Toyota classified waste into seven major categories. These categories include all of the
following EXCEPT _____.
a. motion
b. ordering
c. inventory
d. waiting time
Answer:
A paint company has three sources for buying bright red pigment for their paints:
Vietnam, Taiwan, or Thailand. Unfortunately, the pigment is made from a bush whose
annual growth is heavily dependent upon the amount of rainfall during the growing
season. The tables below show probabilities and prices for wet, dry, and normal
growing seasons:
a. Using decision tree analysis, what is the expected value (price) for Thailand?
b. What country should the company select, and what is the expected value (price)
associated with it?
Answer:
Which one of the following statements is FALSE?
a. A cause-and-effect diagram is also called a fishbone diagram.
b. Scrap and rework costs are part of internal failure costs.
c. Kaizen is the process of specifying design specifications for goods and services.
d. The Deming Cycle is named after a famous quality guru and consists of four
stepsplan, do, study, and act (PDSA).
Answer:
The Florida Appliance Company is installing an assembly line to produce vacuum
cleaners, and you, as an operations manager, are responsible for balancing the line. The
tasks to be performed are listed, along with their times and immediate predecessors.
The company is planning to operate 2 shifts per day, 8 hours per shift. The desired
output rate of the line is 480 units per day.
a. Compute the cycle time per unit in minutes.
b. Compute the minimum number of workstations required.
c. Use the longest-task-time heuristic to balance the assembly line.
d. Compute the efficiency of your assembly line.
Answer:
Which of the following is NOT an objective of ergonomics?
a. To increase speed and accuracy
b. To reduce fatigue
c. To improve customer interaction
d. To increase the cost of doing the job
Answer:
The nine tasks necessary to assemble a vacuum cleaner are listed below. The time to
perform each task and the tasks that must immediately precede are also listed. 300
vacuums are needed per hour and 50 minutes per hour are productive.
a. Compute the cycle time per unit in minutes.
b. Compute the minimum number of workstations required.
c. Use the longest-task-time heuristic to balance the production line.
d. Compute the efficiency of the assembly line.
Answer:
Which of the following forms part of Program Evaluation and Review Technique
(PERT)?
a. Beta distribution
b. Variance
c. Most probable time
d. All of above are related to PERT
Answer:
A company manufactures 50-inch and 75-inch rear projection television sets. Each
50-inch set contributes $200 to profits and each 75-inch set contributes $475 to profits.
The company has purchase commitments for 500 50-inch sets and 200 75-inch sets for
the next month, so they want to make at least that many television sets. Although they
think they can sell all the 50-inch sets that they could currently make, they do not think
they can sell more than 375 75-inch sets. Their production capacity allows them to
make only 975 sets in total including both types of television sets. They want to know
how many of each type to make so as to maximize profits.
a. What is the objective function for this LP problem?
b. What are the constraints involving x1, assuming that x1 corresponds to 50-inch TV
sets?
c. What is the optimal solution point for this problem?
d. What is the optimal value of the objective function?
Answer:
Which of the following is a quality performance measure at an operational level?
a. Customer ratings of goods and services
b. Customer retention
c. Service representative courtesy
d. Product recalls
Answer:
A company has two alternatives for meeting a customer requirement for 6,000 units of a
specialty molding. If done in-house, fixed cost would be $350,000, with variable cost at
$30 per unit. If outsourced, the cost is $80 per unit. Determine the break-even point and
determine if they should make the item in-house or outsource it.
a. break-even point = 7,000 units; outsource it
b. break-even point = 7,000 units; make it in-house
c. break-even point = 11,667 units; outsource it
d. break-even point = 11,667 units; make it in-house
Answer:
The Academic Company mixes and bottles a high-energy beverage in various container
types and sizes for college students. The aggregate forecast for the next four quarters (1
year) in thousands of gallons is as follows:
Table 1
Academic’s management makes the following assumptions:
Each employee works 550 standard hours of regular time each quarter.
On average, it takes 27 hours to produce and package 1 unit (1,000 gallons).
Regular-time labor costs $6.00/hour; overtime labor costs $9.00/hour.
Inventory-holding cost is approximately $4.50/unit (1,000 gallons) per quarter based
upon the ending inventory per quarter.
Because of extremely hot weather, there is no beginning inventory available to start
Quarter 1.
Management wants a constant work force (no hiring or firing).
Managers have also decided to always round up the number of employees needed to
the next whole integer, i.e., 37.2 yields 38 employees.
______________________________________________________________________
________
Using the data in Table 1, if management will allow a maximum of 30 percent
overtime, how many workers are needed for Quarter 3?
a. 29
b. 33
c. 35
d. 40
Answer:
A company is using Kanban containers. There are two adjacent work centers, a
downstream (using) and an upstream (producing) center. The using work center has a
production rate of 200 parts per day and each container holds 20 parts. It takes 0.5 days
for a container to make the entire cycle from the time it leaves the upstream center till it
is returned, filled with production, and leaves again. The manager wants a safety factor
(α) of 20 percent. The company is interested in reducing the number of containers.
a. What is the number of containers currently in use?
b. If the number of parts a container holds is increased to 24 parts, how many containers
are needed?
c. If the company wants the number of containers (holding 20 parts each) to be 5, what
must the safety factor become?
Answer:
A local manufacturer produces two different products on the same production line.
Product A requires 0.5 hours of labor while Product B requires .8 hours of labor. The
total labor available in any one week is 600 hours. The production manager has just
developed the following weekly production schedule. Identify the weeks in this
schedule where the production system will be overloaded or underloaded.
Answer:
Which one of the following statements about sustainability is TRUE?
a. The three dimensions of sustainability are environmental, social, and technological.
b. Economic sustainability focuses solely on the quality levels of physical goods.
c. Sustainability applies to goods-producing organizations only.
d. Sustainability practices can improve productivity and eliminate waste.
Answer:
You are responsible for managing a project with the following activities (times are
given in weeks):
If activity D is delayed by 2 weeks, which one of the following statements is TRUE?
a. There are now two critical paths in the network.
b. The slack time for activity D changes to 1 week.
c. The project completion time is still 12 weeks.
d. The project completion time becomes 16 weeks.
Answer:
Supreme Redeem, Inc. plans to open a large manufacturer’s rebate processing center.
Supreme has narrowed the potential sites to three locations. Data for each location are
provided in the following table. (A score of 1 is least favorable and 5 is most favorable.)
Which location should be chosen, based on total weighted score?
a. Phoenix
b. Miami
c. Detroit
d. None of the above
Answer:
A furniture manufacturer has an order for 20 custom wine cabinets for a large hotel in
Hawaii. It is estimated that the first cabinet will take 100 hours of shop time. An 85
percent learning curve is expected. The labor rate is $12.00 per hour. The pricing policy
is to charge two times the labor cost for the order.
a. How many hours will the 20th wine cabinet take?
b. How many hours should the whole order take?
c. What is the price of each cabinet?
Answer:
A guest at Raphael’s Four-Star Italian Restaurant generally spends $150 on a meal.
Most of Raphael’s customers are from nearby localities and eat at the restaurant twice a
month. If the restaurant’s margin is 60 percent, and a loyal customer is estimated to be
worth $4,000, determine the average defection rate.
a. Less than or equal to 0.15
b. More than 0.15 and less than or equal to 0.20
c. More than 0.20 and less than or equal to 0.25
d. More than 0.25
Answer:
A paint company has the following aggregate demand requirements and cost data for
the upcoming year by quarter.
Table 2
Using the data in Table 2 and assuming the level strategy, determine the change in
production costs for the year.
a. $0 (none)
b. $35,000
c. $15,000
d. $27,600
Answer:
Ships, weddings, and estate planning are examples of _____ goods and services.
a. make-to-order
b. assemble-to-order
c. make-to-stock
d. continuous flow
Answer:
Which of the following is NOT one of the six customer attributes that impact the design
and configuration of a customer benefit package?
a. Time
b. Information
c. Exchange
d. Reliability
Answer:
A high-paced discount store in Los Angeles notices that checking errors have increased
recently. They plan to use control charts with three standard deviation control limits to
monitor the process. They decide to take a sample of 100 transactions over 10 days. The
number of transactions with errors for each day was 5, 7, 6, 5, 6, 4, 6, 3, 10, and 8.
a. What is the center line for the p-chart?
b. What is the upper control limit for the p-chart?
c. What is the lower control limit for the p-chart?
Answer:
Which of the following is NOT a basic function of the Supply Chain Operations
Reference (SCOR) model?
a. Source
b. Make
c. Deliver
d. Control
Answer:
Which of the following enables engineers to design, analyze, test, simulate, and
manufacture products before they physically exist?
a. Computer numerical control (CNC) machines
b. Computer-aided design/computer-aided engineering (CAD/CAE) systems
c. Computer-integrated manufacturing systems (CIMs)
d. Computer-aided manufacturing (CAM) systems
Answer:
Steve, an operations manager at Krypto InfoTech, must set up an assembly line to
assemble a computer mouse. The precedent network given below is defined with task
times in parentheses and stated in minutes. There are 480 minutes of assembly time per
shift and there is one shift. The forecast (output rate) is 60 units per shift. He decides to
use the longest/largest-task-time rule to assign tasks to workstations.
Worksheet for assembly-line balancing problem
The task assigned to the third workstation (called C) using the longest/largest-task-rule
is _____.
a. task 3
b. task 4
c. task 5
d. task 6
Answer:
Which of the following statements regarding Bracket International (BI) case study is
TRUE?
a. BI currently uses RFID to monitor 8,850 items per day at its three factories.
b. RFID scan times are at least ten times faster than bar coding scan times.
c. BI lost its big customer, Home Depot, because it could not respond quickly enough to
their changes in order size and job specifications.
d. The net present value analysis over five years is positive, based on case data.
Answer:
Revenue management system (RMS) consists of all of the following EXCEPT:
a. forecasting demand.
b. allocating perishable assets.
c. deciding when to overbook and by how much.
d. adding peripheral goods.
Answer:
Which of the following is NOT a consideration when designing an appointment
system?
a. Determining the appointment time interval
b. Determining the appropriate sequencing rule
c. Determining the length of each workday and the time off-duty
d. Deciding on an overbooking policy
Answer:
A U.S. motorcycle manufacturer has the option of either making the gas tank in their
newly designed motorcycle, or subcontracting it to a manufacturer from Sinagpore. The
manufacturer expects to produce 1,000 units per year. Costs for the two options are:
A large hotel and casino in Las Vegas is currently under construction. There will be an
Italian restaurant in the hotel that will serve pizza. Management is trying to decide
whether to make the pizza themselves or buy it frozen and simply heat it to customer
order. One major source of commercial-grade frozen pizza is Chun-Yee Corporation. If
they make the pizza themselves a substantial amount of preparation equipment will be
required, along with skilled personnel. Financial data is as shown below (variable costs
are estimated based on an average pizza purchase):
At what volume is the company indifferent to either Chun-Yee or make in-house?
a. Less than or equal to 2,000
b. More than 2,000 but less than or equal to 4,000
c. More than 4,000 but less than or equal to 6,000
d. More than 6,000 but less than or equal to 8,000
Answer:
Steve, an operations manager at Clan Corp. is promoted to manage the process defined
by the four stages A to D below. This process could be human resource management,
marketing, accounting, finance, or engineering process, and Steve is the manager. This
is his chance to impress his boss and get promoted again. After three months on the job,
Steve realizes something is not right with the process. His employees experience big
pile up of work, things take too long to be processed, the opportunity for error is
increasing, and the entire process is almost chaotic. Do a process and capacity analysis
of this process. The numbers in parenthesis(#) are the time inminutes to complete one
unit of work. Demand on the process averages 30 units per hour and each unit must be
worked on by all four stages. Administrative clerk(s) do Stage A work. The assistant
manager(s) are cross-trained to do both Stages C and D work. The coding specialist(s)
do Stage B work.
How many administrative clerks should be hired to do Stage A work, assuming a target
utilization of 85 percent?
a. One
b. Two
c. Three
d. Four
Answer:
The following five jobs, along with their processing time and due dates, are given
below.
Using the earliest due date (EDD) rule, the average lateness for the five jobs is _____.
a. less than or equal to 5 days
b. more than 5 but less than or equal to 10 days
c. more than 10 but less than or equal to 15 days
d. more than 15 but less than or equal to 20 days
Answer:
Gantt charts can be used to:
a. determine the appointment time interval.
b. determine how to handle overbooking for each day of the week.
c. display the two-resource sequencing solution using Johnson’s Rule.
d. display minimizing maximum tardiness.
Answer:
Which of the following is NOT an important factor in service-encounter design?
a. Facility location
b. Customer-contact behavior and skills
c. Service-provider selection, development, and empowerment
d. Service recovery and guarantees
Answer:
Explain the difference between statistical forecasting and judgment forecasting.
Answer:
The shortest processing time (SPT) rule and the earliest due date (EDD) rule will
always provide the same sequence.
Answer:
Face validity can be strengthened by maintaining good communication with the user
during the model development stages.
Answer:
Because of precedence relationships in a network, assembly-line efficiencies will
generally be very high.
Answer:
A disadvantage of a simulation model is that its structuring is highly dependent on the
expertise of the modeler.
Answer:
Explain the concept of quality function deployment (QFD). What is the final step in
building a House of Quality?
Answer:
Define quality at the source.
Answer:
A goal of total productive maintenance is to have zero accidents in the entire life cycle
of an operating system.
Answer:
The Deming philosophy focuses on bringing about improvements in product and
service quality by reducing uncertainty and variability in goods and services design and
associated processes.
Answer:
Define operations management (OM) and describe its scope. What are the three issues
that are at the core of OM?
Answer:
A custom machine shop is able to process 25 orders per day. The average processing
time is 4 days. What is the average number of orders that are in process at any time?
a. Less than 50
b. More than 50 but less than or equal to 100
c. More than 100 but less than or equal to 150
d. More than 150 but less than or equal to 200
Answer:
Offshoring is the process of moving operations back to a company’s domestic location.
Answer:
Services can be moved, stored, and repaired, and generally require physical skills and
expertise during production.
Answer:
Define the economic order quantity (EOQ) model and explain its major assumptions.
Answer:
Explain and differentiate between the characteristics of a project, job shop, flow shop,
and continuous flow process.
Answer:
Ergonomics is the science that is concerned with determining specific job tasks and
responsibilities.
Answer: