1) The standard time for a job can be obtained by multiplying the normal time by an
appropriate allowance factor.
2) Process layouts feature departments or other functional groupings of personnel or
equipment.
3) If a single optimal solution exists to a graphical LP problem, it will exist at a corner
point.
4) Crosby’s concept of “quality is free” means that it is less expensive to do it right
initially than to do it over.
5) Patterns of data on a control chart suggest that the process may have nonrandom
variation.
6) The normal time for a job is multiplied by the performance rating to obtain the
standard time for the job.
7) Product layouts can more easily adapt to variations in product requirements than
process layouts can.
8) The A-B-C approach involves classifying inventory items by unit cost, with
expensive items classified as A items and low-cost items classified as C items.
9) Group technology is closely connected to cellular manufacturing.
10) The naive approach to forecasting requires a linear trend line.
11) A bill of materials contains a listing of all the assemblies, parts, and materials
needed to produce one unit of an end item.
12) High quality and low prices are both considered to be dimensions of quality.
13) What quantity is available for commitment to new customers in either of the first
two periods?
A.21
B.1
C.20
D.4
E.impossible to say without more information
14) Which of the following choices constitutes a simultaneous solution to these
equations?
A.x = 2, y = .5
B.x = 4, y = -.5
C.x = 2, y = 1
D.x = y
E.y = 2x
15) In the Toyota Production System, waste and inefficiency are referred to as
__________, and long-term reduction of this is referred to as __________.
A.jidoka; heijunka
B.muda; kanban
C.kaizen; heijunka
D.muda; kaizen
E.muda; jidoka
16) A Type I (alpha) error occurs when:
A.a bad lot is accepted.
B.a good lot is rejected.
C.a bad lot is rejected.
D.a good lot is accepted.
E.an accepted lot is reinspected.
17) Sally suspects strongly that there is a learning curve associated with solving
problems assigned for operations management. She notes that it took her approximately
33 minutes to solve the first problem and 17 minutes to solve the fifth problem.
(A) Estimate Sally’s learning percentage.
(B) Using your answer from part A, estimate how long it will take Sally to finish the
three remaining problems.
18) If the average amount of time a product goes without failing decreased by some
amount, that product’s availability could nevertheless be maintained at previous levels
by __________ its __________.
A.increasing; reliability
B.reducing; time required for repair
C.reducing; reliability
D.reducing; reparability
E.increasing; time required for repair
19) The goal of maintenance is to maintain the productive system in good working
order while minimizing:
A.total preventive maintenance costs.
B.total breakdown maintenance costs.
C.total maintenance costs.
D.the difference between preventive and breakdown costs.
E.the ratio of breakdown to preventive maintenance costs.
20) The president of a consulting firm wants to minimize the total number of hours it
will take to complete four projects for a new client. Accordingly, she has estimated the
time it should take for each of her top consultantsCharlie, Betty, Johnny, and Rickto
complete any of the four projects, as follows:
What is the optimal assignment of consultants to projects?
A.Charlie to A; Betty to B; Johnny to C; Rick to D
B.Charlie to D; Betty to C; Johnny to B; Rick to A
C.Charlie to C; Betty to A; Johnny to D; Rick to B
D.Charlie to D; Betty to B; Johnny to C; Rick to A
E.Charlie to D; Betty to A; Johnny to C; Rick to B
21) An advantage of a U-shaped production line is that:
A.it is less compact.
B.communication is reduced among employees.
C.workers are specialists.
D.work assignments are more rigid.
E.it is more efficient than a traditional product layout.
22) A concert promoter is forecasting this year’s attendance for one of his concerts
based on the following historical data:
What is this year’s forecast using the naive approach?
A.22,000
B.20,000
C.18,000
D.15,000
E.12,000
23) The following table contains information about five jobs waiting to be processed at
work center number three.
The sequence that would result using the SPT rule is:
A.e-b-c-d-a.
B.c-a-b-e-d.
C.a-d-c-e-b.
D.d-e-b-a-c.
E.e-d-b-a-c.
24) Manufacturing work sent to other countries is called:
A.downsizing.
B.outsourcing.
C.internationalization.
D.vertical integration.
E.entrepreneurship.
25) Suppose we have a lot of several thousand units of a finished good. If n = 20 and c
= 2, what is the probability that, if this lot were 5 percent defective, it would be
accepted for shipment without inspection? 10 percent defective? 15 percent? 20
percent?
26) An alternative will have fixed costs of $10,000 per month, variable costs of $50 per
unit, and revenue of $70 per unit. The break-even point volume is:
27) Data on demand over the last few years are available as follows:
What is this year’s forecast using trend-adjusted (double) smoothing with alpha = .2 and
beta = .1, if the forecast for last year was 56, the forecast for two years ago was 46, and
the trend estimate for last year’s forecast was 7?
28) Given the following process control data for a quality attribute (three samples of
size 400 each):
If the process proportion of defectives is unknown, using .10 alpha risk control limits,
do any of the sample proportions indicate an out-of-control process proportion of
defectives?
29) Given the following process control data for a quality attribute (three samples of
size 400 each):
If the process is known to produce 11 percent defectives on average, what is the alpha
risk (probability of Type I error) for upper and lower control limits of .1256 and .0944
respectively? .1412 and .0788? .1568 and .0632?
30) Consider the following information about sites A, B, and C:
What are total costs for site C for a quantity of 5,000 units per year?
31) A manufacturer purchases large quantities of metal brackets from several suppliers.
The brackets are shipped in lots of 8,000 each. Random samples of 40 brackets are
taken from each lot, and the lot is rejected if any defectives are discovered. Rejected
lots are subjected to 100 percent inspection, and any defectives are replaced with good
brackets. Determine the average outgoing quality limit for this sampling plan.
32) Given the following information concerning jobs awaiting processing at a single
work center, what processing sequence will result if the critical ratio rule is used?
33) A company has introduced a process improvement that reduces processing time for
each unit; output is increased by 25 percent with less material, but one additional
worker is required. Under the old process, five workers could produce 60 units per hour.
Labor costs are $12/hour, and material input was previously $16/unit. For the new
process, material is now $10/unit. Overhead is charged at 1.6 times direct labor cost.
Finished units sell for $31 each. What increase in productivity is associated with the
process improvement?
34) Given the following data:
Determine the percentage idle time.