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A project organization works best for an organization when the project resides in only
one of its functional areas.
A waiting-line system has three parts: the size of the arrival population, the behavior of
arrivals, and the statistical distribution of arrivals.
"Phantom bills" are bills of material for subassemblies that do not exist in reality.
The first step in level material use is to combine orders into a few large batches in order
to utilize economies of scale.
Customer interaction is often high for manufacturing processes, but low for services.
Preventive maintenance is reactive.
If the service time within a queuing system is constant, the service rate can be easily
described by a negative exponential distribution.
Regression lines graphically depict "cause-and-effect" relationships.
FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because
of the incentives offered by the city of Memphis and the state of Tennessee.
The reliability of a system in which each individual component must function in order
for the entire system to function, and in which each component has its own unique
reliability, independent of other components, is the product of the probabilities of each
of those components.
Project managers have their own code of ethics, established by the Project Management
Institute.
The "full cost view of maintenance" results in more firms choosing a policy of
breakdown maintenance, when compared to the "traditional view of maintenance."
The Toyota Production System requires that activities have built-in, automatic tests so
that gaps between expectations and actuality are immediately evident.
Disaggregation is the process of breaking the aggregate plan into greater detail; one
example of this detail is the Master Production Schedule.
Utilization in process-oriented facilities is frequently low because
A) the postponement strategy for improving service productivity is being used
B) scheduling in process-oriented facilities is not very complex
C) with high fixed costs, utilization is not very important
D) excess capacity for peak demands is desirable
E) low raw material inventories cause machines to be idled
The cook in a fast-food restaurant knows that 2 hamburger patties and an order of fries
should be started for each car that is waiting in line. This is best an example of
A) Lead time
B) Kanban
C) Push production
D) Kaizen
E) EOQ
The emergency room at a hospital estimates the following requirements for registered
nurses (RNs) for the late night shift each week. Nurses work four consecutive days,
then have off three days.
Perform cyclical scheduling on the data. (Note that you must identify three-day patterns
of minimum requirements). How many RNs are required? How much extra capacity is
required?
Control charts for variables are based on data that come from
A) acceptance sampling
B) individual items
C) averages of small samples
D) averages of large samples
E) the entire lot
The type of layout which features departments or other functional groupings in which
similar activities are performed is
A) process-oriented
B) product-oriented
C) fixed-position
D) mass production
E) unit production
Which of the following best describes the strategic importance of short-term
scheduling?
A) Effective scheduling, through lower costs, faster delivery, and dependable delivery,
can provide a competitive advantage.
B) Effective scheduling is a tactical tool for increasing demand to meet production.
C) Forward scheduling looks to future demand levels in order to increase customer
satisfaction.
D) Aggregate planning is a tactical action, but short-term scheduling is strategic
because of its immense impact on costs.
E) Short-term scheduling matches capacity to demand during the short term, three to
eighteen months into the future.
A job with a 90% learning curve required 20 hours for the initial unit. The fourth unit
should require approximately how many hours?
A) 16.0
B) 16.2
C) 18.0
D) 20.0
E) 54.2
Total quality management emphasizes
A) the responsibility of the quality control staff to identify and solve all quality-related
problems
B) a commitment to quality that goes beyond internal company issues to suppliers and
customers
C) a system where strong managers are the only decision makers
D) a process where mostly statisticians get involved
E) ISO 14000 certification
Three broad categories of definitions of quality are
A) product quality, service quality, and organizational quality
B) user-based, manufacturing-based, and product-based
C) internal, external, and prevention
D) low-cost, response, and differentiation
E) Pareto, Shewhart, and Deming
Which of the following represent reasons for globalizing operations?
A) to gain improvements in the supply chain
B) to improve operations
C) to expand a product's life cycle
D) to attract and retain global talent
E) all of the above
A linear programming problem has two constraints 2X + 4Y = 100 and 1X + 8Y =<100,
plus non-negativity constraints on X and Y. Which of the following statements about its
feasible region is true?
A) The points (100, 0) and (0, 25) both lie outside the feasible region.
B) The two corner points are (33-1/3, 8-1/3) and (50, 0).
C) The graphical origin (0, 0) is not in the feasible region.
D) The feasible region is a straight line segment, not an area.
E) All of the above are true.
Net present value
A) is gross domestic product less depreciation
B) is sales volume less sales and excise taxes
C) is profit after taxes
D) ignores the time value of money
E) is the discounted value of a series of future cash receipts
Outsourcing manufacturing is also known as
A) license manufacturing
B) sublease manufacturing
C) concurrent manufacturing
D) hollow manufacturing
E) contract manufacturing
A square node on a decision tree infers that
A) the node splits into various states of nature, of which only one will occur
B) there are several alternatives available
C) the manager must choose an alternative
D) both B and C
E) A, B, and C
Consider the transportation data set for a minimization problem below.
a. Calculate the initial solution using the northwest-corner rule.
b. Calculate improvement indices, iterate, and solve for the optimal shipping pattern.
Which of these organizations is likely to have the most important inventory decisions?
A) a marketing research firm
B) a lobbying agency
C) a management consulting firm
D) an aluminum manufacturer
E) a law firm
A project being analyzed by PERT has 38 activities, 16 of which are on the critical path.
If the estimated time along the critical path is 90 days with a project variance of 25, the
probability that the project will be completed in 88 days or less is
A) 0.0228
B) 0.3446
C) 0.6554
D) 0.9772
E) 18
It is said that job expansion has both a vertical component and a horizontal component.
Explain, with reference to such terms as job enrichment, job rotation, job enlargement,
and employee empowerment.
__________ combines total quality management with a strategic view of maintenance
from process equipment design to preventive maintenance.
A certain product has been effectively managed in the past, according to its managers.
The previous technique used the economic production quantity model, and resulted in
an optimum lot size of 100. For this product, setup time is directly proportional to setup
cost, and setup time is currently 40 minutes per batch. How much must setup time
decline in order for the lot size to fall to 50 units? 25 units? 10 units?
Clancy's Motors has the following demand to meet for custom manufactured fuel
injector parts. The holding cost for that item is $.75 per month and each setup costs
$150. Calculate the order quantity by use of the part-period algorithm. Lead time is 2
months.
Identify those factors identified in the textbook as creating legal or ethical issues for
operations mangers as they analyze location decisions.
The __________ is a mathematical expression in linear programming that maximizes or
minimizes some quantity.
The Shamrock Transportation Company has four terminals: A, B, C, and D. At the start
of a particular day, there are 8, 8, 6, and 3 tractors available at those terminals,
respectively. During the previous night, trailers were loaded at plants R, S, T, and U.
The number of trailers at each plant is 2, 12, 5, and 6, respectively. The company
dispatcher has determined the distances between each terminal and each plant, as
follows. How many tractors should be dispatched from each terminal to each plant in
order to minimize the total number of miles traveled?
Given the following chart of jobs assigned with Johnson's rule suppose that all the jobs
(A, B, C, etc) could be evenly divided into two tasks (such as A1 and A2, B1 and B2,
etc). Suppose job D is split into two equivalently sized sections, D1 and D2, each with a
body work time of 1.5 hours and a paint time of 2 hours (D1 and D2 sum to 3 hours of
body work and 4 hours of paint which is equivalent to D). How much is makespan
reduced by this splitting of D?
