirement?
A.1,000
B.600
C.550
D.450
E.100
Answer:
Typical robot axes of motion include which of the following?
A.Rounded face
B.Square joint
C.Rectangular coordinate
D.Wrist
E.Elbow
Answer:
A total systems approach to managing the flow of information, materials and services
from raw material suppliers to the end customer is called what?
A.Electronic commerce
B.Total quality productivity
C.Total service quality
D.Supply chain management
E.Business Process engineering
Answer:
You have been called in as a consultant to set up a Kanban control system. The first
thing to do is to determine the number of Kanban card sets needed. Your research shows
that the expected demand during lead time for a particular component is 150 per hour.
You estimate the safety stock should be set at 25% of the demand during lead time. The
tote trays used as containers can hold 8 units of stock and the lead time it takes to
replenish an order is 2 hours. Which of the following is the number of Kanban card sets
necessary to support this situation?
A.42
B.47
C.68
D.89
E.94
Answer:
When work is scheduled in detail using the setup and run time required for each order it
is called which of the following?
A.Infinite loading
B.Finite loading
C.Machine-limited
D.Labor-limited
E.Johnson’s rule
Answer:
To implement a Kanban pull system the firm would do which of the following?
A.Reduce lot sizes
B.Force demand
C.Hire a consultant
D.Bottom-round management
E.Implement group technology
Answer:
In the history of operations management the development of economic lot sizing
models, including the EOQ model occurred in what decade?
A.1910’s
B.1930’s
C.1940’s
D.1950-60’s
E.1970’s
Answer:
Which of the following is not one of the categories of manufacturing inventory?
A.Raw materials
B.Finished products
C.Component parts
D.Just-in-time
E.Supplies
Answer:
A company wants to generate a forecast for unit demand for year 2009 using
exponential smoothing. The actual demand in year 2008 was 120. The forecast demand
in year 2008 was 110. Using this data and a smoothing constant alpha of 0.1, which of
the following is the resulting year 2009 forecast value?
A.100
B.110
C.111
D.114
E.120
Answer:
Job design decisions are not being affected by which of the following trends?
A.Cross-training workers to perform multi-skilled jobs
B.Geographic dispersion of industry
C.Employee involvement and team approaches to designing and organizing work
D.Extensive use of temporary workers
E.Quality control becoming part of the job
Answer:
A company has calculated its running sum of forecast errors to be 500 and its mean
absolute deviation is exactly 35. Which of the following is the company’s tracking
signal?
A.Cannot be calculated based on this information
B.About 14.3
C.More than 35
D.Exactly 35
E.About 0.07
Answer:
Which of the following is not one of the major functions of shop-floor control?
A.Measure efficiency, utilization and productivity of manpower and machines
B.Assign a priority to each shop order
C.Load machine hours into work stations
D.Track WIP quantity by location by shop order to accounting
E.Convey shop order status information to the office
Answer:
What are computer based information systems that help plan, schedule and monitor a
manufacturing operation called?
Answer:
What is the role of manufacturing technology in outsourcing?
Answer:
Distinguish between flexible manufacturing systems (FMS) and computer-integrated
manufacturing (CIM)?
Answer:
Why do variable costs per unit stay constant no matter how many units are produced
while fixed costs per unit decline as volume increases?
Answer:
Name Fujio Cho’s seven prominent types of waste to be eliminated.
Answer:
What are the three main inputs to an MRP program?
Answer:
Which software technological advance is capable of writing the computer programs that
control and guide industrial robots?
Answer:
You have run a capacity resource profile on your shop. Products have been routed
sequentially through resources A, B, C & D. The capacity resource profile tells you that
recourse A is scheduled at 95 percent of capacity, recourse B at 80% of capacity,
recourse C at 130% of capacity and recourse D at 100% of capacity. Assuming that the
data we used to calculate the capacity resource profile was reasonably accurate, how
would you employ the “drum, buffer, rope” thinking?
Answer: