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The inventory turnover is calculated using the annual cost of goods sold and the
aggregate inventory value on average.
Design of Experiments (DOE) includes Taguchi methods.
In quality control there are two major types of inspection: measurement of a scaled
variable and existence of a characteristic.
Three phenomena that tend to bias the expected completion time of projects are inflated
time estimates, activity time variability with path interdependencies, and resource
dependence.
As an alternative to research, industries where bringing a product to market is
extremely expensive (for example, high technology or pharmaceuticals) tend to adapt
the imitation strategy.
Logistics includes the responsibility for acquiring the goods and services the
organization needs, by any means.
The term supply chain generally refers to all the activities involved in supplying an end
user with a product or service.
Vision statements express the organization's purpose or reason for existence.
The goal of single minute exchange of die is to reduce setup times to less than 10
minutes.
Strategy maps can help define a balanced scorecard.
Uncertain waiting is longer than known, finite waiting.
The cost-volume-distance (CVD) model is suitable for layouts in which moving
materials or people between departments is a major consideration.
The objective of feeding buffers is to ensure that non-critical chains are completed so
that they do not delay tasks on the critical chain.
Continuous processes are characterized by low to moderate output variety and one to
few in batch size.
Generally speaking, products are characterized by immediate consumption.
A patient diagnosis is an example of what type of activity?
a) Value-added
b) Non-value-added but necessary
c) Non-value-added and not necessary
d) Necessary and value-neutral
Assume that Company F produces a variety of smart phones sequentially on three
machines. The times required on each machine for one typical racket are as follows:
M1: 3 minutes M2: 8 minutes, M3: 2 minutes, M4: 5 minutes. The throughput time for
a smart phone is :
a) 2 minutes
b) 4.5 minutes
c) 9 minutes
d) 18 minutes
Which of the following is NOT an advantage of rapid response?
a) First-mover advantage
b) Elimination of overhead
c) Improved morale and communication
d) Sharper focus on the customer
Yield or revenue management would NOT be so appropriate if which of the following
circumstances is present?
a) Uncertain demand
b) Perishable capacity
c) The market is homogeneous
d) Capacity is sold in advance
Process capability analysis does NOT depend on:
a) Location of the process mean
b) Natural variability inherent in the process.
c) Business product design
d) Stability of the process
Which of the following is among the six major elements of a production system?
a) Inputs
b) Output
c) Monitoring and legislative compliance
d) Only A and B
What is the least expensive transportation mode?
a) Air
b) Trucking
c) Railroads
d) Water
The lean tool to reduce setup times is SMED; this acronym stands for
a) Sample minute exchange of dry
b) Single minute exchange of die
c) Simple minute exchange of die
d) Simple minute exchange of dry
The relationship between the natural variation in the production system and the
product's design specifications can be quantified using:
a) Six sigma
b) Control charts
c) A process capability index
d) Fishbone diagrams
Duration of critical path '“ path duration = __________?
a) Latest finish time
b) Critical time
c) Path slack
d) Latest start time
Which of the following is FALSE about Optimized Production Technology (OPT)?
a) Bottleneck workstations in the shop must be identified
b) Bottleneck workstations must be scheduled for full utilization
c) Capacities are to be balanced throughout the shop
d) Non-bottleneck workstations must be scheduled to keep bottlenecks busy so they
never wait for work
The following are characteristics of Lean when contrasted with traditional systems,
EXCEPT:
a) Priorities are a limited market and few options
b) Capacity is flexible and moderately utilized
c) Suppliers are many, competitive, deliver to central receiving area and have
independent forecasts
d) Quality is at the source, continuous and with statistical process controls
Revenue or Yield Management may also be thought of as:
a) The process of trying to manage the entire production based on the expected revenue
b) The attempt to allocate the fixed capacity of the service to match the highest revenue
demand in the marketplace
c) The notion that revenue can be generated though managing only a certain set of
operations
d) Trying to get a fixed source of revenue for the organization
The __________ plan is a preliminary, approximate schedule of an organization's
overall operations that will satisfy the demand forecast at minimum cost.
a) Production
b) Rough-cut capacity
c) Aggregate
d) Efficiency
A gap in the service process that is considered the misperception by the service provider
of what the customer truly needs.
a) Gap 1
b) Gap 3
c) Gap 4
d) Gap 10
A value stream map:
a) Can only be used in manufacturing facilities
b) May also be used for service providers
c) Shows the flow of materials and information with suppliers shown on the left of the
diagram and customers on the right
d) Both B and C
Which of the following is FALSE regarding statistical sampling for control purposes?
a) The more samples are taken, the higher the likelihood of accidentally selecting a
sample with excessive values when the process actually is still under control
b) Deciding what indicators are high or low enough to be considered out of control is
the simplest of the problems facing operation managers
c) Measuring upper and lower control limits are the basis for management by exception
d) Using high thresholds for control increases the risk of not detecting processes that
are getting out of control
Customization occurs when
a) Products or services are world-class, suitable for most markets
b) Products or services are offered on a made-to-order basis
c) Products or services are developed with several options
d) None of the above
Which of the following is NOT a part of a House of Quality display?
a) Importance ratings
b) Target values
c) Importance weights
d) Interrelationships between Hows and Whens
Which of the following is NOT a problem commonly found when monitoring?
a) Organizations collect data that are easily gathered
b) Gathered data are not the most important to reach the organization's goals
c) There is an undue emphasis on measuring objective output performance
d) Inputs measurements are used as a proxy for output completion
Which of the following is FALSE about Quality Function Deployment (QFD)?
a) It is a powerful tool to translate customer requirements into process capabilities
b) It utilizes a series of tables to maintain links between the data collected and the final
process activities
c) Because of their shape, the tables are often referred to as 'houses of quality'
d) Technical requirements are the basic input for the process deployment matrix
