The earliest application of learning curves appears in the work of architect Frank Lloyd
Wright.
Modular design exists only in tangible products; it makes no sense in services.
Balk and renege are elements of queue discipline.
An assembly chart shows an exploded view of the product, usually a three-dimensional
or isometric drawing.
Productivity is more difficult to improve in the service sector.
The theory of constraints is a body of knowledge that deals with anything that limits an
organization’s ability to achieve its goals.
Advertising and promotion are methods of manipulating product or service supply in
aggregate planning.
Channel assembly, which sends components and modules to be assembled by a
distributor, treats these distributors as manufacturing partners.
Standard time may be less than average observed time.
Because Hard Rock Cafes are themed restaurants, operations managers focus their
layout design efforts on attractiveness while paying little attention to efficiency.
An organization’s strategy is its purpose or rationale for an organization’s existence.
Research data suggest that foreigners outsource far fewer services to the U.S. than
American companies send abroad.
Intermittent processes are organized around processes.
The strategies of aggregate planning are broadly divided into demand options and
capacity options.
A work order is a listing of the components, their description, and the quantity of each
required to make one unit of the product.
Activity D on a CPM network has predecessors B and C, and has successor F. D has
duration 6. B’s earliest finish is 18, while C’s is 20. F’s late start is 26. Which of the
following is definitely true?
A) B is a critical activity.
B) C is completed before B.
C) D has no slack but is not critical.
D) D is critical and has zero slack.
E) F is critical and has zero slack.
In which stage of the product life cycle should product strategy focus on improved cost
control?
A) introduction
B) growth
C) maturity
D) saturation
E) inflation
Which layout type assumes an adequate volume for high equipment utilization?
A) product-oriented layout
B) process-oriented layout
C) fixed-position layout
D) retail layout
E) warehouse layout
Expected monetary value is most appropriate for problem solving that takes place
A) when conditions are average
B) when all states of nature are equally likely
C) when all alternatives are equally likely
D) under conditions of uncertainty
E) under conditions of risk
Which of the following lot-sizing techniques results in the lowest holding costs?
A) lot-for-lot
B) EOQ
C) part-period balancing
D) Wagner-Whitin algorithm
E) the quantity discount model
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 20 minutes to solve the fifth problem.
a. Estimate Sally’s learning percentage.
b. Using your answer from part a, estimate how much longer it will take Sally to finish
the three problems that remain.
Japanese manufacturers often take a middle ground between purchasing from a few
suppliers and vertical integration. This approach is
A) kanban
B) keiretsu
C) samurai
D) poka-yoke
E) kaizen
Which of the following requires an information system that provides inbound product
identification, its destination, and routing of the product to the designated outbound
vehicle?
A) phantom-docking
B) random stocking
C) ASRS
D) customizing
E) cross-docking
Reasons to study Operations Management include learning about
A) how people organize themselves for productive enterprise
B) how goods and services are produced
C) what operations managers do
D) a costly part of the enterprise
E) all of the above
Ethical work environment decisions by managers may be guided by
A) state agencies
B) trade associations
C) insurers
D) employees
E) all of the above
The purpose of an x-bar chart is to determine whether there has been a
A) change in the dispersion of the process output
B) change in the percent defective in a sample
C) change in the central tendency of the process output
D) change in the number of defects in a sample
E) change in the AOQ
A task involves positioning two metal parts with a rubber gasket sandwiched between
them, inserting two bolts into predrilled holes, threading a nut onto each bolt, and
tightening each bolt with a pneumatic wrench. In a preliminary study, the manager
observed one of his workers perform this task five times. The observations were made
in an air-conditioned, well-lighted training facility, at ground level, with all tools and
equipment clean and readily available.
a. What is the average observed time for this task?
b. What is the normal time for this task if the employee worked at a 10% slower pace
than is typical for adequately trained workers?
c. What is standard time for this task if allowances are 8% constant and 6% variable?
A distribution of service times at a waiting line indicates that service takes 6 minutes 30
percent of the time, 7 minutes 40 percent of the time, 8 minutes 20 percent of the time,
and 9 minutes 10 percent of the time. In preparing this distribution for Monte Carlo
analysis, the service time 8 minutes would be represented by the random number range
A) 20 through 40
B) 21 through 40
C) 70 through 90
D) 71 through 90
E) none of these
Deloitte & Touche solved the empty desk problem by
A) assigning permanent desks
B) implementing a “hoteling” program
C) creating open offices
D) no longer allowing employees to work from home
E) none of the above
What two numbers are contained in the daily report to the CEO of Walt Disney Parks &
Resorts regarding the six Orlando parks?
A) yesterday’s forecasted attendance and yesterday’s actual attendance
B) yesterday’s actual attendance and today’s forecasted attendance
C) yesterday’s forecasted attendance and today’s forecasted attendance
D) yesterday’s actual attendance and last year’s actual attendance
E) yesterday’s forecasted attendance and the year-to-date average daily forecast error
Walter Shewhart, in the __________, provided the foundations for __________ in
operations management.
A) 1920s; statistical sampling
B) United Kingdom; mass production
C) U.S. Army; logistics
D) nineteenth century; interchangeable parts
E) none of the above
According to the text, the most common choice of limits for control charts is usually
A) ± 1 standard deviation
B) ± 2 standard deviations
C) ± 3 standard deviations
D) ± 3 standard deviations for means and ± 2 standard deviations for ranges
E) none of the above
Aggressive new product development requires that organizations build structures
internally that contain what features?
Suppose that a manufacturing plant is considering contracting out some preventative
maintenance work. For $2000 each year a firm would cover all breakdowns free of
charge and provide preventative maintenance. Two other options exist that entail the use
of regular employees however. The first is to skip preventative measures and simply fix
breakdowns, which occur at a rate of 2/year. Each breakdown costs about $750 to fix.
The final option is to divert excess labor capacity to preventative measures, which
reduces the chance of a breakdown per year by Y% given X hours of preventative
maintenance subject to Y=10X-X^2. If each preventative maintenance hour costs $50,
which option should the firm choose?
A small manufacturer is considering several locations for a new facility. They have
identified four factors that they consider to be important for their location decision.
They have decided to assign scores to the four factors, with a higher score indicating a
more favorable location. Use the information in the following table to perform a factor
rating to select the best location.
__________ reviews successful products for improvement during the production
process.
Suppose that a bus company is deciding where to locate its central hub. There are 6
possible destinations for the buses. Suppose that the center of town will be used as the
reference for describing the possible destinations. A is located 5 miles South and 3
miles West. B is located 3 miles North and 2 miles East. C is located 1 mile South and 5
miles East. D is located 2 miles North and 3 miles West. E is located exactly in the
center of town. F is located 10 miles North and 5 miles East. Assume that traffic to each
destination will be equal. Where should the hub go so that travel time is minimized?
A transportation model uses at least 10 sources and 100 destinations. If the ratio of
sources to destinations remains constant, does the maximum % of cells used by the
optimum solution remain constant? Why or why not?
Suppose that a chemical manufacturer is deciding how to mix two chemicals, A and B.
A costs $5/gram and B costs $4/gram if they are ordered above the current supply level.
There are currently 40 grams of A and 30 grams of B that must be used in the mix or
they will expire. If a customer wants 1 kg of the mix with at least 40% A but no more
than 55% A, how many grams of each chemical should be included in the mix?