Idle capacity exists in a _____ activity.
a. bottleneck work
b. booking
c. nonbottleneck work
d. nonphysical
Answer:
_____ have the primary responsibility to design and manage the processes and
associated resources that create value for customers.
a. Operations managers
b. Testers
c. First-line supervisors
d. End users
Answer:
A new surgical facility called Cut & Sew is opening in neighborhoods throughout the
United States. They are job shops that handle a variety of outpatient surgical
procedures. Their process is set up so that one doctor cuts and another sews. They have
five patients to sequence for tomorrow. Since the weather forecast is for a warm and
sunny day, they would also like to play golf tomorrow. They want to sequence their
patients with the objective of minimizing the time from the beginning of the first job
until the finish of the last job. The patients and estimated times are as follows:
Using Johnson’s rule to sequence these patients, the final patient sequence is _____
considering “A” as the first patient and “E” as the last.
a. A, B, C, D, E
b. B, E, A, C, D
c. C, A, B, E, D
d. D, A, B, E, C
Answer:
A _____ stratifies the data to more detailed levels at each step eventually isolating the
most significant problems.
a. flowchart
b. Pareto diagram
c. cause-and-effect diagram
d. scatter diagram
Answer:
When the average unit cost of a good or service decreases as the capacity and/or
volume of throughput increases, it is known as _____.
a. economies of scale
b. diseconomies of scale
c. cost cushioning
d. capacity cushion
Answer:
_____ is a capacity-expansion strategy with the goal of maintaining sufficient capacity
to minimize the chances of not meeting demand.
a. Capacity lag
b. Capacity straddle
c. Capacity lead
d. Capacity reduction
Answer:
Which of the following is NOT considered a project?
a. Writing and implementing a computer program
b. Introducing a new product
c. Production of soft drinks
d. Building a bridge
Answer:
The table below shows the frequency of service times for a drive-through window.
a. If the first category (service time of 1 minute) started with random number 00,
determine the random numbers for a service time for Category 5, five minutes.
b. Determine the random numbers for a service time of seven minutes if the first
category starts at random number 00.
Answer:
You are responsible for managing an advertising project with the following activities
(times are given in weeks).
Draw the project network here. BLANK SPACES
What activity should one crash to reduce the project completion time by two weeks at
minimum crash costs?
a. A and F, each by one week
b. A and D, each by one week
c. C and D, each by one week
d. D and G, each by one week
Answer:
Which of the following emphasizes defects per million opportunities as a key measure
of quality?
a. Deming’s 14 Points
b. ISO 9000:2000
c. The Gap model
d. Six Sigma
Answer:
Slack in an activity is computed as:
a. ES – LS.
b. EF – LF.
c. LS – ES.
d. LS – EF.
Answer:
The _____ states that the cost of doing any repetitive task, work activity, or project
decreases as the accumulated experience of doing the job increases.
a. learning curve
b. experience curve
c. Deming philosophy
d. regression method
Answer:
Table 1 Statistical Process Control (SPC) Problem Data*
*The range and row average help you avoid simple math errors and quicken the time to
complete the SPC analysis but you have to know what to use when.
Given the previous results and analysis for the R-chart, one would:
a. conclude that the R-chart is in statistical control and proceed to develop the x-bar
chart.
b. conclude that the R-chart is not in statistical control and proceed to develop the x-bar
chart.
c. investigate sample # 3 as it is outside the R-chart control limits and redo the R-chart.
d. plot the x-bar sample means first to see if they are randomly distributed.
Answer:
The process of customers leaving one waiting line to join another in a multiple-server
(channel) configuration is called:
a. jockeying.
b. reneging.
c. balking.
d. preempting.
Answer:
Allied Inc. is considering the purchase of a new piece of equipment. Relevant data are
shown below.
Answer:
You are responsible for managing a project with the following activities (times are
given in weeks):
What activity should one crash to reduce the project completion time by two weeks at
minimum crash costs?
a. A and F.
b. A and G.
c. A and E.
d. G and F.
Answer:
A paint company has the following aggregate demand requirements and cost data for
the upcoming year by quarter.
Table 2
Using the information in Table 2,determine the change in workforce costs (hiring and
firing employees) if the paint company decides to use a chase strategy.
a. $93,000
b. $84,000
c. $280,000
d. $30,000
Answer:
Service-encounter design includes all of the following principal elements EXCEPT
_____.
a. technology and information support systems
b. customer-contact behavior and skills
c. service-provider selection, development, and empowerment
d. service recovery and guarantees
Answer:
A movie theater requires the following minimum number of employees, each of whom
is required to have two consecutive days off.
Using staff scheduling method, the days on which demand equals staff capacity are
_____.
a. Tuesday and Wednesday
b. Wednesday and Sunday
c. Thursday and Friday
d. Friday and Saturday
Answer:
For a nonbottleneck activity:
a. utilization must be near 100%.
b. an hour lost has no effect on total process or factory output.
c. use large order sizes to minimize setups.
d. work-in-process buffer inventory should be placed in front of nonbottleneck
workstations.
Answer:
An accounting firm specializing in standard EZ tax returns filed online with a similar
sequence of steps is best described as what type of process?
a. Project
b. Job shop
c. Flow shop
d. Continuous flow
Answer:
Which is NOT related to a discrete metric?
a. Counting
b. Visual yes or no inspection
c. Good or bad
d. Time
Answer:
_____ occurs when a work center completes a unit but cannot release it because the
in-process storage at the next stage is full.
a. Lack-of-work delay
b. Propagation delay
c. Flow-blocking delay
d. Overload delay
Answer:
Rose is in charge of the advertising program for Proctor & Gamble’s new laundry
detergent. She has defined the advertising program as a project with the following
characteristics. The goal is to complete the project on time and within budget, or she
may not have this job next yearthe pressure is on!
Draw the project network in the space below if you want. BLANK SPACES
The largest amount of slack that any activity has in this project is:
a. 1 week.
b. 2 weeks.
c. 3 weeks.
d. 4 weeks.
Answer:
_____ is the horizontal expansion of a job to give a worker more varietyalthough not
necessarily more responsibility.
a. Job design
b. Ergonomics
c. Job enlargement
d. Job enrichment
Answer:
Rose is in charge of the advertising program for Proctor & Gamble’s new laundry
detergent. She has defined the advertising program as a project with the following
characteristics. The goal is to complete the project on time and within budget, or she
may not have this job next yearthe pressure is on!
Draw the project network in the space below if you want. BLANK SPACES
The total minimum crash cost only for the project to achieve a two-week earlier
completion time from the original project completion time is:
a. less than $1,000.
b. more than $1,000 but less than or equal to $2,000.
c. more than $2,000 but less than or equal to $3,000.
d. more than $3,000 but less than or equal to $4,000.
Answer:
A medical equipment testing and calibration service is depicted in Figure 1. The
customer usually brings the equipment to the service center. The service process
requires service technicians to perform three process steps #1 to #3. Each technician is
cross-trained so they can perform any of the three steps. The inspector does Step # 4
alone. After step #4, two parallel work activities are performed. That is, a shipping clerk
packs the work (step 7) while a billing clerk prepares the invoice (step 5)
simultaneously, and the customer is contacted by phone for pick-up (step 6). The
average throughput is 3 equipment units per hour.
Figure 1 Flow chart of the medical equipment testing and calibration service
process
The table below shows the work content of the process steps, activity times in minutes
per unit, shared
and non-shared
work activities,
and the type of
resource required.
There are 3 service
technicians on
duty: 1 inspector, 1
billing clerk, and 1
shipping clerk.
The labor utilization rate (%) for the service technician is closest to _____.
a. 20%
b. 40%
c. 60%
d. 80%
Answer:
An operator has determined the percentage of defectives for a machine which she
operates. Based on several samples of 75 observations, she found the p-bar to be 10
percent. She wants to set up a control chart using 3 standard deviation control limits.
