PART 1
Chapter 6
Multiple Choice Question 19
What measures the central tendency of a set of data?
Coefficient of variation
Variance
Standard deviation
Mean
Range
Multiple Choice Question 39
Consider a p-chart measuring the percentage of defective light bulbs. If the LCL is .04 and a sample has 1% defects, what is the implication?
The process is in a state of control.
The process is out of control even though the variation is “good.”
The value of sigma must be increased.
The process has too many errors.
 A calculation error must have occurred
Multiple Choice Question 16
An OC curve is an example of what?
Traditional statistical tools
Fishbone diagramming
Acceptance sampling
Experimental design
Statistical process control
Multiple Choice Question 25
On a control chart, what separates common from assignable causes of variation?
x-bar lines
Control limits
Specification limits
Production limits
Mean divided by standard deviation
Multiple Choice Question 41
What are preset ranges of acceptable quality characteristics?
Control limits
Product specifications
Six-sigma limits
AQC limits
R-chart limits
Chapter 7
Multiple Choice Question 26
According to JIT, __________ is carried to cover up a wide variety of problems, such as poor quality, demand uncertainty, and slow delivery.
Inventory
Excess capacity
A group of back-up workers
Spare equipment
Insurance
Multiple Choice Question 65
Which of the following is not a role of JIT management?
creating a JIT culture
cost and information sharing
serving as coaches and facilitators
developing an incentive system
ensuring multifunctional training occurs
Multiple Choice Question 36
JIT uses a pull system where communication starts with either the customer or with the _________ work station in the production line.
First
Bottleneck
Dominant
Most expensive
Last
Multiple Choice Question 61
JIT production workers are expected to
Cover up quality problems
Ignore data
Take responsibility in getting to the root cause of quality problems
Blame problems on someone else
Have a poor attitude about quality
Multiple Choice Question 70
The benefits of long-term relationships with a small number of suppliers include all of the following except
Always getting the lowest price
Focus on improving process controls
Greater accountability
Develop stable delivery schedules
Eliminate paperwork
Chapter 8
Multiple Choice Question 1
Forecasting is not a function which contributes to:
deciding which business market to pursue
deciding which product to produce
deciding how bonuses should be allocated
deciding how much inventory to carry
deciding how many people to hire
Multiple Choice Question 10
Which forecasting method is particularly good for predicting technological changes and scientific advances?
Market research
Executive opinion
Delphi method
NaĂŻve method
Gamma method
Multiple Choice Question 30
What are the most frequently used forecasting techniques?
Linear regression
Simple mean
Exponential smoothing
Weighted moving average
Econometric models
Multiple Choice Question 17
Which of the following is a causal forecasting method?
NaĂŻve
Moving average
Weighted moving average
Trend adjusted exponential smoothing
Linear regression
Multiple Choice Question 74
“Inside information” is most likely garnered through which of the following forecasting methods?
exponential smoothing
seasonal indexes
naĂŻve
Delphi
multiple regression
Chapter 9
Multiple Choice Question 56
The least likely reason for a U.S. firm to choose to locate a factory in a foreign country is _____________.
climate
Natural resources
markets
cheaper suppliers
low labor costs
Multiple Choice Question 55
Issues that need to be considered in location globally include all of the following except______________.
different cultures
FEC accounting requirements
language barriers
different laws
different business practices
Multiple Choice Question 6
Capacity planning is complicated by the fact that ___________________.
capital markets are complex
existing facilities may become obsolete
capacity is difficult to define
capacity is usually purchased in chunks, rather than smooth increments
depreciation must be calculated
Multiple Choice Question 44
Service organizations such as restaurants, movie theaters, and banks focus on locating near ____________.
suppliers
roads
intersections
their customers
potential workers
Multiple Choice Question 25
Management has decided to add capacity incrementally in smaller chunks as needed, rather than purchasing one large facility. This decision ____________________.
is very risky
will result in low initial costs
will ultimately result in lower costs per unit if demand increases rapidly
positions the company to be well prepared for high demand in the future
can lead to a large amount of excess capacity
Chapter 10
Multiple Choice Question 34
The first step in designing a layout is
identifying the facility
gathering information
selecting the correct layout software package
developing a REL chart
developing a from-to matrix
Multiple Choice Question 65
What is the term for a system in which the product being worked on is physically attached to the line and automatically moved to the next station when the cycle time has elapsed?
cyclical line
paced line
autoline
continuous line
constrained line
Multiple Choice Question 4
Which of the following is not one of the four basic layout types?
product
hybrid
process
fixed position
inverted
Multiple Choice Question 27
Which company is widely considered to be the leader of just-in-time production?
Ford
Timex
Gateway
Toyota
Sony
Multiple Choice Question 24
A high-volume paper mill is an example of which layout type?
inverted
circular
process
fixed position
product
PART 2
Multiple Choice Question 43
For each work element in the time study, multiplying the mean observed time by the performance rating factor by the frequency of occurrence results in what?
the normal time for the element
the average observed time for the element
the standard time for the element
the average delay for the element
the standard time for the job
Multiple Choice Question 21
The approach that details the tasks of a job and how to do them is ____________________.
work measurement
job evaluation
methods analysis
job design
work sampling
Multiple Choice Question 64
Disadvantages of individual incentive systems include all except which of the following?
They undermine teamwork.
A study has shown they had no effect on worker performance
They avoid the “free-rider” problem
They need a significant amount of data collection
They give employees a short-term focus.
Multiple Choice Question 3
Job design ensures that each employee’s _________ and ________ are geared towards achieving the company’s mission.
compensation, teams
duties, teams
satisfaction, compensation
duties, responsibility
compensation, responsibility
Chapter 12
Multiple Choice Question 17
Companies can achieve cost-efficient operations by using which of the following inventory approaches?
work-in-process to buffer operations
inventory building to leverage reduced setup costs
JIT inventory to reduce overall cost
level work force maintenance through
speculative selling
Multiple Choice Question 27
Which of the following is an assumption of the basic EOQ model?
Lead time is known and constant.
Demand may be seasonal.
Orders can arrive in partial shipments.
Quantity discounts are considered
Lost sales are allowed, but not back orders.
Multiple Choice Question 5
Which inventory function specifically is designed to allow the company to maintain a level production strategy?
anticipation inventory
fluctuation inventory
lot-size inventory
transportation inventory
speculative inventory
Multiple Choice Question 20
Which of the following is not affected by decisions about how much inventory to hold?
item costs
holding costs
depreciation
ordering costs
stockout costs
Chapter 13
Multiple Choice Question 16
What type of aggregate plan sets labor and equipment capacity to satisfy demand each period?
uniform
level
chase
mixed
steady
Multiple Choice Question 32
The comparison of aggregate plans is difficult when they produce different quantities and thus _________.
have different ending inventories
have different staffing levels
have different amounts of overtime
have different amounts of subcontracting
have different revenues
Multiple Choice Question 38
Once you implement a new aggregate plan you must then:
begin the planning process again
evaluate the plan’s performance in terms of cost.
evaluate the plan’s performance in terms of customer service
evaluate the plan’s performance in terms of human resources.
evaluate the plan’s performance in terms of cost and human resources
Multiple Choice Question 53
The master production schedule is shared:
only internally
only with management
only to marketing and engineering.
to all members of the executive team, exclusively
to all members of the supply chain
Chapter 14
Multiple Choice Question 34
Information in the inventory records file that can change with inventory transactions includes the ________.
part number
lot size rule
projected inventory level
lead time
safety stock requirement
Multiple Choice Question 31
The quantity of the replenishment order is based on the __________________________.
capacity available
size of the item
number of workers available
inventory space available
lot sizing rule used
Multiple Choice Question 58
An action notice is generated ________________________________________.
for planned orders in any period
only for orders that are to be released to the shop floor
only for movements to and from the warehouse
only when marketing needs to be notified
when a planned order needs to be released
Multiple Choice Question 12
ERP systems provide _____ and _____ benefits.
tangible, HR
intangible, marketing
marketing, operation
tangible, intangible
CEO, CFO
Chapter 15
Multiple Choice Question 3
Scheduling in the high-volume environment is typically done through what?
priority rules
line design and balancing
Thompson’s rule
Simpson’s rule
Johnson’s rule
Multiple Choice Question 65
The process batch should:
match the transfer batch
exceed the transfer batch
be smaller than the transfer batch.
be fixed
be variable
Multiple Choice Question 16
If the schedule shows a 5 day slack between the end of Task A and start of Task B, this means:
You must start Task B as soon as Task A ends
Task B start is late
Task A is taking longer to complete
Task A and Task B should be performed concurrently
Task B start can be delayed up to 5 days after Task A’s scheduled completion
Multiple Choice Question 12
Which of the following scheduling techniques determines the earliest possible completion time for a job?
finite loading
infinite loading
forward scheduling
backward scheduling
input/output control
Chapter 16
Multiple Choice Question 27
In making a forward pass through a network, three activities are immediate predecessors for activity T. What is the early start time for activity T?
the smallest ES for the three activities that are immediate predecessors for activity T
the largest ES for the three activities that are immediate predecessors for activity T
the smallest EF for the three activities that are immediate predecessors for activity T
the largest EF for the three activities that are immediate predecessors for activity T
the activity time for activity T
Multiple Choice Question 67
One way of wasting safety time in the critical chain approach is multitasking, which involves ___________.
waiting until the last minute to start a project
interaction among project activities
having the computer operating system do everything
using a person or resource for more than one project
reversing the order of the activities
Multiple Choice Question 8
Which phase in the project life cycle involves analyzing the project risk?
conception
feasibility analysis or study
planning
execution
termination
Multiple Choice Question 18
The critical path is the sequential path of interrelated activities which has the ____________________.
most activities
longest time
most nodes
most events
most arrows
Multiple Choice Question 71
PERT is credited with reducing the duration of the Polaris missile project by _________________.
one year
two years
three years
four years
five years
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