1.

Which of the following is least important as a consideration for a firm at the beginning
of a supply chain? - Access to end consumers Firms at the beginning of the supply
chain are far-removed from final consumers.
2. Seasonal variations are often easier to deal with in capacity planning than random
variations because seasonal variations tend to be: - predictable
3. Which of the following is the last step in the procedure for making location decisions? -
evaluate alternatives and make a selection
4. The Skulls, a student social organization, has two different locations under
consideration for constructing a new chapter house. Skull's president, a POM student,
estimates that due to differing land costs, utility rates, etc., both fixed and variable costs
would be different for each of the proposed sites, as follows: What would be total
annual costs for the Alpha Ave. location with twenty persons living there? - $9,000
5. In location planning, the location of raw materials, the location of markets, and labor
factors are: - regional factors
6. When a location evaluation includes both quantitative and qualitative inputs, a
technique that can be used is _________. – Factor rating
7. A quality circle is ______. - a voluntary group of employees
8. The method of financial analysis which results in an equivalent interest rate is: -
internal rate of return
9. In which type of operations are you likely to see, at most, only minor variations in the
product or service being produced using the same process and the same equipment? -
repetitive production
10. Warranty service, processing of complaints, and costs of litigation are examples of
______. - external failure costs
11. The method for evaluating location alternatives which uses their composite (weighted-
average) scores is: cost-volume analysis
12. Which type of processing system tends to produce the most product variety? – Job
Shop
13. In stopwatch time study, adjusting the normal time by an allowance factor for normal
delays and interruptions results in the: - Standard time
14. The method for evaluating location alternatives which uses their total cost curves is:-
cost-volume analysis
15. At the break-even point:- cost equals total revenue
16. For fixed costs of $2,000, revenue per unit of $2, and variable cost per unit of $1.60,
the break-even quantity is: - 5,000
17. Costs of inspectors, testing, test equipment, and labs are examples of ______. -
prevention costs
18. In a stopwatch time study, the average time it takes a given worker to perform a task a
certain number of times is the: - observed time
19. The type of layout in which workers, materials, and equipment are moved to the
product as needed is: - Fixed-position
20. When the output is less than the optimal rate of output, the average unit cost will be: -
lower
21. Fixing a problem will often cost money; to minimize these costs it is best to find and fix
the problem _____. - during the design phase
22. The process of assigning tasks to workstations in such a way that the workstations have
approximately equal time requirements is called: - line balancing
23. The method of financial analysis which focuses on the length of time it takes to recover
the initial cost of an investment is: - payback
24. A common goal in designing process layouts is: - minimizing transportation costs
25. The grouping of equipment by the operations needed to perform similar work for part
families is: - cellular manufacturing layout
26. Maximum capacity refers to the upper limit of: - rate of output
27. A group of machines including supervisory computer control, automatic material
handling, and possibly robots is called: - a flexible manufacturing system
28. Which isn't a cost of quality? - Extended Service Contracts
29. In a stopwatch time study, the number of cycles that must be timed is a function of: -
all of the above
30. Nearness to raw materials would be most important to a … - manufacturing company
31. A job had an observed cycle time of four minutes, a performance rating of 80 percent,
and an allowance factor that was 20 percent of job time. Normal time for the job in
minutes is: - 3.20
32. A technique for estimating the proportion of time a worker spends on various activities
is: - work sampling
33. In order for TQM to be successful, it is essential that most of the organization be
_______. - in agreement with the philosophy and its goals
34. Given the following information, what would utilization be?
Effective capacity = 20 units per day
Design capacity = 60 units per day
Actual output = 15 units per day
-1/4
35. A quality improvement technique that involves the sharing of thoughts and ideas in a
way that encourages unrestrained collective thinking is: - Pareto analysis
36. Determining the number of cycles to observe is an element of ______. – Stop watch
time study
37. Facilities, personnel and operations that are located around the world are called: -
globalization
38. One form of long-term team that is increasingly being used, especially in lean
production settings, is: - Self-directed
39. ISO 9000 currently requires ___ of a certified organization. – Continuous
Improvement
40. Lost production time, scrap, and rework are examples of ______. - internal failure
costs
41. A tool that depicts process variation graphically is a(n) _______. – Control Chart
42. The center of gravity method is used to _____ travel time, distance and costs. –
minimize
43. Which of the following is not a potential benefit of the use of self-directed teams? -
greater satisfaction for middle managers
44. The type of layout which features departments or other functional groupings in which
similar activities are performed is: - process
45. A production line is to be designed for a job with three tasks. The task times are 0.3
minutes, 1.4 minutes, and 0.7 minutes. The minimum cycle time in minutes is: - 1.4
46. A major advantage of job specialization in business is increased _______. –
productivity
47. Which of the following is not true about process layouts when they are compared to
product layouts? - lower unit costs
48. In methods analysis, a "therblig" is a: - basic elemental motion
49. The ratio of actual output to effective capacity is: - efficiency
50. Given the following information, what would efficiency be?
Effective capacity = 80 units per day
Design capacity = 100 units per day
Utilization = 48%
- 60%