QUESTION 1
1. If a firm achieves a high level of both design quality and conformance quality, this will be sufficient to ensure that its products are rated as high quality by consumers.
True
False
1 points
QUESTION 2
1. In a time study, the normal time could either be longer or shorter than the observed time, depending on the value of the performance rating.
True
False
1 points
QUESTION 3
1. Any service process that has a “line of visibility” would be characterized as a “line process” rather than a “batch process” or “job process”.
True
False
1 points
QUESTION 4
1. When scheduling a set of jobs on a single machine, the mean flow time per job for the set of jobs can vary depending upon how the jobs are sequenced.
True
False
1 points
QUESTION 5
1. When several systems operate in series, total system capacity is the largest value of the individual system capacities.
True
False
1 points
QUESTION 6
1. High contact services are usually less efficient than low contact services.
True
False
1 points
QUESTION 7
1. If the reorder point for an inventory item with normally distributed demand is set equal to the average demand during the lead time (thus, no safety stock is carried), the service level (defined as the percent of order cycles in which all demand is met from stock) for the item will be 100%.
True
False
1 points
QUESTION 8
1. All jobs will follow the same path through the factory in a cellular manufacturing layout.
True
False
1 points
QUESTION 9
1. A company that receives bulk shipments of a variety of tools (screwdrivers,hammers, wrenches, etc.) at a warehouse and then puts a collection of different tools into empty toolboxes before shipping the filled toolboxes to a retailer is practicing the supply chain strategy of postponement.
True
False
1 points
QUESTION 10
1. The cost associated with scrapping or repairing defective items identified as such during the manufacturing process is classified as an internal failure cost when assessing the cost of quality.
True
False
1 points
QUESTION 11
1. Enterprise resource planning (ERP) systems, such as SAP’s R/3, consist of a comprehensive set of application modules, with a separate database for each module, so that each functional area of the business can operate independently from the other functional areas.
True
False
1 points
QUESTION 12
1. A manager using simple exponential smoothing will decrease the smoothing constant alpha to decrease the responsiveness of the forecast.
True
False
1 points
QUESTION 13
1. Using the SPT (shortest processing time) rule for prioritizing jobs in a manufacturing facility with eleven work centers will guarantee that the mean flow time per job will be minimized.
True
False
1 points
QUESTION 14
1. A wedding photographer taking photos of the happy couple at a variety of locations prior to their wedding would be classified as a reactive system on the service system design matrix.
True
False
1 points
QUESTION 15
1. The minimum possible completion time for a project is determined by the average (mean) length of the various paths through the network of activities.
True
False
1 points
QUESTION 16
1. It is possible to have MAD > 0 and Bias < 0 at the same time.
True
False
1 points
QUESTION 17
1. Quality standards generally are more difficult to establish in service operations than in manufacturing operations.
True
False
1 points
QUESTION 18
1. One disadvantage that PERT has relative to CPM is that constant activity times can not be represented in a PERT network.
True
False
1 points
QUESTION 19
1. One of the keys to successful JIT implementation is to increase production lead times to give workers more time to do the job right.
True
False
1 points
QUESTION 20
1. Kanban is the name given to an effective production control system using simple signaling systems to control the flow of production.
True
False
1 points
QUESTION 21
1. One of the key philosophies behind the lean production approach, as developed by the Toyota Production System, is elimination of waste. Which of the following situations does not represent a category of waste in a production system that should be eliminated?
A. Making more products than are needed to meet demand.
B. Moving a product multiple times between storage and the production floor without adding value or making changes to the product.
C. Producing products with defects that will need to be fixed before the product can be shipped to a customer.
D. Paying full-time workers a higher wage than would be needed to staff production positions using less expensive part-time, temporary workers.
E. Keeping a six-month supply of inventory on hand so that you won’t run out, even though the product can be ordered from a reliable supplier with only a three day procurement lead time.
2 points
QUESTION 22
1. The following table lists the anticipated profits of four operations under three scenarios. Based on a maximin strategy, what plan should be chosen?
Options Low Demand Medium Demand High Demand
Plan A 110 160 200
Plan B 120 130 160
Plan C 145 110 165
Plan D 140 100 155
2.
A. Plan A
B. Plan B
C. Plan C
D. Plan D
2 points
QUESTION 23
1. The following table lists the anticipated profits of four operations under three scenarios.
Options Low Demand Medium Demand High Demand
Plan A 110 160 200
Plan B 120 130 160
Plan C 145 110 165
Plan D 140 100 155
2.
3. For the situation given in the table above (same data as question #22), assume that the probabilities of the outcomes are known to be a 60% chance of low demand, 20% chance of medium demand, and 20% chance of high demand. Using theexpected value criterion, which plan should be chosen?
A. Plan A
B. Plan B
C. Plan C
D. Plan D
2 points
QUESTION 24
1. Decision makers in queuing (waiting line) situations attempt to balance
A. the service rate against the arrival rate.
B. operating characteristics against the arrival rate.
C. the number of units in the system against the average customer waiting time.
D. service levels (such as average customer time spent in the system) against service cost.
2 points
QUESTION 25
1. Outsourcing can be used to permit organizations to focus on their core competencies by
A. acquiring ownership of a supplier of key components.
B. tracking the flow of products throughout the supply chain by using bar coding technologies.
C. identifying products with the highest value density.
D. increasing the level of control a company has over the cost of the items it makes.
E. purchasing goods and services from outside the company that were formerly provided within the company.
2 points
QUESTION 26
1. An electronic monitoring unit averages 3000 hours of operation between failures. When a failure occurs, the unit must be diagnosed and then serviced (repaired). The company making the unit has just developed a process that cuts the time required for diagnosis and repair in half. In terms of the dimensions of quality, their new repair process has improved
A. maintainability and availability.
B. reliability and availability.
C. durability and reliability.
D. maintainability and reliability.
E. none of the above
2 points
QUESTION 27
1. Given the following set of jobs waiting to run on a machine, use the Slack (least slack time remaining) dispatching rule to sequence the jobs.
Job Days Until Due Date Processing Time
A 35 30
B 27 17
C 33 20
D 41 25
A. A,B,C,D
B. B,C,D,A
C. C,A,B,D
D. B,C,A,D
E. none of the above
2 points
QUESTION 28
1. Sales in January, February, and March were 300, 250, and 350, respectively. The forecast for March was 300. Using simple exponential smoothing with ? = 0.4, what is the forecast for April?
A. 200
B. 320
C. 300
D. 340
E. none of the above
2 points
QUESTION 29
1. A one-hour film processing store has a single machine that processes film as it arrives. The mean arrival rate of film is 60 rolls per hour and follows a Poisson Distribution. The mean service rate (development rate) of the film is 80 rolls per hour and follows an Exponential Distribution. What is the mean number of rolls of film that are in the store, waiting to be processed? (This does not include any film that is currently being processed on the machine.)
A. 20
B. .75
C. 4.25
D. 6.125
E. none of the above
2 points
QUESTION 30
1. Which of the following outcomes will occur if a firm reduces the level of its safety stock for an item kept in inventory?
A. Inventory holding costs for the item will be reduced.
B. The optimal order quantity for the item will be reduced.
C. The service level for the item will be reduced.
D. All of the above (a, b, and c) will occur.
E. Both (a) and (c) will occur.
2 points
QUESTION 31
1. In order to improve productivity, a manufacturing operation using a dual card kanban production control system might
A. simultaneously employ an MRP system to better control production scheduling.
B. instruct workers to increase the utilization of equipment by producing whenever there is time to do so, under the assumption that it eventually will be needed.
C. deliberately remove kanban from the system in order to uncover and then correct problems hidden by excess buffer inventory somewhere in the factory.
D. all of the above actions (a, b, c) would be taken to improve productivity when using a kanban production control system.
2 points
QUESTION 32
1. A time study has determined that the standard time for a job is 5.0 minutes per unit produced. If a worker produced 120 units in an eight-hour day, what would their day’s pay be if the basic rate was $7 per hour and the premium payment system paid on a 100 percent basis?
A. greater than $100
B. between $75 and $99.99
C. between $65 and $74.99
D. between $55 and $64.99
E. less than $55
2 points
QUESTION 33
1. The reorder point for an item is calculated to be 250 units. Lead time for the item is 2 weeks. If 25 units of the item have just been sold to a customer, which of the following inventory situations should trigger an order?
A. 240 units on hand, with no orders scheduled for delivery from the supplier.
B. 200 units on hand, with an order for 150 units scheduled for delivery next week from the supplier.
C. 90 units on hand, with an order for 150 units scheduled for delivery next week from the supplier.
D. all of the above situations (a,b,c) should trigger an order.
E. both (a) and (c) should trigger an order.
2 points
QUESTION 34
1. Given a situation where a control chart with 3-sigma limits is being constructed to monitor the percentage of defective items produced by a process, if samples of 100 units each are taken from the process and the average percent defective found in the first 10 samples is .06 (6%), what is the upper control limit (rounded to two decimal places) for the process?
A. .06
B. .13
C. .16
D. .18
E. .24
2 points
QUESTION 35
1. In a time study, if the analyst determines that a worker under observation is working at a faster than normal pace, the analyst will use a performance rating (rating factor) that is
A. a negative number.
B. between zero and 1.00 (100%).
C. equal to 1.0 (100%).
D. greater than 1.0 (100%).
2 points
QUESTION 36
1. Compute the required cycle time for a company that operates a production line for 7.5 hours per day with a demand of 8113 items per week (assume a five day work week).
A. .1387 minutes
B. .0277 minutes
C. .0046 minutes
D. .2773 minutes
E. .5600 minutes
2 points
QUESTION 37
1. Which of the following statements (a,b,c,d) about synchronous production (theory of constraints) is not true?
A. The communication system between the bottleneck and the first of the non-bottleneck processes preceding the bottleneck is called the rope.
B. A firm should work to increase throughput while also reducing inventory and operating expenses.
C. Synchronous production paces the entire production process by the bottlenecks.
D. A buffer of inventory should always be maintained immediately after a bottleneck process, to ensure sufficient supply of items produced by the bottleneck.
E. all of the above (a,b,c,d) are true statements about synchronous production
2 points
QUESTION 38
1. One advantage of group technology layout (cellular manufacturing) is that it provides
A. greater flexibility than layout by process (job shop).
B. greater efficiency than the product (flow line) layout.
C. Both of the above (a,b) are advantages of group technology layout.
D. Neither of the above (a,b) are advantages of group technology layout.
2 points
QUESTION 39
1. On a process map of a service system, often referred to as a service blueprint, the line of visibility
A. indicates which part of the operation is most visible to top management.
B. differentiates between activities seen by the customer and activities hidden from the customer.
C. divides the service processes into level 1, level 2, and level 3 maps.
D. identifies which operations have been modified by poka-yokes.
E. None of the above statements (a,b,c,d) describes the role of the line of visibility.
2 points
QUESTION 40
1.
Given the following set of jobs waiting to run on a machine, use the CR (critical ratio) dispatching rule to sequence the jobs
Job Days Until Due Date Processing Time
A 27 17
B 35 20
C 33 30
D 41 25
A. A,B,C,D
B. A,C,B,D
C. C,A,D,B
D. C,A,B,D
E. None of the above sequences (a,b,c,d) represent the correct CR sequence.
2 points
QUESTION 41
1. An automobile detailing shop has the following jobs waiting to be processed. All jobs (cars requiring detailing) must first be cleaned, then waxed.
Job C1 C2 C3 C4 C5
Cleaning Time 9 3 5 1 8
Waxing Time 6 2 7 6 5
2. a. What processing sequence will minimize the makespan for these jobs?
3. b. What is the minimum makespan for this set of five jobs?
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7 points
QUESTION 42
1. The elements required for successful implementation of the JIT/lean philosophy include reducing setup times, performing preventive maintenance, and achieving high quality (zero defects.) Discuss the problems that might arise when a kanban system (pull system) is used for production control and each of these JIT elements is not present. (In other words, what would happen if a kanban system is being used and there are long setup times, no preventive maintenance, and poor quality?)
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10 points
QUESTION 43
1. From a process known to be in control, 6 samples of 4 units each were taken at random intervals and the units in the samples were weighed. The mean (Xbar) and range (R) for each of the six samples are given in the following table.
Sample Mean Range
1 7.2 0.5
2 7.6 1.0
3 7.1 1.1
4 7.7 1.1
5 7.6 0.6
6 7.4 0.9
a. Calculate the 3-sigma Xbar-chart and R-chart control limits.
b. Calculate the mean (Xbar) and range (R) for the following sample, which was taken from the same process at a later time.
Item number 1 2 3 4
Weight 7.7 8.0 8.2 7.6
Based on this sample and the control chart limits that you calculated in part (a), is the process in control? Why or why not?
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7 points
QUESTION 44
1. A company stocks a component that costs $20 per unit. Annual usage of this item is expected to be 3120 units. The firm is open for business 52 weeks per year, so weekly demand is 60 units per week, with a standard deviation of 20 units. The firm’s cost accountants have estimated that it costs $50 every time an order is placed for more components, and that carrying the item in inventory costs about $10 per unit per year. Past experience with their supplier indicates that the time from ordering more items to receipt of the shipment of those items is 21 days (assume that they are open 7 days per week.)
a. What quantity should be ordered each time? (Assume that the EOQ assumptions apply.)
b. What is the minimum total annual cost (ordering + holding + purchase) for managing this inventory item?
c. If the company decided that their JIT program required frequent small orders and deliveries (assume that this would mean ordering a quantity of 20 units every other day, instead of the EOQ quantity on a less frequent basis), and the costs remain the same as described above, how much higher would the total annual cost be for this item?
d. If a 94% service level is required, what reorder point should be used?
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7 points
QUESTION 45
1. The following table represents the set of activities required to complete a project, along with their time estimates for PERT calculations.
a. Using the data in the table, calculate the expected time (ET) and variance for each activity.
Job number Predecessor Job(s) a m b expected time (ET) variance
A — 5 7 9
B A 3 4 5
C A 2 3 4
D B, C 1 3 5
E C 3 4 11
F D, E 2 4 6
b. [Sketch the network diagram for the project on a sheet of paper. YOU DO NOT HAVE TO SUBMIT THE SKETCH AS PART OF YOUR ANSWER].
c. List each unique path through the network. For example, “A, B, C” would indicate a path consisting of activity A, followed by activity B, which is followed by activity C.
d. Indicate the critical path. (You can do this by inspecting the paths — you do not have to calculate ES, EF, LS, LF.) What is the expected completion time for the project?
e. What is the probability that the project will be completed in 23 days or less?
f. What is the probability that the project will take more than 23 days to complete?
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7 points
QUESTION 46
1. Of the topics that we covered in this course, which one or ones were the most interesting and/or useful to you? Why?
For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
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