Which of the following is NOT a best practice and prerequisite for implementing a
just-in-time system?
a. Maximizing the number of parts or items
b. Good calibration of all gauges and testing equipment
c. Clean and uncluttered workplaces
d. Minimizing setup/changeover time
Answer:
The typical layout of facilities in a legal office would be an example of a _____ layout.
a. product
b. process
c. cellular
d. fixed-position
Answer:
Consider the work sampling information below.
a. If the performance rating factor for Q = 0.80, R = 1.10, and S = 1.10 and the total
allowance is 17 percent, determine the normal time for the job.
b. With the allowance of 17 percent, determine the output per hour.
Answer:
The control of Walmart’s value chain is _____, while the control of General Electric’s is
_____.
a. postproduction focused; preproduction focused
b. horizontal; vertical
c. centralized; decentralized
d. backward integrated; forward integrated
Answer:
The decisions for the product-process matrix include all the following EXCEPT:
a. volume of demands.
b. range of products.
c. pathways.
d. type of goods.
Answer:
A bottling process sometimes results in overfills or underfills. Overfills are especially
damaging to the equipment. Which process capability index would this company most
want to monitor?
a. Cp
b. Cpl
c. Cpu
d. Cpk
Answer:
An R-chart is always analyzed first because the control limits in the R-chart depend on
the mean of the data.
Answer:
Which of the following is NOT one of the three major perspectives (dimensions) of
sustainability?
a. Global sustainability
b. Environmental sustainability
c. Economic sustainability
d. Social sustainability
Answer:
The following five jobs, along with their processing time and due dates, are given
below.
Using the earliest due date (EDD) rule, the average flow time for the five jobs is _____.
a. less than or equal to 5 days
b. more than 5 but less than or equal to 10 days
c. more than 10 but less than or equal to 15 days
d. more than 15 but less than or equal to 20 days
Answer:
Five samples are taken, with five observations each. The sample findings are listed
below. The sample values represent service times in minutes.
Answer:
Which of the following statements based on the David Christopher, Orthopedic
Surgeon, case study is TRUE?
a. Hiring a third surgeon allowed all three surgeons to barely meet demand for the
surgery mix.
b. The workload of surgeons A and B could be rebalanced and equalized by moving
three surgery procedures from surgeon B to A.
c. To fix the surgeon demandcapacity shortage, one option is to increase the surgeon’s
workday from five to six hours.
d. Setup/changeover time represented 48 percent of the two surgeon’s total surgery time
and workload.
Answer:
Identify the chart that is also known as fraction nonconforming or fraction defective
chart.
a. A p-chart
b. A c-chart
c. An x-chart
d. An r-chart
Answer:
Which of the following statements is TRUE regarding next-event simulation models?
a. They are used less commonly in practice than fixed-time simulation models.
b. They are the basis for most commercial simulation software.
c. They increment time by the occurrence of the preceding event.
d. They are less accurate than fixed-time-increment simulation models.
Answer:
Which one of the following statements about Project Evaluation and Review Technique
(PERT) is TRUE?
a. The expected time is given and not computed using formulas.
b. The probability of completing the project on time is 0 when the project target
completion time equals the expected time.
c. The normal probability distribution is not used in PERT methods.
d. The variance in project duration is given by the sum of the variances of the critical
path activities.
Answer:
Which of the following statements is TRUE about enterprise resource planning (ERP)
systems?
a. It is a business strategy designed to learn more about customers’ wants, needs, and
behaviors.
b. It gives each function or department the ability to set up its own database.
c. Customer ordering and production scheduling are its real-time transaction processing
systems.
d. It consists of a single module.
Answer:
A busy municipal golf driving range prepares 300 hotdogs daily. For a variety of
reasons, the daily demand for hotdogs varies as follows:
a. If the hotdogs sell for $1.50 each and cost $0.80 each, determine the range’s profit or
loss on hotdogs for day three using the following random numbers: 00, 59, 02, 97, 69,
98, 93, 49, 51, and 92.
b. If the hotdogs sell for $1.50 each and cost $0.80 each, determine the range’s profit or
loss on hotdogs for day eight using the following random numbers: 00, 59, 02, 97, 69,
98, 93, 49, 51, and 92.
c. If the hotdogs sell for $1.50 each and cost $0.80 each, determine the average daily
demand for hotdogs using the following random numbers: 00, 59, 02, 97, 69, 98, 93, 49,
51, and 92.
