Company unions in Japan exist to foster a cooperative relationship with management.
Answer:
mySAP.com is an internet interface that allows users to have the full functionality of
the SAP software without requiring the deployment of any special software.
Answer:
One of the outputs of an MRP system is a bill of materials (BOM) file.
Answer:
When evaluating capacity, managers need to consider both resource inputs and product
outputs.
Answer:
The simple moving average model permits non-linear forecast values.
Answer:
On an assembly line a process batch can be infinite.
Answer:
A continuous process flow indicates production of discrete parts moving from
workstation to workstation at a controlled rate.
Answer:
The aggregate operations plan translates annual and quarterly business plans into broad
labor and output plans for the intermediate term of 3 to 18 months.
Answer:
One of the many JIT techniques that have been successfully applied in service firms is
the upgrading of housekeeping.
Answer:
A third-party logistics company is a firm that manages all or part of another company’s
product delivery operations.
Answer:
Core goods are those tangible products that include a significant service component.
Answer:
A major problem in a plant location decision based on the factor-rating system is that
simple point-rating schemes do not account for the wide variance of costs that may
occur within each factor used in the analysis.
Answer:
“Quality at the source” requires factory workers to become their own inspectors.
Answer:
A quality guru named Joseph M. Juran defined quality as fitness for use.
Answer:
The aggregate operations planning variable “workforce Level” refers to the number of
workers needed to accomplish the planned production.
Answer:
Risk in is inherent in any investment.
Answer:
The least unit cost method (LUC) lot-sizing technique calculates the order quantity by
comparing the carrying cost and the setup (or ordering) costs for various lot sizes and
then selects the lot in which these are most nearly equal.
Answer:
When forecast errors occur in a normally distributed pattern, the ratio of the mean
absolute deviation to the standard deviation is 2 to 1 or 2 x MAD = 1 standard
deviation.
Answer:
A system that “backward schedules” is designed to determine and report the earliest
date an order can be completed.
Answer:
Which of the following is typically listed as a benefit coming from adopting new
operations management technologies?
A.Reduced labor costs
B.Increased material costs
C.Higher inventory stocks
D.Reduction in quality
E.Increased investment
Answer:
Which of the following computational methods are used to calculate learning curve
statistics?
A.Simple compounding
B.Exponential smoothing
C.Logarithms
D.Calculus
E.Negative recursive multiplication
Answer:
Which of the following is a time-to-market performance measure used in judging
product development performance?
A.Frequency of new product introductions
B.Product reliability
C.Customer loyalty
D.Yield
E.Value analysis
Answer:
It is expected that an operations consultant would be familiar with which of the
following statistical process control tools?
A.Linear programming
B.Information technologies
C.Run charts
D.Core competencies
E.Waiting line theory
Answer:
If a total capital investment of $500,000 is required for a robot and accessories, the
annual labor costs replaced by the robot is $30,000, the annual maintenance cost for the
robot is $2,000, the fractional speedup is 90 percent and the annual depreciation is
$10,000, which of the following is the payback period based on the formula in
Supplement B for evaluating a robotic investment?
A.About 10.8 years
B.About 6.9 years
C.About 5.9 years
D.About 2.6 years
E.About 0.2 years
Answer:
The SAP financial accounting modules do not include which of the following?
A.Accounts payable
B.General ledger
C.Capital investments
D.Accounts receivable
E.Payroll
Answer:
One of the objectives in facility location analysis is to select a site with the lowest total
cost. Which of the following costs are hidden costs that should be included in the
analysis?
A.Infrastructure costs
B.Movement of preproduction material between locations
C.Taxes
D.Construction costs
E.Bribery costs
Answer:
If all you knew about a production system was that total daily output was 400 units and
the total labor necessary to produce the 400 units was 350 hours and the total materials
used were 425 units, what kind of productivity measure could you use to compute
productivity?
A.Partial measure
B.Multifactor measure
C.Total measure
D.A and B above
E.B and C above
Answer:
If the normal time for a job is 15 minutes and the allowances for the job include 10
percent for personal needs, 5 percent for unavoidable work delays and 3 percent for
work fatigue, which one of the following comes closest to the standard time for this
job?
A.10 minutes
B.15 minutes
C.18 minutes
D.24 minutes
E.35 minutes
Answer:
According to the theory of constraints which of the following is a financial
measurement that can be used to measure the firm’s ability to make money?
A.Operating expenses
B.Cash flow
C.Inventory
D.Sales
E.Dividends
Answer:
An important issue in facility location analysis is business climate. An unfavorable
business climate could be indicated by which of the following?
A.Similar-sized businesses nearby
B.The willingness of local politicians to provide favorable treatment for a consideration
C.The presence of other foreign companies in the case of international locations
D.The local presence of companies in the same industry
E.An established educational institution nearby
Answer:
Some of the advantages for labor to increasing specialization of labor in job design
include which of the following?
A.Boredom
B.Job satisfaction and gratification
C.Control over the workplace
D.Enhanced opportunity to progress to a better job
E.Ease in learning the job
Answer:
Determining starting conditions is a major tactical decision in simulation analysis.
Which of the following is a way to cope with this problem?
A.Discard data generated during the early parts of a run
B.Select starting conditions that you know are realistic
C.Select starting conditions randomly
D.Measure the actual values of the system you are trying to simulate
E.Use stochastic heuristics as starting conditions
Answer:
An activity involving periodic exploding of an end item’s bill of materials to calculate
how many of each part that go into the final product is called which of the following?
A.Frozen window
B.Backflushing
C.Level schedule
D.Group Technology
E.Kanban
Answer:
The Pareto principle is best applied to which of the following inventory systems?
A.EOQ
B.Fixed-time period
C.ABC classification
D.Fixed-order quantity
E.Optional replenishment system
Answer:
Imagine comparing a manufacturing operation using regular lot-sizing and the same
operation with a Kanban/lean production approach. What would be your expectations of
the difference between the total cost (i.e., inventory holding costs + setup/ordering
costs) of each?
A.Inventory holding cost will increase non-linearly with inventory
B.Total costs will be lower for the regular lot-size operation
C.Total costs will be lower for the Kanban/lean production operation
D.The order quantity will be larger for the Kanban/lean production approach
E.As long as the total quantity is the same, total costs will be the same
Answer:
Under a contract we will receive $5,000 per year for five years. If we invest this annuity
each year and receive an interest rate of 12 percent, compounded annually, which of the
following is the value of the principal plus interest in five years?
A.$25,000
B.$31,764
C.$34,857
D.$35,401
E.$40,098
Answer:
Which of the following is not a major factor distinguishing service design and
development from manufacturing design and development?
A.The process and product must be developed at the same time
B.Many service organizations can change their service offerings virtually overnight
C.Many parts of the service package are often defined by the training that individuals
receive before they become part of the service organization
D.The service package, rather than a definable good is the output of the development
process
E.Service operations can be protected by patents, manufacturing operations can not
Answer:
Which of the following are suggestions for developing a focus forecasting system?
A.Use a seasonality index
B.Keep rules simple
C.Keep the people using the forecasts separate from those who make the forecasts
D.The faster the growth, the higher the tracking signal
E.Set control limits that will keep the forecasters honest
Answer:
You are developing an “X-bar” chart based on sample means. You know the standard
deviation of the sample means is 4, the desired confidence level is 99.7 percent and the
average of the sample means is 24. Which of the following is your UCL?
A.36
B.24
C.12
D.4
E.None of the above
Answer:
A fishbone 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:
One of the most important aspects of any quality improvement program is clearly
signaling to everyone in the organization that quality is important. How was that
emphasized in the text?
Answer:
Name the five P’s of production
Answer:
What are the major phases of a simulation study?
Answer:
Describe how the success-to-the-successful system archetype works. What should be
done about it?
Answer:
What are the five steps of CPFR (collaborative planning, forecasting and
replenishment?)
Answer:
What is Johnson’s Rule?
Answer:
Using the fixed-order quantity model, what is the total ordering cost of inventory given
an annual demand of 36,000 units, a cost per order of $40 and a holding cost per unit
per year of $45?
Answer:
What is the symbol designating the capability index?
Answer:
Factors to be taken into account in selecting capacity additions for both manufacturing
and services include which four things discussed in this chapter?
Answer:
What is the rate at which money is generated by the system through sales called?
Answer: