OPS 571 Final Exam Guide (January, 2020)
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OPS 571 Final Exam Guide (January, 2020)

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In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with a stable supply process is called which of the following? Responsive Agile Efficient Risk hedging Forward looking If annual demand is 12,000 units, annual holding cost is $15 per unit, and setup cost per order is $25, which of the following is the EOQ lot size? 1,000 1,200 200 300 2,000 Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies? Minimizing inventory Stable workforce, variable work hours Level Chase Meeting demand Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, what is the exponential smoothing forecast value rev: 04_28_2014_QC_48598 1,130 970 1,000 1,070 1,030 Which of the following is not a problem definition tool from the operations consulting tool kit? Five forces model Gap analysis Customer surveys Issue trees Computer simulation A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented here: Using CPM, what is the latest finish time for the last activity in this project (i.e., the total time to complete the project)? 12 days 11 days 10 days 13 days 9 days An activity where the parts that go into each unit of a product are periodically removed from inventory and accounted for based on the number of units produced is called which of the following? Frozen window Kanban Backflush Level schedule Group technology According to the theory of constraints, which of the following is a kind of time that makes up the cycle time in production? Quality time Research time Break time Just-in-time Idle time Which of the following is a priority rule used to schedule the sequence of jobs in a production operation? Parts on hand first First on hand first Last-come, first-served Longest slack time first Last complaint first Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 36,000 units, a cost per order of $80, and a holding cost per unit per year of $4? $2,267 $849 $1,200 $1,889 $2,400 Which of the following is a perpetual system for inventory management? The wheel of inventory First-in-first-out Fixed-time period P model Fixed-order quantity Which of the following address elimination of waste under lean production? Outsourced housekeeping Backflush Quality at the source Bottom-round management Info-matic warehouse networks Which of the following is a reason that there are disparities between a firm's learning curve rate and that of its industry? Learning curves don't reflect organizational learning. There may be procedural differences in the manner that different firms collect and report data. Companies don't always report sensitive data to outside agencies accurately. The starting points for different firms were different. The cumulative number of units produced is different. For which of the following should we use an X-bar chart based on sample means to monitor process quality? Grades in a freshman "pass/fail" course Number of units with missing operations Tire pressures in an auto assembly plant Vehicles passing emissions inspection Computer software errors Which of the following are the three major components of a queuing system? rev: 02_17_2017_QC_CS-79354 The number of customers the system serves, the number of steps in the service system, and how quickly customers exit the system The number of servers, the service speed, and the waiting line The number of customers and how they arrive, how customers exit the system, and the service system The service speed, the queue discipline, and the waiting line The source population, how customers exit the system, and the queuing discipline Which of the following basic types of process structures is one in which equipment or work processes are arranged according to the progressive steps by which the product is made? Assembly line Continuous process Work center Project Manufacturing cell Which of the following is one of the three contrasting approaches to delivering on-site service? Production-line approach Quality approach Professional approach Stock market approach Retail approach Which of the following is a measure of operations and supply management efficiency used by Wall Street? Current ratio Receivable turnover Financial leverage Earnings per share growth Dividend payout ratio When a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called? Inter-functional analysis Order qualifying Order winning Straddling Operations capability analysis Which of the following is a total measure of productivity? Output/(Labor + Capital + Energy) Output/Labor All of these Output/Materials Output/Inputs In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following? Low degree of customer/server contact None of these Low production efficiency High production efficiency Low sales opportunity We would expect to see in a manufacturing cell layout which of the following? None of these Long production setup times Large teams who collectively do a small part of a finished product A small team of workers who turn out complete units of work More in-process inventory Which of the following is a major factor that distinguishes service design and development from manufacturing design and development? Capacity decisions are much more critical in manufacturing operations. Manufacturing is far more capital intensive than services. The service process and service product can be developed independently. The service package has the same legal protection available to manufactured goods. The service package is the major output of the development process. The customer order decoupling point determines the position of what in the supply chain? Orders Transportation facilities Inventory Customers Manufacturing facilities Machine breakdown and repair in a 12-machine factory having one repair mechanic would develop which type of queuing system line structure concerning machine breakdowns? Single channel, single phase None of these Multichannel, single phase Single channel, multiphase Multichannel, multiphase Assume the service rate for a queue in a truck-loading operation is 2 trucks per hour. Using the infinite queuing notion for the models presented in the textbook, which of the following is the average service time? 0.25 hour 0.5 hour 2 hours 1 hour None of these An assumption of learning curve theory is which of the following? Unit time will decrease at a decreasing rate. Unit time will hold constant. Unit time will increase at an increasing rate. Unit time will increase at a decreasing rate. Unit time will decrease at an increasing rate. The unit improvement factor for a 60 percent learning curve at 25 units is 0.0933. The first and second timings of a person doing a job are 5 minutes and 3 minutes respectively. Which of the following is the learning-adjusted time estimate for unit number 25? 0.0933 minute 9.33 minutes 3 minutes 4.665 minutes 0.4665 minute For which of the following should we use a p-chart to monitor process quality? Letter grades on a final examination Temperature of entrees in a restaurant Weight errors in cans of soup Errors in the length of a pencil Defective electrical switches You have been called in as a consultant to set up a Kanban control system. The first thing to do is to determine the number of Kanban card sets needed. Your research shows that the expected demand during lead time for a particular component is 150 per hour. You estimate the safety stock should be set at 25 percent of the demand during lead time. The tote trays used as containers can hold 8 units of stock, and the lead time it takes to replenish an order is 2 hours. Which of the following is the number of Kanban card sets necessary to support this situation? 94 68 42 47 89 Which of the following is a fixed-order-quantity inventory model? P model Periodic replenishment model The ABC model Economic order quantity model Cycle counting model Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 36,000 units, a cost per order of $80, and a holding cost per unit per year of $4? $1,889 $2,267 $849 $2,400 $1,200 Assume there are five jobs (i.e., A, B, C, D, and E) that need to be sequenced in a production schedule. The remaining operating time necessary for completion of job A is 4 days (i.e., job A will take 4 more days to complete), B will take 7 days, C will take 8 days, D will take 2 days, and E will take 5 days. Which job should be scheduled first if you use the SOT priority rule for job sequencing? E B C D A Which of the following is a "focusing step" of Dr. Eli Goldratt's theory of constraints? Reinforce system constraints. If you have no system constraints, make some. Identify system constraints. Reduce system constraints. Support system constraints In implementing a lean production system you should work with suppliers to do which of the following? Make frequent deliveries. Calculate lead times. Achieve bottom-round management. Freeze windows. Use quality circles. For an activity in a CPM analysis, the early finish time is 20 and the late finish time is 20. Which of the following statements is true? The slack for this activity is 20. The activity's late start must happen before its early start. The activity is on the critical path. The duration of this task is 20. The duration of this task is zero. You have been placed in charge of a large project. Shortened communication lines are required to ensure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management structure should you use in this situation? Pure project PERT Task force Functional project Matrix project Which of the following is not a principle of reengineering? Capture information many times, at the source and where it is interpreted. Treat geographically dispersed resources as though they were centralized. Merge information processing work into the work that produces the information. Link parallel activities instead of integrating their results. Organize around outcomes not tasks. Which of the following forecasting methodologies is considered a qualitative forecasting technique? Simple moving average Market research Exponential smoothing Linear regression Multiple regression A company wants to generate a forecast for unit demand for year 2014 using exponential smoothing. The actual demand in year 2013 was 120. The forecast demand in year 2013 was 110. Using these data and a smoothing constant alpha of 0.1, which of the following is the resulting year 2014 forecast value? 111 100 114 120 110 Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs, and allowing lost sales is which of the following production planning strategies? Full employment Stable workforce, variable work hours Skill maintenance Level Chase What are two of the main objectives of ERP? Transaction processing and logistic optimizing Resource tracking and master schedule planning Product tracking and customer invoicing Transaction processing and decision support If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity cushion? 133 percent 25 percent 100 units per hour 125 percent 75 percent Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following? A consistent lag of supply behind demand Minimized carrying costs Minimized setup costs Minimized quality problems A just-in-time management philosophy A product tree can do which of the following? Help to compute component usage. Reduce product scrap. Reduce regular time labor. Locate raw material supplies. Reduce labor overtime. Very few products are moved without at least part of their journey being by which mode of transportation? Rail Highway Pipeline Water Air In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following? Responsive Efficient Agile Risk hedging Forward looking 1. Which of the following is a measure of operations and supply management efficiency used by Wall Street? Dividend payout ratio Receivable turnover Current ratio Financial leverage Earnings per share growth 2. An activity-system map is which of the following? A diagram that shows how a company's strategy is delivered to customers A timeline displaying major planned events A network guide to route airlines A facility layout schematic noting what is done where A listing of activities that make up a project 3. Which of the following is a total measure of productivity? Output/Materials Output/Labor Output/(Labor + Capital + Energy) All of these Output/Inputs 4. Which of the following approaches to service design is characterized by having the customer take a greater role in the production of the service? Quality approach Self-service approach Production-line approach Do-it-yourself approach Personal-attention approach 5. Which of the following basic types of production layout formats is one that has similar equipment or functions are grouped together? Workcenter layout Production line layout Group technology layout Manufacturing cell layout Assembly line layout 6. Which of the following is a characteristic that can be used to guide the design of service systems? Services are all similar. Services cannot be inventoried. Services businesses are inherently entrepreneurial. Even service businesses have internal services. Quality work means quality service. 7. An advantage of a make-to-stock process is which of the following? All units of output are unique. It features rapid delivery of a standard product. It combines the best features of other processes. It responds directly to customer orders. It allows the firm to avoid inventory costs. 