Answer:
A(n) _____ is included in service provider publications and advertisements.
a. artifact
b. service-encounter design
c. explicit service guarantee
d. service-upset clause
Answer:
Which of the following is NOT supported by Japan’s Genichi Taguchi?
a. Tolerance optimization
b. Goal-post model
c. Quadratic loss function
d. Monetary expression of variation
Answer:
Which of the following is NOTa basic principle of a lean operating system?
a. Elimination of waste
b. Batching
c. Increased speed and response
d. Improved quality
Answer:
Which of the following statements is TRUE?
a. Common cause variation arises from external sources that are not inherent in the
process and is where statistical quality control methods are most useful.
b. If the metric is discrete, a p- or c-chart is normally used.
c. Statistical process control is not used in hospitals due to the high liability costs.
d. Statistical process control charts are most efficient when trying to monitor and
control 5- and 6-sigma quality levels.
Answer:
The bill of material (BOM) for Products A and B are shown below followed by a table
of inventory data (called Exhibit 1). The master production scheduling (MPS) for A
calls for 150 units of A to be completed in Week 4 and another 225 units to be
completed in Week 5. End item A has a two-week lead time. The MPS calls for 400
units of B to be completed in Week 6. End item B has a one-week lead time.
Exhibit 1
Using the data given in Exhibit 1, determine the projected on-hand inventory for Item
C, beginning in Week 8.
a. 800 units
b. 645 units
c. 155 units
d. 0 units
Answer:
Steve, an operations manager at Clan Corp. is promoted to manage the process defined
by the four stages A to D below. This process could be human resource management,
marketing, accounting, finance, or engineering process, and Steve is the manager. This
is his chance to impress his boss and get promoted again. After three months on the job,
Steve realizes something is not right with the process. His employees experience big
pile up of work, things take too long to be processed, the opportunity for error is
increasing, and the entire process is almost chaotic. Do a process and capacity analysis
of this process. The numbers in parenthesis(#) are the time inminutes to complete one
unit of work. Demand on the process averages 30 units per hour and each unit must be
worked on by all four stages. Administrative clerk(s) do Stage A work. The assistant
manager(s) are cross-trained to do both Stages C and D work. The coding specialist(s)
do Stage B work.
The total process (throughput) capacityin units per hour for the four-stage process A
to D assuming 3 administrative clerks, 3 coding specialist, and 3 assistant managers on
duty is:
a. less than 10 units per hour.
b. more than 10 units but less than or equal to 20 units.
c. more than 20 units but less than or equal to 30 units.
d. more than 30 units but less than or equal to 40 units.
Answer:
Regular patterns in a data series that take place over long periods of time are called
_____.
a. trends
b. seasonal patterns
c. cyclical patterns
d. irregular variations
Answer:
Subway’s sandwich process is best described as:
a. custom or make-to-order.
b. option or assemble-to-order.
c. standard or make-to-stock.
d. a value (supply) chain.
Answer:
A manufacturing firm is considering three alternatives for automation. They anticipate
the annual production volume to be 7,000 units. The costs for each alternative are as
shown:
a. What sales price must be charged for Alternative 1 to break even?
b. What sales price must be charged for Alternative 2 to break even?
c. What sales price must be charged for Alternative 3 to break even?
Answer:
Regression analysis:
a. is limited to one dependent and one independent variable.
b. is best with nonlinear relationships.
c. maximizes the sum of the squared deviations between the actual time-series value
and the estimated values of the dependent variable.
d. can be used with time as the independent variable.
Answer:
Average inventory in the economic order quantity (EOQ) model is defined as:
a. the order quantity divided by the number of inventory cycles per year.
b. the annual usage divided by the number of inventory cycles per year.
c. one-half of the order quantity.
d. one-half of the annual usage.
Answer:
A cargo airline company in South America ferries materials from four different airfields
in Brazil (called A, B, C, and D) to two different airfields in Peru (numbered 1 and 2).
Distances in hundreds of miles between the six different airfields are as shown below:
Requirements for airfield 1 are 140 tons per year and 80 tons per year for airfield 2. The
president of the airlines wants to determine how much material should be shipped from
each airfield in Brazil to each airfield in Peru so as to minimize total travel distance.
a. How many decision variables are there in this problem?
b. What is the constraint corresponding to airfield 1?
c. What is the constraint corresponding to airfield B?
Answer:
The center-of-gravity method takes all the following into account EXCEPT the:
a. location of facilities and markets.
b. demand.
c. transportation costs.
d. production costs.
Answer:
Personal fatigue and delay allowances are added to _____ to arrive at _____.
a. standard time; normal time
b. standard time; desired time
c. normal time; desired time
d. normal time; standard time
Answer:
If the forecast annual production volume is 10,000 units, which technology alternative
should you choose?
a. Manual
b. Semi-automatic
Answer:
_____ refers to acquiring capabilities toward suppliers.
a. Advancing integration
b. Horizontal integration
c. Forward integration
d. Backward integration
Answer:
Support processes are the ones that directly create and deliver goods and services.
Answer:
The minimax-regret approach to one-time decisions without event probabilities is
neither aggressive nor conservative.
Answer:
A key factor that affects technology decisions is scalability. Define scalability. Explain
the difference between high scalability, infinite scalability, and low scalability.
Answer:
UPS, the world’s largest package delivery company, is highly dependent on scheduling
but not sequencing.
Answer:
Explain the 5Ss.
Answer:
A major grocery chain desires to build a facility in a city with three distinct market
demographic segments. The number of possible customers in each segment and the
central location coordinates of the segments are given below. Using the
center-of-gravity method for the best location, identify the TRUE statement.
a. The x-axis and the y-axis are less than 10.0.
b. The x-axis is less than 10.0, and the y-axis is more than 10.0.
c. The x-axis is more than 10.0, and the y-axis is less than 10.0.
d. The x-axis and the y-axis are more than 10.0.
Answer:
ISO 9000:2000 is best used by firms with formal quality systems as a means of refining
their quality practices.
Answer:
What is customer contact? Differentiate between high-customer-contact systems and
low- customer-contact systems. Provide examples of each.
Answer:
Random variation is the unexplained deviation of a time series from a predictable
pattern, such as a trend, seasonal, or cyclical pattern.
Answer:
Explain the use of regression analysis in establishing standard times with an example.
Answer:
Larry sells sweatshirts at football games. The quantity supplied to him is sometimes less
than he ordered. The probability distribution below shows the probability of these
shortages.
Simulate the average number of shortages for 15 consecutive orders, using the
following single digit random numbers: 1, 6, 8, 3, 4, 5, 7, 0, 3, 8, 9, 3, 2, 4, and 2.
Answer:
Why is measurement important?
Answer:
In the context of the 5Ss, standardize means to formalize procedures and practices to
create consistency and ensure that
all steps are performed correctly.
Answer:
Explain the concept of a service encounter with examples. How does a service
encounter relate to a moment of truth?
Answer:
Describe the five key dimensions of assessing service quality.
Answer:
Airline flights to ski areas near Denver, Colorado, probably have different means and
variances throughout the year. This is an example of dynamic demand.
Answer:
Economies of scale occur when the average unit cost of a good or service begins to
increase as the capacity and/or volume of throughput increases.
Answer:
Because of the Internet and e-commerce, all parts of the value chain can immediately
know and react to changes in demand and supply. Thus, tight integration of the
components of the value chain is no longer required.
Answer:
The focus of preproduction services is on gaining a customer while that of
postproduction services is on keeping the customer.
Answer:
What is the purpose of a process capability study and what is a process capability
index?
Answer: