Which of the following is NOT a part of Philip Crosby’s philosophy of quality?
a. Quality means conformance to requirements, not elegance.
b. The only performance standard that matters is profits.
c. There is no such thing as a quality problem.
d. The only performance measurement is the cost of quality, which is the expense of
nonconformance.
Answer:
The Academic Company mixes and bottles a high-energy beverage in various container
types and sizes for college students. The aggregate forecast for the next four quarters (1
year) in thousands of gallons is as follows:
Table 1
Academic’s management makes the following assumptions:
Each employee works 550 standard hours of regular time each quarter.
On average, it takes 27 hours to produce and package 1 unit (1,000 gallons).
Regular-time labor costs $6.00/hour; overtime labor costs $9.00/hour.
Inventory-holding cost is approximately $4.50/unit (1,000 gallons) per quarter based
upon the ending inventory per quarter.
Because of extremely hot weather, there is no beginning inventory available to start
Quarter 1.
Management wants a constant work force (no hiring or firing).
Managers have also decided to always round up the number of employees needed to
the next whole integer, i.e., 37.2 yields 38 employees.
______________________________________________________________________
________
Using the data in Table 1, determine the annual inventory-holding cost if Academic
decides to use a level production rate of 650 units per quarter.
a. $2,925.00
b. $1,012.50
c. $2,025.00
d. $4,500.00
Answer:
Which one of the following statements is FALSE?
a. Postponement is a form of remanufacturing.
b. Reverse logistics combined with forward supply chain is called a closed loop system.
c. Selecting suppliers that support sustainability is a part of supply chain management.
d. Reverse logistics includes remarketing and selling the recovered good for reuse or
resale to wholesalers and retailers.
Answer:
All of the following are the phases of a product’s life cycle EXCEPT:
a. introduction.
b. inception.
c. maturity.
d. decline.
Answer:
Which of the following terms is NOT used to describe sustainability?
a. Green operations
b. Green manufacturing
c. Green practices
d. Green integration
Answer:
Prior to designing and configuring a customer benefit package, a firm should
understand and develop its:
a. detailed goods, services, and process design.
b. process and service encounter design.
c. strategic mission and competitive priorities.
d. marketplace evaluation.
Answer:
Which of the following performance perspectives in the balanced scorecard model
measures the ultimate value that a business provides to its shareholders?
a. Financial perspective
b. Internal perspective
c. Learning perspective
d. External perspective
Answer:
Which of the following statements is CORRECT regarding a simulation model for
inventory management?
a. Only demand varies, while the lead time remains constant.
b. The goal is to minimize waiting time.
c. It looks at a combination of order quantity and reorder point.
d. It does not allow backorders of stockouts.
Answer:
A customer benefit package (CBP) includes _____.
a. only core offerings
b. only peripheral offerings
c. either core or peripheral offerings but not both
d. both core offerings as well as peripheral offerings
Answer:
_____ is the sequence of activities that takes the longest time and defines the total
project completion time.
a. Project Evaluation and Review Technique
b. The critical path
c. The crash time
d. Project nodes network
Answer:
_____ processes are organized around particular types of general-purpose equipment
that are flexible and capable of customizing work for individual customers
a. System
b. Job shop
c. Flow shop
d. Continuous flow
Answer:
It takes fifteen minutes to complete a drilling operation using a lathe. The duration of
this operation is known as _____ time.
a. delay
b. queue
c. processing
d. standard
Answer:
Which of the following is NOT a stage in the project life cycle?
a. Define
b. Organize
c. Improve
d. Close
Answer:
_____ measures the degree to which the output of a process meets customer
requirements.
a. Frequency
b. Depreciation
c. Variability
d. Quality
Answer:
Being an entrepreneur, Steve decides to open his own custom flower shop in an area
and began to look for possible locations for his store. He just can’t play the corporate
career game and wants to “just-do-it-yourself.” He researches the zip codes in his area
and finds the following information:
Market Segment Location Coordinates Potential
Number of Customers
X Y
A 4 8
80,000
B 6 3
90,000
C 10 7
120,000
Identify the TRUE statement about the best preliminary location (i.e., the center of
gravity) for the possible store location.
a. The x-axis and the y-axis are less than 5.0.
b. The x-axis is less than 7.0, and the y-axis is more than 7.0.
c. The x-axis is more than 7.0, and the y-axis is less than 7.0.
d. The x-axis and the y-axis are more than 7.0.
