Final Flashcards
Subaru’s green plant is an example of the application…..
ISO 14000
True or False: internal failure cost are associated with scrap, rework, and downtime.
True
Total Quality Management emphasizes
a commitment to quality that goes beyond internal company issues to suppliers and customers
A successful TQM program incorporates all of the following except
centralized decision making authority
Which of the following statements regarding six sigma is true?
The term has two distinct meanings. One is statistical the other is a comprehensive quality system.
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
Benchmarking
A fish bone diagram is also known as a
Cause and effect diagram
True or False:
Pareto charts are a graphical way of identifying the few critical items from the many less important
True
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
Flowchart
Which of the following is not a typical inspection point?
After a costly process
Effective capacity is the
Capacity the firm expects to achieve given the current operating constraints
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?
87.7%
Adding a complementary product to what is currently being produced is a demand management strategy used when
The existing product has seasonal or cyclical demand
Which of the following represents represents a common way to mange capacity in the service sector?
Changes in staffing levels
The process time of a system is equivalent to
The process time or bottleneck
Which of the following is not one of the four principles of bottleneck management?
Bottlenecks should be moved to the end of the process
Break-even is the number of units at which
Total revenue equals total cost
Which of the following costs would be incurred even if no units were produced?
Building rental cost
True or False:
Fixed costs are those costs that continue even if no units are produced
True
Currency risk is based on what assumption?
Values of foreign currencies continually rise and fall in most countries
In location planning, environmental regulations, cost and availability of utilities, and taxes are
Regional/community factors
Which of the following workers is the most productive?
$100 wages, 21 parts produced
Intangible costs include which of the following
All of the above
Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type,of,country ranking?
Based on corruption
The reason fast food restaurants often are found in close proximity to each other is
Location clustering near high traffic flows
Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?
Factor rating method
The transportation method, when applied to location analysis
Minimizes total production and transportation costs
Traffic counts and purchasing power analysis of drawing area are techniques associated with
A retail or professional service location decision
Which if the following is a location analysis technique typically employed by a service organization?
Purchasing power analysis
True or False:
A major challenge in inventory management is to maintain a balance between inventory investment and customer service
True
Which of the following would not generally be a motive to hold inventories?
To minimize holding cost
Which of the following statements about ABC analysis is false?
ABC analysis is based on the presumption that all items must be tightly controlled to produce cost savings
Which of the following is an element of inventory holding cost?
All of the above
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.”
14 is the reorder point and 100 is the reorder quantity
Which of the following statements about quantity discounts is false?
The larger the annual demand the less attractive a discount t schedule will be
The purpose of safety stock is to
Control the likelihood of a stock out due to variable demand and or lead time
Which of the following items is most likely managed using a single period order model?
Christmas trees
A disadvantage of a fixed period inventory system is that
Since there is no count of inventory during the review period a stock out possible
Among the advantages of cycle counting is that it
Allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory
