File: ch01, Chapter 1: Operations Management

1. Operations management is concerned with the _________ of a firm’s productive

systems.
a. design
b. operation
c. improvement
d. All of these answer choices are correct.

2. The transformation process associated with health care is best described as

a. locational
b. exchange
c. physiological
d. informational

3. All of the following are transformation processes discussed in the text except
a. physiological.
b. locational.
c. exchange.
d. spiritual.

4. Which of the following is not one of the four primary functional areas of a firm?
a. human resources
b. legal
c. marketing
d. operations

5. All of the following are responsibilities of operations managers except

a. acquiring financial resources
b. managing inventories
c. planning production
d. scheduling production

6. Which of the following is not an event or concept associated with the quality
revolution?
a. TQM (total quality management)
b. Internet
c. Six Sigma
d. JIT

7. Linear programming, waiting line, simulation, and PERT/CPM are all elements of
which era of operations and supply chain management?
a) Quality Research
b) Operations Research
c) Internet Revolution
d) Globalization
8. Dividing a job into a series of small tasks, each performed by a different worker, is
known as
a. craft production
b. scientific management
c. division of labor
d. interchangeable parts

9. The most recent era in the evolution of operations and supply chain management is
a. Internet Revolution
b. Sustainability
c. Globalization
d. Quality Revolution

10. Sustainability, in it’s broadest sense, include(s)

a. using resources wisely.
b. treating workers with respect.
c. establishing a business model of shared values.
d. All of these answer choices are correct.

10. Mass production is well suited to all of the following except

a. producing large volumes of goods quickly.
b. adapting quickly to changes in market demand.
c. producing standardized products for a large market.
d. All of these answer choices are correct.

11. The major factors impacting globalization of the supply chain include all the
following except
a. falling trade barriers.
b. the Internet.
c. declining union membership.
d. All these answer choices are correct.

12. Companies go global to

a. take advantage of favorable costs.
b. to keep abreast of trends and access new technologies.
c. to build reliable sources of supply.
d. All of these answer choices are correct.

13. A manager of a global supply chain is concerned with all the following except
a. timeliness.
b. quality.
c. social issues.
d. All of these answer choices are correct.
14. The ratio of a firm’s monthly output to the number of labor hours used in the same
month would be a measure of
a. labor productivity.
b. capital productivity.
c. machine productivity.
d. multifactor productivity.

15. The production system that prizes flexibility and quality over efficiency and quantity
is known as
a. mass production.
b. craft production.
c. lean production.
d. electronic commerce.

16. Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From
the following data calculate the labor productivity.
Labor rate $20
Machine rate $15
Units produced 50,000
Labor hours 4,000
Machine hours 2,000
Cost of materials $20,000
Cost of energy $5,000
a. 0.370
b. 0.625
c. 1.500
d. 1.667
Solution: Labor productivity=50,000/80,000=0.625

17. Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From
the following data calculate the machine productivity.
Labor rate $20
Machine rate $15
Units produced 50,000
Labor hours 4,000
Machine hours 2,000
Cost of materials $20,000
Cost of energy $5,000
a. 0..370
b. 0.625
c. 1.500
d. 1.667
Solution: Machine productivity=50,000/30000=1.667

18. Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From
the following raw data calculate the multifactor productivity.
 Labor rate $20
Machine rate $15
Units produced 50,000
Labor hours 4,000
Machine hours 2,000
Cost of materials $20,000
Cost of energy $5,000
a. 0.370
b. 0.625
c. 1.500
d. 1.667
Multi-factor productivity=50,000/135,000=0.370

19. Snacknow, a food service firm, is calculating its monthly productivity report. From
the following raw data calculate the labor productivity.
Labor rate $10
Units produced 10,000
Labor hours 1,000
Cost of materials $2000
Cost of energy $500
a. 0.220
b. 0.476
c. 0.800
d. 1.000
Solution: Labor productivity=10,000/10,000=1.000

20. Snacknow, a food service firm, is calculating its monthly productivity report. From
the following data calculate the energy productivity.
Labor rate $10
Units produced 10,000
Labor hours 1,000
Cost of materials $2000
Cost of energy $500
a. 0.220
b. 2
c. 10
d. 20
Energy productivity=10,000/500=20

21. Snacknow, a food service firm, is calculating its monthly productivity report. From
the following data calculate the multifactor productivity.
Labor rate $20
Units produced 10,000
Labor hours 1,000
 Cost of materials $2000
Cost of energy $500
a. 0.220
b. 0.476
c. 0.800
d. 1.000
Multi-factor productivity=10,000/12,500=0.800
57. _____________ is how the mission of a firm is accomplished.
a. Strategy
b. Design
c. An operational decision
d. None of these answer choices is correct.

58. _____________ represents what the firm is in the business of doing.

a. Primary task
b. Core competency
c. Positioning
d. Deploying

59. _____________ is what the firm does better than anyone else.
a. Primary task
b. Core competency
c. Positioning
d. Deploying

60. _____________ are the characteristics of a product that qualify it to be considered

for purchase by a customer.
a. Order winners
b. Order qualifiers
c. Core competency
d. Positioning

61. _____________ is the characteristic of a product that wins the order in the
marketplace.
a. Order winners
b. Order qualifiers
c. Core competency
d. Positioning

62. _________________is what the firm does better than anyone else.
a.Order qualifiers
b.Core competency
c.Positioning
d.Deploying
63. ______________ focus(es) the organization on common goals that can be
translated into measurable objectives.
 a. Order winners
b. Core competency
c. Positioning
d. Deploying the strategy

64. Companies that compete on ______________ are able to produce a wide variety
of products in response to customer needs.
a. cost
b. speed
c. flexibility
d. quality

65. Companies that compete on ______________ pursue the elimination of all waste.
a. cost
b. speed
c. flexibility
d. quality

66. Companies that compete on ______________ recognize the advantages of time-

based competition.
a. cost
b. speed
c. flexibility
d. quality

67. Companies that compete on ______________ focus on pleasing customers and

satisfying their expectations.
a. cost
b. speed
c. flexibility
d. quality

68. The balanced scorecard examines a firm’s performance in all the following critical
areas except
a. finances
b. customers
c. processes
d. All of these answer choices are correct.

69. The ____________ function helps strategy evolve by creating new ways of delivering
a firm’s competitive priorities.
a. finance
b. marketing
c. operations
d. None of the answer choices is correct.
 70. Companies that compete on _________________ establish a corporate culture that
encourages risk.
a. Innovation
b. Quality
c. Flexibility
d. Cost

71. A(n) ____________ strategy involves a series of integrated decisions on processes,

facilities, technology, quality, capacity, etc.
a. finance
b. marketing
c. operations
d. None of these answer choices is correct.

File: ch02, Chapter 2: Quality Management

40. All of the following are parts of DMAIC except

a) define.
b) measure.
c) analyze.
d) improvise.
Ans: D.
Difficulty: Moderate

Learning Objective: LO 8

41. Which of the following is not a dimension of quality for a manufactured good?
a. performance
b. reliability
c. courtesy
d. durability

42. All of the following are dimensions of quality for manufactured products, except
a. conformance.
b. reliability.
c. durability.
d. feasibility.

43. The probability that a product will operate properly within an expected timeframe is
the dimension of quality known as
a. durability.
b. reliability.
c. performance.
d. serviceability.
44. The degree to which a product meets pre-established standards is known as
a. conformance.
b. performance.
c. reliability.
d. None of these answer choices is correct.

45. Making sure that the product meets the design specifications during production is
referred to as
a. quality of design.
b. process capability.
c. fitness for use.
d. quality of conformance.

46. __________________ advocated continuous improvement to the production process

to achieve conformance to specifications and reduce variability.
a. W. Edwards Deming
b. Philip Crosby
c. Kaoru Ishikawa
d. Frederick Taylor

47. W. Edwards Deming believed that primary responsibility for quality improvement
rested with
a. the firm’s employees only.
b. the fIrm’s management only.
c. research engineers and consulting statisticians only.
d. both the employees and management of the firm.

48. W. Edwards Deming’s overall philosophy for achieving quality is embodied in

a. his 14 points.
b. his statement of purpose.
c. his use of statistical control.
d. None of these answer choices is correct.

49. A relationship between a firm and its supplier where the supplier agrees to meet the
firms’ quality standards and the firm enters into a long-term purchasing agreement
with the supplier is known as
a. Outsourcing.
b. vertical integration.
c. partnering.
d. conformance.

50. Directly involving employees in the quality management process is referred to as

a. partnering.
b. a quality circle.
c. Six Sigma.
d. participative problem solving.
51. A production process consists of the following four stages with the average
percentage of good quality at each stage as shown.

Stage Average Percentage

of Good Quality
1 0.92
2 0.95
3 0.96
4 0.93

What is the daily production yield for the company if daily input is 200 units?
a. 192 units
b. 188 units
c. 184 units
d. 156 units
Solution: Yield=0.92*0.95*0.96*0.93*200=156 units.

52. A production process consists of the following four stages with the average
percentage of good quality at each stage as shown

Stage Average Percentage

of Good Quality
1 0.98
2 0.97
3 0.96
4 0.92

How many units must the company put into production each day to achieve a daily yield
of 100 good units?
a. approximately 119 units
b. approximately 108 units
c. approximately 106 units
d. approximately 104 units
Solution: 100/(0.98*0.97*0.96*0.92)=119 units

53. A production process consists of the following four stages with the average
percentage of good quality at each stage as shown.

Stage Average Percentage

of Good Quality
1 0.95
2 0.95
3 0.93
4 0.97
What is the daily production yield for the company if daily input is 500 units?
a. 485 units
b. 465 units
c. 407 units
d. 400 units
Solution: 500*(0.95*0.95*0.93*097)=407 units

54. A production process consists of the following four stages with the average
percentage of good quality at each stage as shown.

Stage Average Percentage

of Good Quality
1 0.95
2 0.95
3 0.93
4 0.97

How many units must the company put into production each day to achieve a daily yield
of 350 good units?
a. approximately 430 units
b. approximately 415 units
c. approximately 468 units
d. approximately 361 units
Solution: 350/(0.95*0.95*0.93*097)=430 units

55. The costs associated with developing a quality management system are known as
a) training costs.
b) design costs.
c) quality planning costs.
d) information costs.

56. ______ failure costs include scrap, rework, and downtime.

a) External
b) Internal
c) Process
d) System
Ans: B

57. Which of the following quality tools display major causes of poor quality on a graph?
a. Process flow chart
b. Fishbone diagram
c. Histogram
d. Scatter diagram
58. Which of the following quality tools displays the frequency of data related to a
quality problem?
a. Fishbone diagram
b. Histogram
c. Scatter diagram
d. Process flow chart

59. Which of the following quality tools displays the relationship between two variables
on a graph
a. Process flow chart
b. Fishbone diagram
c. Histogram
d. Scatter diagram

60. Which of the following quality tools displays the steps in a process on a graph
a. Process flow chart
b. Fishbone diagram
c. Histogram
d. Scatter diagram

61. Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The
company produces 100 units per day and averages 90% good quality resulting in 10%
defective items. Fifty percent of the defective units are reworked prior to shipment to
Modern’s distribution center.
What is the product yield?
a. 80
b. 85
c. 90
d. 95
Solution: Yield=100*0.90+10*0.50=95

62. Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The
company produces 100 units per day and averages 90% good quality resulting in 10%
defective items. Fifty percent of the defective units are reworked prior to shipment to
Modern’s distribution center. The rework cost is $10 per unit.
The quality productivity ratio (QPR) is
a. approximately 1.00.
b. approximately 1.10.
c. approximately 1.20.
d. approximately 1.30.
Solution: QPR=95/($8000+$50)*100=1.18

63. Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The
company produces 100 units per day and averages 90% good quality resulting in 10%
defective items. Fifty percent of the defective units are reworked prior to shipment to
Modern’s distribution center. The rework cost is $10 per unit.
If production is increased to 200 units per day, the quality productivity ratio (QPR) is
a. approximately 1.00.
b. approximately 1.10.
c. approximately 1.20.
d. approximately 1.30.
Solution: QPR=190/($16000+$100)*100=1.18

64. Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The
company produces 100 units per day and averages 90% good quality resulting in 10%
defective items. Fifty percent of the defective units are reworked prior to shipment to
Modern’s distribution center. The rework cost is $10 per unit.
If the percent good quality increases from 90% to 95%, the quality productivity ratio
(QPR) is
a. approximately 1.20.
b. approximately 1.40.
c. approximately 1.60.
d. approximately 180.
Solution: QPR=97.5/($8000+$25)*100=1.21

65. Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The
company produces 100 units per day and averages 90% good quality resulting in 10%
defective items. Fifty percent of the defective units are reworked prior to shipment to
Modern’s distribution center. The rework cost is $10 per unit.
If the rework cost is increased to $50 the quality productivity ratio (QPR) is
a. approximately 1.10.
b. approximately 1.15.
c. approximately 1.20.
d. approximately 125.
Solution: QPR=95/($8000+$250)*100=1.15

66. Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The
company produces 100 units per day and averages 90% good quality resulting in 10%
defective items. Fifty percent of the defective units are reworked prior to shipment to
Modern’s distribution center. The rework cost is $10 per unit.
If the production cost is decreased to $70 the quality productivity ratio (QPR) is
a. approximately 1.15.
b. approximately 1.25.
c. approximately 1.35.
d. approximately 1.45.
Solution: QPR=95/($7000+$50)*100=1.35

67. Total quality management (TQM) was originated in the 1980s as a _____________
management approach to improve quality.
a. Korean
b. American
c. Japanese
d. European
68. Which of the following is not a basic principle of total quality management (TQM)?
a. Quality must be measured.
b. The quality standard is no defects.
c. Quality can and must be managed.
d. The producer defines quality.
Ans: D

69. A ____________________ is a system that achieves customer satisfaction and

complements other company systems.
a. quality management system
b. total quality system
c. quality productivity system
d. None of these answer choices is correct.

70. Research has shown that companies achieving high customer satisfaction ratings
a. attract new suppliers.
b. retain existing customers.
c. attract new employees.
d. None of these answer choices is correct.

71. A relationship between a company and a supplier based on mutual quality standards
is called
a. sourcing.
b. partnering.
c. sourcing and partnering
d. None of these answer choices is correct.

72. The primary means for gathering information from customers and measuring
customer satisfaction is
a. a sampling program.
b. a phone interview.
c. feedback from competitors.
d. a survey.

73. ACSI measures ________________ the goods and services of seven economic
sectors.
a. product quality of
b. customer satisfaction with
c. product demand for
d. market share for

74. The customer of ________________ firm(s) interacts directly with the production
process.
a. a service
b. a manufacturing
c. both service and manufacturing
 d. None of these answer choices is correct.

75. A(n) ____________ is the best level of quality achievement in one company that
others seek to match or exceed.
a. attribute
b. target value
c. benchmark
d. variable

76. _____________________ is an important measure of service quality that is not

difficult to measure.
a. Timeliness
b. Benchmarking
c. Kaizen
d. Participative problem solving

77. The Six Sigma quality goal is 3.4 defects per ___________________ opportunities.
a. hundred
b. thousand
c. million
d. billion

78. At the heart of Six Sigma is the ____________________ strategy, a five-step process
applied to improvement projects.
a. continuous improvement
b. breakthrough
c. champion
d. None of these answer choices is correct.

79. Quality costs include the cost of _____________________.

a. achieving good quality
b. poor quality
c. both achieving good quality and generating poor quality
d. None of these answer choices is correct.

80. The cost of achieving good quality includes

a. prevention costs.
b. internal failure costs.
c. external failure costs.
d. None of these answer choices is correct.

81. The cost of achieving poor quality includes

a. prevention costs.
b. appraisal costs.
c. internal failure costs.
 d. All of these answer choices are correct.

82. The Baldridge Award was created in 1987 to _________________ in the U.S.
a. stimulate growth of quality management
b. stimulate economic growth
c. recognize the best quality gurus
d. None of these answer choices is correct.

83. ISO in ISO 9000 is

a. not an acronym for International Organization for Standardization.
b. a word derived from a Greek word meaning equal.
c. both a word derived from a Greek word meaning equal and not an acronym
for International Organization for Standardization.
d. None of these answer choices is correct.

File: ch04, Chapter 4: Product Design

1. Design can provide a competitive edge by

a. bringing products to market quickly.
b. doing an even better job of satisfying customers.
c. being easier to manufacture, use and repair.
d. All these answer choices are correct.

2. Which of the following is not a characteristic of an effective product design process?

a. matches product characteristics with customer requirements
b. maximizes the revisions necessary to make a design workable
c. ensures that customer requirements are met in the least costly and simplest
manner
d. reduces the time required to design a new product or service

3. All of the following are characteristics of an effective design process except

a. increasing the design time for new products and services.
b. meeting customer requirements in the least costly manner.
c. matching product or service characteristics with customer requirements.
d. minimizing the number of revisions needed to make the design workable.

4. Product design begins with

a. a feasibility study.
b. a form design.
c. understanding the customer and identifying customer needs.
d. pilot runs and final tests.

5. If a firm’s design process is too lengthy

a. a competitor may capture market share by being first to market.
b. a competitor may lose market share by being first to market.
c. a competitor may decide not to enter the market.
d. None of these answers is correct.
6. Carefully dismantling and inspecting a competitor’s product to look for design
features that can be incorporated into your own product is known as
a. concurrent design.
b. design for manufacturability.
c. benchmarking.
d. reverse engineering.

7. A feasibility study consists of all the following except

a. a market analysis.
b. an economic analysis.
c. a technical and strategic analysis.
d. a concurrent analysis.

8. ____________________ describe(s) what the product should do to satisfy customer

needs.
a. Performance specifications
b. Benchmarks
c. Perceptual maps
d. Reverse engineering

9. Creating a preliminary design that can be quickly tested and then either discarded or
further refined is referred to as
a. Benchmarking.
b. rapid prototyping.
c. concurrent design.
d. perceptual mapping.

10. The probability that a product will perform its intended function for a specified length
of time under normal conditions is called
a. benchmarking.
b. perceptual mapping.
c. Maintainability.
d. Reliability.

11. Which of the following is a quantitative measure of reliability?

a. reliability bar
b. maintainability
c. mean time between failures (MTBF)
d. mean time to repair (MTTR)

12. All of the following can improve a product’s reliability except

a. simplifying product design
b. improving individual component reliability.
c. changing the product warranty.
d. adding redundant components..
13. Combining standardized building blocks in different ways to create unique finished
products is known as
a. rapid prototyping.
b. robust design.
c. modular design.
d. concurrent design.

14. A company produces a product consisting of two components arranged as follows:

0.95 0.93

If both components must function for the product to function, then the product’s
overall reliability is
a. 0.950
b. 0.940
c. 0.930
d. 0.884

15. A company produces a product consisting of two components arranged as follows:

0.97 0.90

Both components must function for the product to function. To achieve an overall
reliability of at least 0.95 without changing the reliability of the first component, the
reliability of the second component would need to be
a. at least 0.925 .
b. at least 0.95.
c. at least 0.97.
d. at least 0.98.

16. A company produces a product consisting of two components arranged as follows:

R1 R2

If both components must function for the product to function, then the two
components would need individual reliabilities of _______ to achieve an overall
reliability of 0.90.
a. R1 = 0.90 and R2 = 0.90
b. R1 = 0.95 and R2 = 0.95
c. R1 = 0.80 and R2 = 0.80
d. R1 = 0.85 and R2 = 0.85

17. A product consists of three components arranged as follows:

 R1 = R2 = R3 =
0.95 0.90 0.95

If all three components must function for the product to function, then the product’s
overall reliability is approximately
a. 0.812.
b. 0.90.
c. 0.933.
d. 0.95.

18. The overall reliability of the following system is

0.90

0.95 0.95 0.95

a. greater than 1.00.

b. 0.95.
c. 0.90.
d. 0.898.

19. For the overall reliability of the following system to be 0.975 or greater the reliability
of the backup component, Rb, must be

Rb =?

0.99 0.95 0.99

a. at least 1.00.
b. at least 0.896.
c. at least 0.736.
d. at least 0.534.

20. The overall reliability of the following system is

0.85 0.89
 0.90 0.94 0.93

a. 0.787.
b. 0.85.
c. 0.89.
d. 0.919.

21. A product consists of three components arranged as follows:

R1 = R2 = R3 =
If all ?three components must0.94
function for the product to function, and the product’s
0.98
overall reliability must be at least 0.92, then the reliability of the first component, R1,
must be
a. at least 0.999.
b. at least 0.84.
c. at least 0.96.
d. at least 0.972.

22. If a product fails 10 times in 500 hours of operation, then its mean time between
failures (MTBF) is
a. 0.02 hour.
b. 0.10 hour.
c. 20 hours.
d. 50 hours.

23. If a piece of equipment has a mean time between failures (MTBF) of 500 hours with
a mean time to repair (MTTR) of 10 hours, then its uptime or average availability
would be
a. 0.020 or 2.00%
b. 0.980 or 98.00%
c. 0.500 or 50.00%
d. 1.000 or 100.00%

24. The system availability for a system with a mean time between failures (MTBF) of
1000 hours and a mean time to repair (MTTR) of 50 hours would be
a. 100.00%
b. 97.50%
c. 95.24%
d. 4.76%

25. Which of the following will not improve design for manufacture and assembly?
a. minimizing the number of parts and subassemblies
 b. using standard parts when possible
c. designing parts for limited, unique uses
d. designing parts for many, varied uses

26. _____________________ involves taking into account the capabilities at each level
of the supply chain when designing a product.
a. Design for supplier
b. Design for manufacturer
c. Design for supply chain
d. Design for competitor

27. Functional design includes all the following except

a. reliability.
b. usability.
c. form design.
d. maintainability.

28. Simultaneously designing new products and the processes to produce them is known
as
a. concurrent design.
b. functional design.
c. modular design.
d. standard design.

29. ____________________ is a software system that facilitates collaborative design and

development among trading partners.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
d. None of these answer choices is correct.

30. ____________________ is a software system that assists in the creation, modification

and analysis of design.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
d. None of these answer choices is correct.

31. ____________________ is a software system that retrieves the description and

geometry of a design from a database, and tests and analyzes that design on a
computer screen.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
d. None of these answer choices is correct.
32. ____________________ is a software system that stores, retrieves and updates design
data through the lifecycle of a product.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
d. None of these answer choices is correct.

33. Product lifecycle management is a software system that

a. facilitates collaborative design and development among trading partners.
b. stores, retrieves and updates design data through the lifecycle of a
product.
c. retrieves the description and geometry of a design from a database, and tests
and analyzes that design on a computer screen.
d. assists in the creation, modification and analysis of design.

34. Failure mode and effects analysis (FMEA) is

a. a software systems that uses computer graphics to assist in designing products.
b. a systematic approach to analyzing the causes and effects of product failures.
c. a visual method for analyzing the interrelationships among failures.
d. a structured process that translates the voice of the customer into technical design
requirements.

35. Fault tree analysis (FTA) is

a. a software systems that uses computer graphics to assist in designing products.
b. a systematic approach to analyzing the causes and effects of product failures.
c. a visual method for analyzing the interrelationships among failures.
d. a structured process that translates the voice of the customer into technical design
requirements.
36. _________________________is a procedure, used by multifunction design teams, to
eliminate unnecessary features and functions from a product design.
a. Failure mode and effects analysis
b. Value analysis
c. Fault tree analysis
d. All of these answer choices is correct.

37. Which of the following techniques would most likely be used to systematically
analyze product failures?
a. concurrent design
b. quality function deployment
c. failure mode and effects analysis
d. value analysis

38. The ability to meet present needs without compromising those of future generations is
a concept in product design known as reusability.
b. maintainability.
 c. reliability.
d. sustainability.

39. All of the following are principles of green product design except
a) use new materials.
b) use less materials.
c) involve the entire supply chain.
d) change the paradigm of design.

40. ___________________ is a concept where companies are held responsible for their
product even after its useful life.
a. Design for disposal or reuse
b. Sustainability
c. Extended producer responsibility
d. Environmentally safe people

41. With ___________________, consumers are encouraged to use the product

efficiently, repair it when possible and dispose of it responsibly.
a. green sourcing
b. green manufacture
c. recycling and reuse
d. green consumption

42. With ___________________, suppliers are encouraged to suggest more

environmentally friendly materials, methods and processes.
a. green sourcing
b. green manufacture
c. recycling and reuse
d. green consumption

43. Design for the environment includes all the following concepts except
a. design for disposal or reuse.
b. sustainability.
c. extended producer responsibility.
d. environmentally safe people.

44. Quality function deployment (QFD) is

a. a software systems that uses computer graphics to assist in designing products.
b. a systematic approach to analyzing the causes and effects of product failures.
c. a visual method for analyzing the interrelationships among failures.
d. a structured process that translates the voice of the customer into technical
design requirements.

45. A structured process that translates the voice of the customer into technical design
requirements is known as
a. quality function deployment (QFD).
 b. failure mode and effects analysis (FMEA).
c. concurrent design.
d. robust product design.

46. Which of the following is a quantitative measure of maintainability?

a. design for manufacture (DFM)
b. mean time to repair (MTTR)
c. mean time between failures (MTBF)
d. quality function deployment (QFD)

47. When a product is designed to withstand variations in environmental and operating

conditions, it is known as
a) robust design.
b) design for change.
c) design for modification.
d) design for tolerance.

48. The Taguchi Quality Loss Function implies that a

a. customer’s dissatisfaction increases geometrically as the actual value deviates
from the target value.
b. customer’s satisfaction increases geometrically as the actual value deviates from
the target value.
c. customer’s dissatisfaction decreases geometrically as the actual value deviates
from the target value.
d. customer’s preferences are strongly oriented towards conforming to
specifications.

49. As a part of design for robustness, Taguchi believes that

a. consistent errors can be more easily corrected than random errors.
b. parts within tolerance limits may produce assemblies that are not within limits.
c. consumers have a strong preference for product characteristics near their ideal
value.
d. All of these answer choices are correct.

File: ch5, Chapter 5: Service Design

33. Which of the following is not a characteristic of a service?

a. Intangible
b. Variable output
c. Difficult to emulate
d. Perishable

34. Which of the following is not a characteristic of a service?

a. Tangible
b. Variable output
c. Difficult to emulate
 d. Perishable
35. In a waiting line system, the ___________ reflects the probability that the server is
busy and the customer must wait.
a. utilization factor
b. queue discipline
c. average number of customers in the system
d. probability the system is idle

36. A dentist office is an example of a

a. service factory.
b. mass service.
c. service shop.
d. professional service.

37. An airline is an example of a

a. service factory.
b. mass service.
c. service shop.
d. professional service.

38. A grocery store is an example of a

a. service factory.
b. mass service.
c. service shop.
d. professional service.

39. A teacher is an example of a

a. service factory.
b. mass service.
c. service shop.
d. professional service.

40. Which of the following is not a basic element of a waiting line?

a. arrivals
b. servers
c. cost of waiting
d. waiting line structure

41. The ________________ is the source of customers for a waiting line system.
a. calling population
b. arrival rate
c. service line channel
d. service line phase
42. The number of arrivals per unit of time at a service facility can frequently be
described by a
a. normal distribution.
b. Poisson distribution.
c. binomial distribution.
d. Beta distribution.

43. The ______________ refers to the order in which waiting customers are served.
a. calling population
b. queue discipline
c. number of channels
d. service rate
44. The number of channels in a queuing process
a. denotes the number of servers in sequence a customer must go through.
b. denotes the size of the calling population.
c. denotes the number of parallel servers for servicing arriving customers.
d. denotes the average queue length.

45. In general, as the number of servers in a waiting line system increases,

a. service cost increases and waiting cost decreases.
b. service cost decreases and waiting cost increases.
c. both service cost and waiting cost increase.
d. both service cost and waiting cost decrease.

46. If the average time to serve a customer is 3 minutes, then the service rate, µ, is
a. 3 per hour.
b. 12 per hour.
c. 16 per hour.
d. 20 per hour.
Solution: µ =6-/3=20 per hour

47. If, on average, it takes 90 seconds to serve a customer then the hourly service rate, µ,
is
a. 90 per hour.
b. 40 per hour.
c. 30 per hour.
d. 1.5 per hour.
Solution: µ=60/(90/60)=40 per hour

48. Consider an espresso stand with a single barista. Customers arrive at the rate of 20 per
hour according to a Poisson distribution. Service times are exponentially distributed with
a mean service time of 2 minutes per customer. What is the service rate per hour for the
espresso stand?
a. 30 customers
b. 20 customers
c. 15 customers
 d. 2 customers
Solution: µ=60/2=30 per hour

49. Consider an espresso stand with a single barista. Customers arrive at the stand at the
rate of 28 per hour according to a Poisson distribution. Service times are exponentially
distributed with a service rate of 35 customers per hour. The probability that the server is
busy is
a. 0.20
b. 0.60
c. 0.80
d. 1.00
Solution: P=28/35=0.20

50. Consider an espresso stand with a single barista. Customers arrive at the stand at the
rate of 28 per hour according to a Poisson distribution. Service times are exponentially
distributed with a service rate of 35 customers per hour. The probability that the server is
idle is
a. 0.20
b. 0.60
c. 0.80
d. 1.00
Solution: Po=1-28/35=0.20

51. Consider an espresso stand with a single barista. Customers arrive at the stand at the
rate of 28 per hour according to a Poisson distribution. Service times are exponentially
distributed with a service rate of 35 customers per hour. The probability that there are
exactly 3 customers in the system is
a. 0.0000
b. 0.1024
c. 0.4096
d. 0.5120
Solution: P3=(28/35)*(28/35)*28/35*0.20=0.1024

52. Consider an espresso stand with a single barista. Customers arrive at the stand at the
rate of 28 per hour according to a Poisson distribution. Service times are exponentially
distributed with a service rate of 35 customers per hour. The probability that there are
more than 2 customers in the system is
a. 0.128
b. 0.488
c. 0.512
d. 0.640
Solution: P2ormore=1-(P0+P1+P3)=1-(0.2+0.16+0.1024)=0.512

53. Consider an espresso stand with a single barista. Customers arrive at the stand at the
rate of 28 per hour according to a Poisson distribution. Service times are exponentially
distributed with a service rate of 35 customers per hour. The average number of
customers waiting in line for service is
a. 4.0
b. 3.8
c. 3.5
d. 3.2
Solution: Lq=28*28/(35*7)=3.2

54. Consider an espresso stand with a single barista. Customers arrive at the stand at the
rate of 28 per hour according to a Poisson distribution. Service times are
exponentially distributed with a service rate of 35 customers per hour. The average
number of customers in the system (i.e., waiting and being served) is
a. 4.0
b. 3.8
c. 3.2
d. 2.0
Solution: L=28/(35-28)=4.0

55. Consider an espresso stand with a single barista. Customers arrive at the stand at the
rate of 28 per hour according to a Poisson distribution. Service times are
exponentially distributed with a service rate of 35 customers per hour. The average
time in minutes a customer spends waiting in line for service is
a. 0.114 minute.
b. 0.143 minute.
c. 6.84 minutes.
d. 8.58 minutes.
Solution: Wq=28/(35*7)*60=6.84

56. Consider an espresso stand with a single barista. Customers arrive at the stand at the
rate of 28 per hour according to a Poisson distribution. Service times are
exponentially distributed with a service rate of 35 customers per hour. The average
time in minutes a customer spends in the system (i.e., waiting and being served) is
a. 0.114 minute
b. 0.143 minute
c. 6.84 minutes
d. 8.58 minutes
Solution: W=1/(35-28)*60=8.58

57. Consider an espresso stand with a single barista. Customers arrive to the stand at the
rate of 28 per hour according to a Poisson distribution. Service times are
exponentially distributed with a service rate of 35 customers per minute. If the arrival
rate remains at 28 customers per hour and the stand’s manager wants to have the
 average time a customer spends in the system (i.e., wait time and service time) to be a
maximum of 6 minutes on average, then the service rate must
a. decrease by 2 to 33 customers per hour.
b. decrease by 3 to 32 customers per hour.
c. increase by 3 to 38 customers per hour.
d. increase by 2 to 37 customers per hour.
Solution: 6/60=0.1hr; 0.1=1/( µ-28); µ=38

58. A small diner has one employee and a counter with seating for 8 customers. The
diner does not package food for takeout. Customers arrive at the diner at the rate of
20 per hour (Poisson distributed). Service times are exponentially distributed and
average 24 per hour. Customers that arrive when all seats are taken do not enter the
diner. What is the probability that there are no customers in the diner?
a. 0.2067
b. 0.7933
c. 0.8333
d. 0.1667

59. A small diner has one employee and a counter with seating for 8 customers. The
diner does not package food for take out. Customers arrive at the diner at the rate of
20 per hour (Poisson distributed). Service times are exponentially distributed and
average 24 per hour. Customers that arrive when all seats are taken do not enter the
diner. What is the probability that the diner is full and an arriving customer does not
enter?
a. 0.8333
b. 0.1667
c. 0.2067
d. 0.0481

60. A small diner has one employee and a counter with seating for 8 customers. The
diner does not package food for takeout. Customers arrive at the diner at the rate of
20 per hour (Poisson distributed). Service times are exponentially distributed and
average 24 per hour. Customers that arrive when all seats are taken do not enter the
diner. What is the average number of customers in the diner?
a. 2.0432
b. 2.8364
c. 3.7536
d. 5.4837

61. A small diner has one employee and a counter with seating for 8 customers. The
diner does not package food for takeout. Customers arrive at the diner at the rate of
20 per hour (Poisson distributed). Service times are exponentially distributed and
average 24 per hour. Customers that arrive when all seats are taken do not enter the
diner. What is the average number of customers waiting (average queue length)?
a. 2.0432
b. 2.8364
 c. 3.9785
d. 5.9782

62. A small diner has one employee and a counter with seating for 8 customers. The
diner does not package food for takeout. Customers arrive at the diner at the rate of
20 per hour (Poisson distributed). Service times are exponentially distributed and
average 24 per hour. Customers that arrive when all seats are taken do not enter the
diner. What is the average time a customer spends in the diner?
a. 3 minutes
b. 5.975 minutes
c. 6.44 minutes
d. 8.94 minutes

63. A small diner has one employee and a counter with seating for 8 customers. The
diner does not package food for takeout. Customers arrive at the diner at the rate of
20 per hour (Poisson distributed). Service times are exponentially distributed and
average 24 per hour. Customers that arrive when all seats are taken do not enter the
diner. What is the average time a customer spends waiting?
a. 2.5 minutes
b. 3.0 minutes
c. 6.44 minutes
d. 24 minutes

64. A service counter employs two servers. On average, a server requires 8 minutes to
process a customer and service times follow an exponential distribution. Customers arrive
at the counter at the rate of 12 per hour according to a Poisson distribution. The service
rate per server for this system is
a. 3.75 customers per hour.
b. 7.5 customers per hour.
c. 8 customers per hour.
d. 16 customers per hour.

65. A service counter employs two servers. On average, a server requires 8 minutes to
process a customer and service times follow an exponential distribution. Customers arrive
at the counter at the rate of 12 per hour according to a Poisson distribution. The
probability that there are no customers in the system is
a. 0.800
b. 0.536
c. 0.369
d. 0.111

66. A service counter employs two servers. On average, a server requires 8 minutes to
process a customer and service times follow an exponential distribution. Customers arrive
at the counter at the rate of 12 per hour according to a Poisson distribution. The
probability that an arriving customer must wait for service is
a. 0.7111
 b. 0.8000
c. 0.8576
d. 0.9327

67. A service counter employs two servers. On average, a server requires 8 minutes to
process a customer and service times follow an exponential distribution. Customers arrive
at the counter at the rate of 12 per hour according to a Poisson distribution. On average,
the total number of customers in the system (i.e., waiting and being served) would be
a. 1.600
b. 2.844
c. 3.200
d. 4.444

68. A service counter employs two servers. On average, a server requires 8 minutes to
process a customer and service times follow an exponential distribution. Customers arrive
at the counter at the rate of 12 per hour according to a Poisson distribution. The average
number of customers waiting to be served would be
a. 4.444
b. 2.844
c. 1.600
d. 0.893

69. A service counter employs two servers. On average a server requires 8 minutes to
process a customer and service times follow an exponential distribution. Customers arrive
at the counter at the rate of 12 per hour according to a Poisson distribution. The average
amount of time, in minutes, spent in the system (i.e., waiting and being served) is
approximately
a. 0.237 minutes
b. 14.22 minutes
c. 22.20 minutes
d. 33.30 minutes

70. A service counter employs two servers. On average, a server requires 8 minutes to
process a customer and service times follow an exponential distribution. Customers arrive
at the counter at the rate of 12 per hour according to a Poisson distribution. The average
amount of time spent by a customer waiting in line is approximately
a. 0.370 minutes
b. 2.844 minutes
c. 14.22 minutes
d. 22.20 minutes

File: ch06, Chapter 6: Processes and Technology

1. A firm’s process strategy defines all of the following except its

a. capital intensity.
 b. process flexibility.
c. vertical integration.
d. process selection.

37. The extent to which the firm will produce the inputs and control the outputs of each
stage of the production process is known as
a. vertical integration.
b. process flexibility.
c. process planning.
d. capital intensity.

38. The ease of adjusting resources in response to changes in demand defines a firm’s
a. vertical integration.
b. process flexibility.
c. customer involvement.
d. capital intensity.

39. Variable demand and small-to-moderate quantities produced to-order are

characteristics usually associated with
a. mass production.
b. continuous production.
c. projects.
d. batch production.

40. Most of the operations in batch production involve

a. fabrication.
b. assembly.
c. continuous processing.
d. outsourcing.

41. A print shop is an example of which of the following process choices?

a. project
b. batch production
c. continuous production
d. mass production

42. Which of the following is not an advantage of batch production?

a. frequent changes in product mix
b. flexibility
c. customization of output
d. quality reputation

43. Disadvantages of batch production include all of the following except

a. high per-unit costs.
b. frequent changes in product mix.
c. flexibility.
 d. scheduling problems.

44. Complex scheduling problems are most likely to occur with which process type?
a. mass production
b. batch production
c. continuous production
d. None of these answer choices is correct.

45. Which of the following is not a characteristic of mass production?

a. made-to-stock
b. stable demand
c. high product variety
d. high product volume

46. Mass production systems tend to employ

a. specialized equipment and limited labor skills.
b. specialized equipment and specialized labor skills.
c. general purpose equipment and limited labor skills.
d. general purpose equipment and specialized labor skills.

47. One disadvantage of mass production is its

a. efficiency.
b. speed of production.
c. low per-unit costs.
d. lack of responsiveness.

48. Steel, paper, paints, and chemicals are examples of products that use
a. batch production.
b. repetitive production.
c. continuous production.
d. mass production.

49. As process selection moves up the diagonal from project to continuous production
a. demand volume increases.
b. product variety increases.
c. capital intensity decreases.
d. flexibility increases.

50. A company is considering producing a product for a new market. The fixed cost
required for manufacturing and delivering the product is $50,000. Labor and material
costs are estimated to be approximately $25 per product. If the product is sold for $35.00
each, the firm’s breakeven volume would be
a. 50,000 units
b. 5,000 units
c. 2,500 units
d. 500 units
 Solution: BE=50,000/(35-25)=5,000 units

51. If a firm can sell a product for $40each, then what is the volume needed to breakeven
if the fixed cost of production is $125,000 and labor and material costs are $30. per item?
a. 125,000
b. 12,500
c. 4,167
d. 3,250

52. A company is evaluating which of two alternatives should be used to produce a

product that will sell for $35 per unit. The following cost information describes the two
alternatives.

Process A Process B
Fixed Cost $500,000 $750,000
Variable Cost per Unit $25 $23

The breakeven volume for Process A is

a. 50,000 units.
b. 62,500 units.
c. 30,000 units.
d. 20,000 units.
Solution: 500,000/(35-25)=50,000 units

53. A company is evaluating which of two alternatives should be used to produce a

product that will sell for $35 per unit. The following cost information describes the two
alternatives.

Process A Process B
Fixed Cost $500,000 $750,000
Variable Cost per Unit $25 $23

The break-even volume for Process B is

a. 50,000 units.
b. 62,500 units.
c. 30,000 units.
d. 20,000 units.
Solution: 750000/(35-23)=62,500 units

54. A company is evaluating which of two alternatives should be used to produce a

product that will sell for $35 per unit. The following cost information describes the two
alternatives

Process A Process B
Fixed Cost $500,000 $750,000
Variable Cost per Unit $25 $23
 If total demand (volume) is 120,000 units, then the company should
a. select Process A with a profit of $940,000 to maximize profit
b. select Process B with a profit of $450,000 to maximize profit
c. select Process A with a profit of $700,000 to maximize profit
d. select Process B with a profit of $690,000 to maximize profit
Solution: Profit=120,000*($35-$25)-$500,000=$700,000

55. A company is evaluating which of two alternatives should be used to produce a

product that will sell for $35 per unit. The following cost information describes the two
alternatives

Process A Process B
Fixed Cost $500,000 $750,000
Variable Cost per Unit $25 $23

If total demand (volume) is 150,000 units, then the company should

a. select Process A with a profit of $1,300,000 to maximize profit
b. select Process B with a profit of $750,000 to maximize profit
c. select Process A with a profit of $1,000,000 to maximize profit
d. select Process B with a profit of $1,050,000 to maximize profit
Solution: Profit=150,000*($35-$23)-$750,000=$1,050,000

56. A company is evaluating which of two alternatives should be used to produce a

product that will sell for $35 per unit. The following cost information describes the two
alternatives

Process A Process B
Fixed Cost $500,000 $750,000
Variable Cost per Unit $25 $23

For what level of volume (output) would the firm prefer Process A to Process B?
a. for all volume levels greater than 75,000
b. for all volume levels greater than 97,500
c. for all volume levels greater than 117,500
d. for all volume levels greater than 125,000
Solution: $500,000+$25v=$750,000+$23v; v=125,000

57. A company is considering producing an item that can be sold for $37.50 per unit. If
the fixed costs for setting up production are $225,000 and the variable cost per unit for
the item is $35 then the breakeven volume for this item is
a. 6,000 units.
b. 6,429 units.
c. 72,500 units.
d. 90,000 units.
Solution:$225,000/($37.50-$35.00)=90,000 units
58. All the following are factors influencing the outsourcing decision except
a. capacity.
b. expertise.
c. quality.
d. product variety.

59. The product-process matrix includes all the following process types except
a. mass production.
b. stable production.
c. continuous production.
d. batch production.

60. Which of the following is not associated with the sourcing continuum?
a. Joint venture
b. In-house production
c. Strategic alliance
d. Single contract

61. Technology decisions typical in operations management include all the following
areas except
a. information technology.
b. product technology.
c. process technology.
d. communication technology.
62. Processes are analyzed for all the following reasons except
a. speed-time-to-completion.
b. for environmental considerations.
c. to increase sustainability.
d. All these answer choices are correct.

63. All the following are basic tools of process analysis except
a. flowcharts.
b. diagrams.
c. maps.
d. spreadsheets.

64. The first step in building a flowchart is to

a. define process boundaries.
b. map out the process
c. determine objectives
d. None of these answer choices is correct.
65. Which of the following is not a standard label of the symbols used for the
construction of a process flowchart?
 a. Improve
b. Transport
c. Operation
d. Delay

66. Process flowcharts document

a. productive activities.
b. nonproductive activities.
c. Both productive and nonproductive activities.
d. None of these answers is correct.

67. Existing processes should be analyzed for improvement on a

a. Continual basis.
b. Sporadic basis
c. As needed basis
d. None of these answer choices is correct.

68. When opportunities for continuous improvement of a process have been exhausted, it
may be time to
a. redesign or innovate.
b. shut down the process.
c. subcontract the production.
d. All of these answer choices are correct.

69. Typical performance improvement resulting from a process innovation project ranges
from
a. 5 to 10%.
b. 25 to 50%.
c. 50 to 100%.
d. 100 to 200%.

70. A high-level process map, useful in the beginning the redesign of a process,
contain(s)
a. detailed steps associated with each activity.
b. essential building blocks of the main activities.
c. both detailed steps and essential building blocks.
d. None of these answer choices is correct.

71. The first step in process innovation is to determine

a. design principles.
b. strategic directives.
 c. customer requirements.
d. model validation.

72. Technology decisions

a. involve large sums of money.
b. definefuture capabilities.
c. set the stage for competitive interactions.
d. All of these answer choices are correct.

73. Capital budgeting techniques, used to evaluate new technology, often examine
a. purchase cost.
b. operating costs.
c. annual savings.
d. All of these answer choices are correct.

74. Which of the following is not a capital budgeting technique?

a. Revenue enhancement
b. Replacement analysis
c. Risk and uncertainty
d. All of these answer choices are correct.

75. Which of the following is not an example of product technology?

a. CAD
b. PLM
c. FMS
d. CAE

76. Which of the following is not an example of manufacturing technology?

a. Robots
b. AGV
c. E-procurement
d. Conveyors

File: ch07, chapter 7: Capacity and Facilities

1. Which of the following is not a capacity expansion strategy?

a. Capacity lead strategy
b. Capacity lag strategy
c. Capacity stability strategy
d. Average capacity
2. Capacity is defined as the
a. minimum capability to produce.
b. maximum capability to produce.
c. average capability to produce.
d. None of these answer choices is correct.

3. The two critical decisions concerning capacity include

a. When to increase and how much to increase.
b. When to increase and where to locate.
c. How much to increase and where to locate.
d. None of these answer choices is correct.

4. The ______________________ for a facility is the percent of capacity utilization that

minimizes cost.
a. best operating level
b. capacity cushion
c. diseconomies of scale
d. economies of scale

5. When higher levels of output cost less per unit to produce, the facility realizes
a. best operating level.
b. capacity cushion.
c. diseconomies of scale.
d. economies of scale.

6. When higher levels of output cost more per unit to produce, the facility realizes
a. best operating level.
b. capacity cushion.
c. diseconomies of scale.
d. economies of scale.

7. The ______________________ is the percent of demand held in reserve for

unexpected occurrences.
a. best operating level
b. capacity cushion
c. diseconomies of scale
d. economies of scale

8. Facility design has an impact on

a. quality.
b. productivity.
c. both quality and productivity.
d. None of these answer choices is correct.

9. Which of the following is not an objective of facility layout?

a. Minimize material handling costs
b. Utilize space efficiently
c. Utilize labor efficiently
d. Maximize bottlenecks

10. Which one of the following is not an example of a basic facility layout?
a. Fixed-position
b. Mixed-model
c. Product
d. Process

11. Which of the following is not an objective of effective layouts?

a. reduce material handling costs
b. increase the number of bottlenecks
c. eliminate waste and redundant activities
d. improve communication and interaction among workstations

12. Which of the following statements is true?

a. product layouts are flexible; process layouts are efficient
b. product layouts are efficient; process layouts are flexible
c. product and process layouts are equally flexible; neither are efficient
d. product and process layout are equally efficient; neither are flexible

13. Similar activities are grouped together in departments or work centers according to
the function with a __________ layout.
a. process
b. fixed-position
c. hybrid

14. Which of the following describes a process layout?

a. Equipment is general purpose and the workers are unskilled.
b. Equipment is specialized and the workers are highly skilled.
c. Equipment is general purpose and the workers are highly skilled.
d. Equipment is specialized and the workers are unskilled.

15. The material storage space required for in-process inventory is typically larger in a
a. cellular manufacturing layout.
b. product layout.
c. fixed-position layout.
d. process layout.
16. Material handling equipment that can follow multiple paths, move in any direction,
and carry large loads of in-process inventory is most likely to be associated with a
_________ layout
a. process
b. product
c. fixed-position
d. None of these answer choices is correct.

17. With a ___________ layout, activities are arranged in a line according to the
sequence of operations.
a. product
b. process
c. fixed-position
d. cellular

18. A ____________ provides historical data on the movement of parts and materials
between departments.
a. manufacturing chart
b. block diagram
c. relationship diagram
d. load summary chart

19. Two techniques used to design process layouts are

a. block diagramming and assembly line balancing.
b. relationship diagramming and assembling line balancing.
c. relationship diagramming and assembly line balancing.
d. block diagramming and relationship diagramming.

20. A format for displaying manager preferences for departmental locations is known as
a. relationship diagram.
b. process diagram.
c. block diagram.
d. hybrid diagram.

21. One of the best known computerized packages available for designing process layouts
is CRAFT. CRAFT stands for
a. computerized relationship activity and flow technique.
b. computerized relative allocation of facilities technique.
c. computerized relative assembly and flow technology.
d. computerized relationship assembly flow time.

22. A company produces shovels in five departments. The average number of loads
transported between the five departments per month is given in the load summary chart.

(Insert 2 x 3 grid – see page 268)

Load Summary Chart
from/to Department
Department 1 2 3 4 5
1 - - 30 - -
2 - - 30 25 -
3 30 - - - 20
4 - 40 - - 20
5 - 30 - - -

Determine the number nonadjacent loads.

a. 25
b. 30
c. 50
d. 60
Solution: 1-3 and 3-1 are nonadjacent; 30+30=60 loads

23. A company produces shovels in five departments. The average number of loads
transported between the five departments per month is given in the load summary chart.

(Insert 2 x 3 grid – see page 268)

Load Summary Chart

from/to Department
Department 1 2 3 4 5
1 - 10 - - -
2 - - 30 25 -
3 30 - - - -
4 - 40 - - 20
5 - 15 - - -

Determine the number nonadjacent loads.

a. 25
b. 30
c. 50
d. 60
Solution: 1-3 and 3-1 are nonadjacent; 30+30=60 loads

24. A schematic diagram that uses weighted lines to denote location preference is known
as a
a. block grid.
b. block diagram.
c. a relationship grid.
d. a relationship diagram.

25. Most service organizations use

a. product layouts.
b. fixed-position layouts.
c. process layouts.
d. cellular layouts.

26. A type of service layout designed to encourage browsing and increase impulse
purchasing is known as a
a. freeflow layout.
b. grid layout.
c. loop layout.
d. spine layout.

27. A company hopes to achieve a daily output of 200 units during 6 hours of production
time. Assuming there is no lost time during the 6 hours of production, the desired
cycle time to achieve the targeted level of output is
a. 3.0 minutes
b. 1.8 minutes
c. 1.5 minutes
d. 0.03 minutes
Solution: Cd=6*60/200=1.8 minutes

28. A ________layout encourages customer familiarity, has low costs, and is easy to
clean.
a. freeflow layout
b. grid layout
c. spine layout
d. loop layout

29. The process of equalizing the amount of work at each workstation in a product layout
is known as
a. block diagramming.
b. precedence requirements.
c. line balancing.
d. cycle time analysis.

30. With line balancing the maximum amount of time the product is allowed to spend at
each workstation is known as the
a. cycle time.
b. flow time.
c. efficiency of the line.
d. balance delay.

31. To maximize an assembly line’s efficiency the

a. line’s balance delay must be minimized.
b. line’s balance delay must be maximized.
c. cycle time must be less than the flow time.
d. flow time must be less than the cycle time.

32. A company has a target output rate of 40 units every five hours when its line is fully
operational. To achieve this target the firm must have a desired cycle time of
a. more than 12.50 minutes.
b. more than 10.00 minutes.
c. 7.5 minutes or less.
d. 8 minutes or less.
Solution: Cd=5*60/40=7.5 minutes

33. A company wants to produce 150 units during a 7-hour day. The desired cycle time
needed to achieve this level of output is
a. 3.5 minutes.
b. 3.25 minutes.
c. 3.00 minutes.
d. 2.8 minutes.
Solution: Cd=7*60/150=2.8 minutes
34. In a product layout, the process of assigning tasks to work stations is referred to as
_________ balancing.
a. station
b. product
c. line
d. work

35. Cycle time refers to the

a. time required for a product to go through a process layout.
b. time between finished units coming off an assembly line.
c. time needed to complete the tasks at a workstation.
d. difference between task time and workstation time.

36. An assembly line consists of three workstations (WS) with each station’s activity time
as shown.

WS 1 WS 2 WS 3
5 minutes 3 minutes 4 minutes

The flow time for items on this line would be

a. 5 minutes.
b. 3 minutes.
c. 4 minutes.
d. 12 minutes.
Solution: FT=5+3+4=12 minutes

37. An assembly line consists of three workstations (WS) with each station’s activity time
as shown.
 WS 1 WS 2 WS 3
5 minutes 3 minutes 4 minutes

The cycle time for this line is

a. 5 minutes.
b. 3 minutes.
c. 4 minutes.
d. 12 minutes.
Solution: Cycle time=Max{5,3,4}=5 minutes

38. An assembly line consists of three workstations (WS) with each station’s activity time
as shown.

WS 1 WS 2 WS 3
5 minutes 3 minutes 4 minutes

When fully operational this line could assemble _______ completed items every 60
minutes.
a. 20
b. 15
c. 12
d. 5
Solution: Cycle time=Max{5,3,4}=5 minutes; 60/5 = 12 items every 60 minutes

39. An assembly line consists of three workstations (WS) with each station’s activity time
as shown.

WS 1 WS 2 WS 3
5 minutes 3 minutes 4 minutes

When fully operational the maximum output for this line in 8 hours of production
time would be
a. 40 units
b. 96 units
c. 120 units
d. 160 units
Solution: Cycle time=Max{5,3,4}=5 minutes; Output=480 minutes/5 =96 items

40. If the line currently assembles 10 units every hour when fully functional, then the
line’s balance delay at this rate of output is
 WS 1 WS 2 WS 3
5 minutes 3 minutes 4 minutes

a. 66.67 %
b. 33.33%
c. 80.00%
d. 20.00%
Solution: Balance delay=1-(12/15)=0.20 or 20%

41. Which of the following is not an area of advantage of cellular layouts?

a. material handling
b. setup time
c. capital investment
d. control

42. Which of the following is not an area of disadvantage of cellular layouts?

a. cell balance
b. work-in-process inventory
c. capital investment
d. training and scheduling

43. Which one of the following factors is not important to the design and operation of a
mixed-model assembly line?
a. model sequencing
b. line balancing
c. u-shaped lines
d. All of these answer choices is correct.

44. Is a group technology technique that reorders part routing matrices to identify
families of parts with similar processing requirements.
a) Process flow analysis
b) Production flow analysis
c) Cycle analysis
d) Group analysis

45. Which of the following is not an advantage of cellular layouts?

a) easier to automate
b) easier to control
c) increased work-in-process inventory
d) reduced setup time

46. Which one of the following is not an example of a hybrid facility layout?
a. Fixed-position
b. Mixed-model
c. Cellular
d. Flexible manufacturing

File: ch12, Chapter 12: Forecasting

41. Forecast methods based on judgment, opinion, past experiences, or best guesses
are known as ___________ methods.
a. quantitative
b. qualitative
c. time series
d. regression

42. A forecast
a. predicts what will occur in the future.
b. results from an uncertain process.
c. support strategic planning.
d. All of these answer choices are correct.

43. Forecasts of product demand determine how much

a. inventory is needed.
b. product to make.
c. material to purchase from suppliers.
d. All of these answer choices are correct.

44. The ______________ effect is caused in part by distortion in product demand

information caused by inaccurate forecasts.
a. bullwhip
b. regression
c. error
d. None of these answer choices is correct.

45. Continuous replenishment relies heavily on ____________term forecast.

a. short-
b. medium-
c. long-
d. All of these answer choices are correct.

46. In ___________________ replenishment, the supplier and customer care

continuously update data.
a. demand
b. ongoing
c. continuous
d. forecasted

47. ________________ demand is a key to providing good-quality service.

a. Predicted
b. Forecasted
 c. Anticipated
d. Unknown

48. A long-range forecast would normally not be used to

a. design the supply chain.
b. implement strategic programs.
c. determine production schedules.
d. plan new products for changing markets.

49. A forecast where the current period’s demand is used as the next period’s forecast
is known as a
a. moving average forecast.
b. naïve forecast.
c. weighted moving average forecast.
d. Delphi method.

50. Which of the following is not a type of predictable demand behavior?

a. trend
b. random variation
c. cycle
d. seasonal pattern

51. A ___________ is an up-and-down movement in demand that repeats itself over a

period of more than a year.
a. trend
b. seasonal pattern
c. random variation
d. cycle

52. Selecting the type of forecasting method to use depends on

a. the time frame of the forecast.
b. the behavior of demand and demand patterns.
c. the causes of demand behavior.
d. All of these answer choices are correct

53. A qualitative procedure used to develop a consensus forecast is known as

a. exponential smoothing.
b. regression methods.
c. the Delphi technique.
d. naïve forecasting.

54. The sum of the weights in a weighted moving average forecast must
a. equal the number of periods being averaged.
b. equal 1.00.
c. be less than 1.00.
d. be greater than 1.00.
55. An exponential smoothing forecasting technique requires all of the following
except
a. the forecast for the current period.
b. the actual demand for the current period.
c. a smoothing constant.
d. large amounts of historical demand data.

56. Given the demand and forecast values below, the naïve forecast for September is
Period Demand Forecast
April 100 97
May 105 103
June 97 98
July 102 105
August 99 102
September
a. 100.6.
b. 99.0.
c. 102.0.
d. cannot be determined.

57. The smoothing constant, α, in the exponential smoothing forecast

a. must always be a value greater than 1.0.
b. must always be a value less than 0.10.
c. must be a value between 0.0 and 1.0.
d. should be equal to the time frame for the forecast.

58. The closer the smoothing constant, α, is to 1.0 the

a. greater the reaction to the most recent demand.
b. greater the dampening, or smoothing, effect.
c. more accurate the forecast.
d. less accurate the forecast.

59. The exponential smoothing model produces a naïve forecast when the smoothing
constant, α, is equal to
a. 0.00.
b. 1.00.
c. 0.50.
d. 2.00

60. The _______ method uses demand in the first period to forecast demand in the
next period.
a) naïve
b) moving average
c) exponential smoothing
d) linear trend
 61. The _________________ forecast method consists of an exponential smoothing
forecast with a trend adjustment factor added to it.
a) exponentially smoothed
b) adjusted exponentially smoothing
c) time series
d) moving average

62. Given the following demand data for the past five months, the three-period
moving average forecast for June is

a. DemandJanuary120103.33.May

ata for the past five months, the four-period moving average forecast for June is
64. Period
 a. 3,760.
b. 3,700.
c. 3,650.
d. 3,325.

68. For the demand values and the January forecast shown in the table below the
exponential smoothing forecast for March using α = 0.30 is

Fore Period
cast
January
Demand 500 480
February 476
Demand
Forecast
January
1,2501,2
00April
February
a. 489.
b. 486.
c. 483.
d. 480.
e.
69. F
or
the
dem
and
valu
es
and
the
Janu
ary
fore
cast
sho
wn
in
the
table
belo
w
the
expo
nenti
al
smo
othin
g
fore
cast
for
Mar
ch
usin
gα
=
0.40
is
70.
71. P
erio
d 1,225
 March

a. 1,200.
b. 1,220.
c. 1,222.
d. 1,225.

72. If the forecast for July was 3,300 and the actual demand for July was 3,250, then
the exponential smoothing forecast for August using α = 0.20 is
a. 3,300.
b. 3,290.
c. 3,275.
d. 3,250.

73. Given the demand and forecast values shown in the following table,
ForecastJune495484Period

506JulyDemand

DemandForecastJune495484506October557550calculate the three-period moving average forecast for November.September

st values shown in the table below,

75. Period
506July496

528August515

October 557 550 the Demand Forecast June 495

exponenti
al
smoothin
g forecast
for
Novembe
r using α
= 0.35 is

a. 55
2.
45
.
b. 55
 3.
50
.
c. 55
4.
55
.
d. 55
7.
50
.

76. Gi
ven
the
dema
nd
and
foreca
st
values
shown
in the
table
below
,
Period
the forecast error for February is
a. 10.
b. -10.
c. -15.
d. -5

81. Given the demand and forecast values shown in the table below,

Period Demand Forecast

515506Au
gust51952
8June 495 484
Deman 496 506 Octo
dForeca ber
stErrorJ
anuary1
20110F
ebruary
110115
March1
151205
50
the
mean
absolut
e
deviatio
n
(MAD)
through
the end
of
October
isSepte
mberJu
ly
a. 9.20
b. -
9.2
0
c. 1.0
0
d. 7.0
0
e.
82. T
he
per-
peri
od
aver
 age
of
cu
mul
ativ
e
erro
r is
call
ed
a. cu
m
u
l
a
t
i
v
e

f
o
r
e
c
a
s
t

v
a
r
i
a
t
i
o
n
.
b. abs
olut
e
erro
r.
c. ave
rag
 e
err
or.
d. nois
e.
e.
83. A

fore
cast
ing
mo
del
has
pro
duc
ed
the
foll
owi
ng
fore
cast
s:
84.
85. P
erio
d
April557 125 115
May 130 125

The mean absolute deviation (MAD) for the end of May is

a. 7.0.
b. 7.5.
c. 10.0.
d. 3.0

86. A forecasting model has produced the following forecasts:

Period Demand Forecast Error

January 120 110
February 110 115
March 115 120
April 125 115
May 130 125
 The mean absolute percent deviation (MAPD) for the end of May is
a. 0.0250.
b. 0.0583.
c. 0.5830.
d. 0.6670.

87. A forecasting model has produced the following forecasts:

Period Demand Forecast Error

January 120 110
February 110 115
March 115 120
April 125 115
May 130 125

At the end of May the average error would be

a. 7.
b. 5.
c. 3.
d. 1.

88. A forecasting model has produced the following forecasts:

Period Demand Forecast Error

January 120 110
February 110 115
March 115 120
April 125 115
May 130 125

At the end of May the tracking signal would be

a. 0.000.
b. 0.667.
c. 1.333.
d. 2.143.

89. The mean absolute percentage deviation (MAPD) measures the absolute error as a
percentage of
a. all errors.
b. per-period demand.
c. total demand.
d. the average error.

90. A large positive cumulative error indicates that the forecast is probably
a. higher than the actual demand.
b. lower than the actual demand.
c. unbiased.
d. biased.

91. Which of the following statements concerning average error is true?

a. A positive value indicates high bias, and a negative value indicates low bias.
b. A positive value indicates zero bias, and a negative value indicates low bias.
c. A negative value indicates zero bias, and a negative value indicates high bias.
d. A positive value indicates low bias, and a negative value indicates high bias.

92. Which of the following is a reason why a forecast can go out of control?
a. a change in trend
b. an irregular variation such as unseasonable weather
c. a promotional campaign
d. All of these answer choices are correct.

93. Which of the following can be used to monitor a forecast to see if it is biased high
or low?
a. a tracking signal
b. the mean absolute deviation (MAD)
c. the mean absolute percentage deviation (MAPD)
d. a linear trend line model

94. A tracking signal is computed by

a. multiplying the cumulative error by MAD.
b. multiplying the absolute error by MAD.
c. dividing MAD by the cumulative absolute error.
d. dividing the cumulative error by MAD.

95. Regression forecasting methods relate _________to other factors that cause
demand behavior.
a) supply
b) demand
c) time
d) money

96. Correlation is a measure of the strength of the

a. nonlinear relationship between two dependent variables.
b. nonlinear relationship between a dependent and independent variable.
c. linear relationship between two dependent variables.
d. linear relationship between a dependent and independent variable.

97. A mathematical technique for forecasting that relates the dependent variable to an
independent variable is
a. correlation analysis.
b. exponential smoothing.
c. linear regression.
d. weighted moving average.

(Use the following information for the next five problems.)

The owner of Koffi, the sole coffee house located in a resort area, wants to develop a
forecast based on the relationship between tourism and coffee drinks sold. He has
generated the following data over the past 12 months:

Tourists Coffee Drinks

Month (thousands) (per day)
25175March
34210 January 22 132
February April 30 150
May 15 60
June 10 50
July 8 45
August 6 40
35September
 75October10
110November15
18 December 20 140

The data from using Data Analysis on Excel is as follows:

SUMMARY OUTPUTRegression StatisticsMultiple R0.954141355R Square0.910385725Adjusted R

Square0.901424297Standard
Error18.57063782Observations12ANOVA  dfSSMSFRegression135034.9807735034.98101.5894R
esidual103448.685892344.8686Total1138483.66667    CoefficientsStandard Errort StatP-
valueIntercept-11.574327612.46354188-0.928650.37494Tourists
(thousands)6.3891639970.63389877710.079151.48E-06

98. What is the approximate intercept, a?

a. -11.6
b. 11.6
c. 6.4
d. -6.4

99. What is the approximate slope, b?

a. -11.6
b. 11.6
c. 6.4
d. -6.4

100. What is the forecasted number of coffee drinks sold if the number of tourists is 25
(thousand)?
a. 128
b. 138
c. 148
d. 158

101. What is the correlation?

a. 0.95
b. 0.91
c. 0.90
d. 19

102. What is the coefficient of determination?

a. 0.95
b. 0.91
c. 0.90
d. 18

103. Data mining uses and analyzes data that is stored in

a. databases.
b. data warehouses.
c. data marts.
d. All of these answer choices are correct.

104. _______________ can be subdivided into ________________ that store subsets of

data.
a. Databases, data warehouses
b. Data warehouses, data marts
c. Databases, data marts
d. Data warehouses, databases

105. Association rule learning is a data mining technique that

a. discovers trends, predicts future events, and assesses possible course of action.
b. searches for relationships between variables.
c. identifies groups of data that fall naturally together.
d. None of these answer choices is correct.

106. Cluster analysis is a tool that

a. discovers trends, predicts future events, and assesses possible course of action.
b. searches for exact relationships between variables.
c. identifies groups of data that fall naturally together.
d. None of these answer choices is correct.

107. Data mining

a. discovers trends, predicts future events, and assesses possible course of action.
b. searches for exact relationships between variables.
c. identifies groups of data that fall naturally together.
d. None of these answer choices is correct.