Exam Questions QIB

Question 1

Name three basic business strategies.

Answer 1

1) Low cost
2) Responsiveness
3) Differentiation from competitors

(Creating value for the customer, e.g. is not a basic business strategy.)

Question 2

What quantifies the ratio between output and input?

Answer 2

Productivity

Question 3

Someone makes the following two claims about outsourcing: “Outsourcing the
production of a certain good is always cheaper than doing it yourself.” and “When
demand is highly fluctuating, it is better to produce it in-house instead of to outsource it.”
Which of these are true?
1) Both claims are true.
2) The first claim is true, but the second one is false.
3) The first claim is false, but the second one is true.
4) Both claims are false.

Answer 3

Both claims are false

Question 4

Explain what Johnson’s rule does.

Answer 4

Johnson’s rule minimizes the makespan and the idle time at the workstations

Question 5

What is the definition of competitveness?

Answer 5

How effectively an organization meets the needs and wants of customers, relative to others that offer similar goods or services.

Question 6

Name three key questions in capacity planning.

Answer 6

1) What kind of capacity is needed?
2) How much capacity is needed?
3) When is the capacity needed?

(Where and why is the capacity needed are NOT key questions in capacity planning.)

Question 7

Give the order of process types in decreasing order of variety.

Answer 7

Job shop - batch process - repetitive process - continuous flow

Question 8

Name a business that has a process-layout.

Answer 8

Hospital

Question 9

Line balancing is …

Answer 9

A method to assgin tasks to workstations to equal workload

Question 10

Why do car resellers concentrate their sales locations in big malls, so-called clustering?

Answer 10

To facilitate the customers in making a car/brand selection.

Question 11

Which of the following is NOT a primary factor to identify a region in the USA, for a location of a plant or shop? Name 3 that are.

Answer 11

Sufficient parking space.

1) Location of markets
2) Appropriate labor
3) Location of materials.
(4) Proximity to public transport )
(5) Governmental policies and laws)

Question 12

What is the major disadvantage of the chase strategy compared to the level approach in aggregate capacity planning?

Answer 12

Workforce may vary.

Question 13

What is yield management?

Answer 13

A strategy to match demand with capacity by varying the price

Question 14

What is meant by Job Flow Time?

Answer 14

The time between arrival and completion of a job.

Question 15

When balancing an assembly line, what is the positional weight of a task?

Answer 15

The time the task and all its successors take.

Question 16

What is the main difference between the three strategic levels: strategic, tactical, operational?

Answer 16

The time frame.

Question 17

Name 3 characterizations of an organization that are qualifiers or order winners.

Answer 17

1) Quality of the products
2) Good after sales
3) Low price

Question 18

The tutorial group meeting for QIB are an example of …

Answer 18

either a job shop or a batch process.

Question 19

Name three basic facility layouts.

Answer 19

1) Product layout
2) Process layout
3) Fixed-position layout

( Variable position layout is NOT a basic facility layout.)

Question 20

Name three assumptions of the EOQ model.

Answer 20

1) Lead time is constant
2) Demand is constant
3) Production rate is constant

(Lead time is known, is NOT an assumption.)

Question 21

What does effieciency measure?

Answer 21

Output to effective capacity.

Question 22

Name three factors in determining whether outsourcing is a good idea.

Answer 22

1) Cost (available capital)
2) Expertise
3) Quality
(4) Available capacity)

(Type of process & quality, are not factors)

Question 23

Name a business that has a product lay-out.

Answer 23

Car wash.

Question 24

What measures multifactor productivity?

Answer 24

Units per dollar input

Question 25

If you outsource a part of your process instead of producing it in-house…

Answer 25

costs might go up or down depending ont the situation.

Question 26

For what type of business, is clustering NOT a good idea?

Answer 26

Repair shops

(For restaurants, furniture shops, and car dealers it is.)

Question 27

What priority rule, minimizes the average flow time?

Answer 27

Shortest Processing Time

Question 28

What are three things that are part of a mission statement of an organization?

Answer 28

1) What business the organization is in
2) Who its customers are
3) Why it has a sustainable competitive advantage

(How its core beliefs shape its business, is not.)