Which of the following is NOT a principal issue in service-encounter design?
a. Process and job design
b. Customer-contact behavior and skills
c. Service-provider selection, development, and empowerment
d. Recognition and reward
Answer:
According to the David Christopher, Orthopedic Surgeon, case study, which of the
following statements is TRUE?
a. Total setup and changeover time for both surgeons was 15 percent of total workload
time.
b. The best option to fix the demand-capacity shortage is to eliminate hip and shoulder
replacement surgeries.
c. The surgery mix is analogous to a product mix.
d. The best option to fix the demand-capacity shortage is to hire a third surgeon.
Answer:
The manager of a gas station along an interstate highway has observed that gasoline
sales generally increase each week over the summer months as more families travel by
car on vacations. He also believes that sales are sensitive to fluctuations in the price of
gasoline. He developed the following regression model:
Sales ($) = $59,407 + $509 (Week) + 16,463 (Price/gallon)
The sales forecast for the 11th week of the summer if the price per gallon is estimated to
be $3.00 is:
a. less than or equal to 15,000.
b. more than 15,000 but less than or equal to 15,500.
c. more than 15,500 but less than or equal to 16,000.
d. more than 16,000 but less than or equal to 16,500.
Answer:
Aggregate planning:
a. is not driven by forecasts.
b. includes detailed staff schedules.
c. defines budget and associated resource requirements.
d. is used to develop detailed short-term plans and establish shop floor control.
Answer:
Which of the following CANNOT be found by queuing formulas?
a. The average number of units waiting for service
b. The average time a unit spends in the system
c. The probability that the service system is idle
d. The maximum time a unit is in the system
Answer:
An assembly line with 28 activities is to be balanced. The total amount of time required
for all 28 activities is 39 minutes. The longest activity is 2.2 minutes and the shortest is
0.8 minutes. The line will operate for 450 minutes per day. What is the assembly-line
efficiency with 11 stations and a product produced every 5 minutes?
a. Less than 65%
b. More than 65% but less than 75%
c. More than 75% but less than 85%
d. More than 85% but less than 95%
Answer:
A _____ traces the detailed logic or actions that occur in a system in a step-by-step
fashion over time.
a. current-event time model
b. variable-time-increment model
c. system simulation model
d. static regression model
Answer:
What type of process would a paper mill most likely use?
a. Project
b. Job shop
c. Flow shop process
d. Continuous flow process
Answer:
Which of the following is NOT a value chain process?
a. Core processes
b. Support processes
c. General management processes
d. Open-ended processes
Answer:
Timken Company illustrates the application of lean principles when it _____.
a. reduces the total cycle time for new product development
b. increases safety stock in its inventory system
c. expands factories and distribution centers
d. maximizes the number of parts or items in its systems
Answer:
A company is developing a new rocket for NASA and is concerned about the reliability
of the fuel pump system. The fuel pump system has four fuel pumps (none are
redundant), each with a failure probability of 0.001 over a two-hour period. Based on
this data, answer the questions below.
Answer:
Customer contact, for the purpose of classifying a system as being high-contact or
low-contact, is measured by:
a. the percentage of a service provider’s workday spent with customers.
b. the percentage of time a customer must be in the system relative to the total time it
takes to provide a service.
c. the number of service encounters occurring in a given span of time.
d. the number of different service providers required to serve one customer.
Answer:
A firm produces one product on a produce-to-stock basis and is trying to develop a
master production schedule for production. The safety stock level for this product is 30
units, and the fixed lot size is 50 units. The beginning inventory is given as 50 units.
The demand for this product comes from four different sources, and the demand
estimates for the next four weeks are given as:
Answer:
Which of the following is NOT true of time/cost trade-offs?
a. The relationship between time and cost is proportional and assumed to be linear.
b. Some activities cannot be crashed.
c. Crash time is less than normal time.
d. Crashing priority is based on the amount of uncertainty in activity times.
Answer:
Table 1
The mean squared error (MSE) is:
a. less than or equal to 300.
b. more than 300 but less than or equal to 350.
c. more than 350 but less than or equal to 400.
d. more than 400 but less than or equal to 450.
Answer:
Which of the following is LEAST related to value stream mapping?
a. Non-value-added activity
b. Time
c. Cost
d. Reengineering
Answer:
Of the four models of organizational performance, which two focus on the “big picture”
of organizational performance rather than on the operational-level framework?
a. Baldrige Performance Excellence framework and the value chain model
b. Balanced scorecard and the Service-Profit Chain
c. Baldrige Performance Excellence framework and the balanced scorecard
d. The value chain model and the Service-Profit Chain
Answer:
Which one of the following is a best practice of just-in-time systems?
a. Use of disposable containers
b. Increased setup/changeover times to maximize productivity
c. Minimal distance traveled for materials and parts handling systems
d. Highly specialized jobs with little or no cross-training
Answer:
Table 2
The mean absolute deviation (MAD) for forecast 1 is:
a. less than or equal to 2.0.
b. more than 2.0 but less than or equal to 2.5.
c. more than 2.5 but less than or equal to 3.0.
d. more than 3.0 but less than or equal to 3.5.
Answer:
With regard to a simulation model for inventory management, all of the following are
correct EXCEPT:
a. it results in an optimal solution with a large simulation.
b. many days of simulation run are needed to obtain meaningful results.
c. lead time can vary.
d. it assumes that a specific reorder point and order quantity have been selected.
Answer:
If the individual reliabilities are denoted by p1, p2, . . ., pn, which of the following best
represents the system reliability Rp of an n-component parallel system?
a. Rp = 1 – (1 + p1) (1 + p2) (1 + p3) . . . (1 + pn)
b. Rp = 1 – (1 – p1) (1 – p2) (1 – p3) . . . (1 – pn)
c. Rp = (p1) (p2) (p3) . . . (pn)
d. Rp = (p1) + (p2) + (p3) + . . . (pn)
Answer:
Testing whether a computer boots up the first time is an example of _____.
a. supplier certification and management
b. in-process control
c. finished-goods control
d. a continuous metric
Answer:
What is the average time a loaf of sliced bread stays in an urban sandwich shop if the
restaurant uses 46 loaves per day, and they maintain an average inventory of 150
loaves?
a. Less than one day
b. More than one day but less than or equal to two days
c. More than two days but less than or equal to three days
d. More than three days
Answer:
Assume the specifications for a part (in inches) are 5.00 ± 37, and the Taguchi loss
function is estimated to be L(x) = 9,300 (x – T)2. Determine the estimated loss if the
quality characteristic under study takes on a value of 5.50 inches.
a. $4,650.00
b. $3,441.00
c. $9,300.00
d. $2,325.00
Answer:
Keith, an operations manager at a chemical company is attempting to set a safety stock
level for a key ingredient that is used in their most powerful insecticide product. He
believes that demand during lead time for this ingredient is normally distributed based
on past data. In addition, he believes that future use is accurately depicted by these
historical demands during lead-time data (in gallons): 55, 75, 75, 70, 80, 60, 50, 70, 60,
and 85. He estimates the standard deviation of demand during the lead time to be 8.5
gallons.
a. What is the average demand during the lead time for this key ingredient?
b. What is the safety stock needed to provide a 95 percent service level?
c. What is the reorder point the company should use?
Answer:
If a company has a demand of 1,600 units for the month of May and a beginning of 900
units, and if Xm = production in May and Lm = the number of lost sales in May, which
of the following equations represents the material-balance constraint?
a. Xm Im + 900 + Lm = 1,600
b. Xm + Im 900 + Lm = 1,600
c. Xm Im + 900 Lm = 1,600
d. Xm Im + 900 Lm = 1,600
Answer:
Which one of the following statements is TRUE?
a. The longer the moving average period (k), the better the forecasts for these case data.
b. A simple exponential smoothing alpha value equal to 0.01 provided the best forecast
for these case data.
c. Service management skills are required for good customer service representative
(CSR) performance.
d. The customers of the BankUSA Help Desk were residential, external customers.
Answer:
For _____, managers must take into account the risk associated with making the wrong
decision.
a. recurrent payoffs
b. expected payoffs
c. one-time decisions
d. repeated decisions
Answer:
For a certain situation, if the dpmo is given to be 2,812.5, then what is the sigma level
for this situation? (Access to Excel is required to answer this question).
a. Less than 2 sigma
b. More than or equal to 2 but less than 3 sigma
c. More than or equal to 3 but less than 4 sigma
d. More than 4 sigma or equal to 5 sigma
Answer:
Which of the following factors would generally NOT be part of a linear programming
model for production scheduling?
a. Fluctuations in production
b. Inventory levels
c. Waiting time probability distributions
d. Storage capacity
Answer:
Identify a FALSE statement about goods and services.
a. Service encounters can be between a customer and a service provider.
b. The demand for services is time-dependent, especially over the short term.
c. There is no way to recapture the lost revenue from a hotel room.
d. A moment of truth is a feature a customer recognizes, pays for, or uses.
Answer:
An electrical contracting company has been awarded a government contract to install
lighting fixtures on a major highway. They want to use a horizontal bar chart to plan the
schedule for the contract with work scheduled to begin on January 1. It is assumed that
there are four weeks per month. The company has established the following project
activities, their precedence relationships, and their estimated normal times:
Answer:
The forecasting technique that works best for short planning horizons is _____.
a. regression
b. moving average
c. mean absolute percentage error (MAPE)
d. Delphi
Answer:
Jacob manages a candy store in a high traffic shopping mall. He has collected the
following information:
Weekly demand for small candy boxes = 100 boxes
Cost to place one purchase order with the box supplier = $15.80
Cost to hold one box for one year in inventory = $3.45
Lead time = 3 weeks
Weeks in a year = 52 weeks
Answer the next four questions based on the given data.
a. What is the economic order quantity (EOQ)?
b. What is the average inventory level (i.e., cycle inventory)?
c. What is the total annual order and inventory-holding cost?
d. If a fixed-period system (FPS) is adopted, what is the replenishment level (M)
without safety stock?
Answer:
The facility layout in a library would most likely be a process layout.
Answer:
Answer:
After developing a predetermined standard, stopwatch or work-sampling time studies
need not be performed.
Answer:
E-service refers to using the Internet and technology to provide services that create and
deliver time, place, information, entertainment, and exchange value to customers and/or
support the sale of goods.
Answer:
Define statistical process control (SPC), and differentiate between common cause and
special (or assignable) cause variation.
Answer:
A manufacturer of business copier workstations has a 75 percent customer retention
rate. Their accounting department estimates the incremental contribution to profit and
overhead as 40 percent. Customers purchase the workstations every three years at an
average cost of $1,500. The average value of a loyal customer is _____.
a. more than $200 and less than or equal to $300
b. more than $300 and less than or equal to $400
c. more than $400 and less than or equal to $500
d. more than $500
Answer:
Answer:
A long-range forecast typically covers a planning horizon of 3 to 12 months.
Answer:
Explain the concept of Single Minute Exchange of Dies (SMED).
Answer:
Explain the role of project managers and some principles for success.
Answer:
Corporate sponsors who support Six Sigma activities are typically called “black belts.”
Answer:
Explain assembly-line balancing. Discuss the three types of information needed to
balance an assembly line.
Answer:
Explain the steps necessary to solve a linear programming problem using Microsoft
Excel’s Solver.
Answer:
An intermediary specializes in handling all aspects of customers returning a
manufactured good or invoking service guarantees.
Answer:
In designing process layouts, arrangement of departments or work centers relative to
each other is a primary concern.
Answer:
Average rate of output per unit of time is a formal definition of capacity.
Answer:
A custom good or service is produced in anticipation of demand.
Answer:
Discuss the difference between a continuous metric and a discrete metric, give
examples of each, and list the common control charts associated with each.
Answer:
Balking means a customer will join the waiting line if it is too long.
Answer:
Ensuring that a credit card has accurate customer information and is delivered quickly
to the customer is an example of inventory management in operations management
(OM).
Answer: