Maximum practical capacity is defined by the federal Bureau of Economic Analysis as
“That output obtained within the normal operating schedule of shifts per day and days
per week excluding the use of high-cost and inefficient facilities”.
Answer:
The most common production management tools used in planning and designing the
process flow are assembly drawings, assembly charts, route sheets and product
prototypes.
Answer:
Shortage costs are precise and easy to measure.
Answer:
The product-process matrix shows the relationship between process structures and
product volume.
Answer:
Effectiveness means doing the right things to create the most value for the company.
Answer:
One trade-off illustrated by the product-process matrix is between flexibility and cost.
Answer:
A quality guru named Joseph M. Juran is well known for his “14 points” of quality.
Answer:
In 1913, Henry Ford developed an assembly line to make the Model-T automobile.
Answer:
Developing the master production schedule is done by disaggregating the aggregate
production plan.
Answer:
An operational goal of total quality management is ensuring that the organization’s
systems will never produce a defective product or service.
Answer:
You are hired as a consultant to advise a small firm on forecasting methodology. Based
on your research you find the company has a MAD of 3. Its wants to have a 99.7
percent control limits on its forecasting system. It’s most recent tracking signal value is
15. What should be your report to the company?
A.The forecasting model is operating acceptably
B.The forecasting model is out of control and needs to be corrected
C.The MAD value is incorrect
D.The upper control value is less than 20
E.The company is using an inappropriate forecasting methodology
Answer:
Which of the following is the stage in the operations consulting process that
immediately follows assure client satisfaction?
A.Design, develop and test alternative solutions
B.Assemble learnings from the study
C.Present final report
D.Assure client satisfaction
E.Present invoice
Answer:
Quality control charts usually have a central line and upper and lower control limit
lines. Which of the following are reasons that the process being monitored with the
chart should be investigated?
A.A single plot falls above or below the control limits
B.Normal behavior
C.A large number of plots are on or near the central line
D.No real trend in any direction
E.A change in raw materials or operators
Answer:
Advocates of financial modeling of product design projects argue that:
A.Financial analysis focuses on measurable quantities only
B.Financial analysis brings discipline and control to the product development process
C.Sufficiently rigorous financial analysis can accurately forecast the product’s profit
potential
D.Financial analysis is as solid as the assumptions that go into the model
E.Financial analysis nurtures innovation and creativity
Answer:
If the best operating level of a piece of equipment is at a rate of 400 units per hour and
the actual output during an hour is 300 units, which of the following is the capacity
cushion?
A.33 percent
B.75 percent
C.90 percent
D.100 percent
E.133 percent
Answer:
Which of the following is a production planning strategy presented in the textbook?
A.Level
B.Strategic
C.Balanced
D.Synchronous
E.Optimal
Answer:
A company wants to forecast demand using the simple moving average. If the company
uses three prior yearly sales values (i.e., year 2006 = 130, year 2007 = 110 and year
2008 =160), which of the following is the simple moving average forecast for year
2009?
A.100.5
B.122.5
C.133.3
D.135.6
E.139.3
Answer:
In business forecasting, what is usually considered a short-term time period?
A.Four weeks or less
B.More than three months
C.Six months or more
D.Less than three months
E.One year
Answer:
You are a consultant called in to estimate the costs after the employees learn how to do
a job more efficiently by repetition. You find a company can produce a product the first
time at a cost of $2,500. If their 65 percent Learning Curve allows them to reduce their
costs on each product, what is the total cost of producing 400 units of the new product?
A.$100,000
B.$78,900
C.$58,600
D.$45,765
E.$37,850
Answer:
If a total capital investment of $150,000 is required for a robot and accessories, the
annual labor costs replaced by the robot is $25,000, the annual maintenance cost for the
robot is $1,000, the fractional speedup is 150 percent and the annual depreciation is
$20,000? Which of the following is the payback period based on the formula in
Supplement B for evaluating a robotic investment?
A.About 4.3 years
B.About 3.5 years
C.About 2.6 years
D.About 1.6 years
E.About 0.4 years
Answer:
You want to determine the control lines for a “p” chart for quality control purposes. If
the total number of defects from all samples is 2,500, the number of samples is 100 and
the sample size is 50, which of the following would be the standard deviation used in
developing the control lines?
A.0.4900
B.0.2499
C.0.1556
D.0.0707
E.0.02499
Answer:
Which of the following is not an advantage of work sampling over time study?
A.Several work-sampling studies may be conducted simultaneously by one observer
B.No timing devices are required
C.Work of a long cycle time may be studied with fewer observer hours
D.Work sampling gives more precise results
E.The study may be temporarily delayed at any time with little effect
Answer:
Which of the following is an input to the master production schedule?
A.Prototype products from product development
B.Aggregate component schedule
C.Peg records
D.Exception reports
E.Forecasts of demand from random customers
Answer:
In a department store’s inventory management system a stockkeeping unit (SKU) can be
used to do which of the following?
A.To identify each item
B.To discover quality issues before an item is sold
C.To identify who purchased exactly which unit
D.To track shoplifters
E.To keep clerks active even when there are few customers in the store
Answer:
A simple project listing of five activities, their predecessors and their respective time
estimates are presented below:
Using the Single Time Estimate CPM procedure, which activities have slack in this
project?
A.A
B.B
C.C
D.D
E.C and E
Answer:
Getting an autograph from a famous person might involve standing in which type of
queuing line structure?
A.Single channel, single phase
B.Single channel, multiphase
C.Multichannel, single phase
D.Multichannel, multiphase
E.None of the above
Answer:
In the five forces model, which of the following is one of the five forces?
A.Industry rivalry
B.Quality control
C.Manufacturing processes
D.Quality at the source
E.Opportunities for the customer
Answer:
The expected time estimate in a CPM three time estimate procedure is a weighted
average formula.
Answer:
A company’s production process has a 90 percent learning rate. The process has
produced 1,000 units to date. A process refinement is estimated to allow a future
learning rate for the identical product of 70 percent. However, the initial unit made
using the new process will take the same amount of time as the initial unit produced
using the old process. At what point, using the new process, will the production rate
exceed the production rate achieved by the old process?
Answer:
Name the four types of supply chain in Hau Lee’s uncertainty framework for classifying
supply chains.
Answer:
Work measurement is necessary to set time standards for a job. Why are such standards
needed?
Answer:
What is the name of a physical inventory-taking technique that focuses only on certain
items and counts more often than once or twice a year?
Answer:
What is an end effector?
Answer:
You are developing an “X-bar” chart based on sample means. You know the standard
deviation of the sample means is 4, the desired confidence level is 99 percent and the
average of the sample means is 20. What is your LCL?
Answer: