While benchmarking is an inward looking process of quality improvement, continuous
improvement is an outward looking process that extends outside the organization.
Answer:
Firms that make multiple products can produce the same number of each product with a
given level of resource inputs and equal amounts of time.
Answer:
The least unit cost method (LUC) of lot-sizing technique adds ordering, stock-out and
inventory carrying cost for each trial lot size and divides by the number of units in each
lot size, picking the lot size with the lowest unit cost.
Answer:
When computing the cost capital for equity securities the effects of dividends are
ignored because they are not tax deductible to the corporation.
Answer:
When the textbook presented the topic of job design decisions, the “what” of these
decisions concerned the tasks to be performed.
Answer:
An event is a subdivision of a project.
Answer:
Time incrementing is a concept of a simulated clock.
Answer:
Process velocity is the ratio of the total throughput time to the value added time.
Answer:
Dependent demand inventory Levels are usually managed by calculations using
calculus-driven, cost-minimizing models.
Answer:
“Kanban Squares” is an educational game played in Kanban training sessions.
Answer:
Having animation capabilities to graphically display product flows through a
production system is not considered a desirable feature of simulation software systems.
Answer:
Conformance quality is a strategic decision for a firm.
Answer:
Random errors in forecasting occur when an undetected secular trend is not included in
a forecasting model.
Answer:
Depreciation is an annual assessment reflecting management’s judgment about the
gradual wasting away of assets as they become older.
Answer:
Most purchasers of electronic products can not fully operate them and use only a small
number of the available features.
Answer:
A risk-free investment is called ‘sure-fire” because the promised returns are certain.
Answer:
Work measurement can be used to determine how physically hard the work should be to
be performed by labor.
Answer:
A department of 25 machines is kept running by three operators who respond to
randomly occurring equipment problems. An analyst who wanted to know how much
production was being lost by machines waiting for service could use queuing theory
analysis to find out.
Answer:
Which of the following is a reason that project management is important?
A.Organizations do not allow hastily planned projects
B.Organizational hierarchies are becoming more robust
C.The firm’s reputation is not a concern since projects are invisible to the outside world
D.Projects are a way to promote effective leadership
E.It is usually more important to complete a project on time than to complete it
correctly
Answer:
If there are 120 total defects from 10 samples, each sample consisting of 10 individual
items in a production process, which of the following is the fraction defective that can
be used in a “p” chart for quality control purposes?
A.120
B.10
C.8
D.1.2
E.0.8
Answer:
Assume that annual demand for a part is 40,000 units, the ordering cost is $5 per order
and the annual holding cost of carrying inventory in stock is 10% of the cost of the unit.
A quantity discount will reduce the unit price from $5.00 for an order placed between 0
to 2,499 units to $4.95 for an order of the size of 2,500 units or more. Using a
price-break inventory model, which of the following is the optimal order quantity?
A.894 units
B.899 units
C.2,499 units
D.2,500 units
E.2,709.4 units
Answer:
Which of the following approaches to service design is characterized by having the
customer take a greater role in the production of the service?
A.Production line approach
B.Personal attention approach
C.Quality approach
D.Do-it-yourself approach
E.Self-service approach
Answer:
MP&CS do not include which of the following?
A.Order-entry processing
B.Equipment depreciation controls
C.Purchasing
D.Cost accounting
E.Shop-floor control
Answer:
Which of the following might be a status and exception report used in shop-floor
control?
A.Absentee report
B.Quality failure report
C.Shortage lists
D.Expediting report
E.Union activity report
Answer:
If a firm produced a product that is experiencing growth in demand, the smoothing
constant alpha used in an exponential smoothing forecasting model would tend to be
which of the following?
A.Close to zero
B.A very low percentage, less than 10%
C.The more rapid the growth, the higher the percentage
D.The more rapid the growth, the lower the percentage
E.50% or more
Answer:
Which of the following is not part of “the service triangle”?
A.Employees
B.Support systems
C.Customers
D.Service strategy
E.Service encounter
Answer:
Which of the following is a commonly used method of depreciation?
A.Linear depreciation
B.Sum-of-the-years’-digits
C.Expected residual value
D.Lesser of cost or market
E.Cost of goods sold
Answer:
Economic analysis of product development projects is useful in which of the following
circumstances:
A.Factory location
B.Distribution decisions
C.Go/no-go milestones
D.Demand estimation
E.Pricing
Answer:
Which of the following is a not benefit of an AMH?
A.Quicker material movement
B.Lower inventories
C.Reduced product damage
D.Higher labor productivity
E.Enhanced inventory security
Answer: