A manufacturing cell layout is similar to the workcenter and assembly-line layouts.
Decoupling points are steps in the process where waiting takes place, either before or
after the procedure is performed.
Governmental barriers to enter and locate in many countries are increasing through
restrictive protectionist legislation.
Fixed-time-period inventory models generate order quantities that vary from time
period to time period, depending on the usage rate.
Gap errors are information mistakes that arise when a task is transferred or handed off
between people or groups.
Operations and supply chain strategy are not important issues to investors who tend to
focus on growth, dividends, and earnings per share.
It is difficult to separate the operations management functions from marketing in
services.
Shop-floor control (or production activity control) can involve expediting late and
critical orders.
Philip Crosby states that the correct cost for a well-run quality management program
should be under 2.5 percent of sales.
One tool used in total quality management is the run chart.
What is the primary goal of an ERP system?
A. The integration of data processes and data storage
B. Creating consistent definitions across all functional areas
C. The efficient handling of the transactions as goods move through each step of the
process
D. The scheduling of machinery to minimize downtime and reduce scrap
The Pareto principle is best applied to which of the following inventory systems?A.
EOQ
B. Fixed-time-period
C. ABC classification
D. Fixed-order quantity
E. Single-period ordering system
This logic of the few having the greatest importance and the many having little
importance has been broadened to include many situations and is termed the Pareto
principle. Most inventory control situations involve so many items that it is not
practical to model and give thorough treatment to each item. To get around this
problem, the ABC classification scheme divides inventory items into three groupings:
high dollar volume (A), moderate dollar volume (B), and low dollar volume (C).
What is an important difference between capacity planning in services and capacity
planning in manufacturing operations?
A. Time
B. Location
C. Demand volatility
D. Utilization affects service
E. All of these
At a decision point in a decision tree, which machine would you select when trying to
maximize payoff when the anticipated benefit of selecting machine A is $45,000, with a
probability of 90%; the expected benefit of selecting machine B is $80,000, with a
probability of 50%; and the expected benefit of selecting machine C is $60,000, with a
probability of 75%?
A. Machine A
B. Machine B
C. Machine C
D. You would be indifferent between machines A and C.
E. You would be indifferent between machines A and B.
Which of the following is not a major strategic operational competitive dimension that
forms a company’s competitive position?
A. Cost or price
B. Delivery speed
C. Delivery reliability
D. Management acumen
E. Coping with changes in demand
There are many applications of poka-yokes in service organizations. Which of the
following is one of the three-T’s used to classify poka-yokes?
A. Task
B. Time
C. Teamwork
D. Trust
E. Talent
A series of projects that are organized in such a way that each project utilizes people
from different functional areas is using which of the following organizational
structures?
A. Matrix project
B. Integrated task force
C. Functional project
D. Pure project
E. Cross-functional flexible team
Maintaining a stable workforce working at a constant output rate while shortages and
surpluses are absorbed by fluctuating inventory levels, order backlogs, and allowing
lost sales is which of the following production planning strategies?
A. Stable workforce, variable work hours
B. Chase
C.Level
D. Full employment
E. Skill maintenance
Economic analysis of product development projects is useful in which of the following
circumstances?
A. Factory location
B. Distribution decisions
C. Go/no-go milestones
D. Demand estimation
E. Pricing
Assume there are five jobs (i.e., A, B, C, D, and E) that need to be sequenced in a
production schedule. The remaining operating time necessary for completion of job A is
3 days (i.e., job A will take 3 more days to complete), B will take 9 days, C will take 6
days, D will take 5 days and E will take 8 days. Which job should be scheduled last if
using the SOT priority rule for job sequencing?
A. A
B. B
C. C
D. D
E. E
The goods-services continuum consists of which set of the following categories?
A. No goods, some goods, even mix, some service, no service
B. Pure goods, core goods, core services, pure services
C. No service, some service, good service, excellent service
D. Self-service, help desk service, face-to-face service, service-with-a-smile
E. None of these
In Hau Lee’s uncertainty framework to classify supply chains, a supply chain for
innovative products with a stable supply process is called which of the following?
A. Efficient
B. Forward looking
C. Agile
D. Risk hedging
E. Responsive
You have collected the data for a time-cost CPM scheduling model analysis. The time is
in days and the project “direct costs” are given here
The indirect costs for the project are determined on a daily duration basis. If the project
lasts 16 days, the total indirect costs are $400; 15 days, they will be $250; 14 days, they
will be $200; and 13 days, they will be $100. At what day do we achieve the lowest
total project cost (i.e., direct plus indirect costs)?
A. 16 days
B. 15 days
C. 14 days
D. 13 days
E. 12 days
When work is scheduled in detail using the setup and run time required for each order,
it is called which of the following?
A. Infinite loading
B. Finite loading
C. Machine-limited
D. Labor-limited
E. Johnson’s rule
Similarity of projects allows for a streamlined and highly structured development
process in which variant of the generic product development process?
A. Technology-push products
B. Customized products
C. Complex systems
D. Quick-build products
E. Process-intensive products
The Malcolm Baldrige Award selection process helps improve quality and productivity
by which of the following means?
A. Stimulating foreign-based suppliers of American companies to improve quality
B. Reporting quality levels among American firms
C. Identifying American firms with the most difficult quality problems
D. Providing feedback to applicants by the examiners
E. Helping Baldrige award winners increase their sales
Which of the following is a suggestion for managing queues that is mentioned in the
textbook?
A. Put up a serpentine lane to keep people from jumping ahead in line.
B. Use humor to defuse a potentially irritating situation.
C. Segment the customers.
D. Assure customers that the wait is fair, and inform them of the queue discipline.
E. Tell people in the queue that each will be served as soon as possible.
A chance node on a decision tree has four possible outcomes, each worth $100,000. The
probabilities of the outcomes occurring are assessed as 10%, 27%, 43%, and 20%.
What is the expected value of this chance node? ____________________
Which priority rule is so powerful that it has been called “the most important concept in
the entire aspect of sequencing?” ______________________________________.
What is dispatching? __________________________________________.
If demand for product A were forecast at 1,000,000 units for the coming year and your
factory has one machine capable of producing 75,000 units per month, how much of
product A might you plan to acquire through outsourcing? _______________
An important point to keep in mind is that ____________ not software, make decisions.
ERP systems simply _________________________ better decision making.
What do we call forecasts that are for very high-level demand analysis?
_______________________________________
Name the five Ps of production
(1) ___________________________
(2) ___________________________
(3) ___________________________
(4) ___________________________
(5) ___________________________
What are the two “hidden costs” that are often overlooked in determining the total cost
of a facility location decision?
(1) __________________________________
(2) __________________________________
Value is the ratio of __________________________.
A work center has five jobs assigned to it. They are labeled, in the order of their arrival
in the shop, as jobs A, B, C, D, and E. The work center may work on only one job at a
time and must complete any job it starts before starting another job. Job A has a
processing time of 6 days and is due to the customer in 9 days. Job B has a processing
time of 2 days and is due in 16 days. Job C has a processing time of 4 days and is due in
10 days. Job D has a processing time of 3 days and is due in 7 days. Job E has a
processing time of 5 days and is due in 12 days. Using the slack time remaining priority
rule, what will be the average lateness of these orders?
_______________________________________.