Productivity in a production process can be measured by the ratio of output to input.
An effective job of operations consulting results in an alignment between strategy and
process dimensions in a way that enhances the business performance of the client.
If the fraction defective is 0.4 based on a sample size of 100, the standard deviation
used in the -chart is about 0.10.
In the generic product development process, phase 2 (system-level design) begins with
corporate strategy and incorporates market objectives.
A synchronous manufacturing system does not have excess capacity throughout the
system, except for the bottleneck.
McDonald’s fast-food restaurants use a make-to-order production process.
Group technology is a philosophy wherein similar parts are grouped together and the
processes required to make the parts are arranged as a work cell.
The time-phased plan specifying how many and when the firm plans to build each end
item is called the master production schedule (MPS).
The placement of which of the following is not determined by production process
organization decisions?
A. Departments
B. Work groups
C. Workstations
D. Machines
E. Emergency exits
Which of the following is the set of all cost components that make up the
fixed-order-quantity total annual cost (TC) function?A. Annual purchasing cost, annual
ordering cost, fixed cost
B. Annual holding cost, annual ordering cost, unit cost
C. Annual holding cost, annual ordering cost, annual purchasing cost
D. Annual lead time cost, annual holding cost, annual purchasing cost
E. Annual unit cost, annual set up cost, annual purchasing cost
Total annual cost = Annual purchase cost + Annual ordering cost + Annual holding cost.
See Equation 20.2.
Which of the following is a “focusing step” of Dr. Eli Goldratt’s theory of constraints?
A. Reduce system constraints.
B. Reinforce system constraints.
C. Support system constraints.
D. If you have no system constraints, make some.E. Identify system constraints.
Which of the following are not listed in the text as jobs in OSCM?
A. Department store manager
B. Project manager
C. Hospital administrator
D. Data center manager
E. Call center manager
Using the probability approach to determine an inventory safety stock and wanting to
be 95 percent sure of covering inventory demand, which of the following is the number
of standard deviations necessary to have the 95 percent service probability assured?A.
1.28
B. 1.64
C. 1.96
D. 2.00
E. 2.18
Companies using this approach generally set the probability of not stocking out at 95
percent. This means we would carry about 1.64 standard deviations of safety stock,
Which one of the following is not a major factor distinguishing service design and
development from manufacturing design and development?
A. The process and product must be developed at the same time.
B. Many service organizations can change their service offerings virtually overnight.
C. Many parts of the service package are often defined by the training that individuals
receive before they become part of the service organization.
D. The service package, rather than a definable good, is the output of the development
process.
E. Service operations can be protected by patents; manufacturing operations cannot.
When balancing an assembly line, which of the following is not a way to reduce the
longest task time below the required workstation cycle time?
A. Upgrade the equipment
B. Assign a roaming helper to support the line
C. Split the task between two workstations
D. Speed up the assembly line transfer mechanism
E. Use a more skilled worker
In time series data depicting demand, which of the following is not considered a
component of demand variation?
A. Trend
B. Seasonal
C. Cyclical
D. Variance
E. Autocorrelation
You are a consultant called in to estimate the costs after the employees learn how to do
a job more efficiently by repetition of new product. You find a company can produce a
product the first time at a cost of $5,000. If their 90 percent learning curve allows them
to reduce their costs on each unit, what is the total cost of producing 100 units of the
new product?
A. $500,000
B. $390,000
C. $290,700
D. $250,687
E. $250,000
You have the following time and cost information for use in a time-cost CPM
scheduling model.
What are the three costs per unit of time to expedite each activity?
A. A = $300, B = $200, C = $300
B. A = $100, B = $200, C = $400
C. A = $200, B = $200, C = $200
D. A = $100, B = $400, C = $300
E. A = $200, B = $300, C = $400
Heavy sales of umbrellas during a rain storm is an example of which of the following?
A. A trend
B. A causal relationship
C. A statistical correlation
D. A coincidence
E. A fad
A listing of immediate predecessor activities is important information in a CPM
analysis for which of the following reasons?
A. It specifies the relationships in the CPM network of activities.
B. It provides useful timing information.
C. It includes cost information.
D. It is the probability information required in the final step of CPM.
E. None of these
Which of the following is considered a primary report in an MRP system?
A. Planning reports
B. Performance reports
C. Exception reports
D. Planned order schedules
E. Cycle counting reports
PERT is an abbreviation for which of the following methodologies?
A. Product evaluation, result, and treatment
B. Programming and evaluation realization technology
C. Program evaluation and review technique
D. Process evaluation and review technology
E. It is a name, not an abbreviation for anything.
You want to develop a three-sigma R-chart. You know the average range is 5 based on
several samples of size 10. Which of the following is the resulting UCL?
A. 20.9
B. 8.9
C. 7.02
D. 5
E. 3.1
Current issues in OSCM do not include:
A. Coordinating relationships between organizations
B. Making senior management aware that OSCM can be a competitive weapon
C. The triple bottom line
D. Managing customer touch points
E. Increasing global supply chain employment
Which of the following is not an improvement-driven reason to outsource?
A. Improve risk management.
B. Increase commitment in a noncore area.
C. Shorten cycle time.
D. Improve quality and productivity.
E. Obtain expertise, skills, and technologies that are otherwise not available.
Which of the following is one of the five Ps of production?
A. Preparation
B. Production quality
C. People
D. Project management
E. Purchasing
Which of the following is not an organizationally driven reason for outsourcing?
A. Improve effectiveness by focusing on what the firm does best.
B. Improve flexibility to meet changing demand for products and services.
C. Increase product and service value by improving response to customer needs.
D. Improve credibility and image by associating with superior providers.
E. All of these are organizationally driven reasons for outsourcing.
Which of the following is the stage in the operations consulting process that
immediately follows “present final report”?
A. Design, develop, and test alternative solutions
B. Develop systematic performance measures
C. Present invoice
D. Assure client satisfaction
E. Implement changes
The step in the six-step process for green sourcing where quantitative and qualitative
criteria to evaluate the sourcing process are developed is called:
_____________________.
What are buyer power, potential entrants, power of suppliers, potential of substitutes
and industry rivalry? ____________________________________
You have run a capacity resource profile on your shop. A process routes products
sequentially through resources A, B, C, and D. The capacity resource profile tells you
that resource A is scheduled at 95 percent of capacity, resource B at 80 percent of
capacity, resource C at 130 percent of capacity, and resource D at 100 percent of
capacity. Assuming that the data we used to calculate the capacity resource profile was
accurate, what have we discovered about the process A, B, C, and D?
_________________________________________.
The textbook mentions three kinds of performance dashboards. Name them.
(1) ___________________________
(2) ___________________________
(3) ___________________________
Are customer arrivals drawn from finite and infinite populations analyzed differently?
Why or why not?
You want to determine the control lines for a -chart for quality control purposes. If the
total number of defects from all samples is 560, the number of samples is 70, and the
sample size is 80, what would be the standard deviation used in developing the control
lines? ______________________________________
What is the name for demand caused by the demand for a higher-level item?
__________________________
What is a capacity cushion, and why would a firm have one?
You have collected the data for a time-cost CPM scheduling model analysis. The time is
in days and the project “direct costs” are given here.
The indirect costs for the project are determined on a daily duration basis. If the project
lasts 16 days, the total indirect costs are $400; 15 days, they will be $250; 14 days, they
will be $200; and 13 days, they will be $100. If you crash this project by one day what
is the total (i.e., direct and indirect) project cost? ____________________
Describe the aggregate sales and operations planning process.