Ayben is responsible for managing an advertising and promotion project using Program
Evaluation and Review Technique (PERT) with the following activities (times are given
in weeks).
Draw the project network here. BLANK SPACES
Using the table for the advertising and promotion project, which activity has the largest
slack, and how large is that slack?
a. Activity C; 5 weeks
b. Activity A; 6 weeks
c. Activity B; 4 weeks
d. Activity E; 3 weeks
Answer:
Which of the following statement is TRUE if the time series exhibits a negative trend in
an exponential smoothing technique?
a. The forecast will lag the actual values.
b. The forecast will overshoot the actual values.
c. The mean square error will be zero.
d. The alpha value will be one.
Answer:
_____ classifies parts into families so that cellular layouts can be effectively used.
a. Ergonomics
b. Job enlargement
c. Group technology
d. Flow-blocking delay
Answer:
Common causes of variation:
a. occur when 2 of 3 consecutive points on a statistical process control chart are above
or below the center line of the chart.
b. occur when adjusting a process that is already in control.
c. generally account for 80 to 95 percent of the observed variation in a process.
d. can be prevented, explained, and easily understood.
Answer:
Which of the following is TRUE regarding the history of quality management?
a. During the Industrial Revolution, workers on the shop floor began to take on
increased responsibility for quality.
b. Six Sigma was developed in Japan as a cost reduction approach during the 1970s.
c. Deming used his 14 Points to highlight key insights and successful practices
regarding quality management.
d. Beginning around 1950, Juran advocated that quality is free, which led to the growth
and development of quality management in the United States.
Answer:
According to the seven major categories of waste classified by Toyota Motor Company,
long lead times and higher work-in-process are the results of _____.
a. overproduction
b. inventory
c. waiting time
d. transportation
Answer:
All of following are true of learning curves EXCEPT:
a. they are not used for a pricing strategy.
b. they are affected by the ratio of manual to machine work.
c. 80 percent learning curves exhibit a step initial decline and then level off.
d. they are used in defense industries.
Answer:
Which of the following is NOT a financial performance measure at an organizational
level?
a. Labor and material costs
b. Revenue and profit
c. Return on assets
d. Earnings per share
Answer:
An assembly line with 28 activities is to be balanced. The total amount of time required
for all 28 activities is 88 minutes. The longest activity is 2.2 minutes and the shortest is
0.8 minutes. The line will operate for 450 minutes per day. Using a cycle time of 60
seconds, determine an assembly-line balance by selecting the longest-processing-time
task available. Compute the total idle time and assembly-line efficiency. Using the
longest-task-time rule, the efficiency of the assembly-line balance is _____.
a. less than 65%
b. more than 65% but less than 75%
c. more than 75% but less than 85%
d. more than 85% but less than 95%
Answer:
A contract manufacturer can offer significant competitive advantages. Which one of the
following is NOT an advantage of using a contract manufacturer?
a. Access to advanced manufacturing technologies
b. Faster product time to market
c. Lower costs from economies of scale
d. Standardized goods in regional markets
Answer:
When evaluating golf clubs in a retail store, a golf simulator (i.e., a person hits the balls
into a big video golf course screen and sees where it lands) is an example of _____.
a. nondurable goods replacing services
b. a primary good
c. low goods content
d. biztainment
Answer:
Which of the following statements is NOT true about cellular layout?
a. Workers concentrate more on moving parts of the machines rather than on
production.
b. Workflow is standardized and centrally located.
c. It makes additional floor space available for productive uses.
d. It facilitates the processing of families of parts with similar processing requirements.
Answer:
Which of the following does NOT fit with Six Sigma implementation?
a. Emphasizing dpmo or epmo as a standard metric
b. Focusing on corporate sponsors responsible for supporting team activities
c. Providing flexibility to demand volume changes and trends
d. Providing extensive training followed by project team deployment
Answer:
According to the National Research Council, companies with computer-integrated
manufacturing system experience have been able to _____.
a. improve quality by a factor of ten
b. increase equipment utilization to 100 percent
c. decrease engineering design costs by up to 30 percent
d. reduce work-in-process time by 80 percent
Answer:
The manager at a sewing factory uses a piece-rate pay system. She has just received an
order for 600 dresses from a discount house downtown. She is trying to figure out what
her costs are for the project. She has conducted a time study and found the following
times for operations:
2 minutes to sew one sleeve
3 minutes to sew body of the dress
3.5 minutes to hem all unfinished edges
1 minute to attach the collar
3 minutes to attach all buttons
The workers must sit idle while they wait for supplies on the conveyor belt for an
average of 30 seconds. Their performance rating is equal to one. She pays the workers
$6.00 per hour.
a. What is the allowance factor for the operation?
b. What is the labor standard (in minutes) per dress?
c. What is the labor cost per dress?
d. What is the labor cost for the entire order of 600 dresses?
Answer:
_____ is the explicit consideration of environmental concerns during the design of
goods, services, and processes and includes such practices as designing for recycling
and disassembly.
a. Environmental analysis
b. Design failure-mode-and-effects analysis (DFMEA)
c. Quality Function Deployment (QFD)
d. Design for Environment (DfE)
Answer:
Which of the following is an example of a situation for which a Gantt chart would be
appropriate?
a. Developing a factory layout
b. Tracking inventory levels over time
c. Monitoring job schedules
d. Forecasting personnel requirements in a two-shift operation
Answer:
Which is NOT true of the critical path?
a. The activities on the critical path take the shortest time to complete.
b. The activities on the critical path define the total project completion time.
c. It is the project path with zero slack.
d. The delays in critical path activities will delay the project.
Answer:
Which of the following statements is TRUE of the expected-value approach to selecting
decision alternatives?
a. It mostly applies to one-time decisions.
b. It knows the state of nature in advance.
c. It is best suited for repeated decisions.
d. It is independent of probability estimates for events.
Answer:
Jude is in charge of the advertising program for the Boston Red Sox baseball team
during their spring training in Fort Myers, Florida. He has defined the advertising
program as a project with the following characteristics. The goal is to fill all stadium
seats during the spring training season or he may not have this job next yearthe pressure
is on!
The earliest completion time for this project is:
a. 12 weeks.
b. 13 weeks.
c. 14 weeks.
d. 16 weeks.
Answer:
Both the p-chart and c-chart use continuous data.
Answer:
The production of large goods such as airplanes is best accomplished using a _____
layout.
a. product
b. process
c. cellular
d. fixed-position
Answer:
Based on the information shown below in Table 5, develop a forecast for June using
both the two-period moving average model and the exponential smoothing model with
α = 0.10. For the exponential smoothing model, assume the forecast for February is
800.
Table 5
The 2-period moving average forecast for June is:
a. less than or equal to 940.
b. more than 940 but less than or equal to 950.
c. more than 950 but less than or equal to 960.
d. more than or equal to 960.
Answer:
Demand that is stable over time is called _____ demand.
a. static
b. dynamic
c. statistical
d. average
Answer:
The table below includes processing times and due dates for five jobs.
Using the earliest due date (EDD) rule, the average lateness for the five jobs is _____.
a. less than or equal to 10 days
b. more than 10 but less than or equal to 20 days
c. more than 20 but less than or equal to 30 days
d. more than 30 but less than or equal to 40 days
Answer:
A large hotel and casino in Las Vegas is currently under construction. There will be an
Italian restaurant in the hotel that will serve pizza. Management is trying to decide
whether to make the pizza themselves or buy it frozen and simply heat it to customer
order. There are two major sources of commercial-grade frozen pizza: Ma Ma’s
Products and the Chun-Yee Corporation. If they make the pizza themselves, a
substantial amount of preparation equipment will be required, along with skilled
personnel. Frozen pizza needs either a conventional oven (Ma Ma’s) or a microwave
(Chun-Yee). Financial data is as shown below (variable costs are estimated based on an
average pizza purchase):
Answer:
High scalability is most related to _____.
a. low incremental cost
b. high fixed cost
c. sales revenue
d. diseconomies of scale
Answer:
A plastic cell phone case has been experiencing physical quality control problems. That
is, the clear screen does not always fit (and snap into place) on the case. The dimensions
of the screen have consistently been in statistical process control (SPC). A root cause
quality initiative collected the following data about the plastic cell phone case. Analyze
the width of the cell phone case using control charts and make a recommendation.
Table 1 Cell Phone Plastic Case Widths in Centimeters Data*
*The sample averages and ranges helps in avoiding simple math errors and quickens the
time to complete the SPC analysis.
Given the previous results and analysis for the R-chart, one would:
a. conclude that the R-chart is in statistical process control, and proceed to develop the
x-bar chart.
b. conclude that the R-chart is not in statistical process control, and search for common
causes of the problem (i.e., the root cause).
c. conclude that the R-chart is not in statistical process control, and proceed to develop
the x-bar chart.
d. plot the sample means first to see if they are randomly distributed.
Answer:
Which of the following statements regarding the Sunshine Enterprises case study is
TRUE?
a. Sunshine restaurants average about 20 negative customer complaint per 100 customer
comments.
b. Given the information in the case, the customer defection rate on an average is below
5 percent.
c. The owner, Abby Martin, studied McDonald’s service-delivery system and adopted
many of their standardized methods for her restaurants.
d. Poka-yoke (and the Seven Quality Control (QC) Tools) methods could be used to
prevent service upsets like the $25 tip error.
Answer:
Assigning people to tasks, setting priorities for jobs, and scheduling equipment fits best
with which level of the generic framework for resource planning?
a. Aggregate planningLevel 1
b. DisaggregationLevel 2
c. ExecutionLevel 3
d. Market forecastingLevel 4
Answer:
A company is investigating two automated approaches for its production process. It has
collected the following cost information about each:
If the forecast annual production volume is 50,000 units, which technology alternative
should the company choose?
a. CNC
b. FMS
Answer:
Filing individual federal tax returns would best be described as what type of value
chain?
a. Business to business (B2B)
b. Business to customer (B2C)
c. Customer to customer (C2C)
d. Government to customer (G2C)
Answer:
GE’s Six Sigma problem-solving approach employs five phases. Which of the following
is NOT one of the phases?
a. Define (D)
b. Measure (M)
c. Analyze (A)
d. Identify (I)
Answer:
Service firms frequently take their aggregate plans and disaggregate them down to the
execution level as detailed frontline staff and resource schedules, job sequences, and
service-encounter execution.
Answer:
To get top management’s attention about quality issues, it is useful to measure quality in
monetary terms rather than from the operational perspective on the number of defects
and nonconformances.
Answer:
Common causes of variation generally accounts for about 80 to 90 percent of the
observed variation within a process.
Answer:
Given the information below, conduct an ABC analysis and suggest which items should
be classified as A, B, and C.
Answer:
The ideas and methods surrounding nonbottleneck work activity are often called yield
management.
Answer:
Kanban is the Japanese term for elimination of waste.
Answer:
A great servicescape and facility layout can usually overcome a poor location decision.
Answer:
Explain how a bill of materials (BOM), bill of labor (BOL), and bill of resources (BOR)
relate.
Answer:
A scheduled receipt for an outside vendor is called a purchase order.
Answer:
The Theory of Constraints is focused on eliminating all bottlenecks in a process.
Answer:
Ed Rogers owns an appliance store. Sales data on a particular model of a DVD player
for the past six months are shown below along with the results of two different
forecasting models that were developed.
Which is the better forecasting model, based on the MAD criterion?
Answer:
Joseph Juran preached the 14 Points for management in his quality philosophy.
Answer:
Discuss the concept of Design for Environment (DfE).
Answer:
The multiple-server queuing model assumes that jockeying can take place.
Answer:
Deterministic demand always remains stable over time and does not fluctuate.
Answer:
Empathy is the caring attitude and individualized attention provided to customers.
Answer:
A control chart is quality control jargon for an ordinary run chart that plots data over
time.
Answer:
Describe how supply chains should be designed for multisite management situations.
Answer:
In the supply chain operations reference (SCOR) model, the “make” step involves
managing orders, transportation, and distribution to provide goods and services.
Answer:
A wealth management company is able to process 300 customer statements (bills) per
day. The average processing time is six (6) days. What is the average number of
statements (bills) the company has in process at any time?
a. More than 500 but less than or equal to 750
b. More than 750 but less than or equal to 1000
c. More than 1000 but less than or equal to 1250
d. More than 1250
Answer: