Process control is concerned with monitoring quality after the product or service has
been produced.
JIT requires a stable production level. When compared to synchronous manufacturing,
this is viewed as a negative aspect of JIT.
JIT requires vendors to be located nearby. When compared to synchronous
manufacturing, this is viewed as an advantage of JIT.
SSME is an acronym standing for ‘service sector management economics.”
When stocked items are sold, the optimal inventory decision using marginal analysis is
to stock that quantity where the probable profit from the sale or use of the last unit is
equal to or greater than the probable losses if the last unit remains unsold.
A quality guru named Philip Crosby defined quality as conformance to requirements.
To implement lean production schedules, a firm would do which of the following?
A. Have excess capacity.
B. Force demand.
C. Hire a consultant.
D. Achieve bottom-up management.
E. Implement kanban groups.
The total output from a production system in one day is 900 units and the total labor
necessary to produce the 900 units is 900 hours. Using the appropriate productivity
measure, what is the resulting productivity ratio?
A. 1.000
B. 1.428
C. 0.700
D. 0.411
E. None of these
Which of the following basic types of process structures is one in which equipment or
work processes are arranged according to the progressive steps by which the product is
made?
A. Project
B. Work center
C. Manufacturing cell
D. Assembly line
E. Continuous process
Which of the following is an improvement-driven reason for outsourcing?
A. Shorten cycle time.
B. Improve effectiveness by focusing on what the firm does best.
C. Increase product and service value by improving response to customer needs.
D. Turn fixed costs into variable costs.
E. Reduce costs through a lower cost structure.
Which of the following is an input file necessary to run an MRP system?
A. Exception report
B. Computer-aided-design files
C. Inventory records file
D. Personnel files
E. Planned order schedule
In the textbook, Toyota’s Fujio Cho identified which of the following types of waste to
be eliminated?
A. Excess quality
B. Motion
C. Excess capacity
D. Underproduction
E. Excess demand
Using the assembly-line balancing procedure, which of the following is the required
cycle time if the production time in minutes per day is 1,440 and the required output per
day in units is 2000?
A. 0.72
B. 1.388
C. 250
D. 500
E. Cannot be determined from the information given
One of the objectives in facility location analysis is to select a site with the lowest total
cost. Which of the following costs are hidden costs that should be included in the
analysis?
A. Infrastructure costs
B. Movement of preproduction material between locations
C. Taxes
D. Construction costs
E. Bribery costs
Which of the following is a perpetual system for inventory management?A. Fixed-time
period
B. Fixed-order quantity
C. P model
D. First-in-first-out
E. The wheel of inventory
The fixed-order-quantity model is a perpetual system, which requires that every time a
withdrawal from inventory or an addition to inventory is made, records must be updated
to reflect whether the reorder point has been reached.
For which of the following should we use an R-chart to monitor process quality?
A. Grades in a freshman “pass/fail” course
B. Tire pressures in an auto assembly plant
C. Vehicles passing emissions inspection
D. Computer software errors
E. Number of units with missing operations
Larry’s Auto Body Repair Shop had revenues that averaged $60,000 per week in April
and $50,000 per week in May. During both months, the shop employed six full-time (40
hours/week) workers. In April the firm also had four part-time workers working 25
hours per week, but in May there were only two part-time workers and they only
worked 10 hours per week. What is the percentage change in labor productivity from
April to May for Larry’s Auto Body Repair?
A. -20.00%
B. -15.82%
C. 8.95%
D. 2.3%
E. -25.00%
Assume you are sequencing jobs using Johnson’s rule. A particular job requires 3 hours
to assemble and then is followed by 2 hours in the painting department. Which of the
following is where you would schedule this job?
A. As early as possible in the unfilled job sequence.
B. As late as possible in the unfilled job sequence.
C. The schedule would depend on the due date.
D. Does not matter.
E. Johnson’s rule does not apply.
Which of the following is not a characteristic of a well-designed service system?
A. Robust
B. Cost-effective
C. Puts customers in charge
D. User-friendly
E. Effectively links “front office” with “back office”
From an operational perspective, yield management is least effective under which of the
following circumstances?
A. Demand can be segmented by customer.
B. The product can be sold in advance.
C. The product can be kept to be sold when demand is stronger.
D. Fixed costs are high, and variable costs are low.
E. Demand is highly variable.
An analytical tool used in Six-Sigma quality improvement programs is which of the
following?
A. Leadership
B. Continuous improvement
C. Quick response
D. Partnership diagrams
E. Checksheets
What is the term for there being no relationship between demands for various items?
_____________________________________.
The National Quality Award in the United States is named what?
___________________________________
In a service operation, what are the materials purchased or consumed by the buyer
called? _____________________________________
Distinguish between dependent and independent demand. How are these demands
treated differently?
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 shortest operating time
priority rule, what will be the average lateness of these orders?
______________________________________.