To measure the voltage of batteries, one would sample by attributes.
A transportation problem with a total supply of 500 and a total demand of 400 will have
an optimal solution that leaves 100 units of supply unused.
Cycle time is the maximum time that the product is allowed at each workstation.
The first step in reducing setup times is the separation of setup into preparation
activities and actual setup, so that as much work as possible can be done while the
machine or process is operating.
One question that operations managers must ask when generating an aggregate plan is
what factors are likely to influence demand and by how much.
One drawback of a product-oriented layout is that work stoppage at any one point ties
up the whole operation.
While breakdowns occur randomly, their frequency is somewhat predictable through
such tools as the product failure rate, MTBF, and the breakdown costs model.
Possible decision alternatives found in capacity EMV problems are future demands or
market favorability.
Averages of small samples, not individual measurements, are generally used in
statistical process control.
The physical environment in which employees work may affect the quality of work life,
but it does not affect their performance and safety.
Simulation is the attempt to duplicate the features, appearance, and characteristics of a
real system, usually by means of a computerized model.
Flextime is a system that allows employees, within limits, to determine their own work
schedules.
In a JIT system, product inspection adds value by identifying defective items.
In time studies, average observed time for an element is
A) the ratio of normal time to standard time
B) the difference between normal time and the allowance factors
C) for all observations, the sum of all times recorded divided by the number of
observations
D) the percent of a worker’s time spent performing that element
E) how many observations must be taken in order to achieve a specified level of
accuracy
The largest contributor to productivity increases is __________, estimated to be
responsible for __________ of the annual increase.
A) management; over one-half
B) Mr. Deming; one-half
C) labor; two-thirds
D) capital; 90%
E) technology; over one-half
LaQuinta Motor Inns has a competitive edge over its rivals because it
A) uses regression analysis to determine which variables most influence profitability
B) picks better locations than its rivals
C) picks larger locations than its rivals
D) builds only along interstate highways
E) all of the above
Which of the following does not represent a reason for globalizing operations?
A) reduce costs
B) improve the supply chain
C) reduce responsiveness
D) attract and retain global talent
E) None of the above are valid reasons for globalizing operations.
If a layout problem is solved by use of “heuristics,” this means that
A) there was no other way to solve the problem
B) no computer software was available
C) the problem has only a few alternatives to evaluate
D) no optimum solution exists
E) a ‘satisfactory” solution is acceptable
The main difference between the intuitive lowest-cost method and the Northwest-corner
rule is that
A) the intuitive lowest-cost method always generates a better solution
B) the Northwest-corner rule is faster
C) the Northwest-corner rule ignores cost
D) only the intuitive lowest-cost method generates an optimal solution
E) None of the above are accurate.
A seasonal index for a monthly series is about to be calculated on the basis of three
years’ accumulation of data. The three previous July values were 110, 150, and 130. The
average over all months is 190. The approximate seasonal index for July is
A) 0.487
B) 0.684
C) 1.462
D) 2.053
E) cannot be calculated with the information given
The total of all outputs produced by the transformation process divided by the total of
the inputs is
A) utilization
B) greater in manufacturing than in services
C) defined only for manufacturing firms
D) multifactor productivity
E) none of the above
Aggregate planning for service firms that provide intangible output deals mainly with
A) smoothing the production rate and finding the optimal size of the workforce
B) capital investment decisions
C) centralized purchasing
D) centralized production
E) planning for human resource requirements and managing demand
The four R’s of sustainability do not include
A) recycling
B) resources
C) regulations
D) reputation
E) responsibility
A quality circle holds a brainstorming session and attempts to identify the factors
responsible for flaws in a product. Which tool do you suggest they use to organize their
findings?
A) Ishikawa diagram
B) Pareto chart
C) process chart
D) control charts
E) activity chart
A Time Measurement Unit, or TMU, is
A) the same as a Therblig
B) 0.00001 minute
C) 0.00001 hour
D) the duration of the easiest GET motion
E) an historical experience standard
“Yield management” is best described as
A) a situation where management yields to labor demands
B) a situation where the labor union yields to management demands
C) a process designed to increase the rate of output
D) capacity allocation to different classes of customers in order to maximize profits
E) management’s selection of a product mix yielding maximum profits
Consider the five ideas for determining the overall arrangement of most retail stores.
How are these ideas implemented (a) in a supermarket, and (b) in a fine department
store? (Please consider the entire store–not just the areas where merchandise is
displayed.)
An assembly line with 11 tasks is to be balanced. The longest task is 2.4 minutes, the
shortest task is 0.4 minutes, and the sum of the task times is 18 minutes. The line will
operate for 600 minutes per day.
a. Determine the minimum and maximum cycle times.
b. What range of output is theoretically possible for the line?
c. What is the minimum number of stations needed if the maximum output rate is to be
sought?
d. What cycle time will provide an output rate of 200 units per day?
Identify three forms of monetary rewards.
Health Care Systems of the South is about to buy an expensive piece of diagnostic
equipment. The company estimates that it will generate uniform revenues of $500,000
for each of the next eight years. What is the present value of this stream of earnings, at
an interest rate of 6%? What is the present value if the machine lasts only six years, not
eight? If the equipment cost $2,750,000, should the company purchase it?
Daily sales of bread by Salvador Monella’s Baking Company follow the historical
pattern shown in the table below. It costs the bakery 50 cents to produce a loaf of bread,
which sells for 95 cents. Any bread unsold at the end of the day is sold to the parish jail
for 25 cents per loaf. Construct the decision table of conditional payoffs. How many
loaves should Sal bake each day in order to maximize contribution?
__________ are drawings used to analyze movement of people or material.
List the eight steps used to develop a time study-based labor standard.
The academic service commonly referred to as “registration” consists of several smaller
components: advising, registration for courses, fee assessment, financial aid
calculations, and fee payment. Each of these modules operates independently and has
some probability of failure for each student. If the five probabilities which accompany
these services are 95%, 90%, 99%, 98%, and 99%, what is the “reliability” of the entire
product from the student’s perspective€the probability that all five will work according
to plan?