Part 1
Question 1
In what area does General Motors earn its highest return on capital?
selling cars
selling logo merchandise
financing
selling racing
post-sales parts and service
Question 2
A key feature of scientific management is that workers are limited only by __________.
machinery
co-workers
their job description
their tools
their physical ability
Question 3
Decisions regarding which of the following are not part of the production process structure?
management policies
facilities
robots
flow of goods and services through the facility
flexible manufacturing system (FMS) machines
Question 4
Suppose that a plant has a daily productivity of 0.85 parts per employee? What can we conclude?
the plant must be very labor-intensive
the plant is not earning profits
the plant must be highly automated
the plant should lay off workers
nothing
Question 5
Highly labor intensive services are called _____________ .
pure services
mixed services
mixed manufacturing
quasi-manufacturing
quasi-services
Question 6
What is a type of automation system that provides the flexibility of intermittent operations with the efficiency of repetitive operations?
CAD
AGV
AS/RS
FMS
CAM
Question 7
Which of the following is not an argument in favor of having multiple suppliers?
The Just-in-time philosophy can be better utilized.
Supplier capacity is less important.
Volume flexibility is obtained.
Risks may be spread.
New suppliers may more easily be tested.
Question 8
A constant concern within purchasing departments is the issue of ethics in managing _______________.
customers
web sites
inventory
suppliers
entry-level employees
Question 9
Increases in international trade during the 1980s created a need for the development of ____________ standards of quality.
universal
country-specific
lower
metric
bilingual
Question 10
For a cause-and-effect diagram, causes could be related to all of the following except
Analysis
Materials
Measurements
Machines
Workers
Question 11
What are preset ranges of acceptable quality characteristics?
Control limits.
Product specifications.
Six-sigma limits.
AQC limits.
R-chart limits.
Question 12
What measures the central tendency of a set of data?
Coefficient of variation
Variance
Standard deviation
Mean
Range
Question 13
Causes of variation that can be identified and eliminated are called what?
Random
Assignable
Identifiable
Stochastic
Common
Question 14
What are the two types of control charts for attributes?
p and c
x-bar and p
x-bar and R
R and c
p and R
Question 15
The Six Sigma approach is organized around a _______ plan known as ________.
four step, PDAC
four step, DMAC
five step PDACR
five step DMAIC
five step, DMCRA
Question 16
With JIT a company's relationship with its suppliers includes
Competitive bidding
Being in partnership with them
Buying parts from the cheapest supplier
Short-term relationships
Having as many suppliers as possible
Question 17
Quality in just-in-time is centered on building quality into the
Product
Maintenance of equipment
Process
Distribution system
Workforce
Question 18
What is the term for an adjustment of a machine after making one product type so that production can begin for another product type?
Level assembly schedule
Group technology
Setup
Cycle time
Automation
Question 19
One of the greatest benefits of JIT would be
increasing waste and improving responsiveness
longer lead times and increased productivity
decreased machine utilization and improved quality
competing based on schedules
eliminating waste, improving responsiveness and competing based on time
Question 20
The role of production employees in JIT includes all of the following except
Be actively engaged in improving the production process
Monitor quality
Record data
Follow clearly defined and limiting work rules
Act on the information they have
Question 21
The OM supervisor informs you, the researcher, that the data has a large standard deviation. What data pattern would you expect to observe once you generated a time series trend?
horizontal
seasonal
positive/negative trend
cycle
insufficient information to derive a valid response
Question 22
Which of the following is a causal forecasting method?
Naïve
Moving average
Weighted moving average
Trend adjusted exponential smoothing
Linear regression
Question 23
What does the linear regression line do?
Minimizes sum of errors
Minimizes product of squared errors
Minimizes sum of squared errors
Minimizes product of errors
Minimizes sum of absolute value of errors
Question 24
Qualitative forecasting methods
are made objectively by the forecaster
are made subjectively by the forecaster
are made using existing data sources
are based on mathematical models
are only used in parallel with quantitative models
Question 25
Suppose that you are using the four-period simple moving average method to forecast sales, and sales have been decreasing by 10% every period. How will your forecasts perform?
Forecasts will be lower than actual.
Forecasts will be higher than actual.
Forecasts will equal actual.
Forecasts will be increasing.
Forecasts will be decreasing by 2.5% every period.
Part 2
Question 1
Operations management personnel perform a variety of functions, including all of the following except ___________________.
analyzing production problems
analyzing potential mergers
developing forecasts
developing employee schedules
monitoring inventory
Question 2
Which of the following concepts is linked the least with Henry Ford?
scientific management
mass production
mass customization
technology
interchangeable parts
Question 3
What are the two key components of the operations strategy of Federal Express?
they own their own fleet of tractor trailers, and they use a sophisticated bar code technology
they own their own fleet of tractor trailers, and they have a large warehouse in every state
they own their own fleet of airplanes, and they have a large warehouse in every state
they use a sophisticated bar code technology, and they have a large warehouse in every state
they own their own fleet of airplanes, and they use a sophisticated bar code technology
Question 4
A manager has just replaced three workers with a machine that is cheaper to operate than the cost of the three replaced workers. Output is expected to remain the same. Which of the following is true?
labor productivity will decrease
machine productivity will increase
multifactor productivity will decrease
multifactor productivity will increase
the value of output will decrease
Question 5
Which type of operational function represents an Assemble-to-Order?
wedding invitations
corporate training
vacation packages
airline flights
legal services
Question 6
Vertical integration is a good strategic option for a manufacturing company when
it uses distributed processing
it needs one input material in large volumes
its facilities are obsolete
it needs several different parts and subassemblies
it makes many different products
Question 7
Which of the following is least likely to be a benefit of implementing barcode scanners at retail store checkout registers?
Improved forecasting
More efficient packaging of customer orders
Improved inventory control
Faster checkout for customers
More accurate checkout for customers
Question 8
Which type of technology provides "point-of-sale information?"
Automatic guided vehicles (AGV)
Automatic storage and retrieval systems (ASRS)
Barcode scanners
Flexible manufacturing systems (FMS)
Computer aided design/computer aided manufacturing (CAD/CAM)
Question 9
Which of the following is not attributed to Philip Crosby?
The concept of the quality trilogy
The phrase "Do it right the first time."
Stressed the idea of prevention of defects
The notion of zero defects
The phrase "Quality is free."
Question 10
The Japanese term for continuous improvement is
Poka-yoke
Kaizen
Kanban
Muda
Automation
Question 11
P-charts are used to measure:
continuous variation
intermittent random variation
proportion of items in a sample that is defective
the count of defective parts
proportion of items in a sample that are good
Question 12
What is a graph that shows the probability or chance of accepting a lot given various proportions of defects in the lot?
S curve
Z-chart
OC curve
p-chart
R-chart
Question 13
Six-sigma quality implies how many average defects per million?
3.4
6
2600
3σ
6σ
Question 14
The range is an example of what?
Traditional statistical tools
Fishbone diagramming
Acceptance sampling
Experimental design
Statistical process control
Question 15
Single sampling plan is when
a non-random sample is drawn from every lot.
a random sample is drawn from every lot.
a second lot is sampled due to the first sample inconclusive results.
only one time is tested.
a sample plan used once and discarded
Question 16
The ultimate goal of JIT is to produce products in a lot size of
100 or fewer
N = (DT(1+X))/C
The inverse of the carrying cost
One
The capacity of the factory
Question 17
JIT is often mistakenly assumed to
refer to the final assembly schedule only
dictate the product standards specification
refer to only just-in-time manufacturing
be a core element of ISO 9000 requirements
be driven by the finance department long range spending plan
Question 18
The manufacturing process in JIT starts with the
final assembly schedule
schedules for individual machines
vendor deliveries
prioritization of lots
forward scheduling
Question 19
JIT is a __________ system.
Pull
Push
Lead time
Preventive maintenance
Closed
Question 20
_________ are groups of workers who are responsible for every aspect of their business.
Focus teams
Staff departments
Partnerships
Self-managed teams
Negotiators
Question 21
Which of the following is not a step in Forecasting Seasonality?
Calculate a seasonal index for each season of each year
Divide this year's average seasonal demand by each average seasonal index
Average the indexes by season
Forecast demand for the next year and divide by the number of seasons
Calculate the average demand per season
Question 22
A causal research model is based on the assumption that
the independent variable is related to the dependent variable
there is a relationship between the time series and the dependent variable
the variable being forecast is related to other variables in the environment
there is a relationship between the time series and the independent variable
the information is contained in a time series of data
Question 23
Which of the following is a causal forecasting method?
Naïve
Moving average
Weighted moving average
Trend adjusted exponential smoothing
Linear regression
Question 24
One quantitative forecasting models limitation is
it is objective
they are consistent
they are based on mathematical formulas
they are limited on the quality of available data
they can work around bad data
Question 25
What is a tracking signal used for?
To identify trends in actual data
To identify seasonality in actual data
To identify the effect of business cycles on actual data
To compute the value of the smoothing constant, α, for exponential smoothing
To identify forecast bias
Part 3
Question 1
What measures the central tendency of a set of data?
Coefficient of variation
Variance
Standard deviation
Mean
Range
Question 39
Consider a p-chart measuring the percentage of defective light bulbs. If the LCL is .04 and a sample has 1% defects, what is the implication?
The process is in a state of control.
The process is out of control even though the variation is "good."
The value of sigma must be increased.
The process has too many errors.
A calculation error must have occurred.
Question 16
An OC curve is an example of what?
Traditional statistical tools
Fishbone diagramming
Acceptance sampling
Experimental design
Statistical process control
Question 25
On a control chart, what separates common from assignable causes of variation?
x-bar lines
Control limits
Specification limits
Production limits
Mean divided by standard deviation
Question 41
What are preset ranges of acceptable quality characteristics?
Control limits.
Product specifications.
Six-sigma limits.
AQC limits.
R-chart limits.
Chapter 7
Question 26
According to JIT, __________ is carried to cover up a wide variety of problems, such as poor quality, demand uncertainty, and slow delivery.
Inventory
Excess capacity
A group of back-up workers
Spare equipment
Insurance
Question 65
Which of the following is not a role of JIT management?
creating a JIT culture
cost and information sharing
serving as coaches and facilitators
developing an incentive system
ensuring multifunctional training occurs
Question 36
JIT uses a pull system where communication starts with either the customer or with the _________ work station in the production line.
First
Bottleneck
Dominant
Most expensive
Last
Question 61
JIT production workers are expected to
Cover up quality problems
Ignore data
Take responsibility in getting to the root cause of quality problems
Blame problems on someone else
Have a poor attitude about quality
Question 70
The benefits of long-term relationships with a small number of suppliers include all of the following except
Always getting the lowest price
Focus on improving process controls
Greater accountability
Develop stable delivery schedules
Eliminate paperwork
Chapter 8
Question 1
Forecasting is not a function which contributes to:
deciding which business market to pursue
deciding which product to produce
deciding how bonuses should be allocated
deciding how much inventory to carry
deciding how many people to hire
Question 10
Which forecasting method is particularly good for predicting technological changes and scientific advances?
Market research
Executive opinion
Delphi method
Naïve method
Gamma method
Question 30
What are the most frequently used forecasting techniques?
Linear regression
Simple mean
Exponential smoothing
Weighted moving average
Econometric models
Question 17
Which of the following is a causal forecasting method?
Naïve
Moving average
Weighted moving average
Trend adjusted exponential smoothing
Linear regression
Question 74
"Inside information" is most likely garnered through which of the following forecasting methods?
exponential smoothing
seasonal indexes
naïve
Delphi
multiple regression
Chapter 9
Question 56
The least likely reason for a U.S. firm to choose to locate a factory in a foreign country is _____________.
climate
natural resources
markets
cheaper suppliers
lower labor costs
Question 55
Issues that need to be considered in location globally include all of the following except______________.
different cultures
FEC accounting requirements
language barriers
different laws
different business practices
Question 6
Capacity planning is complicated by the fact that ___________________.
capital markets are complex
existing facilities may become obsolete
capacity is difficult to define
capacity is usually purchased in chunks, rather than smooth increments
depreciation must be calculated
Question 44
Service organizations such as restaurants, movie theaters, and banks focus on locating near ____________.
suppliers
roads
intersections
their customers
potential workers
Question 25
Management has decided to add capacity incrementally in smaller chunks as needed, rather than purchasing one large facility. This decision ____________________.
is very risky
will result in low initial costs
will ultimately result in lower costs per unit if demand increases rapidly
positions the company to be well prepared for high demand in the future
can lead to a large amount of excess capacity
Chapter 10
Question 34
The first step in designing a layout is
identifying the facility
gathering information
selecting the correct layout software package
developing a REL chart
developing a from-to matrix
Question 65
What is the term for a system in which the product being worked on is physically attached to the line and automatically moved to the next station when the cycle time has elapsed?
cyclical line
paced line
autoline
continuous line
constrained line
Question 4
Which of the following is not one of the four basic layout types?
product
hybrid
process
fixed position
inverted
Question 27
Which company is widely considered to be the leader of just-in-time production?
Ford
Timex
Gateway
Toyota
Sony
Question 24
A high-volume paper mill is an example of which layout type?
inverted
circular
process
fixed position
product
Part 4
Question 1
In six-sigma programs, individuals who have extensive training in the use of technical tools and are responsible for carrying out the implementation of Six Sigma are __________________.
black belts
green belts
blue belts
red belts
white belts
Question 2
Suppose that you want to measure the percentage of candles that are cut longer than 9 inches. Which control chart would be appropriate?
x-bar chart
c-chart
OC chart
p-chart
R-chart
Question 3
A process chart is a
graph that shows how the population was evaluated
graph of the population failures
graph that shows whether a sample of data falls within assignable causes
graph that show whether a sample falls within the common or normal range
table showing final inspection results
Question 4.
A c-chart is an example of what?
Traditional statistical tools
Fishbone diagramming
Acceptance sampling
Experimental design
Statistical process control
Question 5
Consider a p-chart measuring the percentage of defective light bulbs. If the LCL is .04 and a sample has 1% defects, what is the implication?
The process is in a state of control.
The process is out of control even though the variation is "good."
The value of sigma must be increased.
The process has too many errors.
A calculation error must have occurred.
Question 6
Which of the following is not a good approach for suppliers who are providing JIT services to manufacturers?
Use the "push system" for deliveries
Locate near their customers
Have small warehouses near the manufacturing plant
Use standardized containers
Join together with other suppliers to help each other make small deliveries
Question 7
By focusing on __________ processes, JIT is able to achieve high-volume production of high-quality, low-cost products.
downstream
upstream
change-over
gateway
value-added
Question 8
JIT uses a pull system where communication starts with either the customer or with the _________ work station in the production line.
First
Bottleneck
Dominant
Most expensive
Last
Question 9
One aspect of flexible resources is
Use of multifunction workers
Relying on special equipment
Use of overtime
Leasing, rather than buying, equipment
Variable work schedules
Question 10
The philosophy of JIT
Originated in Japan
Was operational at Henry Ford's complex in 1920's
Is a production planning system
Has received little attention in the US
Focuses on direct control of worker activities by management
Question 11
Which of the following is not a feature common to all forecasting models?
This period's forecast error is needed to compute next period's forecast.
Forecasts are rarely perfect.
Forecasts are more accurate for groups of items rather than for individual items.
Forecasts are more accurate for shorter rather than for longer time horizons.
All of the answer choices are correct.
Question 12
What is a tracking signal used for?
To identify trends in actual data
To identify seasonality in actual data
To identify the effect of business cycles on actual data
To compute the value of the smoothing constant, α, for exponential smoothing
To identify forecast bias
Question 13
Which forecasting method is particularly good for predicting technological changes and scientific advances?
Market research
Executive opinion
Delphi method
Naïve method
Gamma method
Question 14
____________________ is a collaborative process between two trading partners that establishes formal guidelines for joint forecasting and planning.
Collaborative Planning Forecasting and Replenishment (CPFR)
Supply Chain Planning Forecasting and Replenishment (SCPFR)
Supply Chain Optimization (SCO)
Collaborative Creation of Guidelines (CCG)
Joint Planning and Forecasting (JPP)
Question 15
Combined forecasting involves a rule that
you must work with different vendors
you need different forecasters
you must always use a quantitative and qualitative method
the results are not comparable to a single forecast
the forecasting methods should be different
Question 16
Which of the following is least likely to be a consideration in facility location?
the design of the production process
mistakes in choosing a location can be difficult to correct
often there are a number of acceptable locations
expanding capacity at a current location may be an option
location decisions can have a major impact on operating costs and revenues
Question 17
_____________________ can perform a number of tasks to help a company focus on its core capabilities.
A plant within a plant
Agile manufacturing
Total Quality Management
Just-In-Time
Subcontractor networks
Question 18
The first step in the factor rating method for evaluating location alternatives is what?
select a scale by which to evaluate each alternative relative to each factor
evaluate each alternative relative to each factor
select the alternative with the highest score
identify dominant factors
assign weights to factors reflecting the importance of each factor relative to the other factors
Question 19
Management has decided to add capacity incrementally in smaller chunks as needed, rather than purchasing one large facility. This decision ____________________.
is very risky
will result in low initial costs
will ultimately result in lower costs per unit if demand increases rapidly
positions the company to be well prepared for high demand in the future
can lead to a large amount of excess capacity
Question 20
Location decisions are particularly important because __________________________.
typically they are made rather frequently
they entail a high cost, short-term commitment
there are so many potential locations
they have a major impact on product design
they can have a large impact on operating costs and revenues
Question 21
What is the term for a system in which the product being worked on is physically attached to the line and automatically moved to the next station when the cycle time has elapsed?
cyclical line
paced line
autoline
continuous line
constrained line
Question 22
A grocery store is most like which of the following layout types?
inverted
circular
process
fixed position
product
Question 23
Warehouse layouts have the key characteristics of process layouts except
number of loads is not a design consideration
location isn't a major consideration
there is movement between the storage areas
from trips are the only consideration
there is no movement between the storage areas
Question 24
A company with a pure continuous processing system is most likely to use which layout type?
inverted
product
process
fixed position
hybrid
Question 25
Which of the following production line shapes is least likely to be found in a factory?
N
S
U
O
L