Question 1. Which of the following factors account for the interest in organizational management?
a) Quality improvements
b) Current problems/opportunities
c) Inventory costs
d) Customer satisfaction
e) All of the above
Question 2. Operations management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.
a) True
b) False
Question 3. What is one reason for failure in project scheduling?
a) Inadequate training
b) Incomplete project
c) Lack of diversity in team members
d) Lack of management support
e) Chaos theory
Question 4. _______________ can be defined as planning, directing, and controlling resrouces to meet technical, cost, and time constraints.
a) Configuration management
b) Process analysis
c) Project management
d) Process improvement
e) Riddle's law
Question 5. The radical change paradigm, introduced by Michael Hammer and major consulting firms, is referred to as:
a) Total quality management
b) Synchonous manufacturing
c) Electronic enterprise
d) Manufacturing strategy paradigm
e) Business process reengineering
Question 6. A company that can offer on-site repair in only 1 or 2 hours is an example of a company that is competing on ____________ competitive dimension.
a) Flexibility
b) Process quality
c) Coping with changes in demand
d) Deliver reliability
e) Delivery speed.
Question 7. The main objectives of manufacturing strategy are:
a) Translating required competitive dimensions into specific performance requirements for operations.
b) Making the necessary plans to assure that operations capabilities are sufficient to accomplish performance requirements.
c) Converting order winners into specific performance requirements
d) All of the above
e) Both A and B only
Question 8. A resource that limits the capacity for maximum output of a process is a:
a) Block
b) Starve
c) Bottleneck
d) Process improvement
e) None of the above
Question 9. Quality function deployment is a tool used to identify:
a) Customer requirements
b) Process improvements
c) Quality
d) Cost factors
e) Lead time issues
Question 10. _____________ is the philosophy of continually seeking improvements in a process through the use of team efforts.
a) Continuous improvement
b) Quality control
c) Performance quality
d) Existentialism
e) Conformance quality
Question 11. What is the inherent value of a product in the market place?
a) Conformance quality
b) Performance quality
c) Six Sigms
d) Cost
e) Design quality
Question 12. ________________ is managing the entire organization so that it excels on all dimensions or product and services that are important to the customer.
a) TQM
b) SRC
c) Six Sigma
d) Cost
e) Design quality
Question 13. Manufacturing is involved in what phases of the product design process?
a) Concept Development
b) Production ramp-up
c) Initial Planning
d) Concept Development
e) All of the above
Question 14. ________________ is when the activities in the stage must stop because there is no place to deposit the item just completed.
a) Buffering
b) Blocking
c) Starving
d) Bottleneck
e) None of the above
Question 15. Delay of the process step that differentiates a product as late in the supply chain as possible is called:
a) Delayed delivery
b) Design logistics
c) Fast tracking
d) Mass customization
e) Process postponement
Question 16. ____________ is a measure a firm can use to determine how close it is to its best operating level.
a) Capacity efficiency rate
b) Economic scope
c) Average aggregation rate
d) Capacity utilization rate
e) All of the above
Question 17. Variability in demand magnified as we move from the customer to the producer in the supply chain is called:
a) Cause and effect
b) Push system
c) Bull Whip effect
d) Pull system
e) None of the above
Question 18. The seven elements that address the elimination of waste include all of the following except:
a) Group Technology
b) Uniform plan loading
c) Minimize set up
d) Quality at the source
e) Large Batch Process
Question 19. Supply chain strategy concepts are applicable to what types of companies?
a) Manufacturing
b) Services
c) Restaurants
d) Airlines
e) All of the above
Question 20. Consider the following data from a company annual report:
Sales 1,000,000
Cost of Goods Sold 800,000
Raw Materials Inventory 100,000
Finished Goods Inventory 75,000
Work-in-process 25,000
The inventory turnover rate for this company is:
a) 4.0
b) 8.0
c) 10.67
d) 32
e) 2.0
Question 21. Which of the following is not true about JIT systems?
a) The JIT system is based on the philosophy of eliminating waste and utilizing the full capacity of the worker.
b) Under JIT the ideal lost size is one.
c) JIT is typically applied to repetitive manufacturing
d) The goal of JIT is to drive all inventory queues to a moderate level thus minimizing inventory investment and shortening lead times.
e) All of the above statements are true.
Question 22. ____________ is a type of forecast in which data related to past demand are used to predict the future.
a) Collaborative forecasting
b) Past causal relationships
c) Linear regression forecasting
d) Focus forecasting
e) Time series anlysis
Question 23. The aggregate operations plan is concerned with setting production rates by product group or other broad categories for the intermediate team.
a) True
b) False
Question 24. A simple inventory system includes:
a) Optimal replenishment, Two-bin, order point
b) Order points, Two-bin, One-bin
c) Optimal replenishment, Two-bin, One-bin
d) MRP, Two-bin, One-bin
e) Optimal replenishment, order point, One-bin
Question 25. The bill of material contains all of the following except:
a) Complete product description
b) Listing of materials
c) Listing of components
d) Sequence in which the product is created
e) Transaction files
Question 26. Which of the following statements are true about time-series forecasting?
a) Time series analysis is based on the idea that the history of occurrences over time can be used to predict the future.
b) Time series analysis tries to understand the system underlying and surrounding the item being forecast.
c) Under time-series methods, demand is divided into the time-based components such as daily, weekly, etc.
d) Time series methods are useful for long-range forecasts when the demand pattern is erratic.
e) A, B, and C.
Question 27. Given that the previous forecast of 65 turned out to be four units less than the actual demand and next forecast is 66, what would be the value of alpha if the simple exponential smoothing forecast method is used?
a) 0.02
b) 0.4
c) 0.04
d) 0.25
e) None of the above
Question 28. Which MRP system input element specifies how many and when the firm plans to build each end item?
a) Inventory records file
b) Bills of material
c) Master production schedule
d) Capacity planning
e) None of the above
Question 29. Fundamental MRP II questions include all of the following except:
a) What are we going to make?
b) What does it take to make it?
c) What do we have?
d) What do we have to get?
e) Who needs it?
Question 30. A bottleneck is defined as any resource whose capacity limits throughput in the production line.
a) True
b) False
Question 31. Disadvantages of capacity simulation include all of the following except:
a) Simulation can be used as a game for training experience.
b) A significant amount of computer time may be needed to run complex models.
c) A great deal of time and effort typically is spent to develop a model for the simulation.
d) The technique of the simulation, while making progress, still lacks a standardized approach.
e) Still require work in process when used with Kanban.
Question 32. JIT drawbacks include all of the following except:
a) Limited to repetitive manufacturing
b) Stable production level
c) Limited flexibility in products produced
d) Vendors do not need to be located nearby
e) Still require work in process when used with Kanban.
Question 33. A _________approach actually schedules in detail each resource using the setup and runtime required for each order.
a) Infinite loading
b) Finite loading
c) Forward scheduling
d) Backward scheduling
e) None of the above
Question 34. Johnson's rule is a sequencing rule used for scheduling any number of jobs on two machines.
a) True
b) False
Question 35. If there is a no bottleneck, then excess capacity exists and the system should be changed to create a bottleneck.
a) True
b) False