Answer:
All of the following are advantages of using regression analysis to determine standard
time EXCEPT:
a. a smaller cycle time.
b. the assumption of additive task times.
c. statistically significant variables.
d. confidence intervals for the prediction.
Answer:
The process by which a model (real or simulated) is constructed to test a product’s
performance under actual operating conditions is called:
a. quality function deployment.
b. value engineering.
c. detailed product design.
d. prototype testing.
Answer:
For a restaurant, order taking, bill payment, and home delivery would be considered as
_____.
a. services
b. inputs
c. processes
d. outputs
Answer:
Locksmith Inc. has an order from a bank for 50 specially designed safes, one for each
branch. It is estimated that the first safe will require 75 hours of shop time and a 90
percent learning curve is expected. The labor rate is $15.00 per hour and the pricing
policy of the company is to triple the labor cost of the order.
a. How many labor-hours should the 50th unit require?
b. How many labor-hours will the whole order require?
c. What is the customer’s price for each safe?
Answer:
Average safety capacity or a capacity cushion for a factory is computed:
a. over a year.
b. over a month.
c. twice a year.
d. twice a month.
Answer:
According to the Toyota Motor Company, which of the following is NOT one of the
seven major waste categories?
a. Overproduction
b. Transportation
c. Motion
d. Single-piece flow
Answer:
Constant terms in the objective function are called objective function _____.
a. variables
b. decisions
c. coefficients
d. constraints
Answer:
All of the following are disadvantages of simulation EXCEPT difficulty of:
a. performing “what-if” studies.
b. collecting the appropriate input data.
c. selecting the correct probability distribution.
d. producing accurate outputs.
Answer:
A manufacturing company needs to know whether to make in-house or buy a roller gear
assembly for its production of a new fax machine. The company expects to produce
9,000 units per year. The following estimates have been made:
The volume they are indifferent regarding the decision to make or buy is _____ units.
a. less than or equal to 2,000
b. more than 2,000 but less than or equal to 4,000
c. more than 4,000 but less than or equal to 6,000
d. more than 6,000 but less than or equal to 8,000
Answer:
Which of the following statements is TRUE?
a. Fixed costs associated with any ordering are relevant.
b. Sunk costs associated with any ordering are irrelevant.
c. Variable costs associated with inventory holding are irrelevant.
d. Variable costs associated with ordering are irrelevant.
Answer:
The outputs from a work measurement study lead to the development of labor and
equipment standards that are used for all of the following EXCEPT:
a. estimating workforce capacity.
b. determining fatigue and personal need allowances.
c. determining the cost of new work procedures.
d. providing accurate information for scheduling and sequencing.
Answer:
A plastic cell phone case has been experiencing physical quality control problems. That
is, the clear screen does not always fit (and snap into place) on the case. The dimensions
of the screen have consistently been in statistical process control (SPC). A root cause
quality initiative collected the following data about the plastic cell phone case. Analyze
the width of the cell phone case using control charts and make a recommendation.
Table 1 Cell Phone Plastic Case Widths in Centimeters Data*
*The sample averages and ranges helps in avoiding simple math errors and quickens the
time to complete the SPC analysis.
Using Table 1, for the X-chart, what is the value of UCLX?
a. Less than or equal to 3.0
b. Greater than 3.0 but less than or equal to 4.0
c. Greater than 4.0 but less than or equal to 5.0
d. Greater than 5.0
Answer:
_____ refers to acquiring capabilities in the value (supply) chain toward distributions or
even customers.
a. Backward integration
b. Outsourcing
c. Offshoring
d. Forward integration
Answer:
In a two-component parallel system, the overall reliability is 9994. If the reliability of
the first component is 0.9890, determine the reliability of the second component.
a. Equal to or greater than 0.60 but less than 0.70
b. Equal to or greater than 0.70 but less than 0.80
c. Equal to or greater than 0.80 but less than 0.90
d. Greater than 0.90
Answer:
Which one of the following statements about the scope and direction of operations
management is FALSE?
a. Service-providing processes are the dominant type of processes in the U.S. economy.
b. Business analytics includes predictive and prescriptive data analytics.
c. Today, sustainability is placing increased pressure on all goods-producing and
service-providing organizations worldwide.
d. Goods-producing industries account for over 80 percent of the jobs in the U.S.
Answer:
Which of the following statements is TRUE of the Community Medical Association
(CMA) case study?
a. The case describes how the 5Ss were used by CMA’s 50 databases.
b. Total savings was over $40 million from implementing an integrated operating
system with a common data base compared to the previous system.
c. Doctors’ total changeover and setup (i.e., system relog) time per patient increased
after the new integrated operating system was implemented.
d. The quality of medical diagnosis and decisions (i.e., clinical quality) improved with
the new system.
Answer:
A manufacturing company is interested in making a product structure tree for one of its
major products. They know that product A is made up of assemblies B, C, and D. Each
B assembly is made up of one raw material F and 2 E parts. Each C assembly is
composed of 2 G parts and one H subassembly. Each H subassembly is made up of 2 F
raw materials, 2 I parts, and 2 J parts.
Answer:
Using a cause-and-effect diagram helps identify the most likely causes of a problem so
that further data collection can be carried out.
Answer:
The lower the rate of defects, the higher the sample size should be in p-charts.
Answer:
Sequencing is not as much of a concern when several activities use a common resource.
Answer:
What are the key functions of a supply chain?
Answer:
Given the partial project network below and the fact thatF can be crashed three times if
xt = start
time of Activity i, and yi = amount of crash time used for Activity i.
a. Which of the following is correct? xFxD + 10 – yD or xFxE +
10 + yE or yD, yE ≤ 0 or xF – xD – xE + 10 3
b. Which of the following is correct? yD ≤ 3 or yE ≤ 3 or yF = yD + yE or yF ≤ 3
Answer:
Define resource management and list its key objectives.
Answer:
The decision of what goods and services to offer and how to position them in the
marketplace is mainly an operational decision.
Answer:
An unsold broadcast advertising space is an example of a perishable asset.
Answer:
Trends are characterized by repeatable periods of ups and downs over short periods of
time.
Answer:
Decision problems can be depicted graphically using the expected-value approach.
Answer:
An analysis of the current mortgage loan process found that the overall system
reliability of a part of the total process consisting of three stages was low. After much
analysis, the process manager decided to add redundancy to this part of the process. So,
clerks A and B checked one another’s work as well as clerks C and D in the new
process. Consider each pair to be parallel. A study found that all clerks performed at an
average reliability of 0.85. What is the reliability of the new process with more
redundancy?
Answer:
Changing labor skill mix is a means to adjust short-term capacity.
Answer:
What are the major decisions organizations must address in designing and configuring
their value chains?
Answer:
Every job entails some aspect of operations management.
Answer:
A job had a normal time of 43 minutes, an allowance of 20 percent, and a forecast
demand of 120 units per day. How long should it take to produce one day’s output?
Answer:
Each good or service in the customer benefit process requires a process to create and
deliver it to customers.
Answer:
An accounting firm is capable of processing 20 EZ tax forms per day and the average
number of forms on hand in the office is 64 forms. What is the average processing time
per EZ tax form?
a. More than 2 but less than or equal to 3 days
b. More than 3 but less than or equal to 4 days
c. More than 4 but less than or equal to 5 days
d. More than 5 days
Answer: