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# Test Two

1.) Product A has an MTBF of 700 hours and an MTTR of 120 hours. Product B has
an MTBF of 1000 hours and an MTTR of 180 hours. Based on system
availability which product should we choose?

MTBF/(MTBF+MTTR) = A

2.) What is the major difference between tradition product design and concurrent
product design?
Concurrent decentralized, improved quality, done in parallel

3.) Forecast the 5 year moving average for 2010 and 2011 using the following
data:
Year
2005
2006
2007
2008
2009
2010
2011
2101

Actual
Demand
36300
45113
44989
54120
54126
70134
75001

(A+B+C+D+E)/5
(B+C+D+E+F)/5
2010 = 46,930
2011 = 53,696
4.) Use a Smoothing factor of .4 to forecast the 2010 demand for the following
data:
Year
200
5
200
6
200

Forecas
t

Actua
l
2200

2210

2225

2256

2325

7
200
8
200
9
201
0

2353.6

2500

2452.1
6

2600

.4*actual+.6*forecast
2010 = 2453

5.) Calculate the forecast for 2012 using a four month weighted moving average:
Year
2008
2009
2010
2011

Actual
25000
24350
24000
26500

Forecast

Weight
0.1
0.2
0.3
0.4

.1*25000+.2*24350+.3*24000+.4*26500
2012 = 25,170
6.) Compute the point of indifference for the following processes:
Process 1: Fixed costs 335,000 Variable Costs 66 per item
Process 2: Fixed Costs 500,250 Variable Costs 49 per item
Fixed(A) + Var(A)x = Fixed(B) + Var(B)x
9721
7.) The in class example concerning the 2008 Daytona 500 was an example of:
a. Forecasting error for beer
b. Forecasting error for food
c. Forecasting error for soft drink
d. Nothing to do with forecasting
8.) Using a smoothing factor of 0.25 forecast the demand for this data starting
with 2004. Based on this forecast what is the forecast for 2012?
Year
2004
2005
2006
2007
2008
2009
2010

Actual
44367
33000
39345
44596
44909
54126
75643

Forecast

2011
2012

9.) What
a.
b.
c.
d.
e.
10.)

33215
48359

## is the primary goal of the product design process?

Make more money
Flood the market with products
Meet the needs of the customer
Spend company resources
None of the above
What is the breakeven point using the following product information:

## Fixed Costs: 45,000

Variable Costs: 6 per item
Sales Price: 35 per item
1552
FC/(SP-VC)
11.)
a.
b.
c.
d.

## When redesigning a process the first step should be:

Start fixing what is wrong
Do lots of research on the process of the company
Walk the process to get a good understanding of the process
Hire a consultant to fix everything

12.)
Which if any of these documents make up the recipe card for a
product?
a. Bill of Materials
b. Assembly Chart
c. Routing Sheet
d. All of the above
e. None of the above
f. A and c
13.)
Process selection is important in operations management but really
has no applicants to other disciplines?
a. True
b. False
14.)
The rules of forecasting state:
a. Forecasts are usually wrong
b. A forecasting error should be attached to the forecast
c. Smaller numbers are easier to forecast than larger numbers
d. It is easier to forecast the farther you are from the event
e. All of the above
f. A and b
15.)
Why or why not is 100% utilization a good thing?
It is not because you need down time for manufacturing

16.)

## What are some of the remedies for a shortfall in capacity

Eliminating bottlenecks, different layouts

17.)
What is intermodal
Transportation of goods between two different modes
18.)
What is the critical aspect of supply chain management missing from
most definitions
cash
19.)
What are the five functions of the SCOR model?
Plan, source, make, deliver, return
20.)

21.)

## There is no link between facility design and capacity?

a. True
b. false
22.)
When should you use a relationship diagram such as the murthers
grid?
When you dont have accumulated data
23.)
What non-value added activities were evident in the apple sauce
manufacturing process flow chart as discussed in class?
Transferred several times and had a lot of idle time
24.)
What is the biggest difference between the considerations for heavy
manufactuinrg and high teck/light manufacturing when doing a location
analysis
Education
25.)
The percentage of available hours that are actually spent working is?

Utilization