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Exams 140
Exams 140
1. Operations Management is attracting increasing attention due to the recent trends in the
industrial world. Which of the following statements correctly represents this recent change?
a. The percentage of the world's output produced by the U.S. has been steadily increasing
since 1960.
b. Compared to the other industrial countries such as Italy and France, the U.S. has a higher
rate of productivity growth since 1960.
* c. Japan is gaining share of the U.S. market not only in smokestack industries, but also in
high-tech industries.
d. Compared to manufacturing industries, the service sectors of the U.S. economy has
enjoyed much faster growth in productivity during recent decades.
e. Third World Countries are more productive than the U.S..
2. Productivity can be increased in a manufacturing environment by:
a. increasing production efficiency by increasing the standard times for jobs.
b. reducing production labor costs and material costs.
c. increasing the number of goods produced while holding all production costs constant.
* d. only (b) and (c)
e. (a), (b), and (c)
3. Which one of the following statements about an FMS is true?
a. Since an FMS does not require a large initial investment, it can be easily installed.
b. An FMS cannot be used with NC or CNC equipment.
c. An FMS is limited to machining operations, since assembly operations are not adaptable to
this type of technology.
* d. An FMS is flexible, due to in large measure its automatic tool interchange capability.
4. The objective of process layout analysis is to:
a. maximize the quantity of items processed through the assembly line
b. balance the line such that each station does equal amounts of work
* c. determine a layout with flexibility in terms of production process
d. a, b, and c are correct
e. none of the above
5. An advantage of the cellular layout is that:
a. specialists with common skills (e.g., welders) are near together so that they can learn from
each other and help each other.
b. it encourages operators to become more specialized and skillful in particular trade instead
of learning just a little about several trades.
c. larger pieces of equipment are usable, which permits economies of scale.
* d. it cuts setup and flow times.
6. Which one of the following systems is most closely related to this quotation:
"All bolts might be assigned to the same part family because they all require the same basic
processing steps regardless of variations in size and shape."
*
a.
b.
c.
d.
Line processing.
GT.
Flexible automation.
FMS
a.
b.
c.
d.
e.
13. Which one of the following statements about capacity expansion is true?
a. The wait-and-see strategy involves large jumps in capacity compared to the expansionist
strategy.
b. The expansionist strategy involves frequent jumps in capacity compared to the wait-andsee strategy.
c. The expansionist strategy is conservative and minimizes risk.
* d. The wait-and-see strategy fits better with competitive priorities emphasizing flexibility,
rather than the larger market share of the low-cost producers.
USE THE FOLLOWING INFORMATION FOR THE NEXT TWO QUESTIONS.
The following sample values represent weight in grams. Center lines for the R-chart and x barchart should be the average of the sample ranges and the average of the sample average,
respectively.
If necessary, Use a table appended at the end of this exam.
Observations Number
Sample _________________________________________
Number 1
2
3
4
5
1
2
3
4
5
10.1
9.7
10.1
9.9
10.4
10.6
9.8
9.5 10.3
10.7
9.2
9.8 10.5
10.1 10.9
9.9
9.9
10.0
10.4
9.9
10.9
10.5
10.1
10.1
10.3
a.
b.
c.
d
e.
Forecast Actual
-------- -----100
75
125
100
100
125
125
125
22.5
-6.25
+6.25
18.75
none of the above
17. If a demand of 600 units is expected for the next year and the seasonal index for the next
quarter is 1.2, then the forecast for the next quarter in the next year is:
(Suppose that there is no trend component in the past data.)
a. 125
b. 150
* c. 180
d. 205
e. 720
18. Determine a forecast for August using a single exponential smoothing model with alpha =
0.2. Assume today is August 1st, and the forecast for July was 50.
Jan 46
Feb 39
Mar 42
Apr 48
*
a.
b.
c.
d.
e.
May 50
June 47
July 53
Aug
36.9
50.6
49.4
52.3
46.4
Number of Patients
-----------------401
380
411
How many patients can be expected in week 4 when single exponential smoothing technique
with alpha of 0.1 is used?
a. 390.21
b. 400.11
c. 410.09
d. 415.23
e. 426.45
22. The Southeast Mfg. Co. is producing two types of products, A and B. Demand forecasts for
the next year and other production-related information are provided in the following table.
Product A Product B
----------------Demand forecast (units/yr)
4000
12000
Batch size (units/batch)
80
150
Standard processing time (hrs/unit)
2.5
2.5
Standard setup time (hrs/batch)
18
24
Both products A and B are produced at the same operation called MASAC.
The company works 250 days every year and operates 1 shifts, each of which covers 8 hours.
how many MASAC machines does the company need in the next year to fully cover the
demand of both products(round up)?
a. less than 17
b. 17
c. 18
d. 19
* e. greater than 19
23. Which quality costs are in the category of costs of non-conformance which are needed to
correct quality problems, such as errors and customer complaints?
* a. internal and external failure costs
b. prevention and appraisal costs
c. internal failure costs and prevention costs
d. external failure costs and appraisal costs
e. internal failure costs and appraisal costs
24. Scrap and rework are examples of
* a. internal failure costs
b. external failure costs
c. costs of dissatisfaction
d. prevention costs
e. societal costs
25. To become ISO 9000 certified, organizations must
a. document quality procedures
b. have an onsite assessment
26. A foundry produces circular utility access hatches (manhole covers). If 120 covers are
produced in a 10-hour shift, the productivity of the line is
a. 1.2 covers/hr
b. 2 covers/hr
* c. 12 covers/hr
d. 1200 covers/hr
e. none of the above
27. Susan has a part-time cottage industry producing seasonal plywood yard ornaments for
resale at local craft fairs and bazaars. She currently works 8 hours per day to produce 16
ornaments. She thinks that by redesigning the ornaments and switching from use of a wood
glue to a hot-glue gun she can increase her total production to 20 ornaments per day.
If she redesigns the ornaments, what will be a percentage increase in her productivity?
a. 10%
* b. 25%
c. 30%
d. 40%
e. 50%
28. If a firm produced 5000 units of product last month using $15000 of energy and $35000 of
labor, then its multifactor productivity measure for energy and labor inputs would be
a. 10.00 units per dollar spent
b. 0.333 units per dollar spent
c. 0.143 units per dollar spent
* d. 0.100 units per dollar spent
e. 0.020 units per dollar spent
a) The level of safety stock maintained is inversely proportional to the desired cycle-service
level.
b) The level of safety stock maintained is inversely proportional to the standard deviation of
demand during lead time.
c) When no safety stock is maintained, stockouts will occur during approximately 50 percent
of the cycles.
d) The level of safety stock maintained is greater if mean absolute deviation (MAD) is used
rather than standard deviation in estimating forecast errors.
6. An inventory system answers two important questions: when to order and how much to order.
Which of the following statements correctly explains how a Q system (continuous review
system) or P system (periodic review system) answers these questions?
a) Under a Q system, a fixed quantity is ordered every P time periods.
b) Under a Q system, an order is placed to replenish the inventory position up to the target
level T when the inventory position reaches the reorder point R.
c) Under a P system, a fixed quantity Q is ordered when the inventory position reaches the
reorder point R.
* d) Under a P system, an order is placed to replenish the inventory position up to the target
level T every P time periods.
7. Which one of following conditions favors a level production planning strategy?
a) The cost of changing the work force levels is low.
* b) Products complementary to the existing product line can easily be produced with the given
facilities.
c) The shelf life of the goods being produced is limited.
d) Inventory holding costs are high.
8. The production planning strategy to be used should be consistent with the environment.
Which one of the following pairs of environment and strategy is consistent?
a) skilled labor in short supply; variable work force levels.
* b) low inventory holding cost; building anticipation inventory.
c) ample labor supply; increase backlog for short-term demand surges.
d) seasonal requirements and ample, unskilled labor supply; subcontracting.
9. Which one of the following statements is true concerning line balancing?
a. The theoretical minimum number of stations must always be less than the actual number
achieved in a final solution.
* b. Increasing the output rate may increase the theoretical minimum number of stations.
c. The longest work-element time method and the largest number of followers method will
never result in the same line station configuration.
d. Selecting the cycle time will have no effect on line efficiency.
10. Which of the following does the Aggregate Production Plan do?
a. It plans and schedules the production of components.
b. It calculates the load for most work centers.
* c. It plans the production of families of products.
d. It calculates loads for critical, bottleneck work centers.
10
1 2 3 4 5 6
---- ---- ---- ---- ---- ---6 7 12 13 8 5
11
18. The total cost of the production plan, using a level strategy where no overtime is allowed, is:
a. less than or equal to $60,000.
* b. greater than $60,000, but less than or equal to $65,000.
c. greater than $65,000, but less than or equal to $70,000.
d. greater than $70,000.
USE THE FOLLOWING INFORMATION FOR THE NEXT FOUR QUESTIONS.
The Pennsylvania Appliance company is installing an assembly line to produce vacuum
cleaners, and you as an operations manager are responsible for balancing the line. The work
elements to be performed are listed, along with their times and immediate predecessors.
Work
Element
A
B
C
D
E
F
G
H
I
J
Time
(sec)
60
40
30
20
40
60
70
50
20
60
Immediate
Predecessor(s)
A
B
B
B
C
D
F, G
E
H, I
19. The company is planning to operate two shifts per day, eight hours per shift. If the desired
output rate of the line is 480 units per day, what is the cycle time?
a. 60 seconds
* b. 120 seconds
c. 180 seconds
d. 240 seconds
20. What is the theoretical minimum number of stations for the line? If you are using the longest
work-element time rule, how many work stations do you need?
a. TM = 3; Solution = 3 stations
b. TM = 3; Solution = 4 stations
* c. TM = 4; Solution = 4 stations
d. TM = 4; Solution = 5 stations
21. What is the balance delay of the solution just found?
a. more than 9%
b. more than 7% and less than 9%
* c. more than 5% and less than 7%
12
d. less than 5%
22. At which station will Task C be performed?
a. workstation 1
b. workstation 2
* c. workstation 3
d. workstation 4
10
20
55
80
65
60
40
70
30
90
10
55
60
40
-
23. If other factors are all equal, which two offices should be located most closely?
a. C and E
b. C and F
c. E and F
* d. A and F
On alternative block plan suggested for the Department looks as follows.
C F A
B E D
24.What is the total load-distance score of this plan using the simple Adjacent-Department
Method?
a. less than 800
b. more than 800 and less than 850
13
25.Which switch of two offices within the Department will improve the total load-distance score
the most?
a. B and C
* b. C and D
c. A and C
d. A and D
14
15
7. A kanban system is an important mechanism for JIT management. Which one of the following
statements regarding the operation of a kanban system is true?
a. A typical kanban used in the JIT system includes various information such as item number,
unit price, competitor's product name, and its price.
b. A withdrawal kanban is issued when the production in the preceding process is to be
authorized.
c. An empty container can be exchanged for a full container at the storage location even
though no withdrawal kanban has been issued.
* d. A production-ordering kanban and a container move as a pair during processing once
production begins at the preceding process.
8. What is most likely to be on a "kanban card"?
a. Name of a delivery person
* b. Quantity per container
c. Time or date delivery is required
d. Specification of an item
9. Which one of the following statements about priority rules is true?
a. local priority rules base a job's priority assignment on information from more than one
work station.
b. examples of local rules are S/RO and CR.
c. local priority rules can be used to schedule only one work station.
* d. examples of global rules are Johnson's rule and CR.
10. Which one will always provide an optimal job sequence?
a. FCFS
b. SPT
* c. Johnson's Algorithm
d. EDD
e. CR
11. Which of the following is not a criterion used to evaluate scheduling rules?
a. makespan
b. flowtime
c. past due
* d. turnover ratio
e. average WIP inventory
16
USE THE FOLLOWING MPS TABLE TO ANSWER THE NEXT THREE QUESTIONS.
Using the information in the table below, prepare the MPS and calculate the available-topromise quantities. The order policy is to produce in lots of 150 units.
_______________________________________________
Quantity on hand: 60
Week
1
_____________________________________________________________
Forecast
50
50
50
50
60
60
60
60
_____________________________________________________________
Customer orders
20
(booked)
95 120
30
30
55
10
_____________________________________________________________
Projected on-hand
inventory
_____________________________________________________________
MPS quantity
_____________________________________________________________
Available-to-promise
(ATP) inventory
17
13. In what week does the third MPS quantity occur?
a. week 2
b. week 3
c. week 4
* d. week 5
e. week 6
14. What is the projected on-hand inventory in week 3?
a. 0
b. 25
c. 55
d. 65
* e. 95
15. What is the ATP quantity in week 5?
a. less than 50
* b. greater than 50, but less than or equal to 60 units
c. greater than 60, but less than or equal to 65 units
d. greater than 65, but less than or equal to 75 units
e. greater than 75 units
USE THE FOLLOWING INFORMATION FOR PROBLEMS 16, 17, 18, AND 19.
A
|
----------|
|
B(3)
C(2)
|
----------|
|
D(1)
E(2)
Part A: safety stock = 20, order quantity = 100, lead time = 1 week
Week #
Gross Requirements
Scheduled Receipts
2
90
50
7
110
18
On Hand = 100
Planned Receipts
Planned Order Rel.
Part B: safety stock = 10, order policy = LFL, lead time = 2 weeks
Week #
Gross Requirements
Scheduled Receipts
On Hand = 350
Planned Receipts
Planned Order Rel.
100
16. How many units of (E) are required to make five units of (A)? Assume (C) is not stocked.
a. 4
b. 5
c. 25
* d. 20
17. What would be the On Hand inventory balance in period 8 for part (A)?
a. 100
b. 80
c. 20
* d. 50
e. cannot be determined with the information given
18. What would be the gross requirements in period 1 for part (B)?
a. 0
b. 33
c. 100
* d. 300
e. cannot be determined with the information given
19. What would be the planned Order Release in period 4 for part (B)?
a. 9
b. 105
c. 10
* d. 160
e. 300
A company produces three models of a product that can be made by the assembly team. The
marketing department has forecast the next month's demand as follows:
Model
-----
Expected Demand
---------------
19
A
B
C
528
396
264
20
c. 3-1-2-5-4
d. 1-4-5-2-3
e. 5-2-3-1-4
USE THE FOLLOWING INFORMATION FOR THE NEXT TWO QUESTIONS.
Operation
Time
Time at
Remaining
Machine A to Due Date
Job (hrs)
(days)
1
2
3
12
18
7
3
10
7
Shop Time
Remaining,
Including
Remaining
Machine A (days) Operations
5
8
10
2
5
2
24. The operations sequence, using the slack per remaining operation rule, is:
*
a.
b.
c.
d.
3-1-2.
3-2-1.
1-2-3.
2-3-1.
25. The operations sequence, using the critical ratio rule, is:
a.
b.
c.
d.
3 - 1 - 2.
3 - 2 - 1.
1 - 3 - 2.
2 - 3 - 1.
21