Test Bank Semua Chapter Buat UTS

Chapter 1 Multiple Choice
1. Operations management is concerned with the _________ of a firm’s productive systems.

a. design
b. operation
c. improvement
d. All of these answer choices are correct.
2. The transformation process associated with health care is best described as

a. locational
b. exchange
c. physiological
d. informational
3. All of the following are transformation processes discussed in the text except
a. physiological.
b. locational.
c. exchange.
d. spiritual.
4. Which of the following is not one of the four primary functional areas of a firm?
a. human resources
b. legal
c. marketing
d. operations
5. All of the following are responsibilities of operations managers except

a. acquiring financial resources
b. managing inventories
c. planning production
d. scheduling production
6. Which of the following is not an event or concept associated with the quality revolution?
a. TQM (total quality management)
b. Internet
c. Six Sigma
d. JIT
7. Linear programming, waiting line, simulation, and PERT/CPM are all elements of which era of
operations and supply chain management?
a) Quality Research
b) Operations Research
c) Internet Revolution
d) Globalization
8. Dividing a job into a series of small tasks, each performed by a different worker, is known as
a. craft production
b. scientific management
c. division of labor
d. interchangeable parts
9. The most recent era in the evolution of operations and supply chain management is
a. Internet Revolution
b. Sustainability
c. Globalization
d. Quality Revolution
10. Sustainability, in it’s broadest sense, include(s)

a. using resources wisely.
b. treating workers with respect.
c. establishing a business model of shared values.
11. Mass production is well suited to all of the following except

a. producing large volumes of goods quickly.
b. adapting quickly to changes in market demand.
c. producing standardized products for a large market.
12. The major factors impacting globalization of the supply chain include all the following except
a. falling trade barriers.
b. the Internet.
c. declining union membership.
d. All these answer choices are correct.
13. Companies go global to

a. take advantage of favorable costs.
b. to keep abreast of trends and access new technologies.
c. to build reliable sources of supply.
14. A manager of a global supply chain is concerned with all the following except
a. timeliness.
b. quality.
c. social issues.
15. The ratio of a firm’s monthly output to the number of labor hours used in the same month would be
a measure of
a. labor productivity.
b. capital productivity.
c. machine productivity.
d. multifactor productivity.
16. The production system that prizes flexibility and quality over efficiency and quantity is known as
a. mass production.
b. craft production.
c. lean production.
d. electronic commerce.
17. Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From the following
data calculate the labor productivity.
Labor rate $20
Machine rate $15
Units produced 50,000
Labor hours 4,000
Machine hours 2,000
Cost of materials $20,000
Cost of energy $5,000
a. 0.370
b. 0.625
c. 1.500
d. 1.667
data calculate the machine productivity.
Labor rate $20
Machine rate $15
Labor hours 4,000
Machine hours 2,000

a. 0..370
b. 0.625
c. 1.500
d. 1.667
raw data calculate the multifactor productivity.
Labor rate $20
Machine rate $15
Labor hours 4,000
Machine hours 2,000
a. 0.370
b. 0.625
c. 1.500
d. 1.667
20. Snacknow, a food service firm, is calculating its monthly productivity report. From the following raw
data calculate the labor productivity.
Labor rate $10
Labor hours 1,000
Cost of materials $2000
Cost of energy $500
a. 0.220
b. 0.476
c. 0.800
d. 1.000
21. Snacknow, a food service firm, is calculating its monthly productivity report. From the following data
calculate the energy productivity.
Labor rate $10
Labor hours 1,000

Cost of energy $500
a. 0.220
b. 2
c. 10
d. 20
22. Snacknow, a food service firm, is calculating its monthly productivity report. From the following data
calculate the multifactor productivity.
Labor rate $20
Labor hours 1,000
Cost of energy $500
a. 0.220
b. 0.476
c. 0.800
d. 1.000
57. _____________ is how the mission of a firm is accomplished.

a. Strategy
b. Design
c. An operational decision
d. None of these answer choices is correct.
58. _____________ represents what the firm is in the business of doing.

a. Primary task
b. Core competency
c. Positioning
d. Deploying
59. _____________ is what the firm does better than anyone else.
a. Primary task
b. Core competency
c. Positioning
d. Deploying
60. _____________ are the characteristics of a product that qualify it to be considered for purchase by a
customer.
a. Order winners
b. Order qualifiers
c. Core competency
d. Positioning
61. _____________ is the characteristic of a product that wins the order in the marketplace.
a. Order winners
b. Order qualifiers
c. Core competency
d. Positioning
62. _________________is what the firm does better than anyone else.
a. Order qualifiers
b. Core competency
c. Positioning
d. Deploying
63. ______________ focus(es) the organization on common goals that can be translated into
measurable objectives.
a. Order winners
b. Core competency
c. Positioning
d. Deploying the strategy
64. Companies that compete on ______________ are able to produce a wide variety of products in
response to customer needs.
a. cost
b. speed
c. flexibility
d. quality
65. Companies that compete on ______________ pursue the elimination of all waste.
a. cost
b. speed
c. flexibility
d. quality
66. Companies that compete on ______________ recognize the advantages of time-based competition.
a. cost
b. speed
c. flexibility
d. quality
67. Companies that compete on ______________ focus on pleasing customers and satisfying their
expectations.
a. cost
b. speed
c. flexibility
d. quality
68. The balanced scorecard examines a firm’s performance in all the following critical areas except
a. finances
b. customers
c. processes
69. The ____________ function helps strategy evolve by creating new ways of delivering a firm’s
competitive priorities.
a. finance
b. marketing
c. operations
d. None of the answer choices is correct.
70. Companies that compete on _________________ establish a corporate culture that encourages risk.
a. Innovation
b. Quality
c. Flexibility
d. Cost
71. A(n) ____________ strategy involves a series of integrated decisions on processes, facilities,
technology, quality, capacity, etc.
a. finance
b. marketing
c. operations

40. All of the following are parts of DMAIC except
a) define.
b) measure.
c) analyze.
d) improvise.
Difficulty: Moderate
41. Which of the following is not a dimension of quality for a manufactured good?
a. performance
b. reliability
c. courtesy
d. durability
42. All of the following are dimensions of quality for manufactured products, except
a. conformance.
b. reliability.
c. durability.
d. feasibility.
43. The probability that a product will operate properly within an expected timeframe is the dimension
of quality known as
a. durability.
b. reliability.
c. performance.
d. serviceability.
44. The degree to which a product meets pre-established standards is known as

a. conformance.
b. performance.
c. reliability.
45. Making sure that the product meets the design specifications during production is referred to as
a. quality of design.
b. process capability.
c. fitness for use.
d. quality of conformance.
46. __________________ advocated continuous improvement to the production process to achieve

conformance to specifications and reduce variability.
a. W. Edwards Deming
b. Philip Crosby
c. Kaoru Ishikawa
d. Frederick Taylor
47. W. Edwards Deming believed that primary responsibility for quality improvement rested with
a. the firm’s employees only.
b. the fIrm’s management only.
c. research engineers and consulting statisticians only.
d. both the employees and management of the firm.
48. W. Edwards Deming’s overall philosophy for achieving quality is embodied in

a. his 14 points.
b. his statement of purpose.
c. his use of statistical control.
49. A relationship between a firm and its supplier where the supplier agrees to meet the firms’ quality
standards and the firm enters into a long-term purchasing agreement with the supplier is known as
a. Outsourcing.
b. vertical integration.
c. partnering.
d. conformance.
50. Directly involving employees in the quality management process is referred to as

a. partnering.
b. a quality circle.
c. Six Sigma.
d. participative problem solving.
51. A production process consists of the following four stages with the average percentage of good
quality at each stage as shown.
Stage Average Percentage
of Good Quality
1 0.92
2 0.95
3 0.96
4 0.93
What is the daily production yield for the company if daily input is 200 units?
a. 192 units
b. 188 units
c. 184 units
d. 156 units
Solution: Yield=0.92*0.95*0.96*0.93*200=156 units.
quality at each stage as shown
of Good Quality
1 0.98
2 0.97
3 0.96
4 0.92
How many units must the company put into production each day to achieve a daily yield of 100 good
units?
a. approximately 119 units

b. approximately 108 units
c. approximately 106 units
d. approximately 104 units
Solution: 100/(0.98*0.97*0.96*0.92)=119 units
of Good Quality
1 0.95
2 0.95
3 0.93
4 0.97
What is the daily production yield for the company if daily input is 500 units?
a. 485 units
b. 465 units
c. 407 units
d. 400 units
Solution: 500*(0.95*0.95*0.93*097)=407 units
of Good Quality
1 0.95
2 0.95
3 0.93
4 0.97
How many units must the company put into production each day to achieve a daily yield of 350 good
units?
a. approximately 430 units

b. approximately 415 units
c. approximately 468 units
d. approximately 361 units
Solution: 350/(0.95*0.95*0.93*097)=430 units
55. The costs associated with developing a quality management system are known as
a) training costs.
b) design costs.
c) quality planning costs.
d) information costs.
56. ______ failure costs include scrap, rework, and downtime.
a) External
b) Internal
c) Process
d) System
57. Which of the following quality tools display major causes of poor quality on a graph?
a. Process flow chart
b. Fishbone diagram
c. Histogram
d. Scatter diagram
58. Which of the following quality tools displays the frequency of data related to a quality problem?
a. Fishbone diagram
b. Histogram
c. Scatter diagram
d. Process flow chart
59. Which of the following quality tools displays the relationship between two variables on a graph
b. Fishbone diagram
c. Histogram
d. Scatter diagram
60. Which of the following quality tools displays the steps in a process on a graph
b. Fishbone diagram
c. Histogram
d. Scatter diagram
61. Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The company
produces 100 units per day and averages 90% good quality resulting in 10% defective items. Fifty
percent of the defective units are reworked prior to shipment to Modern’s distribution center.
What is the product yield?
a. 80
b. 85
c. 90
d. 95
Solution: Yield=100*0.90+10*0.50=95
percent of the defective units are reworked prior to shipment to Modern’s distribution center. The
rework cost is $10 per unit.
The quality productivity ratio (QPR) is

a. approximately 1.00.
b. approximately 1.10.
c. approximately 1.20.
d. approximately 1.30.
Solution: QPR=95/($8000+$50)*100=1.18
If production is increased to 200 units per day, the quality productivity ratio (QPR) is
Solution: QPR=190/($16000+$100)*100=1.18
If the percent good quality increases from 90% to 95%, the quality productivity ratio (QPR) is
d. approximately 180.
Solution: QPR=97.5/($8000+$25)*100=1.21
If the rework cost is increased to $50 the quality productivity ratio (QPR) is
d. approximately 125.
Solution: QPR=95/($8000+$250)*100=1.15
If the production cost is decreased to $70 the quality productivity ratio (QPR) is
Solution: QPR=95/($7000+$50)*100=1.35
67. Total quality management (TQM) was originated in the 1980s as a _____________ management
approach to improve quality.
a. Korean
b. American
c. Japanese
d. European
Learning Objective; LO 4
68. Which of the following is not a basic principle of total quality management (TQM)?
a. Quality must be measured.
b. The quality standard is no defects.
c. Quality can and must be managed.
d. The producer defines quality.
Learning Objective: LO 4
69. A ____________________ is a system that achieves customer satisfaction and complements other
company systems.
a. quality management system
b. total quality system
c. quality productivity system
70. Research has shown that companies achieving high customer satisfaction ratings
a. attract new suppliers.
b. retain existing customers.
c. attract new employees.
71. A relationship between a company and a supplier based on mutual quality standards is called
a. sourcing.
b. partnering.
c. sourcing and partnering
72. The primary means for gathering information from customers and measuring customer satisfaction
is
a. a sampling program.
b. a phone interview.
c. feedback from competitors.
d. a survey.
73. ACSI measures ________________ the goods and services of seven economic sectors.
a. product quality of
b. customer satisfaction with
c. product demand for
d. market share for
74. The customer of ________________ firm(s) interacts directly with the production process.
a. a service
b. a manufacturing
c. both service and manufacturing
75. A(n) ____________ is the best level of quality achievement in one company that others seek to
match or exceed.
a. attribute
b. target value
c. benchmark
d. variable
76. _____________________ is an important measure of service quality that is not difficult to measure.
a. Timeliness
b. Benchmarking
c. Kaizen
d. Participative problem solving
77. The Six Sigma quality goal is 3.4 defects per ___________________ opportunities.
a. hundred
b. thousand
c. million
d. billion
Difficulty: Easy
78. At the heart of Six Sigma is the ____________________ strategy, a five-step process applied to
improvement projects.
a. continuous improvement
b. breakthrough
c. champion
79. Quality costs include the cost of _____________________.

a. achieving good quality
b. poor quality
c. both achieving good quality and generating poor quality
80. The cost of achieving good quality includes

a. prevention costs.
b. internal failure costs.
c. external failure costs.
81. The cost of achieving poor quality includes

a. prevention costs.
b. appraisal costs.
c. internal failure costs.
82. The Baldridge Award was created in 1987 to _________________ in the U.S.
a. stimulate growth of quality management
b. stimulate economic growth
c. recognize the best quality gurus
83. ISO in ISO 9000 is

a. not an acronym for International Organization for Standardization.
b. a word derived from a Greek word meaning equal.
c. both a word derived from a Greek word meaning equal and not an acronym for International
Organization for Standardization.

1. Design can provide a competitive edge by
a. bringing products to market quickly.
b. doing an even better job of satisfying customers.
c. being easier to manufacture, use and repair.
2. Which of the following is not a characteristic of an effective product design process?

a. matches product characteristics with customer requirements
b. maximizes the revisions necessary to make a design workable
c. ensures that customer requirements are met in the least costly and simplest manner
d. reduces the time required to design a new product or service
3. All of the following are characteristics of an effective design process except

a. increasing the design time for new products and services.
b. meeting customer requirements in the least costly manner.
c. matching product or service characteristics with customer requirements.
d. minimizing the number of revisions needed to make the design workable.
4. Product design begins with

a. a feasibility study.
b. a form design.
c. understanding the customer and identifying customer needs.
d. pilot runs and final tests.
5. If a firm’s design process is too lengthy

a. a competitor may capture market share by being first to market.
b. a competitor may lose market share by being first to market.
c. a competitor may decide not to enter the market.
d. None of these answers is correct.
6. Carefully dismantling and inspecting a competitor’s product to look for design features that can be
incorporated into your own product is known as
a. concurrent design.
b. design for manufacturability.
c. benchmarking.
d. reverse engineering.
7. A feasibility study consists of all the following except

a. a market analysis.
b. an economic analysis.
c. a technical and strategic analysis.
d. a concurrent analysis.
Difficulty: Easy
8. ____________________ describe(s) what the product should do to satisfy customer needs.

a. Performance specifications
b. Benchmarks
c. Perceptual maps
d. Reverse engineering
9. Creating a preliminary design that can be quickly tested and then either discarded or further refined
is referred to as
a. Benchmarking.
b. rapid prototyping.
c. concurrent design.
d. perceptual mapping.
10. The probability that a product will perform its intended function for a specified length of time under
normal conditions is called
a. benchmarking.
b. perceptual mapping.
c. Maintainability.
d. Reliability.
Difficulty: Easy
11. Which of the following is a quantitative measure of reliability?

a. reliability bar
b. maintainability
c. mean time between failures (MTBF)
d. mean time to repair (MTTR)
12. All of the following can improve a product’s reliability except

a. simplifying product design.
b. improving individual component reliability.
c. changing the product warranty.
d. adding redundant components..
Difficulty: Hard
13. Combining standardized building blocks in different ways to create unique finished products is
known as
a. rapid prototyping.
b. robust design.
c. modular design.
d. concurrent design.
Difficulty: Easy
14. A company produces a product consisting of two components arranged as follows:
0.95 0.93
If both components must function for the product to function, then the product’s overall reliability is
a. 0.950
b. 0.940
c. 0.930
d. 0.884
0.97 0.90
Both components must function for the product to function. To achieve an overall reliability of at
least 0.95 without changing the reliability of the first component, the reliability of the second
component would need to be
a. at least 0.925 .
b. at least 0.95.
c. at least 0.97.
d. at least 0.98.
R1 R2
If both components must function for the product to function, then the two components would
need individual reliabilities of _______ to achieve an overall reliability of 0.90.
a. R1 = 0.90 and R2 = 0.90

b. R1 = 0.95 and R2 = 0.95
c. R1 = 0.80 and R2 = 0.80
d. R1 = 0.85 and R2 = 0.85
17. A product consists of three components arranged as follows:
R1 = 0.95 R2 = 0.90 R3 = 0.95

If all three components must function for the product to function, then the product’s overall
reliability is approximately
a. 0.812.
b. 0.90.
c. 0.933.
d. 0.95.
18. The overall reliability of the following system is
0.90
0.95 0.95 0.95
a. greater than 1.00.

b. 0.95.
c. 0.90.
d. 0.898.
Difficulty: Hard
19. For the overall reliability of the following system to be 0.975 or greater the reliability of the backup
component, Rb, must be
Rb =?
0.99 0.95 0.99
a. at least 1.00.
b. at least 0.896.
c. at least 0.736.
d. at least 0.534.
Difficulty: Hard
20. The overall reliability of the following system is
0.85 0.89
0.90 0.94 0.93

a. 0.787.
b. 0.85.
c. 0.89.
d. 0.919.
Difficulty: Hard
21. A product consists of three components arranged as follows:
R1 = R2 = 0.94 R3 = 0.98
If all three components must function for the product to function, and the product’s overall
reliability must be at least 0.92, then the reliability of the first component, R 1, must be
a. at least 0.999.
b. at least 0.84.
c. at least 0.96.
d. at least 0.972.
Difficulty: Hard
22. If a product fails 10 times in 500 hours of operation, then its mean time between failures (MTBF) is
a. 0.02 hour.
b. 0.10 hour.
c. 20 hours.
d. 50 hours.
23. If a piece of equipment has a mean time between failures (MTBF) of 500 hours with a mean time to
repair (MTTR) of 10 hours, then its uptime or average availability would be
a. 0.020 or 2.00%
b. 0.980 or 98.00%
c. 0.500 or 50.00%
d. 1.000 or 100.00%
Difficulty: Hard
24. The system availability for a system with a mean time between failures (MTBF) of 1000 hours and a
mean time to repair (MTTR) of 50 hours would be
a. 100.00%
b. 97.50%
c. 95.24%
d. 4.76%
Difficulty: Hard
25. Which of the following will not improve design for manufacture and assembly?
a. minimizing the number of parts and subassemblies
b. using standard parts when possible
c. designing parts for limited, unique uses
d. designing parts for many, varied uses
Difficulty: Easy
26. _____________________ involves taking into account the capabilities at each level of the supply
chain when designing a product.
a. Design for supplier
b. Design for manufacturer
c. Design for supply chain
d. Design for competitor
Difficulty: Easy
27. Functional design includes all the following except

a. reliability.
b. usability.
c. form design.
d. maintainability.
28. Simultaneously designing new products and the processes to produce them is known as
a. concurrent design.
b. functional design.
c. modular design.
d. standard design.
Difficulty: Easy
29. ____________________ is a software system that facilitates collaborative design and development
among trading partners.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
30. ____________________ is a software system that assists in the creation, modification and analysis
of design.
31. ____________________ is a software system that retrieves the description and geometry of a
design from a database, and tests and analyzes that design on a computer screen.
32. ____________________ is a software system that stores, retrieves and updates design data through
the lifecycle of a product.
33. Product lifecycle management is a software system that

a. facilitates collaborative design and development among trading partners.
b. stores, retrieves and updates design data through the lifecycle of a product.
c. retrieves the description and geometry of a design from a database, and tests and analyzes
that design on a computer screen.
d. assists in the creation, modification and analysis of design.
34. Failure mode and effects analysis (FMEA) is

a. a software systems that uses computer graphics to assist in designing products.
b. a systematic approach to analyzing the causes and effects of product failures.
c. a visual method for analyzing the interrelationships among failures.
d. a structured process that translates the voice of the customer into technical design
requirements.
35. Fault tree analysis (FTA) is

requirements.
36. __________________________is a procedure, used by multifunction design teams, to eliminate

unnecessary features and functions from a product design.
a. Failure mode and effects analysis
b. Value analysis
c. Fault tree analysis
d. All of these answer choices is correct.
37. Which of the following techniques would most likely be used to systematically analyze product
failures?
a. concurrent design
b. quality function deployment
c. failure mode and effects analysis
d. value analysis
Difficulty: Easy
38. The ability to meet present needs without compromising those of future generations is a concept in
product design known as
a. reusability.
b. maintainability.
c. reliability.
d. sustainability.
39. All of the following are principles of green product design except
a) use new materials.
b) use less materials.
c) involve the entire supply chain.
d) change the paradigm of design.
Difficulty: Hard
40. ___________________ is a concept where companies are held responsible for their product even
after its useful life.
a. Design for disposal or reuse
b. Sustainability
c. Extended producer responsibility
d. Environmentally safe people
41. With ___________________, consumers are encouraged to use the product efficiently, repair it
when possible and dispose of it responsibly.
a. green sourcing
b. green manufacture
c. recycling and reuse
d. green consumption
42. With ___________________, suppliers are encouraged to suggest more environmentally friendly
materials, methods and processes.
a. green sourcing
b. green manufacture
c. recycling and reuse
d. green consumption
43. Design for the environment includes all the following concepts except
a. design for disposal or reuse.
b. sustainability.
c. extended producer responsibility.
d. environmentally safe people.
44. Quality function deployment (QFD) is

requirements.
45. A structured process that translates the voice of the customer into technical design requirements is
known as
a. quality function deployment (QFD).
b. failure mode and effects analysis (FMEA).
c. concurrent design.
d. robust product design.
46. Which of the following is a quantitative measure of maintainability?

a. design for manufacture (DFM)
b. mean time to repair (MTTR)
c. mean time between failures (MTBF)
d. quality function deployment (QFD)
Difficulty: Hard
47. When a product is designed to withstand variations in environmental and operating conditions, it is
known as
a) robust design.
b) design for change.
c) design for modification.
d) design for tolerance.
48. The Taguchi Quality Loss Function implies that a

a. customer’s dissatisfaction increases geometrically as the actual value deviates from the target
value.
b. customer’s satisfaction increases geometrically as the actual value deviates from the target
value.
c. customer’s dissatisfaction decreases geometrically as the actual value deviates from the target
value.
d. customer’s preferences are strongly oriented towards conforming to specifications.
49. As a part of design for robustness, Taguchi believes that

a. consistent errors can be more easily corrected than random errors.
b. parts within tolerance limits may produce assemblies that are not within limits.
c. consumers have a strong preference for product characteristics near their ideal value.
33. Which of the following is not a characteristic of a service?
a. Intangible
b. Variable output
c. Difficult to emulate
d. Perishable
Difficulty: Easy
34. Which of the following is not a characteristic of a service?
a. Tangible
b. Variable output
c. Difficult to emulate
d. Perishable
Difficulty: Easy
35. In a waiting line system, the ___________ reflects the probability that the server is busy and
the customer must wait.
a. utilization factor
b. queue discipline
c. average number of customers in the system
d. probability the system is idle
Difficulty: Easy
36. A dentist office is an example of a
a. service factory.
b. mass service.
c. service shop.
d. professional service.
Difficulty: Easy
37. An airline is an example of a
a. service factory.
b. mass service.
c. service shop.
Difficulty: Easy
38. A grocery store is an example of a
a. service factory.
b. mass service.
c. service shop.
Difficulty: Easy
39. A teacher is an example of a
a. service factory.
b. mass service.
c. service shop.
Difficulty: Easy
40. Which of the following is not a basic element of a waiting line?
a. arrivals
b. servers
c. cost of waiting
d. waiting line structure
Difficulty: Easy
41. The ________________ is the source of customers for a waiting line system.
a. calling population
b. arrival rate
c. service line channel
d. service line phase
Difficulty: Easy
42. The number of arrivals per unit of time at a service facility can frequently be described
by a
a. normal distribution.
b. Poisson distribution.
c. binomial distribution.
d. Beta distribution.
43. The ______________ refers to the order in which waiting customers are served.
a. calling population
b. queue discipline
c. number of channels
d. service rate
44. The number of channels in a queuing process
a. denotes the number of servers in sequence a customer must go through.

b. denotes the size of the calling population.
c. denotes the number of parallel servers for servicing arriving customers.
d. denotes the average queue length.
45. In general, as the number of servers in a waiting line system increases,
a. service cost increases and waiting cost decreases.

b. service cost decreases and waiting cost increases.
c. both service cost and waiting cost increase.
d. both service cost and waiting cost decrease.
Difficulty: Easy
46. If the average time to serve a customer is 3 minutes, then the service rate, µ, is
a. 3 per hour.
b. 12 per hour.
c. 16 per hour.
d. 20 per hour.
Solution: µ =6-/3=20 per hour
47. If, on average, it takes 90 seconds to serve a customer then the hourly service rate, µ, is
a. 90 per hour.
b. 40 per hour.
c. 30 per hour.
d. 1.5 per hour.
Solution: µ=60/(90/60)=40 per hour
48. Consider an espresso stand with a single barista. Customers arrive at the rate of 20 per hour
according to a Poisson distribution. Service times are exponentially distributed with a mean
service time of 2 minutes per customer. What is the service rate per hour for the espresso
stand?
a. 30 customers
b. 20 customers
c. 15 customers
d. 2 customers
Solution: µ=60/2=30 per hour

49. Consider an espresso stand with a single barista. Customers arrive at the stand at the rate of
28 per hour according to a Poisson distribution. Service times are exponentially distributed with
a service rate of 35 customers per hour. The probability that the server is busy is
a. 0.20
b. 0.60
c. 0.80
d. 1.00
Solution: P=28/35=0.20
a service rate of 35 customers per hour. The probability that the server is idle is
a. 0.20
b. 0.60
c. 0.80
d. 1.00
Solution: Po=1-28/35=0.20
a service rate of 35 customers per hour. The probability that there are exactly 3 customers in
the system is
a. 0.0000
b. 0.1024
c. 0.4096
d. 0.5120
Solution: P3=(28/35)*(28/35)*28/35*0.20=0.1024
a service rate of 35 customers per hour. The probability that there are more than 2 customers in
the system is
a. 0.128
b. 0.488
c. 0.512
d. 0.640
Difficulty: Hard
Solution: P2ormore=1-(P0+P1+P3)=1-(0.2+0.16+0.1024)=0.512
a service rate of 35 customers per hour. The average number of customers waiting in line for
service is
a. 4.0
b. 3.8
c. 3.5
d. 3.2
Solution: Lq=28*28/(35*7)=3.2
54. Consider an espresso stand with a single barista. Customers arrive at the stand at the rate of 28
per hour according to a Poisson distribution. Service times are exponentially distributed with a
service rate of 35 customers per hour. The average number of customers in the system (i.e.,
waiting and being served) is
a. 4.0
b. 3.8
c. 3.2
d. 2.0
Feedback: Waiting Line Analysis for Service Improvement
Solution: L=28/(35-28)=4.0
service rate of 35 customers per hour. The average time in minutes a customer spends waiting
in line for service is
a. 0.114 minute.
b. 0.143 minute.
c. 6.84 minutes.
d. 8.58 minutes.
Difficulty: Hard
Solution: Wq=28/(35*7)*60=6.84
service rate of 35 customers per hour. The average time in minutes a customer spends in the
system (i.e., waiting and being served) is
a. 0.114 minute
b. 0.143 minute
c. 6.84 minutes
d. 8.58 minutes
Solution: W=1/(35-28)*60=8.58
57. Consider an espresso stand with a single barista. Customers arrive to the stand at the rate of 28
service rate of 35 customers per minute. If the arrival rate remains at 28 customers per hour and
the stand’s manager wants to have the average time a customer spends in the system (i.e., wait
time and service time) to be a maximum of 6 minutes on average, then the service rate must
a. decrease by 2 to 33 customers per hour.
b. decrease by 3 to 32 customers per hour.
c. increase by 3 to 38 customers per hour.
d. increase by 2 to 37 customers per hour.
Difficulty: Hard
Solution: 6/60=0.1hr; 0.1=1/( µ-28); µ=38
58. A small diner has one employee and a counter with seating for 8 customers. The diner does not
package food for takeout. Customers arrive at the diner at the rate of 20 per hour (Poisson
distributed). Service times are exponentially distributed and average 24 per hour. Customers
that arrive when all seats are taken do not enter the diner. What is the probability that there
are no customers in the diner?
a. 0.2067
b. 0.7933
c. 0.8333
d. 0.1667
Solution: Use Excel Exhibit 5.2
package food for take out. Customers arrive at the diner at the rate of 20 per hour (Poisson
that arrive when all seats are taken do not enter the diner. What is the probability that the
diner is full and an arriving customer does not enter?
a. 0.8333
b. 0.1667
c. 0.2067
d. 0.0481
Difficulty: Hard
that arrive when all seats are taken do not enter the diner. What is the average number of
customers in the diner?
a. 2.0432
b. 2.8364
c. 3.7536
d. 5.4837
that arrive when all seats are taken do not enter the diner. What is the average number of
customers waiting (average queue length)?
a. 2.0432
b. 2.8364
c. 3.9785
d. 5.9782
Difficulty: Hard
that arrive when all seats are taken do not enter the diner. What is the average time a customer
spends in the diner?
a. 3 minutes
b. 5.975 minutes
c. 6.44 minutes
d. 8.94 minutes
that arrive when all seats are taken do not enter the diner. What is the average time a customer
spends waiting?
a. 2.5 minutes
b. 3.0 minutes
c. 6.44 minutes
d. 24 minutes
Difficulty: Hard
64. A service counter employs two servers. On average, a server requires 8 minutes to process a
customer and service times follow an exponential distribution. Customers arrive at the counter
at the rate of 12 per hour according to a Poisson distribution. The service rate per server for this
system is
a. 3.75 customers per hour.

b. 7.5 customers per hour.
c. 8 customers per hour.
d. 16 customers per hour.
at the rate of 12 per hour according to a Poisson distribution. The probability that there are no
customers in the system is
a. 0.800
b. 0.536
c. 0.369
d. 0.111
Difficulty: Hard
at the rate of 12 per hour according to a Poisson distribution. The probability that an arriving
customer must wait for service is
a. 0.7111
b. 0.8000
c. 0.8576
d. 0.9327
Difficulty: Hard

at the rate of 12 per hour according to a Poisson distribution. On average, the total number of
customers in the system (i.e., waiting and being served) would be
a. 1.600
b. 2.844
c. 3.200
d. 4.444
Difficulty: Hard
at the rate of 12 per hour according to a Poisson distribution. The average number of customers
waiting to be served would be
a. 4.444
b. 2.844
c. 1.600
d. 0.893
Difficulty: Hard

69. A service counter employs two servers. On average a server requires 8 minutes to process a
at the rate of 12 per hour according to a Poisson distribution. The average amount of time, in
minutes, spent in the system (i.e., waiting and being served) is approximately
a. 0.237 minutes
b. 14.22 minutes
c. 22.20 minutes
d. 33.30 minutes
Difficulty: Hard
at the rate of 12 per hour according to a Poisson distribution. The average amount of time
spent by a customer waiting in line is approximately
a. 0.370 minutes
b. 2.844 minutes
c. 14.22 minutes
d. 22.20 minutes
1. A firm’s process strategy defines all of the following except its

a. capital intensity.
b. process flexibility.
c. vertical integration.
d. process selection.
37. The extent to which the firm will produce the inputs and control the outputs of each stage of the
production process is known as
a. vertical integration.
c. process planning.
d. capital intensity.
38. The ease of adjusting resources in response to changes in demand defines a firm’s
a. vertical integration.
c. customer involvement.
d. capital intensity.
Difficulty: Easy
39. Variable demand and small-to-moderate quantities produced to-order are characteristics usually
associated with
a. mass production.
b. continuous production.
c. projects.
d. batch production.
40. Most of the operations in batch production involve
a. fabrication.
b. assembly.
c. continuous processing.
d. outsourcing.
Difficulty: Easy
41. A print shop is an example of which of the following process choices?
a. project
b. batch production
c. continuous production
d. mass production
Difficulty: Easy
42. Which of the following is not an advantage of batch production?
a. frequent changes in product mix

b. flexibility
c. customization of output
d. quality reputation
43. Disadvantages of batch production include all of the following except

a. high per-unit costs.
b. frequent changes in product mix.
c. flexibility.
d. scheduling problems.
Difficulty: Hard
44. Complex scheduling problems are most likely to occur with which process type?
a. mass production
b. batch production
c. continuous production
45. Which of the following is not a characteristic of mass production?
a. made-to-stock
b. stable demand
c. high product variety
d. high product volume
Difficulty: Easy
46. Mass production systems tend to employ
a. specialized equipment and limited labor skills.

b. specialized equipment and specialized labor skills.
c. general purpose equipment and limited labor skills.
d. general purpose equipment and specialized labor skills.
Difficulty: Easy
47. One disadvantage of mass production is its
a. efficiency.
b. speed of production.
c. low per-unit costs.
d. lack of responsiveness.
Difficulty: Easy
48. Steel, paper, paints, and chemicals are examples of products that use
a. batch production.
b. repetitive production.
c. continuous production.
d. mass production.
49. As process selection moves up the diagonal from project to continuous production
a. demand volume increases.

b. product variety increases.
c. capital intensity decreases.
d. flexibility increases.
50. A company is considering producing a product for a new market. The fixed cost required for
manufacturing and delivering the product is $50,000. Labor and material costs are estimated to
be approximately $25 per product. If the product is sold for $35.00 each, the firm’s breakeven
volume would be
a. 50,000 units
b. 5,000 units
c. 2,500 units
d. 500 units
Difficulty: Hard
Solution: BE=50,000/(35-25)=5,000 units
51. If a firm can sell a product for $40each, then what is the volume needed to breakeven if the
fixed cost of production is $125,000 and labor and material costs are $30. per item?
a. 125,000
b. 12,500
c. 4,167
d. 3,250
Difficulty: Hard
52. A company is evaluating which of two alternatives should be used to produce a product that
will sell for $35 per unit. The following cost information describes the two alternatives.
Process A Process B
Fixed Cost $500,000 $750,000

Variable Cost per Unit $25 $23
The breakeven volume for Process A is

a. 50,000 units.
b. 62,500 units.
c. 30,000 units.
d. 20,000 units.
Difficulty: Hard
Solution: 500,000/(35-25)=50,000 units
will sell for $35 per unit. The following cost information describes the two alternatives.
Process A Process B
Fixed Cost $500,000 $750,000

The break-even volume for Process B is
a. 50,000 units.
b. 62,500 units.
c. 30,000 units.
d. 20,000 units.
Difficulty: Hard
Solution: 750000/(35-23)=62,500 units
will sell for $35 per unit. The following cost information describes the two alternatives
Process A Process B
Fixed Cost $500,000 $750,000
If total demand (volume) is 120,000 units, then the company should
a. select Process A with a profit of $940,000 to maximize profit

b. select Process B with a profit of $450,000 to maximize profit
c. select Process A with a profit of $700,000 to maximize profit
d. select Process B with a profit of $690,000 to maximize profit
Difficulty: Hard
Solution: Profit=120,000*($35-$25)-$500,000=$700,000
Process A Process B
Fixed Cost $500,000 $750,000

If total demand (volume) is 150,000 units, then the company should
a. select Process A with a profit of $1,300,000 to maximize profit

b. select Process B with a profit of $750,000 to maximize profit
c. select Process A with a profit of $1,000,000 to maximize profit
d. select Process B with a profit of $1,050,000 to maximize profit
Difficulty: Hard
Solution: Profit=150,000*($35-$23)-$750,000=$1,050,000
Process A Process B
Fixed Cost $500,000 $750,000

For what level of volume (output) would the firm prefer Process A to Process B?
a. for all volume levels greater than 75,000

b. for all volume levels greater than 97,500
c. for all volume levels greater than 117,500
d. for all volume levels greater than 125,000
Difficulty: Hard
Solution: $500,000+$25v=$750,000+$23v; v=125,000
57. A company is considering producing an item that can be sold for $37.50 per unit. If the fixed
costs for setting up production are $225,000 and the variable cost per unit for the item is $35
then the breakeven volume for this item is
a. 6,000 units.
b. 6,429 units.
c. 72,500 units.
d. 90,000 units.
Difficulty: Hard
Solution:$225,000/($37.50-$35.00)=90,000 units
58. All the following are factors influencing the outsourcing decision except
a. capacity.
b. expertise.
c. quality.
d. product variety.
59. The product-process matrix includes all the following process types except
a. mass production.
b. stable production.
c. continuous production.
d. batch production.
60. Which of the following is not associated with the sourcing continuum?
a. Joint venture
b. In-house production
c. Strategic alliance
d. Single contract
Difficulty: Hard
61. Technology decisions typical in operations management include all the following areas except
a. information technology.
b. product technology.
c. process technology.
d. communication technology.
62. Processes are analyzed for all the following reasons except
a. speed-time-to-completion.
b. for environmental considerations.
c. to increase sustainability.
63. All the following are basic tools of process analysis except
a. flowcharts.
b. diagrams.
c. maps.
d. spreadsheets.
64. The first step in building a flowchart is to

a. define process boundaries.
b. map out the process
c. determine objectives
65. Which of the following is not a standard label of the symbols used for the
construction of a process flowchart?
a. Improve
b. Transport
c. Operation
d. Delay
66. Process flowcharts document

a. productive activities.
b. nonproductive activities.
c. Both productive and nonproductive activities.
d. None of these answers is correct.
67. Existing processes should be analyzed for improvement on a

a. Continual basis.
b. Sporadic basis
c. As needed basis
68. When opportunities for continuous improvement of a process have been

exhausted, it may be time to
a. redesign or innovate.
b. shut down the process.
c. subcontract the production.
69. Typical performance improvement resulting from a process innovation project

ranges from
a. 5 to 10%.
b. 25 to 50%.
c. 50 to 100%.
d. 100 to 200%.
70. A high-level process map, useful in the beginning the redesign of a process,
contain(s)
a. detailed steps associated with each activity.
b. essential building blocks of the main activities.
c. both detailed steps and essential building blocks.
71. The first step in process innovation is to determine

a. design principles.
b. strategic directives.
c. customer requirements.
d. model validation.
Difficulty: Hard
72. Technology decisions

a. involve large sums of money.
b. definefuture capabilities.
c. set the stage for competitive interactions.
73. Capital budgeting techniques, used to evaluate new technology, often examine
a. purchase cost.
b. operating costs.
c. annual savings.
74. Which of the following is not a capital budgeting technique?

a. Revenue enhancement
b. Replacement analysis
c. Risk and uncertainty
75. Which of the following is not an example of product technology?
a. CAD
b. PLM
c. FMS
d. CAE
76. Which of the following is not an example of manufacturing technology?

a. Robots
b. AGV
c. E-procurement
d. Conveyors
1. Which of the following is not a capacity expansion strategy?

a. Capacity lead strategy
b. Capacity lag strategy
c. Capacity stability strategy
d. Average capacity
Difficulty: Easy
2. Capacity is defined as the

a. minimum capability to produce.
b. maximum capability to produce.
c. average capability to produce.
Difficulty: Easy
3. The two critical decisions concerning capacity include

a. When to increase and how much to increase.
b. When to increase and where to locate.
c. How much to increase and where to locate.
Difficulty: Easy
4. The ______________________ for a facility is the percent of capacity utilization that minimizes cost.
a. best operating level
b. capacity cushion
c. diseconomies of scale
d. economies of scale
Difficulty: Easy
5. When higher levels of output cost less per unit to produce, the facility realizes
a. best operating level.
b. capacity cushion.
c. diseconomies of scale.
d. economies of scale.
Difficulty: Easy
6. When higher levels of output cost more per unit to produce, the facility realizes
a. best operating level.
b. capacity cushion.
c. diseconomies of scale.
d. economies of scale.
Difficulty: Easy
7. The ______________________ is the percent of demand held in reserve for unexpected

occurrences.
a. best operating level
b. capacity cushion
c. diseconomies of scale
d. economies of scale
Difficulty: Easy
8. Facility design has an impact on

a. quality.
b. productivity.
c. both quality and productivity.
Difficulty: Easy
9. Which of the following is not an objective of facility layout?

a. Minimize material handling costs
b. Utilize space efficiently
c. Utilize labor efficiently
d. Maximize bottlenecks
Difficulty: Easy
10. Which one of the following is not an example of a basic facility layout?
a. Fixed-position
b. Mixed-model
c. Product
d. Process
Feedback: Basic Layout
11. Which of the following is not an objective of effective layouts?
a. reduce material handling costs
b. increase the number of bottlenecks
c. eliminate waste and redundant activities
d. improve communication and interaction among workstations
Difficulty: Easy
12. Which of the following statements is true?

a. product layouts are flexible; process layouts are efficient
b. product layouts are efficient; process layouts are flexible
c. product and process layouts are equally flexible; neither are efficient
d. product and process layout are equally efficient; neither are flexible
Difficulty: Easy
13. Similar activities are grouped together in departments or work centers according to the function
with a __________ layout.
a. process
b. fixed-position
c. hybrid
Difficulty: Easy
14. Which of the following describes a process layout?

a. Equipment is general purpose and the workers are unskilled.
b. Equipment is specialized and the workers are highly skilled.
c. Equipment is general purpose and the workers are highly skilled.
d. Equipment is specialized and the workers are unskilled.
15. The material storage space required for in-process inventory is typically larger in a
a. cellular manufacturing layout.
b. product layout.
c. fixed-position layout.
d. process layout.
Difficulty: Easy
16. Material handling equipment that can follow multiple paths, move in any direction, and carry large
loads of in-process inventory is most likely to be associated with a _________ layout
a. process
b. product
c. fixed-position
Difficulty: Easy
17. With a ___________ layout, activities are arranged in a line according to the sequence of
operations.
a. product
b. process
c. fixed-position
d. cellular
Difficulty: Easy
18. A ____________ provides historical data on the movement of parts and materials between
departments.
a. manufacturing chart
b. block diagram
c. relationship diagram
d. load summary chart
Difficulty: Easy
19. Two techniques used to design process layouts are

a. block diagramming and assembly line balancing.
b. relationship diagramming and assembling line balancing.
c. relationship diagramming and assembly line balancing.
d. block diagramming and relationship diagramming.
20. A format for displaying manager preferences for departmental locations is known as
a. relationship diagram.
b. process diagram.
c. block diagram.
d. hybrid diagram.
21. One of the best known computerized packages available for designing process layouts is CRAFT.
CRAFT stands for
a. computerized relationship activity and flow technique.
b. computerized relative allocation of facilities technique.
c. computerized relative assembly and flow technology.
d. computerized relationship assembly flow time.
22. A company produces shovels in five departments. The average number of loads transported
between the five departments per month is given in the load summary chart.
(Insert 2 x 3 grid – see page 268)
Load Summary Chart

from/to Department
Department 1 2 3 4 5
1 - - 30 - -
2 - - 30 25 -
3 30 - - - 20
4 - 40 - - 20
5 - 30 - - -
Determine the number nonadjacent loads.

a. 25
b. 30
c. 50
d. 60
Difficulty: Hard
Solution: 1-3 and 3-1 are nonadjacent; 30+30=60 loads
23. A company produces shovels in five departments. The average number of loads transported
between the five departments per month is given in the load summary chart.
(Insert 2 x 3 grid – see page 268)
Load Summary Chart

from/to Department
Department 1 2 3 4 5
1 - 10 - - -
2 - - 30 25 -
3 30 - - - -
4 - 40 - - 20
5 - 15 - - -
Determine the number nonadjacent loads.

a. 25
b. 30
c. 50
d. 60
Difficulty: Hard
Solution: 1-3 and 3-1 are nonadjacent; 30+30=60 loads
63. A schematic diagram that uses weighted lines to denote location preference is known as a
a. block grid.
b. block diagram.
c. a relationship grid.
d. a relationship diagram.
64. Most service organizations use

a. product layouts.
b. fixed-position layouts.
c. process layouts.
d. cellular layouts.
Difficulty: Easy
65. A type of service layout designed to encourage browsing and increase impulse purchasing is
known as a
a. freeflow layout.
b. grid layout.
c. loop layout.
d. spine layout.
66. A company hopes to achieve a daily output of 200 units during 6 hours of production time.
Assuming there is no lost time during the 6 hours of production, the desired cycle time to achieve
the targeted level of output is
a. 3.0 minutes
b. 1.8 minutes
c. 1.5 minutes
d. 0.03 minutes
Solution: Cd=6*60/200=1.8 minutes
67. A ________layout encourages customer familiarity, has low costs, and is easy to clean.
a. freeflow layout
b. grid layout
c. spine layout
d. loop layout
Difficulty: Easy
a. 68. The process of equalizing the amount of work at each workstation in a product layout is
known as
a. block diagramming.
b. precedence requirements.
c. line balancing.
d. cycle time analysis.
Difficulty: Easy
69. With line balancing the maximum amount of time the product is allowed to spend at each
workstation is known as the
a. cycle time.
b. flow time.
c. efficiency of the line.
d. balance delay.
Difficulty: Easy
70. To maximize an assembly line’s efficiency the
a. line’s balance delay must be minimized.

b. line’s balance delay must be maximized.
c. cycle time must be less than the flow time.
d. flow time must be less than the cycle time.
71. A company has a target output rate of 40 units every five hours when its line is fully operational.
To achieve this target the firm must have a desired cycle time of
a. more than 12.50 minutes.

b. more than 10.00 minutes.
c. 7.5 minutes or less.
d. 8 minutes or less.
Learning Objective: LO 6Solution: Cd=5*60/40=7.5 minutes
72. A company wants to produce 150 units during a 7-hour day. The desired cycle time needed to
achieve this level of output is
a. 3.5 minutes.
b. 3.25 minutes.
c. 3.00 minutes.
d. 2.8 minutes.
Solution: Cd=7*60/150=2.8 minutes

73. In a product layout, the process of assigning tasks to work stations is referred to as _________
balancing.
a. station
b. product
c. line
d. work
Difficulty: Easy
74. Cycle time refers to the
a. time required for a product to go through a process layout.

b. time between finished units coming off an assembly line.
c. time needed to complete the tasks at a workstation.
d. difference between task time and workstation time.
75. An assembly line consists of three workstations (WS) with each station’s activity time as shown.
WS 1 WS 2 WS 3
5 minutes 3 minutes 4 minutes
The flow time for items on this line would be
a. 5 minutes.
b. 3 minutes.
c. 4 minutes.
d. 12 minutes.
Solution: FT=5+3+4=12 minutes
WS 1 WS 2 WS 3
The cycle time for this line is
a. 5 minutes.
b. 3 minutes.
c. 4 minutes.
d. 12 minutes.
Solution: Cycle time=Max{5,3,4}=5 minutes
WS 1 WS 2 WS 3
When fully operational this line could assemble _______ completed items every 60 minutes.
a. 20
b. 15
c. 12
d. 5
Solution: Cycle time=Max{5,3,4}=5 minutes; 60/5 = 12 items every 60 minutes
WS 1 WS 2 WS 3
When fully operational the maximum output for this line in 8 hours of production time would be
a. 40 units
b. 96 units
c. 120 units
d. 160 units
Difficulty: Hard
Solution: Cycle time=Max{5,3,4}=5 minutes; Output=480 minutes/5 =96 items
79. If the line currently assembles 10 units every hour when fully functional, then the line’s balance
delay at this rate of output is
WS 1 WS 2 WS 3
a. 66.67 %
b. 33.33%
c. 80.00%
d. 20.00%
Difficulty: Hard
Solution: Balance delay=1-(12/15)=0.20 or 20%
80. Which of the following is not an area of advantage of cellular layouts?
a. material handling
b. setup time
c. capital investment
d. control
81. Which of the following is not an area of disadvantage of cellular layouts?
a. cell balance
b. work-in-process inventory
c. capital investment
d. training and scheduling
82. Which one of the following factors is not important to the design and operation of a mixed-model
assembly line?
a. model sequencing
b. line balancing
c. u-shaped lines
d. All of these answer choices is correct.
83. is a group technology technique that reorders part routing matrices to identify families of parts with
similar processing requirements.
a) Process flow analysis

b) Production flow analysis
c) Cycle analysis
d) Group analysis
84. Which of the following is not an advantage of cellular layouts?
a) easier to automate
b) easier to control
c) increased work-in-process inventory
d) reduced setup time
85. Which one of the following is not an example of a hybrid facility layout?
a. Fixed-position
b. Mixed-model
c. Cellular
d. Flexible manufacturing

1. Changing management’s traditional control-oriented relationship with employees to one of
cooperation, mutual trust and teamwork requires a
a. short term commitment to aggressive contractual planning.
b. medium term commitment to dramatic organizational design.
c. long term focus commitment as a key part of the strategic design.

Ans. C
Difficulty: Easy
2. Achieving a company’s strategic goals for quality and customer satisfaction require
a. team work.
b. group participation.
c. both team work and group participation.
Ans. C
Difficulty: Easy
3. Which of the following is not a serious disadvantage of scientific management?

a. workers become bored
b. opportunities to acquire new skills sets is limited
c. workers are required to perform repetitive motions
d. worker output is increased
Ans. D
Difficulty: Easy
4. Motivation is a willingness to work hard because doing so

a. satisfies employer needs.
b. satisfies employee needs.
c. satisfies both employee and employer needs.
Ans. B
5. Which of the following elements has not been shown to improve motivation?
a. fair treatment of workers
b. negative feedback and punishment
c. empowerment
d. restructuring of jobs
Ans. B
6.All of the following are advantages of task specialization except

a.increased output.
b.lower labor costs.
c. reduced boredom.
d.minimal training.
Ans: C
7. Scientific management involves all the following except

a. breaking down jobs into their simplest elements.
b. eliminating unnecessary motions.
c. hiring only highly trained workers.
d. assigning tasks to workers.
Ans: C
8. The development of the assembly line by Henry Ford is based on the principles of
a. scientific management.
b. mass production.
c. both scientific management and mass production.
Ans: C
9. Research has shown the success of Japanese companies operating production facilities in the United
States is due to
a. cultural factors.
b. management practices.
c. superiority of American workers.
Ans: B
10. Which of the following is not a contemporary trend in human resource management?
a. cross training
b. flexible work schedules
c. telecommuting
d. reduced work week for full time employees
Ans: B
11. Assigning a worker a complete unit of work with clearly defined start and end points is referred to as
a.vertical job enlargement.
b.job rotation.
c. horizontal job enlargement.
d.empowerment.
Ans: C
12. Allowing employees more control over their own work and some of the supervisory responsibilities
is known as
a.vertical job enlargement.
b.empowerment.
c. horizontal job enlargement.
d.cross training.
Ans: A
13. ______________ gives employees the responsibility and authority to make decisions.
a.Cross training
b. Empowerment
b.Job rotation
c. Horizontal job enlargement
Ans: B
Difficulty: Easy
14. Which of the following is not a principle for job enrichment?
a. provide additional authority and freedom
b. vertical job enlargement
c. make periodic reports available to workers
d. introduce simple, repetitive tasks
Ans: C
15. Advantages of empowerment include all of the following except

a.more attention to product quality.
b.higher productivity.
c. abuse of power.
d.more satisfying work.
Ans: C
Difficulty: Easy
16. Empowerment involves giving employees _________________ to make decisions.

a. responsibility
b. authority
c. both responsibility and authority
Ans: C
17. Advantages of telecommuting include all of the following except

a.reduced turnover.
b.decreased absenteeism and leave usage.
c. flexible work schedules.
d. direct visual surveillance of employees.
Ans: D
18. A trend among service companies, in particular, is the use of

a. temporary and part-time employees.
b. telecommuting.
c. flexible work schedules.
d. teamwork.
Ans: C
19. An incentive plan that encourages employees to achieve a company’s goals and objectives is
referred to as
a.a piece-rate wage plan.
b.gainsharing.
c. profit sharing.
d.overtime.
Ans: B
20. The two traditional forms of employee compensation include

a. hourly wage and individual incentive.
b. hourly wage and profit sharing.
c. salary and individual incentive.
d. hourly wage and gainsharing.
Ans: A
Difficulty: Easy
21. In a piece-rate wage system a worker’s pay is based on

a.total output.
b. job rating.
c. job classification.
d.total time.
Ans: A
Difficulty: Easy
22. __________________ is an incentive plan that joins employees in common to achieve company
objectives in which they share in the gains.
a. Profit sharing
b. Gainsharing
c. Performance pay
Ans: B
Difficulty: Easy
23. Which of the following developments has resulted in global diversity issues?
a. globalization of companies
b. global teams
c. global outsourcing
Ans. D
24. The process of creating a work environment where employees can contribute to their full potential
is
a. diversity.
b. equal opportunity.
c. affirmative action.
Ans. B
25. Setting goals and timetables to increase the level of participation by women and minorities to attain
parity levels in a company’s workforce is called
a. diversity.
b. equal opportunity.
c. affirmative action.
Ans. C
26. Managing ___________________ includes education, awareness, communication, fairness and

commitment.
a. diversity
b. equal opportunity
c. affirmative action
Ans. A
27. The elements of job design include

a.task analysis.
b.worker analysis.
c. environmental analysis.
Ans: D
Difficulty: Easy
28. Determining how tasks fit together to form a job is referred to as

a.worker analysis.
b.task analysis.
c. environmental analysis.
d.ergonomics.
Ans: B
Difficulty: Easy
29. Fitting the task to the employee in a work environment is known as

