Professor Daniel Atayde CBME 1 Name_____________________________

st
1 Semester, AY 2019-2020

PRE-FINAL EXAMINATION

Encircle the letter of your choice of the best answer to each of the following questions. You
have the full period to answer the questions.

The following questions are worth three (3) points each.

1. A cycle is typically the most difficult data pattern to predict.

a) True
b) False

2. The maximum output rate that can be achieved by a facility under ideal conditions is design
capacity.
a) True
b) False

3. For the general warehouse layout problem the department with the highest ratio of trips to areas
needed should be located closest to the dock.
a) True
b) False

4. Services require a single activity or a series of activities and are identified by the term phase.
a) True
b) False

5. The process flowchart describes the overall sequence of operation, movement, inspection, delay,
and storage.
a) True
b) False

6 Which forecasting method seeks to develop a consensus among a group of experts?

a) Market research
b) Executive opinion
c) Delphi method
d) Naïve method
e) Gamma method

7. Which forecasting method assumes that next period’s forecast is equal to this period’s
actual value?
a) Simple mean
b) Ignorant
c) Basic
d) Naïve
e) Nescient

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Professor Daniel Atayde CBME 1 Name_____________________________
st
1 Semester, AY 2019-2020

8. A firm has the following order history over the last 6 months.
January 120
February 95
March 100
April 75
May 100
June 50
What would be a 3-month weighted moving average forecast for July, using weights of 40% for
the most recent month, 30% for the month preceding the most recent month, and 30% for the
month preceding that one?
a) 75
b) 72.5
c) 50
d) 90
e) 106.5

9. Which of the following is the simplest forecasting method?

a) Naïve
b) Moving average
c) Weighted moving average
d) Trend adjusted exponential smoothing
e) Linear regression

10. The maximum output rate that can be achieved by a facility under ideal conditions is
_________________.
a) utilization
b) design capacity
c) effective capacity
d) ultimate capacity
e) temporary capacity
11. Operating a facility close to its best operating level is clearly important because
a) it reduces fixed cost
b) it reduces overtime requirements
c) of impact on costs
d) of impact on employees bonuses
e) it increases production
12. 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

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Professor Daniel Atayde CBME 1 Name_____________________________
st
1 Semester, AY 2019-2020

13. With respect to globalization, which of the following would not be considered an important
location consideration?
a) vertical integration
b) trade barriers
c) culture
d) language barriers
e) foreign markets
14. The challenge in process layouts is to arrange resources to maximize _____ and minimize ____
a) movement, effectiveness
b) effectiveness, efficiency
c) efficiency, waste of movement
d) efficiency, effectiveness
e) efficiency, labor cost

15. A company with a pure intermittent processing system is most likely to use which layout type?
a) inverted
b) hybrid
c) process
d) fixed position
e) product

16. Bridge construction is an example of which layout type?

a) inverted
b) hybrid
c) process
d) fixed position
e) product

17. On which key tradeoff does the textbook focus concerning office layouts?
a) cost vs. comfort
b) pictures vs. windows
c) cubes vs. doors
d) network printers vs. individual printers
e) proximity vs. privacy

18. What occurs when a customer enters a waiting line but decides to exit before being served?
a) balking
b) walking
c) reneging
d) vacillating
e) jockeying

19. When calculating waiting line metrics you must ensure that the arrival rate and service rate are:
a) for the same day.
b) for the same probability.
c) for the same site.
d) for the same time period.
e) for the same utilization factor.
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Professor Daniel Atayde CBME 1 Name_____________________________
st
1 Semester, AY 2019-2020

20. Which of the following is not considered to be a valid performance measure of a waiting line
system?
a) the average number of customers waiting in line
b) the average number of customers in the system
c) the average amount of time customers spend waiting
d) the arrival pattern
e) the system utilization rate

21. Which of the following is not an assumption of the waiting line models presented in the textbook?
a) the customers are patient
b) customers come from an infinite population
c) customer arrival rate is described by a Poisson distribution
d) service times are described by an exponential distribution
e) the waiting line priority rule is quickest service requirements first

22. Which of the following most closely describes job enrichment?

a) vertical expansion
b) transferring workers through a series of jobs to increase their scope of experience
c) increasing the amount of workspace assigned to a worker
d) horizontal expansion
e) assigning two jobs to the same worker

23. 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

24. For each work element in the time study, multiplying the mean observed time by the performance
rating factor by the frequency of occurrence results in what?
a) the normal time for the element
b) the average observed time for the element
c) the standard time for the element
d) the average delay for the element
e) the standard time for the job

The following problems are worth ten (10) points each.

1. The Freewheel motorcycle dealer in the Chicago area wants to be able to forecast
accurately the demand for the Freewheel Super Z12 motorcycle. From sales records, the
dealer has accumulated the following data for the second half of 2000.
Month Sales
July 10
August 15
September 23
October 44
November 54
December 36
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Professor Daniel Atayde CBME 1 Name_____________________________
st
1 Semester, AY 2019-2020

a. Compute a 3-month moving average forecast of demand for January 2001.

b) Compute a 5-month moving average forecast of demand for January 2001.

Essay questions. 5 points each. You may use the back page of this sheet to write your
answers.

1. Enumerate and explain the 10 critical areas of operations management.

2. Distinguish operations management from marketing and finance.
3. Explain the concept of economies of scale or mass customization.
4. Draw and explain the input-transformation-output model. What is value creation?
5. What are the four (4) V’s pf operations management? Give at least 2 implications of each
function as explained in the typology of operations by Nigel Stack.
6. Explain the concept of triple bottom line.
7. Enumerate and explain the 3 pillars of Lean Management.
8. Enumerate the seven (7) types of wastes according to Toyota.
9. What is TQM or total quality management? What the characteristics of quality?
10. Enumerate and explain the 5S’s in quality management.