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Operations Management with TQM Removal Examination

Total questions: 74

Worksheet time: 2hrs 11mins

Name
Class
Date
1.

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is

a)

mass production

b)

time-based competition

c)

competing on productivity

d)

competing on flexibility

e)

competing on differentiation

2.

A strategy is a(n)

a)

set of opportunities in the marketplace

b)

broad statement of purpose

c)

simulation used to test various product line options

d)

plan for cost reduction

e)

action plan to achieve the mission

3.

The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is

a)

mass production

b)

time-based competition

c)

differentiation

d)

flexible response

e)

experience differentiation

4.

Standardization is an appropriate strategy in which stage of the product life cycle?

a)

introduction

b)

growth

c)

maturity

d)

decline

e)

retirement

5.

The stage in the product life cycle at which it is a poor time to change quality is

a)

introduction

b)

growth

c)

maturity

d)

decline

e)

incubation

6.

The three major subdivisions of the product decision are

a)

selection, definition, and design

b)

goods, services, and hybrids

c)

strategy, tactics, and operations

d)

cost, differentiation, and speed of response

e)

legislative, judicial, and executive

7.

A product's life cycle is divided into four stages, which are

a)

introduction, growth, saturation, and maturity

b)

introduction, growth, stability, and decline

c)

introduction, maturity, saturation, and decline

d)

introduction, growth, maturity, and decline

e)

none of the above

8.

Quality function deployment (QFD)

a)

determines what will satisfy the customer

b)

translates customer desires into the target design

c)

is used early in the design process

d)

is used to determine where to deploy quality efforts

e)

all of the above

9.

A graphic technique for defining the relationship between customer desires and product/service is

a)

Product Lifecycle Management

b)

the House of Quality

c)

the moment of truth

d)

the assembly drawing

e)

the product development team

10.

Modern ATM machines are an automated example of a service design that

a)

reduces customer interaction

b)

modularizes the service

c)

delays service customization

d)

has no moment of truth

e)

has insufficient quality function deployment

11.

Keeping a product generic as long as possible before customizing is known as

a)

postponement

b)

keiretsu

c)

channel assembly

d)

forward integration

e)

backward integration

12.

Japanese manufacturers often take a middle ground between purchasing from a few suppliers and vertical integration. This approach is

a)

kanban

b)

keiretsu

c)

samurai

d)

poka-yoke

e)

kaizen

13.

It is a supply chain phenomenon where orders to suppliers tend to have a larger variability than sales to buyers, which results in an amplified demand variability upstream

a)

kanban

b)

keiretsu

c)

bullwhip effect

d)

poka-yoke

e)

kaizen

14.

It is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time

a)

postponement

b)

keiretsu

c)

cross docking

d)

outsourcing

e)

networking

15.

It is an approach that seeks efficiency of operations through the integration of all materials acquisition, movement, and storage activities.

a)

Vendor Management

b)

Demand Management

c)

Supply Management

d)

Logistics Management

e)

Capacity Management

16.

Disaggregation

a)

breaks the aggregate plan into greater detail

b)

transforms the master production schedule into an aggregate plan

c)

calculates the optimal price points for yield management

d)

converts product schedules and labor assignments to a facility-wide plan

e)

is an assumption required for the use of the transportation model in aggregate planning

17.

Which of these is among the demand options of aggregate planning?

a)

subcontracting

b)

back-ordering during high-demand periods

c)

changing inventory levels

d)

varying workforce size

e)

All of the above are demand options.

18.

Aggregate planning for service firms that provide intangible output deals mainly with

a)

smoothing the production rate and finding the optimal size of the workforce

b)

yield management

c)

centralized purchasing

d)

centralized production

e)

planning for human resource requirements and managing demand

19.

Which of the following aggregate planning strategies might direct your client to a competitor?

a)

using part-time workers

b)

subcontracting

c)

changing inventory level

d)

varying production rates through overtime or idle time

e)

varying work force size by hiring or layoffs

20.

Which of these aggregate planning strategies adjusts capacity to match demand?

a)

back ordering

b)

using part-time workers

c)

counterseasonal product mixing

d)

changing price

e)

None of the above is a capacity option.

21.

"Employees cannot produce goods that on average exceed the quality of what the process is capable of producing" expresses a basic element in the writings of

a)

Vilfredo Pareto

b)

Armand Feigenbaum

c)

Joseph M. Juran

d)

W. Edwards Deming

e)

Philip B. Crosby

22.

"Quality Is Free," meaning that the costs of poor quality have been understated, is the work of

a)

W. Edwards Deming

b)

Joseph M. Juran

c)

Philip B. Crosby

d)

Crosby, Stills, and Nash

e)

Armand Feigenbaum

23.

"Cause and Effect or Fishbone diagram" as a quality control tool is the work of

a)

W. Edwards Deming

b)

Joseph M. Juran

c)

Philip B. Crosby

d)

Kaoru Ishikawa

e)

Armand Feigenbaum

24.

If 1 million passengers pass through the St. Louis Airport with checked baggage each month, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage?

a)

3.4

b)

6.0

c)

34

d)

2700

e)

6 times the monthly standard deviation of passengers

25.

The process improvement technique that sorts the "vital few" from the "trivial many" is

a)

Taguchi analysis

b)

Pareto analysis

c)

benchmarking

d)

Deming analysis

e)

Yamaguchi analysis

26.

"Kaizen" is a Japanese term meaning

a)

a foolproof mechanism

b)

just-in-time (JIT)

c)

a fishbone diagram

d)

setting standards

e)

continuous improvement

27.

Which one of the following is not a benefit of the implementation of JIT?

a)

cost reduction

b)

variability increase

c)

rapid throughput

d)

quality improvement

e)

rework reduction

28.

Which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices?

a)

Just-in-time (JIT)

b)

Toyota Production System (TPS)

c)

Lean operations

d)

Material requirements planning (MRP)

e)

kanban

29.

Which of the following is specifically characterized by continuous and forced problem solving via a focus on throughput and reduced inventory?

a)

Just-in-time (JIT)

b)

Toyota Production System (TPS)

c)

Lean operations

d)

Material requirements planning (MRP)

e)

kanban

30.

Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer wants?

a)

Just-in-time (JIT)

b)

Toyota Production System (TPS)

c)

Lean operations

d)

Material requirements planning (MRP)

e)

kanban

31.

The word "kanban" means

a)

low inventory

b)

employee empowerment

c)

card

d)

continuous improvement

e)

lot size of one

32.

This means overburden because a process, system, facility designed beyond the physical capacities of employee or equipment.

a)

muda

b)

mura

c)

muri

d)

mupa

e)

musi

33.

It is a concept in lean manufacturing meaning autonomation which guarantees that machines as well as their operators can shut down a process when anomalies are detected.

a)

gemba gembutsu

b)

jidoka

c)

ikigai

d)

poka yoke

e)

kanban

34.

It is the outcome of effective maintenance, which gauges an asset's ability to function as intended for a specific period.

a)

availability

b)

maintainability

c)

reliability

d)

quality

e)

overall equipment effectiveness

35.

A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it would then be

a)

14.4 covers/hr

b)

24 covers/hr

c)

240 valves/hr

d)

1200 covers/hr

e)

none of the above

36.

The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. What is the productivity of the plant?

a)

25 boxes/hr

b)

50 boxes/hr

c)

5000 boxes/hr

d)

none of the above

e)

not enough data to determine productivity

37.

The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to production?

a)

It has increased by 50 sets/shift.

b)

It has increased by 37.5 sets/hr.

c)

It has increased by 20%.

d)

It has decreased by 8.3%.

e)

It has decreased by 9.1%.

38.

What is the approximate forecast for May using a four-month moving average?

a)

38

b)

42

c)

43

d)

44

e)

47

39.

John's House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5 to the previous month's demand, 3 to demand two months ago, and 1 to demand three months ago. If sales amounted to 1000 pancakes in May, 2200 pancakes in June, and 3000 pancakes in July, what should be the forecast for August?

a)

2400

b)

2511

c)

2067

d)

3767

e)

1622

40.

A forecasting method has produced the following over the past five months. What is the mean absolute deviation?

a)

-0.2

b)

-1.0

c)

0.0

d)

1.2

e)

8.6

41.

