Firms that adopt lean production experience reductions in employee training costs.
The time required for a worker to complete one pass through the operations assigned to
her is called the operator cycle time.
PERT stands for program enterprise and resource technique.
Increases in productivity enable a nation to raise its standard of living.
With the quantity discount model, the first price point examined is the one associated
with the EOQ quantity calculated using the basic model.
A correlation coefficient is a measure of the strength of the linear relationship between
an independent and a dependent variable.
Continuous inventory systems are also referred to as a fixed-order-quantity system.
For a given annual demand, total annual ordering cost is independent of order size.
A product’s reliability is a function of the reliabilities of its component parts, but not a
function of how those parts are arranged.
The allowance factor is a percentage increase in the normal cycle time.
In a decision-making situation, the events that may occur in the future are known as
states of nature.
The formulation for a linear programming problem cannot include more than one
decision variable.
Sustainability is defined by the United Nations as sacrificing the present needs to ensure
the needs of future generations are more than satisfied.
The cost of measuring, testing, and analyzing are collectively known as appraisal costs.
The formula used to determine the upper and lower control limits are based on product
specification limits.
A process that is determined to be in control contains no variation.
The following table of probabilistic time estimates (in weeks) and activity predecessors
are provided for a project.
Table ZZ
The variance for activity E is
a. 1.291 weeks
b. 1.667 weeks.
c. 2.582 weeks.
d. 2.778 weeks.
Given the following demand data for the past five months, the three-period moving
average forecast for June is
a. 103.33.
b. 99.00.
c. 95.00.
d. 92.50
If the forecast for July was 3,300 and the actual demand for July was 3,250, then the
exponential smoothing forecast for August using α = 0.20 is
a. 3,300.
b. 3,290.
c. 3,275.
d. 3,250.
A project consists of the following activities:
Table XX
The earliest finish (EF) time for activity D is
a. 7 weeks.
b. 13 weeks.
c. 20 weeks.
d. 30 weeks.
All the following are factors influencing the outsourcing decision except
a. capacity.
b. expertise.
c. quality.
d. product variety.
XYZ manufacturing has received an order to produce a rod 5 inches in diameter + .04
inch. In sample runs, the machine tool that will be making the rod has been able to
produce rods with a mean diameter of 4.99 inches and a standard deviation of 0.011
inch. Which of the following statements is true?
a. The process is capable of meeting design spec but is off-center.
b. The process is capable of meeting design specs and is on-center.
c. The process in incapable of meeting design specs.
Which of the following countries is not an important U.S. trading partner?
a. Canada
b. Mexico
c. China
d. Russia
In lean production, waste is defined as
a. overproduction.
b. high levels of inventory.
c. unnecessary movement.
d. All of the answer choices are correct.
All of the following are advantages of task specialization except
a. increased output.
b. lower labor costs.
c. reduced boredom.
d. minimal training.
A company produces a product which is designed to weigh 10 oz., with a tolerance of +
0.5 oz. The process produces products with an average weight of 9.95 oz. and a
standard deviation of 0.10 oz. The process capability ratio for this process is a. 1.67
b. 0
c. 0.8333
d. -1.67
The number of daily calls received by a help desk between the hours of 9:00 a.m. to
10:00 a.m. can be described by the following probability distribution.
Use the following random numbers to simulate the number of calls to the help desk
between 9:00 and 10:00 a.m. for the next five days: 39, 55, 18, 16, 70.
If the first random number interval begins with 0, then the estimated average number of
calls received over the simulated five day period is
a. 63.
b. 62.
c. 61.
d. 60.
Functional design includes all the following except
a. reliability.
b. usability.
c. form design.
d. maintainability.
A production process consists of the following four stages with the average percentage
of good quality at each stage as shown
How many units must the company put into production each day to achieve a daily
yield of 100 good units?
a. approximately 119 units
b. approximately 108 units
c. approximately 106 units
d. approximately 104 units
How many cycles should be used in a time study in order to be 98% confident that the
time-study average job cycle time is within 4% of the true average job cycle time?
Assume that the average job cycle time is 4.25 minutes and the standard deviation of
the sample is 0.65 minutes.
a. 55 cycles
b. 70 cycles
c. 80 cycles
d. 95 cycles
Which type of facility is large and expensive?
a. light-industry facilities
b. retail and service facilities
c. heavy-manufacturing facilities
d. medium-site facilities
A small diner has one employee and a counter with seating for 8 customers. The diner
does not package food for takeout. Customers arrive at the diner at the rate of 20 per
hour (Poisson distributed). Service times are exponentially distributed and average 24
per hour. Customers that arrive when all seats are taken do not enter the diner. What is
the probability that there are no customers in the diner?
a. 0.2067
b. 0.7933
c. 0.8333
d. 0.1667