The allowance factor that increases normal time to standard time compensates for
inadequate worker training and lack of worker dexterity.
The transportation model calculates an optimal shipping system between a central
facility and several outlying customers.
A process that is in statistical control will always yield products that meet their design
specifications.
A normal distribution is generally described by its two parameters: the mean and the
range.
Savings in the supply chain exert more leverage as the firm has a lower net profit
margin.
An example of the postponement strategy for improving service productivity is having
the customer wait until you have sufficient time to serve the customer.
Mean charts and range charts complement one another, one detecting shifts in process
average, the other detecting shifts in process dispersion.
What directly results from disaggregation of an aggregate plan?
A) a master production schedule
B) priority scheduling
C) a transportation matrix
D) a capacity-demand matrix
E) detailed work schedules
For the problem below, what is the quantity assigned to the cell Source 3-Destination 1
using the intuitive method for an initial feasible solution?
A) 3
B) 13.333
C) 30
D) 45
E) 50
The first unit of a product took 832 hours to build, and the learning curve is 90%. How
long will it take to make the 25th unit? (Use at least three decimals in the exponent if
you use the logarithmic approach.)
A) time ¤ 500 hours
B) 500 < time ¤ 525
C) 525 < time ¤ 530
D) 530 < time ¤ 550
E) time > 550
It took 60 hours to make the first unit of a product. After the second and third units were
made, the learning curve was estimated to be 80%. At $10 per hour, estimate the labor
bill for the fourth unit. (Use at least three decimals in the exponent if you use the
logarithmic approach.)
A) $400 or less
B) from $400 to $420
C) from $420 to $440
D) from $1800 to $2000
E) over $2000
TOC was popularized by
A) Goldratt and Cox
B) Ford
C) Taguchi
D) Deming
E) Motorola and GE
Which of the following was not a factor in determining the location of Intel’s Arizona
plant?
A) skilled labor availability
B) U.S. laws to protect intellectual property
C) tax breaks from local and regional government
D) proximity to Intel’s California headquarters
E) All of the above were key factors.
The dimensions, tolerances, materials, and finishes of a component are typically shown
on a(n)
A) assembly chart
B) engineering drawing
C) bill of material
D) assembly drawing
E) route sheet
Arnold Palmer Hospital uses which of the following quality management techniques?
A) Pareto charts
B) flowcharts
C) benchmarking
D) Just-in-Time
E) The hospital uses all of the above techniques.
Which of the following statements regarding aggregate planning in services is false?
A) When outputs are intangible, aggregate planning deals mainly with human resource
requirements and managing demand.
B) Perishability of inventory is an important consideration of planning.
C) Aggregate planning in some service industries can be simpler than in manufacturing.
D) Labor is the primary aggregate planning vehicle.
E)
“Schematic used to investigate movement of people or material” describes a(n)
A) flow diagram
B) activity chart
C) operations chart
D) right-hand / left-hand chart
E) none of the above
Advances in technology
A) have impacted the manufacturing sector only
B) have had only limited impact on services
C) have failed to change the level of customer interaction with an organization
D) have had dramatic impact on customer interaction with services and with products
E) have dramatically changed health care, but have not changed retailing
Productivity can be improved by
A) increasing inputs while holding outputs steady
B) decreasing outputs while holding inputs steady
C) increasing inputs and outputs in the same proportion
D) decreasing inputs while holding outputs steady
E) none of the above
In the Office Relationship Chart, which rating reflects the highest importance for two
departments’ closeness to each other?
A) A
B) E
C) I
D) O
E) X
The normal distribution is an appropriate model of
A) the high initial failure rates of product, machine, or processes
B) system reliability where components are connected in series
C) system reliability where components are connected in parallel
D) the MTBF distribution of products, machines, or processes that have €settled in€
E) the full cost view of maintenance
The fixed-position layout would be most appropriate in which of the following settings?
A) a fast-food restaurant
B) a doctor’s office
C) a casual dining restaurant
D) a cruise ship assembly facility
E) none of the above
Three critical path activities are candidates for crashing on a CPM network. Activity
details are in the table below.
a. What is the crash cost per unit time for activity A?
b. What is the crash cost per unit time for activity B?
c. Which activity should be crashed first to cut one day from the project’s duration; how
much is added to project cost?
d. Which activity should be the next activity crashed to cut a second day from the
project’s duration; how much is added to project cost?
e. Assuming no other paths become critical, how much can this project be shortened at
what total added cost?
Which of the following is not a service design technique used to reduce cost?
A) increasing customer interaction
B) delaying customization
C) automation
D) modularizing the product
E) reducing customer interaction
Taco Bell’s unique employee scheduling practices are partly the result of using
A) point-of-sale computers to track food sales in 15 minute intervals
B) focus forecasting
C) a six-week moving average forecasting technique
D) multiple regression
E) A and C are both correct.
According to the manufacturing-based definition of quality,
A) quality is the degree of excellence at an acceptable price and the control of
variability at an acceptable cost
B) quality depends on how well the product fits patterns of consumer preferences
C) even though quality cannot be defined, you know what it is
D) quality is the degree to which a specific product conforms to standards
E) quality lies in the eyes of the beholder
With reference to cultural and ethical issues, the World Trade Organization has
A) succeeded in providing equal protection of intellectual property among nations
B) made progress in providing equal protection of intellectual property among nations
C) phased out all trade and tariff barriers between the United States and Mexico
D) eliminated slave labor and child labor
E) played little role in addressing cultural and ethical issues among nations
An innovative restaurateur owns and operates a dozen “Ultimate Low-Carb” restaurants
in northern Arkansas. His signature item is a cheese-encrusted beef medallion wrapped
in lettuce. Sales (X, in millions of dollars) is related to Profits (Y, in hundreds of
thousands of dollars) by the regression equation Y = 8.21 + 0.76 X. What is your
forecast of profit for a store with sales of $40 million? $50 million?
Provide some examples of recent product changes, i.e. new products that are replacing
older ones.
An organization’s unique skills, talents, and capabilities are referred to as its
__________.
__________ is the practice of choosing an external provider in the home country or in a
nearby country.
Identify and explain the four basic global operations strategies. Give an example of
each strategy.
Demand for a certain product is forecast to be 8,000 units per month, averaged over all
12 months of the year. The product follows a seasonal pattern, for which the January
monthly index is 1.25. What is the seasonally-adjusted sales forecast for January?
In the electronics industry, the __________ sets environmental standards, bans child
labor and excessive overtime, and audits outsourcing producers to ensure compliance.
The fourth unit of production took 80 minutes while the ninth unit of production took
50 minutes. How long did the first unit take?