The last four months of sales were 8, 10, 15, and 9 units. The last four forecasts were 5, 6, 11, and 12 units. The Mean Absolute Deviation (MAD) is

a)

2

b)

-10

c)

3.5

d)

9

e)

10.5

42.

Demand for a certain product is forecast to be 800 units per month, averaged over all 12 months of the year. The product follows a seasonal pattern, for which the January monthly index is 1.25. What is the seasonally-adjusted sales forecast for January?

a)

640 units

b)

798.75 units

c)

800 units

d)

1000 units

e)

cannot be calculated with the information given

43.

A seasonal index for a monthly series is about to be calculated on the basis of three years' accumulation of data. The three previous July values were 110, 150, and 130. The average over all months is 190. The approximate seasonal index for July is

a)

0.487

b)

0.684

c)

1.462

d)

2.053

e)

cannot be calculated with the information given

44.

A time series trend equation is 25.3 + 2.1 X. What is your forecast for period 7?

a)

23.2

b)

25.3

c)

27.4

d)

40.0

e)

cannot be determined

45.

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the capacity of the system is 1900 students per semester and the utilization is 90%. If the number of students who actually got their orientation session is 1500, what is the efficiency of the system?

a)

1350 students

b)

1710 students

c)

75%

d)

87.7%

e)

90%

46.

Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 85%. What is the expected weekly output of cranks for this company?

a)

5100

b)

5700

c)

4845

d)

969

e)

6783

47.

The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put in use, the program has become more complex, so that 1050 now represents the most employees that can be trained per year. In the past year, 950 employees were trained. The efficiency of this system is approximately _____ and its utilization is approximately _____.

a)

79.2 percent; 90.5 percent

b)

90.5 percent; 79.2 percent

c)

87.5 percent; 950 employees

d)

950 employees; 1050 employees

e)

110.5 percent; 114.3 percent

48.

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per unit. The break-even point for machine A is

a)

$90,000 dollars

b)

90,000 units

c)

$15,000 dollars

d)

15,000 units

e)

cannot be calculated from the information provided

49.

Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. The crossover point between process A and process B is

a)

50 units

b)

200 units

c)

$2,500

d)

$5,000

e)

$9,500

50.

A production line is to be designed for a job with four tasks. The task times are 2.4 minutes, 1.4 minutes, 0.9 minutes, and 1.7 minutes. The maximum cycle time is ______ and the minimum cycle time is ______ minutes.

a)

1.8; 1.4

b)

1.6; 0.9

c)

6.4; 2.4

d)

2.4; 0.9

e)

none of these

51.

An assembly line consists of 21 tasks grouped into 5 workstations. The sum of the 21 task times is 85 minutes. Cycle time for the line is 20 minutes. The efficiency of this line is

a)

4.2 percent

b)

17 percent

c)

85 percent

d)

100 percent

e)

none of the above

52.

A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of work. The factory operates 750 minutes per day. The cycle time for this assembly line is

a)

one-half minute

b)

one and one-half minutes

c)

two minutes

d)

5,500 minutes

e)

cannot be determined from the information given

53.

Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 80 units per day. Each unit of the product requires 30 minutes of work. What is the theoretical minimum number of workstations?

a)

2

b)

3

c)

4

d)

5

e)

6

54.

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. What is the center of gravity?

a)

X = 28.125; Y = 31.25

b)

X = 22000; Y = 24000

c)

X = 27.5; Y = 40

d)

center of gravity = 28

e)

none of the above

55.

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites. The score for Gary Mall is _____ and the score for Belt Line is ______.

a)

120; 120

b)

22; 24

c)

18; 120

d)

34; 28

e)

none of the above

56.

A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs 0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. If demand is expected to be 10 million units, which plant offers the lowest total cost?

a)

Plant A, because it is cheaper than Plant B for all volumes under 8,000,000 units

b)

Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units

c)

Plant A, because it is cheaper than Plant B for all volumes

d)

Plant B, because it has the lower variable cost per unit

e)

neither Plant A nor Plant B, because the crossover point is at 10 million units

57.

A county wants to build one centrally-located processing facility to serve the county's four recycling drop-off locations. The four drop-offs have characteristics as given in the table below. What is the approximate center of gravity of these four locations?

a)

4.75, 6.04

b)

17, 24

c)

33.5, 135.4

d)

6, 4.25

e)

570, 725

58.

A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?

a)

16

b)

70

c)

110

d)

183

e)

600

59.

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. The production order quantity for this problem is approximately

a)

139

b)

174

c)

184

d)

365

e)

548

60.

A local distributor for a national tire company expects to sell approximately 9,600 radial tires of a certain size and tread design next year. Annual carrying cost is $16 per tire, and ordering cost is $75. The distributor operates 288 days a year. What is the Economic Order Quantity?

a)

310

b)

300

c)

30

d)

32

e)

334

61.

What is the reorder point for Problem No. 60 if the leadtime is 5 days?

a)

34

b)

167

c)

300

d)

200

e)

75

62.

Given the following bill of material If the demand for product A is 50 units, what will be the gross requirement for component E?

a)

4

b)

100

c)

200

d)

250

e)

300

63.

Each X requires 2 of component Y; each Y requires 4 of part Z. The lead time for assembly of X is 1 week. The lead time for the manufacture of Y is 1 week. The lead time for the procurement of Z is 6 weeks. The cumulative lead time for X is _____ weeks.

a)

6

b)

7

c)

8

d)

10

e)

cannot be determined

64.

The MPS calls for 50 units of Product A and 60 of B. There are currently 25 of Product B on hand. Each A requires 2 of Part C; each B requires 5 of C. There are 160 units of C available. The net requirements for C are

a)

115

b)

175

c)

240

d)

690

e)

700

65.

Given that the machine availability is 88.75%, the performance is 90.25%, and the quality rating is 98.5%, what is the overall equipment effectiveness?

a)

92.50%

b)

78.90%

c)

88.16%

d)

100%

e)

cannot be determined

66.

Given the following bill of material If the demand for product A is 30 units, and there are 10 units of B on hand and none of C, how many units of part D will be needed?

a)

3

b)

40

c)

70

d)

90

e)

110

67.

Five jobs are waiting to be processed. Their processing times and due dates are given below. Using the earliest due date dispatching rule, in which order should the jobs be processed?

a)

C, E, A, D, B

b)

A, B, C, D, E

c)

B, D, A, E, C

d)

C, B, A, E, D

e)

none of the above

68.

Eight jobs have been sequenced at a single work center. Total processing time for the eight jobs is 34 hours and total flow time for the sequence is 85 hours. For this schedule, utilization is ______ and average jobs in the system is ________.

a)

100 percent; 10.625

b)

low; .0941

c)

0.400 or 40 percent; 2.5

d)

0.235 or 23.5 percent; 4.25

e)

maximized; minimized

69.

What is the reliability of the system shown on the following figure?

a)

87.32%

b)

76.24%

c)

98.39%

d)

96.81%

e)

98.95%

70.

Five jobs are waiting to be processed through two work centers. Their processing time (in minutes) at each work center is contained in the following table. Each job requires work center Sigma before work center Delta. According to Johnson's rule, what sequence of jobs will minimize the completion time for all jobs?

a)

R-S-T-U-V

b)

S-V-T-R-U

c)

S-U-T-V-R

d)

V-R-U-S-T

e)

none of the above

71.

Five jobs are waiting to be processed through two work centers. Their processing time (in minutes) at each work center is contained in the table below. Each job requires work center Alpha before work center Beta. According to Johnson's rule, what is the sequence of the job to minimize completion time?

a)

U-V-S-T-R

b)

R-T-S-V-U

c)

U-R-S-T-V

d)

R-T-SU-V

e)

U-S-V-T-R

72.

According to Johnson's rule, what is the minimum time for completion of all jobs in problem no. 71?

a)

225

b)

175

c)

240

d)

200

e)

none of the above

73.
  1. Three jobs are to be assigned to three machines. Cost for each job-machine combination appears in the table below. What is the optimum assignment of jobs to minimize cost?

a)

1-C; 2-B; 3-A

b)

1-C; 2-A; 3-B

c)

1-B; 2-C; 3-A

d)

1-B; 2-A; 3-C

e)

1-A; 2-C; 3-B

74.

What is the cost of optimal assignment in problem 73?

a)

26

b)

25

c)

24

d)

22

e)

20