The first product took 10 hours to build and the learning curve is estimated to be 90%.
How long with it take to make the fourth unit?
A) 10 hours
B) 9 hours
C) 8.1 hours
D) 7.5 hours
E) none of the above
A shop wants to increase capacity by adding a new machine. The firm is considering
proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and
for machine B, $75,000. The variable cost for A is $15.00 per unit and for B, $18.00.
The revenue generated by the units processed on these machines is $22 per unit. If the
estimated output is 9,000 units, which machine should be purchased?
A) machine A
B) machine B
C) either machine A or machine B
D) no purchase because neither machine yields a profit at that volume
E) purchase both machines since they are both profitable
From a portion of a probability distribution, you read that P(demand = 0) is 0.25, and
P(demand = 1) is 0.30. The random number intervals for this distribution beginning
with 01 are
A) 01 through 25, and 26 through 30
B) 01 through 25, and 01 through 30
C) 01 through 25, and 26 through 55
D) 00 through 25, and 26 through 55
E) 00 through 25, and 26 through 30
Which of the following statements regarding JIT in services is true?
A) Restaurants do not use JIT layouts because they interfere with creation of a good
servicescape.
B) Excess customer demand in services such as air travel is met by dipping into safety
stocks.
C) All of the JIT techniques for dealing with suppliers, layout, inventory, and
scheduling are used in services.
D) Scheduling is not relevant to effective use of JIT in services.
E) All of the above are false.
Which of the following is not an attribute of lean operations?
A) eliminating almost all inventory through just-in-time techniques
B) minimizing space requirements by reducing the distance a part travels
C) pushing responsibility to the highest level possible through centralized decision
making
D) educating suppliers to accept responsibility for helping meet customer needs
E) All of the above are attributes of lean operations.
A jewelry store is more likely than a jewelry manufacturer to consider __________ in
making a location decision.
A) transportation costs
B) cost of raw materials
C) parking and access
D) climate
E) taxes
What refers to training and empowering frontline workers to solve a problem
immediately?
A) just-in-time
B) poka-yoke
C) benchmarking
D) kaizen
E) service recovery
Which of the following statements is most accurate?
A) outsourcing is shrinking; international trade is shrinking
B) outsourcing is shrinking; international trade is growing
C) outsourcing is growing; international trade is shrinking
D) outsourcing is growing; international trade is growing
E) outsourcing is holding steady, but international trade always shrinks when
outsourcing grows
Which of the following is a reliability tactic?
A) improving individual components
B) increasing repair speed
C) providing redundancy
D) A and C
E) A, B, and C
Three commonly used productivity variables are
A) quality, external elements, and precise units of measure
B) labor, capital, and management
C) technology, raw materials, and labor
D) education, diet, and social overhead
E) quality, efficiency, and low cost
__________ is used to rank a company’s products to determine which products
represent the best use of the firm’s resources, or, perhaps, to determine which products
are to be eliminated.
A) Value analysis
B) Value engineering
C) Financial analysis
D) Product-by-value analysis
E) Product cost justification
In a repetitive focus factory, the number of channels available for the processing of a
certain part would likely refer to
A) the number of successive operations that have to be performed on that part
B) the number of machines doing the same necessary operations
C) the number of parts waiting to be processed
D) all of the above depending on the layout
E) none of the above
Properly set labor standards represent the amount of time that it should take an average
employee to perform specific job activities under __________.
The __________ is a part of the quality function deployment process that utilizes a
planning matrix to relate customer “wants” to “how” the firm is going to meet those
“wants.”
A company is deciding between 2 countries to locate its call center.
A: Which country is preferred by an un-weighted method if high scores indicate low
risk.
B: Suppose a consultant recommended that Factor 2 have its weight doubled while
Factor 3 should have its weight quadrupled. Which country is best now using a
weighted method?
__________ gets suppliers to accept responsibility for satisfying end customer needs.
Explain how learning curves might be applied in a scheduling application.
What is breakdown maintenance?