Final

Question 0

Subaru’s green plant is an example of the application…..

Answer 0

ISO 14000

Question 1

True or False: internal failure cost are associated with scrap, rework, and downtime.

Answer 1

True

Question 2

Total Quality Management emphasizes

Answer 2

a commitment to quality that goes beyond internal company issues to suppliers and customers

Question 3

A successful TQM program incorporates all of the following except

Answer 3

centralized decision making authority

Question 4

Which of the following statements regarding six sigma is true?

Answer 4

The term has two distinct meanings. One is statistical the other is a comprehensive quality system.

Question 5

The process of identifying other organizations that are best at some facet of your operation and then modeling your organization after them is known as

Answer 5

Benchmarking

Question 6

A fish bone diagram is also known as a

Answer 6

Cause and effect diagram

Question 7

True or False:

Pareto charts are a graphical way of identifying the few critical items from the many less important

Answer 7

True

Question 8

Among the tools of TQM the tool ordinarily used to aid in the understanding of the sequence of events through which a product travels is a

Answer 8

Flowchart

Question 9

Which of the following is not a typical inspection point?

Answer 9

After a costly process

Question 10

Effective capacity is the

Answer 10

Capacity the firm expects to achieve given the current operating constraints

Question 11

The academic computing center has 5 trainers available in its computer lab to provide training sessions to students assume that the system is 1,900 students per semester and the effective capacity equals 90% of design capacity. If the number of students who actually got their orientation is 1,500 what is the efficiency of the system?

Answer 11

87.7%

Question 12

Adding a complementary product to what is currently being produced is a demand management strategy used when

Answer 12

The existing product has seasonal or cyclical demand

Question 13

Which of the following represents represents a common way to mange capacity in the service sector?

Answer 13

Changes in staffing levels

Question 14

The process time of a system is equivalent to

Answer 14

The process time or bottleneck

Question 15

Which of the following is not one of the four principles of bottleneck management?

Answer 15

Bottlenecks should be moved to the end of the process

Question 16

Break-even is the number of units at which

Answer 16

Total revenue equals total cost

Question 17

Which of the following costs would be incurred even if no units were produced?

Answer 17

Building rental cost

Question 18

True or False:

Fixed costs are those costs that continue even if no units are produced

Answer 18

True

Question 19

Currency risk is based on what assumption?

Answer 19

Values of foreign currencies continually rise and fall in most countries

Question 20

In location planning, environmental regulations, cost and availability of utilities, and taxes are

Answer 20

Regional/community factors

Question 21

Which of the following workers is the most productive?

Answer 21

$100 wages, 21 parts produced

Question 22

Intangible costs include which of the following

Answer 22

All of the above

Question 23

Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type,of,country ranking?

Answer 23

Based on corruption

Question 24

The reason fast food restaurants often are found in close proximity to each other is

Answer 24

Location clustering near high traffic flows

Question 25

Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?

Answer 25

Factor rating method

Question 26

The transportation method, when applied to location analysis

Answer 26

Minimizes total production and transportation costs

Question 27

Traffic counts and purchasing power analysis of drawing area are techniques associated with

Answer 27

A retail or professional service location decision

Question 28

Which if the following is a location analysis technique typically employed by a service organization?

Answer 28

Purchasing power analysis

Question 29

True or False:

A major challenge in inventory management is to maintain a balance between inventory investment and customer service

Answer 29

True

Question 30

Which of the following would not generally be a motive to hold inventories?

Answer 30

To minimize holding cost

Question 31

Which of the following statements about ABC analysis is false?

Answer 31

ABC analysis is based on the presumption that all items must be tightly controlled to produce cost savings

Question 32

Which of the following is an element of inventory holding cost?

Answer 32

All of the above

Question 33

An inventory decision rule states quote “When the inventory level goes down to 14 gearboxes 100 gearboxes will be ordered which of the following statement is true.”

Answer 33

14 is the reorder point and 100 is the reorder quantity

Question 34

Which of the following statements about quantity discounts is false?

Answer 34

The larger the annual demand the less attractive a discount t schedule will be

Question 35

The purpose of safety stock is to

Answer 35

Control the likelihood of a stock out due to variable demand and or lead time

Question 36

Which of the following items is most likely managed using a single period order model?

Answer 36

Christmas trees

Question 37

A disadvantage of a fixed period inventory system is that

Answer 37

Since there is no count of inventory during the review period a stock out possible

Question 38

Among the advantages of cycle counting is that it

Answer 38

Allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory