quizzes Flashcards
What are preset ranges of acceptable quality characteristics?
A. Control limits. B. Product specifications. C. Six-sigma limits. D. AQC limits. E. R-chart limits.
B. Product specifications.
The strength of the relationship between customer requirements and product characteristics is shown in the __________ matrix.
A. Trade-off B. Product C. Relationship D. Strength E. Inverse
C. Relationship
Supply chain management is the vital business function which does not coordinate and manage:
A. linking suppliers B. transporters C.human resource interviews D. internal departments E. third-party companies
C. human resource interviews
The Baldrige Award is intended to
A. Demonstrate that American companies are better than their foreign competitors
B. Certify suppliers
C. Reward and stimulate quality initiatives
D. Focus national attention on manufacturing
E. Add structure to TQM
C. Reward and stimulate quality initiatives
A proactive marketing approach in aggregate planning involves ____________________.
A. varying inventory levels
B. modifying work force size
C. back orders
D. shifting the demand patterns to level demand fluctuations
E. varying overtime rate
D. shifting the demand patterns to level demand fluctuations
The formula to determine standard labor costs for costing a product is:
A. standard labor time x hourly labor cost
B. standard labor time x normal labor cost
C. normal labor time x hourly labor cost
D. normal labor time x normal labor cost
E. adjusted normal time x adjusted normal labor cost
A. standard labor time x hourly labor cost
The maximum output rate that can be sustained under normal conditions is _____________.
A. utilization B. design capacity C. effective capacity D. ultimate capacity E. temporary capacity
C. effective capacity
Which type of operation is used to produce many different products with varying process requirements in lower volumes?
A. downstream
B. repetitive
C. gateway
D. continuous
E. intermittent
E. intermittent
The ease with which the product can be made is its
A. repeatability
B. manufacturability
C. reliability
D. readiness for manufacturing
E. accountability
B. manufacturability
JIT manufacturing cannot succeed if ____costs are too high.
A. Variable B. Fixed C. Set-up D. Depreciation E. Marginal
C. Set-up
Which of the following is not typically indicated as part of the resources authorized in an aggregate plan?
A. number of machines to be used
B. size of the workforce
C. authorized level of overtime and undertime
D. number of units to be subcontracted
E. level of inventory held
A. number of machines to be used
Which of the following inventory functions does not involve end products sold to customers?
A. anticipation inventory B. fluctuation inventory C. lot-size inventory D. MRO inventory E. speculative inventory
D. MRO inventory
Which type of process would be least likely to produce goods for inventory rather than for a specific customer request?
A. remanufacturing
B. batch
C. line
D. continuous
E. project
E. project
Which of the following is the term for “arranging the method of shipment for both incoming and outgoing products or material”?
A. TQM
B. Employee management
C. Distribution management
D. Traffic management
E. Logistics management
D. Traffic management
The method which relies on a specific algorithm to evaluate the cost impact of adding potential location sites to the network of existing facilities is _____________.
A. cost-volume analysis
B. the transportation method
C. factor rating analysis
D. linear regression analysis
E. the load-distance model
B. the transportation method
The Production Plan is usually updated and reevaluated:
A. weekly
B. monthly
C. quarterly
D. semi-annually
E. annually
B. monthly
Job design ensures that each employee’s _________ and ________ are geared towards achieving the company’s mission.
A. compensation, teams
B. duties, teams
C. satisfaction, compensation
D. duties, responsibility
E. compensation, responsibility
D. duties, responsibility
JIT considers waste anything that:
A. Fits in a waste basket
B. Reduces production capacity
C. Has been discarded
D. Cannot be recycled
E. Does not add value
E. Does not add value
Who is famous for his “14 Points?”
A. Walter Shewhart B. W. Edwards Deming C. Joseph Juran D. Armand Feigenbaum E. Genichi Taguchi
B. W. Edwards Deming
Methods analysis can _________________.
A. improve efficiency
B. analyze the fairness of pay systems
C. improve how teams function
D. evaluate job performance
E. help select issues that need to be brought to management’s attention
A. improve efficiency
An improvement tool that utilizes cross-functional teams to plan and deliver improvements to specific processes during two- or three-day marathon sessions is called a _____.
A. kanban blitz B. cross-functional blitz C. short-term blitz D. JIT blitz E. kaizen blitz
E. kaizen blitz
One of the greatest benefits of JIT would be: .
A. increasing waste and improving responsiveness
B. longer lead times and increased productivity
C. decreased machine utilization and improved quality
D. competing based on schedules
E. eliminating waste, improving responsiveness and competing based on time
E. eliminating waste, improving responsiveness and competing based on time
A demand-based option in which the marketing tries to shift demand patterns to minimize demand fluctuations is called
A. hyperactive
B. inactive
C. proactive
D. reactive
E. retroactive
C. proactive
Who developed a formula for determining the cost of poor quality?
A. Walter Shewhart B. W. Edwards Deming C. Joseph Juran D. Kaoru Ishikawa E. Genichi Taguchi
E. Genichi Taguchi
An organization’s supply chain is facilitated by:
A. dedicated people B. an information system C. specific vendors D. specific customers E. government regulations
B. an information system
MRP develops a ____________ that shows future demand, supply and inventories by time period.
A. DSI report B. snapshot forecast C. requirements plan D. material movements schedule E. time-phased schedule
E. time-phased schedule
Which of the following is more like a product layout as compared to a process layout?
A. Resources used are general purpose.
B. Facilities are less capital intensive.
C. Processing rates are slower.
D. Space requirements for inventory storage are higher.
E. Scheduling resources is less challenging.
E. Scheduling resources is less challenging.
Which of the following is not characteristic of intermittent operations?
A. produce many different products with varying processing requirements
B. capital intensive
C. workers need to be able to perform different tasks depending on the processing needs of the product
D. general purpose equipment
E. volume of goods produced directly tied to number of customer orders
B. capital intensive
What process capability index (Cp) value implies that the process “exceeds minimal capability?”
A. 0 B. 1 C. = 1 D. > 1 E. 6σ
D. > 1
Part of the operations strategy is designing a work system that:
A. is easy to build.
B. provides an appropriate risk/reward structure.
C. provides the structure for the productivity of the company.
D. provides a structure for the HR recruiting function.
E. provides the structure for determining the company objectives.
C. provides the structure for the productivity of the company.
Part of the operations strategy is designing a work system that:
A. is easy to build.
B. provides an appropriate risk/reward structure.
C. provides the structure for the productivity of the company.
D. provides a structure for the HR recruiting function.
E. provides the structure for determining the company objectives.
C. provides the structure for the productivity of the company.
Bridge construction is an example of which layout type?
A. inverted
B. hybrid
C. process
D. fixed position
E. product
D. fixed position
A car wash is an example of which layout type?
A. inverted B. hybrid C. process D. fixed position E. product
E. product
What is the formula for the process capability index Cp?
A. specification width / process width
B. specification width / 99.74%
C. specification width × process width
D. process width / specification width b
E. specification width / Type I error
(CP = (USL – LSL)/6σ)
A. specification width / process width
Which of the following statements is true?
A. Periodic counting and cycle counting generally both count every item in stock.
B. Periodic counting and cycle counting generally both do not count every item in stock.
C. Periodic counting generally counts every item in stock, whereas annually cycle counting generally does not daily.
D. Cycle counting generally counts every item in stock, whereas periodic counting generally does not.
E. Periodic counting generally occurs more frequently than cycle counting.
C. Periodic counting generally counts every item in stock, whereas annually cycle counting generally does not daily.
Which inventory function specifically is designed to allow the company to maintain a level production strategy?
A. anticipation inventory B. fluctuation inventory C. lot-size inventory D. transportation inventory E. speculative inventory
A. anticipation inventory
Which of the following is not typically contained in the marketing plan?
A. product design B. target markets C. new products D. profit margin E. competitive focus
A. product design
The first step in developing the production plan is:
A. identification of the point of departure.
B. identification of the magnitude of change.
C. identification of the duration of change
D. development of the target aggregate plan rate.
E. selection of the aggregate plan that matches your company’s objectives.
E. selection of the aggregate plan that matches your company’s objectives.
A process capability index (Cp) value of 1 means that what percent of products produced will fall within the specification limits?
A. 0.26% B. 90.00% C. 95.44% D. 99.74% E. 100.00%
D. 99.74%
The goal of developing an aggregate plan using composite product information is:
A. group like things together B. reduce the number of calculations C. keep it simple for senior management D. help marketing plan E. provide detail reports
B. reduce the number of calculations
In six-sigma programs, individuals who have extensive training in the use of technical tools and are responsible for carrying out the implementation of Six Sigma are __________________.
A, black belts B. green belts C. blue belts D. red belts E. white belts
A, black belts
Which of the following has the least to do with location analysis?
A. sources of transportation
B. reduction in trade barriers
C. information technology reducing need for proximity
D. retail stores locating near each other
E. automation of factories
E. automation of factories
What does work measurement determine?
A. how long it should take to do a job
B. what is the best way to do a job
C. who is the best worker
D. where work should be done
E. why a particular step must be included in an operation
A. how long it should take to do a job
Consider a packaged milk products supply chain. A lumber company provides wood to a paper mill, who supplies cardboard to a container manufacturer, who supplies containers to the milk products manufacturer. The lumber company is:
A. a tier one supplier. B. a tier two supplier. C. a tier three supplier. D. a tier four supplier. E. not in the supply chain.
C. a tier three supplier.
For the general warehouse layout problem, which department should be located furthest from the dock?
A. least trips needed
B. most area needed
C. highest ratio of trips needed to area needed
D. smallest ratio of area needed to trips needed
E. smallest ratio of trips needed to area needed
E. smallest ratio of trips needed to area needed
What is an extension of an intranet to include suppliers and customers called?
A. supply chain net B. supernet C. supranet D. extranet E. intranet++
D. extranet
Capacity decisions at the strategic level include _______.
A. investment in new facilities and equipment
B. size of workforce
C. inventory buffers
D. day-to-day use of machines
E. composition of the workforce
A. investment in new facilities and equipment
According to JIT, by eliminating inventory we can clearly identify __________ and work on eliminating them.
A. Obsolete products B. Malfunctioning machines C, Grievances D. Product imperfections E. Problems
E. Problems
What is the governmental agency that has inspectors who check for safety conditions?
A. ISO
B. OSHA
C. FCC
D. IRS
E. HEW
B. OSHA
Which of the following is not considered to be a benefit of EDI?
A. Increased human interaction
B. Reduced paperwork
C. Improved data accuracy
D. Improved tracking capability
E. Reduced clerical costs
A. Increased human interaction
According to the textbook, the way to reduce the ppm defective is to
A. change product specifications
B. increase process capability
C. increase the number of inspection points.
D. increase process throughput
E. employ more inspectors
B. increase process capability
It the goal is to reduce the amount of inventory in the system, the number of Kanban cards should.
A. Be decreased
B. Be increased
C. Remain the same
D. Be calculated by formula
E. Remain the same, but container size should be increased
A. Be decreased
Hand tools, lubricants, and cleaning supplies are usually examples of what?
A. WIP inventory B. finished goods inventory C. raw materials inventory D. MRO inventory E. distribution inventory
D. MRO inventory
Net marketplaces are designed to:
A. bring together only internal resources.
B. bring together limited external resources.
C. bring together significant number of purchasing firms.
D. limit the number of daily transactions.
E. limit cyber security risks.
C. bring together significant number of purchasing firms.
he first step managers need to take when making facility location decisions is __________.