Answer:
A pull system _____.
a. requires high levels of finished goods inventory
b. relies heavily on accurate sales forecasts
c. waits for customer orders
d. produces goods in advance of demand
Answer:
A tool used to show the frequency or number of observations of a particular value or
within a specific group is a _____.
a. histogram
b. cause-and-effect diagram
c. scatter diagram
d. flowchart
Answer:
Perfect order fulfillment is a metric that is used to measure _____.
a. delivery reliability
b. responsiveness
c. supply chain efficiency
d. supply chain financial performance
Answer:
An airplane repair facility has a contract to repair cargo aircrafts for a regional airline.
There are 62 planes in the airline company’s fleet of planes. Because of the punishing
workload, the planes require a considerable amount of maintenance. The repair facility
is trying to determine how to schedule the needed repairs. They want to compare the
shortest processing time (SPT) rule and the first come, first served (FCFS) rule.
Currently, the following planes need repair and are in the repair facility (data given is in
the order of plane arrival, only one plane is worked on at a time, and the shop is open
24 hours a day, 7 days a week).
a. In what order should the planes be repaired using the shortest processing time rule
(use first letter of plane)?
b. What is the average time (in hours) in the shop using the shortest processing time
(SPT) rule?
c. What is the average time (in hours) in the shop using the first come, first served
(FCFS) rule?
Answer:
Which aggregate planning strategy sets production rate equal to the demand?
a. Level production strategy
b. Chase demand strategy
c. Lot-for-lot (LFL) rule
d. Periodic-order-quantity (POQ) rule
Answer:
Which of the following best describes the definition of quality provided by Joseph
Juran?
a. Perfection and consistency in goods and service quality
b. Doing it right the first time
c. Conforming to design specifications
d. Fitness for use
Answer:
In the Service-Profit Chain model, which of the following is viewed as an external
performance?
a. Customer satisfaction
b. Volume flexibility
c. Cycle time
d. Employee productivity
Answer:
Table 1 Peterson Enterprises uses a fixed order quantity inventory control system. The
firm operates 50 weeks per year and has the following characteristics for an item:
Demand = 50,000 units/year
Ordering cost = $35/order
Inventory-carrying cost as a percent of item value = 25%
Item (Unit) value = $8 Lead time = 3 weeks
Standard deviation in weekly demand = 125 units
Using the information in Table 1, calculate the economic order quantity (EOQ) for this
item?
a. Less than or equal to 1200 units
b. Greater than 1200 but less than or equal to 1400 units
c. Greater than 1400 but less than or equal to 1600 units
d. Greater than 1600 units
Answer:
Using the information below, determine the productivity (measured as output per dollar
input) for each quarter and calculate the percentage change in productivity.
Answer:
A slack of 2 means the project is ahead of schedule by two time periods.
Answer:
A company currently has no items in inventory. The demand for the next four months is
200, 400, 250, and 350 units. Assuming a level production rate of 250 units per month,
determine the month in which a backorder will materialize.
Answer:
Define simulation and give some operations management examples.
Answer:
It is not necessary to have a process in control when establishing control limits.
Answer:
List the four elements of a decision problem.
Answer:
The learning curve does not apply to supervisory personnel, some skilled craftspeople,
or jobs that have non-repetitive job tasks.
Answer:
The service-positioning matrix focuses on the service encounter level rather than the
overall design of the service system.
Answer:
Short-term capacity decisions usually involve adjusting schedules or staffing levels.
Answer:
Service encounters consist of one or more moments of truth.
Answer:
An assembly-line balancing minimizes the number of workstations for a given
production rate or maximizes the production rate for a given number of workstations.
Answer:
W. Edwards Deming proposed a simple definition of quality: “fitness for use” and
sought to improve quality by working within the system familiar to managers.
Answer:
The 1:10:100 Rule supports the need for control and a focus on prevention by building
quality at the source.
Answer:
Determine the system reliability if the individual component reliabilities are A = 0.92, B
= 0.94, C = 0.95, D = 0.80, and E = 86, where A, B, and C are series components, D
and E are parallel components.
Answer:
In using the product-process matrix, the most appropriate match between products and
processes occurs along the diagonal of the matrix.
Answer:
Lean principles are mostly beneficial to manufacturers and provide little value to
service organizations.
Answer: