1) Work sampling can be used to estimate the proportion of time a machine is idle.
2) Predetermined time standards are usually based on observing one very efficient
worker performing the task.
3) Some organizations use a matrix organization to integrate the activities of specialists
within a functional framework.
4) A company’s supply chain involves the flow of materials and information from
suppliers, through production, to the end users.
5) The master schedule needs to be for a period long enough to cover the stacked or
cumulative lead time necessary to produce the end items.
6) An example of inventory holding cost is the cost of moving goods to temporary
storage after receipt from a supplier.
7) The term pegging refers to identifying the parent items that have generated a given
set of material requirements for a part or subassembly.
8) A performance rating of less than 1.0 means that the observed worker was judged to
be working at a faster than normal ratedoing the job more quickly than normal.
9) A disadvantage of standardization is the possibility of standardizing designs too
early, which may make them difficult to modify in the future.
10) An x-bar control chart can only be valid if the underlying population it measures is
a normal distribution.
11) Standardization has the advantage of reducing variability.
12) Redundancy is often more cost-effective than increasing individual component
reliability.
13) Many activities have slack time; if we add these slack times together, this represents
the potential improvement in early completion for the project.
14) The earliest finish time for an activity is equal to the latest finish time minus the
activity time.
15) Ergonomics is an important part of job design to consider when we automate the
system.
16) An electronics firm produces two models of pocket calculators: the A-100 (A),
which is an inexpensive four-function calculator, and the B-200 (B), which also features
square root and percent functions. Each model uses one (the same) circuit board, of
which there are only 2,500 available for this week’s production. Also, the company has
allocated a maximum of 800 hours of assembly time this week for producing these
calculators, of which the A-100 requires 15 minutes (.25 hours) each, and the B-200
requires 30 minutes (.5 hours) each to produce. The firm forecasts that it could sell a
maximum of 4,000 A-100s this week and a maximum of 1,000 B-200s. Profits for the
A-100 are $1.00 each, and profits for the B-200 are $4.00 each. Which of the following
is not a feasible production/sales combination?
A.0 A and 0 B
B.0 A and 1,000 B
C.1,800 A and 700 B
D.2,500 A and 0 B
E.100 A and 1,600 B
17) Suppose the first unit of output required 900 labor hours, and the second unit
required only 810. At this rate, how many more units must be produced before labor
requirements are less than 700 hours?
A.2
B.4
C.6
D.8
E.10
18) Consider the following work breakdown structure:
What is the estimated slack time for activity E?
A.0 weeks
B.3 weeks
C.9 weeks
D.11 weeks
E.12 weeks
19) Which of the following is not an assumption of priority rules?
A.The set of jobs is known: no new jobs arrive after processing begins.
B.Setup time is independent of processing sequence.
C.Finite loading is assumed.
D.Processing times are deterministic.
E.No machine breakdowns are assumed.
20) ISO 9000 standards do not have a requirement for:
A.resource.
B.remedial.
C.systems.
D.training.
E.management.
21) It has been determined that, with respect to resource X, a one-unit increase in
availability of X would lead to a $3.50 increase in the value of the objective function.
This value would be X’s:
A.range of optimality.
B.shadow price.
C.range of feasibility.
D.slack.
E.surplus.
22) A constraint that does not form a unique boundary of the feasible solution space is
a:
A.redundant constraint.
B.binding constraint.
C.nonbinding constraint.
D.feasible solution constraint.
E.constraint that equals zero.
23) The owner of Darkest Tans Unlimited in a local mall is forecasting this month’s
(October’s) demand for the one new tanning booth based on the following historical
data:
What is this month’s forecast using the naive approach?
A.100
B.160
C.130
D.140
E.120
24) The ratio of actual output to effective capacity is:
A.design capacity.
B.effective capacity.
C.actual capacity.
D.efficiency.
E.utilization.
25) Among the guiding principles of six sigma are:
(I) Reduction of variation is an important goal.
(II) Valid measurement is critical.
(III) Outputs determine inputs.
(IV) We should focus on those critical few influences on our quality.
A.I, II, and IV only
B.II and IV only
C.I and III only
D.I, II, III, and IV
E.III only
26) Scheduling pertains to:
A.hiring workers.
B.process selection.
C.buying machinery.
D.timing the use of specific resources.
E.determining the lowest cost.
27) A systemic view of the organization and its operations processes can help minimize
the risk of __________ leading to a poor decision.
A.bounded rationality
B.suboptimization
C.risk aversion
D.misspecification
E.complexification
28) A methods and measurements analyst needs to develop a time standard for a certain
task. In a preliminary study, he observed one of his workers perform this task five
times, with the following results:
What is the standard time for this task if the employee worked at a 25 percent faster
pace than average and an allowance of 20 percent of the workday is used?
A.80 seconds
B.96 seconds
C.100 seconds
D.120 seconds
E.125 seconds
29) The advantage a precedence diagram has over a Gantt chart is:
A.its ability to reveal relationships among activities.
B.its difficulty in depicting networks.
C.its complexity.
D.its simplicity.
E.its lack of riskiness.
30) There are three jobs to be done and three resources with which to do them. Each
resource will cost a specific amount to do each job, as shown in the following table:
What is the result of modifying the row and column reductions table?
31) A stent for use in coronary surgery requires a special coating. Specifications for this
coating call for it to be at least 0.05 millimeters but no more than 0.15 millimeters.
Suppose the criterion for evaluating this process is that the appropriate capability index
must be at least 1.3. With a long-run process mean of 0.09 and a standard deviation of
0.015, is this process capable?
32) Determine the optimum location for a distribution center to serve the following
locations. Shipments to each location will be approximately equal.
33) Suppose we have a lot of several thousand units of a finished good. If this lot were
20 percent defective, what type error would be possible? For an acceptance sampling
plan with n = 20 and c = 2, what would be the risk of this error?
34) Consider the following information:
What are total carrying costs?
35) The weekly output of a production process is shown below, together with data for
labor and material inputs. The standard inventory value of the output is $125 per unit.
Overhead is charged weekly at the rate of $1,500 plus .5 times direct labor cost. Assume
a 40-hour week and an hourly wage of $16. Material cost is $10 per running foot. What
is the average multifactor productivity for this process?
36) A manager has been using a certain technique to forecast demand for gallons of ice
cream for the past six periods. Actual and predicted amounts are shown below. Would a
naive forecast have produced better results?
37) Determine the minimum number of workstations needed for this situation:
Operating time is 450 minutes per day.
Desired output is 80 units per day.
The sum of task times is 56 minutes.
38) There are three jobs to be done and three resources with which to do them. Each
resource will cost a specific amount to do each job, as shown in the following table:
What is the total cost for the optimum assignment of jobs to machines?