The ‘sawtooth effect,” named after turn-around artist Al “Chainsaw” Dunlap, is the
severe reduction of inventory and service levels that occurs when a firm has gone
through a hostile takeover.
Accounts receivable is the amount owed the firm by its suppliers.
Edward Deming and Philip Crosby were pioneers in the quality improvement
movement in health care.
During a recession, efficient firms often have an opportunity to increase market share
while maintaining profitability.
The generic development process outlined in the textbook is followed by many, if not
most, of the firms in the Fortune 500.
Inventory turnover and weeks of supply are mathematically the inverse of one another.
The Malcolm Baldrige National Quality Award is given to organizations that have done
which of the following?
A. Instituted a Six-Sigma approach to total quality control.
B. Demonstrated a high level of product quality.
C. Demonstrated outstanding quality in their products and processes.
D. Have a world-class quality control function.
E. Most significantly improved their product quality levels.
Firms keep supplies of inventory for which of the following reasons?A. To maintain
dependence of operations
B. To provide a feeling of security for the workforce
C. To meet variation in product demand
D. To hedge against wage increases
E. In case the supplier changes the design
All firms keep a supply of inventory for the following reasons:
According to Little’s law, which of the following ratios is used to find flow time?
A. Cycle time/Process time
B. Throughput time/Process velocity
C. Process velocity/Throughput time
D. Inventory/Throughput rate
E. Value-added time/Process velocity
What three functional areas make up the manufacturing operating cycle?
A. Manufacturing, sales, and distribution
B. Purchasing, manufacturing, and logistics
C. Procurement, engineering, and sales
D. Purchasing, manufacturing, and sales and distribution
“A measure that is used to determine how many times the same asset can be used to
generate revenue and profit” is the definition of which of the following?
A. Asset turns
B. Cash-to cash cycle
C. Production cycle
D. Inventory turns
As a consultant, you have been asked to generate a unit demand forecast for a product
for year 2014 using exponential smoothing. The actual demand in year 2013 was 750.
The forecast demand in year 2013 was 960. Using these data and a smoothing constant
alpha of 0.3, which of the following is the resulting year 2014 forecast value?
A. 766
B. 813
C. 897
D. 1,023
E. 1,120
Which of the following is an input to the master production schedule?
A. Bill of materials (BOM) file
B. Inventory records file
C. Exception reports
D. Planned-order schedules
E. None of these
The aim of quality function deployment (QFD) is:
A. To facilitate house of quality analysis
B. To provide value analysis/value engineering input
C. To integrate design for manufacturing and assembly (DFMA)
D. To facilitate better cooperation between business functions
E. To get the voice of the customer into the design of a product
The philosophical leaders of the quality movement, Philip Crosby, W. Edwards
Deming, and Joseph M. Juran, had the same general message about what it took to
achieve outstanding quality. Which of the following was part of that message?
A. Fourteen steps for quality management
B. Quality is free
C. Customer focus
D. Zero defects
E. Six Sigma
A company can produce a small lot of products the first time at a cost of $2,000. If their
85 percent learning curve allows them to reduce their costs on each lot, what is the total
cost of producing 5 lots?
A. $10,000.00
B. $9,376.50
C. $8,062.00
D. $4,031.00
E. $1,191.20
You are going to develop an X-bar chart based on range statistics, and you are using a
sample size of 12 for your charting purposes. Which of the following is the A2 factor
for the X-bar chart?
A. 0.37
B. 0.31
C. 0.27
D. 0.22
E. 0.18
A cost of quality classification is which of the following?
A. Material costs
B. Prevention costs
C. Variable overhead
D. Direct labor
E. Inventory costs
Which of the following is a characteristic of concurrent engineering?
A. Integrated computer-assisted design
B. Using automated guided vehicles
C. Separate development teams working at once
D. Having an excellent forecasting system
E. The design-build-test cycle
One of the “package of features” that make up a service is:
A. Appearance
B. Facilitating goods
C. Packaging
D. Cost
E. Implied use
Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of
product is $10, and the selling price for the finished product is $25. Which of the
following is the number of units that has to be produced and sold to break even?
A. 500 units
B. 667 units
C. 790 units
D. 900 units
E. 1,000 units
Which of the following is primarily used to help design products that will connect
product attributes with customer desires?
A. Phase 0: Planning
B. House of quality matrix
C. Value analysis/value engineering
D. Concurrent engineering
E. System-level design
Which of the following is not an aspect of ERP that determines quality?
A. The software should be multifunctional.
B. The software should be integrated.
C. The software should narrowly focus on a single function.
D. The software must facilitate basic planning.
In a Gantt chart, the horizontal axis is usually which of the following?
A. Activities
B. Cost
C. Profit
D. Time
E. Milestones
What are the five conditions named in the text that support yield management from an
operational perspective?
(1) ____________________________
(2) ____________________________
(3) ____________________________
(4) ____________________________
(5) ____________________________
What is sub-optimization in scheduling?
______________________________________________.
A work center has five jobs assigned to it. They are labeled, in the order of their arrival
in the shop, as jobs A, B, C, D, and E. The work center may work on only one job at a
time and must complete any job it starts before starting another job. Job A has a
processing time of 6 days and is due to the customer in 9 days. Job B has a processing
time of 2 days and is due in 16 days. Job C has a processing time of 4 days and is due in
10 days. Job D has a processing time of 3 days and is due in 7 days. Job E has a
processing time of 5 days and is due in 12 days. Using the earliest due date (EDD)
priority rule, in what order should these jobs be undertaken?
_______________________________________.
Buying items at a department store where there are a large number of checkout counters
features which type of queuing system line structure?
______________________________________
The ratio of output to input is called ____________.
What is the symbol designating the capability index?
______________________________
Give an example of a project layout. ______________________
What is the name for a group of countries that have agreed on a set of special
arrangements governing the buying and selling of goods between member countries?
________________________
Describe how cost accounting is sometimes antithetical to TOC?
Assuming no safety stock, what is the reorder point (R) given an average daily demand
of 100 units and a lead time of 5 days? __________________________________.