Waste is anything that does not add value, such as storage or inspection of items; waste
also includes any activity that does not add value from the consumer’s perspective.
Break-even analysis is a powerful analytical tool, but is useful only when the
organization produces a single product.
A product requires 24 separate tasks, and the sum of those task times is 14 minutes; if
the cycle time is 2 minutes, then at least 12 workstations will be needed.
The expected value of perfect information is the same as the expected value with
perfect information.
The x-bar chart indicates that a gain or loss of uniformity has occurred in dispersion of
a production process.
Source inspection is inferior to inspection before costly operations.
Given the critical path below, calculate the following
a. The crash cost per unit time savings for each activity.
b. The maximum total crash time savings and cost.
c. The maximum total time-savings with a $3000 budget.
The center-of-gravity method is used primarily to determine what type of locations?
A) service locations
B) manufacturing locations
C) distribution center locations
D) supplier locations
E) call center locations
Traffic counts and demographic analysis of drawing areas are associated with
A) the center-of-gravity method
B) manufacturing location decisions
C) service location decisions
D) the transportation method
E) none of the above
Which of these statements regarding Regal Marine is true?
A) Product design is a critical decision for the firm.
B) Regal uses a three-dimensional CAD system to shorten product development time.
C) Regal still uses some wooden parts and hand-produces some components.
D) Regal’s use of CAD has resulted in a superior product.
E) All of the above are true.
Identify (a) the demand options for aggregate planning; and (b) the capacity (supply)
options for aggregate planning.
The Ten Critical Decisions of Operations Management include
A) layout strategy
B) maintenance
C) process and capacity design
D) managing quality
E) all of the above
A waiting line, or queuing, system has three parts, which are
A) distribution of arrival times, discipline while waiting, and distribution of service
times
B) arrival rate, service rate, and utilization rate
C) arrival discipline, queue discipline, and service sequencing
D) arrival or inputs, queue discipline or the waiting line itself, and the service facility
E) sequencing policy, penalty for reneging, and expediting of arrivals
In a repetitive focus factory, the number of phases found in the system might refer to
A) the number of successive operations that have to be performed on a part
B) the number of machines doing the same necessary operations
C) the number of parts waiting to be processed
D) all of the above depending on the layout
E) none of the above
A linear programming maximization problem has been solved. In the optimal solution,
two resources are scarce. If an added amount could be found for only one of these
resources, how would the optimal solution be changed?
A) The shadow price of the added resource will rise.
B) The solution stays the same; the extra resource can’t be used without more of the
other scarce resource.
C) The extra resource will cause the value of the objective to fall.
D) The optimal mix will be rearranged to use the added resource, and the value of the
objective function will rise.
E) none of the above
Which is not true regarding differences between goods and services?
A) Services are generally produced and consumed simultaneously; tangible goods are
not.
B) Services tend to be more knowledge-based than goods.
C) Services tend to have a more inconsistent product definition than goods.
D) Goods tend to have higher customer interaction than services.
E) None of the above is true.
A grocery chain is considering the installation of a set of 4 self-checkout lanes. The new
self-checkout lane setup will replace 2 old cashier lanes that were staffed by a cashier
and bagger on each lane. One cashier mans all 4 self-checkouts (answering questions,
checking for un-scanned items, taking coupons, etc). Checkout on the new lanes takes 2
minutes (customers bag their own orders) while checkout with the old lanes took only
45 seconds. In addition the electricity costs for both setups are $.05 per checkout while
bagging (material) costs are $.1 per checkout with the old system and $.15 for the new
system. The new lanes also require $100 in capital costs. Assume that the lanes are
always in use for 8 hours per day (1 shift) and that a worker makes $10/hour.
a. How many checkouts did the old system provide in a shift?
b. How many checkouts does the new system provide?
c. What is the multifactor productivity for each system?
A nationwide parcel delivery service keeps track of the number of late deliveries (more
than 30 minutes past the time promised to clients) per day. They plan on using a control
chart to plot their results. Which type of control chart(s) would you recommend?
A) – and R-charts
B) p-charts
C) c-charts
D) -, but not R-charts
E) both p- and c-charts
Suppose that the shadow price for assembly time is $5/hour. If all assembly hours were
used under the initial LP solution and workers normally make $4/hour but can work
overtime for $6/hour, what should management do?
A) do not change available hours for assembly time
B) decrease available hours for assembly time
C) increase available hours for assembly time
D) not enough information
E) Either A or C will result in larger profits than B.
Which of the following is true for process layouts, but false for product-oriented
layouts?
A) low in-process inventories
B) flexibility in equipment and labor assignments
C) low variety of products
D) high volume of output
E) often solved by assembly line balancing
A scheduling technique used to achieve optimum, one-to-one matching of tasks and
resources is
A) the assignment method
B) Johnson’s rule
C) the CDS algorithm
D) the appointment method
E) the reservation method
Which of the following is true of maquiladoras?
A) They discourage foreign businesses from outsourcing.
B) They assess tariffs only on the value-added work done.
C) They originated in China.
D) none of the above
E) all of the above
Which one of the following is not necessary to identify the optimal maintenance
policy?
A) historical data on maintenance costs
B) cost of performing the analysis
C) breakdown probabilities
D) breakdown occurrences
E) repair times
An advantage of a joint venture over vertical integration is
A) reduced risk
B) reduced costs
C) compromised competitive advantages
D) globalization
E) flexibility
The square symbol used in drawing a decision trees represents a __________ node.
What is a poka-yoke? Give an example.
__________ is an occurrence in transportation problems when too few shipping routes
are being used to allow calculation of improvement indices.
What are some of the ethical issues faced by project managers? Which of these are
likely to occur before a project begins, which are likely to occur while the project is
underway, and which may occur after a project is complete? Illustrate any one of these
from recent news.
What are the advantages and disadvantages of product layouts?
__________ costs are readily identifiable and can be measured with precision.
A product was priced assuming an 80% learning rate. How much extra labor (in %) will
be required on the 4th product if the learning rate is actually 90%?
What does it mean for a process to be “capable”?
In the context of decision-making, define alternative.
A firm is evaluating country risk as a first step in its outsourcing provider selection
process. Legal issues, currency risk, political risk, and cultural compatibility have been
assigned weights of 30%, 10%, 20%, and 40%, respectively. Three countries were
scored on each of those risk factors (see table below) using a scale of 1-10, with a score
of 1 meaning high risk and 10 meaning minor risk. Using the factor-rating method,
which country appears to have the least risk overall?