The degree to which a product meets pre-established standards is known as quality of
conformance.
A major challenge and opportunity for many firms is the globalization of the supply
chain.
A firm’s process strategy defines the extent of customer involvement in providing a
service.
International trading is viewed as business as usual for any sized firm.
Studies have shown that the success of Japanese companies is due to cultural factors.
Control charts visually show when a process is not within statistical control limits.
Two-thirds of today’s businesses operate globally.
A work package travels with a job to specify what work needs to be done at a particular
work station and where the job goes next.
A supply chain is a series of activities from supplier to customer that adds value to a
product or service.
The basic principle underlying an incentive piece-rate wage system is that workers
produce more if they are paid for the additional output.
Double-sampling plans are often less costly than single-sampling plans.
The line balancing procedure uses heuristics to specify which work elements are
allocated to each workstation.
The driving force behind transportation and distribution in a highly competitive
environment is
a. quality.
b. cost.
c. flexibility.
d. speed.
Four products (1, 2, 3, and 4) must be processed on one of four machines (A, B, C, and
D). The times required in minutes for each product on each machine are shown below.
The minimum time required to complete all the products is
a. 29 minutes.
b. 27 minutes.
c. 33 minutes.
d. 36 minutes.
A hotel manager must decide how many rooms to overbook. Room rates are $125 per
night and each room costs $45 to maintain. A bumped customer is sent to another hotel
at a cost of $75. Given the distribution of no-shows below, how many rooms should the
manager overbook?
a. 9 rooms.
b. 10 rooms.
c. 11 rooms.
d. 12 rooms.
Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From
the following data calculate the labor productivity.
a. 0.370
b. 0.625
c. 1.500
d. 1.667
E-business replaces _________ processes with ___________ ones.
a. physical, electronic
b. electronic, physical
c. physical, physical
d. electronic, electronic
Assigning a worker a complete unit of work with clearly defined start and end points is
referred to as
a. vertical job enlargement.
b. job rotation.
c. horizontal job enlargement.
d. empowerment.
Four products (1, 2, 3, and 4) must be processed on one of four machines (A, B, C, and
D). The times required in minutes for each product on each machine are shown below.
If management wishes to assign products to machines so that the total time to complete
all the products is minimized, then Product 3 is assigned to
a. machine A.
b. machine B.
c. machine C.
d. machine D.
________________ is additional inventory kept on hand to meet variations in product
demand.
a. Safety stock
b. Buffer stock
c. Finished stock
d. None of these answer choices is correct.
Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From
the following raw data calculate the multifactor productivity.
a. 0.370
b. 0.625
c. 1.500
d. 1.667
Cycle time refers to the
a. time required for a product to go through a process layout.
b. time between finished units coming off an assembly line.
c. time needed to complete the tasks at a workstation.
d. difference between task time and workstation time.
Which of the following is not an event or concept associated with the quality
revolution?
a. TQM (total quality management)
b. Internet
c. Six Sigma
d. JIT
Given the following Product Structure Record
The number of I’s required for each A is
a. 1.
b. 2.
c. 6.
d. 12.
As part of its quality-improvement program a company is conducting a time study for a
particular job. The time study encompassed 10 job cycles, and the results include the
following cumulative times and performance rating factors for each element.
The standard time for this job using an allowance factor of 16% is
a. 1.809 minutes.
b. 2.098 minutes.
c. 1.530 minutes.
d. 2.233 minutes.
_____________ is how the mission of a firm is accomplished.
a. Strategy
b. Design
c. An operational decision
d. None of these answer choices is correct.
A continuous inventory system is also known as a
a. fixed-time period system
b. fixed-order quantity system
c. fixed-lead time system
d. fixed-amount system
A company that produces small electric motors for treadmills had cost of goods sold
last year of $241,000,000. The average value of inventory for raw materials,
work-in-process, and finished goods are shown in the table below:
If the company operates 365 days a year, the days of supply being held in inventory is
a. 44.4 days.
b. 27.4 days.
c. 8.2 days.
d. 0.1 day.
A company has a target output rate of 40 units every five hours when its line is fully
operational. To achieve this target the firm must have a desired cycle time of
a. more than 12.50 minutes.
b. more than 10.00 minutes.
c. 7.5 minutes or less.
d. 8 minutes or less.
The optimal solution for a linear programming problem will always occur
a. when the slack price equals the surplus price.
b. when the surplus price equals the slack price.
c. at an extreme point.
d. at a non-extreme point.