Pretest

Question 1

Which of the following id a combined approach for process improvement and problem solving based on reducing non-value added activities, decreasing process variation, and improving product quality?

Answer 1

Lean Six Sigma

Lean six sigma is a management approach for problem solving and process improvement based on a combination of the different tools of six sigma and lean manufacturing.

Question 2

Resource planning takes place at which of the following levels?

Answer 2

Business Plan

Resource planning addresses capacity planning conducted at the business plan level.

Question 3

If risk reduction is the organizations primary motivation when selecting one or more suppliers for a good that is available from several sources, which method should it select?

Answer 3

Multisourcing

Question 4

Which of the following types of files is a key input to material requirements planning (MRP)?

Answer 4

Bill of Material

The bill of material (BOM) is a listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly, showing the required quantity of each. When the MRP BOM explosion occurs, the BOM enables the identification of all items and quantities that need to be replenished. The routing file includes the operations to be performed, their sequence, the various work centers involved, and the standards for setup and run. The supplier master file contains the detail on suppliers used by the company and is considered part of the MRP output for purchase replenishment. The work center file contains the detail on the productive resources that are available for MRP production order output.

Question 5

In the theory of constraints (TOC), what is the term” weakest link” used to describe?

Answer 5

Resource with the least throughput in the system

Question 6

A company is seeking to design a new product as a low-cost manufacturer. Which of the following design methods brings product and process design groups together to achieve this objective?

Answer 6

Simultaneous engineering

Simultaneous engineering, also called participative design/engineering, is a concept that refers to the participation of all the functional areas of the firm in the product design activity. Suppliers and customers are often also included.

Question 7

Various cost-saving opportunities can be achieved from acquiring businesses with closely related

Answer 7

Sales activities where products are sold tot he same customers

Various cost-saving opportunities spring from acquiring businesses with closely related sales and marketing activities where products are sold to the same customers. A single sales force can often reduce sales costs.

Question 8

A statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow is called a

Answer 8

Business Plan

A business plan is a statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow.

Question 9

A workstation can product 100 pencils per hour and possibly 20,000 per year. This is a measure of the workstation’s hourly and annual

Answer 9

Capacity

Capacity is the capability of a worker, plant, work center, machine, plant, or organization to produce output per time period.

Question 10

Dividing the annual cost of sales by the average inventory level will produce which of the following values?

Answer 10

Inventory Turnover

Inventory turnover is the number of times an inventory cycles, or “turns over,” during the year. A frequently used method to compute inventory turnover is to divide the annual cost of sales by the average inventory level.

Question 11

Order promising is the process of

Answer 11

making a delivery commitment

Question 12

Product inventory that is accumulated by the manufacturer in advance of the peak selling season is an example of

Answer 12

Anticipation Inventory

Anticipation inventories are accumulated above basic pipeline stock to cover projected increases in sales or plant shutdowns and vacations.

Question 13

Which of the following is a key performance indicator critical to manufacturing execution and accurate reflection of the company’s assets?

Answer 13

Record Accuracy

Record accuracy is a measure of the conformity of recorded values in a bookkeeping system to the actual values. This measure is critically important to production planning and purchasing teams, as inaccurate records lead to stockouts and lost production time.

Question 14

Which of the following performance objectives refers to the ability to keep promises to customers?

Answer 14

Dependability

There are five generic performance objectives: quality, speed, dependability, flexibility, and cost.

Dependability refers to keeping promises to customers. These promises can include factors such as time and volume, and the ability to delivery the correct amount in the required time frame.

Question 15

Which of the following is the most appropriate first step in managing risk?

Answer 15

Identify the potential causes of failure

Question 16

In a make to order (MTO) environment, master scheduling should take place at which of the following levels?

Answer 16

Raw Material

In an MTO environment, a demand order is typically not produced until an actual order appears. As such, master scheduling in this environment is at the base component and raw material level.

Question 17

In an effort to be more responsive to the market, sales wants to break into production runs in order to product other products. Which of the following manufacturing activities conflicts with the sales request?

Answer 17

Setup

Breaking into production runs will require an additional setup, extending the time required to produce the original product.

Question 18

An organization is working to better empower its factory shop floor line workers by using some lean concepts. Which lean process will empower line worker while also reducing the cost of poor quality?

Answer 18

Jidoka

Jidoka is the Japanese term for the practice of letting those closest to a process to be able to stop the production line when a defect occurs. This will reduce the cost of poor quality by not allowing a defect to be repeated over multiple products.

Question 19

Technology advances frequently can cause in increase in companies competing with enhanced features and functions. What does this typically lead to?

Answer 19

Shortened product life cycles

Question 20

Which of the following statement is true of a situation in which the stocking unit of measure is different from the purchasing unit of measure?

Answer 20

The purchase order receipt will be in the purchasing unit of measure

The purchase order will be in the purchasing unit of measure, as will the receiving documents. Everything else will be in the stocking unit of measure.

Question 21

A company reporting on its environmental activities and results makes sustainability an issue most important to its

Answer 21

Competitors

Successful green initiatives can be used as a competitive weapon.

Question 22

How would a focused competitive strategy be best described?

Answer 22

Providing products to a narrow piece of the total market

Question 23

Which is a production strategy that avoids idle capacity but would have issues if the forecast if inaccurate?

Answer 23

Level

A level strategy, also called production levelling, avoids excess or idle capacity but requires an accurate forecast or there could be shortfalls or excess inventory.

Question 24

Mean time to repair (MTTR) is the average time

Answer 24

of product repair

Question 25

Which of the following best describes a work center with actual output greater than planned output?

Answer 25

Running ahead of schedule

Output greater than planned means that the work center is ahead of schedule.

Lacking capacity and being short of material are conditions that would cause a work center to fall behind schedule. “Very good” is not necessarily true because it could lead to unnecessary inventory.

Question 26

Which of the following are manufacturing order pick lists more likely to exclude?

Answer 26

Floor stock materials issued to the department

Floor stock items are already issued. The other responses would all need to be picked and issued to production.

• Low-cost C-item vendor-managed inventory
• Materials purchased specifically for an order
• Consignment items that are stocked out

Question 27

A benefit of implementing electronic data interchange (EDI) with a supplier is a reduction in

Answer 27

data errors

Question 28

Performance measurements and objectives should be aligned to the company’s

Answer 28

strategy

Performance objectives measure how well a firm is achieving its strategic goals.

Question 29

Which tends to increase when shipments are by full truckload rather than less-than-tuckload?

Answer 29

Carrying Costs

While full truckloads (or full car or container loads) reduce pickup and delivery costs, handling costs, and billing costs, it does create lot-size inventory (cycle stock) which increases carrying costs.

Question 30

When customers orders are received in a make-to-stock environment, they consume

Answer 30

finished goods

Question 31

Which of the following management processes is responsible for balancing customer demand and the firm’s output capabilities?

Answer 31

Demand Management

Question 32

The ability to determine the ongoing location of a shipment is

Answer 32

traceability

Question 33

Which of the following is the most likely manufacturing environment for a disposable food storage container?

Answer 33

make to stock

Question 34

Creating an extensive distribution system in order to reduce shipment time to customers conflicts with which of the following objectives?

Answer 34

Lowest distribution costs

Question 35

The length of a forecast horizon is determines primarily by the

Answer 35

Purpose of the forecast

How far into the future a company wants to forecast is a critical decision determining the size of the forecast horizon.

Question 36

Which of the following planning techniques should a company use to improve customer service from its regional warehouse?

Answer 36

Distribution Requirements Planning

Distribution requirements planning provides the supply warehouse with the information necessary to plan for the goods to be at the regional warehouse when needed.

Question 37

Which of the following entities or conditions impacts demand by providing expectations that products will be sold at a fair price, that higher quality is required, that before-and after-sales service is available, and that products and their volumes are flexible?

Answer 37

Customers

Both consumers and industrial customers have become much more demanding, and suppliers have responded by improving the range of characteristics they offer. Some of the characteristics and selections customers expect in the products and services they buy are a fair price, higher-quality products and services, better delivery lead time, better pre- and after-sales service, and product and volume flexibility.

Question 38

When capacity requirements planning (CRP) gets due dates and order quantities from materials requirements planning (MRP), what does it calculate with this information?

Answer 38

Load

MRP provides CRP with order quantities and due dates to compute the load.

Question 39

Input/output control is a technique for monitoring the

Answer 39

Capacity requirements plan

Input/output control is a technique in which the actual input and output of a work center is compared with the planned input and output developed by capacity requirements planning.

Question 40

A distributor is issues a refund for products the distributor purchased from the wholesaler as allowed by contract even though the goods are in resellable condition. Which is true of this process?

Answer 40

This reverse logistics process does not need to continue back to the product manufacturer.

Reverse logistics is concerned with the management of the flow of products and materials from the customer back through the supply chain to the originating source. The wholesaler might be able to return these products to the manufacturer(s), but they could also inspect and restock the products for future sale.

Question 41

What sets out the provisions and agreements of a contract?

Answer 41

terms and conditions

Question 42

Which of the following is a critical factor in the supplier selection process?

Answer 42

Suppliers manufacturing capability

Question 43

Service or replacement parts are an example of

Answer 43

Independent demand items

Service or replacement items are examples of independent demand items. They are typically forecast because demand for them is not dependent on an item higher in the bill of material.

Question 44

The final assembly schedule is at which of the following levels in the product structure in an assemble-to-order envirionment?

Answer 44

Shippable End-item level of the bill of material

The final assembly schedule would be at the level of the end item sold to the customer, which is level 0 of the bill of material.

Question 45

An effective operations strategy identifies

Answer 45

performance objectives

An effective operations strategy identifies:

A vision of how the business’s operations and processes can contribute to its overall strategy.
Operations performance objectives.
The broad decisions that will provide the basis for the business’s sustainable development.

Question 46

Which of the following includes the product cost plus the costs of logistics, such as warehousing, transportation, and handling fees?

Answer 46

Landed Cost

Question 47

In the middle of April, an unusually large order comes in from a customer, at odds with forecast data. In May, the customer’s orders are more in line with forecasts, This could be a result of

Answer 47

An exceptional Event

Exceptional events might include a customer stockpiling product based on an anticipated strike, customer plant shutdowns or equipment failures, or severe weather keeping customers at home. Events such as these need to be recorded in the forecast notes to differentiate them from potential changes in a trend.

Question 48

Projections based on historical sales information are which of the following types of forecasting methods?

Answer 48

Intrinsic

Intrinsic forecasts are based on internal factors, such as an average of past sales, knowledge of seasonal spending habits, etc.

Question 49

Which of the following best describes the results of total quality control?

Answer 49

The product meets the expectations of the customer

The end result of a total quality control effort should always be meeting the product quality expectations of the customer.

Question 50

Which of the following is the process of combining statistical forecasting techniques and judgement to construct demand estimates for products/services across the supply chain from the supplier’s raw materials to the consumer’s needs?

Answer 50

Demand Planning

Demand planning is the process of combining statistical forecasting techniques and judgment to construct demand estimates for products or services across the supply chain from the supplier’s raw materials to the consumer’s needs.