When work is scheduled in detail using the setup and run time required for each order,
then theoretically all schedules will be feasible.
Answer:
Avoidable costs can reduce the cost of a new investment.
Answer:
Finding the optimal product mix where several products have different costs and
resource requirements cannot be solved using linear programming.
Answer:
An operations and supply strategy is a long term commitment that must resist change.
Answer:
A work breakdown structure is used in project management but not in the critical path
method.
Answer:
Strategy describes how a firm intends to create and sustain shareholder value.
Answer:
An example of a positive business climate that might influence a facility location
decision is increasing governmental costs and increasing property taxes.
Answer:
SAP’s Corporate Services segment includes the ability to manage all types of corporate
assets including “human capital”.
Answer:
One of the precursors of operations management was the development of principles of
scientific management which happened during the 1930’s.
Answer:
SWOT stands for Strengths, Weaknesses, Opportunities and Threats.
Answer:
Fixed-order quantity systems assume a random depletion of inventory, with less than an
immediate order when a reorder point is reached.
Answer:
Some of the advantages of a functional project where the project is housed in a
functional division include which of the following?
A.The project manager has full authority over the project
B.Team pride, motivation and commitment are high
C.A team member can work on several projects
D.Needs of the client are secondary
E.None of the above
Answer:
In a factory, machine A has a ten minute set-up time per batch and a two minute per unit
run time. Machine B performs the identical function but has a set-up time of thirty
minutes and a one minute run time per unit. The factory makes products in batches
ranging from one unit to one hundred units. Assuming capacity is not a limitation on
either machine, on which batches should machine B be used?
A.All batches should be run on machine B
B.Batches of more than 20 units should be run on machine B
C.Batches of fewer than 80 units should be run on machine B
D.Batches with up to 50 units should be run on machine B
E.No batches should be run on machine B
Answer:
Which of the following basic types of process structures is one which similar equipment
or functions are grouped together?
A.Project
B.Workcenter
C.Manufacturing cell
D.Assembly line
E.Continuous process
Answer:
Job design decisions are being affected by which of the following trends?
A.Forecasting methods
B.Automatic guided vehicles
C.Automation of heavy manual work
D.Automated storage and retrieval systems
E.Global economic cycles
Answer:
Which following queue discipline is discussed in the textbook?
A.Emergencies first
B.Garner-Whitten formula
C.Newest customer first
D.Patient customers last
E.None of the above
Answer:
The aim of Quality Function Deployment (QFD) is:
A.To facilitate “House of Quality” analysis
B.To provide Value Analysis/Value Engineering input
C.To integrate Design for Manufacturing and Assembly (DFMA)
D.To facilitate better cooperation between business functions
E.To lower costs and improve customer satisfaction
Answer:
Which of the following individuals are credited with helping to transplant Japanese
methods of total quality management to the United States?
A.Harris
B.Baldridge
C.Dodge
D.Deming
E.Wright
Answer:
Which of the following items is a variable cost?
A.Maintenance expense
B.Rent
C.Property taxes
D.Depreciation
E.Activity cost
Answer:
If you have an optimistic time of 4 weeks, a most likely time of 6 weeks and a
pessimistic time of 14 weeks on an activity in a CPM managed project, what is the
expected time for this activity?
A.4 weeks
B.5 weeks
C.6 weeks
D.7 weeks
E.8 weeks
Answer:
One of the objectives of facility location analysis is to select a site with the lowest total
cost. Which of the following costs should not be included in the analysis?
A.Outbound distribution costs
B.Incidental costs
C.Energy costs
D.Hidden costs
E.Costs we can pass along to our customer
Answer:
To implement a flow process in developing a lean system a firm might do which of the
following?
A.Improve capacity utilization
B.Build product in anticipation of demand
C.Reduce setup/changeover time
D.Eliminate some fixed costs
E.Implement groupware
Answer:
Which of the following is not a common application of linear programming in
operations and supply management?
A.Waiting time analysis
B.Product planning
C.Product routing
D.Process control
E.Service productivity analysis
Answer:
A company wants to determine its reorder point (R). Demand is variable and they want
to build a safety stock into R. If the average daily demand is 12, the lead time is 5 days,
the desired “z” value is 1.96 and the standard deviation of usage during lead time is 3,
which of the following is the desired value of R?
A.About 6
B.About 16
C.About 61
D.About 66
E.About 79
Answer:
An opportunity flow diagram as part of a six-sigma quality improvement process might
be found in which DMAIC category?
A.Define
B.Measure
C.Analyze
D.Improve
E.Control
Answer:
If a vendor has correctly used marginal analysis to select their stock Levels for the day
(as in the newsperson problem) and the profit resulting from the last unit being sold
(MP) is $120 and the loss resulting from that unit if it is not sold (ML) is $360, which
of the following is the probability of the last unit being sold?
A.Greater than 0.10
B.Greater than 0.15
C.Greater than 0.25
D.Greater than 0.45
E.None of the above
Answer:
One of the main purposes of a MRP system is which of the following?
A.Track inventory Levels
B.Create productive capacity
C.Decrease layers of management
D.Develop schedules for when each component should be produced
E.Upgrade manufacturing’s professionalism
Answer:
You ask your subordinates how long it will take to complete the job they are working
on. The subordinates say, “If everything goes right it will take 6 hours, most likely it
will take 8 hours and if everything goes wrong it will take until the end of tomorrow or
another 16 hours”. Since this job is a part of a larger project you must estimate the
expected time it will take to complete the job. Using the three activity time estimation
procedure for CPM, what is the expected time for this job?
A.8 hours
B.9 hours
C.10 hours
D.11 hours
E.12 hours
Answer:
You want to determine the upper control line for a “p” chart for quality control
purposes. You take several samples of a size of 100 items in your production process.
From the samples you determine the fraction defective is 0.05 and the standard
deviation is 0.01. If the desired confidence level is 99.7 percent, which of the following
is the resulting UCL value for the line?
A.0.39
B.0.08
C.0.06
D.0.05
E.None of the above
Answer:
In viewing a department store as a transformation process, shoppers are considered a
primary input into the process. A primary transformation function of the same system is
which of the following?
A.Stock pickers
B.Well-prepared food
C.Storage bins
D.Storage and redistribution
E.Promoting products
Answer:
Which of the following is an approach to dealing with a bottleneck?
A.Keep a buffer inventory in front of it to insure that it always has something to work
on
B.Use Johnson’s sequencing rules on bottleneck operations
C.Don’t worry about the bottleneck; it will take care of itself
D.Move things to a faster bottleneck
E.Pay an incentive bonus to workers on the bottleneck operation
Answer:
A company must perform a maintenance project consisting of seven activities. The
activities, their predecessors and their respective time estimates are presented below:
Using the Single Time Estimate CPM procedure, which activities have slack in this
project?
A.A, B, C
B.B, D
C.Only C
D.C, E
E.F, G
Answer:
Which of the following is a dimension of design quality?
A.Aesthetics
B.Price
C.Quality at the source
D.Distribution
E.Leadership
Answer:
Which one of the following concepts is not involved when implementing total quality
control?
A.Workers being given responsibility
B.Enforce compliance
C.Fail-safe methods
D.Automatic inspection
E.Level schedule the factory
Answer:
Which of the following is a reason that there are disparities between a firm’s learning
curve rate and that of its industry?
A.Companies don’t always report sensitive data to outside agencies accurately
B.Learning curves don’t reflect organizational learning
C.Procedural differences in the manner that data were aggregated
D.The starting points for different firms were different
E.The cumulative number of units produced is different
Answer:
Identify the two types of loops in causal loop analysis.
Answer:
You have collected the data for a Time-Cost CPM Scheduling model analysis. The time
is in days and the project “direct costs” are given below.
The indirect costs for the project are determined on a daily duration basis. If the project
lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they
will be $200 and 13 days they will be $100. If you crash this project by one day what is
the total (i.e., direct and indirect) project cost?
Answer:
What are you doing when you compare the metrics of your company to another?
Answer:
What is the name for a bill of materials that includes items with fractional options?
Answer:
In making any decision that affects the size of inventory, what are the four categories of
cost that must be considered?
Answer:
What is a capacity cushion and why would a firm have one?
Answer:
Why might a partial productivity measure be preferred to the more comprehensive total
factor measure of productivity?
Answer:
Six-sigma programs believe that each step in a process is an opportunity to produce
defects. These programs seek to reduce defects by working on processes to reduce what
measure of output?
Answer: