One of the implementation tools from the operations consulting tool kit is the
responsibility chart.
Answer:
Process control is concerned with monitoring quality after the product or service has
been produced.
Answer:
The smaller the capacity cushion the better.
Answer:
There are two types of loops in causal loop analysis: reinforcing loops and feedback
loops.
Answer:
Activity-based costing is an attempt by accountants for manufacturing people to take
overhead costs into account when making decisions.
Answer:
You need a standard time to determine normal time in a time study analysis.
Answer:
The main operational goal of consulting firms is to satisfy the client’s needs.
Answer:
Amortization and depreciation have different meanings.
Answer:
Variable cost changes directly in proportion with changes in the Level of output.
Answer:
Business process reengineering emphasizes continuous and incremental change of
processes that are essentially in control.
Answer:
Six-sigma refers to the philosophy and methods that some companies use to eliminate
defects in their products and processes.
Answer:
A “rate fence” is a person who purchases a service at list price and later sells the service
at a premium to another person. This practice is often illegal or restricted as in
‘scalping” of tickets to a sporting event.
Answer:
In a multifactor measure of productivity the numerator of the ratio would include all
resources used or all inputs.
Answer:
Operations and supply strategy must be linked horizontally to the customer and
vertically to other parts of the enterprise.
Answer:
The customer is (or should be) the second most important focal point of all decisions in
a service organization.
Answer:
Lean production is an integrated set of activities designed to achieve high-volume
production using minimal inventories of raw materials, work in process and finished
goods.
Answer:
One objective in managing people is to make them work as hard as possible so that the
value of their output will exceed the cost of employing them.
Answer:
The leading general and special purpose simulation models follow a well-documented
and standardized approach.
Answer:
Orders taken over the internet pose a threat to data integrity in an ERP system.
Answer:
Which of the following is an example of General Purpose Simulation Software?
A.PC-MODEL
B.MAP/1
C.SIMFACTORY
D.Canella IV
E.OPUS/2.3
Answer:
In Hau Lee’s uncertainty framework to classify supply chains, a supply chain that has
innovative products and a stable supply process is called which of the following?
A.Efficient
B.Forward looking
C.Agile
D.Risk hedging
E.Responsive
Answer:
In monitoring process quality we might use which of the following statistics?
A.Absolute values
B.Percentage deviation from tolerance centers
C.”k” values for the sample mean
D.Logarithmic control intervals
E.Difference between the highest and lowest value in a sample
Answer:
If the normal time for a job is 20 minutes and the allowances for the job are 25 percent
of normal time, which one of the following comes closest to the standard time for this
job?
A.5 minutes
B.22 minutes, 30 seconds
C.24 minutes
D.25 minutes
E.35 minutes
Answer:
You want to develop a three-sigma “R” chart. You know the average range is 5 based on
several samples of size 10. Which of the following is the resulting UCL?
A.20.9
B.8.9
C.7.02
D.5
E.3.1
Answer:
Assume you are sequencing a job using Johnson’s rule. The job requires 7 hours to
assemble and then is followed by 8 hours in the painting department. Which of the
following is where you would schedule this job?
A.As early as possible in the unfilled job sequence
B.As late as possible in the unfilled job sequence
C.The schedule would depend on the due date
D.Does not matter
E.Johnson’s Rule does not apply
Answer:
With which of the following should we use an “X-bar” chart based on sample means to
monitor process quality?
A.Grades in a freshman “pass/fail” course
B.Tire pressures in an auto assembly plant
C.Vehicles passing emissions inspection
D.Computer software errors
E.Number of units with missing operations
Answer:
A company has a MAD of 10. Its wants to have a 99.7 percent control limits on its
forecasting system. It’s most recent tracking signal value is 31. What can the company
conclude from this information?
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.It is using an inappropriate forecasting methodology
Answer:
If $10,000 is invested today at an interest rate of 9 percent, compounded annually,
which of the following is the value of principal plus interest in five years?
A.$10,000
B.$12,348
C.$15,386
D.$16,770
E.$17,980
Answer:
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
Answer:
When developing inventory cost models, which of the following are not included as
costs to place an order?
A.Phone calls
B.Taxes
C.Clerical
D.Calculating quantity to order
E.Postage
Answer:
The dimension of design quality that concerns the consistency of performance over
time or the probability of failing is which of the following?
A.Response
B.Serviceability
C.Reliability
D.Reputation
E.Perceived quality
Answer:
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
Answer:
Assume you are sequencing a job using Johnson’s rule. The job requires 3 hours to
assemble and then is followed by 2 hours in the painting department. Which of the
following is where you would schedule this job?
A.As early as possible in the unfilled job sequence
B.As late as possible in the unfilled job sequence
C.The schedule would depend on the due date
D.Does not matter
E.Johnson’s rule does not apply
Answer:
Which of the following represents the greatest percentage of consulting activity for
major consulting firms?
A.Strategy
B.Information technology
C.Operations management
D.Human resources
E.Statistical quality control
Answer:
Larry’s Auto Body Repair Shop had revenues that averaged $60,000 per week in April
and $50,000 per week in May. During both months, the shop employed six full-time (40
hours/week) workers. In April the firm also had four part-time workers working 25
hours per week but in May there were only 2 part-time workers and they only worked
10 hours per week. What is the percentage change in labor productivity from April to
May for Larry’s Auto Body Repair?
A.17.65
B.15.84
C.8.97
D.1.76
E.19.23
Answer:
When work has been scheduled in a shop that does not have sufficient resources to
complete the schedule on time, the system that generated the schedule is called which
of the following?
A.Infinite loading
B.Machine-limited
C.Finite loading
D.Labor-limited
E.Constrained
Answer:
Which of the following basic types of process structures is one which equipment or
work processes are arranged according to the progressive steps by which the product is
made?
A.Project
B.Workcenter
C.Manufacturing cell
D.Assembly line
E.Continuous process
Answer:
In most cases, demand for products or services can be broken into several components.
Which of the following is considered a component of demand?
A.Forecast error
B.Autocorrelation
C.Previous demand
D.Consistent demand
E.Repeat demand
Answer:
Assuming no safety stock, what is the re-order point (R) given an average daily demand
of 78 units and a lead time of 3 days?
A.421
B.234
C.78
D.26
E.312
Answer:
Group technology (GT) is credited with which of the following benefits?
A.Reducing waiting time between process operations
B.Improving inventory discipline
C.Reducing required workforce skills
D.Improved labor relations
E.Improved small group functioning
Answer:
If the normal time for a job is 4 minutes and the allowances for the job are 10 percent of
normal time, which one of the following comes closest to the standard time for this job?
A.4 minutes
B.4 minutes, 6 seconds
C.4 minutes, 24 seconds
D.5 minutes, 24 seconds
E.6 minutes, 6 seconds
Answer:
In constructing a simulation model you decide that a particular property of the real
system should be allowed to vary throughout the simulation. What is that property
called?
Answer:
Describe some of the benefits and drawbacks to specialization of labor from the
perspectives of management and from the perspective of labor?
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 2,000, the number of samples is 100 and
the sample size is 50, what would be the standard deviation used in developing the
control lines?
Answer:
If the fraction defective is 0.12 based on a sample size of 16, what is the standard
deviation to be used when constructing a “p” chart?
Answer:
What is a closed area or compound into which foreign goods can be brought without
being subject to the necessary customs requirements?
Answer: