One of the major benefits of DFMA is that products are designed that customers will
want.
An explicit service is readily observable by the senses.
When recovering from a defective service encounter, poor treatment from a server calls
for an apology.
There are different queuing models to fit different queuing situations.
The least unit cost method of lot-sizing technique adds ordering and inventory carrying
cost for each trial lot size and divides by the number of units in each lot size, picking
the lot size with the lowest unit cost.
The term “electronic commerce” refers to the buying and selling of electronic products
and devices.
Outsourcing is the act of moving some of a firm’s internal activities and decision
responsibility to outside providers.
The “back end” of the service encounter is more important than the “front end” because
the “back end” is where most service providers are paid.
The effects of statistical variations in processing times in a dependent sequence will
eventually cancel themselves out due to the law of averages.
“Quality at the source” requires factory workers to become their own inspectors.
In variables sampling, the actual measurements of the variable observed are used
regardless of whether the unit is good or bad.
A learning curve shows the decrease in time required for each successive unit
completed.
To take into consideration demand uncertainty in reorder point (R) calculations, what do
we add to the product of the average daily demand and lead time in days when
calculating the value of R?A. The product of average daily demand times a standard
deviation of lead time
B. A z value times the lead time in days
C. The standard deviation of vendor lead time times the standard deviation of demand
D. The product of lead time in days times the standard deviation of lead time
E. The product of the standard deviation of demand variability and a z score relating to
a specific service probability
For example, suppose we computed the standard deviation of demand to be 10 units per
day. If our lead time to get an order is 5 days, the standard deviation for the 5-day
period, assuming each day can be considered independent, is (Equation 20.8) and
multiplied by the z-score (Equation 20.9).
You are looking at a chart that has the terms BCWS, BCWP, and AC indicating lines on
the chart. What kind of chart are you looking at?
A. Gantt chart
B. PERT chart
C. Bar/milestone chart
D. Total program cost breakdown
E. EVM chart
With a 70 percent unit improvement factor learning curve and an initial time of 100
minutes to do a job, at what number of repetitions does the job take less than 50
minutes?
A. 2 repetitions of the job
B. 3 repetitions of the job
C. 4 repetitions of the job
D. 5 repetitions of the job
E. 6 repetitions of the job
In a lean production system, we expect to see which of the following?
A. No extra inventory
B. Extra inventory of critical parts held “just-in-case”
C. More parts and fewer standardized product configurations
D. Managers being held responsible for quality of the work turned out
E. Closer management-labor relationships
An important issue in facility location analysis is business climate. An unfavorable
business climate could be indicated by which of the following?
A. Similar-sized businesses nearby
B. The willingness of local politicians to provide favorable treatment for a
consideration
C. The presence of other foreign companies in the case of international locations
D. The local presence of companies in the same industry
E. An established educational institution nearby
Which of the following is a negative aspect of JIT compared to synchronous
manufacturing?
A. JIT cannot deal with outside vendors.
B. JIT needs broadly fluctuating production levels.
C. JIT does not allow very much flexibility in the products produced.
D. JIT requires a great deal of workforce computational skills.
E. JIT does not deal well with bottlenecks.
In Hau Lee’s uncertainty framework to classify supply chains, a supply chain for
functional products with an evolving supply process is called which of the following?
A. Efficient
B. Forward looking
C. Agile
D. Risk hedging
E. Responsive
Advocates of financial modeling of product design projects argue that:
A. Financial analysis focuses on measurable quantities only.
B. Financial analysis brings discipline and control to the product development process.
C. Sufficiently rigorous financial analysis can accurately forecast the product’s profit
potential.
D. Financial analysis is as solid as the assumptions that go into the model.
E. Financial analysis nurtures innovation and creativity.
You have been called in as a consultant to set up a Kanban control system. The first
thing to do is to determine the number of Kanban card sets needed. Your research shows
that the expected demand during lead time for a particular component is 150 per hour.
You estimate the safety stock should be set at 25 percent of the demand during lead
time. The tote trays used as containers can hold 8 units of stock, and the lead time it
takes to replenish an order is 2 hours. Which of the following is the number of Kanban
card sets necessary to support this situation?
A. 42
B. 47
C. 68
D. 89
E. 94
Which of the following is considered a secondary report in an MRP system?
A. Planned order schedule
B. Exceptions reports
C. Inventory record
D. Firm orders from known customers
E. Engineering change reports
A company wants to forecast demand using the weighted moving average. If the
company uses two prior yearly sales values (i.e., year 2012 = 110 and year 2013 = 130),
and we want to weight year 2012 at 10 percent and year 2013 at 90 percent, which of
the following is the weighted moving average forecast for year 2014?
A. 120
B. 128
C. 133
D. 138
E. 142
Matching the production rate to the order rate by hiring and laying off employees as the
order rate varies is which of the following pure production planning strategies?
A. Stable workforce, variable work hours
B. Chase
C.Level
D. Meeting demand
E. Minimizing inventory
In outsourcing, which of the following internal activities and decision responsibilities
cannot be transferred to outside contractors?
A. Activities involving people
B. Activities involving facilities
C. Activities involving equipment
D. Activities involving shareholders
E. Activities involving technology
Which of the following best describes the term “cycle time”?
A. Average time between completions of successive units
B. Ratio of the time a resource is activated over its use
C. Can be no more that 60 minutes
D. The same as utilization
E. The labor content of the item being measured
The effect of the lack of synchronization among supply chain members is referred to as
which of the following?
A. Forward buying
B. Continuous replenishment
C. Bullwhip effect
D. Metcalf’s law
E. Being out of step
Which of the following is a data-gathering tool from the operations consulting tool kit?
A. Gap analysis
B. Employee surveys
C. Organization charts
D. Statistical tools
E. Bottleneck analysis
In a process sequence where a product flows from process A to process B, what is
process B called? _______________________________________.
What are the physical resources that must be in place before a service can be offered
called? ______________________________
The flow of work through a hospital is sometimes referred to as what?
___________________________________
Which trend in health care uses expert system software programs to arrive at a
diagnosis? ____________________________________
Explain how yield management works and why some companies are able to use it to
manage demand patterns.
What is the criterion for determining whether a project activity is on the “critical path”
or not?
How does the degree of customer contact relate to the kinds of skills needed by service
workers and the degree of training they require?
Identify the seven principles of reengineering.
(1) ___________________________
(2) ___________________________
(3) ___________________________
(4) ___________________________
(5) ___________________________
(6) ___________________________
(7) ___________________________
What is a word indicating a resource whose capacity is less than the demand placed on
it? _________________________________.
Joining a line at an airport shoeshine stand where there are five people shining shoes
puts you in which type of queuing system line structure?
______________________________________________________