This action might not be possible to undo. Are you sure you want to continue?
Use the answer sheet provided to TICK your answers in the boxes provided. Do not use red-coloured pens. 1. Which of the following is not one of The Ten Critical Decisions of Operations Management? a. Layout design b. Maintenance c. Process and capacity design d. Mass customization e. Supply chain management d (Why study OM? moderate) Which of the following statements is true? a. Almost all services and almost all goods are a mixture of a service and a tangible product. b. A pure good has no tangible product component. c. A pure service has only a tangible product component. d. There is no such thing as a pure good. e. None of the above is a true statement. a (Operations in the service sector, difficult) Which of the following is not a typical service attribute? a. intangible product b. easy to store c. customer interaction is high d. simultaneous production and consumption e. difficult to resell b (Operations in the service sector, moderate) Current trends in operations management include all of the following except a. just-in-time performance b. rapid product development c. mass customization d. empowered employees e. All of the above are current trends. e (Exciting new trends in operations management, moderate) Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is increased by 10%, it would then be a. 180 valves/hr b. 200 valves/hr c. 220 valves/hr d. 880 valves/hr e. 1760 valves/hr
naive approach b. large decreases in demand d (Time-series forecasting. seasonal fluctuations d. 47 d (Time-series forecasting.0 e.5 b. efficiency. capital. 38 b. 48 April 46 8.5 c (Time-series forecasting. what would the forecast for the next period be using simple exponential smoothing? a. technology. which of the following cannot be predicted? a. moderate) 9. and low cost b (The productivity challenge. labor. Which time series model below assumes that demand in the next period will be equal to the most recent period's demand? a. none of the above a (Time-series forecasting. quality. and labor d. c (The productivity challenge. large increases in demand b. exponential smoothing approach e. diet. easy) Given an actual demand of 61. random fluctuations e. 42 c. In time series. 43 d. and precise units of measure b. and management c. 45.3. moving average approach c.9 d. a previous forecast of 58. 36 Jan.1 c. moderate) Three commonly used productivity variables are a. moderate) 10. technological trends c. moderate) What is the approximate forecast for May using a four-month moving average? Nov. moderate) 7. education. external elements. 39 Dec. . and social overhead e. 44 e. 42 Mar. 61. and an α of . quality. 58. weighted moving average approach d. raw materials. 40 Feb. 65.6. a. 57.
The product follows a seasonal pattern.684 c.487 b. estimate the trend line b.5 d. moderate) A seasonal index for a monthly series is about to be calculated on the basis of three years' accumulation of data. 13. for which the January monthly index is 1.462 d. 640 units b.25. 11. eliminate forecast errors c.11. The average over all months is 190. 10. and 9 units. 15. 2 b. and 130. 10. maturity d. 15. The approximate seasonal index for July is a. introduction b. 800 units d. 0. 798. The primary purpose of the mean absolute deviation (MAD) in forecasting is to a. cannot be calculated with the information given a (Time-series forecasting. The Mean Absolute Deviation (MAD) is a. seasonally adjust the forecast e. 150.053 e. moderate) The last four months of sales were 8. measure forecast accuracy d.5 c (Time-series forecasting. 1.75 units c. 3. 9 e. and 12 units. moderate) 12. 14. decline e. growth c. 6. 0. In which stage of the product life cycle should product strategy focus on process modifications? a. moderate) Demand for a certain product is forecast to be 800 units per month. none of the above a (Goods and services selection. all of the above c (Time-series forecasting. The three previous July values were 110. 2. -10 c. cannot be calculated with the information given b (Time-series forecasting. What is the seasonally-adjusted sales forecast for January? a. moderate) . averaged over all 12 months of the year. 1000 units e. The last four forecasts were 5.
e (Generating new products. purchasing technology d (Time-based competition. engineering change notices be linked to each of the bills of material and engineering notices e. at the decline stage of the product life cycle e. 19. 20. new internally developed products e. acquiring the developer b. at the maturity stage of the product life cycle d. understanding the customer b. determines what will satisfy the customer b. moderate) 17. alliances c. is used to determine where to deploy quality efforts e.16. at the introduction stage of the product life cycle b. is used early in the design process d. moderate) . demographic change. economic change. moderate) Quality function deployment (QFD) a. at the growth stage of the product life cycle c. joint ventures d. such as rising household incomes e. translates customer desires into the target design c. such as decreasing family size c. the final products be standardized a (Defining the product. all of the above e (Product development. all bills of material be prepared using the same format d. easy) Which of the following represent an opportunity for generating a new product? a. changes in professional standards d. All of the above are such opportunities. Group technology requires that a. moderate) Which of the following product development strategies has the highest risk? a. a specific series of engineering drawings be prepared c. each component be identified by a coding scheme that specifies the type of processing and the parameters of the processing b. none of the above b (Goods and services selection. When should product strategy focus on forecasting capacity requirements? a. 18.
and 5 percent from a variety of other causes. a scatter diagram c. One of its core elements is life-cycle assessment. correct system deficiencies e. It offers a good systematic approach to pollution prevention. but not capable of producing within the established control limits b. d. moderate) If a sample of parts is measured and the mean of the measurements is outside the control limits. 24. none of the above b (Tools of TQM. detect a bad process immediately b. a flow chart . b. add value to a product or service c. out of control and the process should be investigated for assignable variation c. 25. the process is a. process chart d. a cause and effect diagram e. e. It deals with environmental management. Which tool do you suggest they use to organize their findings? a. Which of the following is true about ISO 14000 certification? a. a Pareto chart b. 23. Ishikawa diagram b. c. moderate) 22.21. all of the above a (The role of inspection. moderate) A quality circle holds a brainstorming session and attempts to identify the factors responsible for flaws in a product. A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials. a Taguchi loss function d. All of the above are true. e (International quality standards. activity chart a (Tools of TQM. Pareto chart c. 15 percent result from human error. It is not a prerequisite for ISO 9000 certification. monitored closely to see if the next sample mean will also fall outside the control limits e. control charts e. This manager is most likely using a. in control. 10 percent from machine malfunctions. within the established control limits with only natural causes of variation d. correct deficiencies in products d. moderate) The goal of inspection is to a.
seasonality. p-chart b. negative values are bad. the publisher has received calls from readers reporting the following number of errors: 4. moderate) 27. c. "It's no longer good enough that your work fall anywhere within the specification limits. Based on these data alone." Her thinking is reflective of a. moderate) The local newspaper receives several complaints per day about typographic errors. the more units meet specifications. what type of control chart(s) should the publisher use? a. mean and range d. Positive values of the Cpk index are good. 28. A Cpk index value of 1 is ideal.and R-charts b (Statistical Process Control (SPC). Over a seven-day period. and 9. 6. Type I and Type II d (Statistical Process Control (SPC). producer's causes and consumer's causes c. and random variations b. internal benchmarking b. I need your work to be as close to the target value as possible. ISO 9000 d. None of the above is true. 3. 29. 7.a (Tools of TQM. moderate) The causes of variation in statistical process control are a. The larger the Cpk. 3. . easy) 26. Taguchi concepts e. trends. process control charts d (Tools of TQM. c-chart c. cycles. 2. b (Process capability. Six Sigma c. The Cpk index can only be used when the process centerline is also the specification centerline. e. b. A manager tells her production employees. x . d. moderate) Which of the following is true regarding the process capability index Cpk? a. natural causes and assignable causes e. R-chart e. meaning all units meet specifications. x -chart d.
6. television sets e. size of the population e.9 and 0 c. the appropriate value of D3 is 0. dishwashers d. variability is in control. moderate) Which of the following products is likely to be assembled on a repetitive process line? a.2 and 0 d. e. The sample size is five. 33. difficult) 31. which is the a. total number of defects in the population c.30. Since there is no obvious pattern in the measurements. .91 and 0. average range a (Statistical Process Control (SPC).115. 33. What course of action would you recommend? a. 33. 11. reject the last units produced. the mean of sample means is 16.2 b. low variable costs e.11 c (Statistical Process Control (SPC). e (Statistical Process Control (SPC). and the average range is 5.9 and 11. Lower than expected dispersion is a desirable condition. 32. b. c. d. moderate) Which of the following phrases best describes product focus? a. 31. processes are designed to perform a wide variety of activities d. finished goods are usually made to order c. low volume. one must know the process central line.01. percent defects in the population d. all of the above e (Four process strategies. automobiles b.1. investigate what created this condition. One value outside the control limits is insufficient to warrant any action. raw material inventories are low relative to the value of the product d (Four process strategies. moderate) A manager wishes to build a 3σ range chart for a process. and D4 is 2. The process is out of control.3. The UCL and LCL for this range chart are a. 34. Plots of sample ranges indicate that the most recent value is below the lower control limit. difficult) To set x -chart upper and lower control limits. there is no reason to investigate. Variation is not in control. From Table S6.3 and 0 e. average of the sample means b. high variety b. high fixed costs. personal computers c.
40 per unit. This product accounts for $20. which machine should be purchased? a. operators are modestly skilled d.000 in annual sales. $1. b.35. high variety b. Process X should be selected for very large production volumes. there is no crossover point. The crossover point is approximately 6667 units. 0. $18. 0.000 and for machine B. The firm is considering proposals from vendor A and vendor B. low volume.000. The variable cost for A is $15. moderate) 37. e. low variable costs e. finished goods are usually made to a forecast and stored c.25 per unit. difficult) 36.133 b. Process X is more profitable than process Y and should be selected. and has unit variable costs of $3. The fixed costs for machine A are $90. c. d. 0.667 e. purchase both machines since they are both profitable d (Break-even analysis. no purchase because neither machine yields a profit at that volume e. 39.667 a (Break-even analysis.000 and variable costs of $2.00.40 d. c (Four process strategies. machine A b. Process Y is cheaper than process X at all volumes. out of the firm's total of $60. moderate) Which of the following costs would be incurred even if no units were produced? 38. moderate) A shop wants to increase capacity by adding a new machine. $75. either machine A or machine B d.000 and variable costs of $2. Process X has fixed costs of $10. Which of the following statements is true? a. high fixed costs. If the estimated output is 9. Process Y has fixed costs of $9.000 units. The weighted contribution of this product is approximately a.00 per unit and for B. raw material inventories are high relative to the value of the product a (Four process strategies. 0. machine B c. It is impossible for one process to have both of its costs lower than those of another process. . The revenue generated by the units processed on these machines is $22 per unit. Which of the following phrases best describes process focus? a. A product sells for $5.200 c.000.
2 percent. d. 110. actual production over a specified time period c. the program has become more complex. Since the training center was first put in use. maximum output of a system in a given period b. 42. 950 employees were trained. direct labor costs c. sum of all of the organization's inputs b (Capacity.5 percent b. b (Break-even analysis. capacity a firm expects to achieve given the current operating constraints c. average output that can be achieved under ideal conditions b. moderate) Design capacity is the a. moderate) Which of the following statements regarding fixed costs is true? a.5 percent. 43. Assume that the capacity of this training system was designed to be 1200 employees per year. Fixed costs are those costs associated with labor and materials.5 percent. e. maximum theoretical output of a system in a given period under ideal conditions e. average output that can be achieved under ideal conditions d. The staff training center at a large regional hospital provides training sessions in CPR to all employees. c. 90. b. maximum usable capacity of a particular facility d. 950 employees. In the past year. transportation costs d. 114. minimum usable capacity of a particular facility e. raw material costs b. building rental costs e. 90. capacity a firm expects to achieve given the current operating constraints d (Capacity. While fixed costs are ordinarily constant with respect to volume. The efficiency of this system is approximately _____ and its utilization is approximately _____.2 percent c. . 950 employees d. moderate) 41. 79. 79. they can "step" upward if volume increases result in additional fixed costs. moderate) Effective capacity is the a.a.5 percent. 1050 employees e. Fixed costs equal variable costs at the break-even point. Fixed cost is the difference between selling price and variable cost. so that 1050 now represents the most employees that can be trained per year.3 percent b (Capacity. a. 87. purchasing costs d (Break-even analysis. moderate) 40. Fixed costs rise by a constant amount for every added unit of volume.
4. moderate) A county wants to build one centrally-located processing facility to serve the county's four recycling drop-off locations. labor costs c (Service location strategy. 6. energy and utility costs b. 135. parking and access d. sometimes lags it. 33. 4. If "lagging" capacity is chosen. 24 c. a. 570. moderate) . excess demand can be met with overtime or subcontracting.75. 46. moderate) Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm? a.4 d. 725 a (Methods of evaluating location alternatives. All of the above are true.5. cost of shipping finished goods e. What is the approximate center of gravity of these four locations? Location Drop-off point A Drop-off point B Drop-off point C Drop-off point D X-coordinate 1 6 6 4 Y-coordinate 8 7 2 7 Tonnage 10 35 25 50 45. b. Which of the following is false regarding capacity expansion? a. attitude toward unions c. Total cost comparisons are a rather direct method of comparing capacity alternatives. d.04 b. 6. d (Capacity. Capacity may only be added in large chunks. The four drop-offs have characteristics as given in the table below.44. c.25 e. e. "Average" capacity sometimes leads demand. 17.
20 . Sugar mills are located to be central to a group of sugar cane farms. but rejects that location because the educational infrastructure was insufficient to train the firm's workers in its special production technologies. 28 e. proximity to market is the most important location factor? a. 120 d. for service firms. The table below shows its ratings of four factors at each of two potential sites. a. Factor Affluence of local population Traffic flow Parking availability Growth potential Weight . globalization e. wherever old-time craftsmanship survives. 120 b. Few people will travel out-of state for a haircut. clustering c. Which of the following is the best example of the proximity rule that.47. Fast food restaurants choose their locations based on low-cost labor and traffic counts. a. tax incentives d. easy) A manufacturing firm finds a location that has a significant cost advantage over alternatives. 34. 120. 18. where carbonated water is added to proprietary syrups that may have been shipped long distances. 50.20 Gary Mall 30 50 30 10 Belt Line 30 20 40 30 The score for Gary Mall is _____ and the score for Belt Line is ______. none of the above d (Methods of evaluating location alternatives. Software firms locate in Silicon Valley because of the abundance of scientific and technical college graduates. b. innovation b.40 . c. easy) 49. Which of the following is the best example of clustering? a. Many companies are incorporated in Delaware because of favorable tax laws. A full-service restaurant is considering opening a new facility in a specific city.20 . Patients will travel very long distances to have their hernia surgeries performed at . d. The firm's action illustrates the link between __________ and location. d (Factors that affect location decisions. c. Furniture manufacturers locate in small towns all across the United States. moderate) 48. Soft drinks are bottled in many local plants. 22. e. b. proximity a (The strategic importance of location. 24 c.
moderate) . even though it means locating near other furniture manufacturers. e. b (Factors that affect location decisions.Shouldice Hospital. d. Furniture makers choose to locate near the source of good hardwoods. Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.