a.motivation.
b.worker analysis.
c. ergonomics.
d.task analysis.
Ans: C
30. _________________ refers to the physical location of a job and the requisite surroundings.
a. Task analysis
b. Worker analysis
c. Methods analysis
d. Environmental analysis
Ans: D
31. Which of the following would most likely be used to redesign or improve existing jobs?
a. methods analysis
b technology analysis
c environmental analysis
d task analysis
Ans: A
32. A(n) __________________ is used to graphically analyze how the steps of a job fit together into the
overall flow of the production process.
a.methods analysis
b.process flowchart
c. task analysis
d.environmental analysis
Ans: B
33. ______________ involves the horizontal movement of a worker between two or more jobs.
a.Cross training
b.Empowerment
c. Alternative workplace
d. Job rotation
Ans: D
34. Motion study, the study of the individual human motions used in a task, was developed by
a.Henry Ford.
b.F. W. Taylor.
c. Frank and Lillian Gilbreth.
d.Frederick Herzberg.
Ans: C
35. The amount of time a worker and a machine are working or idle on a job is illustrated by a
a.process flowchart.
b.worker analysis.
c. task analysis.
d. worker-machine chart.
Ans: D
36. The gradual shift from treating employees as a replaceable part to embracing them as a valuable
resource was primarily brought about by the trend toward
a.globalization.
b. quality management.
b.scientific management.
c. customization.
Ans: B
Difficulty: Easy
37. ___________ illustrate the improvement rate of workers as a job is repeated.
a) Learning curves
b) Process curves
c) Learning charts
d) Process charts
Ans: A
38. The principles of motion study relate to all of the following categories except
a.the human body.
b.the efficient use of capital.
c. the workplace.
d.the efficient use of equipment and machinery.
Ans: B
39. A graph that illustrates the improvement rate of workers, as a job is repeated, is known as a
a) learning curve.
b) process flowchart.
c) worker-machine chart.
d) task analysis chart.
Ans: A
40. A learning curve illustrates that increasing the number of cumulative units produced ________ the
labor required per unit.
a) increases
b) eliminates
c) decreases
d) does not impact
Ans: C
41. A learning curve reflects the fact that

a) each time the number of units produced doubles, the processing time per unit decreases by a
constant percentage.
b) each time the number of units produced doubles, the processing time per unit increases by a constant
percentage.
c) each time the number of units produced doubles, the processing time per unit increases by 10%.
d) each time the number of units produced doubles, the processing time per unit remains the same.
Ans: A
42. A 90% learning curve indicates

a) a 90% increase in processing time per unit as output doubles.
b) a 90% decrease in processing time per unit as output doubles.

c) a 10% increase in processing time per unit as output doubles.
d) a 10% decrease in processing time per unit as output doubles.
Ans: D
43. The direct labor time required to produce the first sailboat of a particular model was 3,000 hours. If
the company believes that an 80% learning curve applies to the production of this model sailboat
then the direct labor time required to produce the second boat is estimated to be
a.600 hours.
b.2,400 hours.
c. 3,600 hours.
d.4,000 hours.
Ans: B
Solution: Labor time=3,000 hours*0.80=2,400 hours.
44. A company has accepted a contract to produce a special electric motor. The number of direct labor
hours required to produce the first motor is 250. If an 85% learning curve applies to the production
of motors then the number of labor hours needed to produce the 4 th motor is
a) 212.5 hours.
b) 180.6 hours.
c) 153.5 hours.
d) 37.5 hours
Ans: B
Difficulty: Hard
Solution: Labor time=250 hours*0.85&0.85=180.6 hours
45. The direct labor times required to produce the first four units of a new product are shown below:
Unit Number Direct Labor Hours
1 1,200
2 1,020
3 927.5
4 867
Based on this data the estimated learning or improvement rate is
a.100%.
b.90%.
c. 85%.
d.80%.
Ans: C
Difficulty: Hard
Solution: Learning = 1020/1200=0.85 or 85%
46. The direct labor hours required to produce the first two units of a new product are 2,000 and 1,800,
respectively. Using a 90% learning rate the company would estimate the direct labor hours for the
fifth unit to be
a) 1692.4 hours.
b. 1620.0 hours.
c. 1566.0 hours.
d. 1523.2 hours.
Ans: C
Difficulty: Hard
Solution: t5=2000/5.152=1566
47. Which of the following is not a true statement regarding learning curves?
a. Learning curves can help managers project labor requirements.
b. Learning curves are not affected by product modifications.
c. Learning curves are useful in developing production scheduling plans.
d. Learning curves can help make overall product cost estimates.
Ans: B
41. Forecast methods based on judgment, opinion, past experiences, or best guesses are known as
___________ methods.
a. quantitative
b. qualitative
c. time series
d. regression
Difficulty: Easy
42. A forecast
a. predicts what will occur in the future.
b. results from an uncertain process.
c. support strategic planning.
Difficulty: Easy
43. Forecasts of product demand determine how much
a. inventory is needed.
b. product to make.
c. material to purchase from suppliers.
Difficulty: Easy
44. The ______________ effect is caused in part by distortion in product demand information caused by
inaccurate forecasts.
a. bullwhip
b. regression
c. error
Difficulty: Easy
45. Continuous replenishment relies heavily on ____________term forecast.

a. short-
b. medium-
c. long-
Difficulty: Easy
46. In ___________________ replenishment, the supplier and customer care continuously update data.
a. demand
b. ongoing
c. continuous
d. forecasted
Difficulty: Easy
47. ________________ demand is a key to providing good-quality service.
a. Predicted
b. Forecasted
c. Anticipated
d. Unknown
Difficulty: Easy
48. A long-range forecast would normally not be used to

a. design the supply chain.
b. implement strategic programs.
c. determine production schedules.
d. plan new products for changing markets.
49. A forecast where the current period’s demand is used as the next period’s forecast is known as a
a. moving average forecast.
b. naïve forecast.
c. weighted moving average forecast.
d. Delphi method.
50. Which of the following is not a type of predictable demand behavior?
a. trend
b. random variation
c. cycle
d. seasonal pattern
51. A ___________ is an up-and-down movement in demand that repeats itself over a period of more
than a year.
a. trend
b. seasonal pattern
c. random variation
d. cycle
Difficulty: Easy
52. Selecting the type of forecasting method to use depends on

a. the time frame of the forecast.
b. the behavior of demand and demand patterns.
c. the causes of demand behavior.
Difficulty: Easy
53. A qualitative procedure used to develop a consensus forecast is known as
a. exponential smoothing.
b. regression methods.
c. the Delphi technique.
d. naïve forecasting.
54. The sum of the weights in a weighted moving average forecast must
a. equal the number of periods being averaged.
b. equal 1.00.
c. be less than 1.00.
d. be greater than 1.00.
Difficulty: Easy
55. An exponential smoothing forecasting technique requires all of the following except
a. the forecast for the current period.
b. the actual demand for the current period.
c. a smoothing constant.
d. large amounts of historical demand data.
56. Given the demand and forecast values below, the naïve forecast for September is
Period Demand Forecast
April 100 97
May 105 103

June 97 98
July 102 105

August 99 102
September
a. 100.6.
b. 99.0.
c. 102.0.
d. cannot be determined.
Solution: Naïve forecast=99.0
57. The smoothing constant, α, in the exponential smoothing forecast

a. must always be a value greater than 1.0.
b. must always be a value less than 0.10.
c. must be a value between 0.0 and 1.0.
d. should be equal to the time frame for the forecast.
58. The closer the smoothing constant, α, is to 1.0 the

a. greater the reaction to the most recent demand.
b. greater the dampening, or smoothing, effect.
c. more accurate the forecast.
d. less accurate the forecast.
59. The exponential smoothing model produces a naïve forecast when the smoothing constant, α, is
equal to
a. 0.00.
b. 1.00.
c. 0.50.
d. 2.00
60. The _______ method uses demand in the first period to forecast demand in the next period.
a) naïve
b) moving average
c) exponential smoothing
d) linear trend
61. The _________________ forecast method consists of an exponential smoothing forecast with a
trend adjustment factor added to it.
a) exponentially smoothed
b) adjusted exponentially smoothing
c) time series
d) moving average
62. Given the following demand data for the past five months, the three-period moving average
forecast for June is
Period Demand
January 120
February 90
March 100
April 75
May 110
a. 103.33.
b. 99.00.
c. 95.00.
d. 92.50
Solution: Moving Average, MA3=95.00
63. Given the following demand data for the past five months, the four-period moving average forecast
for June is
Period Demand
January 120
February 90
March 100
April 75
May 110
a. 96.25.
b. 99.00.
c. 110.00.
d. 93.75.
Solution: Moving Average, MA4=93.75
64. A company wants to produce a weighted moving average forecast for April with the weights 0.40,
0.35, and 0.25 assigned to March, February, and January respectively. If the company had demands
of 5,000 in January, 4,750 in February, and 5,200 in March, then April’s forecast is
a. 4983.33.
b. 4992.50.
c. 4962.50.
d. 5000.00.
Solution: Weighted Moving Average, WMA3=4992.50
65. The weighted moving average forecast for the fifth period, with weights of 0.15 for period 1, 0.20
for period 2, 0.25 for period 3, and 0.40 for period 4, using the demand data shown below is
Period Demand
1 3,500
2 3,800
3 3,500
4 4,000
a. 3,760.
b. 3,700.
c. 3,650.
d. 3,325.
Solution: Weighted Moving Average, WMA3=3,760
66. For the demand values and the January forecast shown in the table below the exponential
smoothing forecast for March using α = 0.30 is
January 500 480

Februar
y 476
March 503
April
a. 489.
b. 486.
c. 483.
d. 480.
Difficulty: Hard
Solution: Exponential Smoothing, F3=489
67. For the demand values and the January forecast shown in the table below the exponential
smoothing forecast for March using α = 0.40 is
January 1,250 1,200

