The customer may participate in the design of, and in the delivery of, services.
A value-stream map includes both (1) inventory quantities, and (2) symbols for
customers and suppliers.
Robust design is a method that ensures that small variation in production or assembly
does not adversely affect the product.
The process time of a system is always at least a long as the process cycle time.
Improved quality can increase profitability via flexible pricing.
Starbucks Coffee’s use of geocoded demographic and consumer data in site selection
decisions is an example of the use of a Geographic Information System, or GIS.
One reason for global operations is to gain improvements in the supply chain.
Results of simulation experiments with large numbers of trials or long experimental
runs will generally be better than those with fewer trials or shorter experimental runs.
Suppose that the introduction of a preventive maintenance program is deemed cost
effective. Which of the following is most likely true if the cost to actually perform
preventive maintenance is very expensive?
A) high standard deviation in MTBF
B) low standard deviation in MTBF
C) low Cost to Repair
D) repairs carry little non-monetary consequences
E) the system never fails
Which of the following is a key issue coupled between ethics and outsourcing?
A) moving pollution from one country to another
B) ignoring religious customs and holidays
C) low wages that are the result of labor abuse
D) short-term arrangements instead of long-term deals
E) All of the above are key tenets of ethics in outsourcing
An activity on a PERT network has these time estimates: optimistic = 2, most likely =
3, and pessimistic = 8. Its expected time and variance (if it is a critical activity) are
A) 3.67; 1
B) 3.67; 6
C) 4.33; 1
D) 4.33; 6
E) none of these
Which of the following is an advantage of the postponement technique?
A) reduction in automation
B) early customization of the product
C) better quality of the product
D) reduction in training costs
E) reduction in inventory investment
The feasible region in the diagram below is consistent with which one of the following
constraints?
A) 8X1 + 4X2 =<160
B) 8X1 + 4X2 >= 160
C) 4X1 + 8X2 =<160
D) 8X1 – 4X2 =<160
E) 4X1 – 8X2 =<160
Which of the following is not a limitation of job expansion?
A) higher capital cost
B) higher wage rates
C) smaller labor pool
D) higher training costs
E) All of the above are limitations of job expansion.
A firm cleans chemical tank cars in the Bay St. Louis area. With standard equipment,
the firm typically cleaned 70 chemical tank cars per month. They utilized 10 gallons of
solvent, and two employees worked 20 days per month, 8 hours a day. The company
decided to switch to a larger cleaning machine. Last April, they cleaned 60 tank cars in
only 15 days. They utilized 12 gallons of solvent, and the two employees worked 6
hours a day.
1> What was their raw material and their labor productivity with the standard
equipment?
2> What is their raw material and their labor productivity with the larger machine?
3> What is the change in each productivity measure?
The decline in customer satisfaction for outsourced call centers highlights which aspect
of outsourcing risk?
A) cost
B) quality
C) core competency
D) erratic utility functionality
E) technological
Sample observations of a claims processor made over a 160-hour work month reveal
that the worker produced a total of 384 completed claims forms. The performance
rating was 80%. The worker was idle 20% of the time (so that idle time should be
subtracted from the total time when computing the average observed time). The
allowance factor is 8%. What is the normal time per unit?
A) 0.42 minutes
B) 16.0 minutes
C) 17.4 minutes
D) 20.0 minutes
E) 21.7 minutes
The __________ is (are) the MRP input detailing which end items are to be produced,
when they are needed, and in what quantities.
A) master production schedule
B) load report
C) inventory records
D) assembly time chart
E) bill of material
Producer’s risk is the probability of
A) accepting a good lot
B) rejecting a good lot
C) rejecting a bad lot
D) accepting a bad lot
E) none of the above
A employee produces 15 parts during a shift in which he made $90. The labor content
of the product is
A) $90
B) $5
C) $6
D) $.167
E) none of the above
Which of these is the most common predetermined time standard?
A) CSD
B) TMU
C) RCH
D) SAE
E) MTM
The document for production that gives the instruction to make a given quantity of a
particular item, usually to a given schedule, is
A) the work order
B) the route sheet
C) the bill of information
D) the assembly chart
E) the value analysis
Pierre’s Motorized Pirogues and Mudboats is setting up an acceptance sampling plan for
the special air cleaners he manufactures for his boats. His specifications, and the
resulting plan, are shown on the POM for Windows output below. In relatively plain
English (someone else will translate for Pierre), explain exactly what he will do when
performing the acceptance sampling procedure, and what actions he might take based
on the results.
A(n) __________ is a discrete probability distribution that often describes the arrival
rate in queuing theory.
Use exponential smoothing with trend adjustment to forecast deliveries for period 10.
Let alpha = 0.4, beta = 0.2, and let the initial trend value be 4 and the initial forecast be
200.
How might ergonomics be used to help design an employee workstation?
__________ is the set of activities that transforms inputs into goods and services.