Which of the following are the primary functions of all organizations?
A) production/operations, marketing, and human resources
B) marketing, human resources, and finance/accounting
C) sales, quality control, and production/operations,
D) marketing, production/operations, and finance/accounting
E) research and development, finance/accounting, and purchasing
Regal Marine
A) no longer builds boats with any wooden parts
B) designs and builds boat hulls by hand
C) treats the product design decision as critical to its success
D) gets its competitive advantage by being the low-cost producer of boats designed by
others
E) designs several new boats each year, but contracts other firms for their manufacture
Productivity measurement is complicated by
A) the competition’s output
B) the fact that precise units of measure are often unavailable
C) stable quality
D) the workforce size
E) the type of equipment used
If an activity whose normal duration is 13 days can be shortened to 10 days for an
added cost of $1,500, the crash cost per period is
A) $500
B) $1,500
C) $750
D) $13,000
E) $15,000
What is the EMV for Option 1 in the following decision table?
A) 10,000
B) 18,000
C) 20,000
D) 22,000
E) 30,000
A location decision for an appliance manufacturer would tend to have a(n)
A) cost focus
B) focus on finding very highly skilled technicians
C) revenue focus
D) environmental focus
E) education focus
Which of the following statements regarding Wheeled Coach is false?
A) Wheeled Coach has found competitive advantage through MRP.
B) Wheeled Coach builds ambulances in a repetitive process.
C) Wheeled Coach’s MRP system allowed the company to meet tight schedules, but
caused inventory to rise.
D) Wheeled Coach’s MRP system maintains excellent record integrity.
E) Low inventory and high quality are two positive outcomes of Wheeled Coach’s use
of MRP.
The objective of aggregate planning is to meet demand while __________ over the
planning period.
A) minimizing cost
B) maximizing service level
C) minimizing stock out
D) minimizing fixed cost
E) all of the above
Which of the following is true of a focused factory?
A) It may be focused in ways other than by product or layout.
B) It may be focused only by processing requirements.
C) It is much like a product facility within an otherwise process facility.
D) All of the above are true.
E) None of the above is true.
Which of the following are possible outsourcing risks?
I. Incorrectly identifying a core competency as non-core
II. Setting savings goals too high
III. Inability to control product development, quality
IV. Non-responsive provider
V. Currency fluctuations
A) I, II, IV
B) II, III, V
C) I, III, V
D) III, IV, V
E) I, II, III, IV, V
A system is composed of four parts, J, K, L, and M. All four must function for the
system to function. The four component reliabilities are .99, .98, .992, and .998. The
designers are considering putting a .80 reliable backup at K. This backup will change
the system reliability from __________ to __________.
A) 0.9762 to 0.9605
B) 0.9605 to 0.9762
C) 0.9605 to some smaller value
D) cannot be determined
E) none of the above
The number of late insurance claim payouts per 100 should be measured with a
A) x-bar chart
B) R-chart
C) p-chart
D) c-chart
E) either a p or c chart
Which of the following products is likely to be assembled on a repetitive process line?
A) automobiles
B) personal computers
C) dishwashers
D) television sets
E) all of the above
Which of the following worker characteristics would likely be least important for U.S.
firms looking to open up call centers in different countries?
A) willing to accept low wages
B) have a high level of education
C) speak English
D) possess an in-depth knowledge of American popular culture
E) are young
A manufacturer uses statistical process control to control the quality of the firm’s
products. Samples of 50 of Product A are taken, and a defective/acceptable decision is
made on each unit sampled. For Product B, the number of flaws per unit is counted.
What type(s) of control charts should be used?
A) p-charts for A and B
B) p-chart for A, c-chart for B
C) c-charts for both A and B
D) p-chart for A, mean and range charts for B
E) c-chart for A, mean and range charts for B
Identify Ohno’s Seven Wastes. Which one of these deals most directly with distance
reductions?
A listing of the components, their description, and the quantity of each required to make
one unit of product is the __________.
Source A has capacity of 15, Source B has capacity of 30, Destination 1 has demand of
5 and Destination 2 has demand of 20. Fill in the following table with the correct initial
solution for a Northwest-corner method approach.
Among the mathematical approaches to aggregate planning, __________ is good at
working with inventories, holding costs, overtime, and subcontracting, but not with
hiring and layoffs.
How has Franz Colruyt achieved low-cost leadership? List three specific examples and
describe each briefly.
The effects of OM policies over many months or years can be obtained by computer
simulation in a short time. This phenomenon is referred to as __________ .
Identify the factors that influence new product opportunities.
Century Digital Phone advertises phone battery life (on standby) of up to three days.
The standard deviation is thought to be five hours. Tina Talbot, an employee at CDP,
tested 10 of these batteries for 72 hours. One failed at 40 hours; one failed at 62 hours;
one failed at 70 hours. All others completed the test. Calculate FR(%), FR(N), and
MTBF.
What is a kanban?
__________ is the Japanese word for the ongoing process of incremental improvement.