The learning curve in the steel industry and the learning curve in heart surgery have
both been estimated at 79 percent.
Deming’s writings on quality tend to focus on the customer and on fitness for use,
unlike Juran’s work that is oriented toward meeting specifications.
Earliest due date is a shop floor dispatching (sequencing) rule that relates the time
available to complete a job to the amount of work left to be completed.
The location decisions of goods-producing firms will generally pay more attention to
parking, access, and traffic counts than will service location decisions.
The supply chain for a brewery would include raw ingredients such as hops and barley
but not the manufactured goods such as bottles and cans.
Successful process redesign focuses on departmental areas where small, continuous
improvements can be made.
Core competencies are good candidates for outsourcing.
Standard time is always greater than normal time, due to the inclusion of allowances for
personal time, delay, and fatigue.
Location decisions are based on many things, including costs, revenues, incentives,
attitudes, and intangibles, but not on ethical considerations.
Seasonal indices adjust raw data for patterns that repeat at regular time intervals.
The management coefficients model is a formal planning model built around a
manager’s experience and performance.
Degeneracy occurs when the number of occupied squares is less than the number of
rows plus the number of columns minus one.
Even though a firm may have a low cost strategy, supply-chain strategy can select
suppliers primarily on response or differentiation.
The objective of the product decision is to develop and implement a product strategy
that meets the demands of the marketplace with a competitive advantage.
Which of the following statements regarding FedEx is true?
A) Its hub in Memphis, Tennessee, was selected because of its low cost.
B) Memphis, Tennessee, is the only hub in the company’s global flight network.
C) FedEx believes the hub system helps reduce mishandling and delays due to better
controls.
D) FedEx uses a hub system in the U.S., but a city-to-city network in other countries.
E) Memphis is FedEx’s only hub airport in the United States.
Regarding the quality of design, production, and distribution of products, an ethical
requirement for management is to
A) determine whether any of the organization’s stakeholders are violated by poor
quality products
B) gain ISO 14000 certification for the organization
C) obtain a product safety certificate from the Consumer Product Safety Commission
D) have the organization’s legal staff write disclaimers in the product instruction
booklets
E) compare the cost of product liability to the external failure cost
Which of the following statements regarding PERT times is true?
A) The optimistic time estimate is an estimate of the minimum time an activity will
require.
B) The optimistic time estimate is an estimate of the maximum time an activity will
require.
C) The probable time estimate is calculated as t = (a + 4m + b).
D) Pessimistic time estimate is an estimate of the minimum time an activity will
require.
E) Most likely time estimate is an estimate of the maximum time an activity will
require.
Demand for a given item is said to be dependent if
A) it originates from the external customer
B) there is a deep bill of material
C) the finished products are mostly services (rather than goods)
D) there is a clearly identifiable parent
E) the item has several children
A system has three components in series with reliabilities 0.9, 0.7, and 0.5. System
reliability is
A) 0.315
B) 0.500
C) 0.700
D) 0.900
E) 2.100
DuLarge Marine manufactures diesel engines for shrimp trawlers and other small
commercial boats. One of their CNC machines has caused several problems. Over the
past 30 weeks, the machine has broken down as indicated below. Each time the machine
breaks down, the firm loses an average of $3,000 in time and repair expenses. If
preventive maintenance were implemented, it is estimated that an average of only one
breakdown per week would occur. The cost of preventive maintenance is $1,000 per
week.
What is the weekly total maintenance cost of this program?
A) $1,000
B) $3,000
C) $4,000
D) $6,000
E) $8,000
When a lot has been accepted by acceptance sampling, we know that
A) it has more defects than existed before the sampling
B) it has had all its defects removed by 100% inspection
C) it will have the same defect percentage as the LTPD
D) it has no defects present
E) All of the above are false.
