1) Ergonomics is the use of computers and robots in the workplace.
2) The learning curve is a basic tool for mass production-type activities because it can
deal with large volumes of output.
3) A lower control limit must by definition be a value less than an upper control limit.
4) The best way to assure quality is to use extensive inspection and control charts.
5) One problem with lean operations is that they can lead to much frustration and
disappointment of people on the shop floor due to the need for continuously monitoring
and expediting resource availability.
6) Product design choices are usually the result of inputs from accounting and human
resources.
7) A system has one service facility that can service 10 customers per hour. The
customers arrive at a variable rate, which averages six per hour. Since there is excess
capacity, no waiting lines will form.
8) “Autonomation” indicates that the firm is attempting to reduce its dependence on
automated equipment.
9) According to learning curve theory, every doubling of total output will produce a
constant percentage decrease in time per unit.
10) The fixed-order-interval model requires a larger amount of safety stock than the
ROP model for the same risk of a stockout.
11) Consider the following work breakdown structure:
What is the estimated expected (mean) time for activity E?
A.91 days
B.99 days
C.100 days
D.101 days
E.115 days
12) A concert promoter is forecasting this year’s attendance for one of his concerts
based on the following historical data:
What is this year’s forecast using exponential smoothing with alpha = .2, if last year’s
smoothed forecast was 15,000?
A.20,000
B.19,000
C.17,500
D.16,000
E.15,000
13) Which of the following is not a benefit of centralized purchasing?
A.potential for quantity discounts
B.better service from suppliers
C.quick response to local needs
D.potential for use of purchasing specialists
E.supplier research
14) The manager of Lawn and Garden Services would like to estimate the proportion of
her employees’ time spent performing various gardening and lawn care activities. She
has made 400 random observations of a typical worker, with the following results:
How confident can the manager be that the true proportion of time spent mowing is
between .45 and .55?
A.90 percent
B.95 percent
C.95.5 percent
D.99 percent
E.99.7 percent
15) Which one of the following is implied by a lead time service level of 95 percent?
A.Approximately 95 percent of demand during lead time will be satisfied.
B.Approximately 95 percent of inventory will be used during lead time.
C.The probability is .95 that demand during lead time will exactly equal the amount on
hand at the beginning of lead time.
D.The probability is .95 that demand during lead time will not exceed the amount on
hand at the beginning of lead time.
16) Which of the following is not an information requirement for the design of a
process layout?
A.a list of departments or work centers
B.a projection of work flows between the work centers
C.the distance between locations
D.the cost per unit of distance to move loads
E.a list of product cycle times for every product manufactured
17) When choosing a forecasting technique, a critical trade-off that must be considered
is that between:
A.time series and associative.
B.seasonality and cyclicality.
C.length and duration.
D.simplicity and complexity.
E.cost and accuracy.
18) The “Control” phase of DMAIC is intended to ensure that:
A.the proper subset of process inputs are monitored.
B.variability reduction is pursued.
C.data analysis is overseen.
D.inputs are closely monitored.
E.improvements are sustained.
19) Which of the following would not contribute to the leaning of services?
A.Improve the reliability of vendors.
B.Increase the flexibility of the service system.
C.Have service workers handle multiple tasks.
D.Standardize the service output.
E.Improve the service process.
20) The following is a list of components required to produce one unit of end item P:
P: 2 As, 3 Bs, 3 Cs
A: 5 Ms, 2 Rs
B: 1 D, 3 Ns
C: 1 T, 4 Ns
M: 1 N
Determine the number of Ns that will be needed to make 60 Ps in each of these cases:
(A) There are currently 10 Ps on hand.
(B) On-hand inventory consists of 15 Ps, 10 As, 20 Bs, 10 Cs, 100 Ns, 300 Ts, and 200
Ms.
The product structure tree is:
21) In a single-period model, if shortage and excess costs are equal, then the optimum
service level is:
A.0
B..33
C..50
D..67
E..75
22) With regard to suppliers, lean systems typically involve:
A.delivery of large lots on short notice
B.the highest quality at the lowest price
C.long-term relationships
D.multiple suppliers to assure continuous availability
E.dedicated staging areas for material
23) A manufacturer is contemplating a switch from buying to producing a certain item.
Setup cost would be the same as ordering cost. The production rate would be about
double the usage rate. Compared to the EOQ, the maximum inventory would be
approximately:
A.70 percent higher.
B.30 percent higher.
C.the same.
D.30 percent lower.
E.70 percent lower.
24) The owner/operator of the local franchise of Handyman, Inc., has four jobs to do
today, shown in the order they were received:
If he uses the shortest processing time first priority rule to schedule these jobs, what
will be the average number of jobs in his shop today?
A.0
B.1
C.2
D.3
E.4
25) Studies on a bottle-filling machine indicate that it fills bottles to a mean of 16
ounces with a standard deviation of 0.10 ounces. What is the process specification,
assuming the Cpk index of 1?
A.lower spec = 0.1 ounces and upper spec = 1 ounce
B.lower spec = 8.7 ounces and upper spec = 12.5 ounces
C.lower spec = 12.0 ounces and upper spec = 21.4 ounces
D.lower spec = 15.7 ounces and upper spec = 16.3 ounces
E.lower spec = 14.3 ounces and upper spec = 17.7 ounces
26) Consider the following decision scenario:
*PV for profits ($000)
The maximax strategy would be:
A.buy.
B.lease.
C.rent.
D.high.
E.low.
27) Suppose that only two incoming fraction defective levels, 4 percent and 8 percent,
are possible. These incoming fraction defective levels are equally likely. At a 4 percent
incoming fraction defective, there’s a 60 percent chance that a lot will be accepted. At 8
percent incoming fraction defective, there’s a 20 percent chance that a lot will be
accepted. Lots that are not accepted are subject to 100 percent sorting. What is average
outgoing quality?
A.40 percent
B.20 percent
C.10 percent
D.4 percent
E.2 percent
28) A Type II (beta) error occurs when:
A.a bad lot is accepted.
B.a good lot is rejected.
C.a bad lot is rejected.
D.a good lot is accepted.
E.a rejected lot is reinspected.
29) Which of these items would be most likely to have dependent demand?
A.Xbox batteries
B.toy trains
C.flowers
D.chocolate chip cookies
E.wrist watches
30) Given the following information, what would efficiency be?
Effective capacity = 80 units per day
Design capacity = 100 units per day
Utilization = 48 percent
A.20 percent
B.35 percent
C.48 percent
D.60 percent
E.80 percent
31) Data on the last three years of demand are available as follows:
What is the centered moving average for spring two years ago?
32) 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:
If these jobs were scheduled in the sequence shown, what would be the idle time at
machine B?
33) Consider the following information:
What are total costs for the break-even quantity?
34) Determine the amount of slack in each of a project’s activities (presented below),
and identify those that are on the critical path.
35) A CPA firm has been using the following equation to predict annual demand for tax
audits: Yt = 55 + 4t. Demand for the past few years is shown below. Is the forecast
performing as well as it might? Explain.
36) Given the network diagram below, determine the probability that the project will
finish within 26 weeks of its start. Times on the diagram are in weeks.
37) 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:
If these jobs were scheduled in the sequence shown, what would be the throughput
time?
38) Given the following process layout data for locating four departments (A, B, C, and
D) in four areas (1, 2, 3, and 4):
If departments A through D were to be located in areas 1 through 4, respectively, what
would be the total distance loads would be moved each month?