A process batch should be no larger than the transfer batch.
The point at which the scale economy curve and the learning curve intersect is called
the capacity optimum.
One of the definitions for the cost of quality is that it represents the costs attributable to
the production of quality that is not 100 percent perfect.
One form of gap analysis used in operations consulting is benchmarking particular
client company processes against firms that are exemplars in the process and measuring
the differences.
Health care is the most intensive of service industries.
The term CTQ is used in the “define (D)” portion of the DMAIC methodology.
The “house of quality” matrix is a technique that relates customer requirements to
concrete operating or engineering goals.
Design of experiments is a statistical methodology often used in Six-Sigma projects. It
aims to accomplish which of the following?
A. Keep careful track of the occurrences of each possible defect.
B. Determine the cause-and-effect relationships between process variables and output.
C. Report defects to management on a Pareto chart.
D. Carefully change each individual process variable until the cause of a defect is
found.
E. Eliminate defects by finding out who or what is causing them.
Which of the following is the net requirement using an MRP program if the gross
requirement is 1,000 and the inventory on hand is 500?
A. 1,000
B. 950
C. 500
D. 400
E. 350
Which of the following is not one of the categories in a tour?
A. Customer satisfaction
B. Teamwork and motivation
C. Productivity incentives
D.Level of inventory
E. Commitment to quality
A company has recorded the last six days of daily demand on a single product it sells.
Those values are 37, 115, 93, 112, 73, and 110. The time from when an order is placed
to when it arrives at the company from its vendor is 3 days. Assuming the basic
fixed-order-quantity inventory model fits this situation and no safety stock is needed,
which of the following is the reorder point (R)?A. 540
B. 270
C. 115
D. 90
E. 60
Using Equation 20.4, Average demand is 37 + 115 + 93 + 112 + 73 + 110/6 = 90. Lead
time = 3 days, so the reorder point is 90 x 3 = 270.
Which of the following can be used for lot sizing in an MRP system?
A. Low-level coding
B. Time bucket size
C. Least unit cost
D. Inventory record file
E. Peg inventory
Which of the following is an element that addresses elimination of waste under lean
production?
A. Production ahead of demand
B. Group plant loading technology
C. Kanban production control system
D. Minimized run times
E. Full capacity utilization
If a firm produced a product that was experiencing growth in demand, the smoothing
constant alpha (reaction rate to differences) used in an exponential smoothing
forecasting model would tend to be which of the following?
A. Close to zero
B. A very low percentage, less than 10 percent
C. The more rapid the growth, the higher the percentage
D. The more rapid the growth, the lower the percentage
E. 50 percent or more
Which of the following is not included as an inventory holding cost?A. Annualized cost
of materials
B. Handling
C. Insurance
D. Pilferage
E. Storage facilities
Holding costs include the costs for storage facilities, handling, insurance, pilferage,
breakage, obsolescence, depreciation, taxes, and the opportunity cost of capital.
In conducting aggregate operations planning, there are a number of required inputs.
Which of the following inputs are considered internal to the firm?
A. Inventory levels and economic conditions
B. Market demand and subcontractor capacity
C. Current physical capacity and current workforce
D. Competitor behavior and current workforce
E. Current physical capacity and raw material availability
With an 80 percent unit improvement factor learning curve and an initial time of 100
minutes to do a job, at what number of repetitions will the job take less than 50
minutes?
A. 5 repetitions of the job
B. 6 repetitions of the job
C. 7 repetitions of the job
D. 8 repetitions of the job
E. 9 repetitions of the job
In acceptance sampling, the value for the acceptance number (c) is determined by the
interaction of the acceptable quality level (AQL), the lot tolerance percent defective
(LTPD), the probability of rejecting a high-quality lot (alpha), and the probability of
accepting a low-quality lot (beta).
Which of the following is a tool of shop-floor control?
A. The hours worked per employee report
B. The anticipated delay report
C. The permanent work-in-process report
D. Time and motion studies
E. Product and process control report
Which of the following is considered a “pure” production planning strategy?
A. Variable workforce, stable work hours
B. Lag demand
C.Level playing field
D. Stable workforce, variable work hours
E. Product warehouse
You would like to use the fixed-time period inventory model to compute the desired
order quantity for a company. You know that vendor lead time is 10 days and the
number of days between reviews is 15. Which of the following is the standard deviation
of demand over the review and lead time period if the standard deviation of daily
demand is 10?A. 25
B. 40
C. 50
D. 73
E. 100
Using Equation 20.12, the standard deviation of demand over the 25 days of time
between reviews and lead time is the square root of (25 x 100) = 50.
A company wants to forecast demand using the weighted moving average. If the
company uses three prior yearly sales values (i.e., year 2011 = 160, year 2012 = 140,
and year 2013 = 170), and we want to weight year 2011 at 30 percent, year 2012 at 30
percent, and year 2013 at 40 percent, which of the following is the weighted moving
average forecast for year 2014?
A. 170
B. 168
C. 158
D. 152
E. 146
A company has actual unit demand for three consecutive years of 124, 126, and 135.
The respective forecasts for the same three years are 120, 120, and 130. Which of the
following is the resulting MAD value that can be computed from these data?
A. 1
B. 3
C. 5
D. 15
E. 123
Which of the following is an example of general-purpose simulation software?
A. Link Trainer Programs
B. SI
C. SIM-Central
D. C++
E. Visual Basic
When material is ordered from a vendor, which of the following is not a reason for
delays in the order arriving on time?A. Normal variation in shipping time
B. A shortage of material at the vendor’s plant causing backlogs
C. An unexpected strike at the vendor’s plant
D. A lost order
E. Redundant ordering systems
When material is ordered from a vendor, delays can occur for a variety of reasons: a
normal variation in shipping time, a shortage of material at the vendor’s plant causing
backlogs, an unexpected strike at the vendor’s plant or at one of the shipping
companies, a lost order, or a shipment of incorrect or defective material.
What is the effect of the lack of synchronization among supply chain members called?
________________________
Discuss the role of efficiency and effectiveness in the creation of value.
What might you do in designing a two-stage process where each process had equal
average process time but with high process time variability in the first stage and low
variability in the second stage? Why?
What seven variants of the generic product development process are discussed in the
text?
1. ______________________________
2. ______________________________
3. ______________________________
4. ______________________________
5. ______________________________
6. ______________________________
7. ______________________________
What do we call forecasts needed for how a firm operates on a day-to-day basis?
_______________________________________
A pipeline through which material and information flows is a conception of a
______________________.
Lots are defined as low quality when the percentage of defective units is greater than
what? ________________________________________