In the M/M/1 waiting line model with an arrival rate of 2 per hour and a service rate of
6 per hour, the utilization factor for the system is approximately 0.333.
A useful tactic for increasing capacity is to redesign a product in order to get more
throughput.
Most services are tangible; this factor determines how the ten decisions of operations
management are handled differently for goods than for services.
When using the low-cost strategy for supply chain-management, the firm should invest
aggressively to reduce production lead time.
One reason for a firm locating near its competitors is the presence of a major resource it
needs.
Nearshoring is the practice of choosing an outsource provider in the home country or in
a nearby country.
Small standard deviations in the MTBF distribution of a machine tend to support a
policy of breakdown maintenance for that machine.
In linear programming, a statement such as “maximize contribution” becomes an
objective function when the problem is formulated.
Wheeled Coach obtains competitive advantage through MRP in part because of their
excellent record integrity and insistence on record accuracy.
Simulation has numerous applications in modern business, but few of these are in the
area of operations.
Harley-Davidson, because it has so many possible combinations of products, utilizes
the process strategy of mass customization.
Maintenance includes all activities involved in keeping a system’s equipment in
working order.
Most unions do not accept the use of predetermined time standards.
Mean Squared Error and Coefficient of Correlation are two measures of the overall
error of a forecasting model.
In acceptance sampling, a manager can reach the wrong conclusion if the sample is not
representative of the population it was drawn from.
What is the practice of moving a business process to a foreign country but retaining
control of it?
A) exporting
B) farshoring
C) offshoring
D) outsourcing
E) backsourcing
Which of the following is true regarding the steps to reducing setup times?
A) The first step involves performing as much setup preparation as possible while the
process/machine is operating.
B) The cycle of steps is repeated until setup time is reduced to under a minute.
C) The standardization of both tooling and work procedures is advantageous to setup
time reduction.
D) Improved material handling and move material closer are done before operator
training.
E) All of the above are true.
When Daimler and BMW pooled resources to develop standardized auto components
the supply-chain strategy could best be described by
A) keiretsu
B) virtual companies
C) joint venture
D) vertical integration
E) few suppliers
The technique known as level schedules
A) requires that schedules be met without variation
B) processes many small batches rather than one large one
C) is known as “jelly bean” scheduling
D) is based on meeting one day’s demand with that day’s production
E) All of the above are true regarding level scheduling.
Flow time represents the time
A) an order spends waiting for processing at a work center
B) an order spends being processed at a work center
C) an order spends moving from one work center to another
D) to complete an order, including time spent in processing and in waiting
E) none of the above
Which of the following is not an element of the management process?
A) controlling
B) leading
C) planning
D) pricing
E) staffing
A crew of mechanics at the Highway Department garage repair vehicles that break
down at an average of = 8 vehicles per day (approximately Poisson in nature). The
mechanic crew can service an average of = 11 vehicles per day with a repair time
distribution that approximates an exponential distribution. The crew cost is
approximately $300 per day. The cost associated with lost productivity from the
breakdown is estimated at $150 per vehicle per day (or any fraction thereof). What is
the expected cost of this system?
A quality analyst wants to construct a sample mean chart for controlling a packaging
process. He knows from past experience that the process standard deviation is two
ounces. Each day last week, he randomly selected four packages and weighed each. The
data from that activity appears below.
(a) Calculate all sample means and the mean of all sample means.
(b) Calculate upper and lower control limits that allow for natural variations.
(c) Is this process in control?
Which of the following dispatching rules is typically the best technique for taking first
those jobs with the most urgent needs?
A) shortest processing time
B) critical ratio
C) earliest due date
D) longest processing time
E) none of the above
Four of the components of job design are
A) employment stability, work schedules, work sampling, motivation, and incentive
systems
B) job specialization, job expansion, psychological components, and self-directed teams
C) labor specialization and enrichment, motivation and incentive systems, employment
stability, and work sampling
D) ergonomics and work methods, method time measurement, work schedules, and
incentive systems
E) labor specialization, time studies, work sampling, and pre-determined time standards
In “drum, buffer, rope,” what provides the schedule, i.e. the pace of production?
A) drum
B) buffer
C) rope
D) all three of the above in combination
E) none of the above
The causes of variation in statistical process control are
A) cycles, trends, seasonality, and random variations
B) producer’s causes and consumer’s causes
C) mean and range
D) natural causes and assignable causes
E) Type I and Type II
Increasing the number of periods in a moving average will accomplish greater
smoothing, but at the expense of
A) manager understanding
B) accuracy
C) stability
D) responsiveness to changes
E) All of the above are diminished when the number of periods increases.
Yield management is most likely to be used in which one of the following situations?
A) a fast food restaurant with wide demand fluctuations during the day
B) a dental clinic that wants to fill its appointment book
C) a firm with a good counterseasonal product mix
D) a shipping company that can change its fleet size easily
E) an airline attempting to fill “perishable” seats at maximum revenue
Which of the following industries is most likely to have low equipment utilization?
A) auto manufacturing
B) commercial baking
C) television manufacturing
D) chemical processing
E) restaurants
Identify the steps involved in building the House of Quality.
What is SWOT analysis? List its four elements and describe its purpose.
A(n) __________ is a firm that has extensive involvement in international business,
owning or controlling facilities in more than one country.
A work cell is required to make 140 computerized diagnostic assemblies (for
installation into hybrid automobiles) each day. The cell currently works an eight hour
shift, of which seven hours is available for productive work. These assemblies require
five operations. Standard times for these operations are: Operation A, 3.0 minutes, B,
1.8 minutes, C, 2.4 minutes, D, 2.5 minutes, and E, 1.4 minutes. What is takt time for
this cell? How many workers will be needed to achieve this schedule? Use the grid
below to construct a work balance chart for this cell.
A company is deciding if it should do design of a product in-house or outsource the
design. If outsourced the cost for a low bidder would be $40,000 and the cost for an
expensive bidder $100,000. To do the design in-house would require over-time for an
already stretched design team with total costs of $70,000. If all three designs (in-house,
low bid, high bid) are equal in quality and the likelihood of finding a low bidder is 60%
(meaning that 40% of the time the firm will have to hire the expensive bidder), should
the company outsource design or do it in-house?
What is a conditional value?
A Cpk index greater than __________ is a capable process, one that generates fewer
than 2.7 defects per 1000 at the ±3 level.
Wheeled Coach uses __________ as the catalyst for low inventory, high quality, tight
schedules, and accurate records.
In the __________ phase of the product life cycle, the product design has begun to
stabilize.