The word “finite” in finite capacity scheduling refers to the use of finite or limited
capacity rather than unlimited capacity.
One effective use of simulation is to study problems for which the mathematical models
of operations management are not realistic enough.
Demand cycles for individual products can be driven by product life cycles.
CRAFT is software for balancing assembly lines.
Philip Crosby is credited with both of these quality catch-phrases: “quality is free” and
“zero defects.”
Planning bills of material are bills of material for “kits” of inexpensive items such as
washers, nuts, and bolts.
Ethical issues which can arise in projects include gifts from contractors, pressure to
mask delays with false status reports, and pressure to compromise project quality for
cost or time savings.
Drop shipping results in time and shipping cost savings.
A process map with the addition of a time axis becomes a process chart.
All organizations, including service firms such as banks and hospitals, have a
production function.
Plans for new product development generally fall within the scope of aggregate
planning.
Pareto charts are a graphical way of identifying the few critical items from the many
less important ones.
The steeper an OC curve, the better it discriminates between good and bad lots.
The standard deviation of project duration is the average of the standard deviation of all
activities on the critical path.
The phrase Six Sigma has two meanings. One is statistical, referring to an extremely
high process capability; the other is a comprehensive system for achieving and
sustaining business success.
Which one of the following is a characteristic of a JIT partnership?
A) large number of suppliers
B) maximal product specifications imposed on supplier
C) active pursuit of vertical integration
D) removal of incoming inspection
E) frequent deliveries in large lot quantities
What is the expected value with perfect information of the following decision table?
A) 5,000
B) 10,000
C) 40,000
D) 60,000
E) 70,000
An x-bar control chart was examined and no data points fell outside of the limits. Can
this process be considered in control?
A) No, there could be a pattern to the points.
B) No, the R-chart must be checked.
C) No, the number of samples must be known.
D) Yes
E) Both A and B
A project organization
A) is effective for companies with multiple large projects
B) is appropriate only in construction firms
C) often fails when the project cuts across organizational lines
D) is formed to ensure that programs (projects) get proper management and attention
E) A and D are both true
East Texas Seasonings is preparing to build one processing center to serve its four
sources of seasonings. The four source locations are at coordinates shown below. Also,
the volume from each source is provided.
a. Calculate the volume-weighted center of gravity.
b. Calculate the simple center of gravity (all cities weighted equally).
c. Explain why the two calculations differ.
If an activity whose normal duration is 15 days can be shortened to 10 days for an
added cost of $2,000, the crash cost per period is
A) $400
B) $2,000
C) $10,000
D) $20,000
E) $30,000
A code of ethics especially for project managers
A) has been established by the Project Management Institute
B) has been formulated by the Federal government
C) has been formulated by the World Trade Organization
D) is inappropriate, since everyone should use the same guidance on ethical issues
E) does not exist at this time
Suppose that an iso-profit line is given to be X+Y=10. Which of the following
represents another iso-profit line for the same scenario?
A) X+Y=15
B) X-Y=10
C) Y-X=10
D) 2X+Y=10
E) None of the above
When a worker has a say in the work methods that he/she wishes to utilize, his/her job
is characterized by
A) skill variety
B) job identity
C) job significance
D) feedback
E) autonomy
The shopper who says to himself, “I’ve waited too long in this line. I don’t really need to
buy this product today,” and leaves the store is an illustration of which element of
arrival behavior?
A) random arrival
B) renege
C) random departure
D) balk
E) none of the above
The production database containing information about each of the components that a
firm produces or purchases is the
A) routing file
B) work-center master file
C) control file
D) item master file
E) none of the above
Which of the following is not one of the essential ingredients for mass customization?
A) storage of the many variations of finished goods to quickly accommodate the high
level of customization
B) personnel and facility flexibility
C) reliance on modular design
D) rapid throughput
E) very effective scheduling
Which of the following is not an opportunity for effective management in the supply
chain?
A) accurate “pull” data
B) vendor-managed inventory
C) postponement
D) local optimization
E) channel assembly
__________ allows manufacturing work cells and offices to be easily rearranged.
What is a keiretsu?
What do the terms producer’s risk and consumer’s risk mean?
A train company is considering applying yield management principles to its ticket sales.
Suppose that there is no variable cost in the operation, only a fixed cost to run each
train. The company decides that a student ticket will sell for half the cost of a business
ticket. If demand for the business tickets is given by 50-3x where x is the sales price of
a business ticket and demand for student tickets is given by 70-y^2 where y is the price
of a student ticket how much should the company charge for tickets to maximize
revenue?
Describe Value-Stream Mapping. Explain how it is different from process mapping.
__________ refers to the physical surroundings in which a service takes place, and how
they affect customers and employees.
Ten high-intensity bulbs are tested for 100 hours each. One failed at 10 hours; all others
completed the test. Calculate FR(%), FR(N) and MTBF.
The __________ strategy utilizes a standardized product across countries.