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OPS 571 Final Exam Guide (April, 2019)
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OPS 571 Final Exam Guide (April, 2019)

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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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Purpose of Assignment  The purpose of this assignment is for students to learn how to apply Operations Forecasting. Assignment Steps  Resources: Microsoft® Excel® Select a business operations dataset from the internet or other sources which can be used for..
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Purpose of Assignment  The purpose of this assignment is for students to learn how to apply Operations Forecasting. Assignment Steps  Resources: Microsoft® Excel® Select a business operations dataset from the internet or other sources which can be used for..
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