In a regression equation where Y is demand and X is advertising, a coefficient of
determination (R2) of .70 means that 70% of the variance in advertising is explained by
demand.
In PERT analysis, the identification of the critical path can be incorrect if a noncritical
activity takes substantially more than its expected time.
If a forecast is consistently greater than (or less than) actual values, the forecast is said
to be biased.
Process-oriented layouts typically have low levels of work-in-process inventory.
A feasible solution in transportation models is one in which all of the supply and
demand constraints are satisfied.
Research indicates that of all the reasons given for outsourcing failure, the most
common is that the decision was made without sufficient understanding of the options
through analysis.
Fixed costs are those costs that continue even if no units are produced.
In aggregate planning, the amount of overtime and the size of the work force are both
adjustable elements of capacity.
A modern ‘stopwatch” study can be conducted using a special-purpose PDA, one which
can digitally capture events, times, and other variables for later analysis on a
spreadsheet.
Reducing distance is a common JIT goal.
Infant mortality refers to the high failure rate often encountered in the very early stages
of the lifetime of a product.
Which of the following statements about maintenance at Orlando Utilities Commission
is false?
A) There are at least two types of preventive maintenance, including an annual
maintenance and a less frequent overhaul schedule.
B) Its preventive maintenance program has earned the company top rankings and its
competitive advantage.
C) Each power-generating unit is taken off-line every three years for a complete
overhaul.
D) Each of its power-generating units is taken off-line for maintenance every one to
three weeks.
E) Costs associated with breakdowns are several times higher than costs arising from
preventive maintenance.
Pretend that you have just come from a relative’s wedding reception. It didn’t turn out as
well as it should have, and the bride’s parents are pretty mad at how things turned out.
Use the supplied template to construct a conventional cause-and-effect diagram.
Identify twelve sources of defects for the issue “dissatisfied customer of wedding
reception caterer.” (Your dozen need not be exactly three per main cause, but should be
a balanced treatment.) Categorize each cause onto a main cause. Provide brief support
for each of your choices.
Based on his 14 Points, Deming is a strong proponent of
A) inspection at the end of the production process
B) an increase in numerical quotas to boost productivity
C) looking for the cheapest supplier
D) training and knowledge
E) all of the above
If an assignment problem consists of 6 workers and 7 projects,
A) one worker will not get a project assignment
B) one worker will be assigned two projects
C) each worker will contribute work toward the seventh project
D) one project will not get a worker assigned
E) The problem cannot be solved by assignment method.
The highest value for the equally likely criterion is __________; this occurs with
alternative __________.
A) $20,000; Option 1
B) $25,000; Option 2
C) $28,000; Option 3
D) $32,000; Option 3
E) $60,000; Option 3
The time an activity will take assuming very unfavorable conditions is
A) the optimistic time
B) the pessimistic time
C) the activity variance
D) the minimum time
E) exactly twice as long as the expected time
A firm is planning to set up an assembly line to assemble 40 units per hour, and 57
minutes per hour are productive. The time to perform each task and the tasks which
precede each task are:
a. Draw a network diagram of precedence relationships.
b. Compute the required cycle time per unit in minutes.
c. Compute the theoretical minimum number of workstations required to produce 40
units per hour.
d. Balance this line using longest processing time.
e. What is the efficiency of the line obtained in part d?
The Central Limit Theorem
A) is the theoretical foundation of the c-chart
B) states that the average of assignable variations is zero
C) allows managers to use the normal distribution as the basis for building some control
charts
D) states that the average range can be used as a proxy for the standard deviation
E) controls the steepness of an operating characteristic curve
What is the expected value of perfect information of the following decision table?
A) 0
B) 20
C) 50
D) 150
E) 200
Which of the following is not among the eight determinants of revenue and volume for
a service firm?
A) quality of the management
B) shipment cost of finished goods
C) purchasing power of the customer-drawing area
D) uniqueness of the firm’s and the competitor’s locations
E) competition in the area
A component must have reliability of .9925. Two technologies are available for this
component: one produces a component with .999 reliability at a cost of $2000. Another
produces a component with .73 reliability at a cost of $450. Which is cheaper: one high
quality component or a parallel set of inferior components?
What cautions are in order when using learning curves?
Because facility capacity, set-up time, and run time are usually known, scheduling is
often straightforward in __________ facilities.
A simple electrical motor has three components: windings, armature, and housing.
These three components have reliabilities of .97, .992, and .999. There is no possibility
of redundant parts. The motor must have an overall reliability of 0.980, according to the
product line manager who will use the motor as an input. What would you do to
redesign the motor to meet this specification? Discuss, including a recalculation to meet
the standard.
What is the basic difference between PERT and CPM?
__________ refers to a work schedule that deviates from the normal or standard five
8-hour days.
Distinguish between utilization and efficiency.
Describe some major challenges to implementing a successful build-to-order system?