8. Getting an autograph from a famous person might involve standing in which type of queuing line structure? Single channel, single phase None of these Single channel, multiphase Multichannel, multiphase Multichannel, single phase 9. For an infinite queuing situation, if the arrival rate for loading trucks is 5 trucks per hour, what is the mean time between arrivals? 2.5 hours 5 hours 0.2 hour 0.1 hour None of these 10. An assumption of learning curve theory is which of the following? Organizational learning is not included in learning theory. The time required to do a task will vary randomly each time the task is repeated. Unit time will decrease at an increasing rate. Learning will not be transferred from one worker to the next. The reduction in unit time will follow a predictable pattern. 11. A company's production process has an 80 percent learning curve rate. The process has produced 1,000 units to date. A process refinement is estimated to allow a future learning curve rate for the identical product of 75 percent. However, the initial unit made using the new process will take the same amount of time as the initial unit produced using the old process. At what point, using the new process, will the production rate exceed the production rate achieved by the old process? Before the 100th unit Before the 120th unit Before the 80th unit Before the 50th unit Before the 250th unit 12. For which of the following should we use a p-chart to monitor process quality? Grades in a freshman "pass/fail" course Temperatures in a classroom The dimensions of brick entering a kiln The weight of fluid in a container Lengths of boards cut in a mill 13. You have been called in as a consultant to set up a Kanban control system. The first thing to do is to determine the number of Kanban card sets needed. Your research shows that the expected demand during lead time for a particular component is 150 per hour. You estimate the safety stock should be set at 25 percent of the demand during lead time. The tote trays used as containers can hold 8 units of stock, and the lead time it takes to replenish an order is 2 hours. Which of the following is the number of Kanban card sets necessary to support this situation? 42 68 89 47 94 14. Which of the following is a fixed-time-period inventory model? Just-in-time model The EOQ model Periodic system model The Q model The least cost method 15. A company is planning for its financing needs and uses the basic fixed-order-quantity inventory model. Which of the following is the total cost (TC) of the inventory given an annual demand of 10,000, setup cost of $32, a holding cost per unit per year of $4, an EOQ of 400 units, and a cost per unit of inventory of $150? None of these $1,501,600 $1,498,200 $499,313 $500,687 A. $1,501,600 Q = 400. Average Inventory = Q/2 = 200. Holding cost/year = $4. Thus, annual holding cost = $800. Annual set-up cost = 10,000/400 = 25 x $32 = 800. Demand x cost per unit = 10,000 x $150 = 1,500,000. Hence, TC = $1,500,000 + 800 + 800 = $1,501,600. 16. Which of the following is a principle of work center scheduling? Reschedule every day. Once started, a job can and should be finished even if unavoidably interrupted. Assign the first worker to all of the days that require staffing. Achieve certainty in standards and routings. Give work centers less to do then their maximum. 17. Which of the following is a "focusing step" of Dr. Eli Goldratt's theory of constraints? Identify system constraints. Support system constraints. If you have no system constraints, make some. Reduce system constraints. Reinforce system constraints. 18. In designing a lean production facility layout, a designer should do which of the following? Locate flexible workstations offline. Balance capacity using job shop analysis. Design for work flow balance. Always keep operations on a single floor of the factory. Link operations through a push system. 19. A simple project listing of five activities and their respective time estimates are presented here: Using CPM, which activities make up the critical path? None of these A, B, D, E A, D, E A, C, B, D, E A, C, D, E 20. A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented here: Using CPM, which activities make up the critical path? A, C, B, F, E None of these A, B, D, F, G A, C, E, F, G A, D, E 21. Which of the following is not a problem definition tool from the operations consulting tool kit? Issue trees Five forces model Computer simulation Customer surveys Gap analysis 22. Which of the following is not one of the basic types of forecasting? Simulation Causal relationships Qualitative Time series analysis Force field analysis 23. A company has actual unit demand for three consecutive years of 124, 126, and 135. The respective forecasts for the same three years are 120, 120, and 130. Which of the following is the resulting MAD value that can be computed from these data? 3 1 15 123 5 C MAD = ABS[(124 - 120) + (126 - 120) + (135 - 130)]/3 = 15/3 = 5. 24. From an operational perspective, yield management is most effective under which of the following circumstances? Inventory is perishable. The firm doing yield management is very profitable. Demand cannot be segmented by customer. Fixed costs are low, and variable costs are high. The customer is a "captive" of the system. 25. What is transaction processing? The decision support system used to efficiently handle multiple transactions The movement of paperwork through a system using a decision tree The scheduling of machinery to minimize time and scrap The posting and tracking of the detailed activities of a business 26. If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate? 0.75 1.00 1.25 1.33 100 27. Which of the following is an input to the master production schedule (MPS)? Planned order schedules The bill of materials The aggregate plan The exception report Inventory records file 28. Which of the following is considered a primary report in an MRP system? Cycle counting reports Performance reports Planned order schedules Planning reports Exception reports 29. The centroid method for plant location uses which of the following data? Probabilities and payoffs Correlation matrix of existing facilities Volume of goods to be shipped between existing points Inbound transportation costs Transport times between facilities 30. In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with an evolving supply process is called which of the following? Responsive Forward looking Efficient Risk hedging Agile

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