A. begin negotiations with governments for several potential locations
B. identify specific location possibilities
C. gather information on location alternatives
D. evaluate specific sites
E. identify the location factors that are dominant for the business
E. identify the location factors that are dominant for the business
Which of the following is a tool for evaluating an operation in terms of the sequence of steps from inputs to outputs with the goal of improving its design?
A. operations sequencing
B. operations analysis
C. process flow analysis
D. sequencing analysis
E. input/output analysis
C. process flow analysis
Which of the following is not an example of factory focus?
A. Ann Taylor B. Sears C. Limited Too D. The Gap E. The Limited
B. Sears
The classes that you are taking at the university use a _____ process.
A. project
B. batch
C. line
D. recycle
E. continuous
B. batch
Which term refers to inaccurate or distorted demand information created in the supply chain?
A. Battle axe effect B. Cobra effect C. Bullwhip effect D. Lasso effect D. Whirlpool effect
C. Bullwhip effect
The ratio of actual output rate to capacity is _________.
A. effectiveness B. cycle time C, throughput D. utilization E. productivity
D. utilization
Why is a process flowchart useful?
A. for benchmarking against other processes
B. for designing a product
C. for seeing the totality of the operation and for identifying potential problem areas
D. for determining where the strengths are in a process
E. for determining where the weaknesses are in a process
C. for seeing the totality of the operation and for identifying potential problem areas
A hybrid layout combines
A. fixed and product
B. fixed and process
C. inverted and product
D. services and manufacturing
E. process and product
E. process and product
The ____________ details the company’s planned products, quantity, and the schedule used by marketing when promising deliveries.
A. master production schedule
B. bill of material
C. inventory records
D. material product sales
E. promised deliveries
A. master production schedule
_________________ _____ crossdocking is the receiving and consolidating of inbound supplies to support just-in-time manufacturing.
A. Warehouse B. Manufacturing C. Distributor D. Transportation E. Retail
B. Manufacturing
Local wage rates, presence of local unions, and attitudes of local workers would be major factors for location decisions for businesses that ____________.
A. are labor intensive
B. have perishable products
C. have high transportation costs
D. have need for specific raw materials
E. provide in-home services
A. are labor intensive
Service organization supply chains are:
A. Similar to manufacturing organizations.
B. not similar to service organizations.
C. very unique.
D. not a consideration when planning a service organization.
E. universally government regulated.
A. Similar to manufacturing organizations.
The most critical factors for successful EPR implementation are ______ and _________ ______.
A. leadership, top management commitment
B. leadership, technological transfer management
C. management, technological transfer management
D. funding, top management commitment
E. leadership, detailed technical specifications
A. leadership, top management commitment
Which of the following is not a measure of output capacity?
A. cars per shift B. labor hours consumed C. revenues per day D. TVs sold per day E. patients served per month
B. labor hours consumed
In six-sigma programs, individuals are given_______ titles that reflect their skills in the six-sigma process.
A. Olympic medal B. academic C. martial arts D. medieval jousting E. boxing
C. martial arts
According to the textbook, the available space of a facility is best seen by using a
A. photograph
B. detailed floor plan
C. architecture software package
D. block plan
E. overview plan
D. block plan
What is the formula for inventory turnover?
A. annual cost of goods sold / average inventory in dollars
B. annual sales / average inventory in dollars
C. average inventory in dollars / annual cost of goods sold
D. average inventory in dollars / annual sales
E. annual cost of goods sold / annual holding cost
A. annual cost of goods sold / average inventory in dollars
The first step in making a capacity planning decision is _____________.
A. evaluate capacity alternatives
B. implementation
C. identify capacity requirements
D. develop capacity alternatives
E. weight capacity objectives
C. identify capacity requirements
Companies can achieve cost-efficient operations by using which of the following inventory approaches?
A. work-in-process to buffer operations
B. inventory building to leverage reduced setup costs
C. JIT inventory to reduce overall cost
D. level work force maintenance through
E. speculative selling
B. inventory building to leverage reduced setup costs
Cause-and-effect diagrams are often called
A. Checklists B. Scatter diagrams C. Pareto analysis D. Fishbone diagrams E. Histograms
D. Fishbone diagrams
Suppose that you have a system with one component and two backups. What is the formula for the reliability of the system?
A. P(1st works) + [P(1st fails)][P(2nd works)] + [P(1st fails)][P(3rd works)]
B. [P(1st works)][P(2nd works)][P(3rd works)]
C. [P(1st works)] + [P(2nd works)] + [P(3rd works)]
D. P(1st works) + [1 – P(1st fails)][P(2nd works)] + [1 – P(1st fails)][P(3rd works)]
E. 1 – [P(1st fails)][P(2nd fails)][P(3rd fails)]
A. P(1st works) + [P(1st fails)][P(2nd works)] + [P(1st fails)][P(3rd works)]
Which of the following is not a primary objective of the master production schedule?
A. minimize shipping costs
B. achieve the desired customer service level.
C. make the best use of the company’s resources: material, labor, and equipment.
D. ensure that the inventory investment is at the appropriate level
E. none of the answer choices are correct
A. minimize shipping costs
A university is an example of which layout type?
A. inverted B. hybrid C, process D. fixed position E. product
C, process
Which of the following is not a direct input to capacity requirements planning?
A. planned shop orders
B. open shop orders
C. setup time and run time per unit for shop orders
D. current inventory levels
E. quantity for shop orders
D. current inventory levels
Who developed quality control charts?
A. Walter Shewhart B. W. Edwards Deming C. Joseph Juran D. Phillip Crosby E. Genichi Taguchi
A. Walter Shewhart
Which of the following is more like a product layout as compared to a process layout?
A. Resources used are general purpose.
B. Facilities are less capital intensive.
C. Processing rates are faster.
D. Space requirements for inventory storage are higher.
E. Scheduling resources is more challenging.
C. Processing rates are faster.
Due to globalization, which of the following are not some commonly shared ocean shipping logistical characteristics?
A. goods arrive in larger quantities
B. greater break-bulk activity is required
C. crossdocking is required
D. typically have higher inventories
E. longer port times occur
C. crossdocking is required
Building a bridge over the Mississippi River for a new highway uses a
A. project process
B. batch process
C. recycle process
D. line process
E. continuous process
A. project process
If capacity is excessive, a company may have to ____________.
A. decide how to use a partially empty facility
B. outsource
C. back-order
D. use group technology
E. raise prices
A. decide how to use a partially empty facility
The ease with which the product can be made is its
a. accountability
B. reliability
C. manufacturability
D. repeatability
E. readiness for manufacturing
C. manufacturability
For Juran’s quality trilogy, which part stresses that processes should be set up to ensure that the quality standards can be met?
A, Quality planning B. Quality control C. Quality improvement D. Quality certification E. Quality awards
A, Quality planning
Building a bridge over the Mississippi River for a new highway uses a
A. continuous process
B. line process
C. project process
D. batch process
E. recycle process
C. project process
Juran stressed that quality improvement should be continuous as well as
A. Unique B. Novel C. Retroactive D. Breakthrough E. Ongoing
E. Ongoing
Finished goods in transit to the customer are called what?
A. WIP inventory B. components inventory C. raw materials inventory D. distribution inventory E. MRO inventory
D. distribution inventory
Setting up control charts to monitor whether a process is in control
A. guarantees process capability
B. guarantees process specifications
C. does not guarantee process capability
D. does not guarantee product specification
E. guarantees meeting client needs
C. does not guarantee process capability
Which of the following is not characteristic of TQM?
A. Inspecting products after they have been made
B. Identifying and correcting the root causes of quality problems
C. Encompasses the entire organization
D. Attempts to embed quality in every aspect of the organization
E. Concerned with technical aspects of quality
A. Inspecting products after they have been made
The broad view of JIT is now often termed _______.
a. vendor-managed inventory
b. business process reengineering
c. lean production
d. cycle time management
f. e-distribution
c. lean production
The important thing in Quality Function Deployment competitive evaluation is:
A. To evaluate the financial strength of competitors
B. To identify customer requirements that should be pursued and how we fare relative to our competitors
C. . Speed of introduction
D. The number of competitors
E. Knowing our product well
B. To identify customer requirements that should be pursued and how we fare relative to our competitors
In JIT a Kanban card is used to signal.
A. The need for more parts
B. A supplier needs assistance
C. A worker is overloaded
D. A machine is ready for preventive maintenance
E. Management is inspecting operations
A. The need for more parts
Which of the following is a tool for evaluating an operation in terms of the sequence of steps from inputs to outputs with the goal of improving its design?
A. sequencing analysis
B. operations sequencing
C. process flow analysis
D. input/output analysis
E. operations analysis
C. process flow analysis
The classes that you are taking at the university use a ___________ process.
A. recycle
B. line
C. continuous
D. project
E. batch
E. batch
Which is the primary inventory function that is activated after coupons are distributed to customers?
A. anticipation inventory B. fluctuation inventory C. lot-size inventory D. MRO inventory E. speculative inventory
A. anticipation inventory
What are the two aspects to implementing the six-sigma concept?
A. numerically controlled machines and inventory management
B. numerically controlled machines and people involvement
C. numerically controlled machines and technical tools
D. technical tools and people involvement
E. inventory management and technical tools
D. technical tools and people involvement
Percentage of Line Items Shipped on Schedule recognizes that:
A. not all orders are equal but fails to take into account the dollar value of orders.
B. not all orders are equal but this can be compensated for.
C. there are differences in orders in terms of both line items and dollar value.
D. an absolute measure of manufacturing or service time lost because material or parts are not available.
E. all orders and customers should be treated equally.
A. not all orders are equal but fails to take into account the dollar value of orders.
For a cause-and-effect diagram, causes could be related to all of the following except:
A. Analysis B. Materials C. Measurements D. Machines E. Workers
A. Analysis
A difficulty with back orders, even when the customer waits, can be ________________.
A. finding space to store the product
B. extra administrative costs
C. added inventory holding costs
D. possible deterioration of the product
E. that other customers will want back orders also
B. extra administrative costs
Which inventory function exists between the manufacturing plant and the distribution plant?
A. anticipation inventory B. fluctuation inventory C. lot-size inventory D. transportation inventory E. speculative inventory
D. transportation inventory
The quantity of the replenishment order is based on the __________.
A. capacity available
B. size of the item
C. number of workers available
D. inventory space available
E. lot sizing rule used
E. lot sizing rule used
Which of the following is not true concerning replenishment orders?
A. They are generated when there is not enough inventory.
B. MRP specifies when to place the order.
C. The order may be for material from a supplier.
D. They are orders for the final product.
E. The order may be for material from the manufacturing floor.
D. They are orders for the final product.
The person that comes from the top ranks of the organization and is responsible for providing direction and overseeing all aspects of a six-sigma implementation process is called a _______?
A. general B. admiral C. director D. producer E. champion
E. champion
One common name for TQM based team work is:
A. quality department B. quality support group C. quality circle D. quality team E. team one
C. quality circle
Which of the following is not taken into consideration when dealing with the effects of working conditions on worker productivity, quality and safety?
A. cafeteria location
B. temperature
C. relative humidity
D. ventilation
E. lighting
A. cafeteria location
What information system enables companies to have the right material in the right amounts available at the right time?
A. manufacturing resources planning
B. multifunctional requirements planning
C. material requirements planning
D. material relationships planning
E. manufacturing requirements planning
C. material requirements planning
What is the relationship between Cp and Cpk?
A. Cp ≥ 2 Cpk B. Cp ≤ Cpk C. Cp ≥ Cpk D. Cp ≤ 2Cpk E. Cp ÷ Cpk ≥ 3
C. Cp ≥ Cpk
How many different layout solutions are possible with 7 departments?
A. 7 B. 720 C. 28 D. 7000 E. 5040
E. 5040
Which of the following is not a remedy for the bullwhip effect?
A. Allocate units based on past demand
B. Price stabilization
C. Base forecasts on demand coming from the immediate downstream customer
D. Eliminate order batching
E. Information sharing
C. Base forecasts on demand coming from the immediate downstream customer
JIT is applies to:
A. only the manufacturing organization
B. only the service organization
C. both the manufacturing and service organizations
D. only the production portion of manufacturing and service organizations
D. all of the organization except the marketing division
C. both the manufacturing and service organizations
Percentage of orders shipped on schedule is a good measure of finished goods customer service if:
A. all orders and customers have similar cost impacts.
B. all orders and customers have similar value.
C. all orders and customers have similar backorder requirements.
D. later deliveries are not considered.
E. late deliveries contribute to the overall demand.
B. all orders and customers have similar value.
In making specific changes to JIT manufacturing, which of the following steps should come first?
A. reduce lot sizes and lead times
B. switch to pull production
C. reorganize workplace
D. reduce setup times
E. implement layout changes
C. reorganize workplace
A demand-based option in which the marketing tries to shift demand patterns to minimize demand fluctuations is called
A. hyperactive
B. inactive
C. proactive
D. reactive
E. retroactive
C. proactive
Causes of variation that can be identified and eliminated are called what?
A. Random B. Assignable C. Identifiable D. Stochastic E. Common
B. Assignable
Capacity requirements planning enables the company to evaluate ____________________.
A. employee morale B. its suppliers C. its manufacturing costs D. quality E. how well it is using its critical work centers
E. how well it is using its critical work centers
Building construction is an example of which layout type?
A. inverted B. hybrid C. process D. fixed position E. product
D. fixed position
In JIT the workforce is viewed as:
A. another resource to be managed
B. another contractual obligation
C. a long-term asset
D. a short term asset
E. an asset that must be closely managed
C. a long-term asset
A recent change in supply chain management has been the:
A. need for faster computers.
B. green supply chain management requirement.
C. requirement for advanced educational degrees.
D. increased government regulation.
E. need for smaller ocean transportation methods.
B. green supply chain management requirement.
Which inventory function provides a cushion against unexpected supply shortage?
A. anticipation inventory B. fluctuation inventory C. lot-size inventory D. transportation inventory E. speculative inventory
E. speculative inventory
What results from methods analysis?
A. a graph of how long each step takes
B. an evaluation of current employees
C. time standards
D. guidance for designing jobs
E. a standard, detailed procedure for an operation
E. a standard, detailed procedure for an operation
_______________ MRP is an MRP system that includes production planning, master production scheduling, and capacity requirements planning.
A. Fully-integrated
B. Closed-loop
C. Open-loop
D. Wide-range
E. Enterprise
B. Closed-loop
How can the EPQ model be economically reconciled with just-in-time (JIT) production?
A. Reduce annual demand (D).
B. Increase annual holding cost per unit (H).
C. Decrease ordering cost (S).
D. Increase annual holding cost per unit (H) and
Decrease ordering cost (S).
E. The two cannot be reconciled.
C. Decrease ordering cost (S).
When developing a detailed layout, what tools would be used?
A. MS Excel
B. MULTISTORY
C. CRAFT++
D. 3-D models and CAD software
E. Architecture Software
D. 3-D models and CAD software
The ____________ is (are) checked for the materials on hand and those that need to be procured.
A. master production schedule
B. bill of material
C. inventory records
D. material inventories
E. promised deliveries
C. inventory records
Which type of process would be least likely to produce goods for inventory rather than for a specific customer request?
A. continuous
B. remanufacturing
C. project
D. line
E. batch
C. project
A quality circle is:
A. An approach for the use of control charts
B. An award for quality improvements
C. An inspection stamp found on meat
D. A team of volunteer production employees and their supervisors who meet regularly to solve quality problems
E. A symbol used on flow charts
D. A team of volunteer production employees and their supervisors who meet regularly to solve quality problems
In inventory management, when discussing customer service we mean:
A. whether the customer is available when the product is.
B. whether the product is available regardless if the customer desires it or not.
C. whether the product is available when the customer wants it.
D. whether the customer wants the available product.
E. whether repair of the product is available.
C. whether the product is available when the customer wants it.
What process width is typically used when computing the process capability index Cp?
A. 1σ B. 2σ C. 3σ D. 4σ E. 6σ
E. 6σ
What results from methods analysis?
A. a graph of how long each step takes
B. an evaluation of current employees
C. time standards
D. guidance for designing jobs
E. a standard, detailed procedure for an operation
E. a standard, detailed procedure for an operation
JIT believes in developing __________ relationships with suppliers.
A. Long-term B. Adversarial C. Arms-length D. Temporary E. Distant
A. Long-term
Companies that use back orders are asking their customers to ___________________.
A. resubmit their orders
B. wait for delivery of the product
C. check back to see what their last order was
D. receive the product immediately and pay for it later
E. send back their last order
B. wait for delivery of the product
The Six Sigma approach is organized around a _______ plan known as ________.
A. four step, PDAC B. four step, DMAC C. five step PDACR D. five step DMAIC E. five step, DMCRA
D. five step DMAIC
Which of the following is not characteristic of intermittent operations?
A. general purpose equipment
B. volume of goods produced directly tied to number of customer orders
C. produce many different products with varying processing requirements
D. capital intensive
E. workers need to be able to perform different tasks depending on the processing needs of the product
D. capital intensive
A job shop is most likely to use which layout type?
A. inverted B. hybrid C. process D. fixed position C. product
C. process
Which of the following is an objective of MRP?
A, Keep priorities updated and valid.
B. Keep track of material movements on the shop floor.
C. Provide information for expediting orders.
D. Allocate scarce parts to products.
E. Provide information for activity based costing.
A, Keep priorities updated and valid.
Last month TMJG Co. started producing a new product called Thingamajigs from its new plant. Sales were quite good for the first couple of weeks. Unfortunately, a technological innovation was then announced by a competitor. This innovation will almost completely eliminate the demand for Thingamajigs. As a result, TMJG has decided to shut down and dismantle the plant next week. The average cost per unit will be highest if the plant was _______.
A, a small facility B. in the right location C, a large facility D. just-in-time E. a medium facility
C, a large facility
Companies use ____________ to check that enough work is scheduled for operations and that the amount of work scheduled is feasible.
A. capacity management B. closed-loop requirements planning C. cut requirements planning D. capacity resources planning E. capacity requirements planning
E. capacity requirements planning
If the third stage of a repetitive line process cannot complete its activities as fast as stage one or two it has become a:
A. project process location
B. none of these
C. key work location
D. bottle neck
E. place not to work
D. bottle neck
JIT can be traced back to the early 1900’s but no one can argue that the philosophy gained worldwide prominence.
A. at the close of WWII B. in the 1950s C, in the 1960s D. in the 1970s E. in the 1980s
D. in the 1970s
Which of the following is not one of the four major causes of the bullwhip effect?
A. Demand forecast updating B. Order batching C. Price fluctuations D. The business cycle E. Rationing and shortage gaming
D. The business cycle
What type of process is designed to produce a large volume of a standardized product for mass production, such as automobiles?
A. continuous processes
B. recycle processes
C. project processes
D. batch processes
E. line processes
E. line processes
Companies want a supply chain that makes it possible to:
A. manage all suppliers’ development costs.
B. manage and adapt to all of the business dynamics.
C. manage distribution display.
D. manage distribution outlet retail prices.
E. manage customer demands.
B. manage and adapt to all of the business dynamics.
JIT flexibility refers to:
A. ability to modify sales figures
B. correct the bull whip effect
C. increase or decrease supplier deliveries on short notice
D. workers being able to perform many different tasks
E. managers being able to shift positions easy
D. workers being able to perform many different tasks
Which of the following is not a factor in capacity planning?
A. approach used to measure capacity
B. economies of scale
C. prepare to deal with capacity in “chunks”
D. proximity to suppliers
E. identify the best operating level
D. proximity to suppliers
Long-term capacity requirements are identified on the basis of _____.
A. the current trend of the economy
B. the expected lifetime of the facility
C. demographic factors
D. forecasts of future demand
E. future political events
D. forecasts of future demand
Which type of operation is used to produce many different products with varying process requirements in lower volumes?
A. continuous
B. downstream
C. gateway
D. intermittent
E. repetitive
D. intermittent
Quality at the source is the belief that it is far better to _______ quality problems and _____ them than to discard defective items after production.
A. uncover the person generating, fire
B. uncover the source of, correct
C. discover new methods of, implement
D. discover new processes of, implement
E. allow returns of, fix
B. uncover the source of, correct
Which of the following is least like a process layout?
A. job shop B. automobile plant C. hospital D. university E. grocery store
B. automobile plant
ERP systems provide _____ and _____ benefits.
A. tangible, HR B. intangible, marketing C. marketing, operation D. tangible, intangible E. CEO, CFO
D. tangible, intangible
Which of the following is least like a fixed-position layout?
A. farm B. shipbuilding C. bridge construction D. building construction E. car wash
E. car wash
When evaluating location alternatives the firm should look at
A. only qualitative factors
B. only quantitative factors
C. both qualitative and
quantitative factors
D. weighted average values
E. decision support models only
C. both qualitative and
quantitative factors
Evaluating an aggregate plan in terms of inventory levels is using what perspective?
A. cost
B. customer service
C. quality
D. operations
E. human resources
A. cost
If inventory records fail to accurately reflect the quantity of materials available, all except which of the following may occur?
A. poor customer service
B. continuous operations
C. lower productivity
D. poor material planning
E. excessive expediting
B. continuous operations
Which of the following is not a typical result of the bullwhip effect?
A. Absenteeism
B. Lost revenues
C. Ineffective transportation use
D. Poor customer service levels
E. Misused manufacturing capacity
A. Absenteeism
Methods analysis can _________________.
A. improve efficiency
B. analyze the fairness of pay systems
C. improve how teams function
D. evaluate job performance
E. help select issues that need to be brought to management’s attention
A. improve efficiency
Beliefs that help define the JIT philosophy include all of the following except:
A. Simplicity B. Visibility C. Flexibility D. Push production E. Continuous improvement
D. Push production
The master production schedule is typically stated as:
A, resource requirements B. sales quotas C. work-in-process D. specific finished goods E. composite products
D. specific finished goods
For capacity requirements planning, loads for critical work centers are calculated based on ___________.
A. open external supplier orders and planned external supplier orders
B. gross requirements for the end product
C. open shop orders and planned shop orders
D. safety stock
E. the sum of ordering and carrying costs
C. open shop orders and planned shop orders
Which of the following is not an intangible benefit of ERP?
A. improved customer response B. better integration between systems C. global sharing of information D. increased flexibility E. improved on-time delivery performance
E. improved on-time delivery performance
Which of the following is not one of the six ways to use inventory?
A. seasonal inventory
B. JIT inventory
C. pipeline inventory
D. hedge inventory
E. MRO inventory
B. JIT inventory
In evaluating the current situation, the ____________ is the percentage of normal capacity at which the company is currently operating.
A. point of departure
B. amount of subcontracting needed
C. magnitude of the change
D. duration of the change
E. rated capacity
A. point of departure
When do rationing and shortage gaming occur?
A. Supply exceeds demand.
B. Demand exceeds supply.
C. Government contracts are awarded.
D. Transportation workers go on strike.
E. Marginal revenue exceeds marginal cost.
B. Demand exceeds supply.
Management has decided to add capacity incrementally in smaller chunks as needed, rather than purchasing one large facility. This decision __________.
A. is very risky
B. will result in low initial costs
C. will ultimately result in lower costs per unit if demand increases rapidly
D. positions the company to be well prepared for high demand in the future
E. can lead to a large amount of excess capacity
B. will result in low initial costs
Which of the following typically represents the beginning of a supply chain?
A. Wholesalers B. Retailers C. Manufacturers D. External suppliers E. Inspectors
D. External suppliers
All processes will have what type of variation?
A. Random B. Assignable C. Identifiable D. Stochastic E. Common
A. Random
Six-sigma quality implies how many average defects per million?
A. 3.4 B. 6 C. 2600 D. 3σ E. 6σ
A. 3.4
When evaluating the production plan you should use all but which of the following:
A. total/unit cost
B. inventory levels
C. number of back orders
D. effect on marketing plan
E. effect on workforces
D. effect on marketing plan
To determine whether the alternative workplace is right for your organization, which of the following questions should be positively answered?
A. are you out of space?
B. does your organization have an open culture?
C. does your organization allow the employee to set their own expectations?
D. does your organization subscribe to the ‘new’ work force program?
E. does the organization plan office parties?
B. does your organization have an open culture?
Which of the following is not a major supplier of ERP systems?
A. SAP AG
B. PeopleSoft
C. Oracle
D. Infor.com
E. IBM
E. IBM
If the third stage of a repetitive line process cannot complete its activities as fast as stage one or two it has become a:
A. key work location
B. project process location
C. none of these
D. bottle neck
E. place not to work
D. bottle neck
Warehouse layouts have the key characteristics of process layouts except
A. number of loads is not a design consideration
B. location isn’t a major consideration
C, there is movement between the storage areas
D. from trips are the only consideration
E. there is no movement between the storage areas
E. there is no movement between the storage areas
The last step in constructing the house of quality includes
A. Determining how to advertise
B. Setting targets for our own product
C. Determining how to attack our competitors’ products
D. Designing the product
E. Comparing results with past sales
B. Setting targets for our own product
A hospital is an example of which layout type?
A. inverted B. hybrid C. process D. fixed position E. product
C. process
The system of Kanbans used to coordinate delivery of goods by suppliers can include all of the following except
A. Entry field with incorrect answer
B. Filled containers delivered by the supplier
C. Purchase approvals by the production manager
D. Mail boxes for each supplier
D. Empty containers with a Kanban
E. Bar-coded Kanbans
C. Purchase approvals by the production manager
The next level down in the planning process after development of the aggregate plan is the _____________.
A. materials requirements plan
B. engineering plan
C. rough-cut capacity plan
D. master production schedule
E. purchasing plan
D. master production schedule
Studying business practices of companies considered “best in class” is called:
A. Pairwise comparison B. Benchmarking C. Competition D. Dreamscaping E. Discouraging
B. Benchmarking
The Japanese term for continuous improvement is
A. Poka-yoke B. Kaizen C. Kanban D. Muda E. Automation
B. Kaizen
I LOVE YOU!
YOU ARE DOING GREAT
According to JIT, __________ is carried to cover up a wide variety of problems, such as poor quality, demand uncertainty, and slow delivery.
A. Inventory
B. Excess capacity
C. A group of back-up workers
D. Spare equipment
E. Insurance
A. Inventory
Which of the following allow you to calculate the average amount of inventory in transit?
A. ATI – (365*d)/t B. ATI – (t/365)*d C. ATI = 365*t*d D. ATI = (tD)/365 E. ATI – (365*t)/d
D. ATI = (tD)/365
Advantages of the alternative workplace include all except which of the following?
A. eliminating offices that people do not need
B. reducing overhead expenses
C. offers more flexibility to balance work and family
D. increased cohesiveness among employees
E. employees devote more time to customers and/or meaningful work activities
D. increased cohesiveness among employees
Why is a process flowchart useful?
A. for determining where the weaknesses are in a process
B. for benchmarking against other processes
C. for designing a product
D. for seeing the totality of the operation and for identifying potential problem areas
E. for determining where the strengths are in a process
D. for seeing the totality of the operation and for identifying potential problem areas
What are purchased items or extracted materials that will be transformed into components or products called?
A. raw materials inventory B. finished goods inventory C. work-in-process inventory D. distribution inventory E. MRO inventory
A. raw materials inventory
Which popular facility layout software package uses a from-to matrix?
A. CONWIP B. MRP C. ALDEP D. LAYOUT E. CRAFT
E. CRAFT
Kaizen is a Japanese term referring to ____________.
A. just-in-time production
B. continuous improvement
C. employee involvement
D. concurrent engineering
E. simplicity
B. continuous improvement
Service organizations such as restaurants, movie theaters, and banks focus on locating near ______.
A. suppliers B. roads C, intersections D. their customers E. potential workers
D. their customers
Product tolerances are often called
A. SPC B. Product drawings C. Product descriptions D. Process capability E. Product specifications
E. Product specifications
In facility location zoning restrictions, soil conditions, and access roads for trucks are ______.
A. community considerations B. site considerations C, quality of life issues D. hardly ever important E. cultural considerations
B. site considerations
The purpose of the International Organization for Standardization is to
A. Certify all suppliers worldwide
B. Establish international quality standards
C. Spread European standards worldwide
D. Certify products
E. Streamline documentation
B. Establish international quality standards
Which of the following statements is true?
A. Periodic counting and cycle counting generally both count every item in stock.
B. Periodic counting and cycle counting generally both do not count every item in stock.
C. Periodic counting generally counts every item in stock, whereas annually cycle counting generally does not daily.
D. Cycle counting generally counts every item in stock, whereas periodic counting generally does not.
E. Periodic counting generally occurs more frequently than cycle counting.
C. Periodic counting generally counts every item in stock, whereas annually cycle counting generally does not daily.
Common causes of variation are also known as ____________.
A. inexpensive B. frequent C. ordinary D. random E. usual
D. random
What technique eliminates unnecessary tasks and improves the process for completing tasks?
A. methods analysis
B. job design
C, work measurement
D. task inversion
E. cycle counting
A. methods analysis
What does work measurement determine?
A. how long it should take to do a job
B. what is the best way to do a job
C. who is the best worker
D. where work should be done
E. why a particular step must be included in an operation
A. how long it should take to do a job
In MRP, the starting points for each part and material needed to accomplish the master production schedule are the ___________________.
A. net requirements
B. gross requirements
C. planned releases
D. scheduled receipts
E. planned receipts
B. gross requirements
Which company is known for coining the term “six-sigma?”
A. Ford Motor Company
B. Proctor and Gamble
C. IBM
D. Motorola Corporation
E. Hewlett-Packard
D. Motorola Corporation
The authorized MPS is a statement of _________________.
A. manufacturing orders that have been authorized for release to the shop floor
B. which workers are authorized to work on which machines
C. what the company expects to build and when it expects to build it
D. authorized payments to vendors
E. where different end products are authorized to be manufactured
C. what the company expects to build and when it expects to build it
Online retailing, or B2C, has shifted:
A. the cost of doing business.
B. the power from the suppliers to the consumers.
C. the way the internet works.
D. internal corporate power to the IT department.
E. corporate funding levels to the IT department.
B. the power from the suppliers to the consumers.
In choosing a location, the ________ provides an easy way to calculate X and Y coordinates for a good starting point.
A. transportation method
B. break-even approach
C. factor rating method
D. center of gravity approach
E. load-distance method
D. center of gravity approach
What type of aggregate plan maintains a constant workforce and produces the same amount of product in each time period?
A. uniform B. level C. chase D. mixed E. steady
B. level
Using a relationship chart to develop acceptable layouts is part of a classic layout technique called
A. Real layout planning
B. CHART
C. Systematic from-to planning
D. Systematic layout planning
E. SRP
D. Systematic layout planning
Which of the following is not considered to be a key element of JIT supplier relationships?
A. suppliers viewed as internal factory
B. use of single-source suppliers
C. long-term supplier relationships developed
D. suppliers locate near customer
E. cost and information sharing
A. suppliers viewed as internal factory
The center of gravity
approach:
A. identifies the precise location for the new distribution site
B. identifies where the trucking firm should be located
C. may identify a location that may not be feasible to locate to
D. relies on GPS coordinates for all calculations
relies on which
E. transportation method is selected
C. may identify a location that may not be feasible to locate to
To determine whether the alternative workplace is right for your organization, which of the following questions should be positively answered?
A. are you out of space?
B. does your organization have an open culture?
C. does your organization allow the employee to set their own expectations?
D. does your organization subscribe to the ‘new’ work force program?
E. does the organization plan office parties?
C. does your organization allow the employee to set their own expectations?
The quantity of the replenishment order is based on the __________________________.
A. capacity available B. size of the item C. number of workers available D. inventory space available E. lot sizing rule used
E. lot sizing rule used
What is the methods analysis chart that describes the overall sequence of operation, movement, inspection, delay, and storage?
A. process flowchart
B. worker-machine chart
C. simultaneous-motion (simo) chart
D. efficiency/time-of-day chart
E. operations chart
A. process flowchart
The master production schedule is reviewed:
A. annually
B. semi-annually
C. quarterly
D. monthly
E. weekly
E. weekly
What is the approach that moves the work to the worker rather than the worker to the workplace?
A. teleworking
B. virtual office
C. office at home
D. office on the move
E. the alternative workplace
E. the alternative workplace
Which inventory function provides a hedge against inflation?
A. anticipation inventory B. fluctuation inventory C. lot-size inventory D. MRO inventory C. lot-size inventory
C. lot-size inventory
What type of process is designed to produce a large volume of a standardized product for mass production, such as automobiles?
A, continuous processes
B. project processes
C. recycle processes
D. batch processes
E. line processes
E. line processes
What is the approach that moves the work to the worker rather than the worker to the workplace?
A. teleworking
B. virtual office
C. office at home
D. office on the move
E. the alternative workplace
E. the alternative workplace
What was the first US company to receive the Deming Prize?
A. IBM B. Microsoft C, Wal-Mart D. AT&T E. Florida Power & Light
E. Florida Power & Light
In a product layout facility the manager must decide
A. employees’ salary
B. exactly what tasks will not be performed by every workstation
C. exactly what tasks will be performed by every workstation
D. exactly what vacation schedule must be followed
E. general sequence the work must be performed in
E. general sequence the work must be performed in
What measures the central tendency of a set of data?
A. Coefficient of variation B. Variance C. Standard deviation D. Mean E. Range
D. Mean
The comparison of aggregate plans is difficult when they produce different quantities and thus _________.
A. have different ending inventories
B. have different staffing levels
C. have different amounts of overtime
D. have different amounts of subcontracting
E. have different revenues
A. have different ending inventories
The approach that details the tasks of a job and how to do them iS_________.
A. work measurement
B. job evaluation
C. methods analysis
D. job design
E. work sampling
C. methods analysis
What does EDI stand for?
A. Easy data interchange
B. Electronic door interface
C. Electronic detachable interface
D. Elementary data integration
E. Electronic data interchange
E. Electronic data interchange
Being able to keep costs low while changing the volume of production is an example of
A. Simplicity B. Flexibility C. Visibility D. Continuous improvement E. Total quality management
B. Flexibility
A high-volume paper mill is an example of which layout type?
A. inverted B. circular C. process D. fixed position E. product
E. product