Assignable variation
A) is a sign that a process is under control
B) is to be identified and investigated
C) is the same as random variation
D) is variation that cannot be traced to a specific cause
E) leads to a steep OC curve
Net present value will be greater
A) as a fixed set of cash receipts occurs later rather than earlier
B) as the total of the cash receipts, made in same time periods, is smaller
C) for one end-of-year receipt of $1200 than for twelve monthly receipts of $100 each
D) for a 4% discount rate than for a 6% discount rate
E) All of the above are true.
The three steps of the operations manager’s job, in order, are:
A) develop the strategy, establish the organizational structure, find the right staff
B) develop the strategy, find the right staff, establish the organizational structure
C) find the right staff, establish the organizational structure, develop the strategy
D) find the right staff, develop the strategy, establish the organizational structure
E) establish the organizational structure, find the right staff, develop the strategy
Which of the following statements regarding Gantt charts is true?
A) Gantt charts give a timeline and precedence relationships for each activity of a
project.
B) Gantt charts use the four standard spines of Methods, Materials, Manpower, and
Machinery.
C) Gantt charts are visual devices that show the duration of activities in a project.
D) Gantt charts are expensive.
E) All of the above are true.
Which of the following statements on acceptance sampling is true?
A) Acceptance sampling draws samples from a population of items, tests the sample,
and accepts the entire population if the sample is good enough, and rejects it if the
sample is poor enough.
B) The sampling plan contains information about the sample size to be drawn and the
critical acceptance or rejection numbers for that sample size.
C) The steeper an operating characteristic curve, the better its ability to discriminate
between good and bad lots.
D) All of the above are true.
E) All of the above are false.
Cost cutting in international operations can take place because of
A) lower taxes and tariffs
B) lower wage scales
C) lower indirect costs
D) less stringent regulations
E) all of the above
Ethical and environmentally friendly processes include which of the following?
A) emission controls
B) recycling
C) efficient use of resources
D) reduction of waste by-products
E) all of the above
Which of the following represents valid constraints in linear programming?
A) 2X >= 7X Y
B) 2X 7Y >= 500
C) 2X + 7Y >=100
D) 2X2 + 7Y >= 50
E) All of the above are valid linear programming constraints.
Which time-series model uses past forecasts and past demand data to generate a new
forecast?
A) naive
B) moving average
C) weighted moving average
D) exponential smoothing
E) regression analysis
Little’s Law is not applicable in which of the following situations?
A) the opening of a toy store on Black Friday morning
B) a 24-hour supermarket
C) a gas station with 24-hour self-service pumps
D) B and C
E) It is applicable to A, B, and C.
A company is trying to balance production between 3 workstations on an assembly line.
Currently there are 5 tasks that need to be performed. These tasks, ABCDE, have
required times of 2 minutes, 4 minutes, 1 minutes, 3 minutes, and 10 minutes
respectively. The assembly line needs to produce 40 units per day to meet demand and
can work for up to 8 hours each day.
A. What is the required cycle time?
B. What is the theoretical minimum # of workstations?
C. Assign the tasks according to shortest task time.
D. Is there a better way to divide the work than in Part C?
Why is Northern Mexico used as a cluster for electronics firms?
A) high traffic flows
B) venture capitalists located nearby
C) natural resources of land and climate
D) NAFTA
E) high per capita GDP
Gibson Valves produces cast bronze valves on an assembly line, currently producing
1600 valves each 8-hour shift. If the productivity is increased by 10%, it would then be
A) 180 valves/hr
B) 200 valves/hr
C) 220 valves/hr
D) 880 valves/hr
E) 1760 valves/hr
A(n) __________ can illustrate whether a work center has been scheduled beyond its
capacity.
What are the advantages and disadvantages of the use of factor-rating schemes?
__________ is the attempt to duplicate the features, appearance, and characteristics of a
real system, usually by means of a computerized model.
What is the role of people, especially empowered employees, in an effective
maintenance strategy?
What are the assumptions of the net present value technique?