You are managing a project and need to cut the cost of the project. You decide to
transfer workers to another job to cut the project’s costs. Costs associated with
transferring the workers are an example of project indirect costs.
Answer:
The operational measure of throughput is “the rate at which money is generated by the
system through production of goods and services that might be sold”.
Answer:
Net change MRP systems are “activity” driven.
Answer:
Yield management is an effective tool that can be used to shape demand patterns.
Answer:
If products and resources can not be subdivided into fractions, the condition of
divisibility is violated. In these cases, a modification of linear programming called
integral programming can be used.
Answer:
Enterprise resource planning is a once-per-year activity usually involving a
management retreat.
Answer:
Trend lines are usually the last things considered when developing a forecast.
Answer:
One of the current issues of operations and supply management is increased
co-production of goods and services.
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Transfer batch is another term for process batch.
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RSFE in forecasting stands for “readable safety function for error detection”.
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Productivity in a production process can be measured by the ratio of output to input.
Answer:
One methodology used to evaluate equipment investment decisions where the
investment entails a large initial investment, fixed costs and variable costs is break-even
analysis.
Answer:
A BOM file is sometimes called which of the following?
A.Product structure tree
B.Stocking plan
C.Inventory usage record
D.Production parts plan
E.Time bucket schedule
Answer:
Which of the following is a multifactor measure of productivity?
A.Output/(Materials + Labor)
B.Output/(Labor + Capital + Energy)
C.Output/All resources used
D.Output/Inputs
E.All of the above
Answer:
Which of the following is the symbol for the cost of placing an order in the fixed-order
quantity inventory model?
A.C
B.TC
C.H
D.Q
E.S
Answer:
Apply linear programming to this problem. A one-airplane airline wants to determine
the best mix of passengers to serve each day. Their airplane seats 25 people and flies 8
one-way segments per day. There are two types of passengers: first class (F) and coach
(C). The cost to serve each first class passenger is $15 per segment and the cost to serve
each coach passenger is $10 per segment. The marketing objectives of the airplane
owner are to carry at least 13 first class passenger-segments and 67 coach
passenger-segments each day. In addition, in order to break even, they must at least
carry a minimum of 110 total passenger segments each day. Which of the following is
one of the constraints for this linear program?
A.15 F + 10 C => 110
B.1 F + 1 C => 80
C.13 F + 67 C => 110
D.1 F => 13
E.13 F + 67 C =< (80/200)
Answer:
What is a work breakdown structure?
A.A list of the activities making up the higher levels of the project
B.A definition of the hierarchy of project tasks, subtasks and work packages
C.A depiction of the activities making up a project
D.A Gantt chart
E.A structure that is incompatible with the Critical Path Method
Answer:
In designing a lean production facility layout a designer should do which of the
following?
A.Design for work flow balance
B.Locate flexible workstations off line
C.Link operations through a push system
D.Balance capacity using job shop analysis
E.Always keep operations on a single floor of the factory
Answer:
Which of the following are alternative possible service encounters included in the
Service-System Design Matrix?
A.Mail contact
B.Warranty
C.Sales call
D.Field service
E.None of the above
Answer:
Which of the following is not a reason that work measurement is used to set time
standards?
A.To schedule work
B.To provide an objective basis for motivating the workforce
C.To bid for new contracts
D.To identify and eliminate lower performing employees
E.To provide benchmarks for improvement
Answer:
If the normal time for a job is 30 minutes and the allowances for the job include 10
percent for personal needs, 5 percent for unavoidable work delays and 3 percent for
work fatigue, which one of the following comes closest to the standard time for this
job?
A.14 minutes
B.24 minutes
C.32 minutes
D.35 minutes
E.38 minutes
Answer:
Which of the following are the recommended percentage groupings of the ABC
classifications of the dollar volume of products?
A.A items get 15%, B items get 35% and C items get 50%
B.A items get 15%, B items get 45% and C items get 40%
C.A items get 25%, B items get 35% and C items get 40%
D.A items get 25%, B items get 15% and C items get 60%
E.A items get 20%, B items get 30% and C items get 50%
Answer:
An assumption of three-activity-time CPM analysis is that the activity time estimates
conform to the beta distribution. Which of the following is a valid criticism of this
assumption?
A.Project activities cannot always be networked
B.Project control doesn’t focus enough on the critical path
C.Obtaining three valid time estimates to put into the formula is difficult
D.Beta distributions do not occur naturally
E.None of the above
Answer:
Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping
of 400 units a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a
volume of shipping of 300 units a day. Using the centroid method, which of the
following is the X coordinate for the new plant location?
A.About 205
B.About 227
C.About 243
D.About 389
E.X coordinate can not be computed from the data given
Answer:
Which of the following is not a reason to choose time study rather than work sampling?
A.When the cycle time is short
B.When a complete a breakdown of elements is desired
C.When results are not required quickly
D.When the observers develop a repetitive route of travel
E.When the system is in the process of change
Answer:
In general, which forecasting time frame compensates most effectively for random
variation and short term changes?
A.Short-term forecasts
B.Quick-time forecasts
C.Long range forecasts
D.Medium term forecasts
E.Rapid change forecasts
Answer:
Which of the following is not a data analysis and solution development tool from the
operations consulting tool kit?
A.Computer simulation
B.Statistics
C.Plant tours/audits
D.Problem analysis (SPC tools)
E.Bottleneck analysis
Answer:
An advantage of the Level strategy for aggregate operations planning is which of the
following?
A.Purchased items from vendors can be delivered when and where needed
B.High Level of scheduling allows for workers to have lots of overtime
C.System can better accommodate unexpected large orders
D.Financial requirements are minimized through lower finished goods inventory
E.It is easier to apply linear programming or simulation
Answer:
You have just timed a person doing a hair cut for the first time. It took 50 minutes.
What unit improvement factor learning curve would you use if the person took 35
minutes on the second hair cut?
A.35 percent
B.50 percent
C.70 percent
D.75 percent
E.80 percent
Answer:
Maintaining a stable workforce working at a constant output rate while shortages and
surpluses are absorbed by fluctuating inventory Levels, order backlogs and allowing
lost sales is which of the following production planning strategies?
A.Stable workforce, variable work hours
B.Chase
C.Level
D.Full employment
E.Skill maintenance
Answer:
You have determined that a 60 percent learning curve is appropriate for a task. If your
initial timing of person performing that task was 35 minutes and if you need the task
performed 1,000 times, how many minutes of work will be required?
A.3,500.0 minutes
B.1,062.5 minutes
C.705.25 minutes
D.450.5 minutes
E.220.3 minutes
Answer:
Sensitivity analysis of the Base-Case Financial Model is a useful tool for which of the
following reasons?
A.To determine how long the development process can profitably last
B.To understand how many technical people are needed to make the project a success
C.To help understand the basic trade-offs of resources committed and cash received
D.To identify the necessary product launch date
E.To set marketing and sales budgets
Answer:
A company can produce a small lot of products the first time at a cost of $3,000. If their
65 percent learning curve allows them to reduce their costs on each lot, what is the cost
of producing the 12th lot?
A.$14,340
B.$3,000
C.$2,896
D.$640.50
E.$213.50
Answer:
The 50th repetition of a job is timed at 100 minutes. If the learning curve for this job is
90 percent, what is the estimated time for the 100th repetition of this job?
A.49.66 minutes
B.81 minutes
C.90 minutes
D.100 minutes
E.110 minutes
Answer:
The probability associated with rejecting a high quality lot is denoted in acceptance
sampling with the Greek letter alpha.
Answer:
Which of the following is the cost of quality classification for costs such as defects that
pass through the system, such as customer warranty replacements, loss of customer or
goodwill, handling complaints and product repair?
A.Appraisal costs
B.Prevention costs
C.External failure costs
D.Customer return cost
E.Workmanship costs
Answer:
What is a criterion or product characteristic that differentiates a product from the
products of competitors in a way meaningful to the market called?
Answer:
What does it mean when we say that a process is capable?
Answer:
Name the four basic types of forecasting?
Answer:
Describe the aggregate sales and operations planning process?
Answer:
Describe the distinction between horizontal and vertical form of job enlargement. Under
what conditions would you use either?
Answer:
Joining a line at an airport shoeshine stand where there are five people shining shoes
puts you in which type of queuing system line structure?
Answer: