Neither the northwest corner rule nor the intuitive method considers shipping cost in
making initial allocations.
Shortening the project’s duration by deleting unnecessary activities is called “project
crashing.”
In several industries, online exchanges have been created by buyers.
The work-center master file contains data such as capacity and efficiency.
The biggest advantage of a product layout is its flexibility to handle a varied product
mix.
Production processes are being dispersed to take advantage of national differences in
labor costs.
An 80% learning curve means that with each unit increase in production, labor
requirements fall by 20%.
Hackman and Oldham’s five desirable characteristics of job design include job
significance and autonomy.
A knowledge society is one that has migrated from work based on knowledge to one
based on manual work.
The data below represent time study observations for an assembly operation. Assume a
7% allowance factor. What is the normal time for element 3?
A) 1.7 min.
B) 1.96 min.
C) 2.11 min.
D) 10.1 min.
E) 11.2 min.
In most acceptance sampling plans, when a lot is rejected, the entire lot is inspected and
all defective items are replaced. When using this technique the AOQ
A) worsens (AOQ becomes a larger fraction)
B) improves (AOQ becomes a smaller fraction)
C) is not affected, but the AQL is improved
D) is not affected
E) falls to zero
Which of the following is true about business strategies?
A) An organization should stick with its strategy for the life of the business.
B) All firms within an industry will adopt the same strategy.
C) Well defined missions make strategy development much easier.
D) Strategies are formulated independently of SWOT analysis.
E) Organizational strategies depend on operations strategies.
Consider the network presented in the following table. Calculate
a. All possible paths
b. The critical path
c. The slack available at any non-critical points
d. The minimum project duration
Current trends in operations management include all of the following except
A) just-in-time performance
B) rapid product development
C) mass customization
D) empowered employees
E) All of the above are current trends.
Which of the following is an example of a finite arrival population?
A) copy machines in a copying shop that break down
B) students at a large university registering for classes
C) shoppers arriving at a supermarket
D) cars arriving at a suburban car wash
E) all of the above
Which of the following statements regarding MRP in services is true?
A) MRP is for manufacturing only, and is not applicable to services.
B) MRP can be used in services, but only those that offer very limited customization.
C) MRP does not work in services because there is no dependent demand.
D) Services such as restaurant meals illustrate dependent demand, and require product
structure trees, bills-of-material, and scheduling.
E) None of the above is true.
Which of the following does not result from the effective use of group technology?
A) reduced tooling setup time
B) better electronic communication between team members
C) reduced raw materials and purchases
D) simplified production planning and control
E) improved layout, routing, and machine loading
Natural variations
A) are variations that are to be identified and investigated
B) are variations that can be traced to a specific cause
C) are the same as assignable variations
D) lead to occasional false findings that processes are out of control
E) play no role in statistical process control
The following data are pulled from a recent Walsh Manufacturing annual report.
Calculate: (a) Percent invested in inventory, (b) Inventory turnover, and (c) Weeks of
supply.
Characteristics of just-in-time partnerships do not include
A) removal of in-transit inventory
B) large lot sizes to save on setup costs and to gain quantity discounts
C) long-term contracts
D) few suppliers
E) buyer helps supplier to meet the quality requirements
In aggregate planning, which one of the following is not a basic option for altering
demand?
A) promotion
B) subcontracting
C) back ordering
D) pricing
E) All are demand options.
An error has been detected in the technical drawing of a product about to be placed on a
master production schedule. The part should be 9″ by 12″, not 9 cm by 12 cm; further,
the part should be stainless steel, not ordinary steel. What document transmits the
needed change? Where is the corrected information recorded? Why is this important to
the master production schedule?
Suppose that customer arrivals are governed by a Poisson distribution. If the average
arrival rate is 60 customers each hour, how many times will 60 customers arrive during
a one hour period for each time that only 40 customers arrive.
Describe level schedules. What purpose do they serve?
Why do work cells increase the use of equipment and machinery?
A product has three components X, Y, and Z. X has reliability of 0.991; Y has reliability
of 0.993. If Z has reliability of 0.991, what is the reliability of the entire product? Can Z
be redesigned to be reliable enough for the entire product to have reliability of 0.99?
Explain.
__________ is the process of breaking the aggregate plan into greater detail.
Marie Bain is the production manager at a company that manufactures hot water
heaters. Marie needs a demand forecast for the next few years to help decide whether to
add new production capacity. The company’s sales history (in thousands of units) is
shown in the table below. Use exponential smoothing with trend adjustment, to forecast
demand for period 6. The initial forecast for period 1 was 11 units; the initial estimate
of trend was 0. The smoothing constants are = .3 and = .3
A system has four components in a series. What is the reliability of the system?