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Operations management is the set of activities that creates value in the form of goods
and services by transforming inputs into outputs.
A simulation is "Monte Carlo" when the elements of a system being simulated exhibit
chance in their behavior.
Simulation models are inexpensive to design and use.
One limitation of the net present value approach to investments is that investments with
identical net present values may have very different cash flows.
A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y
for every unit of time that passes.
A Therblig is a very small amount of time, one hundred-thousandth of an hour.
An operations manager's most ethical activity is to enhance productivity while
delivering desired goods and services. Unfortunately, this activity is not
environmentally sound.
The net present value of $10,000 to be received in exactly three years is considerably
greater than $10,000.
Developing long-term, "partnering" relationships with a few suppliers is a
long-standing American purchasing strategy.
The purpose of process control is to detect when natural causes of variation are present.
Two issues€viewing a product in terms of its impact on the entire economy and
considering the life cycle of a product€combine to increase the likelihood of ethical
decisions by managers.
Self-directed teams may mean having no supervision on the factory floor.
The minimum number of workstations depends upon the set of task times and the
precedence chart, but not the number of units scheduled.
While ERP may provide a strategic advantage over competitors, it is so complex that
many companies cannot adjust to it.
The assignment method provides an optimum, one-to-one assignment of jobs to
resources.
"Poka-yoke" is the Japanese term for
A) card
B) foolproof
C) continuous improvement
D) fishbone diagram
E) just-in-time production
The central problem in product-oriented layout planning is
A) minimizing material handling within workstations
B) minimizing labor movement between workstations
C) equalizing the space allocated to the different workstations
D) maximizing equipment utilization
E) minimizing the imbalance in the work loads among workstations
Which of the following techniques may not provide reliable and accurate time
standards?
A) historical experience
B) method time measurement (MTM)
C) time studies
D) work sampling
E) predetermined time standards
One use of short-range forecasts is to determine
A) planning for new products
B) capital expenditures
C) research and development plans
D) facility location
E) job assignments
Learning curves have a variety of purposes, which can be placed into these broad
categories:
A) services, industry, and military
B) internal, external, and strategic
C) wholesale, distribution, and retail
D) arithmetic, logarithmic, and learning coefficients
E) positive learning, neutral learning, and negative learning
The local convenience store makes personal pan pizzas. Currently, their process makes
complete pizzas, fully cooked, for the customer. This process has a fixed cost of
$20,000, and a variable cost of $1.75 per pizza. The owner is considering a different
process that can make pizzas in two ways: completely cooked (as before), or partially
cooked and then flash frozen, for the customer to finish at home. This alternate process
has a fixed cost of $24,000, but a lower variable cost (because much less energy is used
in baking) of $1.25 per pizza.
a. What is the crossover point between the existing process and the proposed process?
b. If the owner expects to sell 9,000 pizzas, should he get the new oven?
Short-term schedules are prepared
A) directly from the aggregate plans
B) directly from the capacity plans
C) from inventory records for items that have been used up
D) from master schedules which are derived from aggregate plans
E) from the purchasing plans
The network below represents a project being analyzed by Critical Path Methods.
Activity durations are A=5, B=2, C=12, D=3, E=5, F=1, G=7, H=2, I=10, and J=6.
a. What task must be on the critical path, regardless of activity durations?
b. What is the duration of path A-B-E-H-J?
c. What is the critical path of this network?
d. What is the length of the critical path?
e. What is slack time at activity H?
f. What is the Late Finish of activity H?
g. If activity C were delayed by two time units, what would happen to the project
duration?
As a firm's maintenance commitment increases,
A) the breakdown maintenance costs increase and the preventive maintenance costs
decrease
B) both the breakdown maintenance costs and the preventive maintenance costs
decrease
C) the breakdown maintenance costs decrease and the preventive maintenance costs
increase
D) both the breakdown maintenance costs and the preventive maintenance costs
increase
E) None of the above is true.
Given forecast errors of -1, 4, 8, and -3, what is the mean absolute deviation?
A) 2
B) 3
C) 4
D) 8
E) 16
Which of the following is not a type of qualitative forecasting?
A) executive opinions
B) sales force composites
C) consumer surveys
D) the Delphi method
E) moving average
Computer monitoring of tracking signals and self-adjustment if a signal passes a preset
limit is characteristic of
A) exponential smoothing including trend
B) adaptive smoothing
C) trend projection
D) focus forecasting
E) multiple regression analysis
__________ is an approach to determine the quantity and timing of production for the
intermediate future.
What is the primary disadvantage of the shortest processing time dispatch rule? Is this a
problem if there can be no new jobs arriving after the sequence is set?
A company is deciding if it should design an advertising system for use on Twitter©.
The first option is to skip out on designing, with no net costs or gains. The second
option is System A, which would result in additional sales of either $50,000 under good
conditions or $10,000 under bad conditions. The final choice is System B, which would
increase sales by $20,000 under both good and bad conditions. Suppose that good
conditions are twice as likely as bad conditions. Which option should the company
pursue if developing a system costs $25,000?
What is quality function deployment (QFD)?
Transferring to external vendors a firm's activities that have traditionally been internal
is known as __________.
