Chapter 1 - What Is Production /Operations Management?
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1.
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____________________________ is not a system of Operation management (OM) 2
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  Planning systems.
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Operating and controlling systems.
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Parallel systems.
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Designing systems.
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2.
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The new models and trends in OM do not include 15
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Agility
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Make and sell
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Sense and respond
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Modularity
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3.
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Which of the following statement is not true regarding the need for continuous improvement within companies? 12
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Global development and more open trade have resulted in more companies with which each company must compete.
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Currency differentials among countries have increased.
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The companies with which a company has competed have become better.
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Customer expectations have increased.
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4.
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The tool that is most useful in brainstorming to the root cause of a problem is the 13
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Histogram.
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Location plot.
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Fishbone diagram.
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X chart.
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5.
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Business Process Reengineering (BPR) means that a company 14
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Uses a systematic process to design its product in accordance with customer needs.
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Has an objective to automate all of its work.
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Makes a new beginning at evaluating and designing the work processes.
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Has the need for quality improvement at all levels.
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6.
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The performance characteristic of flexibility means 6
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High quality.
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Lower than industry average costs.
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A quick response to changing markets and demand.
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Delivery of goods or services on schedule.
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7.
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The performance characteristic of cost efficiency means 5
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High quality.
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Lower than industry average costs.
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A quick response to changing markets and demand.
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Delivery of goods or services on schedule.
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8.
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Which of the following is not a challenge of supply chain management? 15
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Lead time compression.
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Decreased outsourcing.
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Globalization.
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Shortened product development time.
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9.
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ISO 9000 is the general name used through the European Economic Community for 13
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Statistical variation measurement system.
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Accepted quality standards.
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Setting upper and lower control limits.
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Benchmarking.
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10.
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_______________ examining excellent performers outside the industry and seeing how you can use their best practices. 13
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Brainstorming.
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Benchmarking.
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Pareto analysis.
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Multiple activity charting.
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11.
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Using the 80/20 rule for analysis involves the 13
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Cause-and-effect diagram.
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Checksheet.
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Pareto analysis.
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Scatterplot.
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12.
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Modeling types do not include 24
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Narrative models.
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Physical models.
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Mathematical models.
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Contentious models.
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13.
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What is a decision matrix? 20
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An approach to decision making under risk.
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Value of an imperfect estimate.
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Value of an elastic decision.
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Value of a designed quadrant.
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14.
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Decision-making under certainty and conflict involves three major elements: decision strategy, states of nature and: 20
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Income.
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Level scheduling.
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Outcome.
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Aggregate planning.
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Chapter 2 - Tools for Decision Making
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15.
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One weakness of simulation is: 25
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No automatic searching or optimization done.
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Replicate the characteristics of a real system.
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Limit risk and time consumption.
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Allows for time compression scenarios.
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16.
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Of the following, the most suitable short range forecast would be 40
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Technological.
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Economic.
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Exponential smoothing.
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Regression.
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17.
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Subjective forecasting methods include 36
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Adaptive smoothing.
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Tracking signal.
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Delphi.
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Double exponential smoothing.
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18.
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Which of the following is not true about the mean standard error (MSE)? 42
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It is a measure of forecasting performance.
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It is similar to the coefficient of variation.
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It can be used in selecting the smoothing constant.
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It provides a substitute for the standard deviation.
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19.
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When using a simple moving average to forecast demand, one 40
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Gives equal weight to all demand figures.
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Assigns more weight to the more current data.
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Includes new data in the average without discarding earlier data.
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Uses an alpha of between 0 and 1.
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20.
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Which of the pairs is most closely related? 46
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Coefficient of linear correlation and coefficient of determination.
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Coefficient of determination and standard error of the estimate.
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Running sum of the forecast error and coefficient of linear correlation.
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Mean absolute deviation and technological forecasting.
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21.
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Flexible Manufacturing System (FMS) is most suited for 67
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Repetitive.
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Batch.
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Job shop.
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Project.
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22.
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The goal of computer-integrated manufacturing (CIM) does not include 67
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Reduced direct labor.
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Minimum cycle time.
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Minimum cost.
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Information from marketing.
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23.
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Effective utilization is a ratio between expected capacity of a firm and 77
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Manufacturing capacity.
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Limited capacity.
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Production capacity.
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Design capacity.
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24.
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Location decisions 94
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Are easy to optimize.
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Are one-time decisions.
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Need to be reviewed occasionally.
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Start with a site selection.
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25.
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An example of a subjective location factor is 87
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Energy availability and costs.
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Water availability and costs.
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Taxes.
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Appearance
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26.
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When utilizing a point rating scheme for arriving at a location decision 90
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The objectives being considered must be equally important.
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Intangible factors cannot be assigned points.
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Weights may total 1.00.
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The need for judgment is removed.
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Chapter 3 - Demand Management and Forecasting
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27.
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The ____________________ can be used to distribute capacity to demand centers. 92
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Center-of-Gravity Method.
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Quadratic programming.
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Factor ratings.
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Transportation method.
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28.
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Which firm would benefit most by using the transportation method of linear programming? 92
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A retail firm.
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Multiple supply, multiple warehouses.
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Multiple supply, single warehouse.
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Single supply, multiple warehouses.
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29.
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Location break-even analysis is an economic comparison of locational options based on 89
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Work-force composition.
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Demand forecasts and orders.
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Variable and fixed cost breakdown.
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Inventory control.
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30.
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The factors that need to be addressed in job design do not include 113
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Design of work methods
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Work scheduling
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Work measurement
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Design of physical workplace
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31.
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A method of increasing job variety by horizontally loading jobs is 99
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Autonomous work.
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Job enlargement.
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Job enrichment.
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Quality circles.
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32.
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A(n) __________ curve is a graph or equation that expresses the expected rate of improvement in productivity as more units are produced. 109
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Incremental cost.
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Gantt.
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Learning.
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Quadratic.
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33.
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The learning curve theory has found useful applications in many areas, excluding: 111
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Budgeting, purchasing, and inventory planning.
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Setting fixed overhead standards..
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Setting production standards.
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Pricing new products
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34.
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Work sampling is a work measurement methodology that estimates the portion of time and employee utilized in 106
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Performing maintenance tasks.
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Performing assigned job tasks.
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Performing pre-job planning.
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Performing pure strategy
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35.
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Systematic layout planning is a generalized approach to layout that indicates nearness priorities other than transportation costs. 121
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36.
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The construction of a highway would best be accomplished by use of a 120
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Fixed position layout.
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Product layout.
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Process layout.
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Plant layout.
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Chapter 4 - Process Selection and Capacity Planning
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37.
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Characteristics of process or functional layouts are 119
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Few tasks.
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Inflexible equipment.
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Low employee cost.
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Smaller investment.
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38.
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Hospitals are generally an example of 119
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Flow-line layout.
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Dominated flow.
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Process (functional) layout.
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Cycle time.
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Chapter 5 - Facility Location Planning
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39.
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Characteristics of layout by product include 118
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Low production cost.
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Increased process flexibility.
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Smaller investment.
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Alert staff.
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40.
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Line balancing 123
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Seeks to select the combination of work elements to be performed that would minimize setup costs.
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Obtain the desired level of output with the minimum input of labor and other resources.
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Tries to maximize cycle time, and thus output.
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Is key to the success of JIT.
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41.
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For manufacturing operations, which is not part of a traditional aggregate planning analysis? 135
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Work force size.
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Inventory level.
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Economies of scale.
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Production rate.
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42.
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The _______________ would be classed as a quadratic programming approach to the aggregate planning problem. 135
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Linear decision rule.
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Transportation.
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Search decision rule.
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Trial-and-error.
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Chapter 6 - Design of Work Systems
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43.
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Which aggregate planning method does not generate an optimal solution? 144
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Transportation method.
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Linear decision rule.
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Trial and error
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Linear programming..
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44.
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Determining resource requirements through the use of a rough cut approach 144
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Results in an optimal solution.
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Constrains the mathematical form of the problems.
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Is too time-consuming even with a computer.
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Relies on judgment to determine the most desirable master production schedule.
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Chapter 7 - Facilities Positioning
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45.
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Management coefficients capacity planning relies on 144
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A pseudoproduct.
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A restricted product mix.
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Bills of labor.
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Multiple regression.
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46.
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The two stages of scheduling, in order, are 146
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Dispatching and estimating.
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Requisitioning and loading.
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Loading and forecasting.
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Loading and sequencing.
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Chapter 8 - Production Planning Systems: Aggregate Planning and Master Production Scheduling
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47.
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Johnson's rule for job sequencing is used if 150
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The objective is to minimize the completion time for a group of jobs that are to be processed on two machines or at two successive work centers.
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The objective is to maximize idle time.
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In-process inventory and setup costs are dependent on sequence.
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Non-optimal but quick solutions are desired.
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48.
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Which of the following statement is false regarding the master production schedule (MPS)? 134
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The MPS must be desegregated into time-phased requirements for individual products.
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The MPS usually states weekly product requirements over a 6- to 12-month time horizon.
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The MPS is a forecast.
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The MPS is a schedule of when production should be completed.
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49.
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Which of the following statement is false regarding the master production schedule (MPS)? 145
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The MPS must be desegregated into time-phased requirements for individual products.
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The MPS usually states weekly product requirements over a 6- to 12-month time horizon.
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The MPS is a forecast.
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The MPS is a schedule of when production should be completed.
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50.
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Which aggregate planning method is most widely used? 135
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Transportation..
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Linear decision rule.
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Search decision rule.
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Trial-and-error.
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Chapter 9 - Independent Demand Inventory Systems
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51.
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___________________________ is not an aggregate planning method. 135
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Transportation method.
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Simulation.
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Management coefficients model.
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Search decision rule (sdr)
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52.
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The purpose of scheduling is to: 146
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Desegregate the general production plan into time-phased weekly, daily, or hourly activities.
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Neutralize the average lateness.
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Keep labor and facilities idle.
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Maximize setup costs.
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53.
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The allocation of workloads to specific work is 146
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Dispatching and estimating.
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Requisitioning.
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Loading.
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Sequencing.
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54.
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Sequencing is a process that determines the priorities job orders should have in the manufacturing process. Sequencing results in priority rules for job orders. T F 148
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55.
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Which of the following statement is not true regarding the difference between independent demand and dependent demand? 159
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Independent demand systems supply demand outside the organization, dependent-demand systems supply demand inside.
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The need for independent demand items must be estimated while dependent can be calculated.
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Dependent demand requires EOQ.
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Most dependent demand items are used to produce the independent demand items.
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56.
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ABC analysis 171
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Determines the relative price per unit of all products.
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Requires an accurate physical inventory.
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Establishes the relative expenditures for all inventory items.
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Is part of Kanban.
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57.
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Service level 167
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Relates to the percentage of demand not supplied from inventory.
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Can be defined as the percentage of lead times when demand was met from inventory.
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Can be defined as the percentage of lead times when a stockout occurred.
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Cannot be measured accurately.
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Chapter 10 - Material Requirement Planning and Just-In-Time Systems
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58.
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The economic order quantity (EOQ) model does not take into account 163
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Quantity discounts.
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Ordering costs.
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Carrying costs.
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Lead time.
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59.
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The cycle time 163
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Is the time between orders or between the beginnings of runs.
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Is the rate of finished goods inventory build up.
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Is the rate of work in process completion.
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Is the transfer rate between successive work stations.
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60.
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When lead time and demand are not certain, the firm must carry extra units of inventory, called safety stock size. T F 167
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61.
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Which of the following is most related to dependent demand? 179
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Forecasting.
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Distribution by value.
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Critical probability.
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Mrp.
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62.
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Which of the following is not related to Just-in-Time production? 192
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Lumpy demand.
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Insignificant inventory.
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Pull system.
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Total quality.
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Chapter 11 - Planning and Controlling Projects
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63.
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Dependent demand 179
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Should be forecast.
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Should be calculated.
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Was developed by the Japanese.
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Is best applied to finished goods inventory.
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64.
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Manufacturing resources planning (MRPII) does not integrate such information as 187
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Work force levels.
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Just-in-time (JIT) information.
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Inventory investment.
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What if analyses.
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65.
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The information requirements for the technique MRP do not include 182
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Master production schedule.
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BOM file.
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Inventory status file.
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Production activity control.
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66.
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Which one of the following functional business systems supports the production/operations business function? 194
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Compensation analysis.
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Agile technology.
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Cash management.
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Sales force automation.
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67.
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_______________ support all managerial functions in terms of planning, control, and decision making. 194
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Marketing information systems.
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Management information systems.
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Manufacturing information systems.
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Finance information systems.
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68.
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A variety of manufacturing information systems are used to support computer-integrated manufacturing (CIM). CIM is an overall concept that stresses that the objectives of computer-based systems to manufacturing must be to accomplish which of the following? 194
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Simplifying or reengineering production processes but not product designs or factory organization.
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Automating production processes but not the business functions that support them.
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Integrating all production and support processes using computer networks, cross-functional business software and other information technologies.
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Integrating the collaboration and communication within the organization.
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69.
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________________ is an overall concept that stresses that the goals of computer use in factory automation must be to: simplify, automate, and I integrate all production and support processes 194
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Computer-integrated manufacturing (CIM)
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Manufacturing execution.
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Computer-aided manufacturing.
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Process control.
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70.
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________________ are performance monitoring information systems for factory floor operations. The systems include shop floor scheduling and control, machine control, robotics control and process control systems. 195
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Computer-aided manufacturing (CIM) systems.
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Manufacturing execution systems (MESs).
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Process control systems.
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Machine control systems.
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71.
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________________ are those systems that automate the production process. For example, this could be accomplished by monitoring and controlling the production process in a factory or by directly controlling a physical process, a machine tool, or machines with some humanlike work capabilities. 194
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Computer-aided manufacturing systems.
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Manufacturing execution systems.
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Process control systems.
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Machine control systems.
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72.
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In a network, total slack refers to 209
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The amount of time an activity can be delayed without interrupting the critical path.
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The amount of time an activity can be delayed without delaying the early start of a successor activity.
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The amount of time an activity can be delayed without delaying the project completion.
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Tf = es û ls.
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73.
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PERT is combined with cost data to produce the Critical Path Method (CPM) to 210
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Calculate the total project cost inclusive of the additional slack time.
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Solve (1) which jobs to crash and (2) by how much..
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Implement computer-integrated manufacturing concepts.
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Calculate expected activity times.
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Chapter 12 - Analysis of Waiting Lines and Queuing
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74.
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The ____________ is the time required when extra resources are added to complete the project in the minimum possible time. 212
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Crash time..
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Normal time.
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CPA time.
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Slack time.
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75.
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PERT is used for 201
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Determining the optimal product mix.
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Determining product costs.
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Project management.
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Determining the number of servers needed in a fast food restaurant.
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76.
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In PERT, the uncertain activity times are best described by a 205
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Poisson probability distribution
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Exponential probability distribution.
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Beta probability distribution.
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Normal probability distribution.
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77.
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The reciprocal of the mean interarrival time is known as 225
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Service rate.
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Utilization rate.
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Utilization factor.
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Mean arrival rate.
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Chapter 13 - Quality Control and Continuous Improvement
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78.
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If the arrival rate is greater than the service rate 226
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The system will never reach steady state.
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The system is in steady state.
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The situation will require changing the discipline.
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A truncated queuing model needs to be considered.
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79.
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For a single-channel system with Poisson arrivals and a constant service time, what can be said of the mean queue length and the mean waiting time compared to when both arrival rates and service rate are Poisson-distributed? 229
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Both will increase slightly.
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One will increase and one will decrease.
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They will both decrease.
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They will not change.
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80.
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_____________________ is a probability distribution for service time. 224
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Binomial.
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Negative exponential.
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Poisson.
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Chi-square.
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