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1) The PDSA cycle forms the conceptual basis for continuous improvement.
2) To save money, it is essential that designers revise the production capabilities to meet
the requirements of the new products.
3) The use of small lot sizes in lean operations is in conflict with the EOQ approach
since setup costs tend to be significantly higher than holding costs.
4) Run tests are useful in helping to identify nonrandom variations in a process.
5) The goal of lean operations is to produce output using fewer resources than
traditional planning systems.
6) The feasible solution space is the set of all feasible combinations of decision
variables as defined by only binding constraints.
7) An R value of zero (on a range chart) means that the process must be in control since
all sample values are equal.
8) A quality analyst wants to construct a control chart for determining whether three
machines, all producing the same product, are under control with regard to a particular
quality variable. Accordingly, he sampled four units of output from each machine, with
the following results:
For upper and lower control limits of 23.29 and 16.71, which machine(s), if any,
appear(s) to have an out-of-control process mean?
A.machine #1
B.machine #2
C.machine #3
D.all of the machines
E.none of the machines
9) A company needs to locate three departments (X, Y, and Z) in the three areas (I, II,
and III) of a new facility. They want to minimize interdepartmental transportation costs,
which are expected to be $.50 per load per meter moved. An analyst has prepared the
following distances and flow matrices:
What is the distance (in meters) from area III to area I in this new facility?
A.0
B.10
C.20
D.30
E.40
10) What is the optimum job sequence for the jobs listed below using Johnson's rule?
A.e-g-f-d
B.d-g-f-e
C.d-f-g-e
D.e-d-f-g
E.f-e-d-g
11) _________ has/have helped firms to concentrate on their core business.
A.Supply chains
B.Scheduling
C.Outsourcing
D.ERP
E.Lean production
12) Consider the following work breakdown structure:
What is the estimated slack time for activity D?
A.0 days
B.19 days
C.20 days
D.79 days
E.80 days
13) A manufacturing firm is considering two locations for a plant to produce a new
product. The two locations have fixed and variable costs as follows:
What would the total annual costs be for the Phoenix location with an annual output of
10,000 units?
A.$280,000
B.$140,000
C.$220,000
D.$300,000
E.$156,000
14) Which of the following is not true about remanufacturing?
A.Remanufactured products can be sold at lower cost.
B.The process requires mostly unskilled and semiskilled workers.
C.There is less depletion of natural resources.
D.It produces high-quality products easily.
E.Remanufacturing is mainly carried out by small and mid-sized companies.
15) The fact that a few improvements in a few key areas of operations will have more
impact than many improvements in many other areas is consistent with the:
A.Irwin phenomenon.
B.Pareto phenomenon.
C.Stevenson phenomenon.
D.Tellier phenomenon.
E.Adam Smith phenomenon.
16) The degree of management involvement in short-range forecasts is:
A.none.
B.low.
C.moderate.
D.high.
E.total.
17) Which of the following choices constitutes a simultaneous solution to these
equations?
A.x = 1, y = 1.5
B.x = .5, y = 2
C.x = 0, y = 3
D.x = 2, y = 0
E.x = 0, y = 0
18) A quality analyst wants to construct a control chart for determining whether three
machines, all producing the same product, are under control with regard to a particular
quality variable. Accordingly, he sampled four units of output from each machine, with
the following results:
What is the estimate of the sample average range based upon this limited sample?
A.13.0
B.4.33
C.5.4
D.4.2
E.2.0
19) A PERT/CPM activity has an optimistic time estimate of three days, a most likely
time estimate of eight days, and a pessimistic time estimate of 10 days. The expected
time (in days) of this activity is:
A.7.0
B.7.5
C.8.0
D.8.5
E.10.0
20) Four samples of three observations each have been taken, with actual measurements
(in centimeters) shown below. Construct three-sigma mean and range charts.
21) There are three jobs to be done and three resources with which to do them. Each
resource will take a specific time to do each job, as shown in the following table:
What is the result of the row reduction?
22) Given the following data for jobs awaiting processing at a manufacturing cell in
which jobs are first processed by machine A, then by machine B:
What is the sequence which will minimize throughput time?
23) Consider the following work breakdown structure:
In crashing this project, which activity should be the first to be reduced?
24) Use linear regression to develop a predictive model for demand for burial vaults
based on sales of caskets.
25) Consider the following information:
What are total costs for the six periods?
26) Given the following line balance data:
For eight hours of operating time per day and a desired output rate of 960 units per day,
what is the minimum number of stations needed to achieve the appropriate cycle time?
27) A manager must assign four engineers to projects, one to a project. The leader of
project C has indicated that he does not want engineer 2 or 3 on his project. Given the
following cost figures for each project-engineer combination, and keeping in mind that
two combinations are undesirable, determine assignments such that total cost will be
minimized.
28) Consider the following work breakdown structure:
What are the estimated standard deviations (in weeks) in the times for activities A-H?
29) A company produces two products (A and B) using three resources (I, II, and III).
Each product A requires 1 unit of resource I and 3 units of resource II and has a profit of
$1. Each product B requires 2 units of resource I, 3 units of resource II, and 4 units of
resource III and has a profit of $3. Resource I is constrained to 40 units maximum per
day; resource II, 90 units; and resource III, 60 units.
What is the constraint for resource II?