Februar
y 1,225
March
a. 1,200.
b. 1,220.
c. 1,222.
d. 1,225.
Difficulty: Hard
Solution: Exponential Smoothing, F3=1,222.
68. If the forecast for July was 3,300 and the actual demand for July was 3,250, then the exponential
smoothing forecast for August using α = 0.20 is
a. 3,300.
b. 3,290.
c. 3,275.
d. 3,250.
Solution: Exponential Smoothing, F2=3,290.
69. Given the demand and forecast values shown in the following table,
June 495 484
July 515 506
August 519 528
September 496 506
October 557 550
calculate the three-period moving average forecast for November.
a. 516.
b. 528.
c. 524.
d. 515.
Solution: Moving Average, MA3=524
70. Given the demand and forecast values shown in the table below,
June 495 484
July 515 506
August 519 528
September 496 506
October 557 550
the exponential smoothing forecast for November using α = 0.35 is
a. 552.45.
b. 553.50.
c. 554.55.
d. 557.50.
Solution: Exponential Smoothing, F6=552.45
Deman Foreca
Period d st
June 495 484
July 515 506
August 519 528
Septemb
er 496 506
October 557 550
the forecast error for September is
a. 10.00.
b. -10.00.
c. 1.00.
d. 39.00.
Solution: E=-10.00
72. If forecast errors are normally distributed then

a. 1 MAD = 1σ
b. 1 MAD ≈ 0.8 σ
c. 0.8 MAD ≈ 1σ
d. 1 MAD ≈ 1.96 σ
73. A forecasting model has produced the following forecasts,
Period Demand Forecast Error

January 120 110
February 110 115

March 115 120
April 125 115

May 130 125
the forecast error for February is
a. 10.
b. -10.
c. -15.
d. -5
Solution: E=-5
June 495 484
July 515 506
August 519 528
September 496 506
October 557 550
the mean absolute deviation (MAD) through the end of October is
a. 9.20
b. -9.20
c. 1.00
d. 7.00
Difficulty: Hard
Solution: MAD=9.20
75. The per-period average of cumulative error is called

a. cumulative forecast variation.
b. absolute error.
c. average error.
d. noise.
Difficulty: Easy
76. A forecasting model has produced the following forecasts:
January 120 110

February 110 115
March 115 120

April 125 115
May 130 125
The mean absolute deviation (MAD) for the end of May is
a. 7.0.
b. 7.5.
c. 10.0.
d. 3.0
Difficulty: Hard
Solution: MAD=7.0

January 120 110
February 110 115

March 115 120
April 125 115

May 130 125
The mean absolute percent deviation (MAPD) for the end of May is
a. 0.0250.
b. 0.0583.
c. 0.5830.
d. 0.6670.
Difficulty: Hard
Solution: MAPD=0.0583

January 120 110
February 110 115

March 115 120
April 125 115

May 130 125
At the end of May the average error would be
a. 7.
b. 5.
c. 3.
d. 1.
Solution: Ebar=3
January 120 110

February 110 115
March 115 120

April 125 115
May 130 125
At the end of May the tracking signal would be
a. 0.000.
b. 0.667.
c. 1.333.
d. 2.143.
Difficulty: Hard
Solution: Tracking Signal=2.143
80. The mean absolute percentage deviation (MAPD) measures the absolute error as a percentage of
a. all errors.
b. per-period demand.
c. total demand.
d. the average error.
81. A large positive cumulative error indicates that the forecast is probably
a. higher than the actual demand.
b. lower than the actual demand.
c. unbiased.
d. biased.
82. Which of the following statements concerning average error is true?

a. A positive value indicates high bias, and a negative value indicates low bias.
b. A positive value indicates zero bias, and a negative value indicates low bias.
c. A negative value indicates zero bias, and a negative value indicates high bias.
d. A positive value indicates low bias, and a negative value indicates high bias.
83. Which of the following is a reason why a forecast can go out of control?
a. a change in trend
b. an irregular variation such as unseasonable weather
c. a promotional campaign
84. Which of the following can be used to monitor a forecast to see if it is biased high or low?
a. a tracking signal
b. the mean absolute deviation (MAD)
c. the mean absolute percentage deviation (MAPD)
d. a linear trend line model
85. A tracking signal is computed by

a. multiplying the cumulative error by MAD.
b. multiplying the absolute error by MAD.
c. dividing MAD by the cumulative absolute error.
d. dividing the cumulative error by MAD.
86. Regression forecasting methods relate _________to other factors that cause demand behavior.
a) supply
b) demand
c) time
d) money
87. Correlation is a measure of the strength of the

a. nonlinear relationship between two dependent variables.
b. nonlinear relationship between a dependent and independent variable.
c. linear relationship between two dependent variables.
d. linear relationship between a dependent and independent variable.
88. A mathematical technique for forecasting that relates the dependent variable to an independent
variable is
a. correlation analysis.
b. exponential smoothing.
c. linear regression.
d. weighted moving average.
Difficulty: Easy
(Use the following information for the next five problems.)
The owner of Koffi, the sole coffee house located in a resort area, wants to develop a forecast based on
the relationship between tourism and coffee drinks sold. He has generated the following data over the
past 12 months:
Tourists Coffee Drinks

Month (thousands) (per day)
January 22 132
February 25 175
March 34 210
April 30 150
May 15 60
June 10 50
July 8 45
August 6 40
Septembe
r 10 35
October 15 75
November 18 110
December 20 140
The data from using Data Analysis on Excel is as follows:
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.954141355
R Square 0.910385725
Adjusted R Square 0.901424297
Standard Error 18.57063782
Observations 12
ANOVA
df SS MS F
Regression 1 35034.98077 35034.98 101.5894
Residual 10 3448.685892 344.8686
Total 11 38483.66667
Coefficients Standard Error t Stat P-value

Intercept -11.5743276 12.46354188 -0.92865 0.37494
Tourists (thousands) 6.389163997 0.633898777 10.07915 1.48E-06
89. What is the approximate intercept, a?

a. -11.6
b. 11.6
c. 6.4
d. -6.4
90. What is the approximate slope, b?
a. -11.6
b. 11.6
c. 6.4
d. -6.4
91. What is the forecasted number of coffee drinks sold if the number of tourists is 25 (thousand)?
a. 128
b. 138
c. 148
d. 158
92. What is the correlation?

a. 0.95
b. 0.91
c. 0.90
d. 19
93. What is the coefficient of determination?

a. 0.95
b. 0.91
c. 0.90
d. 18
94. Data mining uses and analyzes data that is stored in (KURANG YAKIN)
a. databases.
b. data warehouses.
c. data marts.
95. _______________ can be subdivided into ________________ that store subsets of data. (KURANG
YAKIN)
a. Databases, data warehouses
b. Data warehouses, data marts
c. Databases, data marts
d. Data warehouses, databases
96. Association rule learning is a data mining technique that

a. discovers trends, predicts future events, and assesses possible course of action.
b. searches for relationships between variables.
c. identifies groups of data that fall naturally together.
97. Cluster analysis is a tool that

b. searches for exact relationships between variables.
98. Data mining (KURANG YAKIN)

b. searches for exact relationships between variables.

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Chapter 1 Multiple Choice

1. Operations management is concerned with the _________ of a firm’s productive systems.

2. The transformation process associated with health care is best described as

5. All of the following are responsibilities of operations managers except

10. Sustainability, in it’s broadest sense, include(s)

11. Mass production is well suited to all of the following except

13. Companies go global to

Machine rate $15

Units produced 50,000

Labor hours 4,000

Machine hours 2,000

Cost of materials $20,000

Cost of energy $5,000

Machine rate $15

Units produced 50,000

Labor hours 4,000

Machine hours 2,000

Cost of materials $20,000

Cost of energy $5,000

Machine rate $15

Units produced 50,000

Labor hours 4,000

Machine hours 2,000

Cost of materials $20,000

Cost of energy $5,000

Units produced 10,000

Labor hours 1,000

Cost of materials $2000

Cost of energy $500

Units produced 10,000

Labor hours 1,000

Cost of energy $500

Units produced 10,000

Labor hours 1,000

Cost of materials $2000

Cost of energy $500

57. _____________ is how the mission of a firm is accomplished.

58. _____________ represents what the firm is in the business of doing.

Chapter 2 Multiple Choice

44. The degree to which a product meets pre-established standards is known as

46. __________________ advocated continuous improvement to the production process to achieve

48. W. Edwards Deming’s overall philosophy for achieving quality is embodied in

50. Directly involving employees in the quality management process is referred to as

Stage Average Percentage

Solution: Yield=0.92*0.95*0.96*0.93*200=156 units.

Stage Average Percentage

a. approximately 119 units

Solution: 100/(0.98*0.97*0.96*0.92)=119 units

Stage Average Percentage

Solution: 500*(0.95*0.95*0.93*097)=407 units

Stage Average Percentage

a. approximately 430 units

Solution: 350/(0.95*0.95*0.93*097)=430 units

The quality productivity ratio (QPR) is

79. Quality costs include the cost of _____________________.

80. The cost of achieving good quality includes

81. The cost of achieving poor quality includes

83. ISO in ISO 9000 is

Chapter 4 Multiple Choice

2. Which of the following is not a characteristic of an effective product design process?

3. All of the following are characteristics of an effective design process except

4. Product design begins with

5. If a firm’s design process is too lengthy

Solution: Yield=0.920.950.960.93200=156 units.

Solution: 100/(0.980.970.96*0.92)=119 units

Solution: 500(0.950.950.93097)=407 units

Solution: 350/(0.950.950.93*097)=430 units